%PDF-1.5 1 0 obj <> endobj 3 0 obj <> endobj 4 0 obj <> stream BT /F1 1.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 50.00 748.35 Td ( ) Tj ET Q BT /F2 15.00 Tf ET q 0 0 0 rg BT 247.50 730.35 Td (UNITED ST) Tj ET Q q 0 0 0 rg BT 325.55 730.35 Td (A) Tj ET Q q 0 0 0 rg BT 335.27 730.35 Td (TES ) Tj ET Q BT /F2 15.00 Tf ET q 0 0 0 rg BT 147.05 712.35 Td (SECURITIES ) Tj ET Q q 0 0 0 rg BT 240.68 712.35 Td (AND EXCHANGE COMMISSION) Tj ET Q BT /F2 14.00 Tf ET q 0 0 0 rg BT 464.86 712.35 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 243.55 700.35 Td (W) Tj ET Q q 0 0 0 rg BT 252.44 700.35 Td (ASHINGT) Tj ET Q q 0 0 0 rg BT 297.26 700.35 Td (ON, D.C. 20549 ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 246 686.85 m 365 686.85 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 246 651.85 m 365 651.85 l s BT /F2 16.00 Tf ET q 0 0 0 rg BT 265.40 665.25 Td (Form 10-K) Tj ET Q BT /F1 10.00 Tf ET /GS0 gs q 10.60 0 0 10.76 49.00 632.30 cm /I1 Do Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 59.60 634.35 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.38 634.35 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 74.00 634.35 Td (ANNUAL) Tj ET Q q 0 0 0 rg BT 116.04 634.35 Td ( REPORT PURSUANT T) Tj ET Q q 0 0 0 rg BT 227.52 634.35 Td (O SECTION 13 OR 15\(d\) OF THE SECURITIES EXCHANGE ) Tj ET Q q 0 0 0 rg BT 504.97 634.35 Td (ACT ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 74.00 622.35 Td (OF 1934. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 200.65 607.35 Td (For the fiscal year ended December 31, 2016 ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.00 592.35 Td (or ) Tj ET Q /GS0 gs q 8.91 0 0 10.76 49.00 575.30 cm /I2 Do Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.91 577.35 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 74.00 577.35 Td (TRANSITION REPORT PURSUANT T) Tj ET Q q 0 0 0 rg BT 246.60 577.35 Td (O SECTION 13 OR 15\(d\) OF THE SECURITIES EXCHANGE ) Tj ET Q q 0 0 0 rg BT 524.04 577.35 Td (ACT ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 74.00 565.35 Td (OF 1934. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 169.85 550.35 Td (For the transition period from to . ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 220.40 535.35 Td (Commission File Number 001-35500 ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 246 520.85 m 365 520.85 l s BT /F2 16.00 Tf ET q 0 0 0 rg BT 200.05 498.65 Td (Oaktree Capital Group, LLC) Tj ET Q BT /F2 18.00 Tf ET q 0 0 0 rg BT 409.86 498.65 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 191.05 483.47 Td (\(Exact name of registrant as specified in its charter\) ) Tj ET Q BT /F1 10.00 Tf ET BT /F2 9.00 Tf ET q 0 0 0 rg BT 150.20 459.80 Td (Delaware) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 415.95 459.80 Td (26-0174894) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 113.70 446.25 Td (\(State or other jurisdiction of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 111.45 437.25 Td (incorporation or organization\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 406.95 446.25 Td (\(I.R.S. Employer ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 395.95 437.25 Td (Identification Number\)) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 246 368.85 m 365 368.85 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 218.95 413.07 Td (333 South Grand ) Tj ET Q q 0 0 0 rg BT 301.37 413.07 Td (A) Tj ET Q q 0 0 0 rg BT 308.22 413.07 Td (venue, 28th Floor ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 250.30 403.07 Td (Los ) Tj ET Q q 0 0 0 rg BT 270.49 403.07 Td (Angeles, CA) Tj ET Q q 0 0 0 rg BT 329.02 403.07 Td ( 90071 ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 243.10 393.07 Td (T) Tj ET Q q 0 0 0 rg BT 248.47 393.07 Td (elephone: \(213\) 830-6300 ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 211.80 384.53 Td (\(Address, zip code, and telephone number) Tj ET Q q 0 0 0 rg BT 362.12 384.53 Td (, including ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 213.05 376.53 Td (area code, of registrant’) Tj ET Q q 0 0 0 rg BT 296.95 376.53 Td (s principal executive of) Tj ET Q q 0 0 0 rg BT 377.74 376.53 Td (fices\)) Tj ET Q BT /F1 10.00 Tf ET BT /F3 9.00 Tf ET q 0 0 0 rg BT 200.90 348.55 Td (Securities registered pursuant to Section 12\(b\) of the ) Tj ET Q q 0 0 0 rg BT 413.52 348.55 Td (Act:) Tj ET Q BT /F2 9.00 Tf ET 0 0 0 RG /GS0 gs 0.94 w 0 i [] 0 d 1 J 1 j 3 M 131.3 327.571728515625 m 208.6701171875 327.571728515625 l s q 0 0 0 rg BT 131.30 329.00 Td (Title of each class) Tj ET Q BT /F2 9.00 Tf ET 0 0 0 RG /GS0 gs 0.94 w 0 i [] 0 d 1 J 1 j 3 M 344.95 327.571728515625 m 535.00908203125 327.571728515625 l s q 0 0 0 rg BT 344.95 329.00 Td (Name of each exchange on which registered) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 51.15 315.45 Td (Class A units representing limited liability company interests) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 387.20 315.45 Td (New York Stock Exchange) Tj ET Q BT /F1 10.00 Tf ET BT /F3 7.50 Tf ET q 0 0 0 rg BT 209.90 299.55 Td (Securities registered pursuant to Section 12\(g\) of the ) Tj ET Q q 0 0 0 rg BT 387.09 299.55 Td (Act: None) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 68.00 284.55 Td (Indicate by check mark if the registrant is a well-known seasoned issuer) Tj ET Q q 0 0 0 rg BT 305.63 284.55 Td (, as defined in Rule 405 of the Securities ) Tj ET Q q 0 0 0 rg BT 441.97 284.55 Td (Act. ) Tj ET Q q 0 0 0 rg BT 458.92 284.55 Td (Y) Tj ET Q q 0 0 0 rg BT 463.24 284.55 Td (es ) Tj ET Q /GS0 gs q 7.95 0 0 8.04 475.33 282.97 cm /I3 Do Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 483.28 284.55 Td ( No ) Tj ET Q /GS0 gs q 6.68 0 0 8.04 505.37 282.97 cm /I4 Do Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 512.05 284.55 Td ( ) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 68.00 272.55 Td (Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15\(d\) of the ) Tj ET Q q 0 0 0 rg BT 446.56 272.55 Td (Act. ) Tj ET Q q 0 0 0 rg BT 463.51 272.55 Td (Y) Tj ET Q q 0 0 0 rg BT 467.82 272.55 Td (es ) Tj ET Q /GS0 gs q 6.68 0 0 8.04 479.91 270.97 cm /I5 Do Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 486.60 272.55 Td ( No ) Tj ET Q /GS0 gs q 7.95 0 0 8.04 510.77 270.97 cm /I6 Do Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 518.72 272.55 Td ( ) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 68.00 260.55 Td (Indicate by check mark whether the registrant \(1\) has filed all reports required to be filed by Section 13 and 15\(d\) of the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 534.53 260.55 Td (Act of ) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 50.00 251.55 Td (1934 during the preceding 12 months \(or for such shorter periods that the registrant was required to file such reports\), and \(2\) has been subject to such ) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 50.00 242.55 Td (filing requirements for the past 90 days. ) Tj ET Q q 0 0 0 rg BT 185.36 242.55 Td (Y) Tj ET Q q 0 0 0 rg BT 189.67 242.55 Td (es ) Tj ET Q /GS0 gs q 7.95 0 0 8.04 201.76 240.97 cm /I7 Do Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 209.71 242.55 Td ( No ) Tj ET Q /GS0 gs q 6.68 0 0 8.04 231.81 240.97 cm /I8 Do Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 238.49 242.55 Td ( ) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 68.00 230.55 Td (Indicate by check mark whether the registrant has submitted electronically and posted on its corporate W) Tj ET Q q 0 0 0 rg BT 415.56 230.55 Td (eb site, if any) Tj ET Q q 0 0 0 rg BT 459.19 230.55 Td (, every Interactive Data File ) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 50.00 221.55 Td (required to be submitted and posted pursuant to Rule 405 of Regulation S-T) Tj ET Q q 0 0 0 rg BT 302.12 221.55 Td ( during the preceding 12 months \(or for such shorter period that the registrant ) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 50.00 212.55 Td (was required to submit and post such files\). ) Tj ET Q q 0 0 0 rg BT 198.28 212.55 Td (Y) Tj ET Q q 0 0 0 rg BT 202.59 212.55 Td (es ) Tj ET Q /GS0 gs q 7.95 0 0 8.04 214.68 210.97 cm /I9 Do Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 222.63 212.55 Td ( No ) Tj ET Q /GS0 gs q 6.68 0 0 8.04 246.81 210.97 cm /I10 Do Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 253.49 212.55 Td ( ) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 68.00 200.55 Td (Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K \(§229.405 of this chapter\) is not contained herein and ) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 50.00 191.55 Td (will not be contained, to the best of the registrant’) Tj ET Q q 0 0 0 rg BT 212.89 191.55 Td (s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this ) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 50.00 182.55 Td (Form 10-K or any amendment to this Form 10-K.) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 211.73 182.55 Td ( ) Tj ET Q /GS0 gs q 6.68 0 0 8.04 215.48 180.97 cm /I11 Do Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 222.17 182.55 Td ( ) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 68.00 170.55 Td (Indicate by check mark whether the registrant is a large accelerated filer) Tj ET Q q 0 0 0 rg BT 306.46 170.55 Td (, an accelerated filer) Tj ET Q q 0 0 0 rg BT 373.59 170.55 Td (, a non-accelerated filer) Tj ET Q q 0 0 0 rg BT 451.56 170.55 Td (, or a smaller reporting company) Tj ET Q q 0 0 0 rg BT 558.55 170.55 Td (. ) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 50.00 161.55 Td (See the definitions of “large accelerated filer) Tj ET Q q 0 0 0 rg BT 195.93 161.55 Td (,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange ) Tj ET Q q 0 0 0 rg BT 475.25 161.55 Td (Act: ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 50.00 106.55 Td ( ) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 55.00 138.20 Td ( ) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 166.75 138.14 Td (Large accelerated filer ) Tj ET Q /GS0 gs q 7.95 0 0 8.04 247.22 136.56 cm /I12 Do Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 382.60 138.14 Td (Accelerated filer ) Tj ET Q /GS0 gs q 6.68 0 0 8.04 442.63 136.56 cm /I13 Do Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 55.00 124.20 Td ( ) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 169.90 124.14 Td (Non-accelerated filer ) Tj ET Q /GS0 gs q 6.68 0 0 8.04 245.36 122.56 cm /I14 Do Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 364.70 124.14 Td (Smaller reporting company ) Tj ET Q /GS0 gs q 6.68 0 0 8.04 460.58 122.56 cm /I15 Do Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 94.30 110.14 Td (\(Do not check if a smaller reporting company\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 291.00 110.20 Td ( ) Tj ET Q BT /F1 10.00 Tf ET BT /F3 7.50 Tf ET q 0 0 0 rg BT 68.00 94.55 Td (Indicate by check mark whether the registrant is a shell company \(as defined in Rule 12b-2 of the Exchange ) Tj ET Q q 0 0 0 rg BT 426.97 94.55 Td (Act\). ) Tj ET Q q 0 0 0 rg BT 446.42 94.55 Td (Y) Tj ET Q q 0 0 0 rg BT 450.73 94.55 Td (es ) Tj ET Q /GS0 gs q 6.68 0 0 8.04 462.82 92.97 cm /I16 Do Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 469.51 94.55 Td ( No ) Tj ET Q /GS0 gs q 7.95 0 0 8.04 491.60 92.97 cm /I17 Do Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 499.55 94.55 Td ( ) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 68.00 82.55 Td (The aggregate market value of the Class ) Tj ET Q q 0 0 0 rg BT 205.17 82.55 Td (A) Tj ET Q q 0 0 0 rg BT 209.76 82.55 Td ( units of the registrant held by non-af) Tj ET Q q 0 0 0 rg BT 331.37 82.55 Td (filiates as of June 30, 2016 was approximately $2.6 billion. ) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 68.00 70.55 Td (As of February 21, 2017, there were 62,994,591 Class ) Tj ET Q q 0 0 0 rg BT 250.20 70.55 Td (A) Tj ET Q q 0 0 0 rg BT 254.79 70.55 Td ( units and 91,547,128 Class B units of the registrant outstanding. ) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 220.70 58.55 Td (DOCUMENTS INCORPORA) Tj ET Q q 0 0 0 rg BT 315.98 58.55 Td (TED BY) Tj ET Q q 0 0 0 rg BT 342.94 58.55 Td ( REFERENCE) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 297.00 46.55 Td (None ) Tj ET Q endstream endobj 5 0 obj <> endobj 6 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 303.20 31.25 Td (2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 252.45 730.10 Td (T) Tj ET Q q 0 0 0 rg BT 257.82 730.10 Td (ABLE OF CONTENTS) Tj ET Q BT /F3 4.00 Tf ET q 0 0 0 rg BT 52.00 708.99 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 517.00 709.82 Td (Page) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 695.82 Td (PART I.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 517.00 695.82 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 681.82 Td (Item 1.) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 99.00 681.82 Td (Business) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 144.25 681.82 Td (....................................................................................................................................) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 667.82 Td (Item 1A.) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 99.00 667.82 Td (Risk Factors) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 158.15 667.82 Td (...............................................................................................................................) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 653.82 Td (Item 1B.) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 99.00 653.82 Td (Unresolved Staf) Tj ET Q q 0 0 0 rg BT 169.97 653.82 Td (f Comments) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 227.60 653.82 Td (......................................................................................................) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 639.82 Td (Item 2.) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 99.00 639.82 Td (Properties) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 149.80 639.82 Td (..................................................................................................................................) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 625.82 Td (Item 3.) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 99.00 625.82 Td (Legal Proceedings) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 185.90 625.82 Td (.....................................................................................................................) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 611.82 Td (Item 4.) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 99.00 611.82 Td (Mine Safety Disclosures) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 210.90 611.82 Td (............................................................................................................) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 597.22 Td (PART II.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 582.82 Td (Item 5.) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 99.00 582.22 Td (Market for Registrant’) Tj ET Q q 0 0 0 rg BT 194.41 582.22 Td (s Common Equity) Tj ET Q q 0 0 0 rg BT 272.58 582.22 Td (, Related Stockholder Matters and Issuer Purchases ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 108.00 572.22 Td (of Equity Securities) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 197.00 571.82 Td (.................................................................................................................) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 557.82 Td (Item 6.) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 99.00 557.82 Td (Selected Financial Data) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 208.15 557.82 Td (.............................................................................................................) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 543.82 Td (Item 7.) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 99.00 543.82 Td (Management’) Tj ET Q q 0 0 0 rg BT 159.41 543.82 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 237.23 543.82 Td (Analysis of Financial Condition and Results of Operations) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 494.30 543.82 Td (......) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 529.82 Td (Item 7A.) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 99.00 529.82 Td (Quantitative and Qualitative Disclosures about Market Risk) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 360.95 529.82 Td (......................................................) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 515.82 Td (Item 8.) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 99.00 515.82 Td (Financial Statements and Supplementary Data) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 308.15 515.82 Td (.........................................................................) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 501.82 Td (Item 9.) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 99.00 501.82 Td (Changes in and Disagreements with ) Tj ET Q q 0 0 0 rg BT 261.87 501.82 Td (Accountants on ) Tj ET Q q 0 0 0 rg BT 333.03 501.82 Td (Accounting and Financial Disclosure) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 497.10 501.82 Td (.....) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 487.82 Td (Item 9A.) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 99.00 487.82 Td (Controls and Procedures) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 213.70 487.82 Td (...........................................................................................................) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 473.82 Td (Item 9B.) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 99.00 473.82 Td (Other Information) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 180.35 473.82 Td (.......................................................................................................................) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 459.82 Td (PART III.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 445.82 Td (Item 10.) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 99.00 445.82 Td (Directors, Executive Of) Tj ET Q q 0 0 0 rg BT 201.07 445.82 Td (ficers and Corporate Governance) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 352.60 445.82 Td (.........................................................) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 431.82 Td (Item 1) Tj ET Q q 0 0 0 rg BT 79.05 431.82 Td (1.) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 99.00 431.82 Td (Executive Compensation) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 213.70 431.82 Td (...........................................................................................................) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 417.82 Td (Item 12.) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 99.00 417.22 Td (Security Ownership of Certain Beneficial Owners and Management and Related Stockholder ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 108.00 407.22 Td (Matters) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 144.25 406.82 Td (....................................................................................................................................) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 392.82 Td (Item 13.) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 99.00 392.82 Td (Certain Relationships and Related ) Tj ET Q q 0 0 0 rg BT 253.36 392.82 Td (T) Tj ET Q q 0 0 0 rg BT 259.09 392.82 Td (ransactions, and Director Independence) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 438.75 392.82 Td (..........................) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 378.82 Td (Item 14.) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 99.00 378.82 Td (Principal ) Tj ET Q q 0 0 0 rg BT 139.58 378.82 Td (Accounting Fees and Services) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 277.60 378.82 Td (....................................................................................) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 364.82 Td (PART IV.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 350.82 Td (Item 15.) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 99.00 350.82 Td (Exhibits, Financial Statement Schedules) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 280.35 350.82 Td (...................................................................................) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 336.82 Td (Signatures) Tj ET Q BT /F3 10.00 Tf ET BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 517.00 681.82 Td (6) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 517.00 667.82 Td (26) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 517.00 653.82 Td (69) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 517.00 639.82 Td (69) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 517.00 625.82 Td (69) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 517.00 611.82 Td (69) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 517.00 572.22 Td (70) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 517.00 557.82 Td (73) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 517.00 543.82 Td (76) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 517.00 529.82 Td (120) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 517.00 515.82 Td (123) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 517.00 501.82 Td (192) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 517.00 487.82 Td (192) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 517.00 473.82 Td (193) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 517.00 445.82 Td (193) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 517.00 431.82 Td (199) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 517.00 407.22 Td (216) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 517.00 392.82 Td (219) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 517.00 378.82 Td (225) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 517.00 350.82 Td (226) Tj ET Q BT /F3 10.00 Tf ET endstream endobj 7 0 obj <> endobj 8 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 303.20 31.25 Td (3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 220.70 729.75 Td (FOR) Tj ET Q q 0 0 0 rg BT 241.63 729.75 Td (W) Tj ET Q q 0 0 0 rg BT 250.51 729.75 Td (ARD-LOOKING ST) Tj ET Q q 0 0 0 rg BT 336.99 729.75 Td (A) Tj ET Q q 0 0 0 rg BT 343.47 729.75 Td (TEMENTS ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 708.75 Td (This annual report contains forward-looking statements within the meaning of Section) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.87 708.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 465.37 708.75 Td (27A) Tj ET Q q 0 0 0 rg BT 482.61 708.75 Td ( of the U.S. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 696.75 Td (Securities ) Tj ET Q q 0 0 0 rg BT 96.13 696.75 Td (Act of 1933, as amended \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.11 696.75 Td (“) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 234.55 696.75 Td (Securities ) Tj ET Q q 0 0 0 rg BT 280.68 696.75 Td (Act) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.13 696.75 Td (”) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 299.57 696.75 Td (\), and Section) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.27 696.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 363.77 696.75 Td (21E of the U.S. Securities Exchange ) Tj ET Q q 0 0 0 rg BT 527.75 696.75 Td (Act of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 684.75 Td (1934, as amended \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.63 684.75 Td (“) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 160.07 684.75 Td (Exchange ) Tj ET Q q 0 0 0 rg BT 206.77 684.75 Td (Act) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.22 684.75 Td (”) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 225.66 684.75 Td (\), which reflect our current views with respect to, among other things, our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 672.75 Td (future results of operations and financial performance. In some cases, you can identify forward-looking statements ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 660.75 Td (by words such as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.03 660.75 Td (“) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 134.47 660.75 Td (anticipate,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.06 660.75 Td (”) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 184.50 660.75 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.28 660.75 Td (“) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 191.71 660.75 Td (approximately) Tj ET Q q 0 0 0 rg BT 253.22 660.75 Td (,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.00 660.75 Td (”) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 260.44 660.75 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.22 660.75 Td (“) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 267.66 660.75 Td (believe,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.12 660.75 Td (”) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 306.56 660.75 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.34 660.75 Td (“) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 313.78 660.75 Td (continue,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.37 660.75 Td (”) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 358.80 660.75 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.58 660.75 Td (“) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 366.02 660.75 Td (could,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.71 660.75 Td (”) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 397.14 660.75 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.92 660.75 Td (“) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 404.36 660.75 Td (estimate,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.93 660.75 Td (”) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 449.37 660.75 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.15 660.75 Td (“) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 456.59 660.75 Td (expect,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.83 660.75 Td (”) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 493.27 660.75 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.04 660.75 Td (“) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 500.48 660.75 Td (intend,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.51 660.75 Td (”) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 534.95 660.75 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 648.75 Td (“) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 54.44 648.75 Td (may) Tj ET Q q 0 0 0 rg BT 72.59 648.75 Td (,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.37 648.75 Td (”) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.80 648.75 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.58 648.75 Td (“) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 87.02 648.75 Td (outlook,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.05 648.75 Td (”) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 126.48 648.75 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.26 648.75 Td (“) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 133.70 648.75 Td (plan,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.39 648.75 Td (”) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 159.82 648.75 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.60 648.75 Td (“) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 167.04 648.75 Td (potential,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.63 648.75 Td (”) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 212.07 648.75 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.84 648.75 Td (“) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 219.28 648.75 Td (predict,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.08 648.75 Td (”) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 256.51 648.75 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.29 648.75 Td (“) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 263.73 648.75 Td (seek,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.63 648.75 Td (”) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 292.07 648.75 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.85 648.75 Td (“) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 299.29 648.75 Td (should,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.53 648.75 Td (”) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 335.97 648.75 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.75 648.75 Td (“) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 343.19 648.75 Td (will) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.08 648.75 Td (”) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 361.51 648.75 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.75 648.75 Td (“) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 388.19 648.75 Td (would) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.32 648.75 Td (”) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 418.76 648.75 Td ( or the negative version of these ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 636.75 Td (words or other comparable or similar words. ) Tj ET Q q 0 0 0 rg BT 249.89 636.75 Td (These statements identify prospective information. Important factors ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 624.75 Td (could cause actual results to dif) Tj ET Q q 0 0 0 rg BT 189.34 624.75 Td (fer) Tj ET Q q 0 0 0 rg BT 200.46 624.75 Td (, possibly materially) Tj ET Q q 0 0 0 rg BT 286.97 624.75 Td (, from those indicated in these statements. Forward-looking ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 612.75 Td (statements are based on our beliefs, assumptions and expectations of our future performance, taking into account ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 600.75 Td (all information currently available to us. Such forward-looking statements are subject to risks and uncertainties and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 588.75 Td (assumptions relating to our operations, financial results, financial condition, business prospects, growth strategy ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 576.75 Td (and liquidity) Tj ET Q q 0 0 0 rg BT 102.07 576.75 Td (, including, but not limited to, changes in our anticipated revenue and income, which are inherently ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 564.75 Td (volatile; changes in the value of our investments; the pace of our raising of new funds; changes in assets under ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 552.75 Td (management; the timing and receipt of, and impact of taxes on, carried interest; distributions from and liquidation of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 540.75 Td (our existing funds; the amount and timing of distributions on our Class ) Tj ET Q q 0 0 0 rg BT 361.28 540.75 Td (A) Tj ET Q q 0 0 0 rg BT 367.40 540.75 Td ( units; changes in our operating or other ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 528.75 Td (expenses; the degree to which we encounter competition; and general political, economic and market conditions. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 516.75 Td (The factors listed in the item captioned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.98 516.75 Td (“) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 228.42 516.75 Td (Risk Factors) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.98 516.75 Td (”) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 288.42 516.75 Td ( in this annual report provide examples of risks, uncertainties ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 504.75 Td (and events that may cause our actual results to dif) Tj ET Q q 0 0 0 rg BT 272.72 504.75 Td (fer materially from the expectations described in our forward-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 492.75 Td (looking statements. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 471.75 Td (Forward-looking statements speak only as of the date of this annual report. Except as required by law) Tj ET Q q 0 0 0 rg BT 536.80 471.75 Td (, we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 459.75 Td (do not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 447.75 Td (new information, future developments or otherwise. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 231.55 423.75 Td (MARKET ) Tj ET Q q 0 0 0 rg BT 276.73 423.75 Td (AND INDUSTR) Tj ET Q q 0 0 0 rg BT 345.25 423.75 Td (Y) Tj ET Q q 0 0 0 rg BT 351.74 423.75 Td ( DA) Tj ET Q q 0 0 0 rg BT 368.22 423.75 Td (T) Tj ET Q q 0 0 0 rg BT 373.58 423.75 Td (A) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 402.75 Td (This annual report includes market and industry data and forecasts that are derived from independent ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 390.75 Td (reports, publicly available information, various industry publications, other published industry sources and our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 378.75 Td (internal data, estimates and forecasts. Independent reports, industry publications and other published industry ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 366.75 Td (sources generally indicate that the information contained therein was obtained from sources believed to be reliable. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 354.75 Td (W) Tj ET Q q 0 0 0 rg BT 59.26 354.75 Td (e have not commissioned, nor are we af) Tj ET Q q 0 0 0 rg BT 236.39 354.75 Td (filiated with, any of the sources cited herein. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 333.75 Td (Our internal data, estimates and forecasts are based upon information obtained from investors in our funds, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 321.75 Td (partners, trade and business organizations and other contacts in the markets in which we operate and our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 309.75 Td (management’) Tj ET Q q 0 0 0 rg BT 110.41 309.75 Td (s understanding of industry conditions.) Tj ET Q endstream endobj 9 0 obj <> endobj 10 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 303.20 31.25 Td (4) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 741.75 Td (In this annual report, unless the context otherwise requires: ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 720.75 Td (“Oaktree,” “OCG,” “we,” “us,” “our” or “our company” refers to Oaktree Capital Group, LLC and, where ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 708.75 Td (applicable, its subsidiaries and af) Tj ET Q q 0 0 0 rg BT 196.57 708.75 Td (filiates. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 687.75 Td (“Oaktree Operating Group,” or “Operating Group,” refers collectively to the entities in which we have a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 675.75 Td (minority economic interest and indirect control that either \(i\) act as or control the general partners and investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 663.75 Td (advisers of our funds or \(ii\) hold interests in other entities or investments generating income for us. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 642.75 Td (“OCGH” refers to Oaktree Capital Group Holdings, L.P) Tj ET Q q 0 0 0 rg BT 325.91 642.75 Td (., a Delaware limited partnership, which holds an ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 630.75 Td (interest in the Oaktree Operating Group and all of our Class B units. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 609.75 Td (“OCGH unitholders” refers collectively to our senior executives, current and former employees and certain ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 597.75 Td (other investors who hold interests in the Oaktree Operating Group through OCGH. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 576.75 Td (“2007 Private Of) Tj ET Q q 0 0 0 rg BT 158.63 576.75 Td (fering” refers to the sale completed on May 25, 2007 of 23,000,000 of our Class ) Tj ET Q q 0 0 0 rg BT 512.73 576.75 Td (A) Tj ET Q q 0 0 0 rg BT 518.85 576.75 Td ( units to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 564.75 Td (qualified institutional buyers \(as defined in the Securities ) Tj ET Q q 0 0 0 rg BT 301.26 564.75 Td (Act\) in a transaction exempt from the registration ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 552.75 Td (requirements of the Securities ) Tj ET Q q 0 0 0 rg BT 185.07 552.75 Td (Act. Prior to our initial public of) Tj ET Q q 0 0 0 rg BT 322.72 552.75 Td (fering, these Class ) Tj ET Q q 0 0 0 rg BT 407.77 552.75 Td (A) Tj ET Q q 0 0 0 rg BT 413.89 552.75 Td ( units traded on a private over-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 540.75 Td (the-counter market developed by Goldman, Sachs & Co. for tradable unregistered equity securities.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 519.75 Td (“assets under management,” or “AUM,” generally refers to the assets we manage and equals the NA) Tj ET Q q 0 0 0 rg BT 529.92 519.75 Td (V \(as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 507.75 Td (defined below\) of the assets we manage, the leverage on which management fees are charged, the undrawn ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 495.75 Td (capital that we are entitled to call from investors in our funds pursuant to their capital commitments, and the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 483.75 Td (aggregate par value of collateral assets and principal cash held by our collateralized loan obligation vehicles ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 471.75 Td (\(“CLOs”\). Our ) Tj ET Q q 0 0 0 rg BT 116.11 471.75 Td (AUM amounts include ) Tj ET Q q 0 0 0 rg BT 216.16 471.75 Td (AUM for which we charge no management fees. Our definition of ) Tj ET Q q 0 0 0 rg BT 507.98 471.75 Td (AUM is not ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 459.75 Td (based on any definition contained in our operating agreement or the agreements governing the funds that we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 447.75 Td (manage. Our calculation of ) Tj ET Q q 0 0 0 rg BT 174.52 447.75 Td (AUM and the two ) Tj ET Q q 0 0 0 rg BT 253.45 447.75 Td (AUM-related metrics described below may not be directly comparable ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 435.75 Td (to the ) Tj ET Q q 0 0 0 rg BT 77.25 435.75 Td (AUM metrics of other investment managers. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 419.25 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 419.25 Td (“management fee-generating assets under management,” or “management fee-generating ) Tj ET Q q 0 0 0 rg BT 505.90 419.25 Td (AUM,” is a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 407.25 Td (forward-looking metric and reflects the beginning ) Tj ET Q q 0 0 0 rg BT 321.90 407.25 Td (AUM on which we will earn management fees in the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 395.25 Td (following quarter) Tj ET Q q 0 0 0 rg BT 176.82 395.25 Td (, as more fully described in “Management’) Tj ET Q q 0 0 0 rg BT 362.28 395.25 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 440.10 395.25 Td (Analysis of Financial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 383.25 Td (Condition and Results of Operations—Segment and Operating Metrics—Assets Under Management—) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 371.25 Td (Management Fee-generating ) Tj ET Q q 0 0 0 rg BT 235.20 371.25 Td (Assets Under Management.”) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 354.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 354.75 Td (“incentive-creating assets under management,” or “incentive-creating ) Tj ET Q q 0 0 0 rg BT 411.37 354.75 Td (AUM,” refers to the ) Tj ET Q q 0 0 0 rg BT 498.07 354.75 Td (AUM that may ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 342.75 Td (eventually produce incentive income, as more fully described in “Management’) Tj ET Q q 0 0 0 rg BT 450.67 342.75 Td (s Discussion and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 330.75 Td (Analysis of Financial Condition and Results of Operations—Segment and Operating Metrics—Assets ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 318.75 Td (Under Management—Incentive-creating ) Tj ET Q q 0 0 0 rg BT 283.54 318.75 Td (Assets Under Management.”) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 297.75 Td (“consolidated funds” refers to the funds and CLOs that Oaktree is required to consolidate as of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 285.75 Td (applicable reporting date. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 264.75 Td (“funds” refers to investment funds and, where applicable, CLOs and separate accounts that are managed ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 252.75 Td (by us or our subsidiaries. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 231.75 Td (“initial public of) Tj ET Q q 0 0 0 rg BT 151.96 231.75 Td (fering” refers to the listing of our Class ) Tj ET Q q 0 0 0 rg BT 323.15 231.75 Td (A) Tj ET Q q 0 0 0 rg BT 329.27 231.75 Td ( units on the New ) Tj ET Q q 0 0 0 rg BT 409.13 231.75 Td (Y) Tj ET Q q 0 0 0 rg BT 414.88 231.75 Td (ork Stock Exchange on ) Tj ET Q q 0 0 0 rg BT 519.95 231.75 Td (April 12, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 219.75 Td (2012 whereby Oaktree sold 7,888,864 Class ) Tj ET Q q 0 0 0 rg BT 249.57 219.75 Td (A) Tj ET Q q 0 0 0 rg BT 255.69 219.75 Td ( units and selling unitholders sold 954,159 Class ) Tj ET Q q 0 0 0 rg BT 471.94 219.75 Td (A) Tj ET Q q 0 0 0 rg BT 478.06 219.75 Td ( units.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 198.75 Td (“Intermediate Holding Companies” collectively refers to the subsidiaries wholly owned by us. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 177.75 Td (“net asset value,” or “NA) Tj ET Q q 0 0 0 rg BT 193.63 177.75 Td (V) Tj ET Q q 0 0 0 rg BT 199.38 177.75 Td (,” refers to the value of all the assets of a fund \(including cash and accrued ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 165.75 Td (interest and dividends\) less all liabilities of the fund \(including accrued expenses and any reserves established by ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 153.75 Td (us, in our discretion, for contingent liabilities\) without reduction for accrued incentives \(fund level\) because they are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 141.75 Td (reflected in the partners’) Tj ET Q q 0 0 0 rg BT 156.91 141.75 Td ( capital of the fund. ) Tj ET Q BT /F3 1.00 Tf ET q 0 0 0 rg BT 244.19 141.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 120.75 Td (“Relevant Benchmark” refers, with respect to: ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 99.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 99.75 Td (our U.S. High ) Tj ET Q q 0 0 0 rg BT 166.62 99.75 Td (Y) Tj ET Q q 0 0 0 rg BT 172.92 99.75 Td (ield Bond strategy) Tj ET Q q 0 0 0 rg BT 252.23 99.75 Td (, to the Citigroup U.S. High ) Tj ET Q q 0 0 0 rg BT 373.77 99.75 Td (Y) Tj ET Q q 0 0 0 rg BT 380.07 99.75 Td (ield Cash-Pay Capped Index; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 78.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 78.75 Td (our Global High ) Tj ET Q q 0 0 0 rg BT 176.08 78.75 Td (Y) Tj ET Q q 0 0 0 rg BT 182.38 78.75 Td (ield Bond strategy) Tj ET Q q 0 0 0 rg BT 261.69 78.75 Td (, to an Oaktree custom global high yield index that represents 60% ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 66.75 Td (BofA) Tj ET Q q 0 0 0 rg BT 125.13 66.75 Td ( Merrill L) Tj ET Q q 0 0 0 rg BT 163.09 66.75 Td (ynch High ) Tj ET Q q 0 0 0 rg BT 210.16 66.75 Td (Y) Tj ET Q q 0 0 0 rg BT 216.46 66.75 Td (ield Master II Constrained Index and 40% BofA) Tj ET Q q 0 0 0 rg BT 423.80 66.75 Td ( Merrill L) Tj ET Q q 0 0 0 rg BT 461.76 66.75 Td (ynch Global Non-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 54.75 Td (Financial High ) Tj ET Q q 0 0 0 rg BT 169.96 54.75 Td (Y) Tj ET Q q 0 0 0 rg BT 176.26 54.75 Td (ield European Issuers 3% Constrained, ex-Russia Index – USD Hedged from inception ) Tj ET Q endstream endobj 11 0 obj <> endobj 12 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 303.20 31.25 Td (5) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 741.75 Td (through December 31, 2012, and the BofA) Tj ET Q q 0 0 0 rg BT 291.35 741.75 Td ( Merrill L) Tj ET Q q 0 0 0 rg BT 329.32 741.75 Td (ynch Non-Financial Developed Markets High ) Tj ET Q q 0 0 0 rg BT 529.79 741.75 Td (Y) Tj ET Q q 0 0 0 rg BT 536.08 741.75 Td (ield ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 729.75 Td (Constrained Index – USD Hedged thereafter;) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 708.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 708.75 Td (our European High ) Tj ET Q q 0 0 0 rg BT 190.54 708.75 Td (Y) Tj ET Q q 0 0 0 rg BT 196.84 708.75 Td (ield Bond strategy) Tj ET Q q 0 0 0 rg BT 276.15 708.75 Td (, to the BofA) Tj ET Q q 0 0 0 rg BT 330.63 708.75 Td ( Merrill L) Tj ET Q q 0 0 0 rg BT 368.59 708.75 Td (ynch Global Non-Financial High ) Tj ET Q q 0 0 0 rg BT 511.82 708.75 Td (Y) Tj ET Q q 0 0 0 rg BT 518.12 708.75 Td (ield ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 696.75 Td (European Issuers excluding Russia 3% Constrained Index \(USD Hedged\); ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 675.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 675.75 Td (our U.S. Senior Loan strategy \(with the exception of the closed-end funds\), to the Credit Suisse ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 663.75 Td (Leveraged Loan Index; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 642.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 642.75 Td (our European Senior Loan strategy) Tj ET Q q 0 0 0 rg BT 258.92 642.75 Td (, to the Credit Suisse W) Tj ET Q q 0 0 0 rg BT 363.78 642.75 Td (estern European Leveraged Loan Index ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 630.75 Td (\(EUR Hedged\); ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 609.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 609.75 Td (our U.S. Convertible Securities strategy) Tj ET Q q 0 0 0 rg BT 278.33 609.75 Td (, to an Oaktree custom convertible index that represents the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 597.75 Td (Credit Suisse Convertible Securities Index from inception through December 31, 1999, the Goldman ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 585.75 Td (Sachs/Bloomberg Convertible 100 Index from January 1, 2000 through June 30, 2004, and the BofA) Tj ET Q q 0 0 0 rg BT 545.96 585.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 573.75 Td (Merrill L) Tj ET Q q 0 0 0 rg BT 139.19 573.75 Td (ynch ) Tj ET Q q 0 0 0 rg BT 162.54 573.75 Td (All U.S. Convertibles Index thereafter; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 552.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 552.75 Td (our non-U.S. Convertible Securities strategy) Tj ET Q q 0 0 0 rg BT 298.35 552.75 Td (, to an Oaktree custom non-U.S. convertible index that ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 540.75 Td (represents the JACI Global ex-U.S. \(Local\) Index from inception through December 31, 2014 and the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 528.75 Td (Thomson Reuters Global Focus ex-U.S. \(USD hedged\) Index thereafter; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 507.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 507.75 Td (our High Income Convertible Securities strategy) Tj ET Q q 0 0 0 rg BT 315.02 507.75 Td (, to the Citigroup U.S. High ) Tj ET Q q 0 0 0 rg BT 436.56 507.75 Td (Y) Tj ET Q q 0 0 0 rg BT 442.86 507.75 Td (ield Market Index; and) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 486.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 486.75 Td (our Emerging Markets Equities strategy) Tj ET Q q 0 0 0 rg BT 278.33 486.75 Td (, to the Morgan Stanley Capital International Emerging Markets ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 474.75 Td (Index \(Net\).) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 453.75 Td (“senior executives” refers collectively to Howard S. Marks, Bruce ) Tj ET Q q 0 0 0 rg BT 373.88 453.75 Td (A. Karsh, Jay S. Wintrob, John B. Frank, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 441.75 Td (David M. Kirchheimer and Sheldon M. Stone.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 420.75 Td (“Sharpe Ratio” refers to a metric used to calculate risk-adjusted return. ) Tj ET Q q 0 0 0 rg BT 403.18 420.75 Td (The Sharpe Ratio is the ratio of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 408.75 Td (excess return to volatility) Tj ET Q q 0 0 0 rg BT 158.75 408.75 Td (, with excess return defined as the return above that of a riskless asset \(based on the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 396.75 Td (three-month U.S. ) Tj ET Q q 0 0 0 rg BT 128.74 396.75 Td (T) Tj ET Q q 0 0 0 rg BT 134.48 396.75 Td (reasury bill, or for our European Senior Loan strategy) Tj ET Q q 0 0 0 rg BT 369.42 396.75 Td (, the Euro Overnight Index ) Tj ET Q q 0 0 0 rg BT 488.38 396.75 Td (A) Tj ET Q q 0 0 0 rg BT 494.87 396.75 Td (verage\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 384.75 Td (divided by the standard deviation of such return. ) Tj ET Q q 0 0 0 rg BT 267.92 384.75 Td (A) Tj ET Q q 0 0 0 rg BT 274.03 384.75 Td ( higher Sharpe Ratio indicates a return that is higher than would ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 372.75 Td (be expected for the level of risk compared to the risk-free rate. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 351.75 Td (This annual report and its contents do not constitute and should not be construed as an of) Tj ET Q q 0 0 0 rg BT 482.75 351.75 Td (fer of securities of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 339.75 Td (any Oaktree funds. ) Tj ET Q endstream endobj 13 0 obj <> endobj 14 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 303.20 31.25 Td (6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Part I.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 723.75 Td (Item 1. Business) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 705.75 Td (Overview) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 687.75 Td (Oaktree is a leader among global investment managers specializing in alternative investments, with ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 521.89 687.75 Td ($100.5 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 675.75 Td (billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 75.57 675.75 Td ( in assets under management \(“AUM”\) as of December 31, 2016. Our mission is to deliver superior ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 663.75 Td (investment results with risk under control and to conduct our business with the highest integrity) Tj ET Q q 0 0 0 rg BT 467.80 663.75 Td (. W) Tj ET Q q 0 0 0 rg BT 485.40 663.75 Td (e emphasize an ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 651.75 Td (opportunistic, value-oriented and risk-controlled approach to investments in distressed debt, corporate debt ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 639.75 Td (\(including high yield debt and senior loans\), control investing, convertible securities, real estate and listed equities. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 627.75 Td (Over three decades, we have developed a large and growing client base through our ability to identify and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 615.75 Td (capitalize on opportunities for attractive investment returns in less ef) Tj ET Q q 0 0 0 rg BT 350.52 615.75 Td (ficient markets. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 594.75 Td (Our founders were pioneers in the management of high yield bonds, convertible securities and distressed ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 582.75 Td (debt. From those roots we have developed an array of specialized credit- and equity-oriented strategies. ) Tj ET Q q 0 0 0 rg BT 518.04 582.75 Td (As of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 570.75 Td (December 31, 2016, we had ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 178.41 570.75 Td (297) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 195.10 570.75 Td ( investment professionals, including 170 senior investment professionals with an ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 558.75 Td (average 19 years of industry experience, who among them possess the investing, research, analytical, legal, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 546.75 Td (trading and other skills, as well as relationships and experience, that are necessary for long-term success in our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 534.75 Td (complex markets. ) Tj ET Q q 0 0 0 rg BT 133.36 534.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 183.76 534.75 Td (, our compensation and other personnel practices foster a collaborative culture that ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 522.75 Td (facilitates complementary investment strategies benefiting from shared knowledge and insights. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 501.75 Td (W) Tj ET Q q 0 0 0 rg BT 95.26 501.75 Td (e manage assets on behalf of many of the most significant institutional investors in the world. Our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 489.75 Td (clientele includes 75 of the 100 largest U.S. pension plans, 38 states in the United States, over 400 corporations ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 477.75 Td (and/or their pension funds, over 350 university) Tj ET Q q 0 0 0 rg BT 254.38 477.75 Td (, charitable and other endowments and foundations, 16 sovereign ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 465.75 Td (wealth funds and over 350 other non-U.S. institutional investors. Our 25 largest clients participate in an average of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 453.75 Td (four dif) Tj ET Q q 0 0 0 rg BT 80.39 453.75 Td (ferent investment strategies, reflecting the confidence engendered by our consistent firm-wide investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 441.75 Td (approach. ) Tj ET Q q 0 0 0 rg BT 99.48 441.75 Td (Approximately 14% of our ) Tj ET Q q 0 0 0 rg BT 216.21 441.75 Td (AUM represents high-net-worth individuals or sub-advisory relationships with ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 429.75 Td (mutual funds, indicating both the broadening appeal of alternatives to individual investors and our heightened focus ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 417.75 Td (on that market.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 396.75 Td (Since Oaktree’) Tj ET Q q 0 0 0 rg BT 145.41 396.75 Td (s founding in 1995, our ) Tj ET Q q 0 0 0 rg BT 249.38 396.75 Td (AUM has grown significantly) Tj ET Q q 0 0 0 rg BT 374.24 396.75 Td (, even as we have distributed $87 billion ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 384.75 Td (from our closed-end funds.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.95 384.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 173.95 384.75 Td (Although we limit our ) Tj ET Q q 0 0 0 rg BT 269.00 384.75 Td (AUM when appropriate in order to better position us to generate ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 372.75 Td (superior risk-adjusted returns, we have a long-term track record of organically growing our investment strategies, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 360.75 Td (increasing our ) Tj ET Q q 0 0 0 rg BT 115.04 360.75 Td (AUM and expanding our client base. W) Tj ET Q q 0 0 0 rg BT 291.06 360.75 Td (e have raised gross capital of $10 billion or more in each of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 348.75 Td (the last 10 years, including ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 171.18 348.75 Td ($1) Tj ET Q q 0 0 0 rg BT 181.56 348.75 Td (1.6 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 223.81 348.75 Td ( in 2016. ) Tj ET Q q 0 0 0 rg BT 267.18 348.75 Td (As of December 31, 2016, uncalled capital commitments were ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 336.75 Td ($20.8 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.37 336.75 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 315.75 Td (As shown in the chart below) Tj ET Q q 0 0 0 rg BT 203.96 315.75 Td (, our ) Tj ET Q q 0 0 0 rg BT 226.20 315.75 Td (AUM has grown to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 311.23 315.75 Td ($100.5 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 370.17 315.75 Td ( as of December 31, 2016 from $35.6 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 303.75 Td (billion a decade earlier) Tj ET Q q 0 0 0 rg BT 149.51 303.75 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.29 303.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 157.29 303.75 Td (Over the same period, management fee-generating assets under management ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 291.75 Td (\(“management fee-generating ) Tj ET Q q 0 0 0 rg BT 184.53 291.75 Td (AUM”\) grew from $32.5 billion to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 330.69 291.75 Td ($79.8 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 384.06 291.75 Td (, and incentive-creating assets under ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 279.75 Td (management \(“incentive-creating ) Tj ET Q q 0 0 0 rg BT 198.41 279.75 Td (AUM”\) increased from $12.2 billion to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 366.25 279.75 Td ($33.6 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 419.63 279.75 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.25 256.35 Td (Y) Tj ET Q q 0 0 0 rg BT 278.37 256.35 Td (ear-end ) Tj ET Q q 0 0 0 rg BT 316.90 256.35 Td (AUM) Tj ET Q /GS0 gs q 503.00 0 0 192.00 54.50 59.35 cm /I18 Do Q BT /F1 10.00 Tf ET endstream endobj 15 0 obj <> endobj 16 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 303.20 31.25 Td (7) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 741.75 Td (W) Tj ET Q q 0 0 0 rg BT 89.26 741.75 Td (e have systematically broadened employee ownership since our founding to help align interests among ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (employees, our clients and other stakeholders, as well as to facilitate a smooth generational transfer of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (management and ownership. ) Tj ET Q q 0 0 0 rg BT 183.97 717.75 Td (As of December 31, 2016, we had ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 337.95 717.75 Td (939) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 354.64 717.75 Td ( employees, including ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 453.58 717.75 Td (272) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 470.27 717.75 Td ( employee-owners, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 705.75 Td (with of) Tj ET Q q 0 0 0 rg BT 78.72 705.75 Td (fices in 18 cities across 13 countries, of which the largest of) Tj ET Q q 0 0 0 rg BT 341.45 705.75 Td (fices are in Los ) Tj ET Q q 0 0 0 rg BT 410.93 705.75 Td (Angeles \(headquarters\), London, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 693.75 Td (New ) Tj ET Q q 0 0 0 rg BT 72.60 693.75 Td (Y) Tj ET Q q 0 0 0 rg BT 78.35 693.75 Td (ork City and Hong Kong.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 672.75 Td (Structure and Operation of Our Business) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 651.75 Td (Our business is comprised of one segment, our investment management segment, which consists of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 639.75 Td (investment management services that we provide to our clients. Our segment revenue flows from the management ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 627.75 Td (fees and incentive income generated by the funds that we manage, as well as the investment income earned from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 615.75 Td (the investments we make in our funds, third-party funds and other companies. ) Tj ET Q q 0 0 0 rg BT 400.00 615.75 Td (The management fees that we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 603.75 Td (receive are based on the contractual terms of the relevant fund and are typically calculated as a fixed percentage of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 591.75 Td (the capital commitments \(as adjusted for distributions during a fund’) Tj ET Q q 0 0 0 rg BT 348.86 591.75 Td (s liquidation period\), drawn capital, cost basis or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 579.75 Td (NA) Tj ET Q q 0 0 0 rg BT 63.15 579.75 Td (V of the particular fund. Incentive income represents our share \(typically 20%\) of the investors’) Tj ET Q q 0 0 0 rg BT 482.43 579.75 Td ( profits in most of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 567.75 Td (the closed-end and evergreen funds. Investment income reflects the investment return on a mark-to-market basis ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 555.75 Td (and our equity participation on the amounts that we invest in Oaktree and third-party funds, as well as in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 543.75 Td (collateralized loan obligation vehicles \(“CLOs”\) and other companies. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 522.75 Td (Structure of Funds ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 501.75 Td (Closed-end Funds ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 480.75 Td (Our closed-end funds are typically structured as limited partnerships that have a 10- or 1) Tj ET Q q 0 0 0 rg BT 470.01 480.75 Td (1-year term and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 468.75 Td (have a specified period during which clients can subscribe for limited partnership interests in the fund. Once a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 456.75 Td (client is admitted as a limited partner) Tj ET Q q 0 0 0 rg BT 211.74 456.75 Td (, that client is required to contribute capital when called by us as the general ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 444.75 Td (partner) Tj ET Q q 0 0 0 rg BT 81.13 444.75 Td (, and generally cannot withdraw its investment. Our closed-end funds have an investment period that ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 432.75 Td (generally ranges from three to five years, during which we are permitted to call the committed capital of those funds ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 420.75 Td (to make investments. ) Tj ET Q q 0 0 0 rg BT 149.49 420.75 Td (As closed-end funds liquidate their investments, we typically distribute the proceeds to the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 408.75 Td (clients, although during the investment period we have the ability to retain or recall such proceeds to make ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 396.75 Td (additional investments. Once we have committed to invest approximately 80% of the capital in a particular fund, we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 384.75 Td (typically raise a new fund in the same strategy) Tj ET Q q 0 0 0 rg BT 253.80 384.75 Td (, generally ensuring that we always have capital to invest in new ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 372.75 Td (opportunities. W) Tj ET Q q 0 0 0 rg BT 124.85 372.75 Td (e may also provide discretionary management services for clients within our closed-end fund ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 360.75 Td (strategies through a separate account or through a limited partnership or limited liability company managed by us ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 348.75 Td (with the client as the sole limited partner or sole non-managing member \(a “fund-of-one”\).) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 327.75 Td (Our closed-end funds also include CLOs for which we serve as collateral manager) Tj ET Q q 0 0 0 rg BT 442.96 327.75 Td (. CLOs are structured ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 315.75 Td (finance vehicles in which we make an investment and for which we are entitled to earn management fees. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 303.75 Td (Investors in CLOs are generally unable to redeem their interests until the CLO liquidates, is called or otherwise ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 291.75 Td (terminates.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 270.75 Td (Open-end Funds ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 249.75 Td (Our commingled open-end funds are typically structured as limited partnerships that are designed to admit ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 237.75 Td (clients as new limited partners \(or accept additional capital from existing limited partners\) on an ongoing basis ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 225.75 Td (during the fund’) Tj ET Q q 0 0 0 rg BT 118.76 225.75 Td (s life. Clients in commingled open-end funds typically contribute all of their committed capital upon ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 213.75 Td (being admitted to the fund. ) Tj ET Q q 0 0 0 rg BT 173.79 213.75 Td (These funds do not have an investment period and do not distribute proceeds of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 201.75 Td (realized investments to clients. W) Tj ET Q q 0 0 0 rg BT 200.99 201.75 Td (e are permitted to commit the fund’) Tj ET Q q 0 0 0 rg BT 355.32 201.75 Td (s capital \(including realized proceeds\) to new ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 189.75 Td (investments at any time during the fund’) Tj ET Q q 0 0 0 rg BT 226.58 189.75 Td (s life. Clients in commingled open-end funds generally have the right to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 177.75 Td (withdraw their capital from the fund on a monthly basis \(with prior written notice of up to 90 days\). ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 156.75 Td (W) Tj ET Q q 0 0 0 rg BT 89.26 156.75 Td (e also provide discretionary management services for clients through separate accounts within the open-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 144.75 Td (end fund strategies. Clients establish accounts with us by depositing funds or securities into accounts maintained ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 132.75 Td (by qualified independent custodians and granting us discretionary authority to invest such funds pursuant to their ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 120.75 Td (investment needs and objectives, as stated in an investment management agreement. Separate account clients ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 108.75 Td (generally may terminate our services at any time by providing us with prior notice of 30 days or less. ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 87.75 Td (Evergreen Funds ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 66.75 Td (Our evergreen funds invest in marketable securities, private debt and equity) Tj ET Q q 0 0 0 rg BT 414.44 66.75 Td (, and in certain cases on a long ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 54.75 Td (or short basis. ) Tj ET Q q 0 0 0 rg BT 117.81 54.75 Td (As with open-end funds, commingled evergreen funds are designed to accept new capital on an ) Tj ET Q endstream endobj 17 0 obj <> endobj 18 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 303.20 31.25 Td (8) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (ongoing basis and generally do not distribute proceeds of realized investments to clients. W) Tj ET Q q 0 0 0 rg BT 457.27 741.75 Td (e also provide ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (discretionary management services for clients through separate accounts or funds-of-one within our evergreen fund ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (strategies. Clients in evergreen funds are generally subject to a lock-up, which restricts their ability to withdraw ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 705.75 Td (their entire capital for a certain period of time after their initial subscription.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 684.75 Td (Management Fees ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 663.75 Td (W) Tj ET Q q 0 0 0 rg BT 89.26 663.75 Td (e receive management fees monthly or quarterly based on annual fee rates for our investment advisory ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 651.75 Td (services. ) Tj ET Q q 0 0 0 rg BT 94.83 651.75 Td (The contractual terms of those management fees generally vary by fund structure. For most closed-end ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 639.75 Td (funds, the management fee rate is applied against committed capital during the fund’) Tj ET Q q 0 0 0 rg BT 423.94 639.75 Td (s investment period and the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 627.75 Td (lesser of total funded capital or cost basis of assets in the liquidation period. However) Tj ET Q q 0 0 0 rg BT 429.10 627.75 Td (, for certain closed-end funds, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 615.75 Td (management fees during the investment period are calculated based on drawn capital or cost basis. ) Tj ET Q q 0 0 0 rg BT 496.37 615.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 546.77 615.75 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 603.75 Td (for those closed-end funds for which management fees are based on committed capital, we may elect to delay the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 591.75 Td (start of the fund’) Tj ET Q q 0 0 0 rg BT 121.53 591.75 Td (s investment period and thus its full management fees, in which case we earn management fees ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 579.75 Td (based on drawn capital, and in certain cases outstanding borrowings under a fund-level credit facility made in lieu of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 567.75 Td (drawing capital, until we elect to start the fund’) Tj ET Q q 0 0 0 rg BT 254.38 567.75 Td (s investment period. Our right to receive management fees typically ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 555.75 Td (ends after 10 or 1) Tj ET Q q 0 0 0 rg BT 127.64 555.75 Td (1 years from either the initial closing date or the start of the investment period, even if assets ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 543.75 Td (remain in the fund. In the case of CLOs, a portion of our management fees is dependent on the suf) Tj ET Q q 0 0 0 rg BT 488.98 543.75 Td (ficiency of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 531.75 Td (particular vehicle’) Tj ET Q q 0 0 0 rg BT 127.08 531.75 Td (s cash flow) Tj ET Q q 0 0 0 rg BT 175.99 531.75 Td (. For open-end and evergreen funds, the management fee is generally based on the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 519.75 Td (NA) Tj ET Q q 0 0 0 rg BT 63.15 519.75 Td (V of the fund. In the case of certain open-end and evergreen fund accounts, we have the potential to earn ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 507.75 Td (performance-based fees, typically in reference to a relevant benchmark index or hurdle rate. From time to time, in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 495.75 Td (our sole discretion we may af) Tj ET Q q 0 0 0 rg BT 179.32 495.75 Td (ford certain investors in our funds or clients of separate accounts more favorable ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 483.75 Td (economic terms than other investors in the same investment strategy) Tj ET Q q 0 0 0 rg BT 354.39 483.75 Td (, including with respect to management and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 471.75 Td (performance-based fees, generally based on the aggregate size of commitments of such investor or client, as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 459.75 Td (applicable, to one or more funds or accounts managed by us.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 438.75 Td (Incentive Income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 417.75 Td (W) Tj ET Q q 0 0 0 rg BT 89.26 417.75 Td (e have the potential to earn incentive income from closed-end funds, most of which follow the so-called ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 405.75 Td (European-style waterfall, whereby we receive incentive income only after the fund first distributes all contributed ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 393.75 Td (capital plus an annual preferred return, typically 8%. Once this occurs, we generally receive as incentive income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 381.75 Td (80% of all distributions otherwise attributable to our investors, and those investors receive the remaining 20% until ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 369.75 Td (we have received, as incentive income, 20% of all such distributions in excess of the contributed capital from the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 357.75 Td (inception of the fund. ) Tj ET Q q 0 0 0 rg BT 148.22 357.75 Td (Thereafter) Tj ET Q q 0 0 0 rg BT 193.80 357.75 Td (, all such future distributions attributable to our investors are distributed 80% to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 345.75 Td (those investors and 20% to us as incentive income. ) Tj ET Q q 0 0 0 rg BT 282.35 345.75 Td (As a result, we generally receive incentive income, if any) Tj ET Q q 0 0 0 rg BT 532.29 345.75 Td (, in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 333.75 Td (the latter part of a fund’) Tj ET Q q 0 0 0 rg BT 152.66 333.75 Td (s life, although earlier in a fund’) Tj ET Q q 0 0 0 rg BT 290.90 333.75 Td (s term we may receive tax distributions, which we recognize ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 321.75 Td (as incentive income, to cover our allocable share of income taxes until we are otherwise entitled to payment of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 309.75 Td (incentive income. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 288.75 Td (Certain evergreen funds pay annual incentive income equal to 10% to 20% of the year) Tj ET Q q 0 0 0 rg BT 461.72 288.75 Td (’) Tj ET Q q 0 0 0 rg BT 463.76 288.75 Td (s profits, subject to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 276.75 Td (either a high-water mark or hurdle rate. ) Tj ET Q q 0 0 0 rg BT 228.23 276.75 Td (The high-water mark refers to the highest historical NA) Tj ET Q q 0 0 0 rg BT 469.26 276.75 Td (V attributable to a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 264.75 Td (limited partner) Tj ET Q q 0 0 0 rg BT 113.73 264.75 Td (’) Tj ET Q q 0 0 0 rg BT 115.77 264.75 Td (s account when either incentive income has been earned or the capital was contributed. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 243.75 Td (Investment Income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 222.75 Td (W) Tj ET Q q 0 0 0 rg BT 89.26 222.75 Td (e earn segment investment income from our corporate investments in funds and companies, with Oaktree-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 210.75 Td (managed funds constituting the bulk of our corporate investments. Our investments in Oaktree-managed funds ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 198.75 Td (generally fall into one of four categories: general partner interests in commingled funds or funds-of-one, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 186.75 Td (investments in CLOs, seed capital for new investment strategies prior to third-party capital raising, and corporate ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 174.75 Td (cash management. In the case of general partner interests in our closed-end or evergreen funds, we typically ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 162.75 Td (invest the greater of 2.5% of committed capital or $20 million in each fund, not to exceed $100 million per fund. For ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 150.75 Td (CLOs, we generally invest 5%, but no more than 10%, of the CLO’) Tj ET Q q 0 0 0 rg BT 343.31 150.75 Td (s total par value. For strategic purposes, we also ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 138.75 Td (invest in a handful of third-party managed funds or companies. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 117.75 Td (Our investments in companies include a one-fifth equity stake in DoubleLine Capital LP) Tj ET Q q 0 0 0 rg BT 465.03 117.75 Td ( and its af) Tj ET Q q 0 0 0 rg BT 508.21 117.75 Td (filiates ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 105.75 Td (\(collectively) Tj ET Q q 0 0 0 rg BT 100.94 105.75 Td (, “DoubleLine”\), a Southern California-based investment management firm that sought our start-up ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 93.75 Td (consulting and financial involvement shortly after its founding in December 2009 by Jef) Tj ET Q q 0 0 0 rg BT 432.81 93.75 Td (frey Gundlach and others ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 81.75 Td (who had previously worked together for over 20 years. From first managing assets in ) Tj ET Q q 0 0 0 rg BT 429.62 81.75 Td (April 2010, DoubleLine has ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 69.75 Td (grown to over $100 billion in assets under management as of December 31, 2016. DoubleLine invests across fixed ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 57.75 Td (income, equities and commodities through mutual funds, hedge funds and separate accounts.) Tj ET Q endstream endobj 19 0 obj <> endobj 20 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 303.20 31.25 Td (9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Our Investment ) Tj ET Q q 0 0 0 rg BT 125.76 741.75 Td (Approach ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.50 720.75 Td (Our goal is excellence in investing. ) Tj ET Q q 0 0 0 rg BT 240.85 720.75 Td (This means achieving attractive returns without commensurate risk, an ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 708.75 Td (imbalance which can only be achieved in markets that are not “ef) Tj ET Q q 0 0 0 rg BT 337.20 708.75 Td (ficient.” ) Tj ET Q q 0 0 0 rg BT 374.43 708.75 Td (Although we strive for superior returns, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 696.75 Td (our first priority is that our actions produce consistency) Tj ET Q q 0 0 0 rg BT 290.47 696.75 Td (, protection of capital and superior performance in bad times. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 684.75 Td (At our core, we are contrarian, value-oriented investors focused on buying securities and companies at prices ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 672.75 Td (below their intrinsic value and selling or exiting those investments when they become fairly or fully valued. W) Tj ET Q q 0 0 0 rg BT 531.72 672.75 Td (e ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 660.75 Td (believe we can do this best by investing in markets where specialization and superior analysis can of) Tj ET Q q 0 0 0 rg BT 494.50 660.75 Td (fer an ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 648.75 Td (investing edge.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 627.75 Td (In our investing activities, we adhere to the following fundamental tenets: ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 606.75 Td (• ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 92.00 606.75 Td (Focus on Risk-Adjusted Returns) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 235.39 606.75 Td (. Our primary goal is not simply to achieve superior investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 594.75 Td (performance, but to do so with less-than-commensurate risk. W) Tj ET Q q 0 0 0 rg BT 375.26 594.75 Td (e believe that the best long-term records ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 582.75 Td (are built more through the avoidance of losses in bad times than the achievement of superior relative ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 570.75 Td (returns in good times. It is our overriding belief that, especially in the opportunistic markets in which we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 558.75 Td (work, “if we avoid the losers, the winners will take care of themselves.” ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 537.75 Td (• ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 92.00 537.75 Td (Focus on Fundamental ) Tj ET Q q 0 0 0 rg BT 196.69 537.75 Td (Analysis) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 233.92 537.75 Td (. W) Tj ET Q q 0 0 0 rg BT 257.07 537.75 Td (e employ a bottom-up approach to investing, based on proprietary) Tj ET Q q 0 0 0 rg BT 548.17 537.75 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 525.75 Td (company-specific research. W) Tj ET Q q 0 0 0 rg BT 228.53 525.75 Td (e seek to generate consistent outperformance through superior knowledge ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 513.75 Td (of companies and their securities, not from macro-forecasting. W) Tj ET Q q 0 0 0 rg BT 380.82 513.75 Td (e do not believe in the predictive ability ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 501.75 Td (required to correctly time markets. However) Tj ET Q q 0 0 0 rg BT 287.62 501.75 Td (, concern about the market climate may cause us to tilt ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 489.75 Td (toward more defensive investments, increase selectivity or act more deliberately) Tj ET Q q 0 0 0 rg BT 445.30 489.75 Td (. Our 297 investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 477.75 Td (professionals have developed a deep and thorough understanding of a wide number of companies and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 465.75 Td (industries, providing us with a significant institutional knowledge base.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 79.00 444.75 Td (• ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 92.00 444.75 Td (Specialization) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 153.70 444.75 Td (. W) Tj ET Q q 0 0 0 rg BT 176.85 444.75 Td (e of) Tj ET Q q 0 0 0 rg BT 193.35 444.75 Td (fer a broad array of specialized investment strategies. W) Tj ET Q q 0 0 0 rg BT 445.51 444.75 Td (e believe this of) Tj ET Q q 0 0 0 rg BT 514.81 444.75 Td (fers the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 432.75 Td (surest path to the results we, and our clients, seek. Clients interested in a single investment strategy can ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 420.75 Td (limit themselves to the risk exposure of that particular strategy) Tj ET Q q 0 0 0 rg BT 365.26 420.75 Td (, while clients interested in more than one ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 408.75 Td (investment strategy can combine investments in our funds to achieve their desired mix. Our focus on ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 396.75 Td (specific strategies has allowed us to build investment teams with extensive experience and expertise. ) Tj ET Q q 0 0 0 rg BT 544.46 396.75 Td (At ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 384.75 Td (the same time, our teams access and leverage each other) Tj ET Q q 0 0 0 rg BT 349.73 384.75 Td (’) Tj ET Q q 0 0 0 rg BT 351.77 384.75 Td (s expertise, af) Tj ET Q q 0 0 0 rg BT 413.84 384.75 Td (fording us both the benefits of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 372.75 Td (specialization and the strengths of a larger organization.) Tj ET Q endstream endobj 21 0 obj <> endobj 22 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (10) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Our ) Tj ET Q q 0 0 0 rg BT 70.19 741.75 Td (Asset Classes and Investment Strategies) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 720.75 Td (W) Tj ET Q q 0 0 0 rg BT 89.26 720.75 Td (e manage investments in a number of strategies across six asset classes: Corporate Debt, Convertible ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 708.75 Td (Securities, Distressed Debt, Control Investing, Real Estate and Listed Equities. ) Tj ET Q q 0 0 0 rg BT 403.88 708.75 Td (The diversity of our investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 696.75 Td (strategies allows us to meet a wide range of investor needs suited for dif) Tj ET Q q 0 0 0 rg BT 369.43 696.75 Td (ferent market environments globally and, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 684.75 Td (for certain strategies, targeted regions, while providing us with a long-term diversified revenue base. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 663.75 Td (Our ) Tj ET Q q 0 0 0 rg BT 98.90 663.75 Td (AUM by asset class and investment strategy as of December 31, 2016 is shown below:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 223.5 624.25 m 262.5 624.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 624.25 m 313.5 624.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472.5 624.25 m 511.5 624.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 519.5 624.25 m 562.5 624.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 519.5 547.25 m 562.5 547.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 519.5 534.25 m 562.5 534.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 519.5 482.25 m 562.5 482.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 519.5 482.25 m 562.5 482.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 519.5 469.25 m 562.5 469.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 469.25 m 313.5 469.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 456.25 m 313.5 456.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 519.5 404.25 m 562.5 404.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 404.25 m 313.5 404.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 391.25 m 313.5 391.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 519.5 391.25 m 562.5 391.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 391.25 m 313.5 391.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 519.5 391.25 m 562.5 391.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 519.5 366.25 m 562.5 366.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 519.5 364.25 m 562.5 364.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 339.25 m 313.5 339.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 326.25 m 313.5 326.25 l s BT /F2 6.50 Tf ET q 0 0 0 rg BT 229.45 634.67 Td (Strategy) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 228.05 628.17 Td (Inception) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 478.45 634.67 Td (Strategy) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 477.05 628.17 Td (Inception) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 284.05 628.17 Td (AUM) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 533.05 628.17 Td (AUM) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 273.25 617.02 Td (\(in millions\)) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 522.25 617.02 Td (\(in millions\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 603.48 Td (Corporate Debt:) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 337.00 603.48 Td (Control Investing:) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 53.00 590.48 Td (U.S. High Yield Bonds) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 133.30 590.93 Td (.......................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 233.60 590.48 Td (1986) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 273.00 590.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 285.80 590.53 Td (17,292) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 337.00 590.48 Td (Special Situations ) Tj ET Q BT /F3 8.00 Tf ET BT /F3 5.20 Tf ET q 0 0 0 rg BT 402.82 594.29 Td (\(1\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 409.17 590.48 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 411.20 590.93 Td (..........................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 482.60 590.48 Td (1994) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 522.00 590.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 538.60 590.53 Td (5,547) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 53.00 577.48 Td (Global High Yield Bonds) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 142.20 577.93 Td (...................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 233.60 577.48 Td (2010) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 290.25 577.53 Td (4,450) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 337.00 577.48 Td (European Principal) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 406.75 577.93 Td (............................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 482.60 577.48 Td (2006) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 538.60 577.53 Td (5,543) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 53.00 564.48 Td (European High Yield Bonds) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 153.30 564.93 Td (..............................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 233.60 564.48 Td (1999) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 290.25 564.53 Td (1,316) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 337.00 564.48 Td (Infrastructure Investing ) Tj ET Q BT /F3 8.00 Tf ET BT /F3 5.20 Tf ET q 0 0 0 rg BT 420.59 568.29 Td (\(2\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 426.95 564.48 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 428.95 564.93 Td (..................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 482.60 564.48 Td (2014) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 538.60 564.53 Td (2,762) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 53.00 551.48 Td (U.S. Senior Loans) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 119.95 551.93 Td (.............................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 233.60 551.48 Td (2007) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 290.25 551.53 Td (7,735) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 337.00 551.48 Td (Power Opportunities) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 411.20 551.93 Td (..........................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 482.60 551.48 Td (1999) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 538.60 551.53 Td (1,775) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 53.00 538.48 Td (European Senior Loans) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 139.95 538.93 Td (....................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 233.60 538.48 Td (2009) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 290.25 538.53 Td (3,048) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 534.15 538.48 Td (15,627) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 53.00 525.48 Td (European High Yield Bonds and Senior Loans) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 217.75 525.93 Td (.) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 233.60 525.48 Td (2016) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 296.95 525.53 Td (220) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 337.00 525.48 Td (Real Estate:) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 53.00 512.48 Td (Strategic Credit) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 111.05 512.93 Td (.................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 233.60 512.48 Td (2012) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 290.25 512.53 Td (3,281) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 337.00 512.48 Td (Real Estate Opportunities) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 428.95 512.93 Td (..................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 482.60 512.48 Td (1994) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 538.60 512.53 Td (6,557) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 53.00 499.48 Td (Mezzanine Finance) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 124.40 499.93 Td (...........................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 233.60 499.48 Td (2001) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 290.25 499.53 Td (1,469) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 337.00 499.48 Td (Real Estate Debt) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 400.05 499.93 Td (...............................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 482.60 499.48 Td (2012) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 538.60 499.53 Td (1,475) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 53.00 486.48 Td (European Private Debt) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 135.50 486.93 Td (......................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 233.60 486.48 Td (2013) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 296.95 486.53 Td (659) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 337.00 486.48 Td (Real Estate Value-Add) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 420.10 486.93 Td (......................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 482.60 486.48 Td (2016) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 545.30 486.53 Td (615) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 53.00 473.48 Td (Emerging Markets Debt Total Return) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 184.40 473.93 Td (................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 233.60 473.48 Td (2015) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 296.95 473.53 Td (441) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 538.60 473.53 Td (8,647) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 285.80 460.53 Td (39,911) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 337.00 460.48 Td (Listed Equities:) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 447.48 Td (Convertible Securities:) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 337.00 447.48 Td (Emerging Markets Equities) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 433.40 447.93 Td (................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 482.85 447.48 Td (2011) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 538.60 447.53 Td (3,084) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 53.00 434.48 Td (U.S. Convertibles) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 117.75 434.93 Td (..............................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 233.60 434.48 Td (1987) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 290.25 434.53 Td (3,411) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 337.00 434.48 Td (Emerging Markets Absolute Return) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 462.30 434.93 Td (...) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 482.60 434.48 Td (1997) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 545.30 434.53 Td (131) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 53.00 421.48 Td (Non-U.S. Convertibles) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 135.50 421.93 Td (......................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 233.60 421.48 Td (1994) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 290.25 421.53 Td (1,456) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 337.00 421.48 Td (Value Equities) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 388.95 421.93 Td (....................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 482.60 421.48 Td (2012) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 545.30 421.53 Td (371) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 53.00 408.48 Td (High Income Convertibles) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 146.65 408.93 Td (.................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 233.60 408.48 Td (1989) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 296.95 408.53 Td (864) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 337.00 408.48 Td (Other) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 360.05 408.93 Td (.................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 549.75 408.48 Td (69) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 290.25 395.53 Td (5,731) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 538.60 395.53 Td (3,655) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 382.48 Td (Distressed Debt:) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 53.00 369.48 Td (Distressed Debt) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 113.30 369.93 Td (................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 233.60 369.48 Td (1988) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 285.80 369.53 Td (24,751) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 337.00 369.48 Td (Total) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 355.60 369.93 Td (...................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 522.00 369.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 529.70 369.48 Td (100,504) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 53.00 356.48 Td (Value Opportunities) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 124.40 356.93 Td (...........................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 233.60 356.48 Td (2007) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 290.25 356.53 Td (1,272) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 53.00 343.48 Td (Emerging Markets Opportunities) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 168.85 343.93 Td (.......................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 233.60 343.48 Td (2012) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 296.95 343.53 Td (910) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 285.80 330.53 Td (26,933) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 312.25 m 150.5 312.25 l s BT /F1 10.00 Tf ET BT /F3 8.00 Tf ET q 0 0 0 rg BT 50.00 303.15 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 72.50 303.15 Td (Ef) Tj ET Q q 0 0 0 rg BT 79.91 303.15 Td (fective November 2016, the Global Principal strategy was renamed Special Situations.) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 50.00 293.55 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 72.50 293.55 Td (Oaktree acquired the Highstar Capital team in 2014, which represents the inception date of this strategy) Tj ET Q q 0 0 0 rg BT 438.78 293.55 Td (. Highstar) Tj ET Q q 0 0 0 rg BT 475.53 293.55 Td (’) Tj ET Q q 0 0 0 rg BT 477.16 293.55 Td (s inception date was ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 283.95 Td (2000.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 250.95 Td (W) Tj ET Q q 0 0 0 rg BT 95.26 250.95 Td (e add an investment strategy when we identify a market with potential for attractive returns that we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 238.95 Td (believe can be exploited in a risk-controlled fashion, and where we have access to the investment talent capable of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 226.95 Td (producing the results we seek. W) Tj ET Q q 0 0 0 rg BT 199.89 226.95 Td (e consider it far more important to avoid mistakes than to capture every ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 214.95 Td (opportunity) Tj ET Q q 0 0 0 rg BT 98.74 214.95 Td (. Because of the high priority we place on assuring that these requirements are met, we prefer that new ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 202.95 Td (products represent “step-outs” from our current investment strategies into related fields that are managed by people ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 190.95 Td (with whom we have had extensive experience or for whom we can validate qualifications. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.50 168.95 Td (Our asset classes and investment strategies are described below: ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 147.95 Td (Corporate Debt) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 126.95 Td (High ) Tj ET Q q 0 0 0 rg BT 73.16 126.95 Td (Y) Tj ET Q q 0 0 0 rg BT 79.65 126.95 Td (ield Bonds ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.50 105.95 Td (W) Tj ET Q q 0 0 0 rg BT 90.76 105.95 Td (e view high yield bond investing as the conscious bearing of risk for potential profit, and we follow a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 93.95 Td (defensive, downside-oriented strategy) Tj ET Q q 0 0 0 rg BT 217.69 93.95 Td (. Rather than stretching for higher yields, our primary focus is managing ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 81.95 Td (credit risk, avoiding dangerous concentrations and minimizing defaults. W) Tj ET Q q 0 0 0 rg BT 378.32 81.95 Td (e have been managing high yield bonds ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 69.95 Td (for over three decades, starting in January 1986 with U.S. high yield bonds, and over that time our U.S. strategy ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 57.95 Td (has experienced an average default rate equal to approximately one-third the market as a whole. By controlling risk ) Tj ET Q endstream endobj 23 0 obj <> endobj 24 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.80 31.25 Td (1) Tj ET Q q 0 0 0 rg BT 305.62 31.25 Td (1) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (and preserving profits, we seek to outperform our benchmark over full market cycles with less-than-commensurate ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (risk.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 708.75 Td (W) Tj ET Q q 0 0 0 rg BT 89.26 708.75 Td (e were among the first firms to establish a dedicated European high yield bond strategy) Tj ET Q q 0 0 0 rg BT 474.29 708.75 Td (, in 1999, when the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 696.75 Td (European high yield bond market was still in its nascent stage. In recent years, the European high yield bond ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 684.75 Td (market has grown significantly) Tj ET Q q 0 0 0 rg BT 183.20 684.75 Td (, which has allowed us to construct diverse portfolios of bonds issued by credit-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 672.75 Td (worthy companies from a variety of sectors across developed European countries. ) Tj ET Q q 0 0 0 rg BT 418.89 672.75 Td (This strategy is managed by a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 660.75 Td (dedicated team of leveraged-finance specialists in our London of) Tj ET Q q 0 0 0 rg BT 335.56 660.75 Td (fice and employs the same investment approach ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 648.75 Td (successfully applied by our U.S. High ) Tj ET Q q 0 0 0 rg BT 217.68 648.75 Td (Y) Tj ET Q q 0 0 0 rg BT 223.97 648.75 Td (ield Bond team. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 626.75 Td (Over the years, many of our U.S. clients invested in our Expanded High ) Tj ET Q q 0 0 0 rg BT 398.87 626.75 Td (Y) Tj ET Q q 0 0 0 rg BT 405.17 626.75 Td (ield Fund, which included an ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 614.75 Td (opportunistic allocation to our European High ) Tj ET Q q 0 0 0 rg BT 252.17 614.75 Td (Y) Tj ET Q q 0 0 0 rg BT 258.47 614.75 Td (ield Fund, to enhance performance and increase portfolio ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 602.75 Td (diversification. ) Tj ET Q q 0 0 0 rg BT 118.36 602.75 Td (As a natural extension, in 2010 we established the Global High ) Tj ET Q q 0 0 0 rg BT 398.92 602.75 Td (Y) Tj ET Q q 0 0 0 rg BT 405.21 602.75 Td (ield Bond strategy) Tj ET Q q 0 0 0 rg BT 484.52 602.75 Td (, a single ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 590.75 Td (portfolio approach to investing in the lower-rated, yet credit-worthy performing bonds of North ) Tj ET Q q 0 0 0 rg BT 463.54 590.75 Td (American and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 578.75 Td (European companies. By employing a highly disciplined, credit-intensive research approach to construct a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 566.75 Td (diversified, risk-controlled portfolio, this strategy targets the most attractive risk/return opportunities we identify ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 554.75 Td (across the developed world.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 532.75 Td (Senior Loans) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 511.75 Td (In September 2007, we formed the U.S. Senior Loan strategy to capitalize on the backlog of unsold or “hung” ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 499.75 Td (bridge loans held by investment banks near the start of the global financial crisis. ) Tj ET Q q 0 0 0 rg BT 411.87 499.75 Td (As the market environment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 487.75 Td (changed, we expanded the strategy to include investing in senior bank loans. ) Tj ET Q q 0 0 0 rg BT 396.16 487.75 Td (This strategy typically invests in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 475.75 Td (broadly-syndicated, senior-secured loans or other senior) Tj ET Q q 0 0 0 rg BT 299.02 475.75 Td (, non-investment grade debt. In most instances, these ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 463.75 Td (instruments constitute the most senior position in the capital structure of the borrower) Tj ET Q q 0 0 0 rg BT 425.74 463.75 Td (. W) Tj ET Q q 0 0 0 rg BT 443.33 463.75 Td (e employ a fundamental, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 451.75 Td (bottom-up credit analysis when approaching potential loan investments. W) Tj ET Q q 0 0 0 rg BT 381.67 451.75 Td (e rely on the same downside ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 439.75 Td (sensitivities in our models and proprietary credit scoring matrix that have been successfully applied for over three ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 427.75 Td (decades by our High ) Tj ET Q q 0 0 0 rg BT 144.32 427.75 Td (Y) Tj ET Q q 0 0 0 rg BT 150.62 427.75 Td (ield Bond team.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 406.75 Td (In May 2009, we capitalized on our experience in senior loans and European high yield bonds by forming the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 394.75 Td (European Senior Loan strategy to invest in senior secured loans in the growing European bank loan market. ) Tj ET Q q 0 0 0 rg BT 532.89 394.75 Td (The ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 382.75 Td (European Senior Loan strategy focuses on the senior-secured debt of issuers in Europe, and a majority of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 370.75 Td (portfolio consists of floating-rate obligations. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 349.75 Td (In 2012, we added a new product under the Senior Loan umbrella, Enhanced Income, to create a portfolio of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 337.75 Td (below-investment grade loans using a moderate amount of leverage. Building on our experience in Senior Loans ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 325.75 Td (and Enhanced Income, in 2014 we added CLOs to our product of) Tj ET Q q 0 0 0 rg BT 338.34 325.75 Td (ferings, both in the U.S. and Europe. CLOs are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 313.75 Td (securities backed by a diversified pool of below-investment grade loans sold to investors often seeking credit-rated ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 301.75 Td (securities or the potential for higher-than-average returns. Both Enhanced Income and our fully-levered CLOs ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 289.75 Td (utilize the same investment approach as our Senior Loan strategy) Tj ET Q q 0 0 0 rg BT 339.98 289.75 Td (.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 267.75 Td (European High ) Tj ET Q q 0 0 0 rg BT 119.31 267.75 Td (Y) Tj ET Q q 0 0 0 rg BT 125.80 267.75 Td (ield Bonds and Senior Loans) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.50 246.75 Td (Drawing on over 15 years of experience and expertise in European non-investment grade credits, in 2016 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 234.75 Td (we launched our step-out European High ) Tj ET Q q 0 0 0 rg BT 234.38 234.75 Td (Y) Tj ET Q q 0 0 0 rg BT 240.68 234.75 Td (ield Bond and Senior Loan strategy as a distinct strategy) Tj ET Q q 0 0 0 rg BT 490.09 234.75 Td (. ) Tj ET Q q 0 0 0 rg BT 498.25 234.75 Td (This strategy ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 222.75 Td (employs relative value analysis to construct optimized portfolios of European bonds and loans, focusing on the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 210.75 Td (senior-secured debt of European issuers and companies with significant exposure to Europe, but may ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 198.75 Td (opportunistically invest in rated CLO tranches, direct loans/private placements, and stressed loans and bonds. ) Tj ET Q q 0 0 0 rg BT 541.38 198.75 Td (As ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 186.75 Td (an absolute return strategy) Tj ET Q q 0 0 0 rg BT 168.22 186.75 Td (, the European High ) Tj ET Q q 0 0 0 rg BT 259.77 186.75 Td (Y) Tj ET Q q 0 0 0 rg BT 266.06 186.75 Td (ield Bond and Senior Loan strategy seeks to achieve superior risk-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 174.75 Td (adjusted returns over credit cycles through selective investment in high quality borrowers, with an emphasis on ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 162.75 Td (income and long-term growth. Our flexibility to actively allocate between both asset classes provides us the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 150.75 Td (opportunity to capitalize on dif) Tj ET Q q 0 0 0 rg BT 182.12 150.75 Td (ferences in their relative values. ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 129.75 Td (Strategic Credit) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.50 107.75 Td (In 2012, we introduced Strategic Credit as a step-out from our Distressed Debt strategy) Tj ET Q q 0 0 0 rg BT 466.50 107.75 Td (, to capture attractive ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 95.75 Td (investment opportunities that appear to of) Tj ET Q q 0 0 0 rg BT 233.82 95.75 Td (fer too little return for distressed debt investors, but may pose too much ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 83.75 Td (uncertainty for high yield bond investors. ) Tj ET Q q 0 0 0 rg BT 234.37 83.75 Td (This strategy seeks to achieve an attractive, unlevered total return by ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 71.75 Td (investing in public and private performing debt of stressed U.S. and non-U.S. companies. ) Tj ET Q q 0 0 0 rg BT 448.92 71.75 Td (T) Tj ET Q q 0 0 0 rg BT 454.48 71.75 Td (ypical investments are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 59.75 Td (in high yield bonds and senior loans entailing above average credit risk, loan portfolios, rescue financings and other ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 47.75 Td (capital solutions for companies experiencing financial stress.) Tj ET Q endstream endobj 25 0 obj <> endobj 26 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (12) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Mezzanine Finance ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 720.75 Td (In 2001, we established the Mezzanine Finance strategy to capitalize on our expertise in credit analysis after ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 708.75 Td (we observed a gap in the availability of mezzanine capital to many attractive companies that were considered too ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 696.75 Td (small for the high yield bond market. Our strong relationships with small-cap and mid-cap private equity sponsors ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 684.75 Td (constitute a major advantage in our Mezzanine investment process. ) Tj ET Q q 0 0 0 rg BT 354.42 684.75 Td (The strategy targets middle market companies ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 672.75 Td (with enterprise values between $150 million and $750 million. W) Tj ET Q q 0 0 0 rg BT 336.64 672.75 Td (e believe this part of the market presents attractive ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 660.75 Td (opportunities to help finance leveraged buyouts, recapitalizations, acquisitions and corporate growth. ) Tj ET Q q 0 0 0 rg BT 500.09 660.75 Td (The ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 648.75 Td (Mezzanine Finance strategy seeks to earn an attractive current return and achieve long-term capital appreciation ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 636.75 Td (without subjecting principal to undue risk.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 615.75 Td (European Private Debt) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 593.75 Td (W) Tj ET Q q 0 0 0 rg BT 95.26 593.75 Td (e introduced European Private Debt in 2013 to capitalize on opportunities resulting from the decline in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 581.75 Td (European bank lending and our significant industry experience, knowledge and deep relationships across the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 569.75 Td (Continent. ) Tj ET Q q 0 0 0 rg BT 100.96 569.75 Td (The strategy seeks to achieve attractive, risk-adjusted absolute returns by making primary investments ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 557.75 Td (in high-yielding debt or preferred equity of healthy European companies that require liquidity for acquisitions, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 545.75 Td (buyouts of minority investors, debt restructurings, recapitalizations or acquisitions of hard assets. Our goal is to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 533.75 Td (target a concentrated portfolio of direct loans to middle-market companies resulting from unique proprietary lending ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 521.75 Td (opportunities generated by the European Principal Group \(the “EPG”\). ) Tj ET Q q 0 0 0 rg BT 365.00 521.75 Td (The strategy invests primarily in industries in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 509.75 Td (which the EPG has existing portfolio companies or experience, with a particular emphasis on capital-intensive ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 497.75 Td (sectors where a lack of bank financing has created an opportunity to acquire assets at a significant discount or to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 485.75 Td (extend credit at attractive rates. ) Tj ET Q q 0 0 0 rg BT 194.89 485.75 Td (T) Tj ET Q q 0 0 0 rg BT 200.44 485.75 Td (ypically we are the sole lender in our direct-lending transactions, and we rarely ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 473.75 Td (participate in sponsor-backed transactions or competitive auctions.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 452.75 Td (Emerging Markets Debt T) Tj ET Q q 0 0 0 rg BT 163.01 452.75 Td (otal Return) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 430.75 Td (As a step-out to our Emerging Markets Opportunities strategy) Tj ET Q q 0 0 0 rg BT 351.05 430.75 Td (, in 2015 we introduced Emerging Markets ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 418.75 Td (Debt ) Tj ET Q q 0 0 0 rg BT 73.72 418.75 Td (T) Tj ET Q q 0 0 0 rg BT 78.72 418.75 Td (otal Return to third-party investors to capitalize on the nascent market of stressed credits falling out of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 406.75 Td (investment-grade and high yield fixed income emerging markets universe. ) Tj ET Q q 0 0 0 rg BT 382.21 406.75 Td (This strategy invests primarily in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 394.75 Td (performing emerging market credit, seeking to achieve an attractive total return by taking advantage of market ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 382.75 Td (inef) Tj ET Q q 0 0 0 rg BT 65.94 382.75 Td (ficiencies and geopolitical complexities in the emerging markets credit universe.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 360.75 Td (Convertible Securities ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 339.75 Td (Convertible securities are part debt and part equity) Tj ET Q q 0 0 0 rg BT 303.27 339.75 Td (. By applying our risk-control investment approach to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 327.75 Td (these securities, we attempt to capture most of the returns of equities in rising markets and to outperform equities in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 315.75 Td (flat or down markets. Our goal is to capture the vast majority of the performance of equities over full market cycles ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 303.75 Td (with reduced volatility and/or substantially outperform straight bonds with similar levels of risk. ) Tj ET Q q 0 0 0 rg BT 468.89 303.75 Td (T) Tj ET Q q 0 0 0 rg BT 473.89 303.75 Td (o reduce risk, we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 291.75 Td (broadly diversify and focus on convertibles that provide pronounced downside protection. W) Tj ET Q q 0 0 0 rg BT 458.38 291.75 Td (e manage three ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 279.75 Td (convertible securities strategies that focus on dif) Tj ET Q q 0 0 0 rg BT 262.71 279.75 Td (ferent regions and market sections – U.S., non-U.S. and “high ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 267.75 Td (income” convertibles. High income, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.85 267.75 Td (“) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 227.29 267.75 Td (busted,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.09 267.75 Td (”) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 264.53 267.75 Td ( convertibles of) Tj ET Q q 0 0 0 rg BT 331.60 267.75 Td (fer a unique combination of high current yield and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 255.75 Td (yield-to-maturity) Tj ET Q q 0 0 0 rg BT 120.39 255.75 Td (, plus the potential for significant equity-driven capital appreciation. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 234.75 Td (Distressed Debt) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 213.75 Td (Distressed Debt ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 82.00 192.75 Td (Our Distressed Debt team was an industry pioneer and has been one of its leaders since the inception of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 180.75 Td (strategy in 1988. ) Tj ET Q q 0 0 0 rg BT 129.31 180.75 Td (The team focuses primarily on investments in distressed companies that are perceived to have ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 168.75 Td (substantial asset values or business franchises, and are in industries going through periods of transition or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 156.75 Td (dislocation. Our approach seeks to combine protection against loss, which generally comes from buying claims on ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 144.75 Td (assets at bargain prices, with the substantial gains to be achieved by returning companies to financial viability ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 132.75 Td (through restructuring. W) Tj ET Q q 0 0 0 rg BT 159.86 132.75 Td (e take an opportunistic approach to investing, with the flexibility and expertise to choose ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 120.75 Td (from a broad range of investments, including leveraged loans, bonds, equity securities, companies or hard assets. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 108.75 Td (Building on our Distressed Debt team’) Tj ET Q q 0 0 0 rg BT 217.68 108.75 Td (s experience in the U.S., we have established a significant presence in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 96.75 Td (Europe to capitalize on opportunities in that region. ) Tj ET Q endstream endobj 27 0 obj <> endobj 28 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (13) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (V) Tj ET Q q 0 0 0 rg BT 56.30 741.75 Td (alue Opportunities ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 720.75 Td (W) Tj ET Q q 0 0 0 rg BT 89.26 720.75 Td (e launched V) Tj ET Q q 0 0 0 rg BT 146.89 720.75 Td (alue Opportunities in 2007 for investors who had expressed interest in a more liquid version ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 708.75 Td (of the Distressed Debt strategy) Tj ET Q q 0 0 0 rg BT 186.54 708.75 Td (. ) Tj ET Q q 0 0 0 rg BT 194.70 708.75 Td (The fund is managed by the Distressed Debt team and invests mainly in distressed ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 696.75 Td (debt, stressed debt and other value-oriented investments for which there is a liquid market. Inasmuch as this ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 684.75 Td (strategy is intended to be opportunistic, the composition of the portfolio is designed to capitalize on changing ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 672.75 Td (market conditions. In general, this strategy employs similar strategies and tactics with regard to distressed ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 660.75 Td (investments as the Distressed Debt strategy) Tj ET Q q 0 0 0 rg BT 244.90 660.75 Td (, but it may be more aggressive and more oriented to short selling and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 648.75 Td (short-term trading \(and may make greater use of leverage and derivatives\) with respect to its non-distressed ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 636.75 Td (investments. ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 615.75 Td (Emerging Markets Opportunities) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.50 593.75 Td (W) Tj ET Q q 0 0 0 rg BT 90.76 593.75 Td (e launched this strategy in 2012 as an expansion of our Distressed Debt strategy) Tj ET Q q 0 0 0 rg BT 447.45 593.75 Td (. ) Tj ET Q q 0 0 0 rg BT 455.60 593.75 Td (The Emerging Markets ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 581.75 Td (Opportunities strategy targets stressed, distressed and other value-oriented fixed income, hybrid and equity ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 569.75 Td (investments in emerging markets. In contrast to developed markets, macroeconomic events, political crises and a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 557.75 Td (misunderstanding among many investors of emerging market complexities give rise to more pronounced ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 545.75 Td (disruptions and an enhanced opportunity set for us to take advantage of such opportunities. ) Tj ET Q q 0 0 0 rg BT 460.09 545.75 Td (This strategy is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 533.75 Td (managed by a U.S.-based group that leverages our Distressed Debt team’) Tj ET Q q 0 0 0 rg BT 378.33 533.75 Td (s experience and expertise, and employs ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 521.75 Td (an established, flexible external network of local advisers to enhance deal flow) Tj ET Q q 0 0 0 rg BT 395.76 521.75 Td (, access local market intelligence and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 509.75 Td (address the intricacies of jurisdictional dif) Tj ET Q q 0 0 0 rg BT 231.57 509.75 Td (ferences and industry and local regulatory developments. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 487.75 Td (Control Investing) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 466.75 Td (Special Situations) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.50 445.75 Td (Our Special Situations strategy makes control-oriented debt and equity investments in middle-market ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 433.75 Td (companies that have an element of distress, dislocation or dysfunction and that we perceive to be undervalued. It ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 421.75 Td (seeks situations in which we can gain control of, or significant influence over) Tj ET Q q 0 0 0 rg BT 386.29 421.75 Td (, companies exhibiting such ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 409.75 Td (characteristics and then actively manages those businesses in an ef) Tj ET Q q 0 0 0 rg BT 351.10 409.75 Td (fort to deliver value as a private equity-like ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 397.75 Td (sponsor) Tj ET Q q 0 0 0 rg BT 85.02 397.75 Td (. ) Tj ET Q q 0 0 0 rg BT 93.18 397.75 Td (The cornerstone of the Special Situations strategy is its flexibility to invest across capital structures, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 385.75 Td (whether by purchasing secondary market debt \(“distress-for-control”\) or making direct debt or equity investments in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 373.75 Td (distressed businesses. Importantly) Tj ET Q q 0 0 0 rg BT 205.44 373.75 Td (, the strategy does not require a distressed macro environment to invest ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 361.75 Td (successfully) Tj ET Q q 0 0 0 rg BT 103.16 361.75 Td (, relying instead on “situational” distress that can be uncovered in any industry) Tj ET Q q 0 0 0 rg BT 447.06 361.75 Td (, sector or individual ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 349.75 Td (company at any point in the economic cycle.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 328.75 Td (European Principal) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 50.00 315.55 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 303.55 Td (The European Principal strategy targets control investing opportunities where dislocation or distress enable ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 291.55 Td (its funds to secure an attractive purchase price or creation value, and thus the potential for attractive returns. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 279.55 Td (EPG’) Tj ET Q q 0 0 0 rg BT 73.16 279.55 Td (s diverse skillset enables the team to target “of) Tj ET Q q 0 0 0 rg BT 279.19 279.55 Td (f-the-run” investment opportunities in which competition is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 267.55 Td (limited, to assess the correlation between a company’) Tj ET Q q 0 0 0 rg BT 287.16 267.55 Td (s performance and the general economic cycle or specific ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 255.55 Td (industry trends, and to develop and implement bespoke operational, legal and financial solutions. W) Tj ET Q q 0 0 0 rg BT 493.42 255.55 Td (e eschew ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 243.55 Td (competitive auctions, preferring instead to work closely with parties which have agreed in principle to the proposed ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 231.55 Td (transaction. ) Tj ET Q q 0 0 0 rg BT 107.07 231.55 Td (This approach can improve information flow) Tj ET Q q 0 0 0 rg BT 299.94 231.55 Td (, reduce the risk and cost of competition, and translate into ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 219.55 Td (a more attractive investment opportunity) Tj ET Q q 0 0 0 rg BT 227.12 219.55 Td (. ) Tj ET Q q 0 0 0 rg BT 235.27 219.55 Td (The team uses its local presence in multiple countries, coupled with its ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 207.55 Td (deal execution, operational and legal expertise, to craft customized solutions for situations that, in addition to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 195.55 Td (capital, require complex operational or strategic improvements. Capital-intensive industries are an area of focus ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 183.55 Td (because the investment can be at least partially secured by the value of the assets, which creates downside ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 171.55 Td (protection and possibly substantial upside returns. W) Tj ET Q q 0 0 0 rg BT 286.61 171.55 Td (e may also seek to acquire individual assets or smaller pools ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 159.55 Td (of assets in a single industry) Tj ET Q q 0 0 0 rg BT 174.88 159.55 Td (, consolidating them into a larger operating company) Tj ET Q q 0 0 0 rg BT 406.49 159.55 Td (. ) Tj ET Q q 0 0 0 rg BT 414.65 159.55 Td (These so-called platform ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 147.55 Td (investments, which typically are managed by personnel identified by EPG, may benefit from operational, strategic ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 135.55 Td (and financial enhancements implemented by our in-house portfolio enhancement teams.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 114.55 Td (Power Opportunities ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 93.55 Td (Beginning in 1996, our Control Investing strategies made a number of power- and energy-related ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 81.55 Td (investments jointly with an independent firm, GFI Energy V) Tj ET Q q 0 0 0 rg BT 309.01 81.55 Td (entures \(“GFI”\), a firm founded in 1995. In 2009, GFI ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 69.55 Td (personnel joined us and, starting with Oaktree Power Opportunities Fund III, we became the sole manager of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 57.55 Td (strategy) Tj ET Q q 0 0 0 rg BT 84.83 57.55 Td (. ) Tj ET Q q 0 0 0 rg BT 92.98 57.55 Td (The Power Opportunities funds seek to make controlling equity investments in companies providing ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 45.55 Td (equipment, software, and services used in the generation, transmission, distribution, marketing, trading, and ) Tj ET Q endstream endobj 29 0 obj <> endobj 30 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (14) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (consumption of electricity) Tj ET Q q 0 0 0 rg BT 161.53 741.75 Td (, natural gas, and related energy services. ) Tj ET Q q 0 0 0 rg BT 353.12 741.75 Td (The Power Opportunities team is comprised of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (seasoned energy sector professionals who work to identify key energy industry themes and then invest in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (companies well-positioned to benefit from such themes. ) Tj ET Q q 0 0 0 rg BT 301.61 717.75 Td (The team then works closely with portfolio companies to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 705.75 Td (strengthen operations, pursue new customers and market opportunities, recruit additional talent, and make ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 693.75 Td (complementary acquisitions, among other activities to increase shareholder value. ) Tj ET Q q 0 0 0 rg BT 418.34 693.75 Td (The strategy invests in proven ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 681.75 Td (performers and market leaders, not start-up ventures or turnarounds. ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 660.75 Td (Infrastructure Investing) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 639.75 Td (In ) Tj ET Q q 0 0 0 rg BT 96.57 639.75 Td (August 2014, we acquired the Highstar Capital team and certain Highstar entities \(collectively “Highstar”\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 627.75 Td (to facilitate the expansion of our Power Opportunities strategy and to help us capitalize on the growing need for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 615.75 Td (private capital to support the renovation, replacement and creation of critical transportation and energy ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 603.75 Td (infrastructure. Highstar was founded in 2000 and was an early entrant to infrastructure investing, utilizing operating ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 591.75 Td (expertise to implement a value-added strategy to acquire, operate, fix and ultimately sell critical infrastructure ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 579.75 Td (assets and businesses, primarily in North ) Tj ET Q q 0 0 0 rg BT 234.53 579.75 Td (America.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 558.75 Td (Real Estate) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 537.75 Td (Real Estate Opportunities) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 516.75 Td (The Real Estate team targets a diverse range of global opportunities across all areas of this asset class, with ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 504.75 Td (an emphasis on debt or equity investments in commercial real estate, corporate real estate, structured finance, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 492.75 Td (commercial non-performing loans, residential real estate and non-U.S. real estate. Investments may include direct ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 480.75 Td (property investments; investments in real estate-related corporations; commercial mortgage-backed securities and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 468.75 Td (related securities; residential land, assets and loan pools; small-balance commercial loan pools; and non-U.S. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 456.75 Td (investments. With dedicated real estate professionals in the U.S., Japan, Hong Kong, South Korea and the U.K., ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 444.75 Td (the team benefits from Oaktree’) Tj ET Q q 0 0 0 rg BT 189.88 444.75 Td (s multi-disciplinary strengths and global footprint. ) Tj ET Q q 0 0 0 rg BT 411.47 444.75 Td (The team also occasionally ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 432.75 Td (pursues development opportunities with aligned, high-quality partners.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 411.75 Td (Real Estate Debt) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 389.75 Td (Our management of the Oaktree PPIP) Tj ET Q q 0 0 0 rg BT 249.35 389.75 Td ( Fund, organized pursuant to the U.S. ) Tj ET Q q 0 0 0 rg BT 418.72 389.75 Td (T) Tj ET Q q 0 0 0 rg BT 424.45 389.75 Td (reasury Department’) Tj ET Q q 0 0 0 rg BT 514.86 389.75 Td (s program ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 377.75 Td (to address troubled real estate-related assets during the global financial crisis, spurred us to of) Tj ET Q q 0 0 0 rg BT 467.27 377.75 Td (fer Real Estate Debt ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 365.75 Td (as a successor strategy in 2012. ) Tj ET Q q 0 0 0 rg BT 198.78 365.75 Td (The Real Estate Debt strategy seeks to achieve attractive risk-adjusted returns ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 353.75 Td (and produce current income by investing in real estate-related debt that is not anticipated to result in control of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 341.75 Td (underlying asset. ) Tj ET Q q 0 0 0 rg BT 130.98 341.75 Td (This strategy specializes in debt-driven opportunities similar to that of the Real Estate strategy ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 329.75 Td (\(e.g., commercial real estate, real estate-related corporate investments, structured finance, commercial non-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 317.75 Td (performing loans, residential real estate and non-U.S. real estate\), and invests in commercial mortgage-backed ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 305.75 Td (securities, commercial and residential mortgages, mezzanine loans and corporate debt. ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 283.75 Td (Real Estate V) Tj ET Q q 0 0 0 rg BT 110.77 283.75 Td (alue-Add) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 261.75 Td (In 2016, we launched the Real Estate V) Tj ET Q q 0 0 0 rg BT 254.93 261.75 Td (alue-Add strategy as a step-out of the Real Estate Opportunities ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 249.75 Td (strategy to expand the reach of our real estate platform through investments that have the potential to provide ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 237.75 Td (stable income and attractive risk-adjusted returns, but do not have the requisite distress or total return profile to be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 225.75 Td (a candidate for our Real Estate Opportunities funds. ) Tj ET Q q 0 0 0 rg BT 285.51 225.75 Td (This strategy seeks to achieve superior risk-adjusted returns ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 213.75 Td (through investments in high-quality real estate assets with an emphasis on income and long-term growth, and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 201.75 Td (targets commercial real estate assets, with a particular emphasis on of) Tj ET Q q 0 0 0 rg BT 361.62 201.75 Td (fice, multifamily) Tj ET Q q 0 0 0 rg BT 429.22 201.75 Td (, industrial and retail ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 189.75 Td (properties. It also considers debt and other income-producing investments on a limited basis.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 167.75 Td (Listed Equities) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 145.75 Td (Emerging Markets Equities) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 123.75 Td (As a step-out from our Emerging Markets ) Tj ET Q q 0 0 0 rg BT 271.07 123.75 Td (Absolute Return strategy) Tj ET Q q 0 0 0 rg BT 380.39 123.75 Td (, in 201) Tj ET Q q 0 0 0 rg BT 412.45 123.75 Td (1 we added the long-only ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 111.75 Td (Emerging Markets Equities strategy) Tj ET Q q 0 0 0 rg BT 207.10 111.75 Td (, which we manage through funds, mutual fund sub-advisory relationships and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 99.75 Td (separate accounts. ) Tj ET Q q 0 0 0 rg BT 139.87 99.75 Td (This strategy invests on a long-only basis in the equities of emerging market companies in the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 87.75 Td (Asia Pacific region, Latin ) Tj ET Q q 0 0 0 rg BT 161.73 87.75 Td (America, Eastern Europe, the Middle East, ) Tj ET Q q 0 0 0 rg BT 352.93 87.75 Td (Africa and Russia. ) Tj ET Q endstream endobj 31 0 obj <> endobj 32 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (15) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (V) Tj ET Q q 0 0 0 rg BT 56.30 741.75 Td (alue Equities) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 719.75 Td (W) Tj ET Q q 0 0 0 rg BT 89.26 719.75 Td (e launched this strategy to third-party investors in 2014 as a step-out from our Distressed Debt platform. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 707.75 Td (Similar to our Distressed Debt and V) Tj ET Q q 0 0 0 rg BT 210.99 707.75 Td (alue Opportunities strategies, V) Tj ET Q q 0 0 0 rg BT 349.77 707.75 Td (alue Equities employs a bottom-up, value-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 695.75 Td (oriented investment approach focused on long-term principal appreciation and preservation of capital. ) Tj ET Q q 0 0 0 rg BT 503.97 695.75 Td (This strategy ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 683.75 Td (seeks to achieve attractive, risk-adjusted returns by opportunistically assembling and managing an unleveraged, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 671.75 Td (concentrated portfolio of stressed, post-reorganization and value equities that of) Tj ET Q q 0 0 0 rg BT 402.81 671.75 Td (fer asymmetric return profiles ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 659.75 Td (across industries, market capitalizations and geographies within developed markets.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 637.75 Td (Our Investment Performance) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.50 615.75 Td (Our investment professionals have generated impressive investment performance through multiple market ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 603.75 Td (cycles. ) Tj ET Q q 0 0 0 rg BT 85.57 603.75 Td (As of December 31, 2016, our incentive-creating closed-end funds had produced a since-inception ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 591.75 Td (aggregate gross IRR of 18.9% on approximately $75 billion of drawn capital. Of the 56 such closed-end funds we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 579.75 Td (manage that commenced before July 1, 2015, 55 had positive net IRRs as of December 31, 2016, an achievement ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 567.75 Td (that reflects, among many factors, our practice of sizing funds in proportion to our view of the supply of potential ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 555.75 Td (attractive investment opportunities. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.50 534.75 Td (Information regarding our most significant and longest-managed closed-end funds is shown below) Tj ET Q q 0 0 0 rg BT 513.98 534.75 Td (, as of or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 522.75 Td (for the periods ended December 31, 2016. Please see “Fund Data” below for more information regarding the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 510.75 Td (performance of our closed-end funds.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 488.25 m 446.5 488.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 488.25 m 455.5 488.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455.5 488.25 m 504.5 488.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 281.5 476.25 m 330.5 476.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 476.25 m 388.5 476.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 476.25 m 446.5 476.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455.5 476.25 m 504.5 476.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 476.25 m 562.5 476.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 373.25 m 388.5 373.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 345.25 m 388.5 345.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 332.25 m 388.5 332.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 330.25 m 388.5 330.25 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 291.45 487.25 Td (Strategy) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 289.90 480.25 Td (Inception) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 343.70 487.25 Td (Total Drawn) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 351.80 480.25 Td (Capital) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 417.60 492.25 Td (IRR Since Inception) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 520.00 492.65 Td (Multiple of) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 526.80 485.65 Td (Drawn) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 525.80 478.65 Td (Capital) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 411.35 480.25 Td (Gross) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 473.85 480.25 Td (Net) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 343.85 468.25 Td (\(in millions\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 447.65 Td (Distressed Debt) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 120.45 447.20 Td (...............................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 295.45 447.65 Td (1988) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 342.00 447.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 357.45 447.65 Td (40,692) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.40 447.65 Td (22.0) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 437.95 447.65 Td (%) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 478.40 447.65 Td (16.2) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 495.95 447.65 Td (%) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 528.95 447.65 Td (1.7x) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 433.65 Td (Real Estate Opportunities) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 157.95 433.20 Td (................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 295.45 433.65 Td (1994) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 362.45 433.65 Td (7,283) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.40 433.65 Td (15.5) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 478.40 433.65 Td (11.9) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 531.20 433.65 Td (1.7) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 419.65 Td (Special Situations ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 127.04 423.94 Td (\(1\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 134.19 419.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 137.95 419.20 Td (........................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 295.45 419.65 Td (1994) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 357.45 419.65 Td (10,283) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.40 419.65 Td (13.3) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 483.40 419.65 Td (9.6) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 531.20 419.65 Td (1.9) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 405.65 Td (European Principal ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 131.55 409.94 Td (\(2\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 138.70 405.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 142.95 405.20 Td (......................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 295.45 405.65 Td (2006) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 362.45 405.65 Td (5,225) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.40 405.65 Td (13.7) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 483.40 405.65 Td (9.1) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 531.20 405.65 Td (1.7) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 391.65 Td (Power Opportunities) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 137.95 391.20 Td (........................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 295.45 391.65 Td (1999) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 362.45 391.65 Td (2,099) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.40 391.65 Td (34.7) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 478.40 391.65 Td (26.5) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 531.20 391.65 Td (2.2) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 377.65 Td (Mezzanine Finance) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 135.45 377.20 Td (.........................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 295.45 377.65 Td (2001) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 362.45 377.65 Td (3,642) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.40 377.65 Td (13.2) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 483.40 377.65 Td (8.9) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 531.20 377.65 Td (1.4) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 363.65 Td (Sub-total) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 92.95 363.20 Td (..........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 357.45 363.65 Td (69,224) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 349.65 Td (Other funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 105.45 349.20 Td (.....................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 357.45 349.65 Td (18,755) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 335.65 Td (Total) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 77.95 335.20 Td (................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 342.00 335.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 357.45 335.65 Td (87,979) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 317.25 m 150.5 317.25 l s BT /F1 10.00 Tf ET BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 306.95 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 72.50 306.95 Td (Ef) Tj ET Q q 0 0 0 rg BT 80.84 306.95 Td (fective November 2016, the Global Principal strategy was renamed Special Situations. ) Tj ET Q q 0 0 0 rg BT 428.86 306.95 Td (The figures shown include the ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 296.15 Td (performance of Oaktree Special Situations Fund, which commenced its investment period in November 2015. Excluding ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 285.35 Td (Oaktree Special Situations Fund, the aggregate gross and net IRRs as of December 31, 2016 were 13.3% and 9.5%, ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 274.55 Td (respectively) Tj ET Q q 0 0 0 rg BT 119.35 274.55 Td (.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 263.75 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 72.50 263.75 Td (All figures are based on the conversion of amounts or cash flows from euros to USD using the December 31, 2016 spot ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 252.95 Td (rate of $1.05.) Tj ET Q endstream endobj 33 0 obj <> endobj 34 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (16) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.50 741.75 Td (Performance of our open-end funds is in part measured in relation to applicable benchmark returns. Our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (emphasis on risk control and credit selection has generally led to outperformance in challenging markets and over ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (full market cycles. Information regarding our open-end funds, together with relevant benchmark data, is set forth ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 705.75 Td (below as of or for the periods ended December 31, 2016. Please see “Fund Data” below for more information ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 693.75 Td (regarding the performance of our open-end funds.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 671.25 m 346.5 671.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 671.25 m 355.5 671.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 355.5 671.25 m 400.5 671.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400.5 671.25 m 409.5 671.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409.5 671.25 m 454.5 671.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454.5 671.25 m 463.5 671.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463.5 671.25 m 508.5 671.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 671.25 m 517.5 671.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517.5 671.25 m 562.5 671.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 659.25 m 346.5 659.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 659.25 m 355.5 659.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 355.5 659.25 m 400.5 659.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400.5 659.25 m 409.5 659.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409.5 659.25 m 454.5 659.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463.5 659.25 m 508.5 659.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 659.25 m 517.5 659.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517.5 659.25 m 562.5 659.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 647.25 m 346.5 647.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 647.25 m 355.5 647.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 355.5 647.25 m 400.5 647.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 193.5 635.25 m 238.5 635.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 247.5 635.25 m 292.5 635.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 635.25 m 346.5 635.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 355.5 635.25 m 400.5 635.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409.5 635.25 m 454.5 635.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463.5 635.25 m 508.5 635.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517.5 635.25 m 562.5 635.25 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 201.45 646.25 Td (Strategy) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 199.90 639.25 Td (Inception) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 261.50 639.25 Td (AUM) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 405.60 675.25 Td (Since Inception) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 331.80 663.25 Td (Annualized Rates of Return) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 490.90 663.25 Td (Sharpe Ratio) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 337.45 651.25 Td (Oaktree) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 416.90 651.65 Td (Relevant ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 412.40 644.65 Td (Benchmark) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 419.05 637.65 Td (\(Gross\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 472.45 646.25 Td (Oaktree) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 475.35 639.25 Td (Gross) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 524.90 651.65 Td (Relevant) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 520.40 644.65 Td (Benchmark) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 527.05 637.65 Td (\(Gross\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 313.35 639.25 Td (Gross) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 371.85 639.25 Td (Net) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 249.85 627.25 Td (\(in millions\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 606.65 Td (U.S. High Yield Bonds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 142.45 606.20 Td (...................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 205.45 606.65 Td (1986) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 250.00 606.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 261.45 606.65 Td (17,292) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 325.40 606.65 Td (9.4) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 337.95 606.65 Td (%) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 379.40 606.65 Td (8.8) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 391.95 606.65 Td (%) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 433.40 606.65 Td (8.4) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 445.95 606.65 Td (%) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 476.70 606.65 Td (0.80) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.70 606.65 Td (0.56) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 592.65 Td (Global High Yield Bonds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 152.45 592.20 Td (...............) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 205.45 592.65 Td (2010) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 266.45 592.65 Td (4,450) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 325.40 592.65 Td (7.5) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 379.40 592.65 Td (7.0) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 433.40 592.65 Td (6.9) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 476.70 592.65 Td (1.13) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.70 592.65 Td (1.07) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 578.65 Td (European High Yield Bonds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 164.95 578.20 Td (..........) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 205.45 578.65 Td (1999) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 266.45 578.65 Td (1,316) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 325.40 578.65 Td (8.1) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 379.40 578.65 Td (7.6) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 433.40 578.65 Td (6.3) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 476.70 578.65 Td (0.71) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.70 578.65 Td (0.44) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 564.65 Td (U.S. Convertibles) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 124.95 564.20 Td (..........................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 205.45 564.65 Td (1987) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 266.45 564.65 Td (3,411) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 325.40 564.65 Td (9.4) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 379.40 564.65 Td (8.8) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 433.40 564.65 Td (8.1) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 476.70 564.65 Td (0.48) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.70 564.65 Td (0.36) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 550.65 Td (Non-U.S. Convertibles) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 144.95 550.20 Td (..................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 205.45 550.65 Td (1994) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 266.45 550.65 Td (1,456) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 325.40 550.65 Td (8.4) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 379.40 550.65 Td (7.8) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 433.40 550.65 Td (5.6) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 476.70 550.65 Td (0.78) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.70 550.65 Td (0.40) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 536.65 Td (High Income Convertibles) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 157.45 536.20 Td (.............) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 205.45 536.65 Td (1989) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 273.95 536.65 Td (864) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 320.40 536.65 Td (11.4) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 374.40 536.65 Td (10.6) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 433.40 536.65 Td (8.2) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 476.70 536.65 Td (1.06) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.70 536.65 Td (0.60) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 522.65 Td (U.S. Senior Loans) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 127.45 522.20 Td (.........................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 205.45 522.65 Td (2008) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 266.45 522.65 Td (1,589) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 325.40 522.65 Td (6.2) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 379.40 522.65 Td (5.7) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 433.40 522.65 Td (5.3) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 476.70 522.65 Td (1.11) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.70 522.65 Td (0.65) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 508.65 Td (European Senior Loans) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 149.95 508.20 Td (................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 205.45 508.65 Td (2009) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 266.45 508.65 Td (1,422) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 325.40 508.65 Td (8.5) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 379.40 508.65 Td (7.9) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 433.40 508.65 Td (9.2) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 476.70 508.65 Td (1.72) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.70 508.65 Td (1.73) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 494.65 Td (Emerging Markets Equities) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 162.45 494.20 Td (...........) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 205.45 494.65 Td (2011) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 266.45 494.65 Td (3,084) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 322.40 494.65 Td (\(1.7) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 337.95 494.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 376.40 494.65 Td (\(2.5) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 391.95 494.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 430.40 494.65 Td (\(2.7) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 445.95 494.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 473.70 494.65 Td (\(0.09\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 527.70 494.65 Td (\(0.15\)) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 460.75 Td (Synergies ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 439.75 Td (W) Tj ET Q q 0 0 0 rg BT 89.26 439.75 Td (e emphasize cross-group cooperation and collaboration among our investment professionals. Many of our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 427.75 Td (investment strategies are complementary) Tj ET Q q 0 0 0 rg BT 232.11 427.75 Td (, and our investment professionals often identify and communicate ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 415.75 Td (potential opportunities to other groups, allowing our funds to benefit from the synergies created by the scale of our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 403.75 Td (business and our proprietary research. For example, the Distressed Debt group sometimes identifies companies ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 391.75 Td (emerging from bankruptcy that could be attractive to the High ) Tj ET Q q 0 0 0 rg BT 323.30 391.75 Td (Y) Tj ET Q q 0 0 0 rg BT 329.59 391.75 Td (ield Bond group.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 370.75 Td (This cross-pollination among our investment groups occurs both formally and informally) Tj ET Q q 0 0 0 rg BT 465.54 370.75 Td (. For example, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 358.75 Td (representatives of dif) Tj ET Q q 0 0 0 rg BT 142.65 358.75 Td (ferent investment groups often attend each other) Tj ET Q q 0 0 0 rg BT 358.71 358.75 Td (’) Tj ET Q q 0 0 0 rg BT 360.75 358.75 Td (s meetings in order to keep abreast of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 346.75 Td (others’) Tj ET Q q 0 0 0 rg BT 79.64 346.75 Td ( activities and maintain access to specialized investment expertise. Groups periodically invest jointly) Tj ET Q q 0 0 0 rg BT 523.00 346.75 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 334.75 Td (permitting us to make larger or more specialized investments than we could undertake in the absence of such ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 322.75 Td (collaboration. Our investment professionals also cooperate informally) Tj ET Q q 0 0 0 rg BT 357.74 322.75 Td (, consulting one another with respect to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 310.75 Td (existing and proposed investments. Our culture encourages such cooperation, as does the broad Oaktree equity ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 298.75 Td (ownership among our investment professionals, which gives them an indirect stake in the success of all of our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 286.75 Td (investment strategies. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 265.75 Td (W) Tj ET Q q 0 0 0 rg BT 89.26 265.75 Td (e have a shared trading desk in the U.S. for many of our strategies, which provides the benefit of our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 253.75 Td (traders’) Tj ET Q q 0 0 0 rg BT 82.97 253.75 Td ( deep experience with both performing and distressed securities, facilitates communication among the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 241.75 Td (groups, and allows us to combine trades for larger orders with the preferential access and pricing that sometimes ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 229.75 Td (comes with larger orders. ) Tj ET Q q 0 0 0 rg BT 167.27 229.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 217.67 229.75 Td (, the scale of our investing activities makes us a significant client of many ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 217.75 Td (investment banks, brokers and consultants, and thus helps each group access opportunities that might not be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 205.75 Td (available were it not part of our larger organization. Finally) Tj ET Q q 0 0 0 rg BT 308.84 205.75 Td (, the scale of our activities has permitted us to create ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 193.75 Td (significant shared resources. ) Tj ET Q endstream endobj 35 0 obj <> endobj 36 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (17) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Marketing and Client Relations ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 720.75 Td (Our client relationships are fundamental to our business. W) Tj ET Q q 0 0 0 rg BT 344.95 720.75 Td (e believe our success is a byproduct of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 708.75 Td (success of our fund investors and thus always strive to achieve superior returns with risk under control, to charge ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 696.75 Td (fair and transparent management fees, and to behave with professionalism and integrity) Tj ET Q q 0 0 0 rg BT 437.82 696.75 Td (. W) Tj ET Q q 0 0 0 rg BT 455.41 696.75 Td (e have developed a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 684.75 Td (loyal following among many of the world’) Tj ET Q q 0 0 0 rg BT 229.36 684.75 Td (s most significant institutional investors, and believe that their and our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 672.75 Td (other investors’) Tj ET Q q 0 0 0 rg BT 117.44 672.75 Td ( loyalty results from our superior investment record, our reputation for integrity) Tj ET Q q 0 0 0 rg BT 460.73 672.75 Td (, and the fairness and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 660.75 Td (transparency of our fee structures. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 639.75 Td (As of December 31, 2016, our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 216.19 639.75 Td ($100.5 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 275.12 639.75 Td ( of ) Tj ET Q q 0 0 0 rg BT 288.47 639.75 Td (AUM was divided by client type and geographic origin as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 627.75 Td (follows: ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238.5 593.25 m 285.5 593.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289.5 593.25 m 324.5 593.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476.5 593.25 m 523.5 593.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 527.5 593.25 m 562.5 593.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476.5 530.25 m 523.5 530.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476.5 516.25 m 523.5 516.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476.5 514.25 m 523.5 514.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 527.5 530.25 m 562.5 530.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 527.5 516.25 m 562.5 516.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 527.5 514.25 m 562.5 514.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238.5 410.25 m 285.5 410.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238.5 396.25 m 285.5 396.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238.5 394.25 m 285.5 394.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289.5 410.25 m 324.5 410.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289.5 396.25 m 324.5 396.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289.5 394.25 m 324.5 394.25 l s BT /F2 7.00 Tf ET 0 0 0 RG /GS0 gs 0.73 w 0 i [] 0 d 1 J 1 j 3 M 53 596.144677734375 m 118.2080078125 596.144677734375 l s q 0 0 0 rg BT 53.00 597.25 Td (AUM by Client Type) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 253.50 597.25 Td (AUM) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 303.35 597.25 Td (%) Tj ET Q BT /F2 7.00 Tf ET 0 0 0 RG /GS0 gs 0.73 w 0 i [] 0 d 1 J 1 j 3 M 349 596.144677734375 m 427.55517578125 596.144677734375 l s q 0 0 0 rg BT 349.00 597.25 Td (AUM by Client Location) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 491.50 597.25 Td (AUM) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 541.35 597.25 Td (%) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 241.85 585.25 Td (\(in millions\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 479.85 585.25 Td (\(in millions\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 564.65 Td (Public funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 104.95 564.20 Td (....................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 241.00 564.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 254.45 564.65 Td (23,861) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 305.90 564.65 Td (24) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 315.95 564.65 Td (%) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 349.00 564.65 Td (Americas) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 388.95 564.20 Td (................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 479.00 564.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 492.10 564.65 Td (71,831) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 543.60 564.65 Td (72) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 553.95 564.65 Td (%) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 549.65 Td (Corporate and corporate pension) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 187.45 549.20 Td (...................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 254.45 549.65 Td (23,749) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 305.90 549.65 Td (24) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 349.00 549.65 Td (Europe, Middle East & Africa) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.95 549.20 Td (..) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 492.10 549.65 Td (15,568) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 543.60 549.65 Td (15) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 534.65 Td (Insurance companies) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 142.45 534.20 Td (.....................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 259.45 534.65 Td (9,187) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 310.90 534.65 Td (9) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 349.00 534.65 Td (Asia Pacific) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 398.95 534.20 Td (............................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 492.10 534.65 Td (13,105) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 543.60 534.65 Td (13) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 519.65 Td (Sub-advisory – mutual funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 169.95 519.20 Td (..........................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 259.45 519.65 Td (8,685) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 310.90 519.65 Td (9) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 349.00 519.65 Td (Total) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 371.45 519.20 Td (.......................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 479.00 519.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 487.10 519.65 Td (100,504) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 538.60 519.65 Td (100) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 553.95 519.65 Td (%) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 504.65 Td (Sovereign wealth funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 149.95 504.20 Td (..................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 259.45 504.65 Td (8,351) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 310.90 504.65 Td (8) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 489.65 Td (Endowments/foundations) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 157.45 489.20 Td (...............................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 259.45 489.65 Td (5,716) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 310.90 489.65 Td (6) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 474.65 Td (Private – high net worth/family office) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 199.95 474.20 Td (..............) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 259.45 474.65 Td (5,041) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 310.90 474.65 Td (5) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 459.65 Td (Oaktree & affiliates) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 132.45 459.20 Td (.........................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 259.45 459.65 Td (4,179) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 310.90 459.65 Td (4) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 444.65 Td (Fund of funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 112.45 444.20 Td (.................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 259.45 444.65 Td (3,028) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 310.90 444.65 Td (3) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 429.65 Td (Unions) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 84.95 429.20 Td (............................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 259.45 429.65 Td (2,038) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 310.90 429.65 Td (2) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 414.65 Td (Other) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 79.95 414.20 Td (..............................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 259.45 414.65 Td (6,669) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 310.90 414.65 Td (6) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 399.65 Td (Total) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 77.45 399.20 Td (...............................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 241.00 399.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 249.45 399.65 Td (100,504) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 300.90 399.65 Td (100) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 315.95 399.65 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.50 363.95 Td (Our extensive in-house global Marketing and Client Relations group, consisting of 56 individuals dedicated ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 351.95 Td (to relationship management and sales, client service or sales strategy in Europe, the Middle East, ) Tj ET Q q 0 0 0 rg BT 483.56 351.95 Td (Asia/Pacific and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 339.95 Td (the ) Tj ET Q q 0 0 0 rg BT 66.13 339.95 Td (Americas, appropriately reflects the global composition of our client base. ) Tj ET Q q 0 0 0 rg BT 395.56 339.95 Td (This team is augmented by 46 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 327.95 Td (dedicated marketing support, portfolio analytics and client reporting professionals.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 302.45 Td (Employees ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 281.45 Td (W) Tj ET Q q 0 0 0 rg BT 89.26 281.45 Td (e strive to maintain a work environment that fosters integrity) Tj ET Q q 0 0 0 rg BT 352.52 281.45 Td (, professionalism, excellence, candor and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 269.45 Td (collegiality among our employees. W) Tj ET Q q 0 0 0 rg BT 215.45 269.45 Td (e consider our labor relations to be good. ) Tj ET Q q 0 0 0 rg BT 402.24 269.45 Td (As of December) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.93 269.45 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 476.43 269.45 Td (31, 2016, we had ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 257.45 Td (939 employees, categorized as follows:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 213.95000000000005 m 459.5 213.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467.5 213.95000000000005 m 510.5 213.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518.5 213.95000000000005 m 561.5 213.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 169.95000000000005 m 459.5 169.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 156.95000000000005 m 459.5 156.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 154.95000000000005 m 459.5 154.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467.5 169.95000000000005 m 510.5 169.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467.5 156.95000000000005 m 510.5 156.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467.5 154.95000000000005 m 510.5 154.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518.5 169.95000000000005 m 561.5 169.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518.5 156.95000000000005 m 561.5 156.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518.5 154.95000000000005 m 561.5 154.95000000000005 l s BT /F3 4.00 Tf ET q 0 0 0 rg BT 52.00 217.34 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 433.00 224.95 Td (All) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 419.00 217.95 Td (Employees) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 471.95 224.95 Td (Employee ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 471.90 217.95 Td (Owners ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 499.52 221.29 Td (\(1\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 521.00 238.95 Td (Employees) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 526.05 231.95 Td (Located) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 526.45 224.95 Td (Outside) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 526.45 217.95 Td (the U.S.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 202.35 Td (Investment professionals) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 157.95 201.90 Td (......................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 440.95 202.35 Td (297) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 491.95 202.35 Td (177) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 542.95 202.35 Td (106) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 188.35 Td (Other professionals) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 137.90 187.90 Td (..............................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 440.95 188.35 Td (488) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 496.95 188.35 Td (95) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 547.95 188.35 Td (74) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 174.35 Td (Support staff) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 110.40 173.90 Td (.........................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 440.95 174.35 Td (154) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 498.00 174.35 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 547.95 174.35 Td (40) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 160.35 Td (Total) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 77.90 159.90 Td (......................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 440.95 160.35 Td (939) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 491.95 160.35 Td (272) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 542.95 160.35 Td (220) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 141.95000000000005 m 149.5 141.95000000000005 l s BT /F1 10.00 Tf ET BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 131.65 Td (\(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.00 131.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 86.00 131.65 Td (Represents employees that have received grants of Class ) Tj ET Q q 0 0 0 rg BT 318.62 131.65 Td (A) Tj ET Q q 0 0 0 rg BT 324.13 131.65 Td ( or OCGH units under our equity incentive plans.) Tj ET Q endstream endobj 37 0 obj <> endobj 38 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (18) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Competition ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 720.75 Td (W) Tj ET Q q 0 0 0 rg BT 95.26 720.75 Td (e compete with many other firms in every aspect of our business, including raising funds, seeking ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 708.75 Td (investments and hiring and retaining professionals. Many of our competitors are substantially larger than us and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 696.75 Td (have considerably greater financial, technical and marketing resources. Certain of these competitors periodically ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 684.75 Td (raise significant amounts of capital in investment strategies that are similar to ours. Some of these competitors also ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 672.75 Td (may have a lower cost of capital and access to funding sources that are not available to us, which may create ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 660.75 Td (further competitive disadvantages for us with respect to investment opportunities. In addition, some of these ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 648.75 Td (competitors may have higher risk tolerances or make dif) Tj ET Q q 0 0 0 rg BT 297.70 648.75 Td (ferent risk assessments than we do, allowing them to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 636.75 Td (consider a wider variety of investments and establish broader networks of business relationships. In short, we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 624.75 Td (operate in a highly competitive business and many of our competitors may be better positioned than we are to take ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 612.75 Td (advantage of opportunities in the marketplace. For additional information regarding the competitive risks that we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 600.75 Td (face, please see “Risk Factors—Risks Relating to Our Business—The investment management business is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 588.75 Td (intensely competitive.” ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 567.75 Td (Organizational Structure) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 546.75 Td (Oaktree Capital Group, LLC is a Delaware limited liability company that was formed on ) Tj ET Q q 0 0 0 rg BT 471.18 546.75 Td (April 13, 2007. ) Tj ET Q q 0 0 0 rg BT 541.04 546.75 Td (The ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 534.75 Td (Company is owned by its Class ) Tj ET Q q 0 0 0 rg BT 191.17 534.75 Td (A) Tj ET Q q 0 0 0 rg BT 197.29 534.75 Td ( and Class B unitholders. Oaktree Capital Group Holdings GP) Tj ET Q q 0 0 0 rg BT 471.69 534.75 Td (, LLC acts as the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 522.75 Td (Company’) Tj ET Q q 0 0 0 rg BT 94.84 522.75 Td (s manager and is the general partner of Oaktree Capital Group Holdings, L.P) Tj ET Q q 0 0 0 rg BT 433.74 522.75 Td (., which owns 100% of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 510.75 Td (Company’) Tj ET Q q 0 0 0 rg BT 94.84 510.75 Td (s outstanding Class B units. OCGH is owned by the OCGH unitholders. ) Tj ET Q q 0 0 0 rg BT 418.69 510.75 Td (The Company’) Tj ET Q q 0 0 0 rg BT 483.54 510.75 Td (s operations are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 498.75 Td (conducted through a group of operating entities collectively referred to as the “Oaktree Operating Group.” OCGH ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 486.75 Td (has a direct economic interest in the Oaktree Operating Group and the Company has an indirect economic interest ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 474.75 Td (in the Oaktree Operating Group. W) Tj ET Q q 0 0 0 rg BT 207.67 474.75 Td (e collectively refer to the interests in the Oaktree Operating Group as the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 462.75 Td (“Oaktree Operating Group units.” ) Tj ET Q q 0 0 0 rg BT 201.18 462.75 Td (An Oaktree Operating Group unit is not a separate legal interest but represents ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 450.75 Td (one limited partnership interest in each of the Oaktree Operating Group entities. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 429.75 Td (Class ) Tj ET Q q 0 0 0 rg BT 107.23 429.75 Td (A) Tj ET Q q 0 0 0 rg BT 113.35 429.75 Td ( units are entitled to one vote per unit. Class B units are entitled to ten votes per unit. However) Tj ET Q q 0 0 0 rg BT 534.70 429.75 Td (, if the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 417.75 Td (Oaktree control condition \(as defined below\) is no longer satisfied, our Class B units will be entitled to only one vote ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 405.75 Td (per unit. Holders of our Class ) Tj ET Q q 0 0 0 rg BT 184.51 405.75 Td (A) Tj ET Q q 0 0 0 rg BT 190.63 405.75 Td ( units and Class B units generally vote together as a single class on the limited set ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 393.75 Td (of matters on which our unitholders have a vote. Such matters, which must be approved by a majority \(or) Tj ET Q q 0 0 0 rg BT 515.22 393.75 Td (, in the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 381.75 Td (case of election of directors when the Oaktree control condition is no longer satisfied, a plurality\) of the votes ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 369.75 Td (entitled to be cast by all Class ) Tj ET Q q 0 0 0 rg BT 184.52 369.75 Td (A) Tj ET Q q 0 0 0 rg BT 190.63 369.75 Td ( units and Class B units present in person or represented by proxy at a meeting of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 357.75 Td (unitholders, include a proposed sale of all or substantially all of our assets, certain mergers and consolidations, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 345.75 Td (certain amendments to our operating agreement and an election by our board of directors to dissolve the company) Tj ET Q q 0 0 0 rg BT 555.11 345.75 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 333.75 Td (The Class B units do not represent an economic interest in Oaktree Capital Group, LLC. ) Tj ET Q q 0 0 0 rg BT 444.46 333.75 Td (The number of Class B ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 321.75 Td (units held by OCGH, however) Tj ET Q q 0 0 0 rg BT 181.73 321.75 Td (, increases or decreases with corresponding changes in OCGH’) Tj ET Q q 0 0 0 rg BT 463.35 321.75 Td (s economic interest in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 309.75 Td (the Oaktree Operating Group. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 288.75 Td (Our operating agreement provides that so long as our senior executives, or their successors or af) Tj ET Q q 0 0 0 rg BT 515.48 288.75 Td (filiated ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 276.75 Td (entities \(other than us or our subsidiaries\), including OCGH, collectively hold, directly or indirectly) Tj ET Q q 0 0 0 rg BT 477.77 276.75 Td (, at least 10% of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 264.75 Td (the aggregate outstanding Oaktree Operating Group units, our manager) Tj ET Q q 0 0 0 rg BT 367.43 264.75 Td (, Oaktree Capital Group Holdings GP) Tj ET Q q 0 0 0 rg BT 530.66 264.75 Td (, LLC, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 252.75 Td (which is 100% owned and controlled by our senior executives, will be entitled to designate all the members of our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 240.75 Td (board of directors. W) Tj ET Q q 0 0 0 rg BT 145.41 240.75 Td (e refer to this ownership condition as the “Oaktree control condition.” Holders of our Class ) Tj ET Q q 0 0 0 rg BT 546.72 240.75 Td (A) Tj ET Q q 0 0 0 rg BT 552.84 240.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 228.75 Td (units and Class B units have no right to elect our manager) Tj ET Q q 0 0 0 rg BT 306.26 228.75 Td (. So long as the Oaktree control condition is satisfied, our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 216.75 Td (manager will control the membership of our board of directors, which will manage all of our operations and activities ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 204.75 Td (and will have discretion over significant corporate actions, such as the issuance of securities, payment of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 192.75 Td (distributions, sale of assets, making certain amendments to our operating agreement and other matters. ) Tj ET Q endstream endobj 39 0 obj <> endobj 40 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (19) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 741.75 Td (The diagram below depicts our organizational structure as of December 31, 2016. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 324.00 717.75 Td ( ) Tj ET Q /GS0 gs q 512.00 0 0 384.00 50.00 328.75 cm /I19 Do Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 316.75 Td (______________________) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 50.00 305.75 Td (\(1\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 59.17 305.75 Td ( ) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 72.50 305.75 Td (Holds ) Tj ET Q q 0 0 0 rg BT 93.37 305.75 Td (100% ) Tj ET Q q 0 0 0 rg BT 114.25 305.75 Td (of ) Tj ET Q q 0 0 0 rg BT 122.20 305.75 Td (the ) Tj ET Q q 0 0 0 rg BT 134.33 305.75 Td (Class ) Tj ET Q q 0 0 0 rg BT 154.78 305.75 Td (B ) Tj ET Q q 0 0 0 rg BT 161.48 305.75 Td (units ) Tj ET Q q 0 0 0 rg BT 179.02 305.75 Td (and ) Tj ET Q q 0 0 0 rg BT 193.23 305.75 Td (0.02% ) Tj ET Q q 0 0 0 rg BT 216.19 305.75 Td (of ) Tj ET Q q 0 0 0 rg BT 224.14 305.75 Td (the ) Tj ET Q q 0 0 0 rg BT 236.26 305.75 Td (Class ) Tj ET Q q 0 0 0 rg BT 256.38 305.75 Td (A) Tj ET Q q 0 0 0 rg BT 260.97 305.75 Td ( ) Tj ET Q q 0 0 0 rg BT 262.66 305.75 Td (units, ) Tj ET Q q 0 0 0 rg BT 282.29 305.75 Td (which ) Tj ET Q q 0 0 0 rg BT 303.16 305.75 Td (together ) Tj ET Q q 0 0 0 rg BT 332.38 305.75 Td (represent ) Tj ET Q q 0 0 0 rg BT 365.76 305.75 Td (93.6% ) Tj ET Q q 0 0 0 rg BT 388.72 305.75 Td (of ) Tj ET Q q 0 0 0 rg BT 396.67 305.75 Td (the ) Tj ET Q q 0 0 0 rg BT 408.80 305.75 Td (total ) Tj ET Q q 0 0 0 rg BT 424.67 305.75 Td (combined ) Tj ET Q q 0 0 0 rg BT 458.89 305.75 Td (voting ) Tj ET Q q 0 0 0 rg BT 480.60 305.75 Td (power ) Tj ET Q q 0 0 0 rg BT 502.72 305.75 Td (of ) Tj ET Q q 0 0 0 rg BT 510.68 305.75 Td (our ) Tj ET Q q 0 0 0 rg BT 523.21 305.75 Td (outstanding ) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 72.50 296.75 Td (Class ) Tj ET Q q 0 0 0 rg BT 92.64 296.75 Td (A) Tj ET Q q 0 0 0 rg BT 97.23 296.75 Td ( ) Tj ET Q q 0 0 0 rg BT 98.95 296.75 Td (and ) Tj ET Q q 0 0 0 rg BT 113.19 296.75 Td (Class ) Tj ET Q q 0 0 0 rg BT 133.67 296.75 Td (B ) Tj ET Q q 0 0 0 rg BT 140.40 296.75 Td (units. ) Tj ET Q q 0 0 0 rg BT 160.05 296.75 Td ( ) Tj ET Q q 0 0 0 rg BT 161.66 296.75 Td (The ) Tj ET Q q 0 0 0 rg BT 176.31 296.75 Td (Class ) Tj ET Q q 0 0 0 rg BT 196.79 296.75 Td (B ) Tj ET Q q 0 0 0 rg BT 203.51 296.75 Td (units ) Tj ET Q q 0 0 0 rg BT 221.08 296.75 Td (have ) Tj ET Q q 0 0 0 rg BT 239.07 296.75 Td (no ) Tj ET Q q 0 0 0 rg BT 249.14 296.75 Td (economic ) Tj ET Q q 0 0 0 rg BT 282.96 296.75 Td (interest ) Tj ET Q q 0 0 0 rg BT 309.28 296.75 Td (in ) Tj ET Q q 0 0 0 rg BT 316.85 296.75 Td (us. ) Tj ET Q q 0 0 0 rg BT 328.58 296.75 Td ( ) Tj ET Q q 0 0 0 rg BT 330.19 296.75 Td (The ) Tj ET Q q 0 0 0 rg BT 344.84 296.75 Td (general ) Tj ET Q q 0 0 0 rg BT 371.58 296.75 Td (partner ) Tj ET Q q 0 0 0 rg BT 397.07 296.75 Td (of ) Tj ET Q q 0 0 0 rg BT 405.05 296.75 Td (Oaktree ) Tj ET Q q 0 0 0 rg BT 433.46 296.75 Td (Capital ) Tj ET Q q 0 0 0 rg BT 458.53 296.75 Td (Group ) Tj ET Q q 0 0 0 rg BT 481.10 296.75 Td (Holdings, ) Tj ET Q q 0 0 0 rg BT 514.09 296.75 Td (L.P) Tj ET Q q 0 0 0 rg BT 524.38 296.75 Td (. ) Tj ET Q q 0 0 0 rg BT 528.19 296.75 Td (is ) Tj ET Q q 0 0 0 rg BT 535.33 296.75 Td (Oaktree ) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 72.50 287.75 Td (Capital ) Tj ET Q q 0 0 0 rg BT 98.15 287.75 Td (Group ) Tj ET Q q 0 0 0 rg BT 121.29 287.75 Td (Holdings ) Tj ET Q q 0 0 0 rg BT 152.77 287.75 Td (GP) Tj ET Q q 0 0 0 rg BT 162.64 287.75 Td (, ) Tj ET Q q 0 0 0 rg BT 167.02 287.75 Td (LLC, ) Tj ET Q q 0 0 0 rg BT 185.16 287.75 Td (which ) Tj ET Q q 0 0 0 rg BT 206.64 287.75 Td (is ) Tj ET Q q 0 0 0 rg BT 214.35 287.75 Td (controlled ) Tj ET Q q 0 0 0 rg BT 249.17 287.75 Td (by ) Tj ET Q q 0 0 0 rg BT 259.39 287.75 Td (our ) Tj ET Q q 0 0 0 rg BT 272.53 287.75 Td (senior ) Tj ET Q q 0 0 0 rg BT 295.26 287.75 Td (executives. ) Tj ET Q q 0 0 0 rg BT 335.07 287.75 Td ( ) Tj ET Q q 0 0 0 rg BT 337.37 287.75 Td (Oaktree ) Tj ET Q q 0 0 0 rg BT 366.35 287.75 Td (Capital ) Tj ET Q q 0 0 0 rg BT 391.99 287.75 Td (Group ) Tj ET Q q 0 0 0 rg BT 415.14 287.75 Td (Holdings ) Tj ET Q q 0 0 0 rg BT 446.62 287.75 Td (GP) Tj ET Q q 0 0 0 rg BT 456.49 287.75 Td (, ) Tj ET Q q 0 0 0 rg BT 460.87 287.75 Td (LLC ) Tj ET Q q 0 0 0 rg BT 476.93 287.75 Td (also ) Tj ET Q q 0 0 0 rg BT 492.99 287.75 Td (acts ) Tj ET Q q 0 0 0 rg BT 509.04 287.75 Td (as ) Tj ET Q q 0 0 0 rg BT 519.26 287.75 Td (our ) Tj ET Q q 0 0 0 rg BT 532.40 287.75 Td (manager ) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 72.50 278.75 Td (and ) Tj ET Q q 0 0 0 rg BT 87.10 278.75 Td (in ) Tj ET Q q 0 0 0 rg BT 95.02 278.75 Td (that ) Tj ET Q q 0 0 0 rg BT 109.61 278.75 Td (capacity ) Tj ET Q q 0 0 0 rg BT 139.21 278.75 Td (has ) Tj ET Q q 0 0 0 rg BT 153.39 278.75 Td (the ) Tj ET Q q 0 0 0 rg BT 165.90 278.75 Td (authority ) Tj ET Q q 0 0 0 rg BT 196.75 278.75 Td (to ) Tj ET Q q 0 0 0 rg BT 205.09 278.75 Td (designate ) Tj ET Q q 0 0 0 rg BT 239.70 278.75 Td (all ) Tj ET Q q 0 0 0 rg BT 249.29 278.75 Td (the ) Tj ET Q q 0 0 0 rg BT 261.80 278.75 Td (members ) Tj ET Q q 0 0 0 rg BT 295.14 278.75 Td (of ) Tj ET Q q 0 0 0 rg BT 303.48 278.75 Td (our ) Tj ET Q q 0 0 0 rg BT 316.41 278.75 Td (board ) Tj ET Q q 0 0 0 rg BT 337.68 278.75 Td (of ) Tj ET Q q 0 0 0 rg BT 346.01 278.75 Td (directors ) Tj ET Q q 0 0 0 rg BT 376.86 278.75 Td (for ) Tj ET Q q 0 0 0 rg BT 387.70 278.75 Td (so ) Tj ET Q q 0 0 0 rg BT 397.70 278.75 Td (long ) Tj ET Q q 0 0 0 rg BT 413.97 278.75 Td (as ) Tj ET Q q 0 0 0 rg BT 423.97 278.75 Td (the ) Tj ET Q q 0 0 0 rg BT 436.48 278.75 Td (Oaktree ) Tj ET Q q 0 0 0 rg BT 465.25 278.75 Td (control ) Tj ET Q q 0 0 0 rg BT 489.84 278.75 Td (condition ) Tj ET Q q 0 0 0 rg BT 521.95 278.75 Td (is ) Tj ET Q q 0 0 0 rg BT 529.45 278.75 Td (satisfied. ) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 50.00 269.75 Td (\(2\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 59.17 269.75 Td ( ) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 72.50 269.75 Td (The ) Tj ET Q q 0 0 0 rg BT 88.28 269.75 Td (percent ) Tj ET Q q 0 0 0 rg BT 116.16 269.75 Td (economic ) Tj ET Q q 0 0 0 rg BT 151.12 269.75 Td (interest ) Tj ET Q q 0 0 0 rg BT 178.58 269.75 Td (represents ) Tj ET Q q 0 0 0 rg BT 216.88 269.75 Td (the ) Tj ET Q q 0 0 0 rg BT 230.16 269.75 Td (applicable ) Tj ET Q q 0 0 0 rg BT 266.80 269.75 Td (number ) Tj ET Q q 0 0 0 rg BT 295.09 269.75 Td (of ) Tj ET Q q 0 0 0 rg BT 304.21 269.75 Td (Class ) Tj ET Q q 0 0 0 rg BT 325.25 269.75 Td (A) Tj ET Q q 0 0 0 rg BT 329.84 269.75 Td ( ) Tj ET Q q 0 0 0 rg BT 332.70 269.75 Td (units ) Tj ET Q q 0 0 0 rg BT 351.41 269.75 Td (as ) Tj ET Q q 0 0 0 rg BT 362.19 269.75 Td (a ) Tj ET Q q 0 0 0 rg BT 369.22 269.75 Td (percentage ) Tj ET Q q 0 0 0 rg BT 409.61 269.75 Td (of ) Tj ET Q q 0 0 0 rg BT 418.73 269.75 Td (the ) Tj ET Q q 0 0 0 rg BT 432.01 269.75 Td (Oaktree ) Tj ET Q q 0 0 0 rg BT 461.55 269.75 Td (Operating ) Tj ET Q q 0 0 0 rg BT 497.35 269.75 Td (Group ) Tj ET Q q 0 0 0 rg BT 521.06 269.75 Td (units. ) Tj ET Q q 0 0 0 rg BT 541.85 269.75 Td ( ) Tj ET Q q 0 0 0 rg BT 544.14 269.75 Td (As ) Tj ET Q q 0 0 0 rg BT 555.75 269.75 Td (of ) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 72.50 260.75 Td (December ) Tj ET Q q 0 0 0 rg BT 109.18 260.75 Td (31, ) Tj ET Q q 0 0 0 rg BT 121.69 260.75 Td (2016, ) Tj ET Q q 0 0 0 rg BT 142.55 260.75 Td (there ) Tj ET Q q 0 0 0 rg BT 161.73 260.75 Td (were ) Tj ET Q q 0 0 0 rg BT 180.07 260.75 Td (154,790,343 ) Tj ET Q q 0 0 0 rg BT 223.86 260.75 Td (Oaktree ) Tj ET Q q 0 0 0 rg BT 252.62 260.75 Td (Operating ) Tj ET Q q 0 0 0 rg BT 287.65 260.75 Td (Group ) Tj ET Q q 0 0 0 rg BT 310.58 260.75 Td (units ) Tj ET Q q 0 0 0 rg BT 328.50 260.75 Td (outstanding.) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 50.00 251.75 Td (\(3\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 59.17 251.75 Td ( ) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 72.50 251.75 Td (The ) Tj ET Q q 0 0 0 rg BT 88.28 251.75 Td (percent ) Tj ET Q q 0 0 0 rg BT 116.15 251.75 Td (economic ) Tj ET Q q 0 0 0 rg BT 151.10 251.75 Td (interest ) Tj ET Q q 0 0 0 rg BT 178.56 251.75 Td (in ) Tj ET Q q 0 0 0 rg BT 187.25 251.75 Td (Oaktree ) Tj ET Q q 0 0 0 rg BT 216.78 251.75 Td (Operating ) Tj ET Q q 0 0 0 rg BT 252.58 251.75 Td (Group ) Tj ET Q q 0 0 0 rg BT 276.28 251.75 Td (represents ) Tj ET Q q 0 0 0 rg BT 314.57 251.75 Td (the ) Tj ET Q q 0 0 0 rg BT 327.85 251.75 Td (aggregate ) Tj ET Q q 0 0 0 rg BT 364.48 251.75 Td (number ) Tj ET Q q 0 0 0 rg BT 392.77 251.75 Td (of ) Tj ET Q q 0 0 0 rg BT 401.88 251.75 Td (Oaktree ) Tj ET Q q 0 0 0 rg BT 431.41 251.75 Td (Operating ) Tj ET Q q 0 0 0 rg BT 467.21 251.75 Td (Group ) Tj ET Q q 0 0 0 rg BT 490.91 251.75 Td (units ) Tj ET Q q 0 0 0 rg BT 509.60 251.75 Td (held, ) Tj ET Q q 0 0 0 rg BT 528.72 251.75 Td (directly ) Tj ET Q q 0 0 0 rg BT 555.33 251.75 Td (or ) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 72.50 242.75 Td (indirectly) Tj ET Q q 0 0 0 rg BT 101.54 242.75 Td (, ) Tj ET Q q 0 0 0 rg BT 105.71 242.75 Td (as ) Tj ET Q q 0 0 0 rg BT 115.71 242.75 Td (a ) Tj ET Q q 0 0 0 rg BT 121.97 242.75 Td (percentage ) Tj ET Q q 0 0 0 rg BT 161.58 242.75 Td (of ) Tj ET Q q 0 0 0 rg BT 169.92 242.75 Td (the ) Tj ET Q q 0 0 0 rg BT 182.43 242.75 Td (total ) Tj ET Q q 0 0 0 rg BT 198.69 242.75 Td (number ) Tj ET Q q 0 0 0 rg BT 226.21 242.75 Td (of ) Tj ET Q q 0 0 0 rg BT 234.55 242.75 Td (Oaktree ) Tj ET Q q 0 0 0 rg BT 263.31 242.75 Td (Operating ) Tj ET Q q 0 0 0 rg BT 298.33 242.75 Td (Group ) Tj ET Q q 0 0 0 rg BT 321.26 242.75 Td (units ) Tj ET Q q 0 0 0 rg BT 339.19 242.75 Td (outstanding.) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 50.00 233.75 Td (\(4\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 59.17 233.75 Td ( ) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 72.50 233.75 Td (Oaktree ) Tj ET Q q 0 0 0 rg BT 100.90 233.75 Td (Capital ) Tj ET Q q 0 0 0 rg BT 125.96 233.75 Td (Group, ) Tj ET Q q 0 0 0 rg BT 150.61 233.75 Td (LLC ) Tj ET Q q 0 0 0 rg BT 166.09 233.75 Td (holds ) Tj ET Q q 0 0 0 rg BT 185.74 233.75 Td (1,000 ) Tj ET Q q 0 0 0 rg BT 206.22 233.75 Td (shares ) Tj ET Q q 0 0 0 rg BT 230.45 233.75 Td (of ) Tj ET Q q 0 0 0 rg BT 238.43 233.75 Td (non-voting ) Tj ET Q q 0 0 0 rg BT 275.17 233.75 Td (Class ) Tj ET Q q 0 0 0 rg BT 295.30 233.75 Td (A) Tj ET Q q 0 0 0 rg BT 299.89 233.75 Td ( ) Tj ET Q q 0 0 0 rg BT 301.61 233.75 Td (common ) Tj ET Q q 0 0 0 rg BT 332.08 233.75 Td (stock ) Tj ET Q q 0 0 0 rg BT 351.31 233.75 Td (of ) Tj ET Q q 0 0 0 rg BT 359.28 233.75 Td (Oaktree ) Tj ET Q q 0 0 0 rg BT 387.34 233.75 Td (AIF ) Tj ET Q q 0 0 0 rg BT 400.72 233.75 Td (Holdings, ) Tj ET Q q 0 0 0 rg BT 433.71 233.75 Td (Inc., ) Tj ET Q q 0 0 0 rg BT 449.60 233.75 Td (which ) Tj ET Q q 0 0 0 rg BT 470.49 233.75 Td (are ) Tj ET Q q 0 0 0 rg BT 483.05 233.75 Td (entitled ) Tj ET Q q 0 0 0 rg BT 508.96 233.75 Td (to ) Tj ET Q q 0 0 0 rg BT 516.93 233.75 Td (receive ) Tj ET Q q 0 0 0 rg BT 542.83 233.75 Td (100% ) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 72.50 224.75 Td (of ) Tj ET Q q 0 0 0 rg BT 80.60 224.75 Td (any ) Tj ET Q q 0 0 0 rg BT 94.53 224.75 Td (dividends. ) Tj ET Q q 0 0 0 rg BT 130.14 224.75 Td ( ) Tj ET Q q 0 0 0 rg BT 131.98 224.75 Td (Oaktree ) Tj ET Q q 0 0 0 rg BT 160.50 224.75 Td (Capital ) Tj ET Q q 0 0 0 rg BT 185.69 224.75 Td (Group ) Tj ET Q q 0 0 0 rg BT 208.37 224.75 Td (Holdings, ) Tj ET Q q 0 0 0 rg BT 241.48 224.75 Td (L.P) Tj ET Q q 0 0 0 rg BT 251.77 224.75 Td (. ) Tj ET Q q 0 0 0 rg BT 255.70 224.75 Td (holds ) Tj ET Q q 0 0 0 rg BT 275.47 224.75 Td (100 ) Tj ET Q q 0 0 0 rg BT 289.82 224.75 Td (shares ) Tj ET Q q 0 0 0 rg BT 314.17 224.75 Td (of ) Tj ET Q q 0 0 0 rg BT 322.27 224.75 Td (voting ) Tj ET Q q 0 0 0 rg BT 344.12 224.75 Td (Class ) Tj ET Q q 0 0 0 rg BT 364.72 224.75 Td (B ) Tj ET Q q 0 0 0 rg BT 371.56 224.75 Td (common ) Tj ET Q q 0 0 0 rg BT 402.16 224.75 Td (stock ) Tj ET Q q 0 0 0 rg BT 421.50 224.75 Td (of ) Tj ET Q q 0 0 0 rg BT 429.60 224.75 Td (Oaktree ) Tj ET Q q 0 0 0 rg BT 457.75 224.75 Td (AIF ) Tj ET Q q 0 0 0 rg BT 471.26 224.75 Td (Holdings, ) Tj ET Q q 0 0 0 rg BT 504.37 224.75 Td (Inc., ) Tj ET Q q 0 0 0 rg BT 520.38 224.75 Td (which ) Tj ET Q q 0 0 0 rg BT 541.40 224.75 Td (do ) Tj ET Q q 0 0 0 rg BT 551.58 224.75 Td (not ) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 72.50 215.75 Td (participate ) Tj ET Q q 0 0 0 rg BT 109.19 215.75 Td (in ) Tj ET Q q 0 0 0 rg BT 117.11 215.75 Td (dividends ) Tj ET Q q 0 0 0 rg BT 150.89 215.75 Td (or ) Tj ET Q q 0 0 0 rg BT 159.64 215.75 Td (otherwise ) Tj ET Q q 0 0 0 rg BT 193.82 215.75 Td (represent ) Tj ET Q q 0 0 0 rg BT 227.59 215.75 Td (an ) Tj ET Q q 0 0 0 rg BT 238.02 215.75 Td (economic ) Tj ET Q q 0 0 0 rg BT 272.20 215.75 Td (interest ) Tj ET Q q 0 0 0 rg BT 298.88 215.75 Td (in ) Tj ET Q q 0 0 0 rg BT 306.80 215.75 Td (Oaktree ) Tj ET Q q 0 0 0 rg BT 335.15 215.75 Td (AIF ) Tj ET Q q 0 0 0 rg BT 348.91 215.75 Td (Holdings, ) Tj ET Q q 0 0 0 rg BT 382.26 215.75 Td (Inc.) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 50.00 206.75 Td (\(5\)) Tj ET Q BT /F1 7.50 Tf ET q 0 0 0 rg BT 59.17 206.75 Td ( ) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 72.50 206.75 Td (Owned ) Tj ET Q q 0 0 0 rg BT 98.33 206.75 Td (indirectly ) Tj ET Q q 0 0 0 rg BT 130.00 206.75 Td (by ) Tj ET Q q 0 0 0 rg BT 139.99 206.75 Td (Oaktree ) Tj ET Q q 0 0 0 rg BT 168.74 206.75 Td (Holdings, ) Tj ET Q q 0 0 0 rg BT 202.07 206.75 Td (LLC ) Tj ET Q q 0 0 0 rg BT 217.90 206.75 Td (through ) Tj ET Q q 0 0 0 rg BT 245.41 206.75 Td (an ) Tj ET Q q 0 0 0 rg BT 255.82 206.75 Td (entity ) Tj ET Q q 0 0 0 rg BT 275.82 206.75 Td (not ) Tj ET Q q 0 0 0 rg BT 288.31 206.75 Td (reflected ) Tj ET Q q 0 0 0 rg BT 319.15 206.75 Td (in ) Tj ET Q q 0 0 0 rg BT 327.06 206.75 Td (this ) Tj ET Q q 0 0 0 rg BT 340.80 206.75 Td (diagram ) Tj ET Q q 0 0 0 rg BT 369.96 206.75 Td (that ) Tj ET Q q 0 0 0 rg BT 384.54 206.75 Td (is ) Tj ET Q q 0 0 0 rg BT 392.03 206.75 Td (treated ) Tj ET Q q 0 0 0 rg BT 417.45 206.75 Td (as ) Tj ET Q q 0 0 0 rg BT 427.44 206.75 Td (a ) Tj ET Q q 0 0 0 rg BT 433.68 206.75 Td (partnership ) Tj ET Q q 0 0 0 rg BT 473.27 206.75 Td (for ) Tj ET Q q 0 0 0 rg BT 484.09 206.75 Td (U.S. ) Tj ET Q q 0 0 0 rg BT 500.75 206.75 Td (federal ) Tj ET Q q 0 0 0 rg BT 525.75 206.75 Td (income ) Tj ET Q q 0 0 0 rg BT 552.00 206.75 Td (tax ) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 72.50 197.75 Td (purposes. ) Tj ET Q q 0 0 0 rg BT 107.64 197.75 Td ( ) Tj ET Q q 0 0 0 rg BT 109.70 197.75 Td (Through ) Tj ET Q q 0 0 0 rg BT 139.84 197.75 Td (this ) Tj ET Q q 0 0 0 rg BT 153.71 197.75 Td (entity) Tj ET Q q 0 0 0 rg BT 171.08 197.75 Td (, ) Tj ET Q q 0 0 0 rg BT 175.37 197.75 Td (each ) Tj ET Q q 0 0 0 rg BT 193.83 197.75 Td (of ) Tj ET Q q 0 0 0 rg BT 202.29 197.75 Td (Oaktree ) Tj ET Q q 0 0 0 rg BT 231.17 197.75 Td (Holdings, ) Tj ET Q q 0 0 0 rg BT 264.65 197.75 Td (Inc. ) Tj ET Q q 0 0 0 rg BT 278.94 197.75 Td (and ) Tj ET Q q 0 0 0 rg BT 293.65 197.75 Td (Oaktree ) Tj ET Q q 0 0 0 rg BT 322.53 197.75 Td (Holdings, ) Tj ET Q q 0 0 0 rg BT 356.01 197.75 Td (Ltd. ) Tj ET Q q 0 0 0 rg BT 370.72 197.75 Td (owns ) Tj ET Q q 0 0 0 rg BT 390.43 197.75 Td (a ) Tj ET Q q 0 0 0 rg BT 396.80 197.75 Td (less ) Tj ET Q q 0 0 0 rg BT 412.34 197.75 Td (than ) Tj ET Q q 0 0 0 rg BT 429.14 197.75 Td (1% ) Tj ET Q q 0 0 0 rg BT 442.19 197.75 Td (indirect ) Tj ET Q q 0 0 0 rg BT 468.57 197.75 Td (interest ) Tj ET Q q 0 0 0 rg BT 495.37 197.75 Td (in ) Tj ET Q q 0 0 0 rg BT 503.41 197.75 Td (Oaktree ) Tj ET Q q 0 0 0 rg BT 532.29 197.75 Td (Capital ) Tj ET Q q 0 0 0 rg BT 557.84 197.75 Td (I, ) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 72.50 188.75 Td (L.P) Tj ET Q q 0 0 0 rg BT 82.79 188.75 Td (. ) Tj ET Q q 0 0 0 rg BT 86.96 188.75 Td ( ) Tj ET Q endstream endobj 41 0 obj <> endobj 42 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (20) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Regulatory Matters and Compliance ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 720.75 Td (Our business, as well as the financial services industry in general, is subject to extensive regulation in the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 708.75 Td (United States and elsewhere. Our indirect subsidiary) Tj ET Q q 0 0 0 rg BT 284.93 708.75 Td (, Oaktree Capital Management, L.P) Tj ET Q q 0 0 0 rg BT 440.39 708.75 Td (., is registered as an ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 696.75 Td (investment adviser with the U.S. Securities and Exchange Commission \(“SEC”\). Registered investment advisers ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 684.75 Td (are subject to the requirements and regulations of the U.S. Investment ) Tj ET Q q 0 0 0 rg BT 362.95 684.75 Td (Advisers ) Tj ET Q q 0 0 0 rg BT 403.53 684.75 Td (Act of 1940, as amended \(the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 672.75 Td (“Advisers ) Tj ET Q q 0 0 0 rg BT 93.90 672.75 Td (Act”\). ) Tj ET Q q 0 0 0 rg BT 123.16 672.75 Td (These requirements relate to, among other things, fiduciary duties to clients, maintaining an ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 660.75 Td (ef) Tj ET Q q 0 0 0 rg BT 58.16 660.75 Td (fective compliance program, solicitation agreements, conflicts of interest, recordkeeping and reporting, disclosure, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 648.75 Td (limitations on agency cross and principal transactions between an adviser and advisory clients and general anti-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 636.75 Td (fraud prohibitions. In addition, Oaktree Capital Management, L.P) Tj ET Q q 0 0 0 rg BT 336.66 636.75 Td (. is registered as a commodity pool operator and a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 624.75 Td (commodity trading adviser with the U.S. Commodity Futures ) Tj ET Q q 0 0 0 rg BT 318.80 624.75 Td (T) Tj ET Q q 0 0 0 rg BT 324.54 624.75 Td (rading Commission \(“CFTC”\). Registered commodity ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 612.75 Td (pool operators and commodity trading advisers are each subject to the requirements and regulations of the U.S. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 600.75 Td (Commodity Exchange ) Tj ET Q q 0 0 0 rg BT 150.05 600.75 Td (Act, as amended \(the “Commodity Exchange ) Tj ET Q q 0 0 0 rg BT 351.26 600.75 Td (Act”\). ) Tj ET Q q 0 0 0 rg BT 380.52 600.75 Td (These requirements relate to, among ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 588.75 Td (other things, maintaining an ef) Tj ET Q q 0 0 0 rg BT 183.79 588.75 Td (fective compliance program, recordkeeping and reporting, disclosure, business ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 576.75 Td (conduct, and general anti-fraud prohibitions. In addition, as a registered commodity pool operator and a commodity ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 564.75 Td (trading adviser with the CFTC, we are also required to be a member of the National Futures ) Tj ET Q q 0 0 0 rg BT 457.42 564.75 Td (Association \(the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 552.75 Td (“NF) Tj ET Q q 0 0 0 rg BT 66.11 552.75 Td (A”\), a self-regulatory organization for the U.S. derivatives industry) Tj ET Q q 0 0 0 rg BT 354.94 552.75 Td (. ) Tj ET Q q 0 0 0 rg BT 363.09 552.75 Td (The NF) Tj ET Q q 0 0 0 rg BT 395.88 552.75 Td (A) Tj ET Q q 0 0 0 rg BT 402.00 552.75 Td ( also promulgates and enforces ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 540.75 Td (rules governing the conduct of, and examines the activities of, its member firms. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 519.75 Td (In 2014, we launched our first Oaktree-branded mutual funds, which are subject to the rules and regulations ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 507.75 Td (applicable to investment companies under the U.S. Investment Company ) Tj ET Q q 0 0 0 rg BT 375.18 507.75 Td (Act of 1940 \(as amended, the “Investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 495.75 Td (Company ) Tj ET Q q 0 0 0 rg BT 95.02 495.75 Td (Act”\). W) Tj ET Q q 0 0 0 rg BT 133.73 495.75 Td (e are required to invest our mutual funds’) Tj ET Q q 0 0 0 rg BT 315.12 495.75 Td ( assets in accordance with limitations under the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 483.75 Td (Investment Company ) Tj ET Q q 0 0 0 rg BT 146.71 483.75 Td (Act and applicable provisions of the U.S. Internal Revenue Code of 1986, as amended \(the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 471.75 Td (“Code”\). In addition, we are required to file periodic and annual reports on behalf of the mutual funds with the SEC. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 459.75 Td (Furthermore, advisers to mutual funds have a fiduciary duty under the Investment Company ) Tj ET Q q 0 0 0 rg BT 457.98 459.75 Td (Act not to charge ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 447.75 Td (excessive compensation, and the Investment Company ) Tj ET Q q 0 0 0 rg BT 297.36 447.75 Td (Act grants shareholders of mutual funds a direct private ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 435.75 Td (right of action against investment advisers to seek redress for alleged violations of this fiduciary duty) Tj ET Q q 0 0 0 rg BT 491.70 435.75 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 414.75 Td (One of our indirect subsidiaries, OCM Investments, LLC, is registered as a broker-dealer with the SEC and in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 402.75 Td (all 50 states, the District of Columbia and Puerto Rico, and is a member of the U.S. Financial Industry Regulatory ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 390.75 Td (Authority \(“FINRA”\). ) Tj ET Q q 0 0 0 rg BT 143.34 390.75 Td (As a broker-dealer) Tj ET Q q 0 0 0 rg BT 225.05 390.75 Td (, this subsidiary is subject to regulation and oversight by the SEC and state ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 378.75 Td (securities regulators. In addition, FINRA, a self-regulatory organization that is subject to oversight by the SEC, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 366.75 Td (promulgates and enforces rules governing the conduct of, and examines the activities of, its member firms. Due to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 354.75 Td (the limited authority granted to our subsidiary in its capacity as a broker-dealer) Tj ET Q q 0 0 0 rg BT 395.73 354.75 Td (, it is not required to comply with ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 342.75 Td (certain regulations covering trade practices among broker-dealers and the use and safekeeping of customers’) Tj ET Q q 0 0 0 rg BT 534.35 342.75 Td ( funds ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 330.75 Td (and securities. ) Tj ET Q q 0 0 0 rg BT 119.48 330.75 Td (As a registered broker-dealer and member of a self-regulatory organization, we are, however) Tj ET Q q 0 0 0 rg BT 529.14 330.75 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 318.75 Td (subject to the SEC’) Tj ET Q q 0 0 0 rg BT 134.86 318.75 Td (s uniform net capital rule. Rule 15c3-1 of the Exchange ) Tj ET Q q 0 0 0 rg BT 383.34 318.75 Td (Act specifies the minimum level of net ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 306.75 Td (capital a broker-dealer must maintain and also requires that a significant part of a broker-dealer) Tj ET Q q 0 0 0 rg BT 471.15 306.75 Td (’) Tj ET Q q 0 0 0 rg BT 473.19 306.75 Td (s assets be kept in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 294.75 Td (relatively liquid form. ) Tj ET Q q 0 0 0 rg BT 146.52 294.75 Td (The SEC and FINRA) Tj ET Q q 0 0 0 rg BT 238.78 294.75 Td ( impose rules that require notification when net capital falls below certain ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 282.75 Td (predefined criteria, limit the ratio of subordinated debt to equity in the regulatory capital composition of a broker-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 270.75 Td (dealer and constrain the ability of a broker-dealer to expand its business under certain circumstances. ) Tj ET Q q 0 0 0 rg BT 504.69 270.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 555.09 270.75 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 258.75 Td (the SEC’) Tj ET Q q 0 0 0 rg BT 89.28 258.75 Td (s uniform net capital rule imposes certain requirements that may have the ef) Tj ET Q q 0 0 0 rg BT 425.38 258.75 Td (fect of prohibiting a broker-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 246.75 Td (dealer from distributing or withdrawing capital and requiring prior notice to the SEC for certain withdrawals of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 234.75 Td (capital. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 213.75 Td (Another of our subsidiaries, Oaktree Capital Management \(UK\) LLP) Tj ET Q q 0 0 0 rg BT 377.75 213.75 Td (, is authorized and regulated by the U.K. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 201.75 Td (Financial Conduct ) Tj ET Q q 0 0 0 rg BT 132.27 201.75 Td (Authority \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.84 201.75 Td (“) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 182.28 201.75 Td (FCA) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.28 201.75 Td (”) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 206.72 201.75 Td (\) as an investment manager in the United Kingdom. ) Tj ET Q q 0 0 0 rg BT 440.00 201.75 Td (The U.K. Financial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 189.75 Td (Services and Markets ) Tj ET Q q 0 0 0 rg BT 148.37 189.75 Td (Act 2000 \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.96 189.75 Td (“) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 198.39 189.75 Td (FSMA) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.17 189.75 Td (”) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 230.61 189.75 Td (\) and rules promulgated thereunder govern all aspects of the U.K. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 177.75 Td (investment business, including sales, research and trading practices, the provision of investment advice, the use ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 165.75 Td (and safekeeping of client funds and securities, regulatory capital, recordkeeping, margin practices and procedures, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 153.75 Td (the approval standards for individuals, anti-money laundering, periodic reporting, and settlement procedures. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 141.75 Td (Similarly) Tj ET Q q 0 0 0 rg BT 87.04 141.75 Td (, we have a number of other non-U.S. subsidiaries that are regulated by the applicable regulators in their ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 129.75 Td (respective jurisdictions. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 108.75 Td (The SEC and other regulators have in recent years aggressively increased their regulatory activities in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 96.75 Td (respect of asset management firms. ) Tj ET Q q 0 0 0 rg BT 214.33 96.75 Td (The Dodd-Frank W) Tj ET Q q 0 0 0 rg BT 298.98 96.75 Td (all Street Reform and Consumer Protection ) Tj ET Q q 0 0 0 rg BT 492.41 96.75 Td (Act \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.64 96.75 Td (“) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 534.08 96.75 Td (Dodd-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 84.75 Td (Frank ) Tj ET Q q 0 0 0 rg BT 77.79 84.75 Td (Act) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.24 84.75 Td (”) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 96.67 84.75 Td (\), among other things, imposes significant regulations on nearly every aspect of the U.S. financial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 72.75 Td (services industry) Tj ET Q q 0 0 0 rg BT 123.73 72.75 Td (, including oversight and regulation of systemic market risk \(including the power to liquidate certain ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 60.75 Td (institutions\); authorizing the Federal Reserve to regulate nonbank institutions that are deemed systemically ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 48.75 Td (important; generally prohibiting insured depository institutions and their af) Tj ET Q q 0 0 0 rg BT 373.89 48.75 Td (filiates from conducting proprietary trading ) Tj ET Q endstream endobj 43 0 obj <> endobj 44 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (21) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (and investing in private equity funds and hedge funds; and imposing new registration, recordkeeping and reporting ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (requirements on private fund investment advisers. Some of these provisions are still subject to further rulemaking ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (and to the discretion of regulatory bodies. ) Tj ET Q q 0 0 0 rg BT 238.82 717.75 Td (The Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 313.86 717.75 Td (Act also prohibits investments in private equity and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 705.75 Td (hedge funds by certain banking entities and covered nonbank companies. While certain of our subsidiaries are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 693.75 Td (already registered investment advisers and registered broker-dealers and subject to SEC and FINRA) Tj ET Q q 0 0 0 rg BT 495.22 693.75 Td ( examinations, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 681.75 Td (compliance with any additional legal or regulatory requirements, including the need to register other subsidiaries as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 669.75 Td (investment advisers, could make compliance more dif) Tj ET Q q 0 0 0 rg BT 287.14 669.75 Td (ficult and expensive and af) Tj ET Q q 0 0 0 rg BT 405.38 669.75 Td (fect the manner in which we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 657.75 Td (conduct business. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 636.75 Td (Certain of our activities are subject to compliance with laws and regulations of U.S. federal, state and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 624.75 Td (municipal governments, non-U.S. governments, their respective agencies and/or various self-regulatory ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 612.75 Td (organizations or exchanges relating to, among other things, antitrust laws, anti-money laundering laws, anti-bribery ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 600.75 Td (laws relating to foreign of) Tj ET Q q 0 0 0 rg BT 160.99 600.75 Td (ficials, and privacy laws with respect to client information, and some of our funds invest in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 588.75 Td (businesses that operate in highly regulated industries. ) Tj ET Q q 0 0 0 rg BT 293.49 588.75 Td (Any failure to comply with these rules and regulations could ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 576.75 Td (expose us to liability and/or reputational damage. Our business has operated for many years within a legal ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 564.75 Td (framework that requires our being able to monitor and comply with a broad range of legal and regulatory ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 552.75 Td (developments that af) Tj ET Q q 0 0 0 rg BT 142.66 552.75 Td (fect our activities. However) Tj ET Q q 0 0 0 rg BT 264.37 552.75 Td (, additional legislation, changes in rules or changes in the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 540.75 Td (interpretation or enforcement of existing laws and rules, either in the United States or elsewhere, may directly af) Tj ET Q q 0 0 0 rg BT 543.40 540.75 Td (fect ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 528.75 Td (our mode of operation and profitability) Tj ET Q q 0 0 0 rg BT 217.14 528.75 Td (. Please see “Risk Factors—Risks Relating to Our Business—Regulatory ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 516.75 Td (changes in the United States, regulatory compliance failures and the ef) Tj ET Q q 0 0 0 rg BT 363.34 516.75 Td (fects of negative publicity surrounding the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 504.75 Td (financial industry in general could adversely af) Tj ET Q q 0 0 0 rg BT 254.38 504.75 Td (fect our reputation, business and operations.”) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 483.75 Td (Financial and Other Information by Segment) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 462.75 Td (Financial and other information by segment for the years ended December 31, 2016, 2015 and 2014 are set ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 450.75 Td (forth in the “Segment Reporting” note in our consolidated financial statements included elsewhere in this annual ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 438.75 Td (report.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 417.75 Td (A) Tj ET Q q 0 0 0 rg BT 56.85 417.75 Td (vailable Information) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 396.75 Td (Our website address is www) Tj ET Q q 0 0 0 rg BT 205.60 396.75 Td (.oaktreecapital.com. Information on our website is not a part of this annual ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 384.75 Td (report and is not incorporated by reference herein. W) Tj ET Q q 0 0 0 rg BT 287.17 384.75 Td (e make available free of charge on our website or provide a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 372.75 Td (link on our website to our ) Tj ET Q q 0 0 0 rg BT 163.40 372.75 Td (Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 360.75 Td (Form 8-K and any amendments to those reports filed or furnished pursuant to Section 13\(a\) or 15\(d\) of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 348.75 Td (Exchange ) Tj ET Q q 0 0 0 rg BT 96.70 348.75 Td (Act, as soon as reasonably practicable after those reports are electronically filed with, or furnished to, the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 336.75 Td (SEC. ) Tj ET Q q 0 0 0 rg BT 78.72 336.75 Td (T) Tj ET Q q 0 0 0 rg BT 83.72 336.75 Td (o access these filings, go to the “Unitholders—Investor Relations” section of our website and then click on ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 324.75 Td (“SEC Filings.” ) Tj ET Q q 0 0 0 rg BT 117.05 324.75 Td (Y) Tj ET Q q 0 0 0 rg BT 122.80 324.75 Td (ou may also read and copy any document we file at the SEC’) Tj ET Q q 0 0 0 rg BT 392.77 324.75 Td (s public reference room located at ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 312.75 Td (100 F Street, N.E., W) Tj ET Q q 0 0 0 rg BT 144.66 312.75 Td (ashington, DC 20549. Please call the SEC at 1-800-SEC-0330 for further information on the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 300.75 Td (public reference room. In addition these reports and the other documents we file with the SEC are available at a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 288.75 Td (website maintained by the SEC at www) Tj ET Q q 0 0 0 rg BT 223.97 288.75 Td (.sec.gov) Tj ET Q q 0 0 0 rg BT 260.47 288.75 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 267.75 Td (Investors and others should note that we use the Unitholders – Investor Relations section of our corporate ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 255.75 Td (website to announce material information to investors and the marketplace. While not all of the information that we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 243.75 Td (post on our corporate website is of a material nature, some information could be deemed to be material. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 231.75 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 100.95 231.75 Td (, we encourage investors, the media, and others interested in Oaktree to review the information that we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 219.75 Td (share on our corporate website at the Unitholders – Investor Relations section of our website, http://) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 207.75 Td (ir) Tj ET Q q 0 0 0 rg BT 55.00 207.75 Td (.oaktreecapital.com/. Information contained on, or available through, our website is not incorporated by reference ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 195.75 Td (into this document.) Tj ET Q endstream endobj 45 0 obj <> endobj 46 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 390.40 31.25 Td (22) Tj ET Q BT /F2 11.00 Tf ET q 0 0 0 rg BT 50.00 561.00 Td (Fund Data ) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 50.00 545.80 Td (Information regarding our closed-end, open-end and evergreen funds, together with benchmark data where applicable, is set forth below) Tj ET Q q 0 0 0 rg BT 561.28 545.80 Td (. For our closed-end and evergreen funds, no ) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 50.00 535.60 Td (benchmarks are presented in the tables as there are no known comparable benchmarks for these funds’) Tj ET Q q 0 0 0 rg BT 441.40 535.60 Td ( investment philosophy) Tj ET Q q 0 0 0 rg BT 527.23 535.60 Td (, strategy and implementation. ) Tj ET Q BT /F3 11.00 Tf ET 0 0 0 RG /GS0 gs 0.81 w 0 i [] 0 d 1 J 1 j 3 M 50 507.631640625 m 139.88525390625 507.631640625 l s q 0 0 0 rg BT 50.00 509.20 Td (Closed-end Funds) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 139.89 509.20 Td ( ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267.5 486.70000000000005 m 305.5 486.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305.5 486.70000000000005 m 309.5 486.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309.5 486.70000000000005 m 346.5 486.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 486.70000000000005 m 350.5 486.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 486.70000000000005 m 384.5 486.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 486.70000000000005 m 388.5 486.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 486.70000000000005 m 421.5 486.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421.5 486.70000000000005 m 425.5 486.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425.5 486.70000000000005 m 458.5 486.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458.5 486.70000000000005 m 462.5 486.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462.5 486.70000000000005 m 487.5 486.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 486.70000000000005 m 491.5 486.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 486.70000000000005 m 524.5 486.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 524.5 486.70000000000005 m 528.5 486.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 528.5 486.70000000000005 m 561.5 486.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 561.5 486.70000000000005 m 565.5 486.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 565.5 486.70000000000005 m 601.5 486.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 601.5 486.70000000000005 m 605.5 486.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 605.5 486.70000000000005 m 644.5 486.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 644.5 486.70000000000005 m 648.5 486.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 648.5 486.70000000000005 m 674.5 486.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 674.5 486.70000000000005 m 678.5 486.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 678.5 486.70000000000005 m 704.5 486.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 704.5 486.70000000000005 m 708.5 486.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 708.5 486.70000000000005 m 741.5 486.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 185.5 450.70000000000005 m 222.5 450.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 222.5 450.70000000000005 m 226.5 450.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 226.5 450.70000000000005 m 263.5 450.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309.5 486.70000000000005 m 346.5 486.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346.5 486.70000000000005 m 350.5 486.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 486.70000000000005 m 384.5 486.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 648.5 450.70000000000005 m 674.5 450.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 674.5 450.70000000000005 m 678.5 450.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 678.5 450.70000000000005 m 704.5 450.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 185.5 438.70000000000005 m 222.5 438.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 226.5 438.70000000000005 m 263.5 438.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267.5 438.70000000000005 m 305.5 438.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309.5 438.70000000000005 m 346.5 438.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 438.70000000000005 m 384.5 438.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 438.70000000000005 m 421.5 438.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425.5 438.70000000000005 m 458.5 438.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462.5 438.70000000000005 m 487.5 438.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 438.70000000000005 m 524.5 438.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 528.5 438.70000000000005 m 561.5 438.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 565.5 438.70000000000005 m 601.5 438.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 605.5 438.70000000000005 m 644.5 438.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 648.5 438.70000000000005 m 674.5 438.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 678.5 438.70000000000005 m 704.5 438.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 708.5 438.70000000000005 m 741.5 438.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 648.5 299.70000000000005 m 674.5 299.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 678.5 299.70000000000005 m 704.5 299.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 648.5 209.70000000000005 m 674.5 209.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 678.5 209.70000000000005 m 704.5 209.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 648.5 69.70000000000005 m 674.5 69.70000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 678.5 69.70000000000005 m 704.5 69.70000000000005 l s BT /F2 6.00 Tf ET q 0 0 0 rg BT 468.60 490.48 Td (As of December 31, 2016) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 117.00 454.48 Td ( ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 197.95 454.48 Td (Investment Period) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 279.05 454.48 Td (Total) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 270.30 448.48 Td (Committed) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 275.95 442.48 Td (Capital) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 324.80 448.48 Td (% ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 312.10 442.48 Td (Invested ) Tj ET Q BT /F2 6.00 Tf ET BT /F2 3.90 Tf ET q 0 0 0 rg BT 338.11 445.34 Td (\(1\)) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 364.30 448.48 Td (%) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 354.60 442.48 Td (Drawn ) Tj ET Q BT /F2 6.00 Tf ET BT /F2 3.90 Tf ET q 0 0 0 rg BT 374.60 445.34 Td (\(2\)) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 391.50 460.48 Td (Fund Net) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 393.95 454.48 Td (Income) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 396.45 448.48 Td (Since) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 391.15 442.48 Td (Inception) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 432.80 460.48 Td (Distri-) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 430.65 454.48 Td (butions ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 433.45 448.48 Td (Since ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 428.15 442.48 Td (Inception) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 469.65 454.48 Td (Net) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 466.30 448.48 Td (Asset) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 466.65 442.48 Td (Value) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 495.30 472.48 Td (Manage-) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 500.30 466.48 Td (ment ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 501.30 460.48 Td (Fee-) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 498.30 454.48 Td (gener-) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 500.30 448.48 Td (ating ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 500.65 442.48 Td (AUM) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 533.30 472.48 Td (Oaktree ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 531.80 466.48 Td (Segment ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 531.45 460.48 Td (Incentive ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 533.95 454.48 Td (Income ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 534.30 448.48 Td (Recog-) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 536.80 442.48 Td (nized) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 570.95 460.48 Td (Accrued ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 568.30 454.48 Td (Incentives ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 574.65 448.48 Td (\(Fund ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 571.10 442.48 Td (Level\) ) Tj ET Q BT /F2 6.00 Tf ET BT /F2 3.90 Tf ET q 0 0 0 rg BT 590.11 445.34 Td (\(3\)) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 608.30 478.48 Td (Unreturned ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 615.30 472.48 Td (Drawn ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 614.45 466.48 Td (Capital ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 618.15 460.48 Td (Plus ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 612.45 454.48 Td (Accrued ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 611.15 448.48 Td (Preferred ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 611.60 442.48 Td (Return ) Tj ET Q BT /F2 6.00 Tf ET BT /F2 3.90 Tf ET q 0 0 0 rg BT 632.60 445.34 Td (\(4\)) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 661.95 460.48 Td (IRR Since ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 659.45 454.48 Td (Inception ) Tj ET Q BT /F2 6.00 Tf ET BT /F2 3.90 Tf ET q 0 0 0 rg BT 687.78 457.34 Td (\(5\)) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 713.15 454.48 Td (Multiple ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 711.65 448.48 Td (of Drawn ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 711.25 442.48 Td (Capital ) Tj ET Q BT /F2 6.00 Tf ET BT /F2 3.90 Tf ET q 0 0 0 rg BT 732.92 445.34 Td (\(6\)) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 189.30 442.48 Td (Start Date) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 231.45 442.48 Td (End Date) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 652.30 442.48 Td (Gross) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 686.15 442.48 Td (Net) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 431.83 Td ( ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 446.15 431.83 Td (\(in millions\)) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 52.00 422.83 Td (Distressed Debt) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 188.00 422.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 229.00 422.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 428.00 422.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 465.00 422.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 681.00 422.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 711.00 422.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 412.83 Td (Oaktree Opportunities Fund Xb) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 136.95 412.83 Td (...........................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 197.50 412.83 Td (TBD) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 241.50 412.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 270.00 412.83 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 287.95 412.83 Td (8,063) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 334.60 412.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 340.65 412.83 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 372.60 412.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 378.65 412.83 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 391.00 412.83 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 413.00 412.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 428.00 412.83 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 450.00 412.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 465.00 412.83 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 479.00 412.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 494.00 412.83 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 516.00 412.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 531.00 412.83 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 553.00 412.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 568.00 412.83 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 593.00 412.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 608.00 412.83 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 636.00 412.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 656.80 412.83 Td (n/a) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 686.80 412.83 Td (n/a) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 720.30 412.83 Td (n/a) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 402.83 Td (Oaktree Opportunities Fund X ) Tj ET Q BT /F3 6.00 Tf ET BT /F3 3.90 Tf ET q 0 0 0 rg BT 133.38 405.69 Td (\(7\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 138.14 402.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 140.30 402.83 Td (.........................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 190.30 402.83 Td (Jan. 2016) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 231.30 402.83 Td (Jan. 2019) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 287.95 402.83 Td (3,243) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 333.95 402.83 Td (74) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 371.95 402.83 Td (35) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 408.95 402.83 Td (367) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 449.30 402.83 Td (41) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 469.95 402.83 Td (1,461) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 506.95 402.83 Td (3,161) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 553.00 402.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 592.30 402.83 Td (71) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 626.95 402.83 Td (1,152) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 656.80 402.83 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 686.80 402.83 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 718.80 402.83 Td (1.4x) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 392.83 Td (Oaktree Opportunities Fund IX) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 135.30 392.83 Td (............................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 190.30 392.83 Td (Jan. 2014) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 231.30 392.83 Td (Jan. 2017) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 287.95 392.83 Td (5,066) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 330.60 392.83 Td (100) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 368.60 392.83 Td (100) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 408.95 392.83 Td (132) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 452.65 392.83 Td (5) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 469.95 392.83 Td (5,193) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 506.95 392.83 Td (4,966) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 553.00 392.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 593.00 392.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 626.95 392.83 Td (6,219) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 660.30 392.83 Td (3.7) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 668.65 392.83 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 690.30 392.83 Td (0.9) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 698.65 392.83 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 720.30 392.83 Td (1.1) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 382.83 Td (Oaktree Opportunities Fund VIIIb) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 141.95 382.83 Td (........................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 190.00 382.83 Td (Aug. 2011) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 230.80 382.83 Td (Aug. 2014) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 287.95 382.83 Td (2,692) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 334.65 382.83 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 368.60 382.83 Td (100) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 408.95 382.83 Td (452) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 440.95 382.83 Td (1,314) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 469.95 382.83 Td (1,830) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 506.95 382.83 Td (2,074) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 552.30 382.83 Td (52) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 593.00 382.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 626.95 382.83 Td (2,372) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 660.30 382.83 Td (6.7) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 690.30 382.83 Td (3.7) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 720.30 382.83 Td (1.3) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 372.83 Td (Special Account B) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 101.95 372.83 Td (................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 190.00 372.83 Td (Nov. 2009) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 231.00 372.83 Td (Nov. 2012) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 287.95 372.83 Td (1,031) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 334.65 372.83 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 368.60 372.83 Td (100) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 408.95 372.83 Td (497) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 440.95 372.83 Td (1,147) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 474.95 372.83 Td (452) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 511.95 372.83 Td (438) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 552.30 372.83 Td (15) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 593.00 372.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 631.95 372.83 Td (428) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 656.95 372.88 Td (12.8) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 686.95 372.88 Td (10.3) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 720.30 372.83 Td (1.5) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 362.83 Td (Oaktree Opportunities Fund VIII) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 138.65 362.83 Td (..........................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 190.45 362.83 Td (Oct. 2009) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 231.45 362.83 Td (Oct. 2012) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 287.95 362.83 Td (4,507) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 334.65 362.83 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 368.60 362.83 Td (100) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 403.95 362.83 Td (2,069) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 440.95 362.83 Td (4,652) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 469.95 362.83 Td (1,924) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 506.95 362.83 Td (1,797) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.95 362.83 Td (144) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 588.95 362.83 Td (218) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 626.95 362.83 Td (1,627) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 656.95 362.88 Td (12.1) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 690.30 362.83 Td (8.4) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 720.30 362.83 Td (1.5) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 352.83 Td (Special Account A) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 101.95 352.83 Td (................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 190.00 352.83 Td (Nov. 2008) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 231.45 352.83 Td (Oct. 2012) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 292.95 352.83 Td (253) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 334.65 352.83 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 368.60 352.83 Td (100) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 408.95 352.83 Td (297) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 445.95 352.83 Td (466) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 478.30 352.83 Td (84) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 515.30 352.83 Td (71) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 552.30 352.83 Td (42) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 592.30 352.83 Td (17) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 636.00 352.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 656.95 352.88 Td (28.1) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 686.95 352.88 Td (22.7) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 720.30 352.83 Td (2.2) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 342.83 Td (OCM Opportunities Fund VIIb) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 133.65 342.83 Td (.............................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 190.30 342.83 Td (May 2008) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 231.50 342.83 Td (May 2011) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 284.60 342.83 Td (10,940) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 334.65 342.83 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 371.95 342.83 Td (90) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 403.95 342.83 Td (8,817) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 437.60 342.83 Td (17,369) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 469.95 342.83 Td (1,292) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 506.95 342.83 Td (1,202) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 543.95 342.83 Td (1,472) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 588.95 342.83 Td (242) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 636.00 342.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 656.95 342.88 Td (21.9) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 686.95 342.88 Td (16.6) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 720.30 342.83 Td (2.0) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 332.83 Td (OCM Opportunities Fund VII) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 130.30 332.83 Td (...............................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 190.15 332.83 Td (Mar. 2007) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 231.15 332.83 Td (Mar. 2010) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 287.95 332.83 Td (3,598) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 334.65 332.83 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 368.60 332.83 Td (100) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 403.95 332.83 Td (1,472) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 440.95 332.83 Td (4,637) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 474.95 332.83 Td (433) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 511.95 332.83 Td (633) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 552.30 332.83 Td (81) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 593.00 332.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 631.95 332.83 Td (553) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 656.95 332.88 Td (10.3) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 690.30 332.83 Td (7.6) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 720.30 332.83 Td (1.5) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 322.83 Td (OCM Opportunities Fund VI) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 128.65 322.83 Td (................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 191.30 322.83 Td (Jul. 2005) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 232.30 322.83 Td (Jul. 2008) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 287.95 322.83 Td (1,773) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 334.65 322.83 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 368.60 322.83 Td (100) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 403.95 322.83 Td (1,297) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 440.95 322.83 Td (3,051) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 478.30 322.83 Td (19) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 516.00 322.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.95 322.83 Td (249) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 595.65 322.83 Td (4) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 636.00 322.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 656.95 322.88 Td (11.9) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 690.30 322.83 Td (8.8) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 720.30 322.83 Td (1.8) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 312.83 Td (OCM Opportunities Fund V) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 126.95 312.83 Td (.................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 190.30 312.83 Td (Jun. 2004) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 231.30 312.83 Td (Jun. 2007) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 287.95 312.83 Td (1,179) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 334.65 312.83 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 368.60 312.83 Td (100) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 408.95 312.83 Td (957) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 440.95 312.83 Td (2,104) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 478.30 312.83 Td (32) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 516.00 312.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.95 312.83 Td (180) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 595.65 312.83 Td (7) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 636.00 312.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 656.95 312.88 Td (18.4) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 686.95 312.88 Td (14.1) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 720.30 312.83 Td (1.9) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 302.83 Td (Legacy funds ) Tj ET Q BT /F3 6.00 Tf ET BT /F3 3.90 Tf ET q 0 0 0 rg BT 89.36 305.69 Td (\(8\)) Tj ET Q BT /F3 6.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 1 1 rg BT 94.12 302.83 Td (.) Tj ET Q BT /F3 6.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 98.65 302.83 Td (..................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 193.55 302.83 Td (Various) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 234.55 302.83 Td (Various) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 287.95 302.83 Td (9,543) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 334.65 302.83 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 368.60 302.83 Td (100) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 403.95 302.83 Td (8,205) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 437.60 302.83 Td (17,695) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 478.30 302.83 Td (53) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 516.00 302.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 543.95 302.83 Td (1,113) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 592.30 302.83 Td (11) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 636.00 302.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 656.95 302.88 Td (24.2) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 686.95 302.88 Td (19.3) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 720.30 302.83 Td (1.9) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 292.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 203.50 292.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 244.50 292.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 455.00 292.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 484.00 292.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 656.95 292.88 Td (22.0) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 668.65 292.83 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 686.95 292.88 Td (16.2) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 698.65 292.83 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 724.50 292.83 Td ( ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 52.00 282.83 Td (Real Estate Opportunities) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 188.00 282.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 229.00 282.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 428.00 282.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 465.00 282.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 681.00 282.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 711.00 282.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 272.83 Td (Oaktree Real Estate Opportunities Fund VII ) Tj ET Q BT /F3 6.00 Tf ET BT /F3 3.90 Tf ET q 0 0 0 rg BT 169.39 275.69 Td (\(7\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 174.16 272.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET BT /F3 3.90 Tf ET q 0 0 0 rg BT 175.82 275.69 Td (\(9\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 180.59 272.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 190.30 272.83 Td (Jan. 2016) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 231.30 272.83 Td (Jan. 2020) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 270.00 272.83 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 287.95 272.83 Td (2,920) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 333.95 272.83 Td (41) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 340.65 272.83 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 371.95 272.83 Td (10) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 378.65 272.83 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 391.00 272.83 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 412.30 272.83 Td (27) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 428.00 272.83 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 449.30 272.83 Td (12) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 465.00 272.83 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 474.95 272.83 Td (307) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 494.00 272.83 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 506.95 272.83 Td (2,450) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 531.00 272.83 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 553.00 272.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 568.00 272.83 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 593.00 272.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 608.00 272.83 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 631.95 272.83 Td (294) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 656.80 272.83 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 686.80 272.83 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 718.80 272.83 Td (1.3x) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 262.83 Td (Oaktree Real Estate Opportunities Fund VI) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 166.95 262.83 Td (.........) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 189.80 262.83 Td (Aug. 2012) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 230.80 262.83 Td (Aug. 2016) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 287.95 262.83 Td (2,677) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 334.65 262.83 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 368.60 262.83 Td (100) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 403.95 262.83 Td (1,083) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 440.95 262.83 Td (1,111) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 469.95 262.83 Td (2,649) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 506.95 262.83 Td (2,037) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 552.30 262.83 Td (10) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 588.95 262.83 Td (199) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 626.95 262.83 Td (2,182) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 656.95 262.88 Td (16.9) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 668.65 262.83 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 686.95 262.88 Td (11.3) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 698.65 262.83 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 720.30 262.83 Td (1.5) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 252.83 Td (Oaktree Real Estate Opportunities Fund V) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 165.30 252.83 Td (..........) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 190.35 252.83 Td (Mar. 2011) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 231.15 252.83 Td (Mar. 2015) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 287.95 252.83 Td (1,283) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 334.65 252.83 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 368.60 252.83 Td (100) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 408.95 252.83 Td (930) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 440.95 252.83 Td (1,597) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 474.95 252.83 Td (616) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 511.95 252.83 Td (355) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 552.30 252.83 Td (56) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 588.95 252.83 Td (121) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 631.95 252.83 Td (162) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 656.95 252.88 Td (17.6) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 686.95 252.88 Td (12.9) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 720.30 252.83 Td (1.8) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 242.83 Td (Special Account D) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 103.65 242.83 Td (...............................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 190.00 242.83 Td (Nov. 2009) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 231.00 242.83 Td (Nov. 2012) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 292.95 242.83 Td (256) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 334.65 242.83 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 368.60 242.83 Td (100) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 408.95 242.83 Td (185) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 445.95 242.83 Td (311) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 474.95 242.83 Td (138) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 515.30 242.83 Td (73) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 555.65 242.83 Td (3) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 592.30 242.83 Td (15) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 635.30 242.83 Td (77) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 656.95 242.88 Td (14.7) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 686.95 242.88 Td (12.7) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 720.30 242.83 Td (1.7) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 232.83 Td (Oaktree Real Estate Opportunities Fund IV) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 166.95 232.83 Td (.........) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 189.80 232.83 Td (Dec. 2007) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 231.00 232.83 Td (Dec. 2011) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 292.95 232.83 Td (450) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 334.65 232.83 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 368.60 232.83 Td (100) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 408.95 232.83 Td (395) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 445.95 232.83 Td (714) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 474.95 232.83 Td (131) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 515.30 232.83 Td (91) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 552.30 232.83 Td (49) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 592.30 232.83 Td (25) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 636.00 232.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 656.95 232.88 Td (16.1) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 686.95 232.88 Td (11.0) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 720.30 232.83 Td (2.0) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 222.83 Td (OCM Real Estate Opportunities Fund III) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 158.65 222.83 Td (..............) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 189.80 222.83 Td (Sep. 2002) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 230.80 222.83 Td (Sep. 2005) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 292.95 222.83 Td (707) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 334.65 222.83 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 368.60 222.83 Td (100) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 408.95 222.83 Td (618) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 440.95 222.83 Td (1,307) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 478.30 222.83 Td (18) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 516.00 222.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.95 222.83 Td (119) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 595.65 222.83 Td (4) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 636.00 222.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 656.95 222.88 Td (15.3) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 686.95 222.88 Td (11.3) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 720.30 222.83 Td (2.0) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 212.83 Td (Legacy funds ) Tj ET Q BT /F3 6.00 Tf ET BT /F3 3.90 Tf ET q 0 0 0 rg BT 89.36 215.69 Td (\(8\)) Tj ET Q BT /F3 6.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 1 1 rg BT 94.12 212.83 Td (.) Tj ET Q BT /F3 6.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 98.65 212.83 Td (..................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 193.55 212.83 Td (Various) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 234.55 212.83 Td (Various) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 287.95 212.83 Td (1,634) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 334.65 212.83 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 371.95 212.83 Td (99) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 403.95 212.83 Td (1,399) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 440.95 212.83 Td (3,009) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 479.00 212.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 516.00 212.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.95 212.83 Td (112) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 593.00 212.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 636.00 212.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 656.95 212.88 Td (15.2) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 686.95 212.88 Td (12.0) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 720.30 212.83 Td (1.9) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 656.95 202.88 Td (15.5) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 668.65 202.83 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 686.95 202.88 Td (11.9) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 698.65 202.83 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 724.50 202.83 Td ( ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 52.00 192.83 Td (Real Estate Debt) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 203.50 192.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 244.50 192.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 302.00 192.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 418.00 192.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 455.00 192.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 461.00 192.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 521.00 192.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 701.00 192.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 724.50 192.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 182.83 Td (Oaktree Real Estate Debt Fund II ) Tj ET Q BT /F3 6.00 Tf ET BT /F3 3.90 Tf ET q 0 0 0 rg BT 142.38 185.69 Td (\(10\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 149.31 182.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 150.30 182.83 Td (...................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 197.50 182.83 Td (TBD) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 241.50 182.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 270.00 182.83 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 292.95 182.83 Td (505) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 334.60 182.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 340.65 182.83 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 372.60 182.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 378.65 182.83 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 391.00 182.83 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 413.00 182.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 428.00 182.83 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 450.00 182.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 465.00 182.83 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 479.00 182.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 494.00 182.83 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 516.00 182.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 531.00 182.83 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 553.00 182.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 568.00 182.83 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 593.00 182.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 608.00 182.83 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 636.00 182.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 662.65 182.83 Td (n/a) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 692.65 182.83 Td (n/a) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 720.30 182.83 Td (n/a) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 172.83 Td (Oaktree Real Estate Debt Fund) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 136.95 172.83 Td (...........................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 189.80 172.83 Td (Sep. 2013) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 231.45 172.83 Td (Oct. 2016) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 287.95 172.83 Td (1,112) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 334.65 172.83 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 371.95 172.83 Td (58) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 412.30 172.83 Td (94) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 445.95 172.83 Td (417) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 474.95 172.83 Td (318) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 511.95 172.83 Td (623) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 553.00 172.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 592.30 172.83 Td (14) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 631.95 172.83 Td (246) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 656.95 172.88 Td (25.9) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 668.65 172.83 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 686.95 172.88 Td (19.0) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 698.65 172.83 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 717.95 172.83 Td ( 1.3x) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 162.83 Td (Oaktree PPIP) Tj ET Q q 0 0 0 rg BT 88.57 162.83 Td ( Fund ) Tj ET Q BT /F3 6.00 Tf ET BT /F3 3.90 Tf ET q 0 0 0 rg BT 105.58 165.69 Td (\(1) Tj ET Q BT /F3 3.90 Tf ET q 0 0 0 rg BT 108.76 165.69 Td (1\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 112.23 162.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 1 1 rg BT 113.90 162.83 Td (.) Tj ET Q BT /F3 6.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 116.95 162.83 Td (.......................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 189.80 162.83 Td (Dec. 2009) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 230.80 162.83 Td (Dec. 2012) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 287.95 162.83 Td (2,322) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 334.65 162.83 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 371.95 162.83 Td (48) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 408.95 162.83 Td (457) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 440.95 162.83 Td (1,570) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 479.00 162.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 516.00 162.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 552.30 162.83 Td (47) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 593.00 162.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 636.00 162.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 656.95 162.88 Td (28.2) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 692.65 162.83 Td (n/a) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 720.30 162.83 Td (1.4) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 52.00 142.83 Td (Real Estate Value-Add) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 203.50 142.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 244.50 142.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 302.00 142.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 418.00 142.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 455.00 142.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 461.00 142.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 521.00 142.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 701.00 142.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 724.50 142.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 132.83 Td (Special ) Tj ET Q q 0 0 0 rg BT 73.01 132.83 Td (Account G ) Tj ET Q BT /F3 6.00 Tf ET BT /F3 3.90 Tf ET q 0 0 0 rg BT 102.70 135.69 Td (\(7\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 107.46 132.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET BT /F3 3.90 Tf ET q 0 0 0 rg BT 109.13 135.69 Td (\(10\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 116.06 132.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 118.65 132.83 Td (......................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 190.45 132.83 Td (Oct. 2016) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 231.45 132.83 Td (Oct. 2020) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 270.00 132.83 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 292.95 132.83 Td (615) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 333.95 132.83 Td (31) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 340.65 132.83 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 371.95 132.83 Td (31) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 378.65 132.83 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 391.00 132.83 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 413.00 132.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 428.00 132.83 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 450.00 132.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 465.00 132.83 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 474.95 132.83 Td (193) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 494.00 132.83 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 511.95 132.83 Td (188) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 531.00 132.83 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 553.00 132.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 568.00 132.83 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 593.00 132.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 608.00 132.83 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 631.95 132.83 Td (195) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 656.80 132.83 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 686.80 132.83 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 717.95 132.83 Td ( 1.0x) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 52.00 112.83 Td (European Principal ) Tj ET Q BT /F2 6.00 Tf ET BT /F2 3.90 Tf ET q 0 0 0 rg BT 108.35 115.69 Td (\(12\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 203.50 112.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 244.50 112.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 455.00 112.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 484.00 112.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 701.00 112.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 724.50 112.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 102.83 Td (Oaktree European Principal Fund IV ) Tj ET Q BT /F3 6.00 Tf ET BT /F3 3.90 Tf ET q 0 0 0 rg BT 150.05 105.69 Td (\(13\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 156.99 102.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 158.65 102.83 Td (..............) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 197.50 102.83 Td (TBD) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 241.50 102.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 270.00 102.83 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 292.95 102.83 Td (936) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 337.30 102.83 Td (5) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 340.65 102.83 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 372.60 102.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 378.65 102.83 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 391.00 102.83 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 413.65 102.83 Td (\(6) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 419.00 102.83 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 428.00 102.83 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 450.00 102.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 465.00 102.83 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 479.65 102.83 Td (\(6) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 485.00 102.83 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 494.00 102.83 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 515.30 102.83 Td (48) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 531.00 102.83 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 553.00 102.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 568.00 102.83 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 593.00 102.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 608.00 102.83 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 636.00 102.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 656.80 102.83 Td (n/a) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 686.80 102.83 Td (n/a) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 720.30 102.83 Td (n/a) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 92.83 Td (Oaktree European Principal Fund III) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 148.65 92.83 Td (....................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 190.25 92.83 Td (Nov. 2011) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 231.00 92.83 Td (Nov. 2016) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 270.00 92.83 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 287.95 92.83 Td (3,164) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 334.65 92.83 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 371.95 92.83 Td (85) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 391.00 92.83 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 403.95 92.83 Td (1,699) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 428.00 92.83 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 445.95 92.83 Td (548) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 465.00 92.83 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 469.95 92.83 Td (3,900) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 494.00 92.83 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 506.95 92.83 Td (2,682) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 531.00 92.83 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 553.00 92.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 568.00 92.83 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 588.95 92.83 Td (330) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 608.00 92.83 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 626.95 92.83 Td (2,941) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 656.95 92.88 Td (20.4) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 668.65 92.83 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 686.95 92.88 Td (13.6) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 698.65 92.83 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 718.80 92.83 Td (1.7x) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 82.83 Td (OCM European Principal Opportunities Fund II) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 176.95 82.83 Td (...) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 189.80 82.83 Td (Dec. 2007) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 230.80 82.83 Td (Dec. 2012) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 270.00 82.83 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 287.95 82.83 Td (1,759) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 334.65 82.83 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 368.60 82.83 Td (100) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 391.00 82.83 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 408.95 82.83 Td (469) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 428.00 82.83 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 440.95 82.83 Td (1,867) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 465.00 82.83 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 474.95 82.83 Td (332) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 494.00 82.83 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 511.95 82.83 Td (770) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 531.00 82.83 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 552.30 82.83 Td (29) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 568.00 82.83 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 593.00 82.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 608.00 82.83 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 631.95 82.83 Td (664) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 660.30 82.83 Td (9.1) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 690.30 82.83 Td (5.1) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 720.30 82.83 Td (1.4) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 72.83 Td (OCM European Principal Opportunities Fund) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 171.95 72.83 Td (......) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 190.15 72.83 Td (Mar. 2006) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 231.15 72.83 Td (Mar. 2009) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 270.00 72.83 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 292.95 72.83 Td (495) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 334.65 72.83 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 371.95 72.83 Td (96) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 391.00 72.83 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 408.95 72.83 Td (454) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 428.00 72.83 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 445.95 72.83 Td (927) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 465.00 72.83 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 479.00 72.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 494.00 72.83 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 516.00 72.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 531.00 72.83 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 552.30 72.83 Td (87) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 568.00 72.83 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 593.00 72.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 608.00 72.83 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 636.00 72.83 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 656.95 72.88 Td (11.7) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 690.30 72.83 Td (8.9) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 720.30 72.83 Td (2.1) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 62.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 203.50 62.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 244.50 62.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 455.00 62.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 484.00 62.83 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 656.95 62.88 Td (13.7) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 668.65 62.83 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 690.30 62.83 Td (9.1) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 698.65 62.83 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 724.50 62.83 Td ( ) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 47 0 obj <> endobj 48 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 390.40 31.25 Td (23) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 264.5 557.5 m 302.5 557.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 302.5 557.5 m 306.5 557.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306.5 557.5 m 343.5 557.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 557.5 m 347.5 557.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347.5 557.5 m 378.5 557.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378.5 557.5 m 382.5 557.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382.5 557.5 m 415.5 557.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415.5 557.5 m 419.5 557.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419.5 557.5 m 452.5 557.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 557.5 m 456.5 557.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 557.5 m 481.5 557.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481.5 557.5 m 485.5 557.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485.5 557.5 m 516.5 557.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 516.5 557.5 m 520.5 557.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 520.5 557.5 m 553.5 557.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 553.5 557.5 m 557.5 557.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 557.5 557.5 m 593.5 557.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 593.5 557.5 m 597.5 557.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 597.5 557.5 m 636.5 557.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 636.5 557.5 m 640.5 557.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 640.5 557.5 m 667.5 557.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 667.5 557.5 m 671.5 557.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 671.5 557.5 m 698.5 557.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 698.5 557.5 m 708.5 557.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 708.5 557.5 m 741.5 557.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 186.5 521.5 m 221.5 521.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 221.5 521.5 m 225.5 521.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 225.5 521.5 m 260.5 521.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306.5 557.5 m 343.5 557.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 640.5 521.5 m 667.5 521.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 667.5 521.5 m 671.5 521.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 671.5 521.5 m 698.5 521.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 186.5 509.5 m 221.5 509.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 225.5 509.5 m 260.5 509.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 264.5 509.5 m 302.5 509.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306.5 509.5 m 343.5 509.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347.5 509.5 m 378.5 509.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382.5 509.5 m 415.5 509.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419.5 509.5 m 452.5 509.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 509.5 m 481.5 509.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485.5 509.5 m 516.5 509.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 520.5 509.5 m 553.5 509.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 557.5 509.5 m 593.5 509.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 597.5 509.5 m 636.5 509.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 640.5 509.5 m 667.5 509.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 671.5 509.5 m 698.5 509.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 708.5 509.5 m 741.5 509.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 640.5 460.5 m 667.5 460.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 671.5 460.5 m 698.5 460.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 640.5 430.5 m 667.5 430.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 671.5 430.5 m 698.5 430.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 640.5 370.5 m 667.5 370.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 671.5 370.5 m 698.5 370.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 640.5 310.5 m 667.5 310.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 671.5 310.5 m 698.5 310.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 640.5 210.5 m 667.5 210.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 671.5 210.5 m 698.5 210.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485.5 170.5 m 516.5 170.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 557.5 170.5 m 593.5 170.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 640.5 170.5 m 667.5 170.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 671.5 170.5 m 698.5 170.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485.5 150.5 m 516.5 150.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485.5 141.5 m 516.5 141.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485.5 139.5 m 516.5 139.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 557.5 150.5 m 593.5 150.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 557.5 141.5 m 593.5 141.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 557.5 139.5 m 593.5 139.5 l s BT /F2 6.00 Tf ET q 0 0 0 rg BT 467.10 561.28 Td (As of December 31, 2016) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 117.50 525.28 Td ( ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 196.95 525.28 Td (Investment Period) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 276.05 525.28 Td (Total) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 267.30 519.28 Td (Committed) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 272.95 513.28 Td (Capital) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 321.80 519.28 Td (% ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 309.10 513.28 Td (Invested ) Tj ET Q BT /F2 6.00 Tf ET BT /F2 3.90 Tf ET q 0 0 0 rg BT 335.11 516.14 Td (\(1\)) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 359.80 519.28 Td (%) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 350.10 513.28 Td (Drawn ) Tj ET Q BT /F2 6.00 Tf ET BT /F2 3.90 Tf ET q 0 0 0 rg BT 370.10 516.14 Td (\(2\)) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 385.50 531.28 Td (Fund Net) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 387.95 525.28 Td (Income) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 390.45 519.28 Td (Since) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 385.15 513.28 Td (Inception) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 426.80 531.28 Td (Distri-) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 424.65 525.28 Td (butions ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 427.45 519.28 Td (Since ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 422.15 513.28 Td (Inception) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 463.65 525.28 Td (Net) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 460.30 519.28 Td (Asset) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 460.65 513.28 Td (Value) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 488.30 543.28 Td (Manage-) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 493.30 537.28 Td (ment ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 494.30 531.28 Td (Fee-) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 491.30 525.28 Td (gener-) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 493.30 519.28 Td (ating ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 493.65 513.28 Td (AUM) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 525.30 543.28 Td (Oaktree ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 523.80 537.28 Td (Segment ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 523.45 531.28 Td (Incentive ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 525.95 525.28 Td (Income ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 526.30 519.28 Td (Recog-) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 528.80 513.28 Td (nized) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 562.95 531.28 Td (Accrued ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 560.30 525.28 Td (Incentives ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 566.65 519.28 Td (\(Fund ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 563.10 513.28 Td (Level\) ) Tj ET Q BT /F2 6.00 Tf ET BT /F2 3.90 Tf ET q 0 0 0 rg BT 582.11 516.14 Td (\(3\)) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 600.30 549.28 Td (Unreturned ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 607.30 543.28 Td (Drawn ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 606.45 537.28 Td (Capital ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 610.15 531.28 Td (Plus ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 604.45 525.28 Td (Accrued ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 603.15 519.28 Td (Preferred ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 603.60 513.28 Td (Return ) Tj ET Q BT /F2 6.00 Tf ET BT /F2 3.90 Tf ET q 0 0 0 rg BT 624.60 516.14 Td (\(4\)) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 654.95 531.28 Td (IRR Since ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 652.45 525.28 Td (Inception ) Tj ET Q BT /F2 6.00 Tf ET BT /F2 3.90 Tf ET q 0 0 0 rg BT 680.78 528.14 Td (\(5\)) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 713.15 525.28 Td (Multiple ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 711.65 519.28 Td (of Drawn ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 711.25 513.28 Td (Capital ) Tj ET Q BT /F2 6.00 Tf ET BT /F2 3.90 Tf ET q 0 0 0 rg BT 732.92 516.14 Td (\(6\)) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 189.30 513.28 Td (Start Date) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 229.45 513.28 Td (End Date) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 644.80 513.28 Td (Gross) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 679.65 513.28 Td (Net) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 502.63 Td ( ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 446.65 502.63 Td (\(in millions\)) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 52.00 493.63 Td (European Private Debt ) Tj ET Q BT /F2 6.00 Tf ET BT /F2 3.90 Tf ET q 0 0 0 rg BT 118.02 496.49 Td (\(12\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 483.63 Td (Oaktree European Capital Solutions Fund ) Tj ET Q BT /F3 6.00 Tf ET BT /F3 3.90 Tf ET q 0 0 0 rg BT 164.73 486.49 Td (\(7\) \(10\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 177.95 483.63 Td (...) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 189.80 483.63 Td (Dec. 2015) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 228.80 483.63 Td (Dec. 2018) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 267.00 483.63 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 288.60 483.68 Td (430) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 330.95 483.63 Td (54) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 337.65 483.63 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 365.95 483.63 Td (43) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 372.65 483.63 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 385.00 483.63 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 408.30 483.63 Td (3) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 422.00 483.63 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 442.60 483.63 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 459.00 483.63 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 467.60 483.63 Td (188) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 488.00 483.63 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 502.60 483.63 Td (194) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 523.00 483.63 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 543.60 483.63 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 560.00 483.63 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 583.60 483.63 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 600.00 483.63 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 622.60 483.63 Td (189) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 649.30 483.63 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 680.30 483.63 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 718.80 483.63 Td (1.0x) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 473.63 Td (Oaktree European Dislocation Fund) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 149.65 473.63 Td (....................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 190.45 473.63 Td (Oct. 2013) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 229.45 473.63 Td (Oct. 2016) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 267.00 473.63 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 288.60 473.68 Td (294) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 331.65 473.63 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 365.95 473.63 Td (57) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 385.00 473.63 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 404.95 473.63 Td (34) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 422.00 473.63 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 438.60 473.63 Td (140) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 459.00 473.63 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 470.95 473.63 Td (76) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 488.00 473.63 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 505.95 473.63 Td (97) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 523.00 473.63 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 543.60 473.63 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 560.00 473.63 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 586.30 473.63 Td (5) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 600.00 473.63 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 625.95 473.68 Td (56) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 649.95 473.68 Td (22.3) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 661.65 473.63 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 680.95 473.68 Td (15.9) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 692.65 473.63 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 720.30 473.63 Td (1.2) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 463.63 Td (Special Account E) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 102.95 463.63 Td (................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 190.45 463.63 Td (Oct. 2013) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 229.65 463.63 Td (Apr. 2015) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 267.00 463.63 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 288.60 463.68 Td (379) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 331.65 463.63 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 365.95 463.63 Td (69) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 385.00 463.63 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 404.95 463.63 Td (55) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 422.00 463.63 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 438.60 463.63 Td (232) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 459.00 463.63 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 470.95 463.63 Td (84) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 488.00 463.63 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 502.60 463.63 Td (107) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 523.00 463.63 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 543.60 463.63 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 560.00 463.63 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 586.30 463.63 Td (8) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 600.00 463.63 Td (€) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 625.95 463.68 Td (62) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 649.95 463.68 Td (14.3) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 680.95 463.68 Td (11.0) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 720.30 463.63 Td (1.2) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 649.95 453.68 Td (16.0) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 661.65 453.63 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 680.95 453.68 Td (11.6) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 692.65 453.63 Td (%) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 52.00 443.63 Td (Special Situations ) Tj ET Q BT /F2 6.00 Tf ET BT /F2 3.90 Tf ET q 0 0 0 rg BT 105.35 446.49 Td (\(14\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 203.50 443.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 242.50 443.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 422.00 443.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 459.00 443.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 674.00 443.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 724.50 443.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 433.63 Td (Oaktree Special Situations Fund) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 139.65 433.63 Td (..........................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 190.00 433.63 Td (Nov. 2015) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 229.00 433.63 Td (Nov. 2018) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 267.00 433.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 283.60 433.68 Td (1,223) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 330.95 433.63 Td (51) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 337.65 433.63 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 365.95 433.63 Td (17) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 372.65 433.63 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 385.00 433.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 404.95 433.63 Td (66) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 422.00 433.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 441.95 433.63 Td (67) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 459.00 433.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 467.60 433.63 Td (207) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 488.00 433.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 497.60 433.63 Td (1,167) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 523.00 433.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 543.60 433.63 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 560.00 433.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 582.95 433.68 Td (13) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 600.00 433.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 622.60 433.63 Td (157) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 649.95 433.68 Td (51.0) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 661.65 433.63 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 680.95 433.68 Td (24.4) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 692.65 433.63 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 718.80 433.63 Td (1.5x) Tj ET Q BT /F5 6.00 Tf ET q 0 0 0 rg BT 52.00 423.63 Td (Other funds:) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 413.63 Td (Oaktree Principal Fund V) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 121.30 413.63 Td (.....................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 189.95 413.63 Td (Feb. 2009) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 228.95 413.63 Td (Feb. 2015) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 267.00 413.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 283.60 413.68 Td (2,827) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 331.65 413.63 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 365.95 413.63 Td (91) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 372.65 413.63 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 385.00 413.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 401.60 413.63 Td (545) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 422.00 413.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 433.60 413.63 Td (1,563) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 459.00 413.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 462.60 413.63 Td (1,568) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 488.00 413.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 497.60 413.63 Td (1,712) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 523.00 413.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 542.95 413.63 Td (50) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 560.00 413.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 583.60 413.63 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 600.00 413.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 617.60 413.63 Td (2,052) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 653.30 413.63 Td (8.8) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 661.65 413.63 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 684.30 413.63 Td (4.4) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 692.65 413.63 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 718.80 413.63 Td (1.4x) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 403.63 Td (Special Account C) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 102.95 403.63 Td (................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 189.80 403.63 Td (Dec. 2008) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 228.95 403.63 Td (Feb. 2014) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 288.60 403.68 Td (505) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 331.65 403.63 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 365.95 403.63 Td (91) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 401.60 403.63 Td (223) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 438.60 403.63 Td (398) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 467.60 403.63 Td (285) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 502.60 403.63 Td (288) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 542.95 403.63 Td (21) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 582.95 403.68 Td (13) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 622.60 403.63 Td (263) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 649.95 403.68 Td (11.9) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 684.30 403.63 Td (8.3) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 720.30 403.63 Td (1.6) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 393.63 Td (OCM Principal Opportunities Fund IV) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 152.95 393.63 Td (..................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 190.45 393.63 Td (Oct. 2006) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 229.70 393.63 Td (Oct. 201) Tj ET Q q 0 0 0 rg BT 251.93 393.63 Td (1) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 283.60 393.68 Td (3,328) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 331.65 393.63 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 362.60 393.63 Td (100) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 396.60 393.63 Td (2,886) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 433.60 393.63 Td (4,122) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 462.60 393.63 Td (2,092) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 502.60 393.63 Td (539) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 542.95 393.63 Td (22) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 579.60 393.63 Td (541) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 617.60 393.63 Td (1,183) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 649.95 393.68 Td (12.5) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 684.30 393.63 Td (9.0) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 720.30 393.63 Td (2.0) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 383.63 Td (OCM Principal Opportunities Fund III) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 151.30 383.63 Td (...................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 190.00 383.63 Td (Nov) Tj ET Q q 0 0 0 rg BT 200.22 383.63 Td (. 2003) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 229.00 383.63 Td (Nov) Tj ET Q q 0 0 0 rg BT 239.22 383.63 Td (. 2008) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 283.60 383.68 Td (1,400) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 331.65 383.63 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 362.60 383.63 Td (100) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 401.60 383.63 Td (881) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 433.60 383.63 Td (2,205) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 470.95 383.63 Td (76) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 506.60 383.63 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 539.60 383.63 Td (167) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 586.30 383.63 Td (3) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 626.65 383.63 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 649.95 383.68 Td (13.8) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 684.30 383.63 Td (9.5) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 720.30 383.63 Td (1.8) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 373.63 Td (Legacy funds ) Tj ET Q BT /F3 6.00 Tf ET BT /F3 3.90 Tf ET q 0 0 0 rg BT 89.36 376.49 Td (\(8\)) Tj ET Q BT /F3 6.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 1 1 rg BT 94.12 373.63 Td (.) Tj ET Q BT /F3 6.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 97.95 373.63 Td (...................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 193.55 373.63 Td (V) Tj ET Q q 0 0 0 rg BT 197.11 373.63 Td (arious) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 232.55 373.63 Td (V) Tj ET Q q 0 0 0 rg BT 236.11 373.63 Td (arious) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 283.60 373.68 Td (2,301) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 331.65 373.63 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 362.60 373.63 Td (100) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 396.60 373.63 Td (1,840) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 433.60 373.63 Td (4,138) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 474.30 373.63 Td (3) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 506.60 373.63 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 539.60 373.63 Td (236) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 586.30 373.63 Td (1) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 626.65 373.63 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 649.95 373.68 Td (14.5) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 680.95 373.68 Td (11.6) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 720.30 373.63 Td (1.8) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 363.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 203.50 363.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 242.50 363.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 449.00 363.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 478.00 363.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 649.95 363.68 Td (13.3) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 661.65 363.63 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 684.30 363.63 Td (9.5) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 692.65 363.63 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 724.50 363.63 Td ( ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 52.00 353.63 Td (Power Opportunities) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 203.50 353.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 242.50 353.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 449.00 353.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 478.00 353.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 695.00 353.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 724.50 353.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 343.63 Td (Oaktree Power Opportunities Fund IV ) Tj ET Q BT /F3 6.00 Tf ET BT /F3 3.90 Tf ET q 0 0 0 rg BT 153.72 346.49 Td (\(7\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 158.48 343.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 159.65 343.63 Td (..............) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 190.00 343.63 Td (Nov. 2015) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 229.00 343.63 Td (Nov. 2020) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 267.00 343.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 283.60 343.68 Td (1,106) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 330.95 343.63 Td (43) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 337.65 343.63 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 365.95 343.63 Td (43) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 372.65 343.63 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 385.00 343.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 408.30 343.63 Td (7) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 422.00 343.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 445.30 343.63 Td (1) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 459.00 343.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 467.60 343.63 Td (483) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 488.00 343.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 497.60 343.63 Td (1,078) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 523.00 343.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 543.60 343.63 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 560.00 343.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 583.60 343.63 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 600.00 343.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 622.60 343.63 Td (490) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 649.30 343.63 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 680.30 343.63 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 718.80 343.63 Td (1.1x) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 333.63 Td (Oaktree Power Opportunities Fund III) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 152.95 333.63 Td (..................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 190.65 333.63 Td (Apr. 2010) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 229.65 333.63 Td (Apr. 2015) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 283.60 333.68 Td (1,062) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 331.65 333.63 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 365.95 333.63 Td (66) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 401.60 333.63 Td (408) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 438.60 333.63 Td (575) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 467.60 333.63 Td (531) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 502.60 333.63 Td (412) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 542.95 333.63 Td (14) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 582.95 333.68 Td (64) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 622.60 333.63 Td (304) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 649.95 333.68 Td (22.9) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 661.65 333.63 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 680.95 333.68 Td (14.2) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 692.65 333.63 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 720.30 333.63 Td (1.7) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 323.63 Td (OCM/GFI Power Opportunities Fund II) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 154.65 323.63 Td (.................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 190.00 323.63 Td (Nov. 2004) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 229.00 323.63 Td (Nov. 2009) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 283.60 323.68 Td (1,021) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 331.65 323.63 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 365.95 323.63 Td (53) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 396.60 323.63 Td (1,446) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 433.60 323.63 Td (1,982) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 474.30 323.63 Td (5) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 506.60 323.63 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 539.60 323.63 Td (100) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 583.60 323.63 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 626.65 323.63 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 649.95 323.68 Td (76.1) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 680.95 323.68 Td (58.8) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 720.30 323.63 Td (3.8) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 313.63 Td (OCM/GFI Power Opportunities Fund) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 151.30 313.63 Td (...................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 190.00 313.63 Td (Nov. 1999) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 229.00 313.63 Td (Nov. 2004) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 288.60 313.68 Td (449) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 331.65 313.63 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 365.95 313.63 Td (85) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 401.60 313.63 Td (251) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 438.60 313.63 Td (634) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 471.60 313.63 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 506.60 313.63 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 542.95 313.63 Td (23) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 583.60 313.63 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 626.65 313.63 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 649.95 313.68 Td (20.1) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 680.95 313.68 Td (13.1) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 720.30 313.63 Td (1.8) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 303.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 218.00 303.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 257.00 303.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 449.00 303.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 478.00 303.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 649.95 303.68 Td (34.7) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 661.65 303.63 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 680.95 303.68 Td (26.5) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 692.65 303.63 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 724.50 303.63 Td ( ) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 52.00 293.63 Td (Infrastructure Investing) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 189.00 293.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 228.00 293.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 422.00 293.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 459.00 293.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 674.00 293.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 711.00 293.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 283.63 Td (Oaktree Infrastructure Fund ) Tj ET Q BT /F3 6.00 Tf ET BT /F3 3.90 Tf ET q 0 0 0 rg BT 127.37 286.49 Td (\(15\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 134.30 283.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 136.30 283.63 Td (............................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 197.50 283.63 Td (TBD) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 239.50 283.63 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 267.00 283.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 288.60 283.68 Td (409) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 331.60 283.63 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 337.65 283.63 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 366.60 283.63 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 372.65 283.63 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 385.00 283.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 405.60 283.63 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 422.00 283.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 442.60 283.63 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 459.00 283.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 471.60 283.63 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 488.00 283.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 506.60 283.63 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 523.00 283.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 543.60 283.63 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 560.00 283.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 583.60 283.63 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 600.00 283.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 626.65 283.63 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 655.65 283.63 Td (n/a) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 686.65 283.63 Td (n/a) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 720.30 283.63 Td (n/a) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 273.63 Td (Highstar Capital IV ) Tj ET Q BT /F3 6.00 Tf ET BT /F3 3.90 Tf ET q 0 0 0 rg BT 103.69 276.49 Td (\(16\)) Tj ET Q BT /F3 6.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 1 1 rg BT 110.62 273.63 Td (.) Tj ET Q BT /F3 6.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 114.65 273.63 Td (.........................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 190.00 273.63 Td (Nov) Tj ET Q q 0 0 0 rg BT 200.22 273.63 Td (. 2010) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 229.00 273.63 Td (Nov) Tj ET Q q 0 0 0 rg BT 239.22 273.63 Td (. 2016) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 283.60 273.68 Td (2,000) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 331.65 273.63 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 362.60 273.63 Td (100) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 401.60 273.63 Td (442) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 438.60 273.63 Td (441) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 462.60 273.63 Td (2,001) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 497.60 273.63 Td (1,317) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 543.60 273.63 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 586.30 273.63 Td (5) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 617.60 273.63 Td (2,002) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 649.95 273.68 Td (14.8) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 661.65 273.63 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 684.30 273.63 Td (8.8) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 692.65 273.63 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 718.80 273.63 Td (1.4x) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 52.00 253.63 Td (Mezzanine Finance) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 203.50 253.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 242.50 253.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 299.00 253.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 412.00 253.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 449.00 253.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 455.00 253.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 513.00 253.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 590.00 253.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 674.00 253.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 724.50 253.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 243.63 Td (Oaktree Mezzanine Fund IV) Tj ET Q BT /F3 6.00 Tf ET BT /F3 3.90 Tf ET q 0 0 0 rg BT 126.70 246.49 Td ( \(10\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 134.72 243.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 136.30 243.63 Td (............................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 190.45 243.63 Td (Oct. 2014) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 229.45 243.63 Td (Oct. 2019) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 267.00 243.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 288.60 243.68 Td (852) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 330.95 243.63 Td (41) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 337.65 243.63 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 365.95 243.63 Td (40) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 372.65 243.63 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 385.00 243.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 404.95 243.63 Td (35) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 422.00 243.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 441.95 243.63 Td (27) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 459.00 243.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 467.60 243.63 Td (347) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 488.00 243.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 502.60 243.63 Td (331) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 523.00 243.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 543.60 243.63 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 560.00 243.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 586.30 243.63 Td (5) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 600.00 243.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 622.60 243.63 Td (340) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 649.95 243.68 Td (12.3) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 661.65 243.63 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 684.30 243.63 Td (8.5) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 692.65 243.63 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 718.80 243.63 Td (1.1x) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 233.63 Td (Oaktree Mezzanine Fund III ) Tj ET Q BT /F3 6.00 Tf ET BT /F3 3.90 Tf ET q 0 0 0 rg BT 127.70 236.49 Td (\(17\)) Tj ET Q BT /F3 6.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 1 1 rg BT 134.64 233.63 Td (.) Tj ET Q BT /F3 6.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 137.95 233.63 Td (...........................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 189.80 233.63 Td (Dec. 2009) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 228.80 233.63 Td (Dec. 2014) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 283.60 233.68 Td (1,592) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 331.65 233.63 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 365.95 233.63 Td (89) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 401.60 233.63 Td (400) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 433.60 233.63 Td (1,437) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 467.60 233.63 Td (386) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 502.60 233.63 Td (378) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 542.95 233.63 Td (10) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 582.95 233.68 Td (26) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 622.60 233.63 Td (348) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 649.95 233.68 Td (15.2) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 674.95 233.63 Td (10.4 / 8.6) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 720.30 233.63 Td (1.4) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 223.63 Td (OCM Mezzanine Fund II) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 119.65 223.63 Td (......................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 190.30 223.63 Td (Jun. 2005) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 229.30 223.63 Td (Jun. 2010) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 283.60 223.68 Td (1,251) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 331.65 223.63 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 365.95 223.63 Td (88) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 401.60 223.63 Td (529) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 433.60 223.63 Td (1,504) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 467.60 223.63 Td (132) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 506.60 223.63 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 543.60 223.63 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 583.60 223.63 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 622.60 223.63 Td (154) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 649.95 223.68 Td (11.3) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 684.30 223.63 Td (7.8) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 720.30 223.63 Td (1.6) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 213.63 Td (OCM Mezzanine Fund ) Tj ET Q BT /F3 6.00 Tf ET BT /F3 3.90 Tf ET q 0 0 0 rg BT 113.69 216.49 Td (\(18\)) Tj ET Q BT /F3 6.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 1 1 rg BT 120.62 213.63 Td (.) Tj ET Q BT /F3 6.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 124.65 213.63 Td (...................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 190.45 213.63 Td (Oct. 2001) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 229.45 213.63 Td (Oct. 2006) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 288.60 213.68 Td (808) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 331.65 213.63 Td (nm) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 365.95 213.63 Td (96) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 401.60 213.63 Td (302) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 433.60 213.63 Td (1,075) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 471.60 213.63 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 506.60 213.63 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 542.95 213.63 Td (38) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 583.60 213.63 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 626.65 213.63 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 649.95 213.68 Td (15.4) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 675.30 213.63 Td (10.8 / 10.5) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 720.30 213.63 Td (1.5) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 649.95 203.68 Td (13.2) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 661.65 203.63 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 684.30 203.63 Td (8.9) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 692.65 203.63 Td (%) Tj ET Q BT /F2 6.00 Tf ET q 0 0 0 rg BT 52.00 193.63 Td (Emerging Markets Opportunities) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 183.63 Td (Oaktree Emerging Market Opportunities Fund ) Tj ET Q BT /F3 6.00 Tf ET BT /F3 3.90 Tf ET q 0 0 0 rg BT 175.06 186.49 Td (\(19\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 181.99 183.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 189.80 183.63 Td (Sep. 2013) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 228.80 183.63 Td (Sep. 2017) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 267.00 183.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 288.60 183.68 Td (384) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 330.95 183.63 Td (65) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 337.65 183.63 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 365.95 183.63 Td (65) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 372.65 183.63 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 385.00 183.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 404.95 183.63 Td (48) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 422.00 183.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 445.30 183.63 Td (1) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 459.00 183.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 467.60 183.63 Td (297) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 488.00 183.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 502.60 183.63 Td (246) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 523.00 183.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 543.60 183.63 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 560.00 183.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 586.30 183.63 Td (4) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 600.00 183.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 622.60 183.63 Td (291) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 649.95 183.68 Td (12.5) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 661.65 183.63 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 684.30 183.63 Td (8.2) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 692.65 183.63 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 718.80 183.63 Td (1.2x) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 173.63 Td (Special Account F) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 102.95 173.63 Td (................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 190.30 173.63 Td (Jan. 2014) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 229.30 173.63 Td (Jan. 2017) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 288.60 173.68 Td (253) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 330.95 173.63 Td (74) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 365.95 173.63 Td (74) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 404.95 173.63 Td (33) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 442.60 173.63 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 467.60 173.63 Td (220) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 502.60 173.63 Td (218) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 543.60 173.63 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 586.30 173.63 Td (4) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 622.60 173.63 Td (215) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 649.95 173.68 Td (11.6) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 684.30 173.63 Td (8.3) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 720.30 173.63 Td (1.2) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 52.00 163.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 218.00 163.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 257.00 163.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 449.00 163.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 455.00 163.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 494.25 163.63 Td (31,957) Tj ET Q BT /F3 3.90 Tf ET q 0 0 0 rg BT 519.00 167.58 Td (\(12\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 574.60 163.63 Td (1,988) Tj ET Q BT /F3 3.90 Tf ET q 0 0 0 rg BT 596.00 167.58 Td (\(12\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 649.95 163.68 Td (12.2) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 661.65 163.63 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 684.30 163.63 Td (8.9) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 692.65 163.63 Td (%) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 724.50 163.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 454.35 153.63 Td (Other ) Tj ET Q BT /F3 6.00 Tf ET BT /F3 3.90 Tf ET q 0 0 0 rg BT 471.02 156.49 Td (\(20\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 497.60 153.63 Td (8,399) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 582.95 153.68 Td (19) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 695.00 153.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 724.50 153.63 Td ( ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 456.70 143.63 Td (T) Tj ET Q q 0 0 0 rg BT 459.70 143.63 Td (otal ) Tj ET Q BT /F3 6.00 Tf ET BT /F3 3.90 Tf ET q 0 0 0 rg BT 471.04 146.49 Td (\(21\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 488.00 143.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 494.25 143.63 Td (40,356) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 560.00 143.63 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 574.60 143.63 Td (2,007) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 126.5 m 150.5 126.5 l s BT /F1 10.00 Tf ET BT /F3 6.00 Tf ET q 0 0 0 rg BT 50.00 116.80 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 72.50 116.80 Td (For our incentive-creating closed-end funds in their investment periods, this percentage equals invested capital divided by committed capital. Invested capital for this purpose is the sum of capital drawn from fund investors plus net borrowings, if any) Tj ET Q q 0 0 0 rg BT 729.39 116.80 Td (, ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 72.50 109.60 Td (outstanding, under a fund-level credit facility where such borrowings were made in lieu of drawing capital from fund investors.) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 50.00 102.40 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 72.50 102.40 Td (Represents capital drawn from fund investors divided by committed capital. ) Tj ET Q q 0 0 0 rg BT 274.82 102.40 Td (The aggregate change in drawn capital for the three months ended December 31, 2016 was $2.3 billion. ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 50.00 95.20 Td (\(3\) ) Tj ET Q q 0 0 0 rg BT 72.50 95.20 Td (Accrued incentives \(fund level\) exclude Oaktree segment incentive income previously recognized. ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 50.00 88.00 Td (\(4\) ) Tj ET Q q 0 0 0 rg BT 72.50 88.00 Td (Unreturned drawn capital plus accrued preferred return reflects the amount the fund needs to distribute to its investors as a return of capital and a preferred return \(as applicable\) before Oaktree is entitled to receive incentive income \(other than tax ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 72.50 80.80 Td (distributions\) from the fund. ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 50.00 73.60 Td (\(5\) ) Tj ET Q q 0 0 0 rg BT 72.50 73.60 Td (The internal rate of return \(“IRR”\) is the annualized implied discount rate calculated from a series of cash flows. It is the return that equates the present value of all capital invested in an investment to the present value of all returns of capital, or the ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 72.50 66.45 Td (discount rate that will provide a net present value of all cash flows equal to zero. Fund-level IRRs are calculated based upon the actual timing of cash contributions/distributions to investors and the residual value of such investor) Tj ET Q q 0 0 0 rg BT 675.39 66.45 Td (’) Tj ET Q q 0 0 0 rg BT 676.61 66.45 Td (s capital accounts at the ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 72.50 59.20 Td (end of the applicable period being measured. Gross IRRs reflect returns before allocation of management fees, expenses and any incentive allocation to the fund’) Tj ET Q q 0 0 0 rg BT 502.98 59.20 Td (s general partner) Tj ET Q q 0 0 0 rg BT 548.01 59.20 Td (. ) Tj ET Q q 0 0 0 rg BT 552.90 59.20 Td (T) Tj ET Q q 0 0 0 rg BT 555.90 59.20 Td (o the extent material, gross returns include certain transaction, ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 72.50 52.00 Td (advisory) Tj ET Q q 0 0 0 rg BT 94.40 52.00 Td (, directors or other ancillary fees \(“fee income”\) paid directly to us in connection with our funds’) Tj ET Q q 0 0 0 rg BT 344.29 52.00 Td ( activities \(we credit all such fee income back to the respective fund\(s\) so that our funds’) Tj ET Q q 0 0 0 rg BT 577.51 52.00 Td ( investors share pro rata in the fee income’) Tj ET Q q 0 0 0 rg BT 690.79 52.00 Td (s economic ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 72.50 44.85 Td (benefit\). Net IRRs reflect returns to non-af) Tj ET Q q 0 0 0 rg BT 185.44 44.85 Td (filiated investors after allocation of management fees, expenses and any incentive allocation to the fund’) Tj ET Q q 0 0 0 rg BT 461.17 44.85 Td (s general partner) Tj ET Q q 0 0 0 rg BT 506.20 44.85 Td (. ) Tj ET Q endstream endobj 49 0 obj <> endobj 50 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 390.40 31.25 Td (24) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 50.00 564.65 Td (\(6\) ) Tj ET Q q 0 0 0 rg BT 72.50 564.65 Td (Multiple of drawn capital is calculated as drawn capital plus gross income and, if applicable, fee income before fees and expenses divided by drawn capital. ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 50.00 557.45 Td (\(7\) ) Tj ET Q q 0 0 0 rg BT 72.50 557.45 Td (The IRR is not considered meaningful \(“nm”\) as the period from the initial capital contribution through December 31, 2016 was less than 18 months. ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 50.00 550.25 Td (\(8\) ) Tj ET Q q 0 0 0 rg BT 72.50 550.25 Td (Legacy funds represent certain predecessor funds within the relevant strategy that have substantially or completely liquidated their assets, including funds managed by certain Oaktree investment professionals while employed at the ) Tj ET Q q 0 0 0 rg BT 686.73 550.25 Td (T) Tj ET Q q 0 0 0 rg BT 690.17 550.25 Td (rust Company of ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 72.50 543.05 Td (the W) Tj ET Q q 0 0 0 rg BT 88.06 543.05 Td (est prior to Oaktree’) Tj ET Q q 0 0 0 rg BT 140.64 543.05 Td (s founding in 1995. When these employees joined Oaktree upon, or shortly after) Tj ET Q q 0 0 0 rg BT 354.44 543.05 Td (, its founding, they continued to manage the fund through the end of its term pursuant to a sub-advisory relationship between the ) Tj ET Q q 0 0 0 rg BT 696.55 543.05 Td (T) Tj ET Q q 0 0 0 rg BT 699.99 543.05 Td (rust Company ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 72.50 535.85 Td (of the W) Tj ET Q q 0 0 0 rg BT 94.73 535.85 Td (est and Oaktree. ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 50.00 528.65 Td (\(9\) ) Tj ET Q q 0 0 0 rg BT 72.50 528.65 Td (A) Tj ET Q q 0 0 0 rg BT 76.17 528.65 Td ( portion of this fund pays management fees based on drawn, rather than committed, capital.) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 50.00 521.45 Td (\(10\) ) Tj ET Q q 0 0 0 rg BT 72.50 521.45 Td (Management fees during the investment period are calculated on drawn capital or cost basis, rather than committed capital. ) Tj ET Q q 0 0 0 rg BT 403.01 521.45 Td (As a result, as of December 31, 2016 management fee-generating ) Tj ET Q q 0 0 0 rg BT 580.45 521.45 Td (AUM included only that portion of committed capital that had ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 72.50 514.25 Td (been drawn.) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 50.00 507.05 Td (\(1) Tj ET Q q 0 0 0 rg BT 54.89 507.05 Td (1\) ) Tj ET Q q 0 0 0 rg BT 72.50 507.05 Td (Due to dif) Tj ET Q q 0 0 0 rg BT 98.07 507.05 Td (ferences in the allocation of income and expenses to this fund’) Tj ET Q q 0 0 0 rg BT 263.40 507.05 Td (s two primary limited partners, the U.S. ) Tj ET Q q 0 0 0 rg BT 368.33 507.05 Td (T) Tj ET Q q 0 0 0 rg BT 371.77 507.05 Td (reasury and Oaktree PPIP) Tj ET Q q 0 0 0 rg BT 441.69 507.05 Td ( Private Fund, a combined net IRR is not presented. Of the $2,322 million in capital commitments, $1,161 million ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 72.50 499.85 Td (related to the Oaktree PPIP) Tj ET Q q 0 0 0 rg BT 145.77 499.85 Td ( Private Fund, whose gross and net IRR were 24.7% and 18.6%, respectively) Tj ET Q q 0 0 0 rg BT 350.43 499.85 Td (.) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 50.00 492.65 Td (\(12\) ) Tj ET Q q 0 0 0 rg BT 72.50 492.65 Td (Aggregate IRRs or totals are based on the conversion of cash flows or amounts, respectively) Tj ET Q q 0 0 0 rg BT 318.18 492.65 Td (, from euros to USD using the December 31, 2016 spot rate of $1.05. ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 50.00 485.45 Td (\(13\) ) Tj ET Q q 0 0 0 rg BT 72.50 485.45 Td (Management fees are based on aggregate contributed capital for the period from the initial investment date until the investment period start date, which includes indebtedness incurred in lieu of drawn capital.) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 50.00 478.25 Td (\(14\) ) Tj ET Q q 0 0 0 rg BT 72.50 478.25 Td (Ef) Tj ET Q q 0 0 0 rg BT 78.06 478.25 Td (fective November 2016, the Global Principal strategy was renamed the Special Situations strategy) Tj ET Q q 0 0 0 rg BT 337.75 478.25 Td (. ) Tj ET Q q 0 0 0 rg BT 342.64 478.25 Td (The aggregate gross and net IRRs presented for this strategy exclude the performance of Oaktree Special Situations Fund.) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 50.00 471.05 Td (\(15\) ) Tj ET Q q 0 0 0 rg BT 72.50 471.05 Td (A) Tj ET Q q 0 0 0 rg BT 76.17 471.05 Td ( portion of the $409 million of commitments to Oaktree Infrastructure Fund is subject to certain contingencies.) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 50.00 463.85 Td (\(16\) ) Tj ET Q q 0 0 0 rg BT 72.50 463.85 Td (The fund follows the ) Tj ET Q q 0 0 0 rg BT 127.53 463.85 Td (American-style distribution waterfall, whereby the general partner may receive an incentive allocation as soon as it has returned the drawn capital and paid a preferred return on the fund’) Tj ET Q q 0 0 0 rg BT 618.70 463.85 Td (s realized investments \(i.e., on a deal-by-deal ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 72.50 456.65 Td (basis\). However) Tj ET Q q 0 0 0 rg BT 116.85 456.65 Td (, such cash distributions of incentives may be subject to repayment, or clawback. ) Tj ET Q q 0 0 0 rg BT 334.29 456.65 Td (As of December 31, 2016, Oaktree had not recognized any incentive income from this fund. ) Tj ET Q q 0 0 0 rg BT 580.31 456.65 Td (The accrued incentives \(fund level\) amount shown for this ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 72.50 449.45 Td (fund represents Oaktree’) Tj ET Q q 0 0 0 rg BT 138.43 449.45 Td (s ef) Tj ET Q q 0 0 0 rg BT 147.99 449.45 Td (fective 8% of the potential incentives generated by this fund in accordance with the terms of the Highstar acquisition.) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 50.00 442.25 Td (\(17\) ) Tj ET Q q 0 0 0 rg BT 72.50 442.25 Td (The fund’) Tj ET Q q 0 0 0 rg BT 97.41 442.25 Td (s partnership interests are divided into Class ) Tj ET Q q 0 0 0 rg BT 216.80 442.25 Td (A) Tj ET Q q 0 0 0 rg BT 220.47 442.25 Td ( and Class B interests, with the Class ) Tj ET Q q 0 0 0 rg BT 320.85 442.25 Td (A) Tj ET Q q 0 0 0 rg BT 324.52 442.25 Td ( interests having priority with respect to the distribution of current income and disposition proceeds. ) Tj ET Q q 0 0 0 rg BT 589.88 442.25 Td (The net IRR for Class ) Tj ET Q q 0 0 0 rg BT 648.90 442.25 Td (A) Tj ET Q q 0 0 0 rg BT 652.57 442.25 Td ( interests was 10.4% and Class B ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 72.50 435.05 Td (interests was 8.6%. ) Tj ET Q q 0 0 0 rg BT 127.75 435.05 Td (The combined net IRR for Class ) Tj ET Q q 0 0 0 rg BT 214.45 435.05 Td (A) Tj ET Q q 0 0 0 rg BT 218.12 435.05 Td ( and Class B interests was 9.6%. ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 50.00 427.85 Td (\(18\) ) Tj ET Q q 0 0 0 rg BT 72.50 427.85 Td (The fund’) Tj ET Q q 0 0 0 rg BT 97.41 427.85 Td (s partnership interests are divided into Class ) Tj ET Q q 0 0 0 rg BT 216.80 427.85 Td (A) Tj ET Q q 0 0 0 rg BT 220.47 427.85 Td ( and Class B interests, with the Class ) Tj ET Q q 0 0 0 rg BT 320.85 427.85 Td (A) Tj ET Q q 0 0 0 rg BT 324.52 427.85 Td ( interests having priority with respect to the distribution of current income and disposition proceeds. ) Tj ET Q q 0 0 0 rg BT 589.88 427.85 Td (The net IRR for Class ) Tj ET Q q 0 0 0 rg BT 648.90 427.85 Td (A) Tj ET Q q 0 0 0 rg BT 652.57 427.85 Td ( interests was 10.8% and Class B ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 72.50 420.65 Td (interests was 10.5%. ) Tj ET Q q 0 0 0 rg BT 131.08 420.65 Td (The combined net IRR for the Class ) Tj ET Q q 0 0 0 rg BT 227.80 420.65 Td (A) Tj ET Q q 0 0 0 rg BT 231.47 420.65 Td ( and Class B interests was 10.6%. ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 50.00 413.45 Td (\(19\) ) Tj ET Q q 0 0 0 rg BT 72.50 413.45 Td (In the third quarter of 2016, the investment period for Oaktree Emerging Market Opportunities Fund was extended for a one year period until September 2017. However) Tj ET Q q 0 0 0 rg BT 518.42 413.45 Td (, management fees stepped down to the post-investment period basis ef) Tj ET Q q 0 0 0 rg BT 710.09 413.45 Td (fective ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 72.50 406.25 Td (October 1, 2016.) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 50.00 399.05 Td (\(20\) ) Tj ET Q q 0 0 0 rg BT 72.50 399.05 Td (This includes our closed-end Senior Loan funds, CLOs, Oaktree European Special Situations Fund, OCM ) Tj ET Q q 0 0 0 rg BT 353.65 399.05 Td (Asia Principal Opportunities Fund, a non-Oaktree fund, certain separate accounts, co-investments and certain evergreen separate accounts in our ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 72.50 391.85 Td (Real Estate Debt and Emerging Markets Opportunities strategies.) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 50.00 384.65 Td (\(21\) ) Tj ET Q q 0 0 0 rg BT 72.50 384.65 Td (The total excludes two closed-end funds with management fee-generating ) Tj ET Q q 0 0 0 rg BT 270.29 384.65 Td (AUM aggregating $472 million as of December 31, 2016, which has been included as part of the Strategic Credit strategy within the evergreen funds table, and includes certain ) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 72.50 377.45 Td (evergreen separate accounts in our Real Estate Debt and Emerging Markets Opportunities strategies with an aggregate $334 million of management fee-generating ) Tj ET Q q 0 0 0 rg BT 509.09 377.45 Td (AUM.) Tj ET Q endstream endobj 51 0 obj <> endobj 52 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (25) Tj ET Q BT /F3 11.00 Tf ET 0 0 0 RG /GS0 gs 0.81 w 0 i [] 0 d 1 J 1 j 3 M 50 739.431640625 m 132.5537109375 739.431640625 l s q 0 0 0 rg BT 50.00 741.00 Td (Open-end Funds) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 132.55 741.00 Td ( ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253.5 710.5 m 286.5 710.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286.5 710.5 m 294.5 710.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 294.5 710.5 m 328.5 710.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 710.5 m 336.5 710.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336.5 710.5 m 367.5 710.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375.5 710.5 m 405.5 710.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405.5 710.5 m 413.5 710.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413.5 710.5 m 443.5 710.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 710.5 m 451.5 710.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451.5 710.5 m 482.5 710.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482.5 710.5 m 490.5 710.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 710.5 m 523.5 710.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 523.5 710.5 m 531.5 710.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 531.5 710.5 m 562.5 710.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253.5 698.5 m 286.5 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286.5 698.5 m 294.5 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 294.5 698.5 m 328.5 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 698.5 m 336.5 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336.5 698.5 m 367.5 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375.5 698.5 m 405.5 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405.5 698.5 m 413.5 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413.5 698.5 m 443.5 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 698.5 m 451.5 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451.5 698.5 m 482.5 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 698.5 m 523.5 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 523.5 698.5 m 531.5 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 531.5 698.5 m 562.5 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253.5 676.5 m 286.5 676.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286.5 676.5 m 294.5 676.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 294.5 676.5 m 328.5 676.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375.5 676.5 m 405.5 676.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405.5 676.5 m 413.5 676.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413.5 676.5 m 443.5 676.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 156.5 664.5 m 195.5 664.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 203.5 664.5 m 245.5 664.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253.5 664.5 m 286.5 664.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 294.5 664.5 m 328.5 664.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336.5 664.5 m 367.5 664.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375.5 664.5 m 405.5 664.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413.5 664.5 m 443.5 664.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451.5 664.5 m 482.5 664.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 664.5 m 523.5 664.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 531.5 664.5 m 562.5 664.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 203.5 509.5 m 245.5 509.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 203.5 509.5 m 245.5 509.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 203.5 497.5 m 245.5 497.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 203.5 495.5 m 245.5 495.5 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 209.80 710.50 Td (Manage-) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 207.45 703.50 Td (ment Fee-) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 213.30 696.50 Td (gener-) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 206.80 689.50 Td (ating ) Tj ET Q q 0 0 0 rg BT 225.21 689.50 Td (AUM) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 215.80 682.50 Td (as of) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 210.75 675.50 Td (Dec. 31, ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 216.20 668.50 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 258.40 714.50 Td (Year Ended December 31, 2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 395.95 714.50 Td (Since Inception through December 31, 2016) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 669.12 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 161.45 675.50 Td (Strategy) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 159.90 668.50 Td (Inception) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 280.15 702.50 Td (Rates of Return ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 334.21 705.84 Td (\(1\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 379.00 702.50 Td (Annualized Rates of Return ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 472.34 705.84 Td (\(1\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 504.40 702.50 Td (Sharpe Ratio) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 277.45 680.50 Td (Oaktree) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 342.90 689.50 Td (Rele-) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 344.30 682.50 Td (vant ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 339.60 675.50 Td (Bench-) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 343.10 668.50 Td (mark) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 395.95 680.50 Td (Oaktree) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 457.90 689.50 Td (Rele-) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 459.30 682.50 Td (vant ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 454.60 675.50 Td (Bench-) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 458.10 668.50 Td (mark) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 493.45 675.50 Td (Oaktree) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 496.35 668.50 Td (Gross) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 537.90 689.50 Td (Rele-) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 539.30 682.50 Td (vant ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 534.60 675.50 Td (Bench-) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 538.10 668.50 Td (mark) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 259.35 668.50 Td (Gross) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 305.35 668.50 Td (Net) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 379.85 668.50 Td (Gross) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 422.35 668.50 Td (Net) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 204.35 656.50 Td (\(in millions\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 378.00 656.50 Td ( ) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 416.00 656.50 Td ( ) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 454.00 656.50 Td ( ) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 493.00 656.50 Td ( ) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 534.00 656.50 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 53.00 630.73 Td (U.S. High Yield Bonds) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 132.95 631.18 Td (.........) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 166.60 630.73 Td (1986) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 206.00 630.73 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 217.60 630.73 Td (17,289) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 262.80 630.78 Td (14.2) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 278.85 630.73 Td (%) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 304.80 630.78 Td (13.6) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 320.80 630.73 Td (%) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 343.80 630.78 Td (17.3) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 359.80 630.73 Td (%) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 386.25 630.73 Td (9.4) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 397.80 630.73 Td (%) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 424.25 630.73 Td (8.8) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 435.80 630.73 Td (%) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 463.25 630.73 Td (8.4) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 474.85 630.73 Td (%) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 498.70 630.73 Td (0.80) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 538.70 630.73 Td (0.56) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 53.00 617.73 Td (Global High Yield Bonds) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 139.65 618.18 Td (......) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 166.60 617.73 Td (2010) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 222.10 617.78 Td (4,425) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 262.80 617.78 Td (15.5) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 304.80 617.78 Td (15.0) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 343.80 617.78 Td (16.9) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 386.25 617.73 Td (7.5) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 424.25 617.73 Td (7.0) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 463.25 617.73 Td (6.9) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 498.70 617.73 Td (1.13) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 538.70 617.73 Td (1.07) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 53.00 604.73 Td (European High Yield Bonds) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 166.60 604.73 Td (1999) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 222.10 604.78 Td (1,316) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 262.80 604.78 Td (11.1) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 304.80 604.78 Td (10.6) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 343.80 604.78 Td (12.5) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 386.25 604.73 Td (8.1) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 424.25 604.73 Td (7.6) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 463.25 604.73 Td (6.3) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 498.70 604.73 Td (0.71) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 538.70 604.73 Td (0.44) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 53.00 591.73 Td (U.S. Convertibles) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 117.40 592.18 Td (................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 166.60 591.73 Td (1987) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 222.10 591.78 Td (3,411) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 267.25 591.78 Td (8.2) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 309.25 591.73 Td (7.6) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 343.80 591.78 Td (10.4) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 386.25 591.73 Td (9.4) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 424.25 591.73 Td (8.8) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 463.25 591.73 Td (8.1) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 498.70 591.73 Td (0.48) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 538.70 591.73 Td (0.36) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 53.00 578.73 Td (Non-U.S. Convertibles) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 132.95 579.18 Td (.........) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 166.60 578.73 Td (1994) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 222.10 578.78 Td (1,456) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 267.25 578.78 Td (3.7) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 309.25 578.73 Td (3.2) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 348.25 578.73 Td (0.9) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 386.25 578.73 Td (8.4) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 424.25 578.73 Td (7.8) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 463.25 578.73 Td (5.6) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 498.70 578.73 Td (0.78) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 538.70 578.73 Td (0.40) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 53.00 565.73 Td (High Income Convertibles) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 146.30 566.18 Td (...) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 166.60 565.73 Td (1989) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 228.75 565.73 Td (863) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 262.80 565.78 Td (15.0) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 304.80 565.78 Td (14.1) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 343.80 565.78 Td (17.8) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 381.80 565.78 Td (11.4) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 419.80 565.78 Td (10.6) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 463.25 565.73 Td (8.2) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 498.70 565.73 Td (1.06) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 538.70 565.73 Td (0.60) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 53.00 552.73 Td (U.S. Senior Loans) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 119.65 553.18 Td (...............) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 166.60 552.73 Td (2008) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 222.10 552.78 Td (1,572) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 262.80 552.78 Td (11.5) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 304.80 552.78 Td (10.9) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 348.25 552.73 Td (9.9) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 386.25 552.73 Td (6.2) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 424.25 552.73 Td (5.7) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 463.25 552.73 Td (5.3) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 498.70 552.73 Td (1.11) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 538.70 552.73 Td (0.65) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 53.00 539.73 Td (European Senior Loans) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 137.40 540.18 Td (.......) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 166.60 539.73 Td (2009) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 222.10 539.78 Td (1,422) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 267.25 539.78 Td (6.7) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 309.25 539.73 Td (6.2) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 348.25 539.73 Td (6.5) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 386.25 539.73 Td (8.5) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 424.25 539.73 Td (7.9) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 463.25 539.73 Td (9.2) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 498.70 539.73 Td (1.72) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 538.70 539.73 Td (1.73) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 53.00 526.73 Td (Emerging Markets Equities) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 150.75 527.18 Td (.) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 166.85 526.73 Td (2011) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 222.10 526.78 Td (3,060) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 262.80 526.78 Td (15.1) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 304.80 526.78 Td (14.2) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 343.80 526.78 Td (11.2) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 383.55 526.73 Td (\(1.7) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 397.40 526.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 421.55 526.73 Td (\(2.5) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 435.40 526.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 460.60 526.78 Td (\(2.7) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 474.40 526.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 496.05 526.73 Td (\(0.09\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 536.05 526.73 Td (\(0.15\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 53.00 513.73 Td (Other) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 75.20 514.18 Td (...................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 228.75 513.73 Td (220) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 175.10 500.73 Td (Total) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 206.00 500.73 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 217.60 500.73 Td (35,034) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 402.00 500.73 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 440.00 500.73 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 479.00 500.73 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 520.00 500.73 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 559.00 500.73 Td ( ) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 482.5 m 150.5 482.5 l s BT /F1 10.00 Tf ET BT /F3 8.00 Tf ET q 0 0 0 rg BT 50.00 470.40 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 72.50 470.40 Td (Returns represent time-weighted rates of return, including reinvestment of income, net of commissions and transaction costs. ) Tj ET Q q 0 0 0 rg BT 518.79 470.40 Td (The returns ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 460.80 Td (for Relevant Benchmarks are presented on a gross basis. ) Tj ET Q BT /F3 11.00 Tf ET 0 0 0 RG /GS0 gs 0.81 w 0 i [] 0 d 1 J 1 j 3 M 50 419.031640625 m 134.3798828125 419.031640625 l s q 0 0 0 rg BT 50.00 420.60 Td (Evergreen Funds) Tj ET Q BT /F3 11.00 Tf ET q 0 0 0 rg BT 134.38 420.60 Td ( ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 246.5 392.1 m 284.5 392.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 284.5 392.1 m 293.5 392.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293.5 392.1 m 335.5 392.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335.5 392.1 m 344.5 392.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 392.1 m 382.5 392.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 382.1 m 430.5 382.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430.5 382.1 m 439.5 382.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 382.1 m 472.5 382.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 382.1 m 430.5 382.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 362.1 m 430.5 362.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430.5 382.1 m 439.5 382.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430.5 362.1 m 439.5 362.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 382.1 m 472.5 382.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 362.1 m 472.5 362.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481.5 382.1 m 517.5 382.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481.5 362.1 m 517.5 362.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517.5 382.1 m 526.5 382.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517.5 362.1 m 526.5 362.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 526.5 382.1 m 562.5 382.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 526.5 362.1 m 562.5 362.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 198.5 350.1 m 237.5 350.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 246.5 350.1 m 284.5 350.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293.5 350.1 m 335.5 350.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 350.1 m 382.5 350.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 350.1 m 430.5 350.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 350.1 m 472.5 350.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481.5 350.1 m 517.5 350.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 526.5 350.1 m 562.5 350.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293.5 261.1 m 335.5 261.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 261.1 m 382.5 261.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293.5 261.1 m 335.5 261.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293.5 235.10000000000002 m 335.5 235.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293.5 223.10000000000002 m 335.5 223.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293.5 221.10000000000002 m 335.5 221.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 235.10000000000002 m 382.5 235.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 223.10000000000002 m 382.5 223.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 221.10000000000002 m 382.5 221.10000000000002 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 272.75 396.10 Td (As of December 31, 2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 415.40 393.10 Td (Y) Tj ET Q q 0 0 0 rg BT 419.68 393.10 Td (ear Ended) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 402.95 386.10 Td (December 31, 2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 495.60 400.10 Td (Since Inception) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 508.25 393.10 Td (through) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 489.95 386.10 Td (December 31, 2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 257.00 354.10 Td (AUM) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 299.80 375.10 Td (Manage-) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 305.60 368.10 Td (ment) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 296.10 361.10 Td (Fee-gener-) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 296.80 354.10 Td (ating ) Tj ET Q q 0 0 0 rg BT 315.21 354.10 Td (AUM) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 348.95 382.10 Td (Accrued ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 352.65 375.10 Td (Incen-) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 355.00 368.10 Td (tives ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 353.25 361.10 Td (\(Fund ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 352.85 354.10 Td (Level\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 53.00 370.19 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 203.45 361.10 Td (Strategy) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 201.90 354.10 Td (Inception) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 404.65 366.10 Td (Rates of Return ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 458.71 369.44 Td (\(1\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 492.30 373.10 Td (Annualized Rates ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 502.15 366.10 Td (of Return ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 535.20 369.44 Td (\(1\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 53.00 354.14 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 403.35 354.10 Td (Gross) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 449.85 354.10 Td (Net) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 488.85 354.10 Td (Gross) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 538.35 354.10 Td (Net) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 294.35 342.10 Td (\(in millions\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 201.00 329.41 Td ( ) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 400.00 329.41 Td ( ) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 442.00 329.41 Td ( ) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 484.00 329.41 Td ( ) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 529.00 329.41 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 53.00 317.33 Td (Strategic Credit ) Tj ET Q BT /F3 8.00 Tf ET BT /F3 5.20 Tf ET q 0 0 0 rg BT 110.36 321.14 Td (\(2\)) Tj ET Q BT /F3 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 1 1 rg BT 116.71 317.33 Td (.) Tj ET Q BT /F3 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 121.65 317.78 Td (.................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 208.60 317.33 Td (2012) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 249.00 317.33 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 261.25 317.38 Td (3,281) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 296.00 317.33 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 312.25 317.38 Td (2,392) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 347.00 317.33 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 371.25 317.33 Td (—) Tj ET Q BT /F3 5.20 Tf ET q 0 0 0 rg BT 385.00 321.68 Td (\(3\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 407.25 317.38 Td (16.3) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 422.85 317.33 Td (%) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 449.25 317.38 Td (12.8) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 464.85 317.33 Td (%) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 498.70 317.33 Td (8.3) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 509.85 317.33 Td (%) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.70 317.33 Td (6.0) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 554.85 317.33 Td (%) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 53.00 304.33 Td (Value Opportunities) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 123.85 304.78 Td (................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 208.60 304.33 Td (2007) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 261.25 304.38 Td (1,272) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 312.25 304.38 Td (1,207) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 371.25 304.33 Td (—) Tj ET Q BT /F3 5.20 Tf ET q 0 0 0 rg BT 385.00 308.68 Td (\(4\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 407.25 304.38 Td (17.7) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 449.25 304.38 Td (15.5) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 498.70 304.33 Td (9.5) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.70 304.33 Td (5.5) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 53.00 291.33 Td (Emerging Markets Debt ) Tj ET Q q 0 0 0 rg BT 139.11 291.33 Td (T) Tj ET Q q 0 0 0 rg BT 143.11 291.33 Td (otal Return ) Tj ET Q BT /F3 8.00 Tf ET BT /F3 5.20 Tf ET q 0 0 0 rg BT 184.46 295.14 Td (\(5\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 190.82 291.33 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 192.75 291.78 Td (.) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 208.60 291.33 Td (2015) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 267.95 291.33 Td (441) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 318.95 291.38 Td (366) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 374.80 291.33 Td (2) Tj ET Q BT /F3 5.20 Tf ET q 0 0 0 rg BT 385.00 295.68 Td (\(3\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 407.25 291.38 Td (31.3) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 449.25 291.38 Td (25.0) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 494.25 291.38 Td (15.5) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 539.25 291.38 Td (12.1) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 53.00 278.33 Td (V) Tj ET Q q 0 0 0 rg BT 57.74 278.33 Td (alue Equities ) Tj ET Q BT /F3 8.00 Tf ET BT /F3 5.20 Tf ET q 0 0 0 rg BT 105.77 282.14 Td (\(6\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 112.13 278.33 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 114.95 278.78 Td (....................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 208.60 278.33 Td (2012) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 267.95 278.33 Td (371) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 318.95 278.38 Td (301) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 371.25 278.33 Td (—) Tj ET Q BT /F3 5.20 Tf ET q 0 0 0 rg BT 385.00 282.68 Td (\(3\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 407.25 278.38 Td (29.6) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 449.25 278.38 Td (25.7) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 494.25 278.38 Td (19.5) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 539.25 278.38 Td (14.1) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 53.00 265.33 Td (Emerging Markets Absolute Return) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 179.40 265.78 Td (.......) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 208.60 265.33 Td (1997) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 267.95 265.33 Td (131) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 318.95 265.38 Td (111) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 371.25 265.33 Td (—) Tj ET Q BT /F3 5.20 Tf ET q 0 0 0 rg BT 385.00 269.68 Td (\(4\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 411.70 265.33 Td (5.8) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 453.70 265.33 Td (4.4) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 494.25 265.38 Td (12.9) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.70 265.33 Td (8.7) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 53.00 252.33 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 234.00 252.33 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 312.25 252.38 Td (4,377) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 374.80 252.33 Td (2) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 213.40 239.33 Td (Restructured funds) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 324.25 239.33 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 374.80 239.33 Td (5) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 247.70 226.33 Td (T) Tj ET Q q 0 0 0 rg BT 251.70 226.33 Td (otal ) Tj ET Q BT /F3 8.00 Tf ET BT /F3 5.20 Tf ET q 0 0 0 rg BT 266.82 230.14 Td (\(2\) \(7\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 296.00 226.33 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 312.25 226.38 Td (4,377) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 347.00 226.33 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 374.80 226.33 Td (7) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 208.10000000000002 m 150.5 208.10000000000002 l s BT /F1 10.00 Tf ET BT /F3 8.00 Tf ET q 0 0 0 rg BT 50.00 196.00 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 72.50 196.00 Td (Returns represent time-weighted rates of return.) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 50.00 186.40 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 72.50 186.40 Td (Includes two closed-end funds with an aggregate $799 million and $472 million of ) Tj ET Q q 0 0 0 rg BT 362.02 186.40 Td (AUM and management fee-generating ) Tj ET Q q 0 0 0 rg BT 499.88 186.40 Td (AUM, ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 176.80 Td (respectively) Tj ET Q q 0 0 0 rg BT 114.14 176.80 Td (. Beginning with the third quarter of 2016, annual performance-based fees have been reflected as incentive income \(as ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 167.20 Td (opposed to management fees\). Such amounts were not material in prior periods.) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 50.00 157.60 Td (\(3\) ) Tj ET Q q 0 0 0 rg BT 72.50 157.60 Td (For the year ended December 31, 2016, segment gross incentive income recognized by Oaktree totaled $19.3 million, $4.8 million and ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 148.00 Td ($5.3 million for Strategic Credit, Emerging Markets Debt ) Tj ET Q q 0 0 0 rg BT 272.43 148.00 Td (T) Tj ET Q q 0 0 0 rg BT 276.43 148.00 Td (otal Return and V) Tj ET Q q 0 0 0 rg BT 338.10 148.00 Td (alue Equities, respectively) Tj ET Q q 0 0 0 rg BT 430.00 148.00 Td (.) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 50.00 138.40 Td (\(4\) ) Tj ET Q q 0 0 0 rg BT 72.50 138.40 Td (As of December 31, 2016, the aggregate depreciation below high-water marks previously established for individual investors in the fund ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 128.80 Td (totaled approximately $67 million for V) Tj ET Q q 0 0 0 rg BT 207.53 128.80 Td (alue Opportunities and $2 million for Emerging Markets ) Tj ET Q q 0 0 0 rg BT 404.52 128.80 Td (Absolute Return.) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 50.00 119.20 Td (\(5\) ) Tj ET Q q 0 0 0 rg BT 72.50 119.20 Td (The rates of return reflect the performance of a composite of accounts, including a single account with a December 2014 inception date.) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 50.00 109.60 Td (\(6\) ) Tj ET Q q 0 0 0 rg BT 72.50 109.60 Td (Includes performance of a proprietary fund with an initial capital commitment of $25 million since its inception in May 2012.) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 50.00 100.00 Td (\(7\) ) Tj ET Q q 0 0 0 rg BT 72.50 100.00 Td (The total excludes certain evergreen separate accounts in our Real Estate Debt and Emerging Markets Opportunities strategies with an ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 90.40 Td (aggregate $334 million of management fee-generating ) Tj ET Q q 0 0 0 rg BT 266.86 90.40 Td (AUM as of December 31, 2016.) Tj ET Q endstream endobj 53 0 obj <> endobj 54 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (26) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Item 1A. Risk Factors) Tj ET Q BT /F2 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 0 0 rg BT 151.70 741.75 Td ( ) Tj ET Q BT /F5 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 80.00 723.75 Td (W) Tj ET Q q 0 0 0 rg BT 89.26 723.75 Td (e are subject to a number of significant risks inherent in our business. ) Tj ET Q q 0 0 0 rg BT 401.46 723.75 Td (Y) Tj ET Q q 0 0 0 rg BT 407.58 723.75 Td (ou should carefully consider the ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 711.75 Td (risks and uncertainties described below and other information included in this annual report. If any of the events ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 699.75 Td (described below occur) Tj ET Q q 0 0 0 rg BT 148.95 699.75 Td (, our business and financial results could be seriously harmed. The trading price of our ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 687.75 Td (Class ) Tj ET Q q 0 0 0 rg BT 77.41 687.75 Td (A) Tj ET Q q 0 0 0 rg BT 83.71 687.75 Td ( units could decline as a result of any of these risks, and you could lose all or part of your investment.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 669.75 Td (Risks Relating to Our Business) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 651.75 Td (Given our focus on achieving superior investment performance with less-than-commensurate risk, and the ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 639.75 Td (priority we af) Tj ET Q q 0 0 0 rg BT 112.06 639.75 Td (ford our clients’) Tj ET Q q 0 0 0 rg BT 187.25 639.75 Td ( interests, we may reduce our ) Tj ET Q q 0 0 0 rg BT 330.26 639.75 Td (AUM, restrain its growth, reduce our fees or ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 627.75 Td (otherwise alter the terms under which we do business when we deem it appropriate—even in ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 615.75 Td (circumstances where others might deem such actions unnecessary) Tj ET Q q 0 0 0 rg BT 371.42 615.75 Td (. Our approach could adversely af) Tj ET Q q 0 0 0 rg BT 535.18 615.75 Td (fect ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 603.75 Td (our results of operations.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 585.75 Td (One of the means by which we seek to achieve superior investment performance in each of our strategies is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 573.75 Td (by limiting the ) Tj ET Q q 0 0 0 rg BT 113.36 573.75 Td (AUM in our strategies to an amount that we believe can be invested appropriately in accordance with ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 561.75 Td (our investment philosophy and current or anticipated economic and market conditions. In the past we have taken, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 549.75 Td (and we may continue to take, af) Tj ET Q q 0 0 0 rg BT 191.02 549.75 Td (firmative steps to limit the growth of our ) Tj ET Q q 0 0 0 rg BT 367.20 549.75 Td (AUM. ) Tj ET Q q 0 0 0 rg BT 397.57 549.75 Td (These steps include:) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 531.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 531.75 Td (from time to time, we have suspended marketing certain of our open-end funds or other funds that we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 519.75 Td (sub-advise, sometimes for long periods, and have declined to participate in searches aggregating billions ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 507.75 Td (of dollars; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 489.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 489.75 Td (from time to time, we have returned capital from certain of our closed-end funds prior to the end of such ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 477.75 Td (funds’) Tj ET Q q 0 0 0 rg BT 118.31 477.75 Td ( respective investment periods; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 459.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 459.75 Td (we intentionally sized certain of our closed-ended funds to be smaller than their predecessors even ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 447.75 Td (though we could have raised additional capital; and) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 429.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 429.75 Td (since our founding we have turned away substantial amounts of capital of) Tj ET Q q 0 0 0 rg BT 416.46 429.75 Td (fered to us for management. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 408.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 130.40 408.75 Td (, we have voluntarily reduced management fee rates or changed the terms of how we assess ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 396.75 Td (management fees for certain of our funds or strategies when we deemed it appropriate, even when doing so ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 384.75 Td (reduced our short-term revenue, and we may continue to do so in the future. In addition, we have voluntarily ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 372.75 Td (decided to assess management fees for certain of our closed-end funds temporarily based on contributed capital or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 360.75 Td (fund NA) Tj ET Q q 0 0 0 rg BT 85.39 360.75 Td (V) Tj ET Q q 0 0 0 rg BT 91.14 360.75 Td (, rather than committed capital, and in certain circumstances we may continue to do so in the future. W) Tj ET Q q 0 0 0 rg BT 547.29 360.75 Td (e ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 348.75 Td (have made these changes not because they were necessary to raise the capital we wanted, but because we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 336.75 Td (deemed it important to demonstrate to our clients that we were not financially incentivized to raise more capital than ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 324.75 Td (appropriate for the opportunity set or to deploy capital for the sake of triggering management fees based on a fund’) Tj ET Q q 0 0 0 rg BT 556.80 324.75 Td (s ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 312.75 Td (total committed capital, as well as to avoid a disproportionate impact on the funds’) Tj ET Q q 0 0 0 rg BT 411.49 312.75 Td ( net returns. ) Tj ET Q q 0 0 0 rg BT 469.85 312.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 520.25 312.75 Td (, we may ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 300.75 Td (from time to time af) Tj ET Q q 0 0 0 rg BT 135.40 300.75 Td (ford certain investors in our funds or separate account clients more favorable economic terms ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 288.75 Td (than other investors in the same fund or separate account clients within the same or similar investment strategy) Tj ET Q q 0 0 0 rg BT 541.16 288.75 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 276.75 Td (including with respect to management fees and performance-based fees. ) Tj ET Q q 0 0 0 rg BT 378.34 276.75 Td (The availability of such terms is generally ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 264.75 Td (based on the aggregate size of commitments of such investor or client to one or more funds or accounts managed ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 252.75 Td (by us.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 234.75 Td (Our practice of putting our clients’) Tj ET Q q 0 0 0 rg BT 228.59 234.75 Td ( interests first and forsaking short-term advantage by) Tj ET Q q 0 0 0 rg BT 461.29 234.75 Td (, for example, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 222.75 Td (reducing assets under management or management fee or carried interest rates may reduce the profits we could ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 210.75 Td (otherwise realize in the short term and adversely af) Tj ET Q q 0 0 0 rg BT 276.04 210.75 Td (fect our business and financial condition and therefore conflict ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 198.75 Td (with the short-term interests of our Class ) Tj ET Q q 0 0 0 rg BT 231.73 198.75 Td (A) Tj ET Q q 0 0 0 rg BT 237.85 198.75 Td ( unitholders. In addition, to protect our current clients’) Tj ET Q q 0 0 0 rg BT 475.39 198.75 Td ( interests, we may ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 186.75 Td (not accept all of the capital of) Tj ET Q q 0 0 0 rg BT 179.35 186.75 Td (fered to us, which may damage our relationships and prospects with potential ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 174.75 Td (investors in our funds and may reduce the value of our business and therefore conflict with our Class ) Tj ET Q q 0 0 0 rg BT 497.47 174.75 Td (A) Tj ET Q q 0 0 0 rg BT 503.58 174.75 Td ( unitholders’) Tj ET Q q 0 0 0 rg BT 557.13 174.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 162.75 Td (short-term interests. Our Class ) Tj ET Q q 0 0 0 rg BT 191.15 162.75 Td (A) Tj ET Q q 0 0 0 rg BT 197.27 162.75 Td ( unitholders should understand that in instances in which our clients’) Tj ET Q q 0 0 0 rg BT 498.18 162.75 Td ( interests ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 150.75 Td (diverge from the short-term interests of our Class ) Tj ET Q q 0 0 0 rg BT 269.53 150.75 Td (A) Tj ET Q q 0 0 0 rg BT 275.64 150.75 Td ( unitholders, we intend to act in the interests of our clients. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 138.75 Td (However) Tj ET Q q 0 0 0 rg BT 88.91 138.75 Td (, it is our fundamental belief that prioritizing our clients’) Tj ET Q q 0 0 0 rg BT 329.21 138.75 Td ( interests will maximize the long-term value of our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 126.75 Td (business, which, in turn, will benefit our Class ) Tj ET Q q 0 0 0 rg BT 253.43 126.75 Td (A) Tj ET Q q 0 0 0 rg BT 259.55 126.75 Td ( unitholders.) Tj ET Q endstream endobj 55 0 obj <> endobj 56 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (27) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Our business is materially af) Tj ET Q q 0 0 0 rg BT 185.99 741.75 Td (fected by conditions in the global financial markets and economies, and any ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (disruption or deterioration in these conditions could materially reduce our revenues, earnings and cash ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (flow and adversely af) Tj ET Q q 0 0 0 rg BT 150.97 717.75 Td (fect our overall performance, ability to raise or deploy capital, financial prospects and ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 705.75 Td (condition and liquidity position.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 687.75 Td (Our business and the businesses in which our funds invest are materially af) Tj ET Q q 0 0 0 rg BT 413.88 687.75 Td (fected by conditions in the global ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 675.75 Td (financial markets and economic conditions throughout the world that are outside our control, such as interest rates, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 663.75 Td (availability and cost of credit, inflation rates, economic uncertainty) Tj ET Q q 0 0 0 rg BT 339.40 663.75 Td (, political uncertainty) Tj ET Q q 0 0 0 rg BT 429.26 663.75 Td (, changes in laws \(including ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 651.75 Td (laws relating to taxation\), trade barriers, commodity prices, currency exchange rates and controls and national and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 639.75 Td (international political circumstances \(including wars, terrorist acts and security operations\). ) Tj ET Q q 0 0 0 rg BT 454.99 639.75 Td (The detrimental impact ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 627.75 Td (to the U.S. and global financial markets following the unprecedented turmoil in the global capital markets and the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 615.75 Td (financial services industry in late 2008 and early 2009 serves as an example of how global market conditions can ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 603.75 Td (cause uncertainty and instability for investment management businesses. Concerns over increasing interest rates, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 591.75 Td (particularly short-term rates, sluggish economic expansion in non-U.S. economies, including continued concerns ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 579.75 Td (over growth prospects in China and emerging markets, instability in the Chinese stock market, growing debt loads ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 567.75 Td (for certain countries, uncertainty in the global regulatory environment, and uncertainty about the consequences of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 555.75 Td (the U.S. and other governments withdrawing monetary stimulus measures, all highlight the fact that economic ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 543.75 Td (conditions remain unpredictable. Such unpredictability could create volatility in the debt financing market and could ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 531.75 Td (negatively impact our business. Fluctuations in the foreign exchange value of the U.S. dollar could also result in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 519.75 Td (financial market dislocations that could negatively impact deal finance conditions. ) Tj ET Q q 0 0 0 rg BT 413.91 519.75 Td (These and other uncertain ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 507.75 Td (conditions in the global financial markets and economy have resulted in, and may continue to result in, adverse ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 495.75 Td (consequences for many of our funds, including restricting such funds’) Tj ET Q q 0 0 0 rg BT 355.91 495.75 Td ( investment activities and impeding such ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 483.75 Td (funds’) Tj ET Q q 0 0 0 rg BT 76.31 483.75 Td ( ability to ef) Tj ET Q q 0 0 0 rg BT 126.71 483.75 Td (fectively achieve their investment objectives.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 465.75 Td (The economic environment in the past has resulted in and may in the future result in decreases in the market ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 453.75 Td (value of certain publicly traded securities held by some of our funds.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 350.72 453.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 356.27 453.75 Td (Illiquidity in certain portions of the financial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 441.75 Td (markets could adversely af) Tj ET Q q 0 0 0 rg BT 168.76 441.75 Td (fect the pace of realization of our funds’) Tj ET Q q 0 0 0 rg BT 342.94 441.75 Td ( investments or otherwise restrict the ability of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 429.75 Td (our funds to realize value from their investments, thereby adversely af) Tj ET Q q 0 0 0 rg BT 358.30 429.75 Td (fecting our ability to generate incentive or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 417.75 Td (investment income. ) Tj ET Q q 0 0 0 rg BT 141.52 417.75 Td (There can be no assurance that conditions in the global financial markets will not worsen and/) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 405.75 Td (or adversely af) Tj ET Q q 0 0 0 rg BT 115.41 405.75 Td (fect our investments and overall performance.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 387.75 Td (Our profitability may also be adversely af) Tj ET Q q 0 0 0 rg BT 260.45 387.75 Td (fected by our fixed costs, such as the base salaries and expenses ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 375.75 Td (of our staf) Tj ET Q q 0 0 0 rg BT 94.29 375.75 Td (f, lease payments on our of) Tj ET Q q 0 0 0 rg BT 214.73 375.75 Td (fice space, interest payments on our debt, maintenance on our information ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 363.75 Td (technology and infrastructure, and the possibility that we would be unable to scale back other costs and otherwise ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 351.75 Td (redeploy our resources within a time frame suf) Tj ET Q q 0 0 0 rg BT 254.91 351.75 Td (ficient to match changes in market and economic conditions to take ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 339.75 Td (advantage of the opportunities that may be presented by these changes. ) Tj ET Q q 0 0 0 rg BT 375.78 339.75 Td (As a result, we may not be able to adjust ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 327.75 Td (our resources to take advantage of new investment opportunities that may be created as a result of specific ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 315.75 Td (dislocations in the market.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 297.75 Td (Our business depends in large part on our ability to raise capital from investors. If we were unable to raise ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 285.75 Td (such capital, we would be unable to collect management fees or deploy such capital into investments, ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 273.75 Td (which would materially reduce our revenues and cash flow and adversely af) Tj ET Q q 0 0 0 rg BT 410.49 273.75 Td (fect our financial condition.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 255.75 Td (Our ability to raise capital from investors depends on a number of factors, including many that are outside ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 243.75 Td (our control. ) Tj ET Q q 0 0 0 rg BT 105.40 243.75 Td (These include the general economic environment and the number of other investment funds being ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 231.75 Td (raised at the same time by our competitors that are focused on the same or similar investment strategies as our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 219.75 Td (funds. ) Tj ET Q q 0 0 0 rg BT 82.25 219.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 132.65 219.75 Td (, investors may reduce \(or even eliminate\) their investment allocations to alternative investments, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 207.75 Td (including closed-ended private funds and hedge funds. Poor performance of our funds could also make it more ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 195.75 Td (dif) Tj ET Q q 0 0 0 rg BT 60.38 195.75 Td (ficult for us to raise new capital. Investors in our closed-end funds may decline to invest in future closed-end ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 183.75 Td (funds we raise, and investors in our open-end and evergreen funds may withdraw their investments in the funds \(on ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 171.75 Td (specified withdrawal dates\) as a result of poor performance. Our investors and potential investors continually ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 159.75 Td (assess our funds’) Tj ET Q q 0 0 0 rg BT 127.45 159.75 Td ( performance, both on a standalone basis and relative to market benchmarks and our competitors, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 147.75 Td (and our ability to raise capital for existing and future funds and avoid excessive redemptions depends on our funds’) Tj ET Q q 0 0 0 rg BT 557.71 147.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 135.75 Td (performance. ) Tj ET Q q 0 0 0 rg BT 114.29 135.75 Td (T) Tj ET Q q 0 0 0 rg BT 119.29 135.75 Td (o the extent economic and market conditions deteriorate, we may be unable to raise suf) Tj ET Q q 0 0 0 rg BT 506.55 135.75 Td (ficient ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 123.75 Td (amounts of capital to support the investment activities of future funds.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 105.75 Td (In addition, certain institutional investors, including sovereign wealth funds and public pension funds, have ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 93.75 Td (demonstrated an increased preference for alternatives to the traditional investment fund structure, such as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 81.75 Td (managed accounts, funds-of-one and co-investment vehicles. ) Tj ET Q q 0 0 0 rg BT 327.75 81.75 Td (There can be no assurance that such alternatives ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 69.75 Td (will be as profitable for us as the traditional investment fund structure, or as to the impact such a trend could have ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 57.75 Td (on the cost of our operations or profitability) Tj ET Q q 0 0 0 rg BT 238.25 57.75 Td (. Moreover) Tj ET Q q 0 0 0 rg BT 288.27 57.75 Td (, certain institutional investors are demonstrating a preference ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 45.75 Td (to make direct investments in alternative assets without the assistance of private equity advisers like us. Such ) Tj ET Q endstream endobj 57 0 obj <> endobj 58 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (28) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (institutional investors may become our competitors and could cease to be our clients. ) Tj ET Q q 0 0 0 rg BT 431.31 741.75 Td (As some existing investors ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (cease or significantly curtail making commitments to alternative investment funds, we may need to identify and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (attract new investors in order to maintain or increase the size of our investment funds. ) Tj ET Q q 0 0 0 rg BT 434.45 717.75 Td (There are no assurances ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 705.75 Td (that we can find or secure commitments from new investors. If economic conditions were to deteriorate or if we are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 693.75 Td (unable to find new investors, we might raise less than our desired amount for a given fund.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 675.75 Td ( If we were unable to successfully raise capital, it could materially reduce our revenue, earnings and cash ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 663.75 Td (flow and adversely af) Tj ET Q q 0 0 0 rg BT 143.76 663.75 Td (fect our financial prospects and condition.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 645.75 Td (W) Tj ET Q q 0 0 0 rg BT 59.26 645.75 Td (e depend on a number of key personnel, and our ability to retain them and attract additional qualified ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 633.75 Td (personnel is critical to our success and our growth prospects.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 615.75 Td (W) Tj ET Q q 0 0 0 rg BT 89.26 615.75 Td (e depend on the diligence, skill, judgment, reputation and business contacts of our key personnel. Our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 603.75 Td (future success will depend upon our ability to retain our key personnel and our ability to recruit additional qualified ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 591.75 Td (personnel. Our key personnel possess substantial experience and expertise in investing, are responsible for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 579.75 Td (locating and executing our funds’) Tj ET Q q 0 0 0 rg BT 195.84 579.75 Td ( investments, have significant relationships with the institutions that are the source ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 567.75 Td (of many of our funds’) Tj ET Q q 0 0 0 rg BT 143.01 567.75 Td ( investment opportunities and in certain cases have strong relationships with our investors. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 555.75 Td (Therefore, if our key personnel join competitors or form competing companies, it could result in the loss of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 543.75 Td (significant investment opportunities and certain existing investors. Legislation has been proposed in the U.S. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 531.75 Td (Congress to treat portions of carried interest as ordinary income rather than as capital gain for U.S. federal income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 519.75 Td (tax purposes. Because we compensate our senior investment professionals in large part by giving them an equity ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 507.75 Td (interest in our business or a right to receive carried interest, such legislation could adversely af) Tj ET Q q 0 0 0 rg BT 467.25 507.75 Td (fect our ability to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 495.75 Td (recruit, retain and motivate our current and future senior investment professionals. Please see “—Risks Related to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 483.75 Td (United States ) Tj ET Q q 0 0 0 rg BT 112.63 483.75 Td (T) Tj ET Q q 0 0 0 rg BT 117.63 483.75 Td (axation—Our structure involves complex provisions of U.S. federal and international income tax law ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 471.75 Td (for which no clear precedent or authority may be available and is subject to potential legislative, judicial or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 459.75 Td (administrative change and dif) Tj ET Q q 0 0 0 rg BT 179.90 459.75 Td (fering interpretations, possibly on a retroactive basis.”) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 441.75 Td (W) Tj ET Q q 0 0 0 rg BT 89.26 441.75 Td (e have experienced departures of key investment professionals in the past and will do so in the future. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 429.75 Td (Any of those departures could have a negative impact on our ability to achieve our investment objectives. Indeed, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 417.75 Td (the departure for any reason of any of our most senior professionals, such as Howard Marks or Bruce Karsh, or a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 405.75 Td (significant number of our other investment professionals, could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 447.81 405.75 Td (fect on our ability to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 393.75 Td (achieve our investment objectives, cause certain of our investors to withdraw capital they invest with us or elect not ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 381.75 Td (to commit additional capital to our funds or otherwise have a material adverse ef) Tj ET Q q 0 0 0 rg BT 403.89 381.75 Td (fect on our business and our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 369.75 Td (prospects. ) Tj ET Q q 0 0 0 rg BT 101.51 369.75 Td (The departure of some or all of those individuals could also trigger certain “key person” provisions in the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 357.75 Td (documentation governing certain of our closed-end funds, which would permit the limited partners of those funds to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 345.75 Td (suspend or terminate the funds’) Tj ET Q q 0 0 0 rg BT 189.71 345.75 Td ( investment periods or withdraw their capital prior to expiration of the applicable ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 333.75 Td (lock-up date. Our key person provisions vary by both strategy and fund and, with respect to each strategy and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 321.75 Td (fund, are typically tied to multiple individuals, meaning that it would require the departure of more than one ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 309.75 Td (individual to trigger the key person provisions. If key person provisions were triggered for all of our closed-end ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 297.75 Td (funds with such provisions, and the investment periods for the closed-end funds were terminated, such terminations ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 285.75 Td (would, as of December 31, 2016, result in a $16.7 billion decrease in ) Tj ET Q q 0 0 0 rg BT 355.74 285.75 Td (AUM. ) Tj ET Q q 0 0 0 rg BT 385.75 285.75 Td (As a part of a restructuring in May ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 273.75 Td (2007, our senior employees exchanged their direct or indirect ownership interest in Oaktree Capital Management, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 261.75 Td (LLC, our predecessor company \(“OCM”\), for a new interest in OCGH that vested over time. Because 100% of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 249.75 Td (these interests have vested, af) Tj ET Q q 0 0 0 rg BT 185.45 249.75 Td (fected employees may be less motivated to remain at Oaktree.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 231.75 Td (W) Tj ET Q q 0 0 0 rg BT 89.26 231.75 Td (e anticipate that it will be necessary for us to add investment professionals both to grow our team and to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 219.75 Td (replace those who depart. However) Tj ET Q q 0 0 0 rg BT 209.54 219.75 Td (, the market for qualified investment professionals is extremely competitive, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 207.75 Td (both in the United States and internationally) Tj ET Q q 0 0 0 rg BT 242.72 207.75 Td (, and we may not succeed in recruiting additional personnel or we may ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 195.75 Td (fail to ef) Tj ET Q q 0 0 0 rg BT 84.84 195.75 Td (fectively replace current personnel who depart with qualified or ef) Tj ET Q q 0 0 0 rg BT 372.59 195.75 Td (fective successors. Our ef) Tj ET Q q 0 0 0 rg BT 490.23 195.75 Td (forts to retain ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 183.75 Td (and attract investment professionals may also result in significant additional expenses, which could adversely af) Tj ET Q q 0 0 0 rg BT 543.41 183.75 Td (fect ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 171.75 Td (our profitability or result in an increase in the portion of our incentive income that we grant to our investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 159.75 Td (professionals.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 141.75 Td (Our revenues are highly volatile due to the nature of our business, and we do not expect steady earnings ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 129.75 Td (growth, each of which may cause the value of interests in our business to be variable.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 111.75 Td (Our segment revenues and cash flow are highly volatile, primarily due to the fact that the incentive income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 99.75 Td (we receive from our funds and the investment income we recognize on our corporate investments in funds and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 87.75 Td (companies, which individually and collectively account for a substantial portion of our income, are highly volatile. In ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 75.75 Td (the case of our closed-end funds, our incentive income is recognized only when it is fixed or determinable under the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 63.75 Td (Method 1 approach of) Tj ET Q q 0 0 0 rg BT 147.11 63.75 Td (fered by generally accepted accounting principles in the United States \(“GAAP”\), which ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 51.75 Td (typically occurs in a sporadic and unpredictable fashion. For purposes of adjusted net income, incentive income is ) Tj ET Q endstream endobj 59 0 obj <> endobj 60 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (29) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (recognized when the underlying fund distributions are known or knowable as of the respective quarter end, which ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (may be later than the time at which the same incentive income is recognized under Method 1. In addition, in the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (case of our closed-end funds, we are entitled to incentive income \(other than tax distributions, which are treated as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 705.75 Td (incentive income\) only after all contributed capital and profits representing, typically) Tj ET Q q 0 0 0 rg BT 416.67 705.75 Td (, an 8% annual preferred return ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 693.75 Td (on that capital have been distributed to our funds’) Tj ET Q q 0 0 0 rg BT 268.11 693.75 Td ( limited partners. In the case of certain evergreen funds, we are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 681.75 Td (generally entitled to receive an annual incentive payment based upon the increase in NA) Tj ET Q q 0 0 0 rg BT 440.62 681.75 Td (V attributable to or the net ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 669.75 Td (profit allocated to a limited partner during a particular calendar year) Tj ET Q q 0 0 0 rg BT 346.27 669.75 Td (, subject to a high-water mark or a preferred ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 657.75 Td (return hurdle. Given that the investments made by our funds may be illiquid or volatile and that our investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 645.75 Td (results and the pace of realization of our investments will vary from fund to fund and period to period, our incentive ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 633.75 Td (income likely will vary materially from year to year) Tj ET Q q 0 0 0 rg BT 268.95 633.75 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 615.75 Td (W) Tj ET Q q 0 0 0 rg BT 89.26 615.75 Td (e may also experience fluctuations in our operating results, from quarter to quarter or year to year) Tj ET Q q 0 0 0 rg BT 519.48 615.75 Td (, due to a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 603.75 Td (host of other factors, including changes in the values of our investments, changes in the operating results of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 591.75 Td (DoubleLine or its funds or other companies in which we have corporate investments, changes in the amount of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 579.75 Td (distributions from our funds or companies in which we have corporate investments, the pace of raising new funds ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 567.75 Td (and liquidation of our old funds, dividends or interest paid in respect of investments, changes in our operating or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 555.75 Td (other expenses, the degree to which we encounter competition and general economic and market conditions. ) Tj ET Q q 0 0 0 rg BT 537.89 555.75 Td (This ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 543.75 Td (variability may cause our results for a particular period not to be indicative of our performance in a future period.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 525.75 Td (As noted above, the timing and amount of incentive income generated by our closed-end funds are uncertain ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 513.75 Td (and will contribute to the volatility of our net income. Incentive income depends on our closed-end funds’) Tj ET Q q 0 0 0 rg BT 512.68 513.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 501.75 Td (investment performance and opportunities for realizing gains, which may be limited. In addition, it takes a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 489.75 Td (substantial period of time to identify attractive investment opportunities, to raise all the funds needed to make an ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 477.75 Td (investment and then to realize the cash value of an investment through resale, recapitalization or other exit event. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 465.75 Td (Even if an investment proves to be profitable, it may be several years or longer before those profits can be realized ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 453.75 Td (in cash or other manner of payment. W) Tj ET Q q 0 0 0 rg BT 225.45 453.75 Td (e cannot predict when, or if, any realization of investments will occur) Tj ET Q q 0 0 0 rg BT 526.16 453.75 Td (. If we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 441.75 Td (have a realization event in a particular quarter) Tj ET Q q 0 0 0 rg BT 252.34 441.75 Td (, it may have a significant impact on our revenues and profits for that ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 429.75 Td (particular quarter) Tj ET Q q 0 0 0 rg BT 125.04 429.75 Td (, which may not be replicated in subsequent quarters.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 411.75 Td (A) Tj ET Q q 0 0 0 rg BT 86.12 411.75 Td ( small number of our open-end funds and certain evergreen funds also generate performance-based ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 399.75 Td (revenues based on their investment returns as compared with a specified market index or other benchmark. ) Tj ET Q q 0 0 0 rg BT 531.36 399.75 Td (As a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 387.75 Td (result, we may not earn a performance fee in a particular period even if the fund had a positive return. ) Tj ET Q q 0 0 0 rg BT 503.96 387.75 Td (The ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 375.75 Td (incentive income and performance fee revenues we earn are therefore dependent on, among other factors, the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 363.75 Td (NA) Tj ET Q q 0 0 0 rg BT 63.15 363.75 Td (V of the fund and, in certain cases, its performance relative to its market, which may lead to volatility in our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 351.75 Td (quarterly or annual financial results.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 333.75 Td (The historical financial information included in this annual report is not necessarily indicative of our future ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 321.75 Td (performance.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 303.75 Td (The historical financial information included in this annual report is not necessarily indicative of our future ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 291.75 Td (financial results. ) Tj ET Q q 0 0 0 rg BT 127.08 291.75 Td (This financial information does not purport to represent or predict the results of any future periods.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 273.75 Td (The results of future periods are likely to be materially dif) Tj ET Q q 0 0 0 rg BT 330.49 273.75 Td (ferent as a result of:) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 255.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 255.75 Td (future growth that does not follow our historical trends; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 237.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 237.75 Td (changes in the economic environment, competitive landscape and financial markets; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 219.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 219.75 Td (new and additional costs and expenses attributable to our operations, including our operations as a public ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 207.75 Td (company) Tj ET Q q 0 0 0 rg BT 131.83 207.75 Td (, as a mutual fund adviser and as a company within an extensively regulated industry;) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 189.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 189.75 Td (increases in non-cash compensation charges relating to the vesting of OCGH and Class ) Tj ET Q q 0 0 0 rg BT 483.88 189.75 Td (A) Tj ET Q q 0 0 0 rg BT 489.99 189.75 Td ( units issued ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 177.75 Td (after our initial public of) Tj ET Q q 0 0 0 rg BT 194.65 177.75 Td (fering in ) Tj ET Q q 0 0 0 rg BT 232.45 177.75 Td (April 2012; and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 159.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 159.75 Td (a provision for corporate income taxes on the income of certain of our Intermediate Holding Companies ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 147.75 Td (that are taxed as corporations for U.S. federal income tax purposes. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 129.75 Td (Our funds depend on investment cycles, and any change in such cycles could have an adverse ef) Tj ET Q q 0 0 0 rg BT 513.86 129.75 Td (fect on ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 117.75 Td (our investment prospects.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 99.75 Td (Cyclicality is important to our business. W) Tj ET Q q 0 0 0 rg BT 267.10 99.75 Td (eak economic environments have tended to af) Tj ET Q q 0 0 0 rg BT 471.49 99.75 Td (ford us our best ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 87.75 Td (investment opportunities and our best relative investment performance. For example, the relative performance of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 75.75 Td (our High ) Tj ET Q q 0 0 0 rg BT 90.40 75.75 Td (Y) Tj ET Q q 0 0 0 rg BT 96.69 75.75 Td (ield Bond strategy has typically been strongest in dif) Tj ET Q q 0 0 0 rg BT 326.65 75.75 Td (ficult times when default rates are highest, and our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 63.75 Td (Distressed Debt and Control Investing funds have historically found their best investment opportunities during ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 51.75 Td (downturns in the economy when credit is not as readily available. Conversely) Tj ET Q q 0 0 0 rg BT 392.77 51.75 Td (, we tend to realize value from our ) Tj ET Q endstream endobj 61 0 obj <> endobj 62 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (30) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (investments in times of economic expansion, when opportunities to sell investments may be greater) Tj ET Q q 0 0 0 rg BT 489.67 741.75 Td (. ) Tj ET Q q 0 0 0 rg BT 497.82 741.75 Td (Thus, we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (depend on the cyclicality of the market in order to sustain our business and generate superior risk-adjusted returns ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (over extended periods. ) Tj ET Q q 0 0 0 rg BT 156.74 717.75 Td (Any prolonged economic expansion or recession could have an adverse impact on certain ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 705.75 Td (of our funds and materially af) Tj ET Q q 0 0 0 rg BT 178.78 705.75 Td (fect our ability to deliver superior investment returns for our clients or generate ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 693.75 Td (incentive or other income.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 675.75 Td (Our failure to deal appropriately with conflicts of interest could damage our reputation and adversely af) Tj ET Q q 0 0 0 rg BT 541.03 675.75 Td (fect ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 663.75 Td (our business.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 645.75 Td (As we have expanded the number and scope of our strategies and distribution channels, including of) Tj ET Q q 0 0 0 rg BT 524.55 645.75 Td (fering ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 633.75 Td (our investment products through mutual funds registered under the Investment Company ) Tj ET Q q 0 0 0 rg BT 445.22 633.75 Td (Act, we increasingly ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 621.75 Td (confront potential conflicts of interest that we need to manage and resolve. ) Tj ET Q q 0 0 0 rg BT 385.02 621.75 Td (These conflicts take many forms. For ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 609.75 Td (example, the investment focus of a number of our funds overlap, meaning that we occasionally confront issues as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 597.75 Td (to how a particular investment opportunity should be allocated. ) Tj ET Q q 0 0 0 rg BT 332.21 597.75 Td (Though we believe we have appropriate means to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 585.75 Td (resolve these conflicts, our judgment on any particular allocation could be challenged, particularly in instances \(as is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 573.75 Td (sometimes the case\) where the af) Tj ET Q q 0 0 0 rg BT 199.89 573.75 Td (fected funds have dif) Tj ET Q q 0 0 0 rg BT 291.99 573.75 Td (ferent fee structures or our employees have invested more ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 561.75 Td (heavily in one fund than another) Tj ET Q q 0 0 0 rg BT 191.78 561.75 Td (. In certain instances, our funds that are registered under the Investment Company ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 549.75 Td (Act may not be able to participate in certain investment opportunities as a result of regulatory restrictions applicable ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 537.75 Td (to companies with multiple types of funds with overlapping investment focuses. ) Tj ET Q q 0 0 0 rg BT 403.52 537.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 453.92 537.75 Td (, dif) Tj ET Q q 0 0 0 rg BT 469.85 537.75 Td (ferent funds that we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 525.75 Td (manage may invest in dif) Tj ET Q q 0 0 0 rg BT 160.43 525.75 Td (ferent parts of the capital structure of the same company) Tj ET Q q 0 0 0 rg BT 409.81 525.75 Td (, and thus the interests of two or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 513.75 Td (more funds may be adverse to each other when the company experiences financial distress, undergoes a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 501.75 Td (restructuring or files for bankruptcy) Tj ET Q q 0 0 0 rg BT 203.21 501.75 Td (. While we have developed general guidelines regarding when two or more ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 489.75 Td (funds may invest in dif) Tj ET Q q 0 0 0 rg BT 148.75 489.75 Td (ferent parts of the same company’) Tj ET Q q 0 0 0 rg BT 299.76 489.75 Td (s capital structure and created a process that we employ to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 477.75 Td (handle such conflicts if they arise, our judgment to permit the investments to occur or our judgment on how to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 465.75 Td (minimize the conflict could be challenged. ) Tj ET Q q 0 0 0 rg BT 239.55 465.75 Td (Another example involves our receipt of material non-public information ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 453.75 Td (regarding potential investments. Normally) Tj ET Q q 0 0 0 rg BT 236.01 453.75 Td (, our receipt of such information restricts all of our investment strategies ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 441.75 Td (from trading in the securities of the applicable issuers. Occasionally) Tj ET Q q 0 0 0 rg BT 349.96 441.75 Td (, one investment group will want to obtain such ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 429.75 Td (information, but another will want to remain free to trade the securities of that issuer and will not want to become ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 417.75 Td (restricted. In such circumstances, we sometimes have to choose which group’) Tj ET Q q 0 0 0 rg BT 397.19 417.75 Td (s preference will prevail, or develop ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 405.75 Td (information barriers between the groups. In these and other circumstances, we seek to resolve the conflict in good ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 393.75 Td (faith and with a view to the best interests of all of our clients, but there can be no assurance that we will make the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 381.75 Td (correct judgment or that our judgment will not be questioned or challenged.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 363.75 Td (Our compliance and legal groups seek to monitor and manage our actual and potential conflicts of interest. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 351.75 Td (W) Tj ET Q q 0 0 0 rg BT 59.26 351.75 Td (e maintain internal controls and various policies and procedures, including oversight, codes of ethics and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 339.75 Td (conduct, compliance systems and communication tools, to identify) Tj ET Q q 0 0 0 rg BT 341.62 339.75 Td (, prevent, mitigate or resolve any conflicts of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 327.75 Td (interest that may arise. Our compliance policies and procedures address a variety of regulatory and compliance ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 315.75 Td (risks, such as the handling of material non-public information, personal securities trading and the allocation of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 303.75 Td (investment opportunities and expenses. Our compliance and legal groups also monitor information barriers that we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 291.75 Td (may establish on a limited basis from time to time between our dif) Tj ET Q q 0 0 0 rg BT 339.39 291.75 Td (ferent investment groups. Notwithstanding these ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 279.75 Td (ef) Tj ET Q q 0 0 0 rg BT 58.16 279.75 Td (forts, it is possible that perceived or actual conflicts could give rise to investor dissatisfaction or litigation or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 267.75 Td (regulatory enforcement actions. ) Tj ET Q q 0 0 0 rg BT 195.08 267.75 Td (Appropriately dealing with conflicts of interest is complex and dif) Tj ET Q q 0 0 0 rg BT 477.82 267.75 Td (ficult, and any ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 255.75 Td (mistake could potentially create liability or damage our reputation. Regulatory scrutiny of, or litigation in connection ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 243.75 Td (with, conflicts of interest could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 303.28 243.75 Td (fect on our reputation, which in turn could materially ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 231.75 Td (adversely af) Tj ET Q q 0 0 0 rg BT 103.74 231.75 Td (fect our business in a number of ways, such as causing investors to redeem their capital \(to the degree ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 219.75 Td (they have that right\), making it harder for us to raise new funds and discouraging others from doing business with ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 207.75 Td (us.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 189.75 Td (The investment management business is intensely competitive.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 171.75 Td (The investment management business is intensely competitive, with competition based on a variety of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 159.75 Td (factors, including investment performance, the quality of service provided to clients, brand recognition and business ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 147.75 Td (reputation. Our investment management business competes for clients, personnel and investment opportunities ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 135.75 Td (with a large number of private equity funds, specialized investment funds, hedge funds, corporate buyers, traditional ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 123.75 Td (investment managers, commercial banks, investment banks, other investment managers and other financial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 111.75 Td (institutions, and we expect that competition will increase. Numerous factors serve to increase our competitive risks, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 99.75 Td (some of which are outside of our control:) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 81.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 81.75 Td (a number of our competitors have more personnel and greater financial, technical, marketing and other ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 69.75 Td (resources than we do, and, in the case of some competitors, longer operating histories, more established ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 57.75 Td (relationships and/or greater experience;) Tj ET Q endstream endobj 63 0 obj <> endobj 64 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (31) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 741.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 741.75 Td (many of our competitors have raised, or are expected to raise, significant amounts of capital, and many of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 729.75 Td (them have investment objectives similar to ours, which may create additional competition for investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 717.75 Td (opportunities and reduce the size and duration of pricing inef) Tj ET Q q 0 0 0 rg BT 359.77 717.75 Td (ficiencies that we seek to exploit; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 699.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 699.75 Td (some of our competitors \(including strategic competitors\) may have a lower cost of capital and access to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 687.75 Td (funding sources that are not available to us, which may create competitive disadvantages for us with ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 675.75 Td (respect to our funds, particularly our funds that directly use leverage or rely on debt financing of their ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 663.75 Td (portfolio companies to generate superior investment returns; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 645.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 645.75 Td (some of our competitors have higher risk tolerances, dif) Tj ET Q q 0 0 0 rg BT 337.49 645.75 Td (ferent risk assessments or lower return thresholds, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 633.75 Td (which could allow them to consider a wider variety of investments and to bid more aggressively than us for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 621.75 Td (investments; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 603.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 603.75 Td (our competitors may be able to achieve synergistic cost savings in respect of an investment that we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 591.75 Td (cannot, which may provide them with a competitive advantage in bidding for an investment; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 573.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 573.75 Td (there are relatively few barriers to entry impeding new investment funds, and the successful ef) Tj ET Q q 0 0 0 rg BT 507.58 573.75 Td (forts of new ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 561.75 Td (entrants into our various lines of business, including major commercial and investment banks and other ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 549.75 Td (financial institutions, have resulted in increased competition; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 531.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 531.75 Td (some investors may prefer to invest with an investment manager whose equity securities are not traded ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 519.75 Td (on a national securities exchange; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 501.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 501.75 Td (some investors may prefer to pursue investments directly instead of investing through one of our funds; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 489.75 Td (and) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 471.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 471.75 Td (other industry participants will from time to time seek to recruit our investment professionals and other ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 459.75 Td (employees away from us. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 441.75 Td (W) Tj ET Q q 0 0 0 rg BT 89.26 441.75 Td (e may find it harder to raise funds, and we may lose investment opportunities in the future, if we do not ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 429.75 Td (match or improve on the fees, structures, products and terms of) Tj ET Q q 0 0 0 rg BT 331.05 429.75 Td (fered by competitors to their fund clients. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 417.75 Td (Alternatively) Tj ET Q q 0 0 0 rg BT 103.73 417.75 Td (, we may experience decreased profitability) Tj ET Q q 0 0 0 rg BT 294.75 417.75 Td (, rates of return and increased risk of loss if we match or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 405.75 Td (improve on the prices, structures, products and terms of) Tj ET Q q 0 0 0 rg BT 297.15 405.75 Td (fered by competitors. ) Tj ET Q q 0 0 0 rg BT 395.90 405.75 Td (This competitive pressure could ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 393.75 Td (adversely af) Tj ET Q q 0 0 0 rg BT 103.74 393.75 Td (fect our ability to make successful investments and limit our ability to raise future funds, either of which ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 381.75 Td (would adversely impact our business, revenues, results of operations and cash flow) Tj ET Q q 0 0 0 rg BT 419.09 381.75 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 363.75 Td (The increasing number of investment managers dedicated to our markets and the increasing amount of ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 351.75 Td (capital available to them have made it more dif) Tj ET Q q 0 0 0 rg BT 271.00 351.75 Td (ficult to identify markets in which to invest, and this could ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 339.75 Td (lead to a decline in our returns on investments.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 321.75 Td (The asset management market has grown at a rapid pace during the last several years, leading to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 309.75 Td (substantial growth in assets under management in our industry) Tj ET Q q 0 0 0 rg BT 327.19 309.75 Td (. Our success in the past has largely been a result ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 297.75 Td (of our ability to identify and exploit non-mainstream markets with the potential for attractive returns. ) Tj ET Q q 0 0 0 rg BT 491.32 297.75 Td (Although ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 285.75 Td (investment managers worldwide have expanded the range of their investments in terms of transaction sizes, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 273.75 Td (industries and geographical regions, there is a finite number of available investment opportunities at any given time. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 261.75 Td (Particularly in strong economic times, the most attractive opportunities generally are pursued by an increasing ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 249.75 Td (number of managers with increasing amounts to invest and, as a result, it is sometimes dif) Tj ET Q q 0 0 0 rg BT 448.33 249.75 Td (ficult for us to identify ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 237.75 Td (markets that are capable of generating attractive investment returns. If we are unable to identify a suf) Tj ET Q q 0 0 0 rg BT 498.95 237.75 Td (ficient number ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 225.75 Td (of attractive investment opportunities in the future, our returns will decline. ) Tj ET Q q 0 0 0 rg BT 381.65 225.75 Td (This development would have an ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 213.75 Td (adverse impact on our ) Tj ET Q q 0 0 0 rg BT 151.17 213.75 Td (AUM and on our results of operations.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 195.75 Td (Poor performance of our funds would cause a decline in our revenues, net income and cash flow and could ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 183.75 Td (adversely af) Tj ET Q q 0 0 0 rg BT 107.64 183.75 Td (fect our ability to raise capital for future funds.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 165.75 Td (When any of our funds perform poorly) Tj ET Q q 0 0 0 rg BT 247.12 165.75 Td (, either by incurring losses or underperforming benchmarks or our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 153.75 Td (competitors, our investment record suf) Tj ET Q q 0 0 0 rg BT 219.89 153.75 Td (fers. Poor investment performance by our funds also adversely af) Tj ET Q q 0 0 0 rg BT 511.51 153.75 Td (fects our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 141.75 Td (incentive income and, all else being equal, may lead to a decline in our ) Tj ET Q q 0 0 0 rg BT 365.20 141.75 Td (AUM, resulting in a reduction of our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 129.75 Td (management fees for certain funds. Moreover) Tj ET Q q 0 0 0 rg BT 254.55 129.75 Td (, in such circumstances, we may experience losses on our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 117.75 Td (investments of our own capital. If a fund performs poorly) Tj ET Q q 0 0 0 rg BT 297.71 117.75 Td (, we will receive little or no incentive income with regard to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 105.75 Td (the fund and little income or possibly losses from our own principal investment in the fund. Poor performance of our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 93.75 Td (funds could also make it more dif) Tj ET Q q 0 0 0 rg BT 196.00 93.75 Td (ficult for us to raise new capital. Investors in our closed-end funds may decline to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 81.75 Td (invest in future closed-end funds we raise, and investors in our open-end and evergreen funds may withdraw their ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 69.75 Td (investments in the funds \(on specified withdrawal dates\) as a result of poor performance. Our investors and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 57.75 Td (potential investors continually assess our funds’) Tj ET Q q 0 0 0 rg BT 260.85 57.75 Td ( performance, both on a standalone basis and relative to market ) Tj ET Q endstream endobj 65 0 obj <> endobj 66 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (32) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (benchmarks and our competitors, and our ability to raise capital for existing and future funds and avoid excessive ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (redemption levels depends on our funds’) Tj ET Q q 0 0 0 rg BT 229.75 729.75 Td ( performance.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 711.75 Td (W) Tj ET Q q 0 0 0 rg BT 59.26 711.75 Td (e may not be able to maintain our current fee structure as a result of industry pressure from clients to ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 699.75 Td (reduce fees, which could have an adverse ef) Tj ET Q q 0 0 0 rg BT 261.02 699.75 Td (fect on our profit margins and results of operations.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 681.75 Td (W) Tj ET Q q 0 0 0 rg BT 89.26 681.75 Td (e may not be able to maintain our current fee structure as a result of industry pressure from clients to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 669.75 Td (reduce fees. ) Tj ET Q q 0 0 0 rg BT 110.04 669.75 Td (Although our investment management fees vary among and within asset classes, historically we have ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 657.75 Td (competed primarily on the basis of our performance and not on the level of our investment management fees ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 645.75 Td (relative to those of our competitors. In recent years, however) Tj ET Q q 0 0 0 rg BT 320.69 645.75 Td (, there has been a general trend toward lower fees in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 633.75 Td (the investment management industry) Tj ET Q q 0 0 0 rg BT 213.23 633.75 Td (, and we have in certain cases lowered the fees we charge in order to remain ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 621.75 Td (competitive. ) Tj ET Q q 0 0 0 rg BT 108.36 621.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 158.76 621.75 Td (, we have af) Tj ET Q q 0 0 0 rg BT 212.50 621.75 Td (forded, and reserve the right in our sole discretion to continue to af) Tj ET Q q 0 0 0 rg BT 506.38 621.75 Td (ford, certain ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 609.75 Td (clients more favorable economic terms, including with respect to management fee rates and carried interest rates, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 597.75 Td (in cases where such clients have committed capital to our funds or strategies that in the aggregate exceeds certain ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 585.75 Td (threshold amounts. In order to maintain our fee structure in a competitive environment, we must be able to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 573.75 Td (continue to provide clients with investment returns and service that incentivize our investors to pay our current fee ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 561.75 Td (rates. W) Tj ET Q q 0 0 0 rg BT 89.82 561.75 Td (e cannot provide any assurance that we will succeed in providing investment returns and service that will ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 549.75 Td (allow us to maintain our current fee structure. Fee reductions on existing or new business could have an adverse ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 537.75 Td (ef) Tj ET Q q 0 0 0 rg BT 58.16 537.75 Td (fect on our profit margins and results of operations. For more information about our fees please see ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 525.75 Td (“Management’) Tj ET Q q 0 0 0 rg BT 113.74 525.75 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 191.56 525.75 Td (Analysis of Financial Condition and Results of Operations.”) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 507.75 Td (W) Tj ET Q q 0 0 0 rg BT 59.26 507.75 Td (e have experienced significant growth in our operations outside the United States, which may place ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 495.75 Td (significant demands on our administrative, operational and financial resources.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 477.75 Td (In recent years, the scope and relative share of our non-U.S. operations have grown significantly) Tj ET Q q 0 0 0 rg BT 505.61 477.75 Td (. ) Tj ET Q q 0 0 0 rg BT 513.39 477.75 Td (As of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 465.75 Td (December 31, 2016, we, our af) Tj ET Q q 0 0 0 rg BT 187.12 465.75 Td (filiates and af) Tj ET Q q 0 0 0 rg BT 245.86 465.75 Td (filiates of our funds had of) Tj ET Q q 0 0 0 rg BT 360.20 465.75 Td (fices in 14 cities outside the United States, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 453.75 Td (housing over one-fifth of our personnel. ) Tj ET Q q 0 0 0 rg BT 229.38 453.75 Td (This rapid growth has placed and may continue to place significant ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 441.75 Td (demands on our business infrastructure. Pursuing investment opportunities outside the United States presents ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 429.75 Td (challenges not faced by U.S. investments, such as dif) Tj ET Q q 0 0 0 rg BT 286.61 429.75 Td (ferent legal and tax regimes and currency fluctuations, which ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 417.75 Td (require additional resources to address. In addition, in conducting business in these jurisdictions, we are often ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 405.75 Td (faced with the challenge of ensuring that our activities are consistent with U.S. or other laws with extraterritorial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 393.75 Td (application, such as the USA) Tj ET Q q 0 0 0 rg BT 177.30 393.75 Td ( P) Tj ET Q q 0 0 0 rg BT 186.01 393.75 Td (A) Tj ET Q q 0 0 0 rg BT 191.93 393.75 Td (TRIOT) Tj ET Q q 0 0 0 rg BT 221.75 393.75 Td ( ) Tj ET Q q 0 0 0 rg BT 223.97 393.75 Td (Act and the U.S. Foreign Corrupt Practices ) Tj ET Q q 0 0 0 rg BT 415.73 393.75 Td (Act \(“FCP) Tj ET Q q 0 0 0 rg BT 458.87 393.75 Td (A”\). Moreover) Tj ET Q q 0 0 0 rg BT 522.22 393.75 Td (, actively ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 381.75 Td (pursuing international investment opportunities may require that we increase the size or number of our international ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 369.75 Td (of) Tj ET Q q 0 0 0 rg BT 58.16 369.75 Td (fices. Pursuing international clients means that we must comply with foreign laws governing the sale of interests ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 357.75 Td (in our funds, dif) Tj ET Q q 0 0 0 rg BT 118.19 357.75 Td (ferent investor reporting and information processes and other requirements. ) Tj ET Q q 0 0 0 rg BT 457.82 357.75 Td (As a result of these ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 345.75 Td (and other challenges, we are required to continuously develop our systems and infrastructure in response to the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 333.75 Td (increasing complexity and sophistication of the investment management market and legal, accounting and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 321.75 Td (regulatory situations. Moreover) Tj ET Q q 0 0 0 rg BT 189.51 321.75 Td (, this growth has required, and will continue to require, us to incur significant ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 309.75 Td (additional expenses and to commit additional senior management and operational resources. ) Tj ET Q q 0 0 0 rg BT 467.29 309.75 Td (There can be no ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 297.75 Td (assurance that we will be able to manage our expanding international operations ef) Tj ET Q q 0 0 0 rg BT 417.28 297.75 Td (fectively or that we will be able ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 285.75 Td (to continue to grow this part of our business, and any failure to do so could adversely af) Tj ET Q q 0 0 0 rg BT 436.16 285.75 Td (fect our ability to generate ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 273.75 Td (revenues and control our expenses.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 255.75 Td (W) Tj ET Q q 0 0 0 rg BT 59.26 255.75 Td (e may enter into new lines of business, make strategic investments or acquisitions or enter into joint ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 243.75 Td (ventures, each of which may result in additional risks and uncertainties for our business.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 225.75 Td (Our operating agreement permits us to enter into new lines of business, make future strategic investments or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 213.75 Td (acquisitions and enter into joint ventures. ) Tj ET Q q 0 0 0 rg BT 236.23 213.75 Td (As we have in the past, and subject to market conditions, we may grow ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 201.75 Td (our business by increasing ) Tj ET Q q 0 0 0 rg BT 170.63 201.75 Td (AUM in existing investment strategies, pursue new investment strategies, which may be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 189.75 Td (similar or complementary to our existing strategies or be wholly new initiatives, or enter into strategic relationships, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 177.75 Td (such as our current relationship with DoubleLine, or joint ventures. In addition, opportunities may arise to acquire ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 165.75 Td (other alternative or traditional investment managers.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 147.75 Td (T) Tj ET Q q 0 0 0 rg BT 85.00 147.75 Td (o the extent we make strategic investments or acquisitions, enter into strategic relationships or joint ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 135.75 Td (ventures or enter into new lines of business, we will face numerous risks and uncertainties, including risks ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 123.75 Td (associated with the required investment of capital and other resources and with combining or integrating operational ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 111.75 Td (and management systems and controls and managing potential conflicts. Entry into certain lines of business may ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 99.75 Td (subject us to new laws and regulations with which we are not familiar) Tj ET Q q 0 0 0 rg BT 354.04 99.75 Td (, or from which we are currently exempt, and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 87.75 Td (may lead to increased litigation and regulatory risk. If a new business generates insuf) Tj ET Q q 0 0 0 rg BT 428.92 87.75 Td (ficient revenues, or produces ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 75.75 Td (investment losses, or if we are unable to ef) Tj ET Q q 0 0 0 rg BT 239.36 75.75 Td (ficiently manage our expanded operations, our results of operations will ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 63.75 Td (be adversely af) Tj ET Q q 0 0 0 rg BT 117.64 63.75 Td (fected, and our reputation and business may be harmed. In the case of joint ventures, we are ) Tj ET Q endstream endobj 67 0 obj <> endobj 68 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (33) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (subject to additional risks and uncertainties in that we may be dependent upon, and subject to liability) Tj ET Q q 0 0 0 rg BT 496.76 741.75 Td (, losses or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (reputational damage relating to, systems, controls and personnel that are not under our control.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 711.75 Td (W) Tj ET Q q 0 0 0 rg BT 59.26 711.75 Td (e may not be successful in expanding into new investment strategies, markets and lines of business.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 693.75 Td (W) Tj ET Q q 0 0 0 rg BT 89.26 693.75 Td (e actively consider the opportunistic expansion of our business, both geographically and into new ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 681.75 Td (investment strategies. For example, in recent years we have focused on expanding into products for real estate, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 669.75 Td (senior loans, listed equities, corporate debt, collateralized loan obligations, infrastructure investments, emerging ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 657.75 Td (market credits and direct lending. ) Tj ET Q q 0 0 0 rg BT 202.30 657.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 252.70 657.75 Td (, we have focused on broadening our distribution channels, including ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 645.75 Td (joint ventures and other strategic partnerships, subadvisory and retail and high net worth of) Tj ET Q q 0 0 0 rg BT 451.72 645.75 Td (ferings. For example, in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 633.75 Td (2014 we launched our first directly advised mutual fund registered under the Investment Company ) Tj ET Q q 0 0 0 rg BT 485.80 633.75 Td (Act. ) Tj ET Q q 0 0 0 rg BT 508.40 633.75 Td (These and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 621.75 Td (other expansion ef) Tj ET Q q 0 0 0 rg BT 132.10 621.75 Td (forts may result in adding personnel and growing investment teams. W) Tj ET Q q 0 0 0 rg BT 446.51 621.75 Td (e may not be successful ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 609.75 Td (in any such attempted expansion. ) Tj ET Q q 0 0 0 rg BT 203.99 609.75 Td (Attempts to expand our business involve a number of special risks, including ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 597.75 Td (some or all of the following:) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 579.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 579.75 Td (the diversion of management’) Tj ET Q q 0 0 0 rg BT 223.01 579.75 Td (s attention from our existing business; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 561.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 561.75 Td (the disruption of our existing business; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 543.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 543.75 Td (potential conflicts of interest with existing products;) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 525.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 525.75 Td (entry into markets or lines of business in which we may have limited or no experience; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 507.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 507.75 Td (exposure to new market risks;) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 489.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 489.75 Td (assumption of liabilities in acquired businesses;) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 471.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 471.75 Td (increased fees and expenses related to outside accounts, tax professionals, legal advisers, consultants ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 459.75 Td (and other service providers;) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 441.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 441.75 Td (increased costs and demands on our operational systems; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 423.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 423.75 Td (potential increase in investor concentration; and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 405.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 405.75 Td (increased risks associated with U.S. or foreign regulatory requirements or conducting operations in foreign ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 393.75 Td (jurisdictions. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 375.75 Td (Because we continuously evaluate potential new investment strategies, geographic markets and lines of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 363.75 Td (business, we cannot identify all the risks we may face and the potential adverse consequences on us that may ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 351.75 Td (result from any attempted expansion.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 333.75 Td (W) Tj ET Q q 0 0 0 rg BT 59.26 333.75 Td (e often pursue investment opportunities that involve business, regulatory) Tj ET Q q 0 0 0 rg BT 408.95 333.75 Td (, legal or other complexities.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 315.75 Td (W) Tj ET Q q 0 0 0 rg BT 89.26 315.75 Td (e often pursue unusually complex investment opportunities involving substantial business, regulatory or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 303.75 Td (legal complexity that would deter other investment managers. Our tolerance for complexity presents risks, as such ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 291.75 Td (transactions can be more dif) Tj ET Q q 0 0 0 rg BT 175.44 291.75 Td (ficult, expensive and time-consuming to finance and execute; it can be more dif) Tj ET Q q 0 0 0 rg BT 524.90 291.75 Td (ficult to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 279.75 Td (manage or realize value from the assets acquired in such transactions; and such transactions sometimes entail a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 267.75 Td (higher level of regulatory scrutiny or a greater risk of contingent liabilities. ) Tj ET Q q 0 0 0 rg BT 377.94 267.75 Td (Any of these risks could harm the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 255.75 Td (performance of our funds.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 237.75 Td (Extensive regulation in the United States and abroad af) Tj ET Q q 0 0 0 rg BT 312.09 237.75 Td (fects our activities and creates the potential for ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 225.75 Td (significant liabilities and penalties that could adversely af) Tj ET Q q 0 0 0 rg BT 323.23 225.75 Td (fect our business and results of operations.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 207.75 Td (Potential regulatory action poses a significant risk to our reputation and our business. Our business is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 195.75 Td (subject to extensive regulation in the United States and in the other countries in which our investment activities ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 183.75 Td (occur) Tj ET Q q 0 0 0 rg BT 73.90 183.75 Td (, including periodic examinations, inquiries and investigations by governmental and self-regulatory ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 171.75 Td (organizations in the jurisdictions in which we operate around the world. Many of these regulators, including U.S. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 159.75 Td (federal and state and foreign government agencies and self-regulatory organizations, are empowered to impose ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 147.75 Td (fines, suspensions of personnel or other sanctions, including censure, the issuance of cease-and-desist orders or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 135.75 Td (the suspension or expulsion of applicable licenses and memberships. Even if an investigation did not result in a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 123.75 Td (sanction, or the sanction imposed against us or our personnel were small in monetary amount, adverse publicity ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 111.75 Td (relating to the investigation could harm our reputation and cause us to lose existing investors or fail to gain new ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 99.75 Td (investors.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 81.75 Td (The SEC oversees the activities of our subsidiary Oaktree Capital Management, L.P) Tj ET Q q 0 0 0 rg BT 456.56 81.75 Td (. as a registered ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 69.75 Td (investment adviser under the ) Tj ET Q q 0 0 0 rg BT 180.63 69.75 Td (Advisers ) Tj ET Q q 0 0 0 rg BT 221.20 69.75 Td (Act, and the activities of certain mutual funds registered under the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 57.75 Td (Investment Company ) Tj ET Q q 0 0 0 rg BT 146.71 57.75 Td (Act that are advised or sub-advised by us. In particular) Tj ET Q q 0 0 0 rg BT 390.18 57.75 Td (, the SEC and its staf) Tj ET Q q 0 0 0 rg BT 483.93 57.75 Td (f have focused ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 45.75 Td (on issues relevant to alternative asset management firms in recent years, including by forming specialized units ) Tj ET Q endstream endobj 69 0 obj <> endobj 70 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (34) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (devoted to examining such firms and, in certain cases, bringing enforcement actions against such firms, their ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (principals and their employees. Recently) Tj ET Q q 0 0 0 rg BT 231.57 729.75 Td (, the SEC has announced that the 2017 examination priorities for the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (Of) Tj ET Q q 0 0 0 rg BT 60.38 717.75 Td (fice of Compliance Inspections and Examinations \(“OCIE”\) include such items as cybersecurity compliance and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 705.75 Td (controls, how investment advisers are fulfilling their fiduciary duties and managing conflicts of interest with respect ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 693.75 Td (to public pension plan investors, and continuing their oversight of private fund advisers, focusing substantially on ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 681.75 Td (concerns related to transparency and disclosure practices. ) Tj ET Q q 0 0 0 rg BT 313.47 681.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 363.87 681.75 Td (, the CFTC and the NF) Tj ET Q q 0 0 0 rg BT 464.47 681.75 Td (A) Tj ET Q q 0 0 0 rg BT 470.59 681.75 Td ( oversee the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 669.75 Td (activities of Oaktree Capital Management, L.P) Tj ET Q q 0 0 0 rg BT 252.14 669.75 Td (. as a registered commodity pool operator \(“CPO”\) and commodity ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 657.75 Td (trading adviser \(“CT) Tj ET Q q 0 0 0 rg BT 137.62 657.75 Td (A”\) under the Commodity Exchange ) Tj ET Q q 0 0 0 rg BT 298.81 657.75 Td (Act. ) Tj ET Q q 0 0 0 rg BT 321.41 657.75 Td (The SEC and FINRA) Tj ET Q q 0 0 0 rg BT 413.67 657.75 Td ( oversee the activities of our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 645.75 Td (subsidiary OCM Investments, LLC as a registered broker-dealer) Tj ET Q q 0 0 0 rg BT 332.34 645.75 Td (. In addition, we regularly rely on exemptions from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 633.75 Td (various requirements of the Securities ) Tj ET Q q 0 0 0 rg BT 220.08 633.75 Td (Act, the Exchange ) Tj ET Q q 0 0 0 rg BT 303.47 633.75 Td (Act, the Investment Company ) Tj ET Q q 0 0 0 rg BT 436.87 633.75 Td (Act, the Commodity ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 621.75 Td (Exchange ) Tj ET Q q 0 0 0 rg BT 96.70 621.75 Td (Act and the U.S. Employee Retirement Income Security ) Tj ET Q q 0 0 0 rg BT 345.15 621.75 Td (Act of 1974 \(“ERISA”\). ) Tj ET Q q 0 0 0 rg BT 450.00 621.75 Td (These exemptions are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 609.75 Td (sometimes highly complex and may in certain circumstances depend on compliance by third parties whom we do ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 597.75 Td (not control. If for any reason these exemptions were to be revoked or challenged or otherwise become unavailable ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 585.75 Td (to us, we could be subject to regulatory action or third-party claims, and our business could be materially and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 573.75 Td (adversely af) Tj ET Q q 0 0 0 rg BT 103.74 573.75 Td (fected.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 555.75 Td (W) Tj ET Q q 0 0 0 rg BT 95.26 555.75 Td (e have and may become subject to additional regulatory and compliance burdens as we expand our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 543.75 Td (product of) Tj ET Q q 0 0 0 rg BT 94.29 543.75 Td (ferings and investment platform. In 2014, we launched our first directly advised mutual funds, which are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 531.75 Td (subject to the rules and regulations applicable to investment companies under the Investment Company ) Tj ET Q q 0 0 0 rg BT 510.83 531.75 Td (Act. W) Tj ET Q q 0 0 0 rg BT 542.87 531.75 Td (e ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 519.75 Td (are required to invest our mutual funds’) Tj ET Q q 0 0 0 rg BT 223.06 519.75 Td ( assets in accordance with limitations under the Investment Company ) Tj ET Q q 0 0 0 rg BT 532.10 519.75 Td (Act ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 507.75 Td (and applicable provisions of the Internal Revenue Code of 1986 \(the “Code”\). In addition, we are required to file ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 495.75 Td (periodic and annual reports with the SEC and may also be required to comply with the applicable provisions of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 483.75 Td (Sarbanes-Oxley ) Tj ET Q q 0 0 0 rg BT 123.93 483.75 Td (Act of 2002 \(the “Sarbanes-Oxley ) Tj ET Q q 0 0 0 rg BT 274.56 483.75 Td (Act”\). Furthermore, advisers to mutual funds have a fiduciary ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 471.75 Td (duty under the Investment Company ) Tj ET Q q 0 0 0 rg BT 213.43 471.75 Td (Act not to charge excessive compensation, and the Investment Company ) Tj ET Q q 0 0 0 rg BT 539.17 471.75 Td (Act ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 459.75 Td (grants shareholders of mutual funds a direct private right of action against investment advisers to seek redress for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 447.75 Td (alleged violations of this fiduciary duty) Tj ET Q q 0 0 0 rg BT 217.13 447.75 Td (. ) Tj ET Q q 0 0 0 rg BT 224.91 447.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 275.31 447.75 Td (, in 2015 an indirect subsidiary of ours registered as an ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 435.75 Td (alternative investment fund manager \(“AIFM”\) in Luxembourg pursuant to the European Union ) Tj ET Q q 0 0 0 rg BT 467.45 435.75 Td (Alternative ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 423.75 Td (Investment Fund Managers Directive \(the “Directive”\). Such registration carries additional legal and compliance ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 411.75 Td (costs, as well as additional operating requirements that may also increase costs \(for instance, the requirement that ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 399.75 Td (funds of) Tj ET Q q 0 0 0 rg BT 85.40 399.75 Td (fered pursuant to the directive retain an independent depository regulated by the EU\). ) Tj ET Q q 0 0 0 rg BT 468.79 399.75 Td (These requirements ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 387.75 Td (could increase our compliance costs and create the potential for additional liabilities and penalties if we fail to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 375.75 Td (comply with the applicable rules and regulations.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 357.75 Td (Each of the regulatory bodies with jurisdiction over us has regulatory powers dealing with many aspects of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 345.75 Td (financial services, including the authority to grant, and in specific circumstances to cancel, permissions to carry on ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 333.75 Td (particular activities. ) Tj ET Q q 0 0 0 rg BT 140.03 333.75 Td (A) Tj ET Q q 0 0 0 rg BT 146.15 333.75 Td ( failure to comply with the obligations imposed by the ) Tj ET Q q 0 0 0 rg BT 382.39 333.75 Td (Advisers ) Tj ET Q q 0 0 0 rg BT 422.96 333.75 Td (Act, including recordkeeping, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 321.75 Td (custody) Tj ET Q q 0 0 0 rg BT 83.72 321.75 Td (, advertising and operating requirements, disclosure obligations and prohibitions on fraudulent activities, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 309.75 Td (could result in investigations, sanctions and reputational damage. Similarly) Tj ET Q q 0 0 0 rg BT 381.66 309.75 Td (, a failure to comply with the obligations ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 297.75 Td (imposed by the Commodity Exchange ) Tj ET Q q 0 0 0 rg BT 220.64 297.75 Td (Act, including recordkeeping, reporting requirements, disclosure obligations ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 285.75 Td (and prohibitions on fraudulent activities, could also result in investigations, sanctions and reputational damage. W) Tj ET Q q 0 0 0 rg BT 553.45 285.75 Td (e ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 273.75 Td (are involved regularly in trading activities that implicate a broad number of U.S. securities law regimes, including ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 261.75 Td (laws governing trading on inside information, market manipulation and a broad number of technical trading ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 249.75 Td (requirements that implicate fundamental market regulation policies. V) Tj ET Q q 0 0 0 rg BT 358.86 249.75 Td (iolation of these laws could result in severe ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 237.75 Td (restrictions on our activities and damage to our reputation.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 219.75 Td (Our failure to comply with applicable laws or regulations could result in fines, censure, suspensions of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 207.75 Td (personnel or other sanctions, including revocation of the registration of our relevant subsidiary as an investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 195.75 Td (adviser) Tj ET Q q 0 0 0 rg BT 81.68 195.75 Td (, commodity pool operator) Tj ET Q q 0 0 0 rg BT 196.74 195.75 Td (, commodity trading adviser or registered broker-dealer) Tj ET Q q 0 0 0 rg BT 439.63 195.75 Td (. ) Tj ET Q q 0 0 0 rg BT 447.78 195.75 Td (The regulations to which ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 183.75 Td (our business is subject are designed primarily to protect investors in our funds and to ensure the integrity of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 171.75 Td (financial markets. ) Tj ET Q q 0 0 0 rg BT 133.18 171.75 Td (They are not designed to protect our Class ) Tj ET Q q 0 0 0 rg BT 324.40 171.75 Td (A) Tj ET Q q 0 0 0 rg BT 330.52 171.75 Td ( unitholders. Even if a sanction imposed against us, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 159.75 Td (one of our subsidiaries or our personnel by a regulator is for a small monetary amount, the adverse publicity related ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 147.75 Td (to the sanction could harm our reputation, which in turn could materially adversely af) Tj ET Q q 0 0 0 rg BT 422.24 147.75 Td (fect our business in a number ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 135.75 Td (of ways, such as causing investors to redeem their capital \(to the degree they have that right\), making it harder for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 123.75 Td (us to raise new funds and discouraging others from doing business with us.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 105.75 Td (Some of our funds invest in businesses that operate in highly regulated industries, including businesses ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 93.75 Td (that are regulated by the U.S. Federal Communications Commission, the U.S. Federal Energy Regulatory ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 81.75 Td (Commission, U.S. federal and state banking authorities and U.S. state gaming authorities. ) Tj ET Q q 0 0 0 rg BT 452.81 81.75 Td (The regulatory regimes ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 69.75 Td (to which such businesses are subject may) Tj ET Q q 0 0 0 rg BT 236.02 69.75 Td (, among other things, condition our funds’) Tj ET Q q 0 0 0 rg BT 419.09 69.75 Td ( ability to invest in those ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 57.75 Td (businesses upon the satisfaction of applicable ownership restrictions or qualification requirements or) Tj ET Q q 0 0 0 rg BT 492.47 57.75 Td (, absent any ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 45.75 Td (applicable exemption, require us or our subsidiaries to comply with registration, reporting or other requirements. ) Tj ET Q endstream endobj 71 0 obj <> endobj 72 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (35) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Moreover) Tj ET Q q 0 0 0 rg BT 91.68 741.75 Td (, our failure to obtain or maintain any regulatory approvals necessary for our funds to invest in such ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (industries may disqualify our funds from participating in certain investments or require our funds to divest ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (themselves of certain assets.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 699.75 Td (W) Tj ET Q q 0 0 0 rg BT 59.26 699.75 Td (e and our af) Tj ET Q q 0 0 0 rg BT 115.75 699.75 Td (filiates from time to time are required to report specified dealings or transactions involving ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 687.75 Td (Iran or other sanctioned individuals or entities.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 669.75 Td (The Iran ) Tj ET Q q 0 0 0 rg BT 125.84 669.75 Td (Threat Reduction and Syrian Human Rights ) Tj ET Q q 0 0 0 rg BT 321.50 669.75 Td (Act of 2012 \(“ITRSHRA”\) expanded the scope of U.S. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 657.75 Td (sanctions against Iran. Section 219 of ITRSHRA) Tj ET Q q 0 0 0 rg BT 265.67 657.75 Td ( amended the Exchange ) Tj ET Q q 0 0 0 rg BT 376.31 657.75 Td (Act to require public reporting companies ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 645.75 Td (to disclose in their annual or quarterly reports any dealings or transactions the company or its af) Tj ET Q q 0 0 0 rg BT 472.82 645.75 Td (filiates engaged in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 633.75 Td (during the previous reporting period involving Iran or other individuals and entities targeted by certain OF) Tj ET Q q 0 0 0 rg BT 511.93 633.75 Td (AC ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 621.75 Td (sanctions. In some cases, ITRSHRA) Tj ET Q q 0 0 0 rg BT 213.95 621.75 Td ( requires companies to disclose these types of transactions even if they were ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 609.75 Td (permissible under U.S. law or were conducted outside of the United States by a foreign af) Tj ET Q q 0 0 0 rg BT 445.59 609.75 Td (filiate. Disclosure of such ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 597.75 Td (activity) Tj ET Q q 0 0 0 rg BT 79.82 597.75 Td (, even if such activity is not subject to sanctions under applicable law) Tj ET Q q 0 0 0 rg BT 382.76 597.75 Td (, and any sanctions actually imposed on ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 585.75 Td (us or our af) Tj ET Q q 0 0 0 rg BT 100.40 585.75 Td (filiates as a result of these activities, could harm our reputation and have a negative impact on our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 573.75 Td (business.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 555.75 Td (Regulatory changes in the United States, regulatory compliance failures and the ef) Tj ET Q q 0 0 0 rg BT 442.13 555.75 Td (fects of negative ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 543.75 Td (publicity surrounding the financial industry in general could adversely af) Tj ET Q q 0 0 0 rg BT 396.00 543.75 Td (fect our reputation, business and ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 531.75 Td (operations.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 513.75 Td (As a result of global market disruption as well as highly publicized financial scandals in recent years, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 501.75 Td (regulators and investors have expressed concerns over the integrity of the U.S. financial markets, and the business ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 489.75 Td (in which we operate both in and outside the United States will be subject to new or additional regulations. W) Tj ET Q q 0 0 0 rg BT 528.99 489.75 Td (e may ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 477.75 Td (be adversely af) Tj ET Q q 0 0 0 rg BT 117.64 477.75 Td (fected as a result of new or revised legislation or regulations imposed by the SEC, the CFTC or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 465.75 Td (other U.S. governmental regulatory authorities or self-regulatory organizations that supervise the financial markets. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 453.75 Td (W) Tj ET Q q 0 0 0 rg BT 59.26 453.75 Td (e also may be adversely af) Tj ET Q q 0 0 0 rg BT 178.03 453.75 Td (fected by changes in the interpretation or enforcement of existing laws and rules by ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 441.75 Td (these governmental authorities and self-regulatory organizations. For example, in recent years senior of) Tj ET Q q 0 0 0 rg BT 510.62 441.75 Td (ficials at ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 429.75 Td (the SEC have shown a willingness to pursue even violations that could be viewed as minor on the theory that ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 417.75 Td (publicly pursuing smaller matters will reduce the prevalence of larger matters. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 399.75 Td (The Dodd-Frank W) Tj ET Q q 0 0 0 rg BT 164.65 399.75 Td (all Street Reform and Consumer Protection ) Tj ET Q q 0 0 0 rg BT 358.08 399.75 Td (Act \(the “Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 453.67 399.75 Td (Act”\), enacted in 2010, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 387.75 Td (has imposed significant changes on nearly every aspect of the U.S. financial services industry) Tj ET Q q 0 0 0 rg BT 463.92 387.75 Td (, including oversight ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 375.75 Td (and regulation of systemic market risk \(including the power to liquidate certain institutions\); authorization of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 363.75 Td (Federal Reserve to regulate nonbank institutions that are deemed systemically important; generally prohibiting ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 351.75 Td (insured depository institutions, insured depository institution holding companies and their subsidiaries and af) Tj ET Q q 0 0 0 rg BT 527.88 351.75 Td (filiates ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 339.75 Td (from conducting proprietary trading and investing in or sponsoring certain private equity funds and hedge funds; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 327.75 Td (and imposing new registration, recordkeeping and reporting requirements on private fund investment advisers. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 315.75 Td (While we already have one subsidiary registered as an investment adviser subject to SEC examinations and as a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 303.75 Td (CPO and CT) Tj ET Q q 0 0 0 rg BT 106.50 303.75 Td (A) Tj ET Q q 0 0 0 rg BT 112.62 303.75 Td ( subject to CFTC regulation and another subsidiary registered as a broker-dealer subject to FINRA) Tj ET Q q 0 0 0 rg BT 547.28 303.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 291.75 Td (examinations, the imposition of any additional legal or regulatory requirements could make compliance more ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 279.75 Td (dif) Tj ET Q q 0 0 0 rg BT 60.38 279.75 Td (ficult and expensive, af) Tj ET Q q 0 0 0 rg BT 161.93 279.75 Td (fect the manner in which we conduct our business and adversely af) Tj ET Q q 0 0 0 rg BT 459.14 279.75 Td (fect our profitability) Tj ET Q q 0 0 0 rg BT 542.32 279.75 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 261.75 Td (The Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 155.03 261.75 Td (Act established a ten-member Financial Stability Oversight Council \(the “Council”\), an ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 249.75 Td (interagency body chaired by the Secretary of the ) Tj ET Q q 0 0 0 rg BT 267.72 249.75 Td (T) Tj ET Q q 0 0 0 rg BT 273.46 249.75 Td (reasury) Tj ET Q q 0 0 0 rg BT 306.06 249.75 Td (, to identify and manage systemic risk in the financial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 237.75 Td (system and improve interagency cooperation. Under the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 359.05 237.75 Td (Act, the Council has the authority to review ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 225.75 Td (the activities of certain nonbank financial firms engaged in financial activities that are designated as “systemically ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 213.75 Td (important,” meaning, among other things, that the distress of the financial firm would threaten the stability of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 201.75 Td (U.S. economy) Tj ET Q q 0 0 0 rg BT 112.06 201.75 Td (. ) Tj ET Q q 0 0 0 rg BT 120.21 201.75 Td (T) Tj ET Q q 0 0 0 rg BT 125.21 201.75 Td (o date, the Council has designated four nonbank financial companies for Federal Reserve ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 189.75 Td (supervision. While no asset managers have been designated to date, on December 18, 2014, the Council released ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 177.75 Td (a notice seeking public comment on the potential risks posed by aspects of the asset management industry) Tj ET Q q 0 0 0 rg BT 522.86 177.75 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 165.75 Td (including whether asset management products and activities may pose potential risks to the U.S. financial system in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 153.75 Td (the areas of liquidity and redemptions, leverage, operational functions and resolution, or in other areas. On ) Tj ET Q q 0 0 0 rg BT 525.84 153.75 Td (April ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 141.75 Td (18, 2016, the Council released an update on its multi-year review of asset management products and activities and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 129.75 Td (created an interagency working group to assess potential risks associated with certain leveraged funds. If we were ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 117.75 Td (ever designated, it would result in increased regulation of our business, including higher standards on capital, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 105.75 Td (leverage, liquidity) Tj ET Q q 0 0 0 rg BT 126.52 105.75 Td (, risk management, credit exposure reporting and concentration limits, restrictions on acquisitions ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 93.75 Td (and annual stress tests by the Federal Reserve.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 75.75 Td (On December 10, 2013, the Federal Reserve and other federal regulatory agencies issued final rules ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 63.75 Td (implementing a section of the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 237.88 63.75 Td (Act that has become known as the “V) Tj ET Q q 0 0 0 rg BT 402.97 63.75 Td (olcker Rule.” ) Tj ET Q q 0 0 0 rg BT 464.47 63.75 Td (The V) Tj ET Q q 0 0 0 rg BT 490.60 63.75 Td (olcker Rule ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 51.75 Td (generally prohibits depository institution holding companies \(including foreign banks with U.S. branches, agencies ) Tj ET Q endstream endobj 73 0 obj <> endobj 74 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (36) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (or commercial lending companies and insurance companies with U.S. depository institution subsidiaries\), insured ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (depository institutions and subsidiaries and af) Tj ET Q q 0 0 0 rg BT 251.61 729.75 Td (filiates of such entities from investing in or sponsoring private equity ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (funds or hedge funds and from engaging in certain other proprietary activities. When the V) Tj ET Q q 0 0 0 rg BT 450.79 717.75 Td (olcker Rule became ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 705.75 Td (ef) Tj ET Q q 0 0 0 rg BT 58.16 705.75 Td (fective on July 21, 2012, it kicked of) Tj ET Q q 0 0 0 rg BT 215.84 705.75 Td (f a two-year conformance period, which was set to expire on July 21, 2014. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 693.75 Td (However) Tj ET Q q 0 0 0 rg BT 88.91 693.75 Td (, in conjunction with the release of the final rules on December 10, 2013, the Federal Reserve issued an ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 681.75 Td (order granting an industry-wide, one-year extension for all banking entities. ) Tj ET Q q 0 0 0 rg BT 385.75 681.75 Td (As a result, banking entities were ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 669.75 Td (required to have wound down, sold, transferred or otherwise conformed their investments and sponsorship activities ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 657.75 Td (to the V) Tj ET Q q 0 0 0 rg BT 83.92 657.75 Td (olcker Rule by July 21, 2015, absent an extension to the conformance period by the Federal Reserve or an ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 645.75 Td (exemption for certain “permitted activities.” ) Tj ET Q q 0 0 0 rg BT 243.78 645.75 Td (The Federal Reserve has granted a series of extensions that give ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 633.75 Td (banking entities until July 21, 2017 to conform their activities in respect of investments in and relationships with ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 621.75 Td (certain funds that were in place prior to the adoption of the V) Tj ET Q q 0 0 0 rg BT 316.84 621.75 Td (olcker Rule. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 603.75 Td (Pursuant to the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 205.63 603.75 Td (Act, the SEC adopted a rule requiring investment advisers registered or required ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 591.75 Td (to register with the SEC under the ) Tj ET Q q 0 0 0 rg BT 202.30 591.75 Td (Advisers ) Tj ET Q q 0 0 0 rg BT 242.88 591.75 Td (Act that advise one or more private funds and have at least $150 million ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 579.75 Td (in private fund ) Tj ET Q q 0 0 0 rg BT 115.04 579.75 Td (AUM to periodically file reports on Form PF) Tj ET Q q 0 0 0 rg BT 305.11 579.75 Td (. Under the rule, large private fund investment advisers, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 567.75 Td (or advisers with at least $1.5 billion in ) Tj ET Q q 0 0 0 rg BT 217.87 567.75 Td (AUM attributable to hedge funds and advisers with at least $2.0 billion in ) Tj ET Q q 0 0 0 rg BT 539.73 567.75 Td (AUM ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 555.75 Td (attributable to private equity funds, are subject to more detailed and in certain cases more frequent reporting ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 543.75 Td (requirements. ) Tj ET Q q 0 0 0 rg BT 116.14 543.75 Td (As a result of this rule we file quarterly reports on Form PF) Tj ET Q q 0 0 0 rg BT 373.46 543.75 Td (, which has resulted in substantial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 531.75 Td (administrative costs and requires a significant amount of attention and time to be spent by our personnel.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 513.75 Td (In addition, the CFTC repealed CFTC Regulation 4.13\(a\)\(4\), an exemption from registration as a CPO on ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 501.75 Td (which we previously relied in operating our funds. ) Tj ET Q q 0 0 0 rg BT 273.46 501.75 Td (As a result, one of our subsidiaries, Oaktree Capital ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 489.75 Td (Management, L.P) Tj ET Q q 0 0 0 rg BT 127.65 489.75 Td (., has registered with the CFTC as a CPO and CT) Tj ET Q q 0 0 0 rg BT 346.99 489.75 Td (A) Tj ET Q q 0 0 0 rg BT 353.11 489.75 Td ( with respect to the management of our funds. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 477.75 Td (In connection with such registrations, we also rely on the CFTC Regulation 4.7 exemption, which provides a CPO ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 465.75 Td (and a CT) Tj ET Q q 0 0 0 rg BT 90.39 465.75 Td (A) Tj ET Q q 0 0 0 rg BT 96.51 465.75 Td ( relief from certain of the Commodity Exchange ) Tj ET Q q 0 0 0 rg BT 307.16 465.75 Td (Act’) Tj ET Q q 0 0 0 rg BT 323.65 465.75 Td (s disclosure, reporting and recordkeeping ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 453.75 Td (requirements applicable to CPOs and CT) Tj ET Q q 0 0 0 rg BT 231.57 453.75 Td (As, subject to certain conditions. ) Tj ET Q q 0 0 0 rg BT 380.35 453.75 Td (The operators of funds relying upon the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 441.75 Td (exemption provided by CFTC Regulation 4.7, unlike a fully-registered CPO, will not be required to file any of) Tj ET Q q 0 0 0 rg BT 526.17 441.75 Td (fering ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 429.75 Td (memorandum with the CFTC, and the CFTC will not pass upon the merits of participating in a pool or upon the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 417.75 Td (adequacy of accuracy of an of) Tj ET Q q 0 0 0 rg BT 183.24 417.75 Td (fering memorandum. Nonetheless, CPOs and CT) Tj ET Q q 0 0 0 rg BT 403.70 417.75 Td (As that qualify for relief under ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 405.75 Td (Regulation 4.7 remain subject to certain disclosure, reporting and recordkeeping requirements that could adversely ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 393.75 Td (af) Tj ET Q q 0 0 0 rg BT 58.16 393.75 Td (fect our ability to implement our investment program, conduct our operations and/or achieve our objectives and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 381.75 Td (subject us to certain additional costs, expenses and administrative burdens. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 363.75 Td (For some of our other funds that trade in commodity interests, we rely on the de minimis exemption provided ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 351.75 Td (by CFTC Regulation 4.13\(a\)\(3\). For those funds that rely upon the exemption provided by CFTC Regulation 4.13) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 339.75 Td (\(a\)\(3\), unlike pools operated on a registered basis as a CPO by the CFTC, the operators of such pools are not ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 327.75 Td (required to provide prospective investors with a CFTC compliant disclosure document, nor are the operators ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 315.75 Td (required to provide participants with periodic account statements or certified annual reports that satisfy the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 303.75 Td (requirements of CFTC rules applicable to registered CPOs.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 285.75 Td (However) Tj ET Q q 0 0 0 rg BT 118.91 285.75 Td (, these funds are subject to certain limits on their ability to use commodity futures \(which include ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 273.75 Td (futures on broad-based securities indexes and interest rate futures\) or options on commodity futures, engage in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 261.75 Td (swaps transactions or make certain other investments \(whether directly or indirectly through investments in other ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 249.75 Td (investment vehicles\). If our funds do not continue to claim the exclusion, they would likely become subject to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 237.75 Td (registration and regulation as commodity pool operators. ) Tj ET Q q 0 0 0 rg BT 304.58 237.75 Td (As a result, we may incur additional expenses as a result ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 225.75 Td (of the CFTC’) Tj ET Q q 0 0 0 rg BT 106.50 225.75 Td (s registration and regulatory requirements.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 207.75 Td (Certain mutual funds advised by us also rely on the exemption provided by CFTC Regulation 4.5, which ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 195.75 Td (provides a CPO and a CT) Tj ET Q q 0 0 0 rg BT 163.75 195.75 Td (A) Tj ET Q q 0 0 0 rg BT 169.87 195.75 Td ( relief from the obligation to provide prospective investors with a CFTC compliant ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 183.75 Td (disclosure document, periodic account statements or certified annual reports that satisfy the requirements of CFTC ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 171.75 Td (rules applicable to registered CPOs.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 153.75 Td (In the event we determine to cease or to limit investing in swaps or other assets rather than subjecting ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 141.75 Td (ourselves to all of the regulations of the CFTC, our ability to implement our investment objectives for our funds and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 129.75 Td (to hedge risks associated with our funds’) Tj ET Q q 0 0 0 rg BT 229.73 129.75 Td ( investments and operations may be materially impaired. Furthermore, the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 117.75 Td (CFTC has substantial enforcement power with respect to violations of the laws over which it has jurisdiction, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 105.75 Td (including their anti-fraud and anti-manipulation provisions. ) Tj ET Q q 0 0 0 rg BT 310.71 105.75 Td (Among other things, the CFTC may suspend or revoke ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 93.75 Td (the registration of a person who fails to comply) Tj ET Q q 0 0 0 rg BT 255.47 93.75 Td (, prohibit such a person from trading or doing business with ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 81.75 Td (registered entities, impose civil money penalties, require restitution and seek fines or imprisonment for criminal ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 69.75 Td (violations. ) Tj ET Q q 0 0 0 rg BT 99.47 69.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 149.87 69.75 Td (, a private right of action exists against those who violate the laws over which the CFTC has ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 57.75 Td (jurisdiction or who willfully aid, abet, counsel, induce or procure a violation of those laws. In the event our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 45.75 Td (registration with the CFTC as a CPO or CT) Tj ET Q q 0 0 0 rg BT 239.31 45.75 Td (A) Tj ET Q q 0 0 0 rg BT 245.43 45.75 Td ( is rescinded or restricted and we are unable to rely on an exemption ) Tj ET Q endstream endobj 75 0 obj <> endobj 76 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (37) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (from registration or we otherwise fail to comply with the regulatory requirements of these rules, we may be unable ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (to use certain types of hedging instruments or may be subject to significant fines, penalties and other civil or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (governmental actions or proceedings, any of which could have a materially adverse ef) Tj ET Q q 0 0 0 rg BT 429.47 717.75 Td (fect on our business, financial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 705.75 Td (condition and results of operations.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 687.75 Td (In addition, pursuant to the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 256.22 687.75 Td (Act, the SEC and other federal regulatory agencies have issued final ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 675.75 Td (rules requiring managers of CLOs to retain at least 5% of the credit risk in each CLO they manage \(the “U.S. Risk ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 663.75 Td (Retention Rules”\). ) Tj ET Q q 0 0 0 rg BT 135.97 663.75 Td (Therefore, the U.S. Risk Retention Rules, which came fully into ef) Tj ET Q q 0 0 0 rg BT 425.91 663.75 Td (fect in December 2016, will ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 651.75 Td (require us to contribute a minimum level of capital to our CLOs. ) Tj ET Q q 0 0 0 rg BT 334.95 651.75 Td (The U.S. Risk Retention Rules could result in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 639.75 Td (reduced CLO origination activity by us, result in increased investment by us in our CLOs and could adversely af) Tj ET Q q 0 0 0 rg BT 541.73 639.75 Td (fect ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 627.75 Td (the market for CLOs more generally) Tj ET Q q 0 0 0 rg BT 208.21 627.75 Td (, which could adversely af) Tj ET Q q 0 0 0 rg BT 322.53 627.75 Td (fect the performance and prospects for our CLO ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 615.75 Td (activity) Tj ET Q q 0 0 0 rg BT 79.82 615.75 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 597.75 Td (It is dif) Tj ET Q q 0 0 0 rg BT 108.72 597.75 Td (ficult to determine the full extent of the impact on us of the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 422.77 597.75 Td (Act or any other new laws, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 585.75 Td (regulations or initiatives that may be proposed or whether any of the proposals will become law) Tj ET Q q 0 0 0 rg BT 469.12 585.75 Td (. ) Tj ET Q q 0 0 0 rg BT 476.90 585.75 Td (Any changes in the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 573.75 Td (regulatory framework applicable to our business, including the changes described above, may impose additional ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 561.75 Td (costs on us, require the attention of our senior management or result in limitations on the manner in which we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 549.75 Td (conduct our business. Moreover) Tj ET Q q 0 0 0 rg BT 194.52 549.75 Td (, as calls for additional regulation have increased, there may be a related increase ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 537.75 Td (in regulatory investigations of the trading and other investment activities of alternative asset management funds, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 525.75 Td (including our funds. In addition, we may be adversely af) Tj ET Q q 0 0 0 rg BT 298.85 525.75 Td (fected by changes in the interpretation or enforcement of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 513.75 Td (existing laws and rules by these governmental authorities and self-regulatory organizations. Compliance with any ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 501.75 Td (new laws or regulations could make compliance more dif) Tj ET Q q 0 0 0 rg BT 300.49 501.75 Td (ficult and expensive, af) Tj ET Q q 0 0 0 rg BT 402.04 501.75 Td (fect the manner in which we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 489.75 Td (conduct our business and adversely af) Tj ET Q q 0 0 0 rg BT 220.48 489.75 Td (fect our profitability) Tj ET Q q 0 0 0 rg BT 303.66 489.75 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 471.75 Td (The results of the recent U.S. elections may create regulatory uncertainty for the financial sector and may ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 459.75 Td (adversely af) Tj ET Q q 0 0 0 rg BT 107.64 459.75 Td (fect our business, financial condition and results of operations.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.50 441.75 Td (The current regulatory environment in the United States may be impacted by future legislative ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 429.75 Td (developments, such as amendments to key provisions of the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 375.72 429.75 Td (Act. On January 20, 2017, Donald ) Tj ET Q q 0 0 0 rg BT 531.75 429.75 Td (T) Tj ET Q q 0 0 0 rg BT 537.49 429.75 Td (rump ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 417.75 Td (became President of the United States. ) Tj ET Q q 0 0 0 rg BT 229.37 417.75 Td (The full scope of President ) Tj ET Q q 0 0 0 rg BT 350.36 417.75 Td (T) Tj ET Q q 0 0 0 rg BT 356.10 417.75 Td (rump’) Tj ET Q q 0 0 0 rg BT 380.92 417.75 Td (s short-term legislative agenda is not yet ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 405.75 Td (fully known, but it may include certain deregulatory measures for the U.S. financial services industry) Tj ET Q q 0 0 0 rg BT 490.01 405.75 Td (, including ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 393.75 Td (changes to the V) Tj ET Q q 0 0 0 rg BT 124.50 393.75 Td (olcker Rule, capital and risk retention requirements, the Council’) Tj ET Q q 0 0 0 rg BT 407.24 393.75 Td (s authority and other aspects of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 381.75 Td (the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 121.70 381.75 Td (Act. On February 3, 2017, President ) Tj ET Q q 0 0 0 rg BT 287.16 381.75 Td (T) Tj ET Q q 0 0 0 rg BT 292.90 381.75 Td (rump signed an executive order calling for the administration ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 369.75 Td (to review U.S. financial laws and regulations in order to determine their consistency with a set of core principles ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 357.75 Td (identified in the order) Tj ET Q q 0 0 0 rg BT 142.84 357.75 Td (. One pending bill, called the Financial CHOICE ) Tj ET Q q 0 0 0 rg BT 358.51 357.75 Td (Act \(the “CHOICE ) Tj ET Q q 0 0 0 rg BT 440.20 357.75 Td (Act”\), which is sponsored ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 345.75 Td (by Rep. Jeb Hensarling, is being discussed as an avenue for amending the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 439.67 345.75 Td (Act.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.50 327.75 Td (In particular) Tj ET Q q 0 0 0 rg BT 133.19 327.75 Td (, the CHOICE ) Tj ET Q q 0 0 0 rg BT 196.55 327.75 Td (Act would eliminate the power of the FSOC to designate non-bank financial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 315.75 Td (institutions as systemically important, repeal the V) Tj ET Q q 0 0 0 rg BT 270.65 315.75 Td (olcker Rule and reform the Consumer Financial Protection ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 303.75 Td (Bureau. In addition, the CHOICE ) Tj ET Q q 0 0 0 rg BT 200.08 303.75 Td (Act would allow certain qualifying banking organizations with a satisfactory ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 291.75 Td (composite supervisory rating and a non-risk weighted leverage ratio of at least 10% to elect to be exempt from risk-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 279.75 Td (weighted capital ratios, liquidity requirements, and other regulations currently applicable to banking organizations, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 267.75 Td (and would revise the U.S. Risk Retention Rules to remove the risk retention requirement for all asset-backed ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 255.75 Td (securitizations other than for certain non-qualifying residential mortgage securitizations. ) Tj ET Q q 0 0 0 rg BT 441.13 255.75 Td (The CHOICE ) Tj ET Q q 0 0 0 rg BT 502.26 255.75 Td (Act would ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 243.75 Td (also significantly enhance the SEC’) Tj ET Q q 0 0 0 rg BT 206.02 243.75 Td (s enforcement capabilities and increase the maximum civil penalties and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 231.75 Td (criminal sanctions under federal securities laws, including under the Investment Company ) Tj ET Q q 0 0 0 rg BT 448.54 231.75 Td (Act and the ) Tj ET Q q 0 0 0 rg BT 501.35 231.75 Td (Advisers ) Tj ET Q q 0 0 0 rg BT 541.92 231.75 Td (Act. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.50 213.75 Td (It remains unclear whether the CHOICE ) Tj ET Q q 0 0 0 rg BT 259.91 213.75 Td (Act will be enacted, and if so, whether additional amendments ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 201.75 Td (would be added during the legislative process. However) Tj ET Q q 0 0 0 rg BT 299.59 201.75 Td (, the results of the recent elections have increased the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 189.75 Td (likelihood that the CHOICE ) Tj ET Q q 0 0 0 rg BT 171.73 189.75 Td (Act, or similar financial reform legislation, will be enacted. While it is impossible to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 177.75 Td (determine the full extent of the impact on us or any of the portfolio companies of our funds of any such potential ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 165.75 Td (financial reform legislation, or whether any such proposal will become law) Tj ET Q q 0 0 0 rg BT 374.60 165.75 Td (, any changes in the regulatory framework ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 153.75 Td (applicable to our business or the business of the portfolio companies of our funds, including the changes described ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 141.75 Td (above, may impose additional costs, require the attention of our senior management or result in limitations on the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 129.75 Td (manner in which business is conducted, or may ultimately have an adverse impact on the competitiveness of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 117.75 Td (certain non-bank financial service providers vis-ŕ-vis traditional banking organizations.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 99.75 Td (Regulatory changes in jurisdictions outside the United States could adversely af) Tj ET Q q 0 0 0 rg BT 432.13 99.75 Td (fect our business.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 82.00 81.75 Td (Certain of our subsidiaries operate outside the United States. In the United Kingdom, Oaktree Capital ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 69.75 Td (Management \(UK\) LLP) Tj ET Q q 0 0 0 rg BT 152.09 69.75 Td ( is subject to regulation by the Financial Conduct ) Tj ET Q q 0 0 0 rg BT 369.44 69.75 Td (Authority) Tj ET Q q 0 0 0 rg BT 408.16 69.75 Td (. In Hong Kong, Oaktree Capital ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 57.75 Td (\(Hong Kong\) Limited is subject to regulation by the Hong Kong Securities and Futures Commission. In Singapore, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 45.75 Td (Oaktree Capital Management Pte. Ltd. is subject to regulation by the Monetary ) Tj ET Q q 0 0 0 rg BT 399.64 45.75 Td (Authority of Singapore. In Japan, ) Tj ET Q endstream endobj 77 0 obj <> endobj 78 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (38) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Oaktree Japan, GK is subject to regulation by the Kanto Local Finance Bureau. In Luxembourg, Oaktree Capital ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (Management \(Lux\) S.ŕ r) Tj ET Q q 0 0 0 rg BT 157.28 729.75 Td (.l. is subject to regulation by the Commission de Surveillance du Secteur Financier) Tj ET Q q 0 0 0 rg BT 520.79 729.75 Td (. Our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (other European and ) Tj ET Q q 0 0 0 rg BT 140.63 717.75 Td (Asian operations and our investment activities worldwide are subject to a variety of regulatory ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 705.75 Td (regimes that vary by country) Tj ET Q q 0 0 0 rg BT 174.86 705.75 Td (. In addition, we regularly rely on exemptions from various requirements of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 693.75 Td (regulations of certain foreign countries in conducting our asset management activities.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 82.00 675.75 Td (Each of the regulatory bodies with jurisdiction over us has regulatory powers dealing with many aspects of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 663.75 Td (financial services, including the authority to grant, and in specific circumstances to cancel, permissions to carry on ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 651.75 Td (particular activities. W) Tj ET Q q 0 0 0 rg BT 149.84 651.75 Td (e are involved regularly in trading activities that implicate a broad number of foreign \(as well ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 639.75 Td (as U.S.\) securities law regimes, including laws governing trading on inside information and market manipulation and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 627.75 Td (a broad number of technical trading requirements that implicate fundamental market regulation policies. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 615.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 100.40 615.75 Td (, we must comply with foreign laws governing the sale of interests in our funds. V) Tj ET Q q 0 0 0 rg BT 457.61 615.75 Td (iolation of these laws ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 603.75 Td (could result in severe penalties, restrictions or prohibitions on our activities and damage to our reputation, which in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 591.75 Td (turn could materially adversely af) Tj ET Q q 0 0 0 rg BT 196.00 591.75 Td (fect our business in a number of ways, such as causing investors to redeem their ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 579.75 Td (capital \(to the degree they have that right\), making it harder for us to raise new funds and discouraging others from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 567.75 Td (doing business with us.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 549.75 Td (Alternative Investment Fund Managers Directive) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 82.00 531.75 Td (The European Union ) Tj ET Q q 0 0 0 rg BT 176.51 531.75 Td (Alternative Investment Fund Managers Directive took ef) Tj ET Q q 0 0 0 rg BT 422.56 531.75 Td (fect on July 22, 2013. ) Tj ET Q q 0 0 0 rg BT 523.00 531.75 Td (The ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 519.75 Td (Directive applies to \(a\) ) Tj ET Q q 0 0 0 rg BT 151.71 519.75 Td (AIFMs established in the European Union \(the “EU”\) that manage EU or non-EU alternative ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 507.75 Td (investment funds \(“AIFs”\), \(b\) non-EU ) Tj ET Q q 0 0 0 rg BT 218.94 507.75 Td (AIFMs that manage EU ) Tj ET Q q 0 0 0 rg BT 325.10 507.75 Td (AIFs and \(c\) non-EU ) Tj ET Q q 0 0 0 rg BT 418.47 507.75 Td (AIFMs that market their ) Tj ET Q q 0 0 0 rg BT 524.61 507.75 Td (AIFs to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 495.75 Td (professional investors within the EU. ) Tj ET Q q 0 0 0 rg BT 216.19 495.75 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 267.14 495.75 Td (, individual EU member states have adopted rules and regulations ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 483.75 Td (implementing the Directive into domestic law) Tj ET Q q 0 0 0 rg BT 246.75 483.75 Td (, and member states are free to impose additional rules that are stricter ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 471.75 Td (than the minimum required by the Directive.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 82.00 453.75 Td (The Directive imposes detailed operating requirements on EU ) Tj ET Q q 0 0 0 rg BT 357.14 453.75 Td (AIFMs managing ) Tj ET Q q 0 0 0 rg BT 434.95 453.75 Td (AIFs. EU ) Tj ET Q q 0 0 0 rg BT 479.96 453.75 Td (AIFMs must ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 441.75 Td (comply with the requirements of the Directive and be appropriately authorized or have submitted an application for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 429.75 Td (authorization. EU ) Tj ET Q q 0 0 0 rg BT 131.71 429.75 Td (AIFMs and non-EU ) Tj ET Q q 0 0 0 rg BT 218.97 429.75 Td (AIFMs seeking to market an ) Tj ET Q q 0 0 0 rg BT 345.69 429.75 Td (AIF within the EU must comply with the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 417.75 Td (Directive’) Tj ET Q q 0 0 0 rg BT 90.94 417.75 Td (s disclosure and transparency requirements and \(in the case of non-EU ) Tj ET Q q 0 0 0 rg BT 408.89 417.75 Td (AIFMs\) jurisdiction specific private ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 405.75 Td (placement regimes \(which have changed as a result of the Directive\).) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 82.00 387.75 Td (The full scope of the Directive may also be extended to non-EU ) Tj ET Q q 0 0 0 rg BT 364.38 387.75 Td (AIFMs that wish to market an ) Tj ET Q q 0 0 0 rg BT 496.09 387.75 Td (AIF within the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 375.75 Td (EU pursuant to a pan-European marketing passport instead of under national private placement regimes.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 82.00 357.75 Td (The operating requirements imposed by the Directive include, among other things, rules relating to the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 345.75 Td (remuneration of certain personnel, minimum regulatory capital requirements, restrictions on use of leverage, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 333.75 Td (restrictions on early distributions relating to portfolio companies \(so-called “asset stripping” rules\), disclosure and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 321.75 Td (reporting requirements to both investors and home state regulators, the independent valuation of an ) Tj ET Q q 0 0 0 rg BT 493.06 321.75 Td (AIF’) Tj ET Q q 0 0 0 rg BT 510.66 321.75 Td (s assets ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 309.75 Td (and the appointment of an independent depository to hold assets. ) Tj ET Q q 0 0 0 rg BT 345.21 309.75 Td (As a result, the Directive could have an adverse ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 297.75 Td (ef) Tj ET Q q 0 0 0 rg BT 58.16 297.75 Td (fect on our business by) Tj ET Q q 0 0 0 rg BT 160.25 297.75 Td (, among other things, increasing the regulatory burden and costs of doing business in or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 285.75 Td (relating to EU member states, imposing extensive disclosure obligations on, and asset stripping rules with respect ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 273.75 Td (to, companies, if any) Tj ET Q q 0 0 0 rg BT 140.97 273.75 Td (, in which any of our fund\(s\) invest that are located in EU member states, significantly ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 261.75 Td (restricting marketing activities within the EU, potentially requiring our fund\(s\) to change their compensation ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 249.75 Td (structures for key personnel, thereby af) Tj ET Q q 0 0 0 rg BT 223.24 249.75 Td (fecting our ability to recruit and retain these personnel, and potentially ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 237.75 Td (disadvantaging our funds as investors in private companies located in EU member states when compared to non-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 225.75 Td (AIF/AIFM competitors that may not be subject to the requirements of the Directive, thereby potentially restricting our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 213.75 Td (funds’) Tj ET Q q 0 0 0 rg BT 76.31 213.75 Td ( ability to make investments in such companies.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 82.00 195.75 Td (The Directive could also limit our operating flexibility and our investment opportunities, as well as expose us ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 183.75 Td (and/or our funds to conflicting regulatory requirements in the United States \(and elsewhere\) and the EU. ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 160.35 Td (Risk Retention and Due Diligence Requirements) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.50 142.35 Td (Similar to the U.S. Risk Retention Rules, the EU has adopted rules that prevent certain investors from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 130.35 Td (investing in EU CLOs that we originate unless, among other things, we retain at least a 5% ownership stake in the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 118.35 Td (CLO and meet certain heightened due diligence requirements \(the “EU Risk Retention and Due Diligence ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 106.35 Td (Requirements”\). On September 30, 2015, the European Commission proposed new regulations that would expand ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 94.35 Td (the application of the EU Risk Retention and Due Diligence Requirements to certain additional types of EU ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 82.35 Td (institutional investors. ) Tj ET Q q 0 0 0 rg BT 150.98 82.35 Td (These new regulations are subject to further review) Tj ET Q q 0 0 0 rg BT 377.21 82.35 Td (, and it is not clear whether they will be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 70.35 Td (adopted. Such regulations could result in reduced EU CLO activity by us and have a negative impact on the price ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 58.35 Td (and liquidity of EU CLOs and could adversely af) Tj ET Q q 0 0 0 rg BT 261.60 58.35 Td (fect our EU CLO activity) Tj ET Q q 0 0 0 rg BT 367.56 58.35 Td (. Failure to comply with one or more of the ) Tj ET Q endstream endobj 79 0 obj <> endobj 80 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (39) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (requirements may result in various penalties including the imposition of a punitive capital charge on the notes ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (issued by our EU CLOs.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 711.75 Td (Solvency II) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 82.00 693.75 Td (Solvency II is an EU directive that sets out stronger capital adequacy and risk management requirements for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 681.75 Td (European insurers and reinsurers and, in particular) Tj ET Q q 0 0 0 rg BT 274.57 681.75 Td (, dictates how much capital such firms must hold against their ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 669.75 Td (liabilities. Solvency II came into ef) Tj ET Q q 0 0 0 rg BT 202.11 669.75 Td (fect on January 1, 2016. Solvency II imposes, among other things, substantially ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 657.75 Td (greater quantitative and qualitative capital requirements for insurers and reinsurers as well as other supervisory and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 645.75 Td (disclosure requirements. W) Tj ET Q q 0 0 0 rg BT 173.75 645.75 Td (e are not subject to Solvency II; however) Tj ET Q q 0 0 0 rg BT 353.30 645.75 Td (, many of our European insurer or reinsurer ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 633.75 Td (fund investors will be subject to this directive, as applied under applicable domestic law) Tj ET Q q 0 0 0 rg BT 434.10 633.75 Td (. Solvency II may impact ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 621.75 Td (insurers’) Tj ET Q q 0 0 0 rg BT 87.42 621.75 Td ( and reinsurers’) Tj ET Q q 0 0 0 rg BT 155.97 621.75 Td ( investment decisions and their asset allocations. In addition, insurers and reinsurers will ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 609.75 Td (be subject to more onerous data collation and reporting requirements. ) Tj ET Q q 0 0 0 rg BT 363.52 609.75 Td (As a result, Solvency II could in the future ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 597.75 Td (have an adverse indirect ef) Tj ET Q q 0 0 0 rg BT 169.89 597.75 Td (fect on our business by) Tj ET Q q 0 0 0 rg BT 271.99 597.75 Td (, among other things, restricting the ability of European insurers ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 585.75 Td (and reinsurers to invest in our funds and imposing on us extensive disclosure and reporting obligations for those ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 573.75 Td (insurers and reinsurers that do invest in our funds.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 555.75 Td (OECD) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 82.00 537.75 Td (Changes in tax laws by foreign jurisdictions could arise as a result of BEPS projects being undertaken by the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 525.75 Td (OECD \(each as defined below\). ) Tj ET Q q 0 0 0 rg BT 196.00 525.75 Td (These contemplated changes, if finalized and adopted by countries, could ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 513.75 Td (increase uncertainty faced by us, our business and our investors, change our business model or increase the cost ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 501.75 Td (of acquiring businesses. ) Tj ET Q q 0 0 0 rg BT 162.66 501.75 Td (The timing or impact of these proposals is unclear at this point. ) Tj ET Q q 0 0 0 rg BT 445.40 501.75 Td (There are also continual ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 489.75 Td (changes to tax laws, regulations and interpretations regularly which could impact our structures or the returns to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 477.75 Td (investors.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 459.75 Td (SEC rules barring so-called “bad actors” from relying on Rule 506 of Regulation D in private placements ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 447.75 Td (could materially adversely af) Tj ET Q q 0 0 0 rg BT 186.55 447.75 Td (fect our business, financial condition and results of operations.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 82.00 429.75 Td (Rules 501 and 506 of Regulation D under the Securities ) Tj ET Q q 0 0 0 rg BT 331.61 429.75 Td (Act bar issuers deemed to be “bad actors” from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 417.75 Td (relying on Rule 506 of Regulation D \(“Rule 506”\) in connection with private placements \(the “disqualification rule”\). ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 405.75 Td (Specifically) Tj ET Q q 0 0 0 rg BT 99.28 405.75 Td (, an issuer will be precluded from conducting of) Tj ET Q q 0 0 0 rg BT 307.54 405.75 Td (ferings that rely on the exemption from registration under ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 393.75 Td (the Securities ) Tj ET Q q 0 0 0 rg BT 112.81 393.75 Td (Act provided by Rule 506 \(“Rule 506 of) Tj ET Q q 0 0 0 rg BT 284.95 393.75 Td (ferings”\) if a “covered person” of the issuer has been the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 381.75 Td (subject of a “disqualifying event” \(each as defined below\). “Covered persons” include, among others, the issuer) Tj ET Q q 0 0 0 rg BT 542.49 381.75 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 369.75 Td (af) Tj ET Q q 0 0 0 rg BT 58.16 369.75 Td (filiated issuers, any investment manager or solicitor of the issuer) Tj ET Q q 0 0 0 rg BT 341.62 369.75 Td (, any director) Tj ET Q q 0 0 0 rg BT 398.87 369.75 Td (, executive of) Tj ET Q q 0 0 0 rg BT 457.61 369.75 Td (ficer or other of) Tj ET Q q 0 0 0 rg BT 524.68 369.75 Td (ficer ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 357.75 Td (participating in the of) Tj ET Q q 0 0 0 rg BT 142.10 357.75 Td (fering of the issuer) Tj ET Q q 0 0 0 rg BT 223.81 357.75 Td (, any general partner or managing member of the foregoing entities, any ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 345.75 Td (promoter of the issuer and any beneficial owner of 20% or more of the issuer) Tj ET Q q 0 0 0 rg BT 389.44 345.75 Td (’) Tj ET Q q 0 0 0 rg BT 391.48 345.75 Td (s outstanding voting equity securities, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 333.75 Td (calculated on the basis of voting power) Tj ET Q q 0 0 0 rg BT 221.78 333.75 Td (. ) Tj ET Q q 0 0 0 rg BT 229.56 333.75 Td (A) Tj ET Q q 0 0 0 rg BT 235.68 333.75 Td ( “disqualifying event” includes, among other things, certain \(1\) criminal ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 321.75 Td (convictions and court injunctions and restraining orders issued in connection with the purchase or sale of a security ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 309.75 Td (or false filings with the SEC; \(2\) final orders from the CFTC, federal banking agencies and certain other regulators ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 297.75 Td (that bar a person from associating with a regulated entity or engaging in the business of securities, insurance or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 285.75 Td (banking or that are based on certain fraudulent conduct; \(3\) SEC disciplinary orders relating to investment advisers, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 273.75 Td (brokers, dealers and their associated persons; \(4\) SEC cease-and-desist orders relating to violations of certain anti-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 261.75 Td (fraud provisions and registration requirements of the federal securities laws; \(5\) suspensions or expulsions from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 249.75 Td (membership in a self-regulatory organization \(“SRO”\) or from association with an SRO member; and \(6\) U.S. Postal ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 237.75 Td (Service false representation orders.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 82.00 219.75 Td (If any Oaktree covered person is subject to a disqualifying event, one or more of our funds could lose the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 207.75 Td (ability to raise capital in a Rule 506 of) Tj ET Q q 0 0 0 rg BT 215.47 207.75 Td (fering for a significant period of time. Most of our funds rely on Rule 506 to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 195.75 Td (raise capital from investors during their fundraising periods. If one or more of our funds were to lose the ability to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 183.75 Td (rely on the Rule 506 exemption because an Oaktree covered person has been the subject of a disqualifying event, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 171.75 Td (our business, financial condition and results of operations could be materially and adversely af) Tj ET Q q 0 0 0 rg BT 466.17 171.75 Td (fected.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 153.75 Td (Failure to comply with “pay to play” regulations implemented by the SEC and certain states, and changes ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 141.75 Td (to the “pay to play” regulatory regimes, could adversely af) Tj ET Q q 0 0 0 rg BT 327.68 141.75 Td (fect our business.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 82.00 123.75 Td (In recent years, the SEC and several states have initiated investigations alleging that certain private equity ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 111.75 Td (firms and hedge funds or agents acting on their behalf have paid money to current or former government of) Tj ET Q q 0 0 0 rg BT 522.87 111.75 Td (ficials or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 99.75 Td (their associates in exchange for improperly soliciting contracts with state pension funds. ) Tj ET Q q 0 0 0 rg BT 442.79 99.75 Td (The SEC has also initiated ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 87.75 Td (a similar investigation into contracts awarded by sovereign wealth funds. Rule 206\(4\)-5 under the ) Tj ET Q q 0 0 0 rg BT 484.13 87.75 Td (Advisers ) Tj ET Q q 0 0 0 rg BT 524.70 87.75 Td (Act ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 75.75 Td (addresses “pay to play” practices by investment advisers involving campaign contributions and other payments to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 63.75 Td (government of) Tj ET Q q 0 0 0 rg BT 113.75 63.75 Td (ficials able to exert influence on potential U.S. state and local government entity clients. ) Tj ET Q q 0 0 0 rg BT 504.52 63.75 Td (Among other ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 51.75 Td (restrictions, the rule prohibits investment advisers from providing advisory services for compensation to a ) Tj ET Q endstream endobj 81 0 obj <> endobj 82 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (40) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (government entity for two years, subject to very limited exceptions, after the investment adviser) Tj ET Q q 0 0 0 rg BT 469.64 741.75 Td (, its senior ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (executives or its personnel involved in soliciting investments from government entities make contributions to certain ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (candidates and of) Tj ET Q q 0 0 0 rg BT 128.77 717.75 Td (ficials in a position to influence the hiring of an investment adviser by such government entity) Tj ET Q q 0 0 0 rg BT 537.70 717.75 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 705.75 Td (Advisers are required to implement compliance policies designed, among other matters, to track contributions by ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 693.75 Td (certain of the adviser) Tj ET Q q 0 0 0 rg BT 143.20 693.75 Td (’) Tj ET Q q 0 0 0 rg BT 145.24 693.75 Td (s employees and engagements of third parties that solicit government entities and to keep ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 681.75 Td (certain records in order to enable the SEC to determine compliance with the rule. ) Tj ET Q q 0 0 0 rg BT 412.97 681.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 463.37 681.75 Td (, California law ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 669.75 Td (requires placement agents \(including in certain cases employees of investment managers\) who solicit funds from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 657.75 Td (California state retirement systems, such as the California Public Employees’) Tj ET Q q 0 0 0 rg BT 389.77 657.75 Td ( Retirement System and the California ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 645.75 Td (State ) Tj ET Q q 0 0 0 rg BT 75.95 645.75 Td (T) Tj ET Q q 0 0 0 rg BT 80.95 645.75 Td (eachers’) Tj ET Q q 0 0 0 rg BT 118.37 645.75 Td ( Retirement System, to register as lobbyists, thereby becoming subject to increased reporting ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 633.75 Td (requirements and prohibited from receiving contingent compensation for soliciting investments from California state ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 621.75 Td (retirement systems. New ) Tj ET Q q 0 0 0 rg BT 165.40 621.75 Td (Y) Tj ET Q q 0 0 0 rg BT 171.15 621.75 Td (ork has adopted similar rules. Such investigations may require the attention of senior ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 609.75 Td (management and may result in fines if any of our funds are deemed to have violated any regulations, thereby ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 597.75 Td (imposing additional expenses on us. ) Tj ET Q q 0 0 0 rg BT 216.22 597.75 Td (Any failure by us or by our senior executives or personnel involved in soliciting ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 585.75 Td (investment from government entities to comply with these rules could cause us to lose compensation for our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 573.75 Td (advisory services or expose us to significant penalties and reputational damage.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 555.75 Td (The derivatives that we or our funds use may subject us to increased risk of loss and may adversely af) Tj ET Q q 0 0 0 rg BT 537.77 555.75 Td (fect ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 543.75 Td (our results of operations.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.50 525.75 Td (From time to time, we and our funds enter into various derivative instruments including, but not limited to, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 513.75 Td (swaps, options, forwards) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.05 513.75 Td (,) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 162.55 513.75 Td ( futures and options on futures, in order to manage various risks such as risks related to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 501.75 Td (interest rates, foreign-currency exchange rates or exposure to certain equity markets, or for any purposes ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 489.75 Td (consistent with our or our funds’) Tj ET Q q 0 0 0 rg BT 190.81 489.75 Td ( investment objectives and strategies. Generally) Tj ET Q q 0 0 0 rg BT 405.18 489.75 Td (, a derivative is a financial contract, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 477.75 Td (the value of which depends upon, or is derived from, the value of an underlying asset, reference rate, or index, and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 465.75 Td (may relate to individual debt or equity instruments, interest rates, currencies or currency exchange rates, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 453.75 Td (commodities, related indices and other assets. In the future, we and our funds may enter into additional derivative ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 441.75 Td (instruments as part of risk management or in accordance with our investment strategies. Our hedging activity ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 429.75 Td (varies in scope based on the level of interest rates or foreign-exchange rate, the type of portfolio investments held ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 417.75 Td (and other changing market conditions. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.50 399.75 Td (While the judicious use of derivative instruments can be beneficial, such instruments involve risks dif) Tj ET Q q 0 0 0 rg BT 524.30 399.75 Td (ferent ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 387.75 Td (from, and, in certain cases, greater than, the risks presented by more traditional investments. Our derivative ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 375.75 Td (instruments used for hedging purposes may fail to protect us or our funds from the risks we sought to hedge. In ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 363.75 Td (addition, derivatives used for hedging or non-hedging purposes may present various additional market and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 351.75 Td (counterparty-related risks including, but not limited to:) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.00 333.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 333.75 Td (derivative instruments can be expensive, particularly during periods of volatility in interest rates, foreign ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 321.75 Td (currency and the prices of reference instruments;) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.00 303.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 303.75 Td (an imperfect or variable degree of correlation between price movements of the available derivative ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 291.75 Td (instruments and the underlying asset, reference rate or index sought to be hedged may prevent us from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 279.75 Td (achieving the intended hedging ef) Tj ET Q q 0 0 0 rg BT 244.38 279.75 Td (fect or expose us to the risk of loss;) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.00 261.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 261.75 Td (the gain \(or loss\) on such instruments may not fully of) Tj ET Q q 0 0 0 rg BT 331.59 261.75 Td (fset the corresponding loss \(or gain\) in the value of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 249.75 Td (the underlying assets in our portfolio;) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.00 231.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 231.75 Td (the duration of a hedge may be significantly dif) Tj ET Q q 0 0 0 rg BT 301.06 231.75 Td (ferent than the duration of the underlying liability or asset; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.00 213.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 213.75 Td (typically) Tj ET Q q 0 0 0 rg BT 129.82 213.75 Td (, investing in a derivative instrument requires the deposit or payment of an initial amount much ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 201.75 Td (smaller than the notional or nominal exposure amount from such derivative instrument, potentially ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 189.75 Td (magnifying the loss if the relevant market moves against us or our funds;) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.00 171.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 171.75 Td (certain derivatives may be illiquid, making them unable to be sold at the desired time or price, so that in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 159.75 Td (volatile markets we may not be able to close out a position without incurring a loss;) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.00 141.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 141.75 Td (the credit quality of the counterparty of the hedge may be downgraded to such an extent that it impairs or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 129.75 Td (makes economically unattractive our ability to sell or assign our side of the hedging transaction; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.00 111.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 111.75 Td (the counterparty owing money in a hedging transaction may default on its obligation to pay) Tj ET Q q 0 0 0 rg BT 493.95 111.75 Td (, see “—) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 99.75 Td (Derivative instruments often involve counterparty risks and costs”;) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.00 81.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 81.75 Td (the cost of using certain derivative instruments may increase during a period of increased volatility) Tj ET Q q 0 0 0 rg BT 527.25 81.75 Td (, for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 69.75 Td (instance, with respect to interest rate hedges, during periods of rising and volatile interest rates and, with ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 57.75 Td (respect to foreign-currency hedges, during periods of volatile foreign currencies;) Tj ET Q endstream endobj 83 0 obj <> endobj 84 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (41) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.00 741.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 741.75 Td (the value of derivative instruments depends upon the price of the underlying asset, reference rate or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 729.75 Td (index, which may be subject to volatility;) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.00 711.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 711.75 Td (actual or implied daily limits on price fluctuations and speculative position limits on the exchanges or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 699.75 Td (over-the-counter markets in which we may conduct our transactions in derivative instruments may ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 687.75 Td (prevent prompt liquidation of positions, subjecting us to the potential of greater losses;) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.00 669.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 669.75 Td (significant disparities may exist between “bid” and “asked” prices for derivative instruments that are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 657.75 Td (traded over-the-counter and not on an exchange;) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.00 639.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 639.75 Td (the derivative instruments used by us may be dif) Tj ET Q q 0 0 0 rg BT 308.81 639.75 Td (ficult to value or involve the risk of mispricing or improper ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 627.75 Td (valuation, especially where the markets for such derivative instruments are illiquid and/or such derivatives ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 615.75 Td (involve complex structures, or where there is imperfect correlation between the value of the derivative ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 603.75 Td (instrument and the underlying asset, reference rate or index; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.00 585.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 585.75 Td (derivative contracts could require us to fund cash payments in the future under certain circumstances, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 573.75 Td (including an event of default or other early termination event, or the decision by a counterparty to request ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 561.75 Td (margin in the form of securities or other forms of collateral under the terms of the derivative contract and/) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 549.75 Td (or under applicable laws; and) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.00 531.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 531.75 Td (compared with exchange-traded instruments, the market for OTC derivatives is less liquid and the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 519.75 Td (derivative instruments used by us and our funds may be dif) Tj ET Q q 0 0 0 rg BT 356.07 519.75 Td (ficult to value or involve the risk of mispricing ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 507.75 Td (or improper valuation, especially where the markets for such derivative instruments are illiquid and/or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 495.75 Td (such derivatives involve complex structures, or where there is imperfect correlation between the value of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 483.75 Td (a derivative instrument and the underlying asset, reference rate or index.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.50 465.75 Td (While we or our funds may enter into various derivative instruments for risk management and other ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 453.75 Td (purposes in accordance with our investment strategies, the foregoing risks may cause us to have poorer overall ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 441.75 Td (investment performance than if we had not entered into any such derivative instruments. ) Tj ET Q q 0 0 0 rg BT 445.21 441.75 Td (Any derivative ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 429.75 Td (transactions we or our funds enter into may adversely af) Tj ET Q q 0 0 0 rg BT 298.28 429.75 Td (fect our results of operations, which in turn could adversely ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 417.75 Td (af) Tj ET Q q 0 0 0 rg BT 58.16 417.75 Td (fect our cash available for distribution to holders of our units. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 399.75 Td (Derivative instruments often involve counterparty risks and costs.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 381.75 Td (W) Tj ET Q q 0 0 0 rg BT 89.26 381.75 Td (e and our funds will be subject to credit risk with respect to counterparties to derivative contracts and other ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 369.75 Td (instruments entered into directly by us or our funds or held by special purpose or structured vehicles in which we or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 357.75 Td (our funds may invest from time to time. Counterparty risk is the risk that the other party in a derivative transaction ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 345.75 Td (will not fulfill its contractual obligation. Changes in the credit quality of the entities that serve as our or our funds’) Tj ET Q q 0 0 0 rg BT 545.45 345.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 333.75 Td (counterparties in the derivative transactions will af) Tj ET Q q 0 0 0 rg BT 270.48 333.75 Td (fect the value of our derivative instruments. By entering into ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 321.75 Td (derivatives, we or our funds assume the risk that these counterparties could experience financial or other hardships ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 309.75 Td (that could jeopardize their continued ability to perform their contractual obligations under the derivative transactions. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 297.75 Td (Furthermore, concentrations of derivatives with any particular counterparty would subject us or our funds to an ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 285.75 Td (additional degree of risk with respect to defaults by such counterparty) Tj ET Q q 0 0 0 rg BT 356.09 285.75 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 267.75 Td (If a counterparty becomes bankrupt or otherwise fails to perform its obligations under a derivative contract ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 255.75 Td (with us or our funds due to financial or other dif) Tj ET Q q 0 0 0 rg BT 257.71 255.75 Td (ficulties, we or our funds may experience significant delays in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 243.75 Td (obtaining any recovery under the derivative contract in a dissolution, assignment for the benefit of creditors, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 231.75 Td (liquidation, winding-up, bankruptcy or other analogous proceedings. In addition, in the event of the insolvency of a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 219.75 Td (counterparty to a derivative transaction, the derivative transaction would typically be terminated at its fair market ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 207.75 Td (value. If we or our funds are owed this fair market value upon the termination of the derivative transaction and such ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 195.75 Td (claims are uncollateralized or otherwise unsecured, we or our funds will be treated as general creditors of such ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 183.75 Td (counterparty) Tj ET Q q 0 0 0 rg BT 104.84 183.75 Td (, and will have limited claim with respect to the underlying assets. W) Tj ET Q q 0 0 0 rg BT 408.13 183.75 Td (e or our funds may obtain only a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 171.75 Td (limited recovery or may obtain no recovery at all in such circumstances.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 153.75 Td (Some, but not all, derivatives are required by applicable laws to be cleared, in which case a central clearing ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 141.75 Td (counterparty \(“CCP”\) stands between each buyer and seller and ef) Tj ET Q q 0 0 0 rg BT 344.42 141.75 Td (fectively guarantees performance of each ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 129.75 Td (derivative contract, to the extent of its available resources for such purpose. ) Tj ET Q q 0 0 0 rg BT 389.62 129.75 Td (As a result, the counterparty risk is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 117.75 Td (now shifted from the parties to the CCP) Tj ET Q q 0 0 0 rg BT 223.24 117.75 Td (. Even in such case, there can be no assurance that a clearing house, or its ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 105.75 Td (members, will ensure the satisfaction of the clearing house’) Tj ET Q q 0 0 0 rg BT 311.62 105.75 Td (s obligations to our funds. Uncleared derivatives have ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 93.75 Td (no protection from any CCP; each party bears the risk that its direct counterparty will default.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 75.75 Td (Risks relating to uncleared derivatives) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 232.85 75.75 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.50 57.75 Td (Our and our funds’) Tj ET Q q 0 0 0 rg BT 163.96 57.75 Td ( counterparty credit exposure will be greatly mitigated if we receive collateral from our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 45.75 Td (counterparties. ) Tj ET Q q 0 0 0 rg BT 121.52 45.75 Td (The U.S. banking agencies and the CFTC have adopted margin requirements for non-cleared ) Tj ET Q endstream endobj 85 0 obj <> endobj 86 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (42) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (swaps that apply to banking entities registered as swap dealers \(“SDs”\) with the CFTC and non-banking entities ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (registered as SDs with the CFTC, respectively) Tj ET Q q 0 0 0 rg BT 253.77 729.75 Td (. In addition, the U.S. banking agencies’) Tj ET Q q 0 0 0 rg BT 432.40 729.75 Td ( margin rules apply to non-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (cleared security-based swaps entered into by security-based swap dealers \(“SBSDs”\) that are banking entities. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 705.75 Td (However) Tj ET Q q 0 0 0 rg BT 88.91 705.75 Td (, the SEC has proposed but not yet adopted final margin rules for SBSDs that are not banking entities. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 693.75 Td (While neither our funds nor any entity through which we execute swaps will be directly subject to these margin ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 681.75 Td (requirements, our funds will be indirectly impacted by the margin requirements where the counterparty is an SD or a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 669.75 Td (SBSD as to which uncleared margin rules apply) Tj ET Q q 0 0 0 rg BT 260.47 669.75 Td (. If any of our funds is classified as a “financial end user” for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 657.75 Td (purposes of these margin rules, beginning on the relevant compliance date, such fund will be required to exchange ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 645.75 Td (variation margin \(in the form of cash, certain highly liquid securities or gold\) on a daily basis with its SD or SBSD ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 633.75 Td (counterparties \(and, if contractually agreed, with any non-SD or non-SBSD counterparty\) to cover the cumulative ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 621.75 Td (mark-to-market change in value of the transaction since the last exchange of variation margin.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.50 603.75 Td (T) Tj ET Q q 0 0 0 rg BT 86.50 603.75 Td (o the extent that our SD or SBSD \(to the extent such SBSD is a banking entity\) counterparty collects initial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 591.75 Td (margin from our funds on uncleared swaps and security-based swaps, our funds may request that such ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 579.75 Td (counterparty segregate all such initial margin posted by us at an independent, third party custodian or at an af) Tj ET Q q 0 0 0 rg BT 534.00 579.75 Td (filiate ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 567.75 Td (of the SD or SBSD that serves as a custodian. If our funds do not request segregation of such initial margin, the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 555.75 Td (custodian or counterparty may commingle such assets or collateral with the custodian’) Tj ET Q q 0 0 0 rg BT 430.56 555.75 Td (s or counterparty’) Tj ET Q q 0 0 0 rg BT 507.63 555.75 Td (s own ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 543.75 Td (assets. In addition, even where our funds request segregation of such initial margin, the custodian or counterparty ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 531.75 Td (may fail to segregate such assets or collateral properly) Tj ET Q q 0 0 0 rg BT 291.04 531.75 Td (. In either case, in the event of the bankruptcy or insolvency ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 519.75 Td (of any custodian or counterparty) Tj ET Q q 0 0 0 rg BT 192.12 519.75 Td (, our funds’) Tj ET Q q 0 0 0 rg BT 241.22 519.75 Td ( assets and collateral may be subject to the conflicting claims of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 507.75 Td (creditors of the relevant custodian or counterparty) Tj ET Q q 0 0 0 rg BT 269.38 507.75 Td (, and our funds may be exposed to the risk of a court treating us ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 495.75 Td (as a general unsecured creditor of such custodian or counterparty) Tj ET Q q 0 0 0 rg BT 340.54 495.75 Td (, rather than as the owner of such assets or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 483.75 Td (collateral.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 465.75 Td (Risks relating to cleared derivatives.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.50 447.75 Td (The risks arising from non-cleared derivative transactions dif) Tj ET Q q 0 0 0 rg BT 348.10 447.75 Td (fer materially from those entailed in transactions ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 435.75 Td (that are cleared through CCPs such as U.S.-registered derivatives clearing organizations. ) Tj ET Q q 0 0 0 rg BT 450.76 435.75 Td (As of the date hereof, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 423.75 Td (the CFTC requires that certain interest-rate swaps and index credit-default swaps be cleared through a CCP) Tj ET Q q 0 0 0 rg BT 527.83 423.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 411.75 Td (\(unless an exception or exemption applies\), and the CFTC may expand the types of swaps \(e.g., certain foreign-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 399.75 Td (currency and commodity swaps\) subject to mandatory clearing. While the SEC has adopted rules establishing a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 387.75 Td (framework for determining which security-based swaps will be subject to mandatory clearing, as of the date hereof, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 375.75 Td (no such clearing determination has been issued.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.50 357.75 Td (Where we and our funds enter into swaps subject to mandatory clearing, we may be required to clear such ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 345.75 Td (swaps at a CCP) Tj ET Q q 0 0 0 rg BT 121.51 345.75 Td ( through a futures commission merchant \(“FCM”\) acting as clearing broker) Tj ET Q q 0 0 0 rg BT 448.86 345.75 Td (. W) Tj ET Q q 0 0 0 rg BT 466.45 345.75 Td (e and our funds will ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 333.75 Td (have to post initial and variation margin to CCPs through FCMs or broker-dealers \(in the U.S.\) or other clearing ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 321.75 Td (brokers \(outside the U.S.\), and for swaps cleared at CCPs that are U.S.-registered derivatives clearing ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 309.75 Td (organizations, such margin will be held by such CCP) Tj ET Q q 0 0 0 rg BT 282.71 309.75 Td ( and FCMs in segregated accounts under the CFTC rules. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 297.75 Td (Such segregation is intended to protect the margin of swap clearing customers from the claims of other creditors of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 285.75 Td (a CCP) Tj ET Q q 0 0 0 rg BT 79.27 285.75 Td ( or FCM. Furthermore, the CFTC rules implement the so-called “legally segregated, operationally ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 273.75 Td (commingled” \(“LSOC”\) model for the segregation of swap clearing customer collateral on a customer-by-customer ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 261.75 Td (basis, which is intended to protect each customer from the default of other customers of the FCM. Under the LSOC ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 249.75 Td (model of segregation, any margin posted by a swap clearing customer must be segregated from the FCM’) Tj ET Q q 0 0 0 rg BT 517.83 249.75 Td (s own ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 237.75 Td (property) Tj ET Q q 0 0 0 rg BT 85.94 237.75 Td (. However) Tj ET Q q 0 0 0 rg BT 133.18 237.75 Td (, the FCM may hold such customer collateral in a single account for operational convenience. If ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 225.75 Td (the FCM then fails to make a margin call to a CCP) Tj ET Q q 0 0 0 rg BT 272.13 225.75 Td ( due to the defaults of one or more swap clearing customers, the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 213.75 Td (CCP) Tj ET Q q 0 0 0 rg BT 70.93 213.75 Td ( will only have access to the collateral of the defaulting swap clearing customers \(and not the non-defaulting ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 201.75 Td (customers\) to cover any losses from such defaults. Such segregation, however) Tj ET Q q 0 0 0 rg BT 401.28 201.75 Td (, will not protect a clearing customer ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 189.75 Td (such as our funds from any operational or fraud risk of a CCP) Tj ET Q q 0 0 0 rg BT 321.62 189.75 Td ( or FCM with respect to the margin posted to the CCP) Tj ET Q q 0 0 0 rg BT 559.31 189.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 177.75 Td (or FCM. In addition, the margin posted to a non-U.S. CCP) Tj ET Q q 0 0 0 rg BT 308.83 177.75 Td ( through a non-U.S. clearing broker may not even be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 165.75 Td (segregated from the property of such CCP) Tj ET Q q 0 0 0 rg BT 237.69 165.75 Td ( and/or clearing broker) Tj ET Q q 0 0 0 rg BT 337.19 165.75 Td (. ) Tj ET Q q 0 0 0 rg BT 344.98 165.75 Td (As of the date hereof, the SEC has promulgated ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 153.75 Td (no final rules for the treatment and protection of customer property) Tj ET Q q 0 0 0 rg BT 342.74 153.75 Td (, including margin, held by CCPs and broker-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 141.75 Td (dealers.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.50 123.75 Td (In addition, where our funds enter into certain swaps subject to mandatory clearing, we may be required to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 111.75 Td (execute such swaps on a registered designated contract market or swap execution facility \(collectively) Tj ET Q q 0 0 0 rg BT 500.59 111.75 Td (, “SEFs”\). ) Tj ET Q q 0 0 0 rg BT 548.37 111.75 Td (As ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 99.75 Td (of the date hereof, the CFTC requires that certain interest-rate swaps and index credit-default swaps be executed ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 87.75 Td (on an SEF) Tj ET Q q 0 0 0 rg BT 96.14 87.75 Td (, and SEFs may self-certify additional types of interest-rate and index credit-default swaps as subject to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 75.75 Td (this requirement. ) Tj ET Q q 0 0 0 rg BT 129.85 75.75 Td (The SEC has not yet adopted registration rules for security-based SEFs or a mandatory trade ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 63.75 Td (execution requirement for security-based swaps. In addition, certain foreign jurisdictions may impose clearing and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 51.75 Td (trade execution requirements that could apply to our funds’) Tj ET Q q 0 0 0 rg BT 309.79 51.75 Td ( transactions with non-U.S. entities. While our funds will ) Tj ET Q endstream endobj 87 0 obj <> endobj 88 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (43) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (benefit from reduced counterparty credit and operations risk and pricing transparency resulting from these ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (requirements, we will incur additional costs in trading these swaps. While our funds will attempt to execute, clear ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (and settle these swaps through entities we believe to be sound, there can be no assurance that a failure by such an ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 705.75 Td (entity will not cause a loss to us.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 687.75 Td (Illiquidity and credit risk of derivative instruments.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.50 669.75 Td (W) Tj ET Q q 0 0 0 rg BT 90.76 669.75 Td (e and our funds may enter into derivative transactions involving privately negotiated of) Tj ET Q q 0 0 0 rg BT 470.80 669.75 Td (f-exchange ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 657.75 Td (derivative instruments, including OTC credit-default swaps, total-return swaps and other derivative instruments. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 645.75 Td (There can be no assurance that a liquid secondary market will exist for any particular derivative instrument at any ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 633.75 Td (particular time, and we or our funds may not be able to close out a position without incurring a significant amount of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 621.75 Td (loss. OTC derivative instruments, unlike exchange-traded instruments, are not guaranteed by an exchange or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 609.75 Td (clearinghouse, and thus are generally subject to greater credit risks. In addition, we and our funds may not be able ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 597.75 Td (to convince our counterparties to consent to an early termination of an OTC derivative contract or may not be able ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 585.75 Td (to enter into an of) Tj ET Q q 0 0 0 rg BT 127.65 585.75 Td (fsetting transaction to ef) Tj ET Q q 0 0 0 rg BT 233.64 585.75 Td (fectively unwind the transaction. Such OTC derivative contracts generally ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 573.75 Td (are not assignable except as permitted contractually or as otherwise agreed between the parties, and, in the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 561.75 Td (absence of such contractual obligation or agreement, a counterparty typically has no obligation to permit ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 549.75 Td (assignments. Moreover) Tj ET Q q 0 0 0 rg BT 156.16 549.75 Td (, even if the counterparty agrees to early termination of one or more OTC derivatives at any ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 537.75 Td (time, doing so may subject us or our funds to certain early termination charges.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 519.75 Td (Regulatory changes could occur and may adversely af) Tj ET Q q 0 0 0 rg BT 308.80 519.75 Td (fect our or our funds’) Tj ET Q q 0 0 0 rg BT 409.54 519.75 Td ( ability to pursue hedging ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 507.75 Td (strategies and/or increase the costs of implementing such strategies.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 489.75 Td (The enforceability of agreements governing hedging transactions may depend on compliance with applicable ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 477.75 Td (statutory and other regulatory requirements and, depending on the identity of the counterparty) Tj ET Q q 0 0 0 rg BT 463.96 477.75 Td (, applicable ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 465.75 Td (international requirements. New or amended regulations may be imposed by the CFTC, the SEC, the Federal ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 453.75 Td (Reserve, the European Commission or other financial regulators, other governmental or intergovernmental ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 441.75 Td (regulatory authorities, or self-regulatory organizations that supervise the financial markets, and could adversely ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 429.75 Td (af) Tj ET Q q 0 0 0 rg BT 58.16 429.75 Td (fect us and our funds. In particular) Tj ET Q q 0 0 0 rg BT 211.58 429.75 Td (, these agencies are empowered to promulgate a variety of new rules pursuant ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 417.75 Td (to recently enacted financial reform legislation in the United States. W) Tj ET Q q 0 0 0 rg BT 360.53 417.75 Td (e and our funds also may be adversely ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 405.75 Td (af) Tj ET Q q 0 0 0 rg BT 58.16 405.75 Td (fected by changes in the enforcement or interpretation of statutes and rules by these regulatory authorities or self-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 393.75 Td (regulatory organizations.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 375.75 Td (In addition, the securities and futures markets are subject to comprehensive statutes and regulations. For ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 363.75 Td (example, the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 165.06 363.75 Td (Act could have an adverse ef) Tj ET Q q 0 0 0 rg BT 293.85 363.75 Td (fect on our funds’) Tj ET Q q 0 0 0 rg BT 370.19 363.75 Td ( ability to use derivative instruments. ) Tj ET Q q 0 0 0 rg BT 536.75 363.75 Td (The ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 351.75 Td (Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 105.02 351.75 Td (Act is designed to impose stringent regulation on the over-the-counter derivatives market in an attempt ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 339.75 Td (to increase transparency and accountability and provides for) Tj ET Q q 0 0 0 rg BT 316.27 339.75 Td (, among other things, clearing, execution, margin, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 327.75 Td (reporting, recordkeeping, business conduct, documentation, disclosure, position limit, minimum net capital and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 315.75 Td (registration requirements. ) Tj ET Q q 0 0 0 rg BT 168.39 315.75 Td (Although the CFTC has released final rules relating to clearing, execution reporting, risk ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 303.75 Td (management, compliance, position limit, anti-fraud, consumer protection, portfolio reconciliation, documentation, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 291.75 Td (recordkeeping, business conduct and margin and registration requirements under the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 484.69 291.75 Td (Act, many of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 279.75 Td (provisions are subject to further final rulemaking, and thus the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 380.73 279.75 Td (Act’) Tj ET Q q 0 0 0 rg BT 397.22 279.75 Td (s ultimate impact remains unclear) Tj ET Q q 0 0 0 rg BT 545.61 279.75 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 261.75 Td (New regulations could, among other things, restrict our funds’) Tj ET Q q 0 0 0 rg BT 351.44 261.75 Td ( ability to engage in derivatives transactions ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 249.75 Td (\(for example, by making certain types of derivatives transactions no longer available to our funds\) and/or make ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 237.75 Td (them less ef) Tj ET Q q 0 0 0 rg BT 103.73 237.75 Td (fective. In particular) Tj ET Q q 0 0 0 rg BT 192.66 237.75 Td (, new margin requirements and capital charges, even when not directly applicable ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 225.75 Td (to our funds, may increase the pricing of derivatives transacted by our funds. New exchange trading and trade ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 213.75 Td (reporting requirements and position limits may lead to changes in the liquidity of derivative transactions, or higher ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 201.75 Td (pricing or reduced liquidity in the derivatives markets, or the reduction of arbitrage opportunities for our funds. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 189.75 Td (Limits or restrictions applicable to the counterparties with which our funds engage in derivative transactions could ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 177.75 Td (also limit the ability of our funds in using derivative instruments, af) Tj ET Q q 0 0 0 rg BT 340.51 177.75 Td (fect the pricing or other factors relating to these ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 165.75 Td (instruments or may change the availability of certain investments. ) Tj ET Q q 0 0 0 rg BT 344.03 165.75 Td (As a result, our funds may be unable to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 153.75 Td (ef) Tj ET Q q 0 0 0 rg BT 58.16 153.75 Td (fectively carry out their investment strategies. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 135.75 Td (For entities designated by the CFTC or the SEC as SDs, SBSDs, major swap participants or major security-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 123.75 Td (based swap participants, the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 234.55 123.75 Td (Act imposes substantial regulatory) Tj ET Q q 0 0 0 rg BT 386.10 123.75 Td (, reporting and compliance ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 111.75 Td (requirements. Based on our current use of derivatives, we are not required to register as an SD, SBSD, major ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 99.75 Td (swap participant or security-based major swap participant at this time. If we are later designated as an SD, SBSD, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 87.75 Td (major swap participant or major security-based swap participant, our business will be subject to increased ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 75.75 Td (regulatory requirements, including registration requirements, additional recordkeeping and reporting obligations, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 63.75 Td (external and internal business conduct standards, position limits monitoring, and capital and margin thresholds, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 51.75 Td (which will in turn increase our compliance cost) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.09 51.75 Td (.) Tj ET Q endstream endobj 89 0 obj <> endobj 90 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (44) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 741.75 Td (In December 2012, the CFTC issued a final rule requiring certain interest-rate swaps and index-based credit-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (default swaps to be centrally cleared, which is applicable to all swap counterparties not eligible for certain narrowly-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (defined exemption or exceptions. Such clearing requirement may af) Tj ET Q q 0 0 0 rg BT 351.65 717.75 Td (fect our and our funds’) Tj ET Q q 0 0 0 rg BT 450.79 717.75 Td ( ability to negotiate ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 705.75 Td (individualized terms and/or may increase the costs of entering into such swap transactions \(for example, by ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 693.75 Td (increasing collateral or capital requirements\). Clearing mandates issued by regulators with respect to other types of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 681.75 Td (swaps could have additional impact on our ability to use derivative instruments as part of our hedging or investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 669.75 Td (strategies.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 651.75 Td (Furthermore, on December 15, 2015, the CFTC published a final rule governing margin requirements for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 639.75 Td (uncleared swaps entered into by registered SDs and major swap participants who are not supervised by the Board ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 627.75 Td (of Governors of the Federal Reserve System, the Of) Tj ET Q q 0 0 0 rg BT 281.03 627.75 Td (fice of the Comptroller of the Currency) Tj ET Q q 0 0 0 rg BT 449.25 627.75 Td (, the Federal Deposit ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 615.75 Td (Insurance Corporation, the Farm Credit ) Tj ET Q q 0 0 0 rg BT 226.19 615.75 Td (Administration and the Federal Housing Finance ) Tj ET Q q 0 0 0 rg BT 442.43 615.75 Td (Agency \(collectively) Tj ET Q q 0 0 0 rg BT 529.50 615.75 Td (, the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 603.75 Td (“Prudential Regulators”\), referred to as “covered swap entities.” ) Tj ET Q q 0 0 0 rg BT 334.94 603.75 Td (The final rule generally requires covered swap ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 591.75 Td (entities, subject to certain thresholds and exemptions, to collect and post margin in respect of uncleared swap ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 579.75 Td (transactions with other covered swap entities and financial end-users. In particular) Tj ET Q q 0 0 0 rg BT 415.20 579.75 Td (, the final rule requires covered ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 567.75 Td (swap entities and financial end) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.20 567.75 Td (-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 189.53 567.75 Td (users having “material swaps exposure,” defined as an average aggregate daily ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 555.75 Td (notional amount of uncleared swaps exceeding a certain specified amount, to collect and/or post \(as applicable\) a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 543.75 Td (minimum amount of “initial margin” in respect of each uncleared swap; the specified amounts for material swaps ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 531.75 Td (exposure dif) Tj ET Q q 0 0 0 rg BT 104.30 531.75 Td (fer subject to a phase-in schedule until September 1, 2020, when the average aggregate daily notional ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 519.75 Td (amount will thenceforth be $8 billion as calculated from June, July and ) Tj ET Q q 0 0 0 rg BT 362.40 519.75 Td (August of the previous calendar year) Tj ET Q q 0 0 0 rg BT 524.73 519.75 Td (. In ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 507.75 Td (addition, the final rule requires covered swap entities entering into uncleared swaps with other covered swap ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 495.75 Td (entities or financial end-users, regardless of swaps exposure, to post and/or collect \(as applicable\) “variation ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 483.75 Td (margin” in reflection of changes in the mark-to-market value of an uncleared swap since the swap was executed or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 471.75 Td (the last time such margin was exchanged. ) Tj ET Q q 0 0 0 rg BT 241.58 471.75 Td (The CFTC final rule is broadly consistent with a similar rule requiring the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 459.75 Td (exchange of initial and variation margin adopted by the Prudential Regulators in October 2015, which apply to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 447.75 Td (registered SDs, major swap participants, SBSDs and major security-based swap participants that are supervised by ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 435.75 Td (one or more of the Prudential Regulators. ) Tj ET Q q 0 0 0 rg BT 238.81 435.75 Td (These newly adopted rules on margin requirements for uncleared swaps ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 423.75 Td (could limit our or our funds’) Tj ET Q q 0 0 0 rg BT 169.68 423.75 Td ( available liquidity and use of derivatives, which could have an adverse impact on us or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 411.75 Td (our funds.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 393.75 Td (The SEC has also indicated that it may adopt new policies on the use of derivatives by registered investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 381.75 Td (companies. Such policies could af) Tj ET Q q 0 0 0 rg BT 203.24 381.75 Td (fect the nature and extent of derivatives use by us or certain of our funds. On ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 369.75 Td (August 31, 201) Tj ET Q q 0 0 0 rg BT 116.53 369.75 Td (1, the SEC issued a concept release to seek public comment on a wide range of issues raised by ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 357.75 Td (the use of derivatives by investment companies. ) Tj ET Q q 0 0 0 rg BT 268.26 357.75 Td (Then, on December 1) Tj ET Q q 0 0 0 rg BT 364.24 357.75 Td (1, 2015, the SEC proposed new rules to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 345.75 Td (govern the use of derivatives by registered investment companies and business development companies ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 333.75 Td (\(“registered funds”\). It is possible that such regulations, once adopted, could limit our funds’) Tj ET Q q 0 0 0 rg BT 455.95 333.75 Td ( use of derivatives, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 321.75 Td (which could have an adverse impact on us or our funds.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 303.75 Td (In ) Tj ET Q q 0 0 0 rg BT 91.12 303.75 Td (addition ) Tj ET Q q 0 0 0 rg BT 128.93 303.75 Td (to ) Tj ET Q q 0 0 0 rg BT 140.04 303.75 Td (U.S. ) Tj ET Q q 0 0 0 rg BT 162.27 303.75 Td (laws ) Tj ET Q q 0 0 0 rg BT 185.05 303.75 Td (and ) Tj ET Q q 0 0 0 rg BT 204.52 303.75 Td (regulations ) Tj ET Q q 0 0 0 rg BT 256.22 303.75 Td (relating ) Tj ET Q q 0 0 0 rg BT 291.79 303.75 Td (to ) Tj ET Q q 0 0 0 rg BT 302.91 303.75 Td (derivatives, ) Tj ET Q q 0 0 0 rg BT 356.26 303.75 Td (certain ) Tj ET Q /GS0 gs q 43.91 0 0 10.38 389.06 301.65 cm /I20 Do Q q 0 0 0 rg BT 432.97 303.75 Td (regulatory ) Tj ET Q q 0 0 0 rg BT 480.21 303.75 Td (authorities, ) Tj ET Q q 0 0 0 rg BT 531.91 303.75 Td (such ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 291.75 Td (as those in the EU, have passed or proposed, or may propose in the future, legislation similar to that imposed by ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 279.75 Td (the ) Tj ET Q /GS0 gs q 56.97 0 0 10.38 66.68 277.65 cm /I21 Do Q q 0 0 0 rg BT 123.37 279.75 Td (Act. ) Tj ET Q q 0 0 0 rg BT 143.38 279.75 Td ( ) Tj ET Q q 0 0 0 rg BT 145.98 279.75 Td (The ) Tj ET Q q 0 0 0 rg BT 165.99 279.75 Td (regulatory ) Tj ET Q q 0 0 0 rg BT 213.23 279.75 Td (changes ) Tj ET Q q 0 0 0 rg BT 253.82 279.75 Td (in ) Tj ET Q q 0 0 0 rg BT 264.38 279.75 Td (the ) Tj ET Q q 0 0 0 rg BT 281.06 279.75 Td (EU ) Tj ET Q q 0 0 0 rg BT 297.73 279.75 Td (would ) Tj ET Q q 0 0 0 rg BT 326.64 279.75 Td (impact ) Tj ET Q q 0 0 0 rg BT 358.87 279.75 Td (a ) Tj ET Q q 0 0 0 rg BT 367.21 279.75 Td (broad ) Tj ET Q q 0 0 0 rg BT 395.56 279.75 Td (range ) Tj ET Q q 0 0 0 rg BT 423.92 279.75 Td (of ) Tj ET Q q 0 0 0 rg BT 435.03 279.75 Td (counterparties, ) Tj ET Q q 0 0 0 rg BT 503.96 279.75 Td (both ) Tj ET Q q 0 0 0 rg BT 526.20 279.75 Td (outside ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 267.75 Td (and within the EU, and are expected to potentially increase the cost of transacting derivatives for us and our funds ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 255.75 Td (\(particularly with banks and other dealers directly subject to such regulations\).) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 237.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 130.40 237.75 Td (, in May 2016, the International Swaps and Derivatives ) Tj ET Q q 0 0 0 rg BT 374.43 237.75 Td (Association published the ISDA) Tj ET Q q 0 0 0 rg BT 513.40 237.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 225.75 Td (Resolution Stay Jurisdictional Modular Protocol \(“ISDA) Tj ET Q q 0 0 0 rg BT 291.22 225.75 Td ( JMP”\), which is aimed at achieving the same policy goals as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 213.75 Td (the ISDA) Tj ET Q q 0 0 0 rg BT 89.47 213.75 Td ( 2015 Universal Resolution Stay Protocol published in November 2015 with respect to the orderly ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 201.75 Td (resolution of systemically important financial institutions. ) Tj ET Q q 0 0 0 rg BT 303.26 201.75 Td (The ISDA) Tj ET Q q 0 0 0 rg BT 346.06 201.75 Td ( JMP) Tj ET Q q 0 0 0 rg BT 368.66 201.75 Td ( will enable parties to amend the terms of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 189.75 Td (protocol covered agreements to aid compliance with certain regulatory requirements in various jurisdictions that, in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 177.75 Td (general, require entities subject to those regulatory requirements to obtain from their counterparties a contractual ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 165.75 Td (recognition of the application of stays on or overrides of certain termination rights under the home-country special ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 153.75 Td (resolution regime \(“SRR”\) of such regulated entity \(“Stay Regulations”\). W) Tj ET Q q 0 0 0 rg BT 379.38 153.75 Td (e have adhered to the ISDA) Tj ET Q q 0 0 0 rg BT 502.25 153.75 Td ( JMP) Tj ET Q q 0 0 0 rg BT 523.74 153.75 Td (, and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 141.75 Td (are bound by its terms. Under the terms of the ISDA) Tj ET Q q 0 0 0 rg BT 282.33 141.75 Td ( JMP) Tj ET Q q 0 0 0 rg BT 303.82 141.75 Td (, the right of funds and accounts we advise could be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 129.75 Td (substantially and negatively impacted in the event of insolvency or default by one of our financial counterparties.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 111.75 Td (W) Tj ET Q q 0 0 0 rg BT 59.26 111.75 Td (e are subject to substantial litigation risks and may face significant liabilities and damage to our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 99.75 Td (professional reputation as a result.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 81.75 Td (In recent years, the volume of claims and amount of damages claimed in litigation and regulatory ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 69.75 Td (proceedings against investment managers have been increasing. W) Tj ET Q q 0 0 0 rg BT 353.33 69.75 Td (e make investment decisions on behalf of our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 57.75 Td (clients that could result in substantial losses. ) Tj ET Q q 0 0 0 rg BT 252.14 57.75 Td (This may subject us to the risk of legal liabilities or actions alleging ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 45.75 Td (negligence, breach of fiduciary duty or breach of contract. Heightened standards of care or additional fiduciary ) Tj ET Q endstream endobj 91 0 obj <> endobj 92 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (45) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (duties may apply in certain of our managed accounts or other advisory contracts. ) Tj ET Q q 0 0 0 rg BT 412.78 741.75 Td (T) Tj ET Q q 0 0 0 rg BT 417.78 741.75 Td (o the extent we enter into ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (agreements with clients containing such terms or applicable law mandates a heightened standard of care or duties, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (we could, for example, be liable to certain clients for acts of simple negligence or breach of such duties.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 699.75 Td (Further) Tj ET Q q 0 0 0 rg BT 111.68 699.75 Td (, we may be subject to litigation arising from investor dissatisfaction with the performance of our funds ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 687.75 Td (or from third-party allegations that we improperly exercised control or influence over portfolio investments or that we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 675.75 Td (are liable for actions or inactions taken by portfolio companies that such third parties argue we control. In addition, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 663.75 Td (we and our af) Tj ET Q q 0 0 0 rg BT 110.42 663.75 Td (filiates that are the investment managers and general partners of our funds, our funds themselves and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 651.75 Td (those of our employees who are our) Tj ET Q q 0 0 0 rg BT 208.98 651.75 Td (, our subsidiaries’) Tj ET Q q 0 0 0 rg BT 286.43 651.75 Td ( or the funds’) Tj ET Q q 0 0 0 rg BT 343.87 651.75 Td ( of) Tj ET Q q 0 0 0 rg BT 354.80 651.75 Td (ficers and directors are each exposed to the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 639.75 Td (risks of litigation specific to the funds’) Tj ET Q q 0 0 0 rg BT 214.15 639.75 Td ( investment activities and portfolio companies and, in cases where our funds ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 627.75 Td (own controlling interests in public companies, to the risk of shareholder litigation by the public companies’) Tj ET Q q 0 0 0 rg BT 514.88 627.75 Td ( other ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 615.75 Td (shareholders. Moreover) Tj ET Q q 0 0 0 rg BT 157.83 615.75 Td (, we are exposed to risks of litigation or investigation by investors and regulators relating to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 603.75 Td (our having engaged, or our funds having engaged, in transactions that presented conflicts of interest that were not ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 591.75 Td (properly addressed. Please see also “—Extensive regulation in the United States and abroad af) Tj ET Q q 0 0 0 rg BT 475.07 591.75 Td (fects our activities ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 579.75 Td (and creates the potential for significant liabilities and penalties that could adversely af) Tj ET Q q 0 0 0 rg BT 426.71 579.75 Td (fect our business and results ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 567.75 Td (of operations.”) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 549.75 Td (Substantial legal liability could materially adversely af) Tj ET Q q 0 0 0 rg BT 314.94 549.75 Td (fect our business, financial condition or results of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 537.75 Td (operations or cause significant reputational harm to us, which could seriously harm our business. W) Tj ET Q q 0 0 0 rg BT 492.81 537.75 Td (e depend to a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 525.75 Td (large extent on our business relationships and our reputation for integrity and high-caliber professional services to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 513.75 Td (attract and retain investors. ) Tj ET Q q 0 0 0 rg BT 175.62 513.75 Td (As a result, allegations of improper conduct by private litigants or regulators, whether ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 501.75 Td (the ultimate outcome is favorable or unfavorable to us, as well as negative publicity and press speculation about us, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 489.75 Td (our investment activities or the investment industry in general, whether or not valid, may harm our reputation, which ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 477.75 Td (may be more damaging to our business than to other types of businesses.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 459.75 Td (Employee misconduct, which is dif) Tj ET Q q 0 0 0 rg BT 215.96 459.75 Td (ficult to detect and deter) Tj ET Q q 0 0 0 rg BT 331.53 459.75 Td (, could harm us by impairing our ability to ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 447.75 Td (attract and retain clients and subject us to significant legal liability and reputational harm. Fraud and other ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 435.75 Td (deceptive practices or other misconduct at the portfolio companies of our funds could similarly subject us ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 423.75 Td (to liability and reputational damage and also harm our performance.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 405.75 Td (There have been a number of highly publicized cases involving fraud or other misconduct by individuals in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 393.75 Td (the financial services industry) Tj ET Q q 0 0 0 rg BT 179.87 393.75 Td (, and there is a risk that our employees could engage in misconduct that adversely ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 381.75 Td (af) Tj ET Q q 0 0 0 rg BT 58.16 381.75 Td (fects our business. W) Tj ET Q q 0 0 0 rg BT 156.35 381.75 Td (e are subject to a number of obligations and standards arising from our investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 369.75 Td (management business and our authority over the assets we manage. ) Tj ET Q q 0 0 0 rg BT 361.67 369.75 Td (The violation of any of these obligations or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 357.75 Td (standards by any of our employees or advisors could adversely af) Tj ET Q q 0 0 0 rg BT 340.53 357.75 Td (fect our clients and us. Our business often ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 345.75 Td (requires that we deal with confidential matters of great significance to companies in which we may invest or to our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 333.75 Td (investors and advisory clients. If our employees improperly use or disclose confidential information, we could be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 321.75 Td (subject to regulatory sanctions and suf) Tj ET Q q 0 0 0 rg BT 220.47 321.75 Td (fer serious harm to our reputation, financial position and current and future ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 309.75 Td (business relationships. It is not always possible to deter employee misconduct, and the precautions we take to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 297.75 Td (prevent this activity may not be ef) Tj ET Q q 0 0 0 rg BT 198.22 297.75 Td (fective in all cases. If our employees engage in misconduct, or if they are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 285.75 Td (accused of misconduct, our business and our reputation could be adversely af) Tj ET Q q 0 0 0 rg BT 395.02 285.75 Td (fected.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 267.75 Td (In recent years, the U.S. Department of Justice and the SEC have devoted greater resources to enforcement ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 255.75 Td (of the FCP) Tj ET Q q 0 0 0 rg BT 97.06 255.75 Td (A. In addition, the United Kingdom has significantly expanded the reach of its anti-bribery laws. While ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 243.75 Td (we have developed and implemented policies and procedures designed to ensure compliance by us and our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 231.75 Td (personnel with the FCP) Tj ET Q q 0 0 0 rg BT 153.20 231.75 Td (A, such policies and procedures may not be ef) Tj ET Q q 0 0 0 rg BT 358.13 231.75 Td (fective in all instances to prevent violations. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 219.75 Td (Any determination that we or our employees have violated the FCP) Tj ET Q q 0 0 0 rg BT 346.08 219.75 Td (A, UK anti-bribery laws or other applicable anti-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 207.75 Td (corruption laws could subject us to, among other things, civil and criminal penalties, material fines, profit ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 195.75 Td (disgorgement, injunctions on future conduct, securities litigation and a general loss of investor confidence, any one ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 183.75 Td (of which could adversely af) Tj ET Q q 0 0 0 rg BT 169.88 183.75 Td (fect our business, financial condition or results of operations.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 165.75 Td (In addition, we may also be adversely af) Tj ET Q q 0 0 0 rg BT 257.70 165.75 Td (fected if there is misconduct by personnel of portfolio companies in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 153.75 Td (which our funds invest. For example, financial fraud or other deceptive practices at such portfolio companies, or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 141.75 Td (failures by personnel at such portfolio companies to comply with anti-bribery) Tj ET Q q 0 0 0 rg BT 384.98 141.75 Td (, trade sanctions or other legal and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 129.75 Td (regulatory requirements could adversely af) Tj ET Q q 0 0 0 rg BT 238.80 129.75 Td (fect our business and reputation. Such misconduct might undermine our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 117.75 Td (due diligence ef) Tj ET Q q 0 0 0 rg BT 119.87 117.75 Td (forts with respect to such companies and could negatively af) Tj ET Q q 0 0 0 rg BT 386.50 117.75 Td (fect the valuation of our funds’) Tj ET Q q 0 0 0 rg BT 519.55 117.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 105.75 Td (investments. In addition, we may face increased risk of such misconduct to the extent our funds’) Tj ET Q q 0 0 0 rg BT 476.51 105.75 Td ( investment in non-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 93.75 Td (U.S. markets, particularly emerging markets, increases.) Tj ET Q endstream endobj 93 0 obj <> endobj 94 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (46) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Failure to maintain the security of our information and technology networks, including personally ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (identifiable and client information, intellectual property and proprietary business information could have a ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (material adverse ef) Tj ET Q q 0 0 0 rg BT 140.43 717.75 Td (fect on us. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 699.75 Td (Security breaches and other disruptions of our information and technology networks could compromise our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 687.75 Td (information and intellectual property and expose us to liability) Tj ET Q q 0 0 0 rg BT 319.41 687.75 Td (, reputational harm and significant remediation costs, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 675.75 Td (which could cause material harm to our business and financial results. In the ordinary course of our business, we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 663.75 Td (collect and store sensitive data, including our proprietary business information and intellectual property) Tj ET Q q 0 0 0 rg BT 502.29 663.75 Td (, and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 651.75 Td (personally identifiable information of our employees and our clients, in our data centers and on our networks. ) Tj ET Q q 0 0 0 rg BT 532.87 651.75 Td (The ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 639.75 Td (secure processing, maintenance and transmission of this information are critical to our operations. ) Tj ET Q q 0 0 0 rg BT 485.22 639.75 Td (Although we take ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 627.75 Td (various measures and have made, and will continue to make, significant investments to ensure the integrity of our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 615.75 Td (systems and to safeguard against such failures or security breaches, there can be no assurance that these ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 603.75 Td (measures and investments will provide protection. Despite our security measures, our information technology and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 591.75 Td (infrastructure may be vulnerable to attacks by third parties or breached due to employee error) Tj ET Q q 0 0 0 rg BT 462.99 591.75 Td (, malfeasance or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 579.75 Td (other disruptions. Certain of our funds invest in strategic assets having a national or regional profile or in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 567.75 Td (infrastructure assets, the nature of which could expose them to a greater risk of being subject to a terrorist attack or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 555.75 Td (security breach. In addition, we and our employees may be the target of fraudulent emails or other targeted ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 543.75 Td (attempts to gain unauthorized access to proprietary or sensitive information.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 525.75 Td (There has been an increase in the frequency and sophistication of the cyber and security threats we face, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 513.75 Td (with attacks ranging from those common to businesses generally to those that are more advanced and persistent, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 501.75 Td (which may target us because, as an investment management firm, we hold confidential and other price-sensitive ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 489.75 Td (information about the portfolio companies of our funds and their potential investments. ) Tj ET Q q 0 0 0 rg BT 435.23 489.75 Td (As a result, we may face a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 477.75 Td (heightened risk of a security breach or disruption with respect to sensitive information resulting from an attack by ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 465.75 Td (computer hackers, foreign governments or cyber terrorists. ) Tj ET Q q 0 0 0 rg BT 314.92 465.75 Td (The costs related to cyber or other security threats or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 453.75 Td (disruptions may not be fully insured or indemnified by other means. In addition, cybersecurity has become a top ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 441.75 Td (priority for regulators around the world. For example, the SEC has announced that one of the 2017 examination ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 429.75 Td (priorities for the OCIE is on investment firms’) Tj ET Q q 0 0 0 rg BT 247.47 429.75 Td ( cybersecurity procedures and controls, including testing the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 417.75 Td (implementation of those controls.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 399.75 Td (A) Tj ET Q q 0 0 0 rg BT 92.12 399.75 Td ( significant actual or potential theft, loss, corruption, exposure, fraudulent use or misuse of client, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 387.75 Td (employee or other personally identifiable or proprietary business data, whether by third parties or as a result of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 375.75 Td (employee malfeasance or otherwise, non-compliance with our contractual or other legal obligations regarding such ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 363.75 Td (data or intellectual property or a violation of our privacy and security policies with respect to such data could result ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 351.75 Td (in significant remediation and other costs, fines, litigation or regulatory actions against us. Such an event could ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 339.75 Td (additionally disrupt our operations and the services we provide to clients, damage our reputation, result in a loss of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 327.75 Td (a competitive advantage, impact our ability to provide timely and accurate financial data, and cause a loss of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 315.75 Td (confidence in our services and financial reporting, which could adversely af) Tj ET Q q 0 0 0 rg BT 381.11 315.75 Td (fect our business, revenues, competitive ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 303.75 Td (position and investor confidence. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 285.75 Td (Interruption of our information technology) Tj ET Q q 0 0 0 rg BT 250.72 285.75 Td (, communications systems or data services could disrupt our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 273.75 Td (business, result in losses or limit our growth.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 255.75 Td (W) Tj ET Q q 0 0 0 rg BT 89.26 255.75 Td (e rely heavily on our financial, accounting, communications) Tj ET Q BT /F3 10.00 Tf ET BT /F3 6.50 Tf ET q 0 0 0 rg BT 349.95 254.37 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 351.76 255.75 Td (and other data processing systems. If our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 243.75 Td (systems do not operate properly) Tj ET Q q 0 0 0 rg BT 192.11 243.75 Td (, are disabled or are compromised, we could suf) Tj ET Q q 0 0 0 rg BT 404.81 243.75 Td (fer financial loss, a disruption of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 231.75 Td (our business, liability to our funds, regulatory intervention or reputational damage. Our information technology and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 219.75 Td (communications systems are vulnerable to damage or disruption from fire, power loss, telecommunications failure, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 207.75 Td (system malfunctions, natural disasters such as hurricanes, earthquakes and floods, acts of war or terrorism, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 195.75 Td (employee errors or malfeasance, computer viruses, cyber-attacks, or other events which are beyond our control. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 177.75 Td (W) Tj ET Q q 0 0 0 rg BT 89.26 177.75 Td (e depend on our headquarters in Los ) Tj ET Q q 0 0 0 rg BT 255.50 177.75 Td (Angeles, where a substantial portion of our personnel are located, for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 165.75 Td (the continued operation of our business. ) Tj ET Q q 0 0 0 rg BT 232.91 165.75 Td (An earthquake or other disaster or a disruption in the infrastructure that ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 153.75 Td (supports our business, including a disruption involving electronic communications or other services used by us or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 141.75 Td (third parties with whom we conduct business, or directly af) Tj ET Q q 0 0 0 rg BT 307.71 141.75 Td (fecting our headquarters, could have a material adverse ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 129.75 Td (impact on our ability to continue to operate our business without interruption. Insurance and other safeguards might ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 117.75 Td (only partially reimburse us for our losses, if at all. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 99.75 Td (In ) Tj ET Q q 0 0 0 rg BT 91.12 99.75 Td (addition, ) Tj ET Q q 0 0 0 rg BT 131.70 99.75 Td (we ) Tj ET Q q 0 0 0 rg BT 147.27 99.75 Td (rely ) Tj ET Q q 0 0 0 rg BT 166.16 99.75 Td (on ) Tj ET Q /GS0 gs q 49.46 0 0 10.38 180.06 97.65 cm /I22 Do Q q 0 0 0 rg BT 229.52 99.75 Td (service ) Tj ET Q q 0 0 0 rg BT 263.97 99.75 Td (providers ) Tj ET Q q 0 0 0 rg BT 307.88 99.75 Td (for ) Tj ET Q q 0 0 0 rg BT 322.33 99.75 Td (certain ) Tj ET Q q 0 0 0 rg BT 355.12 99.75 Td (aspects ) Tj ET Q q 0 0 0 rg BT 392.36 99.75 Td (of ) Tj ET Q q 0 0 0 rg BT 403.48 99.75 Td (our ) Tj ET Q q 0 0 0 rg BT 420.71 99.75 Td (business, ) Tj ET Q q 0 0 0 rg BT 465.74 99.75 Td (including ) Tj ET Q q 0 0 0 rg BT 507.99 99.75 Td (software ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 87.75 Td (vendors for portfolio management and accounting software, outside financial institutions for back of) Tj ET Q q 0 0 0 rg BT 487.29 87.75 Td (fice processing ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 75.75 Td (and ) Tj ET Q q 0 0 0 rg BT 69.46 75.75 Td (custody ) Tj ET Q q 0 0 0 rg BT 106.70 75.75 Td (of ) Tj ET Q q 0 0 0 rg BT 117.82 75.75 Td (securities ) Tj ET Q q 0 0 0 rg BT 162.84 75.75 Td (and ) Tj ET Q /GS0 gs q 49.46 0 0 10.38 182.30 73.65 cm /I23 Do Q /GS0 gs q 68.92 0 0 10.38 231.76 73.65 cm /I24 Do Q q 0 0 0 rg BT 300.68 75.75 Td (for ) Tj ET Q q 0 0 0 rg BT 315.13 75.75 Td (the ) Tj ET Q q 0 0 0 rg BT 331.81 75.75 Td (execution ) Tj ET Q q 0 0 0 rg BT 377.40 75.75 Td (of ) Tj ET Q q 0 0 0 rg BT 388.52 75.75 Td (trades. ) Tj ET Q q 0 0 0 rg BT 421.87 75.75 Td ( ) Tj ET Q q 0 0 0 rg BT 424.09 75.75 Td (An ) Tj ET Q q 0 0 0 rg BT 439.10 75.75 Td (interruption ) Tj ET Q q 0 0 0 rg BT 491.91 75.75 Td (or ) Tj ET Q q 0 0 0 rg BT 503.58 75.75 Td (deterioration ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 63.75 Td (in the performance of these third parties or failures of their information systems and technology could cause system ) Tj ET Q endstream endobj 95 0 obj <> endobj 96 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (47) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (interruption, delays, loss, corruption or exposure of critical data or intellectual property and impair the quality of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (funds’) Tj ET Q q 0 0 0 rg BT 76.31 729.75 Td ( operations, which could impact our reputation and hence adversely af) Tj ET Q q 0 0 0 rg BT 386.32 729.75 Td (fect our business. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 711.75 Td (Any such interruption or deterioration in our operations could result in substantial recovery and remediation ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 699.75 Td (costs and liability to our clients, business partners and other third parties. While we have implemented disaster ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 687.75 Td (recovery plans and backup systems to lessen the risk of any material adverse impact, our disaster recovery ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 675.75 Td (planning may not be suf) Tj ET Q q 0 0 0 rg BT 156.00 675.75 Td (ficient to mitigate the harm and cannot account for all eventualities, and a catastrophic ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 663.75 Td (event that results in the destruction or disruption of any of our data, our critical business or information technology ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 651.75 Td (systems could severely af) Tj ET Q q 0 0 0 rg BT 164.31 651.75 Td (fect our ability to conduct our business operations, and as a result, our future operating ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 639.75 Td (results could be materially adversely af) Tj ET Q q 0 0 0 rg BT 222.12 639.75 Td (fected. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 621.75 Td (The vote by the United Kingdom to exit the European Union could adversely af) Tj ET Q q 0 0 0 rg BT 423.20 621.75 Td (fect us.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 603.75 Td (On June 23, 2016, the United Kingdom \(the “U.K.”\) held a referendum on whether to remain a member state ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 591.75 Td (of the EU in which a majority of voters approved an exit from the EU, commonly referred to as “Brexit.” ) Tj ET Q q 0 0 0 rg BT 507.22 591.75 Td (The ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 579.75 Td (referendum was non-binding; however) Tj ET Q q 0 0 0 rg BT 219.55 579.75 Td (, as a result of the referendum, the U.K. government has begun negotiating ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 567.75 Td (the terms of the U.K. withdrawal from the EU. Under the process for withdrawing from the EU contemplated in the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 555.75 Td (T) Tj ET Q q 0 0 0 rg BT 55.74 555.75 Td (reaty on European Union, the U.K. will remain a member state until a withdrawal agreement is entered into or) Tj ET Q q 0 0 0 rg BT 537.65 555.75 Td (, if ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 543.75 Td (earlier \(and no extension is agreed\), two years following notification of the U.K.’) Tj ET Q q 0 0 0 rg BT 400.00 543.75 Td (s intention to withdraw from the EU. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 531.75 Td (The U.K. has not formally notified the European Council of its intention to leave, and there is no certainty that the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 519.75 Td (U.K. government will do so, though on February 1, 2017, a majority of the House of Commons voted in favor of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 507.75 Td (European Union \(Notification of Withdrawal\) Bill. Instead, the U.K. government may seek to negotiate a bespoke ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 495.75 Td (withdrawal right with the agreement of the remaining EU member states. In either case, it is expected that it will ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 483.75 Td (take longer than two years before the terms of a withdrawal agreement are negotiated and known. ) Tj ET Q q 0 0 0 rg BT 488.59 483.75 Td (As a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 471.75 Td (consequence, it is likely that the U.K. will remain a member state subject to EU law with privileges to provide ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 459.75 Td (services under the single market directives for at least two more years.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 441.75 Td (The announcement of the referendum result caused significant volatility in global stock markets and currency ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 429.75 Td (exchange fluctuations, including a sharp decline in the value of the British pound sterling and the equity prices for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 417.75 Td (U.K.-dependent companies. ) Tj ET Q q 0 0 0 rg BT 179.34 417.75 Td (The long-term ef) Tj ET Q q 0 0 0 rg BT 252.52 417.75 Td (fects of Brexit are expected to be far-reaching and will depend on, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 405.75 Td (among other things, any agreements the U.K. makes to retain access to EU markets either during a transitional ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 393.75 Td (period or more permanently) Tj ET Q q 0 0 0 rg BT 172.09 393.75 Td (. Brexit and the perceptions as to its impact may adversely af) Tj ET Q q 0 0 0 rg BT 444.26 393.75 Td (fect business activity and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 381.75 Td (economic conditions in Europe and globally) Tj ET Q q 0 0 0 rg BT 241.60 381.75 Td (, and could continue to contribute to instability in global financial and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 369.75 Td (foreign-exchange markets. Consequently) Tj ET Q q 0 0 0 rg BT 234.36 369.75 Td (, the investments of our funds denominated in British pounds sterling are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 357.75 Td (subject to increased risks related to these exchange-rate fluctuations, which could produce market declines that ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 345.75 Td (could negatively impact our ) Tj ET Q q 0 0 0 rg BT 173.40 345.75 Td (AUM. In addition, the announcement of Brexit and the expected withdrawal of the U.K. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 333.75 Td (from the EU may also adversely af) Tj ET Q q 0 0 0 rg BT 202.66 333.75 Td (fect the values of the investments held by our funds in the U.K. and EU, and our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 321.75 Td (financial condition, results of operations and cash flow could suf) Tj ET Q q 0 0 0 rg BT 331.65 321.75 Td (fer as a result.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 303.75 Td (Brexit could also have the ef) Tj ET Q q 0 0 0 rg BT 205.45 303.75 Td (fect of disrupting the free movement of goods, services and people between the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 291.75 Td (U.K. and the EU. ) Tj ET Q q 0 0 0 rg BT 130.04 291.75 Td (A) Tj ET Q q 0 0 0 rg BT 136.16 291.75 Td ( number of Oaktree’) Tj ET Q q 0 0 0 rg BT 224.36 291.75 Td (s personnel in the U.K. are EU nationals. Oaktree utilizes passport rights ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 279.75 Td (under certain EU directives to perform activities in the U.K. and in other EU member states, such as the Markets in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 267.75 Td (Financial Instruments Directive 2004/39/EC and the ) Tj ET Q q 0 0 0 rg BT 280.68 267.75 Td (Alternative Investment Fund Managers Directive 201) Tj ET Q q 0 0 0 rg BT 512.83 267.75 Td (1/61/EU. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 255.75 Td (Any disruption to the free movement of goods, services and people between the U.K. and the EU may adversely ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 243.75 Td (impact Oaktree’) Tj ET Q q 0 0 0 rg BT 119.84 243.75 Td (s activities in the U.K. and in other EU member states.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 225.75 Td (In addition, Brexit could lead to legal uncertainty and potentially divergent national laws and regulations as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 213.75 Td (the U.K. determines which EU laws to replace or replicate. ) Tj ET Q q 0 0 0 rg BT 312.90 213.75 Td (Any such new laws and regulations in the U.K. may be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 201.75 Td (dif) Tj ET Q q 0 0 0 rg BT 60.38 201.75 Td (ficult and/or costly to implement and could adversely impact our ability to raise capital from investors in the U.K. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 189.75 Td (and the EU, which could materially reduce our revenue, earnings and cash flow and adversely af) Tj ET Q q 0 0 0 rg BT 476.73 189.75 Td (fect our financial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 177.75 Td (prospects and condition. Furthermore, as a result of Brexit, other European countries may seek to conduct ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 165.75 Td (referenda with respect to their continuing membership with the EU. Given these possibilities and others we may not ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 153.75 Td (anticipate, at this time, it is dif) Tj ET Q q 0 0 0 rg BT 180.43 153.75 Td (ficult to predict how the U.K. withdrawal from the EU will be implemented and what the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 141.75 Td (economic, tax, fiscal, legal, regulatory and other implications will be for the asset management industry and the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 129.75 Td (broader European and global financial markets generally and for our business and our funds and their investments ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 117.75 Td (specifically) Tj ET Q q 0 0 0 rg BT 97.61 117.75 Td (. However) Tj ET Q q 0 0 0 rg BT 144.85 117.75 Td (, any of these ef) Tj ET Q q 0 0 0 rg BT 215.83 117.75 Td (fects of Brexit, and others we cannot anticipate, could adversely af) Tj ET Q q 0 0 0 rg BT 509.14 117.75 Td (fect our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 105.75 Td (business, results of operations, financial prospects and condition, and cash flow) Tj ET Q q 0 0 0 rg BT 401.88 105.75 Td (.) Tj ET Q endstream endobj 97 0 obj <> endobj 98 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (48) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Risks Relating to Our Funds) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 80.00 723.75 Td (Our results of operations are dependent on the performance of our funds. Poor fund performance will result ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 711.75 Td (in reduced revenues. Poor performance of our funds will also make it difficult for us to retain and attract investors to ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 699.75 Td (our funds, to retain and attract qualified professionals and to grow our business. The performance of each fund we ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 687.75 Td (manage is subject to some or all of the following risks.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 669.75 Td (The historical returns attributable to our funds should not be considered indicative of the future results of ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 657.75 Td (our funds or of our future results or of any returns expected on an investment in our Class ) Tj ET Q q 0 0 0 rg BT 482.47 657.75 Td (A) Tj ET Q q 0 0 0 rg BT 489.32 657.75 Td ( units.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 639.75 Td (The historical returns attributable to our funds should not be considered indicative of the future results of our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 627.75 Td (funds, nor are they directly linked to returns on our Class ) Tj ET Q q 0 0 0 rg BT 302.91 627.75 Td (A) Tj ET Q q 0 0 0 rg BT 309.02 627.75 Td ( units. ) Tj ET Q q 0 0 0 rg BT 341.08 627.75 Td (Therefore, Class ) Tj ET Q q 0 0 0 rg BT 417.22 627.75 Td (A) Tj ET Q q 0 0 0 rg BT 423.34 627.75 Td ( unitholders should not ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 615.75 Td (conclude that positive performance of our funds will necessarily result in positive returns on an investment in our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 603.75 Td (Class ) Tj ET Q q 0 0 0 rg BT 77.23 603.75 Td (A) Tj ET Q q 0 0 0 rg BT 83.35 603.75 Td ( units. However) Tj ET Q q 0 0 0 rg BT 154.49 603.75 Td (, poor performance of the funds we manage will cause a decline in our revenues and would ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 591.75 Td (therefore have a negative ef) Tj ET Q q 0 0 0 rg BT 174.35 591.75 Td (fect on our operating results and returns on our Class ) Tj ET Q q 0 0 0 rg BT 412.82 591.75 Td (A) Tj ET Q q 0 0 0 rg BT 418.94 591.75 Td ( units.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 573.75 Td (Moreover) Tj ET Q q 0 0 0 rg BT 121.68 573.75 Td (, with respect to the historical returns of our funds:) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 555.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 555.75 Td (we may create new funds in the future that reflect a dif) Tj ET Q q 0 0 0 rg BT 331.95 555.75 Td (ferent asset mix and dif) Tj ET Q q 0 0 0 rg BT 435.15 555.75 Td (ferent investment strategies, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 543.75 Td (as well as a varied geographic and industry exposure as compared to our present funds, and any such ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 531.75 Td (new funds could have dif) Tj ET Q q 0 0 0 rg BT 201.89 531.75 Td (ferent returns from our existing or previous funds;) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 513.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 513.75 Td (the rates of return of our closed-end funds reflect unrealized gains as of the applicable measurement date ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 501.75 Td (that may never be realized, which may result in a lower internal rate of return and ultimate return for some ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 489.75 Td (closed-end funds from those presented in this annual report; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 471.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 471.75 Td (our funds’) Tj ET Q q 0 0 0 rg BT 135.54 471.75 Td ( returns have previously benefited from investment opportunities and general market conditions ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 459.75 Td (that may not repeat themselves, and there can be no assurance that our current or future funds will be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 447.75 Td (able to avail themselves of profitable investment opportunities; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 429.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 429.75 Td (many of our funds’) Tj ET Q q 0 0 0 rg BT 173.89 429.75 Td ( historical investments were made over a long period of time and over the course of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 417.75 Td (various market and macroeconomic cycles, and the circumstances under which our current or future funds ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 405.75 Td (may make future investments may dif) Tj ET Q q 0 0 0 rg BT 257.43 405.75 Td (fer significantly from those conditions prevailing in the past; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 387.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 387.75 Td (newly-established funds may generate lower returns during the period in which they initially deploy their ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 375.75 Td (capital;) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 357.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 357.75 Td (our funds may not be able to successfully identify) Tj ET Q q 0 0 0 rg BT 309.15 357.75 Td (, make and realize upon any particular investment or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 345.75 Td (generate returns for their investors; and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 327.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 327.75 Td (any material increase or decrease in the size of our funds could result in materially dif) Tj ET Q q 0 0 0 rg BT 469.23 327.75 Td (ferent rates of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 315.75 Td (returns. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.50 297.75 Td (The future internal rate of return for any current or future fund may vary considerably from the historical ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 285.75 Td (internal rate of return generated by any particular fund, or for our funds as a whole.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.77 285.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 421.32 285.75 Td (In addition, future returns will ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 273.75 Td (be af) Tj ET Q q 0 0 0 rg BT 72.06 273.75 Td (fected by the applicable risks described elsewhere in this annual report, including risks of the industries and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 261.75 Td (businesses in which a particular fund invests.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 243.75 Td (Investors in some of our funds may be unable to fulfill their capital commitment obligations, and such ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 231.75 Td (failure could have an adverse ef) Tj ET Q q 0 0 0 rg BT 201.55 231.75 Td (fect on the af) Tj ET Q q 0 0 0 rg BT 263.59 231.75 Td (fected funds.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 213.75 Td (Investors in our closed-end funds make capital commitments that we are entitled to call from those investors ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 201.75 Td (at any time during certain prescribed periods. W) Tj ET Q q 0 0 0 rg BT 264.92 201.75 Td (e depend on investors fulfilling and honoring their commitments ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 189.75 Td (when we call capital from them in order for our closed-end funds to consummate investments and otherwise pay ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 177.75 Td (their obligations when due. ) Tj ET Q q 0 0 0 rg BT 173.97 177.75 Td (Any investor that does not fund a capital call is subject to having a meaningful amount ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 165.75 Td (of its existing capital account forfeited in that fund. However) Tj ET Q q 0 0 0 rg BT 315.70 165.75 Td (, if investors were to fail to honor a significant amount ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 153.75 Td (of capital calls for any particular fund or funds, the af) Tj ET Q q 0 0 0 rg BT 281.61 153.75 Td (fected funds’) Tj ET Q q 0 0 0 rg BT 337.94 153.75 Td ( ability to make new or follow-on investments, and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 141.75 Td (to otherwise satisfy their liabilities when due, could be materially and adversely af) Tj ET Q q 0 0 0 rg BT 408.89 141.75 Td (fected.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 123.75 Td (Certain of our funds invest in relatively high-risk, illiquid, non-publicly traded assets, and we may fail to ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 111.75 Td (realize any profits from these activities ever or for a considerable period of time.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 93.75 Td (Our closed-end funds often invest in securities that are not publicly traded. In many cases, our funds may be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 81.75 Td (prohibited by contract or by applicable securities laws from selling these securities for a period of time. Our funds ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 69.75 Td (generally cannot sell these securities publicly unless either their sale is registered under applicable securities laws ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 57.75 Td (or an exemption from registration is available. ) Tj ET Q q 0 0 0 rg BT 257.14 57.75 Td (The ability of many of our funds, particularly our control investing ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 45.75 Td (funds, to dispose of investments is heavily dependent on the public capital markets. For example, the ability to ) Tj ET Q endstream endobj 99 0 obj <> endobj 100 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (49) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (realize any value from an investment may depend upon the ability to complete an initial public of) Tj ET Q q 0 0 0 rg BT 474.51 741.75 Td (fering of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (portfolio company in which the investment is held. Even if securities are publicly traded, large holdings of securities ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (often can be sold only over a substantial length of time, exposing investment returns to risks of downward ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 705.75 Td (movement in market prices. Moreover) Tj ET Q q 0 0 0 rg BT 220.06 705.75 Td (, because the investment strategy of many of our funds, particularly our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 693.75 Td (control investing funds, often entails our having representation on our funds’) Tj ET Q q 0 0 0 rg BT 385.40 693.75 Td ( public portfolio company boards, our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 681.75 Td (funds may be restricted in their ability to ef) Tj ET Q q 0 0 0 rg BT 237.13 681.75 Td (fect such sales during certain time periods. ) Tj ET Q q 0 0 0 rg BT 431.67 681.75 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 482.62 681.75 Td (, under certain ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 669.75 Td (conditions, our investment funds may be forced to either sell securities at lower prices than they had expected to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 657.75 Td (realize or defer – potentially for a considerable period of time – sales that they had planned to make. W) Tj ET Q q 0 0 0 rg BT 507.86 657.75 Td (e have ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 645.75 Td (made and expect to continue to make significant principal investments in our current and future funds. Contributing ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 633.75 Td (capital to these funds is risky) Tj ET Q q 0 0 0 rg BT 177.09 633.75 Td (, and we may lose some or the entire principal amount of our investments.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 615.75 Td (Our funds make distressed debt investments that involve significant risks and potential additional ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 603.75 Td (liabilities.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 585.75 Td (Certain of our funds invest in obligors and issuers with weak financial conditions, poor operating results, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 573.75 Td (substantial financing needs, negative net worth or significant competitive issues and/or securities that are illiquid, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 561.75 Td (distressed or have other high-risk features. ) Tj ET Q q 0 0 0 rg BT 244.91 561.75 Td (These funds also invest in obligors and issuers that are involved in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 549.75 Td (bankruptcy or reorganization proceedings. In these situations, it may be dif) Tj ET Q q 0 0 0 rg BT 382.23 549.75 Td (ficult to obtain full information as to the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 537.75 Td (exact financial and operating conditions of these obligors and issuers. Furthermore, some of our funds’) Tj ET Q q 0 0 0 rg BT 503.21 537.75 Td ( distressed ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 525.75 Td (debt investments may not be widely traded or may have no recognized market. Depending on the specific fund’) Tj ET Q q 0 0 0 rg BT 543.98 525.75 Td (s ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 513.75 Td (investment profile, a fund’) Tj ET Q q 0 0 0 rg BT 163.77 513.75 Td (s exposure to the investments may be substantial in relation to the market for those ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 501.75 Td (investments, and the acquired assets are likely to be illiquid and dif) Tj ET Q q 0 0 0 rg BT 345.54 501.75 Td (ficult to transfer) Tj ET Q q 0 0 0 rg BT 413.35 501.75 Td (. ) Tj ET Q q 0 0 0 rg BT 421.13 501.75 Td (As a result, it may take a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 489.75 Td (number of years for the market value of the investments to ultimately reflect their intrinsic value as we perceive it.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 471.75 Td (A) Tj ET Q q 0 0 0 rg BT 86.12 471.75 Td ( central strategy of our distressed debt funds, for example, is to anticipate the occurrence of certain ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 459.75 Td (corporate events, such as debt or equity of) Tj ET Q q 0 0 0 rg BT 238.82 459.75 Td (ferings, restructurings, reorganizations, mergers, takeover of) Tj ET Q q 0 0 0 rg BT 505.98 459.75 Td (fers and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 447.75 Td (other transactions. If the relevant corporate event that we anticipate is delayed, changed or never completed, the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 435.75 Td (market price and value of the applicable fund’) Tj ET Q q 0 0 0 rg BT 251.05 435.75 Td (s investment could decline sharply) Tj ET Q q 0 0 0 rg BT 402.61 435.75 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 417.75 Td (In addition, these investments could subject a fund to certain potential additional liabilities that may exceed ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 405.75 Td (the value of its original investment. Under certain circumstances, payments or distributions on certain investments ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 393.75 Td (may be reclaimed if any such payment or distribution is later determined to have been a fraudulent conveyance, a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 381.75 Td (preferential payment or similar transaction under applicable bankruptcy and insolvency laws. In addition, under ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 369.75 Td (certain circumstances, a lender that has inappropriately exercised control of the management and policies of a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 357.75 Td (debtor may have its claims subordinated or disallowed or may be found liable for damages suf) Tj ET Q q 0 0 0 rg BT 465.60 357.75 Td (fered by parties as a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 345.75 Td (result of such actions. In the case where the investment in securities of troubled companies is made in connection ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 333.75 Td (with an attempt to influence a restructuring proposal or plan of reorganization in bankruptcy) Tj ET Q q 0 0 0 rg BT 451.71 333.75 Td (, the fund may become ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 321.75 Td (involved in substantial litigation.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 303.75 Td (Certain of our funds are subject to the fiduciary responsibility and prohibited transaction provisions of ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 291.75 Td (ERISA) Tj ET Q q 0 0 0 rg BT 80.19 291.75 Td ( and the Code, and our business could be adversely af) Tj ET Q q 0 0 0 rg BT 338.96 291.75 Td (fected if certain of our other funds fail to ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 279.75 Td (satisfy an exemption under the “plan assets” regulation under ERISA.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 261.75 Td (Some of our funds are subject to the fiduciary responsibility and prohibited transaction provisions of ERISA) Tj ET Q q 0 0 0 rg BT 550.81 261.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 249.75 Td (and Section 4975 of the Code. For example, we currently manage some of our funds as “plan assets” under ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 237.75 Td (ERISA. With respect to these funds, this results in the application of the fiduciary responsibility standards of ERISA) Tj ET Q q 0 0 0 rg BT 559.14 237.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 225.75 Td (to investments made by such funds, including the requirement of investment prudence and diversification, and the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 213.75 Td (possibility that certain transactions that we enter into, or may have entered into, on behalf of these funds, in the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 201.75 Td (ordinary course of business, might constitute or result in non-exempt prohibited transactions under Section 406 of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 189.75 Td (ERISA) Tj ET Q q 0 0 0 rg BT 79.46 189.75 Td ( or Section 4975 of the Code. ) Tj ET Q q 0 0 0 rg BT 214.55 189.75 Td (A) Tj ET Q q 0 0 0 rg BT 220.67 189.75 Td ( non-exempt prohibited transaction, in addition to imposing potential liability ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 177.75 Td (upon fiduciaries of a plan subject to ) Tj ET Q q 0 0 0 rg BT 209.37 177.75 Td (T) Tj ET Q q 0 0 0 rg BT 215.10 177.75 Td (itle I of ERISA) Tj ET Q q 0 0 0 rg BT 276.80 177.75 Td ( or Section 4975 of the Code, may also result in the imposition ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 165.75 Td (of an excise tax under the Code upon a “party in interest” \(as defined in ERISA\) or “disqualified person” \(as defined ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 153.75 Td (in the Code\) with whom we engaged in the transaction. Some of our other funds currently qualify as venture capital ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 141.75 Td (operating companies \(“VCOCs”\), as defined in the regulations \(the “Plan ) Tj ET Q q 0 0 0 rg BT 371.83 141.75 Td (Asset Regulations”\) promulgated under ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 129.75 Td (ERISA) Tj ET Q q 0 0 0 rg BT 79.46 129.75 Td ( by the U.S. Department of Labor) Tj ET Q q 0 0 0 rg BT 225.65 129.75 Td (, or rely on other exceptions under ERISA) Tj ET Q q 0 0 0 rg BT 409.64 129.75 Td ( and therefore are not subject to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 117.75 Td (the fiduciary requirements of ERISA) Tj ET Q q 0 0 0 rg BT 208.41 117.75 Td ( with respect to their assets. However) Tj ET Q q 0 0 0 rg BT 376.81 117.75 Td (, if these funds fail to satisfy the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 105.75 Td (requirements to qualify as a VCOC for any reason, including an amendment of the Plan ) Tj ET Q q 0 0 0 rg BT 438.55 105.75 Td (Asset Regulations, or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 93.75 Td (another exception under ERISA, such failure could materially interfere with our activities in relation to these funds or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 81.75 Td (expose us to risks related to our failure to comply with the requirements.) Tj ET Q endstream endobj 101 0 obj <> endobj 102 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (50) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Certain of our funds may be subject to risks arising from potential control group liability) Tj ET Q q 0 0 0 rg BT 468.57 741.75 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 723.75 Td (Under ) Tj ET Q q 0 0 0 rg BT 110.01 723.75 Td (ERISA, ) Tj ET Q q 0 0 0 rg BT 145.58 723.75 Td (upon ) Tj ET Q q 0 0 0 rg BT 170.61 723.75 Td (the ) Tj ET Q q 0 0 0 rg BT 187.29 723.75 Td (termination ) Tj ET Q q 0 0 0 rg BT 239.53 723.75 Td (of ) Tj ET Q q 0 0 0 rg BT 250.65 723.75 Td (a ) Tj ET Q /GS0 gs q 58.37 0 0 10.38 258.99 721.65 cm /I25 Do Q q 0 0 0 rg BT 317.36 723.75 Td (single ) Tj ET Q q 0 0 0 rg BT 346.26 723.75 Td (employer ) Tj ET Q q 0 0 0 rg BT 390.17 723.75 Td (defined ) Tj ET Q q 0 0 0 rg BT 425.76 723.75 Td (benefit ) Tj ET Q q 0 0 0 rg BT 458.56 723.75 Td (pension ) Tj ET Q q 0 0 0 rg BT 496.37 723.75 Td (plan, ) Tj ET Q q 0 0 0 rg BT 520.83 723.75 Td (the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 711.75 Td (sponsoring employer and all members of its “controlled group” will be jointly and severally liable for 100% of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 699.75 Td (plan’) Tj ET Q q 0 0 0 rg BT 70.95 699.75 Td (s unfunded benefit liabilities whether or not the controlled group members have ever maintained or participated ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 687.75 Td (in the plan. In addition, the Pension Benefit Guaranty Corporation \(the “PBGC”\) may assert a lien with respect to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 675.75 Td (such liability against any member of the controlled group on up to 30% of the collective net worth of all members of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 663.75 Td (the controlled group. Similarly) Tj ET Q q 0 0 0 rg BT 183.76 663.75 Td (, in the event a participating employer partially or completely withdraws from a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 651.75 Td (multiemployer \(union\) defined benefit pension plan, any withdrawal liability incurred under ERISA) Tj ET Q q 0 0 0 rg BT 478.01 651.75 Td ( will represent a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 639.75 Td (joint and several liability of the withdrawing employer and each member of its controlled group. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 621.75 Td (A) Tj ET Q q 0 0 0 rg BT 86.12 621.75 Td ( “controlled group” includes all “trades or businesses” with at least 80% or greater common ownership. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 609.75 Td (This ) Tj ET Q q 0 0 0 rg BT 71.67 609.75 Td (common ) Tj ET Q q 0 0 0 rg BT 112.79 609.75 Td (ownership ) Tj ET Q q 0 0 0 rg BT 161.15 609.75 Td (test ) Tj ET Q q 0 0 0 rg BT 180.05 609.75 Td (is ) Tj ET Q q 0 0 0 rg BT 190.05 609.75 Td (broadly ) Tj ET Q q 0 0 0 rg BT 225.63 609.75 Td (applied ) Tj ET Q q 0 0 0 rg BT 260.65 609.75 Td (to ) Tj ET Q q 0 0 0 rg BT 271.77 609.75 Td (include ) Tj ET Q q 0 0 0 rg BT 306.24 609.75 Td (both ) Tj ET Q /GS0 gs q 84.48 0 0 10.38 328.48 607.65 cm /I26 Do Q q 0 0 0 rg BT 412.96 609.75 Td (groups” ) Tj ET Q q 0 0 0 rg BT 449.65 609.75 Td (and ) Tj ET Q /GS0 gs q 66.68 0 0 10.38 469.11 607.65 cm /I27 Do Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 597.75 Td (groups” applying complex exclusion and constructive ownership rules. However) Tj ET Q q 0 0 0 rg BT 404.07 597.75 Td (, regardless of the percentage ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 585.75 Td (ownership that any of our funds holds in one or more of its portfolio companies, such fund itself cannot be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 573.75 Td (considered part of an ERISA) Tj ET Q q 0 0 0 rg BT 176.19 573.75 Td ( controlled group unless that fund is considered to be a “trade or business”.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 555.75 Td (While there are a number of cases that have held that managing investments is not a “trade or business” for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 543.75 Td (tax purposes, in 2007 the PBGC ) Tj ET Q q 0 0 0 rg BT 195.64 543.75 Td (Appeals Board ruled that a private equity fund was a “trade or business” for ERISA) Tj ET Q q 0 0 0 rg BT 560.29 543.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 531.75 Td (controlled group liability purposes and at least one Federal Circuit Court has similarly concluded that a private ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 519.75 Td (equity fund could be a trade or business for these purposes based upon a number of factors including the fund’) Tj ET Q q 0 0 0 rg BT 540.14 519.75 Td (s ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 507.75 Td (level of involvement in the management of its portfolio companies and the nature of any management fee ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 495.75 Td (arrangements.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 477.75 Td (If any of our funds are determined to be a trade or business for purposes of ERISA, it is possible, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 465.75 Td (depending ) Tj ET Q q 0 0 0 rg BT 99.49 465.75 Td (upon ) Tj ET Q q 0 0 0 rg BT 124.52 465.75 Td (the ) Tj ET Q q 0 0 0 rg BT 141.20 465.75 Td (structure ) Tj ET Q q 0 0 0 rg BT 182.88 465.75 Td (of ) Tj ET Q q 0 0 0 rg BT 193.99 465.75 Td (the ) Tj ET Q q 0 0 0 rg BT 210.67 465.75 Td (investment ) Tj ET Q q 0 0 0 rg BT 261.81 465.75 Td (by ) Tj ET Q q 0 0 0 rg BT 275.15 465.75 Td (such ) Tj ET Q q 0 0 0 rg BT 299.05 465.75 Td (fund ) Tj ET Q q 0 0 0 rg BT 321.29 465.75 Td (or ) Tj ET Q q 0 0 0 rg BT 332.96 465.75 Td (any ) Tj ET Q q 0 0 0 rg BT 351.86 465.75 Td (of ) Tj ET Q q 0 0 0 rg BT 362.98 465.75 Td (their ) Tj ET Q q 0 0 0 rg BT 385.21 465.75 Td (af) Tj ET Q q 0 0 0 rg BT 393.37 465.75 Td (filiates ) Tj ET Q q 0 0 0 rg BT 424.49 465.75 Td (and ) Tj ET Q q 0 0 0 rg BT 443.96 465.75 Td (other ) Tj ET Q /GS0 gs q 58.35 0 0 10.38 469.53 463.65 cm /I28 Do Q q 0 0 0 rg BT 527.88 465.75 Td (in ) Tj ET Q q 0 0 0 rg BT 538.44 465.75 Td (a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 453.75 Td (portfolio ) Tj ET Q q 0 0 0 rg BT 88.35 453.75 Td (company ) Tj ET Q q 0 0 0 rg BT 131.71 453.75 Td (and ) Tj ET Q q 0 0 0 rg BT 151.17 453.75 Td (their ) Tj ET Q q 0 0 0 rg BT 173.40 453.75 Td (respective ) Tj ET Q q 0 0 0 rg BT 221.76 453.75 Td (ownership ) Tj ET Q q 0 0 0 rg BT 270.12 453.75 Td (interests ) Tj ET Q q 0 0 0 rg BT 310.69 453.75 Td (in ) Tj ET Q q 0 0 0 rg BT 321.25 453.75 Td (the ) Tj ET Q q 0 0 0 rg BT 337.93 453.75 Td (portfolio ) Tj ET Q q 0 0 0 rg BT 376.28 453.75 Td (company) Tj ET Q q 0 0 0 rg BT 416.12 453.75 Td (, ) Tj ET Q q 0 0 0 rg BT 421.67 453.75 Td (that ) Tj ET Q q 0 0 0 rg BT 441.13 453.75 Td (any ) Tj ET Q /GS0 gs q 58.37 0 0 10.38 460.03 451.65 cm /I29 Do Q q 0 0 0 rg BT 518.40 453.75 Td (single ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 441.75 Td (employer defined benefit pension plan liabilities or multiemployer plan withdrawal liabilities incurred by the portfolio ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 429.75 Td (company could result in liability being incurred by any of our funds, with a resulting need for additional capital ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 417.75 Td (contributions, the appropriation of such fund’) Tj ET Q q 0 0 0 rg BT 246.61 417.75 Td (s assets to satisfy such pension liabilities and/or the imposition of a lien ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 405.75 Td (by the PBGC on certain fund assets. Moreover) Tj ET Q q 0 0 0 rg BT 258.99 405.75 Td (, regardless of whether or not any of our funds were determined to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 393.75 Td (be a trade or business for purposes of ERISA, a court might hold that one of our fund’) Tj ET Q q 0 0 0 rg BT 427.82 393.75 Td (s portfolio companies could ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 381.75 Td (become jointly and severally liable for another portfolio company’) Tj ET Q q 0 0 0 rg BT 336.64 381.75 Td (s unfunded pension liabilities pursuant to the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 369.75 Td (ERISA) Tj ET Q q 0 0 0 rg BT 79.46 369.75 Td ( “controlled group” rules, depending upon the relevant investment structures and ownership interests as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 357.75 Td (noted above.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 339.75 Td (Poor investment performance during periods of adverse market conditions may result in relatively high ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 327.75 Td (levels of investor redemptions, which can exacerbate the liquidity pressures on the af) Tj ET Q q 0 0 0 rg BT 457.16 327.75 Td (fected funds, force ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 315.75 Td (the sale of assets at distressed prices or reduce the funds’) Tj ET Q q 0 0 0 rg BT 328.62 315.75 Td ( returns.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 297.75 Td (Poor investment performance during periods of adverse market conditions, together with investors’) Tj ET Q q 0 0 0 rg BT 515.40 297.75 Td ( increased ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 285.75 Td (need for liquidity given the state of the credit markets, can prompt relatively high levels of investor redemptions at ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 273.75 Td (times when many funds may not have suf) Tj ET Q q 0 0 0 rg BT 233.80 273.75 Td (ficient liquidity to satisfy some or all of their investor redemption requests. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 261.75 Td (During times when market conditions are deteriorating, many funds may face additional redemption requests and/or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 249.75 Td (compulsory investor withdrawals or redemptions, which will exacerbate the liquidity pressures on the af) Tj ET Q q 0 0 0 rg BT 504.47 249.75 Td (fected funds. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 237.75 Td (If such funds cannot satisfy their current and future redemption requests, they may be forced to sell assets at ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 225.75 Td (distressed prices or cease operations. V) Tj ET Q q 0 0 0 rg BT 229.90 225.75 Td (arious measures taken by funds to improve their liquidity profiles \(such as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 213.75 Td (the implementation of “gates” or the suspension of redemptions\) that reduce the amounts that would otherwise be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 201.75 Td (paid out in response to redemption requests may have the ef) Tj ET Q q 0 0 0 rg BT 318.87 201.75 Td (fect of incentivizing investors to “gross up” or increase ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 189.75 Td (the size of the future redemption requests they make, thereby exacerbating the cycle of redemptions. ) Tj ET Q q 0 0 0 rg BT 501.73 189.75 Td (The liquidity ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 177.75 Td (issues for such funds are often further exacerbated by their fee structures, as a decrease in NA) Tj ET Q q 0 0 0 rg BT 469.48 177.75 Td (V decreases their ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 165.75 Td (management fees.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 147.75 Td (Certain of our funds have, or may in the future have, agreements that create debt or debt-like obligations ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 135.75 Td (with one or more counterparties. Such agreements in many instances contain covenants or “triggers” that require ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 123.75 Td (the fund to maintain a certain level of NA) Tj ET Q q 0 0 0 rg BT 229.36 123.75 Td (V over certain testing periods or to post additional margin on a daily basis ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 111.75 Td (when prices of our funds’) Tj ET Q q 0 0 0 rg BT 160.80 111.75 Td ( derivative contracts move against the fund. In addition, there may be guidelines in total ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 99.75 Td (return swap facilities or margin loans that require reference obligations to be above a certain price level. Decreases ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 87.75 Td (in such funds’) Tj ET Q q 0 0 0 rg BT 110.78 87.75 Td ( NA) Tj ET Q q 0 0 0 rg BT 126.70 87.75 Td (V \(whether due to performance, redemptions or both\) that breach such covenants, the failure to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 75.75 Td (make any margin calls or meaningful decreases in the price of the underlying reference loan or security may result ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 63.75 Td (in defaults under such agreements and such defaults could permit the counterparties to take various actions that ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 51.75 Td (would be adverse to the funds, including terminating the financing arrangements, increasing the amount of margin ) Tj ET Q endstream endobj 103 0 obj <> endobj 104 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (51) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (or collateral that the funds are required to post \(so-called “supercollateralization” requirements\) or decreasing the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (aggregate amount of leverage that such counterparty is willing to provide to our funds. In particular) Tj ET Q q 0 0 0 rg BT 487.48 729.75 Td (, many such ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (covenants to which our funds are party are designed to protect against sudden and pronounced drops in NA) Tj ET Q q 0 0 0 rg BT 526.79 717.75 Td (V over ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 705.75 Td (specified periods, so if our open-end or evergreen funds were to receive larger-than-anticipated redemption ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 693.75 Td (requests during a period of poor performance, such covenants may be breached. Defaults under any such ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 681.75 Td (covenants would likely result in the af) Tj ET Q q 0 0 0 rg BT 214.91 681.75 Td (fected funds being forced to sell financed assets \(which sales would likely ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 669.75 Td (occur in suboptimal or distressed market conditions\) or being forced to restructure a swap facility with more onerous ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 657.75 Td (terms or otherwise raise cash by reducing other leverage, which would reduce the funds’) Tj ET Q q 0 0 0 rg BT 440.94 657.75 Td ( returns and our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 645.75 Td (opportunities to produce incentive and investment income from the af) Tj ET Q q 0 0 0 rg BT 355.55 645.75 Td (fected funds.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 627.75 Td (V) Tj ET Q q 0 0 0 rg BT 56.30 627.75 Td (aluation methodologies for certain assets in our funds can be subject to significant subjectivity) Tj ET Q q 0 0 0 rg BT 509.34 627.75 Td (, and the ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 615.75 Td (values of assets established pursuant to the methodologies may never be realized.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 597.75 Td (Our funds make investments for which market quotations are not readily available, and thus the process by ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 585.75 Td (which we value such investments involves inherent uncertainties. W) Tj ET Q q 0 0 0 rg BT 352.74 585.75 Td (e are required by GAAP) Tj ET Q q 0 0 0 rg BT 458.73 585.75 Td ( to make good faith ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 573.75 Td (determinations as to the fair value of these investments on a quarterly basis in connection with the preparation of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 561.75 Td (our funds’) Tj ET Q q 0 0 0 rg BT 93.54 561.75 Td ( financial statements.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 543.75 Td (There is no single method for determining fair value in good faith. ) Tj ET Q q 0 0 0 rg BT 373.32 543.75 Td (The types of factors that may be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 531.75 Td (considered when determining the fair value of an investment in a particular company include acquisition price of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 519.75 Td (investment, discounted cash flow valuations, historical and projected operational and financial results for the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 507.75 Td (company) Tj ET Q q 0 0 0 rg BT 89.83 507.75 Td (, the strengths and weaknesses of the company relative to its comparable companies, industry trends, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 495.75 Td (general economic and market conditions, information with respect to of) Tj ET Q q 0 0 0 rg BT 362.76 495.75 Td (fers for the investment, the size of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 483.75 Td (investment \(and any associated control\) and other factors deemed relevant. Fair values may also be assessed ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 471.75 Td (based on the enterprise value of a company established using a market multiple approach that is based on a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 459.75 Td (specific financial measure \(such as earnings before interest, taxes, depreciation and amortization \(“EBITDA”\), ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 447.75 Td (adjusted EBITDA, free cash flow) Tj ET Q q 0 0 0 rg BT 193.40 447.75 Td (, net income, book value or net asset value\) or) Tj ET Q q 0 0 0 rg BT 397.96 447.75 Td (, in some cases, a cost basis or a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 435.75 Td (discounted cash flow or liquidation analysis. Because valuations, and in particular valuations of investments for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 423.75 Td (which market quotations are not readily available, are inherently uncertain, may fluctuate over short periods of time ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 411.75 Td (and may be based on estimates, determinations of fair value may dif) Tj ET Q q 0 0 0 rg BT 352.20 411.75 Td (fer materially from the values that would have ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 399.75 Td (resulted if a ready market had existed. Even if market quotations are available for our investments, the quotations ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 387.75 Td (may not reflect the value that we would actually be able to realize because of various factors, including the possible ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 375.75 Td (illiquidity associated with a large ownership position, subsequent illiquidity in the market for a company’) Tj ET Q q 0 0 0 rg BT 504.50 375.75 Td (s securities, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 363.75 Td (future market price volatility or the potential for a future loss in market value based on poor industry conditions or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 351.75 Td (the market’) Tj ET Q q 0 0 0 rg BT 99.28 351.75 Td (s view of overall company and management performance.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 333.75 Td (Because there is significant uncertainty in the valuation of, or in the stability of the value of, illiquid ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 321.75 Td (investments, the fair values of such investments as reflected in a fund’) Tj ET Q q 0 0 0 rg BT 359.98 321.75 Td (s NA) Tj ET Q q 0 0 0 rg BT 380.90 321.75 Td (V do not necessarily reflect the prices ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 309.75 Td (that would actually be obtained by us on behalf of the fund when such investments are sold. Sales at values ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 297.75 Td (significantly lower than the values at which investments have previously been reflected in a fund’) Tj ET Q q 0 0 0 rg BT 476.17 297.75 Td (s NA) Tj ET Q q 0 0 0 rg BT 497.09 297.75 Td (V may result ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 285.75 Td (in losses for the applicable fund, a decline in management fees and the loss of incentive income that may have ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 273.75 Td (been accrued by the applicable fund. Changes in values attributed to investments from quarter to quarter may ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 261.75 Td (result in volatility in the NA) Tj ET Q q 0 0 0 rg BT 166.53 261.75 Td (V and results of operations that we report. ) Tj ET Q q 0 0 0 rg BT 357.19 261.75 Td (Also, a situation where a fund’) Tj ET Q q 0 0 0 rg BT 490.42 261.75 Td (s NA) Tj ET Q q 0 0 0 rg BT 511.35 261.75 Td (V turns out ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 249.75 Td (to be materially dif) Tj ET Q q 0 0 0 rg BT 130.97 249.75 Td (ferent from the NA) Tj ET Q q 0 0 0 rg BT 211.92 249.75 Td (V previously reported for the fund could cause investors to lose confidence in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 237.75 Td (us, which could in turn result in dif) Tj ET Q q 0 0 0 rg BT 199.89 237.75 Td (ficulty in raising additional funds or investors requesting redemptions from certain ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 225.75 Td (of our funds. ) Tj ET Q q 0 0 0 rg BT 110.97 225.75 Td (The SEC has highlighted valuation practices as one of its areas of focus in investment adviser ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 213.75 Td (examinations and has instituted enforcement actions against private equity fund advisers for misleading investors ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 201.75 Td (about valuation.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 183.75 Td (Our funds make investments in companies that are based outside the United States, which exposes us to ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 171.75 Td (additional risks not typically associated with investing in companies that are based in the United States.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 153.75 Td (Many of our funds invest a portion of their assets in the equity) Tj ET Q q 0 0 0 rg BT 351.63 153.75 Td (, debt, loans or other securities of issuers ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 141.75 Td (located outside the United States, while certain of our funds invest substantially all of their assets in these types of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 129.75 Td (securities. Investments in non-U.S. securities involve certain factors not typically associated with investing in U.S. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 117.75 Td (securities, including risks relating to:) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 99.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 99.75 Td (our funds’) Tj ET Q q 0 0 0 rg BT 135.54 99.75 Td ( abilities to exchange local currencies for U.S. dollars and other currency exchange matters, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 87.75 Td (including fluctuations in currency exchange rates and costs associated with conversion of investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 75.75 Td (principal and income from one currency into another; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 57.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 57.75 Td (controls on, and changes in controls on, foreign investment and limitations on repatriation of invested ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 45.75 Td (capital; ) Tj ET Q endstream endobj 105 0 obj <> endobj 106 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (52) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 741.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 741.75 Td (less developed or less ef) Tj ET Q q 0 0 0 rg BT 201.88 741.75 Td (ficient financial markets than exist in the United States, which may lead to price ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 729.75 Td (volatility and relative illiquidity; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 711.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 711.75 Td (the absence of uniform accounting, auditing and financial reporting standards, practices and disclosure ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 699.75 Td (requirements and less government supervision and regulation; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 681.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 681.75 Td (dif) Tj ET Q q 0 0 0 rg BT 102.38 681.75 Td (ferences in legal and regulatory environments, particularly with respect to bankruptcy and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 669.75 Td (reorganization, less developed corporate laws regarding fiduciary duties and the protection of investors ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 657.75 Td (and less reliable judicial systems to enforce contracts and applicable law; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 639.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 639.75 Td (less publicly available information in respect of companies in non-U.S. markets; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 621.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 621.75 Td (heightened exposure to corruption risk;) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 603.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 603.75 Td (certain economic and political risks, including potential exchange control regulations and restrictions on ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 591.75 Td (our non-U.S. investments and repatriation of capital, potential political, economic or social instability) Tj ET Q q 0 0 0 rg BT 530.93 591.75 Td (, the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 579.75 Td (possibility of nationalization or expropriation or confiscatory taxation and adverse economic and political ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 567.75 Td (developments; and) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 549.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 549.75 Td (the possible imposition of non-U.S. taxes or withholding on income and gains recognized with respect to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 537.75 Td (the securities.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 519.75 Td (There can be no assurance that adverse developments with respect to these risks will not adversely af) Tj ET Q q 0 0 0 rg BT 532.28 519.75 Td (fect ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 507.75 Td (our funds that invest in securities of non-U.S. issuers.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 489.75 Td (Certain of our funds and most of our separate account agreements contain provisions that allow investors ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 477.75 Td (to withdraw their capital.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 459.75 Td (Most of our separate account agreements generally can be terminated by our separate account clients upon ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 447.75 Td (notice of 30 days or less. Similarly) Tj ET Q q 0 0 0 rg BT 203.21 447.75 Td (, our commingled open-end funds permit the withdrawal of capital by our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 435.75 Td (investors during certain open periods that generally occur on the first business day of each calendar month. Our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 423.75 Td (active evergreen funds have withdrawal rights that, depending on the specific fund, can be exercised in intervals ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 411.75 Td (typically ranging from three months to three years. ) Tj ET Q q 0 0 0 rg BT 277.33 411.75 Td (Any significant number of terminations or withdrawals could ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 399.75 Td (have a material adverse ef) Tj ET Q q 0 0 0 rg BT 167.66 399.75 Td (fect on our business and results of operations.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 381.75 Td (W) Tj ET Q q 0 0 0 rg BT 59.26 381.75 Td (e have made and expect to continue to make significant investments in our current and future funds, and ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 369.75 Td (we may lose money on some or all of our investments.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 351.75 Td (Since our inception in 1995, we have increased the minimum level of our principal investments in our closed-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 339.75 Td (end and evergreen funds from 0.2% of the fund’) Tj ET Q q 0 0 0 rg BT 261.63 339.75 Td (s aggregate committed capital to 1.0% starting with funds that held ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 327.75 Td (their initial closings in late 1998, to 2.0% starting with funds that held their initial closings in mid-2004. Subsequent ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 315.75 Td (to the 2007 Private Of) Tj ET Q q 0 0 0 rg BT 147.10 315.75 Td (fering, we decided to further increase principal investments made collectively by Oaktree and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 303.75 Td (its af) Tj ET Q q 0 0 0 rg BT 70.94 303.75 Td (filiates in such funds that have initial closings after May 2007 to the greater of 2.5% of the funds’) Tj ET Q q 0 0 0 rg BT 494.70 303.75 Td ( aggregate ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 291.75 Td (committed capital or $20 million. ) Tj ET Q q 0 0 0 rg BT 197.84 291.75 Td (Although we are not limited in the amount we choose to invest, in 2009 we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 279.75 Td (decided that we will generally not invest more than $100 million in any one fund. W) Tj ET Q q 0 0 0 rg BT 418.36 279.75 Td (e expect to continue to make ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 267.75 Td (significant principal investments in our funds and may choose to increase the percentage amount we invest at any ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 255.75 Td (time. Further) Tj ET Q q 0 0 0 rg BT 108.91 255.75 Td (, from time to time we make loans or otherwise extend credit or guarantees to our funds. Contributing ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 243.75 Td (capital, making other investments or extending credit to these funds is risky) Tj ET Q q 0 0 0 rg BT 381.64 243.75 Td (, and we may lose some or all of our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 231.75 Td (investments. ) Tj ET Q q 0 0 0 rg BT 111.14 231.75 Td (Any such loss could have a material adverse impact on our financial condition and results of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 219.75 Td (operations.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 201.75 Td (Our funds make investments in companies that we do not control.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 183.75 Td (Investments by many of our funds include debt instruments and equity securities of companies that we do ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 171.75 Td (not control. ) Tj ET Q q 0 0 0 rg BT 104.85 171.75 Td (These instruments and securities may be acquired by our funds through trading activities or through ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 159.75 Td (purchases of securities from the issuer) Tj ET Q q 0 0 0 rg BT 220.63 159.75 Td (. In addition, our control investing funds may acquire minority equity ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 147.75 Td (interests and may also dispose of a portion of their majority equity investments in portfolio companies over time in a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 135.75 Td (manner that results in the funds retaining a minority investment. ) Tj ET Q q 0 0 0 rg BT 336.63 135.75 Td (Those investments will be subject to the risk that ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 123.75 Td (the company in which the investment is made may make business, financial or management decisions with which ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 111.75 Td (we do not agree or that the majority stakeholders or the management of the company may take risks or otherwise ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 99.75 Td (act in a manner that does not serve our interests. In addition, the company in which the investment is made may be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 87.75 Td (subject to complex regulatory requirements, and instances of non-compliance by them may subject us to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 75.75 Td (reputational harm or have other adverse consequences on our business. If any of the foregoing were to occur) Tj ET Q q 0 0 0 rg BT 535.85 75.75 Td (, the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 63.75 Td (values of the investments held by our funds could decrease and our financial condition, results of operations and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 51.75 Td (cash flow could suf) Tj ET Q q 0 0 0 rg BT 134.31 51.75 Td (fer as a result.) Tj ET Q endstream endobj 107 0 obj <> endobj 108 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (53) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Investments by our funds will in many cases rank junior to investments made by others.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 723.75 Td (In many cases, the companies in which our funds invest have indebtedness or equity securities, or may be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 711.75 Td (permitted to incur indebtedness or to issue equity securities, that rank senior to our investment. By their terms, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 699.75 Td (these instruments may provide that their holders are entitled to receive payments of dividends, interest or principal ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 687.75 Td (on or before the dates on which payments are to be made in respect of our investment. ) Tj ET Q q 0 0 0 rg BT 439.67 687.75 Td (Also, in the event of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 675.75 Td (insolvency) Tj ET Q q 0 0 0 rg BT 95.95 675.75 Td (, liquidation, dissolution, reorganization or bankruptcy of a company in which we hold an investment, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 663.75 Td (holders of securities ranking senior to our investment would typically be entitled to receive payment in full before ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 651.75 Td (distributions could be made in respect of our investment. ) Tj ET Q q 0 0 0 rg BT 305.14 651.75 Td (After repaying senior security holders, the company may ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 639.75 Td (not have any remaining assets to use for repaying amounts owed in respect of our investment. ) Tj ET Q q 0 0 0 rg BT 472.83 639.75 Td (T) Tj ET Q q 0 0 0 rg BT 477.83 639.75 Td (o the extent that ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 627.75 Td (any assets remain, holders of claims that rank equally with our investment would be entitled to share on an equal ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 615.75 Td (and ratable basis in distributions that are made out of those assets. ) Tj ET Q q 0 0 0 rg BT 351.85 615.75 Td (Also, during periods of financial distress or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 603.75 Td (following an insolvency) Tj ET Q q 0 0 0 rg BT 151.54 603.75 Td (, the ability of our funds to influence a company’) Tj ET Q q 0 0 0 rg BT 362.59 603.75 Td (s af) Tj ET Q q 0 0 0 rg BT 378.53 603.75 Td (fairs and to take actions to protect their ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 591.75 Td (investment may be substantially less than that of those holding senior interests.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 573.75 Td (The due diligence process that we undertake in connection with investments by some of our funds may not ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 561.75 Td (reveal all facts that may be relevant in connection with an investment.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 543.75 Td (Before making investments in companies that we expect to control, we undertake a due diligence ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 531.75 Td (investigation of the target company) Tj ET Q q 0 0 0 rg BT 204.35 531.75 Td (. In conducting these investigations, we may be required to evaluate important ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 519.75 Td (and complex business, financial, tax, accounting, environmental and legal issues. Outside consultants, legal ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 507.75 Td (advisers, accountants and investment banks are often involved in the due diligence process in varying degrees ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 495.75 Td (depending on the type of investment. Nevertheless, the due diligence investigation that we carry out with respect to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 483.75 Td (an investment opportunity may not reveal or highlight all relevant facts that may be necessary or helpful in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 471.75 Td (evaluating the investment opportunity) Tj ET Q q 0 0 0 rg BT 214.92 471.75 Td (. No due diligence investigation can provide certainty as to the matters ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 459.75 Td (covered. In addition, instances of bribery) Tj ET Q q 0 0 0 rg BT 231.58 459.75 Td (, fraud, accounting irregularities and other improper) Tj ET Q q 0 0 0 rg BT 457.82 459.75 Td (, illegal or corrupt ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 447.75 Td (practices are by their nature dif) Tj ET Q q 0 0 0 rg BT 187.11 447.75 Td (ficult to detect. Moreover) Tj ET Q q 0 0 0 rg BT 298.83 447.75 Td (, a due diligence investigation will not necessarily result in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 435.75 Td (the investment being successful. ) Tj ET Q q 0 0 0 rg BT 199.90 435.75 Td (The nature of our due diligence investigation in a particular instance depends on ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 423.75 Td (the size and type of investment being considered, our familiarity with the relevant industry) Tj ET Q q 0 0 0 rg BT 444.46 423.75 Td (, company and its ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 411.75 Td (management and other relevant factors.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 393.75 Td (Market values of publicly traded securities that are held as investments may be volatile.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 375.75 Td (The market prices of publicly traded securities held by some of our funds may be volatile and are likely to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 363.75 Td (fluctuate due to a number of factors beyond our control, including actual or anticipated changes in the profitability of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 351.75 Td (the issuers of such securities, general economic, social or political developments, changes in industry conditions, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 339.75 Td (changes in government regulation, shortfalls in operating results from levels forecast by securities analysts, inflation ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 327.75 Td (and rapid fluctuations in inflation rates, the general state of the securities markets and other material events, such ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 315.75 Td (as significant management changes, financings, refinancings, securities issuances, acquisitions and dispositions. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 303.75 Td (Changes in the values of these investments may adversely af) Tj ET Q q 0 0 0 rg BT 321.63 303.75 Td (fect our investment performance and our results of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 291.75 Td (operations.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 273.75 Td (V) Tj ET Q q 0 0 0 rg BT 56.30 273.75 Td (olatility in the structured credit, leveraged loan and high yield bond markets may adversely af) Tj ET Q q 0 0 0 rg BT 500.14 273.75 Td (fect our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 261.75 Td (funds’) Tj ET Q q 0 0 0 rg BT 79.62 261.75 Td ( investments.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 82.00 243.75 Td (T) Tj ET Q q 0 0 0 rg BT 87.00 243.75 Td (o the extent that companies in which our funds invest participate in the structured credit, leveraged loan ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 231.75 Td (and high yield bond markets, the results of their operations may suf) Tj ET Q q 0 0 0 rg BT 347.20 231.75 Td (fer if such markets experience dislocations, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 219.75 Td (illiquidity and volatility) Tj ET Q q 0 0 0 rg BT 144.86 219.75 Td (. In addition, to the extent that such marketplace events occur) Tj ET Q q 0 0 0 rg BT 419.46 219.75 Td (, this may have an adverse ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 207.75 Td (impact on the availability of credit to businesses generally and could lead to an overall weakening of the U.S. and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 195.75 Td (global economies. ) Tj ET Q q 0 0 0 rg BT 135.61 195.75 Td (Any economic downturn could adversely af) Tj ET Q q 0 0 0 rg BT 325.53 195.75 Td (fect the financial resources of our funds’) Tj ET Q q 0 0 0 rg BT 501.92 195.75 Td ( investments ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 183.75 Td (\(in particular those investments that depend on credit from third parties or that otherwise participate in the credit ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 171.75 Td (markets\) and their ability to make principal and interest payments on, or refinance, outstanding debt when due. In ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 159.75 Td (the event of such defaults, our funds could lose both invested capital in, and anticipated profits from, the af) Tj ET Q q 0 0 0 rg BT 520.11 159.75 Td (fected ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 147.75 Td (portfolio companies.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 129.75 Td (W) Tj ET Q q 0 0 0 rg BT 59.26 129.75 Td (e enter into a significant number of side letter agreements with limited partners of certain of our funds, ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 117.75 Td (and the terms of these agreements could expose the general partners of the funds to additional risks and ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 105.75 Td (liabilities.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 87.75 Td (W) Tj ET Q q 0 0 0 rg BT 89.26 87.75 Td (e regularly enter into side letter agreements with particular limited partners in the course of raising our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 75.75 Td (funds. ) Tj ET Q q 0 0 0 rg BT 79.84 75.75 Td (These side letters typically af) Tj ET Q q 0 0 0 rg BT 208.05 75.75 Td (ford the af) Tj ET Q q 0 0 0 rg BT 252.90 75.75 Td (fected limited partners assurance with respect to particular aspects of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 63.75 Td (the operation of the fund. Given that these assurances often elaborate upon the provisions of the relevant fund’) Tj ET Q q 0 0 0 rg BT 542.92 63.75 Td (s ) Tj ET Q endstream endobj 109 0 obj <> endobj 110 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (54) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (partnership agreement, our af) Tj ET Q q 0 0 0 rg BT 181.56 741.75 Td (filiates could be exposed to additional risks, liabilities and obligations not ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (contemplated in our funds’) Tj ET Q q 0 0 0 rg BT 166.92 729.75 Td ( partnership agreements.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 711.75 Td (Our funds may invest in companies that are highly leveraged, a fact that may increase the risk of loss ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 699.75 Td (associated with the investments.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 681.75 Td (Our funds may invest in companies whose capital structures involve significant leverage. ) Tj ET Q q 0 0 0 rg BT 476.67 681.75 Td (These investments ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 669.75 Td (are inherently more sensitive to declines in revenues and to increases in expenses and interest rates. ) Tj ET Q q 0 0 0 rg BT 503.40 669.75 Td (The ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 657.75 Td (leveraged capital structure of these companies places significant burdens on their cash flows and increases the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 645.75 Td (exposure of our funds to adverse economic factors such as downturns in the economy or deterioration in the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 633.75 Td (condition of the portfolio company or its industry) Tj ET Q q 0 0 0 rg BT 261.04 633.75 Td (. ) Tj ET Q q 0 0 0 rg BT 268.82 633.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 319.22 633.75 Td (, the securities acquired by our funds may be the most ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 621.75 Td (junior in what could be a complex capital structure and thus subject us to the greatest risk of loss.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 603.75 Td (The use of leverage by our funds could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 363.26 603.75 Td (fect on our financial condition, results of ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 591.75 Td (operation and cash flow) Tj ET Q q 0 0 0 rg BT 164.09 591.75 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 573.75 Td (Some of our funds use leverage \(including through swaps and other derivatives\) as part of their respective ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 561.75 Td (investment programs and may borrow a substantial amount of capital. ) Tj ET Q q 0 0 0 rg BT 363.86 561.75 Td (The use of leverage poses a significant ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 549.75 Td (degree of risk and can enhance the magnitude of a significant loss in the value of the investment portfolio. ) Tj ET Q q 0 0 0 rg BT 522.89 549.75 Td (T) Tj ET Q q 0 0 0 rg BT 527.89 549.75 Td (o the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 537.75 Td (extent that any fund leverages its capital structure, it is subject to the risks normally associated with debt financing, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 525.75 Td (including the risk that its cash flows will be insuf) Tj ET Q q 0 0 0 rg BT 260.47 525.75 Td (ficient to meet principal and interest payments, which could ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 513.75 Td (significantly reduce or even eliminate the value of such fund’) Tj ET Q q 0 0 0 rg BT 316.64 513.75 Td (s investments. In addition, the interest expense and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 501.75 Td (other costs incurred in connection with such leverage may not be recovered by the appreciation in the value of any ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 489.75 Td (associated securities or bank debt and will be lost – and the timing and magnitude of such losses may be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 477.75 Td (accelerated or exacerbated – in the event of a decline in the market value of such securities or bank debt. In ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 465.75 Td (addition, such funds may be subject to margin calls or acceleration in the event of a decline in the value of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 453.75 Td (posted collateral. ) Tj ET Q q 0 0 0 rg BT 130.98 453.75 Td (T) Tj ET Q q 0 0 0 rg BT 135.98 453.75 Td (o meet liquidity needs as a result of margin calls or acceleration, we may elect to invest ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 441.75 Td (additional capital into or loan money to such funds. ) Tj ET Q q 0 0 0 rg BT 279.59 441.75 Td (Any such investment or loan would be subject to the risk of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 429.75 Td (loss. In addition, if we were to elect to enforce our rights against any fund with respect to a loan to such fund, we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 417.75 Td (may damage our relationships with our investors and have dif) Tj ET Q q 0 0 0 rg BT 321.63 417.75 Td (ficulty raising additional capital. ) Tj ET Q q 0 0 0 rg BT 464.49 417.75 Td (Any of the foregoing ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 405.75 Td (circumstances could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 261.03 405.75 Td (fect on our financial condition, results of operations and cash flow) Tj ET Q q 0 0 0 rg BT 549.54 405.75 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 387.75 Td (Changes in the debt financing markets and higher interest rates may negatively impact the ability of our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 375.75 Td (funds and their portfolio companies to obtain attractive financing for their investments or refinance ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 363.75 Td (existing debt and may increase the cost of such financing if it is obtained, leading to lower-yielding ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 351.75 Td (investments and potentially decreasing our incentive income and investment income.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 82.00 333.75 Td (The markets for debt financing are subject to retrenchment, resulting in more restrictive covenants or other ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 321.75 Td (more onerous terms \(including posting additional collateral\) in order to provide financing, and in some cases ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 309.75 Td (lenders may refuse to provide any financing that would have been readily obtained under dif) Tj ET Q q 0 0 0 rg BT 456.19 309.75 Td (ferent credit conditions.) Tj ET Q BT /F3 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0.12156862745098039 0.28627450980392155 0.49019607843137253 rg BT 559.58 309.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 50.00 297.75 Td (In addition, higher interest rates generally impact the investment management industry by making it harder to obtain ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 285.75 Td (financing for new investments, refinance existing investment or liquidate debt investments, which can lead to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 273.75 Td (reduced investment returns and missed investment opportunities. Since the most recent recession, the U.S. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 261.75 Td (Federal Reserve has taken actions which have resulted in low interest rates prevailing in the marketplace for a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 249.75 Td (historically long period of time. In December 2016, the U.S. Federal Reserve raised its benchmark interest rate by ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 237.75 Td (a quarter of a percentage point. ) Tj ET Q q 0 0 0 rg BT 194.92 237.75 Td (The U.S. Federal Reserve has indicated that it may raise interest rates further in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 225.75 Td (2017, and any such increase may materially and negatively af) Tj ET Q q 0 0 0 rg BT 323.31 225.75 Td (fect us.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 207.75 Td (If our funds are unable to obtain committed debt financing or can only obtain debt at an increased interest ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 195.75 Td (rate or on other less advantageous terms, such funds’) Tj ET Q q 0 0 0 rg BT 288.10 195.75 Td ( investment activities may be restricted and their profits may ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 183.75 Td (be lower than they would otherwise have achieved, either of which could lead to a decrease in the incentive and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 171.75 Td (investment income earned by us. Similarly) Tj ET Q q 0 0 0 rg BT 239.34 171.75 Td (, the portfolio companies owned by our funds regularly utilize the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 159.75 Td (corporate debt markets to obtain ef) Tj ET Q q 0 0 0 rg BT 204.91 159.75 Td (ficient financing for their operations. ) Tj ET Q q 0 0 0 rg BT 368.15 159.75 Td (T) Tj ET Q q 0 0 0 rg BT 373.15 159.75 Td (o the extent that credit markets render ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 147.75 Td (such financing dif) Tj ET Q q 0 0 0 rg BT 127.09 147.75 Td (ficult or more expensive to obtain, the operating performance of those portfolio companies and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 135.75 Td (therefore the investment returns on our funds may be negatively impacted. In addition, to the extent that the then-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 123.75 Td (current markets make it dif) Tj ET Q q 0 0 0 rg BT 167.63 123.75 Td (ficult or impossible to refinance debt or extend maturities on their outstanding debt, the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 111.75 Td (relevant portfolio company may be unable to repay such debt at maturity and may be forced to sell assets, undergo ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 99.75 Td (a recapitalization or seek bankruptcy protection. ) Tj ET Q q 0 0 0 rg BT 266.79 99.75 Td (Any of the foregoing circumstances could impair the value of our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 87.75 Td (investment in those portfolio companies and have a material adverse ef) Tj ET Q q 0 0 0 rg BT 365.55 87.75 Td (fect on our financial condition, results of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 75.75 Td (operations and cash flow) Tj ET Q q 0 0 0 rg BT 160.07 75.75 Td (.) Tj ET Q endstream endobj 111 0 obj <> endobj 112 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (55) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Our funds may face risks relating to undiversified investments.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 723.75 Td (W) Tj ET Q q 0 0 0 rg BT 89.26 723.75 Td (e cannot give assurance as to the degree of diversification, if any) Tj ET Q q 0 0 0 rg BT 375.91 723.75 Td (, that will be achieved in any fund ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 711.75 Td (investments. Dif) Tj ET Q q 0 0 0 rg BT 123.73 711.75 Td (ficult market conditions or slowdowns af) Tj ET Q q 0 0 0 rg BT 299.74 711.75 Td (fecting a particular asset class, geographic region or other ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 699.75 Td (category of investment could have a significant adverse impact on a fund if its investments are concentrated in that ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 687.75 Td (area, which would result in lower investment returns. ) Tj ET Q q 0 0 0 rg BT 287.70 687.75 Td (This lack of diversification may expose a fund to losses ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 675.75 Td (disproportionate to market declines in general if there are disproportionately greater adverse price movements in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 663.75 Td (the particular investments. ) Tj ET Q q 0 0 0 rg BT 172.09 663.75 Td (T) Tj ET Q q 0 0 0 rg BT 177.09 663.75 Td (o the extent a fund holds investments concentrated in a particular issuer) Tj ET Q q 0 0 0 rg BT 495.06 663.75 Td (, security) Tj ET Q q 0 0 0 rg BT 534.33 663.75 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 651.75 Td (asset class or geographic region, such fund may be more susceptible than a more widely diversified investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 639.75 Td (partnership to the negative consequences of a single corporate, economic, political or regulatory event. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 627.75 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 100.95 627.75 Td (, a lack of diversification on the part of a fund could adversely af) Tj ET Q q 0 0 0 rg BT 382.59 627.75 Td (fect a fund’) Tj ET Q q 0 0 0 rg BT 431.33 627.75 Td (s performance and, as a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 615.75 Td (result, our financial condition and results of operations.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 597.75 Td (Risk management activities may adversely af) Tj ET Q q 0 0 0 rg BT 264.38 597.75 Td (fect the returns on our funds’) Tj ET Q q 0 0 0 rg BT 403.45 597.75 Td ( investments and expose our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 585.75 Td (funds to other risks.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 567.75 Td (When managing our exposure to market risks, we may \(on our own behalf or on behalf of our funds\) from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 555.75 Td (time to time use forward contracts, options, swaps, caps, collars and floors or pursue other strategies or use other ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 543.75 Td (forms of derivative instruments to limit our exposure to changes in the relative values of investments that may result ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 531.75 Td (from market developments, including, but not limited to, changes in prevailing interest rates, currency exchange ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 519.75 Td (rates and commodity prices. ) Tj ET Q q 0 0 0 rg BT 180.42 519.75 Td (The success of any hedging or other derivative transactions generally will depend on ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 507.75 Td (our ability to correctly predict market changes, the degree of correlation between price movements of a derivative ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 495.75 Td (instrument and the position being hedged, the creditworthiness of the counterparty and other factors. ) Tj ET Q q 0 0 0 rg BT 499.72 495.75 Td (As a result, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 483.75 Td (while we may enter into a transaction in order to reduce our exposure to market risks, the transaction may result in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 471.75 Td (poorer overall investment performance than if it had not been executed. Such transactions may also limit the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 459.75 Td (opportunity for gain if the value of a hedged position increases. Moreover) Tj ET Q q 0 0 0 rg BT 375.20 459.75 Td (, these hedging arrangements may ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 447.75 Td (generate significant transaction costs that reduce the returns generated by our funds.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 429.75 Td (In addition, derivative transactions expose our funds to liquidity) Tj ET Q q 0 0 0 rg BT 357.20 429.75 Td (, volatility) Tj ET Q q 0 0 0 rg BT 397.58 429.75 Td (, counterparty and other risks. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 417.75 Td (Please see “—The derivatives that we or our funds use may subject us to increased risk of loss and may adversely ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 405.75 Td (af) Tj ET Q q 0 0 0 rg BT 58.16 405.75 Td (fect our results of operations” above.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 387.75 Td (Our funds are subject to risks in using prime brokers, custodians, counterparties, administrators, other ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 375.75 Td (agents and third-party service providers.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 357.75 Td (Many of our funds depend on the services of prime brokers, custodians, counterparties, administrators and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 345.75 Td (other agents and third-party services providers to carry out certain securities and derivatives transactions and other ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 333.75 Td (business functions. ) Tj ET Q q 0 0 0 rg BT 140.42 333.75 Td (The terms of these contracts are often customized and complex, and many of these ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 321.75 Td (arrangements occur in markets or relate to products that are subject to limited or no regulatory oversight. In ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 309.75 Td (particular) Tj ET Q q 0 0 0 rg BT 90.58 309.75 Td (, some of our funds utilize prime brokerage arrangements with a relatively limited number of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 297.75 Td (counterparties, which has the ef) Tj ET Q q 0 0 0 rg BT 191.01 297.75 Td (fect of concentrating the transaction volume \(and related counterparty default risk\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 285.75 Td (of these funds with these counterparties.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 267.75 Td (Our funds are subject to the risk that the counterparty to one or more of these contracts defaults, either ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 255.75 Td (voluntarily or involuntarily) Tj ET Q q 0 0 0 rg BT 161.53 255.75 Td (, on its performance under the contract. ) Tj ET Q q 0 0 0 rg BT 341.07 255.75 Td (Any such default may occur suddenly and without ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 243.75 Td (notice to us. Moreover) Tj ET Q q 0 0 0 rg BT 151.16 243.75 Td (, if a counterparty defaults, we may be unable to take action to cover our exposure, either ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 231.75 Td (because we lack contractual recourse or because market conditions make it dif) Tj ET Q q 0 0 0 rg BT 398.88 231.75 Td (ficult to take ef) Tj ET Q q 0 0 0 rg BT 463.18 231.75 Td (fective action. ) Tj ET Q q 0 0 0 rg BT 529.70 231.75 Td (This ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 219.75 Td (inability could occur in times of market stress, which is when defaults are most likely to occur) Tj ET Q q 0 0 0 rg BT 458.50 219.75 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 201.75 Td (In addition, risk-management models that we may employ from time to time may not accurately anticipate the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 189.75 Td (impact of market stress or counterparty financial condition, and as a result, we may not have taken suf) Tj ET Q q 0 0 0 rg BT 501.15 189.75 Td (ficient action ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 177.75 Td (to reduce our risks ef) Tj ET Q q 0 0 0 rg BT 143.19 177.75 Td (fectively) Tj ET Q q 0 0 0 rg BT 178.57 177.75 Td (. Default risk may arise from events or circumstances that are dif) Tj ET Q q 0 0 0 rg BT 466.27 177.75 Td (ficult to detect, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 165.75 Td (foresee or evaluate. In addition, concerns about, or a default by) Tj ET Q q 0 0 0 rg BT 332.22 165.75 Td (, one large participant could lead to significant ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 153.75 Td (liquidity problems for other participants, which may in turn expose us to significant losses.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 135.75 Td (In the event of a counterparty default, particularly a default by a major investment bank, one or more of our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 123.75 Td (funds could incur material losses, and the resulting market impact of a major counterparty default could harm our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 111.75 Td (business, results of operation and financial condition.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 93.75 Td (In the event of the insolvency of a prime broker) Tj ET Q q 0 0 0 rg BT 287.34 93.75 Td (, custodian, counterparty or any other party that is holding ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 81.75 Td (assets of our funds as collateral, our funds might not be able to recover equivalent assets in full as they will rank ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 69.75 Td (among the prime broker) Tj ET Q q 0 0 0 rg BT 156.53 69.75 Td (’) Tj ET Q q 0 0 0 rg BT 158.57 69.75 Td (s, custodian’) Tj ET Q q 0 0 0 rg BT 213.98 69.75 Td (s or counterparty’) Tj ET Q q 0 0 0 rg BT 291.05 69.75 Td (s unsecured creditors in relation to the assets held as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 57.75 Td (collateral. In addition, our funds’) Tj ET Q q 0 0 0 rg BT 193.60 57.75 Td ( cash held with a prime broker) Tj ET Q q 0 0 0 rg BT 326.45 57.75 Td (, custodian or counterparty generally will not be ) Tj ET Q endstream endobj 113 0 obj <> endobj 114 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (56) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (segregated from the prime broker) Tj ET Q q 0 0 0 rg BT 198.77 741.75 Td (’) Tj ET Q q 0 0 0 rg BT 200.82 741.75 Td (s, custodian’) Tj ET Q q 0 0 0 rg BT 256.22 741.75 Td (s or counterparty’) Tj ET Q q 0 0 0 rg BT 333.30 741.75 Td (s own cash, and our funds may therefore rank as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (unsecured creditors in relation thereto. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 711.75 Td (The counterparty risks that our funds’) Tj ET Q q 0 0 0 rg BT 244.71 711.75 Td ( face have increased in complexity and magnitude as a result of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 699.75 Td (disruption in the financial markets in recent years. For example, the consolidation and elimination of counterparties ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 687.75 Td (has increased our concentration of counterparty risk and decreased the universe of potential counterparties, and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 675.75 Td (our funds are generally not restricted from dealing with any particular counterparty or from concentrating any or all ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 663.75 Td (of their transactions with one counterparty) Tj ET Q q 0 0 0 rg BT 234.91 663.75 Td (. In addition, counterparties have generally reacted to market volatility by ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 651.75 Td (tightening their underwriting standards and increasing their margin requirements for all categories of financing, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 639.75 Td (which has the result of decreasing the overall amount of leverage available and increasing the costs of borrowing.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 621.75 Td (Risks Relating to Our Class ) Tj ET Q q 0 0 0 rg BT 183.55 621.75 Td (A) Tj ET Q q 0 0 0 rg BT 190.41 621.75 Td ( Units) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 603.75 Td (The market price of our Class ) Tj ET Q q 0 0 0 rg BT 193.01 603.75 Td (A) Tj ET Q q 0 0 0 rg BT 199.86 603.75 Td ( units may decline due to the large number of units eligible for future sale ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 591.75 Td (and issuable pursuant to our 201) Tj ET Q q 0 0 0 rg BT 205.96 591.75 Td (1 Equity Incentive Plan.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 573.75 Td (The market price of our Class ) Tj ET Q q 0 0 0 rg BT 213.38 573.75 Td (A) Tj ET Q q 0 0 0 rg BT 219.50 573.75 Td ( units could decline as a result of sales of a large number of our Class ) Tj ET Q q 0 0 0 rg BT 530.22 573.75 Td (A) Tj ET Q q 0 0 0 rg BT 536.34 573.75 Td ( units ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 561.75 Td (in the market or the perception that these sales could occur) Tj ET Q q 0 0 0 rg BT 311.82 561.75 Td (. ) Tj ET Q q 0 0 0 rg BT 319.60 561.75 Td (As of February 21, 2017, there were 62,991,591 Class ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 549.75 Td (A) Tj ET Q q 0 0 0 rg BT 56.12 549.75 Td ( units outstanding, which may be resold immediately in the public market upon the release of any applicable lock-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 537.75 Td (up periods, and, in the case of Class ) Tj ET Q q 0 0 0 rg BT 213.99 537.75 Td (A) Tj ET Q q 0 0 0 rg BT 220.11 537.75 Td ( units held by our af) Tj ET Q q 0 0 0 rg BT 307.20 537.75 Td (filiates, as that term is defined in Rule 144 under the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 525.75 Td (Securities ) Tj ET Q q 0 0 0 rg BT 96.13 525.75 Td (Act, subject to the applicable volume limitations of Rule 144 unless we register the resale of such units. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 513.75 Td (In addition, certain of our directors and executive of) Tj ET Q q 0 0 0 rg BT 276.62 513.75 Td (ficers \(which includes our senior executives\), other employees ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 501.75 Td (and certain other investors hold Oaktree Operating Group units through OCGH and, subject to certain restrictions, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 489.75 Td (including the approval of our board of directors, have the right to exchange \(or may be required to exchange\) their ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 477.75 Td (OCGH units for) Tj ET Q q 0 0 0 rg BT 117.80 477.75 Td (, at the option of our board of directors, newly issued Class ) Tj ET Q q 0 0 0 rg BT 380.16 477.75 Td (A) Tj ET Q q 0 0 0 rg BT 386.28 477.75 Td ( units on a one-for-one basis, an ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 465.75 Td (equivalent amount of cash based on then-prevailing market prices, other consideration of equal value or any ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 453.75 Td (combination of the foregoing in accordance with the terms of the exchange agreement. Please see “Certain ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 441.75 Td (Relationships and Related ) Tj ET Q q 0 0 0 rg BT 169.34 441.75 Td (T) Tj ET Q q 0 0 0 rg BT 175.08 441.75 Td (ransactions, and Director Independence—Exchange ) Tj ET Q q 0 0 0 rg BT 409.12 441.75 Td (Agreement.” ) Tj ET Q q 0 0 0 rg BT 469.52 441.75 Td (The market price of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 429.75 Td (our Class ) Tj ET Q q 0 0 0 rg BT 94.46 429.75 Td (A) Tj ET Q q 0 0 0 rg BT 100.58 429.75 Td ( units could decline as a result of an exchange, or the perception that an exchange may occur) Tj ET Q q 0 0 0 rg BT 514.17 429.75 Td (, of a large ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 417.75 Td (number of OCGH units for our Class ) Tj ET Q q 0 0 0 rg BT 213.39 417.75 Td (A) Tj ET Q q 0 0 0 rg BT 219.51 417.75 Td ( units. ) Tj ET Q q 0 0 0 rg BT 251.20 417.75 Td (As of February 21, 2017, there were 89,803,877 vested OCGH units ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 405.75 Td (outstanding. Such sales or exchanges could also cause the price of our Class ) Tj ET Q q 0 0 0 rg BT 398.54 405.75 Td (A) Tj ET Q q 0 0 0 rg BT 404.66 405.75 Td ( units to fall and make it more ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 393.75 Td (dif) Tj ET Q q 0 0 0 rg BT 60.38 393.75 Td (ficult for our Class ) Tj ET Q q 0 0 0 rg BT 142.63 393.75 Td (A) Tj ET Q q 0 0 0 rg BT 148.75 393.75 Td ( unitholders to sell their units.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 375.75 Td (W) Tj ET Q q 0 0 0 rg BT 89.26 375.75 Td (e may issue our Class ) Tj ET Q q 0 0 0 rg BT 189.85 375.75 Td (A) Tj ET Q q 0 0 0 rg BT 195.97 375.75 Td ( units from time to time as consideration for future acquisitions and investments. If ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 363.75 Td (any such acquisition or investment is significant, the number of Class ) Tj ET Q q 0 0 0 rg BT 357.37 363.75 Td (A) Tj ET Q q 0 0 0 rg BT 363.49 363.75 Td ( units that we issue may in turn be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 351.75 Td (significant. W) Tj ET Q q 0 0 0 rg BT 112.06 351.75 Td (e may also grant registration rights covering Class ) Tj ET Q q 0 0 0 rg BT 336.05 351.75 Td (A) Tj ET Q q 0 0 0 rg BT 342.17 351.75 Td ( units issued in connection with any such ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 339.75 Td (acquisitions and investments. In addition, as of February 21, 2017, we may issue 13,855,186 Class ) Tj ET Q q 0 0 0 rg BT 493.03 339.75 Td (A) Tj ET Q q 0 0 0 rg BT 499.15 339.75 Td ( units, OCGH ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 327.75 Td (units or any other class or series of units or other ownership interests in us, OCGH or any of our af) Tj ET Q q 0 0 0 rg BT 484.46 327.75 Td (filiates \(“201) Tj ET Q q 0 0 0 rg BT 538.18 327.75 Td (1 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 315.75 Td (Plan Units”\) from time to time under our 201) Tj ET Q q 0 0 0 rg BT 243.78 315.75 Td (1 Oaktree Capital Group, LLC Equity Incentive Plan \(the “201) Tj ET Q q 0 0 0 rg BT 514.30 315.75 Td (1 Plan”\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 303.75 Td (as well as 201) Tj ET Q q 0 0 0 rg BT 112.63 303.75 Td (1 Plan Units that become available under our 201) Tj ET Q q 0 0 0 rg BT 330.91 303.75 Td (1 Plan pursuant to provisions in the 201) Tj ET Q q 0 0 0 rg BT 505.84 303.75 Td (1 Plan that ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 291.75 Td (automatically increase 201) Tj ET Q q 0 0 0 rg BT 167.66 291.75 Td (1 Plan Units available for future issuance. ) Tj ET Q q 0 0 0 rg BT 357.02 291.75 Td (The units granted under the 201) Tj ET Q q 0 0 0 rg BT 498.60 291.75 Td (1 Plan may ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 279.75 Td (be subject to vesting and forfeiture provisions. ) Tj ET Q q 0 0 0 rg BT 258.45 279.75 Td (Any vesting terms are set by our board of directors or a committee ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 267.75 Td (appointed by our board of directors in their respective discretion. ) Tj ET Q q 0 0 0 rg BT 339.60 267.75 Td (Additional issuances of 201) Tj ET Q q 0 0 0 rg BT 460.61 267.75 Td (1 Plan Units may ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 255.75 Td (dilute the holdings of our existing unitholders, reduce the market price of our Class ) Tj ET Q q 0 0 0 rg BT 416.31 255.75 Td (A) Tj ET Q q 0 0 0 rg BT 422.43 255.75 Td ( units or both.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 237.75 Td (The market price and trading volume of our Class ) Tj ET Q q 0 0 0 rg BT 288.02 237.75 Td (A) Tj ET Q q 0 0 0 rg BT 294.87 237.75 Td ( units has been and may continue to be volatile, which ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 225.75 Td (could result in rapid and substantial losses for our Class ) Tj ET Q q 0 0 0 rg BT 322.47 225.75 Td (A) Tj ET Q q 0 0 0 rg BT 329.32 225.75 Td ( unitholders.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 207.75 Td (The market price of our Class ) Tj ET Q q 0 0 0 rg BT 213.38 207.75 Td (A) Tj ET Q q 0 0 0 rg BT 219.50 207.75 Td ( units may be highly volatile and could be subject to wide fluctuations. In ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 195.75 Td (addition, the trading volume in our Class ) Tj ET Q q 0 0 0 rg BT 230.66 195.75 Td (A) Tj ET Q q 0 0 0 rg BT 236.78 195.75 Td ( units may fluctuate and cause significant price variations to occur) Tj ET Q q 0 0 0 rg BT 526.93 195.75 Td (. If the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 183.75 Td (market price of our Class ) Tj ET Q q 0 0 0 rg BT 163.37 183.75 Td (A) Tj ET Q q 0 0 0 rg BT 169.49 183.75 Td ( units declines significantly) Tj ET Q q 0 0 0 rg BT 286.59 183.75 Td (, Class ) Tj ET Q q 0 0 0 rg BT 319.38 183.75 Td (A) Tj ET Q q 0 0 0 rg BT 325.49 183.75 Td ( unitholders may be unable to sell their Class ) Tj ET Q q 0 0 0 rg BT 526.71 183.75 Td (A) Tj ET Q q 0 0 0 rg BT 532.83 183.75 Td ( units ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 171.75 Td (at an attractive price, if at all. ) Tj ET Q q 0 0 0 rg BT 182.66 171.75 Td (The market price of our Class ) Tj ET Q q 0 0 0 rg BT 316.04 171.75 Td (A) Tj ET Q q 0 0 0 rg BT 322.16 171.75 Td ( units may fluctuate or decline significantly in the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 159.75 Td (future. Some of the factors that could negatively af) Tj ET Q q 0 0 0 rg BT 275.50 159.75 Td (fect the price of our Class ) Tj ET Q q 0 0 0 rg BT 391.11 159.75 Td (A) Tj ET Q q 0 0 0 rg BT 397.23 159.75 Td ( units or result in fluctuations in the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 147.75 Td (price or trading volume of our Class ) Tj ET Q q 0 0 0 rg BT 210.07 147.75 Td (A) Tj ET Q q 0 0 0 rg BT 216.19 147.75 Td ( units include:) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 129.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 129.75 Td (variations in our quarterly operating results or distributions, which may be substantial; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 111.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 111.75 Td (our policy of taking a long-term perspective on making investment, operational and strategic decisions, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 99.75 Td (which is expected to result in significant and unpredictable variations in our quarterly returns; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 81.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 81.75 Td (failure to meet analysts’) Tj ET Q q 0 0 0 rg BT 196.68 81.75 Td ( performance estimates; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 63.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 63.75 Td (publication of research reports about us or the investment management industry or the failure of securities ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 51.75 Td (analysts to cover our Class ) Tj ET Q q 0 0 0 rg BT 214.28 51.75 Td (A) Tj ET Q q 0 0 0 rg BT 220.39 51.75 Td ( units; ) Tj ET Q endstream endobj 115 0 obj <> endobj 116 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (57) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 741.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 741.75 Td (additions or departures of key management or investment personnel; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 723.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 723.75 Td (adverse market reaction to any indebtedness we may incur or securities we may issue in the future; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 705.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 705.75 Td (changes in market valuations of similar companies; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 687.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 687.75 Td (speculation in the press or investment community; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 669.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 669.75 Td (changes or proposed changes in laws or regulations or dif) Tj ET Q q 0 0 0 rg BT 348.08 669.75 Td (fering interpretations thereof af) Tj ET Q q 0 0 0 rg BT 484.09 669.75 Td (fecting our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 657.75 Td (business or enforcement of these laws and regulations or announcements relating to these matters; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 639.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 639.75 Td (a lack of liquidity in the trading of our Class ) Tj ET Q q 0 0 0 rg BT 284.32 639.75 Td (A) Tj ET Q q 0 0 0 rg BT 290.44 639.75 Td ( units; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 621.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 621.75 Td (adverse publicity about the asset management industry generally or individual scandals, specifically; and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 603.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 603.75 Td (general market, political and economic conditions. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 585.75 Td (If we fail to maintain ef) Tj ET Q q 0 0 0 rg BT 157.06 585.75 Td (fective internal controls over our financial reporting in the future, the accuracy and ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 573.75 Td (timing of our financial reporting may be adversely af) Tj ET Q q 0 0 0 rg BT 298.76 573.75 Td (fected.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 555.75 Td (The Sarbanes-Oxley ) Tj ET Q q 0 0 0 rg BT 173.94 555.75 Td (Act requires, among other things, that as a public company we maintain ef) Tj ET Q q 0 0 0 rg BT 501.71 555.75 Td (fective ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 543.75 Td (internal control over financial reporting and disclosure controls and procedures. W) Tj ET Q q 0 0 0 rg BT 414.45 543.75 Td (e are required under Section 404 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 531.75 Td (to provide an annual management assessment of the ef) Tj ET Q q 0 0 0 rg BT 296.64 531.75 Td (fectiveness of our internal controls over financial reporting ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 519.75 Td (and to include in our annual reports an opinion from our independent registered public accounting firm addressing ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 507.75 Td (its assessment. ) Tj ET Q q 0 0 0 rg BT 124.29 507.75 Td (T) Tj ET Q q 0 0 0 rg BT 129.29 507.75 Td (o maintain and improve the ef) Tj ET Q q 0 0 0 rg BT 260.85 507.75 Td (fectiveness of our disclosure controls and procedures, significant ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 495.75 Td (resources and management oversight are required. W) Tj ET Q q 0 0 0 rg BT 292.16 495.75 Td (e have implemented and continue to implement additional ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 483.75 Td (procedures and processes for the purpose of addressing the standards and requirements applicable to public ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 471.75 Td (companies.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 453.75 Td (If it is determined that we are not in compliance with Section 404 in the future, we would be required to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 441.75 Td (implement remedial procedures and re-evaluate our internal control over financial reporting and our operations, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 429.75 Td (financial reporting or financial results could be adversely af) Tj ET Q q 0 0 0 rg BT 309.40 429.75 Td (fected, and we could receive an adverse report on ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 417.75 Td (internal controls from our independent registered public accounting firm. Matters impacting our internal controls ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 405.75 Td (may cause us to be unable to report our financial information on a timely basis and thereby subject us to adverse ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 393.75 Td (regulatory consequences, including sanctions by the SEC, or violations of applicable stock exchange listing rules. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 381.75 Td (Moreover) Tj ET Q q 0 0 0 rg BT 91.68 381.75 Td (, if a material misstatement occurs in the future, we may need to restate our financial results and there ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 369.75 Td (could be a negative reaction in the financial markets due to a loss of investor confidence in us and the reliability of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 357.75 Td (our financial statements. Confidence in the reliability of our financial statements is also likely to suf) Tj ET Q q 0 0 0 rg BT 486.15 357.75 Td (fer if our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 345.75 Td (independent registered public accounting firm reports a material weakness in our internal control over financial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 333.75 Td (reporting. ) Tj ET Q q 0 0 0 rg BT 97.62 333.75 Td (This could materially adversely af) Tj ET Q q 0 0 0 rg BT 245.28 333.75 Td (fect us and lead to a decline in the market price of our Class ) Tj ET Q q 0 0 0 rg BT 513.20 333.75 Td (A) Tj ET Q q 0 0 0 rg BT 519.32 333.75 Td ( units.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 315.75 Td (Preparing our consolidated financial statements involves a number of complex manual and automated ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 303.75 Td (processes, which are dependent on individual data input or review and require significant management judgment. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 291.75 Td (One or more of these elements may result in errors that may not be detected and could result in a material ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 279.75 Td (misstatement of our consolidated financial statements.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 261.75 Td (The tax attributes of our Class ) Tj ET Q q 0 0 0 rg BT 196.32 261.75 Td (A) Tj ET Q q 0 0 0 rg BT 203.17 261.75 Td ( units may cause mutual funds to limit or reduce their holdings of Class ) Tj ET Q q 0 0 0 rg BT 546.19 261.75 Td (A) Tj ET Q q 0 0 0 rg BT 553.04 261.75 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 249.75 Td (units.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 231.75 Td (U.S. mutual funds that are treated as regulated investment companies \(“RICs”\) for U.S. federal income tax ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 219.75 Td (purposes are required, among other things, to distribute at least 90% of their taxable income to their shareholders in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 207.75 Td (order to maintain their favorable U.S. income tax status. RICs are required to meet this distribution requirement ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 195.75 Td (regardless of whether their investments generate cash distributions equal to their taxable income. ) Tj ET Q q 0 0 0 rg BT 485.24 195.75 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 536.19 195.75 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 183.75 Td (these investors have a strong incentive to invest in securities in which the amount of cash generated approximates ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 171.75 Td (the amount of taxable income recognized. Our Class ) Tj ET Q q 0 0 0 rg BT 287.91 171.75 Td (A) Tj ET Q q 0 0 0 rg BT 294.02 171.75 Td ( unitholders, however) Tj ET Q q 0 0 0 rg BT 388.53 171.75 Td (, are frequently allocated an amount of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 159.75 Td (taxable income that exceeds the amount of cash we distribute to them. ) Tj ET Q q 0 0 0 rg BT 367.77 159.75 Td (This may make it dif) Tj ET Q q 0 0 0 rg BT 456.50 159.75 Td (ficult for RICs to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 147.75 Td (maintain a meaningful portion of their portfolio in our Class ) Tj ET Q q 0 0 0 rg BT 310.70 147.75 Td (A) Tj ET Q q 0 0 0 rg BT 316.82 147.75 Td ( units and may force those RICs that do hold our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 135.75 Td (Class ) Tj ET Q q 0 0 0 rg BT 77.23 135.75 Td (A) Tj ET Q q 0 0 0 rg BT 83.35 135.75 Td ( units to sell all or a portion of their holdings. ) Tj ET Q q 0 0 0 rg BT 283.83 135.75 Td (These actions could increase the supply of, and reduce the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 123.75 Td (demand for) Tj ET Q q 0 0 0 rg BT 100.03 123.75 Td (, our Class ) Tj ET Q q 0 0 0 rg BT 150.05 123.75 Td (A) Tj ET Q q 0 0 0 rg BT 156.17 123.75 Td ( units, which could cause the price of our Class ) Tj ET Q q 0 0 0 rg BT 366.84 123.75 Td (A) Tj ET Q q 0 0 0 rg BT 372.95 123.75 Td ( units to decline.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 105.75 Td (The market price of our Class ) Tj ET Q q 0 0 0 rg BT 193.01 105.75 Td (A) Tj ET Q q 0 0 0 rg BT 199.86 105.75 Td ( units may decline due to the large number of Class ) Tj ET Q q 0 0 0 rg BT 447.32 105.75 Td (A) Tj ET Q q 0 0 0 rg BT 454.17 105.75 Td ( units eligible for ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 93.75 Td (future issuance upon the exchange of OCGH units.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 75.75 Td (Subject to certain restrictions, including the approval of our board of directors, each holder of units in OCGH ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 63.75 Td (has the right to exchange \(or may be required to exchange\) his or her units for) Tj ET Q q 0 0 0 rg BT 395.20 63.75 Td (, at the option of our board of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 51.75 Td (directors, newly issued Class ) Tj ET Q q 0 0 0 rg BT 181.16 51.75 Td (A) Tj ET Q q 0 0 0 rg BT 187.28 51.75 Td ( units on a one-for-one basis, an equivalent amount of cash based on then-) Tj ET Q endstream endobj 117 0 obj <> endobj 118 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (58) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (prevailing market prices, other consideration of equal value or any combination of the foregoing. ) Tj ET Q q 0 0 0 rg BT 478.96 741.75 Td (The Class ) Tj ET Q q 0 0 0 rg BT 526.20 741.75 Td (A) Tj ET Q q 0 0 0 rg BT 532.31 741.75 Td ( units ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (issued upon such exchanges may generally be resold immediately in the public market upon the release of any ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (applicable lock-up periods, and, in the case of Class ) Tj ET Q q 0 0 0 rg BT 282.92 717.75 Td (A) Tj ET Q q 0 0 0 rg BT 289.03 717.75 Td ( units held by our af) Tj ET Q q 0 0 0 rg BT 376.13 717.75 Td (filiates, as that term is defined in Rule 144 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 705.75 Td (under the Securities ) Tj ET Q q 0 0 0 rg BT 141.17 705.75 Td (Act, subject to the applicable volume limitations of Rule 144 unless we register the resale of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 693.75 Td (such units. ) Tj ET Q q 0 0 0 rg BT 102.81 693.75 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 153.75 693.75 Td (, subject to the exchange agreement described under “Certain Relationships and Related ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 681.75 Td (T) Tj ET Q q 0 0 0 rg BT 55.74 681.75 Td (ransactions, and Director Independence—Exchange ) Tj ET Q q 0 0 0 rg BT 289.78 681.75 Td (Agreement,” a substantial number of additional units are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 669.75 Td (expected to be available to be sold in the future by the OCGH unitholders. In addition, we completed the exchange ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 657.75 Td (of 12,998,725 OCGH units into an equivalent number of Class ) Tj ET Q q 0 0 0 rg BT 326.83 657.75 Td (A) Tj ET Q q 0 0 0 rg BT 332.95 657.75 Td ( units in November 2015. ) Tj ET Q q 0 0 0 rg BT 449.50 657.75 Td (The exchanged Class ) Tj ET Q q 0 0 0 rg BT 548.45 657.75 Td (A) Tj ET Q q 0 0 0 rg BT 554.57 657.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 645.75 Td (units are subject to a three-year lock-up scheduled to be released in equal quarterly increments, generally two ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 633.75 Td (business days after each quarter) Tj ET Q q 0 0 0 rg BT 195.45 633.75 Td (’) Tj ET Q q 0 0 0 rg BT 197.50 633.75 Td (s earnings release, which started with the earnings release for the fourth quarter ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 621.75 Td (of 2015. ) Tj ET Q q 0 0 0 rg BT 91.52 621.75 Td (This will result in approximately 1.1 million units becoming newly tradable each quarter until November ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 609.75 Td (2018.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 591.75 Td (The market price of our Class ) Tj ET Q q 0 0 0 rg BT 213.38 591.75 Td (A) Tj ET Q q 0 0 0 rg BT 219.50 591.75 Td ( units could decline as a result of sales of a large number of Class ) Tj ET Q q 0 0 0 rg BT 512.99 591.75 Td (A) Tj ET Q q 0 0 0 rg BT 519.11 591.75 Td ( units ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 579.75 Td (issuable upon exchange of OCGH units. ) Tj ET Q q 0 0 0 rg BT 233.81 579.75 Td (These sales, or the possibility that these sales may occur) Tj ET Q q 0 0 0 rg BT 486.16 579.75 Td (, may also make ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 567.75 Td (it more dif) Tj ET Q q 0 0 0 rg BT 93.72 567.75 Td (ficult for us to sell equity securities in the future at a time and at a price that we deem appropriate.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 549.75 Td (Additional issuances of units under our 201) Tj ET Q q 0 0 0 rg BT 270.49 549.75 Td (1 Plan may dilute the holdings of our existing unitholders, reduce ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 537.75 Td (the market price of our Class ) Tj ET Q q 0 0 0 rg BT 180.05 537.75 Td (A) Tj ET Q q 0 0 0 rg BT 186.17 537.75 Td ( units or both. ) Tj ET Q q 0 0 0 rg BT 251.77 537.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 302.17 537.75 Td (, our operating agreement authorizes us to issue an ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 525.75 Td (unlimited number of additional units and options, rights, warrants and appreciation rights relating to such units for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 513.75 Td (consideration or for no consideration and on terms and conditions established by our board of directors in its sole ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 501.75 Td (discretion without the approval of Class ) Tj ET Q q 0 0 0 rg BT 226.21 501.75 Td (A) Tj ET Q q 0 0 0 rg BT 232.32 501.75 Td ( unitholders. ) Tj ET Q q 0 0 0 rg BT 292.18 501.75 Td (These additional securities may be used for a variety of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 489.75 Td (purposes, including future of) Tj ET Q q 0 0 0 rg BT 175.45 489.75 Td (ferings to raise additional capital, acquisitions and employee benefit plans.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 471.75 Td (W) Tj ET Q q 0 0 0 rg BT 59.26 471.75 Td (e are a “controlled company” within the meaning of the New ) Tj ET Q q 0 0 0 rg BT 348.01 471.75 Td (Y) Tj ET Q q 0 0 0 rg BT 354.31 471.75 Td (ork Stock Exchange \(“NYSE”\) listing ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 459.75 Td (standards and, as a result, qualify for) Tj ET Q q 0 0 0 rg BT 226.72 459.75 Td (, and rely on, exemptions from certain corporate governance ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 447.75 Td (requirements.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 429.75 Td (Because our senior executives own units representing more than 50% of our voting power) Tj ET Q q 0 0 0 rg BT 477.45 429.75 Td (, we are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 417.75 Td (considered a “controlled company” for purposes of the NYSE listing requirements. ) Tj ET Q q 0 0 0 rg BT 416.85 417.75 Td (As such, we have elected, and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 405.75 Td (intend to continue to elect, not to comply with certain NYSE corporate governance requirements, which may include ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 393.75 Td (one or more of the following: that a majority of our board of directors consist of independent directors, that we have ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 381.75 Td (a compensation committee that is composed entirely of independent directors with a written charter addressing the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 369.75 Td (committee’) Tj ET Q q 0 0 0 rg BT 98.16 369.75 Td (s purpose and responsibilities and that we have a nominating and corporate governance committee that ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 357.75 Td (is composed entirely of independent directors with a written charter addressing the committee’) Tj ET Q q 0 0 0 rg BT 465.58 357.75 Td (s purpose and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 345.75 Td (responsibilities. In addition, we are not required to hold annual meetings of our unitholders. ) Tj ET Q q 0 0 0 rg BT 458.58 345.75 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 509.53 345.75 Td (, our Class ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 333.75 Td (A) Tj ET Q q 0 0 0 rg BT 56.12 333.75 Td ( unitholders do not have the same protections af) Tj ET Q q 0 0 0 rg BT 269.40 333.75 Td (forded to shareholders of companies that are subject to all of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 321.75 Td (NYSE corporate governance requirements. Please see “Directors, Executive Of) Tj ET Q q 0 0 0 rg BT 401.65 321.75 Td (ficers and Corporate Governance—) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 309.75 Td (Board Structure and Governance—Controlled Company Exemption.”) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 291.75 Td (W) Tj ET Q q 0 0 0 rg BT 59.26 291.75 Td (e cannot assure you that our intended quarterly distributions will be paid each quarter or at all.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 273.75 Td (W) Tj ET Q q 0 0 0 rg BT 89.26 273.75 Td (e intend to distribute substantially all of the excess of our share of distributable earnings, net of income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 261.75 Td (taxes, as determined by our board of directors after taking into account factors it deems relevant, such as, but not ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 249.75 Td (limited to, working capital levels, known or anticipated cash needs, business and investment opportunities, general ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 237.75 Td (economic and business conditions, our obligations under our debt instruments or other agreements, our compliance ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 225.75 Td (with applicable laws, the level and character of taxable income that flows through to our Class ) Tj ET Q q 0 0 0 rg BT 466.34 225.75 Td (A) Tj ET Q q 0 0 0 rg BT 472.46 225.75 Td ( unitholders, the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 213.75 Td (availability and terms of outside financing, the possible repurchase of our Class ) Tj ET Q q 0 0 0 rg BT 402.42 213.75 Td (A) Tj ET Q q 0 0 0 rg BT 408.54 213.75 Td ( units in open market transactions, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 201.75 Td (in privately negotiated transactions or otherwise, the possible repurchase of OCGH units, providing for future ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 189.75 Td (distributions to our Class ) Tj ET Q q 0 0 0 rg BT 161.72 189.75 Td (A) Tj ET Q q 0 0 0 rg BT 167.84 189.75 Td ( and OCGH unitholders, and growing our capital base.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 171.75 Td (W) Tj ET Q q 0 0 0 rg BT 89.26 171.75 Td (e are not currently restricted by any contract from making distributions to our unitholders, although certain ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 159.75 Td (of our subsidiaries are bound by credit agreements that contain certain restricted payment or other covenants, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 147.75 Td (which may have the ef) Tj ET Q q 0 0 0 rg BT 149.32 147.75 Td (fect of limiting the amount of distributions that we receive from our subsidiaries. In addition, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 135.75 Td (we are not permitted to make a distribution under Section 18-607 of the Delaware Limited Liability Company ) Tj ET Q q 0 0 0 rg BT 529.15 135.75 Td (Act ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 123.75 Td (\(the “Act”\) if, after giving ef) Tj ET Q q 0 0 0 rg BT 167.64 123.75 Td (fect to the distribution, our liabilities would exceed the fair value of our assets.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 105.75 Td (Distributions to our Class ) Tj ET Q q 0 0 0 rg BT 193.38 105.75 Td (A) Tj ET Q q 0 0 0 rg BT 199.50 105.75 Td ( unitholders are funded by our share of the Oaktree Operating Group’) Tj ET Q q 0 0 0 rg BT 505.61 105.75 Td (s ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 93.75 Td (distributions. ) Tj ET Q q 0 0 0 rg BT 111.51 93.75 Td (T) Tj ET Q q 0 0 0 rg BT 116.51 93.75 Td (o measure our earnings for purposes of, among other things, assisting in the determination of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 81.75 Td (distributions from the Oaktree Operating Group entities to us, we utilize distributable earnings, a non-GAAP) Tj ET Q q 0 0 0 rg BT 523.39 81.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 69.75 Td (performance measure derived from our segment results, which excludes the ef) Tj ET Q q 0 0 0 rg BT 397.76 69.75 Td (fects of the consolidated funds.) Tj ET Q endstream endobj 119 0 obj <> endobj 120 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (59) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 741.75 Td (The declaration, payment and determination of the amount of our quarterly distribution, if any) Tj ET Q q 0 0 0 rg BT 489.49 741.75 Td (, is at the sole ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (discretion of our board of directors, which may change our distribution policy at any time. Our operating agreement ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (provides that so long as our senior executives, or their successors or af) Tj ET Q q 0 0 0 rg BT 364.97 717.75 Td (filiated entities \(other than us or our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 705.75 Td (subsidiaries\), including OCGH, collectively hold, directly or indirectly) Tj ET Q q 0 0 0 rg BT 349.93 705.75 Td (, at least 10% of the aggregate outstanding ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 693.75 Td (Oaktree Operating Group units \(the “Oaktree control condition”\), our manager) Tj ET Q q 0 0 0 rg BT 392.39 693.75 Td (, which is 100% owned by our senior ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 681.75 Td (executives, is entitled to designate all the members of our board of directors. ) Tj ET Q q 0 0 0 rg BT 392.96 681.75 Td (As a result, Class ) Tj ET Q q 0 0 0 rg BT 472.99 681.75 Td (A) Tj ET Q q 0 0 0 rg BT 479.11 681.75 Td ( unitholders do not ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 669.75 Td (have the power to elect the board of directors as long as the Oaktree control condition is satisfied. Moreover) Tj ET Q q 0 0 0 rg BT 529.15 669.75 Td (, our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 657.75 Td (board of directors may have interests that conflict with the interests of the Class ) Tj ET Q q 0 0 0 rg BT 403.50 657.75 Td (A) Tj ET Q q 0 0 0 rg BT 409.62 657.75 Td ( unitholders because the persons ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 645.75 Td (who control our manager and a majority of the members of our board of directors hold the vast majority of their ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 633.75 Td (economic interests in the Oaktree Operating Group through OCGH rather than through OCG. W) Tj ET Q q 0 0 0 rg BT 476.68 633.75 Td (e cannot assure ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 621.75 Td (you that any distributions, whether quarterly or otherwise, will or can be paid.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 603.75 Td (If we reduce or cease to make distributions on our Class ) Tj ET Q q 0 0 0 rg BT 331.24 603.75 Td (A) Tj ET Q q 0 0 0 rg BT 337.35 603.75 Td ( units, the value of our Class ) Tj ET Q q 0 0 0 rg BT 465.76 603.75 Td (A) Tj ET Q q 0 0 0 rg BT 471.88 603.75 Td ( units may ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 591.75 Td (significantly decrease.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 573.75 Td (Risks Relating to Our Organization and Structure) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 555.75 Td (If we or any of our private funds were deemed an investment company under the Investment Company ) Tj ET Q q 0 0 0 rg BT 539.18 555.75 Td (Act, ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 543.75 Td (applicable restrictions could make it impractical for us to continue our business or such funds as ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 531.75 Td (contemplated and could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 292.13 531.75 Td (fect on our business.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 513.75 Td (A) Tj ET Q q 0 0 0 rg BT 86.12 513.75 Td ( person will generally be deemed to be an “investment company” for purposes of the Investment Company ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 501.75 Td (Act if:) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 483.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 483.75 Td (it is or holds itself out as being engaged primarily) Tj ET Q q 0 0 0 rg BT 307.48 483.75 Td (, or proposes to engage primarily) Tj ET Q q 0 0 0 rg BT 452.93 483.75 Td (, in the business of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 471.75 Td (investing, reinvesting or trading in securities; or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 453.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 453.75 Td (absent an applicable exemption, it owns or proposes to acquire investment securities having a value ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 441.75 Td (exceeding 40% of the value of its total assets \(exclusive of U.S. government securities and cash items\) on ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 429.75 Td (an unconsolidated basis. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 411.75 Td (W) Tj ET Q q 0 0 0 rg BT 89.26 411.75 Td (e believe that we are engaged primarily in the business of providing asset management services and not ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 399.75 Td (primarily in the business of investing, reinvesting or trading in securities. W) Tj ET Q q 0 0 0 rg BT 382.74 399.75 Td (e also believe that the primary source of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 387.75 Td (income from our business is properly characterized as income earned in exchange for the provision of services. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 375.75 Td (W) Tj ET Q q 0 0 0 rg BT 59.26 375.75 Td (e hold ourselves out as an asset management firm and do not propose to engage primarily in the business of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 363.75 Td (investing, reinvesting or trading in securities. Further) Tj ET Q q 0 0 0 rg BT 284.00 363.75 Td (, because we believe that the capital interests of the general ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 351.75 Td (partners of our funds in their respective funds are neither securities nor investment securities for purposes of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 339.75 Td (Investment Company ) Tj ET Q q 0 0 0 rg BT 146.71 339.75 Td (Act, we believe that less than 40% of our total assets \(exclusive of U.S. government securities ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 327.75 Td (and cash items\) on an unconsolidated basis are comprised of assets that could be considered investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 315.75 Td (securities. ) Tj ET Q q 0 0 0 rg BT 100.02 315.75 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 150.97 315.75 Td (, we do not believe that we are an investment company under the Investment Company ) Tj ET Q q 0 0 0 rg BT 539.52 315.75 Td (Act.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 297.75 Td (The Investment Company ) Tj ET Q q 0 0 0 rg BT 196.72 297.75 Td (Act and the rules thereunder contain detailed parameters for the organization and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 285.75 Td (operation of investment companies. ) Tj ET Q q 0 0 0 rg BT 212.87 285.75 Td (Among other things, the Investment Company ) Tj ET Q q 0 0 0 rg BT 418.54 285.75 Td (Act and the rules thereunder ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 273.75 Td (limit or prohibit transactions with af) Tj ET Q q 0 0 0 rg BT 203.21 273.75 Td (filiates, impose limitations on the issuance of debt and equity securities, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 261.75 Td (generally prohibit the issuance of options and impose certain governance requirements. W) Tj ET Q q 0 0 0 rg BT 452.27 261.75 Td (e intend to conduct our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 249.75 Td (operations so that we will not be deemed to be an investment company under the Investment Company ) Tj ET Q q 0 0 0 rg BT 509.16 249.75 Td (Act. While ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 237.75 Td (we do advise or sub-advise funds that are registered under the Investment Company ) Tj ET Q q 0 0 0 rg BT 426.88 237.75 Td (Act, we operate our private ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 225.75 Td (funds so that they are not deemed to be investment companies that are required to be registered under the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 213.75 Td (Investment Company ) Tj ET Q q 0 0 0 rg BT 146.71 213.75 Td (Act. If anything were to happen that would cause us to be deemed to be an investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 201.75 Td (company under the Investment Company ) Tj ET Q q 0 0 0 rg BT 235.10 201.75 Td (Act or that would require us to register our private funds under the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 189.75 Td (Investment Company ) Tj ET Q q 0 0 0 rg BT 146.71 189.75 Td (Act, requirements imposed by the Investment Company ) Tj ET Q q 0 0 0 rg BT 395.17 189.75 Td (Act, including limitations on capital ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 177.75 Td (structure, ability to transact business with af) Tj ET Q q 0 0 0 rg BT 243.24 177.75 Td (filiates and ability to compensate senior employees, could make it ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 165.75 Td (impractical for us to continue our business or the private funds as currently conducted, impair the agreements and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 153.75 Td (arrangements between and among OCGH, us, our private funds and our senior management, or any combination ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 141.75 Td (thereof, and materially adversely af) Tj ET Q q 0 0 0 rg BT 205.45 141.75 Td (fect our business, financial condition and results of operations. In addition, we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 129.75 Td (may be required to limit the amount of investments that we make as a principal or otherwise conduct our business ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 117.75 Td (in a manner that does not subject us to the registration and other requirements of the Investment Company ) Tj ET Q q 0 0 0 rg BT 524.72 117.75 Td (Act.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 99.75 Td (Our Class ) Tj ET Q q 0 0 0 rg BT 99.65 99.75 Td (A) Tj ET Q q 0 0 0 rg BT 106.50 99.75 Td ( unitholders do not elect our manager and have limited ability to influence decisions regarding ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 87.75 Td (our business, and our senior executives are able to determine the outcome of any matters submitted to a ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 75.75 Td (vote of unitholders.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 57.75 Td (Our operations and activities are managed by our board of directors. So long as the Oaktree control ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 45.75 Td (condition is satisfied, our manager) Tj ET Q q 0 0 0 rg BT 201.20 45.75 Td (, Oaktree Capital Group Holdings GP) Tj ET Q q 0 0 0 rg BT 364.43 45.75 Td (, LLC, which is owned by our senior ) Tj ET Q endstream endobj 121 0 obj <> endobj 122 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (60) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (executives, is entitled to designate all the members of our board of directors and to remove or replace any director ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (\(or our entire board of directors\) at any time. ) Tj ET Q q 0 0 0 rg BT 250.64 729.75 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 301.59 729.75 Td (, our senior executives control our management and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (af) Tj ET Q q 0 0 0 rg BT 58.16 717.75 Td (fairs. Our Class ) Tj ET Q q 0 0 0 rg BT 132.07 717.75 Td (A) Tj ET Q q 0 0 0 rg BT 138.18 717.75 Td ( unitholders do not elect our manager) Tj ET Q q 0 0 0 rg BT 303.29 717.75 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 699.75 Td (While our Class ) Tj ET Q q 0 0 0 rg BT 152.25 699.75 Td (A) Tj ET Q q 0 0 0 rg BT 158.36 699.75 Td ( units and Class B units generally vote together as a single class on the limited matters ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 687.75 Td (submitted to a vote of unitholders, including certain amendments of our operating agreement, our operating ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 675.75 Td (agreement does not obligate us to hold annual meetings. ) Tj ET Q q 0 0 0 rg BT 306.85 675.75 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 357.79 675.75 Td (, our Class ) Tj ET Q q 0 0 0 rg BT 407.81 675.75 Td (A) Tj ET Q q 0 0 0 rg BT 413.93 675.75 Td ( unitholders have only limited ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 663.75 Td (voting rights on matters af) Tj ET Q q 0 0 0 rg BT 164.87 663.75 Td (fecting our business and therefore limited ability to influence decisions regarding our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 651.75 Td (business. In addition, through their control of our Class B units held by OCGH, our senior executives, with a 93.6% ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 639.75 Td (voting interest as of February 21, 2017, are able to determine the outcome of any matter that our board of directors ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 627.75 Td (does submit to a vote.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 609.75 Td (Our senior executives’) Tj ET Q q 0 0 0 rg BT 156.90 609.75 Td ( control of our manager and of the combined voting power of our units and certain ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 597.75 Td (provisions of our operating agreement could delay or prevent a change of control.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 579.75 Td (As of February 21, 2017, our senior executives control 93.6% of the combined voting power of our units ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 567.75 Td (through their control of OCGH. In addition, our senior executives have the ability to determine the composition of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 555.75 Td (our board of directors through their control of our manager) Tj ET Q q 0 0 0 rg BT 306.81 555.75 Td (. Our senior executives are able to appoint and remove ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 543.75 Td (our directors and change the size of our board of directors, are able to determine the outcome of all matters ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 531.75 Td (requiring unitholder approval, are able to cause or prevent a change of control of our company and can preclude ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 519.75 Td (any unsolicited acquisition of our company) Tj ET Q q 0 0 0 rg BT 237.14 519.75 Td (. In addition, provisions in our operating agreement make it more dif) Tj ET Q q 0 0 0 rg BT 538.79 519.75 Td (ficult ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 507.75 Td (and expensive for a third party to acquire control of us even if a change of control would be beneficial to the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 495.75 Td (interests of our Class ) Tj ET Q q 0 0 0 rg BT 146.15 495.75 Td (A) Tj ET Q q 0 0 0 rg BT 152.27 495.75 Td ( unitholders. For example, our operating agreement provides that only our board of directors ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 483.75 Td (may call meetings and authorizes the issuance of preferred units in us that could be issued by our board of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 471.75 Td (directors to thwart a takeover attempt. ) Tj ET Q q 0 0 0 rg BT 223.23 471.75 Td (The control of our manager and voting power by our senior executives and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 459.75 Td (these provisions of our operating agreement could delay or prevent a change of control and thereby deprive Class ) Tj ET Q q 0 0 0 rg BT 555.86 459.75 Td (A) Tj ET Q q 0 0 0 rg BT 561.98 459.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 447.75 Td (unitholders of an opportunity to receive a premium for their Class ) Tj ET Q q 0 0 0 rg BT 339.03 447.75 Td (A) Tj ET Q q 0 0 0 rg BT 345.15 447.75 Td ( units as part of a sale of our company and might ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 435.75 Td (ultimately af) Tj ET Q q 0 0 0 rg BT 103.17 435.75 Td (fect the market price of our Class ) Tj ET Q q 0 0 0 rg BT 252.12 435.75 Td (A) Tj ET Q q 0 0 0 rg BT 258.24 435.75 Td ( units.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 417.75 Td (Our senior executives hold a small amount of their economic interest in the Oaktree Operating Group ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 405.75 Td (through us, which may give rise to conflicts of interest, and it is dif) Tj ET Q q 0 0 0 rg BT 367.64 405.75 Td (ficult for a Class ) Tj ET Q q 0 0 0 rg BT 447.85 405.75 Td (A) Tj ET Q q 0 0 0 rg BT 454.70 405.75 Td ( unitholder to ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 393.75 Td (successfully challenge a resolution of a conflict of interest by us.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 375.75 Td (As of February 21, 2017, our senior executives hold approximately 41.6% of the economic interests of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 363.75 Td (Oaktree Operating Group. Because they hold the vast majority of this economic interest through their ownership in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 351.75 Td (OCGH rather than through their ownership in us, our senior executives may have interests that conflict with those of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 339.75 Td (the holders of Class ) Tj ET Q q 0 0 0 rg BT 140.61 339.75 Td (A) Tj ET Q q 0 0 0 rg BT 146.72 339.75 Td ( units. For example, our senior executives may have dif) Tj ET Q q 0 0 0 rg BT 393.88 339.75 Td (ferent tax positions from us, which ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 327.75 Td (could influence their decisions regarding whether and when to dispose of assets and whether and when to incur ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 315.75 Td (new or refinance existing indebtedness, especially in light of the existence of the tax receivable agreement. In ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 303.75 Td (addition, the structuring of future transactions may take into consideration the senior executives’) Tj ET Q q 0 0 0 rg BT 473.19 303.75 Td ( and employees’) Tj ET Q q 0 0 0 rg BT 545.64 303.75 Td ( tax ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 291.75 Td (considerations even where no similar benefit would accrue to us and the Class ) Tj ET Q q 0 0 0 rg BT 399.64 291.75 Td (A) Tj ET Q q 0 0 0 rg BT 405.76 291.75 Td ( unitholders.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 273.75 Td (Any resolution or course of action taken by our directors or their af) Tj ET Q q 0 0 0 rg BT 372.19 273.75 Td (filiates with respect to an existing or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 261.75 Td (potential conflict of interest involving OCGH, our directors or their respective af) Tj ET Q q 0 0 0 rg BT 397.19 261.75 Td (filiates is permitted and deemed ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 249.75 Td (approved by the Class ) Tj ET Q q 0 0 0 rg BT 151.73 249.75 Td (A) Tj ET Q q 0 0 0 rg BT 157.85 249.75 Td ( unitholders and does not constitute a breach of our operating agreement or any duty ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 237.75 Td (\(including any fiduciary duty\) if the course of action is \(a\) approved by the vote of unitholders representing a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 225.75 Td (majority of the total votes that may be cast by disinterested parties, \(b\) on terms no less favorable to us, our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 213.75 Td (subsidiaries or our unitholders than those generally being provided to or available from unrelated third parties, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 201.75 Td (\(c\) fair and reasonable to us, taking into account the totality of the relationships among the parties involved, or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 189.75 Td (\(d\) approved by a majority of our directors who are not employees of us, our subsidiaries or any of our af) Tj ET Q q 0 0 0 rg BT 511.71 189.75 Td (filiates ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 177.75 Td (controlled by our senior executives, who we refer to as our “outside directors.” If our board of directors determines ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 165.75 Td (that any resolution or course of action satisfies either \(b\) or \(c\) above, then it will be presumed that such ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 153.75 Td (determination was made in good faith and a Class ) Tj ET Q q 0 0 0 rg BT 274.02 153.75 Td (A) Tj ET Q q 0 0 0 rg BT 280.14 153.75 Td ( unitholder seeking to challenge our directors’) Tj ET Q q 0 0 0 rg BT 481.00 153.75 Td ( determination ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 141.75 Td (would bear the burden of overcoming such presumption. ) Tj ET Q q 0 0 0 rg BT 304.97 141.75 Td (This is dif) Tj ET Q q 0 0 0 rg BT 347.02 141.75 Td (ferent from the situation with Delaware ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 129.75 Td (corporations, where a conflict resolution by an interested party would be presumed to be unfair and the interested ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 117.75 Td (party would have the burden of demonstrating that the resolution was fair) Tj ET Q q 0 0 0 rg BT 372.42 117.75 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 99.75 Td (As noted above, if our board of directors obtains the approval of a majority of our outside directors for any ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 87.75 Td (given action, the resolution will be conclusively deemed not a breach by our board of directors of any duties it may ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 75.75 Td (owe to us or our Class ) Tj ET Q q 0 0 0 rg BT 151.71 75.75 Td (A) Tj ET Q q 0 0 0 rg BT 157.83 75.75 Td ( unitholders. ) Tj ET Q q 0 0 0 rg BT 217.69 75.75 Td (This is dif) Tj ET Q q 0 0 0 rg BT 259.74 75.75 Td (ferent from the situation with Delaware corporations, where the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 63.75 Td (approval of outside directors may) Tj ET Q q 0 0 0 rg BT 196.55 63.75 Td (, in certain circumstances, merely shift the burden of demonstrating unfairness to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 51.75 Td (the plaintif) Tj ET Q q 0 0 0 rg BT 95.41 51.75 Td (f. Potential conflicts of interest may be resolved by our outside directors even if they hold interests in us ) Tj ET Q endstream endobj 123 0 obj <> endobj 124 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (61) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (or our funds or are otherwise af) Tj ET Q q 0 0 0 rg BT 188.78 741.75 Td (fected by the decision or action that they are approving. If an investor chooses to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (purchase a Class ) Tj ET Q q 0 0 0 rg BT 129.49 729.75 Td (A) Tj ET Q q 0 0 0 rg BT 135.61 729.75 Td ( unit, the investor is treated as having consented to the provisions set forth in our operating ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (agreement, including provisions regarding conflicts of interest situations that, in the absence of such provisions, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 705.75 Td (might be considered a breach of fiduciary or other duties under applicable state law) Tj ET Q q 0 0 0 rg BT 417.44 705.75 Td (. ) Tj ET Q q 0 0 0 rg BT 425.22 705.75 Td (As a result, Class ) Tj ET Q q 0 0 0 rg BT 505.25 705.75 Td (A) Tj ET Q q 0 0 0 rg BT 511.37 705.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 693.75 Td (unitholders, as a practical matter) Tj ET Q q 0 0 0 rg BT 193.96 693.75 Td (, are not able to successfully challenge an informed decision by our outside ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 681.75 Td (directors.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 663.75 Td (Our operating agreement contains provisions that substantially limit remedies available to our Class ) Tj ET Q q 0 0 0 rg BT 529.76 663.75 Td (A) Tj ET Q q 0 0 0 rg BT 536.61 663.75 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 651.75 Td (unitholders for actions that might otherwise result in liability for our of) Tj ET Q q 0 0 0 rg BT 384.84 651.75 Td (ficers, directors, manager or Class B ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 639.75 Td (unitholder) Tj ET Q q 0 0 0 rg BT 98.33 639.75 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 621.75 Td (While our operating agreement provides that our of) Tj ET Q q 0 0 0 rg BT 305.50 621.75 Td (ficers and directors have fiduciary duties equivalent to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 609.75 Td (those applicable to of) Tj ET Q q 0 0 0 rg BT 144.33 609.75 Td (ficers and directors of a Delaware corporation under the Delaware General Corporation Law ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 597.75 Td (\(“DGCL”\), the agreement also provides that our of) Tj ET Q q 0 0 0 rg BT 270.47 597.75 Td (ficers and directors are liable to us or our unitholders for an act or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 585.75 Td (omission only if such act or omission constitutes a breach of the duties owed to us or our unitholders, as applicable, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 573.75 Td (by any such of) Tj ET Q q 0 0 0 rg BT 114.30 573.75 Td (ficer or director and such breach is the result of willful malfeasance, gross negligence, the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 561.75 Td (commission of a felony or a material violation of law) Tj ET Q q 0 0 0 rg BT 277.88 561.75 Td (, in each case, that has, or could reasonably be expected to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 549.75 Td (have, a material adverse ef) Tj ET Q q 0 0 0 rg BT 170.44 549.75 Td (fect on us or fraud. Moreover) Tj ET Q q 0 0 0 rg BT 301.06 549.75 Td (, we have agreed to indemnify each of our directors and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 537.75 Td (of) Tj ET Q q 0 0 0 rg BT 58.16 537.75 Td (ficers, to the fullest extent permitted by law) Tj ET Q q 0 0 0 rg BT 246.58 537.75 Td (, against all expenses and liabilities \(including judgments, fines, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 525.75 Td (penalties, interest, amounts paid in settlement with our approval and counsel fees and disbursements\) arising from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 513.75 Td (the performance of any of their obligations or duties in connection with their service to us, including in connection ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 501.75 Td (with any civil, criminal, administrative, investigative or other action, suit or proceeding to which any such person ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 489.75 Td (may be made party by reason of being or having been one of our directors or of) Tj ET Q q 0 0 0 rg BT 401.14 489.75 Td (ficers, except for any expenses or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 477.75 Td (liabilities that have been finally judicially determined to have arisen primarily from acts or omissions that violated the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 465.75 Td (standard set forth in the preceding sentence. Furthermore, our operating agreement provides that OCGH does not ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 453.75 Td (have any liability to us or our other unitholders for any act or omission and is indemnified in connection therewith.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 435.75 Td (Our manager) Tj ET Q q 0 0 0 rg BT 138.36 435.75 Td (, whose only role is to appoint members of our board of directors so long as the Oaktree control ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 423.75 Td (condition is satisfied, does not owe any duties to us or our Class ) Tj ET Q q 0 0 0 rg BT 336.27 423.75 Td (A) Tj ET Q q 0 0 0 rg BT 342.39 423.75 Td ( unitholders. W) Tj ET Q q 0 0 0 rg BT 408.90 423.75 Td (e have agreed to indemnify our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 411.75 Td (manager in the same manner as our directors and of) Tj ET Q q 0 0 0 rg BT 282.72 411.75 Td (ficers described above.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 393.75 Td (Under our operating agreement, each of our board of directors, our manager and us is entitled to take ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 381.75 Td (actions or make decisions in its “sole discretion” or “discretion” or that it deems “necessary or appropriate” or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 369.75 Td (“necessary or advisable.” In those circumstances, each of our board of directors, our manager or us is entitled to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 357.75 Td (consider only such interests and factors as it desires, including our own or our directors’) Tj ET Q q 0 0 0 rg BT 437.04 357.75 Td ( interests, and neither it nor ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 345.75 Td (our board of directors has any duty or obligation \(fiduciary or otherwise\) to give any consideration to any interest of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 333.75 Td (or factors af) Tj ET Q q 0 0 0 rg BT 102.62 333.75 Td (fecting us or any Class ) Tj ET Q q 0 0 0 rg BT 206.00 333.75 Td (A) Tj ET Q q 0 0 0 rg BT 212.12 333.75 Td ( unitholders, and neither we nor our board of directors is subject to any ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 321.75 Td (dif) Tj ET Q q 0 0 0 rg BT 60.38 321.75 Td (ferent standards imposed by our operating agreement, the ) Tj ET Q q 0 0 0 rg BT 320.54 321.75 Td (Act or under any other law) Tj ET Q q 0 0 0 rg BT 436.72 321.75 Td (, rule or regulation or in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 309.75 Td (equity) Tj ET Q q 0 0 0 rg BT 75.94 309.75 Td (, except that we must act in good faith at all times. ) Tj ET Q q 0 0 0 rg BT 302.54 309.75 Td (These modifications of fiduciary duties are expressly ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 297.75 Td (permitted by Delaware law) Tj ET Q q 0 0 0 rg BT 167.28 297.75 Td (. ) Tj ET Q q 0 0 0 rg BT 175.43 297.75 Td (These modifications are detrimental to the Class ) Tj ET Q q 0 0 0 rg BT 391.65 297.75 Td (A) Tj ET Q q 0 0 0 rg BT 397.76 297.75 Td ( unitholders because they restrict the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 285.75 Td (remedies available to Class ) Tj ET Q q 0 0 0 rg BT 174.51 285.75 Td (A) Tj ET Q q 0 0 0 rg BT 180.63 285.75 Td ( unitholders for actions that without those limitations might constitute breaches of duty ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 273.75 Td (\(including fiduciary duty\).) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 255.75 Td (The control of our manager may be transferred to a third party without unitholder consent.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 237.75 Td (Our manager may transfer its manager interest to a third party in a merger or consolidation, in a transfer of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 225.75 Td (all or substantially all of its assets or otherwise without the consent of our unitholders. Furthermore, our senior ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 213.75 Td (executives may sell or transfer all or part of their interests in our manager without the approval of our unitholders. ) Tj ET Q q 0 0 0 rg BT 553.58 213.75 Td (A) Tj ET Q q 0 0 0 rg BT 559.70 213.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 201.75 Td (new manager could have a dif) Tj ET Q q 0 0 0 rg BT 183.24 201.75 Td (ferent investment philosophy or use its control of our board of directors to make ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 189.75 Td (changes to our business that materially af) Tj ET Q q 0 0 0 rg BT 234.37 189.75 Td (fect our funds, our results of operations or our financial condition.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 171.75 Td (Our ability to make distributions to our Class ) Tj ET Q q 0 0 0 rg BT 266.33 171.75 Td (A) Tj ET Q q 0 0 0 rg BT 273.18 171.75 Td ( unitholders may be limited by our holding company ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 159.75 Td (structure, applicable provisions of Delaware law) Tj ET Q q 0 0 0 rg BT 278.59 159.75 Td (, contractual restrictions and the terms of any senior ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 147.75 Td (securities we may issue in the future.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 129.75 Td (W) Tj ET Q q 0 0 0 rg BT 89.26 129.75 Td (e are a limited liability holding company and have no material assets other than the ownership of our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 117.75 Td (interests in the Oaktree Operating Group held through the Intermediate Holding Companies. W) Tj ET Q q 0 0 0 rg BT 471.71 117.75 Td (e have no ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 105.75 Td (independent means of generating revenues. ) Tj ET Q q 0 0 0 rg BT 250.70 105.75 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 301.65 105.75 Td (, to the extent we decide to make distributions to our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 93.75 Td (Class ) Tj ET Q q 0 0 0 rg BT 77.23 93.75 Td (A) Tj ET Q q 0 0 0 rg BT 83.35 93.75 Td ( unitholders, we will cause the Oaktree Operating Group to make distributions to its unitholders, including ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 81.75 Td (the Intermediate Holding Companies, to fund any distributions we may declare on the Class ) Tj ET Q q 0 0 0 rg BT 456.89 81.75 Td (A) Tj ET Q q 0 0 0 rg BT 463.01 81.75 Td ( units. When the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 69.75 Td (Oaktree Operating Group makes such distributions, all holders of Oaktree Operating Group units are entitled to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 57.75 Td (receive pro rata distributions based on their ownership interests in the Oaktree Operating Group.) Tj ET Q endstream endobj 125 0 obj <> endobj 126 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (62) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 741.75 Td (The declaration and payment of any future distributions is at the sole discretion of our board of directors, and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (we may at any time modify our approach with respect to the proper metric for determining cash flow available for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (distribution. Our board of directors will take into account factors it deems relevant, such as, but not limited to, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 705.75 Td (working capital levels, known or anticipated cash needs, business and investment opportunities, general economic ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 693.75 Td (and business conditions, our obligations under our debt instruments or other agreements, our compliance with ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 681.75 Td (applicable laws, the level and character of taxable income that flows through to our Class ) Tj ET Q q 0 0 0 rg BT 445.78 681.75 Td (A) Tj ET Q q 0 0 0 rg BT 451.89 681.75 Td ( and OCGH unitholders, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 669.75 Td (the availability and terms of outside financing, the possible repurchase of our Class ) Tj ET Q q 0 0 0 rg BT 419.10 669.75 Td (A) Tj ET Q q 0 0 0 rg BT 425.21 669.75 Td ( units in open market ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 657.75 Td (transactions, in privately negotiated transactions or otherwise, the possible repurchase of OCGH units, providing for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 645.75 Td (future distributions to our Class ) Tj ET Q q 0 0 0 rg BT 190.07 645.75 Td (A) Tj ET Q q 0 0 0 rg BT 196.19 645.75 Td ( unitholders, and growing our capital base. Under the ) Tj ET Q q 0 0 0 rg BT 435.78 645.75 Td (Act, we may not make a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 633.75 Td (distribution to a member if, after the distribution, all our liabilities, other than liabilities to members on account of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 621.75 Td (their limited liability company interests and liabilities for which the recourse of creditors is limited to specific property ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 609.75 Td (of the limited liability company) Tj ET Q q 0 0 0 rg BT 182.09 609.75 Td (, would exceed the fair value of our assets. If we were to make such an ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 597.75 Td (impermissible distribution, any member who received a distribution and knew at the time of the distribution that the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 585.75 Td (distribution was in violation of the ) Tj ET Q q 0 0 0 rg BT 198.97 585.75 Td (Act would be liable to us for three years for the amount of the distribution. In ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 573.75 Td (addition, the Oaktree Operating Group’) Tj ET Q q 0 0 0 rg BT 222.14 573.75 Td (s cash flow may be insuf) Tj ET Q q 0 0 0 rg BT 330.90 573.75 Td (ficient to enable it to make required minimum tax ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 561.75 Td (distributions to holders of its units, in which case the Oaktree Operating Group may have to borrow funds or sell ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 549.75 Td (assets and thus our liquidity and financial condition could be materially adversely af) Tj ET Q q 0 0 0 rg BT 417.81 549.75 Td (fected. Our operating ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 537.75 Td (agreement contains provisions authorizing the issuance of preferred units in us by our board of directors at any time ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 525.75 Td (without unitholder approval.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 507.75 Td (Furthermore, by paying cash distributions rather than investing that cash in our business, we risk slowing the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 495.75 Td (pace of our growth, or not having a suf) Tj ET Q q 0 0 0 rg BT 220.48 495.75 Td (ficient amount of cash to fund our operations, new investments or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 483.75 Td (unanticipated capital expenditures, should the need arise.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 465.75 Td (W) Tj ET Q q 0 0 0 rg BT 59.26 465.75 Td (e are required to pay the OCGH unitholders for most of the tax benefits we realize as a result of the tax ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 453.75 Td (basis step-up we receive in connection with the sales by the OCGH unitholders of interests held in OCGH.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 435.75 Td (Subject to certain restrictions, including the approval of our board of directors, each OCGH unitholder has ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 423.75 Td (the right to exchange \(or may be required to exchange\) his or her OCGH units for) Tj ET Q q 0 0 0 rg BT 409.07 423.75 Td (, at the option of our board of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 411.75 Td (directors, Class ) Tj ET Q q 0 0 0 rg BT 121.13 411.75 Td (A) Tj ET Q q 0 0 0 rg BT 127.25 411.75 Td ( units, an equivalent amount of cash based on then-prevailing market prices, other consideration ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 399.75 Td (of equal value or any combination of the foregoing. In the event of an exchange, our Intermediate Holding ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 387.75 Td (Companies will deliver) Tj ET Q q 0 0 0 rg BT 148.93 387.75 Td (, at the option of our board of directors, our Class ) Tj ET Q q 0 0 0 rg BT 368.50 387.75 Td (A) Tj ET Q q 0 0 0 rg BT 374.61 387.75 Td ( units on a one-for-one basis, an ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 375.75 Td (equivalent amount of cash based on then-prevailing market prices, other consideration of equal value or any ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 363.75 Td (combination of the foregoing in exchange for the applicable OCGH unitholder) Tj ET Q q 0 0 0 rg BT 391.69 363.75 Td (’) Tj ET Q q 0 0 0 rg BT 393.74 363.75 Td (s OCGH units pursuant to an ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 351.75 Td (exchange agreement. ) Tj ET Q q 0 0 0 rg BT 152.11 351.75 Td (These exchanges are expected to result in increases in certain tax depreciation and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 339.75 Td (amortization deductions, as well as an increase in the tax basis of other assets, of certain of the Oaktree Operating ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 327.75 Td (Group entities that otherwise would not have been available. ) Tj ET Q q 0 0 0 rg BT 322.77 327.75 Td (These increases in tax depreciation and amortization ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 315.75 Td (deductions, as well as the tax basis of other assets, may reduce the amount of tax that Oaktree Holdings, Inc. and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 303.75 Td (Oaktree ) Tj ET Q q 0 0 0 rg BT 87.80 303.75 Td (AIF Holdings, Inc. would otherwise be required to pay in the future, although the Internal Revenue Service ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 291.75 Td (\(“IRS”\) may challenge all or part of the increased deductions and tax basis increase, and a court could sustain such ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 279.75 Td (a challenge.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 261.75 Td (Oaktree Holdings, Inc. and Oaktree ) Tj ET Q q 0 0 0 rg BT 238.97 261.75 Td (AIF Holdings, Inc. have entered into a tax receivable agreement with the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 249.75 Td (OCGH unitholders that provides for the payment by Oaktree Holdings, Inc. and Oaktree ) Tj ET Q q 0 0 0 rg BT 439.09 249.75 Td (AIF Holdings, Inc. to the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 237.75 Td (OCGH unitholders of 85% of the amount of tax savings, if any) Tj ET Q q 0 0 0 rg BT 322.18 237.75 Td (, that they actually realize \(or are deemed to realize in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 225.75 Td (the case of an early termination payment by Oaktree Holdings, Inc. or Oaktree ) Tj ET Q q 0 0 0 rg BT 397.95 225.75 Td (AIF Holdings, Inc. or a change of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 213.75 Td (control, as discussed below\) as a result of these increases in tax deductions and tax basis of entities owned by ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 201.75 Td (Oaktree Holdings, Inc. and Oaktree ) Tj ET Q q 0 0 0 rg BT 208.97 201.75 Td (AIF Holdings, Inc. ) Tj ET Q q 0 0 0 rg BT 293.27 201.75 Td (The payments that Oaktree Holdings, Inc. and Oaktree ) Tj ET Q q 0 0 0 rg BT 537.85 201.75 Td (AIF ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 189.75 Td (Holdings, Inc. may make to the OCGH unitholders could be material in amount.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 171.75 Td (Although we are not aware of any issue that would cause the IRS to challenge a tax basis increase, the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 159.75 Td (OCGH unitholders will not reimburse Oaktree Holdings, Inc. or Oaktree ) Tj ET Q q 0 0 0 rg BT 366.24 159.75 Td (AIF Holdings, Inc. for any payments that ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 147.75 Td (have been previously made under the tax receivable agreement. ) Tj ET Q q 0 0 0 rg BT 340.18 147.75 Td (As a result, in certain circumstances, payments ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 135.75 Td (could be made to the OCGH unitholders under the tax receivable agreement in excess of Oaktree Holdings, Inc.’) Tj ET Q q 0 0 0 rg BT 547.31 135.75 Td (s ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 123.75 Td (and Oaktree ) Tj ET Q q 0 0 0 rg BT 107.26 123.75 Td (AIF Holdings, Inc.’) Tj ET Q q 0 0 0 rg BT 188.22 123.75 Td (s cash tax savings. ) Tj ET Q q 0 0 0 rg BT 278.08 123.75 Td (Their ability to achieve benefits from any tax basis increase, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 111.75 Td (and the payments to be made under the tax receivable agreement, will depend upon a number of factors, including ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 99.75 Td (the timing and amount of our future income.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 81.75 Td (In addition, the tax receivable agreement provides that, upon a merger) Tj ET Q q 0 0 0 rg BT 390.75 81.75 Td (, asset sale or other form of business ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 69.75 Td (combination or certain other changes of control, Oaktree Holdings, Inc.’) Tj ET Q q 0 0 0 rg BT 364.99 69.75 Td (s and Oaktree ) Tj ET Q q 0 0 0 rg BT 430.02 69.75 Td (AIF Holdings, Inc.’) Tj ET Q q 0 0 0 rg BT 510.99 69.75 Td (s \(or their ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 57.75 Td (successors’\) obligations with respect to exchanged units \(whether exchanged before or after the change of control\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 45.75 Td (would be based on certain assumptions, including that they would have suf) Tj ET Q q 0 0 0 rg BT 381.14 45.75 Td (ficient taxable income to fully utilize the ) Tj ET Q endstream endobj 127 0 obj <> endobj 128 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (63) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (deductions arising from the increased tax deductions and tax basis and other benefits related to entering into the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (tax receivable agreement.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 711.75 Td (Risks Relating to United States T) Tj ET Q q 0 0 0 rg BT 205.95 711.75 Td (axation) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 693.75 Td (Our structure involves complex provisions of U.S. federal income tax law for which no clear precedent or ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 681.75 Td (authority may be available and is subject to potential legislative, judicial or administrative change and ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 669.75 Td (dif) Tj ET Q q 0 0 0 rg BT 62.04 669.75 Td (fering interpretations, possibly on a retroactive basis.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 651.75 Td (The U.S. federal income tax treatment of Class ) Tj ET Q q 0 0 0 rg BT 290.09 651.75 Td (A) Tj ET Q q 0 0 0 rg BT 296.21 651.75 Td ( unitholders depends in some instances on determinations ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 639.75 Td (of fact and interpretations of complex provisions of U.S. federal income tax law for which no clear precedent or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 627.75 Td (authority may be available. Our Class ) Tj ET Q q 0 0 0 rg BT 221.19 627.75 Td (A) Tj ET Q q 0 0 0 rg BT 227.31 627.75 Td ( unitholders should be aware that the U.S. federal income tax rules are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 615.75 Td (constantly under review by persons involved in the legislative process, the IRS and the United States ) Tj ET Q q 0 0 0 rg BT 498.40 615.75 Td (T) Tj ET Q q 0 0 0 rg BT 504.14 615.75 Td (reasury ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 603.75 Td (\(“UST”\), frequently resulting in revised interpretations of established concepts, statutory changes, revisions to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 591.75 Td (regulations and other modifications and interpretations. ) Tj ET Q q 0 0 0 rg BT 298.86 591.75 Td (The IRS pays close attention to the proper application of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 579.75 Td (tax laws to partnerships. ) Tj ET Q q 0 0 0 rg BT 163.20 579.75 Td (The present U.S. federal income tax treatment of an investment in our Class ) Tj ET Q q 0 0 0 rg BT 502.26 579.75 Td (A) Tj ET Q q 0 0 0 rg BT 508.37 579.75 Td ( units may ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 567.75 Td (be modified by administrative, legislative or judicial interpretation at any time, and any such action may af) Tj ET Q q 0 0 0 rg BT 513.95 567.75 Td (fect ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 555.75 Td (investments and commitments previously made. Changes to the U.S. federal income tax laws and interpretations ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 543.75 Td (thereof could make it more dif) Tj ET Q q 0 0 0 rg BT 181.55 543.75 Td (ficult or impossible to meet the qualifying income exception for us to be treated as a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 531.75 Td (partnership for U.S. federal income tax purposes that is not taxable as a corporation, cause us to change our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 519.75 Td (investments and commitments, af) Tj ET Q q 0 0 0 rg BT 198.76 519.75 Td (fect the tax considerations of an investment in us,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.77 519.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 420.27 519.75 Td (change the character or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 507.75 Td (treatment of portions of our income \(including, for instance, the treatment of carried interest as ordinary income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 495.75 Td (rather than capital gain\) and adversely af) Tj ET Q q 0 0 0 rg BT 231.04 495.75 Td (fect an investment in our Class ) Tj ET Q q 0 0 0 rg BT 370.00 495.75 Td (A) Tj ET Q q 0 0 0 rg BT 376.11 495.75 Td ( units. For example, the U.S. Congress ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 483.75 Td (has considered, and President ) Tj ET Q q 0 0 0 rg BT 187.69 483.75 Td (T) Tj ET Q q 0 0 0 rg BT 193.42 483.75 Td (rump has expressed support for) Tj ET Q q 0 0 0 rg BT 334.05 483.75 Td (, various legislative proposals to treat all or part of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 471.75 Td (the capital gain and dividend income that is recognized by an investment partnership and allocable to a partner ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 459.75 Td (af) Tj ET Q q 0 0 0 rg BT 58.16 459.75 Td (filiated with the sponsor of the partnership \(i.e., a portion of the incentive income\) as ordinary income to such ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 447.75 Td (partner for U.S. federal income tax purposes. Please see “—The U.S. Congress has considered legislation that ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 435.75 Td (would have taxed certain income and gains at increased rates and may have precluded us from qualifying as a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 423.75 Td (partnership for U.S. federal income tax purposes. If any similar legislation were to be enacted and apply to us, the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 411.75 Td (after-tax income and gain related to our business, as well as the market price of our Class ) Tj ET Q q 0 0 0 rg BT 449.09 411.75 Td (A) Tj ET Q q 0 0 0 rg BT 455.21 411.75 Td ( units, could be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 399.75 Td (reduced.”) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 381.75 Td (Our operating agreement permits our board of directors to modify our operating agreement from time to time, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 369.75 Td (without the consent of our Class ) Tj ET Q q 0 0 0 rg BT 194.53 369.75 Td (A) Tj ET Q q 0 0 0 rg BT 200.64 369.75 Td ( unitholders, to address certain changes in U.S. federal income tax regulations, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 357.75 Td (legislation or interpretation. In some circumstances, the revisions could have a material adverse impact on some or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 345.75 Td (all Class ) Tj ET Q q 0 0 0 rg BT 90.01 345.75 Td (A) Tj ET Q q 0 0 0 rg BT 96.13 345.75 Td ( unitholders. Moreover) Tj ET Q q 0 0 0 rg BT 197.85 345.75 Td (, we apply certain assumptions and conventions in an attempt to comply with ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 333.75 Td (applicable rules and to report income, gain, deduction, loss and credit to Class ) Tj ET Q q 0 0 0 rg BT 398.54 333.75 Td (A) Tj ET Q q 0 0 0 rg BT 404.65 333.75 Td ( unitholders in a manner that ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 321.75 Td (reflects such Class ) Tj ET Q q 0 0 0 rg BT 136.14 321.75 Td (A) Tj ET Q q 0 0 0 rg BT 142.26 321.75 Td ( unitholders’) Tj ET Q q 0 0 0 rg BT 195.81 321.75 Td ( beneficial ownership of partnership items, taking into account variation in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 309.75 Td (ownership interests during each taxable year because of trading activity) Tj ET Q q 0 0 0 rg BT 366.10 309.75 Td (. However) Tj ET Q q 0 0 0 rg BT 413.34 309.75 Td (, those assumptions and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 297.75 Td (conventions may not be in compliance with all aspects of applicable tax requirements. It is possible that the IRS will ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 285.75 Td (assert successfully that the conventions and assumptions used by us do not satisfy the technical requirements of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 273.75 Td (the Code or UST) Tj ET Q q 0 0 0 rg BT 124.85 273.75 Td ( regulations and could require that items of income, gain, deductions, loss or credit, including ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 261.75 Td (interest deductions, be adjusted, reallocated or disallowed in a manner that adversely af) Tj ET Q q 0 0 0 rg BT 438.38 261.75 Td (fects Class ) Tj ET Q q 0 0 0 rg BT 489.51 261.75 Td (A) Tj ET Q q 0 0 0 rg BT 495.63 261.75 Td ( unitholders.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 243.75 Td (If we were treated as a corporation for U.S. federal income tax or state tax purposes, then our distributions ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 231.75 Td (to our Class ) Tj ET Q q 0 0 0 rg BT 110.20 231.75 Td (A) Tj ET Q q 0 0 0 rg BT 117.05 231.75 Td ( unitholders would be substantially reduced and the value of our Class ) Tj ET Q q 0 0 0 rg BT 455.62 231.75 Td (A) Tj ET Q q 0 0 0 rg BT 462.47 231.75 Td ( units would be ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 219.75 Td (adversely af) Tj ET Q q 0 0 0 rg BT 107.64 219.75 Td (fected.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 201.75 Td (The value of our Class ) Tj ET Q q 0 0 0 rg BT 182.28 201.75 Td (A) Tj ET Q q 0 0 0 rg BT 188.39 201.75 Td ( unitholders’) Tj ET Q q 0 0 0 rg BT 241.94 201.75 Td ( investment in us depends to a significant extent on our being treated as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 189.75 Td (a partnership for U.S. federal income tax purposes, which requires that 90% or more of our gross income for every ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 177.75 Td (taxable year consist of qualifying income, as defined in Section 7704 of the Code, and that we not be required to be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 165.75 Td (registered under the Investment Company ) Tj ET Q q 0 0 0 rg BT 238.99 165.75 Td (Act. Qualifying income generally includes dividends, interest, capital ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 153.75 Td (gains from the sale or other disposition of stocks and securities and certain other forms of investment income. W) Tj ET Q q 0 0 0 rg BT 548.94 153.75 Td (e ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 141.75 Td (may not meet these requirements or current law may change so as to cause us, in either event, to be treated as a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 129.75 Td (corporation for U.S. federal income tax purposes or otherwise subject to U.S. federal income tax. Moreover) Tj ET Q q 0 0 0 rg BT 524.67 129.75 Td (, the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 117.75 Td (anticipated after-tax benefit of an investment in our Class ) Tj ET Q q 0 0 0 rg BT 304.58 117.75 Td (A) Tj ET Q q 0 0 0 rg BT 310.70 117.75 Td ( units depends largely on our being treated as a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 105.75 Td (partnership for U.S. federal income tax purposes. W) Tj ET Q q 0 0 0 rg BT 282.70 105.75 Td (e have not requested, and do not plan to request, a ruling from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 93.75 Td (the IRS on such matters.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 75.75 Td (If we were treated as a corporation for U.S. federal income tax purposes, we would pay U.S. federal income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 63.75 Td (tax on our taxable income at the corporate tax rate. Distributions to Class ) Tj ET Q q 0 0 0 rg BT 377.94 63.75 Td (A) Tj ET Q q 0 0 0 rg BT 384.06 63.75 Td ( unitholders would generally be taxed ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 51.75 Td (again as corporate distributions, and no income, gains, losses, deductions or credits would flow through to them. ) Tj ET Q endstream endobj 129 0 obj <> endobj 130 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (64) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Because a tax would be imposed upon us as a corporation, our distributions to Class ) Tj ET Q q 0 0 0 rg BT 426.88 741.75 Td (A) Tj ET Q q 0 0 0 rg BT 433.00 741.75 Td ( unitholders would be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (substantially reduced, likely causing a substantial reduction in the value of our Class ) Tj ET Q q 0 0 0 rg BT 424.10 729.75 Td (A) Tj ET Q q 0 0 0 rg BT 430.22 729.75 Td ( units.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 711.75 Td (Our Class ) Tj ET Q q 0 0 0 rg BT 99.65 711.75 Td (A) Tj ET Q q 0 0 0 rg BT 106.50 711.75 Td ( unitholders may be subject to U.S. federal income tax on their share of our taxable income, ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 699.75 Td (regardless of whether they receive any cash distributions from us.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 681.75 Td (As long as 90% of our gross income for each taxable year constitutes qualifying income as defined in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 669.75 Td (Section 7704 of the Code and we are not required to register as an investment company under the Investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 657.75 Td (Company ) Tj ET Q q 0 0 0 rg BT 95.02 657.75 Td (Act on a continuing basis, and assuming there is no change in law \(please see “—The U.S. Congress has ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 645.75 Td (considered legislation that would have taxed certain income and gains at increased rates and may have precluded ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 633.75 Td (us from qualifying as a partnership for U.S. federal income tax purposes. If any similar legislation were to be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 621.75 Td (enacted and apply to us, the after-tax income and gain related to our business, as well as the market price of our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 609.75 Td (Class ) Tj ET Q q 0 0 0 rg BT 77.23 609.75 Td (A) Tj ET Q q 0 0 0 rg BT 83.35 609.75 Td ( units, could be reduced.”\), we will be treated, for U.S. federal income tax purposes, as a partnership and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 597.75 Td (not as an association or a publicly traded partnership taxable as a corporation. ) Tj ET Q q 0 0 0 rg BT 401.32 597.75 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 452.27 597.75 Td (, our Class ) Tj ET Q q 0 0 0 rg BT 502.29 597.75 Td (A) Tj ET Q q 0 0 0 rg BT 508.41 597.75 Td ( unitholders ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 585.75 Td (will be required to take into account their allocable share of our items of income, gain, loss and deduction. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 573.75 Td (Distributions to our Class ) Tj ET Q q 0 0 0 rg BT 163.38 573.75 Td (A) Tj ET Q q 0 0 0 rg BT 169.50 573.75 Td ( unitholders will generally be taxable for U.S. federal income tax purposes only to the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 561.75 Td (extent the amount distributed exceeds their tax basis in the Class ) Tj ET Q q 0 0 0 rg BT 340.72 561.75 Td (A) Tj ET Q q 0 0 0 rg BT 346.84 561.75 Td ( unit. ) Tj ET Q q 0 0 0 rg BT 371.11 561.75 Td (That treatment contrasts with the treatment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 549.75 Td (of a shareholder in a corporation. For example, a shareholder in a corporation who receives a distribution of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 537.75 Td (earnings from the corporation will generally report the distribution as dividend income for U.S. federal income tax ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 525.75 Td (purposes. In contrast, a holder of our Class ) Tj ET Q q 0 0 0 rg BT 243.44 525.75 Td (A) Tj ET Q q 0 0 0 rg BT 249.56 525.75 Td ( units who receives a distribution of earnings from us will not report the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 513.75 Td (distribution as dividend income \(and will treat the distribution as taxable only to the extent the amount distributed ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 501.75 Td (exceeds the Class ) Tj ET Q q 0 0 0 rg BT 133.94 501.75 Td (A) Tj ET Q q 0 0 0 rg BT 140.05 501.75 Td ( unitholder) Tj ET Q q 0 0 0 rg BT 187.12 501.75 Td (’) Tj ET Q q 0 0 0 rg BT 189.17 501.75 Td (s tax basis in the Class ) Tj ET Q q 0 0 0 rg BT 293.66 501.75 Td (A) Tj ET Q q 0 0 0 rg BT 299.78 501.75 Td ( units\), but will instead report the holder) Tj ET Q q 0 0 0 rg BT 474.68 501.75 Td (’) Tj ET Q q 0 0 0 rg BT 476.72 501.75 Td (s allocable share ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 489.75 Td (of items of our income for U.S. federal income tax purposes. ) Tj ET Q q 0 0 0 rg BT 318.46 489.75 Td (As a result, our Class ) Tj ET Q q 0 0 0 rg BT 415.72 489.75 Td (A) Tj ET Q q 0 0 0 rg BT 421.84 489.75 Td ( unitholders may be subject to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 477.75 Td (U.S. federal, state, local and possibly) Tj ET Q q 0 0 0 rg BT 213.79 477.75 Td (, in some cases, foreign income taxation on their allocable share of our items ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 465.75 Td (of income, gain, loss, deduction and credit \(including our allocable share of those items of any entity in which we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 453.75 Td (invest that is treated as a partnership or is otherwise subject to tax on a flow-through basis\) for each of our taxable ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 441.75 Td (years ending with or within their taxable year) Tj ET Q q 0 0 0 rg BT 246.77 441.75 Td (, regardless of whether or not our Class ) Tj ET Q q 0 0 0 rg BT 424.08 441.75 Td (A) Tj ET Q q 0 0 0 rg BT 430.20 441.75 Td ( unitholders receive cash ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 429.75 Td (distributions from us.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 411.75 Td (Our Class ) Tj ET Q q 0 0 0 rg BT 126.68 411.75 Td (A) Tj ET Q q 0 0 0 rg BT 132.80 411.75 Td ( unitholders may not receive cash distributions equal to their allocable share of our net taxable ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 399.75 Td (income or even the tax liability that results from that income. In addition, certain of our holdings, including holdings, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 387.75 Td (if any) Tj ET Q q 0 0 0 rg BT 73.16 387.75 Td (, in a controlled foreign corporation \(“CFC”\) or a passive foreign investment company \(“PFIC”\), may produce ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 375.75 Td (taxable income prior to the receipt of cash relating to such income, and Class ) Tj ET Q q 0 0 0 rg BT 393.52 375.75 Td (A) Tj ET Q q 0 0 0 rg BT 399.63 375.75 Td ( unitholders may be required to take ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 363.75 Td (that income into account in determining their taxable income. In the event of an inadvertent termination of our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 351.75 Td (partnership status, for which limited relief may be available, each holder of our Class ) Tj ET Q q 0 0 0 rg BT 425.19 351.75 Td (A) Tj ET Q q 0 0 0 rg BT 431.30 351.75 Td ( units may be obligated to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 339.75 Td (make such adjustments as the IRS may require to maintain our status as a partnership. ) Tj ET Q q 0 0 0 rg BT 441.12 339.75 Td (These adjustments may ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 327.75 Td (require persons holding our Class ) Tj ET Q q 0 0 0 rg BT 201.75 327.75 Td (A) Tj ET Q q 0 0 0 rg BT 207.87 327.75 Td ( units to recognize additional amounts in income during the years in which they ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 315.75 Td (hold such units.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 297.75 Td (A) Tj ET Q q 0 0 0 rg BT 56.85 297.75 Td ( portion of our interest in the Oaktree Operating Group is held through Oaktree Holdings, Inc. and Oaktree ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 285.75 Td (AIF Holdings, Inc., which are treated as corporations for U.S. federal income tax purposes and may be ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 273.75 Td (liable for significant taxes that could potentially adversely af) Tj ET Q q 0 0 0 rg BT 336.56 273.75 Td (fect the value of our Class ) Tj ET Q q 0 0 0 rg BT 463.45 273.75 Td (A) Tj ET Q q 0 0 0 rg BT 470.30 273.75 Td ( units.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 255.75 Td (In light of the publicly traded partnership rules under U.S. federal income tax law and other requirements, we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 243.75 Td (hold a portion of our interest in the Oaktree Operating Group through Oaktree Holdings, Inc. and Oaktree ) Tj ET Q q 0 0 0 rg BT 515.83 243.75 Td (AIF ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 231.75 Td (Holdings, Inc., which are treated as corporations for U.S. federal income tax purposes. Oaktree Holdings, Inc. and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 219.75 Td (Oaktree ) Tj ET Q q 0 0 0 rg BT 87.80 219.75 Td (AIF Holdings, Inc. could be liable for significant U.S. federal income taxes and applicable state, local and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 207.75 Td (other taxes \(including taxes imposed as a result of audits by taxing authorities of such entities’) Tj ET Q q 0 0 0 rg BT 464.85 207.75 Td ( tax returns\) that ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 195.75 Td (would not otherwise be incurred, which could adversely af) Tj ET Q q 0 0 0 rg BT 305.51 195.75 Td (fect the value of our Class ) Tj ET Q q 0 0 0 rg BT 423.35 195.75 Td (A) Tj ET Q q 0 0 0 rg BT 429.47 195.75 Td ( units. ) Tj ET Q q 0 0 0 rg BT 461.53 195.75 Td (Those additional taxes ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 183.75 Td (do not apply to the OCGH unitholders to the extent they own equity interests in the Oaktree Operating Group ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 171.75 Td (entities through OCGH.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 153.75 Td (The U.S. Congress has considered legislation that would have taxed certain income and gains at increased ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 141.75 Td (rates and may have precluded us from qualifying as a partnership for U.S. federal income tax purposes. If ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 129.75 Td (any similar legislation were to be enacted and apply to us, the after-tax income and gain related to our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 117.75 Td (business, as well as the market price of our Class ) Tj ET Q q 0 0 0 rg BT 288.61 117.75 Td (A) Tj ET Q q 0 0 0 rg BT 295.46 117.75 Td ( units, could be reduced.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 99.75 Td (Over the past several years, a number of legislative and administrative proposals have been introduced and, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 87.75 Td (in certain cases, have been passed by the U.S. House of Representatives that would have, in general, treated ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 75.75 Td (income and gains, including gain on sale, attributable to an investment services partnership interest \(“ISPI”\) as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 63.75 Td (income subject to a new blended tax rate that is higher than under current law) Tj ET Q q 0 0 0 rg BT 393.54 63.75 Td (, except to the extent such ISPI would ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 51.75 Td (have been considered under the legislation to be a qualified capital interest. President ) Tj ET Q q 0 0 0 rg BT 434.52 51.75 Td (T) Tj ET Q q 0 0 0 rg BT 440.25 51.75 Td (rump has expressed ) Tj ET Q endstream endobj 131 0 obj <> endobj 132 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (65) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (support for such legislation. ) Tj ET Q q 0 0 0 rg BT 176.74 741.75 Td (A) Tj ET Q q 0 0 0 rg BT 182.86 741.75 Td ( Class ) Tj ET Q q 0 0 0 rg BT 212.87 741.75 Td (A) Tj ET Q q 0 0 0 rg BT 218.98 741.75 Td ( unitholder) Tj ET Q q 0 0 0 rg BT 266.05 741.75 Td (’) Tj ET Q q 0 0 0 rg BT 268.10 741.75 Td (s interest in us, our interest in Oaktree Holdings, LLC and the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (interests that Oaktree Holdings, LLC holds in entities that are entitled to receive incentive income may have been ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (classified as ISPIs for purposes of this legislation. It is unclear when or whether the U.S. Congress will pass such ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 705.75 Td (legislation or what provisions will be included in any final legislation, if enacted.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 687.75 Td (The most recent legislative proposals provided that, for taxable years beginning ten years after the date of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 675.75 Td (enactment, income derived with respect to an ISPI that is not a qualified capital interest and that is subject to the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 663.75 Td (rules discussed above would not meet the qualifying income requirements under the publicly traded partnership ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 651.75 Td (rules. ) Tj ET Q q 0 0 0 rg BT 79.83 651.75 Td (Therefore, if similar legislation is enacted, following such ten-year period, we would be precluded from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 639.75 Td (qualifying as a partnership for U.S. federal income tax purposes or be required to hold all such ISPIs through ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 627.75 Td (corporations, possibly U.S. corporations. If we were taxed as a U.S. corporation or required to hold all ISPIs ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 615.75 Td (through U.S. corporations, our ef) Tj ET Q q 0 0 0 rg BT 194.90 615.75 Td (fective income tax rate would increase significantly) Tj ET Q q 0 0 0 rg BT 418.15 615.75 Td (. ) Tj ET Q q 0 0 0 rg BT 426.30 615.75 Td (The federal statutory rate for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 603.75 Td (corporations is currently 35%. In addition, we could be subject to increased state and local taxes. Furthermore, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 591.75 Td (you could be subject to tax on our conversion into a corporation or any restructuring required in order for us to hold ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 579.75 Td (our ISPIs through a corporation.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 561.75 Td (Enactment of legislation that would treat gain from partnership interests held in connection with the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 549.75 Td (performance of investment management services as taxed at ordinary rates could cause our investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 537.75 Td (professionals to incur a material increase in their tax liability with respect to their interests in OCGH and carried ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 525.75 Td (interest in our investment funds. ) Tj ET Q q 0 0 0 rg BT 197.11 525.75 Td (This might make it more dif) Tj ET Q q 0 0 0 rg BT 316.97 525.75 Td (ficult for us to incentivize, attract and retain these ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 513.75 Td (professionals.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 495.75 Td (States and other jurisdictions have also considered legislation to increase taxes with respect to incentive ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 483.75 Td (income. For example, New ) Tj ET Q q 0 0 0 rg BT 174.31 483.75 Td (Y) Tj ET Q q 0 0 0 rg BT 180.06 483.75 Td (ork considered legislation under which Class ) Tj ET Q q 0 0 0 rg BT 379.61 483.75 Td (A) Tj ET Q q 0 0 0 rg BT 385.73 483.75 Td ( unitholders could be subject to New ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 471.75 Td (Y) Tj ET Q q 0 0 0 rg BT 55.75 471.75 Td (ork state income tax on income in respect of our Class ) Tj ET Q q 0 0 0 rg BT 298.64 471.75 Td (A) Tj ET Q q 0 0 0 rg BT 304.76 471.75 Td ( units as a result of certain activities of our af) Tj ET Q q 0 0 0 rg BT 501.89 471.75 Td (filiates in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 459.75 Td (New ) Tj ET Q q 0 0 0 rg BT 72.60 459.75 Td (Y) Tj ET Q q 0 0 0 rg BT 78.35 459.75 Td (ork, although it is unclear when or whether similar legislation will be enacted.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 441.75 Td (Possible U.S. federal income tax reform could adversely af) Tj ET Q q 0 0 0 rg BT 328.26 441.75 Td (fect us.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 423.75 Td (President ) Tj ET Q q 0 0 0 rg BT 124.84 423.75 Td (T) Tj ET Q q 0 0 0 rg BT 130.58 423.75 Td (rump and Republican members of the U.S. House of Representatives have publicly stated that ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 411.75 Td (one of their top legislative priorities is significant reform of the Code, including significant changes to taxation of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 399.75 Td (business entities. Proposals by members of Congress have included, among other things, changes to federal tax ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 387.75 Td (rates \(including reducing the corporate rate and rates for active business income earned through partnerships\), ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 375.75 Td (limiting interest deductibility) Tj ET Q q 0 0 0 rg BT 170.98 375.75 Td (, allowing for the expensing of capital expenditures, use of certain border adjustments, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 363.75 Td (the migration from a “worldwide” system of taxation to a territorial system, extending the carryforward of net ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 351.75 Td (operating losses and eliminating the deductibility of state and local taxes. While President ) Tj ET Q q 0 0 0 rg BT 450.60 351.75 Td (T) Tj ET Q q 0 0 0 rg BT 456.34 351.75 Td (rump has expressed ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 339.75 Td (his support for a number of these proposals, he has also set forth ideas for tax reform that dif) Tj ET Q q 0 0 0 rg BT 460.03 339.75 Td (fer in key ways. ) Tj ET Q q 0 0 0 rg BT 534.32 339.75 Td (There ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 327.75 Td (is a substantial lack of clarity regarding both the timing and the details of any such tax reform. ) Tj ET Q q 0 0 0 rg BT 467.81 327.75 Td (The impact of any ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 315.75 Td (potential tax reform on our business is uncertain and could be adverse. Prospective investors should consult their ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 303.75 Td (own tax advisors regarding potential changes in tax laws.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 285.75 Td (Additional proposed changes in the U.S. and foreign taxation of businesses could adversely af) Tj ET Q q 0 0 0 rg BT 499.90 285.75 Td (fect us.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 267.75 Td (The U.S. Congress, the Organization for Economic Co-operation and Development \(“OECD”\) and other ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 255.75 Td (government and non-government agencies in jurisdictions in which we and our af) Tj ET Q q 0 0 0 rg BT 408.36 255.75 Td (filiates invest or do business have ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 243.75 Td (maintained a focus on issues related to the taxation of multinational companies. ) Tj ET Q q 0 0 0 rg BT 404.47 243.75 Td (The OECD, which represents a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 231.75 Td (coalition of member countries, is contemplating changes to numerous long-standing tax principles through its base ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 219.75 Td (erosion and profit shifting \(“BEPS”\) project, which is focused on a number of issues, including the shifting of profits ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 207.75 Td (between af) Tj ET Q q 0 0 0 rg BT 98.75 207.75 Td (filiated entities in dif) Tj ET Q q 0 0 0 rg BT 185.83 207.75 Td (ferent tax jurisdictions. Several of these proposals for reform, if enacted by the U.S. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 195.75 Td (or by other countries in which we or our af) Tj ET Q q 0 0 0 rg BT 235.46 195.75 Td (filiates invest or do business, could adversely af) Tj ET Q q 0 0 0 rg BT 446.50 195.75 Td (fect our investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 183.75 Td (returns. It is unclear what any actual legislation would provide, when it would be proposed or what its prospects for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 171.75 Td (enactment would be.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 153.75 Td (Complying with certain tax-related requirements may cause us to invest through foreign or domestic ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 141.75 Td (corporations subject to corporate income tax or enter into acquisitions, borrowings, financings or ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 129.75 Td (arrangements we may not have otherwise entered into.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 111.75 Td (In order for us to be treated as a partnership for U.S. federal income tax purposes and not as an association ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 99.75 Td (or publicly traded partnership taxable as a corporation, we must meet the qualifying income exception discussed ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 87.75 Td (above on a continuing basis and we must not be required to register as an investment company under the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 75.75 Td (Investment Company ) Tj ET Q q 0 0 0 rg BT 146.71 75.75 Td (Act. In order to ef) Tj ET Q q 0 0 0 rg BT 226.02 75.75 Td (fect such treatment, we \(or our subsidiaries\) may be required to invest ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 63.75 Td (through foreign or domestic corporations subject to corporate income tax, forgo attractive investment opportunities ) Tj ET Q endstream endobj 133 0 obj <> endobj 134 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (66) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (or enter into acquisitions, borrowings, financings or other transactions we may not have otherwise entered into. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (This may adversely af) Tj ET Q q 0 0 0 rg BT 147.08 729.75 Td (fect our ability to operate solely to maximize our cash flow) Tj ET Q q 0 0 0 rg BT 402.19 729.75 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 711.75 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 52.78 711.75 Td (Changes in U.S. and foreign tax law could adversely af) Tj ET Q q 0 0 0 rg BT 312.11 711.75 Td (fect our ability to raise funds from certain investors.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 693.75 Td (Under the U.S. Foreign ) Tj ET Q q 0 0 0 rg BT 185.05 693.75 Td (Account ) Tj ET Q q 0 0 0 rg BT 223.78 693.75 Td (T) Tj ET Q q 0 0 0 rg BT 228.78 693.75 Td (ax Compliance ) Tj ET Q q 0 0 0 rg BT 297.15 693.75 Td (Act \(“F) Tj ET Q q 0 0 0 rg BT 326.60 693.75 Td (A) Tj ET Q q 0 0 0 rg BT 332.52 693.75 Td (TCA”\), U.S. withholding agents and all entities in a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 681.75 Td (broadly defined class of foreign financial institutions \(“FFIs”\), are required to comply with a complicated and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 669.75 Td (expansive reporting regime or be subject to a 30% United States withholding tax on certain U.S. payments \(and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 657.75 Td (beginning in 2019, a 30% withholding tax on gross proceeds from the sale of U.S. stocks and securities\) and non ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 645.75 Td (U.S. entities which are not FFIs are required to either certify they have no substantial U.S. beneficial ownership or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 633.75 Td (to report certain information with respect to their substantial U.S. beneficial ownership or be subject to a 30% U.S. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 621.75 Td (withholding tax on certain U.S. payments \(and beginning in 2019, a 30% withholding tax on gross proceeds from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 609.75 Td (the sale of U.S. stocks and securities\). ) Tj ET Q q 0 0 0 rg BT 225.45 609.75 Td (The reporting obligations imposed under F) Tj ET Q q 0 0 0 rg BT 412.78 609.75 Td (A) Tj ET Q q 0 0 0 rg BT 418.71 609.75 Td (TCA) Tj ET Q q 0 0 0 rg BT 438.16 609.75 Td ( require these foreign ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 597.75 Td (financial institutions to enter into agreements with the IRS and other jurisdictions to obtain and disclose information ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 585.75 Td (about certain investors to the IRS. ) Tj ET Q q 0 0 0 rg BT 205.64 585.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 256.04 585.75 Td (, certain non-U.S. entities that are not foreign financial institutions are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 573.75 Td (required to provide certain certifications or other information regarding their U.S. beneficial ownership or be subject ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 561.75 Td (to certain U.S. withholding taxes. In addition, the administrative and economic costs of compliance with F) Tj ET Q q 0 0 0 rg BT 515.79 561.75 Td (A) Tj ET Q q 0 0 0 rg BT 521.72 561.75 Td (TCA) Tj ET Q q 0 0 0 rg BT 541.17 561.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 549.75 Td (may discourage some foreign investors from investing in U.S. funds, which could adversely af) Tj ET Q q 0 0 0 rg BT 463.34 549.75 Td (fect our ability to raise ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 537.75 Td (funds from these investors. Other countries, such as the United Kingdom, have implemented regimes similar to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 525.75 Td (that of F) Tj ET Q q 0 0 0 rg BT 86.13 525.75 Td (A) Tj ET Q q 0 0 0 rg BT 92.06 525.75 Td (TCA) Tj ET Q q 0 0 0 rg BT 111.51 525.75 Td ( and more than 80 jurisdictions have agreed to implement the Common Reporting Standard issued by ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 513.75 Td (the OECD \(“CRS”\), which requires signatories to exchange information regarding residents’) Tj ET Q q 0 0 0 rg BT 453.70 513.75 Td ( assets and income. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 501.75 Td (Compliance with such regimes could result in increased administrative and compliance costs and could subject our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 489.75 Td (investment entities to increased non-U.S. withholding taxes.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 471.75 Td (T) Tj ET Q q 0 0 0 rg BT 55.74 471.75 Td (axable gain or loss on disposition of our Class ) Tj ET Q q 0 0 0 rg BT 279.85 471.75 Td (A) Tj ET Q q 0 0 0 rg BT 286.70 471.75 Td ( units could be more or less than expected.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 453.75 Td (If a unitholder sells its Class ) Tj ET Q q 0 0 0 rg BT 206.17 453.75 Td (A) Tj ET Q q 0 0 0 rg BT 212.29 453.75 Td ( units, it will recognize a gain or loss equal to the dif) Tj ET Q q 0 0 0 rg BT 440.00 453.75 Td (ference between the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 441.75 Td (amount realized and the adjusted tax basis in those Class ) Tj ET Q q 0 0 0 rg BT 307.93 441.75 Td (A) Tj ET Q q 0 0 0 rg BT 314.05 441.75 Td ( units. Prior distributions to such unitholder in excess of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 429.75 Td (the total net taxable income allocated to it, which decreased the tax basis in its Class ) Tj ET Q q 0 0 0 rg BT 426.88 429.75 Td (A) Tj ET Q q 0 0 0 rg BT 432.99 429.75 Td ( units, will in ef) Tj ET Q q 0 0 0 rg BT 497.84 429.75 Td (fect become ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 417.75 Td (taxable income to such unitholder if the Class ) Tj ET Q q 0 0 0 rg BT 253.45 417.75 Td (A) Tj ET Q q 0 0 0 rg BT 259.57 417.75 Td ( units are sold at a price greater than its tax basis in those Class ) Tj ET Q q 0 0 0 rg BT 545.27 417.75 Td (A) Tj ET Q q 0 0 0 rg BT 551.39 417.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 405.75 Td (units, even if the price is less than the original cost. ) Tj ET Q q 0 0 0 rg BT 280.68 405.75 Td (A) Tj ET Q q 0 0 0 rg BT 286.80 405.75 Td ( substantial portion of the amount realized, whether or not ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 393.75 Td (representing gain, may be ordinary income to such selling unitholder) Tj ET Q q 0 0 0 rg BT 351.84 393.75 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 375.75 Td (W) Tj ET Q q 0 0 0 rg BT 59.26 375.75 Td (e may hold or acquire certain investments through entities classified as a PFIC or CFC for U.S. federal ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 363.75 Td (income tax purposes.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 345.75 Td (Certain of our funds’) Tj ET Q q 0 0 0 rg BT 169.68 345.75 Td ( investments may be in foreign corporations or may be acquired through a foreign ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 333.75 Td (subsidiary that would be classified as a corporation for U.S. federal income tax purposes. Such an entity may be a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 321.75 Td (PFIC or a CFC for U.S. federal income tax purposes. Class ) Tj ET Q q 0 0 0 rg BT 316.76 321.75 Td (A) Tj ET Q q 0 0 0 rg BT 322.88 321.75 Td ( unitholders indirectly owning an interest in a PFIC or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 309.75 Td (a CFC may experience adverse U.S. tax consequences. For example, a portion of the amount a unitholder realizes ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 297.75 Td (on a sale of their Class ) Tj ET Q q 0 0 0 rg BT 153.95 297.75 Td (A) Tj ET Q q 0 0 0 rg BT 160.06 297.75 Td ( units may be recharacterized as ordinary income. In addition, Oaktree Holdings, Ltd. is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 285.75 Td (treated as a CFC for U.S. federal income tax purposes, and, as such, each Class ) Tj ET Q q 0 0 0 rg BT 410.73 285.75 Td (A) Tj ET Q q 0 0 0 rg BT 416.85 285.75 Td ( unitholder that is a U.S. person ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 273.75 Td (is required to include in income its allocable share of Oaktree Holdings, Ltd.’) Tj ET Q q 0 0 0 rg BT 386.11 273.75 Td (s “Subpart F” income reported by us.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 255.75 Td (Non-U.S. persons face unique U.S. tax issues from owning Class ) Tj ET Q q 0 0 0 rg BT 360.25 255.75 Td (A) Tj ET Q q 0 0 0 rg BT 367.10 255.75 Td ( units that may result in adverse tax ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 243.75 Td (consequences to them.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 225.75 Td (In light of our intended investment activities, we may be treated as engaged in a U.S. trade or business for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 213.75 Td (U.S. federal income tax purposes, which may cause some portion of our income to be treated as ef) Tj ET Q q 0 0 0 rg BT 487.27 213.75 Td (fectively ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 201.75 Td (connected income \(“ECI”\) with respect to non-U.S. holders. Moreover) Tj ET Q q 0 0 0 rg BT 359.02 201.75 Td (, dividends paid by an investment that we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 189.75 Td (make in a real estate investment trust \(“REIT”\) that are attributable to gains from the sale of U.S. real property ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 177.75 Td (interests and sales of certain investments in interests in U.S. real property) Tj ET Q q 0 0 0 rg BT 375.52 177.75 Td (, including stock of certain U.S. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 165.75 Td (corporations owning significant U.S. real property) Tj ET Q q 0 0 0 rg BT 267.14 165.75 Td (, may be treated as ECI with respect to certain non-U.S. holders.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 147.75 Td (T) Tj ET Q q 0 0 0 rg BT 85.00 147.75 Td (o the extent our income is treated as ECI, non-U.S. holders generally would be subject to withholding tax on ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 135.75 Td (their allocable shares of such income, would be required to file U.S. federal income tax returns for such year ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 123.75 Td (reporting their allocable shares of income ef) Tj ET Q q 0 0 0 rg BT 243.81 123.75 Td (fectively connected with such trade or business and any other income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 111.75 Td (treated as ECI and would be subject to U.S. federal income tax at regular U.S. tax rates on any such income \(state ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 99.75 Td (and local income taxes and filings may also apply in that event\). Non-U.S. holders that are corporations may also ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 87.75 Td (be subject to a 30% branch profits tax on their allocable share of such income. In addition, certain income from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 75.75 Td (U.S. sources that is not ECI allocable to non-U.S. holders will be reduced by withholding taxes imposed at the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 63.75 Td (highest ef) Tj ET Q q 0 0 0 rg BT 93.18 63.75 Td (fective applicable tax rate. ) Tj ET Q q 0 0 0 rg BT 211.03 63.75 Td (A) Tj ET Q q 0 0 0 rg BT 217.15 63.75 Td ( portion of any gain recognized by a non-U.S. holder on the sale or exchange ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 51.75 Td (of Class ) Tj ET Q q 0 0 0 rg BT 88.35 51.75 Td (A) Tj ET Q q 0 0 0 rg BT 94.47 51.75 Td ( units could also be treated as ECI.) Tj ET Q endstream endobj 135 0 obj <> endobj 136 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (67) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (T) Tj ET Q q 0 0 0 rg BT 55.74 741.75 Td (ax-exempt entities face unique tax issues from owning Class ) Tj ET Q q 0 0 0 rg BT 347.12 741.75 Td (A) Tj ET Q q 0 0 0 rg BT 353.97 741.75 Td ( units that may result in adverse tax ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (consequences to them.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 711.75 Td (In light of our intended investment activities, we may derive income that constitutes unrelated business ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 699.75 Td (taxable income \(“UBTI”\). Consequently) Tj ET Q q 0 0 0 rg BT 224.88 699.75 Td (, a holder of Class ) Tj ET Q q 0 0 0 rg BT 307.71 699.75 Td (A) Tj ET Q q 0 0 0 rg BT 313.82 699.75 Td ( units that is a tax-exempt entity \(including an individual ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 687.75 Td (retirement account or a 401\(k\) plan participant\) may be subject to unrelated business income tax to the extent that ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 675.75 Td (its allocable share of our income consists of UBTI. ) Tj ET Q q 0 0 0 rg BT 276.77 675.75 Td (A) Tj ET Q q 0 0 0 rg BT 282.89 675.75 Td ( tax-exempt partner of a partnership could be treated as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 663.75 Td (earning UBTI if the partnership regularly engages in a trade or business that is unrelated to the exempt function of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 651.75 Td (the tax-exempt partner) Tj ET Q q 0 0 0 rg BT 150.05 651.75 Td (, if the partnership derives income from debt-financed property or if the partnership interest ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 639.75 Td (itself is debt-financed.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 621.75 Td (W) Tj ET Q q 0 0 0 rg BT 59.26 621.75 Td (e have adopted and may adopt certain income tax accounting positions that may not conform with all ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 609.75 Td (aspects of applicable tax requirements. The IRS may challenge this treatment, which could adversely af) Tj ET Q q 0 0 0 rg BT 541.65 609.75 Td (fect ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 597.75 Td (the value of our Class ) Tj ET Q q 0 0 0 rg BT 156.32 597.75 Td (A) Tj ET Q q 0 0 0 rg BT 163.17 597.75 Td ( units.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 579.75 Td (W) Tj ET Q q 0 0 0 rg BT 89.26 579.75 Td (e have adopted and may adopt depreciation, amortization and other tax accounting positions that may not ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 567.75 Td (conform with all aspects of existing UST) Tj ET Q q 0 0 0 rg BT 227.11 567.75 Td ( regulations. ) Tj ET Q q 0 0 0 rg BT 286.59 567.75 Td (A) Tj ET Q q 0 0 0 rg BT 292.71 567.75 Td ( successful IRS challenge to those positions could adversely ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 555.75 Td (af) Tj ET Q q 0 0 0 rg BT 58.16 555.75 Td (fect the amount of tax benefits available to our Class ) Tj ET Q q 0 0 0 rg BT 292.74 555.75 Td (A) Tj ET Q q 0 0 0 rg BT 298.86 555.75 Td ( unitholders. It also could af) Tj ET Q q 0 0 0 rg BT 423.19 555.75 Td (fect the timing of these tax ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 543.75 Td (benefits or the amount of gain on the sale of Class ) Tj ET Q q 0 0 0 rg BT 275.14 543.75 Td (A) Tj ET Q q 0 0 0 rg BT 281.26 543.75 Td ( units and could have a negative impact on the value of our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 531.75 Td (Class ) Tj ET Q q 0 0 0 rg BT 77.23 531.75 Td (A) Tj ET Q q 0 0 0 rg BT 83.35 531.75 Td ( units or result in audits of and adjustments to our Class ) Tj ET Q q 0 0 0 rg BT 331.81 531.75 Td (A) Tj ET Q q 0 0 0 rg BT 337.93 531.75 Td ( unitholders’) Tj ET Q q 0 0 0 rg BT 391.48 531.75 Td ( tax returns.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 513.75 Td (The sale or exchange of 50% or more of our capital and profit interests will result in the termination of our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 501.75 Td (partnership for U.S. federal income tax purposes.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 483.75 Td (W) Tj ET Q q 0 0 0 rg BT 89.26 483.75 Td (e will be considered to have been terminated for U.S. federal income tax purposes if there is a sale or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 471.75 Td (exchange of 50% or more of the total interests in our capital and profits within a twelve-month period. Our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 459.75 Td (termination would, among other things, result in the closing of our taxable year for all Class ) Tj ET Q q 0 0 0 rg BT 453.54 459.75 Td (A) Tj ET Q q 0 0 0 rg BT 459.66 459.75 Td ( unitholders and could ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 447.75 Td (result in a deferral of depreciation deductions allowable in computing our taxable income.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 429.75 Td (Class ) Tj ET Q q 0 0 0 rg BT 79.09 429.75 Td (A) Tj ET Q q 0 0 0 rg BT 85.94 429.75 Td ( unitholders may be subject to foreign, state and local taxes and return filing requirements as a ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 417.75 Td (result of investing in our Class ) Tj ET Q q 0 0 0 rg BT 198.54 417.75 Td (A) Tj ET Q q 0 0 0 rg BT 205.40 417.75 Td ( units.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 399.75 Td (In addition to U.S. federal income taxes, our Class ) Tj ET Q q 0 0 0 rg BT 304.56 399.75 Td (A) Tj ET Q q 0 0 0 rg BT 310.68 399.75 Td ( unitholders may be subject to other taxes, including ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 387.75 Td (foreign, state and local taxes, unincorporated business taxes and estate, inheritance or intangible taxes that are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 375.75 Td (imposed by the various jurisdictions in which we do business or own property now or in the future, even if our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 363.75 Td (Class ) Tj ET Q q 0 0 0 rg BT 77.23 363.75 Td (A) Tj ET Q q 0 0 0 rg BT 83.35 363.75 Td ( unitholders do not reside in any of those jurisdictions. Our Class ) Tj ET Q q 0 0 0 rg BT 373.50 363.75 Td (A) Tj ET Q q 0 0 0 rg BT 379.62 363.75 Td ( unitholders may be required to file ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 351.75 Td (foreign, state and local income tax returns and pay foreign, state and local income taxes in some or all of these ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 339.75 Td (jurisdictions. Furthermore, Class ) Tj ET Q q 0 0 0 rg BT 198.38 339.75 Td (A) Tj ET Q q 0 0 0 rg BT 204.50 339.75 Td ( unitholders may be subject to penalties for failure to comply with those ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 327.75 Td (requirements. It is the responsibility of each Class ) Tj ET Q q 0 0 0 rg BT 275.10 327.75 Td (A) Tj ET Q q 0 0 0 rg BT 281.22 327.75 Td ( unitholder to file all U.S. federal, foreign, state and local tax ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 315.75 Td (returns that may be required of such Class ) Tj ET Q q 0 0 0 rg BT 240.65 315.75 Td (A) Tj ET Q q 0 0 0 rg BT 246.77 315.75 Td ( unitholder) Tj ET Q q 0 0 0 rg BT 292.92 315.75 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 297.75 Td (Although we expect to provide estimates by the deadline for filing U.S. income tax returns each year) Tj ET Q q 0 0 0 rg BT 525.67 297.75 Td (, we do ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 285.75 Td (not necessarily expect to be able to furnish definitive Schedule K-1s to IRS Form 1065 to each unitholder ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 273.75 Td (prior to such deadline, which means that holders of Class ) Tj ET Q q 0 0 0 rg BT 326.90 273.75 Td (A) Tj ET Q q 0 0 0 rg BT 333.75 273.75 Td ( units who are U.S. taxpayers may want to file ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 261.75 Td (annually a request for an extension of the due date of their income tax returns.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 243.75 Td (It may require a substantial period of time after the end of our fiscal year to obtain the requisite information ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 231.75 Td (from all lower-tier entities to enable us to prepare and deliver Schedule K-1s to IRS Form 1065. In the event we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 219.75 Td (cannot provide timely Schedule K-1s, we expect to provide estimates of such tax information \(including a Class ) Tj ET Q q 0 0 0 rg BT 542.47 219.75 Td (A) Tj ET Q q 0 0 0 rg BT 548.59 219.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 207.75 Td (unitholder) Tj ET Q q 0 0 0 rg BT 94.29 207.75 Td (’) Tj ET Q q 0 0 0 rg BT 96.33 207.75 Td (s allocable share of our income, gain, loss and deduction for our preceding year\) by the deadline for filing ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 195.75 Td (U.S. income tax returns each year; in that event however) Tj ET Q q 0 0 0 rg BT 301.24 195.75 Td (, there is no assurance that the Schedule K-1s, which ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 183.75 Td (would be provided after the estimates, will be the same as our estimates. For this reason, holders of Class ) Tj ET Q q 0 0 0 rg BT 524.12 183.75 Td (A) Tj ET Q q 0 0 0 rg BT 530.23 183.75 Td ( units ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 171.75 Td (who are U.S. taxpayers may want to file with the IRS \(and certain states\) a request for an extension past the due ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 159.75 Td (date of their income tax returns.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 141.75 Td (In addition, in the event we provide separate estimates and subsequent Schedule K-1s, it is possible that a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 129.75 Td (Class ) Tj ET Q q 0 0 0 rg BT 77.23 129.75 Td (A) Tj ET Q q 0 0 0 rg BT 83.35 129.75 Td ( unitholder will be required to file amended income tax returns as a result of adjustments to items on the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 117.75 Td (corresponding income tax returns of the partnership. ) Tj ET Q q 0 0 0 rg BT 284.02 117.75 Td (Any obligation for a Class ) Tj ET Q q 0 0 0 rg BT 399.64 117.75 Td (A) Tj ET Q q 0 0 0 rg BT 405.76 117.75 Td ( unitholder to file amended income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 105.75 Td (tax returns for that or any other reason, including any costs incurred in the preparation or filing of such returns, is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 93.75 Td (the responsibility of each Class ) Tj ET Q q 0 0 0 rg BT 190.07 93.75 Td (A) Tj ET Q q 0 0 0 rg BT 196.19 93.75 Td ( unitholder) Tj ET Q q 0 0 0 rg BT 242.34 93.75 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 75.75 Td (T) Tj ET Q q 0 0 0 rg BT 55.74 75.75 Td (ax consequences to the OCGH unitholders may give rise to conflicts of interests.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 57.75 Td (As a result of an unrealized built-in gain attributable to the value of our assets held by the Oaktree Operating ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 45.75 Td (Group entities at the time of the 2007 Private Of) Tj ET Q q 0 0 0 rg BT 261.60 45.75 Td (fering and unrealized built-in gain attributable to OCGH at the time ) Tj ET Q endstream endobj 137 0 obj <> endobj 138 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (68) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (of our initial public of) Tj ET Q q 0 0 0 rg BT 140.98 741.75 Td (fering in ) Tj ET Q q 0 0 0 rg BT 178.78 741.75 Td (April 2012, upon the taxable sale, refinancing or disposition of the assets owned by ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (the Oaktree Operating Group entities, the OCGH unitholders may incur dif) Tj ET Q q 0 0 0 rg BT 377.20 729.75 Td (ferent and significantly greater tax ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (liabilities as a result of the disproportionately greater allocations of items of taxable income and gain to the OCGH ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 705.75 Td (unitholders upon a realization event. ) Tj ET Q q 0 0 0 rg BT 215.67 705.75 Td (As the OCGH unitholders will not receive a corresponding greater distribution ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 693.75 Td (of cash proceeds, they may) Tj ET Q q 0 0 0 rg BT 171.54 693.75 Td (, subject to applicable fiduciary or contractual duties, have dif) Tj ET Q q 0 0 0 rg BT 440.96 693.75 Td (ferent objectives regarding ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 681.75 Td (the appropriate pricing, timing and other material terms of any sale, refinancing or disposition, or whether to sell ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 669.75 Td (such assets at all. Decisions made with respect to an acceleration or deferral of income or the sale or disposition of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 657.75 Td (assets may also influence the timing and amount of payments that are received by an exchanging or selling OCGH ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 645.75 Td (unitholder under the tax receivable agreement. Decisions made regarding a change of control also could have a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 633.75 Td (material influence on the timing and amount of payments received by the OCGH unitholders pursuant to the tax ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 621.75 Td (receivable agreement. Because our senior executives hold their economic interest in our business primarily ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 609.75 Td (through OCGH and control both us and our manager \(which is entitled to designate all the members of our board of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 597.75 Td (directors\), these dif) Tj ET Q q 0 0 0 rg BT 134.85 597.75 Td (fering objectives may give rise to conflicts of interest. W) Tj ET Q q 0 0 0 rg BT 383.10 597.75 Td (e will be entitled to resolve these ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 585.75 Td (conflicts as described elsewhere in this annual report. Please see “—Risks Relating to Our Organization and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 573.75 Td (Structure—Our senior executives hold a small amount of their economic interest in the Oaktree Operating Group ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 561.75 Td (through us, which may give rise to conflicts of interest, and it is dif) Tj ET Q q 0 0 0 rg BT 339.95 561.75 Td (ficult for a Class ) Tj ET Q q 0 0 0 rg BT 413.31 561.75 Td (A) Tj ET Q q 0 0 0 rg BT 419.43 561.75 Td ( unitholder to successfully ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 549.75 Td (challenge a resolution of a conflict of interest by us.”) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 531.75 Td (Due to uncertainty in the proper application of applicable law) Tj ET Q q 0 0 0 rg BT 339.67 531.75 Td (, we may over-withhold or under-withhold on ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 519.75 Td (distributions to Class ) Tj ET Q q 0 0 0 rg BT 154.64 519.75 Td (A) Tj ET Q q 0 0 0 rg BT 161.49 519.75 Td ( unitholders.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 501.75 Td (For each calendar year) Tj ET Q q 0 0 0 rg BT 182.28 501.75 Td (, we will report to Class ) Tj ET Q q 0 0 0 rg BT 287.31 501.75 Td (A) Tj ET Q q 0 0 0 rg BT 293.43 501.75 Td ( unitholders and the IRS the amount of distributions we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 489.75 Td (made to Class ) Tj ET Q q 0 0 0 rg BT 116.14 489.75 Td (A) Tj ET Q q 0 0 0 rg BT 122.26 489.75 Td ( unitholders and the amount of U.S. federal income tax \(if any\) that we withheld on those ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 477.75 Td (distributions. ) Tj ET Q q 0 0 0 rg BT 111.51 477.75 Td (The proper application to us of rules for withholding under Section 1441 of the Code \(applicable to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 465.75 Td (certain dividends, interest and similar items\) is unclear) Tj ET Q q 0 0 0 rg BT 289.55 465.75 Td (. Because the documentation we receive may not properly ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 453.75 Td (reflect the identities of Class ) Tj ET Q q 0 0 0 rg BT 177.29 453.75 Td (A) Tj ET Q q 0 0 0 rg BT 183.40 453.75 Td ( unitholders at any particular time \(in light of possible sales of Class ) Tj ET Q q 0 0 0 rg BT 483.55 453.75 Td (A) Tj ET Q q 0 0 0 rg BT 489.67 453.75 Td ( units\), we may ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 441.75 Td (over-withhold or under-withhold with respect to a particular holder of Class ) Tj ET Q q 0 0 0 rg BT 380.72 441.75 Td (A) Tj ET Q q 0 0 0 rg BT 386.84 441.75 Td ( units. For example, we may impose ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 429.75 Td (withholding, remit that amount to the IRS and thus reduce the amount of a distribution paid to a non-U.S. Holder) Tj ET Q q 0 0 0 rg BT 543.62 429.75 Td (. It ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 417.75 Td (may turn out, however) Tj ET Q q 0 0 0 rg BT 148.38 417.75 Td (, that the corresponding amount of our income was not properly allocable to such holder) Tj ET Q q 0 0 0 rg BT 536.39 417.75 Td (, and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 405.75 Td (the withholding should have been less than the actual withholding. Such holder would be entitled to a credit against ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 393.75 Td (the holder) Tj ET Q q 0 0 0 rg BT 94.85 393.75 Td (’) Tj ET Q q 0 0 0 rg BT 96.89 393.75 Td (s U.S. tax liability for all withholding, including any such excess withholding, but if the withholding ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 381.75 Td (exceeded the holder) Tj ET Q q 0 0 0 rg BT 141.00 381.75 Td (’) Tj ET Q q 0 0 0 rg BT 143.04 381.75 Td (s U.S. tax liability) Tj ET Q q 0 0 0 rg BT 218.43 381.75 Td (, the holder would have to apply for a refund to obtain the benefit of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 369.75 Td (excess withholding. Similarly) Tj ET Q q 0 0 0 rg BT 179.31 369.75 Td (, we may fail to withhold on a distribution, and it may turn out that the corresponding ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 357.75 Td (income was properly allocable to a non-U.S. Holder and withholding should have been imposed. In that event, we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 345.75 Td (intend to pay the under-withheld amount to the IRS, and we may treat such under-withholding as an expense that ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 333.75 Td (will be borne by all holders of Class ) Tj ET Q q 0 0 0 rg BT 208.97 333.75 Td (A) Tj ET Q q 0 0 0 rg BT 215.09 333.75 Td ( units on a pro rata basis \(since we may be unable to allocate any such ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 321.75 Td (excess withholding tax cost to the relevant non-U.S. holder\).) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 303.75 Td (Certain U.S. holders of common units are subject to additional tax on “net investment income.”) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 285.75 Td (U.S. holders that are individuals, estates or trusts are subject to a Medicare tax of 3.8% on “net investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 273.75 Td (income” \(or undistributed “net investment income,” in the case of estates and trusts\) for each taxable year) Tj ET Q q 0 0 0 rg BT 515.79 273.75 Td (, with ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 261.75 Td (such tax applying to the lesser of such income or the excess of such person’) Tj ET Q q 0 0 0 rg BT 387.22 261.75 Td (s adjusted gross income \(with certain ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 249.75 Td (adjustments\) over a specified amount. Net investment income includes net income from interest, dividends, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 237.75 Td (annuities, royalties and rents and net gain attributable to the disposition of investment property) Tj ET Q q 0 0 0 rg BT 466.18 237.75 Td (. Net income and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 225.75 Td (gain attributable to an investment in our Class ) Tj ET Q q 0 0 0 rg BT 255.12 225.75 Td (A) Tj ET Q q 0 0 0 rg BT 261.24 225.75 Td ( units will be included in a U.S. holder) Tj ET Q q 0 0 0 rg BT 427.81 225.75 Td (’) Tj ET Q q 0 0 0 rg BT 429.85 225.75 Td (s “net investment income” ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 213.75 Td (subject to this Medicare tax.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 195.75 Td (W) Tj ET Q q 0 0 0 rg BT 59.26 195.75 Td (e may be liable for adjustments to our tax returns as a result of partnership audit legislation.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 177.75 Td (Legislation enacted in 2015 significantly changed the rules for U.S. federal income tax audits of partnerships. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 165.75 Td (Such audits will continue to be conducted at the partnership level, but with respect to tax returns for taxable years ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 153.75 Td (beginning after December 31, 2017, and, unless a partnership qualifies for and af) Tj ET Q q 0 0 0 rg BT 408.94 153.75 Td (firmatively elects an alternative ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 141.75 Td (procedure, any adjustments to the amount of tax due \(including interest and penalties\) will be payable by the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 129.75 Td (partnership. Under the elective alternative procedure, a partnership would issue information returns to persons who ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 117.75 Td (were partners in the audited year) Tj ET Q q 0 0 0 rg BT 195.64 117.75 Td (, who would then be required to take the adjustments into account in calculating ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 105.75 Td (their own tax liability) Tj ET Q q 0 0 0 rg BT 138.74 105.75 Td (, and the partnership would not be liable for the adjustments. If a partnership elects the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 93.75 Td (alternative procedure for a given adjustment, the amount of taxes for which its partners would be liable would be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 81.75 Td (increased by any applicable penalties and a special interest charge. ) Tj ET Q q 0 0 0 rg BT 355.01 81.75 Td (There can be no assurance that we will be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 69.75 Td (eligible to make such an election or that we will, in fact, make such an election for any given adjustment. If we do ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 57.75 Td (not or are not able to make such an election, then \(1\) our then-current common unitholders, in the aggregate, could ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 45.75 Td (indirectly bear income tax liabilities in excess of the aggregate amount of taxes that would have been due had we ) Tj ET Q endstream endobj 139 0 obj <> endobj 140 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (69) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (elected the alternative procedure, and \(2\) a given common unitholder may indirectly bear taxes attributable to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (income allocable to other common unitholders or former common unitholders, including taxes \(as well as interest ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (and penalties\) with respect to periods prior to such holder) Tj ET Q q 0 0 0 rg BT 304.40 717.75 Td (’) Tj ET Q q 0 0 0 rg BT 306.44 717.75 Td (s ownership of common units. ) Tj ET Q q 0 0 0 rg BT 443.73 717.75 Td (Amounts available for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 705.75 Td (distribution to our common unitholders may be reduced as a result of our obligation to pay any taxes associated ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 693.75 Td (with an adjustment. Many issues and the overall ef) Tj ET Q q 0 0 0 rg BT 276.61 693.75 Td (fect of this new legislation on us are uncertain, and common ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 681.75 Td (unitholders should consult their own tax advisors regarding all aspects of this legislation as it af) Tj ET Q q 0 0 0 rg BT 468.94 681.75 Td (fects their particular ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 669.75 Td (circumstances.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 633.75 Td (Item 1B. Unresolved Staff Comments) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.00 612.75 Td (None.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 582.75 Td (Item 2. Properties) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 557.25 Td (Properties) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 540.75 Td (Our principal executive of) Tj ET Q q 0 0 0 rg BT 192.65 540.75 Td (fices are located in leased of) Tj ET Q q 0 0 0 rg BT 319.21 540.75 Td (fice space at 333 South Grand ) Tj ET Q q 0 0 0 rg BT 456.53 540.75 Td (A) Tj ET Q q 0 0 0 rg BT 463.02 540.75 Td (venue, 28th Floor) Tj ET Q q 0 0 0 rg BT 540.29 540.75 Td (, Los ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 528.75 Td (Angeles, California 90071. W) Tj ET Q q 0 0 0 rg BT 182.11 528.75 Td (e also lease the space for our of) Tj ET Q q 0 0 0 rg BT 324.24 528.75 Td (fices in New ) Tj ET Q q 0 0 0 rg BT 380.75 528.75 Td (Y) Tj ET Q q 0 0 0 rg BT 386.50 528.75 Td (ork City) Tj ET Q q 0 0 0 rg BT 419.65 528.75 Td (, Stamford, Houston, London, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 516.75 Td (Frankfurt, Paris, Beijing, Hong Kong, Shanghai, Seoul, Singapore, Sydney) Tj ET Q q 0 0 0 rg BT 377.79 516.75 Td (, ) Tj ET Q q 0 0 0 rg BT 383.16 516.75 Td (T) Tj ET Q q 0 0 0 rg BT 388.16 516.75 Td (okyo and Dubai. Certain af) Tj ET Q q 0 0 0 rg BT 509.17 516.75 Td (filiates of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 504.75 Td (our managed funds lease of) Tj ET Q q 0 0 0 rg BT 173.79 504.75 Td (fice space in ) Tj ET Q q 0 0 0 rg BT 231.61 504.75 Td (Amsterdam, Luxembourg and Dublin. W) Tj ET Q q 0 0 0 rg BT 412.06 504.75 Td (e do not own any real property) Tj ET Q q 0 0 0 rg BT 546.40 504.75 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 492.75 Td (W) Tj ET Q q 0 0 0 rg BT 59.26 492.75 Td (e consider our facilities to be suitable and adequate for the management and operation of our business. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 462.75 Td (Item 3. Legal Proceedings ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 441.75 Td (For a discussion of legal proceedings, please see the section entitled ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.96 441.75 Td (“) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 398.40 441.75 Td (Legal ) Tj ET Q q 0 0 0 rg BT 425.10 441.75 Td (Actions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.89 441.75 Td (”) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 462.33 441.75 Td ( in note 16 to our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 429.75 Td (consolidated financial statements included elsewhere in this annual report, which section is incorporated herein by ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 417.75 Td (reference.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 387.75 Td (Item 4. Mine Safety Disclosures) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.00 366.75 Td (None.) Tj ET Q endstream endobj 141 0 obj <> endobj 142 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (70) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (P) Tj ET Q q 0 0 0 rg BT 55.93 741.75 Td (ART II.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 720.75 Td (Item 5. Market for Registrant’) Tj ET Q q 0 0 0 rg BT 187.44 720.75 Td (s Common Equity) Tj ET Q q 0 0 0 rg BT 271.70 720.75 Td (, Related Stockholder Matters and Issuer Purchases of ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 708.75 Td (Equity Securities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 687.75 Td (Market Information) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.00 666.75 Td (Our Class ) Tj ET Q q 0 0 0 rg BT 127.68 666.75 Td (A) Tj ET Q q 0 0 0 rg BT 133.80 666.75 Td ( units are traded on the NYSE under the symbol “OAK” and began trading on the NYSE on ) Tj ET Q q 0 0 0 rg BT 536.82 666.75 Td (April ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 654.75 Td (12, 2012. ) Tj ET Q q 0 0 0 rg BT 97.08 654.75 Td (The following table sets forth the high and low intra-day sales prices per unit of our Class ) Tj ET Q q 0 0 0 rg BT 491.73 654.75 Td (A) Tj ET Q q 0 0 0 rg BT 497.85 654.75 Td ( units, for the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 642.75 Td (periods indicated, as reported by the NYSE: ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 618.25 m 408.5 618.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 618.25 m 416.5 618.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 618.25 m 459.5 618.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467.5 618.25 m 510.5 618.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510.5 618.25 m 518.5 618.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518.5 618.25 m 561.5 618.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 604.25 m 408.5 604.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 604.25 m 459.5 604.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467.5 604.25 m 510.5 604.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518.5 604.25 m 561.5 604.25 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 404.20 622.25 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 506.20 622.25 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 378.70 608.25 Td (High) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 430.50 608.25 Td (Low) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 480.70 608.25 Td (High) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 532.50 608.25 Td (Low) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 591.65 Td (First Quarter) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 109.45 591.20 Td (.....................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 368.00 591.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 382.45 591.65 Td (50.15) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 419.00 591.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 433.45 591.65 Td (38.66) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 470.00 591.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 484.45 591.65 Td (57.07) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 521.00 591.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 591.65 Td (51.09) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 576.65 Td (Second Quarter) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 121.95 576.20 Td (................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 382.45 576.65 Td (49.65) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 433.45 576.65 Td (43.72) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 484.45 576.65 Td (55.19) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 576.65 Td (51.00) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 561.65 Td (Third Quarter) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 111.95 561.20 Td (....................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 382.45 561.65 Td (48.94) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 433.45 561.65 Td (41.21) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 484.45 561.65 Td (56.54) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 561.65 Td (48.69) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 546.65 Td (Fourth Quarter) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 116.95 546.20 Td (..................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 382.45 546.65 Td (43.70) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 433.45 546.65 Td (36.95) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 484.45 546.65 Td (52.15) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 546.65 Td (45.67) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.50 521.75 Td (The number of holders of record of our Class ) Tj ET Q q 0 0 0 rg BT 282.71 521.75 Td (A) Tj ET Q q 0 0 0 rg BT 288.83 521.75 Td ( units as of February 21, 2017 was 262. ) Tj ET Q q 0 0 0 rg BT 469.86 521.75 Td (This does not ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 509.75 Td (include the number of Class ) Tj ET Q q 0 0 0 rg BT 176.18 509.75 Td (A) Tj ET Q q 0 0 0 rg BT 182.30 509.75 Td ( unitholders that hold units in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.38 509.75 Td (“) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 316.82 509.75 Td (street-name) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.18 509.75 Td (”) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 374.61 509.75 Td ( through banks or broker-dealers.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 482.75 Td (Cash Distribution Policy) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 461.75 Td (W) Tj ET Q q 0 0 0 rg BT 89.26 461.75 Td (e intend to make distributions to our Class ) Tj ET Q q 0 0 0 rg BT 277.69 461.75 Td (A) Tj ET Q q 0 0 0 rg BT 283.81 461.75 Td ( unitholders quarterly) Tj ET Q q 0 0 0 rg BT 376.45 461.75 Td (, following the respective quarter end. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 449.75 Td (Distributions to our Class ) Tj ET Q q 0 0 0 rg BT 163.38 449.75 Td (A) Tj ET Q q 0 0 0 rg BT 169.50 449.75 Td ( unitholders are funded by our share of the Oaktree Operating Group’) Tj ET Q q 0 0 0 rg BT 475.61 449.75 Td (s distributions. W) Tj ET Q q 0 0 0 rg BT 554.34 449.75 Td (e ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 437.75 Td (use distributable earnings, a non-GAAP) Tj ET Q q 0 0 0 rg BT 225.48 437.75 Td ( performance measure derived from our segment results, to measure our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 425.75 Td (earnings at the Oaktree Operating Group level without the ef) Tj ET Q q 0 0 0 rg BT 317.20 425.75 Td (fects of the consolidated funds for purposes of, among ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 413.75 Td (other things, assisting in the determination of equity distributions from the Oaktree Operating Group. By excluding ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 401.75 Td (the results of our consolidated funds and segment investment income or loss, which are not directly available to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 389.75 Td (fund our operations or make equity distributions, and including the portion of distributions from Oaktree and non-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 377.75 Td (Oaktree funds and companies to us that represents the income or loss component of the distributions and not a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 365.75 Td (return of our capital contributions, distributable earnings aids us in measuring amounts that are actually available to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 353.75 Td (meet our obligations under the tax receivable agreement and our liabilities for expenses incurred at OCG and the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 341.75 Td (Intermediate Holding Companies, as well as for distributions to Class ) Tj ET Q q 0 0 0 rg BT 356.81 341.75 Td (A) Tj ET Q q 0 0 0 rg BT 362.93 341.75 Td ( and OCGH unitholders. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 320.75 Td (W) Tj ET Q q 0 0 0 rg BT 89.26 320.75 Td (e intend to distribute substantially all of the excess of our share of distributable earnings, net of income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 308.75 Td (taxes, as determined by our board of directors after taking into account factors it deems relevant, such as, but not ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 296.75 Td (limited to, working capital levels; known or anticipated cash needs; business and investment opportunities; general ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 284.75 Td (economic and business conditions; our obligations under our debt instruments or other agreements; our compliance ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 272.75 Td (with applicable laws; the level and character of taxable income that flows through to our Class ) Tj ET Q q 0 0 0 rg BT 466.34 272.75 Td (A) Tj ET Q q 0 0 0 rg BT 472.46 272.75 Td ( unitholders; the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 260.75 Td (availability and terms of outside financing; the possible repurchase of our Class ) Tj ET Q q 0 0 0 rg BT 402.42 260.75 Td (A) Tj ET Q q 0 0 0 rg BT 408.54 260.75 Td ( units in open market transactions, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 248.75 Td (in privately negotiated transactions or otherwise; the possible repurchase of OCGH units; providing for future ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 236.75 Td (distributions to our Class ) Tj ET Q q 0 0 0 rg BT 161.72 236.75 Td (A) Tj ET Q q 0 0 0 rg BT 167.84 236.75 Td ( and OCGH unitholders; and growing our capital base. W) Tj ET Q q 0 0 0 rg BT 422.79 236.75 Td (e are not currently restricted by ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 224.75 Td (any contract from making distributions to our unitholders, although certain of our subsidiaries are bound by credit ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 212.75 Td (agreements that contain certain restricted payment and/or other covenants, which may have the ef) Tj ET Q q 0 0 0 rg BT 485.06 212.75 Td (fect of limiting ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 200.75 Td (the amount of distributions that we receive from our subsidiaries. In addition, we are not permitted to make a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 188.75 Td (distribution under Section 18-607 of the Delaware Limited Liability Company ) Tj ET Q q 0 0 0 rg BT 388.53 188.75 Td (Act if, after giving ef) Tj ET Q q 0 0 0 rg BT 476.16 188.75 Td (fect to the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 176.75 Td (distribution, our liabilities would exceed the fair value of our assets. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 155.75 Td (The declaration, payment and determination of the amount of equity distributions, if any) Tj ET Q q 0 0 0 rg BT 465.04 155.75 Td (, is at the sole ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 143.75 Td (discretion of our board of directors, which may change our distribution policy at any time. Please see “Risk Factors) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 131.75 Td (—Risks Relating to Our Class ) Tj ET Q q 0 0 0 rg BT 184.49 131.75 Td (A) Tj ET Q q 0 0 0 rg BT 190.61 131.75 Td ( Units—W) Tj ET Q q 0 0 0 rg BT 235.42 131.75 Td (e cannot assure you that our intended quarterly distributions will be paid ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 119.75 Td (each quarter or at all.”) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 98.75 Td (Class ) Tj ET Q q 0 0 0 rg BT 107.23 98.75 Td (A) Tj ET Q q 0 0 0 rg BT 113.35 98.75 Td ( unitholders receive their share of these distributions from the Oaktree Operating Group, net of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 86.75 Td (expenses that we and our Intermediate Holding Companies bear directly) Tj ET Q q 0 0 0 rg BT 369.44 86.75 Td (, such as income taxes or payment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 74.75 Td (obligations under the tax receivable agreement. Our quarterly distributable earnings may be af) Tj ET Q q 0 0 0 rg BT 468.95 74.75 Td (fected by potential ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 62.75 Td (seasonal factors that may) Tj ET Q q 0 0 0 rg BT 163.20 62.75 Td (, in turn, af) Tj ET Q q 0 0 0 rg BT 210.27 62.75 Td (fect the level of the cash distributions applicable to a particular quarter) Tj ET Q q 0 0 0 rg BT 519.34 62.75 Td (. For ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 50.75 Td (example, we generally receive tax-related incentive distributions from certain closed-end funds in the first quarter of ) Tj ET Q endstream endobj 143 0 obj <> endobj 144 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (71) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (the year) Tj ET Q q 0 0 0 rg BT 85.58 741.75 Td (, which if received generate distributable earnings in that period. ) Tj ET Q q 0 0 0 rg BT 373.53 741.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 423.93 741.75 Td (, DoubleLine’) Tj ET Q q 0 0 0 rg BT 482.12 741.75 Td (s corporate ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (distributions to us may vary in length of period covered. For example, the quarterly distributions made in the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (second and fourth quarters typically have covered two and four months of activity) Tj ET Q q 0 0 0 rg BT 407.78 717.75 Td (, respectively) Tj ET Q q 0 0 0 rg BT 465.40 717.75 Td (. ) Tj ET Q q 0 0 0 rg BT 473.55 717.75 Td (The distribution ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 705.75 Td (amount for any given period is likely to vary materially due to these and other factors.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.00 684.75 Td (Certain transactions involving the exchange of OCGH units, including our 2007 Private Of) Tj ET Q q 0 0 0 rg BT 476.59 684.75 Td (fering, 2012 initial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 672.75 Td (public of) Tj ET Q q 0 0 0 rg BT 87.07 672.75 Td (fering, and May 2013, March 2014 and March 2015 follow-on of) Tj ET Q q 0 0 0 rg BT 368.16 672.75 Td (ferings, increase the tax basis of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 660.75 Td (tangible and intangible assets of the Oaktree Operating Group. ) Tj ET Q q 0 0 0 rg BT 332.96 660.75 Td (Assuming no material changes in the relevant tax ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 648.75 Td (law and that we earn suf) Tj ET Q q 0 0 0 rg BT 158.22 648.75 Td (ficient taxable income to realize the full tax benefit of the increased amortization of our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 636.75 Td (assets, we expect that reductions in future quarterly distributions to Class ) Tj ET Q q 0 0 0 rg BT 375.72 636.75 Td (A) Tj ET Q q 0 0 0 rg BT 381.84 636.75 Td ( unitholders associated with payments ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 624.75 Td (under the tax receivable agreement will aggregate $321.9 million through 2036. ) Tj ET Q q 0 0 0 rg BT 405.79 624.75 Td (As shown in the table below) Tj ET Q q 0 0 0 rg BT 529.20 624.75 Td (, we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 612.75 Td (estimate that an aggregate $21.5 million of that total will reduce fiscal year 2017’) Tj ET Q q 0 0 0 rg BT 405.02 612.75 Td (s four quarterly distributions to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 600.75 Td (Class ) Tj ET Q q 0 0 0 rg BT 77.23 600.75 Td (A) Tj ET Q q 0 0 0 rg BT 83.35 600.75 Td ( unitholders, which will be reflected as adjustments taken in arriving at the cash distribution payable per ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 588.75 Td (Class ) Tj ET Q q 0 0 0 rg BT 77.23 588.75 Td (A) Tj ET Q q 0 0 0 rg BT 83.35 588.75 Td ( unit. Future estimated reductions in quarterly distributions to Class ) Tj ET Q q 0 0 0 rg BT 384.05 588.75 Td (A) Tj ET Q q 0 0 0 rg BT 390.17 588.75 Td ( unitholders associated with payments ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 576.75 Td (under the tax receivable agreement are subject to increase in the event of additional exchanges of OCGH units that ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 564.75 Td (result in an increase to such tax bases. ) Tj ET Q q 0 0 0 rg BT 228.25 564.75 Td (These reductions are in addition to reductions for income taxes and other ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 552.75 Td (expenses that Oaktree or its Intermediate Holding Companies bear directly) Tj ET Q q 0 0 0 rg BT 379.98 552.75 Td (. ) Tj ET Q q 0 0 0 rg BT 388.13 552.75 Td (The November 2015 exchange of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 540.75 Td (OCGH units did not result in an increase in the tax basis of the tangible and intangible assets of the Oaktree ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 528.75 Td (Operating Group and, therefore, did not result in an increase to the tax receivable agreement liability) Tj ET Q q 0 0 0 rg BT 492.29 528.75 Td (. Please see ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 516.75 Td (notes 12 and 15 to our consolidated financial statements included elsewhere in this annual report for more ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 504.75 Td (information regarding historical distributions per Class ) Tj ET Q q 0 0 0 rg BT 290.11 504.75 Td (A) Tj ET Q q 0 0 0 rg BT 296.23 504.75 Td ( unit and the tax receivable agreement.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379.5 466.25 m 432.5 466.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432.5 466.25 m 444.5 466.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 466.25 m 497.5 466.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 466.25 m 509.5 466.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 466.25 m 562.5 466.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314.5 440.25 m 367.5 440.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379.5 440.25 m 432.5 440.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 440.25 m 497.5 440.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 440.25 m 562.5 440.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314.5 350.25 m 367.5 350.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314.5 336.25 m 367.5 336.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314.5 334.25 m 367.5 334.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379.5 350.25 m 432.5 350.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379.5 336.25 m 432.5 336.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379.5 334.25 m 432.5 334.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 350.25 m 497.5 350.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 336.25 m 497.5 336.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 334.25 m 497.5 334.25 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 402.35 477.25 Td (Future Estimated Reductions ) Tj ET Q q 0 0 0 rg BT 501.27 477.25 Td (Associated) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 411.55 470.25 Td (W) Tj ET Q q 0 0 0 rg BT 418.10 470.25 Td (ith the T) Tj ET Q q 0 0 0 rg BT 444.79 470.25 Td (ax Receivable ) Tj ET Q q 0 0 0 rg BT 492.79 470.25 Td (Agreement) Tj ET Q BT /F2 7.00 Tf ET 0 0 0 RG /GS0 gs 0.73 w 0 i [] 0 d 1 J 1 j 3 M 53 443.144677734375 m 96.1826171875 443.144677734375 l s q 0 0 0 rg BT 53.00 444.25 Td (Transactions) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 322.25 458.25 Td (Fiscal ) Tj ET Q q 0 0 0 rg BT 343.91 458.25 Td (Y) Tj ET Q q 0 0 0 rg BT 348.20 458.25 Td (ear ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 332.70 451.25 Td (2016 ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 317.65 444.25 Td (Reductions ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 357.71 447.59 Td (\(1\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 385.50 458.25 Td (Total Future) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 388.15 451.25 Td (Aggregate) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 386.40 444.25 Td (Reductions) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 452.25 458.25 Td (Fiscal ) Tj ET Q q 0 0 0 rg BT 473.91 458.25 Td (Y) Tj ET Q q 0 0 0 rg BT 478.20 458.25 Td (ear ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 462.70 451.25 Td (2017 ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 447.65 444.25 Td (Reductions ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 487.71 447.59 Td (\(1\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 516.40 458.25 Td (Reductions) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 521.30 451.25 Td (Through) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 517.25 444.25 Td (Fiscal Year) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 382.90 430.95 Td (\($ in millions\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 414.65 Td (2007 Private Offering) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 143.45 414.20 Td (...................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 317.00 414.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 351.45 414.65 Td (3.8) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 382.00 414.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 411.45 414.65 Td (32.1) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 447.00 414.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 481.45 414.65 Td (4.0) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 414.65 Td (2029) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 399.65 Td (Initial public offering) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 135.95 399.20 Td (......................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 351.45 399.65 Td (4.4) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 411.45 399.65 Td (66.3) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 481.45 399.65 Td (4.5) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 399.65 Td (2033) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 384.65 Td (May 2013 Offering) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 130.95 384.20 Td (........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 351.45 384.65 Td (5.5) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 411.45 384.65 Td (93.0) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 481.45 384.65 Td (5.6) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 384.65 Td (2034) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 369.65 Td (March 2014 Offering) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 138.45 369.20 Td (.....................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 351.45 369.65 Td (3.9) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 411.45 369.65 Td (70.6) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 481.45 369.65 Td (4.0) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 369.65 Td (2035) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 354.65 Td (March 2015 Offering) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 138.45 354.20 Td (.....................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 351.45 354.65 Td (2.9) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 411.45 354.65 Td (59.9) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 481.45 354.65 Td (3.4) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 354.65 Td (2036) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 339.65 Td (Total) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 78.45 339.20 Td (.............................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 317.00 339.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 346.45 339.65 Td (20.5) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 382.00 339.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 406.45 339.65 Td (321.9) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 447.00 339.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 476.45 339.65 Td (21.5) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 321.25 m 150.5 321.25 l s BT /F1 10.00 Tf ET BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 307.95 Td (\(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.00 307.95 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 307.95 Td (This column represents reductions in quarterly distributions to Class ) Tj ET Q q 0 0 0 rg BT 344.62 307.95 Td (A) Tj ET Q q 0 0 0 rg BT 350.13 307.95 Td ( unitholders associated with payments under the tax ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 297.15 Td (receivable agreement attributable to the applicable fiscal year) Tj ET Q q 0 0 0 rg BT 316.65 297.15 Td (.) Tj ET Q endstream endobj 145 0 obj <> endobj 146 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (72) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 741.75 Td (Set forth below are the distributions per Class ) Tj ET Q q 0 0 0 rg BT 283.99 741.75 Td (A) Tj ET Q q 0 0 0 rg BT 290.11 741.75 Td ( unit that were paid on the indicated payment dates to the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (holders of record as of a date that was two to five business days prior to the payment date.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 696.25 m 149.5 696.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279.5 696.25 m 384.5 696.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 696.25 m 561.5 696.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 637.25 m 561.5 637.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 622.25 m 561.5 622.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 620.25 m 561.5 620.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 553.25 m 561.5 553.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 540.25 m 561.5 540.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 538.25 m 561.5 538.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 471.25 m 561.5 471.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 456.25 m 561.5 456.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 454.25 m 561.5 454.25 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 75.85 700.25 Td (Payment Date) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 292.95 707.25 Td (Applicable to Quarterly) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 308.90 700.25 Td (Period Ended) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 517.85 707.25 Td (Distribution) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 524.25 700.25 Td (per Unit) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 683.65 Td (February 24, 2017) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 282.00 683.65 Td (December 31, 2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.00 683.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.45 683.65 Td (0.63) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 669.65 Td (November 14, 2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 282.00 669.65 Td (September 30, 2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.45 669.65 Td (0.65) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 655.65 Td (August 12, 2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 282.00 655.65 Td (June 30, 2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.45 655.65 Td (0.58) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 641.65 Td (May 13, 2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 282.00 641.65 Td (March 31, 2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.45 641.65 Td (0.55) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 625.65 Td (Total fiscal year 2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 145.90 625.20 Td (..................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.00 625.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.45 625.65 Td (2.41) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 599.65 Td (February 26, 2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 282.00 599.65 Td (December 31, 2015) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.00 599.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.45 599.65 Td (0.47) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 585.65 Td (November 12, 2015) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 282.00 585.65 Td (September 30, 2015) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.45 585.65 Td (0.40) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 571.65 Td (August 13, 2015) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 282.00 571.65 Td (June 30, 2015) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.45 571.65 Td (0.50) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 557.65 Td (May 14, 2015) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 282.00 557.65 Td (March 31, 2015) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.45 557.65 Td (0.64) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 543.65 Td (Total fiscal year 2015) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 145.90 543.20 Td (..................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.00 543.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.45 543.65 Td (2.01) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 517.65 Td (February 25, 2015) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 282.00 517.65 Td (December 31, 2014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.00 517.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.45 517.65 Td (0.56) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 503.65 Td (November 13, 2014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 282.00 503.65 Td (September 30, 2014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.45 503.65 Td (0.62) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 489.65 Td (August 14, 2014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 282.00 489.65 Td (June 30, 2014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.45 489.65 Td (0.55) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 475.65 Td (May 15, 2014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 282.00 475.65 Td (March 31, 2014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.45 475.65 Td (0.98) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 459.65 Td (Total fiscal year 2014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 145.90 459.20 Td (..................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.00 459.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.45 459.65 Td (2.71) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 425.75 Td (Unregistered Sales of Equity Securities and Purchases of Equity Securities in the Fourth Quarter of 2016) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.50 404.75 Td (None.) Tj ET Q endstream endobj 147 0 obj <> endobj 148 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (73) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Item 6. Selected Financial Data) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 720.75 Td (The following sets forth selected historical consolidated financial and other data of Oaktree Capital Group, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 708.75 Td (LLC as of and for the years ended December 31, 2016, 2015, 2014, 2013 and 2012. ) Tj ET Q q 0 0 0 rg BT 427.87 708.75 Td (The following data should be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 696.75 Td (read together with “—Management’) Tj ET Q q 0 0 0 rg BT 206.57 696.75 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 284.38 696.75 Td (Analysis of Financial Condition and Results of Operations” and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 684.75 Td (the historical financial statements and related notes included elsewhere in this annual report. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 663.75 Td (W) Tj ET Q q 0 0 0 rg BT 89.26 663.75 Td (e derived the selected historical financial data as of and for the years ended December 31, 2016, 2015, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 651.75 Td (2014, 2013 and 2012 from our audited consolidated financial statements. ) Tj ET Q q 0 0 0 rg BT 378.37 651.75 Td (The audited consolidated statements of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 639.75 Td (operations for the years ended December 31, 2016, 2015 and 2014 and the consolidated statements of financial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 627.75 Td (condition as of December 31, 2016 and 2015 are included elsewhere in this annual report. ) Tj ET Q q 0 0 0 rg BT 453.97 627.75 Td (The audited ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 615.75 Td (consolidated statements of operations and financial condition for all other periods are not included in this annual ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 603.75 Td (report. ) Tj ET Q q 0 0 0 rg BT 84.28 603.75 Td (The selected historical financial data are not necessarily indicative of the expected future operating results ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 591.75 Td (of Oaktree. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 102.25 591.75 Td ( ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 565.25 m 325.5 565.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325.5 565.25 m 333.5 565.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 565.25 m 384.5 565.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 565.25 m 392.5 565.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 565.25 m 443.5 565.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 565.25 m 451.5 565.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451.5 565.25 m 502.5 565.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 565.25 m 510.5 565.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510.5 565.25 m 561.5 565.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 549.25 m 325.5 549.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 565.25 m 384.5 565.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 549.25 m 384.5 549.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 565.25 m 392.5 565.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 565.25 m 443.5 565.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 549.25 m 443.5 549.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 565.25 m 451.5 565.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451.5 565.25 m 502.5 565.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451.5 549.25 m 502.5 549.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 565.25 m 510.5 565.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510.5 565.25 m 561.5 565.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510.5 549.25 m 561.5 549.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 485.25 m 325.5 485.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 485.25 m 384.5 485.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 485.25 m 443.5 485.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451.5 485.25 m 502.5 485.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510.5 485.25 m 561.5 485.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 485.25 m 325.5 485.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 485.25 m 384.5 485.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 457.25 m 325.5 457.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 457.25 m 384.5 457.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 457.25 m 443.5 457.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451.5 457.25 m 502.5 457.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510.5 457.25 m 561.5 457.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 457.25 m 325.5 457.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 457.25 m 384.5 457.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 387.25 m 325.5 387.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 387.25 m 384.5 387.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 387.25 m 443.5 387.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451.5 387.25 m 502.5 387.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510.5 387.25 m 561.5 387.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 387.25 m 325.5 387.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 373.25 m 325.5 373.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 371.25 m 325.5 371.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 387.25 m 384.5 387.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 373.25 m 384.5 373.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 371.25 m 384.5 371.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 373.25 m 443.5 373.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 371.25 m 443.5 371.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451.5 373.25 m 502.5 373.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451.5 371.25 m 502.5 371.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510.5 373.25 m 561.5 373.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510.5 371.25 m 561.5 371.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 371.25 m 325.5 371.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 373.25 m 325.5 373.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 358.25 m 325.5 358.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 356.25 m 325.5 356.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 371.25 m 384.5 371.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 373.25 m 384.5 373.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 358.25 m 384.5 358.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 356.25 m 384.5 356.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 371.25 m 443.5 371.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 373.25 m 443.5 373.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 358.25 m 443.5 358.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 356.25 m 443.5 356.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451.5 358.25 m 502.5 358.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451.5 356.25 m 502.5 356.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510.5 358.25 m 561.5 358.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510.5 356.25 m 561.5 356.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 356.25 m 325.5 356.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 358.25 m 325.5 358.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 343.25 m 325.5 343.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 341.25 m 325.5 341.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 356.25 m 384.5 356.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 358.25 m 384.5 358.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 343.25 m 384.5 343.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 341.25 m 384.5 341.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 356.25 m 443.5 356.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 358.25 m 443.5 358.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 343.25 m 443.5 343.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 341.25 m 443.5 341.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451.5 343.25 m 502.5 343.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451.5 341.25 m 502.5 341.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510.5 343.25 m 561.5 343.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510.5 341.25 m 561.5 341.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 341.25 m 325.5 341.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 343.25 m 325.5 343.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 325.25 m 325.5 325.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 323.25 m 325.5 323.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 341.25 m 384.5 341.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 343.25 m 384.5 343.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 325.25 m 384.5 325.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 323.25 m 384.5 323.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 325.25 m 443.5 325.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 323.25 m 443.5 323.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451.5 325.25 m 502.5 325.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451.5 323.25 m 502.5 323.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510.5 325.25 m 561.5 325.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510.5 323.25 m 561.5 323.25 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 348.70 569.25 Td (As of or for the Year Ended December 31,) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.00 553.48 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 291.70 553.25 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 350.70 553.25 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 409.70 553.25 Td (2014) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 468.70 553.25 Td (2013) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 527.70 553.25 Td (2012) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 315.35 541.65 Td (\(in thousands, except per unit data or as otherwise indicated\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 528.48 Td (Consolidated Statements of Operations Data: ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 226.69 532.29 Td (\(1\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.00 515.48 Td (Total revenues) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 106.50 515.93 Td (..........................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 277.00 515.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 286.70 515.53 Td (1,125,746) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 336.00 515.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 352.30 515.48 Td (201,905) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 395.00 515.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 411.30 515.48 Td (193,894) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 454.00 515.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 470.35 515.53 Td (194,922) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 513.00 515.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 529.35 515.53 Td (144,983) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.00 502.48 Td (Total expenses) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 108.70 502.93 Td (.........................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 290.70 502.53 Td (\(789,336) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 322.30 502.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 349.70 502.53 Td (\(940,908) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 381.30 502.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 408.70 502.53 Td (\(947,477) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 440.30 502.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 461.00 502.53 Td (\(1,107,062) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 499.30 502.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 526.70 502.53 Td (\(790,603) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 558.30 502.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.00 489.48 Td (Total other income \(loss\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 142.05 489.93 Td (..........................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 293.35 489.53 Td (272,212) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 349.70 489.53 Td (\(776,410) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 381.30 489.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 404.70 489.53 Td (2,947,671) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 463.70 489.53 Td (7,149,104) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 522.70 489.53 Td (7,348,895) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.00 474.48 Td (Income \(loss\) before income taxes) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 177.60 474.93 Td (..........................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 293.35 474.53 Td (608,622) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 343.00 474.53 Td (\(1,515,413) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 381.30 474.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 404.70 474.53 Td (2,194,088) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 463.70 474.53 Td (6,236,964) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 522.70 474.53 Td (6,703,275) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.00 461.48 Td (Income taxes) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 102.05 461.93 Td (............................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 295.15 461.53 Td (\(42,519) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 322.30 461.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 354.15 461.48 Td (\(17,549) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 381.30 461.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 413.15 461.48 Td (\(18,536) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 440.30 461.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 472.15 461.48 Td (\(26,232) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 499.30 461.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 531.15 461.48 Td (\(30,858) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 558.30 461.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.00 446.48 Td (Net income \(loss\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 117.60 446.93 Td (.....................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 293.35 446.53 Td (566,103) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 343.00 446.53 Td (\(1,532,962) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 381.30 446.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 404.70 446.53 Td (2,175,552) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 463.70 446.53 Td (6,210,732) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 522.70 446.53 Td (6,672,417) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.00 433.48 Td (Less:) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 440.00 433.48 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 499.00 433.48 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 558.00 433.48 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 70.00 420.48 Td (Net \(income\) loss attributable to non-controlling interests) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 79.00 412.48 Td (in consolidated funds) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 157.60 412.93 Td (...................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 295.15 412.53 Td (\(22,921) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 322.30 412.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 345.70 412.53 Td (1,809,683) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 402.00 412.53 Td (\(1,649,890) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 440.30 412.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 461.00 412.53 Td (\(5,163,939) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 499.30 412.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 520.00 412.53 Td (\(6,016,342) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 558.30 412.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 70.00 399.48 Td (Net income attributable to non-controlling interests in) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 79.00 391.48 Td (consolidated subsidiaries) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 170.95 391.93 Td (.............................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 290.70 391.53 Td (\(348,477) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 322.30 391.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 349.70 391.53 Td (\(205,372) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 381.30 391.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 408.70 391.53 Td (\(399,379) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 440.30 391.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 467.70 391.53 Td (\(824,795) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 499.30 391.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 526.70 391.53 Td (\(548,265) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 558.30 391.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.00 376.48 Td (Net income attributable to OCG) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 166.50 376.93 Td (...............................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 277.00 376.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 293.35 376.53 Td (194,705) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 336.00 376.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 356.80 376.53 Td (71,349) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 395.00 376.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 411.30 376.48 Td (126,283) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 454.00 376.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 470.35 376.53 Td (221,998) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 513.00 376.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 529.35 376.53 Td (107,810) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.00 361.48 Td (Distributions declared per Class A unit ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 188.75 361.93 Td (.....................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 277.00 361.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 306.70 361.53 Td (2.25) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 336.00 361.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 365.70 361.53 Td (2.10) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 395.00 361.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 424.70 361.53 Td (3.15) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 454.00 361.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 483.70 361.53 Td (4.71) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 513.00 361.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 542.70 361.53 Td (2.31) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.00 346.48 Td (Net income per Class A unit) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 153.15 346.93 Td (.....................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 277.00 346.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 306.70 346.53 Td (3.11) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 336.00 346.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 365.70 346.53 Td (1.45) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 395.00 346.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 424.70 346.53 Td (2.97) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 454.00 346.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 483.70 346.53 Td (6.35) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 513.00 346.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 542.70 346.53 Td (3.83) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.00 328.48 Td (Weighted average number of Class A units outstanding) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 248.75 328.93 Td (..........) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 297.80 328.53 Td (62,565) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 356.80 328.53 Td (49,324) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 415.80 328.53 Td (42,582) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 474.80 328.53 Td (34,979) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 533.80 328.53 Td (28,170) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 310.25 m 150.5 310.25 l s BT /F1 10.00 Tf ET BT /F3 8.00 Tf ET q 0 0 0 rg BT 50.00 301.15 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 72.50 301.15 Td (In the first quarter of 2016, Oaktree adopted the new consolidation and collateralized financing entity guidance under the modified ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 291.55 Td (retrospective approach. ) Tj ET Q q 0 0 0 rg BT 160.40 291.55 Td (The modified retrospective approach did not require prior periods to be recast. ) Tj ET Q q 0 0 0 rg BT 440.85 291.55 Td (The adoption resulted in the ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 281.95 Td (deconsolidation of substantially all of Oaktree’) Tj ET Q q 0 0 0 rg BT 234.67 281.95 Td (s investment funds.) Tj ET Q endstream endobj 149 0 obj <> endobj 150 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (74) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 732.5 m 325.5 732.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325.5 732.5 m 333.5 732.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 732.5 m 384.5 732.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 732.5 m 392.5 732.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 732.5 m 443.5 732.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 732.5 m 451.5 732.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451.5 732.5 m 502.5 732.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 732.5 m 510.5 732.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510.5 732.5 m 561.5 732.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 732.5 m 325.5 732.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 716.5 m 325.5 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325.5 732.5 m 333.5 732.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 732.5 m 384.5 732.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 716.5 m 384.5 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 732.5 m 392.5 732.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 732.5 m 443.5 732.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 716.5 m 443.5 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 732.5 m 451.5 732.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451.5 732.5 m 502.5 732.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451.5 716.5 m 502.5 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 732.5 m 510.5 732.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510.5 732.5 m 561.5 732.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510.5 716.5 m 561.5 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 586.5 m 325.5 586.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 586.5 m 325.5 586.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 573.5 m 325.5 573.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 586.5 m 384.5 586.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 573.5 m 384.5 573.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 586.5 m 443.5 586.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 573.5 m 443.5 573.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451.5 586.5 m 502.5 586.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451.5 573.5 m 502.5 573.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510.5 586.5 m 561.5 586.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510.5 573.5 m 561.5 573.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 573.5 m 325.5 573.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 573.5 m 384.5 573.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 573.5 m 443.5 573.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 508.5 m 325.5 508.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 508.5 m 384.5 508.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 508.5 m 325.5 508.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 495.5 m 325.5 495.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 508.5 m 384.5 508.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 495.5 m 384.5 495.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 508.5 m 443.5 508.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 495.5 m 443.5 495.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451.5 508.5 m 502.5 508.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451.5 495.5 m 502.5 495.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510.5 508.5 m 561.5 508.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510.5 495.5 m 561.5 495.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 495.5 m 325.5 495.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 495.5 m 384.5 495.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 495.5 m 443.5 495.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 469.5 m 325.5 469.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 469.5 m 384.5 469.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 469.5 m 325.5 469.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 454.5 m 325.5 454.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 452.5 m 325.5 452.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 469.5 m 384.5 469.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 454.5 m 384.5 454.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 452.5 m 384.5 452.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 469.5 m 443.5 469.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 454.5 m 443.5 454.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 452.5 m 443.5 452.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451.5 469.5 m 502.5 469.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451.5 454.5 m 502.5 454.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451.5 452.5 m 502.5 452.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510.5 469.5 m 561.5 469.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510.5 454.5 m 561.5 454.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510.5 452.5 m 561.5 452.5 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 348.70 736.50 Td (As of or for the Year Ended December 31,) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 291.70 720.50 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 350.70 720.50 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 409.70 720.50 Td (2014) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 468.70 720.50 Td (2013) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 527.70 720.50 Td (2012) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 341.80 708.90 Td (\(in thousands, except as otherwise indicated\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 696.73 Td (Consolidated Statements of Financial Condition Data: ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 258.68 700.54 Td (\(1\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 277.00 696.73 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 336.00 696.73 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 395.00 696.73 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 454.00 696.73 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 513.00 696.73 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.00 683.73 Td (Total assets) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 97.60 684.18 Td (..............................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 277.00 683.73 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 286.70 683.78 Td (7,649,110) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 336.00 683.73 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 341.25 683.78 Td (51,762,731) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 395.00 683.73 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 400.25 683.78 Td (53,320,716) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 454.00 683.73 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 459.25 683.78 Td (45,243,708) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 513.00 683.73 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 518.25 683.78 Td (43,858,921) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.00 670.73 Td (Debt obligations) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 113.15 671.18 Td (.......................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 286.70 670.78 Td (4,284,063) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 345.70 670.78 Td (9,619,455) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 404.70 670.78 Td (7,133,041) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 463.70 670.78 Td (2,857,099) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 522.70 670.78 Td (1,095,727) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.00 657.73 Td (Non-controlling redeemable interests in consolidated funds) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 262.10 658.18 Td (....) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 293.35 657.78 Td (344,047) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 341.25 657.78 Td (38,173,125) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 400.25 657.78 Td (41,681,155) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 459.25 657.78 Td (38,834,831) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 518.25 657.78 Td (39,670,831) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 629.73 Td (Segment Statements of Operations: ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 190.25 633.54 Td (\(2\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 440.00 629.73 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 499.00 629.73 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 558.00 629.73 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.00 616.73 Td (Management fees) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 119.85 617.18 Td (....................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 277.00 616.73 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 293.35 616.78 Td (785,673) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 336.00 616.73 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 352.30 616.73 Td (753,805) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 395.00 616.73 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 411.30 616.73 Td (762,823) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 454.00 616.73 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 470.35 616.78 Td (749,901) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 513.00 616.73 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 529.35 616.78 Td (747,440) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.00 603.73 Td (Incentive income) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 115.40 604.18 Td (......................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 293.35 603.78 Td (355,152) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 352.30 603.73 Td (263,806) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 411.30 603.73 Td (491,402) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 463.70 603.78 Td (1,030,195) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 529.35 603.78 Td (461,116) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.00 590.73 Td (Investment income) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 122.05 591.18 Td (...................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 293.35 590.78 Td (221,377) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 356.80 590.78 Td (48,253) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 411.30 590.73 Td (117,662) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 470.35 590.78 Td (258,654) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 529.35 590.78 Td (202,392) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 70.00 577.73 Td (Total segment revenues) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 157.60 578.18 Td (...................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 286.70 577.78 Td (1,362,202) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 345.70 577.78 Td (1,065,864) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 404.70 577.78 Td (1,371,887) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 463.70 577.78 Td (2,038,750) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 522.70 577.78 Td (1,410,948) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.00 564.73 Td (Compensation and benefits) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 150.95 565.18 Td (......................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 290.70 564.78 Td (\(381,937) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 322.30 564.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 349.70 564.78 Td (\(404,442) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 381.30 564.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 408.70 564.78 Td (\(379,360) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 440.30 564.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 467.70 564.78 Td (\(365,306) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 499.30 564.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 526.70 564.78 Td (\(329,741) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 558.30 564.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.00 551.73 Td (Equity-based compensation) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 153.15 552.18 Td (.....................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 295.15 551.78 Td (\(51,759) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 322.30 551.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 354.15 551.73 Td (\(37,978) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 381.30 551.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 413.15 551.73 Td (\(19,705) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 440.30 551.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 476.60 551.78 Td (\(3,828) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 499.30 551.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 542.25 551.78 Td (\(318) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 558.30 551.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.00 538.73 Td (Incentive income compensation) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 166.50 539.18 Td (...............................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 290.70 538.78 Td (\(169,683) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 322.30 538.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 349.70 538.78 Td (\(141,822) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 381.30 538.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 408.70 538.78 Td (\(231,871) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 440.30 538.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 467.70 538.78 Td (\(436,217) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 499.30 538.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 526.70 538.78 Td (\(222,594) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 558.30 538.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.00 525.73 Td (General and administrative) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 150.95 526.18 Td (......................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 290.70 525.78 Td (\(123,784) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 322.30 525.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 349.70 525.78 Td (\(120,783) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 381.30 525.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 408.70 525.78 Td (\(127,954) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 440.30 525.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 467.70 525.78 Td (\(117,361) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 499.30 525.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 526.70 525.78 Td (\(102,685) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 558.30 525.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.00 512.73 Td (Depreciation and amortization) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 159.85 513.18 Td (..................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 295.15 512.78 Td (\(12,219) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 322.30 512.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 354.15 512.73 Td (\(10,018) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 381.30 512.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 417.55 512.73 Td (\(7,249) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 440.30 512.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 476.60 512.78 Td (\(7,119) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 499.30 512.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 535.60 512.78 Td (\(7,397) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 558.30 512.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 70.00 499.73 Td (Total expenses) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 126.50 500.18 Td (.................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 290.70 499.78 Td (\(739,382) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 322.30 499.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 349.70 499.78 Td (\(715,043) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 381.30 499.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 408.70 499.78 Td (\(766,139) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 440.30 499.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 467.70 499.78 Td (\(929,831) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 499.30 499.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 526.70 499.78 Td (\(662,735) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 558.30 499.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.00 486.73 Td (Interest expense, net of interest income ) Tj ET Q BT /F3 8.00 Tf ET BT /F3 5.20 Tf ET q 0 0 0 rg BT 194.30 490.54 Td (\(3\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 200.66 486.73 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 202.05 487.18 Td (...............................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 295.15 486.78 Td (\(31,845) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 322.30 486.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 354.15 486.73 Td (\(35,032) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 381.30 486.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 413.15 486.73 Td (\(30,190) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 440.30 486.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 472.15 486.73 Td (\(28,621) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 499.30 486.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 531.15 486.73 Td (\(31,730) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 558.30 486.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.00 473.73 Td (Other income \(expense\), net) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 155.40 474.18 Td (....................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 299.60 473.78 Td (\(8,392) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 322.30 473.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 358.55 473.73 Td (\(3,927) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 381.30 473.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 417.55 473.73 Td (\(2,431) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 440.30 473.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 485.95 473.78 Td (409) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 544.95 473.78 Td (767) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.00 457.73 Td (Adjusted net income) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 126.50 458.18 Td (.................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 277.00 457.73 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 293.35 457.78 Td (582,583) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 336.00 457.73 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 352.30 457.73 Td (311,862) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 395.00 457.73 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 411.30 457.73 Td (573,127) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 454.00 457.73 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 463.70 457.78 Td (1,080,707) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 513.00 457.73 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 529.35 457.78 Td (717,250) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 429.73 Td (Segment Statements of Financial Condition Data: ) Tj ET Q BT /F2 8.00 Tf ET BT /F2 5.20 Tf ET q 0 0 0 rg BT 241.80 433.54 Td (\(2\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 277.00 429.73 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 336.00 429.73 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 395.00 429.73 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 454.00 429.73 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 513.00 429.73 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.00 416.73 Td (Cash and cash-equivalents) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 150.95 417.18 Td (......................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 277.00 416.73 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 293.35 416.78 Td (291,470) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 336.00 416.73 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 352.30 416.73 Td (476,046) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 395.00 416.73 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 411.30 416.73 Td (405,290) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 454.00 416.73 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 470.35 416.78 Td (390,721) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 513.00 416.73 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 529.35 416.78 Td (458,191) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.00 403.73 Td (U.S. Treasury, government agency and time deposit) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 61.00 395.73 Td (securities) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 97.60 396.18 Td (..............................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 293.35 395.78 Td (757,578) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 352.30 395.73 Td (661,116) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 411.30 395.73 Td (655,529) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 470.35 395.78 Td (676,600) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 529.35 395.78 Td (370,614) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.00 382.73 Td (Corporate investments) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 135.40 383.18 Td (.............................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 286.70 382.78 Td (1,480,928) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 345.70 382.78 Td (1,434,109) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 404.70 382.78 Td (1,515,443) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 463.70 382.78 Td (1,197,173) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 522.70 382.78 Td (1,115,952) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.00 369.73 Td (Total assets) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 97.60 370.18 Td (..............................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 286.70 369.78 Td (3,313,714) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 345.70 369.78 Td (3,254,082) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 404.70 369.78 Td (3,263,382) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 463.70 369.78 Td (2,811,136) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 522.70 369.78 Td (2,352,227) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.00 356.73 Td (Debt obligations) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 113.15 357.18 Td (.......................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 293.35 356.78 Td (745,897) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 352.30 356.73 Td (846,354) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 411.30 356.73 Td (845,583) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 470.35 356.78 Td (573,473) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 529.35 356.78 Td (607,858) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.00 343.73 Td (Total liabilities) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 104.30 344.18 Td (...........................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 286.70 343.78 Td (1,445,891) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 345.70 343.78 Td (1,572,185) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 404.70 343.78 Td (1,544,993) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 463.70 343.78 Td (1,120,886) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 529.35 343.78 Td (958,334) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.00 330.73 Td (Total unitholders’ capital) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 139.85 331.18 Td (...........................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 286.70 330.78 Td (1,867,823) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 345.70 330.78 Td (1,681,897) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 404.70 330.78 Td (1,718,389) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 463.70 330.78 Td (1,690,250) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 522.70 330.78 Td (1,393,893) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 312.73 Td (Operating Metrics:) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 322.00 312.73 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 381.00 312.73 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 440.00 312.73 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 499.00 312.73 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 558.00 312.73 Td ( ) Tj ET Q BT /F5 8.00 Tf ET q 0 0 0 rg BT 52.00 299.68 Td (Assets under management \(in millions\):) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 70.00 286.73 Td (Assets under management) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 168.75 287.18 Td (..............................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 277.00 286.73 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 293.35 286.78 Td (100,504) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 336.00 286.73 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 356.80 286.78 Td (97,359) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 395.00 286.73 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 415.80 286.78 Td (90,831) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 454.00 286.73 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 474.80 286.78 Td (83,605) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 513.00 286.73 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 533.80 286.78 Td (77,051) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 70.00 273.73 Td (Management fee-generating assets under management) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 268.75 274.18 Td (.) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 297.80 273.78 Td (79,767) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 356.80 273.78 Td (78,897) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 415.80 273.78 Td (78,079) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 474.80 273.78 Td (71,950) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 533.80 273.78 Td (66,784) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 70.00 260.73 Td (Incentive-creating assets under management) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 230.95 261.18 Td (..................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 297.80 260.78 Td (33,627) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 356.80 260.78 Td (31,923) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 415.80 260.78 Td (33,861) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 474.80 260.78 Td (32,379) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 533.80 260.78 Td (33,989) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 70.00 247.73 Td (Uncalled capital commitments ) Tj ET Q BT /F3 8.00 Tf ET BT /F3 5.20 Tf ET q 0 0 0 rg BT 178.48 251.54 Td (\(4\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 184.84 247.73 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 186.50 248.18 Td (......................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 297.80 247.78 Td (20,755) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 356.80 247.78 Td (21,650) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 415.80 247.78 Td (10,333) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 474.80 247.78 Td (13,169) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 533.80 247.78 Td (11,201) Tj ET Q BT /F5 8.00 Tf ET q 0 0 0 rg BT 52.00 234.68 Td (Accrued incentives \(fund level\): ) Tj ET Q BT /F5 8.00 Tf ET BT /F5 5.20 Tf ET q 0 0 0 rg BT 165.39 238.49 Td (\(5\)) Tj ET Q BT /F5 8.00 Tf ET q 0 0 0 rg BT 171.74 234.68 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 70.00 221.73 Td (Incentives created \(fund level\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 179.85 222.18 Td (.........................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 293.35 221.78 Td (784,032) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 349.70 221.78 Td (\(100,384) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 381.30 221.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 411.30 221.73 Td (164,370) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 463.70 221.78 Td (1,168,836) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 529.35 221.78 Td (911,947) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 70.00 208.73 Td (Incentives created \(fund level\), net of associated) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 79.00 200.73 Td (incentive income compensation expense) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 224.30 201.18 Td (.....................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 293.35 200.78 Td (320,472) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 354.15 200.73 Td (\(66,399) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 381.30 200.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 415.80 200.78 Td (24,228) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 470.35 200.78 Td (549,545) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 529.35 200.78 Td (493,005) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 70.00 187.73 Td (Accrued incentives \(fund level\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 182.05 188.18 Td (........................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 286.70 187.78 Td (2,014,097) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 345.70 187.78 Td (1,585,217) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 404.70 187.78 Td (1,949,407) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 463.70 187.78 Td (2,276,439) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 522.70 187.78 Td (2,137,798) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 70.00 174.73 Td (Accrued incentives \(fund level\), net of associated) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 79.00 166.73 Td (incentive income compensation expense) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 224.30 167.18 Td (.....................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 293.35 166.78 Td (946,542) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 352.30 166.73 Td (811,540) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 411.30 166.73 Td (999,923) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 463.70 166.78 Td (1,235,226) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 522.70 166.78 Td (1,282,194) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 148.5 m 149.5 148.5 l s BT /F1 10.00 Tf ET BT /F3 8.00 Tf ET q 0 0 0 rg BT 50.00 139.40 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 72.50 139.40 Td (In the first quarter of 2016, Oaktree adopted the new consolidation and collateralized financing entity guidance under the modified ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 129.80 Td (retrospective approach. ) Tj ET Q q 0 0 0 rg BT 160.40 129.80 Td (The modified retrospective approach did not require prior periods to be recast. ) Tj ET Q q 0 0 0 rg BT 440.85 129.80 Td (The adoption resulted in the ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 120.20 Td (deconsolidation of substantially all of Oaktree’) Tj ET Q q 0 0 0 rg BT 234.67 120.20 Td (s investment funds.) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 50.00 110.60 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 59.78 110.60 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 110.60 Td (Our business is comprised of one segment, our investment management segment, which consists of the investment management ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 101.00 Td (services that we provide to our clients. ) Tj ET Q q 0 0 0 rg BT 212.42 101.00 Td (The components of revenues and expenses used in determining adjusted net income do not give ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 91.40 Td (ef) Tj ET Q q 0 0 0 rg BT 79.03 91.40 Td (fect to the consolidation of the funds that we manage. Segment revenues include investment income \(loss\) that is classified in other ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 81.80 Td (income \(loss\) in the GAAP-basis statements of operations. Segment revenues and expenses also reflect Oaktree’) Tj ET Q q 0 0 0 rg BT 476.56 81.80 Td (s proportionate ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 72.20 Td (economic interest in Highstar) Tj ET Q q 0 0 0 rg BT 175.21 72.20 Td (, whereby amounts received for contractually reimbursable costs are classified for segment reporting as ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 62.60 Td (expenses and under GAAP) Tj ET Q q 0 0 0 rg BT 169.31 62.60 Td ( as other income. In addition, adjusted net income excludes the ef) Tj ET Q q 0 0 0 rg BT 403.97 62.60 Td (fect of \(a\) non-cash equity-based ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 53.00 Td (compensation expense related to unit grants made before our initial public of) Tj ET Q q 0 0 0 rg BT 343.19 53.00 Td (fering, \(b\) acquisition-related items, including amortization of ) Tj ET Q endstream endobj 151 0 obj <> endobj 152 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (75) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 743.20 Td (intangibles and changes in the contingent consideration liability) Tj ET Q q 0 0 0 rg BT 295.17 743.20 Td (, \(c\) dif) Tj ET Q q 0 0 0 rg BT 319.47 743.20 Td (ferences arising from OCGH equity value units that are classified as ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 733.60 Td (liability awards under GAAP) Tj ET Q q 0 0 0 rg BT 171.51 733.60 Td ( but as equity awards for segment reporting, \(d\) income taxes, \(e\) other income or expenses applicable to ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 724.00 Td (OCG or its Intermediate Holding Companies, and \(f\) the adjustment for non-controlling interests. Moreover) Tj ET Q q 0 0 0 rg BT 450.01 724.00 Td (, third-party placement costs ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 714.40 Td (associated with closed-end funds under GAAP) Tj ET Q q 0 0 0 rg BT 237.34 714.40 Td ( are expensed as incurred, but for adjusted net income are capitalized and amortized as ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 704.80 Td (general and administrative expense in proportion to the associated management fee stream. Gains and losses resulting from foreign-) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 695.20 Td (currency transactions and hedging activities under GAAP) Tj ET Q q 0 0 0 rg BT 274.69 695.20 Td ( are recognized as general and administrative expense whether realized or ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 685.60 Td (unrealized in the current period, but for adjusted net income unrealized gains and losses from foreign-currency hedging activities are ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 676.00 Td (deferred until realized, at which time they are included in the same revenue or expense line item as the underlying exposure that was ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 666.40 Td (hedged. ) Tj ET Q q 0 0 0 rg BT 105.42 666.40 Td (Additionally) Tj ET Q q 0 0 0 rg BT 145.74 666.40 Td (, for adjusted net income, foreign-currency transaction gains and losses are included in other income \(expense\), net. ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 656.80 Td (Incentive income and incentive income compensation expense are included in adjusted net income when the underlying fund distributions ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 647.20 Td (are known or knowable as of the respective quarter end, which may be later than the time at which the same revenue or expense is ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 637.60 Td (included in the GAAP-basis statements of operations, for which the revenue standard is fixed or determinable and the expense standard is ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 628.00 Td (probable and reasonably estimable. CLO investments are carried at fair value for GAAP) Tj ET Q q 0 0 0 rg BT 384.96 628.00 Td ( reporting, whereas for segment reporting they ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 618.40 Td (are carried at amortized cost, subject to any impairment charges. Investment income on CLO investments is recognized in adjusted net ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 608.80 Td (income when cash distributions are received. Cash distributions are allocated between income and return of capital based on the ef) Tj ET Q q 0 0 0 rg BT 538.85 608.80 Td (fective ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 599.20 Td (yield method. ) Tj ET Q q 0 0 0 rg BT 124.09 599.20 Td (Adjusted net income is calculated at the Operating Group level. For additional information regarding these reconciling ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 589.60 Td (adjustments, as well as reconciliations of segment total assets to consolidated total assets, please see the “Segment Reporting” note to ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 580.00 Td (our consolidated financial statements included elsewhere in this annual report. ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 50.00 570.40 Td (\(3\) ) Tj ET Q q 0 0 0 rg BT 72.50 570.40 Td (Interest income was $6.6 million, $5.1 million, $3.6 million, $3.2 million and $2.6 million for the years ended December 31, 2016, 2015, ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 560.80 Td (2014, 2013 and 2012, respectively) Tj ET Q q 0 0 0 rg BT 194.22 560.80 Td (.) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 50.00 551.20 Td (\(4\) ) Tj ET Q q 0 0 0 rg BT 72.50 551.20 Td (Uncalled capital commitments represent undrawn capital commitments by partners \(including Oaktree as general partner\) of our closed-) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 541.60 Td (end funds in their investment periods and certain evergreen funds. If a fund distributes capital during its investment period, that capital is ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 532.00 Td (typically subject to possible recall, in which case it is included in uncalled capital commitments. ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 50.00 522.40 Td (\(5\) ) Tj ET Q q 0 0 0 rg BT 72.50 522.40 Td (Our funds record as accrued incentives the incentive income that would be paid to us if the funds were liquidated at their reported values ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 512.80 Td (as of the date of the financial statements. Incentives created \(fund level\) refers to the gross amount of potential incentives generated by ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 503.20 Td (the funds during the period. W) Tj ET Q q 0 0 0 rg BT 181.75 503.20 Td (e refer to the amount of incentive income recognized as revenue by us as segment incentive income. ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 493.60 Td (Amounts recognized by us as incentive income are no longer included in accrued incentives \(fund level\), the term we use for remaining ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 484.00 Td (fund-level accruals. Incentives created \(fund level\), incentive income and accrued incentives \(fund level\) are presented gross, without ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 474.40 Td (deduction for direct compensation expense that is owed to our investment professionals associated with the particular fund when we earn ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 464.80 Td (the incentive income. W) Tj ET Q q 0 0 0 rg BT 159.50 464.80 Td (e call that charge “incentive income compensation expense.” Incentive income compensation expense varies by ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.50 455.20 Td (the investment strategy and vintage of the particular fund, among many factors.) Tj ET Q endstream endobj 153 0 obj <> endobj 154 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (76) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Item 7. Management’) Tj ET Q q 0 0 0 rg BT 147.99 741.75 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 232.64 741.75 Td (Analysis of Financial Condition and Results of Operations ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 86.00 725.25 Td (The following discussion and analysis should be read in conjunction with the consolidated financial ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 713.25 Td (statements of Oaktree Capital Group, LLC and the related notes included within this annual report. This discussion ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 701.25 Td (contains forward-looking statements that are subject to risks and uncertainties and assumptions relating to our ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 689.25 Td (operations, financial results, financial condition, business prospects, growth strategy and liquidity) Tj ET Q q 0 0 0 rg BT 476.16 689.25 Td (. The factors listed ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 677.25 Td (under “Risk Factors” and “Forward-Looking Statements” in this annual report provide examples of risks, ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 665.25 Td (uncertainties and events that may cause our actual results to differ materially from the expectations described in ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 653.25 Td (any forward-looking statements. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 632.25 Td (Business Overview ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 611.25 Td (Oaktree is a leader among global investment managers specializing in alternative investments, with ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 527.89 611.25 Td ($100.5 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 599.25 Td (billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 75.57 599.25 Td ( in ) Tj ET Q q 0 0 0 rg BT 88.36 599.25 Td (AUM as of December 31, 2016. Our mission is to deliver superior investment results with risk under ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 587.25 Td (control and to conduct our business with the highest integrity) Tj ET Q q 0 0 0 rg BT 317.19 587.25 Td (. W) Tj ET Q q 0 0 0 rg BT 334.79 587.25 Td (e emphasize an opportunistic, value-oriented and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 575.25 Td (risk-controlled approach to investments in distressed debt, corporate debt \(including high yield debt and senior ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 563.25 Td (loans\), control investing, convertible securities, real estate and listed equities. Over more than three decades, we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 551.25 Td (have developed a large and growing client base through our ability to identify and capitalize on opportunities for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 539.25 Td (attractive investment returns in less ef) Tj ET Q q 0 0 0 rg BT 217.67 539.25 Td (ficient markets. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 520.25 Td (W) Tj ET Q q 0 0 0 rg BT 95.26 520.25 Td (e manage assets on behalf of many of the most significant institutional investors in the world. Our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 508.25 Td (clientele includes 75 of the 100 largest U.S. pension plans, 38 states in the United States, over 400 corporations ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 496.25 Td (and/or their pension funds, over 350 university) Tj ET Q q 0 0 0 rg BT 254.38 496.25 Td (, charitable and other endowments and foundations, 16 sovereign ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 484.25 Td (wealth funds, and over 350 other non-U.S. institutional investors. ) Tj ET Q q 0 0 0 rg BT 341.28 484.25 Td (As measured by ) Tj ET Q q 0 0 0 rg BT 415.76 484.25 Td (AUM, over 40% of our clients ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 472.25 Td (are invested in two or three dif) Tj ET Q q 0 0 0 rg BT 183.78 472.25 Td (ferent investment strategies, and over 35% are invested in four or more. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 460.25 Td (Headquartered in Los ) Tj ET Q q 0 0 0 rg BT 148.40 460.25 Td (Angeles, we serve these clients with over 900 employees and of) Tj ET Q q 0 0 0 rg BT 432.27 460.25 Td (fices in 18 cities worldwide. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 441.25 Td (Our business is comprised of one segment, our investment management segment, which consists of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 429.25 Td (investment management services that we provide to our clients. Our segment revenue flows from the management ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 417.25 Td (fees and incentive income generated by the funds that we manage, as well as the investment income earned from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 405.25 Td (the investments we make in our funds, third-party funds and other companies. ) Tj ET Q q 0 0 0 rg BT 400.00 405.25 Td (The management fees that we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 393.25 Td (receive are based on the contractual terms of the relevant fund and are typically calculated as a fixed percentage of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 381.25 Td (the capital commitments \(as adjusted for distributions during a fund’) Tj ET Q q 0 0 0 rg BT 348.86 381.25 Td (s liquidation period\), drawn capital, cost basis or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 369.25 Td (NA) Tj ET Q q 0 0 0 rg BT 63.15 369.25 Td (V of the particular fund. Incentive income represents our share \(typically 20%\) of the investors’) Tj ET Q q 0 0 0 rg BT 482.43 369.25 Td ( profits in most of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 357.25 Td (the closed-end and evergreen funds. Investment income reflects the investment return on a mark-to-market basis ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 345.25 Td (and our equity participation on the amounts that we invest in Oaktree and third-party funds, as well as in CLOs and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 333.25 Td (other companies. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 312.25 Td (Business Environment and Developments ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 291.25 Td (As a global investment manager) Tj ET Q q 0 0 0 rg BT 228.30 291.25 Td (, we are af) Tj ET Q q 0 0 0 rg BT 274.81 291.25 Td (fected by myriad factors, including the condition of the global ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 279.25 Td (economy and financial markets; the relative attractiveness of our investment strategies and investors’) Tj ET Q q 0 0 0 rg BT 496.51 279.25 Td ( demand for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 267.25 Td (them; and regulatory or other governmental policies or actions. Global economic conditions can significantly af) Tj ET Q q 0 0 0 rg BT 539.52 267.25 Td (fect ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 255.25 Td (the values of our funds’) Tj ET Q q 0 0 0 rg BT 153.03 255.25 Td ( investments and our ability to make new investments or sell existing investments for our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 243.25 Td (funds. Historically) Tj ET Q q 0 0 0 rg BT 130.40 243.25 Td (, however) Tj ET Q q 0 0 0 rg BT 173.20 243.25 Td (, the diversified nature of both our array of investment strategies and our revenue mix ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 231.25 Td (has generally allowed us to benefit from both strong and weak economic environments. W) Tj ET Q q 0 0 0 rg BT 450.59 231.25 Td (eak economies and the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 219.25 Td (declining financial markets that typically accompany them tend to dampen our revenues from asset-based ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 207.25 Td (management fees, investment realizations or price appreciation, but their prospect can present us with ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 195.25 Td (opportunities to raise relatively larger amounts of capital for certain strategies, especially Distressed Debt. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 183.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 100.40 183.25 Td (, weak financial markets may also present us with more opportunities to make investments for our funds ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 171.25 Td (at reduced prices. Conversely) Tj ET Q q 0 0 0 rg BT 184.32 171.25 Td (, strong financial markets generally increase the value of our funds’) Tj ET Q q 0 0 0 rg BT 480.22 171.25 Td ( investments, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 159.25 Td (which positions us for growth in management fees that are based on asset value, and typically create favorable exit ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 147.25 Td (opportunities that enhance the prospect for incentive income and fund-related investment income proceeds. ) Tj ET Q q 0 0 0 rg BT 531.22 147.25 Td (Those ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 135.25 Td (same markets may delay or diminish opportunities to deploy capital and thus management fees from certain of our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 123.25 Td (funds.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 102.25 Td (Most major financial markets gained in 2016, as the world economy) Tj ET Q q 0 0 0 rg BT 383.74 102.25 Td (, led by the U.S., continued its long and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 90.25 Td (uneven recovery from the Global Financial Crisis. ) Tj ET Q q 0 0 0 rg BT 273.80 90.25 Td (The November U.S. election of President Donald ) Tj ET Q q 0 0 0 rg BT 492.62 90.25 Td (T) Tj ET Q q 0 0 0 rg BT 498.35 90.25 Td (rump, coupled ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 78.25 Td (with the Republican Party’) Tj ET Q q 0 0 0 rg BT 165.43 78.25 Td (s control of both the U.S. Senate and House of Representatives, created expectations of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 66.25 Td (fiscal stimulus and other actions considered by many as likely catalysts for increased economic growth. During ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 54.25 Td (2016 the S&P) Tj ET Q q 0 0 0 rg BT 111.53 54.25 Td ( 500 Index and Russell 2000 Index returned 12.0% and 21.3%, respectively) Tj ET Q q 0 0 0 rg BT 444.90 54.25 Td (. Non-U.S. equities, as ) Tj ET Q endstream endobj 155 0 obj <> endobj 156 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (77) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (measured by the MSCI ) Tj ET Q q 0 0 0 rg BT 154.49 741.75 Td (ACWI ex-USA) Tj ET Q q 0 0 0 rg BT 217.28 741.75 Td ( Index, advanced 5.0% for the year) Tj ET Q q 0 0 0 rg BT 371.83 741.75 Td (. European equities, as measured by the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (MSCI Europe Index, gained 0.2%, while emerging market equities rose 1) Tj ET Q q 0 0 0 rg BT 371.65 729.75 Td (1.6%, as measured by the MSCI Emerging ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (Markets Index. U.S. high yield bonds, as measured by the Citigroup U.S. High ) Tj ET Q q 0 0 0 rg BT 399.99 717.75 Td (Y) Tj ET Q q 0 0 0 rg BT 406.29 717.75 Td (ield Cash-Pay Capped Index, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 705.75 Td (gained 17.3%, and emerging market bonds rose 16.1%, as measured by the JP) Tj ET Q q 0 0 0 rg BT 402.25 705.75 Td ( Morgan Corporate Emerging ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 693.75 Td (Markets Bond Index \(CEMBI\) High ) Tj ET Q q 0 0 0 rg BT 205.99 693.75 Td (Y) Tj ET Q q 0 0 0 rg BT 212.29 693.75 Td (ield. ) Tj ET Q q 0 0 0 rg BT 236.01 693.75 Td (The 10-year U.S. ) Tj ET Q q 0 0 0 rg BT 314.75 693.75 Td (T) Tj ET Q q 0 0 0 rg BT 320.48 693.75 Td (reasury yield finished 2016 at 2.45%, barely up from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 681.75 Td (2.27% at the beginning of the year) Tj ET Q q 0 0 0 rg BT 201.78 681.75 Td (, but 85 basis points higher for the fourth quarter) Tj ET Q q 0 0 0 rg BT 414.69 681.75 Td (, reflecting heightened growth ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 669.75 Td (expectations following the November election and the U.S. Federal Reserve’) Tj ET Q q 0 0 0 rg BT 387.78 669.75 Td (s decision in December to increase ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 657.75 Td (short-term interest rates by 25 basis points.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 636.75 Td (Against this backdrop, our incentive-creating closed-end funds delivered an overall blended gross return for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 624.75 Td (the year of 14.5%. ) Tj ET Q q 0 0 0 rg BT 136.17 624.75 Td (As of December 31, 2016, our ) Tj ET Q q 0 0 0 rg BT 271.80 624.75 Td (AUM was ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 317.36 624.75 Td ($100.5 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 376.30 624.75 Td ( and management fee-generating ) Tj ET Q q 0 0 0 rg BT 526.41 624.75 Td (AUM ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 612.75 Td (was ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 70.56 612.75 Td ($79.8 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 123.94 612.75 Td (. Company-wide gross capital raised in 2016 was ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 346.82 612.75 Td ($1) Tj ET Q q 0 0 0 rg BT 357.20 612.75 Td (1.6 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 399.45 612.75 Td (, and uncalled capital commitments ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 600.75 Td (at year-end were ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 127.82 600.75 Td ($20.8 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 181.19 600.75 Td (. Of these commitments, $13.5 billion were not yet generating management fees \(so-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 588.75 Td (called “shadow ) Tj ET Q q 0 0 0 rg BT 118.93 588.75 Td (AUM”\). ) Tj ET Q q 0 0 0 rg BT 155.97 588.75 Td (The largest portion of the shadow ) Tj ET Q q 0 0 0 rg BT 306.62 588.75 Td (AUM, at $8.0 billion, was represented by Oaktree ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 576.75 Td (Opportunities Fund Xb \(“Opps Xb”\). Currently) Tj ET Q q 0 0 0 rg BT 253.23 576.75 Td (, we do not expect Opps Xb to start its investment period and thus ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 564.75 Td (begin generating management fees based on committed capital until sometime in 2018. ) Tj ET Q q 0 0 0 rg BT 442.46 564.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 492.86 564.75 Td (, we currently ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 552.75 Td (expect that the remaining $5.5 billion of shadow ) Tj ET Q q 0 0 0 rg BT 263.47 552.75 Td (AUM will start generating management fees on a very gradual ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 540.75 Td (basis.) Tj ET Q BT /F3 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 0 0 rg BT 76.12 540.75 Td ( ) Tj ET Q BT /F2 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 50.00 519.75 Td (Business Combinations) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 498.75 Td (In ) Tj ET Q q 0 0 0 rg BT 96.57 498.75 Td (August 2014, we completed the acquisition of Highstar) Tj ET Q q 0 0 0 rg BT 337.27 498.75 Td (, an investment management firm founded in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 486.75 Td (2000, which specializes in U.S. energy infrastructure, waste management and transportation. Ef) Tj ET Q q 0 0 0 rg BT 476.15 486.75 Td (fective ) Tj ET Q q 0 0 0 rg BT 507.28 486.75 Td (August ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 474.75 Td (2014, we consolidated the financial position and results of operations of the controlled Highstar entities, and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 462.75 Td (accounted for this transaction as a business combination. Please see note 3 to our consolidated financial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 450.75 Td (statements included elsewhere in this annual report.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 429.75 Td (Understanding Our Results—Consolidation of Oaktree Funds ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 408.75 Td (In February 2015, the Financial ) Tj ET Q q 0 0 0 rg BT 226.64 408.75 Td (Accounting Standards Board \(“F) Tj ET Q q 0 0 0 rg BT 368.94 408.75 Td (ASB”\) amended its consolidation guidance, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 396.75 Td (which changed the way a reporting entity should evaluate limited partnerships and similar entities for consolidation, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 384.75 Td (how a decision maker) Tj ET Q q 0 0 0 rg BT 147.08 384.75 Td (’) Tj ET Q q 0 0 0 rg BT 149.13 384.75 Td (s fees af) Tj ET Q q 0 0 0 rg BT 186.74 384.75 Td (fect the consolidation analysis, and how interests held by related parties af) Tj ET Q q 0 0 0 rg BT 515.64 384.75 Td (fect the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 372.75 Td (consolidation analysis. W) Tj ET Q q 0 0 0 rg BT 164.87 372.75 Td (e adopted this guidance as of January 1, 2016 under the modified retrospective ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 360.75 Td (approach, which did not require prior periods to be recast. In connection with the adoption, we reevaluated all of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 348.75 Td (our investment vehicles and other legal entities for consolidation and, as of January 1, 2016, deconsolidated ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 336.75 Td (substantially all of our previously consolidated investment funds because those funds, which had previously been ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 324.75 Td (evaluated as voting interest entities, became variable interest entities \(“VIEs”\) under the new consolidation ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 312.75 Td (guidance. W) Tj ET Q q 0 0 0 rg BT 108.18 312.75 Td (e are not the primary beneficiary of these VIEs because our fee arrangements are not deemed to be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 300.75 Td (variable interests, and we do not hold any other interests in those funds that are considered to be more than ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 288.75 Td (insignificant. ) Tj ET Q q 0 0 0 rg BT 110.41 288.75 Td (The deconsolidation resulted in a reduction in total consolidated assets, liabilities, non-controlling ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 276.75 Td (redeemable interests in consolidated funds and unitholders' capital as of January 1, 2016 of $45.7 billion, $7.6 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 264.75 Td (billion, $38.0 billion and $90.6 million, respectively) Tj ET Q q 0 0 0 rg BT 270.50 264.75 Td (. ) Tj ET Q q 0 0 0 rg BT 278.65 264.75 Td (There was no impact on retained earnings or net income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 252.75 Td (attributable to us. Please see note 2 to our consolidated financial statements included elsewhere in this annual ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 240.75 Td (report for more information.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 219.75 Td (Investment vehicles in which we have a significant investment, such as CLOs and certain Oaktree funds, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 207.75 Td (remain consolidated under GAAP) Tj ET Q q 0 0 0 rg BT 198.24 207.75 Td ( \(“consolidated funds”\). When a CLO or fund is consolidated, we reflect the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 195.75 Td (assets, liabilities, revenues, expenses and cash flows of the consolidated funds on a gross basis, and the majority ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 183.75 Td (of the economic interests in those consolidated funds, which are held by third-party investors, are reflected as debt ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 171.75 Td (obligations of CLOs or non-controlling interests in consolidated funds in the consolidated financial statements. ) Tj ET Q q 0 0 0 rg BT 539.73 171.75 Td (All of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 159.75 Td (the revenues earned by us as investment manager of the consolidated funds are eliminated in consolidation. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 147.75 Td (However) Tj ET Q q 0 0 0 rg BT 88.91 147.75 Td (, because the eliminated amounts are earned from and funded by third-party investors, the consolidation of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 135.75 Td (a fund does not impact net income or loss attributable to us.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 114.75 Td (Management makes operating decisions and assesses business performance based on financial and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 102.75 Td (operating metrics and data that are presented without the consolidation of any funds. Note 20 to our consolidated ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 90.75 Td (financial statements included elsewhere in this annual report includes information regarding our segment on a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 78.75 Td (stand-alone basis. For a more detailed discussion of the factors that af) Tj ET Q q 0 0 0 rg BT 363.88 78.75 Td (fect the results of operations of our segment, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 66.75 Td (please see “—Segment ) Tj ET Q q 0 0 0 rg BT 156.73 66.75 Td (Analysis” below) Tj ET Q q 0 0 0 rg BT 225.65 66.75 Td (. ) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 231.21 66.75 Td ( ) Tj ET Q endstream endobj 157 0 obj <> endobj 158 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (78) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Revenues ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 720.75 Td (Our business generates three types of segment revenue: management fees, incentive income and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 708.75 Td (investment income. Management fees are billed monthly or quarterly based on annual rates and are typically ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 696.75 Td (earned for each of the funds that we manage. ) Tj ET Q q 0 0 0 rg BT 257.18 696.75 Td (The contractual terms of management fees generally vary by fund ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 684.75 Td (structure. Management fees also may include performance-based fees earned from certain open-end and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 672.75 Td (evergreen fund accounts. W) Tj ET Q q 0 0 0 rg BT 177.67 672.75 Td (e also have the opportunity to earn incentive income from most of our closed-end and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 660.75 Td (evergreen funds. Our closed-end funds generally provide that we receive incentive income only after our investors ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 648.75 Td (receive the return of all of their contributed capital plus an annual preferred return, typically 8%. Once this occurs, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 636.75 Td (we generally receive as incentive income 80% of all distributions otherwise attributable to our investors, and those ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 624.75 Td (investors receive the remaining 20% until we have received, as incentive income, 20% of all such distributions in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 612.75 Td (excess of the contributed capital from the inception of the fund. ) Tj ET Q q 0 0 0 rg BT 333.32 612.75 Td (Thereafter) Tj ET Q q 0 0 0 rg BT 378.90 612.75 Td (, all such future distributions attributable ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 600.75 Td (to our investors are distributed 80% to those investors and 20% to us as incentive income. Our third segment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 588.75 Td (revenue source, investment income, represents our pro-rata share of income or loss from our investments, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 576.75 Td (generally in our capacity as general partner in our funds and as an investor in our CLOs and third-party managed ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 564.75 Td (funds and companies. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 543.75 Td (Our consolidated revenues reflect the elimination of all management fees, incentive income and investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 531.75 Td (income earned by us as investment manager of our consolidated funds. Investment income is presented within the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 519.75 Td (other income \(loss\) section of our consolidated statements of operations. Please see “Business—Structure and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 507.75 Td (Operation of Our Business—Structure of Funds” in this annual report for a detailed discussion of the structure of our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 495.75 Td (funds. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 474.75 Td (Expenses ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 453.75 Td (Compensation and Benefits ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 432.75 Td (Compensation and benefits expense reflects all compensation-related items not directly related to incentive ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 420.75 Td (income, investment income or the vesting of OCGH and Class ) Tj ET Q q 0 0 0 rg BT 327.34 420.75 Td (A) Tj ET Q q 0 0 0 rg BT 333.46 420.75 Td ( units, and includes salaries, bonuses, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 408.75 Td (compensation based on management fees or a definition of profits, employee benefits, and phantom equity awards. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 396.75 Td (Phantom equity awards represent liability-classified awards subject to vesting and remeasurement at the end of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 384.75 Td (each reporting period. Phantom equity award expense reflects the vesting of those liability-classified awards, the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 372.75 Td (equity distribution declared in the period and changes in the Class ) Tj ET Q q 0 0 0 rg BT 344.08 372.75 Td (A) Tj ET Q q 0 0 0 rg BT 350.20 372.75 Td ( unit trading price.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 351.75 Td (Equity-based Compensation ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 330.75 Td (Equity-based compensation expense reflects the non-cash charge associated with grants of Class ) Tj ET Q q 0 0 0 rg BT 521.80 330.75 Td (A) Tj ET Q q 0 0 0 rg BT 527.92 330.75 Td ( units, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 318.75 Td (OCGH units, OCGH equity value units \(“EVUs”\) and deferred equity units. Our GAAP-basis statements of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 306.75 Td (operations include equity-based compensation expense for units granted both before and after our initial public ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 294.75 Td (of) Tj ET Q q 0 0 0 rg BT 58.16 294.75 Td (fering. Our segment measure of adjusted net income dif) Tj ET Q q 0 0 0 rg BT 307.55 294.75 Td (fers from GAAP) Tj ET Q q 0 0 0 rg BT 377.39 294.75 Td ( because it \(a\) excludes equity-based ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 282.75 Td (compensation expense for units granted before our initial public of) Tj ET Q q 0 0 0 rg BT 341.67 282.75 Td (fering and \(b\) reflects EVUs that are classified as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 270.75 Td (liability awards in our GAAP-basis statements of operations as equity-classified awards \(please see “—Segment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 258.75 Td (and Operating Metrics—Adjusted Net Income” below\).) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 237.75 Td (As of December 31, 2016, there was $146.8 million of unrecognized compensation expense for GAAP) Tj ET Q q 0 0 0 rg BT 537.19 237.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 225.75 Td (purposes, which is expected to be recognized as expense in our GAAP) Tj ET Q q 0 0 0 rg BT 364.45 225.75 Td ( consolidated financial statements over a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 213.75 Td (weighted average vesting period of 3.8 years. ) Tj ET Q q 0 0 0 rg BT 256.80 213.75 Td (As of December 31, 2016, there was $127.6 million of unrecognized ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 201.75 Td (compensation expense for segment reporting purposes, with the dif) Tj ET Q q 0 0 0 rg BT 347.77 201.75 Td (ference versus the GAAP-basis figure primarily ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 189.75 Td (representing unit grants made before our initial public of) Tj ET Q q 0 0 0 rg BT 296.63 189.75 Td (fering. ) Tj ET Q q 0 0 0 rg BT 329.80 189.75 Td (The $127.6 million is expected to be recognized as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 177.75 Td (expense in adjusted net income over a weighted average vesting period of approximately 3.7 years, as shown in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 165.75 Td (the table below) Tj ET Q q 0 0 0 rg BT 116.72 165.75 Td (. ) Tj ET Q q 0 0 0 rg BT 124.87 165.75 Td (These amounts are subject to change as a result of future unit grants, including those from our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 153.75 Td (annual bonus awards related to 2016, which we expect to issue in the first quarter of 2017, and possible ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 141.75 Td (modifications to award terms or changes in estimated forfeiture rates.) Tj ET Q endstream endobj 159 0 obj <> endobj 160 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (79) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 741.75 Td (The following table summarizes the estimated amount of equity-based compensation expense to be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (included in adjusted net income: ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 693.25 m 184.5 693.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 191.5 693.25 m 238.5 693.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 245.5 693.25 m 292.5 693.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 299.5 693.25 m 346.5 693.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 693.25 m 400.5 693.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 693.25 m 454.5 693.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461.5 693.25 m 508.5 693.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515.5 693.25 m 562.5 693.25 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 53.00 704.25 Td (Equity-based Compensation Expense) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 62.00 697.25 Td (Included in ANI) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 206.70 697.25 Td (2017) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 260.70 697.25 Td (2018) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 314.70 697.25 Td (2019) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 368.70 697.25 Td (2020) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 422.70 697.25 Td (2021) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 467.35 697.25 Td (Thereafter) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 530.35 697.25 Td (Total) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 356.85 684.95 Td (\(in millions\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 670.65 Td (Estimated expense from equity) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 62.00 661.65 Td (grants awarded through) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 62.00 652.65 Td (December 2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 128.45 652.20 Td (.....................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 194.00 652.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 217.45 652.65 Td (45.2) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 248.00 652.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 271.45 652.65 Td (32.6) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 302.00 652.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 325.45 652.65 Td (24.0) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 356.00 652.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 384.45 652.65 Td (7.7) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 410.00 652.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 438.45 652.65 Td (5.3) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 464.00 652.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 487.45 652.65 Td (12.8) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 518.00 652.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 536.45 652.65 Td (127.6) Tj ET Q BT /F1 10.00 Tf ET BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 621.75 Td (Incentive Income Compensation ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 600.75 Td (Incentive income compensation expense primarily reflects compensation directly related to segment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 588.75 Td (incentive income, which generally consists of percentage interests \(sometimes referred to as “points”\) that we grant ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 576.75 Td (to our investment professionals associated with the particular fund that generated the segment incentive income, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 564.75 Td (and secondarily) Tj ET Q q 0 0 0 rg BT 119.30 564.75 Td (, compensation directly related to investment income. ) Tj ET Q q 0 0 0 rg BT 360.35 564.75 Td (There is no fixed percentage for the incentive ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 552.75 Td (income-related portion of this compensation, either by fund or strategy) Tj ET Q q 0 0 0 rg BT 359.42 552.75 Td (. In general, within a particular strategy more ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 540.75 Td (recent funds have a higher percentage of aggregate incentive income compensation expense than do older funds. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 528.75 Td (The percentage that consolidated incentive income compensation expense represents of the particular period’) Tj ET Q q 0 0 0 rg BT 535.67 528.75 Td (s ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 516.75 Td (consolidated incentive income may not be meaningful because \(a\) the criteria for recognizing income and expense ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 504.75 Td (dif) Tj ET Q q 0 0 0 rg BT 60.38 504.75 Td (fer under GAAP) Tj ET Q q 0 0 0 rg BT 130.79 504.75 Td ( and thus may result in timing dif) Tj ET Q q 0 0 0 rg BT 274.01 504.75 Td (ferences, and \(b\) for periods prior to the adoption of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 492.75 Td (deconsolidation guidance in the first quarter of 2016, most segment incentive income was eliminated in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 480.75 Td (consolidation, whereas no incentive income compensation expense is eliminated in consolidation. For the most ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 468.75 Td (meaningful percentage relationship, please see “—Segment ) Tj ET Q q 0 0 0 rg BT 317.94 468.75 Td (Analysis” below) Tj ET Q q 0 0 0 rg BT 386.87 468.75 Td (. ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 447.75 Td (General and ) Tj ET Q q 0 0 0 rg BT 107.45 447.75 Td (Administrative) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 426.75 Td (General and administrative expense includes costs related to occupancy) Tj ET Q q 0 0 0 rg BT 406.00 426.75 Td (, outside auditors, tax ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 414.75 Td (professionals, legal advisers, research, consultants, travel and entertainment, communications and information ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 402.75 Td (services, business process outsourcing, foreign-exchange activity) Tj ET Q q 0 0 0 rg BT 339.40 402.75 Td (, insurance, changes in the contingent ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 390.75 Td (consideration liability) Tj ET Q q 0 0 0 rg BT 141.53 390.75 Td (, and other general items related directly to the Company’) Tj ET Q q 0 0 0 rg BT 395.37 390.75 Td (s operations. ) Tj ET Q q 0 0 0 rg BT 458.00 390.75 Td (These expenses are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 378.75 Td (net of amounts borne by fund investors and are not of) Tj ET Q q 0 0 0 rg BT 287.19 378.75 Td (fset by credits attributable to fund investors’) Tj ET Q q 0 0 0 rg BT 479.14 378.75 Td ( non-controlling ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 366.75 Td (interests in consolidated funds.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 345.75 Td (Depreciation and ) Tj ET Q q 0 0 0 rg BT 128.01 345.75 Td (Amortization) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 324.75 Td (Depreciation and amortization expense includes costs associated with the purchase of furniture and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 312.75 Td (equipment, capitalized software, of) Tj ET Q q 0 0 0 rg BT 203.79 312.75 Td (fice leasehold improvements, corporate aircraft and acquired intangibles. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 300.75 Td (Furniture and equipment and capitalized software costs are depreciated using the straight-line method over the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 288.75 Td (estimated useful life of the asset, which is generally three to five years. Leasehold improvements are amortized ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 276.75 Td (using the straight-line method over the shorter of the respective estimated useful life or the lease term. Company-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 264.75 Td (owned aircraft are depreciated using the straight-line method over the estimated useful life. ) Tj ET Q q 0 0 0 rg BT 456.89 264.75 Td (Acquired intangibles ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 252.75 Td (primarily relate to contractual rights and are amortized over their estimated useful lives, which range from three to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 240.75 Td (seven years.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 219.75 Td (Consolidated Fund Expenses ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 198.75 Td (Consolidated fund expenses consist primarily of costs, expenses and fees that are incurred by) Tj ET Q q 0 0 0 rg BT 501.60 198.75 Td (, or arise out ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 186.75 Td (of the operation and activities of or otherwise are related to, our consolidated funds, including, without limitation, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 174.75 Td (travel expenses, professional fees, research and software expenses, insurance, and other costs associated with ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 162.75 Td (administering and supporting those funds. Inasmuch as most of these fund expenses are borne by third-party ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 150.75 Td (investors, they reduce the investors’) Tj ET Q q 0 0 0 rg BT 209.15 150.75 Td ( interests in the consolidated funds and have no impact on net income or loss ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 138.75 Td (attributable to the Company) Tj ET Q q 0 0 0 rg BT 172.11 138.75 Td (. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 117.75 Td (Other Income \(Loss\) ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 96.75 Td (Interest Expense ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 75.75 Td (Interest expense primarily reflects the interest expense of the consolidated funds, as well as the interest ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 63.75 Td (expense of Oaktree and its operating subsidiaries. ) Tj ET Q endstream endobj 161 0 obj <> endobj 162 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (80) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Interest and Dividend Income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 720.75 Td (Interest and dividend income consists of interest and dividend income earned on the investments held by ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 708.75 Td (our consolidated funds, interest income earned by Oaktree and its operating subsidiaries, and for periods prior to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 696.75 Td (the adoption of the deconsolidation guidance in the first quarter of 2016, the consolidated funds’) Tj ET Q q 0 0 0 rg BT 472.71 696.75 Td ( net operating ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 684.75 Td (income from real estate-related activities.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 663.75 Td (Net Realized Gain on Consolidated Funds’) Tj ET Q q 0 0 0 rg BT 238.45 663.75 Td ( Investments ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 642.75 Td (Net realized gain on consolidated funds’) Tj ET Q q 0 0 0 rg BT 262.97 642.75 Td ( investments consists of realized gains and losses arising from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 630.75 Td (dispositions of investments held by our consolidated funds. ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 609.75 Td (Net Change in Unrealized ) Tj ET Q q 0 0 0 rg BT 166.92 609.75 Td (Appreciation \(Depreciation\) on Consolidated Funds’) Tj ET Q q 0 0 0 rg BT 395.39 609.75 Td ( Investments ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 588.75 Td (Net change in unrealized appreciation \(depreciation\) on consolidated funds’) Tj ET Q q 0 0 0 rg BT 419.74 588.75 Td ( investments reflects both ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 576.75 Td (unrealized gains and losses on investments held by our consolidated funds and the reversal upon disposition of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 564.75 Td (investments of unrealized gains and losses previously recognized for those investments. ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 543.75 Td (Investment Income) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 522.75 Td (Investment income represents our pro-rata share of income or loss from our investments, generally in our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 510.75 Td (capacity as general partner in our funds and as an investor in our CLOs and third-party managed funds and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 498.75 Td (companies. Investment income, as reflected in our consolidated statements of operations, excludes investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 486.75 Td (income earned by us from our consolidated funds.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 465.75 Td (Other Income \(Expense\), Net ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 444.75 Td (Other income \(expense\), net represents non-operating income or expense, including income related to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 432.75 Td (amounts received for contractually reimbursable costs associated with certain arrangements made in connection ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 420.75 Td (with the Highstar acquisition. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 399.75 Td (Income T) Tj ET Q q 0 0 0 rg BT 93.53 399.75 Td (axes ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 378.75 Td (Oaktree is a publicly traded partnership. Because it satisfies the qualifying income test, it is not required to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 366.75 Td (be treated as a corporation for U.S. federal and state income tax purposes; rather) Tj ET Q q 0 0 0 rg BT 409.65 366.75 Td (, it is taxed as a partnership. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 354.75 Td (Oaktree Holdings, Inc. and Oaktree ) Tj ET Q q 0 0 0 rg BT 208.97 354.75 Td (AIF Holdings, Inc., which are two of our five Intermediate Holding Companies ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 342.75 Td (and wholly-owned subsidiaries, are subject to U.S. federal and state income taxes. ) Tj ET Q q 0 0 0 rg BT 420.57 342.75 Td (The remainder of Oaktree’) Tj ET Q q 0 0 0 rg BT 537.11 342.75 Td (s ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 330.75 Td (income is generally not subject to corporate-level taxation. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 309.75 Td (Oaktree’) Tj ET Q q 0 0 0 rg BT 123.61 309.75 Td (s ef) Tj ET Q q 0 0 0 rg BT 139.55 309.75 Td (fective tax rate is dependent on many factors, including the mix of revenues and expenses ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 297.75 Td (between our two corporate Intermediate Holding Companies that are subject to income tax and our three other ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 285.75 Td (Intermediate Holding Companies that are not; consequently) Tj ET Q q 0 0 0 rg BT 312.75 285.75 Td (, the ef) Tj ET Q q 0 0 0 rg BT 343.14 285.75 Td (fective tax rate is subject to significant variation ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 273.75 Td (from period to period. Oaktree’) Tj ET Q q 0 0 0 rg BT 188.22 273.75 Td (s non-U.S. income or loss before taxes is generally not significant in relation to total ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 261.75 Td (pre-tax income or loss, and is generally more predictable because, unlike U.S. pre-tax income, it is not significantly ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 249.75 Td (impacted by unrealized gains or losses. Non-U.S. tax expense typically represents a disproportionately large ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 237.75 Td (percentage of total income tax expense because nearly all of our non-U.S. income or loss is subject to corporate-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 225.75 Td (level income tax, whereas a substantial portion of our U.S.-based income or loss is not subject to corporate-level ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 213.75 Td (taxes. In addition, changes in the proportion of non-U.S. pre-tax income to total pre-tax income impact Oaktree’) Tj ET Q q 0 0 0 rg BT 543.41 213.75 Td (s ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 201.75 Td (ef) Tj ET Q q 0 0 0 rg BT 58.16 201.75 Td (fective tax rate to the extent non-U.S. rates dif) Tj ET Q q 0 0 0 rg BT 261.42 201.75 Td (fer from the combined U.S. federal and state tax rate. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 180.75 Td (Income taxes are accounted for using the liability method of accounting. Under this method, deferred tax ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 168.75 Td (assets and liabilities are recognized for the expected future tax consequences of dif) Tj ET Q q 0 0 0 rg BT 418.37 168.75 Td (ferences between the carrying ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 156.75 Td (amounts of assets and liabilities and their respective tax bases using currently enacted tax rates. ) Tj ET Q q 0 0 0 rg BT 482.27 156.75 Td (The ef) Tj ET Q q 0 0 0 rg BT 510.44 156.75 Td (fect on ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 144.75 Td (deferred tax assets and liabilities of a change in tax rates is recognized in income in the period when the change is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 132.75 Td (enacted. Deferred tax assets would be reduced by a valuation allowance if it becomes more likely than not that ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 120.75 Td (some portion or all of the deferred tax assets will not be realized. ) Tj ET Q endstream endobj 163 0 obj <> endobj 164 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (81) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Net Income ) Tj ET Q q 0 0 0 rg BT 106.31 741.75 Td (Attributable to Non-controlling Interests ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 720.75 Td (Net income attributable to non-controlling interests represents the ownership interests that third parties hold ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 708.75 Td (in entities that are consolidated in our financial statements. ) Tj ET Q q 0 0 0 rg BT 314.97 708.75 Td (These interests fall into two categories: ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 86.00 687.75 Td (• ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 105.00 687.75 Td (Net Income ) Tj ET Q q 0 0 0 rg BT 161.31 687.75 Td (Attributable to Non-controlling Interests in Consolidated Funds.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 464.63 687.75 Td ( ) Tj ET Q q 0 0 0 rg BT 475.57 687.75 Td (This category ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 105.00 675.75 Td (represents the economic interests of the unaf) Tj ET Q q 0 0 0 rg BT 304.93 675.75 Td (filiated investors in the consolidated funds, as well as the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 105.00 663.75 Td (equity interests held by third-party investors in CLOs that had not yet priced as of the respective period ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 105.00 651.75 Td (end. ) Tj ET Q q 0 0 0 rg BT 129.84 651.75 Td (Those interests are primarily driven by the investment performance of the consolidated funds. In ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 105.00 639.75 Td (comparison to net income, this measure excludes segment results and other items solely attributable to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 105.00 627.75 Td (the Company; and) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 86.00 606.75 Td (• ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 105.00 606.75 Td (Net Income ) Tj ET Q q 0 0 0 rg BT 161.31 606.75 Td (Attributable to Non-controlling Interests in Consolidated Subsidiaries.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 494.11 606.75 Td ( ) Tj ET Q q 0 0 0 rg BT 505.04 606.75 Td (This ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 105.00 594.75 Td (category primarily represents the economic interest in the Oaktree Operating Group owned by OCGH ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 105.00 582.75 Td (\(“OCGH non-controlling interest”\), as well as the economic interest in certain consolidated subsidiaries ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 105.00 570.75 Td (held by related parties or third parties. ) Tj ET Q q 0 0 0 rg BT 278.24 570.75 Td (The OCGH non-controlling interest is determined at the Oaktree ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 105.00 558.75 Td (Operating Group level based on the weighted average proportionate share of Oaktree Operating Group ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 105.00 546.75 Td (units held by the OCGH unitholders. Inasmuch as the number of outstanding Oaktree Operating Group ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 105.00 534.75 Td (units corresponds with the total number of outstanding Class ) Tj ET Q q 0 0 0 rg BT 375.15 534.75 Td (A) Tj ET Q q 0 0 0 rg BT 381.27 534.75 Td ( and OCGH units, changes in the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 105.00 522.75 Td (economic interest held by the OCGH unitholders are driven by our additional issuances of Class ) Tj ET Q q 0 0 0 rg BT 531.33 522.75 Td (A) Tj ET Q q 0 0 0 rg BT 537.45 522.75 Td ( and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 105.00 510.75 Td (OCGH units, as well as repurchases and forfeitures of, and exchanges between, Class ) Tj ET Q q 0 0 0 rg BT 490.76 510.75 Td (A) Tj ET Q q 0 0 0 rg BT 496.88 510.75 Td ( and OCGH ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 105.00 498.75 Td (units. Certain of our expenses, such as income tax and related administrative expenses of Oaktree ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 105.00 486.75 Td (Capital Group, LLC and its Intermediate Holding Companies, are solely attributable to the Class ) Tj ET Q q 0 0 0 rg BT 529.67 486.75 Td (A) Tj ET Q q 0 0 0 rg BT 535.79 486.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 105.00 474.75 Td (unitholders. Please see note 12 to our consolidated financial statements included elsewhere in this ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 105.00 462.75 Td (annual report for additional information on the economic interest in the Oaktree Operating Group ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 105.00 450.75 Td (owned by OCGH. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 429.75 Td (Segment and Operating Metrics ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 413.25 Td (Our business is comprised of one segment, our investment management segment, which consists of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 401.25 Td (investment management services that we provide to our clients. Management makes operating decisions and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 389.25 Td (assesses the performance of our business based on financial and operating metrics and data that are presented ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 377.25 Td (without the consolidation of any funds. For a detailed reconciliation of the segment results of operations to our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 365.25 Td (consolidated statements of operations, please see ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.14 365.25 Td (“—) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 289.58 365.25 Td (Segment ) Tj ET Q q 0 0 0 rg BT 331.83 365.25 Td (Analysis) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.07 365.25 Td (”) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 373.51 365.25 Td ( below and the “Segment Reporting” note ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 353.25 Td (to our consolidated financial statements included elsewhere in this annual report. ) Tj ET Q q 0 0 0 rg BT 412.81 353.25 Td (The data most important to our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 341.25 Td (chief operating decision maker in assessing our performance are adjusted net income, adjusted net income-OCG, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 329.25 Td (distributable earnings, distributable earnings-OCG, fee-related earnings and fee-related earnings-OCG. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 308.25 Td (W) Tj ET Q q 0 0 0 rg BT 95.26 308.25 Td (e monitor certain operating metrics that are either common to the alternative asset management industry ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 296.25 Td (or that we believe provide important data regarding our business. ) Tj ET Q q 0 0 0 rg BT 342.95 296.25 Td (As described below) Tj ET Q q 0 0 0 rg BT 429.11 296.25 Td (, these operating metrics ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 284.25 Td (include assets under management, management fee-generating assets under management, incentive-creating ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 272.25 Td (assets under management, accrued incentives \(fund level\), incentives created \(fund level\) and uncalled capital ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 260.25 Td (commitments. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 239.25 Td (Adjusted Net Income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 222.75 Td (Our chief operating decision maker uses adjusted net income \(“ANI”\) as a tool to help evaluate the financial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 210.75 Td (performance of, and make resource allocations and other operating decisions for) Tj ET Q q 0 0 0 rg BT 406.32 210.75 Td (, our investment management ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 198.75 Td (segment. ) Tj ET Q q 0 0 0 rg BT 96.51 198.75 Td (The components of revenues and expenses used in the determination of ) Tj ET Q q 0 0 0 rg BT 419.50 198.75 Td (ANI do not give ef) Tj ET Q q 0 0 0 rg BT 498.81 198.75 Td (fect to the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 186.75 Td (consolidation of the funds that we manage. Segment revenues include investment income \(loss\) that is classified in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 174.75 Td (other income \(loss\) in the GAAP-basis statements of operations. Segment revenues and expenses also reflect ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 162.75 Td (Oaktree’) Tj ET Q q 0 0 0 rg BT 87.61 162.75 Td (s proportionate economic interest in Highstar) Tj ET Q q 0 0 0 rg BT 285.49 162.75 Td (, whereby amounts received for contractually reimbursable ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 150.75 Td (costs are classified for segment reporting as expenses and under GAAP) Tj ET Q q 0 0 0 rg BT 369.43 150.75 Td ( as other income. In addition, ) Tj ET Q q 0 0 0 rg BT 502.85 150.75 Td (ANI excludes ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 138.75 Td (the ef) Tj ET Q q 0 0 0 rg BT 74.84 138.75 Td (fect of \(a\) non-cash equity-based compensation expense related to unit grants made before our initial public ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 126.75 Td (of) Tj ET Q q 0 0 0 rg BT 58.16 126.75 Td (fering, \(b\) acquisition-related items including amortization of intangibles and changes in the contingent ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 114.75 Td (consideration liability) Tj ET Q q 0 0 0 rg BT 141.53 114.75 Td (, \(c\) dif) Tj ET Q q 0 0 0 rg BT 171.90 114.75 Td (ferences arising from EVUs that are classified as liability awards under GAAP) Tj ET Q q 0 0 0 rg BT 514.09 114.75 Td ( but as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 102.75 Td (equity awards for segment reporting, \(d\) income taxes, \(e\) other income or expenses applicable to OCG or its ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 90.75 Td (Intermediate Holding Companies, and \(f\) the adjustment for non-controlling interests. Moreover) Tj ET Q q 0 0 0 rg BT 471.88 90.75 Td (, third-party ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 78.75 Td (placement costs associated with closed-end funds under GAAP) Tj ET Q q 0 0 0 rg BT 331.08 78.75 Td ( are expensed as incurred, but for ) Tj ET Q q 0 0 0 rg BT 482.84 78.75 Td (ANI are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 66.75 Td (capitalized and amortized as general and administrative expense in proportion to the associated management fee ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 54.75 Td (stream. Gains and losses resulting from foreign-currency transactions and hedging activities under GAAP) Tj ET Q q 0 0 0 rg BT 518.38 54.75 Td ( are ) Tj ET Q endstream endobj 165 0 obj <> endobj 166 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (82) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (recognized as general and administrative expense whether realized or unrealized in the current period, but for ) Tj ET Q q 0 0 0 rg BT 537.51 741.75 Td (ANI ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (unrealized gains and losses from foreign-currency hedging activities are deferred until realized, at which time they ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (are included in the same revenue or expense line item as the underlying exposure that was hedged. ) Tj ET Q q 0 0 0 rg BT 496.95 717.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 547.35 717.75 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 705.75 Td (for ) Tj ET Q q 0 0 0 rg BT 63.90 705.75 Td (ANI, foreign-currency transaction gains and losses are included in other income \(expense\), net. Incentive ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 693.75 Td (income and incentive income compensation expense are included in ) Tj ET Q q 0 0 0 rg BT 354.63 693.75 Td (ANI when the underlying fund distributions are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 681.75 Td (known or knowable as of the respective quarter end, which may be later than the time at which the same revenue ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 669.75 Td (or expense is included in the GAAP-basis statements of operations, for which the revenue standard is fixed or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 657.75 Td (determinable and the expense standard is probable and reasonably estimable. CLO investments are carried at fair ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 645.75 Td (value for GAAP) Tj ET Q q 0 0 0 rg BT 118.74 645.75 Td ( reporting, whereas for segment reporting they are carried at amortized cost, subject to any ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 633.75 Td (impairment charges. Investment income on CLO investments is recognized in ) Tj ET Q q 0 0 0 rg BT 397.93 633.75 Td (ANI when cash distributions are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 621.75 Td (received. Cash distributions are allocated between income and return of capital based on the ef) Tj ET Q q 0 0 0 rg BT 473.96 621.75 Td (fective yield ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 609.75 Td (method. ) Tj ET Q q 0 0 0 rg BT 91.14 609.75 Td (ANI is calculated at the Operating Group level.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 588.75 Td (Among other factors, our accounting policy for recognizing incentive income and the inclusion of non-cash ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 576.75 Td (equity-based compensation expense related to unit grants made after our initial public of) Tj ET Q q 0 0 0 rg BT 440.05 576.75 Td (fering will likely make our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 564.75 Td (calculation of ) Tj ET Q q 0 0 0 rg BT 110.60 564.75 Td (ANI not directly comparable to economic net income or other similarly named measures utilized by ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 552.75 Td (other asset managers. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 531.75 Td (W) Tj ET Q q 0 0 0 rg BT 95.26 531.75 Td (e calculate adjusted net income-OCG, or adjusted net income per Class ) Tj ET Q q 0 0 0 rg BT 415.42 531.75 Td (A) Tj ET Q q 0 0 0 rg BT 421.54 531.75 Td ( unit, a non-GAAP) Tj ET Q q 0 0 0 rg BT 501.96 531.75 Td ( performance ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 519.75 Td (measure, to provide Class ) Tj ET Q q 0 0 0 rg BT 168.39 519.75 Td (A) Tj ET Q q 0 0 0 rg BT 174.51 519.75 Td ( unitholders with a measure that shows the portion of ) Tj ET Q q 0 0 0 rg BT 410.75 519.75 Td (ANI attributable to their ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 507.75 Td (ownership. ) Tj ET Q q 0 0 0 rg BT 103.36 507.75 Td (Adjusted net income-OCG represents ) Tj ET Q q 0 0 0 rg BT 272.33 507.75 Td (ANI including the ef) Tj ET Q q 0 0 0 rg BT 358.87 507.75 Td (fect of \(a\) the OCGH non-controlling interest, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 495.75 Td (\(b\) other income or expenses, such as income tax expense, applicable to OCG or its Intermediate Holding ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 483.75 Td (Companies and \(c\) any Operating Group income taxes attributable to OCG. ) Tj ET Q q 0 0 0 rg BT 389.43 483.75 Td (T) Tj ET Q q 0 0 0 rg BT 394.99 483.75 Td (wo of our Intermediate Holding ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 471.75 Td (Companies incur federal and state income taxes for their shares of Operating Group income. Generally) Tj ET Q q 0 0 0 rg BT 507.27 471.75 Td (, those two ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 459.75 Td (corporate entities hold an interest in the Operating Group’) Tj ET Q q 0 0 0 rg BT 304.41 459.75 Td (s management fee-generating assets and a small portion ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 447.75 Td (of its incentive and investment income-generating assets. ) Tj ET Q q 0 0 0 rg BT 309.03 447.75 Td (As a result, historically our fee-related earnings and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 435.75 Td (investment income arising from our one-fifth ownership stake in DoubleLine Capital LP) Tj ET Q q 0 0 0 rg BT 432.24 435.75 Td ( and its af) Tj ET Q q 0 0 0 rg BT 475.42 435.75 Td (filiates \(collectively) Tj ET Q q 0 0 0 rg BT 557.48 435.75 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 423.75 Td (“DoubleLine”\) generally have been subject to corporate-level taxation, and most of our incentive income and other ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 411.75 Td (investment income generally has not been subject to corporate-level taxation. ) Tj ET Q q 0 0 0 rg BT 397.79 411.75 Td (Thus, the blended ef) Tj ET Q q 0 0 0 rg BT 488.79 411.75 Td (fective income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 399.75 Td (tax rate has generally tended to be higher to the extent that fee-related earnings and DoubleLine-related investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 387.75 Td (income represented a larger proportion of our ) Tj ET Q q 0 0 0 rg BT 253.45 387.75 Td (ANI. Myriad other factors af) Tj ET Q q 0 0 0 rg BT 377.76 387.75 Td (fect income tax expense and the ef) Tj ET Q q 0 0 0 rg BT 532.68 387.75 Td (fective ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 375.75 Td (income tax rate, and there can be no assurance that this historical relationship will continue going forward. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 354.75 Td (Distributable Earnings ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 338.25 Td (Our chief operating decision maker uses distributable earnings as a tool to help evaluate the financial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 326.25 Td (performance of, and make resource allocations and other operating decisions for) Tj ET Q q 0 0 0 rg BT 406.32 326.25 Td (, our segment. Distributable ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 314.25 Td (earnings is a non-GAAP) Tj ET Q q 0 0 0 rg BT 157.10 314.25 Td ( performance measure derived from our segment results that we use to measure our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 302.25 Td (earnings at the Operating Group level without the ef) Tj ET Q q 0 0 0 rg BT 278.85 302.25 Td (fects of the consolidated funds for the purpose of, among other ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 290.25 Td (things, assisting in the determination of equity distributions from the Operating Group. However) Tj ET Q q 0 0 0 rg BT 472.44 290.25 Td (, the declaration, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 278.25 Td (payment and determination of the amount of equity distributions, if any) Tj ET Q q 0 0 0 rg BT 360.55 278.25 Td (, is at the sole discretion of our board of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 266.25 Td (directors, which may change our distribution policy at any time. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 245.25 Td (Distributable earnings dif) Tj ET Q q 0 0 0 rg BT 195.88 245.25 Td (fers from ) Tj ET Q q 0 0 0 rg BT 237.55 245.25 Td (ANI in that it excludes segment investment income or loss and includes ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 233.25 Td (the receipt of investment income or loss from distributions by our investments in funds and companies. ) Tj ET Q q 0 0 0 rg BT 508.00 233.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 558.40 233.25 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 221.25 Td (any impairment charges on our CLO investments included in ) Tj ET Q q 0 0 0 rg BT 320.14 221.25 Td (ANI are, for distributable earnings purposes, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 209.25 Td (amortized over the remaining investment period of the respective CLO to align with the timing of expected cash ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 197.25 Td (flows. In addition, distributable earnings dif) Tj ET Q q 0 0 0 rg BT 241.04 197.25 Td (fers from ) Tj ET Q q 0 0 0 rg BT 282.71 197.25 Td (ANI in that it is net of Operating Group income taxes and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 185.25 Td (excludes non-cash equity-based compensation expense.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 164.25 Td (Segment investment income or loss, which for equity-method investments represents our pro-rata share of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 152.25 Td (income or loss, generally in our capacity as general partner in our funds and as an investor in our CLOs and third-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 140.25 Td (party managed funds and companies, is largely non-cash in nature. By excluding segment investment income or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 128.25 Td (loss, which is not directly available to fund our operations or make equity distributions, and including the portion of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 116.25 Td (distributions from Oaktree and non-Oaktree funds to us that represents the income or loss component of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 104.25 Td (distributions and not a return of our capital contributions, as well as distributions from our investments in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 92.25 Td (companies, distributable earnings aids us in measuring amounts that are actually available to meet our obligations ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 80.25 Td (under the tax receivable agreement and our liabilities for expenses incurred at OCG and the Intermediate Holding ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 68.25 Td (Companies, as well as for distributions to Class ) Tj ET Q q 0 0 0 rg BT 261.76 68.25 Td (A) Tj ET Q q 0 0 0 rg BT 267.88 68.25 Td ( and OCGH unitholders. ) Tj ET Q endstream endobj 167 0 obj <> endobj 168 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (83) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 741.75 Td (Distributable earnings-OCG, or distributable earnings per Class ) Tj ET Q q 0 0 0 rg BT 368.35 741.75 Td (A) Tj ET Q q 0 0 0 rg BT 374.47 741.75 Td ( unit, is a non-GAAP) Tj ET Q q 0 0 0 rg BT 464.89 741.75 Td ( performance ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (measure calculated to provide Class ) Tj ET Q q 0 0 0 rg BT 213.42 729.75 Td (A) Tj ET Q q 0 0 0 rg BT 219.54 729.75 Td ( unitholders with a measure that shows the portion of distributable earnings ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (attributable to their ownership. Distributable earnings-OCG represents distributable earnings, including the ef) Tj ET Q q 0 0 0 rg BT 532.86 717.75 Td (fect of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 705.75 Td (\(a\) the OCGH non-controlling interest, \(b\) expenses, such as current income tax expense, applicable to OCG or its ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 693.75 Td (Intermediate Holding Companies and \(c\) amounts payable under the tax receivable agreement. ) Tj ET Q q 0 0 0 rg BT 476.73 693.75 Td (The income tax ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 681.75 Td (expense included in distributable earnings-OCG represents the implied current provision for income taxes ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 669.75 Td (calculated using an approach similar to that which is used in calculating the income tax provision for adjusted net ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 657.75 Td (income-OCG.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 636.75 Td (Fee-related Earnings ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 620.25 Td (Fee-related earnings is a non-GAAP) Tj ET Q q 0 0 0 rg BT 247.02 620.25 Td ( performance measure that we use to monitor the baseline earnings of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 608.25 Td (our business. Fee-related earnings is comprised of segment management fees less segment operating expenses ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 596.25 Td (other than incentive income compensation expense and non-cash equity-based compensation expense. Fee-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 584.25 Td (related earnings is considered baseline because it applies all cash compensation and benefits other than incentive ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 572.25 Td (income compensation expense, as well as all general and administrative expenses, to management fees, even ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 560.25 Td (though a significant portion of those expenses is attributable to incentive and investment income, and because it ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 548.25 Td (excludes all non-management fee revenue sources \(such as earnings from our minority equity interest in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 536.25 Td (DoubleLine\). Fee-related earnings is presented before income taxes. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 515.25 Td (Fee-related earnings-OCG, or fee-related earnings per Class ) Tj ET Q q 0 0 0 rg BT 357.80 515.25 Td (A) Tj ET Q q 0 0 0 rg BT 363.92 515.25 Td ( unit, is a non-GAAP) Tj ET Q q 0 0 0 rg BT 454.33 515.25 Td ( performance measure ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 503.25 Td (calculated to provide Class ) Tj ET Q q 0 0 0 rg BT 171.73 503.25 Td (A) Tj ET Q q 0 0 0 rg BT 177.85 503.25 Td ( unitholders with a measure that shows the portion of fee-related earnings attributable ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 491.25 Td (to their ownership. Fee-related earnings-OCG represents fee-related earnings including the ef) Tj ET Q q 0 0 0 rg BT 467.27 491.25 Td (fect of \(a\) the OCGH ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 479.25 Td (non-controlling interest, \(b\) other income or expenses, such as income tax expense, applicable to OCG or its ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 467.25 Td (Intermediate Holding Companies and \(c\) any Operating Group income taxes attributable to OCG. Fee-related ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 455.25 Td (earnings-OCG income taxes are calculated excluding any segment incentive income or investment income \(loss\). ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 434.25 Td (Among other factors, the exclusion of non-cash equity-based compensation expense may make our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 422.25 Td (calculations of fee-related earnings and fee-related earnings-OCG not directly comparable to similarly named ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 410.25 Td (measures of other asset managers. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 389.25 Td (Assets Under Management ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 372.75 Td (AUM generally refers to the assets we manage and equals the NA) Tj ET Q q 0 0 0 rg BT 378.19 372.75 Td (V of the assets we manage, the leverage ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 360.75 Td (on which management fees are charged, the undrawn capital that we are entitled to call from investors in our funds ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 348.75 Td (pursuant to their capital commitments and the aggregate par value of collateral assets and principal cash held by ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 336.75 Td (our CLOs. Our ) Tj ET Q q 0 0 0 rg BT 120.02 336.75 Td (AUM includes amounts for which we charge no management fees. Our definition of ) Tj ET Q q 0 0 0 rg BT 492.44 336.75 Td (AUM is not ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 324.75 Td (based on any definition contained in our operating agreement or the agreements governing the funds that we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 312.75 Td (manage. Our calculation of ) Tj ET Q q 0 0 0 rg BT 174.52 312.75 Td (AUM and the two ) Tj ET Q q 0 0 0 rg BT 253.45 312.75 Td (AUM-related metrics below may not be directly comparable to the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 300.75 Td (AUM metrics of other asset managers. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 86.00 279.75 Td (•) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 279.75 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 104.00 279.75 Td (Management Fee-generating ) Tj ET Q q 0 0 0 rg BT 241.99 279.75 Td (Assets Under Management.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 373.14 279.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 384.25 279.75 Td (Management fee-generating ) Tj ET Q q 0 0 0 rg BT 512.12 279.75 Td (AUM is a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 267.75 Td (forward-looking metric and reflects the beginning ) Tj ET Q q 0 0 0 rg BT 321.90 267.75 Td (AUM on which we will earn management fees in the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 255.75 Td (following quarter) Tj ET Q q 0 0 0 rg BT 176.82 255.75 Td (. Our closed-end funds typically pay management fees based on committed capital, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 243.75 Td (drawn capital or cost basis during the investment period, without regard to changes in NA) Tj ET Q q 0 0 0 rg BT 497.92 243.75 Td (V) Tj ET Q q 0 0 0 rg BT 503.67 243.75 Td (, and during ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 231.75 Td (the liquidation period on the lesser of \(a\) total funded capital or \(b\) the cost basis of assets remaining in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 219.75 Td (the fund. ) Tj ET Q q 0 0 0 rg BT 148.30 219.75 Td (The annual management fee rate generally remains unchanged from the investment period ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 207.75 Td (through the liquidation period. Our open-end and evergreen funds typically pay management fees ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 195.75 Td (based on their NA) Tj ET Q q 0 0 0 rg BT 183.31 195.75 Td (V) Tj ET Q q 0 0 0 rg BT 189.06 195.75 Td (, and our CLOs pay management fees based on the aggregate par value of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 183.75 Td (collateral assets and principal cash held by them, as defined in the applicable CLO indentures. ) Tj ET Q endstream endobj 169 0 obj <> endobj 170 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (84) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 86.00 741.75 Td (•) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 741.75 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 104.00 741.75 Td (Incentive-creating ) Tj ET Q q 0 0 0 rg BT 191.99 741.75 Td (Assets Under Management. ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 325.91 741.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 334.25 741.75 Td (Incentive-creating ) Tj ET Q q 0 0 0 rg BT 415.41 741.75 Td (AUM refers to the ) Tj ET Q q 0 0 0 rg BT 495.99 741.75 Td (AUM that may ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 729.75 Td (eventually produce incentive income. It represents the NA) Tj ET Q q 0 0 0 rg BT 361.73 729.75 Td (V of our funds for which we are entitled to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 717.75 Td (receive an incentive allocation, excluding CLOs and investments made by us and our employees and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 705.75 Td (directors \(which are not subject to an incentive allocation\). ) Tj ET Q q 0 0 0 rg BT 365.80 705.75 Td (All funds for which we are entitled to receive ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 693.75 Td (an incentive allocation are included in incentive-creating ) Tj ET Q q 0 0 0 rg BT 353.60 693.75 Td (AUM, regardless of whether or not they are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 681.75 Td (currently generating incentives. Incentive-creating ) Tj ET Q q 0 0 0 rg BT 329.12 681.75 Td (AUM does not include undrawn capital ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 669.75 Td (commitments. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 648.75 Td (Accrued Incentives \(Fund Level\) and Incentives Created \(Fund Level\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 632.25 Td (Our funds record as accrued incentives the incentive income that would be paid to us if the funds were ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 620.25 Td (liquidated at their reported values as of the date of the financial statements. Incentives created \(fund level\) refers to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 608.25 Td (the gross amount of potential incentives generated by the funds during the period. W) Tj ET Q q 0 0 0 rg BT 426.72 608.25 Td (e refer to the amount of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 596.25 Td (accrued incentives recognized as revenue by us as segment incentive income. ) Tj ET Q q 0 0 0 rg BT 402.97 596.25 Td (Amounts recognized by us as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 584.25 Td (incentive income are no longer included in accrued incentives \(fund level\), the term we use for remaining fund-level ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 572.25 Td (accruals. ) Tj ET Q q 0 0 0 rg BT 95.39 572.25 Td (The amount of incentives created may fluctuate substantially as a result of changes in the fair value of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 560.25 Td (the underlying investments of the fund, as well as incentives created in excess of our typical 20% share due to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 548.25 Td (catch-up allocations for applicable closed-end funds. Generally speaking, while in the catch-up layer) Tj ET Q q 0 0 0 rg BT 494.15 548.25 Td (, approximately ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 536.25 Td (80% of any increase or decrease, respectively) Tj ET Q q 0 0 0 rg BT 253.81 536.25 Td (, in the fund’) Tj ET Q q 0 0 0 rg BT 308.11 536.25 Td (s NA) Tj ET Q q 0 0 0 rg BT 329.04 536.25 Td (V results in a commensurate amount of positive or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 524.25 Td (negative incentives created \(fund level\).) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 503.25 Td (The same performance and market risks inherent in incentives created \(fund level\) af) Tj ET Q q 0 0 0 rg BT 461.55 503.25 Td (fect the ability to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 491.25 Td (ultimately realize accrued incentives \(fund level\). One consequence of the accounting method we follow for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 479.25 Td (incentives created \(fund level\) is that accrued incentives \(fund level\) is an of) Tj ET Q q 0 0 0 rg BT 384.99 479.25 Td (f-balance sheet metric, rather than ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 467.25 Td (being an on-balance sheet receivable that could require reduction if fund performance suf) Tj ET Q q 0 0 0 rg BT 445.07 467.25 Td (fers. W) Tj ET Q q 0 0 0 rg BT 479.33 467.25 Td (e track accrued ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 455.25 Td (incentives \(fund level\) because it provides an indication of potential future value, though the timing and ultimate ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 443.25 Td (realization of that value are uncertain. ) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 219.55 443.25 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 422.25 Td (Incentives created \(fund level\), incentive income and accrued incentives \(fund level\) are presented gross, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 410.25 Td (without deduction for direct compensation expense that is owed to our investment professionals associated with the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 398.25 Td (particular fund when we earn the incentive income. W) Tj ET Q q 0 0 0 rg BT 289.94 398.25 Td (e call that charge “incentive income compensation expense.” ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 386.25 Td (Incentive income compensation expense varies by the investment strategy and vintage of the particular fund, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 374.25 Td (among many other factors. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 353.25 Td (Incentives created \(fund level\) often reflects investments measured at fair value and therefore is subject to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 341.25 Td (risk of substantial fluctuation by the time the underlying investments are liquidated. W) Tj ET Q q 0 0 0 rg BT 429.46 341.25 Td (e earn the incentive income, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 329.25 Td (if any) Tj ET Q q 0 0 0 rg BT 73.16 329.25 Td (, that the fund is then obligated to pay us with respect to our incentive interest \(generally 20%\) in the profits of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 317.25 Td (our unaf) Tj ET Q q 0 0 0 rg BT 86.51 317.25 Td (filiated investors, subject to an annual preferred return of typically 8%. ) Tj ET Q q 0 0 0 rg BT 400.01 317.25 Td (Although GAAP) Tj ET Q q 0 0 0 rg BT 469.88 317.25 Td ( currently allows the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 305.25 Td (equivalent of incentives created \(fund level\) to be recognized as revenue by us under Method 2, we follow the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 293.25 Td (Method 1 approach of) Tj ET Q q 0 0 0 rg BT 147.11 293.25 Td (fered by GAAP) Tj ET Q q 0 0 0 rg BT 212.52 293.25 Td (. Our use of Method 1 reduces by a substantial degree the possibility that ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 281.25 Td (revenue recognized by us would be reversed in a subsequent period. For purposes of ) Tj ET Q q 0 0 0 rg BT 433.57 281.25 Td (ANI and distributable ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 269.25 Td (earnings, we recognize incentive income when the underlying fund distributions are known or knowable as of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 257.25 Td (respective quarter end, as opposed to the fixed or determinable standard of Method 1. W) Tj ET Q q 0 0 0 rg BT 445.61 257.25 Td (e track incentives created ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 245.25 Td (\(fund level\) because it provides an indication of the value for us currently being created by our investment activities ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 233.25 Td (and facilitates comparability with those companies in our industry that utilize the alternative accrual-based Method 2 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 221.25 Td (for recognizing incentive income in their financial statements. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 200.25 Td (Uncalled Capital Commitments ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 183.75 Td (Uncalled capital commitments represent undrawn capital commitments by partners \(including Oaktree as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 171.75 Td (general partner\) of our closed-end funds through their investment periods and certain evergreen funds. If a closed-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 159.75 Td (end fund distributes capital during its investment period, that capital is typically subject to possible recall, in which ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 147.75 Td (case it is included in uncalled capital commitments. ) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 278.99 147.75 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 126.75 Td (Invested Capital) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 105.75 Td (Invested capital reflects deployed capital, whether involving drawn or recycled equity capital, or borrowings ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 93.75 Td (from fund-level credit facilities. ) Tj ET Q q 0 0 0 rg BT 189.87 93.75 Td (This metric is used in connection with incentive-creating closed-end funds and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 81.75 Td (certain evergreen funds.) Tj ET Q endstream endobj 171 0 obj <> endobj 172 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (85) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Consolidated Results of Operations ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 725.25 Td (The following table sets forth our audited consolidated statements of operations: ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 436.88 725.25 Td ( ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 699.75 m 423.5 699.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 699.75 m 431.5 699.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 699.75 m 492.5 699.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 699.75 m 500.5 699.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 699.75 m 561.5 699.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 687.75 m 423.5 687.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 699.75 m 492.5 699.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 687.75 m 492.5 687.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 699.75 m 500.5 699.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 699.75 m 561.5 699.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 687.75 m 561.5 687.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 633.75 m 423.5 633.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 619.75 m 423.5 619.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 633.75 m 492.5 633.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 619.75 m 492.5 619.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 633.75 m 561.5 633.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 619.75 m 561.5 619.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 563.75 m 423.5 563.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 563.75 m 492.5 563.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 563.75 m 561.5 563.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 507.75 m 423.5 507.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 493.75 m 423.5 493.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 507.75 m 492.5 507.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 493.75 m 492.5 493.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 507.75 m 561.5 507.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 493.75 m 561.5 493.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 386.75 m 423.5 386.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 372.75 m 423.5 372.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 386.75 m 492.5 386.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 372.75 m 492.5 372.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 386.75 m 561.5 386.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 372.75 m 561.5 372.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 372.75 m 423.5 372.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 344.75 m 423.5 344.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 344.75 m 492.5 344.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 344.75 m 561.5 344.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 270.75 m 423.5 270.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 255.75 m 423.5 255.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 253.75 m 423.5 253.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 270.75 m 492.5 270.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 255.75 m 492.5 255.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 253.75 m 492.5 253.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 270.75 m 561.5 270.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 255.75 m 561.5 255.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 253.75 m 561.5 253.75 l s BT /F3 4.00 Tf ET q 0 0 0 rg BT 52.00 703.14 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 418.70 703.75 Td (Year Ended December 31,) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.00 681.15 Td (Consolidated Statements of Operations:) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 384.70 691.75 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 453.70 691.75 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 522.70 691.75 Td (2014) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 437.35 680.15 Td (\(in thousands\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 666.15 Td (Revenues:) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 365.00 666.37 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 434.00 666.37 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 503.00 666.37 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 652.15 Td (Management fees) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 146.45 651.70 Td (.....................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 365.00 652.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 387.45 652.15 Td (774,587) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 434.00 652.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 456.45 652.15 Td (195,308) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 503.00 652.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 652.15 Td (192,055) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 638.15 Td (Incentive income) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 143.95 637.70 Td (......................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 387.45 638.15 Td (351,159) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 466.45 638.15 Td (6,597) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 638.15 Td (1,839) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 624.15 Td (Total revenues) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 151.45 623.70 Td (...................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 379.95 624.15 Td (1,125,746) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 456.45 624.15 Td (201,905) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 624.15 Td (193,894) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 610.15 Td (Expenses:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 596.15 Td (Compensation and benefits) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 183.95 595.70 Td (......................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 384.45 596.15 Td (\(389,892) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.00 596.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 453.45 596.15 Td (\(416,907) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 489.00 596.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 596.15 Td (\(388,512) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 596.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 582.15 Td (Equity-based compensation) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 186.45 581.70 Td (.....................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.45 582.15 Td (\(63,724) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.00 582.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 458.45 582.15 Td (\(54,381) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 489.00 582.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 527.45 582.15 Td (\(41,395) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 582.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 568.15 Td (Incentive income compensation) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 201.45 567.70 Td (...............................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 384.45 568.15 Td (\(168,276) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.00 568.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 453.45 568.15 Td (\(160,831) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 489.00 568.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 568.15 Td (\(221,194) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 568.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 554.15 Td (Total compensation and benefits expense) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 256.45 553.70 Td (.........................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 384.45 554.15 Td (\(621,892) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.00 554.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 453.45 554.15 Td (\(632,119) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 489.00 554.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 554.15 Td (\(651,101) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 554.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 540.15 Td (General and administrative) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 181.45 539.70 Td (.......................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 384.45 540.15 Td (\(145,430) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.00 540.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 453.45 540.15 Td (\(110,677) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 489.00 540.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 527.45 540.15 Td (\(99,835) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 540.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 526.15 Td (Depreciation and amortization) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 193.95 525.70 Td (..................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.45 526.15 Td (\(16,222) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.00 526.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 458.45 526.15 Td (\(14,022) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 489.00 526.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 532.45 526.15 Td (\(8,003) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 526.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 512.15 Td (Consolidated fund expenses) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 188.95 511.70 Td (....................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 394.45 512.15 Td (\(5,792) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.00 512.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 453.45 512.15 Td (\(184,090) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 489.00 512.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 512.15 Td (\(188,538) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 512.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 498.15 Td (Total expenses) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 153.95 497.70 Td (..................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 384.45 498.15 Td (\(789,336) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.00 498.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 453.45 498.15 Td (\(940,908) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 489.00 498.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 498.15 Td (\(947,477) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 498.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 484.15 Td (Other income \(loss\):) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 470.15 Td (Interest expense) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 141.45 469.70 Td (.......................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 384.45 470.15 Td (\(120,610) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.00 470.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 453.45 470.15 Td (\(216,799) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 489.00 470.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 470.15 Td (\(129,942) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 470.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 456.15 Td (Interest and dividend income) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 188.95 455.70 Td (....................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 387.45 456.15 Td (165,066) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 448.95 456.15 Td (1,958,802) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.95 456.15 Td (1,902,576) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 442.15 Td (Net realized gain on consolidated funds’ investments) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 281.45 441.70 Td (...............................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 392.45 442.15 Td (27,593) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 448.95 442.15 Td (1,177,150) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.95 442.15 Td (2,131,584) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 428.15 Td (Net change in unrealized appreciation \(depreciation\) on consolidated) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 79.00 419.15 Td (funds’ investments) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 158.95 418.70 Td (................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.45 419.15 Td (\(12,453) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.00 419.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 445.95 419.15 Td (\(3,767,527) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 489.00 419.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 419.15 Td (\(993,260) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 419.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 405.15 Td (Investment income) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 151.45 404.70 Td (...................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 387.45 405.15 Td (199,126) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 461.45 405.15 Td (51,958) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 405.15 Td (33,695) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 391.15 Td (Other income \(expense\), net) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 188.95 390.70 Td (....................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 392.45 391.15 Td (13,490) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 461.45 391.15 Td (20,006) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 391.15 Td (3,018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 377.15 Td (Total other income \(loss\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 191.45 376.70 Td (...................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 387.45 377.15 Td (272,212) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 453.45 377.15 Td (\(776,410) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 489.00 377.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.95 377.15 Td (2,947,671) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 363.15 Td (Income \(loss\) before income taxes) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 193.95 362.70 Td (..................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 387.45 363.15 Td (608,622) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 445.95 363.15 Td (\(1,515,413) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 489.00 363.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.95 363.15 Td (2,194,088) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 349.15 Td (Income taxes) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 128.95 348.70 Td (............................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.45 349.15 Td (\(42,519) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.00 349.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 458.45 349.15 Td (\(17,549) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 489.00 349.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 527.45 349.15 Td (\(18,536) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 349.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 335.15 Td (Net income \(loss\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 128.95 334.70 Td (............................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 387.45 335.15 Td (566,103) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 445.95 335.15 Td (\(1,532,962) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 489.00 335.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.95 335.15 Td (2,175,552) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 321.15 Td (Less:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 307.15 Td (Net \(income\) loss attributable to non-controlling interests in consolidated) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 79.00 298.15 Td (funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 106.45 297.70 Td (.....................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.45 298.15 Td (\(22,921) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.00 298.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 448.95 298.15 Td (1,809,683) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 514.95 298.15 Td (\(1,649,890) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 298.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 284.15 Td (Net income attributable to non-controlling interests in consolidated) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 79.00 275.15 Td (subsidiaries) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 131.45 274.70 Td (...........................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 384.45 275.15 Td (\(348,477) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.00 275.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 453.45 275.15 Td (\(205,372) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 489.00 275.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 275.15 Td (\(399,379) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 275.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 259.15 Td (Net income attributable to Oaktree Capital Group, LLC) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 271.45 258.70 Td (...................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 365.00 259.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 387.45 259.15 Td (194,705) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 434.00 259.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 461.45 259.15 Td (71,349) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 503.00 259.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 259.15 Td (126,283) Tj ET Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 225.25 Td (Y) Tj ET Q q 0 0 0 rg BT 56.30 225.25 Td (ear Ended December 31, 2016 Compared to ) Tj ET Q q 0 0 0 rg BT 264.54 225.25 Td (Y) Tj ET Q q 0 0 0 rg BT 270.83 225.25 Td (ear Ended December 31, 2015) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 208.75 Td (Revenues ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 192.25 Td (Management Fees ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 175.75 Td (Management fees increased ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 214.96 175.75 Td ($579.3) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 245.55 175.75 Td ( million, to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 293.34 175.75 Td ($774.6 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 355.05 175.75 Td ( for the year ended December 31, 2016, from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 163.75 Td ($195.3 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 111.70 163.75 Td ( for the year ended December 31, 2015. ) Tj ET Q q 0 0 0 rg BT 294.41 163.75 Td (The increase reflected the deconsolidation of substantially ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 151.75 Td (all of Oaktree’) Tj ET Q q 0 0 0 rg BT 111.51 151.75 Td (s investment funds ef) Tj ET Q q 0 0 0 rg BT 205.83 151.75 Td (fective the first quarter of 2016.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 135.25 Td (Incentive Income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 118.75 Td (Incentive income increased ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 209.96 118.75 Td ($344.6) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 240.54 118.75 Td ( million, to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 288.33 118.75 Td ($351.2 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 350.04 118.75 Td ( for the year ended December 31, 2016, from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 106.75 Td ($6.6 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 100.58 106.75 Td ( for the year ended December 31, 2015, reflecting the impact of deconsolidation.) Tj ET Q endstream endobj 173 0 obj <> endobj 174 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (86) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Expenses ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 725.25 Td (Compensation and Benefits ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 708.25 Td (Compensation and benefits expense decreased ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.59 708.25 Td ($27.0) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 325.61 708.25 Td ( million, or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 373.96 708.25 Td (6.5%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 396.75 708.25 Td (, to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 413.43 708.25 Td ($389.9 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 475.13 708.25 Td ( for the year ended ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 696.25 Td (December 31, 2016, from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 166.17 696.25 Td ($416.9 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 227.87 696.25 Td ( for the year ended December 31, 2015, primarily reflecting an overall shift ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 684.25 Td (in compensation mix from cash to equity) Tj ET Q q 0 0 0 rg BT 227.67 684.25 Td (.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 663.25 Td (Equity-based Compensation ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 646.75 Td (Equity-based compensation expense increased ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 298.91 646.75 Td ($9.3) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 318.37 646.75 Td ( million, or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 366.72 646.75 Td (17.1%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 395.07 646.75 Td (, to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 411.75 646.75 Td ($63.7 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 467.89 646.75 Td ( for the year ended ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 634.75 Td (December 31, 2016, from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 166.17 634.75 Td ($54.4 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 222.31 634.75 Td ( for the year ended December 31, 2015. ) Tj ET Q q 0 0 0 rg BT 405.02 634.75 Td (The increase reflected non-cash ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 622.75 Td (amortization expense associated with vesting of Class ) Tj ET Q q 0 0 0 rg BT 291.79 622.75 Td (A) Tj ET Q q 0 0 0 rg BT 297.91 622.75 Td ( and OCGH unit grants made to employees and directors ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 610.75 Td (subsequent to our initial public of) Tj ET Q q 0 0 0 rg BT 195.47 610.75 Td (fering, coupled with an overall shift in compensation mix from cash to equity) Tj ET Q q 0 0 0 rg BT 529.34 610.75 Td (. ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 589.75 Td (Incentive Income Compensation) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 572.75 Td (Incentive income compensation expense increased ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 315.58 572.75 Td ($7.5) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 335.04 572.75 Td ( million, or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 383.39 572.75 Td (4.7%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 406.18 572.75 Td (, to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 422.86 572.75 Td ($168.3 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 484.56 572.75 Td ( for the year ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 560.75 Td (ended December 31, 2016, from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 196.75 560.75 Td ($160.8 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 258.46 560.75 Td ( for the year ended December 31, 2015. ) Tj ET Q q 0 0 0 rg BT 441.17 560.75 Td (The percentage increase ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 548.75 Td (in incentive income compensation expense was smaller than the corresponding increase of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 455.78 548.75 Td (34.6%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 484.14 548.75 Td ( in segment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 536.75 Td (incentive income, as a result of timing dif) Tj ET Q q 0 0 0 rg BT 229.90 536.75 Td (ferences between the recognition of segment incentive income and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 524.75 Td (incentive income compensation expense, as well as dif) Tj ET Q q 0 0 0 rg BT 292.73 524.75 Td (ferences in the applicable funds’) Tj ET Q q 0 0 0 rg BT 435.23 524.75 Td ( compensation percentages. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 512.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 100.40 512.75 Td (, 2015 included catch-up tax amounts related to incentive interests previously awarded to certain ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 500.75 Td (investment professionals.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 479.75 Td (General and ) Tj ET Q q 0 0 0 rg BT 107.45 479.75 Td (Administrative) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 462.75 Td (General and administrative expense increased ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 295.01 462.75 Td ($34.7) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 320.03 462.75 Td ( million, or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 368.38 462.75 Td (31.3%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 396.73 462.75 Td (, to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 413.41 462.75 Td ($145.4 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 475.11 462.75 Td ( for the year ended ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 450.75 Td (December 31, 2016, from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 166.17 450.75 Td ($1) Tj ET Q q 0 0 0 rg BT 176.55 450.75 Td (10.7 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 227.13 450.75 Td ( for the year ended December 31, 2015. Excluding the impact of foreign ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 438.75 Td (currency-related items, which stemmed primarily from foreign-currency hedges used to economically hedge our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 426.75 Td (non-U.S. dollar denominated revenues and expenses, general and administrative expense increased $1.0 million, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 414.75 Td (or 0.8%, to $133.8 million from $132.8 million.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 393.75 Td (Depreciation and ) Tj ET Q q 0 0 0 rg BT 128.01 393.75 Td (Amortization) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 376.75 Td (Depreciation and amortization expense increased ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 308.35 376.75 Td ($2.2) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 327.82 376.75 Td ( million, or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 376.16 376.75 Td (15.7%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 404.52 376.75 Td (, to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 421.19 376.75 Td ($16.2 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 477.33 376.75 Td ( for the year ended ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 364.75 Td (December 31, 2016, from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 166.17 364.75 Td ($14.0 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 222.31 364.75 Td ( for the year ended December 31, 2015, primarily reflecting leasehold ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 352.75 Td (improvements associated with of) Tj ET Q q 0 0 0 rg BT 194.88 352.75 Td (fice space expansion.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 331.75 Td (Consolidated Fund Expenses ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 315.25 Td (Consolidated fund expenses decreased ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 264.46 315.25 Td ($178.3) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 295.04 315.25 Td ( million, or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 343.39 315.25 Td (96.8%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 371.74 315.25 Td (, to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 388.42 315.25 Td ($5.8 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 439.00 315.25 Td ( for the year ended ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 303.25 Td (December 31, 2016, from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 166.17 303.25 Td ($184.1 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 227.87 303.25 Td ( for the year ended December 31, 2015, reflecting the impact of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 291.25 Td (deconsolidation.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 270.25 Td (Other Income \(Loss\)) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 253.75 Td (Interest Expense ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 237.25 Td (Interest expense decreased ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 212.19 237.25 Td ($96.2) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 237.22 237.25 Td ( million, or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 285.56 237.25 Td (44.4%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 313.92 237.25 Td (, to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 330.59 237.25 Td ($120.6 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 392.29 237.25 Td ( for the year ended December 31, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 225.25 Td (2016, from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 100.58 225.25 Td ($216.8 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 162.29 225.25 Td ( for the year ended December 31, 2015, reflecting the impact of deconsolidation.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 204.25 Td (Interest and Dividend Income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 187.75 Td (Interest and dividend income decreased ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 266.11 187.75 Td ($1,793.7) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 305.04 187.75 Td ( million, or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 353.38 187.75 Td (91.6%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 381.74 187.75 Td (, to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 398.41 187.75 Td ($165.1 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 460.12 187.75 Td ( for the year ended ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 175.75 Td (December 31, 2016, from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 166.17 175.75 Td ($1,958.8 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 236.21 175.75 Td ( for the year ended December 31, 2015, reflecting the impact of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 163.75 Td (deconsolidation.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 142.75 Td (Net Realized Gain \(Loss\) on Consolidated Funds’) Tj ET Q q 0 0 0 rg BT 269.01 142.75 Td ( Investments ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 126.25 Td (Net realized gain \(loss\) on consolidated funds’) Tj ET Q q 0 0 0 rg BT 290.19 126.25 Td ( investments decreased ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 398.58 126.25 Td ($1,149.6) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 437.50 126.25 Td ( million, to a net gain of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 114.25 Td ($27.6 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 106.14 114.25 Td ( for the year ended December 31, 2016, from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 309.03 114.25 Td ($1,177.2 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 379.08 114.25 Td ( for the year ended December 31, 2015, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 102.25 Td (reflecting our funds’) Tj ET Q q 0 0 0 rg BT 136.90 102.25 Td ( performance, as well as the impact of deconsolidation.) Tj ET Q endstream endobj 175 0 obj <> endobj 176 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (87) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Net Change in Unrealized ) Tj ET Q q 0 0 0 rg BT 166.92 741.75 Td (Appreciation \(Depreciation\) on Consolidated Funds’) Tj ET Q q 0 0 0 rg BT 395.39 741.75 Td ( Investments ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 725.25 Td (The net change in unrealized appreciation \(depreciation\) on consolidated funds’) Tj ET Q q 0 0 0 rg BT 438.08 725.25 Td ( investments decreased ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 713.25 Td ($3,755.0) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 88.93 713.25 Td ( million, to a net loss of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 193.42 713.25 Td ($12.5 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 249.56 713.25 Td ( for the year ended December 31, 2016, from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 452.45 713.25 Td ($3,767.5 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 522.50 713.25 Td ( for the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 701.25 Td (year ended December 31, 2015, primarily reflecting the impact of deconsolidation.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 680.25 Td (Investment Income) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 663.75 Td (Investment income increased ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 218.84 663.75 Td ($147.1) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 249.43 663.75 Td ( million, to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.22 663.75 Td ($199.1 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 358.92 663.75 Td ( for the year ended December 31, 2016, from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 651.75 Td ($52.0 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 106.14 651.75 Td ( for the year ended December 31, 2015, primarily reflecting the impact of deconsolidation. DoubleLine ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 639.75 Td (accounted for investment income of $66.1 million and $55.0 million in 2016 and 2015, respectively) Tj ET Q q 0 0 0 rg BT 482.85 639.75 Td (, of which ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 627.75 Td (performance fees accounted for $4.7 million and $4.3 million, respectively) Tj ET Q q 0 0 0 rg BT 374.99 627.75 Td (.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 606.75 Td (Other Income \(Expense\), Net) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 590.25 Td (Other income \(expense\), net decreased ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 264.98 590.25 Td ($6.5) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 284.45 590.25 Td ( million, or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 332.79 590.25 Td (32.5%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 361.15 590.25 Td (, to income of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 423.95 590.25 Td ($13.5 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 480.10 590.25 Td ( for the year ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 578.25 Td (ended December 31, 2016, from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 196.75 578.25 Td ($20.0 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 252.90 578.25 Td ( for the year ended December 31, 2015. ) Tj ET Q q 0 0 0 rg BT 435.61 578.25 Td (The 2016 and 2015 years, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 566.25 Td (respectively) Tj ET Q q 0 0 0 rg BT 102.06 566.25 Td (, included $21.1 million and $23.6 million of income received for contractually reimbursable costs ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 554.25 Td (associated with the Highstar acquisition, and $3.2 million and $3.6 million of net losses associated with non-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 542.25 Td (operating corporate activities. ) Tj ET Q q 0 0 0 rg BT 185.63 542.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 236.03 542.25 Td (, 2016 included a $4.4 million impairment charge on our corporate ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 530.25 Td (aircraft.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 509.25 Td (Income T) Tj ET Q q 0 0 0 rg BT 90.76 509.25 Td (axes ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 487.25 Td (Income taxes increased ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 194.39 487.25 Td ($25.0) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 219.41 487.25 Td ( million, to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 267.21 487.25 Td ($42.5 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 323.35 487.25 Td ( for the year ended December 31, 2016, from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 526.24 487.25 Td ($17.5 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 475.25 Td (million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 78.34 475.25 Td ( for the year ended December 31, 2015, primarily reflecting higher pre-tax income attributable to Class ) Tj ET Q q 0 0 0 rg BT 532.46 475.25 Td (A) Tj ET Q q 0 0 0 rg BT 538.58 475.25 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 463.25 Td (unitholders. ) Tj ET Q q 0 0 0 rg BT 107.08 463.25 Td (The ef) Tj ET Q q 0 0 0 rg BT 135.24 463.25 Td (fective tax rate applicable to Class ) Tj ET Q q 0 0 0 rg BT 289.21 463.25 Td (A) Tj ET Q q 0 0 0 rg BT 295.33 463.25 Td ( unitholders for both 2016 and 2015 was 17%. W) Tj ET Q q 0 0 0 rg BT 514.18 463.25 Td (e ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 451.25 Td (generally expect variability in tax rates between periods, because the ef) Tj ET Q q 0 0 0 rg BT 366.11 451.25 Td (fective tax rate is a function of the mix of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 439.25 Td (income and other factors, each of which can have a material impact on the particular period’) Tj ET Q q 0 0 0 rg BT 456.15 439.25 Td (s income tax expense ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 427.25 Td (and may vary significantly within or between years. Please see “—Understanding Our Results—Consolidation of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 415.25 Td (Oaktree Funds.”) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 394.25 Td (Net \(Income\) Loss ) Tj ET Q q 0 0 0 rg BT 139.09 394.25 Td (Attributable to Non-controlling Interests in Consolidated Funds ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 377.75 Td (Net \(income\) loss attributable to non-controlling interests in consolidated funds increased ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 481.77 377.75 Td ($1,832.6) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 520.69 377.75 Td ( million, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 365.75 Td (to income of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 107.25 365.75 Td ($22.9 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 163.39 365.75 Td ( for the year ended December 31, 2016, from a loss of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 406.30 365.75 Td ($1,809.7 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 476.35 365.75 Td ( for the year ended ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 353.75 Td (December 31, 2015. ) Tj ET Q q 0 0 0 rg BT 145.99 353.75 Td (The increase was primarily driven by our funds’) Tj ET Q q 0 0 0 rg BT 354.59 353.75 Td ( performance in each period, as well as the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 341.75 Td (impact of deconsolidation. ) Tj ET Q q 0 0 0 rg BT 171.00 341.75 Td (These ef) Tj ET Q q 0 0 0 rg BT 209.73 341.75 Td (fects are described in more detail under “—Other Income \(Loss\)” above.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 320.75 Td (Net Income ) Tj ET Q q 0 0 0 rg BT 106.31 320.75 Td (Attributable to Oaktree Capital Group, LLC ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 304.25 Td (Net income attributable to Oaktree Capital Group, LLC increased ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 375.59 304.25 Td ($123.4) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 406.18 304.25 Td ( million, to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 453.97 304.25 Td ($194.7 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 515.68 304.25 Td ( for the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 292.25 Td (year ended December 31, 2016, from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 218.98 292.25 Td ($71.3 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 275.13 292.25 Td ( for the year ended December 31, 2015. ) Tj ET Q q 0 0 0 rg BT 457.84 292.25 Td (The increase was ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 280.25 Td (primarily attributable to higher segment profits, as well as a larger allocation of income to OCG resulting from an ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 268.25 Td (increase in the average number of Class ) Tj ET Q q 0 0 0 rg BT 231.77 268.25 Td (A) Tj ET Q q 0 0 0 rg BT 237.89 268.25 Td ( units outstanding.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 238.25 Td (Y) Tj ET Q q 0 0 0 rg BT 56.30 238.25 Td (ear Ended December 31, 2015 Compared to ) Tj ET Q q 0 0 0 rg BT 264.54 238.25 Td (Y) Tj ET Q q 0 0 0 rg BT 270.83 238.25 Td (ear Ended December 31, 2014) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 221.75 Td (Revenues ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 205.25 Td (Management Fees ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 188.75 Td (Management fees increased $3.2 million, or 1.7%, to $195.3 million for the year ended December 31, 2015, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 176.75 Td (from $192.1 million for the year ended December 31, 2014. ) Tj ET Q q 0 0 0 rg BT 317.19 176.75 Td (The increase primarily reflected higher fees earned ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 164.75 Td (across non-consolidated funds and accounts, partially of) Tj ET Q q 0 0 0 rg BT 298.86 164.75 Td (fset by lower advisory) Tj ET Q q 0 0 0 rg BT 394.26 164.75 Td (, director) Tj ET Q q 0 0 0 rg BT 432.61 164.75 Td (, transaction and certain ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 152.75 Td (other ancillary fees for the benefit of our consolidated funds. W) Tj ET Q q 0 0 0 rg BT 329.98 152.75 Td (e reduce our management fees by the amount of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 140.75 Td (advisory and other ancillary fees so that our funds’) Tj ET Q q 0 0 0 rg BT 272.53 140.75 Td ( investors share pro rata in the economic benefit of the ancillary ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 128.75 Td (fees. ) Tj ET Q q 0 0 0 rg BT 77.06 128.75 Td (Thus, in our consolidated financial statements, these ancillary fees are treated as being attributable to non-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 116.75 Td (controlling interests in consolidated funds and have no impact on the net income attributable to OCG. ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 95.75 Td (Incentive Income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 79.25 Td (Incentive income increased $4.8 million, or 266.7%, to $6.6 million for the year ended December 31, 2015, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 67.25 Td (from $1.8 million for the year ended December 31, 2014, primarily reflecting higher incentive income from the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 55.25 Td (unconsolidated Power Fund II and separate accounts.) Tj ET Q endstream endobj 177 0 obj <> endobj 178 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (88) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Expenses ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 725.25 Td (Compensation and Benefits ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 708.25 Td (Compensation and benefits expense increased $28.4 million, or 7.3%, to $416.9 million for the year ended ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 696.25 Td (December 31, 2015, from $388.5 million for the year ended December 31, 2014, in part reflecting growth in average ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 684.25 Td (headcount, including the Highstar acquisition.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 663.25 Td (Equity-based Compensation ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 646.75 Td (Equity-based compensation expense increased $13.0 million, or 31.4%, to $54.4 million for the year ended ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 634.75 Td (December 31, 2015, from $41.4 million for the year ended December 31, 2014, primarily reflecting non-cash ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 622.75 Td (amortization expense associated with vesting of restricted unit grants made to employees and directors subsequent ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 610.75 Td (to our initial public of) Tj ET Q q 0 0 0 rg BT 140.98 610.75 Td (fering.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 589.75 Td (Incentive Income Compensation) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 572.75 Td (Incentive income compensation expense decreased $60.4 million, or 27.3%, to $160.8 million for the year ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 560.75 Td (ended December 31, 2015, from $221.2 million for the year ended December 31, 2014. ) Tj ET Q q 0 0 0 rg BT 441.17 560.75 Td (The percentage decrease ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 548.75 Td (was smaller than the corresponding decline of 46.3% in segment incentive income, primarily due to timing ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 536.75 Td (dif) Tj ET Q q 0 0 0 rg BT 60.38 536.75 Td (ferences associated with the recognition of segment incentive income and incentive income compensation ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 524.75 Td (expense, as well as catch-up tax amounts related to incentive interests awarded to certain investment professionals ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 512.75 Td (in 2014.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 491.75 Td (General and ) Tj ET Q q 0 0 0 rg BT 107.45 491.75 Td (Administrative) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 474.75 Td (General and administrative expense increased $10.9 million, or 10.9%, to $1) Tj ET Q q 0 0 0 rg BT 423.79 474.75 Td (10.7 million for the year ended ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 462.75 Td (December 31, 2015, from $99.8 million for the year ended December 31, 2014. Excluding the impact of foreign ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 450.75 Td (currency-related items, which stemmed primarily from foreign-currency hedges used to economically hedge our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 438.75 Td (non-U.S. dollar denominated revenues and expenses, general and administrative expense decreased $0.8 million, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 426.75 Td (or 0.6%, to $132.8 million from $133.6 million.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 405.75 Td (Depreciation and ) Tj ET Q q 0 0 0 rg BT 128.01 405.75 Td (Amortization) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 388.75 Td (Depreciation and amortization expense increased $6.0 million, or 75.0%, to $14.0 million for the year ended ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 376.75 Td (December 31, 2015, from $8.0 million. ) Tj ET Q q 0 0 0 rg BT 224.90 376.75 Td (The increase in part reflected amortization of leasehold improvements ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 364.75 Td (associated with of) Tj ET Q q 0 0 0 rg BT 129.31 364.75 Td (fice space expansion and acquired intangibles from the Highstar acquisition.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 343.75 Td (Consolidated Fund Expenses ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 327.25 Td (Consolidated fund expenses decreased $4.4 million, or 2.3%, to $184.1 million for the year ended ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 315.25 Td (December 31, 2015, from $188.5 million for the year ended December 31, 2014. ) Tj ET Q q 0 0 0 rg BT 410.58 315.25 Td (The decrease reflected lower ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 303.25 Td (professional fees and other costs of our consolidated funds.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 282.25 Td (Other Income \(Loss\) ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 265.75 Td (Interest Expense ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 249.25 Td (Interest expense increased $86.9 million, or 66.9%, to $216.8 million for the year ended December 31, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 237.25 Td (2015, from $129.9 million for the year ended December 31, 2014, primarily attributable to our consolidated funds.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 216.25 Td (Interest and Dividend Income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 199.75 Td (Interest and dividend income increased $56.2 million, or 3.0%, to $1,958.8 million for the year ended ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 187.75 Td (December 31, 2015, from $1,902.6 million for the year ended December 31, 2014, primarily attributable to higher ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 175.75 Td (income from Distressed Debt, Real Estate and Senior Loan funds, partially of) Tj ET Q q 0 0 0 rg BT 390.55 175.75 Td (fset by lower income from Control ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 163.75 Td (Investing funds.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 142.75 Td (Net Realized Gain on Consolidated Funds’) Tj ET Q q 0 0 0 rg BT 238.45 142.75 Td ( Investments ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 126.25 Td (Net realized gain on consolidated funds’) Tj ET Q q 0 0 0 rg BT 262.97 126.25 Td ( investments decreased $954.4 million, or 44.8%, to $1,177.2 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 114.25 Td (million for the year ended December 31, 2015, from $2,131.6 million for the year ended December 31, 2014, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 102.25 Td (reflecting in part a larger amount of portfolio realizations in 2014 and that year) Tj ET Q q 0 0 0 rg BT 393.91 102.25 Td (’) Tj ET Q q 0 0 0 rg BT 395.95 102.25 Td (s generally stronger financial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 90.25 Td (markets.) Tj ET Q endstream endobj 179 0 obj <> endobj 180 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (89) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Net Change in Unrealized ) Tj ET Q q 0 0 0 rg BT 166.92 741.75 Td (Appreciation \(Depreciation\) on Consolidated Funds’) Tj ET Q q 0 0 0 rg BT 395.39 741.75 Td ( Investments ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 725.25 Td (The net change in unrealized appreciation \(depreciation\) on consolidated funds’) Tj ET Q q 0 0 0 rg BT 438.08 725.25 Td ( investments was a loss of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 713.25 Td ($3,767.5 million for the year ended December 31, 2015 and $993.3 million for the year ended December 31, 2014, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 701.25 Td (reflecting the generally stronger financial markets in 2014. ) Tj ET Q q 0 0 0 rg BT 311.63 701.25 Td (The 2015 net loss reflected losses from Distressed ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 689.25 Td (Debt, Senior Loan and High ) Tj ET Q q 0 0 0 rg BT 176.02 689.25 Td (Y) Tj ET Q q 0 0 0 rg BT 182.31 689.25 Td (ield Bond funds. ) Tj ET Q q 0 0 0 rg BT 259.41 689.25 Td (The 2014 net loss reflected losses from Distressed Debt funds, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 677.25 Td (partially of) Tj ET Q q 0 0 0 rg BT 95.40 677.25 Td (fset by gains from Real Estate funds.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 656.25 Td (Investment Income) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 639.75 Td (Investment income increased $18.3 million, or 54.3%, to $52.0 million for the year ended December 31, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 627.75 Td (2015, from $33.7 million for the year ended December 31, 2014, reflecting higher income of $17.3 million from our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 615.75 Td (investments in companies. DoubleLine accounted for investment income of $55.0 million and $46.9 million in 2015 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 603.75 Td (and 2014, respectively) Tj ET Q q 0 0 0 rg BT 149.32 603.75 Td (, of which performance fees accounted for $4.3 million and $10.1 million, respectively) Tj ET Q q 0 0 0 rg BT 524.89 603.75 Td (. ) Tj ET Q q 0 0 0 rg BT 533.04 603.75 Td (The ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 591.75 Td (2015 period included a market-value loss on our minority equity investment in China Cinda ) Tj ET Q q 0 0 0 rg BT 452.44 591.75 Td (Asset Management Co., ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 579.75 Td (Ltd.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 558.75 Td (Other Income, Net ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 542.25 Td (Other income, net increased $17.0 million, to $20.0 million for the year ended December 31, 2015, from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 530.25 Td ($3.0 million for the year ended December 31, 2014. ) Tj ET Q q 0 0 0 rg BT 283.29 530.25 Td (The 2015 period reflected $23.6 million of income received for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 518.25 Td (contractually reimbursable costs associated with the Highstar acquisition, partially of) Tj ET Q q 0 0 0 rg BT 421.66 518.25 Td (fset by losses associated with ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 506.25 Td (non-operating corporate activities. ) Tj ET Q q 0 0 0 rg BT 206.02 506.25 Td (The 2014 period reflected $8.3 million of income received for contractually ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 494.25 Td (reimbursable costs associated with the Highstar acquisition and $1.5 million of income attributable to proceeds ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 482.25 Td (received as part of a 2010 arbitration award, partially of) Tj ET Q q 0 0 0 rg BT 293.84 482.25 Td (fset by a $3.0 million write-of) Tj ET Q q 0 0 0 rg BT 420.38 482.25 Td (f of unamortized debt issuance ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 470.25 Td (costs associated with the refinancing of our corporate credit facility) Tj ET Q q 0 0 0 rg BT 343.29 470.25 Td (, a $2.1 million loss related to the sale of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 458.25 Td (properties received as part of the 2010 arbitration award, and a $1.5 million loss associated with non-operating ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 446.25 Td (activities. ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 425.25 Td (Income T) Tj ET Q q 0 0 0 rg BT 90.76 425.25 Td (axes ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 408.75 Td (Income taxes decreased $1.0 million, or 5.4%, to $17.5 million for the year ended December 31, 2015, from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 396.75 Td ($18.5 million for the year ended December 31, 2014. ) Tj ET Q q 0 0 0 rg BT 288.85 396.75 Td (The decrease was primarily attributable to the decline in pre-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 384.75 Td (tax income attributable to Class ) Tj ET Q q 0 0 0 rg BT 191.74 384.75 Td (A) Tj ET Q q 0 0 0 rg BT 197.86 384.75 Td ( unitholders, partially of) Tj ET Q q 0 0 0 rg BT 300.51 384.75 Td (fset by an increase in the ef) Tj ET Q q 0 0 0 rg BT 422.62 384.75 Td (fective tax rate. ) Tj ET Q q 0 0 0 rg BT 495.81 384.75 Td (The ef) Tj ET Q q 0 0 0 rg BT 523.97 384.75 Td (fective ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 372.75 Td (tax rates applicable to Class ) Tj ET Q q 0 0 0 rg BT 177.29 372.75 Td (A) Tj ET Q q 0 0 0 rg BT 183.41 372.75 Td ( unitholders for 2015 and 2014, respectively) Tj ET Q q 0 0 0 rg BT 376.68 372.75 Td (, were 17% and 13%. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 351.75 Td (Net \(Income\) Loss ) Tj ET Q q 0 0 0 rg BT 139.09 351.75 Td (Attributable to Non-controlling Interests in Consolidated Funds ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 335.25 Td (Net \(income\) loss attributable to non-controlling interests in consolidated funds decreased to a loss of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 323.25 Td ($1,809.7 million for the year ended December 31, 2015, from income of $1,649.9 million for the year ended ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 311.25 Td (December 31, 2014, reflecting lower net gains on investments. ) Tj ET Q q 0 0 0 rg BT 332.19 311.25 Td (These ef) Tj ET Q q 0 0 0 rg BT 370.92 311.25 Td (fects are described in more detail under ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 299.25 Td (“—Other Income \(Loss\)” above.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 278.25 Td (Net Income ) Tj ET Q q 0 0 0 rg BT 106.31 278.25 Td (Attributable to Oaktree Capital Group, LLC ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 261.75 Td (Net income attributable to Oaktree Capital Group, LLC decreased $55.0 million, or 43.5%, to $71.3 million ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 249.75 Td (for the year ended December 31, 2015, from $126.3 million for the year ended December 31, 2014. ) Tj ET Q q 0 0 0 rg BT 494.53 249.75 Td (The decrease ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 237.75 Td (reflected lower segment profits and a larger allocation of income to OCG resulting from an increase in the average ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 225.75 Td (number of Class ) Tj ET Q q 0 0 0 rg BT 125.03 225.75 Td (A) Tj ET Q q 0 0 0 rg BT 131.15 225.75 Td ( units outstanding.) Tj ET Q endstream endobj 181 0 obj <> endobj 182 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (90) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Segment Financial Data ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 725.25 Td (The following table presents segment financial data: ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 318.92 725.25 Td ( ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 700.75 m 425.5 700.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425.5 700.75 m 433.5 700.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 700.75 m 493.5 700.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 700.75 m 501.5 700.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 700.75 m 561.5 700.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 684.75 m 425.5 684.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 700.75 m 493.5 700.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 684.75 m 493.5 684.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 700.75 m 501.5 700.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 700.75 m 561.5 700.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 684.75 m 561.5 684.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 610.75 m 425.5 610.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 596.75 m 425.5 596.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 610.75 m 493.5 610.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 596.75 m 493.5 596.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 610.75 m 561.5 610.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 596.75 m 561.5 596.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 512.75 m 425.5 512.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 498.75 m 425.5 498.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 512.75 m 493.5 512.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 498.75 m 493.5 498.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 512.75 m 561.5 512.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 498.75 m 561.5 498.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 456.75 m 425.5 456.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 441.75 m 425.5 441.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 439.75 m 425.5 439.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 456.75 m 493.5 456.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 441.75 m 493.5 441.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 439.75 m 493.5 439.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 456.75 m 561.5 456.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 441.75 m 561.5 441.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 439.75 m 561.5 439.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 439.75 m 425.5 439.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 441.75 m 425.5 441.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 439.75 m 493.5 439.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 441.75 m 493.5 441.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 439.75 m 561.5 439.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 441.75 m 561.5 441.75 l s BT /F3 4.00 Tf ET q 0 0 0 rg BT 52.00 704.14 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 394.20 704.75 Td (As of or for the Year Ended December 31,) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.00 689.37 Td (Segment Statements of Operations Data:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 227.03 689.37 Td ( ) Tj ET Q BT /F2 9.00 Tf ET BT /F2 5.85 Tf ET q 0 0 0 rg BT 229.81 693.66 Td (\(1\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 387.20 688.75 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 455.20 688.75 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 523.20 688.75 Td (2014) Tj ET Q BT /F3 4.00 Tf ET q 0 0 0 rg BT 52.00 670.14 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 400.55 677.15 Td (\(in thousands, except per unit data or) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 424.25 670.15 Td (as otherwise indicated\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 657.15 Td (Revenues:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 368.00 657.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 504.00 657.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 643.15 Td (Management fees) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 146.95 642.70 Td (......................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 368.00 643.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.45 643.15 Td (785,673) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 436.00 643.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 457.45 643.15 Td (753,805) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 504.00 643.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 643.15 Td (762,823) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 629.15 Td (Incentive income) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 141.95 628.70 Td (........................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.45 629.15 Td (355,152) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 457.45 629.15 Td (263,806) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 629.15 Td (491,402) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 615.15 Td (Investment income) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 151.95 614.70 Td (....................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.45 615.15 Td (221,377) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.45 615.15 Td (48,253) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 615.15 Td (117,662) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 601.15 Td (Total revenues) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 151.95 600.70 Td (....................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 381.95 601.15 Td (1,362,202) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 449.95 601.15 Td (1,065,864) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.95 601.15 Td (1,371,887) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 587.15 Td (Expenses:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 573.15 Td (Compensation and benefits) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 184.45 572.70 Td (.......................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 386.45 573.15 Td (\(381,937) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 573.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 454.45 573.15 Td (\(404,442) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 573.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 573.15 Td (\(379,360) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 573.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 559.15 Td (Equity-based compensation) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 186.95 558.70 Td (......................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 391.45 559.15 Td (\(51,759) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 559.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 459.45 559.15 Td (\(37,978) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 559.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 527.45 559.15 Td (\(19,705) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 559.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 545.15 Td (Incentive income compensation) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 199.45 544.70 Td (.................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 386.45 545.15 Td (\(169,683) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 545.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 454.45 545.15 Td (\(141,822) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 545.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 545.15 Td (\(231,871) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 545.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 531.15 Td (General and administrative) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 181.95 530.70 Td (........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 386.45 531.15 Td (\(123,784) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 531.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 454.45 531.15 Td (\(120,783) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 531.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 531.15 Td (\(127,954) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 531.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 517.15 Td (Depreciation and amortization) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 194.45 516.70 Td (...................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 391.45 517.15 Td (\(12,219) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 517.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 459.45 517.15 Td (\(10,018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 517.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 532.45 517.15 Td (\(7,249) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 517.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 503.15 Td (Total expenses) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 154.45 502.70 Td (...................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 386.45 503.15 Td (\(739,382) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 503.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 454.45 503.15 Td (\(715,043) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 503.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 503.15 Td (\(766,139) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 503.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 489.15 Td (Adjusted net income before interest and other income \(expense\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 309.45 488.70 Td (.....................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.45 489.15 Td (622,820) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 457.45 489.15 Td (350,821) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 489.15 Td (605,748) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 475.15 Td (Interest expense, net of interest income ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 230.09 479.44 Td (\(2\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 237.24 475.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 241.95 474.70 Td (................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 391.45 475.15 Td (\(31,845) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 475.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 459.45 475.15 Td (\(35,032) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 475.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 527.45 475.15 Td (\(30,190) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 475.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 461.15 Td (Other income \(expense\), net) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 189.45 460.70 Td (.....................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 396.45 461.15 Td (\(8,392) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 461.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 464.45 461.15 Td (\(3,927) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 461.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 532.45 461.15 Td (\(2,431) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 461.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 445.15 Td (Adjusted net income) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 139.45 444.70 Td (.........................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 368.00 445.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.45 445.15 Td (582,583) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 436.00 445.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 457.45 445.15 Td (311,862) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 504.00 445.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 445.15 Td (573,127) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 427.15 Td (Adjusted net income-OCG) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 161.95 426.70 Td (................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 368.00 427.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.45 427.15 Td (194,844) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 436.00 427.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.45 427.15 Td (79,941) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 504.00 427.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 427.15 Td (137,159) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 413.15 Td (Adjusted net income per Class A unit) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 219.45 412.70 Td (.........................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 404.45 413.15 Td (3.11) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 472.45 413.15 Td (1.62) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.45 413.15 Td (3.22) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 399.15 Td (Distributable earnings) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 144.45 398.70 Td (.......................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.45 399.15 Td (538,420) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 457.45 399.15 Td (447,576) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 399.15 Td (606,136) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 385.15 Td (Distributable earnings-OCG) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 166.95 384.70 Td (..............................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.45 385.15 Td (184,225) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 457.45 385.15 Td (119,406) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 385.15 Td (145,370) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 371.15 Td (Distributable earnings per Class A unit) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 226.95 370.70 Td (......................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 404.45 371.15 Td (2.94) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 472.45 371.15 Td (2.42) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.45 371.15 Td (3.41) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 357.15 Td (Fee-related earnings) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 139.45 356.70 Td (.........................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.45 357.15 Td (267,733) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 457.45 357.15 Td (218,562) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 357.15 Td (248,260) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 343.15 Td (Fee-related earnings-OCG) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 164.45 342.70 Td (...............................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 394.45 343.15 Td (93,740) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.45 343.15 Td (66,328) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 343.15 Td (59,915) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 329.15 Td (Fee-related earnings per Class A unit) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 221.95 328.70 Td (........................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 404.45 329.15 Td (1.50) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 472.45 329.15 Td (1.34) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.45 329.15 Td (1.41) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 315.15 Td (Weighted average number of Operating Group units outstanding) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 309.45 314.70 Td (.....................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.45 315.15 Td (154,687) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 457.45 315.15 Td (153,751) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 315.15 Td (152,660) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 301.15 Td (Weighted average number of Class A units outstanding) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 274.45 300.70 Td (...................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 394.45 301.15 Td (62,565) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.45 301.15 Td (49,324) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 301.15 Td (42,582) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.00 279.15 Td (Operating Metrics:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 279.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 279.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 279.15 Td ( ) Tj ET Q BT /F5 9.00 Tf ET q 0 0 0 rg BT 52.00 265.15 Td (Assets under management \(in millions\):) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 265.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 265.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 265.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 251.15 Td (Assets under management) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 181.95 250.70 Td (........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 368.00 251.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.45 251.15 Td (100,504) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 436.00 251.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.45 251.15 Td (97,359) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 504.00 251.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 251.15 Td (90,831) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 237.15 Td (Management fee-generating assets under management) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 294.45 236.70 Td (...........................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 394.45 237.15 Td (79,767) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.45 237.15 Td (78,897) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 237.15 Td (78,079) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 223.15 Td (Incentive-creating assets under management ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 254.45 222.70 Td (...........................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 394.45 223.15 Td (33,627) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.45 223.15 Td (31,923) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 223.15 Td (33,861) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 209.15 Td (Uncalled capital commitments ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 194.45 208.70 Td (...................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 394.45 209.15 Td (20,755) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.45 209.15 Td (21,650) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 209.15 Td (10,333) Tj ET Q BT /F5 9.00 Tf ET q 0 0 0 rg BT 52.00 195.15 Td (Accrued incentives \(fund level\):) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 181.15 Td (Incentives created \(fund level\) ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 194.45 180.70 Td (...................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.45 181.15 Td (784,032) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 454.45 181.15 Td (\(100,384) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 181.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 181.15 Td (164,370) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 167.15 Td (Incentives created \(fund level\), net of associated incentive income) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 79.00 158.15 Td (compensation expense) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 176.95 157.70 Td (..........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.45 158.15 Td (320,472) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 459.45 158.15 Td (\(66,399) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 158.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 158.15 Td (24,228) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 144.15 Td (Accrued incentives \(fund level\) ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 196.95 143.70 Td (..................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 381.95 144.15 Td (2,014,097) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 449.95 144.15 Td (1,585,217) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.95 144.15 Td (1,949,407) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 130.15 Td (Accrued incentives \(fund level\), net of associated incentive income) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 79.00 121.15 Td (compensation expense) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 176.95 120.70 Td (..........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.45 121.15 Td (946,542) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 457.45 121.15 Td (811,540) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 121.15 Td (999,923) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 102.75 m 150.5 102.75 l s BT /F1 10.00 Tf ET BT /F3 9.00 Tf ET q 0 0 0 rg BT 49.00 89.45 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 74.00 89.45 Td (Our business is comprised of one segment, our investment management segment, which consists of the investment ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 74.00 78.65 Td (management services that we provide to our clients. ) Tj ET Q q 0 0 0 rg BT 286.44 78.65 Td (The components of revenues and expenses used in determining ) Tj ET Q q 0 0 0 rg BT 544.61 78.65 Td (ANI ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 74.00 67.85 Td (do not give ef) Tj ET Q q 0 0 0 rg BT 127.88 67.85 Td (fect to the consolidation of the funds that we manage. Segment revenues include investment income \(loss\) ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 74.00 57.05 Td (that is classified in other income \(loss\) in the GAAP-basis statements of operations. Segment revenues and expenses ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 74.00 46.25 Td (also reflect Oaktree’) Tj ET Q q 0 0 0 rg BT 153.87 46.25 Td (s proportionate economic interest in Highstar) Tj ET Q q 0 0 0 rg BT 331.96 46.25 Td (, whereby amounts received for contractually ) Tj ET Q endstream endobj 183 0 obj <> endobj 184 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (91) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 74.00 742.45 Td (reimbursable costs are classified for segment reporting as expenses and under GAAP) Tj ET Q q 0 0 0 rg BT 416.01 742.45 Td ( as other income. In addition, ) Tj ET Q q 0 0 0 rg BT 536.08 742.45 Td (ANI ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 74.00 731.65 Td (excludes the ef) Tj ET Q q 0 0 0 rg BT 134.38 731.65 Td (fect of \(a\) non-cash equity-based compensation expense related to unit grants made before our initial ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 74.00 720.85 Td (public of) Tj ET Q q 0 0 0 rg BT 107.36 720.85 Td (fering, \(b\) acquisition-related items, including amortization of intangibles and changes in the contingent ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 74.00 710.05 Td (consideration liability) Tj ET Q q 0 0 0 rg BT 156.38 710.05 Td (, \(c\) dif) Tj ET Q q 0 0 0 rg BT 183.71 710.05 Td (ferences arising from EVUs that are classified as liability awards under GAAP) Tj ET Q q 0 0 0 rg BT 491.68 710.05 Td ( but as equity ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 74.00 699.25 Td (awards for segment reporting, \(d\) income taxes, \(e\) other income or expenses applicable to OCG or its Intermediate ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 74.00 688.45 Td (Holding Companies, and \(f\) the adjustment for non-controlling interests. Moreover) Tj ET Q q 0 0 0 rg BT 401.16 688.45 Td (, third-party placement costs associated ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 74.00 677.65 Td (with closed-end funds under GAAP) Tj ET Q q 0 0 0 rg BT 213.92 677.65 Td ( are expensed as incurred, but for ) Tj ET Q q 0 0 0 rg BT 350.50 677.65 Td (ANI are capitalized and amortized as general and ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 74.00 666.85 Td (administrative expense in proportion to the associated management fee stream. Gains and losses resulting from foreign-) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 74.00 656.05 Td (currency transactions and hedging activities under GAAP) Tj ET Q q 0 0 0 rg BT 301.46 656.05 Td ( are recognized as general and administrative expense whether ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 74.00 645.25 Td (realized or unrealized in the current period, but for ) Tj ET Q q 0 0 0 rg BT 275.12 645.25 Td (ANI unrealized gains and losses from foreign-currency hedging ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 74.00 634.45 Td (activities are deferred until realized, at which time they are included in the same revenue or expense line item as the ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 74.00 623.65 Td (underlying exposure that was hedged. ) Tj ET Q q 0 0 0 rg BT 230.61 623.65 Td (Additionally) Tj ET Q q 0 0 0 rg BT 275.97 623.65 Td (, for ) Tj ET Q q 0 0 0 rg BT 293.48 623.65 Td (ANI, foreign-currency transaction gains and losses are included in ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 74.00 612.85 Td (other income \(expense\), net. Incentive income and incentive income compensation expense are included in ) Tj ET Q q 0 0 0 rg BT 506.25 612.85 Td (ANI when the ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 74.00 602.05 Td (underlying fund distributions are known or knowable as of the respective quarter end, which may be later than the time at ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 74.00 591.25 Td (which the same revenue or expense is included in the GAAP-basis statements of operations, for which the revenue ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 74.00 580.45 Td (standard is fixed or determinable and the expense standard is probable and reasonably estimable. CLO investments are ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 74.00 569.65 Td (carried at fair value for GAAP) Tj ET Q q 0 0 0 rg BT 190.89 569.65 Td ( reporting, whereas for segment reporting they are carried at amortized cost, subject to any ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 74.00 558.85 Td (impairment charges. Investment income on CLO investments is recognized in ) Tj ET Q q 0 0 0 rg BT 387.14 558.85 Td (ANI when cash distributions are received. ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 74.00 548.05 Td (Cash distributions are allocated between income and return of capital based on the ef) Tj ET Q q 0 0 0 rg BT 414.05 548.05 Td (fective yield method. ) Tj ET Q q 0 0 0 rg BT 500.59 548.05 Td (ANI is ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 74.00 537.25 Td (calculated at the Operating Group level. For a detailed description of our segment and operating metrics, please see “—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 74.00 526.45 Td (Segment and Operating Metrics” above.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 49.00 515.65 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 74.00 515.65 Td (Interest income was $6.6 million, $5.1 million and $3.6 million for the years ended December 31, 2016, 2015 and 2014, ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 74.00 504.85 Td (respectively) Tj ET Q q 0 0 0 rg BT 120.85 504.85 Td (.) Tj ET Q endstream endobj 185 0 obj <> endobj 186 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (92) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Operating Metrics ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 725.25 Td (W) Tj ET Q q 0 0 0 rg BT 95.26 725.25 Td (e monitor certain operating metrics that are either common to the alternative asset management industry ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 713.25 Td (or that we believe provide important data regarding our business. ) Tj ET Q q 0 0 0 rg BT 343.32 713.25 Td (These operating metrics include ) Tj ET Q q 0 0 0 rg BT 487.29 713.25 Td (AUM, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 701.25 Td (management fee-generating ) Tj ET Q q 0 0 0 rg BT 177.87 701.25 Td (AUM, incentive-creating ) Tj ET Q q 0 0 0 rg BT 286.25 701.25 Td (AUM, incentives created \(fund level\), accrued incentives \(fund ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 689.25 Td (level\) and uncalled capital commitments. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 668.25 Td (Assets Under Management ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 641.75 m 446.5 641.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 641.75 m 454.5 641.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454.5 641.75 m 504.5 641.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504.5 641.75 m 512.5 641.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 641.75 m 562.5 641.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 625.75 m 446.5 625.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454.5 641.75 m 504.5 641.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454.5 625.75 m 504.5 625.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504.5 641.75 m 512.5 641.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 641.75 m 562.5 641.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 625.75 m 562.5 625.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 569.75 m 446.5 569.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 554.75 m 446.5 554.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 552.75 m 446.5 552.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454.5 569.75 m 504.5 569.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454.5 554.75 m 504.5 554.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454.5 552.75 m 504.5 552.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 569.75 m 562.5 569.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 554.75 m 562.5 554.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 552.75 m 562.5 552.75 l s BT /F3 4.00 Tf ET q 0 0 0 rg BT 53.00 645.14 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 446.50 645.75 Td (As of December 31,) Tj ET Q BT /F3 4.00 Tf ET q 0 0 0 rg BT 53.00 629.14 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 413.20 629.75 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 471.20 629.75 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 529.20 629.75 Td (2014) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 53.00 616.15 Td (Assets Under Management:) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 459.35 618.15 Td (\(in millions\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 602.15 Td (Closed-end funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 130.40 601.70 Td (.........................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 399.00 602.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 415.45 602.15 Td (60,104) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 457.00 602.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 473.45 602.15 Td (59,430) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 515.00 602.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 531.45 602.15 Td (48,203) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 588.15 Td (Open-end funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 122.90 587.70 Td (............................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 415.45 588.15 Td (35,105) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 473.45 588.15 Td (33,202) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 531.45 588.15 Td (37,452) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 574.15 Td (Evergreen funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 125.40 573.70 Td (...........................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.45 574.15 Td (5,295) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 478.45 574.15 Td (4,727) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 536.45 574.15 Td (5,176) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 558.15 Td (Total) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 80.40 557.70 Td (.............................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 399.00 558.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 410.45 558.15 Td (100,504) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 457.00 558.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 473.45 558.15 Td (97,359) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 515.00 558.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 531.45 558.15 Td (90,831) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 516.95 m 445.5 516.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445.5 516.95 m 453.5 516.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453.5 516.95 m 503.5 516.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 516.95 m 511.5 516.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 516.95 m 561.5 516.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 516.95 m 445.5 516.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 500.95000000000005 m 445.5 500.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445.5 516.95 m 453.5 516.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453.5 516.95 m 503.5 516.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453.5 500.95000000000005 m 503.5 500.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 516.95 m 511.5 516.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 516.95 m 561.5 516.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 500.95000000000005 m 561.5 500.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 219.95000000000005 m 445.5 219.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 219.95000000000005 m 561.5 219.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 219.95000000000005 m 445.5 219.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 204.95000000000005 m 445.5 204.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 202.95000000000005 m 445.5 202.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453.5 219.95000000000005 m 503.5 219.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453.5 204.95000000000005 m 503.5 204.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453.5 202.95000000000005 m 503.5 202.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 219.95000000000005 m 561.5 219.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 204.95000000000005 m 561.5 204.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 202.95000000000005 m 561.5 202.95000000000005 l s BT /F3 4.00 Tf ET q 0 0 0 rg BT 52.00 520.34 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 435.20 520.95 Td (Year Ended December 31,) Tj ET Q BT /F3 4.00 Tf ET q 0 0 0 rg BT 52.00 504.34 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 412.20 504.95 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 470.20 504.95 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 528.20 504.95 Td (2014) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.00 490.35 Td (Change in Assets Under Management:) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 458.35 493.35 Td (\(in millions\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 476.35 Td (Beginning balance) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 131.90 475.90 Td (........................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 398.00 476.35 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 414.45 476.35 Td (97,359) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 456.00 476.35 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 472.45 476.35 Td (90,831) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 514.00 476.35 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 476.35 Td (83,605) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 462.35 Td (Closed-end funds:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 448.35 Td (Capital commitments/other ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 179.54 452.64 Td (\(1\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 186.69 448.35 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 191.95 447.90 Td (................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 419.45 448.35 Td (5,864) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 472.45 448.35 Td (17,868) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 448.35 Td (4,172) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 434.35 Td (Acquisition \(Highstar\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 161.95 433.90 Td (............................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 433.00 434.35 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 491.00 434.35 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 434.35 Td (2,349) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 420.35 Td (Distributions for a realization event/other ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 233.58 424.64 Td (\(2\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 240.73 420.35 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 244.45 419.90 Td (...........................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 416.45 420.35 Td (\(7,747) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 442.00 420.35 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 474.45 420.35 Td (\(5,225) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.00 420.35 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 532.45 420.35 Td (\(6,956) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 420.35 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 406.35 Td (Change in uncalled capital commitments for funds entering or in liquidation ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 369.67 410.64 Td (\(3\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 376.82 406.35 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 379.45 405.90 Td (.....) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 416.45 406.35 Td (\(1,084) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 442.00 406.35 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 481.95 406.35 Td (\(767) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.00 406.35 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 539.95 406.35 Td (\(315) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 406.35 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 392.35 Td (Foreign-currency translation) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 186.95 391.90 Td (..................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 423.95 392.35 Td (\(176) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 442.00 392.35 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 481.95 392.35 Td (\(706) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.00 392.35 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 539.95 392.35 Td (\(868) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 392.35 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 378.35 Td (Change in market value ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 167.55 382.64 Td (\(4\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 174.70 378.35 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 179.45 377.90 Td (.....................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 419.45 378.35 Td (3,754) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 481.95 378.35 Td (\(522) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.00 378.35 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 378.35 Td (2,279) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 364.35 Td (Change in applicable leverage) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 196.95 363.90 Td (..............................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 431.95 364.35 Td (63) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 484.95 364.35 Td (579) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 542.95 364.35 Td (857) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 350.35 Td (Open-end funds:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 336.35 Td (Contributions) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 129.40 335.90 Td (.........................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 419.45 336.35 Td (5,444) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 477.45 336.35 Td (4,919) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 336.35 Td (9,123) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 322.35 Td (Redemptions) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 129.40 321.90 Td (.........................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 416.45 322.35 Td (\(7,048) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 442.00 322.35 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 474.45 322.35 Td (\(7,260) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.00 322.35 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 532.45 322.35 Td (\(4,415) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 322.35 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 308.35 Td (Foreign-currency translation) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 186.95 307.90 Td (..................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 423.95 308.35 Td (\(130) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 442.00 308.35 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 481.95 308.35 Td (\(422) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.00 308.35 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 539.95 308.35 Td (\(522) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 308.35 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 294.35 Td (Change in market value ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 167.55 298.64 Td (\(4\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 174.70 294.35 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 179.45 293.90 Td (.....................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 419.45 294.35 Td (3,637) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 474.45 294.35 Td (\(1,487) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.00 294.35 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 542.95 294.35 Td (398) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 280.35 Td (Evergreen funds:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 266.35 Td (Contributions or new capital commitments) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 241.95 265.90 Td (............................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 426.95 266.35 Td (259) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 484.95 266.35 Td (349) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 266.35 Td (1,447) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 252.35 Td (Redemptions or distributions/other) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 211.95 251.90 Td (........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 423.95 252.35 Td (\(381) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 442.00 252.35 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 481.95 252.35 Td (\(406) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.00 252.35 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 539.95 252.35 Td (\(273) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 252.35 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 238.35 Td (Foreign-currency translation) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 186.95 237.90 Td (..................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 433.95 238.35 Td (\(2) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 442.00 238.35 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 491.00 238.35 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 552.95 238.35 Td (6) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 224.35 Td (Change in market value ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 167.55 228.64 Td (\(4\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 174.70 224.35 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 179.45 223.90 Td (.....................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 426.95 224.35 Td (692) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 481.95 224.35 Td (\(392) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.00 224.35 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 544.95 224.35 Td (\(56) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 224.35 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 208.35 Td (Ending balance) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 121.90 207.90 Td (............................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 398.00 208.35 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 409.45 208.35 Td (100,504) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 456.00 208.35 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 472.45 208.35 Td (97,359) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 514.00 208.35 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 208.35 Td (90,831) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 189.95000000000005 m 150.5 189.95000000000005 l s BT /F1 10.00 Tf ET BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 179.65 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 72.50 179.65 Td (These amounts represent capital commitments, as well as the aggregate par value of collateral assets and principal cash ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 168.85 Td (related to new CLO formations.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 158.05 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 72.50 158.05 Td (These amounts represent distributions for a realization event, tax-related distributions, reductions in the par value of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 147.25 Td (collateral assets and principal cash resulting from the repayment of debt as return of principal by CLOs, and recallable ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 136.45 Td (distributions at the end of the investment period.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 125.65 Td (\(3\) ) Tj ET Q q 0 0 0 rg BT 72.50 125.65 Td (The change in uncalled capital commitments reflects declines attributable to funds entering their liquidation periods, as well ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 114.85 Td (as capital contributions to funds in their liquidation periods for deferred purchase obligations or other reasons.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 104.05 Td (\(4\) ) Tj ET Q q 0 0 0 rg BT 72.50 104.05 Td (The change in market value reflects the change in NA) Tj ET Q q 0 0 0 rg BT 285.95 104.05 Td (V of our funds, less management fees and other fund expenses, as ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 93.25 Td (well as changes in the aggregate par value of collateral assets and principal cash held by CLOs.) Tj ET Q endstream endobj 187 0 obj <> endobj 188 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (93) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Management Fee-generating ) Tj ET Q q 0 0 0 rg BT 187.99 741.75 Td (Assets Under Management ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 715.25 m 445.5 715.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445.5 715.25 m 453.5 715.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453.5 715.25 m 503.5 715.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 715.25 m 511.5 715.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 715.25 m 561.5 715.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 715.25 m 445.5 715.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 699.25 m 445.5 699.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445.5 715.25 m 453.5 715.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453.5 715.25 m 503.5 715.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453.5 699.25 m 503.5 699.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 715.25 m 511.5 715.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 715.25 m 561.5 715.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 699.25 m 561.5 699.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 614.25 m 561.5 614.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 614.25 m 445.5 614.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 599.25 m 445.5 599.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 597.25 m 445.5 597.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453.5 614.25 m 503.5 614.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453.5 599.25 m 503.5 599.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453.5 597.25 m 503.5 597.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 614.25 m 561.5 614.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 599.25 m 561.5 599.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 597.25 m 561.5 597.25 l s BT /F3 4.00 Tf ET q 0 0 0 rg BT 52.00 718.64 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 445.50 719.25 Td (As of December 31,) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 412.20 703.25 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 470.20 703.25 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 528.20 703.25 Td (2014) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.00 688.65 Td (Management Fee-generating Assets Under Management:) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 458.35 691.65 Td (\(in millions\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 674.65 Td (Closed-end funds:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 660.65 Td (Senior Loans) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 129.40 660.20 Td (.........................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 398.00 660.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 419.10 660.65 Td (7,504) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 456.00 660.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 477.10 660.65 Td (6,580) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 514.00 660.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.10 660.65 Td (5,255) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 646.65 Td (Other closed-end funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 169.45 646.20 Td (.........................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 414.10 646.65 Td (32,990) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 472.10 646.65 Td (35,709) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.10 646.65 Td (32,017) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 632.65 Td (Open-end funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 121.90 632.20 Td (............................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 414.10 632.65 Td (35,034) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 472.10 632.65 Td (33,135) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.10 632.65 Td (37,383) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 618.65 Td (Evergreen funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 124.40 618.20 Td (...........................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 419.10 618.65 Td (4,239) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 477.10 618.65 Td (3,473) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.10 618.65 Td (3,424) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 602.65 Td (Total) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 79.40 602.20 Td (.............................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 398.00 602.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 414.10 602.65 Td (79,767) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 456.00 602.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 472.10 602.65 Td (78,897) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 514.00 602.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.10 602.65 Td (78,079) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 561.45 m 445.5 561.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445.5 561.45 m 453.5 561.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453.5 561.45 m 503.5 561.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 561.45 m 511.5 561.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 561.45 m 561.5 561.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 561.45 m 445.5 561.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 545.45 m 445.5 545.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445.5 561.45 m 453.5 561.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453.5 561.45 m 503.5 561.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453.5 545.45 m 503.5 545.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 561.45 m 511.5 561.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 561.45 m 561.5 561.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 545.45 m 561.5 545.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 232.45000000000005 m 445.5 232.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453.5 232.45000000000005 m 503.5 232.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 232.45000000000005 m 561.5 232.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 232.45000000000005 m 445.5 232.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 217.45000000000005 m 445.5 217.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 215.45000000000005 m 445.5 215.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453.5 232.45000000000005 m 503.5 232.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453.5 217.45000000000005 m 503.5 217.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453.5 215.45000000000005 m 503.5 215.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 232.45000000000005 m 561.5 232.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 217.45000000000005 m 561.5 217.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 215.45000000000005 m 561.5 215.45000000000005 l s BT /F3 4.00 Tf ET q 0 0 0 rg BT 52.00 564.84 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 435.20 565.45 Td (Year Ended December 31,) Tj ET Q BT /F3 4.00 Tf ET q 0 0 0 rg BT 52.00 548.84 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 412.20 549.45 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 470.20 549.45 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 528.20 549.45 Td (2014) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.00 534.85 Td (Change in Management Fee-generating Assets Under Management:) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 458.35 537.85 Td (\(in millions\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 520.85 Td (Beginning balance) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 131.90 520.40 Td (........................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 398.00 520.85 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 414.45 520.85 Td (78,897) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 456.00 520.85 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 472.45 520.85 Td (78,079) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 514.00 520.85 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 520.85 Td (71,950) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 506.85 Td (Closed-end funds:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 492.85 Td (Capital commitments to funds that pay fees based on committed capital/other ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 380.16 497.14 Td (\(1\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 387.31 492.85 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.45 492.40 Td (.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 419.45 492.85 Td (2,125) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 477.45 492.85 Td (7,354) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 492.85 Td (1,667) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 478.85 Td (Acquisition \(Highstar\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 161.95 478.40 Td (............................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 433.00 478.85 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 491.00 478.85 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 478.85 Td (1,882) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 464.85 Td (Capital drawn by funds that pay fees based on drawn capital, NAV or cost basis) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 386.95 464.40 Td (..) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 419.45 464.85 Td (1,390) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 477.45 464.85 Td (1,175) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 542.95 464.85 Td (959) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 450.85 Td (Change attributable to funds in liquidation ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 238.12 455.14 Td (\(2\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 245.27 450.85 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 249.45 450.40 Td (.........................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 416.45 450.85 Td (\(4,162) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 442.00 450.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 474.45 450.85 Td (\(2,812) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.00 450.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 532.45 450.85 Td (\(3,303) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 450.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 436.85 Td (Change in uncalled capital commitments for funds entering or in liquidation that ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 79.00 427.85 Td (pay fees based on committed capital ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 227.58 432.14 Td (\(3\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 234.73 427.85 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 239.45 427.40 Td (.............................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 423.95 427.85 Td (\(881) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 442.00 427.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 481.95 427.85 Td (\(409) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.00 427.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 539.95 427.85 Td (\(169) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 427.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 413.85 Td (Distributions by funds that pay fees based on NA) Tj ET Q q 0 0 0 rg BT 263.94 413.85 Td (V/other ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 295.46 418.14 Td (\(4\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 302.61 413.85 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 304.45 413.40 Td (...................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 423.95 413.85 Td (\(636) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 442.00 413.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 481.95 413.85 Td (\(381) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.00 413.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 539.95 413.85 Td (\(511) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 413.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 399.85 Td (Foreign-currency translation) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 186.95 399.40 Td (..................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 423.95 399.85 Td (\(242) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 442.00 399.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 481.95 399.85 Td (\(443) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.00 399.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 539.95 399.85 Td (\(662) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 399.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 385.85 Td (Change in market value ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 167.55 390.14 Td (\(5\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 174.70 385.85 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 179.45 385.40 Td (.....................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 426.95 385.85 Td (427) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 481.95 385.85 Td (\(294) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.00 385.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 547.95 385.85 Td (29) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 371.85 Td (Change in applicable leverage) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 196.95 371.40 Td (..............................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 426.95 371.85 Td (184) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 484.95 371.85 Td (827) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 542.95 371.85 Td (958) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 357.85 Td (Open-end funds:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 343.85 Td (Contributions) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 129.40 343.40 Td (.........................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 419.45 343.85 Td (5,395) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 477.45 343.85 Td (4,903) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 343.85 Td (9,095) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 329.85 Td (Redemptions) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 129.40 329.40 Td (.........................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 416.45 329.85 Td (\(7,024) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 442.00 329.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 474.45 329.85 Td (\(7,243) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.00 329.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 532.45 329.85 Td (\(4,418) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 329.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 315.85 Td (Foreign-currency translation) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 186.95 315.40 Td (..................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 423.95 315.85 Td (\(130) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 442.00 315.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 481.95 315.85 Td (\(421) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.00 315.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 539.95 315.85 Td (\(521) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 315.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 301.85 Td (Change in market value) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 171.95 301.40 Td (........................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 419.45 301.85 Td (3,658) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 474.45 301.85 Td (\(1,487) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.00 301.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 542.95 301.85 Td (397) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 287.85 Td (Evergreen funds:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 273.85 Td (Contributions or capital drawn by funds that pay fees based on drawn capital or) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 79.00 264.85 Td (NAV) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 104.40 264.40 Td (...................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 426.95 264.85 Td (533) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 484.95 264.85 Td (760) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 542.95 264.85 Td (998) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 250.85 Td (Redemptions or distributions) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 189.45 250.40 Td (.................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 423.95 250.85 Td (\(413) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 442.00 250.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 481.95 250.85 Td (\(322) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.00 250.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 539.95 250.85 Td (\(214) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 250.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 236.85 Td (Change in market value) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 171.95 236.40 Td (........................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 426.95 236.85 Td (646) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 481.95 236.85 Td (\(389) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.00 236.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 544.95 236.85 Td (\(58) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 236.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 220.85 Td (Ending balance) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 121.90 220.40 Td (............................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 398.00 220.85 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 414.45 220.85 Td (79,767) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 456.00 220.85 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 472.45 220.85 Td (78,897) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 514.00 220.85 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 220.85 Td (78,079) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 202.45000000000005 m 150.5 202.45000000000005 l s BT /F1 10.00 Tf ET BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 189.15 Td (\(1\) ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 189.15 Td (These amounts represent capital commitments to funds that pay fees based on committed capital, as well as the ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 178.35 Td (aggregate par value of collateral assets and principal cash related to new CLO formations.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 167.55 Td (\(2\) ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 167.55 Td (These amounts represent the change for funds that pay fees based on the lesser of funded capital or cost basis during the ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 156.75 Td (liquidation period, as well as recallable distributions at the end of the investment period. For most closed-end funds, ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 145.95 Td (management fees are charged during the liquidation period on the lesser of \(a\) total funded capital or \(b\) the cost basis of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 135.15 Td (assets remaining in the fund, with the cost basis of assets generally calculated by excluding cash balances. ) Tj ET Q q 0 0 0 rg BT 504.08 135.15 Td (Thus, ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 124.35 Td (changes in fee basis during the liquidation period are not dependent on distributions made from the fund; rather) Tj ET Q q 0 0 0 rg BT 514.79 124.35 Td (, they are ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 113.55 Td (tied to the cost basis of the fund’) Tj ET Q q 0 0 0 rg BT 201.42 113.55 Td (s investments, which typically declines as the fund sells assets.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 102.75 Td (\(3\) ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 102.75 Td (The change in uncalled capital commitments reflects declines attributable to funds entering their liquidation periods, as well ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 91.95 Td (as capital contributions to funds in their liquidation periods for deferred purchase obligations or other reasons.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 81.15 Td (\(4\) ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 81.15 Td (These amounts represent distributions by funds that pay fees based on NA) Tj ET Q q 0 0 0 rg BT 370.01 81.15 Td (V) Tj ET Q q 0 0 0 rg BT 375.18 81.15 Td (, as well as reductions in the par value of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 70.35 Td (collateral assets and principal cash resulting from the repayment of debt as return of principal by CLOs.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 59.55 Td (\(5\) ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 59.55 Td (The change in market value reflects certain funds that pay management fees based on NA) Tj ET Q q 0 0 0 rg BT 432.04 59.55 Td (V and leverage, as applicable, ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 48.75 Td (as well as changes in the aggregate par value of collateral assets and principal cash held by CLOs.) Tj ET Q endstream endobj 189 0 obj <> endobj 190 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (94) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 741.75 Td (A) Tj ET Q q 0 0 0 rg BT 92.12 741.75 Td ( reconciliation of ) Tj ET Q q 0 0 0 rg BT 166.61 741.75 Td (AUM to management fee-generating ) Tj ET Q q 0 0 0 rg BT 330.59 741.75 Td (AUM is set forth below: ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 436.18 741.75 Td ( ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 715.25 m 445.5 715.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445.5 715.25 m 453.5 715.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453.5 715.25 m 503.5 715.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 715.25 m 511.5 715.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 715.25 m 561.5 715.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 715.25 m 445.5 715.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 699.25 m 445.5 699.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445.5 715.25 m 453.5 715.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453.5 715.25 m 503.5 715.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453.5 699.25 m 503.5 699.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 715.25 m 511.5 715.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 715.25 m 561.5 715.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 699.25 m 561.5 699.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 545.25 m 445.5 545.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 545.25 m 445.5 545.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 530.25 m 445.5 530.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 528.25 m 445.5 528.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453.5 545.25 m 503.5 545.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453.5 530.25 m 503.5 530.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453.5 528.25 m 503.5 528.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 545.25 m 561.5 545.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 530.25 m 561.5 530.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 528.25 m 561.5 528.25 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 445.50 719.25 Td (As of December 31,) Tj ET Q BT /F3 4.00 Tf ET q 0 0 0 rg BT 52.00 702.64 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 412.20 703.25 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 470.20 703.25 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 528.20 703.25 Td (2014) Tj ET Q BT /F3 4.00 Tf ET q 0 0 0 rg BT 52.00 691.64 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 458.35 691.65 Td (\(in millions\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.00 678.65 Td (Reconciliation of Assets Under Management to Management Fee-generating) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 61.00 669.65 Td (Assets Under Management:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 442.00 669.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.00 669.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 669.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 655.65 Td (Assets under management) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 164.45 655.20 Td (...........................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 398.00 655.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 409.45 655.65 Td (100,504) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 456.00 655.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 472.45 655.65 Td (97,359) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 514.00 655.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 655.65 Td (90,831) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 641.65 Td (Dif) Tj ET Q q 0 0 0 rg BT 80.84 641.65 Td (ference between assets under management and committed capital or the ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 79.00 632.65 Td (lesser of funded capital or cost basis for applicable closed-end funds ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 354.16 636.94 Td (\(1\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 361.95 632.20 Td (............) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 416.45 632.65 Td (\(4,183) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 442.00 632.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 474.45 632.65 Td (\(2,958) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.00 632.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 532.45 632.65 Td (\(5,521) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 632.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 618.65 Td (Undrawn capital commitments to closed-end funds that have not yet) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 79.00 609.65 Td (commenced their investment periods) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 229.45 609.20 Td (.................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 411.45 609.65 Td (\(10,367) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 442.00 609.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 474.45 609.65 Td (\(8,215) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.00 609.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 539.95 609.65 Td (\(320) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 609.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 595.65 Td (Undrawn capital commitments to funds for which management fees are based) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 79.00 586.65 Td (on drawn capital, NAV or cost basis) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 224.45 586.20 Td (...................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 416.45 586.65 Td (\(3,109) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 442.00 586.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 474.45 586.65 Td (\(4,754) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.00 586.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 532.45 586.65 Td (\(4,528) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 586.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 572.65 Td (Oaktree’s general partner investments in management fee-generating funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 374.45 572.20 Td (.......) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 416.45 572.65 Td (\(1,822) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 442.00 572.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 474.45 572.65 Td (\(1,357) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.00 572.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 532.45 572.65 Td (\(1,231) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 572.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 558.65 Td (Funds that are no longer paying management fees and co-investments that pay) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 79.00 549.65 Td (no management fees) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 169.45 549.20 Td (.........................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 416.45 549.65 Td (\(1,256) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 442.00 549.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 474.45 549.65 Td (\(1,178) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.00 549.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 532.45 549.65 Td (\(1,152) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 549.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 533.65 Td (Management fee-generating assets under management) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 276.95 533.20 Td (..............................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 398.00 533.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 414.45 533.65 Td (79,767) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 456.00 533.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 472.45 533.65 Td (78,897) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 514.00 533.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 533.65 Td (78,079) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 515.25 m 150.5 515.25 l s BT /F1 10.00 Tf ET BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 501.95 Td (\(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.00 501.95 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 501.95 Td (This dif) Tj ET Q q 0 0 0 rg BT 101.35 501.95 Td (ference is not applicable to closed-end funds that pay management fees based on NA) Tj ET Q q 0 0 0 rg BT 442.40 501.95 Td (V or leverage. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 500.93 501.95 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 477.95 Td (The period-end weighted average annual management fee rates applicable to the respective management ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 465.95 Td (fee-generating ) Tj ET Q q 0 0 0 rg BT 116.72 465.95 Td (AUM balances above are set forth below) Tj ET Q q 0 0 0 rg BT 296.26 465.95 Td (. ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 439.45 m 445.5 439.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445.5 439.45 m 453.5 439.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453.5 439.45 m 503.5 439.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 439.45 m 511.5 439.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 439.45 m 561.5 439.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 439.45 m 445.5 439.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 423.45 m 445.5 423.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445.5 439.45 m 453.5 439.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453.5 439.45 m 503.5 439.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453.5 423.45 m 503.5 423.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 439.45 m 511.5 439.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 439.45 m 561.5 439.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 423.45 m 561.5 423.45 l s BT /F3 4.00 Tf ET q 0 0 0 rg BT 52.00 442.84 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 445.50 443.45 Td (As of December 31,) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 412.20 427.45 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 470.20 427.45 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 528.20 427.45 Td (2014) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.00 414.40 Td (Weighted Average Annual Management Fee Rates:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 398.00 414.40 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 456.00 414.40 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 514.00 414.40 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 400.85 Td (Closed-end funds:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 386.85 Td (Senior Loans) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 129.40 386.40 Td (.........................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 419.40 386.85 Td (0.50) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 436.95 386.85 Td (%) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 477.40 386.85 Td (0.50) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 494.95 386.85 Td (%) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.40 386.85 Td (0.50) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 552.95 386.85 Td (%) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 372.85 Td (Other closed-end funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 169.45 372.40 Td (.........................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 419.40 372.85 Td (1.50) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 477.40 372.85 Td (1.52) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.40 372.85 Td (1.54) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 358.85 Td (Open-end funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 121.90 358.40 Td (............................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 419.40 358.85 Td (0.46) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 477.40 358.85 Td (0.48) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.40 358.85 Td (0.47) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 344.85 Td (Evergreen funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 124.40 344.40 Td (...........................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 419.40 344.85 Td (1.22) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 477.40 344.85 Td (1.43) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.40 344.85 Td (1.53) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 330.85 Td (Overall) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 86.90 330.40 Td (..........................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 419.40 330.85 Td (0.93) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 477.40 330.85 Td (0.99) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.40 330.85 Td (0.96) Tj ET Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 305.95 Td (Incentive-creating ) Tj ET Q q 0 0 0 rg BT 137.99 305.95 Td (Assets Under Management ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 284.95 Td (Incentive-creating ) Tj ET Q q 0 0 0 rg BT 167.16 284.95 Td (AUM is set forth below) Tj ET Q q 0 0 0 rg BT 266.64 284.95 Td (. ) Tj ET Q q 0 0 0 rg BT 274.42 284.95 Td (As of December 31, 2016, 2015 and 2014, the portion of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 272.95 Td (incentive-creating ) Tj ET Q q 0 0 0 rg BT 130.60 272.95 Td (AUM generating incentives at the fund level was $21.2 billion, $17.5 billion and $24.3 billion, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 260.95 Td (respectively) Tj ET Q q 0 0 0 rg BT 102.06 260.95 Td (. Incentive-creating ) Tj ET Q q 0 0 0 rg BT 191.55 260.95 Td (AUM does not include undrawn capital commitments.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 234.45000000000005 m 445.5 234.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445.5 234.45000000000005 m 453.5 234.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453.5 234.45000000000005 m 503.5 234.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 234.45000000000005 m 511.5 234.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 234.45000000000005 m 561.5 234.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 234.45000000000005 m 445.5 234.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 217.45000000000005 m 445.5 217.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445.5 234.45000000000005 m 453.5 234.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453.5 234.45000000000005 m 503.5 234.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453.5 217.45000000000005 m 503.5 217.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 234.45000000000005 m 511.5 234.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 234.45000000000005 m 561.5 234.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 217.45000000000005 m 561.5 217.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 165.45000000000005 m 561.5 165.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 165.45000000000005 m 445.5 165.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 150.45000000000005 m 445.5 150.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 148.45000000000005 m 445.5 148.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453.5 165.45000000000005 m 503.5 165.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453.5 150.45000000000005 m 503.5 150.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453.5 148.45000000000005 m 503.5 148.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 165.45000000000005 m 561.5 165.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 150.45000000000005 m 561.5 150.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 148.45000000000005 m 561.5 148.45000000000005 l s BT /F3 4.00 Tf ET q 0 0 0 rg BT 52.00 237.84 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 445.50 238.45 Td (As of December 31,) Tj ET Q BT /F3 4.00 Tf ET q 0 0 0 rg BT 52.00 220.84 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 412.20 221.45 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 470.20 221.45 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 528.20 221.45 Td (2014) Tj ET Q BT /F3 4.00 Tf ET q 0 0 0 rg BT 52.00 209.84 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 458.35 209.85 Td (\(in millions\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.00 197.40 Td (Incentive-creating Assets Under Management:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 398.00 197.40 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 456.00 197.40 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 514.00 197.40 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 183.85 Td (Closed-end funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 129.40 183.40 Td (.........................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 398.00 183.85 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 414.45 183.85 Td (30,292) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 456.00 183.85 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 472.45 183.85 Td (30,100) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 514.00 183.85 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 183.85 Td (31,743) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 169.85 Td (Evergreen funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 124.40 169.40 Td (...........................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 419.45 169.85 Td (3,335) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 477.45 169.85 Td (1,823) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 169.85 Td (2,118) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 153.85 Td (Total) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 79.40 153.40 Td (.............................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 398.00 153.85 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 414.45 153.85 Td (33,627) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 456.00 153.85 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 472.45 153.85 Td (31,923) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 514.00 153.85 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 153.85 Td (33,861) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 191 0 obj <> endobj 192 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (95) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Y) Tj ET Q q 0 0 0 rg BT 56.12 741.75 Td (ear Ended December 31, 2016 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 720.75 Td (AUM increased ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 157.14 720.75 Td ($3.1 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 204.95 720.75 Td (, or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 222.18 720.75 Td (3.2%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 244.97 720.75 Td (, to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 261.64 720.75 Td ($100.5 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 320.58 720.75 Td ( as of December 31, 2016, from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 463.98 720.75 Td ($97.4 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 517.36 720.75 Td ( as of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 708.75 Td (December 31, 2015. ) Tj ET Q q 0 0 0 rg BT 145.99 708.75 Td (The increase primarily reflected ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 288.26 708.75 Td ($8.1 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 336.07 708.75 Td ( in aggregate market-value gains and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 503.96 708.75 Td ($5.9 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 551.77 708.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 696.75 Td (of capital inflows for closed-end funds, partially of) Tj ET Q q 0 0 0 rg BT 267.71 696.75 Td (fset by ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 299.95 696.75 Td ($7.7 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 347.76 696.75 Td ( of distributions to closed-end fund investors, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 684.75 Td ($1.6 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 97.81 684.75 Td ( of net outflows from open-end funds and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 282.37 684.75 Td ($1.1 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 330.19 684.75 Td ( of uncalled capital commitments for closed-end ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 672.75 Td (funds that have entered liquidation. Inflows for closed-end funds included $1.0 billion for Oaktree European ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 660.75 Td (Principal Fund IV) Tj ET Q q 0 0 0 rg BT 125.23 660.75 Td (, $0.8 billion for Oaktree Opportunities Funds X and Xb \(“Opps X and Xb”\) and $0.8 billion for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 648.75 Td (Oaktree Real Estate Opportunities Fund VII \(“ROF VII”\). Distributions to closed-end fund investors included $2.6 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 636.75 Td (billion from Real Estate funds, $2.8 billion from Control Investing funds and $1.6 billion from Distressed Debt funds.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 615.75 Td (Management fee-generating ) Tj ET Q q 0 0 0 rg BT 213.87 615.75 Td (AUM, a forward-looking metric, increased ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 400.04 615.75 Td ($0.9 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 447.86 615.75 Td (, or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 465.08 615.75 Td (1.1%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 487.88 615.75 Td (, to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 504.55 615.75 Td ($79.8 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 557.92 615.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 603.75 Td (as of December 31, 2016, from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 190.63 603.75 Td ($78.9 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 244.00 603.75 Td ( as of December 31, 2015. ) Tj ET Q q 0 0 0 rg BT 367.22 603.75 Td (The increase primarily reflected ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 509.50 603.75 Td ($4.7 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 557.31 603.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 591.75 Td (in aggregate market-value gains, an aggregate ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 260.14 591.75 Td ($2.1 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 307.95 591.75 Td ( of capital inflows to closed-end funds, principally ROF ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 579.75 Td (VII, Opps X and CLOs, and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 173.96 579.75 Td ($1.4 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 221.77 579.75 Td ( of drawdowns by closed-end funds for which management fees are based ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 567.75 Td (on drawn capital, NA) Tj ET Q q 0 0 0 rg BT 141.53 567.75 Td (V or cost basis. ) Tj ET Q q 0 0 0 rg BT 215.26 567.75 Td (These increases were largely of) Tj ET Q q 0 0 0 rg BT 356.26 567.75 Td (fset by an aggregate ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 450.21 567.75 Td ($5.0 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 498.03 567.75 Td ( attributable to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 555.75 Td (closed-end funds in liquidation and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 206.78 555.75 Td ($1.6 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 254.59 555.75 Td ( of net outflows from open-end funds.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 534.75 Td (Incentive-creating ) Tj ET Q q 0 0 0 rg BT 167.16 534.75 Td (AUM increased ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 238.29 534.75 Td ($1.7 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 286.11 534.75 Td (, or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 303.33 534.75 Td (5.3%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 326.13 534.75 Td (, to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 342.80 534.75 Td ($33.6 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 396.18 534.75 Td ( as of December 31, 2016, from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 522.75 Td ($31.9 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.37 522.75 Td ( as of December 31, 2015, reflecting an aggregate $8.2 billion in drawdowns or contributions by closed-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 510.75 Td (end and evergreen funds, as well as market-value gains, partially of) Tj ET Q q 0 0 0 rg BT 348.87 510.75 Td (fset by an aggregate decline of $6.5 billion ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 498.75 Td (primarily attributable to distributions by closed-end funds.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 477.75 Td (Y) Tj ET Q q 0 0 0 rg BT 56.12 477.75 Td (ear Ended December 31, 2015 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 461.25 Td (AUM increased $6.6 billion, or 7.3%, to $97.4 billion as of December 31, 2015, from $90.8 billion as of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 449.25 Td (December 31, 2014. ) Tj ET Q q 0 0 0 rg BT 145.99 449.25 Td (The increase primarily reflected $18.4 billion of aggregate capital inflows and fee-generating ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 437.25 Td (leverage for closed-end funds, partially of) Tj ET Q q 0 0 0 rg BT 232.70 437.25 Td (fset by $5.2 billion of distributions to closed-end fund investors, $2.4 billion ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 425.25 Td (in aggregate market-value declines, $2.3 billion of net outflows from open-end funds and $1.1 billion of negative ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 413.25 Td (foreign-currency translation. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 392.25 Td (Management fee-generating ) Tj ET Q q 0 0 0 rg BT 213.87 392.25 Td (AUM, a forward-looking metric, increased $0.8 billion, or 1.0%, to $78.9 billion ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 380.25 Td (as of December 31, 2015, from $78.1 billion as of December 31, 2014. ) Tj ET Q q 0 0 0 rg BT 367.22 380.25 Td (The increase reflected an aggregate $6.6 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 368.25 Td (billion increase from the commencement of the investment periods of Power Fund IV and Oaktree Special ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 356.25 Td (Situations Fund \(“SSF”\) in November 2015, and of Opps X and ROF VII as of January 1, 2016, and $2.8 billion of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 344.25 Td (aggregate fee-generating leverage and drawdowns or contributions by closed-end and evergreen funds for which ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 332.25 Td (management fees are based on drawn capital or NA) Tj ET Q q 0 0 0 rg BT 280.50 332.25 Td (V) Tj ET Q q 0 0 0 rg BT 286.25 332.25 Td (. ) Tj ET Q q 0 0 0 rg BT 294.41 332.25 Td (These increases were partially of) Tj ET Q q 0 0 0 rg BT 440.41 332.25 Td (fset by $2.8 billion ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 320.25 Td (attributable to closed-end funds in liquidation, $2.3 billion of net outflows from open-end funds, $2.2 billion in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 308.25 Td (aggregate market-value declines and $0.9 billion of negative foreign-currency translation.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 287.25 Td (Incentive-creating ) Tj ET Q q 0 0 0 rg BT 167.16 287.25 Td (AUM decreased $2.0 billion, or 5.9%, to $31.9 billion as of December 31, 2015, from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 275.25 Td ($33.9 billion as of December 31, 2014. ) Tj ET Q q 0 0 0 rg BT 226.60 275.25 Td (The decrease reflected an aggregate $6.0 billion in distributions by closed-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 263.25 Td (end funds, market-value declines and negative foreign-currency translation, partially of) Tj ET Q q 0 0 0 rg BT 431.69 263.25 Td (fset by $4.0 billion in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 251.25 Td (drawdowns by closed-end funds.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 224.25 Td (Y) Tj ET Q q 0 0 0 rg BT 56.12 224.25 Td (ear Ended December 31, 2014 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 207.75 Td (AUM increased $7.2 billion, or 8.6%, to $90.8 billion as of December 31, 2014, from $83.6 billion as of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 195.75 Td (December 31, 2013. ) Tj ET Q q 0 0 0 rg BT 145.99 195.75 Td (The increase reflected $6.5 billion of capital inflows and fee-generating leverage for closed-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 183.75 Td (end and evergreen funds, $4.7 billion of net inflows to open-end funds, $2.6 billion of market-value gains and $2.3 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 171.75 Td (billion from the Highstar acquisition, partially of) Tj ET Q q 0 0 0 rg BT 256.03 171.75 Td (fset by $7.0 billion of distributions to closed-end fund investors and a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 159.75 Td ($1.4 billion negative net impact from foreign-currency translation. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 138.75 Td (Management fee-generating ) Tj ET Q q 0 0 0 rg BT 213.87 138.75 Td (AUM increased $6.1 billion, or 8.5%, to $78.1 billion as of December 31, 2014, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 126.75 Td (from $72.0 billion as of December 31, 2013, reflecting $4.7 billion from net inflows to open-end funds, $2.9 billion ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 114.75 Td (from fee-generating leverage and drawdowns or contributions by closed-end and evergreen funds for which ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 102.75 Td (management fees are based on drawn capital or NA) Tj ET Q q 0 0 0 rg BT 280.50 102.75 Td (V) Tj ET Q q 0 0 0 rg BT 286.25 102.75 Td (, $1.9 billion from the Highstar acquisition and $1.7 billion in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 90.75 Td (new capital commitments, partially of) Tj ET Q q 0 0 0 rg BT 213.21 90.75 Td (fset by $3.3 billion attributable to closed-end funds in liquidation, a $1.2 billion ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 78.75 Td (negative net impact from foreign-currency translation and $0.5 billion of distributions by funds that pay fees based ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 66.75 Td (on NA) Tj ET Q q 0 0 0 rg BT 77.05 66.75 Td (V) Tj ET Q q 0 0 0 rg BT 82.80 66.75 Td (.) Tj ET Q endstream endobj 193 0 obj <> endobj 194 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (96) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 741.75 Td (Incentive-creating ) Tj ET Q q 0 0 0 rg BT 167.16 741.75 Td (AUM increased $1.5 billion, or 4.6%, to $33.9 billion as of December 31, 2014, from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td ($32.4 billion as of December 31, 2013. ) Tj ET Q q 0 0 0 rg BT 226.60 729.75 Td (The increase reflected an aggregate $9.1 billion in drawdowns by closed-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (end funds, market-value gains and the Highstar acquisition, partially of) Tj ET Q q 0 0 0 rg BT 361.10 717.75 Td (fset by an aggregate $7.5 billion in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 705.75 Td (distributions by closed-end funds and negative foreign-currency translation. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 684.75 Td (Accrued Incentives \(Fund Level\) and Incentives Created \(Fund Level\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 668.25 Td (Accrued incentives \(fund level\), gross and net of incentive income compensation expense, as well as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 656.25 Td (changes in accrued incentives \(fund level\), are set forth below) Tj ET Q q 0 0 0 rg BT 323.49 656.25 Td (. ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 629.75 m 421.5 629.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421.5 629.75 m 429.5 629.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 629.75 m 491.5 629.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 629.75 m 499.5 629.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 629.75 m 561.5 629.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 613.75 m 421.5 613.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 629.75 m 491.5 629.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 613.75 m 491.5 613.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 629.75 m 499.5 629.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 629.75 m 561.5 629.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 613.75 m 561.5 613.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 575.75 m 421.5 575.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 575.75 m 491.5 575.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 575.75 m 561.5 575.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 533.75 m 421.5 533.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 519.75 m 421.5 519.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 533.75 m 491.5 533.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 519.75 m 491.5 519.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 533.75 m 561.5 533.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 519.75 m 561.5 519.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 505.75 m 421.5 505.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 505.75 m 491.5 505.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 505.75 m 561.5 505.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 490.75 m 421.5 490.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 488.75 m 421.5 488.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 490.75 m 491.5 490.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 488.75 m 491.5 488.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 490.75 m 561.5 490.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 488.75 m 561.5 488.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 466.75 m 421.5 466.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 464.75 m 421.5 464.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 466.75 m 491.5 466.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 464.75 m 491.5 464.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 466.75 m 561.5 466.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 464.75 m 561.5 464.75 l s BT /F3 4.00 Tf ET q 0 0 0 rg BT 52.00 633.14 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 391.20 633.75 Td (As of or for the Year Ended December 31,) Tj ET Q BT /F3 4.00 Tf ET q 0 0 0 rg BT 52.00 617.14 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 382.20 617.75 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 452.20 617.75 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 522.20 617.75 Td (2014) Tj ET Q BT /F3 4.00 Tf ET q 0 0 0 rg BT 52.00 606.14 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 435.85 606.15 Td (\(in thousands\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.00 593.70 Td (Accrued Incentives \(Fund Level\):) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 418.00 593.70 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 488.00 593.70 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 593.70 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 580.15 Td (Beginning balance) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 130.95 579.70 Td (..........................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 362.00 580.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 377.95 580.15 Td (1,585,217) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 432.00 580.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 447.95 580.15 Td (1,949,407) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 502.00 580.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.95 580.15 Td (2,276,439) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 566.15 Td (Incentives created \(fund level\):) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 552.15 Td (Closed-end funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 145.95 551.70 Td (....................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 385.45 552.15 Td (746,349) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 452.45 552.15 Td (\(100,633) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 488.00 552.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 552.15 Td (163,194) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 538.15 Td (Evergreen funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 140.95 537.70 Td (......................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 390.45 538.15 Td (37,683) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 472.95 538.15 Td (249) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 538.15 Td (1,176) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 524.15 Td (Total incentives created \(fund level\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 233.45 523.70 Td (.................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 385.45 524.15 Td (784,032) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 452.45 524.15 Td (\(100,384) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 488.00 524.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 524.15 Td (164,370) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 510.15 Td (Less: segment incentive income recognized by us) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 253.45 509.70 Td (.........................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 382.45 510.15 Td (\(355,152) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 418.00 510.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 452.45 510.15 Td (\(263,806) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 488.00 510.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 510.15 Td (\(491,402) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 510.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 494.15 Td (Ending balance) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 120.95 493.70 Td (..............................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 362.00 494.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 377.95 494.15 Td (2,014,097) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 432.00 494.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 447.95 494.15 Td (1,585,217) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 502.00 494.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.95 494.15 Td (1,949,407) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 479.15 Td (Accrued incentives \(fund level\), net of associated incentive income) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 61.00 470.15 Td (compensation expense) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 158.45 469.70 Td (...............................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 362.00 470.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 385.45 470.15 Td (946,542) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 432.00 470.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 455.45 470.15 Td (811,540) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 502.00 470.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 470.15 Td (999,923) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 442.25 Td (As of December 31, 2016, 2015 and 2014, the portion of net accrued incentives \(fund level\) represented by ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 430.25 Td (funds that were currently paying incentives was $201.7 million, $292.1 million and $420.7 million, respectively) Tj ET Q q 0 0 0 rg BT 532.85 430.25 Td (, with ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 418.25 Td (the remainder arising from funds that as of that date were not at the stage of their cash distribution waterfall where ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 406.25 Td (Oaktree was entitled to receive incentives, other than possibly tax-related distributions. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 382.25 Td (As of December 31, 2016, $888.6 million, or 94%, of the net accrued incentives \(fund level\) was in funds in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 370.25 Td (their liquidation period, and approximately 34% of the assets underlying total net accrued incentives \(fund level\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 358.25 Td (were Level I or Level II securities. Please see “—Critical ) Tj ET Q q 0 0 0 rg BT 302.32 358.25 Td (Accounting Policies—Fair V) Tj ET Q q 0 0 0 rg BT 424.97 358.25 Td (alue of Financial Instruments” ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 346.25 Td (for a discussion of the fair-value hierarchy level established by GAAP) Tj ET Q q 0 0 0 rg BT 354.42 346.25 Td (.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 325.25 Td (Y) Tj ET Q q 0 0 0 rg BT 56.12 325.25 Td (ears Ended December 31, 2016, 2015 and 2014) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.00 304.25 Td (Incentives created \(fund level\) was ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 237.74 304.25 Td ($784.0 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 299.45 304.25 Td ( for the year ended December 31, 2016, reflecting $517.0 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 292.25 Td (million of incentives created \(fund level\) from Control Investing funds, $163.5 million from Distressed Debt funds ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 280.25 Td (and $50.1 million from Real Estate funds.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 259.25 Td (Incentives created \(fund level\) was negative $100.4 million for the year ended December 31, 2015, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 247.25 Td (reflecting negative incentives created \(fund level\) of $339.4 million from Distressed Debt funds, partially of) Tj ET Q q 0 0 0 rg BT 517.28 247.25 Td (fset by ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 235.25 Td ($1) Tj ET Q q 0 0 0 rg BT 60.38 235.25 Td (15.2 million of incentives created \(fund level\) from Real Estate funds and $92.2 million from Control Investing ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 223.25 Td (funds. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 202.25 Td (Incentives created \(fund level\) was $164.4 million for the year ended December 31, 2014, reflecting $201.9 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 190.25 Td (million from Real Estate funds, $146.2 million from Control Investing funds, and negative $190.8 million from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 178.25 Td (Distressed Debt funds. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 157.25 Td (Uncalled Capital Commitments ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 136.25 Td (As of December 31, 2016 and 2015, uncalled capital commitments were ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 407.84 136.25 Td ($20.8 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 461.21 136.25 Td ( and $21.7 billion, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 124.25 Td (respectively) Tj ET Q q 0 0 0 rg BT 102.06 124.25 Td (. Invested capital during the years ended December 31, 2016 and 2015 aggregated $8.5 billion and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 112.25 Td ($8.1 billion, respectively) Tj ET Q q 0 0 0 rg BT 155.42 112.25 Td (.) Tj ET Q endstream endobj 195 0 obj <> endobj 196 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (97) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Segment ) Tj ET Q q 0 0 0 rg BT 94.64 741.75 Td (Analysis ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 725.25 Td (Our business is comprised of one segment, our investment management segment, which consists of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 713.25 Td (investment management services that we provide to our clients. Management makes operating decisions and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 701.25 Td (assesses the performance of our business based on financial and operating metrics and data that are presented ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 689.25 Td (without the consolidation of any funds. For a detailed reconciliation of the segment results of operations to our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 677.25 Td (consolidated statements of operations, please see “—Distributable Earnings” and “—Fee-related Earnings” below ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 665.25 Td (and the “Segment Reporting” note to our consolidated financial statements included elsewhere in this annual report. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 653.25 Td (The data most important to our chief operating decision maker in assessing our performance are adjusted net ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 641.25 Td (income, adjusted net income-OCG, distributable earnings, distributable earnings-OCG, fee-related earnings and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 629.25 Td (fee-related earnings-OCG. ) Tj ET Q BT /F3 1.00 Tf ET q 0 0 0 rg BT 170.61 629.25 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 608.25 Td (Adjusted Net Income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 591.75 Td (ANI and adjusted net income-OCG, as well as per unit data, are set forth below: ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 441.74 591.75 Td ( ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 565.25 m 425.5 565.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425.5 565.25 m 438.5 565.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 565.25 m 493.5 565.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 565.25 m 506.5 565.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 565.25 m 561.5 565.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 549.25 m 425.5 549.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 565.25 m 493.5 565.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 549.25 m 493.5 549.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 565.25 m 506.5 565.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 565.25 m 561.5 565.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 549.25 m 561.5 549.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 482.25 m 425.5 482.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 468.25 m 425.5 468.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 482.25 m 493.5 482.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 468.25 m 493.5 468.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 482.25 m 561.5 482.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 468.25 m 561.5 468.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 384.25 m 425.5 384.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 370.25 m 425.5 370.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 384.25 m 493.5 384.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 370.25 m 493.5 370.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 384.25 m 561.5 384.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 370.25 m 561.5 370.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 370.25 m 425.5 370.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 370.25 m 561.5 370.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 328.25 m 425.5 328.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 328.25 m 493.5 328.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 328.25 m 561.5 328.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 328.25 m 561.5 328.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 286.25 m 425.5 286.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 286.25 m 493.5 286.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 286.25 m 561.5 286.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 286.25 m 425.5 286.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 286.25 m 561.5 286.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 258.25 m 493.5 258.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 258.25 m 561.5 258.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 258.25 m 425.5 258.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 243.25 m 425.5 243.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 241.25 m 425.5 241.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 243.25 m 493.5 243.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 241.25 m 493.5 241.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 258.25 m 561.5 258.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 243.25 m 561.5 243.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 241.25 m 561.5 241.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 227.25 m 425.5 227.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 225.25 m 425.5 225.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 227.25 m 493.5 227.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 225.25 m 493.5 225.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 227.25 m 561.5 227.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 225.25 m 561.5 225.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 225.25 m 425.5 225.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 227.25 m 425.5 227.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 211.25 m 425.5 211.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.5 209.25 m 425.5 209.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 211.25 m 493.5 211.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 209.25 m 493.5 209.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 211.25 m 561.5 211.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 209.25 m 561.5 209.25 l s BT /F3 4.00 Tf ET q 0 0 0 rg BT 52.00 568.64 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 422.70 569.25 Td (Year Ended December 31,) Tj ET Q BT /F3 4.00 Tf ET q 0 0 0 rg BT 52.00 552.64 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 389.70 553.25 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 457.70 553.25 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 525.70 553.25 Td (2014) Tj ET Q BT /F3 4.00 Tf ET q 0 0 0 rg BT 52.00 541.64 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 406.35 541.65 Td (\(in thousands, except per unit data\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 528.65 Td (Revenues:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 373.00 528.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 441.00 528.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 509.00 528.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 514.65 Td (Management fees) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 146.95 514.20 Td (........................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 373.00 514.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.45 514.65 Td (785,673) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 441.00 514.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 457.45 514.65 Td (753,805) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 509.00 514.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 514.65 Td (762,823) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 500.65 Td (Incentive income) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 144.45 500.20 Td (.........................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.45 500.65 Td (355,152) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 457.45 500.65 Td (263,806) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 500.65 Td (491,402) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 486.65 Td (Investment income) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 151.95 486.20 Td (......................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.45 486.65 Td (221,377) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.45 486.65 Td (48,253) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 486.65 Td (117,662) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 472.65 Td (Total revenues) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 151.95 472.20 Td (......................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 381.95 472.65 Td (1,362,202) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 449.95 472.65 Td (1,065,864) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.95 472.65 Td (1,371,887) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 458.65 Td (Expenses:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 444.65 Td (Compensation and benefits) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 184.45 444.20 Td (.........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 386.45 444.65 Td (\(381,937) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 444.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 454.45 444.65 Td (\(404,442) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 444.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 444.65 Td (\(379,360) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 444.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 430.65 Td (Equity-based compensation) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 186.95 430.20 Td (........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 391.45 430.65 Td (\(51,759) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 430.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 459.45 430.65 Td (\(37,978) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 430.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 527.45 430.65 Td (\(19,705) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 430.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 416.65 Td (Incentive income compensation) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 199.45 416.20 Td (...................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 386.45 416.65 Td (\(169,683) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 416.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 454.45 416.65 Td (\(141,822) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 416.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 416.65 Td (\(231,871) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 416.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 402.65 Td (General and administrative) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 181.95 402.20 Td (..........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 386.45 402.65 Td (\(123,784) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 402.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 454.45 402.65 Td (\(120,783) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 402.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 402.65 Td (\(127,954) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 402.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 388.65 Td (Depreciation and amortization) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 194.45 388.20 Td (.....................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 391.45 388.65 Td (\(12,219) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 388.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 459.45 388.65 Td (\(10,018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 388.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 532.45 388.65 Td (\(7,249) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 388.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 374.65 Td (Total expenses) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 154.45 374.20 Td (.....................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 386.45 374.65 Td (\(739,382) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 374.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 454.45 374.65 Td (\(715,043) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 374.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 374.65 Td (\(766,139) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 374.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 360.65 Td (Adjusted net income before interest and other income \(expense\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 309.45 360.20 Td (.......................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.45 360.65 Td (622,820) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 457.45 360.65 Td (350,821) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 360.65 Td (605,748) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 346.65 Td (Interest expense, net of interest income) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 231.95 346.20 Td (......................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 391.45 346.65 Td (\(31,845) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 346.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 459.45 346.65 Td (\(35,032) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 346.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 527.45 346.65 Td (\(30,190) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 346.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 332.65 Td (Other income \(expense\), net) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 189.45 332.20 Td (.......................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 396.45 332.65 Td (\(8,392) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 332.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 464.45 332.65 Td (\(3,927) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 332.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 532.45 332.65 Td (\(2,431) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 332.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 318.65 Td (Adjusted net income) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 139.45 318.20 Td (...........................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.45 318.65 Td (582,583) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 457.45 318.65 Td (311,862) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 318.65 Td (573,127) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 304.65 Td (Adjusted net income attributable to OCGH non-controlling interest) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 334.45 304.20 Td (.............) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 386.45 304.65 Td (\(346,807) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 304.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 454.45 304.65 Td (\(214,629) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 304.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 304.65 Td (\(415,859) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 304.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 290.65 Td (Non-Operating Group expenses) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 201.95 290.20 Td (..................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 396.45 290.65 Td (\(1,176) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 290.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 464.45 290.65 Td (\(2,097) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 290.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 532.45 290.65 Td (\(1,645) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 290.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 276.65 Td (Adjusted net income-OCG before income taxes) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 244.45 276.20 Td (.................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.45 276.65 Td (234,600) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.45 276.65 Td (95,136) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 276.65 Td (155,623) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 262.65 Td (Income taxes-OCG) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 151.95 262.20 Td (......................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 391.45 262.65 Td (\(39,756) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 262.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 459.45 262.65 Td (\(15,195) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 262.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 527.45 262.65 Td (\(18,464) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 262.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 246.65 Td (Adjusted net income-OCG) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 161.95 246.20 Td (..................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 373.00 246.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.45 246.65 Td (194,844) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 441.00 246.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.45 246.65 Td (79,941) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 509.00 246.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 246.65 Td (137,159) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 230.65 Td (Adjusted net income per Class A unit) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 201.95 230.20 Td (..................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 373.00 230.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 404.45 230.65 Td (3.11) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 441.00 230.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 472.45 230.65 Td (1.62) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 509.00 230.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.45 230.65 Td (3.22) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 214.65 Td (Weighted average number of Class A units outstanding) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 274.45 214.20 Td (.....................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 394.45 214.65 Td (62,565) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.45 214.65 Td (49,324) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 214.65 Td (42,582) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 197 0 obj <> endobj 198 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (98) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Distributable Earnings) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 720.75 Td (Distributable earnings and distributable earnings-OCG, as well as per unit data, are set forth below: ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 527.34 720.75 Td ( ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 694.25 m 423.5 694.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 694.25 m 437.5 694.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 694.25 m 492.5 694.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 694.25 m 506.5 694.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 694.25 m 561.5 694.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 677.25 m 423.5 677.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 694.25 m 492.5 694.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 677.25 m 492.5 677.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 694.25 m 506.5 694.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 694.25 m 561.5 694.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 677.25 m 561.5 677.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 596.25 m 423.5 596.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 582.25 m 423.5 582.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 596.25 m 492.5 596.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 582.25 m 492.5 582.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 596.25 m 561.5 596.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 582.25 m 561.5 582.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 512.25 m 423.5 512.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 512.25 m 492.5 512.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 512.25 m 561.5 512.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 498.25 m 423.5 498.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 498.25 m 492.5 498.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 498.25 m 561.5 498.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 442.25 m 423.5 442.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 442.25 m 492.5 442.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 442.25 m 561.5 442.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 372.25 m 423.5 372.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 372.25 m 492.5 372.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 372.25 m 561.5 372.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 372.25 m 423.5 372.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 357.25 m 423.5 357.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 355.25 m 423.5 355.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 372.25 m 492.5 372.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 357.25 m 492.5 357.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 355.25 m 492.5 355.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 372.25 m 561.5 372.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 357.25 m 561.5 357.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 355.25 m 561.5 355.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 341.25 m 423.5 341.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 339.25 m 423.5 339.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 341.25 m 492.5 341.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 339.25 m 492.5 339.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 341.25 m 561.5 341.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 339.25 m 561.5 339.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 339.25 m 423.5 339.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 341.25 m 423.5 341.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 325.25 m 423.5 325.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 323.25 m 423.5 323.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 339.25 m 492.5 339.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 341.25 m 492.5 341.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 325.25 m 492.5 325.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 323.25 m 492.5 323.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 339.25 m 561.5 339.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 341.25 m 561.5 341.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 325.25 m 561.5 325.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 323.25 m 561.5 323.25 l s BT /F3 7.00 Tf ET q 0 0 0 rg BT 52.00 698.25 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 421.70 698.25 Td (Year Ended December 31,) Tj ET Q BT /F3 4.00 Tf ET q 0 0 0 rg BT 52.00 680.64 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 387.70 681.25 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 456.70 681.25 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 525.70 681.25 Td (2014) Tj ET Q BT /F3 4.00 Tf ET q 0 0 0 rg BT 52.00 669.64 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 405.35 669.65 Td (\(in thousands, except per unit data\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 656.65 Td (Revenues:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 642.65 Td (Management fees) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 147.45 642.20 Td (.......................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 371.00 642.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 387.45 642.65 Td (785,673) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 440.00 642.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 456.45 642.65 Td (753,805) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 509.00 642.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 642.65 Td (762,823) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 628.65 Td (Incentive income) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 142.45 628.20 Td (.........................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 387.45 628.65 Td (355,152) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 456.45 628.65 Td (263,806) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 628.65 Td (491,402) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 614.65 Td (Receipts of investment income from funds ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 240.07 618.94 Td (\(1\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 247.22 614.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 249.95 614.20 Td (..............................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 392.45 614.65 Td (66,390) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 456.45 614.65 Td (101,296) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 614.65 Td (81,438) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 600.65 Td (Receipts of investment income from companies) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 262.45 600.20 Td (.........................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 392.45 600.65 Td (63,700) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 461.45 600.65 Td (48,067) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 600.65 Td (49,546) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 586.65 Td (Total distributable earnings revenues) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 237.45 586.20 Td (...................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 379.95 586.65 Td (1,270,915) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 448.95 586.65 Td (1,166,974) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.95 586.65 Td (1,385,209) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 572.65 Td (Expenses:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 558.65 Td (Compensation and benefits) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 184.95 558.20 Td (........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 384.45 558.65 Td (\(381,937) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.00 558.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 453.45 558.65 Td (\(404,442) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 489.00 558.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 558.65 Td (\(379,360) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 558.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 544.65 Td (Incentive income compensation) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 199.95 544.20 Td (..................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 384.45 544.65 Td (\(169,683) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.00 544.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 453.45 544.65 Td (\(141,822) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 489.00 544.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 544.65 Td (\(231,871) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 544.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 530.65 Td (General and administrative) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 182.45 530.20 Td (.........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 384.45 530.65 Td (\(123,784) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.00 530.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 453.45 530.65 Td (\(120,783) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 489.00 530.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 530.65 Td (\(127,954) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 530.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 516.65 Td (Depreciation and amortization) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 194.95 516.20 Td (....................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.45 516.65 Td (\(12,219) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.00 516.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 458.45 516.65 Td (\(10,018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 489.00 516.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 532.45 516.65 Td (\(7,249) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 516.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 502.65 Td (Total expenses) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 152.45 502.20 Td (.....................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 384.45 502.65 Td (\(687,623) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.00 502.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 453.45 502.65 Td (\(677,065) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 489.00 502.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 502.65 Td (\(746,434) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 502.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 488.65 Td (Other income \(expense\):) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 474.65 Td (Interest expense, net of interest income) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 232.45 474.20 Td (.....................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.45 474.65 Td (\(31,845) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.00 474.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 458.45 474.65 Td (\(35,032) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 489.00 474.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 527.45 474.65 Td (\(30,190) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 474.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 460.65 Td (Operating Group income taxes) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 197.45 460.20 Td (...................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 394.45 460.65 Td (\(4,635) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.00 460.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.45 460.65 Td (\(3,374) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 489.00 460.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 544.95 460.65 Td (\(18) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 460.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 446.65 Td (Other income \(expense\), net) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 189.95 446.20 Td (......................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 394.45 446.65 Td (\(8,392) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.00 446.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.45 446.65 Td (\(3,927) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 489.00 446.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 532.45 446.65 Td (\(2,431) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 446.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 432.65 Td (Distributable earnings) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 144.95 432.20 Td (........................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 387.45 432.65 Td (538,420) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 456.45 432.65 Td (447,576) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 432.65 Td (606,136) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 418.65 Td (Distributable earnings attributable to OCGH non-controlling interest) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 339.95 418.20 Td (..........) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 384.45 418.65 Td (\(320,611) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.00 418.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 453.45 418.65 Td (\(304,900) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 489.00 418.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 418.65 Td (\(439,130) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 418.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 404.65 Td (Non-Operating Group expenses) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 202.45 404.20 Td (.................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 394.45 404.65 Td (\(1,176) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.00 404.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.45 404.65 Td (\(2,097) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 489.00 404.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 532.45 404.65 Td (\(1,645) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 404.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 390.65 Td (Distributable earnings-OCG income taxes) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 239.95 390.20 Td (..................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.45 390.65 Td (\(11,939) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.00 390.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.45 390.65 Td (\(2,083) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 489.00 390.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 532.45 390.65 Td (\(4,138) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 390.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 376.65 Td (Tax receivable agreement) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 177.45 376.20 Td (...........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.45 376.65 Td (\(20,469) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.00 376.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 458.45 376.65 Td (\(19,090) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 489.00 376.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 527.45 376.65 Td (\(15,853) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 376.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 360.65 Td (Distributable earnings-OCG) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 167.45 360.20 Td (...............................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 371.00 360.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 387.45 360.65 Td (184,225) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 440.00 360.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 456.45 360.65 Td (119,406) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 509.00 360.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 360.65 Td (145,370) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 344.65 Td (Distributable earnings per Class A unit) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 207.45 344.20 Td (...............................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 371.00 344.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 402.45 344.65 Td (2.94) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 440.00 344.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 471.45 344.65 Td (2.42) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 509.00 344.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.45 344.65 Td (3.41) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 328.65 Td (Weighted average number of Class A units outstanding) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 274.95 328.20 Td (....................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 392.45 328.65 Td (62,565) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 461.45 328.65 Td (49,324) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 328.65 Td (42,582) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 310.25 m 150.5 310.25 l s BT /F1 10.00 Tf ET BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 296.95 Td (\(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.00 296.95 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 296.95 Td (This adjustment characterizes a portion of the distributions received from funds as receipts of investment income or loss. ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 286.15 Td (In general, the income or loss component of a fund distribution is calculated by multiplying the amount of the distribution by ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 275.35 Td (the ratio of our investment’) Tj ET Q q 0 0 0 rg BT 178.39 275.35 Td (s undistributed income or loss to our remaining investment balance. In addition, if the ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 264.55 Td (distribution is made during the investment period, it is generally not reflected in distributable earnings until after the ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 253.75 Td (investment period ends. ) Tj ET Q q 0 0 0 rg BT 172.56 253.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 217.92 253.75 Td (, any impairment charges on our CLO investments included in ) Tj ET Q q 0 0 0 rg BT 466.04 253.75 Td (ANI are, for ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 242.95 Td (distributable earnings purposes, amortized over the remaining investment period of the respective CLO to align with the ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 232.15 Td (timing of expected cash flows.) Tj ET Q endstream endobj 199 0 obj <> endobj 200 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.40 31.25 Td (99) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Y) Tj ET Q q 0 0 0 rg BT 56.12 741.75 Td (ear Ended December 31, 2016 Compared to ) Tj ET Q q 0 0 0 rg BT 256.06 741.75 Td (Y) Tj ET Q q 0 0 0 rg BT 262.18 741.75 Td (ear Ended December 31, 2015) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 720.75 Td (Distributable earnings grew ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 209.95 720.75 Td ($90.8) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 234.97 720.75 Td ( million, or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 283.32 720.75 Td (20.3%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 311.67 720.75 Td (, to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 328.35 720.75 Td ($538.4 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 390.05 720.75 Td ( for the year ended December 31, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 708.75 Td (2016, from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 100.58 708.75 Td ($447.6 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 162.29 708.75 Td ( for the year ended December 31, 2015, reflecting increases of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 442.45 708.75 Td ($63.5 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 498.59 708.75 Td ( in incentive ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 696.75 Td (income, net of incentive income compensation expense \(“net incentive income”\), and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 427.98 696.75 Td ($49.1) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 453.00 696.75 Td ( million in fee-related ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 684.75 Td (earnings, partially of) Tj ET Q q 0 0 0 rg BT 139.31 684.75 Td (fset by a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 179.89 684.75 Td ($19.3 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 236.03 684.75 Td ( decline in investment income proceeds. For 2016, investment income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 672.75 Td (proceeds totaled ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 126.72 672.75 Td ($130.1 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 188.42 672.75 Td (, including ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 236.23 672.75 Td ($66.4 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 292.37 672.75 Td ( from fund distributions and $63.7 million from DoubleLine, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 660.75 Td (as compared with total investment income proceeds in 2015 of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 329.59 660.75 Td ($149.4 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 391.30 660.75 Td (, of which ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 436.32 660.75 Td ($101.3 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 498.02 660.75 Td ( and $51.7 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 648.75 Td (million was attributable to fund distributions and DoubleLine, respectively) Tj ET Q q 0 0 0 rg BT 371.10 648.75 Td (. ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 627.75 Td (Y) Tj ET Q q 0 0 0 rg BT 56.12 627.75 Td (ear Ended December 31, 2015 Compared to ) Tj ET Q q 0 0 0 rg BT 256.06 627.75 Td (Y) Tj ET Q q 0 0 0 rg BT 262.18 627.75 Td (ear Ended December 31, 2014) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 606.75 Td (Distributable earnings declined $158.5 million, or 26.2%, to $447.6 million for the year ended December 31, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 594.75 Td (2015, from $606.1 million for the year ended December 31, 2014, reflecting decreases of $137.5 million in net ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 582.75 Td (incentive income and $29.7 million in fee-related earnings, partially of) Tj ET Q q 0 0 0 rg BT 356.10 582.75 Td (fset by an $18.4 million increase in investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 570.75 Td (income proceeds. For 2015, investment income proceeds totaled $149.4 million, including $101.3 million from fund ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 558.75 Td (distributions and $51.7 million from DoubleLine, as compared with total investment income proceeds in 2014 of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 546.75 Td ($131.0 million, of which $81.4 million and $46.7 million was attributable to fund distributions and DoubleLine, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 534.75 Td (respectively) Tj ET Q q 0 0 0 rg BT 102.06 534.75 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 513.75 Td (The following table reconciles net income attributable to Oaktree Capital Group, LLC to ) Tj ET Q q 0 0 0 rg BT 472.32 513.75 Td (ANI and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 501.75 Td (distributable earnings: ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 478.25 m 424.5 478.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424.5 478.25 m 438.5 478.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 478.25 m 493.5 478.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 478.25 m 507.5 478.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 478.25 m 562.5 478.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 461.25 m 424.5 461.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 478.25 m 493.5 478.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 461.25 m 493.5 461.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 478.25 m 507.5 478.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 478.25 m 562.5 478.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 461.25 m 562.5 461.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 292.25 m 424.5 292.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 292.25 m 493.5 292.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 292.25 m 562.5 292.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 208.25 m 424.5 208.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 195.25 m 424.5 195.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 193.25 m 424.5 193.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 208.25 m 493.5 208.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 195.25 m 493.5 195.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 193.25 m 493.5 193.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 208.25 m 562.5 208.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 195.25 m 562.5 195.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 193.25 m 562.5 193.25 l s BT /F3 8.00 Tf ET q 0 0 0 rg BT 53.00 482.48 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 422.70 482.25 Td (Year Ended December 31,) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 53.00 465.48 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 388.70 465.25 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 457.70 465.25 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 526.70 465.25 Td (2014) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 53.00 450.48 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 441.35 453.65 Td (\(in thousands\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 436.65 Td (Net income attributable to Oaktree Capital Group, LLC) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 273.45 436.20 Td (.....................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 372.00 436.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 388.45 436.65 Td (194,705) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 441.00 436.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.45 436.65 Td (71,349) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 510.00 436.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.45 436.65 Td (126,283) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 71.00 422.65 Td (Incentive income ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 141.04 426.94 Td (\(1\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 153.45 422.20 Td (.....................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 398.45 422.65 Td (1,407) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 459.45 422.65 Td (\(19,002) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 422.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 531.45 422.65 Td (28,813) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 71.00 408.65 Td (Incentive income compensation ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 199.57 412.94 Td (\(1\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 206.72 408.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 210.95 408.20 Td (..............................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 395.45 408.65 Td (\(1,407) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 421.00 408.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.45 408.65 Td (19,009) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 528.45 408.65 Td (\(10,677) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 559.00 408.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 71.00 394.65 Td (Investment income ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 149.03 398.94 Td (\(2\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 156.18 394.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 160.95 394.20 Td (..................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 390.45 394.65 Td (\(21,814) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 421.00 394.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 481.00 394.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 550.00 394.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 71.00 380.65 Td (Equity-based compensation ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 184.57 384.94 Td (\(3\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 195.95 380.20 Td (....................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 393.45 380.65 Td (11,965) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.45 380.65 Td (16,403) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 531.45 380.65 Td (21,690) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 71.00 366.65 Td (Placement costs ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 139.53 370.94 Td (\(4\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 146.68 366.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 150.95 366.20 Td (......................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 393.45 366.65 Td (11,870) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.45 366.65 Td (3,619) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 550.00 366.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 71.00 352.65 Td (Foreign-currency hedging ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 176.06 356.94 Td (\(5\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 183.20 352.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 188.45 352.20 Td (.......................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 398.45 352.65 Td (1,496) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.45 352.65 Td (2,619) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 533.45 352.65 Td (\(2,003) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 559.00 352.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 71.00 338.65 Td (Acquisition-related items ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 171.54 342.94 Td (\(6\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 178.69 338.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 183.45 338.20 Td (.........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 402.95 338.65 Td (\(924) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 421.00 338.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.45 338.65 Td (5,251) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 536.45 338.65 Td (2,442) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 71.00 324.65 Td (Income taxes ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 127.03 328.94 Td (\(7\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 134.17 324.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 140.95 324.20 Td (..........................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 393.45 324.65 Td (42,519) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.45 324.65 Td (17,549) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 531.45 324.65 Td (18,536) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 71.00 310.65 Td (Non-Operating Group expenses ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 201.07 314.94 Td (\(8\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 213.45 310.20 Td (.............................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 398.45 310.65 Td (1,176) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.45 310.65 Td (2,097) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 536.45 310.65 Td (1,645) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 71.00 296.65 Td (Non-controlling interests ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 170.54 300.94 Td (\(8\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 183.45 296.20 Td (.........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 388.45 296.65 Td (341,590) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 457.45 296.65 Td (192,968) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.45 296.65 Td (386,398) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 282.65 Td (Adjusted net income) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 140.95 282.20 Td (..........................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 388.45 282.65 Td (582,583) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 457.45 282.65 Td (311,862) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.45 282.65 Td (573,127) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 71.00 268.65 Td (Investment income ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 149.03 272.94 Td (\(9\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 160.95 268.20 Td (..................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 385.45 268.65 Td (\(221,377) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 421.00 268.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 459.45 268.65 Td (\(48,253) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 268.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 523.45 268.65 Td (\(117,662) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 559.00 268.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 71.00 254.65 Td (Receipts of investment income from funds ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 241.07 258.94 Td (\(10\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 255.95 254.20 Td (............................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 393.45 254.65 Td (66,390) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 457.45 254.65 Td (101,296) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 531.45 254.65 Td (81,438) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 71.00 240.65 Td (Receipts of investment income from companies) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 263.45 240.20 Td (.........................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 393.45 240.65 Td (63,700) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.45 240.65 Td (48,067) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 531.45 240.65 Td (49,546) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 71.00 226.65 Td (Equity-based compensation ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 184.57 230.94 Td (\(1) Tj ET Q BT /F3 5.85 Tf ET q 0 0 0 rg BT 189.33 230.94 Td (1\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 198.45 226.20 Td (...................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 393.45 226.65 Td (51,759) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.45 226.65 Td (37,978) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 531.45 226.65 Td (19,705) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 71.00 212.65 Td (Operating Group income taxes) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 198.45 212.20 Td (...................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 395.45 212.65 Td (\(4,635) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 421.00 212.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 464.45 212.65 Td (\(3,374) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 212.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 545.95 212.65 Td (\(18) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 559.00 212.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 198.65 Td (Distributable earnings) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 145.95 198.20 Td (........................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 372.00 198.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 388.45 198.65 Td (538,420) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 441.00 198.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 457.45 198.65 Td (447,576) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 510.00 198.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.45 198.65 Td (606,136) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 180.25 m 150.5 180.25 l s BT /F1 10.00 Tf ET BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 169.95 Td (\(1\) ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 169.95 Td (This adjustment adds back the ef) Tj ET Q q 0 0 0 rg BT 204.41 169.95 Td (fect of timing dif) Tj ET Q q 0 0 0 rg BT 267.27 169.95 Td (ferences associated with the recognition of incentive income and ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 159.15 Td (incentive income compensation expense between adjusted net income and net income attributable to OCG. ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 148.35 Td (\(2\) ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 148.35 Td (This adjustment adds back the ef) Tj ET Q q 0 0 0 rg BT 204.41 148.35 Td (fect of dif) Tj ET Q q 0 0 0 rg BT 240.77 148.35 Td (ferences in the recognition of investment income related to corporate ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 137.55 Td (investments in CLOs, which under GAAP) Tj ET Q q 0 0 0 rg BT 236.41 137.55 Td ( are marked-to-market but for segment reporting are accounted for at amortized ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 126.75 Td (cost, subject to impairment.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 115.95 Td (\(3\) ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 115.95 Td (This adjustment adds back the ef) Tj ET Q q 0 0 0 rg BT 204.41 115.95 Td (fect of \(a\) equity-based compensation expense related to unit grants made before our ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 105.15 Td (initial public of) Tj ET Q q 0 0 0 rg BT 128.87 105.15 Td (fering, which is excluded from adjusted net income and fee-related earnings because it is a non-cash charge ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 94.35 Td (that does not af) Tj ET Q q 0 0 0 rg BT 134.38 94.35 Td (fect our financial position, and \(b\) dif) Tj ET Q q 0 0 0 rg BT 278.80 94.35 Td (ferences arising from EVUs that are classified as liability awards under ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 83.55 Td (GAAP) Tj ET Q q 0 0 0 rg BT 97.35 83.55 Td ( but as equity awards for segment reporting.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 72.75 Td (\(4\) ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 72.75 Td (This adjustment adds back the ef) Tj ET Q q 0 0 0 rg BT 204.41 72.75 Td (fect of timing dif) Tj ET Q q 0 0 0 rg BT 267.27 72.75 Td (ferences with respect to the recognition of third-party placement costs ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 61.95 Td (associated with closed-end funds between adjusted net income and net income attributable to OCG.) Tj ET Q endstream endobj 201 0 obj <> endobj 202 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (100) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 742.45 Td (\(5\) ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 742.45 Td (This adjustment adds back the ef) Tj ET Q q 0 0 0 rg BT 204.41 742.45 Td (fect of timing dif) Tj ET Q q 0 0 0 rg BT 267.27 742.45 Td (ferences associated with the recognition of unrealized gains and losses ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 731.65 Td (related to foreign-currency hedging between adjusted net income and net income attributable to OCG.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 720.85 Td (\(6\) ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 720.85 Td (This adjustment adds back the ef) Tj ET Q q 0 0 0 rg BT 204.41 720.85 Td (fect of acquisition-related items associated with the amortization of intangibles and ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 710.05 Td (changes in the contingent consideration liability) Tj ET Q q 0 0 0 rg BT 259.95 710.05 Td (, which are excluded from adjusted net income.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 699.25 Td (\(7\) ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 699.25 Td (Because adjusted net income and fee-related earnings are pre-tax measures, this adjustment adds back the ef) Tj ET Q q 0 0 0 rg BT 512.59 699.25 Td (fect of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 688.45 Td (income tax expense.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 677.65 Td (\(8\) ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 677.65 Td (Because adjusted net income and fee-related earnings are calculated at the Operating Group level, this adjustment adds ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 666.85 Td (back the ef) Tj ET Q q 0 0 0 rg BT 116.37 666.85 Td (fect of items applicable to OCG, its Intermediate Holding Companies or non-controlling interests.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 656.05 Td (\(9\) ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 656.05 Td (This adjustment eliminates segment investment income, which with respect to investments in funds is initially largely non-) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 645.25 Td (cash in nature and is thus not available to fund our operations.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 634.45 Td (\(10\) ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 634.45 Td (This adjustment reflects the portion of distributions received from funds characterized as receipts of investment income or ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 623.65 Td (loss. In general, the income or loss component of a distribution from a fund is calculated by multiplying the amount of the ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 612.85 Td (distribution by the ratio of our investment’) Tj ET Q q 0 0 0 rg BT 236.42 612.85 Td (s undistributed income or loss to our remaining investment balance. In addition, if ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 602.05 Td (the distribution is made during the investment period, it is generally not reflected in distributable earnings until after the ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 591.25 Td (investment period ends.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 580.45 Td (\(1) Tj ET Q q 0 0 0 rg BT 57.33 580.45 Td (1\) ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 580.45 Td (This adjustment adds back the ef) Tj ET Q q 0 0 0 rg BT 204.41 580.45 Td (fect of equity-based compensation expense related to unit grants made after our initial ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 569.65 Td (public of) Tj ET Q q 0 0 0 rg BT 105.86 569.65 Td (fering, which is excluded from distributable earnings because it is non-cash in nature and does not impact our ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 558.85 Td (ability to fund our operations.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 518.05 Td (The following table reconciles net income attributable to Oaktree Capital Group, LLC to adjusted net ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 506.05 Td (income-OCG and distributable earnings-OCG: ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 482.54999999999995 m 424.5 482.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424.5 482.54999999999995 m 438.5 482.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 482.54999999999995 m 493.5 482.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 482.54999999999995 m 507.5 482.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 482.54999999999995 m 562.5 482.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 482.54999999999995 m 424.5 482.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 465.54999999999995 m 424.5 465.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424.5 482.54999999999995 m 438.5 482.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 482.54999999999995 m 493.5 482.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 465.54999999999995 m 493.5 465.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 482.54999999999995 m 507.5 482.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 482.54999999999995 m 562.5 482.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 465.54999999999995 m 562.5 465.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 324.54999999999995 m 424.5 324.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 324.54999999999995 m 493.5 324.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 324.54999999999995 m 562.5 324.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 212.54999999999995 m 424.5 212.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 199.54999999999995 m 424.5 199.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 197.54999999999995 m 424.5 197.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 212.54999999999995 m 493.5 212.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 199.54999999999995 m 493.5 199.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 197.54999999999995 m 493.5 197.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 212.54999999999995 m 562.5 212.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 199.54999999999995 m 562.5 199.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 197.54999999999995 m 562.5 197.54999999999995 l s BT /F3 8.00 Tf ET q 0 0 0 rg BT 53.00 486.78 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 422.70 486.55 Td (Year Ended December 31,) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 53.00 469.78 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 388.70 469.55 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 457.70 469.55 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 526.70 469.55 Td (2014) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 53.00 454.78 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 441.35 457.95 Td (\(in thousands\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 440.95 Td (Net income attributable to Oaktree Capital Group, LLC) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 273.45 440.50 Td (.....................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 372.00 440.95 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 388.45 440.95 Td (194,705) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 441.00 440.95 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.45 440.95 Td (71,349) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 510.00 440.95 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.45 440.95 Td (126,283) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 71.00 426.95 Td (Incentive income attributable to OCG ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 221.07 431.24 Td (\(1\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 230.95 426.50 Td (......................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 405.95 426.95 Td (407) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 464.45 426.95 Td (\(8,087) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 426.95 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 536.45 426.95 Td (6,641) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 71.00 412.95 Td (Incentive income compensation attributable to OCG ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 279.61 417.24 Td (\(1\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 288.45 412.50 Td (...............................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 402.95 412.95 Td (\(407) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 421.00 412.95 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.45 412.95 Td (8,209) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 533.45 412.95 Td (\(1,913) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 559.00 412.95 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 71.00 398.95 Td (Investment income attributable to OCG ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 229.07 403.24 Td (\(2\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 236.22 398.95 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 240.95 398.50 Td (..................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 395.45 398.95 Td (\(8,807) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 421.00 398.95 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 481.00 398.95 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 550.00 398.95 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 71.00 384.95 Td (Equity-based compensation attributable to OCG ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 264.61 389.24 Td (\(3\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 275.95 384.50 Td (....................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 398.45 384.95 Td (4,839) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.45 384.95 Td (5,238) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 536.45 384.95 Td (6,053) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 71.00 370.95 Td (Placement costs attributable to OCG ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 219.57 375.24 Td (\(4\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 226.71 370.95 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 230.95 370.50 Td (......................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 398.45 370.95 Td (4,793) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.45 370.95 Td (1,301) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 550.00 370.95 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 71.00 356.95 Td (Foreign-currency hedging attributable to OCG ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 256.09 361.24 Td (\(5\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 263.24 356.95 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 265.95 356.50 Td (........................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 405.95 356.95 Td (572) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.45 356.95 Td (1,006) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.95 356.95 Td (\(603) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 559.00 356.95 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 71.00 342.95 Td (Acquisition-related items attributable to OCG ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 251.58 347.24 Td (\(6\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 260.95 342.50 Td (..........................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 402.95 342.95 Td (\(372) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 421.00 342.95 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.45 342.95 Td (1,628) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 543.95 342.95 Td (698) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 71.00 328.95 Td (Non-controlling interests attributable to OCG ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 250.58 333.24 Td (\(6\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 257.73 328.95 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 260.95 328.50 Td (..........................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 402.95 328.95 Td (\(886) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 421.00 328.95 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 471.95 328.95 Td (\(703) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 328.95 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 550.00 328.95 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 314.95 Td (Adjusted net income-OCG ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 160.55 319.24 Td (\(7\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 173.45 314.50 Td (.............................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 388.45 314.95 Td (194,844) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.45 314.95 Td (79,941) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.45 314.95 Td (137,159) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 71.00 300.95 Td (Investment income attributable to OCG) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 230.95 300.50 Td (......................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 390.45 300.95 Td (\(89,698) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 421.00 300.95 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 459.45 300.95 Td (\(13,693) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 300.95 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 528.45 300.95 Td (\(32,399) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 559.00 300.95 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 71.00 286.95 Td (Receipts of investment income from funds attributable to OCG) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 320.95 286.50 Td (..................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 393.45 286.95 Td (26,879) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.45 286.95 Td (32,163) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 531.45 286.95 Td (22,674) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 71.00 272.95 Td (Receipts of investment income from companies attributable to OCG) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 340.95 272.50 Td (..........) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 393.45 272.95 Td (25,784) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.45 272.95 Td (15,735) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 531.45 272.95 Td (13,892) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 71.00 258.95 Td (Equity-based compensation attributable to OCG ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 264.61 263.24 Td (\(8\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 275.95 258.50 Td (....................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 393.45 258.95 Td (20,940) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.45 258.95 Td (12,259) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 536.45 258.95 Td (5,517) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 71.00 244.95 Td (Distributable earnings-OCG income taxes) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 240.95 244.50 Td (..................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 390.45 244.95 Td (\(11,939) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 421.00 244.95 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 464.45 244.95 Td (\(2,083) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 244.95 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 533.45 244.95 Td (\(4,138) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 559.00 244.95 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 71.00 230.95 Td (Tax receivable agreement) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 178.45 230.50 Td (...........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 390.45 230.95 Td (\(20,469) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 421.00 230.95 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 459.45 230.95 Td (\(19,090) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 230.95 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 528.45 230.95 Td (\(15,853) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 559.00 230.95 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 71.00 216.95 Td (Income taxes of Intermediate Holding Companies) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 270.95 216.50 Td (......................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 393.45 216.95 Td (37,884) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.45 216.95 Td (14,174) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 531.45 216.95 Td (18,518) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 202.95 Td (Distributable earnings-OCG ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 166.04 207.24 Td (\(7\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 178.45 202.50 Td (...........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 372.00 202.95 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 388.45 202.95 Td (184,225) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 441.00 202.95 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 457.45 202.95 Td (119,406) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 510.00 202.95 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.45 202.95 Td (145,370) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 184.54999999999995 m 150.5 184.54999999999995 l s BT /F1 10.00 Tf ET BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 174.25 Td (\(1\) ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 174.25 Td (This adjustment adds back the ef) Tj ET Q q 0 0 0 rg BT 204.41 174.25 Td (fect of timing dif) Tj ET Q q 0 0 0 rg BT 267.27 174.25 Td (ferences associated with the recognition of incentive income and ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 163.45 Td (incentive income compensation expense between adjusted net income-OCG and net income attributable to OCG. ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 152.65 Td (\(2\) ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 152.65 Td (This adjustment adds back the ef) Tj ET Q q 0 0 0 rg BT 204.41 152.65 Td (fect of dif) Tj ET Q q 0 0 0 rg BT 240.77 152.65 Td (ferences in the recognition of investment income related to corporate ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 141.85 Td (investments in CLOs, which under GAAP) Tj ET Q q 0 0 0 rg BT 236.41 141.85 Td ( are marked-to-market but for segment reporting are accounted for at amortized ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 131.05 Td (cost, subject to impairment.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 120.25 Td (\(3\) ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 120.25 Td (This adjustment adds back the ef) Tj ET Q q 0 0 0 rg BT 204.41 120.25 Td (fect of \(a\) equity-based compensation expense attributable to OCG related to unit grants ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 109.45 Td (made before our initial public of) Tj ET Q q 0 0 0 rg BT 197.41 109.45 Td (fering, which is excluded from adjusted net income-OCG and fee-related earnings-OCG ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 98.65 Td (because it is a non-cash charge that does not af) Tj ET Q q 0 0 0 rg BT 263.96 98.65 Td (fect our financial position, and \(b\) dif) Tj ET Q q 0 0 0 rg BT 408.38 98.65 Td (ferences arising from EVUs that are ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 87.85 Td (classified as liability awards under GAAP) Tj ET Q q 0 0 0 rg BT 235.41 87.85 Td ( but as equity awards for segment reporting.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 77.05 Td (\(4\) ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 77.05 Td (This adjustment adds back the ef) Tj ET Q q 0 0 0 rg BT 204.41 77.05 Td (fect of timing dif) Tj ET Q q 0 0 0 rg BT 267.27 77.05 Td (ferences with respect to the recognition of third-party placement costs ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 66.25 Td (associated with closed-end funds between adjusted net income-OCG and net income attributable to OCG.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 55.45 Td (\(5\) ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 55.45 Td (This adjustment adds back the ef) Tj ET Q q 0 0 0 rg BT 204.41 55.45 Td (fect of timing dif) Tj ET Q q 0 0 0 rg BT 267.27 55.45 Td (ferences associated with the recognition of unrealized gains and losses ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 44.65 Td (related to foreign-currency hedging between adjusted net income-OCG and net income attributable to OCG.) Tj ET Q endstream endobj 203 0 obj <> endobj 204 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (101) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 742.45 Td (\(6\) ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 742.45 Td (This adjustment adds back the ef) Tj ET Q q 0 0 0 rg BT 204.41 742.45 Td (fect of \(a\) acquisition-related items associated with the amortization of intangibles and ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 731.65 Td (changes in the contingent consideration liability and \(b\) non-controlling interests, which are both excluded from segment ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 720.85 Td (reporting.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 710.05 Td (\(7\) ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 710.05 Td (Adjusted net income-OCG and distributable earnings-OCG are calculated to evaluate the portion of adjusted net income ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 699.25 Td (and distributable earnings attributable to Class ) Tj ET Q q 0 0 0 rg BT 259.61 699.25 Td (A) Tj ET Q q 0 0 0 rg BT 265.12 699.25 Td ( unitholders. ) Tj ET Q q 0 0 0 rg BT 318.99 699.25 Td (These measures are net of income taxes and expenses ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 688.45 Td (applicable to OCG or its Intermediate Holding Companies.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 677.65 Td (\(8\) ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 677.65 Td (This adjustment adds back the ef) Tj ET Q q 0 0 0 rg BT 204.41 677.65 Td (fect of equity-based compensation expense attributable to OCG related to unit grants ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 666.85 Td (made after our initial public of) Tj ET Q q 0 0 0 rg BT 189.90 666.85 Td (fering, which is excluded from distributable earnings because it is non-cash in nature and ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 656.05 Td (does not impact our ability to fund our operations. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 623.05 Td (Fee-related Earnings) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 602.05 Td (Y) Tj ET Q q 0 0 0 rg BT 56.12 602.05 Td (ear Ended December 31, 2016 Compared to ) Tj ET Q q 0 0 0 rg BT 256.06 602.05 Td (Y) Tj ET Q q 0 0 0 rg BT 262.18 602.05 Td (ear Ended December 31, 2015) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 581.05 Td (Fee-related earnings grew ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 205.51 581.05 Td ($49.1) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 230.53 581.05 Td ( million, or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 278.88 581.05 Td (22.5%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 307.23 581.05 Td (, to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 323.91 581.05 Td ($267.7 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 385.61 581.05 Td ( for the year ended December 31, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 569.05 Td (2016, from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 100.58 569.05 Td ($218.6 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 162.29 569.05 Td ( for the year ended December 31, 2015. ) Tj ET Q q 0 0 0 rg BT 345.00 569.05 Td (The increase reflected ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 446.71 569.05 Td ($31.9) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 471.74 569.05 Td ( million of higher ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 557.05 Td (management fees and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 152.29 557.05 Td ($22.5) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 177.31 557.05 Td ( million of lower compensation and benefits expense, partially of) Tj ET Q q 0 0 0 rg BT 460.07 557.05 Td (fset by ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 492.30 557.05 Td ($3.0) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 511.77 557.05 Td ( million of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 545.05 Td (higher general and administrative expense. ) Tj ET Q q 0 0 0 rg BT 246.61 545.05 Td (The portion of fee-related earnings attributable to our Class ) Tj ET Q q 0 0 0 rg BT 510.65 545.05 Td (A) Tj ET Q q 0 0 0 rg BT 516.77 545.05 Td ( units was ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 533.05 Td ($1.50) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 75.02 533.05 Td ( and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 97.27 533.05 Td ($1.34) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 122.29 533.05 Td ( per unit for 2016 and 2015, respectively) Tj ET Q q 0 0 0 rg BT 300.00 533.05 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 512.05 Td (The ef) Tj ET Q q 0 0 0 rg BT 114.17 512.05 Td (fective tax rate applicable to fee-related earnings for 2016 and 2015 was 13% and 4%, respectively) Tj ET Q q 0 0 0 rg BT 551.47 512.05 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 500.05 Td (In general, the annual ef) Tj ET Q q 0 0 0 rg BT 157.68 500.05 Td (fective tax rate increases as annual fee-related earnings increase, and vice versa. ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 479.05 Td (Y) Tj ET Q q 0 0 0 rg BT 56.12 479.05 Td (ear Ended December 31, 2015 Compared to ) Tj ET Q q 0 0 0 rg BT 256.06 479.05 Td (Y) Tj ET Q q 0 0 0 rg BT 262.18 479.05 Td (ear Ended December 31, 2014) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 458.05 Td (Fee-related earnings declined $29.7 million, or 12.0%, to $218.6 million for the year ended December 31, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 446.05 Td (2015, from $248.3 million for the year ended December 31, 2014, reflecting $9.0 million of lower management fees, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 434.05 Td ($25.0 million in higher compensation and benefits expense, and $7.2 million in lower general and administrative ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 422.05 Td (expense. ) Tj ET Q q 0 0 0 rg BT 95.96 422.05 Td (The portion of fee-related earnings attributable to our Class ) Tj ET Q q 0 0 0 rg BT 360.00 422.05 Td (A) Tj ET Q q 0 0 0 rg BT 366.12 422.05 Td ( units was $1.34 and $1.41 per unit for 2015 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 410.05 Td (and 2014, respectively) Tj ET Q q 0 0 0 rg BT 149.32 410.05 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 389.05 Td (The ef) Tj ET Q q 0 0 0 rg BT 114.17 389.05 Td (fective tax rate applicable to fee-related earnings for 2015 and 2014 was 4% and 1) Tj ET Q q 0 0 0 rg BT 478.67 389.05 Td (1%, respectively) Tj ET Q q 0 0 0 rg BT 550.73 389.05 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 377.05 Td (In general, the annual ef) Tj ET Q q 0 0 0 rg BT 157.68 377.05 Td (fective tax rate increases as annual fee-related earnings increase, and vice versa. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 356.05 Td (The following table reconciles reconciles net income attributable to Oaktree Capital Group, LLC to ) Tj ET Q q 0 0 0 rg BT 520.12 356.05 Td (ANI and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 344.05 Td (fee-related earnings: ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 144.50 344.05 Td ( ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380.5 317.54999999999995 m 435.5 317.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 317.54999999999995 m 443.5 317.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 317.54999999999995 m 498.5 317.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 317.54999999999995 m 506.5 317.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 317.54999999999995 m 561.5 317.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380.5 317.54999999999995 m 435.5 317.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380.5 301.54999999999995 m 435.5 301.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 317.54999999999995 m 443.5 317.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 317.54999999999995 m 498.5 317.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 301.54999999999995 m 498.5 301.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 317.54999999999995 m 506.5 317.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 317.54999999999995 m 561.5 317.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 301.54999999999995 m 561.5 301.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380.5 258.54999999999995 m 435.5 258.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 258.54999999999995 m 498.5 258.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 258.54999999999995 m 561.5 258.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380.5 160.54999999999995 m 435.5 160.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380.5 147.54999999999995 m 435.5 147.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380.5 145.54999999999995 m 435.5 145.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 160.54999999999995 m 498.5 160.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 147.54999999999995 m 498.5 147.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 145.54999999999995 m 498.5 145.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 160.54999999999995 m 561.5 160.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 147.54999999999995 m 561.5 147.54999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 145.54999999999995 m 561.5 145.54999999999995 l s BT /F3 4.00 Tf ET q 0 0 0 rg BT 52.00 320.94 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 427.70 321.55 Td (Year Ended December 31,) Tj ET Q BT /F3 4.00 Tf ET q 0 0 0 rg BT 52.00 304.94 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 399.70 305.55 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 462.70 305.55 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 525.70 305.55 Td (2014) Tj ET Q BT /F3 4.00 Tf ET q 0 0 0 rg BT 52.00 289.94 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 446.35 293.95 Td (\(in thousands\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 276.95 Td (Net income attributable to Oaktree Capital Group, LLC) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 271.95 276.50 Td (..........................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 383.00 276.95 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 399.45 276.95 Td (194,705) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 446.00 276.95 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.45 276.95 Td (71,349) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 509.00 276.95 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 276.95 Td (126,283) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 262.95 Td (Reconciling adjustments ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 170.05 267.24 Td (\(1\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 177.20 262.95 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 181.95 262.50 Td (..............................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 399.45 262.95 Td (387,878) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.45 262.95 Td (240,513) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 262.95 Td (446,844) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 248.95 Td (Adjusted net income) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 139.45 248.50 Td (...............................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 399.45 248.95 Td (582,583) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.45 248.95 Td (311,862) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 248.95 Td (573,127) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 234.95 Td (Incentive income) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 144.45 234.50 Td (.............................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 396.45 234.95 Td (\(355,152) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 432.00 234.95 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 459.45 234.95 Td (\(263,806) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 495.00 234.95 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 234.95 Td (\(491,402) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 234.95 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 220.95 Td (Incentive income compensation) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 201.95 220.50 Td (......................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 399.45 220.95 Td (169,683) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.45 220.95 Td (141,822) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 220.95 Td (231,871) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 206.95 Td (Investment income) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 151.95 206.50 Td (..........................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 396.45 206.95 Td (\(221,377) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 432.00 206.95 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 464.45 206.95 Td (\(48,253) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 495.00 206.95 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 206.95 Td (\(117,662) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 206.95 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 192.95 Td (Equity-based compensation ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 183.57 197.24 Td (\(2\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 190.72 192.95 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 194.45 192.50 Td (.........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 404.45 192.95 Td (51,759) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.45 192.95 Td (37,978) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 192.95 Td (19,705) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 178.95 Td (Interest expense, net of interest income) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 231.95 178.50 Td (..........................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 404.45 178.95 Td (31,845) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.45 178.95 Td (35,032) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 178.95 Td (30,190) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 164.95 Td (Other \(income\) expense, net) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 189.45 164.50 Td (...........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 409.45 164.95 Td (8,392) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 472.45 164.95 Td (3,927) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 164.95 Td (2,431) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 150.95 Td (Fee-related earnings) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 141.95 150.50 Td (..............................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 383.00 150.95 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 399.45 150.95 Td (267,733) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 446.00 150.95 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.45 150.95 Td (218,562) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 509.00 150.95 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 150.95 Td (248,260) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49 132.54999999999995 m 149 132.54999999999995 l s BT /F1 10.00 Tf ET BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 122.25 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 72.50 122.25 Td (Please refer to the table on page 99 for a detailed reconciliation of net income attributable to Oaktree Capital Group, LLC ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 111.45 Td (to adjusted net income.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 100.65 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 72.50 100.65 Td (This adjustment adds back the ef) Tj ET Q q 0 0 0 rg BT 204.41 100.65 Td (fect of equity-based compensation expense related to unit grants made after our initial ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 89.85 Td (public of) Tj ET Q q 0 0 0 rg BT 105.86 89.85 Td (fering, which is excluded from fee-related earnings because it is non-cash in nature and does not impact our ability ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 79.05 Td (to fund our operations.) Tj ET Q endstream endobj 205 0 obj <> endobj 206 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (102) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 741.75 Td (The following table reconciles net income attributable to Oaktree Capital Group, LLC to adjusted net ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (income-OCG and fee-related earnings-OCG: ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380.5 703.25 m 435.5 703.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 703.25 m 443.5 703.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 703.25 m 498.5 703.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 703.25 m 506.5 703.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 703.25 m 561.5 703.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380.5 703.25 m 435.5 703.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380.5 687.25 m 435.5 687.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 703.25 m 443.5 703.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 703.25 m 498.5 703.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 687.25 m 498.5 687.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 703.25 m 506.5 703.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 703.25 m 561.5 703.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 687.25 m 561.5 687.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380.5 643.25 m 435.5 643.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 643.25 m 498.5 643.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 643.25 m 561.5 643.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380.5 531.25 m 435.5 531.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380.5 518.25 m 435.5 518.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380.5 516.25 m 435.5 516.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 531.25 m 498.5 531.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 518.25 m 498.5 518.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 516.25 m 498.5 516.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 531.25 m 561.5 531.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 518.25 m 561.5 518.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 516.25 m 561.5 516.25 l s BT /F3 4.00 Tf ET q 0 0 0 rg BT 52.00 706.64 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 427.70 707.25 Td (Year Ended December 31,) Tj ET Q BT /F3 4.00 Tf ET q 0 0 0 rg BT 52.00 690.64 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 399.70 691.25 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 462.70 691.25 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 525.70 691.25 Td (2014) Tj ET Q BT /F3 4.00 Tf ET q 0 0 0 rg BT 52.00 674.64 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 446.35 679.65 Td (\(in thousands\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 661.65 Td (Net income attributable to Oaktree Capital Group, LLC) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 271.95 661.20 Td (..........................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 383.00 661.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 399.45 661.65 Td (194,705) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 446.00 661.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.45 661.65 Td (71,349) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 509.00 661.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 661.65 Td (126,283) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 647.65 Td (Reconciling adjustments ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 170.05 651.94 Td (\(1\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 177.20 647.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 181.95 647.20 Td (..............................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 416.95 647.65 Td (139) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 472.45 647.65 Td (8,592) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 647.65 Td (10,876) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 633.65 Td (Adjusted net income-OCG ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 159.55 637.94 Td (\(2\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 166.70 633.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 171.95 633.20 Td (..................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 399.45 633.65 Td (194,844) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.45 633.65 Td (79,941) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 633.65 Td (137,159) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 619.65 Td (Incentive income attributable to OCG) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 221.95 619.20 Td (..............................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 396.45 619.65 Td (\(143,595) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 432.00 619.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 464.45 619.65 Td (\(81,314) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 495.00 619.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 619.65 Td (\(132,901) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 619.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 605.65 Td (Incentive income compensation attributable to OCG) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 279.45 605.20 Td (.......................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 404.45 605.65 Td (68,609) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.45 605.65 Td (43,414) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 605.65 Td (62,719) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 591.65 Td (Investment income attributable to OCG) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 229.45 591.20 Td (...........................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 401.45 591.65 Td (\(89,698) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 432.00 591.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 464.45 591.65 Td (\(13,693) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 495.00 591.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 527.45 591.65 Td (\(32,399) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 591.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 577.65 Td (Equity-based compensation attributable to OCG ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 263.61 581.94 Td (\(3\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 270.75 577.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 274.45 577.20 Td (.........................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 404.45 577.65 Td (20,940) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.45 577.65 Td (12,259) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 577.65 Td (5,517) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 563.65 Td (Interest expense, net of interest income attributable to OCG) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 309.45 563.20 Td (...........................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 404.45 563.65 Td (13,002) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.45 563.65 Td (11,642) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 563.65 Td (8,439) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 549.65 Td (Other income \(expense\) attributable to OCG) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 249.45 549.20 Td (...................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 409.45 549.65 Td (3,400) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 472.45 549.65 Td (1,308) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 542.95 549.65 Td (671) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 535.65 Td (Non-fee-related earnings income taxes attributable to OCG ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 307.62 539.94 Td (\(4\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 314.77 535.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 316.95 535.20 Td (........................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 404.45 535.65 Td (26,238) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.45 535.65 Td (12,771) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 535.65 Td (10,710) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 521.65 Td (Fee-related earnings-OCG ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 161.05 525.94 Td (\(2\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 168.19 521.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 174.45 521.20 Td (.................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 383.00 521.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 404.45 521.65 Td (93,740) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 446.00 521.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.45 521.65 Td (66,328) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 509.00 521.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 521.65 Td (59,915) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 503.25 m 150.5 503.25 l s BT /F1 10.00 Tf ET BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 489.95 Td (\(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.00 489.95 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 489.95 Td (Please refer to the table on page 100 for a detailed reconciliation of net income attributable to Oaktree Capital Group, LLC ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 479.15 Td (to adjusted net income-OCG.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 468.35 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 72.50 468.35 Td (Adjusted net income-OCG and fee-related earnings-OCG are calculated to evaluate the portion of adjusted net income and ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 457.55 Td (fee-related earnings attributable to Class ) Tj ET Q q 0 0 0 rg BT 236.60 457.55 Td (A) Tj ET Q q 0 0 0 rg BT 242.10 457.55 Td ( unitholders. ) Tj ET Q q 0 0 0 rg BT 295.97 457.55 Td (These measures are net of income taxes and other income or ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 446.75 Td (expenses applicable to OCG or its Intermediate Holding Companies. ) Tj ET Q q 0 0 0 rg BT 349.65 446.75 Td (A) Tj ET Q q 0 0 0 rg BT 355.15 446.75 Td ( reconciliation of fee-related earnings to fee-related ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 435.95 Td (earnings-OCG is presented below) Tj ET Q q 0 0 0 rg BT 207.57 435.95 Td (.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 405.45 m 436 405.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436 405.45 m 444 405.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 405.45 m 499 405.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499 405.45 m 507 405.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 405.45 m 562 405.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 405.45 m 436 405.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 392.45 m 436 392.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436 405.45 m 444 405.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 405.45 m 499 405.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 392.45 m 499 392.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499 405.45 m 507 405.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 405.45 m 562 405.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 392.45 m 562 392.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 323.45 m 436 323.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 310.45 m 436 310.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 308.45 m 436 308.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 323.45 m 499 323.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 310.45 m 499 310.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 308.45 m 499 308.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 323.45 m 562 323.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 310.45 m 562 310.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 308.45 m 562 308.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 296.45 m 436 296.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 294.45 m 436 294.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 296.45 m 499 296.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 294.45 m 499 294.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 296.45 m 562 296.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 294.45 m 562 294.45 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 428.20 409.45 Td (Year Ended December 31,) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 75.50 396.68 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 400.20 396.45 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 463.20 396.45 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 526.20 396.45 Td (2014) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 75.50 383.68 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 446.85 384.85 Td (\(in thousands\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 75.50 369.85 Td (Fee-related earnings) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 164.95 369.40 Td (.....................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 383.50 369.85 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 399.95 369.85 Td (267,733) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 446.50 369.85 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.95 369.85 Td (218,562) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 509.50 369.85 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.95 369.85 Td (248,260) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 93.50 355.85 Td (Fee-related earnings attributable to OCGH non-controlling interest) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 357.45 355.40 Td (........) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 396.95 355.85 Td (\(159,424) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 432.50 355.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 459.95 355.85 Td (\(148,119) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 495.50 355.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.95 355.85 Td (\(178,944) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.50 355.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 93.50 341.85 Td (Non-Operating Group expenses) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 224.95 341.40 Td (.............................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 406.95 341.85 Td (\(1,051) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 432.50 341.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 469.95 341.85 Td (\(1,691) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 495.50 341.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 532.95 341.85 Td (\(1,647) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.50 341.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 93.50 327.85 Td (Fee-related earnings-OCG income taxes) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 259.95 327.40 Td (...............................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 401.95 327.85 Td (\(13,518) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 432.50 327.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 469.95 327.85 Td (\(2,424) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 495.50 327.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 532.95 327.85 Td (\(7,754) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.50 327.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 75.50 313.85 Td (Fee-related earnings-OCG) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 187.45 313.40 Td (............................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 383.50 313.85 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 404.95 313.85 Td (93,740) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 446.50 313.85 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.95 313.85 Td (66,328) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 509.50 313.85 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.95 313.85 Td (59,915) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 75.50 299.85 Td (Fee-related earnings-OCG per Class A unit) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 249.95 299.40 Td (...................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 383.50 299.85 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 414.95 299.85 Td (1.50) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 446.50 299.85 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 477.95 299.85 Td (1.34) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 509.50 299.85 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.95 299.85 Td (1.41) Tj ET Q BT /F1 10.00 Tf ET BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 274.35 Td (\(3\) ) Tj ET Q q 0 0 0 rg BT 72.50 274.35 Td (This adjustment adds back the ef) Tj ET Q q 0 0 0 rg BT 204.41 274.35 Td (fect of equity-based compensation expense attributable to OCG related to unit grants ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 263.55 Td (made after our initial public of) Tj ET Q q 0 0 0 rg BT 189.90 263.55 Td (fering, which is excluded from fee-related earnings-OCG because it is non-cash in nature and ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 252.75 Td (does not impact our ability to fund our operations.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 241.95 Td (\(4\) ) Tj ET Q q 0 0 0 rg BT 72.50 241.95 Td (This adjustment adds back income taxes associated with segment incentive income, incentive income compensation ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 231.15 Td (expense or investment income or loss, which are not included in the calculation of fee-related earnings-OCG.) Tj ET Q endstream endobj 207 0 obj <> endobj 208 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (103) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Y) Tj ET Q q 0 0 0 rg BT 56.30 741.75 Td (ear Ended December 31, 2016 Compared to the ) Tj ET Q q 0 0 0 rg BT 282.31 741.75 Td (Y) Tj ET Q q 0 0 0 rg BT 288.61 741.75 Td (ear Ended December 31, 2015 ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 720.75 Td (Segment Revenues ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 699.75 Td (Management Fees ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 678.75 Td (A) Tj ET Q q 0 0 0 rg BT 92.12 678.75 Td ( summary of management fees is set forth below: ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 656.25 m 499.5 656.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 656.25 m 507.5 656.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 656.25 m 562.5 656.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 643.25 m 499.5 643.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 643.25 m 562.5 643.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 574.25 m 499.5 574.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 561.25 m 499.5 561.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 559.25 m 499.5 559.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 574.25 m 562.5 574.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 561.25 m 562.5 561.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 559.25 m 562.5 559.25 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 460.20 660.25 Td (Year Ended December 31,) Tj ET Q BT /F3 4.00 Tf ET q 0 0 0 rg BT 53.00 646.64 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 463.70 647.25 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 526.70 647.25 Td (2015) Tj ET Q BT /F3 4.00 Tf ET q 0 0 0 rg BT 53.00 633.64 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 478.85 634.25 Td (\(in thousands\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 53.00 620.65 Td (Management Fees:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 496.00 620.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 559.00 620.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 606.65 Td (Closed-end funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 130.90 606.20 Td (............................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 447.00 606.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.45 606.65 Td (575,290) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 510.00 606.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.45 606.65 Td (518,513) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 592.65 Td (Open-end funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 125.90 592.20 Td (..............................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.45 592.65 Td (156,533) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.45 592.65 Td (178,409) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 578.65 Td (Evergreen funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 125.90 578.20 Td (..............................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 468.45 578.65 Td (53,850) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 531.45 578.65 Td (56,883) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 564.65 Td (Total) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 80.90 564.20 Td (................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 447.00 564.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.45 564.65 Td (785,673) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 510.00 564.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.45 564.65 Td (753,805) Tj ET Q BT /F1 10.00 Tf ET BT /F1 1.00 Tf ET 1 1 0 rg /GS0 gs 50.00 551.24 0.25 -0.91 re f /GS0 gs q 0 0 0 rg BT 50.00 550.55 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 529.55 Td (Management fees increased ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 214.96 529.55 Td ($31.9) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 239.99 529.55 Td ( million, or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 288.33 529.55 Td (4.2%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 311.13 529.55 Td (, to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 327.80 529.55 Td ($785.7 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 389.51 529.55 Td ( for the year ended December 31, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 517.55 Td (2016, from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 100.58 517.55 Td ($753.8 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 162.29 517.55 Td ( for the year ended December 31, 2015, for the reasons described below) Tj ET Q q 0 0 0 rg BT 483.59 517.55 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 501.05 Td (• ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 104.00 501.05 Td (Closed-end funds) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 182.38 501.05 Td (. Management fees attributable to closed-end funds grew ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 445.87 501.05 Td ($56.8) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 470.89 501.05 Td ( million, or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 519.24 501.05 Td (1) Tj ET Q q 0 0 0 rg BT 524.06 501.05 Td (1.0%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 546.85 501.05 Td (, to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 489.05 Td ($575.3 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 165.70 489.05 Td ( for the year ended December 31, 2016, from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 368.59 489.05 Td ($518.5 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 430.30 489.05 Td ( for the year ended ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 477.05 Td (December 31, 2015. ) Tj ET Q q 0 0 0 rg BT 199.99 477.05 Td (The growth reflected an aggregate increase of $1) Tj ET Q q 0 0 0 rg BT 417.72 477.05 Td (16.8 million principally from the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 465.05 Td (start of investment periods for Oaktree Power Opportunities Fund IV) Tj ET Q q 0 0 0 rg BT 404.33 465.05 Td (, SSF) Tj ET Q q 0 0 0 rg BT 428.23 465.05 Td (, Opps X and ROF VII. ) Tj ET Q q 0 0 0 rg BT 533.64 465.05 Td (This ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 453.05 Td (increase was partially of) Tj ET Q q 0 0 0 rg BT 210.53 453.05 Td (fset by an aggregate decline of $60.0 million primarily attributable to closed-end ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 441.05 Td (funds in liquidation.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 424.55 Td (• ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 104.00 424.55 Td (Open-end funds) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 175.72 424.55 Td (. Management fees attributable to open-end funds decreased ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 457.57 424.55 Td ($21.9) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 482.59 424.55 Td ( million, or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 412.55 Td (12.3%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 132.35 412.55 Td (, to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 149.03 412.55 Td ($156.5 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 210.73 412.55 Td ( for the year ended December 31, 2016, from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 413.62 412.55 Td ($178.4 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 475.33 412.55 Td ( for the year ended ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 400.55 Td (December 31, 2015, primarily reflecting net outflows.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 384.05 Td (• ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 104.00 384.05 Td (Evergreen funds) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 177.38 384.05 Td (. Management fees attributable to evergreen funds decreased ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 462.00 384.05 Td ($3.0) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 481.46 384.05 Td ( million, or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 529.81 384.05 Td (5.3%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 552.60 384.05 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 372.05 Td (to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 115.12 372.05 Td ($53.9 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 171.26 372.05 Td ( for the year ended December 31, 2016, from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 374.15 372.05 Td ($56.9 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 430.29 372.05 Td ( for the year ended ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 360.05 Td (December 31, 2015, primarily reflecting net outflows and a reduction in the average management fee ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 348.05 Td (rate for V) Tj ET Q q 0 0 0 rg BT 144.39 348.05 Td (alue Opportunities \(“VOF”\). ) Tj ET Q q 0 0 0 rg BT 270.36 348.05 Td (The decrease was partially of) Tj ET Q q 0 0 0 rg BT 400.24 348.05 Td (fset by drawdowns of capital ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 336.05 Td (commitments by Strategic Credit. ) Tj ET Q q 0 0 0 rg BT 256.64 336.05 Td (The weighted average annual management fee rate for evergreen ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 324.05 Td (funds decreased to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 191.84 324.05 Td (1.22%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 220.19 324.05 Td ( as of December 31, 2016, from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 363.59 324.05 Td (1.43%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 391.95 324.05 Td ( as of December 31, 2015, primarily ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 312.05 Td (reflecting the reduction in the management fee rate for VOF) Tj ET Q q 0 0 0 rg BT 366.92 312.05 Td (.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 291.05 Td (Incentive Income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 274.55 Td (A) Tj ET Q q 0 0 0 rg BT 92.12 274.55 Td ( summary of incentive income is set forth below: ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 307.76 274.55 Td ( ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 252.04999999999995 m 498.5 252.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 252.04999999999995 m 506.5 252.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 252.04999999999995 m 561.5 252.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 239.04999999999995 m 498.5 239.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 239.04999999999995 m 561.5 239.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 184.04999999999995 m 498.5 184.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 171.04999999999995 m 498.5 171.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 169.04999999999995 m 498.5 169.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 184.04999999999995 m 561.5 184.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 171.04999999999995 m 561.5 171.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 169.04999999999995 m 561.5 169.04999999999995 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 459.20 256.05 Td (Year Ended December 31,) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 52.00 243.05 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 462.70 243.05 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 525.70 243.05 Td (2015) Tj ET Q BT /F3 4.00 Tf ET q 0 0 0 rg BT 52.00 229.44 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 477.85 230.05 Td (\(in thousands\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.00 216.45 Td (Incentive Income:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 446.00 216.45 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 509.00 216.45 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 202.45 Td (Closed-end funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 129.90 202.00 Td (............................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 446.00 202.45 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.45 202.45 Td (320,866) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 509.00 202.45 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 202.45 Td (261,143) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 188.45 Td (Evergreen funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 124.90 188.00 Td (..............................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.45 188.45 Td (34,286) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 188.45 Td (2,663) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 174.45 Td (Total) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 79.90 174.00 Td (................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 446.00 174.45 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.45 174.45 Td (355,152) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 509.00 174.45 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 174.45 Td (263,806) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 149.55 Td (Incentive income increased ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 209.96 149.55 Td ($91.4) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 234.98 149.55 Td ( million, or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 283.32 149.55 Td (34.6%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 311.68 149.55 Td (, to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 328.35 149.55 Td ($355.2 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 390.06 149.55 Td ( for the year ended December 31, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 137.55 Td (2016, from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 100.58 137.55 Td ($263.8 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 162.29 137.55 Td ( for the year ended December 31, 2015. In 2016, regular incentive and tax-related ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 125.55 Td (incentive income accounted for $282.5 million and $72.7 million, respectively) Tj ET Q q 0 0 0 rg BT 388.33 125.55 Td (, of which the former arose from ten ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 113.55 Td (closed-end funds among the Distressed Debt, Control Investing, Real Estate and Mezzanine strategies, as well as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 101.55 Td (four evergreen fund strategies. In 2015, regular and tax-related incentive income accounted for $121.0 million and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 89.55 Td ($142.8 million, respectively) Tj ET Q q 0 0 0 rg BT 169.32 89.55 Td (, of which the former arose from nine closed-end funds among the Distressed Debt, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 77.55 Td (Control Investing and Real Estate strategies, as well as one evergreen fund strategy) Tj ET Q q 0 0 0 rg BT 421.69 77.55 Td (.) Tj ET Q endstream endobj 209 0 obj <> endobj 210 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (104) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Investment Income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 725.25 Td (A) Tj ET Q q 0 0 0 rg BT 92.12 725.25 Td ( summary of investment income is set forth below: ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 316.64 725.25 Td ( ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 702.75 m 498.5 702.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 702.75 m 506.5 702.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 702.75 m 561.5 702.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 689.75 m 498.5 689.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 689.75 m 561.5 689.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 549.75 m 498.5 549.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 536.75 m 498.5 536.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 534.75 m 498.5 534.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 549.75 m 561.5 549.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 536.75 m 561.5 536.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 534.75 m 561.5 534.75 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 459.20 706.75 Td (Year Ended December 31,) Tj ET Q BT /F3 4.00 Tf ET q 0 0 0 rg BT 52.00 693.14 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 462.70 693.75 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 525.70 693.75 Td (2015) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 680.15 Td (Income \(loss\) from investments in funds:) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 477.85 679.75 Td (\(in thousands\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 61.00 666.15 Td (Oaktree funds:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 495.00 666.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 666.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 652.15 Td (Corporate Debt) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 139.90 651.70 Td (........................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 446.00 652.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.45 652.15 Td (24,375) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 509.00 652.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 652.15 Td (7,020) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 638.15 Td (Convertible Securities) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 164.90 637.70 Td (..............................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 476.95 638.15 Td (\(788) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 495.00 638.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 539.95 638.15 Td (\(201) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 638.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 624.15 Td (Distressed Debt) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 142.40 623.70 Td (.......................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.45 624.15 Td (57,605) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 527.45 624.15 Td (\(46,977) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 624.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 610.15 Td (Control Investing) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 144.90 609.70 Td (......................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.45 610.15 Td (34,422) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 610.15 Td (17,072) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 596.15 Td (Real Estate) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 124.90 595.70 Td (..............................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.45 596.15 Td (11,025) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 596.15 Td (14,980) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 582.15 Td (Listed Equities) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 134.90 581.70 Td (..........................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.45 582.15 Td (22,646) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 532.45 582.15 Td (\(1,857) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 582.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 61.00 568.15 Td (Non-Oaktree funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 144.90 567.70 Td (......................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 472.45 568.15 Td (5,665) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 568.15 Td (7,930) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 554.15 Td (Income from investments in companies) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 214.95 553.70 Td (..........................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.45 554.15 Td (66,427) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 554.15 Td (50,286) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 540.15 Td (Total investment income) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 154.90 539.70 Td (..................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 446.00 540.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.45 540.15 Td (221,377) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 509.00 540.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 540.15 Td (48,253) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 509.25 Td (Investment income increased ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 218.84 509.25 Td ($173.1) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 249.43 509.25 Td ( million, to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.22 509.25 Td ($221.4 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 358.92 509.25 Td ( for the year ended December 31, 2016, from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 497.25 Td ($48.3 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 106.14 497.25 Td ( for the year ended December 31, 2015. ) Tj ET Q q 0 0 0 rg BT 288.85 497.25 Td (The increase primarily reflected higher overall returns on our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 485.25 Td (fund investments, despite a $23 million impairment charge in the first quarter of 2016 on investments in certain of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 473.25 Td (our CLOs that predominantly stemmed from holdings in energy-related companies. DoubleLine accounted for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 461.25 Td (investment income of $66.1 million and $55.0 million in 2016 and 2015, respectively) Tj ET Q q 0 0 0 rg BT 419.48 461.25 Td (, of which performance fees ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 449.25 Td (accounted for $4.7 million and $4.3 million, respectively) Tj ET Q q 0 0 0 rg BT 294.39 449.25 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 428.25 Td (Segment Expenses ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 411.75 Td (Compensation and Benefits ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 390.75 Td (Compensation and benefits expense decreased ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.59 390.75 Td ($22.5) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 325.61 390.75 Td ( million, or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 373.96 390.75 Td (5.6%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 396.75 390.75 Td (, to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 413.43 390.75 Td ($381.9 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 475.13 390.75 Td ( for the year ended ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 378.75 Td (December 31, 2016, from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 166.17 378.75 Td ($404.4 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 227.87 378.75 Td ( for the year ended December 31, 2015, primarily reflecting an overall shift ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 366.75 Td (in compensation mix from cash to equity) Tj ET Q q 0 0 0 rg BT 227.67 366.75 Td (.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 345.75 Td (Equity-based Compensation ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 324.75 Td (Equity-based compensation expense increased ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 298.91 324.75 Td ($13.8) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 323.93 324.75 Td ( million, or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 372.28 324.75 Td (36.3%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 400.63 324.75 Td (, to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 417.31 324.75 Td ($51.8 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 473.45 324.75 Td ( for the year ended ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 312.75 Td (December 31, 2016, from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 166.17 312.75 Td ($38.0 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 222.31 312.75 Td ( for the year ended December 31, 2015. ) Tj ET Q q 0 0 0 rg BT 405.02 312.75 Td (The increase reflected non-cash ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 300.75 Td (amortization expense associated with vesting of Class ) Tj ET Q q 0 0 0 rg BT 291.79 300.75 Td (A) Tj ET Q q 0 0 0 rg BT 297.91 300.75 Td ( and OCGH unit grants made to employees and directors ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 288.75 Td (subsequent to our initial public of) Tj ET Q q 0 0 0 rg BT 195.47 288.75 Td (fering, coupled with an overall shift in compensation mix from cash to equity) Tj ET Q q 0 0 0 rg BT 529.34 288.75 Td (. ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 267.75 Td (Incentive Income Compensation) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 246.75 Td (Incentive income compensation expense increased ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 315.58 246.75 Td ($27.9) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 340.60 246.75 Td ( million, or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 388.95 246.75 Td (19.7%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 417.30 246.75 Td (, to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 433.98 246.75 Td ($169.7 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 495.68 246.75 Td ( for the year ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 234.75 Td (ended December 31, 2016, from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 196.75 234.75 Td ($141.8 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 258.46 234.75 Td ( for the year ended December 31, 2015. ) Tj ET Q q 0 0 0 rg BT 441.17 234.75 Td (The increase reflected ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 222.75 Td (growth in incentive income, as well as dif) Tj ET Q q 0 0 0 rg BT 230.46 222.75 Td (ferences in the applicable funds’) Tj ET Q q 0 0 0 rg BT 372.96 222.75 Td ( compensation percentages. ) Tj ET Q q 0 0 0 rg BT 503.60 222.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 554.00 222.75 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 210.75 Td (2015 included catch-up tax amounts related to incentive interests awarded to certain investment professionals.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 189.75 Td (General and ) Tj ET Q q 0 0 0 rg BT 107.45 189.75 Td (Administrative) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 168.75 Td (General and administrative expense increased ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 295.01 168.75 Td ($3.0) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 314.47 168.75 Td ( million, or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 362.82 168.75 Td (2.5%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 385.61 168.75 Td (, to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 402.28 168.75 Td ($123.8 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 463.99 168.75 Td ( for the year ended ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 156.75 Td (December 31, 2016, from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 166.17 156.75 Td ($120.8 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 227.87 156.75 Td ( for the year ended December 31, 2015.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 135.75 Td (Depreciation and ) Tj ET Q q 0 0 0 rg BT 128.01 135.75 Td (Amortization) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 114.75 Td (Depreciation and amortization expense increased ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 308.35 114.75 Td ($2.2) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 327.82 114.75 Td ( million, or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 376.16 114.75 Td (22.0%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 404.52 114.75 Td (, to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 421.19 114.75 Td ($12.2 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 477.33 114.75 Td ( for the year ended ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 102.75 Td (December 31, 2016, from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 166.17 102.75 Td ($10.0 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 222.31 102.75 Td ( for the year ended December 31, 2015, primarily reflecting leasehold ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 90.75 Td (improvements associated with of) Tj ET Q q 0 0 0 rg BT 194.88 90.75 Td (fice space expansion.) Tj ET Q endstream endobj 211 0 obj <> endobj 212 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (105) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Interest Expense, Net of Interest Income) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 720.75 Td (Interest expense, net decreased ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 231.65 720.75 Td ($3.2) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 251.11 720.75 Td ( million, or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 299.46 720.75 Td (9.1%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 322.25 720.75 Td (, to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 338.92 720.75 Td ($31.8 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 395.07 720.75 Td ( for the year ended December 31, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 708.75 Td (2016, from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 100.58 708.75 Td ($35.0 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 156.72 708.75 Td ( for the year ended December 31, 2015, reflecting higher interest income, as well as the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 696.75 Td (maturity of $100.0 million in senior notes during 2016.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 675.75 Td (Other Income \(Expense\), Net) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 654.75 Td (Other income \(expense\), net amounted to expense of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 325.58 654.75 Td ($8.4 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 376.17 654.75 Td ( and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 398.41 654.75 Td ($3.9 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 448.99 654.75 Td ( for the years ended ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 642.75 Td (December 31, 2016 and 2015, respectively) Tj ET Q q 0 0 0 rg BT 239.93 642.75 Td (, primarily reflecting losses associated with non-operating corporate ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 630.75 Td (activities. ) Tj ET Q q 0 0 0 rg BT 96.13 630.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 146.53 630.75 Td (, 2016 included a $4.4 million impairment charge on our corporate aircraft.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 609.75 Td (Adjusted Net Income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 588.75 Td (ANI increased ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 151.59 588.75 Td ($270.7) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 182.17 588.75 Td ( million, or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 230.52 588.75 Td (86.8%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 258.87 588.75 Td (, to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 275.55 588.75 Td ($582.6 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 337.25 588.75 Td ( for the year ended December 31, 2016, from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 576.75 Td ($31) Tj ET Q q 0 0 0 rg BT 65.94 576.75 Td (1.9 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 110.96 576.75 Td ( for the year ended December 31, 2015, reflecting increases of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 391.12 576.75 Td ($173.1) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 421.71 576.75 Td ( million in investment income, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 564.75 Td ($63.5 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 106.14 564.75 Td ( in net incentive income and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 232.89 564.75 Td ($49.1) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 257.91 564.75 Td ( million in fee-related earnings.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 543.75 Td (Income T) Tj ET Q q 0 0 0 rg BT 90.76 543.75 Td (axes-OCG ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 522.75 Td (Income taxes increased ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 194.39 522.75 Td ($24.6) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 219.41 522.75 Td ( million, to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 267.21 522.75 Td ($39.8 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 323.35 522.75 Td ( for the year ended December 31, 2016, from $15.2 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 510.75 Td (million for the year ended December 31, 2015, primarily reflecting higher adjusted net income-OCG before income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 498.75 Td (taxes. ) Tj ET Q q 0 0 0 rg BT 82.06 498.75 Td (The ef) Tj ET Q q 0 0 0 rg BT 110.22 498.75 Td (fective tax rate applied to ) Tj ET Q q 0 0 0 rg BT 223.63 498.75 Td (ANI for 2016 and 2015 was ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 347.60 498.75 Td (17%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 367.61 498.75 Td ( and 16%, respectively) Tj ET Q q 0 0 0 rg BT 467.48 498.75 Td (. W) Tj ET Q q 0 0 0 rg BT 485.07 498.75 Td (e generally ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 486.75 Td (expect variability in tax rates between periods, because the ef) Tj ET Q q 0 0 0 rg BT 322.75 486.75 Td (fective tax rate is a function of the mix of income and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 474.75 Td (other factors, each of which can have a material impact on the particular period’) Tj ET Q q 0 0 0 rg BT 401.67 474.75 Td (s income tax expense and often ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 462.75 Td (vary significantly within or between years. In general, the annual ef) Tj ET Q q 0 0 0 rg BT 347.21 462.75 Td (fective tax rate increases as the proportion of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 450.75 Td (ANI arising from fee-related earnings, DoubleLine-related investment income, and certain incentive and investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 438.75 Td (income rises, and vice versa.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 411.75 Td (Y) Tj ET Q q 0 0 0 rg BT 56.30 411.75 Td (ear Ended December 31, 2015 Compared to ) Tj ET Q q 0 0 0 rg BT 264.54 411.75 Td (Y) Tj ET Q q 0 0 0 rg BT 270.83 411.75 Td (ear Ended December 31, 2014 ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 395.25 Td (Segment Revenues ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 378.75 Td (Management Fees ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 362.25 Td (A) Tj ET Q q 0 0 0 rg BT 92.12 362.25 Td ( summary of management fees is set forth below: ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 335.75 m 499.5 335.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 335.75 m 507.5 335.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 335.75 m 562.5 335.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 320.75 m 499.5 320.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 320.75 m 562.5 320.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 253.75 m 562.5 253.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 253.75 m 499.5 253.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 238.75 m 499.5 238.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 236.75 m 499.5 236.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 253.75 m 562.5 253.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 238.75 m 562.5 238.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 236.75 m 562.5 236.75 l s BT /F3 4.00 Tf ET q 0 0 0 rg BT 53.00 339.14 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 460.20 339.75 Td (Year Ended December 31,) Tj ET Q BT /F3 4.00 Tf ET q 0 0 0 rg BT 53.00 324.14 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 463.70 324.75 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 526.70 324.75 Td (2014) Tj ET Q BT /F3 4.00 Tf ET q 0 0 0 rg BT 53.00 313.14 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 478.85 313.15 Td (\(in thousands\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 53.00 300.15 Td (Management Fees:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 496.00 300.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 559.00 300.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 286.15 Td (Closed-end funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 130.90 285.70 Td (............................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 447.00 286.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.45 286.15 Td (518,513) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 510.00 286.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.45 286.15 Td (536,794) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 272.15 Td (Open-end funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 125.90 271.70 Td (..............................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.45 272.15 Td (178,409) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.45 272.15 Td (173,018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 258.15 Td (Evergreen funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 125.90 257.70 Td (..............................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 468.45 258.15 Td (56,883) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 531.45 258.15 Td (53,011) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 242.15 Td (Total) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 80.90 241.70 Td (................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 447.00 242.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.45 242.15 Td (753,805) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 510.00 242.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.45 242.15 Td (762,823) Tj ET Q BT /F1 10.00 Tf ET BT /F1 1.00 Tf ET q 0 0 0 rg BT 50.00 228.05 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 207.05 Td (Management fees decreased $9.0 million, or 1.2%, to $753.8 million for the year ended December 31, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 195.05 Td (2015, from $762.8 million for the year ended December 31, 2014, for the reasons described below) Tj ET Q q 0 0 0 rg BT 483.59 195.05 Td (. ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 86.00 178.55 Td (• ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 104.00 178.55 Td (Closed-end funds) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 182.38 178.55 Td (. Management fees attributable to closed-end funds decreased $18.3 million, or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 166.55 Td (3.4%, to $518.5 million for the year ended December 31, 2015, from $536.8 million for the year ended ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 154.55 Td (December 31, 2014. ) Tj ET Q q 0 0 0 rg BT 199.99 154.55 Td (The decrease reflected an aggregate decline of $61.5 million primarily attributable ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 142.55 Td (to closed-end funds in liquidation, partially of) Tj ET Q q 0 0 0 rg BT 300.61 142.55 Td (fset by an aggregate increase of $43.2 million from the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 130.55 Td (Highstar acquisition, closed-end funds for which management fees are based on drawn capital or NA) Tj ET Q q 0 0 0 rg BT 549.06 130.55 Td (V) Tj ET Q q 0 0 0 rg BT 554.81 130.55 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 118.55 Td (new CLOs, and the start of the investment periods for Oaktree Power Opportunities Fund IV and SSF) Tj ET Q q 0 0 0 rg BT 550.89 118.55 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 102.05 Td (• ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 104.00 102.05 Td (Open-end funds) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 175.72 102.05 Td (. Management fees attributable to open-end funds increased $5.4 million, or 3.1%, to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 90.05 Td ($178.4 million for the year ended December 31, 2015, from $173.0 million for the year ended ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 78.05 Td (December 31, 2014, primarily as a result of net inflows to Emerging Markets Equities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 61.55 Td (• ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 104.00 61.55 Td (Evergreen funds) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 177.38 61.55 Td (. Management fees attributable to evergreen funds increased $3.9 million, or 7.4%, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 49.55 Td (to $56.9 million for the year ended December 31, 2015, from $53.0 million for the year ended ) Tj ET Q endstream endobj 213 0 obj <> endobj 214 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (106) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 741.75 Td (December 31, 2014, primarily reflecting drawdowns of capital commitments by Strategic Credit and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 104.00 729.75 Td (V) Tj ET Q q 0 0 0 rg BT 109.93 729.75 Td (alue Equities, partially of) Tj ET Q q 0 0 0 rg BT 218.14 729.75 Td (fset by net outflows and market-value declines for VOF) Tj ET Q q 0 0 0 rg BT 459.92 729.75 Td (. ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 702.75 Td (Incentive Income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 686.25 Td (A) Tj ET Q q 0 0 0 rg BT 92.12 686.25 Td ( summary of incentive income is set forth below: ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 307.76 686.25 Td ( ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 659.75 m 498.5 659.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 659.75 m 506.5 659.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 659.75 m 561.5 659.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 643.75 m 498.5 643.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 643.75 m 561.5 643.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 590.75 m 561.5 590.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 590.75 m 498.5 590.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 575.75 m 498.5 575.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 573.75 m 498.5 573.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 590.75 m 561.5 590.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 575.75 m 561.5 575.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 573.75 m 561.5 573.75 l s BT /F3 4.00 Tf ET q 0 0 0 rg BT 52.00 663.14 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 459.20 663.75 Td (Year Ended December 31,) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 52.00 647.75 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 462.70 647.75 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 525.70 647.75 Td (2014) Tj ET Q BT /F3 4.00 Tf ET q 0 0 0 rg BT 52.00 636.14 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 477.85 636.15 Td (\(in thousands\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.00 623.15 Td (Incentive Income:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 446.00 623.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 509.00 623.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 609.15 Td (Closed-end funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 129.90 608.70 Td (............................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 446.00 609.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.45 609.15 Td (261,143) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 509.00 609.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 609.15 Td (490,081) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 595.15 Td (Evergreen funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 124.90 594.70 Td (..............................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 472.45 595.15 Td (2,663) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 595.15 Td (1,321) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 579.15 Td (Total) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 79.90 578.70 Td (................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 446.00 579.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.45 579.15 Td (263,806) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 509.00 579.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 579.15 Td (491,402) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 554.25 Td (Incentive income decreased $227.6 million, or 46.3%, to $263.8 million for the year ended December 31, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 542.25 Td (2015, from $491.4 million for the year ended December 31, 2014. ) Tj ET Q q 0 0 0 rg BT 345.00 542.25 Td (The 2015 year included tax-related incentive ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 530.25 Td (income of $142.8 million and regular incentive income of $121.0 million, as compared with $219.7 million and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 518.25 Td ($271.7 million, respectively) Tj ET Q q 0 0 0 rg BT 169.32 518.25 Td (, in 2014.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 491.25 Td (Investment Income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 474.75 Td (A) Tj ET Q q 0 0 0 rg BT 92.12 474.75 Td ( summary of investment income is set forth below: ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 316.64 474.75 Td ( ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 448.25 m 498.5 448.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 448.25 m 506.5 448.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 448.25 m 561.5 448.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 432.25 m 498.5 432.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 432.25 m 561.5 432.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 292.25 m 498.5 292.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 277.25 m 498.5 277.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 275.25 m 498.5 275.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 292.25 m 561.5 292.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 277.25 m 561.5 277.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 275.25 m 561.5 275.25 l s BT /F3 4.00 Tf ET q 0 0 0 rg BT 52.00 451.64 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 459.20 452.25 Td (Year Ended December 31,) Tj ET Q BT /F3 4.00 Tf ET q 0 0 0 rg BT 52.00 435.64 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 462.70 436.25 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 525.70 436.25 Td (2014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 422.65 Td (Income \(loss\) from investments in funds:) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 477.85 422.25 Td (\(in thousands\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 61.00 408.65 Td (Oaktree funds:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 495.00 408.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 408.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 394.65 Td (Corporate Debt) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 139.90 394.20 Td (........................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 446.00 394.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 472.45 394.65 Td (7,020) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 509.00 394.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 394.65 Td (15,767) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 380.65 Td (Convertible Securities) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 164.90 380.20 Td (..............................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 476.95 380.65 Td (\(201) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 495.00 380.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 542.95 380.65 Td (143) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 366.65 Td (Distressed Debt) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 142.40 366.20 Td (.......................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 464.45 366.65 Td (\(46,977) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 495.00 366.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 539.95 366.65 Td (\(894) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 366.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 352.65 Td (Control Investing) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 144.90 352.20 Td (......................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.45 352.65 Td (17,072) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 352.65 Td (26,369) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 338.65 Td (Real Estate) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 124.90 338.20 Td (..............................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.45 338.65 Td (14,980) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 338.65 Td (32,347) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 324.65 Td (Listed Equities) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 134.90 324.20 Td (..........................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 469.45 324.65 Td (\(1,857) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 495.00 324.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 324.65 Td (8,466) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 61.00 310.65 Td (Non-Oaktree funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 144.90 310.20 Td (......................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 472.45 310.65 Td (7,930) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 310.65 Td (2,479) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 296.65 Td (Income from investments in companies) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 214.95 296.20 Td (..........................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.45 296.65 Td (50,286) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 296.65 Td (32,985) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 280.65 Td (Total investment income) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 154.90 280.20 Td (..................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 446.00 280.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.45 280.65 Td (48,253) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 509.00 280.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 280.65 Td (117,662) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 255.75 Td (Investment income decreased $69.4 million, or 59.0%, to $48.3 million for the year ended December 31, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 243.75 Td (2015, from $1) Tj ET Q q 0 0 0 rg BT 110.96 243.75 Td (17.7 million for the year ended December 31, 2014, reflecting lower overall returns on our fund ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 231.75 Td (investments. DoubleLine accounted for investment income of $55.0 million and $46.9 million in 2015 and 2014, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 219.75 Td (respectively) Tj ET Q q 0 0 0 rg BT 102.06 219.75 Td (, of which performance fees accounted for $4.3 million and $10.1 million, respectively) Tj ET Q q 0 0 0 rg BT 477.62 219.75 Td (. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 198.75 Td (Segment Expenses ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 182.25 Td (Compensation and Benefits ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 165.25 Td (Compensation and benefits expense increased $25.0 million, or 6.6%, to $404.4 million for the year ended ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 153.25 Td (December 31, 2015, from $379.4 million for the year ended December 31, 2014, in part reflecting growth in average ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 141.25 Td (headcount, including the Highstar acquisition.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 120.25 Td (Equity-based Compensation ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 103.25 Td (Equity-based compensation expense increased $18.3 million, or 92.9%, to $38.0 million for the year ended ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 91.25 Td (December 31, 2015, from $19.7 million for the year ended December 31, 2014, primarily reflecting non-cash ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 79.25 Td (amortization expense associated with vesting of restricted unit grants made to employees and directors subsequent ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 67.25 Td (to our initial public of) Tj ET Q q 0 0 0 rg BT 140.98 67.25 Td (fering.) Tj ET Q endstream endobj 215 0 obj <> endobj 216 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (107) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Incentive Income Compensation) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 724.75 Td (Incentive income compensation expense decreased $90.1 million, or 38.9%, to $141.8 million for the year ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 712.75 Td (ended December 31, 2015, from $231.9 million for the year ended December 31, 2014. ) Tj ET Q q 0 0 0 rg BT 441.17 712.75 Td (The percentage decrease ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 700.75 Td (was smaller than the corresponding decline of 46.3% in incentive income, primarily as a result of catch-up tax ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 688.75 Td (amounts related to incentive interests awarded to certain investment professionals in 2014.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 667.75 Td (General and ) Tj ET Q q 0 0 0 rg BT 107.45 667.75 Td (Administrative) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 650.75 Td (General and administrative expense decreased $7.2 million, or 5.6%, to $120.8 million for the year ended ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 638.75 Td (December 31, 2015, from $128.0 million for the year ended December 31, 2014. ) Tj ET Q q 0 0 0 rg BT 410.58 638.75 Td (The decline was primarily ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 626.75 Td (attributable to lower professional fees and other general operating expenses.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 605.75 Td (Interest Expense, Net of Interest Income) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 589.25 Td (Interest expense, net increased $4.8 million, or 15.9%, to $35.0 million for the year ended December 31, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 577.25 Td (2015, from $30.2 million for the year ended December 31, 2014, primarily reflecting the senior notes issued in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 565.25 Td (September 2014.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 544.25 Td (Other Income \(Expense\), Net ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 527.75 Td (Other income \(expense\), net amounted to expenses of $3.9 million and $2.4 million for the years ended ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 515.75 Td (December 31, 2015 and 2014, respectively) Tj ET Q q 0 0 0 rg BT 239.93 515.75 Td (. In 2015 and 2014, respectively) Tj ET Q q 0 0 0 rg BT 383.73 515.75 Td (, foreign-currency transactions resulted ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 503.75 Td (in a $0.4 million loss and a $2.9 million gain, and net losses associated with non-operating corporate activities were ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 491.75 Td ($3.6 million and $2.1 million. ) Tj ET Q q 0 0 0 rg BT 181.19 491.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 231.59 491.75 Td (, 2014 included a $3.0 million write-of) Tj ET Q q 0 0 0 rg BT 396.50 491.75 Td (f of unamortized debt issuance costs ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 479.75 Td (associated with the refinancing of our corporate credit facility) Tj ET Q q 0 0 0 rg BT 317.17 479.75 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 458.75 Td (Adjusted Net Income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 442.25 Td (Adjusted net income decreased $261.2 million, or 45.6%, to $31) Tj ET Q q 0 0 0 rg BT 368.77 442.25 Td (1.9 million for the year ended December ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 430.25 Td (31, 2015, from $573.1 million for the year ended December 31, 2014, reflecting declines of $137.5 million in net ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 418.25 Td (incentive income, $69.4 million in investment income and $29.7 million in fee-related earnings.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 397.25 Td (Income T) Tj ET Q q 0 0 0 rg BT 90.76 397.25 Td (axes-OCG ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 380.75 Td (Income taxes decreased $3.3 million, or 17.8%, to $15.2 million for the year ended December 31, 2015, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 368.75 Td (from $18.5 million for the year ended December 31, 2014. ) Tj ET Q q 0 0 0 rg BT 311.63 368.75 Td (The decrease was primarily attributable to the decline in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 356.75 Td (adjusted net income-OCG before income taxes, partially of) Tj ET Q q 0 0 0 rg BT 309.39 356.75 Td (fset by an increase in the ef) Tj ET Q q 0 0 0 rg BT 431.50 356.75 Td (fective tax rate. ) Tj ET Q q 0 0 0 rg BT 504.69 356.75 Td (The ef) Tj ET Q q 0 0 0 rg BT 532.86 356.75 Td (fective ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 344.75 Td (tax rate applied to ) Tj ET Q q 0 0 0 rg BT 131.72 344.75 Td (ANI for the year ended December 31, 2015 and 2014 was 16% and 12%, respectively) Tj ET Q q 0 0 0 rg BT 510.66 344.75 Td (. W) Tj ET Q q 0 0 0 rg BT 528.25 344.75 Td (e ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 332.75 Td (generally expect variability in tax rates between periods, because the ef) Tj ET Q q 0 0 0 rg BT 366.11 332.75 Td (fective tax rate is a function of the mix of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 320.75 Td (income and other factors, each of which can have a material impact on the particular period’) Tj ET Q q 0 0 0 rg BT 456.15 320.75 Td (s income tax expense ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 308.75 Td (and may vary significantly within or between years. In general, the annual ef) Tj ET Q q 0 0 0 rg BT 388.34 308.75 Td (fective tax rate increases as the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 296.75 Td (proportion of ) Tj ET Q q 0 0 0 rg BT 108.37 296.75 Td (ANI arising from fee-related earnings, DoubleLine-related investment income and certain incentive and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 284.75 Td (investment income rises, and vice versa.) Tj ET Q endstream endobj 217 0 obj <> endobj 218 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (108) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Segment Statements of Financial Condition ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 725.25 Td (Since our founding, we have managed our financial condition in a way that builds our capital base and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 713.25 Td (maintains suf) Tj ET Q q 0 0 0 rg BT 108.74 713.25 Td (ficient liquidity for known and anticipated uses of cash. W) Tj ET Q q 0 0 0 rg BT 364.24 713.25 Td (e have issued debt largely to help fund our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 701.25 Td (corporate investments in funds and companies, favoring longer terms to better match the multi-year nature of our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 689.25 Td (typical investments. Our segment assets do not include accrued incentives \(fund level\), an of) Tj ET Q q 0 0 0 rg BT 462.81 689.25 Td (f-balance sheet ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 677.25 Td (metric, nor do they reflect the fair-market value of our 20% interest in DoubleLine, which is carried at cost, as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 665.25 Td (adjusted under the equity method of accounting. For a reconciliation of segment total assets to our consolidated ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 653.25 Td (total assets, please see the “Segment Reporting” note to our consolidated financial statements included elsewhere ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 641.25 Td (in this annual report. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 143.39 641.25 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 624.75 Td (The following table presents our segment statements of financial condition:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 602.25 m 494.5 602.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494.5 602.25 m 502.5 602.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 602.25 m 561.5 602.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 590.25 m 494.5 590.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 590.25 m 561.5 590.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 495.25 m 561.5 495.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 495.25 m 494.5 495.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 480.25 m 494.5 480.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 478.25 m 494.5 478.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 495.25 m 561.5 495.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 480.25 m 561.5 480.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 478.25 m 561.5 478.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 404.25 m 561.5 404.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 404.25 m 494.5 404.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 390.25 m 494.5 390.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 404.25 m 561.5 404.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 390.25 m 561.5 390.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 348.25 m 561.5 348.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 348.25 m 494.5 348.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 334.25 m 494.5 334.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 348.25 m 561.5 348.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 334.25 m 561.5 334.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 319.25 m 494.5 319.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 317.25 m 494.5 317.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 319.25 m 561.5 319.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 317.25 m 561.5 317.25 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 465.50 606.25 Td (As of December 31,) Tj ET Q BT /F3 4.00 Tf ET q 0 0 0 rg BT 52.00 593.64 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 456.70 594.25 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 523.70 594.25 Td (2015) Tj ET Q BT /F3 4.00 Tf ET q 0 0 0 rg BT 52.00 582.64 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 473.85 582.65 Td (\(in thousands\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.00 569.65 Td (Assets:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 438.00 569.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 505.00 569.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 555.65 Td (Cash and cash-equivalents) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 166.90 555.20 Td (..........................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 438.00 555.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 458.45 555.65 Td (291,470) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 505.00 555.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 555.65 Td (476,046) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 541.65 Td (U.S. Treasury and time deposit securities) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 221.95 541.20 Td (....................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 458.45 541.65 Td (757,578) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 541.65 Td (661,116) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 527.65 Td (Corporate investments) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 149.40 527.20 Td (.................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 450.95 527.65 Td (1,480,928) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.95 527.65 Td (1,434,109) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 513.65 Td (Deferred tax assets) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 136.90 513.20 Td (......................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 458.45 513.65 Td (404,614) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 513.65 Td (425,798) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 499.65 Td (Receivables and other assets) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 176.95 499.20 Td (......................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 458.45 499.65 Td (379,124) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 499.65 Td (257,013) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 483.65 Td (Total assets) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 124.40 483.20 Td (...........................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 438.00 483.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 450.95 483.65 Td (3,313,714) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 505.00 483.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.95 483.65 Td (3,254,082) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.00 464.65 Td (Liabilities and Capital:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 450.65 Td (Liabilities:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 436.65 Td (Accounts payable and accrued expenses) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 239.45 436.20 Td (.............................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 438.00 436.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 458.45 436.65 Td (353,451) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 505.00 436.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 436.65 Td (368,980) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 422.65 Td (Due to affiliates) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 139.40 422.20 Td (.....................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 458.45 422.65 Td (346,543) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 422.65 Td (356,851) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 408.65 Td (Debt obligations) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 141.90 408.20 Td (....................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 458.45 408.65 Td (745,897) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 408.65 Td (846,354) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 394.65 Td (Total liabilities) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 149.40 394.20 Td (.................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 450.95 394.65 Td (1,445,891) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.95 394.65 Td (1,572,185) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 380.65 Td (Capital:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 366.65 Td (OCGH non-controlling interest in consolidated subsidiaries) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 306.95 366.20 Td (..................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 450.95 366.65 Td (1,053,109) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 366.65 Td (944,882) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 352.65 Td (Unitholders’ capital attributable to Oaktree Capital Group, LLC) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 319.45 352.20 Td (.............................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 458.45 352.65 Td (814,714) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 352.65 Td (737,015) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 338.65 Td (Total capital) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 141.90 338.20 Td (....................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 450.95 338.65 Td (1,867,823) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.95 338.65 Td (1,681,897) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 322.65 Td (Total liabilities and capital) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 194.45 322.20 Td (...............................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 438.00 322.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 450.95 322.65 Td (3,313,714) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 505.00 322.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.95 322.65 Td (3,254,082) Tj ET Q BT /F1 10.00 Tf ET BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 291.75 Td (Corporate Investments) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 275.25 Td (A) Tj ET Q q 0 0 0 rg BT 92.12 275.25 Td ( summary of corporate investments is set forth below: ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 331.65 275.25 Td ( ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 252.75 m 494.5 252.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494.5 252.75 m 502.5 252.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 252.75 m 561.5 252.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 240.75 m 494.5 240.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 240.75 m 561.5 240.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 100.75 m 494.5 100.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 85.75 m 494.5 85.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 83.75 m 494.5 83.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 100.75 m 561.5 100.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 85.75 m 561.5 85.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 83.75 m 561.5 83.75 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 465.50 256.75 Td (As of December 31,) Tj ET Q BT /F3 4.00 Tf ET q 0 0 0 rg BT 52.00 244.14 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 456.70 244.75 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 523.70 244.75 Td (2015) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 231.15 Td (Investments in funds:) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 473.85 230.75 Td (\(in thousands\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 61.00 217.15 Td (Oaktree funds:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 491.00 217.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 217.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 203.15 Td (Corporate Debt) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 139.40 202.70 Td (.....................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 438.00 203.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 458.45 203.15 Td (422,330) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 505.00 203.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 203.15 Td (432,228) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 189.15 Td (Convertible Securities) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 164.40 188.70 Td (...........................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 468.45 189.15 Td (1,735) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 189.15 Td (18,497) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 175.15 Td (Distressed Debt) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 141.90 174.70 Td (....................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 458.45 175.15 Td (426,108) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 175.15 Td (379,676) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 161.15 Td (Control Investing) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 144.40 160.70 Td (...................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 458.45 161.15 Td (265,919) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 161.15 Td (267,692) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 147.15 Td (Real Estate) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 124.40 146.70 Td (...........................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 458.45 147.15 Td (141,234) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 147.15 Td (135,922) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 133.15 Td (Listed Equities) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 134.40 132.70 Td (.......................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 458.45 133.15 Td (116,988) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 133.15 Td (105,631) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 61.00 119.15 Td (Non-Oaktree funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 144.40 118.70 Td (...................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.45 119.15 Td (71,682) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 119.15 Td (65,901) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 105.15 Td (Investments in companies) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 161.90 104.70 Td (............................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.45 105.15 Td (34,932) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 105.15 Td (28,562) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 89.15 Td (Total corporate investments) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 169.40 88.70 Td (.........................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 438.00 89.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 450.95 89.15 Td (1,480,928) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 505.00 89.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.95 89.15 Td (1,434,109) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 219 0 obj <> endobj 220 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (109) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Liquidity and Capital Resources ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 725.25 Td (W) Tj ET Q q 0 0 0 rg BT 95.26 725.25 Td (e manage our liquidity and capital requirements by focusing on our cash flows before the consolidation of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 713.25 Td (our funds and the ef) Tj ET Q q 0 0 0 rg BT 138.77 713.25 Td (fect of normal changes in short-term assets and liabilities. Our primary cash flow activities on ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 701.25 Td (an unconsolidated basis involve \(a\) generating cash flow from operations, \(b\) generating income from investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 689.25 Td (activities, including strategic investments in certain third parties, \(c\) funding capital commitments that we have ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 677.25 Td (made to our funds, \(d\) funding our growth initiatives, \(e\) distributing cash flow to our owners and \(f\) borrowings, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 665.25 Td (interest payments and repayments under credit agreements, our senior notes and other borrowing arrangements. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 653.25 Td (As of December 31, 2016, we had ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 203.98 653.25 Td ($1.0 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 251.79 653.25 Td ( of cash and U.S. ) Tj ET Q q 0 0 0 rg BT 331.10 653.25 Td (T) Tj ET Q q 0 0 0 rg BT 336.84 653.25 Td (reasury and time deposit securities, and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 516.37 653.25 Td ($746 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 641.25 Td (million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 78.34 641.25 Td ( in outstanding debt, net of debt issuance costs. ) Tj ET Q q 0 0 0 rg BT 294.59 641.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 345.00 641.25 Td (, we have a $500 million revolving credit facility ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 629.25 Td (available to us, which was undrawn as of December 31, 2016 and the date of this report. Oaktree’) Tj ET Q q 0 0 0 rg BT 484.51 629.25 Td (s investments in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 617.25 Td (funds and companies had a carrying value of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 251.79 617.25 Td ($1.5 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 299.60 617.25 Td ( as of December 31, 2016. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 596.25 Td (Ongoing sources of cash include \(a\) management fees, which are collected monthly or quarterly) Tj ET Q q 0 0 0 rg BT 509.92 596.25 Td (, \(b\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 584.25 Td (incentive income, which is volatile and largely unpredictable as to amount and timing, and \(c\) distributions ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 572.25 Td (stemming from our corporate investments in funds and companies. ) Tj ET Q q 0 0 0 rg BT 350.70 572.25 Td (As of December 31, 2016, corporate ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 560.25 Td (investments of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 117.25 560.25 Td ($1.5 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 165.06 560.25 Td ( included unrealized investment income proceeds of $369 million, of which $186 million ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 548.25 Td (was in closed-end funds in their liquidation period. W) Tj ET Q q 0 0 0 rg BT 286.06 548.25 Td (e primarily use cash flow from operations and distributions ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 536.25 Td (from our corporate investments to pay compensation and related expenses, general and administrative expenses, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 524.25 Td (income taxes, debt service, capital expenditures and distributions. ) Tj ET Q q 0 0 0 rg BT 346.65 524.25 Td (This same cash flow) Tj ET Q q 0 0 0 rg BT 436.68 524.25 Td (, together with proceeds ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 512.25 Td (from equity and debt issuances, is also used to fund corporate investments, fixed assets and other capital items. If ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 500.25 Td (cash flow from operations was insuf) Tj ET Q q 0 0 0 rg BT 208.22 500.25 Td (ficient to fund distributions, we expect that we would suspend paying such ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 488.25 Td (distributions. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 467.25 Td (W) Tj ET Q q 0 0 0 rg BT 95.26 467.25 Td (e use distributable earnings, which is derived from our segment results, to assess performance and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 455.25 Td (assist in the determination of equity distributions from the Operating Group. Our quarterly distributable earnings ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 443.25 Td (may be af) Tj ET Q q 0 0 0 rg BT 93.73 443.25 Td (fected by potential seasonal factors that may) Tj ET Q q 0 0 0 rg BT 290.88 443.25 Td (, in turn, af) Tj ET Q q 0 0 0 rg BT 337.94 443.25 Td (fect the level of the cash distributions applicable to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 431.25 Td (a particular quarter) Tj ET Q q 0 0 0 rg BT 133.38 431.25 Td (. For example, we generally receive tax-related incentive distributions from certain closed-end ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 419.25 Td (funds in the first quarter of the year) Tj ET Q q 0 0 0 rg BT 204.53 419.25 Td (, which if received generate distributable earnings in that period. ) Tj ET Q q 0 0 0 rg BT 492.48 419.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 542.88 419.25 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 407.25 Td (DoubleLine’) Tj ET Q q 0 0 0 rg BT 102.64 407.25 Td (s corporate distributions to us may vary in length of period covered. For example, the quarterly ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 395.25 Td (distributions made in the second and fourth quarters typically have covered two and four months of activity) Tj ET Q q 0 0 0 rg BT 518.96 395.25 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 383.25 Td (respectively) Tj ET Q q 0 0 0 rg BT 102.06 383.25 Td (. ) Tj ET Q q 0 0 0 rg BT 110.21 383.25 Td (The distribution amount for any given period is likely to vary materially due to these and other factors. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 362.25 Td (T) Tj ET Q q 0 0 0 rg BT 91.00 362.25 Td (ax distributions are not required in respect of the Class ) Tj ET Q q 0 0 0 rg BT 335.02 362.25 Td (A) Tj ET Q q 0 0 0 rg BT 341.14 362.25 Td ( units and are only required from the Oaktree ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 350.25 Td (Operating Group entities if and to the extent there is suf) Tj ET Q q 0 0 0 rg BT 295.52 350.25 Td (ficient cash available for distribution. ) Tj ET Q q 0 0 0 rg BT 461.16 350.25 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 512.11 350.25 Td (, if there ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 338.25 Td (were insuf) Tj ET Q q 0 0 0 rg BT 95.40 338.25 Td (ficient cash flow from operations to fund quarterly or tax distributions by the Oaktree Operating Group ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 326.25 Td (entities, we expect that these distributions would not be made. W) Tj ET Q q 0 0 0 rg BT 339.98 326.25 Td (e believe that we have suf) Tj ET Q q 0 0 0 rg BT 455.42 326.25 Td (ficient access to cash ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 314.25 Td (from existing balances, our operations and the revolving credit facility described below to fund our operations and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 302.25 Td (commitments. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 281.25 Td (Consolidated Cash Flows ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 264.75 Td (The accompanying consolidated statements of cash flows include our consolidated funds, despite the fact ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 252.75 Td (that we typically have only a minority economic interest in those funds. ) Tj ET Q q 0 0 0 rg BT 366.64 252.75 Td (The assets of consolidated funds, on a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 240.75 Td (gross basis, are larger than the assets of our business and, accordingly) Tj ET Q q 0 0 0 rg BT 364.99 240.75 Td (, have a substantial ef) Tj ET Q q 0 0 0 rg BT 462.09 240.75 Td (fect on the cash flows ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 228.75 Td (reflected in our consolidated statements of cash flows. ) Tj ET Q q 0 0 0 rg BT 295.50 228.75 Td (The primary cash flow activities of our consolidated funds ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 216.75 Td (involve: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 200.25 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 200.25 Td (raising capital from third-party investors; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 183.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 183.75 Td (using the capital provided by us and third-party investors to fund investments and operating expenses; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 167.25 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 167.25 Td (financing certain investments with indebtedness; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 150.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 150.75 Td (generating cash flows through the realization of investments, as well as the collection of interest and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 138.75 Td (dividend income; and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 122.25 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.00 122.25 Td (distributing net cash flows to fund investors and to us. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 101.25 Td (Because our consolidated funds are either treated as investment companies for accounting purposes or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 89.25 Td (represent CLOs whose primary operations are investing activities, their investing cash flow amounts are included in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 77.25 Td (our cash flows from operations. W) Tj ET Q q 0 0 0 rg BT 203.76 77.25 Td (e believe that each of the consolidated funds and Oaktree has suf) Tj ET Q q 0 0 0 rg BT 494.34 77.25 Td (ficient access ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 65.25 Td (to cash to fund their respective operations in the near term. ) Tj ET Q endstream endobj 221 0 obj <> endobj 222 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 298.00 31.25 Td (1) Tj ET Q q 0 0 0 rg BT 302.82 31.25 Td (10) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 741.75 Td (Significant amounts from our consolidated statements of cash flows for the years ended December 31, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (2016, 2015 and 2014 are discussed below) Tj ET Q q 0 0 0 rg BT 237.37 729.75 Td (. ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 708.75 Td (Operating ) Tj ET Q q 0 0 0 rg BT 96.32 708.75 Td (Activities ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 692.25 Td (Net cash used in operating activities was ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 269.43 692.25 Td ($317.9 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 331.13 692.25 Td (, $943.2 million and $4.3 billion for 2016, 2015 and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 680.25 Td (2014, respectively) Tj ET Q q 0 0 0 rg BT 129.86 680.25 Td (. ) Tj ET Q q 0 0 0 rg BT 138.01 680.25 Td (These amounts included, for 2016, 2015 and 2014, respectively) Tj ET Q q 0 0 0 rg BT 419.12 680.25 Td (, \(a\) net purchases of securities ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 668.25 Td (of the consolidated funds of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 175.09 668.25 Td ($1.0 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 222.90 668.25 Td (, $2.0 billion and $4.8 billion; \(b\) net realized gains on consolidated funds’) Tj ET Q q 0 0 0 rg BT 547.19 668.25 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 656.25 Td (investments of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 117.25 656.25 Td ($27.6 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 173.39 656.25 Td (, $1.2 billion and $2.1 billion; and \(c\) changes in unrealized depreciation on ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 644.25 Td (consolidated funds’) Tj ET Q q 0 0 0 rg BT 135.24 644.25 Td ( investments of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 205.27 644.25 Td ($12.5 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 261.42 644.25 Td (, $3.8 billion and $1.0 billion.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 623.25 Td (Investing ) Tj ET Q q 0 0 0 rg BT 92.43 623.25 Td (Activities ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 606.75 Td (Investing activities used ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 194.39 606.75 Td ($98.6 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 250.53 606.75 Td (, $53.6 million and $39.7 million of cash in 2016, 2015 and 2014, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 594.75 Td (respectively) Tj ET Q q 0 0 0 rg BT 102.06 594.75 Td (. Net activity from purchases, maturities and sales of U.S. ) Tj ET Q q 0 0 0 rg BT 361.42 594.75 Td (T) Tj ET Q q 0 0 0 rg BT 367.15 594.75 Td (reasury and time deposit securities included ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 582.75 Td (net purchases of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 126.71 582.75 Td ($96.5 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 182.86 582.75 Td ( and $5.6 million in 2016 and 2015, respectively) Tj ET Q q 0 0 0 rg BT 393.36 582.75 Td (, and net proceeds of $21.1 million in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 570.75 Td (2014. Corporate investments in funds and companies of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 303.48 570.75 Td ($1) Tj ET Q q 0 0 0 rg BT 313.86 570.75 Td (13.5 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 364.44 570.75 Td (, $82.3 million and $68.5 million in 2016, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 558.75 Td (2015 and 2014, respectively) Tj ET Q q 0 0 0 rg BT 174.35 558.75 Td (, consisted of the following:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 528.75 m 374.5 528.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 528.75 m 382.5 528.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382.5 528.75 m 430.5 528.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430.5 528.75 m 438.5 528.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 528.75 m 486.5 528.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 513.75 m 374.5 513.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382.5 513.75 m 430.5 513.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 513.75 m 486.5 513.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382.5 456.75 m 430.5 456.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 456.75 m 486.5 456.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 456.75 m 374.5 456.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 442.75 m 374.5 442.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 440.75 m 374.5 440.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382.5 456.75 m 430.5 456.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382.5 442.75 m 430.5 442.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382.5 440.75 m 430.5 440.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 456.75 m 486.5 456.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 442.75 m 486.5 442.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 440.75 m 486.5 440.75 l s BT /F2 7.50 Tf ET q 0 0 0 rg BT 360.10 532.84 Td (Year Ended December 31,) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 341.65 517.84 Td (2016) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 397.65 517.84 Td (2015) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 453.65 517.84 Td (2014) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 384.95 505.79 Td (\(in millions\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 107.00 489.15 Td (Funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 137.45 488.70 Td (.......................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 329.00 489.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 348.45 489.15 Td (238.8) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 385.00 489.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 404.45 489.15 Td (300.4) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 441.00 489.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 460.45 489.15 Td (600.3) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 107.00 475.15 Td (Eliminated in consolidation) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 217.45 474.70 Td (.......................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 345.45 475.15 Td (\(125.3) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 371.00 475.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 401.45 475.15 Td (\(218.1) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 427.00 475.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 457.45 475.15 Td (\(536.3) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 483.00 475.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 107.00 461.15 Td (Unconsolidated companies) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 217.45 460.70 Td (.......................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 362.00 461.15 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 418.00 461.15 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 470.45 461.15 Td (4.5) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 107.00 446.15 Td (Total investments) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 179.95 445.70 Td (......................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 329.00 446.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 348.45 446.15 Td (113.5) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 385.00 446.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 409.45 446.15 Td (82.3) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 441.00 446.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 465.45 446.15 Td (68.5) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 413.75 Td (Distributions and proceeds from corporate investments in funds and companies of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 414.63 413.75 Td ($181.8 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 476.34 413.75 Td (, $58.0 million and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 401.75 Td ($38.3 million in 2016, 2015 and 2014, respectively) Tj ET Q q 0 0 0 rg BT 271.63 401.75 Td (, consisted of the following:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 371.75 m 374.5 371.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 371.75 m 382.5 371.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382.5 371.75 m 430.5 371.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430.5 371.75 m 438.5 371.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 371.75 m 486.5 371.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 356.75 m 374.5 356.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382.5 356.75 m 430.5 356.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 356.75 m 486.5 356.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 299.75 m 374.5 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382.5 299.75 m 430.5 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 299.75 m 486.5 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 299.75 m 374.5 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 285.75 m 374.5 285.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 283.75 m 374.5 283.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382.5 299.75 m 430.5 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382.5 285.75 m 430.5 285.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382.5 283.75 m 430.5 283.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 299.75 m 486.5 299.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 285.75 m 486.5 285.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 283.75 m 486.5 283.75 l s BT /F2 7.50 Tf ET q 0 0 0 rg BT 360.10 375.84 Td (Year Ended December 31,) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 341.65 360.84 Td (2016) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 397.65 360.84 Td (2015) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 453.65 360.84 Td (2014) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 384.95 348.79 Td (\(in millions\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 107.00 332.15 Td (Funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 137.45 331.70 Td (.......................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 329.00 332.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 348.45 332.15 Td (291.1) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 385.00 332.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 404.45 332.15 Td (347.0) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 441.00 332.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 460.45 332.15 Td (372.9) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 107.00 318.15 Td (Eliminated in consolidation) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 217.45 317.70 Td (.......................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 345.45 318.15 Td (\(109.3) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 371.00 318.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 401.45 318.15 Td (\(313.0) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 427.00 318.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 457.45 318.15 Td (\(365.3) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 483.00 318.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 107.00 304.15 Td (Unconsolidated companies) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 217.45 303.70 Td (.......................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 362.00 304.15 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 409.45 304.15 Td (24.0) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 465.45 304.15 Td (30.7) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 107.00 289.15 Td (Total investments) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 179.95 288.70 Td (......................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 329.00 289.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 348.45 289.15 Td (181.8) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 385.00 289.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 409.45 289.15 Td (58.0) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 441.00 289.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 465.45 289.15 Td (38.3) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 256.75 Td (Purchases of fixed assets were ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 191.18 256.75 Td ($70.4 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 247.32 256.75 Td (, $23.7 million and $5.0 million in 2016, 2015 and 2014, respectively) Tj ET Q q 0 0 0 rg BT 547.33 256.75 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 244.75 Td (with 2016 including a deposit on a new corporate aircraft. ) Tj ET Q q 0 0 0 rg BT 307.93 244.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 358.33 244.75 Td (, 2014 included a $25.6 million payment, net ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 232.75 Td (of cash acquired, for the Highstar acquisition.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 211.75 Td (Financing ) Tj ET Q q 0 0 0 rg BT 95.77 211.75 Td (Activities ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 195.25 Td (Financing activities provided ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 214.40 195.25 Td ($763.3 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 276.10 195.25 Td (, $992.3 million and $5.1 billion of cash in 2016, 2015 and 2014, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 183.25 Td (respectively) Tj ET Q q 0 0 0 rg BT 102.06 183.25 Td (, and included \(a\) net contributions from non-controlling interests in consolidated funds of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 497.84 183.25 Td ($84.3 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 553.98 183.25 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 171.25 Td (in 2016, net distributions to non-controlling interests in consolidated funds of $1.2 billion in 2015 and net ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 159.25 Td (contributions from non-controlling interests in consolidated funds of $1.4 billion in 2014; \(b\) net borrowings on credit ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 147.25 Td (facilities of the consolidated funds of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 213.43 147.25 Td ($368.0 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 275.14 147.25 Td (, $1.6 billion and $2.4 billion in 2016, 2015 and 2014, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 135.25 Td (respectively; \(c\) distributions to unitholders of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 252.87 135.25 Td ($394.5 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 314.57 135.25 Td (, $372.7 million and $550.8 million in 2016, 2015 and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 123.25 Td (2014, respectively; \(d\) proceeds from debt obligations issued by our CLOs of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 392.40 123.25 Td ($839.4 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 454.10 123.25 Td (, $983.0 million and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 111.25 Td ($1.6 billion in 2016, 2015 and 2014, respectively; \(e\) payments of debt issuance costs of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 443.57 111.25 Td ($14.3 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 499.72 111.25 Td (, $25.2 million ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 99.25 Td (and $32.0 million in 2016, 2015 and 2014, respectively; and \(f\) net unit purchases of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 424.69 99.25 Td ($12.8 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 480.83 99.25 Td (, $4.9 million and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 87.25 Td ($1.8 million in 2016, 2015 and 2014, respectively) Tj ET Q q 0 0 0 rg BT 266.07 87.25 Td (. ) Tj ET Q q 0 0 0 rg BT 273.85 87.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 324.25 87.25 Td (, 2016 included the maturity of $100.0 million in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 75.25 Td (senior notes and $100.0 million in proceeds from the issuance of 3.69% senior notes, which were used to repay ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 63.25 Td ($100.0 million of our $250.0 million corporate term loan due March 31, 2021, while 2014 included an aggregate ) Tj ET Q endstream endobj 223 0 obj <> endobj 224 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 298.35 31.25 Td (1) Tj ET Q q 0 0 0 rg BT 303.17 31.25 Td (1) Tj ET Q q 0 0 0 rg BT 307.99 31.25 Td (1) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td ($250.0 million in proceeds from the issuance of senior notes, and $20.5 million in net proceeds associated with the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (refinancing of our corporate credit facility) Tj ET Q q 0 0 0 rg BT 229.35 729.75 Td (. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 708.75 Td (Future Sources and Uses of Liquidity ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 692.25 Td (W) Tj ET Q q 0 0 0 rg BT 95.26 692.25 Td (e expect to continue to make distributions to our Class ) Tj ET Q q 0 0 0 rg BT 337.61 692.25 Td (A) Tj ET Q q 0 0 0 rg BT 343.73 692.25 Td ( unitholders pursuant to our distribution policy) Tj ET Q q 0 0 0 rg BT 544.21 692.25 Td (. In ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 680.25 Td (the future, we may also issue additional units or debt and other equity securities with the objective of increasing our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 668.25 Td (available capital. In addition, we may) Tj ET Q q 0 0 0 rg BT 214.91 668.25 Td (, from time to time, repurchase our Class ) Tj ET Q q 0 0 0 rg BT 397.75 668.25 Td (A) Tj ET Q q 0 0 0 rg BT 403.87 668.25 Td ( units in open market or privately ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 656.25 Td (negotiated purchases or otherwise, redeem our Class ) Tj ET Q q 0 0 0 rg BT 289.58 656.25 Td (A) Tj ET Q q 0 0 0 rg BT 295.69 656.25 Td ( units pursuant to the terms of our operating agreement, or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 644.25 Td (repurchase OCGH units. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 623.25 Td (In addition to our ongoing sources of cash that include management fees, incentive income and fund ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 611.25 Td (distributions related to our corporate investments in funds and companies, we also have access to liquidity through ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 599.25 Td (our debt financings and credit agreements. W) Tj ET Q q 0 0 0 rg BT 254.38 599.25 Td (e believe that the sources of liquidity described below will be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 587.25 Td (suf) Tj ET Q q 0 0 0 rg BT 63.16 587.25 Td (ficient to fund our working capital requirements for at least the next twelve months.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 87.00 566.25 Td (In July 2016, our indirect subsidiary) Tj ET Q q 0 0 0 rg BT 243.01 566.25 Td (, Oaktree Capital Management, L.P) Tj ET Q q 0 0 0 rg BT 398.46 566.25 Td (. \(the “Issuer”\), issued and sold to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 554.25 Td (certain accredited investors $100 million of 3.69% senior notes \(the “2016 Notes”\) due July 12, 2031. ) Tj ET Q q 0 0 0 rg BT 501.18 554.25 Td (The Notes ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 542.25 Td (are senior unsecured obligations of the Issuer) Tj ET Q q 0 0 0 rg BT 251.79 542.25 Td (, jointly and severally guaranteed by our indirect subsidiaries, Oaktree ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 530.25 Td (Capital I, L.P) Tj ET Q q 0 0 0 rg BT 105.96 530.25 Td (., Oaktree Capital II, L.P) Tj ET Q q 0 0 0 rg BT 211.39 530.25 Td (. and Oaktree ) Tj ET Q q 0 0 0 rg BT 274.20 530.25 Td (AIF Investments, L.P) Tj ET Q q 0 0 0 rg BT 365.73 530.25 Td (. \(together with the Issuer) Tj ET Q q 0 0 0 rg BT 478.01 530.25 Td (, the “Obligors”\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 518.25 Td (pursuant to a note and guaranty agreement \(the “2016 Note ) Tj ET Q q 0 0 0 rg BT 316.85 518.25 Td (Agreement”\). W) Tj ET Q q 0 0 0 rg BT 390.02 518.25 Td (e used the proceeds from the sale of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 506.25 Td (the 2016 Notes to simultaneously repay $100 million of our $250 million term loan due March 31, 2021. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 87.00 485.25 Td (The 2016 Note ) Tj ET Q q 0 0 0 rg BT 155.38 485.25 Td (Agreement provides for certain af) Tj ET Q q 0 0 0 rg BT 303.05 485.25 Td (firmative and negative covenants, including financial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 473.25 Td (covenants relating to the Obligors’) Tj ET Q q 0 0 0 rg BT 200.83 473.25 Td ( combined leverage ratio and minimum assets under management. In addition, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 461.25 Td (the 2016 Note ) Tj ET Q q 0 0 0 rg BT 115.05 461.25 Td (Agreement contains customary representations and warranties of the Obligors and customary events ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 449.25 Td (of default, in certain cases, subject to cure periods. ) Tj ET Q q 0 0 0 rg BT 280.50 449.25 Td (The Issuer may prepay all, or from time to time any part of, the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 437.25 Td (2016 Notes at any time, subject to the Issuer) Tj ET Q q 0 0 0 rg BT 248.26 437.25 Td (’) Tj ET Q q 0 0 0 rg BT 250.30 437.25 Td (s payment of the applicable make-whole amount determined with ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 425.25 Td (respect to such principal amount prepaid. Upon the occurrence of a change of control, the Issuer will be required to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 413.25 Td (make an of) Tj ET Q q 0 0 0 rg BT 99.29 413.25 Td (fer to prepay the Notes together with the applicable make-whole amount determined with respect to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 401.25 Td (such principal amount prepaid.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 380.25 Td (In March 2016, Oaktree Capital Management, L.P) Tj ET Q q 0 0 0 rg BT 305.38 380.25 Td (., Oaktree Capital II, L.P) Tj ET Q q 0 0 0 rg BT 410.81 380.25 Td (., Oaktree ) Tj ET Q q 0 0 0 rg BT 456.94 380.25 Td (AIF Investments, L.P) Tj ET Q q 0 0 0 rg BT 548.47 380.25 Td (., ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 368.25 Td (and Oaktree Capital I, L.P) Tj ET Q q 0 0 0 rg BT 163.77 368.25 Td (. \(collectively) Tj ET Q q 0 0 0 rg BT 220.27 368.25 Td (, the “Borrowers”\) entered into the Second ) Tj ET Q q 0 0 0 rg BT 409.26 368.25 Td (Amendment to Credit ) Tj ET Q q 0 0 0 rg BT 505.97 368.25 Td (Agreement ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 356.25 Td (\(the “Second ) Tj ET Q q 0 0 0 rg BT 109.48 356.25 Td (Amendment”\), which amended the credit agreement dated as of March 31, 2014 \(as amended ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 344.25 Td (through and including the Second ) Tj ET Q q 0 0 0 rg BT 201.23 344.25 Td (Amendment, the “Credit ) Tj ET Q q 0 0 0 rg BT 309.61 344.25 Td (Agreement”\). ) Tj ET Q q 0 0 0 rg BT 373.34 344.25 Td (The Credit ) Tj ET Q q 0 0 0 rg BT 422.26 344.25 Td (Agreement consists of a $250 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 332.25 Td (million fully-funded term loan \(the “T) Tj ET Q q 0 0 0 rg BT 208.40 332.25 Td (erm Loan”\), of which $100 million was repaid in July 2016, and a $500 million ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 320.25 Td (revolving credit facility \(the “Revolver”\). ) Tj ET Q q 0 0 0 rg BT 228.20 320.25 Td (The Second ) Tj ET Q q 0 0 0 rg BT 284.36 320.25 Td (Amendment extended the maturity date of the Credit ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 308.25 Td (Agreement from March 31, 2019 to March 31, 2021, at which time the entire remaining principal balance of $150 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 296.25 Td (million is due, and provides the Borrowers with the option to extend the new maturity date by one year if the lenders ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 284.25 Td (holding at least 50% of the aggregate amount of the term loan and the revolving loan commitment thereunder on ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 272.25 Td (the date of the Borrowers’) Tj ET Q q 0 0 0 rg BT 164.14 272.25 Td ( extension request consent to such extension. Borrowings under the Credit ) Tj ET Q q 0 0 0 rg BT 499.33 272.25 Td (Agreement ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 260.25 Td (generally bear interest at a spread to either LIBOR or an alternative base rate. Based on the current credit ratings ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 248.25 Td (of Oaktree Capital Management, L.P) Tj ET Q q 0 0 0 rg BT 211.02 248.25 Td (., the interest rate on borrowings is LIBOR plus 1.00% per annum and the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 236.25 Td (commitment fee on the unused portions of the Revolver is 0.125% per annum. Utilizing an interest-rate swap, the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 224.25 Td (T) Tj ET Q q 0 0 0 rg BT 55.00 224.25 Td (erm Loan’) Tj ET Q q 0 0 0 rg BT 99.29 224.25 Td (s annual interest rate is fixed at 2.22% through January 2017, based on such current credit ratings. ) Tj ET Q q 0 0 0 rg BT 541.59 224.25 Td (The ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 212.25 Td (Credit ) Tj ET Q q 0 0 0 rg BT 78.90 212.25 Td (Agreement contains customary financial covenants and restrictions, including ones regarding a maximum ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 200.25 Td (leverage ratio of 3.0-to-1.0 and a minimum required level of assets under management \(as defined in the credit ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 188.25 Td (agreement\). ) Tj ET Q q 0 0 0 rg BT 109.29 188.25 Td (The Second ) Tj ET Q q 0 0 0 rg BT 165.44 188.25 Td (Amendment increased the minimum level of assets under management to $60 billion and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 176.25 Td (made certain other amendments to the provisions of the Credit ) Tj ET Q q 0 0 0 rg BT 329.04 176.25 Td (Agreement. ) Tj ET Q q 0 0 0 rg BT 385.74 176.25 Td (As of December 31, 2016, we had no ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 164.25 Td (outstanding borrowings under our $500 million revolving credit facility and were able to draw the full amount ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 152.25 Td (available without violating any financial maintenance covenants.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 131.25 Td (In September 2014, our subsidiary Oaktree Capital Management, L.P) Tj ET Q q 0 0 0 rg BT 391.55 131.25 Td (. issued and sold to certain accredited ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 119.25 Td (investors $50 million aggregate principal amount of our 3.91% Senior Notes, Series ) Tj ET Q q 0 0 0 rg BT 420.76 119.25 Td (A, due September 3, 2024 \(the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 107.25 Td (“Series ) Tj ET Q q 0 0 0 rg BT 83.90 107.25 Td (A) Tj ET Q q 0 0 0 rg BT 90.02 107.25 Td ( Notes”\), $100 million aggregate principal amount of our 4.01% Senior Notes, Series B, due September 3, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 95.25 Td (2026 \(the “Series B Notes”\) and $100 million aggregate principal amount of our 4.21% Senior Notes, Series C, due ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 83.25 Td (September 3, 2029 \(the “Series C Notes” and together with the Series ) Tj ET Q q 0 0 0 rg BT 361.28 83.25 Td (A) Tj ET Q q 0 0 0 rg BT 367.40 83.25 Td ( Notes and the Series B Notes, the “2014 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 71.25 Td (Notes”\) pursuant to a note and guarantee agreement \(the “2014 Note ) Tj ET Q q 0 0 0 rg BT 358.54 71.25 Td (Agreement”\). ) Tj ET Q q 0 0 0 rg BT 422.27 71.25 Td (The 2014 Notes are senior ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 59.25 Td (unsecured obligations of the Issuer) Tj ET Q q 0 0 0 rg BT 204.55 59.25 Td (, guaranteed on a joint and several basis by our indirect subsidiaries, Oaktree ) Tj ET Q endstream endobj 225 0 obj <> endobj 226 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 298.00 31.25 Td (1) Tj ET Q q 0 0 0 rg BT 302.82 31.25 Td (12) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Capital I, L.P) Tj ET Q q 0 0 0 rg BT 105.96 741.75 Td (., Oaktree Capital II, L.P) Tj ET Q q 0 0 0 rg BT 211.39 741.75 Td (. and Oaktree ) Tj ET Q q 0 0 0 rg BT 274.20 741.75 Td (AIF Investments, L.P) Tj ET Q q 0 0 0 rg BT 365.73 741.75 Td (. Interest on the 2014 Notes is payable ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (semi-annually) Tj ET Q q 0 0 0 rg BT 110.95 729.75 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 708.75 Td (The 2014 Note ) Tj ET Q q 0 0 0 rg BT 154.38 708.75 Td (Agreement provides for certain af) Tj ET Q q 0 0 0 rg BT 302.05 708.75 Td (firmative and negative covenants, including financial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 696.75 Td (covenants relating to the Obligors’) Tj ET Q q 0 0 0 rg BT 200.83 696.75 Td ( combined leverage ratio and minimum assets under management. In addition, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 684.75 Td (the 2014 Note ) Tj ET Q q 0 0 0 rg BT 115.05 684.75 Td (Agreement contains customary representations and warranties of the Obligors and customary events ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 672.75 Td (of default, in certain cases, subject to cure periods. ) Tj ET Q q 0 0 0 rg BT 280.50 672.75 Td (The Issuer may prepay all, or from time to time any part of, the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 660.75 Td (2014 Notes at any time, subject to the Issuer) Tj ET Q q 0 0 0 rg BT 248.26 660.75 Td (’) Tj ET Q q 0 0 0 rg BT 250.30 660.75 Td (s payment of the applicable make-whole amount determined with ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 648.75 Td (respect to such principal amount prepaid. Upon the occurrence of a change of control, the Issuer will be required to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 636.75 Td (make an of) Tj ET Q q 0 0 0 rg BT 99.29 636.75 Td (fer to prepay the 2014 Notes together with the applicable make-whole amount determined with respect ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 624.75 Td (to such principal amount prepaid.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 603.75 Td (In November 2009, our subsidiary Oaktree Capital Management, L.P) Tj ET Q q 0 0 0 rg BT 388.76 603.75 Td (. issued $250 million in aggregate ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 591.75 Td (principal amount of senior notes due December) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.12 591.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 262.62 591.75 Td (2, 2019 \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.77 591.75 Td (“) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 323.21 591.75 Td (2009 Notes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.36 591.75 Td (”) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 378.79 591.75 Td (\). ) Tj ET Q q 0 0 0 rg BT 390.28 591.75 Td (The indenture governing the 2009 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 579.75 Td (Notes contains customary financial covenants and restrictions that, among other things, limit the issuer) Tj ET Q q 0 0 0 rg BT 503.93 579.75 Td (’) Tj ET Q q 0 0 0 rg BT 505.97 579.75 Td (s ability) Tj ET Q q 0 0 0 rg BT 538.57 579.75 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 567.75 Td (subject to certain exceptions, to incur indebtedness secured by liens on voting stock or profit-participating equity ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 555.75 Td (interests of their subsidiaries or merge, consolidate or sell, transfer or lease assets. ) Tj ET Q q 0 0 0 rg BT 422.76 555.75 Td (The 2009 Notes do not contain ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 543.75 Td (financial maintenance covenants.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 522.75 Td (W) Tj ET Q q 0 0 0 rg BT 95.26 522.75 Td (e are required to maintain minimum net capital balances for regulatory purposes in the U.S. and certain ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 510.75 Td (non-U.S. jurisdictions in which we do business, which are met in part by retaining cash and cash-equivalents in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 498.75 Td (those jurisdictions. ) Tj ET Q q 0 0 0 rg BT 137.27 498.75 Td (As a result, we may be restricted in our ability to transfer cash between dif) Tj ET Q q 0 0 0 rg BT 463.90 498.75 Td (ferent jurisdictions. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 486.75 Td (As of December) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.69 486.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 124.19 486.75 Td (31, 2016, we were required to maintain approximately ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 364.88 486.75 Td ($92.8 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 421.03 486.75 Td ( in net capital at these ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 474.75 Td (subsidiaries and were in compliance with all regulatory minimum net capital requirements as of such date. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 453.75 Td (Oaktree Holdings, Inc. and Oaktree ) Tj ET Q q 0 0 0 rg BT 244.97 453.75 Td (AIF Holdings, Inc. have entered into a tax receivable agreement with ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 441.75 Td (OCGH unitholders that, as amended, provides for the payment to an exchanging or selling OCGH unitholder of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 429.75 Td (85% of the amount of cash savings, if any) Tj ET Q q 0 0 0 rg BT 234.37 429.75 Td (, in U.S. federal, state, local and foreign income taxes that they actually ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 417.75 Td (realize \(or are deemed to realize in the case of an early termination payment by Oaktree Holdings, Inc. or Oaktree ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 405.75 Td (AIF Holdings, Inc., or a change of control\) as a result of an increase in the tax basis of the assets owned by the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 393.75 Td (Oaktree Operating Group. ) Tj ET Q q 0 0 0 rg BT 170.62 393.75 Td (Assuming no material changes in the relevant tax law and that the Company earns ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 381.75 Td (suf) Tj ET Q q 0 0 0 rg BT 63.16 381.75 Td (ficient taxable income to realize the full tax benefit of the increased amortization of the assets, as of December ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 369.75 Td (31, 2016, future payments of this nature were estimated to aggregate $33.4 million over the period ending ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 357.75 Td (approximately in 2029 with respect to the 2007 Private Of) Tj ET Q q 0 0 0 rg BT 303.85 357.75 Td (fering and $71.3 million over the period ending ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 345.75 Td (approximately in 2034 with respect to our initial public of) Tj ET Q q 0 0 0 rg BT 297.73 345.75 Td (fering. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 324.75 Td (In May 2013, we issued and sold 8,050,000 Class ) Tj ET Q q 0 0 0 rg BT 308.92 324.75 Td (A) Tj ET Q q 0 0 0 rg BT 315.04 324.75 Td ( units in a public of) Tj ET Q q 0 0 0 rg BT 397.68 324.75 Td (fering \(the “May 2013 Of) Tj ET Q q 0 0 0 rg BT 505.89 324.75 Td (fering”\), ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 312.75 Td (resulting in $419.9 million in net proceeds to us. W) Tj ET Q q 0 0 0 rg BT 276.05 312.75 Td (e did not retain any proceeds from the sale of Class ) Tj ET Q q 0 0 0 rg BT 506.73 312.75 Td (A) Tj ET Q q 0 0 0 rg BT 512.85 312.75 Td ( units in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 300.75 Td (the May 2013 Of) Tj ET Q q 0 0 0 rg BT 123.75 300.75 Td (fering, and we used the net proceeds from the May 2013 Of) Tj ET Q q 0 0 0 rg BT 387.61 300.75 Td (fering to acquire interests in our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 288.75 Td (business from certain Oaktree directors, employees and other investors, including certain senior executives and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 276.75 Td (other members of our senior management. ) Tj ET Q q 0 0 0 rg BT 244.91 276.75 Td (The exchange of OCGH units in connection with the May 2013 Of) Tj ET Q q 0 0 0 rg BT 534.89 276.75 Td (fering ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 264.75 Td (resulted in increases in the tax basis of the tangible and intangible assets of the Oaktree Operating Group. ) Tj ET Q q 0 0 0 rg BT 524.73 264.75 Td (As a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 252.75 Td (result, we recorded a deferred tax asset of $134.4 million and an associated liability of $1) Tj ET Q q 0 0 0 rg BT 442.82 252.75 Td (14.2 million for payments ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 240.75 Td (to OCGH unitholders under the tax receivable agreement, which together increased capital by $20.2 million. ) Tj ET Q q 0 0 0 rg BT 531.38 240.75 Td (As of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 228.75 Td (December 31, 2016, future payments with respect to the May 2013 Of) Tj ET Q q 0 0 0 rg BT 358.87 228.75 Td (fering were estimated to aggregate $99.0 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 216.75 Td (million over the period ending approximately in 2035.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 87.00 195.75 Td (In March 2014, we issued and sold 5,000,000 Class ) Tj ET Q q 0 0 0 rg BT 318.81 195.75 Td (A) Tj ET Q q 0 0 0 rg BT 324.93 195.75 Td ( units in a public of) Tj ET Q q 0 0 0 rg BT 407.58 195.75 Td (fering \(the “March 2014 Of) Tj ET Q q 0 0 0 rg BT 524.67 195.75 Td (fering”\), ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 183.75 Td (resulting in $296.7 million in proceeds to us. W) Tj ET Q q 0 0 0 rg BT 259.37 183.75 Td (e did not retain any proceeds from the sale of Class ) Tj ET Q q 0 0 0 rg BT 490.05 183.75 Td (A) Tj ET Q q 0 0 0 rg BT 496.17 183.75 Td ( units in the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 171.75 Td (March 2014 Of) Tj ET Q q 0 0 0 rg BT 115.96 171.75 Td (fering. ) Tj ET Q q 0 0 0 rg BT 149.13 171.75 Td (The proceeds from the March 2014 Of) Tj ET Q q 0 0 0 rg BT 318.48 171.75 Td (fering were used to acquire interests in our business ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 159.75 Td (from certain Oaktree directors, employees and other investors, including certain senior executives and other ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 147.75 Td (members of our senior management. ) Tj ET Q q 0 0 0 rg BT 219.34 147.75 Td (The exchange of OCGH units in connection with the March 2014 Of) Tj ET Q q 0 0 0 rg BT 518.21 147.75 Td (fering ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 135.75 Td (resulted in increases in the tax basis of the tangible and intangible assets of the Oaktree Operating Group. ) Tj ET Q q 0 0 0 rg BT 524.73 135.75 Td (As a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 123.75 Td (result, we recorded a deferred tax asset of $94.2 million and an associated liability of $80.0 million for payments to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 111.75 Td (OCGH unitholders under the tax receivable agreement, which together increased capital by $14.1 million. ) Tj ET Q q 0 0 0 rg BT 520.26 111.75 Td (As of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 99.75 Td (December 31, 2016, future payments with respect to the March 2014 Of) Tj ET Q q 0 0 0 rg BT 367.76 99.75 Td (fering were estimated to aggregate $74.5 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 87.75 Td (million over the period ending approximately in 2036.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 87.00 66.75 Td (In March 2015, we issued and sold 4,600,000 Class ) Tj ET Q q 0 0 0 rg BT 318.81 66.75 Td (A) Tj ET Q q 0 0 0 rg BT 324.93 66.75 Td ( units in a public of) Tj ET Q q 0 0 0 rg BT 407.58 66.75 Td (fering \(the “March 2015 Of) Tj ET Q q 0 0 0 rg BT 524.67 66.75 Td (fering”\), ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 54.75 Td (resulting in $237.8 million in proceeds to us. W) Tj ET Q q 0 0 0 rg BT 259.37 54.75 Td (e did not retain any proceeds from the sale of Class ) Tj ET Q q 0 0 0 rg BT 490.05 54.75 Td (A) Tj ET Q q 0 0 0 rg BT 496.17 54.75 Td ( units in the ) Tj ET Q endstream endobj 227 0 obj <> endobj 228 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 298.00 31.25 Td (1) Tj ET Q q 0 0 0 rg BT 302.82 31.25 Td (13) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (March 2015 Of) Tj ET Q q 0 0 0 rg BT 115.96 741.75 Td (fering. ) Tj ET Q q 0 0 0 rg BT 149.13 741.75 Td (The proceeds from the March 2015 Of) Tj ET Q q 0 0 0 rg BT 318.48 741.75 Td (fering were used to acquire interests in our business ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (from certain Oaktree directors, employees and other investors, including certain senior executives and other ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (members of the Company’) Tj ET Q q 0 0 0 rg BT 167.09 717.75 Td (s senior management. ) Tj ET Q q 0 0 0 rg BT 271.41 717.75 Td (The exchange of OCGH units in connection with the March 2015 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 705.75 Td (Of) Tj ET Q q 0 0 0 rg BT 60.38 705.75 Td (fering resulted in increases in the tax basis of the tangible and intangible assets of the Oaktree Operating Group. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 693.75 Td (As a result, we recorded a deferred tax asset of $73.5 million and an associated liability of $62.5 million for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 681.75 Td (payments to OCGH unitholders under the tax receivable agreement, which together increased capital by $1) Tj ET Q q 0 0 0 rg BT 523.96 681.75 Td (1.0 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 669.75 Td (million. ) Tj ET Q q 0 0 0 rg BT 86.12 669.75 Td (As of December 31, 2016, future payments with respect to the March 2015 Of) Tj ET Q q 0 0 0 rg BT 429.45 669.75 Td (fering were estimated to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 657.75 Td (aggregate $62.7 million over the period ending approximately in 2037.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 636.75 Td (For the years ended December 31, 2016, 2015 and 2014, respectively) Tj ET Q q 0 0 0 rg BT 396.01 636.75 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 401.57 636.75 Td ($18.8 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 457.71 636.75 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 463.27 636.75 Td ($15.7 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 519.41 636.75 Td ( and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 624.75 Td ($10.1 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 106.14 624.75 Td ( were paid under the tax receivable agreement.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 603.75 Td (Contractual Obligations, Commitments and Contingencies) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 587.25 Td (In the ordinary course of business, Oaktree and our consolidated funds enter into contractual arrangements ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 575.25 Td (that may require future cash payments. ) Tj ET Q q 0 0 0 rg BT 228.79 575.25 Td (The following table sets forth information related to anticipated future cash ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 563.25 Td (payments as of December 31, 2016: ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 229.5 536.75 m 288.5 536.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 296.5 536.75 m 354.5 536.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 536.75 m 421.5 536.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 536.75 m 488.5 536.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 536.75 m 561.5 536.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 229.5 416.75 m 288.5 416.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 296.5 416.75 m 354.5 416.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 416.75 m 421.5 416.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 416.75 m 488.5 416.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 416.75 m 561.5 416.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 229.5 318.75 m 288.5 318.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 229.5 318.75 m 288.5 318.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 229.5 305.75 m 288.5 305.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 229.5 303.75 m 288.5 303.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 296.5 318.75 m 354.5 318.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 296.5 305.75 m 354.5 305.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 296.5 303.75 m 354.5 303.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 318.75 m 421.5 318.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 305.75 m 421.5 305.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 303.75 m 421.5 303.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 318.75 m 488.5 318.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 305.75 m 488.5 305.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 303.75 m 488.5 303.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 318.75 m 561.5 318.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 305.75 m 561.5 305.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 303.75 m 561.5 303.75 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 250.70 540.75 Td (2017) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 308.25 540.75 Td (2018-2019) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 374.75 540.75 Td (2020-2021) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 441.35 540.75 Td (Thereafter) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 520.35 540.75 Td (Total) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 370.85 529.15 Td (\(in thousands\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.00 516.15 Td (Oaktree and Operating Subsidiaries:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 232.00 516.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 299.00 516.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 365.00 516.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 432.00 516.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 499.00 516.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 502.15 Td (Operating lease obligations ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 163.57 506.44 Td (\(1\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 170.72 502.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 173.45 501.70 Td (.....................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 232.00 502.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 257.45 502.15 Td (10,056) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 299.00 502.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 323.45 502.15 Td (28,831) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 365.00 502.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 390.45 502.15 Td (26,633) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 432.00 502.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 457.45 502.15 Td (55,480) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 499.00 502.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 502.15 Td (121,000) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 488.15 Td (Debt obligations payable ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 153.07 492.44 Td (\(2\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 160.22 488.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 163.45 487.70 Td (.........................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 276.00 488.15 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 318.45 488.15 Td (250,000) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 385.45 488.15 Td (150,000) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 452.45 488.15 Td (350,000) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 488.15 Td (750,000) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 474.15 Td (Interest obligations on debt ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 162.58 478.44 Td (\(3\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 169.72 474.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 170.95 473.70 Td (......................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 257.45 474.15 Td (33,798) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 323.45 474.15 Td (65,115) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 390.45 474.15 Td (27,730) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 457.45 474.15 Td (97,194) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 474.15 Td (223,837) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 460.15 Td (Tax receivable agreement) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 158.45 459.70 Td (...........................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 257.45 460.15 Td (20,677) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 323.45 460.15 Td (43,757) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 390.45 460.15 Td (47,879) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 452.45 460.15 Td (228,653) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 460.15 Td (340,966) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 445.15 Td (Contingent consideration ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 154.07 449.44 Td (\(4\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 163.45 444.70 Td (.........................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 257.45 445.15 Td (23,567) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 342.00 445.15 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 409.00 445.15 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 476.00 445.15 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 445.15 Td (23,567) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 430.15 Td (Commitments to Oaktree and third-party ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 61.00 421.15 Td (funds ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 85.52 425.44 Td (\(5\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 92.67 421.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 95.95 420.70 Td (....................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 252.45 421.15 Td (565,429) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 342.00 421.15 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 409.00 421.15 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 476.00 421.15 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 421.15 Td (565,429) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 407.15 Td (Subtotal) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 105.95 406.70 Td (................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 252.45 407.15 Td (653,527) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 318.45 407.15 Td (387,703) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 385.45 407.15 Td (252,242) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 452.45 407.15 Td (731,327) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.95 407.15 Td (2,024,799) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.00 393.15 Td (Consolidated Funds:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 285.00 393.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 351.00 393.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 418.00 393.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 485.00 393.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 393.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 379.15 Td (Debt obligations payable ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 153.07 383.44 Td (\(2\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 160.22 379.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 163.45 378.70 Td (.........................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 276.00 379.15 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 342.00 379.15 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 409.00 379.15 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 452.45 379.15 Td (488,997) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 379.15 Td (488,997) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 365.15 Td (Interest obligations on debt ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 162.58 369.44 Td (\(3\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 169.72 365.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 170.95 364.70 Td (......................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 257.45 365.15 Td (12,861) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 323.45 365.15 Td (25,721) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 390.45 365.15 Td (25,721) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 457.45 365.15 Td (76,593) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 365.15 Td (140,896) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 351.15 Td (Debt obligations of CLOs ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 154.56 355.44 Td (\(2\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 161.70 351.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 163.45 350.70 Td (.........................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 276.00 351.15 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 323.45 351.15 Td (49,336) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 409.00 351.15 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 444.95 351.15 Td (3,002,952) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.95 351.15 Td (3,052,288) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 337.15 Td (Interest on debt obligations of CLOs ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 198.09 341.44 Td (\(3\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 205.24 337.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 205.95 336.70 Td (........) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 257.45 337.15 Td (73,517) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 318.45 337.15 Td (145,363) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 385.45 337.15 Td (143,772) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 452.45 337.15 Td (408,944) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 337.15 Td (771,596) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 323.15 Td (Commitments to fund investments ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 190.55 327.44 Td (\(6\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 197.70 323.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 198.45 322.70 Td (...........) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 262.45 323.15 Td (2,133) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 342.00 323.15 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 409.00 323.15 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 476.00 323.15 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 323.15 Td (2,133) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 309.15 Td (Total) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 93.45 308.70 Td (.....................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 232.00 309.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 252.45 309.15 Td (742,038) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 299.00 309.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 318.45 309.15 Td (608,123) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 365.00 309.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 385.45 309.15 Td (421,735) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 432.00 309.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 444.95 309.15 Td (4,708,813) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 499.00 309.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.95 309.15 Td (6,480,709) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 290.75 m 150.5 290.75 l s BT /F1 10.00 Tf ET BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 277.45 Td (\(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.00 277.45 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 277.45 Td (W) Tj ET Q q 0 0 0 rg BT 80.83 277.45 Td (e lease our of) Tj ET Q q 0 0 0 rg BT 135.21 277.45 Td (fice space under agreements that expire periodically through 2030. ) Tj ET Q q 0 0 0 rg BT 406.21 277.45 Td (The table includes only guaranteed ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 266.65 Td (minimum lease payments for these leases and does not project other lease-related payments. ) Tj ET Q q 0 0 0 rg BT 451.04 266.65 Td (These leases are classified ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 255.85 Td (as operating leases for financial statement purposes and as such are not recorded as liabilities in our consolidated ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 245.05 Td (financial statements. ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 234.25 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 72.50 234.25 Td (These obligations represent future principal payments, gross of debt issuance costs, and for CLOs, the par value.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 223.45 Td (\(3\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.00 223.45 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 223.45 Td (Interest obligations include accrued interest on outstanding indebtedness. Where applicable, current interest rates are ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 212.65 Td (applied to estimate future interest obligations on variable-rate debt. ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 49.00 201.85 Td (\(4\) ) Tj ET Q q 0 0 0 rg BT 74.00 201.85 Td (This represents the undiscounted contingent consideration obligation as of December 31, 2016 related to the 2014 ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 74.00 191.05 Td (Highstar acquisition, which is payable in a combination of cash and fully-vested OCGH units. ) Tj ET Q q 0 0 0 rg BT 447.02 191.05 Td (The amount of the ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 74.00 180.25 Td (contingent consideration obligation is based on the achievement of certain performance targets over a period of up to ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 74.00 169.45 Td (seven years from the acquisition date. Due to uncertainty in the timing of payment, if any) Tj ET Q q 0 0 0 rg BT 427.52 169.45 Td (, the entire amount is presented ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 74.00 158.65 Td (in the 2017 column.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 49.00 147.85 Td (\(5\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 60.00 147.85 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 74.00 147.85 Td (These obligations represent commitments by us to provide general partner capital funding to our funds and limited partner ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 74.00 137.05 Td (capital funding to funds managed by unaf) Tj ET Q q 0 0 0 rg BT 238.46 137.05 Td (filiated third parties. ) Tj ET Q q 0 0 0 rg BT 321.33 137.05 Td (These amounts are generally due on demand and are ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 74.00 126.25 Td (therefore presented in the 2017 column. Capital commitments are expected to be called over a period of several years. ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 49.00 115.45 Td (\(6\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 60.00 115.45 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 74.00 115.45 Td (These obligations represent commitments by our funds to make investments or fund uncalled contingent commitments. ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 74.00 104.65 Td (These amounts are generally due either on demand or by various contractual dates that vary by investment and are ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 74.00 93.85 Td (therefore presented in the 2017 column. Capital commitments are expected to be called over a period of several years. ) Tj ET Q endstream endobj 229 0 obj <> endobj 230 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 298.00 31.25 Td (1) Tj ET Q q 0 0 0 rg BT 302.82 31.25 Td (14) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 741.75 Td (In some of our service contracts or management agreements, we have agreed to indemnify third-party ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (service providers or separate account clients under certain circumstances. ) Tj ET Q q 0 0 0 rg BT 383.86 729.75 Td (The terms of the indemnities vary from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (contract to contract and the amount of indemnification liability) Tj ET Q q 0 0 0 rg BT 319.96 717.75 Td (, if any) Tj ET Q q 0 0 0 rg BT 348.68 717.75 Td (, cannot be determined and has neither been ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 705.75 Td (included in the above table nor recorded in our consolidated financial statements as of December 31, 2016. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 684.75 Td (As of December 31, 2016, none of the incentive income we had recognized was subject to clawback by the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 672.75 Td (funds. ) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 80.02 672.75 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 651.75 Td (Off-Balance Sheet ) Tj ET Q q 0 0 0 rg BT 138.54 651.75 Td (Arrangements ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 635.25 Td (W) Tj ET Q q 0 0 0 rg BT 95.26 635.25 Td (e do not have any of) Tj ET Q q 0 0 0 rg BT 185.70 635.25 Td (f-balance sheet arrangements. Please see note 16 for information on our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 623.25 Td (commitments and contingencies.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 602.25 Td (Critical ) Tj ET Q q 0 0 0 rg BT 86.31 602.25 Td (Accounting Policies ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 585.75 Td (W) Tj ET Q q 0 0 0 rg BT 95.26 585.75 Td (e prepare our consolidated financial statements in accordance with GAAP) Tj ET Q q 0 0 0 rg BT 420.26 585.75 Td (. In applying many of these ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 573.75 Td (accounting principles, we need to make assumptions, estimates or judgments that af) Tj ET Q q 0 0 0 rg BT 423.35 573.75 Td (fect the reported amounts of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 561.75 Td (assets, liabilities, revenues and expenses in our consolidated financial statements. W) Tj ET Q q 0 0 0 rg BT 429.47 561.75 Td (e base our estimates and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 549.75 Td (judgments on historical experience and other assumptions that we believe are reasonable under the circumstances. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 537.75 Td (These assumptions, estimates or judgments, however) Tj ET Q q 0 0 0 rg BT 288.45 537.75 Td (, are both subjective and subject to change, and actual ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 525.75 Td (results may dif) Tj ET Q q 0 0 0 rg BT 114.28 525.75 Td (fer from our assumptions and estimates. If actual amounts are ultimately dif) Tj ET Q q 0 0 0 rg BT 449.80 525.75 Td (ferent from our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 513.75 Td (estimates, the revisions are included in our results of operations for the period in which the actual amounts become ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 501.75 Td (known. W) Tj ET Q q 0 0 0 rg BT 96.50 501.75 Td (e believe our critical accounting policies could potentially produce materially dif) Tj ET Q q 0 0 0 rg BT 444.28 501.75 Td (ferent results if we were to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 489.75 Td (change underlying assumptions, estimates or judgments. For a summary of our significant accounting policies, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 477.75 Td (please see the notes to our consolidated financial statements included elsewhere in this annual report. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 456.75 Td (Principles of Consolidation ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 440.25 Td (In February 2015, the F) Tj ET Q q 0 0 0 rg BT 189.95 440.25 Td (ASB amended its consolidation guidance, which changed the way a reporting entity ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 428.25 Td (should evaluate limited partnerships and similar entities for consolidation, how a decision maker) Tj ET Q q 0 0 0 rg BT 473.37 428.25 Td (’) Tj ET Q q 0 0 0 rg BT 475.41 428.25 Td (s fees af) Tj ET Q q 0 0 0 rg BT 513.03 428.25 Td (fect the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 416.25 Td (consolidation analysis, and how interests held by related parties af) Tj ET Q q 0 0 0 rg BT 343.33 416.25 Td (fect the consolidation analysis. W) Tj ET Q q 0 0 0 rg BT 493.77 416.25 Td (e adopted this ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 404.25 Td (guidance as of January 1, 2016 under the modified retrospective approach, which did not require prior periods to be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 392.25 Td (recast. In connection with the adoption, we reevaluated all of our investment vehicles and other legal entities for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 380.25 Td (consolidation and, as of January 1, 2016, deconsolidated substantially all of our previously consolidated investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 368.25 Td (funds because those funds, which had previously been evaluated as voting interest entities, became variable ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 356.25 Td (interest entities \(“VIEs”\) under the new consolidation guidance. W) Tj ET Q q 0 0 0 rg BT 342.74 356.25 Td (e are not the primary beneficiary of these VIEs ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 344.25 Td (because our fee arrangements are not deemed to be variable interests, and we do not hold any other interests in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 332.25 Td (those funds that are considered to be more than insignificant. ) Tj ET Q q 0 0 0 rg BT 326.10 332.25 Td (The adoption resulted in a reduction to total ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 320.25 Td (consolidated assets, liabilities, non-controlling redeemable interests in consolidated funds and unitholders' capital ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 308.25 Td (as of January 1, 2016 of $45.7 billion, $7.6 billion, $38.0 billion and $90.6 million, respectively) Tj ET Q q 0 0 0 rg BT 461.74 308.25 Td (. ) Tj ET Q q 0 0 0 rg BT 469.90 308.25 Td (There was no ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 296.25 Td (impact on retained earnings or net income attributable to the Company) Tj ET Q q 0 0 0 rg BT 361.66 296.25 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 275.25 Td (W) Tj ET Q q 0 0 0 rg BT 95.26 275.25 Td (e consolidate entities in which we have a direct or indirect controlling financial interest based on either a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 263.25 Td (variable interest model or voting interest model. ) Tj ET Q q 0 0 0 rg BT 265.11 263.25 Td (A) Tj ET Q q 0 0 0 rg BT 271.23 263.25 Td ( limited partnership or similar entity is a VIE if the unaf) Tj ET Q q 0 0 0 rg BT 509.48 263.25 Td (filiated ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 251.25 Td (limited partners do not have substantive kick-out or participating rights. Most of the Oaktree funds are VIEs ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 239.25 Td (because they have not granted unaf) Tj ET Q q 0 0 0 rg BT 209.38 239.25 Td (filiated limited partners substantive kick-out or participating rights. W) Tj ET Q q 0 0 0 rg BT 513.22 239.25 Td (e ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 227.25 Td (consolidate all VIEs in which we are the primary beneficiary) Tj ET Q q 0 0 0 rg BT 312.16 227.25 Td (. ) Tj ET Q q 0 0 0 rg BT 319.94 227.25 Td (An entity is deemed to be the primary beneficiary if it ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 215.25 Td (holds a controlling financial interest. ) Tj ET Q q 0 0 0 rg BT 213.43 215.25 Td (A) Tj ET Q q 0 0 0 rg BT 219.55 215.25 Td ( controlling financial interest is defined as \(a\) the power to direct the activities ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 203.25 Td (of a VIE that most significantly impact the entity’) Tj ET Q q 0 0 0 rg BT 261.58 203.25 Td (s economic performance and \(b\) the obligation to absorb losses of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 191.25 Td (the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. ) Tj ET Q q 0 0 0 rg BT 501.18 191.25 Td (The ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 179.25 Td (consolidation guidance requires an analysis to determine \(a\) whether an entity in which we hold a variable interest ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 167.25 Td (is a VIE and \(b\) whether our involvement, through holding interests directly or indirectly in the entity or contractually ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 155.25 Td (through other variable interests \(e.g., management and performance-based fees\), would give us a controlling ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 143.25 Td (financial interest. ) Tj ET Q q 0 0 0 rg BT 130.04 143.25 Td (A) Tj ET Q q 0 0 0 rg BT 136.16 143.25 Td ( decision maker) Tj ET Q q 0 0 0 rg BT 206.56 143.25 Td (’) Tj ET Q q 0 0 0 rg BT 208.60 143.25 Td (s fee arrangement is not considered a variable interest if it is compensation for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 131.25 Td (services provided, commensurate with the level of ef) Tj ET Q q 0 0 0 rg BT 282.15 131.25 Td (fort required to provide those services and part of a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 119.25 Td (compensation arrangement that includes only terms, conditions or amounts that are customarily present in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 107.25 Td (arrangements for similar services negotiated at arm’) Tj ET Q q 0 0 0 rg BT 279.91 107.25 Td (s length \(“at-market”\), and the decision maker does not hold ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 95.25 Td (any other variable interests that absorb more than an insignificant amount of the potential VIE’) Tj ET Q q 0 0 0 rg BT 465.06 95.25 Td (s expected residual ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 83.25 Td (returns.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 62.25 Td (W) Tj ET Q q 0 0 0 rg BT 95.26 62.25 Td (e determine whether we are the primary beneficiary of a VIE at the time we become involved with a VIE ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 50.25 Td (and reconsider that conclusion at each reporting date. In evaluating whether we are the primary beneficiary) Tj ET Q q 0 0 0 rg BT 525.09 50.25 Td (, we ) Tj ET Q endstream endobj 231 0 obj <> endobj 232 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 298.00 31.25 Td (1) Tj ET Q q 0 0 0 rg BT 302.82 31.25 Td (15) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (evaluate our economic interests in the entity held either directly by us or indirectly through related parties. ) Tj ET Q q 0 0 0 rg BT 520.62 741.75 Td (The ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (consolidation analysis can generally be performed qualitatively; however) Tj ET Q q 0 0 0 rg BT 369.63 729.75 Td (, if it is not readily apparent that we are not ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (the primary beneficiary) Tj ET Q q 0 0 0 rg BT 150.41 717.75 Td (, a quantitative analysis may also be performed. Investments and redemptions \(either by us, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 705.75 Td (our af) Tj ET Q q 0 0 0 rg BT 75.39 705.75 Td (filiates or third parties\) or amendments to the governing documents of the respective Oaktree funds could ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 693.75 Td (af) Tj ET Q q 0 0 0 rg BT 58.16 693.75 Td (fect an entity’) Tj ET Q q 0 0 0 rg BT 116.90 693.75 Td (s status as a VIE or the determination of the primary beneficiary) Tj ET Q q 0 0 0 rg BT 397.96 693.75 Td (. For entities that are not VIEs, we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 681.75 Td (evaluate those entities that we control through a majority voting interest model. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 660.75 Td (When funds or CLOs are consolidated, we reflect the assets, liabilities, revenues, expenses and cash flows ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 648.75 Td (of the funds or CLOs on a gross basis, and the majority of the economic interests in those funds or CLOs, which are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 636.75 Td (held by third-party investors, are reflected as non-controlling interests in consolidated funds or debt obligations of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 624.75 Td (CLOs in the consolidated financial statements. ) Tj ET Q q 0 0 0 rg BT 260.67 624.75 Td (All of the revenues earned by us as investment manager of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 612.75 Td (consolidated funds are eliminated in consolidation. However) Tj ET Q q 0 0 0 rg BT 317.94 612.75 Td (, because the eliminated amounts are earned from and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 600.75 Td (funded by third-party investors, the consolidation of a fund does not impact net income or loss attributable to us.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 579.75 Td (Certain entities in which we have the ability to exert significant influence, including unconsolidated Oaktree ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 567.75 Td (funds for which we act as general partner) Tj ET Q q 0 0 0 rg BT 232.32 567.75 Td (, are accounted for under the equity method of accounting.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 546.75 Td (Revenue Recognition ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 530.25 Td (Management Fees ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 513.75 Td (Management fees are recognized over the period in which the investment advisory services are performed. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 501.75 Td (The contractual terms of management fees generally vary by fund structure. For most closed-end funds, the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 489.75 Td (management fee rate is applied against committed capital during the fund’) Tj ET Q q 0 0 0 rg BT 377.24 489.75 Td (s investment period and the lesser of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 477.75 Td (total funded capital or cost basis of assets in the liquidation period. However) Tj ET Q q 0 0 0 rg BT 388.53 477.75 Td (, for certain closed-end funds, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 465.75 Td (management fees during the investment period are calculated based on drawn capital or cost basis. ) Tj ET Q q 0 0 0 rg BT 496.37 465.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 546.77 465.75 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 453.75 Td (for those closed-end funds for which management fees are based on committed capital, we may elect to delay the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 441.75 Td (start of the fund’) Tj ET Q q 0 0 0 rg BT 121.53 441.75 Td (s investment period and thus its full management fees, in which case we earn management fees ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 429.75 Td (based on drawn capital, and in certain cases outstanding borrowings under a fund-level credit facility made in lieu of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 417.75 Td (drawing capital, until we elect to start the fund’) Tj ET Q q 0 0 0 rg BT 254.38 417.75 Td (s investment period. Our right to receive management fees typically ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 405.75 Td (ends after 10 or 1) Tj ET Q q 0 0 0 rg BT 127.64 405.75 Td (1 years from the initial closing date or the start of the investment period, even if assets remain in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 393.75 Td (the fund. In the case of CLOs, a portion of our management fees are dependent on the suf) Tj ET Q q 0 0 0 rg BT 452.30 393.75 Td (ficiency of the particular ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 381.75 Td (vehicle’) Tj ET Q q 0 0 0 rg BT 83.17 381.75 Td (s cash flow) Tj ET Q q 0 0 0 rg BT 132.08 381.75 Td (. For open-end and evergreen funds, the management fee is generally based on the NA) Tj ET Q q 0 0 0 rg BT 522.14 381.75 Td (V of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 369.75 Td (fund. In the case of certain open-end and evergreen fund accounts, we have the potential to earn performance-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 357.75 Td (based fees, typically in reference to a relevant benchmark index or hurdle rate.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 336.75 Td (Fee calculations that consider committed capital, drawn capital or cost basis are each objective in nature ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 324.75 Td (and therefore do not require the use of significant estimates or assumptions. Management fees related to our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 312.75 Td (open-end and evergreen funds, by contrast, are typically based on NA) Tj ET Q q 0 0 0 rg BT 359.45 312.75 Td (V as defined in the respective partnership or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 300.75 Td (investment management agreement. NA) Tj ET Q q 0 0 0 rg BT 231.57 300.75 Td (V is typically based on the current fair value of the underlying investments ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 288.75 Td (within a fund. Estimates and assumptions are made when determining the fair value of the underlying investments ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 276.75 Td (within a fund and could vary depending on the valuation methodology used. Please see “—Investments, at Fair ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 264.75 Td (V) Tj ET Q q 0 0 0 rg BT 55.93 264.75 Td (alue” below for further discussion related to significant estimates and assumptions used in determining the fair ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 252.75 Td (value of the underlying investments in our funds. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 231.75 Td (W) Tj ET Q q 0 0 0 rg BT 95.26 231.75 Td (e do not recognize incremental income for transaction, advisory) Tj ET Q q 0 0 0 rg BT 375.21 231.75 Td (, director and other ancillary fees received ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 219.75 Td (in connection with providing services to portfolio companies or potential investees of the funds; rather) Tj ET Q q 0 0 0 rg BT 496.36 219.75 Td (, any such ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 207.75 Td (fees are of) Tj ET Q q 0 0 0 rg BT 97.07 207.75 Td (fset against management fees earned from the applicable fund. ) Tj ET Q q 0 0 0 rg BT 382.62 207.75 Td (These fees are typically recognized as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 195.75 Td (revenue in the period in which they are of) Tj ET Q q 0 0 0 rg BT 232.71 195.75 Td (fset against the quarterly management fees that would otherwise be paid ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 183.75 Td (by the applicable fund, which is generally the quarter following the period in which the fees are received. ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 162.75 Td (Incentive Income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 146.25 Td (Incentive income generally represents 20% of each closed-end fund’) Tj ET Q q 0 0 0 rg BT 388.78 146.25 Td (s profits, subject to the return of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 134.25 Td (contributed capital and a preferred return of typically 8% per annum, and 10% to 20% of certain evergreen fund’) Tj ET Q q 0 0 0 rg BT 543.45 134.25 Td (s ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 122.25 Td (annual profits, subject to high-water marks or hurdle rates. W) Tj ET Q q 0 0 0 rg BT 322.71 122.25 Td (e have elected to adopt Method 1 for revenue ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 110.25 Td (recognition based on a formula. Under this method, incentive income is recognized when amounts are fixed or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 98.25 Td (determinable, all related contingencies have been removed and collection is reasonably assured, which generally ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 86.25 Td (occurs in the quarter of, or the quarter immediately prior to, the distribution of the income by the fund to us. ) Tj ET Q q 0 0 0 rg BT 526.18 86.25 Td (The ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 74.25 Td (Method 1 criteria for revenue recognition is typically met \(a\) for closed-end funds, only after all contributed capital ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 62.25 Td (and the preferred return on that capital have been distributed to the fund’) Tj ET Q q 0 0 0 rg BT 371.15 62.25 Td (s investors, and \(b\) for certain evergreen ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 50.25 Td (funds, at the conclusion of each annual measurement period. Incentives received by us before the above criteria ) Tj ET Q endstream endobj 233 0 obj <> endobj 234 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 298.00 31.25 Td (1) Tj ET Q q 0 0 0 rg BT 302.82 31.25 Td (16) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (have been met are deferred and recorded as a deferred incentive income liability within accounts payable, accrued ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (expenses and other liabilities in the consolidated statements of financial condition. W) Tj ET Q q 0 0 0 rg BT 427.26 729.75 Td (e may receive tax distributions ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (related to taxable income allocated by funds, which are treated as an advance of incentive income and subject to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 705.75 Td (the same recognition criteria. ) Tj ET Q q 0 0 0 rg BT 183.77 705.75 Td (T) Tj ET Q q 0 0 0 rg BT 188.77 705.75 Td (ax distributions are contractually not subject to clawback. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 689.25 Td (For purposes of adjusted net income, incentive income is recognized when the underlying fund distributions ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 677.25 Td (are known or knowable as of the respective quarter end, which may be later than the time at which the same ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 665.25 Td (incentive income is recognized under Method 1.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 644.25 Td (Other Income \(Loss\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 627.75 Td (Other income \(loss\) includes the unrealized and realized gains \(losses\) on consolidated funds’) Tj ET Q q 0 0 0 rg BT 501.97 627.75 Td ( investments ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 615.75 Td (\(including the impact of foreign currency on non-dollar denominated investments\), dividend and interest income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 603.75 Td (received from investments, and interest expense incurred in connection with investment activities. Unrealized gains ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 591.75 Td (or losses result from changes in the fair value of our funds’) Tj ET Q q 0 0 0 rg BT 308.65 591.75 Td ( investments during a period as well as the reversal of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 579.75 Td (unrealized gains or losses in connection with realization events. Upon disposition of an investment, previously ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 567.75 Td (recognized unrealized gains or losses are reversed and a corresponding realized gain or loss is recognized in the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 555.75 Td (current period. While this reversal generally does not significantly impact the net amounts of gains and losses that ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 543.75 Td (we recognize from investment activities, it af) Tj ET Q q 0 0 0 rg BT 245.45 543.75 Td (fects the manner in which we classify our gains and losses for reporting ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 531.75 Td (purposes. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 510.75 Td (Fair V) Tj ET Q q 0 0 0 rg BT 77.42 510.75 Td (alue of Financial Instruments) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 494.25 Td (GAAP) Tj ET Q q 0 0 0 rg BT 113.61 494.25 Td ( establishes a hierarchical disclosure framework that prioritizes the inputs used in measuring financial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 482.25 Td (instruments at fair value into three levels based on their market observability) Tj ET Q q 0 0 0 rg BT 386.09 482.25 Td (. Market price observability is af) Tj ET Q q 0 0 0 rg BT 528.74 482.25 Td (fected ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 470.25 Td (by a number of factors, such as the type of instrument and the characteristics specific to the instrument. Financial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 458.25 Td (instruments with readily available quoted prices from an active market or for which fair value can be measured ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 446.25 Td (based on actively quoted prices generally will have a higher degree of market price observability and a lesser ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 434.25 Td (degree of judgment inherent in measuring fair value. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 413.25 Td (Financial assets and liabilities measured and reported at fair value are classified as follows: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 396.75 Td (• ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 111.00 396.75 Td (Level I – ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 151.58 396.75 Td (Quoted unadjusted prices for identical instruments in active markets to which we have ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 111.00 384.75 Td (access at the date of measurement. ) Tj ET Q q 0 0 0 rg BT 275.35 384.75 Td (The types of investments in Level I include exchange-traded ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 111.00 372.75 Td (equities, debt and derivatives with quoted prices. ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 86.00 356.25 Td (• ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 111.00 356.25 Td (Level II – ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 154.36 356.25 Td (Quoted prices for similar instruments in active markets; quoted prices for identical or similar ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 111.00 344.25 Td (instruments in markets that are not active; and model-derived valuations in which all significant inputs ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 111.00 332.25 Td (are directly or indirectly observable. Level II inputs include interest rates, yield curves, volatilities, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 111.00 320.25 Td (prepayment risks, loss severities, credit risks and default rates. ) Tj ET Q q 0 0 0 rg BT 394.26 320.25 Td (The types of investments in Level II ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 111.00 308.25 Td (generally include corporate bonds and loans, government and agency securities, less liquid and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 111.00 296.25 Td (restricted equity investments, over-the-counter traded derivatives, other investments where the fair ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 111.00 284.25 Td (value is based on observable inputs, and upon adoption of the new CLO measurement guidance as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 111.00 272.25 Td (of January 1, 2016, debt obligations of consolidated CLOs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 255.75 Td (• ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 111.00 255.75 Td (Level III – ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 157.14 255.75 Td (V) Tj ET Q q 0 0 0 rg BT 163.07 255.75 Td (aluations for which one or more significant inputs are unobservable. ) Tj ET Q q 0 0 0 rg BT 467.50 255.75 Td (These inputs reflect ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 111.00 243.75 Td (our assessment of the assumptions that market participants use to value the investment based on the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 111.00 231.75 Td (best available information. Level III inputs include prices of quoted securities in markets for which ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 111.00 219.75 Td (there are few transactions, less public information exists or prices vary among brokered market ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 111.00 207.75 Td (makers. ) Tj ET Q q 0 0 0 rg BT 151.94 207.75 Td (The types of investments in Level III include non-publicly traded equity) Tj ET Q q 0 0 0 rg BT 461.92 207.75 Td (, debt, real estate and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 111.00 195.75 Td (derivatives. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 174.75 Td (In some instances, the inputs used to value an instrument may fall into multiple levels of the fair-value ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 162.75 Td (hierarchy) Tj ET Q q 0 0 0 rg BT 90.39 162.75 Td (. In such instances, the instrument’) Tj ET Q q 0 0 0 rg BT 246.95 162.75 Td (s level within the fair-value hierarchy is based on the lowest of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 150.75 Td (three levels \(with Level III being the lowest\) that is significant to the fair-value measurement. Our assessment of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 138.75 Td (the significance of an input requires judgment and considers factors specific to the instrument. ) Tj ET Q q 0 0 0 rg BT 470.60 138.75 Td (T) Tj ET Q q 0 0 0 rg BT 476.34 138.75 Td (ransfers of assets ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 126.75 Td (into or out of each fair value hierarchy level as a result of changes in the observability of the inputs used in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 114.75 Td (measuring fair value are accounted for as of the beginning of the reporting period. ) Tj ET Q q 0 0 0 rg BT 416.71 114.75 Td (T) Tj ET Q q 0 0 0 rg BT 422.45 114.75 Td (ransfers resulting from a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 102.75 Td (specific event, such as a reorganization or restructuring, are accounted for as of the date of the event that caused ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 90.75 Td (the transfer) Tj ET Q q 0 0 0 rg BT 100.03 90.75 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 69.75 Td (In the absence of observable market prices, we value Level III investments using valuation methodologies ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 57.75 Td (applied on a consistent basis. ) Tj ET Q q 0 0 0 rg BT 186.57 57.75 Td (The quarterly valuation process for Level III investments begins with each portfolio ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 45.75 Td (company) Tj ET Q q 0 0 0 rg BT 89.83 45.75 Td (, property or security being valued by the investment or valuation teams. With the exception of open-end ) Tj ET Q endstream endobj 235 0 obj <> endobj 236 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 298.00 31.25 Td (1) Tj ET Q q 0 0 0 rg BT 302.82 31.25 Td (17) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (funds, all unquoted Level III investment values are reviewed and approved by \(i\) our valuation of) Tj ET Q q 0 0 0 rg BT 475.07 741.75 Td (ficer) Tj ET Q q 0 0 0 rg BT 493.41 741.75 Td (, who is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (independent of the investment teams, \(ii\) a designated investment professional of each strategy and \(iii\) for a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (substantial majority of unquoted Level III holdings as measured by market value, a valuation committee for such ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 705.75 Td (strategy) Tj ET Q q 0 0 0 rg BT 84.83 705.75 Td (. For open-end funds, unquoted Level III investment values are reviewed and approved by our valuation ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 693.75 Td (of) Tj ET Q q 0 0 0 rg BT 58.16 693.75 Td (ficer) Tj ET Q q 0 0 0 rg BT 76.50 693.75 Td (. For certain investments, the valuation process also includes a review by independent valuation parties, at ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 681.75 Td (least annually) Tj ET Q q 0 0 0 rg BT 110.41 681.75 Td (, to determine whether the fair values determined by management are reasonable. Results of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 669.75 Td (valuation process are evaluated each quarter) Tj ET Q q 0 0 0 rg BT 249.58 669.75 Td (, including an assessment of whether the underlying calculations ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 657.75 Td (should be adjusted or recalibrated. In connection with this process, we periodically evaluate changes in fair-value ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 645.75 Td (measurements for reasonableness, considering items such as industry trends, general economic and market ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 633.75 Td (conditions, and factors specific to the investment. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 612.75 Td (Certain assets are valued using prices obtained from brokers or pricing vendors. W) Tj ET Q q 0 0 0 rg BT 455.43 612.75 Td (e obtain an average of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 600.75 Td (one to two broker quotes. W) Tj ET Q q 0 0 0 rg BT 177.66 600.75 Td (e seek to obtain at least one quote directly from a broker making a market for the asset ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 588.75 Td (and one price from a pricing vendor for the specific or similar securities. ) Tj ET Q q 0 0 0 rg BT 371.06 588.75 Td (These investments may be classified as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 576.75 Td (Level III because the quoted prices may be indicative in nature for securities that are in an inactive market, may be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 564.75 Td (for similar securities, or may require adjustment for investment-specific factors or restrictions. W) Tj ET Q q 0 0 0 rg BT 475.50 564.75 Td (e evaluate the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 552.75 Td (prices obtained from brokers or pricing vendors based on available market information, including trading activity of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 540.75 Td (the subject or similar securities, or by performing a comparable security analysis to ensure that fair values are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 528.75 Td (reasonably estimated. W) Tj ET Q q 0 0 0 rg BT 162.65 528.75 Td (e also perform back-testing of valuation information obtained from brokers and pricing ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 516.75 Td (vendors against actual prices received in transactions. In addition to ongoing monitoring and back-testing, we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 504.75 Td (perform due diligence procedures surrounding pricing vendors to understand their methodology and controls to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 492.75 Td (support their use in the valuation process.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 471.75 Td (W) Tj ET Q q 0 0 0 rg BT 95.26 471.75 Td (e adopted the new CLO measurement guidance on a modified retrospective approach as of January 1, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 459.75 Td (2016. Upon adoption, we elected the fair value option for the financial liabilities of the consolidated CLOs and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 447.75 Td (determined that the fair value of the CLO assets was more observable than the fair value of the CLO liabilities. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 435.75 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 100.95 435.75 Td (, the fair value of the CLO liabilities was measured as the fair value of CLO assets less the sum of \(a\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 423.75 Td (the fair value of any beneficial interests held by the Company and \(b\) the carrying value of any beneficial interests ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 411.75 Td (that represent compensation for services.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 390.75 Td (Investments, at Fair V) Tj ET Q q 0 0 0 rg BT 153.00 390.75 Td (alue) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 369.75 Td (The consolidated funds include investment limited partnerships and CLOs that reflect their investments, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 357.75 Td (including majority-owned and controlled investments, at fair value. W) Tj ET Q q 0 0 0 rg BT 356.63 357.75 Td (e have retained the specialized investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 345.75 Td (company accounting guidance under GAAP) Tj ET Q q 0 0 0 rg BT 243.83 345.75 Td ( for investment limited partnerships with respect to consolidated ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 333.75 Td (investments and have elected the fair value option for the financial assets of CLOs. ) Tj ET Q q 0 0 0 rg BT 422.25 333.75 Td (Thus, the investments of our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 321.75 Td (consolidated funds are reflected in the consolidated statements of financial condition at fair value, with unrealized ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 309.75 Td (gains and losses resulting from changes in fair value reflected as a component of net change in unrealized ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 297.75 Td (appreciation \(depreciation\) on consolidated funds’) Tj ET Q q 0 0 0 rg BT 270.33 297.75 Td ( investments in the consolidated statements of operations. Fair ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 285.75 Td (value is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 273.75 Td (between market participants at the measurement date \(i.e., the exit price\).) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 252.75 Td (Non-publicly traded debt and equity securities and other securities or instruments for which reliable market ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 240.75 Td (quotations are not available are valued by management using valuation methodologies applied on a consistent ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 228.75 Td (basis. ) Tj ET Q q 0 0 0 rg BT 81.50 228.75 Td (These securities may initially be valued at the acquisition price as the best indicator of fair value. W) Tj ET Q q 0 0 0 rg BT 521.53 228.75 Td (e review ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 216.75 Td (the significant unobservable inputs, valuations of comparable investments and other similar transactions for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 204.75 Td (investments valued at acquisition price to determine whether another valuation methodology should be utilized. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 192.75 Td (Subsequent valuations will depend on the facts and circumstances known as of the valuation date and the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 180.75 Td (application of valuation methodologies as further described below under “—Non-publicly ) Tj ET Q q 0 0 0 rg BT 441.71 180.75 Td (T) Tj ET Q q 0 0 0 rg BT 447.45 180.75 Td (raded Equity and Real ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 168.75 Td (Estate Investments.” ) Tj ET Q q 0 0 0 rg BT 146.52 168.75 Td (The fair value may also be based on a pending transaction expected to close after the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 156.75 Td (valuation date.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 135.75 Td (Exchange-traded Investments ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 119.25 Td (Securities listed on one or more national securities exchanges are valued at their last reported sales price ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 107.25 Td (on the date of valuation. If no sale occurred on the valuation date, the security is valued at the mean of the last ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 95.25 Td (“bid” and “ask” prices on the valuation date. Securities that are not readily marketable due to legal restrictions that ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 83.25 Td (may limit or restrict transferability are generally valued at a discount from quoted market prices. ) Tj ET Q q 0 0 0 rg BT 475.55 83.25 Td (The discount would ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 71.25 Td (reflect the amount market participants would require due to the risk relating to the inability to access a public market ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 59.25 Td (for the security for the specified period and would vary depending on the nature and duration of the restriction and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 47.25 Td (the perceived risk and volatility of the underlying securities. Securities with longer duration restrictions or higher ) Tj ET Q endstream endobj 237 0 obj <> endobj 238 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 298.00 31.25 Td (1) Tj ET Q q 0 0 0 rg BT 302.82 31.25 Td (18) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (volatility are generally valued at a higher discount. Such discounts are generally estimated based on put option ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (models or an analysis of market studies. Instances where we have applied discounts to quoted prices of restricted ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (listed securities have been infrequent. ) Tj ET Q q 0 0 0 rg BT 223.26 717.75 Td (The impact of such discounts is not material to our consolidated statements ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 705.75 Td (of financial condition and results of operations for all periods presented. ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 684.75 Td (Credit-oriented Investments \(including Real Estate Loan Portfolios\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 668.25 Td (Investments in corporate and government debt which are not listed or admitted to trading on any securities ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 656.25 Td (exchange are valued at the mean of the last bid and ask prices on the valuation date based on quotations supplied ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 644.25 Td (by recognized quotation services or by reputable broker-dealers. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 623.25 Td (The market-yield approach is considered in the valuation of non-publicly traded debt securities, utilizing ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 611.25 Td (expected future cash flows and discounted using estimated current market rates. Discounted cash-flow ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 599.25 Td (calculations may be adjusted to reflect current market conditions and/or the perceived credit risk of the borrower) Tj ET Q q 0 0 0 rg BT 543.58 599.25 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 587.25 Td (Consideration is also given to a borrower) Tj ET Q q 0 0 0 rg BT 231.58 587.25 Td (’) Tj ET Q q 0 0 0 rg BT 233.62 587.25 Td (s ability to meet principal and interest obligations; this may include an ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 575.25 Td (evaluation of collateral and/or the underlying value of the borrower utilizing techniques described below under “—) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 563.25 Td (Non-publicly ) Tj ET Q q 0 0 0 rg BT 107.62 563.25 Td (T) Tj ET Q q 0 0 0 rg BT 113.36 563.25 Td (raded Equity and Real Estate Investments.” ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 542.25 Td (Non-publicly T) Tj ET Q q 0 0 0 rg BT 113.17 542.25 Td (raded Equity and Real Estate Investments ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 525.75 Td (The fair value of equity and real estate investments is determined using a cost, market or income approach. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 513.75 Td (The cost approach is based on the current cost of reproducing a real estate investment less deterioration and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 501.75 Td (functional and economic obsolescence. ) Tj ET Q q 0 0 0 rg BT 229.93 501.75 Td (The market approach utilizes valuations of comparable public companies ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 489.75 Td (and transactions, and generally seeks to establish the enterprise value of the portfolio company or investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 477.75 Td (property using a market-multiple methodology) Tj ET Q q 0 0 0 rg BT 252.13 477.75 Td (. ) Tj ET Q q 0 0 0 rg BT 260.29 477.75 Td (This approach takes into account the financial measure \(such as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 465.75 Td (EBITDA, adjusted EBITDA, free cash flow) Tj ET Q q 0 0 0 rg BT 235.08 465.75 Td (, net operating income, net income, book value or net asset value\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 453.75 Td (believed to be most relevant for the given company or investment property) Tj ET Q q 0 0 0 rg BT 377.76 453.75 Td (. Consideration also may be given to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 441.75 Td (factors such as acquisition price of the security or investment property) Tj ET Q q 0 0 0 rg BT 358.29 441.75 Td (, historical and projected operational and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 429.75 Td (financial results for the portfolio company) Tj ET Q q 0 0 0 rg BT 231.02 429.75 Td (, the strengths and weaknesses of the portfolio company or investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 417.75 Td (property relative to its comparable companies or properties, industry trends, general economic and market ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 405.75 Td (conditions, and others deemed relevant. ) Tj ET Q q 0 0 0 rg BT 233.27 405.75 Td (The income approach is typically a discounted cash-flow method that ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 393.75 Td (incorporates expected timing and level of cash flows. It incorporates assumptions in determining growth rates, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 381.75 Td (income and expense projections, discount and capitalization rates, capital structure, terminal values, and other ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 369.75 Td (factors. ) Tj ET Q q 0 0 0 rg BT 88.16 369.75 Td (The applicability and weight assigned to market and income approaches are determined based on the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 357.75 Td (availability of reliable projections and comparable companies and transactions. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 336.75 Td (The valuation of securities may be impacted by expectations of investors’) Tj ET Q q 0 0 0 rg BT 409.13 336.75 Td ( receptiveness to a public of) Tj ET Q q 0 0 0 rg BT 532.90 336.75 Td (fering ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 324.75 Td (of the securities, the size of the holding of the securities and any associated control, information with respect to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 312.75 Td (transactions or of) Tj ET Q q 0 0 0 rg BT 126.52 312.75 Td (fers for the securities \(including the transaction pursuant to which the investment was made and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 300.75 Td (the elapsed time from the date of the investment to the valuation date\), and applicable restrictions on the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 288.75 Td (transferability of the securities. ) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 187.84 288.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 267.75 Td (These valuation methodologies involve a significant degree of management judgment. ) Tj ET Q q 0 0 0 rg BT 471.80 267.75 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 522.74 267.75 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 255.75 Td (valuations by us do not necessarily represent the amounts that eventually may be realized from sales or other ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 243.75 Td (dispositions of investments. Fair values may dif) Tj ET Q q 0 0 0 rg BT 261.57 243.75 Td (fer from the values that would have been used had a ready market ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 231.75 Td (for the investment existed, and the dif) Tj ET Q q 0 0 0 rg BT 216.03 231.75 Td (ferences could be material to the consolidated financial statements. ) Tj ET Q endstream endobj 239 0 obj <> endobj 240 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 298.00 31.25 Td (1) Tj ET Q q 0 0 0 rg BT 302.82 31.25 Td (19) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 741.75 Td (The table below summarizes the investments and other financial instruments, net of debt obligations, by ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (fund structure and fair-value hierarchy levels, held by our consolidated funds for each period presented in our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (consolidated statements of financial condition \(in thousands\): ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285.5 693.25 m 348.5 693.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356.5 693.25 m 419.5 693.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 693.25 m 490.5 693.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 693.25 m 561.5 693.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285.5 651.25 m 348.5 651.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285.5 638.25 m 348.5 638.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285.5 636.25 m 348.5 636.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356.5 651.25 m 419.5 651.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356.5 638.25 m 419.5 638.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356.5 636.25 m 419.5 636.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 651.25 m 490.5 651.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 638.25 m 490.5 638.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 636.25 m 490.5 636.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 651.25 m 561.5 651.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 638.25 m 561.5 638.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 636.25 m 561.5 636.25 l s BT /F2 7.50 Tf ET 0 0 0 RG /GS0 gs 0.79 w 0 i [] 0 d 1 J 1 j 3 M 52 696.1511962890625 m 140.38671875 696.1511962890625 l s q 0 0 0 rg BT 52.00 697.34 Td (As of December 31, 2016) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 140.39 697.34 Td ( ) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 304.80 697.34 Td (Level I) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 374.75 697.34 Td (Level II) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 444.70 697.34 Td (Level III) Tj ET Q BT /F2 7.50 Tf ET q 0 0 0 rg BT 520.80 697.34 Td (Total) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 683.65 Td (Closed-end funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 126.95 683.20 Td (..............................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 288.00 683.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 322.45 683.65 Td (6,078) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 359.00 683.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 383.45 683.65 Td (320,688) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 430.00 683.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 454.45 683.65 Td (242,961) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 501.00 683.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 683.65 Td (569,727) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 669.65 Td (Open-end funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 121.95 669.20 Td (................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 317.45 669.65 Td (37,608) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 388.45 669.65 Td (59,832) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 478.00 669.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 669.65 Td (97,440) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 655.65 Td (Evergreen funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 121.95 655.20 Td (................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 317.45 655.65 Td (44,660) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 397.95 655.65 Td (\(941) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 416.00 655.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 464.45 655.65 Td (1,393) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 655.65 Td (45,112) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 641.65 Td (Total) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 76.95 641.20 Td (..................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 288.00 641.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 317.45 641.65 Td (88,346) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 359.00 641.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 383.45 641.65 Td (379,579) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 430.00 641.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 454.45 641.65 Td (244,354) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 501.00 641.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 641.65 Td (712,279) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285.5 571.25 m 348.5 571.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285.5 558.25 m 348.5 558.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285.5 556.25 m 348.5 556.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356.5 571.25 m 419.5 571.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356.5 558.25 m 419.5 558.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356.5 556.25 m 419.5 556.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 571.25 m 490.5 571.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 558.25 m 490.5 558.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 556.25 m 490.5 556.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 571.25 m 561.5 571.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 558.25 m 561.5 558.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 556.25 m 561.5 556.25 l s BT /F2 7.50 Tf ET 0 0 0 RG /GS0 gs 0.79 w 0 i [] 0 d 1 J 1 j 3 M 52 616.1511962890625 m 140.38671875 616.1511962890625 l s q 0 0 0 rg BT 52.00 617.34 Td (As of December 31, 2015) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 603.65 Td (Closed-end funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 126.95 603.20 Td (..............................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 288.00 603.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 304.95 603.65 Td (3,435,823) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 359.00 603.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 375.95 603.65 Td (8,557,125) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 430.00 603.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 441.95 603.65 Td (26,508,067) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 501.00 603.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 512.95 603.65 Td (38,501,015) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 589.65 Td (Open-end funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 121.95 589.20 Td (................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 312.45 589.65 Td (992,683) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 375.95 589.65 Td (3,814,699) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 459.45 589.65 Td (80,210) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.95 589.65 Td (4,887,592) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 575.65 Td (Evergreen funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 121.95 575.20 Td (................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 312.45 575.65 Td (383,349) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 383.45 575.65 Td (585,417) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 454.45 575.65 Td (629,430) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.95 575.65 Td (1,598,196) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 561.65 Td (Total) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 76.95 561.20 Td (..................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 288.00 561.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 304.95 561.65 Td (4,811,855) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 359.00 561.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 370.95 561.65 Td (12,957,241) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 430.00 561.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 441.95 561.65 Td (27,217,707) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 501.00 561.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 512.95 561.65 Td (44,986,803) Tj ET Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 536.75 Td (Derivatives and Hedging) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 520.25 Td (W) Tj ET Q q 0 0 0 rg BT 95.26 520.25 Td (e enter into derivatives as part of our overall risk management strategy or to facilitate our investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 508.25 Td (management activities. Risks associated with fluctuations in interest rates and foreign-currency exchange rates in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 496.25 Td (the normal course of business are addressed as part of our overall risk management strategy that may result in the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 484.25 Td (use of derivatives to economically hedge or reduce these exposures. ) Tj ET Q q 0 0 0 rg BT 359.44 484.25 Td (T) Tj ET Q q 0 0 0 rg BT 364.44 484.25 Td (o mitigate the risk associated with ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 472.25 Td (fluctuations in interest rates, we may enter into interest-rate swaps to manage all or a portion of the interest-rate risk ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 460.25 Td (associated with our variable-rate borrowings. Our corporate investments in funds include investments denominated ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 448.25 Td (in currencies other than the U.S. dollar) Tj ET Q q 0 0 0 rg BT 220.09 448.25 Td (, which is Oaktree’) Tj ET Q q 0 0 0 rg BT 301.61 448.25 Td (s reporting currency and, consequently) Tj ET Q q 0 0 0 rg BT 473.18 448.25 Td (, are subject to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 436.25 Td (fluctuations in foreign-currency exchange rates. W) Tj ET Q q 0 0 0 rg BT 274.93 436.25 Td (e also receive management fees from certain funds and pay ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 424.25 Td (expenses in currencies other than the U.S. dollar) Tj ET Q q 0 0 0 rg BT 265.68 424.25 Td (. ) Tj ET Q q 0 0 0 rg BT 273.83 424.25 Td (T) Tj ET Q q 0 0 0 rg BT 278.83 424.25 Td (o reduce earnings and cash-flow volatility associated with ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 412.25 Td (changes in foreign-currency exchange rates caused by the remeasurement of our corporate investments and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 400.25 Td (management fees and expenses denominated in non-functional currencies, we may enter into foreign-currency ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 388.25 Td (option and forward contracts. ) Tj ET Q q 0 0 0 rg BT 183.96 388.25 Td (As a result of the use of these or other derivative contracts, we are exposed to the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 376.25 Td (risk that counterparties will fail to fulfill their contractual obligations. W) Tj ET Q q 0 0 0 rg BT 359.39 376.25 Td (e attempt to mitigate this counterparty risk by ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 364.25 Td (entering into derivative contracts only with major financial institutions that have investment-grade ratings. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 352.25 Td (Counterparty credit risk is evaluated in determining the fair value of derivatives. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 331.25 Td (W) Tj ET Q q 0 0 0 rg BT 95.26 331.25 Td (e recognize all derivatives as assets or liabilities in our consolidated statements of financial condition at ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 319.25 Td (fair value. In connection with our derivative activities, we generally enter into agreements subject to enforceable ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 307.25 Td (master netting arrangements that allow us to of) Tj ET Q q 0 0 0 rg BT 258.26 307.25 Td (fset derivative assets and liabilities in the same currency by specific ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 295.25 Td (derivative type or) Tj ET Q q 0 0 0 rg BT 125.60 295.25 Td (, in the event of default by the counterparty) Tj ET Q q 0 0 0 rg BT 314.42 295.25 Td (, to of) Tj ET Q q 0 0 0 rg BT 339.25 295.25 Td (fset derivative assets and liabilities with the same ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 283.25 Td (counterparty) Tj ET Q q 0 0 0 rg BT 104.84 283.25 Td (. While these derivatives are eligible to be of) Tj ET Q q 0 0 0 rg BT 303.10 283.25 Td (fset in accordance with applicable accounting guidance, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 271.25 Td (we have elected to present derivative assets and liabilities based on gross fair value in our consolidated statements ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 259.25 Td (of financial condition.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 238.25 Td (When we enter into a derivative contract, we may elect to designate the derivative as a hedging instrument ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 226.25 Td (and apply hedge accounting as part of our overall risk management strategy) Tj ET Q q 0 0 0 rg BT 386.12 226.25 Td (. In other situations, when a derivative ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 214.25 Td (does not qualify for hedge accounting or when the derivative and the hedged item are both recorded in current-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 202.25 Td (period earnings and thus deemed to be economic hedges, hedge accounting is not applied. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 181.25 Td (Derivatives that are designated as hedging instruments are classified as either a hedge of \(a\) a recognized ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 169.25 Td (asset or liability \(“fair-value hedge”\), \(b\) a forecasted transaction or of the variability of cash flows to be received or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 157.25 Td (paid related to a recognized asset or liability \(“cash-flow hedge”\), or \(c\) a net investment in a foreign operation. For ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 145.25 Td (a fair-value hedge, we record changes in the fair value of the derivative and, to the extent that it is highly ef) Tj ET Q q 0 0 0 rg BT 521.21 145.25 Td (fective, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 133.25 Td (changes in the fair value of the hedged asset or liability attributable to the hedged risk in current-period earnings in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 121.25 Td (the same caption in the consolidated statements of operations as the hedged item. Changes in the fair value of a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 109.25 Td (derivative that is highly ef) Tj ET Q q 0 0 0 rg BT 162.10 109.25 Td (fective and is designated and qualifies as a cash-flow hedge, to the extent that the hedge ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 97.25 Td (is ef) Tj ET Q q 0 0 0 rg BT 68.16 97.25 Td (fective, are recorded in other comprehensive income \(loss\) until earnings are af) Tj ET Q q 0 0 0 rg BT 418.71 97.25 Td (fected by the variability of cash ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 85.25 Td (flows of the hedged transaction. ) Tj ET Q q 0 0 0 rg BT 196.21 85.25 Td (Any hedge inef) Tj ET Q q 0 0 0 rg BT 262.74 85.25 Td (fectiveness is recorded in current-period earnings. Changes in the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 73.25 Td (fair value of derivatives designated as hedging instruments that are caused by factors other than changes in the risk ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 61.25 Td (being hedged are excluded from the assessment of hedge ef) Tj ET Q q 0 0 0 rg BT 318.89 61.25 Td (fectiveness and recognized in current-period earnings. ) Tj ET Q endstream endobj 241 0 obj <> endobj 242 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (120) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (For a derivative that is not designated as a hedging instrument \(“freestanding derivative”\), we record changes in fair ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (value in current-period earnings. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 708.75 Td (W) Tj ET Q q 0 0 0 rg BT 95.26 708.75 Td (e formally document at inception the hedge relationship, including identification of the hedging instrument ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 696.75 Td (and the hedged item, as well as the risk management objectives, the strategy for undertaking the hedge ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 684.75 Td (transaction, and the evaluation of ef) Tj ET Q q 0 0 0 rg BT 208.26 684.75 Td (fectiveness of the hedged transaction. On a quarterly basis, we formally assess ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 672.75 Td (whether the derivative we designated in each hedging relationship has been and is expected to remain highly ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 660.75 Td (ef) Tj ET Q q 0 0 0 rg BT 58.16 660.75 Td (fective in of) Tj ET Q q 0 0 0 rg BT 108.56 660.75 Td (fsetting changes in the estimated fair value or cash flow of the hedged items. If it is determined that a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 648.75 Td (derivative is not highly ef) Tj ET Q q 0 0 0 rg BT 159.32 648.75 Td (fective at hedging the designated exposure, hedge accounting is discontinued and the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 636.75 Td (balance remaining in other comprehensive income \(loss\) is released to earnings. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 615.75 Td (Equity-based Compensation ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 599.25 Td (Equity-based compensation expense reflects the non-cash charge associated with grants of Class ) Tj ET Q q 0 0 0 rg BT 521.80 599.25 Td (A) Tj ET Q q 0 0 0 rg BT 527.92 599.25 Td ( units, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 587.25 Td (OCGH units and EVUs, and is calculated based on the grant-date fair value of the unit award, adjusted annually or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 575.25 Td (more frequently) Tj ET Q q 0 0 0 rg BT 118.74 575.25 Td (, as necessary) Tj ET Q q 0 0 0 rg BT 182.47 575.25 Td (, for actual forfeitures to reflect expense only for those units that ultimately vest. ) Tj ET Q q 0 0 0 rg BT 538.20 575.25 Td (A) Tj ET Q q 0 0 0 rg BT 544.32 575.25 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 563.25 Td (contemporaneous valuation report is utilized in determining fair value at the date of grant for OCGH unit awards. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 551.25 Td (Each valuation report is based on the market price of Oaktree’) Tj ET Q q 0 0 0 rg BT 324.41 551.25 Td (s Class ) Tj ET Q q 0 0 0 rg BT 359.42 551.25 Td (A) Tj ET Q q 0 0 0 rg BT 365.54 551.25 Td ( units as well as other pertinent factors. ) Tj ET Q q 0 0 0 rg BT 543.96 551.25 Td (A) Tj ET Q q 0 0 0 rg BT 550.08 551.25 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 539.25 Td (discount is then applied to the Class ) Tj ET Q q 0 0 0 rg BT 212.32 539.25 Td (A) Tj ET Q q 0 0 0 rg BT 218.44 539.25 Td ( unit market price to reflect the lack of marketability for equity-classified ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 527.25 Td (awards, if applicable. ) Tj ET Q q 0 0 0 rg BT 148.76 527.25 Td (The determination of an appropriate discount for lack of marketability is based on a review of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 515.25 Td (discounts on the sale of restricted shares of publicly-traded companies and multi-period put-based quantitative ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 503.25 Td (methods. Factors that influence the size of the discount for lack of marketability include \(a\) the estimated time it ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 491.25 Td (would take for an OCGH unitholder to exchange units into Class ) Tj ET Q q 0 0 0 rg BT 335.71 491.25 Td (A) Tj ET Q q 0 0 0 rg BT 341.83 491.25 Td ( units, \(b\) the volatility of the Company’) Tj ET Q q 0 0 0 rg BT 513.95 491.25 Td (s business ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 479.25 Td (and \(c\) thin trading of the Class ) Tj ET Q q 0 0 0 rg BT 191.19 479.25 Td (A) Tj ET Q q 0 0 0 rg BT 197.30 479.25 Td ( units. Each of these factors is subject to significant judgment. Equity-based ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 467.25 Td (awards that do not require future service \(i.e., awards vested at grant\) are expensed immediately) Tj ET Q q 0 0 0 rg BT 477.25 467.25 Td (. Equity-based ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 455.25 Td (awards that require future service are expensed on a straight-line basis over the requisite service period. Cash-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 443.25 Td (settled equity-based awards are classified as liabilities and are remeasured at the end of each reporting period. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 422.25 Td (Incentive Income Compensation ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 405.75 Td (Incentive income compensation expense primarily reflects compensation directly related to incentive ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 393.75 Td (income, which generally consists of percentage interests \(sometimes referred to as “points”\) that we grant to our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 381.75 Td (investment professionals associated with the particular fund that generated the incentive income, and secondarily) Tj ET Q q 0 0 0 rg BT 550.10 381.75 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 369.75 Td (compensation directly related to investment income. W) Tj ET Q q 0 0 0 rg BT 294.93 369.75 Td (e have an obligation to pay a fixed percentage of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 357.75 Td (incentive income earned from a particular fund, including income from consolidated funds that is eliminated in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 345.75 Td (consolidation, to specified investment professionals responsible for the management of the fund. ) Tj ET Q q 0 0 0 rg BT 481.37 345.75 Td (Amounts payable ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 333.75 Td (pursuant to these arrangements are recorded as compensation expense when they have become probable and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 321.75 Td (reasonably estimable. Our determination of the point at which it becomes probable and reasonably estimable that ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 309.75 Td (incentive income compensation expense should be recorded is based on our assessment of numerous factors, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 297.75 Td (particularly those related to the profitability) Tj ET Q q 0 0 0 rg BT 236.58 297.75 Td (, realizations, distribution status, investment profile and commitments or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 285.75 Td (contingencies of the individual funds that may give rise to incentive income. Incentive income compensation is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 273.75 Td (expensed no later than the period in which the underlying income is recognized. Payment of incentive income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 261.75 Td (compensation generally occurs in the same period the related income is received or in the next period. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 249.75 Td (Participation in incentive income generated by the funds is subject to forfeiture upon departure and to vesting ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 237.75 Td (provisions \(generally over a period of five years\), in each case, under certain circumstances set forth in the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 225.75 Td (applicable governing documents. ) Tj ET Q q 0 0 0 rg BT 201.58 225.75 Td (These provisions are generally only applicable to incentive income compensation ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 213.75 Td (that has not yet been recognized as an expense by us or paid to the participant.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 192.75 Td (Recent ) Tj ET Q q 0 0 0 rg BT 85.75 192.75 Td (Accounting Developments ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 176.25 Td (Please see note 2 to our consolidated financial statements included elsewhere in this annual report for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 164.25 Td (information regarding recent accounting developments. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 143.25 Td (Item 7A. Quantitative and Qualitative Disclosures ) Tj ET Q q 0 0 0 rg BT 285.81 143.25 Td (About Market Risk ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 122.25 Td (In the normal course of business, we are exposed to a broad range of risks inherent in the financial markets ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 110.25 Td (in which we participate, including price risk, interest-rate risk, access to and cost of financing risk, liquidity risk, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 98.25 Td (counterparty risk and foreign exchange-rate risk. Potentially negative ef) Tj ET Q q 0 0 0 rg BT 367.77 98.25 Td (fects of these risks may be mitigated to a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 86.25 Td (certain extent by those aspects of our investment approach, investment strategies, fundraising practices or other ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 74.25 Td (business activities that are designed to benefit, either in relative or absolute terms, from periods of economic ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 62.25 Td (weakness, tighter credit or financial market dislocations. ) Tj ET Q endstream endobj 243 0 obj <> endobj 244 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (121) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 741.75 Td (Our predominant exposure to market risk is related to our role as general partner or investment adviser to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (our funds and as an investor in our CLOs, and the sensitivities to movements in the fair value of their investments ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (on management fees, incentive income and investment income, as applicable. ) Tj ET Q q 0 0 0 rg BT 401.68 717.75 Td (The fair value of the financial assets ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 705.75 Td (and liabilities of our funds and CLOs may fluctuate in response to changes in, among many factors, the fair value of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 693.75 Td (securities, foreign-exchange rates, commodities prices and interest rates. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 672.75 Td (Price Risk ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 656.25 Td (Impact on Net Change in Unrealized ) Tj ET Q q 0 0 0 rg BT 222.99 656.25 Td (Appreciation \(Depreciation\) on Consolidated Funds’) Tj ET Q q 0 0 0 rg BT 470.41 656.25 Td ( Investments ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 639.75 Td (As of December 31, 2016, we had investments at fair value of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 361.70 639.75 Td ($3.8 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 409.52 639.75 Td ( related to our consolidated funds, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 627.75 Td (primarily consisting of investments held by our CLOs. W) Tj ET Q q 0 0 0 rg BT 300.46 627.75 Td (e estimate that a 10% decline in market values would ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 615.75 Td (result in a decrease in unrealized appreciation \(depreciation\) on the consolidated funds’) Tj ET Q q 0 0 0 rg BT 436.54 615.75 Td ( investments of $380.8 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 603.75 Td (million. Of this decline, approximately $145.7 million would impact net income attributable to Oaktree Capital ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 591.75 Td (Group, LLC, with the remainder attributable to non-controlling interests and third-party debt holders in our CLOs. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 579.75 Td (The magnitude of the impact on net income attributable to Oaktree Capital Group, LLC is largely af) Tj ET Q q 0 0 0 rg BT 485.61 579.75 Td (fected by the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 567.75 Td (percentage of our equity ownership interest and levered nature of our CLO investments.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 546.75 Td (Impact on Segment Management Fees ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 530.25 Td (Management fees are generally assessed in the case of \(a\) our open-end and evergreen funds, based on ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 518.25 Td (NA) Tj ET Q q 0 0 0 rg BT 63.15 518.25 Td (V) Tj ET Q q 0 0 0 rg BT 68.90 518.25 Td (, and \(b\) our closed-end funds, based on committed capital, drawn capital or cost basis during the investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 506.25 Td (period and, during the liquidation period, based on the lesser of \(i\) the total funded committed capital or \(ii\) the cost ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 494.25 Td (basis of assets remaining in the fund. Management fees are af) Tj ET Q q 0 0 0 rg BT 328.87 494.25 Td (fected by changes in market values to the extent ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 482.25 Td (they are based on NA) Tj ET Q q 0 0 0 rg BT 145.99 482.25 Td (V) Tj ET Q q 0 0 0 rg BT 151.74 482.25 Td (. For the years ended December 31, 2016 and 2015, NA) Tj ET Q q 0 0 0 rg BT 403.37 482.25 Td (V) Tj ET Q q 0 0 0 rg BT 409.49 482.25 Td (-based management fees ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 470.25 Td (represented approximately 30% and 36%, respectively) Tj ET Q q 0 0 0 rg BT 291.06 470.25 Td (, of total management fees. Based on investments held as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 458.25 Td (of December 31, 2016, we estimate that a 10% decline in market values of the investments held in our funds would ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 446.25 Td (result in an approximate $5.8 million decrease in the amount of quarterly management fees. ) Tj ET Q q 0 0 0 rg BT 461.16 446.25 Td (These estimated ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 434.25 Td (ef) Tj ET Q q 0 0 0 rg BT 58.16 434.25 Td (fects are without regard to a number of factors that would be expected to increase or decrease the magnitude of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 422.25 Td (the change to degrees that are not readily quantifiable, such as the use of leverage facilities in certain of our funds ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 410.25 Td (or the timing of fund flows. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 389.25 Td (Impact on Segment Incentive Income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 372.75 Td (Incentive income is recognized only when it is known or knowable, which in the case of \(a\) our closed-end ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 360.75 Td (funds, generally occurs only after all contributed capital and an annual preferred return on that capital \(typically 8%\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 348.75 Td (have been distributed to the fund’) Tj ET Q q 0 0 0 rg BT 197.71 348.75 Td (s investors and \(b\) our active evergreen funds, generally occurs as of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 336.75 Td (December 31, based on the increase in the fund’) Tj ET Q q 0 0 0 rg BT 265.51 336.75 Td (s NA) Tj ET Q q 0 0 0 rg BT 286.44 336.75 Td (V during the year) Tj ET Q q 0 0 0 rg BT 362.05 336.75 Td (, subject to any high-water marks or hurdle ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 324.75 Td (rates. In the case of closed-end funds, the link between short-term fluctuations in market values and a particular ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 312.75 Td (period’) Tj ET Q q 0 0 0 rg BT 79.84 312.75 Td (s incentive income may in part be indirect. ) Tj ET Q q 0 0 0 rg BT 271.41 312.75 Td (Thus the ef) Tj ET Q q 0 0 0 rg BT 321.26 312.75 Td (fect on incentive income of a 10% decline in market ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 300.75 Td (values is not readily quantifiable. ) Tj ET Q q 0 0 0 rg BT 199.54 300.75 Td (A) Tj ET Q q 0 0 0 rg BT 205.65 300.75 Td ( decline in market values would be expected to cause a decline in incentive ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 288.75 Td (income.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 267.75 Td (Impact on Segment Investment Income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 251.25 Td (Investment income or loss arises from our pro-rata share of income or loss from our investments, generally ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 239.25 Td (in our capacity as general partner in our funds and as an investor in our CLOs and third-party managed funds or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 227.25 Td (companies. ) Tj ET Q q 0 0 0 rg BT 106.51 227.25 Td (This income is directly af) Tj ET Q q 0 0 0 rg BT 215.81 227.25 Td (fected by changes in market risk factors. Based on investments held as of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 215.25 Td (December 31, 2016, a 10% decline in fair values of the investments held in our funds and other holdings would ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 203.25 Td (result in a $267.3 million decrease in the amount of investment income. ) Tj ET Q q 0 0 0 rg BT 370.55 203.25 Td (The estimated decline of $267.3 million is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 191.25 Td (greater than 10% of the December 31, 2016 corporate investments balance primarily due to the levered nature of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 179.25 Td (our CLO investments. ) Tj ET Q q 0 0 0 rg BT 152.08 179.25 Td (These estimated ef) Tj ET Q q 0 0 0 rg BT 236.94 179.25 Td (fects are without regard to a number of factors that would be expected to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 167.25 Td (increase or decrease the magnitude of the change to degrees that are not readily quantifiable, such as the use of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 155.25 Td (leverage facilities in certain of our funds, the timing of fund flows or the timing of new investments or realizations.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 129.75 Td (Exchange-rate Risk ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 113.25 Td (Our business is af) Tj ET Q q 0 0 0 rg BT 165.85 113.25 Td (fected by movements in the exchange rate between the U.S. dollar and non-U.S. dollar ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 101.25 Td (currencies in the case of \(a\) management fees that vary based on the NA) Tj ET Q q 0 0 0 rg BT 373.88 101.25 Td (V of our funds that hold investments ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 89.25 Td (denominated in non-U.S. dollar currencies, \(b\) management fees received in non-U.S. dollar currencies, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 77.25 Td (\(c\) operating expenses for our foreign of) Tj ET Q q 0 0 0 rg BT 227.70 77.25 Td (fices that are denominated in non-U.S. dollar currencies and \(d\) cash ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 65.25 Td (balances we hold in non-U.S. dollar currencies. W) Tj ET Q q 0 0 0 rg BT 273.81 65.25 Td (e manage our exposure to exchange-rate risks through our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 53.25 Td (regular operating activities and, when appropriate, through the use of derivative instruments. ) Tj ET Q endstream endobj 245 0 obj <> endobj 246 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (122) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 741.75 Td (W) Tj ET Q q 0 0 0 rg BT 95.26 741.75 Td (e estimate that for the year ended December 31, 2016, without considering the impact of derivative ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (instruments, a 10% decline in the average exchange rate of the U.S. dollar would have resulted in the following ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (approximate ef) Tj ET Q q 0 0 0 rg BT 115.97 717.75 Td (fects on our segment results: ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 696.75 Td (•) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 696.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 111.00 696.75 Td (our management fees \(relating to \(a\) and \(b\) above\) would have increased by $10.6 million; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 675.75 Td (•) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 675.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 111.00 675.75 Td (our operating expenses would have increased by $14.7 million; ) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 392.84 675.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 654.75 Td (•) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 654.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 111.00 654.75 Td (OCGH interest in net income of consolidated subsidiaries would have decreased by $2.4 million; and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 633.75 Td (•) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 633.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 111.00 633.75 Td (our income tax expense would have decreased by $0.6 million. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 612.75 Td (These movements would have decreased our net income attributable to OCG by $1.1 million. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 591.75 Td (At any point in time, some of the investments held by our closed-end and evergreen funds may be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 579.75 Td (denominated in non-U.S. dollar currencies on an unhedged basis. Changes in currency rates could af) Tj ET Q q 0 0 0 rg BT 500.64 579.75 Td (fect incentive ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 567.75 Td (income, incentives created \(fund level\) and investment income with respect to such closed-end and evergreen ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 555.75 Td (funds; however) Tj ET Q q 0 0 0 rg BT 117.27 555.75 Td (, the degree of impact is not readily determinable because of the many indirect ef) Tj ET Q q 0 0 0 rg BT 475.06 555.75 Td (fects that currency ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 543.75 Td (movements may have on individual investments. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 522.75 Td (Credit Risk ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 506.25 Td (W) Tj ET Q q 0 0 0 rg BT 95.26 506.25 Td (e are party to agreements providing for various financial services and transactions that contain an ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 494.25 Td (element of risk in the event that the counterparties are unable to meet the terms of such agreements. In such ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 482.25 Td (agreements, we depend on the respective counterparty to make payment or otherwise perform. W) Tj ET Q q 0 0 0 rg BT 486.15 482.25 Td (e generally ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 470.25 Td (endeavor to minimize our risk of exposure by limiting to reputable financial institutions the counterparties with which ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 458.25 Td (we enter into financial transactions. In other circumstances, availability of financing from financial institutions may ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 446.25 Td (be uncertain due to market events, and we may not be able to access these financing markets. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 425.25 Td (Interest-rate Risk ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 408.75 Td (As of December 31, 2016, Oaktree and its operating subsidiaries had ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 395.07 408.75 Td ($745.9 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 456.77 408.75 Td ( in debt obligations, net ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 396.75 Td (of debt issuance costs, consisting of three senior notes issuances and a funded term loan. Each senior notes ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 384.75 Td (issuance accrues interest at a fixed rate. ) Tj ET Q q 0 0 0 rg BT 234.36 384.75 Td (The funded term loan accrues interest at a variable rate; however) Tj ET Q q 0 0 0 rg BT 522.85 384.75 Td (, we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 372.75 Td (entered into an interest-rate swap that ef) Tj ET Q q 0 0 0 rg BT 229.37 372.75 Td (fectively converted the term loan’) Tj ET Q q 0 0 0 rg BT 375.37 372.75 Td (s floating interest rate to fixed through ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 360.75 Td (January 2017. ) Tj ET Q q 0 0 0 rg BT 118.38 360.75 Td (As a result, for the year ended December 31, 2016, there would not have been a material impact to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 348.75 Td (interest expense attributable to Oaktree and its operating subsidiaries resulting from a 100-basis point increase in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 336.75 Td (interest rates. Of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 146.15 336.75 Td ($1.0 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 193.96 336.75 Td ( of aggregate segment cash and U.S. ) Tj ET Q q 0 0 0 rg BT 362.22 336.75 Td (T) Tj ET Q q 0 0 0 rg BT 367.96 336.75 Td (reasury and time deposit securities as of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 324.75 Td (December 31, 2016, we estimate that Oaktree and its operating subsidiaries would generate an additional $10.5 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 312.75 Td (million in interest income on an annualized basis as a result of a 100-basis point increase in interest rates. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 291.75 Td (Our consolidated funds have debt obligations, most of which accrue interest at variable rates. Changes in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 279.75 Td (these rates would af) Tj ET Q q 0 0 0 rg BT 139.32 279.75 Td (fect the amount of interest payments that our funds would have to make, impacting future ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 267.75 Td (earnings and cash flows. ) Tj ET Q q 0 0 0 rg BT 165.07 267.75 Td (As of December 31, 2016, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 284.02 267.75 Td ($3.5 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 331.84 267.75 Td ( was outstanding under these debt obligations. W) Tj ET Q q 0 0 0 rg BT 552.91 267.75 Td (e ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 255.75 Td (estimate that interest expense relating to variable-rate debt would increase on an annualized basis by $33.6 million ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 243.75 Td (in the event interest rates were to increase by 100 basis points. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 222.75 Td (As credit-oriented investors, we are also subject to interest-rate risk through the securities we hold in our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 210.75 Td (consolidated funds. ) Tj ET Q q 0 0 0 rg BT 141.18 210.75 Td (A) Tj ET Q q 0 0 0 rg BT 147.29 210.75 Td ( 100-basis point increase in interest rates would be expected to negatively af) Tj ET Q q 0 0 0 rg BT 485.65 210.75 Td (fect prices of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 198.75 Td (securities that accrue interest income at fixed rates and therefore negatively impact the net change in unrealized ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 186.75 Td (appreciation \(depreciation\) on consolidated funds’) Tj ET Q q 0 0 0 rg BT 270.33 186.75 Td ( investments. ) Tj ET Q q 0 0 0 rg BT 334.61 186.75 Td (The actual impact is dependent on the average ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 174.75 Td (duration of such holdings. Conversely) Tj ET Q q 0 0 0 rg BT 218.80 174.75 Td (, securities that accrue interest at variable rates would be expected to benefit ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 162.75 Td (from a 100-basis point increase in interest rates because these securities would generate higher levels of current ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 150.75 Td (income and therefore positively impact interest and dividend income. In cases where our funds pay management ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 138.75 Td (fees based on NA) Tj ET Q q 0 0 0 rg BT 128.75 138.75 Td (V) Tj ET Q q 0 0 0 rg BT 134.51 138.75 Td (, we would expect our segment management fees to experience a change in direction and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 126.75 Td (magnitude corresponding to that experienced by the underlying portfolios. ) Tj ET Q endstream endobj 247 0 obj <> endobj 248 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (123) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Item 8. Financial Statements and Supplementary Data) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.75 Td (INDEX T) Tj ET Q q 0 0 0 rg BT 89.27 712.75 Td (O FINANCIAL) Tj ET Q q 0 0 0 rg BT 153.53 712.75 Td ( ST) Tj ET Q q 0 0 0 rg BT 168.34 712.75 Td (A) Tj ET Q q 0 0 0 rg BT 174.82 712.75 Td (TEMENTS ) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 1.05 w 0 i [] 0 d 1 J 1 j 3 M 53 687.28525390625 m 262.4677734375 687.28525390625 l s q 0 0 0 rg BT 53.00 688.87 Td (Audited Consolidated Financial Statements:) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 1.05 w 0 i [] 0 d 1 J 1 j 3 M 516 687.28525390625 m 539.9013671875 687.28525390625 l s q 0 0 0 rg BT 516.00 688.87 Td (Page) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 666.87 Td (Report of Independent Registered Public ) Tj ET Q q 0 0 0 rg BT 235.90 666.87 Td (Accounting Firm) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 309.95 666.47 Td (........................................................................) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 644.87 Td (Consolidated Statements of Financial Condition as of December 31, 2016 and 2015 ) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 426.65 644.47 Td (..............................) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 622.87 Td (Consolidated Statements of Operations for the ) Tj ET Q q 0 0 0 rg BT 261.27 622.87 Td (Y) Tj ET Q q 0 0 0 rg BT 267.02 622.87 Td (ears Ended December 31, 2016, 2015 and 2014) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 482.20 622.47 Td (..........) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 601.87 Td (Consolidated Statements of Comprehensive Income \(Loss\) for the ) Tj ET Q q 0 0 0 rg BT 348.52 601.87 Td (Y) Tj ET Q q 0 0 0 rg BT 354.27 601.87 Td (ears Ended December 31, 2016, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 62.00 591.87 Td (2015 and 2014) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 132.10 591.47 Td (........................................................................................................................................) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 569.87 Td (Consolidated Statements of Cash Flows for the ) Tj ET Q q 0 0 0 rg BT 264.59 569.87 Td (Y) Tj ET Q q 0 0 0 rg BT 270.34 569.87 Td (ears Ended December 31, 2016, 2015 and 2014 ) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 484.95 569.47 Td (.........) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 548.87 Td (Consolidated Statements of Changes in Unitholders’) Tj ET Q q 0 0 0 rg BT 284.43 548.87 Td ( Capital for the ) Tj ET Q q 0 0 0 rg BT 352.06 548.87 Td (Y) Tj ET Q q 0 0 0 rg BT 357.81 548.87 Td (ears Ended December 31, 2016, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 62.00 538.87 Td (2015 and 2014) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 132.10 538.47 Td (........................................................................................................................................) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.00 516.87 Td (Notes to Consolidated Financial Statements ) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 251.60 516.47 Td (.............................................................................................) Tj ET Q BT /F1 10.00 Tf ET BT /F1 1.00 Tf ET q 0 0 0 rg BT 50.00 490.55 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 516.00 666.87 Td (124) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 516.00 644.87 Td (127) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 516.00 622.87 Td (128) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 516.00 591.87 Td (129) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 516.00 569.87 Td (130) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 516.00 538.87 Td (132) Tj ET Q BT /F3 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 516.00 516.87 Td (133) Tj ET Q BT /F3 10.00 Tf ET endstream endobj 249 0 obj <> endobj 250 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (124) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 168.10 741.75 Td (Report of Independent Registered Public ) Tj ET Q q 0 0 0 rg BT 364.41 741.75 Td (Accounting Firm) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.00 720.75 Td (T) Tj ET Q q 0 0 0 rg BT 54.00 720.75 Td (o the Board of Directors and Unitholders of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.00 708.75 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 684.75 Td (W) Tj ET Q q 0 0 0 rg BT 59.26 684.75 Td (e have audited the accompanying consolidated statement of financial condition of Oaktree Capital Group, LLC ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 672.75 Td (\(the Company\) as of December 31, 2016, and the related consolidated statements of operations, comprehensive ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 660.75 Td (income, cash flows and changes in unitholders’) Tj ET Q q 0 0 0 rg BT 258.64 660.75 Td ( capital for the year then ended. ) Tj ET Q q 0 0 0 rg BT 404.66 660.75 Td (These financial statements are the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 648.75 Td (responsibility of the Company's management. Our responsibility is to express an opinion on these financial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 636.75 Td (statements based on our audit.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 612.75 Td (W) Tj ET Q q 0 0 0 rg BT 59.26 612.75 Td (e conducted our audit in accordance with the standards of the Public Company ) Tj ET Q q 0 0 0 rg BT 410.03 612.75 Td (Accounting Oversight Board ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 600.75 Td (\(United States\). ) Tj ET Q q 0 0 0 rg BT 124.85 600.75 Td (Those standards require that we plan and perform the audit to obtain reasonable assurance about ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 588.75 Td (whether the financial statements are free of material misstatement. ) Tj ET Q q 0 0 0 rg BT 350.14 588.75 Td (An audit includes examining, on a test basis, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 576.75 Td (evidence supporting the amounts and disclosures in the financial statements. ) Tj ET Q q 0 0 0 rg BT 395.76 576.75 Td (An audit also includes assessing the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 564.75 Td (accounting principles used and significant estimates made by management, as well as evaluating the overall ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 552.75 Td (financial statement presentation. W) Tj ET Q q 0 0 0 rg BT 208.79 552.75 Td (e believe that our audit provides a reasonable basis for our opinion.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 528.75 Td (In our opinion, the financial statements referred to above present fairly) Tj ET Q q 0 0 0 rg BT 359.43 528.75 Td (, in all material respects, the consolidated ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 516.75 Td (financial position of Oaktree Capital Group, LLC at December 31, 2016, and the consolidated results of its ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 504.75 Td (operations and its cash flows for the year then ended in conformity with U.S. generally accepted accounting ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 492.75 Td (principles.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 468.75 Td (As discussed in Note 2 to the consolidated financial statements, the Company adopted, on a modified retrospective ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 456.75 Td (basis, the amendments to the F) Tj ET Q q 0 0 0 rg BT 189.52 456.75 Td (ASB ) Tj ET Q q 0 0 0 rg BT 211.76 456.75 Td (Accounting Standards Codification resulting from ) Tj ET Q q 0 0 0 rg BT 430.21 456.75 Td (Accounting Standards ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 444.75 Td (Update No. 2015-02, “Amendments to the Consolidation ) Tj ET Q q 0 0 0 rg BT 301.26 444.75 Td (Analysis”.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 420.75 Td (W) Tj ET Q q 0 0 0 rg BT 59.26 420.75 Td (e also have audited, in accordance with the standards of the Public Company ) Tj ET Q q 0 0 0 rg BT 403.36 420.75 Td (Accounting Oversight Board ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 408.75 Td (\(United States\), Oaktree Capital Group, LLC’) Tj ET Q q 0 0 0 rg BT 248.24 408.75 Td (s internal control over financial reporting as of December 31, 2016, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 396.75 Td (based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 384.75 Td (Organizations of the ) Tj ET Q q 0 0 0 rg BT 142.09 384.75 Td (T) Tj ET Q q 0 0 0 rg BT 147.83 384.75 Td (readway Commission \(2013 framework\) and our report dated March 1, 2017 expressed an ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 372.75 Td (unqualified opinion thereon.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.00 336.75 Td (/s/ Ernst & ) Tj ET Q q 0 0 0 rg BT 97.72 336.75 Td (Y) Tj ET Q q 0 0 0 rg BT 103.47 336.75 Td (oung LLP) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.00 312.75 Td (Los ) Tj ET Q q 0 0 0 rg BT 67.35 312.75 Td (Angeles, California ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 300.75 Td (March 1, 2017 ) Tj ET Q endstream endobj 251 0 obj <> endobj 252 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (125) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 168.10 741.75 Td (Report of Independent Registered Public ) Tj ET Q q 0 0 0 rg BT 364.41 741.75 Td (Accounting Firm) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.00 720.75 Td (T) Tj ET Q q 0 0 0 rg BT 54.00 720.75 Td (o the Board of Directors and Unitholders of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.00 708.75 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 684.75 Td (W) Tj ET Q q 0 0 0 rg BT 59.26 684.75 Td (e have audited Oaktree Capital Group, LLC internal control over financial reporting as of December 31, 2016, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 672.75 Td (based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 660.75 Td (Organizations of the ) Tj ET Q q 0 0 0 rg BT 142.09 660.75 Td (T) Tj ET Q q 0 0 0 rg BT 147.83 660.75 Td (readway Commission \(2013 framework\) \(the COSO criteria\). Oaktree Capital Group, LLC’) Tj ET Q q 0 0 0 rg BT 547.23 660.75 Td (s ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 648.75 Td (management is responsible for maintaining ef) Tj ET Q q 0 0 0 rg BT 251.60 648.75 Td (fective internal control over financial reporting, and for its assessment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 636.75 Td (of the ef) Tj ET Q q 0 0 0 rg BT 85.96 636.75 Td (fectiveness of internal control over financial reporting included in the accompanying Management’) Tj ET Q q 0 0 0 rg BT 517.13 636.75 Td (s Report ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 624.75 Td (on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the company’) Tj ET Q q 0 0 0 rg BT 512.84 624.75 Td (s internal ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 612.75 Td (control over financial reporting based on our audit.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 588.75 Td (W) Tj ET Q q 0 0 0 rg BT 59.26 588.75 Td (e conducted our audit in accordance with the standards of the Public Company ) Tj ET Q q 0 0 0 rg BT 410.03 588.75 Td (Accounting Oversight Board ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 576.75 Td (\(United States\). ) Tj ET Q q 0 0 0 rg BT 124.85 576.75 Td (Those standards require that we plan and perform the audit to obtain reasonable assurance about ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 564.75 Td (whether ef) Tj ET Q q 0 0 0 rg BT 96.51 564.75 Td (fective internal control over financial reporting was maintained in all material respects. Our audit included ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 552.75 Td (obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 540.75 Td (exists, testing and evaluating the design and operating ef) Tj ET Q q 0 0 0 rg BT 302.22 540.75 Td (fectiveness of internal control based on the assessed risk, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 528.75 Td (and performing such other procedures as we considered necessary in the circumstances. W) Tj ET Q q 0 0 0 rg BT 460.01 528.75 Td (e believe that our audit ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 516.75 Td (provides a reasonable basis for our opinion.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 492.75 Td (A) Tj ET Q q 0 0 0 rg BT 56.12 492.75 Td ( company’) Tj ET Q q 0 0 0 rg BT 101.51 492.75 Td (s internal control over financial reporting is a process designed to provide reasonable assurance ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 480.75 Td (regarding the reliability of financial reporting and the preparation of financial statements for external purposes in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 468.75 Td (accordance with generally accepted accounting principles. ) Tj ET Q q 0 0 0 rg BT 312.93 468.75 Td (A) Tj ET Q q 0 0 0 rg BT 319.05 468.75 Td ( company’) Tj ET Q q 0 0 0 rg BT 364.45 468.75 Td (s internal control over financial reporting ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 456.75 Td (includes those policies and procedures that \(1\) pertain to the maintenance of records that, in reasonable detail, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 444.75 Td (accurately and fairly reflect the transactions and dispositions of the assets of the company; \(2\) provide reasonable ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 432.75 Td (assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 420.75 Td (with generally accepted accounting principles, and that receipts and expenditures of the company are being made ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 408.75 Td (only in accordance with authorizations of management and directors of the company; and \(3\) provide reasonable ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 396.75 Td (assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’) Tj ET Q q 0 0 0 rg BT 555.67 396.75 Td (s ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 384.75 Td (assets that could have a material ef) Tj ET Q q 0 0 0 rg BT 207.13 384.75 Td (fect on the financial statements.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 360.75 Td (Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 348.75 Td (Also, projections of any evaluation of ef) Tj ET Q q 0 0 0 rg BT 223.81 348.75 Td (fectiveness to future periods are subject to the risk that controls may ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 336.75 Td (become inadequate because of changes in conditions, or that the degree of compliance with the policies or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 324.75 Td (procedures may deteriorate. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 300.75 Td (In our opinion, Oaktree Capital Group, LLC maintained, in all material respects, ef) Tj ET Q q 0 0 0 rg BT 410.56 300.75 Td (fective internal control over ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 288.75 Td (financial reporting as of December 31, 2016, based on the COSO criteria.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 264.75 Td (W) Tj ET Q q 0 0 0 rg BT 59.26 264.75 Td (e also have audited, in accordance with the standards of the Public Company ) Tj ET Q q 0 0 0 rg BT 403.36 264.75 Td (Accounting Oversight Board ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 252.75 Td (\(United States\), the consolidated statement of financial condition of Oaktree Capital Group, LLC as of December ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 240.75 Td (31, 2016, and the related consolidated statements of operations, comprehensive income, cash flows and changes ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 228.75 Td (in unitholders’) Tj ET Q q 0 0 0 rg BT 111.33 228.75 Td ( capital for year then ended and our report dated March 1, 2017 expressed an unqualified opinion ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 216.75 Td (thereon.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.00 180.75 Td (/s/ Ernst & ) Tj ET Q q 0 0 0 rg BT 97.72 180.75 Td (Y) Tj ET Q q 0 0 0 rg BT 103.47 180.75 Td (oung LLP) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.00 156.75 Td (Los ) Tj ET Q q 0 0 0 rg BT 67.35 156.75 Td (Angeles, California ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 144.75 Td (March 1, 2017 ) Tj ET Q endstream endobj 253 0 obj <> endobj 254 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (126) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 168.10 741.75 Td (Report of Independent Registered Public ) Tj ET Q q 0 0 0 rg BT 364.41 741.75 Td (Accounting Firm) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.00 720.75 Td (T) Tj ET Q q 0 0 0 rg BT 54.00 720.75 Td (o the Board of Directors and Unitholders of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.00 708.75 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 684.75 Td (In our opinion, the consolidated statement of financial condition as of December 31, 2015 and the related ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 672.75 Td (consolidated statements of operations, comprehensive income \(loss\), cash flows and changes in unitholders’) Tj ET Q q 0 0 0 rg BT 530.44 672.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 660.75 Td (capital for each of the two years in the period ended December 31, 2015 present fairly) Tj ET Q q 0 0 0 rg BT 429.48 660.75 Td (, in all material respects, the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 648.75 Td (financial position of Oaktree Capital Group, LLC and its subsidiaries \(the “Company”\) as of December 31, 2015, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 636.75 Td (and the results of their operations and their cash flows for each of the two years in the period ended December 31, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 624.75 Td (2015, in conformity with accounting principles generally accepted in the United States of ) Tj ET Q q 0 0 0 rg BT 441.34 624.75 Td (America. ) Tj ET Q q 0 0 0 rg BT 486.17 624.75 Td (These financial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 612.75 Td (statements are the responsibility of the Company's management. Our responsibility is to express an opinion on ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 600.75 Td (these financial statements based on our audits. W) Tj ET Q q 0 0 0 rg BT 273.83 600.75 Td (e conducted our audits of these financial statements in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 588.75 Td (accordance with the standards of the Public Company ) Tj ET Q q 0 0 0 rg BT 291.25 588.75 Td (Accounting Oversight Board \(United States\). ) Tj ET Q q 0 0 0 rg BT 493.39 588.75 Td (Those ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 576.75 Td (standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 564.75 Td (statements are free of material misstatement. ) Tj ET Q q 0 0 0 rg BT 255.64 564.75 Td (An audit includes examining, on a test basis, evidence supporting the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 552.75 Td (amounts and disclosures in the financial statements, assessing the accounting principles used and significant ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 540.75 Td (estimates made by management, and evaluating the overall financial statement presentation. W) Tj ET Q q 0 0 0 rg BT 476.17 540.75 Td (e believe that our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 528.75 Td (audits provide a reasonable basis for our opinion. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.00 492.75 Td (/s/ PricewaterhouseCoopers LLP) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.00 468.75 Td (Los ) Tj ET Q q 0 0 0 rg BT 67.35 468.75 Td (Angeles, California ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 456.75 Td (February 26, 2016, except for the change in the manner in which the Company accounts for debt issuance costs as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 444.75 Td (discussed in Note 2 to the consolidated financial statements, as to which the date is March 1, 2017) Tj ET Q endstream endobj 255 0 obj <> endobj 256 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (127) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 741.75 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 192.10 729.75 Td (Consolidated Statements of Financial Condition ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 267.35 717.75 Td (\($ in thousands\) ) Tj ET Q BT /F1 2.00 Tf ET q 0 0 0 rg BT 50.00 715.35 Td ( ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425.5 693.85 m 489.5 693.85 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489.5 693.85 m 497.5 693.85 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 693.85 m 561.5 693.85 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425.5 693.85 m 489.5 693.85 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425.5 679.85 m 489.5 679.85 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 693.85 m 561.5 693.85 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 679.85 m 561.5 679.85 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425.5 488.85 m 489.5 488.85 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425.5 477.85 m 489.5 477.85 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425.5 475.85 m 489.5 475.85 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 488.85 m 561.5 488.85 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 477.85 m 561.5 477.85 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 475.85 m 561.5 475.85 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425.5 307.85 m 489.5 307.85 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 307.85 m 561.5 307.85 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425.5 307.85 m 489.5 307.85 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425.5 295.85 m 489.5 295.85 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 307.85 m 561.5 307.85 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 295.85 m 561.5 295.85 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425.5 260.85 m 489.5 260.85 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 260.85 m 561.5 260.85 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425.5 168.85000000000002 m 489.5 168.85000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 168.85000000000002 m 561.5 168.85000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425.5 132.85000000000002 m 489.5 132.85000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 132.85000000000002 m 561.5 132.85000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425.5 120.85000000000002 m 489.5 120.85000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425.5 108.85000000000002 m 489.5 108.85000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425.5 106.85000000000002 m 489.5 106.85000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 120.85000000000002 m 561.5 120.85000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 108.85000000000002 m 561.5 108.85000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 106.85000000000002 m 561.5 106.85000000000002 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 460.50 697.25 Td (As of December 31,) Tj ET Q BT /F3 4.00 Tf ET q 0 0 0 rg BT 52.00 683.24 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 449.20 683.85 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 521.20 683.85 Td (2015) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 52.00 671.16 Td (Assets) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 52.00 658.16 Td (Cash and cash-equivalents) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 159.80 658.16 Td (...............................................................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 428.00 658.16 Td ($) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 455.40 658.16 Td (291,470) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 500.00 658.16 Td ($) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 527.40 658.16 Td (480,590) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 52.00 646.16 Td (U.S. Treasury and time deposit securities) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 211.75 646.16 Td (.........................................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 455.40 646.16 Td (757,578) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 527.40 646.16 Td (661,116) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 52.00 633.66 Td (Corporate investments \(includes $107,591 and $67,626 measured at fair value as of December) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 61.00 625.16 Td (31, 2016 and 2015, respectively\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 188.15 625.16 Td (...................................................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 448.30 625.21 Td (1,123,732) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 527.40 625.16 Td (213,988) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 52.00 612.16 Td (Due from affiliates) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 126.75 612.16 Td (.............................................................................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 455.40 612.16 Td (208,643) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 532.15 612.16 Td (35,899) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 52.00 600.16 Td (Deferred tax assets) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 131.45 600.16 Td (...........................................................................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 455.40 600.16 Td (404,614) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 527.40 600.16 Td (425,798) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 52.00 588.16 Td (Other assets) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 105.50 588.16 Td (......................................................................................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 455.40 588.16 Td (237,466) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 527.40 588.16 Td (254,267) Tj ET Q BT /F5 8.50 Tf ET q 0 0 0 rg BT 70.00 576.16 Td (Assets of consolidated funds:) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 428.00 576.16 Td ( ) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 558.00 576.16 Td ( ) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 52.00 564.16 Td (Cash and cash-equivalents) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 159.80 564.16 Td (...............................................................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 455.40 564.16 Td (667,730) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 520.30 564.21 Td (2,850,512) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 52.00 552.16 Td (Investments, at fair value) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 152.75 552.16 Td (..................................................................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 448.30 552.21 Td (3,808,234) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 515.60 552.21 Td (45,179,906) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 52.00 540.16 Td (Dividends and interest receivable) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 183.45 540.16 Td (.....................................................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 460.15 540.16 Td (15,297) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 527.40 540.16 Td (189,693) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 52.00 528.16 Td (Due from brokers) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 124.40 528.16 Td (..............................................................................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 460.15 528.16 Td (98,746) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 527.40 528.16 Td (706,708) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 52.00 516.16 Td (Receivable for securities sold) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 166.90 516.16 Td (............................................................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 460.15 516.16 Td (34,932) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 527.40 516.16 Td (163,799) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 52.00 504.16 Td (Derivative assets, at fair value) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 171.60 504.16 Td (..........................................................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 471.95 504.16 Td (357) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 527.40 504.16 Td (198,351) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 52.00 492.16 Td (Other assets) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 105.50 492.16 Td (......................................................................................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 471.95 492.16 Td (311) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 527.40 492.16 Td (402,104) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 70.00 480.16 Td (Total assets) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 122.00 480.16 Td (...............................................................................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 428.00 480.16 Td ($) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 448.30 480.21 Td (7,649,110) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 500.00 480.16 Td ($) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 515.60 480.21 Td (51,762,731) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 52.00 468.16 Td (Liabilities and Unitholders’ Capital) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 428.00 468.16 Td ( ) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 558.00 468.16 Td ( ) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 52.00 455.16 Td (Liabilities:) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 428.00 455.16 Td ( ) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 558.00 455.16 Td ( ) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 70.00 443.16 Td (Accrued compensation expense) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 195.25 443.16 Td (................................................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 428.00 443.16 Td ($) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 455.40 443.16 Td (284,510) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 500.00 443.16 Td ($) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 527.40 443.16 Td (319,834) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 70.00 431.16 Td (Accounts payable, accrued expenses and other liabilities) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 287.35 431.16 Td (.........................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 455.40 431.16 Td (150,596) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 527.40 431.16 Td (121,934) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 70.00 419.16 Td (Due to affiliates) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 133.85 419.16 Td (..........................................................................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 455.40 419.16 Td (346,543) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 527.40 419.16 Td (356,851) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 70.00 407.16 Td (Debt obligations) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 136.20 407.16 Td (.........................................................................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 455.40 407.16 Td (745,897) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 527.40 407.16 Td (846,354) Tj ET Q BT /F5 8.50 Tf ET q 0 0 0 rg BT 88.00 395.16 Td (Liabilities of consolidated funds:) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 428.00 395.16 Td ( ) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 558.00 395.16 Td ( ) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 70.00 383.16 Td (Accounts payable, accrued expenses and other liabilities) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 287.35 383.16 Td (.........................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 460.15 383.16 Td (11,689) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 527.40 383.16 Td (128,774) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 70.00 371.16 Td (Payables for securities purchased) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 202.35 371.16 Td (.............................................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 455.40 371.16 Td (291,182) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 527.40 371.16 Td (478,437) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 70.00 359.16 Td (Securities sold short, at fair value) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 199.95 359.16 Td (..............................................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 460.15 359.16 Td (41,016) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 532.15 359.16 Td (91,246) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 70.00 347.16 Td (Derivative liabilities, at fair value) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 195.25 347.16 Td (................................................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 464.85 347.21 Td (1,086) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 527.40 347.16 Td (300,208) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 70.00 335.16 Td (Distributions payable) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 155.10 335.16 Td (.................................................................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 464.85 335.21 Td (9,207) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 527.40 335.16 Td (364,773) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 70.00 323.16 Td (Borrowings under credit facilities) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 197.60 323.16 Td (...............................................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 455.40 323.16 Td (483,956) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 520.30 323.21 Td (6,442,742) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 70.00 311.16 Td (Debt obligations of CLOs) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 169.25 311.16 Td (...........................................................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 448.30 311.21 Td (3,054,210) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 520.30 311.21 Td (2,330,359) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 88.00 299.16 Td (Total liabilities) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 145.65 299.16 Td (.....................................................................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 448.30 299.21 Td (5,419,892) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 515.60 299.21 Td (11,781,512) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 52.00 282.16 Td (Commitments and contingencies \(Note 16\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 52.00 264.16 Td (Non-controlling redeemable interests in consolidated funds) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 275.55 264.16 Td (..............................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 455.40 264.16 Td (344,047) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 515.60 264.21 Td (38,173,125) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 52.00 252.16 Td (Unitholders’ capital:) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 428.00 252.16 Td ( ) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 558.00 252.16 Td ( ) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 70.00 239.66 Td (Class A units, no par value, unlimited units authorized, 63,032,276 and 61,969,860 units) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 79.00 231.16 Td (issued and outstanding as of December 31, 2016 and 2015, respectively) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 353.50 231.16 Td (.............................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 477.65 231.16 Td (—) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 549.65 231.16 Td (—) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 70.00 217.66 Td (Class B units, no par value, unlimited units authorized, 91,758,067 and 91,937,873 units) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 79.00 209.16 Td (issued and outstanding as of December 31, 2016 and 2015, respectively) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 353.50 209.16 Td (.............................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 477.65 209.16 Td (—) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 549.65 209.16 Td (—) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 70.00 196.16 Td (Paid-in capital) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 129.10 196.16 Td (............................................................................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 455.40 196.16 Td (749,618) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 527.40 196.16 Td (735,166) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 70.00 184.16 Td (Retained earnings) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 145.65 184.16 Td (.....................................................................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 460.15 184.16 Td (54,494) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 549.65 184.16 Td (—) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 70.00 172.16 Td (Accumulated other comprehensive income \(loss\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 256.65 172.16 Td (......................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 464.85 172.21 Td (1,793) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 534.00 172.16 Td (\(1,216) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 558.15 172.16 Td (\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 88.00 160.16 Td (Class A unitholders’ capital) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 192.90 160.16 Td (.................................................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 455.40 160.16 Td (805,905) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 527.40 160.16 Td (733,950) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 70.00 148.16 Td (Non-controlling interests in consolidated subsidiaries) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 270.80 148.16 Td (................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 448.30 148.21 Td (1,050,319) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 520.30 148.21 Td (1,043,930) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 70.00 136.16 Td (Non-controlling interests in consolidated funds) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 247.20 136.16 Td (..........................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 460.15 136.16 Td (28,947) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 532.15 136.16 Td (30,214) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 88.00 124.16 Td (Total unitholders’ capital) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 183.45 124.16 Td (.....................................................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 448.30 124.21 Td (1,885,171) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 520.30 124.21 Td (1,808,094) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 88.00 112.16 Td (Total liabilities and unitholders’ capital) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 233.05 112.16 Td (................................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 428.00 112.16 Td ($) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 448.30 112.21 Td (7,649,110) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 500.00 112.16 Td ($) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 515.60 112.21 Td (51,762,731) Tj ET Q BT /F1 10.00 Tf ET BT /F5 10.00 Tf ET q 0 0 0 rg BT 152.00 48.35 Td (Please see accompanying notes to consolidated financial statements.) Tj ET Q endstream endobj 257 0 obj <> endobj 258 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (128) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 741.75 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 212.05 729.75 Td (Consolidated Statements of Operations ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 210.95 717.75 Td (\(in thousands, except per unit amounts\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 706.95 Td ( ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 682.45 m 433.5 682.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 682.45 m 441.5 682.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 682.45 m 497.5 682.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 682.45 m 505.5 682.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 682.45 m 561.5 682.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 668.45 m 433.5 668.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 668.45 m 497.5 668.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 668.45 m 561.5 668.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 626.45 m 433.5 626.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 612.45 m 433.5 612.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 626.45 m 497.5 626.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 612.45 m 497.5 612.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 626.45 m 561.5 626.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 612.45 m 561.5 612.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 556.45 m 433.5 556.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 556.45 m 497.5 556.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 556.45 m 561.5 556.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 500.45000000000005 m 433.5 500.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 486.45000000000005 m 433.5 486.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 500.45000000000005 m 497.5 500.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 486.45000000000005 m 497.5 486.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 500.45000000000005 m 561.5 500.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 486.45000000000005 m 561.5 486.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 378.45000000000005 m 433.5 378.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 364.45000000000005 m 433.5 364.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 378.45000000000005 m 497.5 378.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 364.45000000000005 m 497.5 364.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 378.45000000000005 m 561.5 378.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 364.45000000000005 m 561.5 364.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 336.45000000000005 m 433.5 336.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 336.45000000000005 m 497.5 336.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 336.45000000000005 m 561.5 336.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 261.45000000000005 m 433.5 261.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 246.45000000000005 m 433.5 246.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 244.45000000000005 m 433.5 244.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 261.45000000000005 m 497.5 261.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 246.45000000000005 m 497.5 246.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 244.45000000000005 m 497.5 244.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 261.45000000000005 m 561.5 261.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 246.45000000000005 m 561.5 246.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 244.45000000000005 m 561.5 244.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 230.45000000000005 m 433.5 230.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 228.45000000000005 m 433.5 228.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 230.45000000000005 m 497.5 230.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 228.45000000000005 m 497.5 228.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 230.45000000000005 m 561.5 230.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 228.45000000000005 m 561.5 228.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 202.45000000000005 m 433.5 202.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 200.45000000000005 m 433.5 200.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 202.45000000000005 m 497.5 202.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 200.45000000000005 m 497.5 200.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 202.45000000000005 m 561.5 202.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 200.45000000000005 m 561.5 200.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 183.45000000000005 m 433.5 183.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 181.45000000000005 m 433.5 181.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 183.45000000000005 m 497.5 183.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 181.45000000000005 m 497.5 181.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 183.45000000000005 m 561.5 183.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 181.45000000000005 m 561.5 181.45000000000005 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 686.85 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 426.20 686.45 Td (Year Ended December 31,) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 672.85 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 397.20 672.45 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 461.20 672.45 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 525.20 672.45 Td (2014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 658.85 Td (Revenues:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 430.00 658.85 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 658.85 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 644.85 Td (Management fees) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 148.95 644.40 Td (..........................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 380.00 644.85 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 397.45 644.85 Td (774,587) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 444.00 644.85 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 461.45 644.85 Td (195,308) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 508.00 644.85 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 644.85 Td (192,055) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 630.85 Td (Incentive income) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 143.95 630.40 Td (............................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 397.45 630.85 Td (351,159) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 471.45 630.85 Td (6,597) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 630.85 Td (1,839) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 616.85 Td (Total revenues) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 151.45 616.40 Td (.........................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.95 616.85 Td (1,125,746) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 461.45 616.85 Td (201,905) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 616.85 Td (193,894) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 602.85 Td (Expenses:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 430.00 602.85 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 494.00 602.85 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 602.85 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 588.85 Td (Compensation and benefits) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 183.95 588.40 Td (............................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 394.45 588.85 Td (\(389,892) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 430.00 588.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 458.45 588.85 Td (\(416,907) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 494.00 588.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 588.85 Td (\(388,512) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 588.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 574.85 Td (Equity-based compensation) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 186.45 574.40 Td (...........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 399.45 574.85 Td (\(63,724) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 430.00 574.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.45 574.85 Td (\(54,381) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 494.00 574.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 527.45 574.85 Td (\(41,395) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 574.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 560.85 Td (Incentive income compensation) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 201.45 560.40 Td (.....................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 394.45 560.85 Td (\(168,276) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 430.00 560.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 458.45 560.85 Td (\(160,831) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 494.00 560.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 560.85 Td (\(221,194) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 560.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 546.85 Td (Total compensation and benefits expense) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 256.45 546.40 Td (...............................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 394.45 546.85 Td (\(621,892) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 430.00 546.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 458.45 546.85 Td (\(632,119) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 494.00 546.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 546.85 Td (\(651,101) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 546.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 532.85 Td (General and administrative) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 181.45 532.40 Td (.............................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 394.45 532.85 Td (\(145,430) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 430.00 532.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 458.45 532.85 Td (\(110,677) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 494.00 532.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 527.45 532.85 Td (\(99,835) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 532.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 518.85 Td (Depreciation and amortization) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 193.95 518.40 Td (........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 399.45 518.85 Td (\(16,222) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 430.00 518.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.45 518.85 Td (\(14,022) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 494.00 518.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 532.45 518.85 Td (\(8,003) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 518.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 504.85 Td (Consolidated fund expenses) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 188.95 504.40 Td (..........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 404.45 504.85 Td (\(5,792) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 430.00 504.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 458.45 504.85 Td (\(184,090) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 494.00 504.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 504.85 Td (\(188,538) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 504.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 490.85 Td (Total expenses) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 153.95 490.40 Td (........................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 394.45 490.85 Td (\(789,336) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 430.00 490.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 458.45 490.85 Td (\(940,908) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 494.00 490.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 490.85 Td (\(947,477) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 490.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 476.85 Td (Other income \(loss\):) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 430.00 476.85 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 494.00 476.85 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 476.85 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 462.85 Td (Interest expense) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 141.45 462.40 Td (.............................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 394.45 462.85 Td (\(120,610) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 430.00 462.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 458.45 462.85 Td (\(216,799) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 494.00 462.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 462.85 Td (\(129,942) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 462.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 448.85 Td (Interest and dividend income) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 188.95 448.40 Td (..........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 397.45 448.85 Td (165,066) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 453.95 448.85 Td (1,958,802) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.95 448.85 Td (1,902,576) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 434.85 Td (Net realized gain on consolidated funds’ investments) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 283.95 434.40 Td (....................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 402.45 434.85 Td (27,593) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 453.95 434.85 Td (1,177,150) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.95 434.85 Td (2,131,584) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 419.85 Td (Net change in unrealized appreciation \(depreciation\) on consolidated funds’) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 79.00 410.85 Td (investments) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 133.95 410.40 Td (................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 399.45 410.85 Td (\(12,453) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 430.00 410.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 450.95 410.85 Td (\(3,767,527) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 494.00 410.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 410.85 Td (\(993,260) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 410.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 396.85 Td (Investment income) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 151.45 396.40 Td (.........................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 397.45 396.85 Td (199,126) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 466.45 396.85 Td (51,958) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 396.85 Td (33,695) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 382.85 Td (Other income \(expense\), net) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 188.95 382.40 Td (..........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 402.45 382.85 Td (13,490) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 466.45 382.85 Td (20,006) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 382.85 Td (3,018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 368.85 Td (Total other income \(loss\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 191.45 368.40 Td (.........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 397.45 368.85 Td (272,212) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 458.45 368.85 Td (\(776,410) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 494.00 368.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.95 368.85 Td (2,947,671) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 354.85 Td (Income \(loss\) before income taxes) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 193.95 354.40 Td (........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 397.45 354.85 Td (608,622) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 450.95 354.85 Td (\(1,515,413) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 494.00 354.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.95 354.85 Td (2,194,088) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 340.85 Td (Income taxes) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 128.95 340.40 Td (..................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 399.45 340.85 Td (\(42,519) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 430.00 340.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.45 340.85 Td (\(17,549) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 494.00 340.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 527.45 340.85 Td (\(18,536) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 340.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 326.85 Td (Net income \(loss\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 128.95 326.40 Td (..................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 397.45 326.85 Td (566,103) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 450.95 326.85 Td (\(1,532,962) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 494.00 326.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.95 326.85 Td (2,175,552) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 312.85 Td (Less:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 430.00 312.85 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 494.00 312.85 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 312.85 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 298.85 Td (Net \(income\) loss attributable to non-controlling interests in consolidated) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 79.00 289.85 Td (funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 106.40 289.40 Td (...........................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 399.45 289.85 Td (\(22,921) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 430.00 289.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 453.95 289.85 Td (1,809,683) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 514.95 289.85 Td (\(1,649,890) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 289.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 274.85 Td (Net income attributable to non-controlling interests in consolidated) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 79.00 265.85 Td (subsidiaries) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 131.45 265.40 Td (.................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 394.45 265.85 Td (\(348,477) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 430.00 265.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 458.45 265.85 Td (\(205,372) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 494.00 265.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 265.85 Td (\(399,379) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 265.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 249.85 Td (Net income attributable to Oaktree Capital Group, LLC) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 271.45 249.40 Td (.........................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 380.00 249.85 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 397.45 249.85 Td (194,705) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 444.00 249.85 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 466.45 249.85 Td (71,349) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 508.00 249.85 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 249.85 Td (126,283) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 233.85 Td (Distributions declared per Class A unit) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 208.95 233.40 Td (..................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 380.00 233.85 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 412.45 233.85 Td (2.25) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 444.00 233.85 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 476.45 233.85 Td (2.10) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 508.00 233.85 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.45 233.85 Td (3.15) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 219.85 Td (Net income per unit \(basic and diluted\):) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 430.00 219.85 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 494.00 219.85 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 219.85 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 205.85 Td (Net income per Class A unit) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 186.45 205.40 Td (...........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 380.00 205.85 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 412.45 205.85 Td (3.11) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 444.00 205.85 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 476.45 205.85 Td (1.45) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 508.00 205.85 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.45 205.85 Td (2.97) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 186.85 Td (Weighted average number of Class A units outstanding) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 291.45 186.40 Td (.................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 402.45 186.85 Td (62,565) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 466.45 186.85 Td (49,324) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 186.85 Td (42,582) Tj ET Q BT /F1 10.00 Tf ET BT /F5 10.00 Tf ET q 0 0 0 rg BT 152.00 46.15 Td (Please see accompanying notes to consolidated financial statements. ) Tj ET Q endstream endobj 259 0 obj <> endobj 260 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (129) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 741.75 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.65 729.75 Td (Consolidated Statements of Comprehensive Income \(Loss\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 271.55 717.75 Td (\(in thousands\) ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 667.25 m 369.5 667.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 648.25 m 369.5 648.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 667.25 m 433.5 667.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 648.25 m 433.5 648.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 667.25 m 497.5 667.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 648.25 m 497.5 648.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 667.25 m 561.5 667.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 648.25 m 561.5 648.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 596.25 m 369.5 596.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 582.25 m 369.5 582.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 596.25 m 433.5 596.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 582.25 m 433.5 582.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 596.25 m 497.5 596.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 582.25 m 497.5 582.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 596.25 m 561.5 596.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 582.25 m 561.5 582.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 544.25 m 369.5 544.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 522.25 m 369.5 522.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 520.25 m 369.5 520.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 544.25 m 433.5 544.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 522.25 m 433.5 522.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 520.25 m 433.5 520.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 544.25 m 497.5 544.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 522.25 m 497.5 522.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 520.25 m 497.5 520.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 544.25 m 561.5 544.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 522.25 m 561.5 522.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 520.25 m 561.5 520.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 476.25 m 369.5 476.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 476.25 m 433.5 476.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 476.25 m 497.5 476.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 476.25 m 561.5 476.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 424.25 m 369.5 424.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 410.25 m 369.5 410.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 424.25 m 433.5 424.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 410.25 m 433.5 410.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 424.25 m 497.5 424.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 410.25 m 497.5 410.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 424.25 m 561.5 424.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 410.25 m 561.5 410.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 372.25 m 369.5 372.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 350.25 m 369.5 350.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 348.25 m 369.5 348.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 372.25 m 433.5 372.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 350.25 m 433.5 350.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 348.25 m 433.5 348.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 372.25 m 497.5 372.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 350.25 m 497.5 350.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 348.25 m 497.5 348.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 372.25 m 561.5 372.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 350.25 m 561.5 350.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 348.25 m 561.5 348.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 303.25 m 369.5 303.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 303.25 m 433.5 303.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 303.25 m 497.5 303.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 303.25 m 561.5 303.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 251.25 m 369.5 251.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 237.25 m 369.5 237.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 251.25 m 433.5 251.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 237.25 m 433.5 237.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 251.25 m 497.5 251.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 237.25 m 497.5 237.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 251.25 m 561.5 251.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 237.25 m 561.5 237.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 199.25 m 369.5 199.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 177.25 m 369.5 177.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 175.25 m 369.5 175.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 199.25 m 433.5 199.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 177.25 m 433.5 177.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 175.25 m 433.5 175.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 199.25 m 497.5 199.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 177.25 m 497.5 177.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 175.25 m 497.5 175.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 199.25 m 561.5 199.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 177.25 m 561.5 177.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 175.25 m 561.5 175.25 l s BT /F2 7.00 Tf ET 0 0 0 RG /GS0 gs 0.73 w 0 i [] 0 d 1 J 1 j 3 M 52 670.144677734375 m 155.11669921875 670.144677734375 l s q 0 0 0 rg BT 52.00 671.25 Td (Year Ended December 31, 2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 327.95 685.25 Td (Oaktree) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 316.85 678.25 Td (Capital Group,) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 334.15 671.25 Td (LLC) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 397.00 699.25 Td (Non-) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 386.90 692.25 Td (controlling) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 386.30 685.25 Td (Interests in) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 382.80 678.25 Td (Consolidated) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 384.15 671.25 Td (Subsidiaries) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 461.00 699.25 Td (Non-) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 450.90 692.25 Td (controlling) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 450.30 685.25 Td (Interests in) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 446.80 678.25 Td (Consolidated) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 458.50 671.25 Td (Funds) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 524.85 671.25 Td (Total) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 652.65 Td (Net income) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 102.45 652.20 Td (...................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 316.00 652.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 333.45 652.65 Td (194,705) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 380.00 652.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 397.45 652.65 Td (348,477) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 444.00 652.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 466.45 652.65 Td (22,921) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 508.00 652.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 652.65 Td (566,103) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 638.65 Td (Other comprehensive income, net of tax:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 624.65 Td (Foreign-currency translation adjustments) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 234.95 624.20 Td (..............................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 343.45 624.65 Td (2,666) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 407.45 624.65 Td (3,913) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 485.00 624.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 624.65 Td (6,579) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 609.65 Td (Unrealized gain on interest-rate swap designated as cash-) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 79.00 600.65 Td (flow hedge) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 127.45 600.20 Td (.........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 350.95 600.65 Td (343) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 414.95 600.65 Td (504) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 485.00 600.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 542.95 600.65 Td (847) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 586.65 Td (Other comprehensive income, net of tax) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 249.95 586.20 Td (........................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 343.45 586.65 Td (3,009) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 407.45 586.65 Td (4,417) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 485.00 586.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 586.65 Td (7,426) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 572.65 Td (Total comprehensive income) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 169.95 572.20 Td (........................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 333.45 572.65 Td (197,714) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 397.45 572.65 Td (352,894) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 466.45 572.65 Td (22,921) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 572.65 Td (573,529) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 557.65 Td (Less: Comprehensive income attributable to non-controlling) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 79.00 548.65 Td (interests) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 117.45 548.20 Td (.............................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 357.00 548.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 394.45 548.65 Td (\(352,894) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 430.00 548.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.45 548.65 Td (\(22,921) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 494.00 548.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 548.65 Td (\(375,815) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 548.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 534.65 Td (Comprehensive income attributable to Oaktree Capital Group,) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 61.00 525.65 Td (LLC) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 82.45 525.20 Td (...........................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 316.00 525.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 333.45 525.65 Td (197,714) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 380.00 525.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 421.00 525.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 444.00 525.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 485.00 525.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 508.00 525.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 525.65 Td (197,714) Tj ET Q BT /F2 7.00 Tf ET 0 0 0 RG /GS0 gs 0.73 w 0 i [] 0 d 1 J 1 j 3 M 52 498.144677734375 m 155.11669921875 498.144677734375 l s q 0 0 0 rg BT 52.00 499.25 Td (Year Ended December 31, 2015) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 366.00 499.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 430.00 499.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 494.00 499.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 499.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 480.65 Td (Net income \(loss\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 127.45 480.20 Td (.........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 316.00 480.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 338.45 480.65 Td (71,349) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 380.00 480.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 397.45 480.65 Td (205,372) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 444.00 480.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 450.95 480.65 Td (\(1,809,683) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 494.00 480.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 508.00 480.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 514.95 480.65 Td (\(1,532,962) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 480.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 466.65 Td (Other comprehensive income \(loss\), net of tax:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 452.65 Td (Foreign-currency translation adjustments) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 234.95 452.20 Td (..............................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 347.95 452.65 Td (\(621) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 366.00 452.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 404.45 452.65 Td (\(1,589) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 430.00 452.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 485.00 452.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 532.45 452.65 Td (\(2,210) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 452.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 437.65 Td (Unrealized gain on interest-rate swap designated as cash-) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 79.00 428.65 Td (flow hedge) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 127.45 428.20 Td (.........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 350.95 428.65 Td (475) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 414.95 428.65 Td (899) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 485.00 428.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 428.65 Td (1,374) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 414.65 Td (Other comprehensive loss, net of tax) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 237.45 414.20 Td (.............................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 347.95 414.65 Td (\(146) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 366.00 414.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 411.95 414.65 Td (\(690) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 430.00 414.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 485.00 414.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 539.95 414.65 Td (\(836) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 414.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 400.65 Td (Total comprehensive income \(loss\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 194.95 400.20 Td (..............................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 338.45 400.65 Td (71,203) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 397.45 400.65 Td (204,682) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 450.95 400.65 Td (\(1,809,683) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 494.00 400.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 514.95 400.65 Td (\(1,533,798) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 400.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 385.65 Td (Less: Comprehensive \(income\) loss attributable to non-) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 79.00 376.65 Td (controlling interests) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 159.95 376.20 Td (............................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 357.00 376.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 394.45 376.65 Td (\(204,682) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 430.00 376.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 453.95 376.65 Td (1,809,683) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.95 376.65 Td (1,605,001) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 362.65 Td (Comprehensive income attributable to Oaktree Capital Group,) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 61.00 353.65 Td (LLC) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 82.45 353.20 Td (...........................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 316.00 353.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 338.45 353.65 Td (71,203) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 380.00 353.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 421.00 353.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 444.00 353.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 485.00 353.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 508.00 353.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 353.65 Td (71,203) Tj ET Q BT /F2 7.00 Tf ET 0 0 0 RG /GS0 gs 0.73 w 0 i [] 0 d 1 J 1 j 3 M 52 325.144677734375 m 155.11669921875 325.144677734375 l s q 0 0 0 rg BT 52.00 326.25 Td (Year Ended December 31, 2014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 307.65 Td (Net income) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 102.45 307.20 Td (...................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 316.00 307.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 333.45 307.65 Td (126,283) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 380.00 307.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 397.45 307.65 Td (399,379) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 444.00 307.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 453.95 307.65 Td (1,649,890) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 508.00 307.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.95 307.65 Td (2,175,552) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 293.65 Td (Other comprehensive income \(loss\), net of tax:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 494.00 293.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 279.65 Td (Foreign-currency translation adjustments) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 234.95 279.20 Td (..............................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 347.95 279.65 Td (\(489) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 366.00 279.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 404.45 279.65 Td (\(1,204) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 430.00 279.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 485.00 279.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 532.45 279.65 Td (\(1,693) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 279.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 264.65 Td (Unrealized gain on interest-rate swap designated as cash-) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 79.00 255.65 Td (flow hedge) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 127.45 255.20 Td (.........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 350.95 255.65 Td (541) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 407.45 255.65 Td (1,311) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 485.00 255.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 255.65 Td (1,852) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 241.65 Td (Other comprehensive income, net of tax) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 249.95 241.20 Td (........................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 355.95 241.65 Td (52) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 414.95 241.65 Td (107) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 485.00 241.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 542.95 241.65 Td (159) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 227.65 Td (Total comprehensive income) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 169.95 227.20 Td (........................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 333.45 227.65 Td (126,335) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 397.45 227.65 Td (399,486) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 453.95 227.65 Td (1,649,890) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.95 227.65 Td (2,175,711) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 212.65 Td (Less: Comprehensive income attributable to non-controlling) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 79.00 203.65 Td (interests) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 117.45 203.20 Td (.............................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 357.00 203.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 394.45 203.65 Td (\(399,486) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 430.00 203.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 450.95 203.65 Td (\(1,649,890) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 494.00 203.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 514.95 203.65 Td (\(2,049,376) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 203.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 189.65 Td (Comprehensive income attributable to Oaktree Capital Group,) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 61.00 180.65 Td (LLC) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 82.45 180.20 Td (...........................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 316.00 180.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 333.45 180.65 Td (126,335) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 380.00 180.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 421.00 180.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 444.00 180.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 485.00 180.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 508.00 180.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 180.65 Td (126,335) Tj ET Q BT /F1 10.00 Tf ET BT /F5 10.00 Tf ET q 0 0 0 rg BT 152.00 56.75 Td (Please see accompanying notes to consolidated financial statements.) Tj ET Q endstream endobj 261 0 obj <> endobj 262 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (130) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 741.75 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 210.70 729.75 Td (Consolidated Statements of Cash Flows) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 271.55 717.75 Td (\(in thousands\) ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 706.95 Td ( ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 682.45 m 425.5 682.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425.5 682.45 m 433.5 682.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 682.45 m 493.5 682.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 682.45 m 501.5 682.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 682.45 m 561.5 682.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 682.45 m 425.5 682.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 668.45 m 425.5 668.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 682.45 m 493.5 682.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 668.45 m 493.5 668.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 682.45 m 561.5 682.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 668.45 m 561.5 668.45 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 248.45000000000005 m 425.5 248.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 234.45000000000005 m 425.5 234.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 248.45000000000005 m 493.5 248.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 234.45000000000005 m 493.5 234.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 248.45000000000005 m 561.5 248.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 234.45000000000005 m 561.5 234.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 116.45000000000005 m 425.5 116.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 102.45000000000005 m 425.5 102.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 116.45000000000005 m 493.5 116.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 102.45000000000005 m 493.5 102.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 116.45000000000005 m 561.5 116.45000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 102.45000000000005 m 561.5 102.45000000000005 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 686.85 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 420.20 686.45 Td (Year Ended December 31,) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 387.20 672.45 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 455.20 672.45 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 523.20 672.45 Td (2014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 658.85 Td (Cash flows from operating activities:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 368.00 658.85 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 436.00 658.85 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 504.00 658.85 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 644.85 Td (Net income \(loss\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 144.45 644.40 Td (.......................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 368.00 644.85 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.45 644.85 Td (566,103) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 436.00 644.85 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 446.95 644.85 Td (\(1,532,962) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 644.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 504.00 644.85 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.95 644.85 Td (2,175,552) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 629.85 Td (Adjustments to reconcile net income \(loss\) to net cash used in operating) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 79.00 620.85 Td (activities:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 620.85 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 620.85 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 606.85 Td (Investment income) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 169.45 606.40 Td (.............................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 386.45 606.85 Td (\(199,126) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 606.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 459.45 606.85 Td (\(51,958) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 606.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 527.45 606.85 Td (\(33,695) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 606.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 592.85 Td (Depreciation and amortization) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 211.95 592.40 Td (............................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 394.45 592.85 Td (16,222) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.45 592.85 Td (14,022) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 592.85 Td (8,003) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 578.85 Td (Equity-based compensation) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 204.45 578.40 Td (...............................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 394.45 578.85 Td (63,724) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.45 578.85 Td (54,381) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 578.85 Td (41,395) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 563.85 Td (Net realized and unrealized \(gain\) loss from consolidated funds’) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 97.00 554.85 Td (investments) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 149.45 554.40 Td (.....................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 391.45 554.85 Td (\(15,140) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 554.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 449.95 554.85 Td (2,590,377) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 514.95 554.85 Td (\(1,138,324) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 554.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 539.85 Td (Amortization \(accretion\) of original issue and market discount of) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 97.00 530.85 Td (consolidated funds’ investments, net) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 244.45 530.40 Td (...............................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 396.45 530.85 Td (\(6,583) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 530.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 459.45 530.85 Td (\(26,366) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 530.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 532.45 530.85 Td (\(5,910) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 530.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 516.85 Td (Income distributions from corporate investments in funds and) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 97.00 507.85 Td (companies) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 146.95 507.40 Td (......................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.45 507.85 Td (121,421) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.45 507.85 Td (50,252) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 507.85 Td (45,817) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 493.85 Td (Other non-cash items) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 179.45 493.40 Td (.........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 399.45 493.85 Td (4,688) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.45 493.85 Td (15,689) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 493.85 Td (12,042) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 479.85 Td (Cash flows due to changes in operating assets and liabilities:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 479.85 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 479.85 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 465.85 Td (Decrease in deferred tax assets) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 219.45 465.40 Td (.........................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 394.45 465.85 Td (24,578) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.45 465.85 Td (10,645) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 465.85 Td (15,255) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 451.85 Td (\(Increase\) decrease in other assets) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 231.95 451.40 Td (....................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 394.45 451.85 Td (23,833) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.45 451.85 Td (34,349) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 527.45 451.85 Td (\(62,883) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 451.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 437.85 Td (Decrease in net due to affiliates) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 216.95 437.40 Td (..........................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 386.45 437.85 Td (\(105,401) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 437.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 464.45 437.85 Td (\(3,857) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 437.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 527.45 437.85 Td (\(12,908) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 437.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 423.85 Td (Increase \(decrease\) in accrued compensation expense) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 309.45 423.40 Td (.....................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 391.45 423.85 Td (\(34,915) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 423.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.45 423.85 Td (24,948) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 423.85 Td (16,231) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 408.85 Td (Increase \(decrease\) in accounts payable, accrued expenses and) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 97.00 399.85 Td (other liabilities) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 159.45 399.40 Td (.................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 394.45 399.85 Td (33,595) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 459.45 399.85 Td (\(26,537) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 399.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 399.85 Td (43,661) Tj ET Q BT /F5 9.00 Tf ET q 0 0 0 rg BT 70.00 384.85 Td (Cash flows due to changes in operating assets and liabilities of) Tj ET Q BT /F5 9.00 Tf ET q 0 0 0 rg BT 79.00 375.85 Td (consolidated funds:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 375.85 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 375.85 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 361.85 Td (\(Increase\) decrease in dividends and interest receivable) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 314.45 361.40 Td (...................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 396.45 361.85 Td (\(3,122) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 361.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.45 361.85 Td (3,735) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 527.45 361.85 Td (\(33,171) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 361.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 347.85 Td (\(Increase\) decrease in due from brokers) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 251.95 347.40 Td (............................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 394.45 347.85 Td (57,605) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 454.45 347.85 Td (\(100,826) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 347.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 347.85 Td (\(322,119) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 347.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 333.85 Td (\(Increase\) decrease in receivables for securities sold) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 299.45 333.40 Td (.........................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 391.45 333.85 Td (\(21,200) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 333.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.45 333.85 Td (8,018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 333.85 Td (177,130) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 319.85 Td (\(Increase\) decrease in other assets) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 231.95 319.40 Td (....................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 411.95 319.85 Td (25) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 457.45 319.85 Td (224,296) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 319.85 Td (\(171,720) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 319.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 305.85 Td (Increase \(decrease\) in accounts payable, accrued expenses and) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 97.00 296.85 Td (other liabilities) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 159.45 296.40 Td (.................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 396.45 296.85 Td (\(3,367) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 296.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.45 296.85 Td (64,482) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 527.45 296.85 Td (\(32,640) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 296.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 282.85 Td (Increase \(decrease\) in payables for securities purchased) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 316.95 282.40 Td (..................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.45 282.85 Td (149,575) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 454.45 282.85 Td (\(289,294) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 282.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 282.85 Td (\(287,005) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 282.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 268.85 Td (Purchases of securities) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 186.95 268.40 Td (......................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 378.95 268.85 Td (\(3,460,598) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 268.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 441.95 268.85 Td (\(17,994,888) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 268.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 509.95 268.85 Td (\(21,975,014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 268.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 252.85 Td (Proceeds from maturities and sales of securities) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 281.95 252.40 Td (................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 381.95 252.85 Td (2,470,177) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 444.95 252.85 Td (15,988,267) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 512.95 252.85 Td (17,213,767) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 238.85 Td (Net cash used in operating activities) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 236.95 238.40 Td (..................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 386.45 238.85 Td (\(317,906) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 238.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 454.45 238.85 Td (\(943,227) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 238.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 514.95 238.85 Td (\(4,326,536) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 238.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 224.85 Td (Cash flows from investing activities:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 224.85 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 224.85 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 208.85 Td (Purchases of U.S. Treasury and time deposit securities) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 291.95 208.40 Td (............................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 386.45 208.85 Td (\(874,480) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 208.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 454.45 208.85 Td (\(385,642) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 208.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 208.85 Td (\(414,970) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 208.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 194.85 Td (Proceeds from maturities and sales of U.S. Treasury and time deposit) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 79.00 185.85 Td (securities) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 121.95 185.40 Td (................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.45 185.85 Td (778,018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 457.45 185.85 Td (380,055) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 185.85 Td (436,041) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 171.85 Td (Corporate investments in funds and companies) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 261.95 171.40 Td (........................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 386.45 171.85 Td (\(113,464) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 171.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 459.45 171.85 Td (\(82,273) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 171.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 527.45 171.85 Td (\(68,499) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 171.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 157.85 Td (Distributions and proceeds from corporate investments in funds and) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 79.00 148.85 Td (companies) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 129.45 148.40 Td (.............................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.45 148.85 Td (181,769) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.45 148.85 Td (57,954) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 148.85 Td (38,341) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 134.85 Td (Acquisition, net of cash acquired \(Highstar\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 244.45 134.40 Td (...............................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 413.00 134.85 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 481.00 134.85 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 527.45 134.85 Td (\(25,637) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 134.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 120.85 Td (Purchases of fixed assets) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 176.95 120.40 Td (..........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 391.45 120.85 Td (\(70,430) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 120.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 459.45 120.85 Td (\(23,724) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 120.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 532.45 120.85 Td (\(5,005) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 120.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 106.85 Td (Net cash used in investing activities) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 234.45 106.40 Td (...................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 391.45 106.85 Td (\(98,587) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 106.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 459.45 106.85 Td (\(53,630) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 106.85 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 527.45 106.85 Td (\(39,729) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 106.85 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F5 10.00 Tf ET q 0 0 0 rg BT 280.95 84.95 Td (\(continued\)) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 152.00 48.95 Td (Please see accompanying notes to consolidated financial statements.) Tj ET Q endstream endobj 263 0 obj <> endobj 264 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (131) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 741.75 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 177.10 729.75 Td (Consolidated Statements of Cash Flows – \(Continued\) ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 271.55 717.75 Td (\(in thousands\) ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 683.25 m 425.5 683.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425.5 683.25 m 433.5 683.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 683.25 m 493.5 683.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 683.25 m 501.5 683.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 683.25 m 561.5 683.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 683.25 m 425.5 683.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 671.25 m 425.5 671.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 683.25 m 493.5 683.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 671.25 m 493.5 671.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 683.25 m 561.5 683.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 671.25 m 561.5 671.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 419.25 m 425.5 419.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 419.25 m 493.5 419.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 419.25 m 561.5 419.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 405.25 m 425.5 405.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 391.25 m 425.5 391.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 405.25 m 493.5 405.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 391.25 m 493.5 391.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 405.25 m 561.5 405.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 391.25 m 561.5 391.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 349.25 m 425.5 349.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 349.25 m 493.5 349.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 349.25 m 561.5 349.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 349.25 m 425.5 349.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 336.25 m 425.5 336.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 334.25 m 425.5 334.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 349.25 m 493.5 349.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 336.25 m 493.5 336.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 334.25 m 493.5 334.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 349.25 m 561.5 349.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 336.25 m 561.5 336.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 334.25 m 561.5 334.25 l s BT /F1 4.00 Tf ET q 0 0 0 rg BT 52.00 686.63 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 420.20 687.25 Td (Year Ended December 31,) Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 52.00 674.63 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 387.20 675.25 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 455.20 675.25 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 523.20 675.25 Td (2014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 661.65 Td (Cash flows from financing activities:) Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 368.00 660.63 Td ( ) Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 436.00 660.63 Td ( ) Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 504.00 660.63 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 647.65 Td (Proceeds from issuance of debt obligations) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 244.45 647.20 Td (...............................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 368.00 647.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.45 647.65 Td (100,000) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 436.00 647.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 481.00 647.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 504.00 647.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 647.65 Td (500,000) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 633.65 Td (Payment of debt issuance costs) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 201.95 633.20 Td (................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 396.45 633.65 Td (\(1,310) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 633.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 481.00 633.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 532.45 633.65 Td (\(2,296) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 633.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 619.65 Td (Repayments of debt obligations) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 199.45 619.20 Td (.................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 386.45 619.65 Td (\(200,000) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 619.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 481.00 619.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 619.65 Td (\(229,464) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 619.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 605.65 Td (Proceeds from issuance of Class A units) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 234.45 605.20 Td (...................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 413.00 605.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 457.45 605.65 Td (237,820) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 605.65 Td (296,650) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 591.65 Td (Purchase of OCGH units) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 174.45 591.20 Td (...........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 413.00 591.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 454.45 591.65 Td (\(237,820) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 591.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 591.65 Td (\(296,400) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 591.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 577.65 Td (Repurchase and cancellation of units) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 221.95 577.20 Td (........................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 391.45 577.65 Td (\(12,764) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 577.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 464.45 577.65 Td (\(4,926) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 577.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 532.45 577.65 Td (\(2,085) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 577.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 563.65 Td (Distributions to Class A unitholders) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 211.95 563.20 Td (............................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 386.45 563.65 Td (\(141,561) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 563.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 459.45 563.65 Td (\(99,120) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 563.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 563.65 Td (\(131,954) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 563.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 549.65 Td (Distributions to OCGH unitholders) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 209.45 549.20 Td (.............................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 386.45 549.65 Td (\(252,902) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 549.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 454.45 549.65 Td (\(273,534) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 549.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 549.65 Td (\(418,867) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 549.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 535.65 Td (Contributions from non-controlling interests) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 244.45 535.20 Td (...............................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 413.00 535.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.45 535.65 Td (4,000) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 549.00 535.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 521.65 Td (Distributions to non-controlling interests) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 231.95 521.20 Td (....................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 396.45 521.65 Td (\(6,888) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 521.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 464.45 521.65 Td (\(6,493) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 521.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 549.00 521.65 Td (—) Tj ET Q BT /F5 9.00 Tf ET q 0 0 0 rg BT 61.00 507.65 Td (Cash flows from financing activities of consolidated funds:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 368.00 507.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 507.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 507.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 493.65 Td (Contributions from non-controlling interests) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 244.45 493.20 Td (...............................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.45 493.65 Td (144,060) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 449.95 493.65 Td (5,404,333) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.95 493.65 Td (8,260,647) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 479.65 Td (Distributions to non-controlling interests) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 231.95 479.20 Td (....................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 391.45 479.65 Td (\(59,757) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 479.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 446.95 479.65 Td (\(6,633,233) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 479.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 514.95 479.65 Td (\(6,826,094) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 479.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 465.65 Td (Proceeds from debt obligations issued by CLOs) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 264.45 465.20 Td (.......................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.45 465.65 Td (839,448) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 457.45 465.65 Td (982,962) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.95 465.65 Td (1,601,535) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 451.65 Td (Payment of debt issuance costs) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 201.95 451.20 Td (................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 391.45 451.65 Td (\(13,015) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 451.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 459.45 451.65 Td (\(25,156) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 451.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 527.45 451.65 Td (\(29,697) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 451.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 437.65 Td (Borrowings on credit facilities) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 191.95 437.20 Td (....................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 381.95 437.65 Td (1,025,333) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 449.95 437.65 Td (7,682,232) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.95 437.65 Td (7,503,750) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 423.65 Td (Repayments on credit facilities) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 196.95 423.20 Td (..................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 386.45 423.65 Td (\(657,317) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 423.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 446.95 423.65 Td (\(6,038,796) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 423.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 514.95 423.65 Td (\(5,133,389) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 423.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.00 409.65 Td (Net cash provided by financing activities) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 251.95 409.20 Td (............................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.45 409.65 Td (763,327) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 457.45 409.65 Td (992,269) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.95 409.65 Td (5,092,336) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 395.65 Td (Effect of exchange rate changes on cash) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 219.45 395.20 Td (.........................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 396.45 395.65 Td (\(6,546) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 395.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 459.45 395.65 Td (\(12,804) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 395.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 527.45 395.65 Td (\(15,242) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 395.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 381.65 Td (Net increase \(decrease\) in cash and cash-equivalents) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 269.45 381.20 Td (.....................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.45 381.65 Td (340,288) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 459.45 381.65 Td (\(17,392) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 381.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 381.65 Td (710,829) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 367.65 Td (Cash and cash-equivalents, beginning balance) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 241.95 367.20 Td (................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 381.95 367.65 Td (3,331,102) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 449.95 367.65 Td (3,348,494) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.95 367.65 Td (2,637,665) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 353.65 Td (Change in cash and cash-equivalents from adoption of accounting guidance) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 356.95 353.20 Td (..) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 378.95 353.65 Td (\(2,712,190) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.00 353.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 481.00 353.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 549.00 353.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 339.65 Td (Cash and cash-equivalents, ending balance) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 229.45 339.20 Td (.....................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 368.00 339.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.45 339.65 Td (959,200) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 436.00 339.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 449.95 339.65 Td (3,331,102) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 504.00 339.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.95 339.65 Td (3,348,494) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 278.45 296.65 Td (* * *) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 282.65 Td (Supplemental cash flow disclosures:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 436.00 282.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 504.00 282.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 268.65 Td (Cash paid for interest) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 161.95 268.20 Td (................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 368.00 268.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 394.45 268.65 Td (99,740) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 436.00 268.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 457.45 268.65 Td (159,460) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 504.00 268.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 268.65 Td (79,222) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 254.65 Td (Cash paid for income taxes) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 184.45 254.20 Td (.......................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 394.45 254.65 Td (15,178) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.45 254.65 Td (5,586) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 254.65 Td (7,947) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 226.65 Td (Supplemental disclosure of non-cash activities:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 212.65 Td (Issuance of OCGH units related to the Highstar acquisition) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 304.45 212.20 Td (.......................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 368.00 212.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 413.00 212.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 436.00 212.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 481.00 212.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 504.00 212.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 212.65 Td (3,996) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 198.65 Td (Net assets related to the initial consolidation of a fund) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 286.95 198.20 Td (..............................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 394.45 198.65 Td (34,095) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 481.00 198.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 198.65 Td (961,634) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 184.65 Td (Non-controlling interests in consolidated subsidiaries acquired) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 319.45 184.20 Td (.................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 413.00 184.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 481.00 184.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 184.65 Td (72,195) Tj ET Q BT /F1 10.00 Tf ET BT /F5 10.00 Tf ET q 0 0 0 rg BT 153.40 48.75 Td (Please see accompanying notes to consolidated financial statements) Tj ET Q endstream endobj 265 0 obj <> endobj 266 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 387.65 20.25 Td (132) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 330.40 572.75 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 253.20 560.75 Td (Consolidated Statements of Changes in Unitholders’) Tj ET Q q 0 0 0 rg BT 502.67 560.75 Td ( Capital) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.55 548.75 Td (\(in thousands\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 396.00 536.75 Td ( ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356.5 516.25 m 402.5 516.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402.5 516.25 m 406.5 516.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 516.25 m 452.5 516.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 516.25 m 456.5 516.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 516.25 m 502.5 516.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 516.25 m 506.5 516.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 516.25 m 556.5 516.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 556.5 516.25 m 560.5 516.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 560.5 516.25 m 611.5 516.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356.5 489.25 m 402.5 489.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 489.25 m 452.5 489.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 489.25 m 502.5 489.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 489.25 m 556.5 489.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 560.5 489.25 m 611.5 489.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 669.5 489.25 m 719.5 489.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 723.5 489.25 m 773.5 489.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356.5 489.25 m 402.5 489.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 489.25 m 452.5 489.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 489.25 m 502.5 489.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 489.25 m 556.5 489.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 560.5 489.25 m 611.5 489.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 615.5 489.25 m 665.5 489.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 669.5 489.25 m 719.5 489.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 723.5 489.25 m 773.5 489.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356.5 345.25 m 402.5 345.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 345.25 m 452.5 345.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 345.25 m 502.5 345.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 345.25 m 556.5 345.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 560.5 345.25 m 611.5 345.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 615.5 345.25 m 665.5 345.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 669.5 345.25 m 719.5 345.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 723.5 345.25 m 773.5 345.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356.5 217.25 m 402.5 217.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 217.25 m 452.5 217.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 217.25 m 502.5 217.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 217.25 m 556.5 217.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 560.5 217.25 m 611.5 217.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 615.5 217.25 m 665.5 217.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 669.5 217.25 m 719.5 217.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 723.5 217.25 m 773.5 217.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 97.25 m 452.5 97.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 97.25 m 502.5 97.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 97.25 m 556.5 97.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 560.5 97.25 m 611.5 97.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 615.5 97.25 m 665.5 97.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 669.5 97.25 m 719.5 97.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 723.5 97.25 m 773.5 97.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356.5 97.25 m 402.5 97.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356.5 88.25 m 402.5 88.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356.5 86.25 m 402.5 86.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 97.25 m 452.5 97.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 88.25 m 452.5 88.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 86.25 m 452.5 86.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 97.25 m 502.5 97.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 88.25 m 502.5 88.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 86.25 m 502.5 86.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 97.25 m 556.5 97.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 88.25 m 556.5 88.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 86.25 m 556.5 86.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 560.5 97.25 m 611.5 97.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 560.5 88.25 m 611.5 88.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 560.5 86.25 m 611.5 86.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 615.5 97.25 m 665.5 97.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 615.5 88.25 m 665.5 88.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 615.5 86.25 m 665.5 86.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 669.5 97.25 m 719.5 97.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 669.5 88.25 m 719.5 88.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 669.5 86.25 m 719.5 86.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 723.5 97.25 m 773.5 97.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 723.5 88.25 m 773.5 88.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 723.5 86.25 m 773.5 86.25 l s BT /F1 7.00 Tf ET q 0 0 0 rg BT 20.00 518.90 Td ( ) Tj ET Q BT /F2 5.50 Tf ET q 0 0 0 rg BT 447.40 519.75 Td (Oaktree Capital Group, LLC) Tj ET Q BT /F2 5.50 Tf ET q 0 0 0 rg BT 619.50 509.45 Td (Non-controlling) Tj ET Q BT /F2 5.50 Tf ET q 0 0 0 rg BT 625.30 503.95 Td (Interests in) Tj ET Q BT /F2 5.50 Tf ET q 0 0 0 rg BT 622.55 498.45 Td (Consolidated) Tj ET Q BT /F2 5.50 Tf ET q 0 0 0 rg BT 623.60 492.95 Td (Subsidiaries) Tj ET Q BT /F2 5.50 Tf ET q 0 0 0 rg BT 673.50 509.45 Td (Non-controlling) Tj ET Q BT /F2 5.50 Tf ET q 0 0 0 rg BT 679.30 503.95 Td (Interests in) Tj ET Q BT /F2 5.50 Tf ET q 0 0 0 rg BT 676.55 498.45 Td (Consolidated) Tj ET Q BT /F2 5.50 Tf ET q 0 0 0 rg BT 685.75 492.95 Td (Funds) Tj ET Q BT /F2 5.50 Tf ET q 0 0 0 rg BT 741.60 503.95 Td (Total) Tj ET Q BT /F2 5.50 Tf ET q 0 0 0 rg BT 732.10 498.45 Td (Unitholders’) Tj ET Q BT /F2 5.50 Tf ET q 0 0 0 rg BT 738.80 492.95 Td (Capital) Tj ET Q BT /F2 5.50 Tf ET q 0 0 0 rg BT 361.45 492.95 Td (Class A Units) Tj ET Q BT /F2 5.50 Tf ET q 0 0 0 rg BT 411.25 492.95 Td (Class B Units) Tj ET Q BT /F2 5.50 Tf ET q 0 0 0 rg BT 459.85 492.95 Td (Paid-in Capital) Tj ET Q BT /F2 5.50 Tf ET q 0 0 0 rg BT 519.35 509.45 Td (Retained) Tj ET Q BT /F2 5.50 Tf ET q 0 0 0 rg BT 519.20 503.95 Td (Earnings) Tj ET Q BT /F2 5.50 Tf ET q 0 0 0 rg BT 512.80 498.45 Td (\(Accumulated) Tj ET Q BT /F2 5.50 Tf ET q 0 0 0 rg BT 521.65 492.95 Td (Deficit\)) Tj ET Q BT /F2 5.50 Tf ET q 0 0 0 rg BT 568.20 509.45 Td (Accumulated) Tj ET Q BT /F2 5.50 Tf ET q 0 0 0 rg BT 578.15 503.95 Td (Other) Tj ET Q BT /F2 5.50 Tf ET q 0 0 0 rg BT 564.85 498.45 Td (Comprehensive) Tj ET Q BT /F2 5.50 Tf ET q 0 0 0 rg BT 566.85 492.95 Td (Income \(Loss\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 20.00 482.43 Td (Unitholders’ capital as of December 31, 2013) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 144.60 482.43 Td (.............................................................................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 381.60 482.43 Td (38,473) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 428.30 482.43 Td (112,584) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 459.00 482.43 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 478.30 482.43 Td (590,236) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 509.00 482.43 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 530.30 482.43 Td (\(114,905) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 554.00 482.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 563.00 482.43 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 591.95 482.43 Td (\(1,122) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 609.00 482.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 618.00 482.43 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 636.30 482.43 Td (1,234,169) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 672.00 482.43 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 711.00 482.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 726.00 482.43 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 744.30 482.43 Td (1,708,378) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 20.00 474.43 Td (Activity for the year ended December 31, 2014:) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 38.00 466.43 Td (Issuance of Class A units) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 109.60 466.43 Td (..................................................................................................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 384.95 466.43 Td (5,291) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 444.00 466.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 478.30 466.43 Td (296,650) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.00 466.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 603.00 466.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 657.00 466.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 711.00 466.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 749.30 466.43 Td (296,650) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 38.00 458.43 Td (Issuance of Class B units) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 111.25 458.43 Td (.................................................................................................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 394.00 458.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 434.95 458.43 Td (1,891) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 494.00 458.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.00 458.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 603.00 458.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 657.00 458.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 711.00 458.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 765.00 458.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 38.00 450.43 Td (Cancellation of units associated with forfeitures) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 167.95 450.43 Td (...............................................................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 394.00 450.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 441.30 450.43 Td (\(56) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 450.00 450.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 494.00 450.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.00 450.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 603.00 450.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 657.00 450.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 711.00 450.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 765.00 450.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 38.00 442.43 Td (Cancellation of units) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 97.95 442.43 Td (.........................................................................................................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 394.00 442.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 432.95 442.43 Td (\(5,330) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 450.00 442.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 494.00 442.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.00 442.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 603.00 442.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 657.00 442.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 711.00 442.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 765.00 442.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 38.00 434.43 Td (Issuance of OCGH units related to the Highstar acquisition) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 197.95 434.43 Td (.............................................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 394.00 434.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 444.00 434.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 484.95 434.43 Td (1,137) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.00 434.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 603.00 434.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 647.95 434.43 Td (2,859) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 711.00 434.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 755.95 434.43 Td (3,996) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 38.00 426.43 Td (Purchase of OCGH units from OCGH unitholders) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 172.95 426.43 Td (............................................................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 394.00 426.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 444.00 426.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 476.30 426.43 Td (\(296,400) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 500.00 426.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.00 426.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 603.00 426.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 657.00 426.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 711.00 426.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 747.30 426.43 Td (\(296,400) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 771.00 426.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 38.00 418.43 Td (Deferred tax effect resulting from the purchase of OCGH units) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 206.30 418.43 Td (........................................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 394.00 418.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 444.00 418.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 481.60 418.43 Td (13,705) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.00 418.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 603.00 418.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 657.00 418.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 711.00 418.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 752.60 418.43 Td (13,705) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 38.00 410.43 Td (Repurchase and cancellation of units) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 141.25 410.43 Td (...............................................................................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 394.00 410.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 444.00 410.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 494.00 410.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.00 410.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 603.00 410.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 645.95 410.43 Td (\(2,085) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 663.00 410.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 711.00 410.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 753.95 410.43 Td (\(2,085) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 771.00 410.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 38.00 402.43 Td (Non-controlling interests related to the Highstar acquisition) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 197.95 402.43 Td (.............................................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 394.00 402.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 444.00 402.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 494.00 402.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.00 402.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 603.00 402.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 644.60 402.43 Td (72,195) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 711.00 402.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 752.60 402.43 Td (72,195) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 38.00 394.43 Td (Capital contributions) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 97.95 394.43 Td (.........................................................................................................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 394.00 394.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 444.00 394.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 494.00 394.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.00 394.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 603.00 394.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 644.60 394.43 Td (13,810) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 698.60 394.43 Td (51,644) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 752.60 394.43 Td (65,454) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 38.00 386.43 Td (Equity reallocation between controlling and non-controlling interests) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 221.30 386.43 Td (...............................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 394.00 386.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 444.00 386.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 481.60 386.43 Td (51,525) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.00 386.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 603.00 386.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 642.65 386.43 Td (\(51,525) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 663.00 386.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 711.00 386.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 765.00 386.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 38.00 378.43 Td (Capital increase related to equity-based compensation) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 186.30 378.43 Td (....................................................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 394.00 378.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 444.00 378.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 481.60 378.43 Td (11,532) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.00 378.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 603.00 378.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 644.60 378.43 Td (29,729) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 711.00 378.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 752.60 378.43 Td (41,261) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 38.00 370.43 Td (Distributions declared) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 101.25 370.43 Td (.......................................................................................................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 394.00 370.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 444.00 370.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 476.30 370.43 Td (\(131,954) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 500.00 370.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.00 370.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 603.00 370.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 639.30 370.43 Td (\(432,677) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 663.00 370.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 696.65 370.43 Td (\(26,351) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 717.00 370.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 747.30 370.43 Td (\(590,982) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 771.00 370.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 38.00 362.43 Td (Net income) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 74.60 362.43 Td (.......................................................................................................................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 394.00 362.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 444.00 362.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 494.00 362.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 532.30 362.43 Td (126,283) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 603.00 362.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 641.30 362.43 Td (399,379) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 701.95 362.43 Td (2,137) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 749.30 362.43 Td (527,799) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 38.00 354.43 Td (Foreign-currency translation adjustment, net of tax) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 176.25 354.43 Td (..........................................................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 394.00 354.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 444.00 354.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 494.00 354.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.00 354.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 596.95 354.43 Td (\(489) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 609.00 354.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 645.95 354.43 Td (\(1,204) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 663.00 354.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 711.00 354.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 753.95 354.43 Td (\(1,693) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 771.00 354.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 38.00 346.43 Td (Unrealized gain on interest-rate swap designated as cash-flow hedge, net of tax) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 252.95 346.43 Td (............................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 394.00 346.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 444.00 346.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 494.00 346.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.00 346.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 598.95 346.43 Td (541) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 647.95 346.43 Td (1,311) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 711.00 346.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 755.95 346.43 Td (1,852) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 20.00 338.43 Td (Unitholders’ capital as of December 31, 2014) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 144.60 338.43 Td (.............................................................................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 381.60 338.43 Td (43,764) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 428.30 338.43 Td (109,089) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 478.30 338.43 Td (536,431) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 535.60 338.43 Td (11,378) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 591.95 338.43 Td (\(1,070) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 609.00 338.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 636.30 338.43 Td (1,265,961) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 698.60 338.43 Td (27,430) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 744.30 338.43 Td (1,840,130) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 20.00 330.43 Td (Activity for the year ended December 31, 2015:) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 38.00 322.43 Td (Issuance of Class A units) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 109.60 322.43 Td (..................................................................................................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 381.60 322.43 Td (18,231) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 444.00 322.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 478.30 322.43 Td (237,820) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.00 322.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 603.00 322.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 657.00 322.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 711.00 322.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 749.30 322.43 Td (237,820) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 38.00 314.43 Td (Issuance of Class B units) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 111.25 314.43 Td (.................................................................................................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 394.00 314.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 434.95 314.43 Td (1,338) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 494.00 314.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.00 314.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 603.00 314.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 657.00 314.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 711.00 314.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 765.00 314.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 38.00 306.43 Td (Cancellation of units associated with forfeitures) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 167.95 306.43 Td (...............................................................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 391.30 306.43 Td (\(25) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 400.00 306.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 437.95 306.43 Td (\(135) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 450.00 306.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 494.00 306.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.00 306.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 603.00 306.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 657.00 306.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 711.00 306.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 765.00 306.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 38.00 298.43 Td (Cancellation of units) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 97.95 298.43 Td (.........................................................................................................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 394.00 298.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 429.65 298.43 Td (\(18,354) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 450.00 298.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 494.00 298.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.00 298.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 603.00 298.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 657.00 298.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 711.00 298.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 765.00 298.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 38.00 290.43 Td (Purchase of OCGH units from OCGH unitholders) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 172.95 290.43 Td (............................................................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 394.00 290.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 444.00 290.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 476.30 290.43 Td (\(237,820) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 500.00 290.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.00 290.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 603.00 290.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 657.00 290.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 711.00 290.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 747.30 290.43 Td (\(237,820) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 771.00 290.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 38.00 282.43 Td (Deferred tax effect resulting from the purchase of OCGH units) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 206.30 282.43 Td (........................................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 394.00 282.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 444.00 282.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 481.60 282.43 Td (16,606) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.00 282.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 603.00 282.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 657.00 282.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 711.00 282.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 752.60 282.43 Td (16,606) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 38.00 274.43 Td (Repurchase and cancellation of units) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 141.25 274.43 Td (...............................................................................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 394.00 274.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 444.00 274.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 494.00 274.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.00 274.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 603.00 274.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 645.95 274.43 Td (\(4,926) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 663.00 274.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 711.00 274.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 753.95 274.43 Td (\(4,926) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 771.00 274.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 38.00 266.43 Td (Capital contributions) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 97.95 266.43 Td (.........................................................................................................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 394.00 266.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 444.00 266.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 494.00 266.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.00 266.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 603.00 266.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 647.95 266.43 Td (4,000) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 701.95 266.43 Td (2,880) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 755.95 266.43 Td (6,880) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 38.00 258.43 Td (Equity reallocation between controlling and non-controlling interests) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 221.30 258.43 Td (...............................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 394.00 258.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 444.00 258.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 478.30 258.43 Td (181,539) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.00 258.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 603.00 258.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 639.30 258.43 Td (\(181,539) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 663.00 258.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 711.00 258.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 765.00 258.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 38.00 250.43 Td (Capital increase related to equity-based compensation) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 186.30 250.43 Td (....................................................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 394.00 250.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 444.00 250.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 481.60 250.43 Td (16,983) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.00 250.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 603.00 250.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 644.60 250.43 Td (35,779) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 711.00 250.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 752.60 250.43 Td (52,762) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 38.00 242.43 Td (Distributions declared) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 101.25 242.43 Td (.......................................................................................................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 394.00 242.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 444.00 242.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 479.65 242.43 Td (\(16,393) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 500.00 242.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 533.65 242.43 Td (\(82,727) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 554.00 242.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 603.00 242.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 639.30 242.43 Td (\(280,027) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 663.00 242.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 699.95 242.43 Td (\(2,952) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 717.00 242.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 747.30 242.43 Td (\(382,099) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 771.00 242.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 38.00 234.43 Td (Net income) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 74.60 234.43 Td (.......................................................................................................................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 394.00 234.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 444.00 234.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 494.00 234.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 535.60 234.43 Td (71,349) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 603.00 234.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 641.30 234.43 Td (205,372) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 701.95 234.43 Td (2,856) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 749.30 234.43 Td (279,577) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 38.00 226.43 Td (Foreign-currency translation adjustment, net of tax) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 176.25 226.43 Td (..........................................................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 394.00 226.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 444.00 226.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 494.00 226.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.00 226.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 596.95 226.43 Td (\(621) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 609.00 226.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 645.95 226.43 Td (\(1,589) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 663.00 226.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 711.00 226.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 753.95 226.43 Td (\(2,210) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 771.00 226.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 38.00 218.43 Td (Unrealized gain on interest-rate swap designated as cash-flow hedge, net of tax) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 252.95 218.43 Td (............................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 394.00 218.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 444.00 218.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 494.00 218.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.00 218.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 598.95 218.43 Td (475) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 652.95 218.43 Td (899) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 711.00 218.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 755.95 218.43 Td (1,374) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 20.00 210.43 Td (Unitholders’ capital as of December 31, 2015) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 144.60 210.43 Td (.............................................................................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 381.60 210.43 Td (61,970) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 431.60 210.43 Td (91,938) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 478.30 210.43 Td (735,166) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.00 210.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 591.95 210.43 Td (\(1,216) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 609.00 210.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 636.30 210.43 Td (1,043,930) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 698.60 210.43 Td (30,214) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 744.30 210.43 Td (1,808,094) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 20.00 202.43 Td (Activity for the year ended December 31, 2016:) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 38.00 194.43 Td (Cumulative-effect adjustment from adoption of accounting guidance) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 221.30 194.43 Td (...............................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 394.00 194.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 444.00 194.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 479.65 194.43 Td (\(12,912) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 500.00 194.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.00 194.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 603.00 194.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 639.30 194.43 Td (\(109,709) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 663.00 194.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 711.00 194.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 747.30 194.43 Td (\(122,621) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 771.00 194.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 38.00 186.43 Td (Issuance of Class A units) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 109.60 186.43 Td (..................................................................................................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 384.95 186.43 Td (1,420) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 444.00 186.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 494.00 186.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.00 186.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 603.00 186.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 657.00 186.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 711.00 186.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 765.00 186.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 38.00 178.43 Td (Issuance of Class B units) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 111.25 178.43 Td (.................................................................................................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 394.00 178.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 439.95 178.43 Td (630) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 494.00 178.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.00 178.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 603.00 178.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 657.00 178.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 711.00 178.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 765.00 178.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 38.00 170.43 Td (Cancellation of units associated with forfeitures) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 167.95 170.43 Td (...............................................................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 387.95 170.43 Td (\(108) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 400.00 170.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 437.95 170.43 Td (\(207) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 450.00 170.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 494.00 170.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.00 170.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 603.00 170.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 657.00 170.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 711.00 170.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 765.00 170.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 38.00 162.43 Td (Cancellation of units) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 97.95 162.43 Td (.........................................................................................................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 387.95 162.43 Td (\(250) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 400.00 162.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 437.95 162.43 Td (\(603) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 450.00 162.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 494.00 162.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.00 162.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 603.00 162.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 657.00 162.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 711.00 162.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 765.00 162.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 38.00 154.43 Td (Deferred tax effect resulting from the purchase of OCGH units) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 206.30 154.43 Td (........................................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 394.00 154.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 444.00 154.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 489.95 154.43 Td (745) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.00 154.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 603.00 154.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 657.00 154.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 711.00 154.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 760.95 154.43 Td (745) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 38.00 146.43 Td (Repurchase and cancellation of units) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 141.25 146.43 Td (...............................................................................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 394.00 146.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 444.00 146.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 479.65 146.43 Td (\(12,200) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 500.00 146.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.00 146.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 603.00 146.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 650.95 146.43 Td (\(564) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 663.00 146.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 711.00 146.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 750.65 146.43 Td (\(12,764) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 771.00 146.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 38.00 138.43 Td (Equity reallocation between controlling and non-controlling interests) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 221.30 138.43 Td (...............................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 394.00 138.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 444.00 138.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 481.60 138.43 Td (14,388) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.00 138.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 603.00 138.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 642.65 138.43 Td (\(14,388) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 663.00 138.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 711.00 138.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 765.00 138.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 38.00 130.43 Td (Capital increase related to equity-based compensation) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 186.30 130.43 Td (....................................................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 394.00 130.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 444.00 130.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 481.60 130.43 Td (25,781) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.00 130.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 603.00 130.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 644.60 130.43 Td (37,946) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 711.00 130.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 752.60 130.43 Td (63,727) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 38.00 122.43 Td (Distributions declared) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 101.25 122.43 Td (.......................................................................................................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 394.00 122.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 444.00 122.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 482.95 122.43 Td (\(1,350) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 500.00 122.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 530.30 122.43 Td (\(140,211) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 554.00 122.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 603.00 122.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 639.30 122.43 Td (\(259,790) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 663.00 122.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 699.95 122.43 Td (\(3,200) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 717.00 122.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 747.30 122.43 Td (\(404,551) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 771.00 122.43 Td (\)) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 38.00 114.43 Td (Net income) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 74.60 114.43 Td (.......................................................................................................................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 394.00 114.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 444.00 114.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 494.00 114.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 532.30 114.43 Td (194,705) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 603.00 114.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 641.30 114.43 Td (348,477) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 701.95 114.43 Td (1,933) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 749.30 114.43 Td (545,115) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 38.00 106.43 Td (Foreign-currency translation adjustment, net of tax) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 176.25 106.43 Td (..........................................................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 394.00 106.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 444.00 106.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 494.00 106.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.00 106.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 593.95 106.43 Td (2,666) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 647.95 106.43 Td (3,913) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 711.00 106.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 755.95 106.43 Td (6,579) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 38.00 98.43 Td (Unrealized gain on interest-rate swap designated as cash-flow hedge, net of tax) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 252.95 98.43 Td (............................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 394.00 98.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 444.00 98.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 494.00 98.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 548.00 98.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 598.95 98.43 Td (343) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 652.95 98.43 Td (504) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 711.00 98.43 Td (—) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 760.95 98.43 Td (847) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 20.00 90.38 Td (Unitholders’ capital as of December 31, 2016) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 144.60 90.38 Td (.............................................................................................................................) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 381.60 90.38 Td (63,032) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 431.60 90.38 Td (91,758) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 459.00 90.38 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 478.30 90.38 Td (749,618) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 509.00 90.38 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 535.60 90.38 Td (54,494) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 563.00 90.38 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 593.95 90.38 Td (1,793) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 618.00 90.38 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 636.30 90.38 Td (1,050,319) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 672.00 90.38 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 698.60 90.38 Td (28,947) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 726.00 90.38 Td ($) Tj ET Q BT /F3 6.00 Tf ET q 0 0 0 rg BT 744.30 90.38 Td (1,885,171) Tj ET Q BT /F1 10.00 Tf ET BT /F5 10.00 Tf ET q 0 0 0 rg BT 242.00 39.75 Td (Please see accompanying notes to consolidated financial statements. ) Tj ET Q endstream endobj 267 0 obj <> endobj 268 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 201.50 760.25 Td (Notes to Consolidated Financial Statements ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (133) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 691.75 Td (1. ORGANIZA) Tj ET Q q 0 0 0 rg BT 113.21 691.75 Td (TION ) Tj ET Q q 0 0 0 rg BT 139.50 691.75 Td (AND BASIS OF PRESENT) Tj ET Q q 0 0 0 rg BT 260.44 691.75 Td (A) Tj ET Q q 0 0 0 rg BT 266.92 691.75 Td (TION ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 670.75 Td (Oaktree Capital Group, LLC \(together with its subsidiaries, “Oaktree” or the “Company”\) is a leader among ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 658.75 Td (global investment managers specializing in alternative investments. Oaktree emphasizes an opportunistic, value-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 646.75 Td (oriented and risk-controlled approach to investments in distressed debt, corporate debt \(including high yield debt ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 634.75 Td (and senior loans\), control investing, convertible securities, real estate and listed equities. Funds managed by ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 622.75 Td (Oaktree \(the “Oaktree funds”\) include commingled funds, separate accounts and collateralized loan obligation ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 610.75 Td (vehicles \(“CLOs”\). Commingled funds include open-end and closed-end limited partnerships in which the Company ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 598.75 Td (makes an investment and for which it serves as the general partner) Tj ET Q q 0 0 0 rg BT 346.32 598.75 Td (. CLOs are structured finance vehicles in which ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 586.75 Td (the Company typically makes an investment and for which it serves as collateral manager) Tj ET Q q 0 0 0 rg BT 444.69 586.75 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 565.75 Td (Oaktree Capital Group, LLC is a Delaware limited liability company that was formed on ) Tj ET Q q 0 0 0 rg BT 470.68 565.75 Td (April 13, 2007. ) Tj ET Q q 0 0 0 rg BT 540.54 565.75 Td (The ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 553.75 Td (Company is owned by its Class ) Tj ET Q q 0 0 0 rg BT 190.67 553.75 Td (A) Tj ET Q q 0 0 0 rg BT 196.79 553.75 Td ( and Class B unitholders. Oaktree Capital Group Holdings GP) Tj ET Q q 0 0 0 rg BT 471.19 553.75 Td (, LLC acts as the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 541.75 Td (Company’) Tj ET Q q 0 0 0 rg BT 94.34 541.75 Td (s manager and is the general partner of Oaktree Capital Group Holdings, L.P) Tj ET Q q 0 0 0 rg BT 433.24 541.75 Td (. \(“OCGH”\), which owns ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 529.75 Td (100%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 75.08 529.75 Td ( of the Company’) Tj ET Q q 0 0 0 rg BT 150.49 529.75 Td (s outstanding Class B units. OCGH is owned by the Company’) Tj ET Q q 0 0 0 rg BT 429.33 529.75 Td (s senior executives, current ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 517.75 Td (and former employees, and certain other investors \(collectively) Tj ET Q q 0 0 0 rg BT 326.11 517.75 Td (, the “OCGH unitholders”\). ) Tj ET Q q 0 0 0 rg BT 448.19 517.75 Td (The Company’) Tj ET Q q 0 0 0 rg BT 513.04 517.75 Td (s ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 505.75 Td (operations are conducted through a group of operating entities collectively referred to as the “Oaktree Operating ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 493.75 Td (Group.” OCGH has a direct economic interest in the Oaktree Operating Group and the Company has an indirect ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 481.75 Td (economic interest in the Oaktree Operating Group. ) Tj ET Q q 0 0 0 rg BT 278.88 481.75 Td (The interests in the Oaktree Operating Group are referred to as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 469.75 Td (the “Oaktree Operating Group units.” ) Tj ET Q q 0 0 0 rg BT 217.36 469.75 Td (An Oaktree Operating Group unit is not a separate legal interest but ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 457.75 Td (represents ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 99.52 457.75 Td (one) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 116.21 457.75 Td ( limited partnership interest in each of the Oaktree Operating Group entities. Class ) Tj ET Q q 0 0 0 rg BT 484.73 457.75 Td (A) Tj ET Q q 0 0 0 rg BT 490.85 457.75 Td ( units are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 445.75 Td (entitled to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.64 445.75 Td (one) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.33 445.75 Td ( vote per unit. Class B units are entitled to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 302.98 445.75 Td (ten) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 316.88 445.75 Td ( votes per unit and do not represent an economic ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 433.75 Td (interest in the Company) Tj ET Q q 0 0 0 rg BT 154.37 433.75 Td (. ) Tj ET Q q 0 0 0 rg BT 162.52 433.75 Td (The number of Class B units held by OCGH increases or decreases in response to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 421.75 Td (corresponding changes in OCGH’) Tj ET Q q 0 0 0 rg BT 198.84 421.75 Td (s economic interest in the Oaktree Operating Group; consequently) Tj ET Q q 0 0 0 rg BT 491.59 421.75 Td (, the OCGH ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 409.75 Td (unitholders’) Tj ET Q q 0 0 0 rg BT 100.27 409.75 Td ( economic interest in the Oaktree Operating Group is reflected within non-controlling interests in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 397.75 Td (consolidated subsidiaries in the accompanying consolidated financial statements.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 376.75 Td (Basis of Presentation ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 360.25 Td (The accompanying consolidated financial statements are prepared in accordance with accounting principles ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 348.25 Td (generally accepted in the United States of ) Tj ET Q q 0 0 0 rg BT 236.84 348.25 Td (America \(“GAAP”\). ) Tj ET Q q 0 0 0 rg BT 325.56 348.25 Td (The consolidated financial statements include the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 336.25 Td (accounts of the Company) Tj ET Q q 0 0 0 rg BT 162.16 336.25 Td (, its wholly-owned or majority-owned subsidiaries and entities in which the Company is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 324.25 Td (deemed to have a direct or indirect controlling financial interest based on either a variable interest model or voting ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 312.25 Td (interest model. Certain of the Oaktree funds consolidated by the Company are investment companies that follow a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 300.25 Td (specialized basis of accounting established by GAAP) Tj ET Q q 0 0 0 rg BT 283.35 300.25 Td (. ) Tj ET Q q 0 0 0 rg BT 291.13 300.25 Td (All intercompany transactions and balances have been ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 288.25 Td (eliminated in consolidation.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 261.25 Td (2. SUMMAR) Tj ET Q q 0 0 0 rg BT 105.24 261.25 Td (Y) Tj ET Q q 0 0 0 rg BT 111.73 261.25 Td ( OF SIGNIFICANT ) Tj ET Q q 0 0 0 rg BT 197.47 261.25 Td (ACCOUNTING POLICIES ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 235.75 Td (Use of Estimates ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 219.25 Td (The preparation of the consolidated financial statements in accordance with GAAP) Tj ET Q q 0 0 0 rg BT 449.97 219.25 Td ( requires the Company to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 207.25 Td (make estimates and assumptions that af) Tj ET Q q 0 0 0 rg BT 228.30 207.25 Td (fect the reported amounts of assets and liabilities as of the date of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 195.25 Td (consolidated financial statements, as well as the reported amounts of income and expenses during the period then ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 183.25 Td (ended. ) Tj ET Q q 0 0 0 rg BT 85.09 183.25 Td (Actual results could dif) Tj ET Q q 0 0 0 rg BT 184.96 183.25 Td (fer from these estimates. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 157.75 Td (Accounting Policies of the Company) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 136.75 Td (Consolidation ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 120.25 Td (In February 2015, the Financial ) Tj ET Q q 0 0 0 rg BT 226.14 120.25 Td (Accounting Standards Board \(“F) Tj ET Q q 0 0 0 rg BT 368.44 120.25 Td (ASB”\) amended its consolidation guidance, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 108.25 Td (which changed the way a reporting entity should evaluate limited partnerships and similar entities for consolidation, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 96.25 Td (how a decision maker) Tj ET Q q 0 0 0 rg BT 146.58 96.25 Td (’) Tj ET Q q 0 0 0 rg BT 148.63 96.25 Td (s fees af) Tj ET Q q 0 0 0 rg BT 186.24 96.25 Td (fect the consolidation analysis, and how interests held by related parties af) Tj ET Q q 0 0 0 rg BT 515.14 96.25 Td (fect the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 84.25 Td (consolidation analysis. ) Tj ET Q q 0 0 0 rg BT 154.93 84.25 Td (The Company adopted this guidance as of January 1, 2016 under the modified ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 72.25 Td (retrospective approach, which did not require prior periods to be recast. In connection with the adoption, the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 60.25 Td (Company reevaluated all of its investment vehicles and other legal entities for consolidation and, as of January 1, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 48.25 Td (2016, deconsolidated substantially all of its previously consolidated investment funds because those funds, which ) Tj ET Q endstream endobj 269 0 obj <> endobj 270 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (134) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 712.75 Td (had previously been evaluated as voting interest entities, became variable interest entities \(“VIEs”\) under the new ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 700.75 Td (consolidation guidance. ) Tj ET Q q 0 0 0 rg BT 159.40 700.75 Td (The Company is not the primary beneficiary of these VIEs because its fee arrangements ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 688.75 Td (are not deemed to be variable interests, and it does not hold any other interests in those funds that are considered ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 676.75 Td (to be more than insignificant. ) Tj ET Q q 0 0 0 rg BT 182.73 676.75 Td (The adoption resulted in a reduction to total consolidated assets, liabilities, non-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 664.75 Td (controlling redeemable interests in consolidated funds and unitholders' capital as of January 1, 2016 of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 505.58 664.75 Td ($45.7 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 558.96 664.75 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 652.75 Td ($7.6 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 97.31 652.75 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 102.87 652.75 Td ($38.0 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 156.24 652.75 Td ( and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 178.48 652.75 Td ($90.6 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 234.63 652.75 Td (, respectively) Tj ET Q q 0 0 0 rg BT 292.24 652.75 Td (. ) Tj ET Q q 0 0 0 rg BT 300.39 652.75 Td (There was no impact on retained earnings or net income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 640.75 Td (attributable to the Company) Tj ET Q q 0 0 0 rg BT 171.61 640.75 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 619.75 Td (The Company consolidates entities in which it has a direct or indirect controlling financial interest based on ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 607.75 Td (either a variable interest model or voting interest model. ) Tj ET Q q 0 0 0 rg BT 300.74 607.75 Td (A) Tj ET Q q 0 0 0 rg BT 306.86 607.75 Td ( limited partnership or similar entity is a VIE if the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 595.75 Td (unaf) Tj ET Q q 0 0 0 rg BT 68.78 595.75 Td (filiated limited partners do not have substantive kick-out or participating rights. Most of the Oaktree funds are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 583.75 Td (VIEs because they have not granted unaf) Tj ET Q q 0 0 0 rg BT 232.78 583.75 Td (filiated limited partners substantive kick-out or participating rights. ) Tj ET Q q 0 0 0 rg BT 527.18 583.75 Td (The ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 571.75 Td (Company consolidates all VIEs in which it is the primary beneficiary) Tj ET Q q 0 0 0 rg BT 347.22 571.75 Td (. ) Tj ET Q q 0 0 0 rg BT 355.00 571.75 Td (An entity is deemed to be the primary ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 559.75 Td (beneficiary if it holds a controlling financial interest. ) Tj ET Q q 0 0 0 rg BT 279.62 559.75 Td (A) Tj ET Q q 0 0 0 rg BT 285.74 559.75 Td ( controlling financial interest is defined as \(a\) the power to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 547.75 Td (direct the activities of a VIE that most significantly impact the entity’) Tj ET Q q 0 0 0 rg BT 346.12 547.75 Td (s economic performance and \(b\) the obligation ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 535.75 Td (to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 523.75 Td (VIE. ) Tj ET Q q 0 0 0 rg BT 73.77 523.75 Td (The consolidation guidance requires an analysis to determine \(a\) whether an entity in which the Company ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 511.75 Td (holds a variable interest is a VIE and \(b\) whether the Company’) Tj ET Q q 0 0 0 rg BT 329.47 511.75 Td (s involvement, through holding interests directly or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 499.75 Td (indirectly in the entity or contractually through other variable interests \(e.g., management and performance-based ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 487.75 Td (fees\), would give it a controlling financial interest. ) Tj ET Q q 0 0 0 rg BT 271.84 487.75 Td (A) Tj ET Q q 0 0 0 rg BT 277.96 487.75 Td ( decision maker) Tj ET Q q 0 0 0 rg BT 348.36 487.75 Td (’) Tj ET Q q 0 0 0 rg BT 350.40 487.75 Td (s fee arrangement is not considered a variable ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 475.75 Td (interest if it is compensation for services provided, commensurate with the level of ef) Tj ET Q q 0 0 0 rg BT 422.26 475.75 Td (fort required to provide those ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 463.75 Td (services and part of a compensation arrangement that includes only terms, conditions or amounts that are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 451.75 Td (customarily present in arrangements for similar services negotiated at arm’) Tj ET Q q 0 0 0 rg BT 379.45 451.75 Td (s length \(“at-market”\), and the decision ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 439.75 Td (maker does not hold any other variable interests that absorb more than an insignificant amount of the potential ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 427.75 Td (VIE’) Tj ET Q q 0 0 0 rg BT 67.66 427.75 Td (s expected residual returns.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 406.75 Td (The Company determines whether it is the primary beneficiary of a VIE at the time it becomes involved with ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 394.75 Td (a VIE and reconsiders that conclusion at each reporting date. In evaluating whether the Company is the primary ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 382.75 Td (beneficiary) Tj ET Q q 0 0 0 rg BT 97.12 382.75 Td (, the Company evaluates its economic interests in the entity held either directly by the Company or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 370.75 Td (indirectly through related parties. ) Tj ET Q q 0 0 0 rg BT 199.95 370.75 Td (The consolidation analysis can generally be performed qualitatively; however) Tj ET Q q 0 0 0 rg BT 539.59 370.75 Td (, if it ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 358.75 Td (is not readily apparent that the Company is not the primary beneficiary) Tj ET Q q 0 0 0 rg BT 359.48 358.75 Td (, a quantitative analysis may also be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 346.75 Td (performed. Investments and redemptions \(either by the Company) Tj ET Q q 0 0 0 rg BT 340.57 346.75 Td (, af) Tj ET Q q 0 0 0 rg BT 354.29 346.75 Td (filiates of the Company or third parties\) or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 334.75 Td (amendments to the governing documents of the respective Oaktree funds could af) Tj ET Q q 0 0 0 rg BT 412.86 334.75 Td (fect an entity’) Tj ET Q q 0 0 0 rg BT 471.60 334.75 Td (s status as a VIE or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 322.75 Td (the determination of the primary beneficiary) Tj ET Q q 0 0 0 rg BT 241.08 322.75 Td (. Please see note 4 for more information regarding VIEs. For entities ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 310.75 Td (that are not VIEs, the Company evaluates those entities that it controls through a majority voting interest model. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 289.75 Td (“Consolidated funds” refers to Oaktree-managed funds and CLOs that Oaktree is required to consolidate. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 277.75 Td (When funds or CLOs are consolidated, the Company reflects the assets, liabilities, revenues, expenses and cash ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 265.75 Td (flows of the funds or CLOs on a gross basis, and the majority of the economic interests in those funds or CLOs, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 253.75 Td (which are held by third-party investors, are reflected as non-controlling interests in consolidated funds or debt ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 241.75 Td (obligations of CLOs in the consolidated financial statements. ) Tj ET Q q 0 0 0 rg BT 321.88 241.75 Td (All of the revenues earned by the Company as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 229.75 Td (investment manager of the consolidated funds are eliminated in consolidation. However) Tj ET Q q 0 0 0 rg BT 438.62 229.75 Td (, because the eliminated ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 217.75 Td (amounts are earned from and funded by third-party investors, the consolidation of a fund does not impact net ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 205.75 Td (income or loss attributable to the Company) Tj ET Q q 0 0 0 rg BT 238.86 205.75 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 184.75 Td (Certain entities in which the Company has the ability to exert significant influence, including unconsolidated ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 172.75 Td (Oaktree funds for which the Company acts as general partner) Tj ET Q q 0 0 0 rg BT 321.87 172.75 Td (, are accounted for under the equity method of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 160.75 Td (accounting.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 139.75 Td (Non-controlling Redeemable Interests in Consolidated Funds) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 118.75 Td (The Company records non-controlling interests to reflect the economic interests of the unaf) Tj ET Q q 0 0 0 rg BT 487.19 118.75 Td (filiated limited ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 106.75 Td (partners. ) Tj ET Q q 0 0 0 rg BT 94.34 106.75 Td (These interests are presented as non-controlling redeemable interests in consolidated funds within the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 94.75 Td (consolidated statements of financial condition, outside of the permanent capital section. Limited partners in open-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 82.75 Td (end and evergreen funds generally have the right to withdraw their capital, subject to the terms of the respective ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 70.75 Td (limited partnership agreements, over periods ranging from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 309.07 70.75 Td (one month) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 356.33 70.75 Td ( to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 370.22 70.75 Td (three years) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 420.25 70.75 Td (. While limited partners in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 58.75 Td (consolidated closed-end funds generally have not been granted redemption rights, these limited partners do have ) Tj ET Q endstream endobj 271 0 obj <> endobj 272 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (135) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 712.75 Td (withdrawal or redemption rights in certain limited circumstances that are beyond the control of the Company) Tj ET Q q 0 0 0 rg BT 524.54 712.75 Td (, such ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 700.75 Td (as instances in which retaining the limited partnership interest could cause the limited partner to violate a law) Tj ET Q q 0 0 0 rg BT 529.20 700.75 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 688.75 Td (regulation or rule.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 667.75 Td (The allocation of net income or loss to non-controlling redeemable interests in consolidated funds is based ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 655.75 Td (on the relative ownership interests of the unaf) Tj ET Q q 0 0 0 rg BT 251.11 655.75 Td (filiated limited partners after the consideration of contractual ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 643.75 Td (arrangements that govern allocations of income or loss. ) Tj ET Q q 0 0 0 rg BT 300.19 643.75 Td (At the consolidated level, potential incentives are allocated ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 631.75 Td (to non-controlling redeemable interests in consolidated funds until such incentives become allocable to the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 619.75 Td (Company under the substantive contractual terms of the limited partnership agreements of the funds.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 598.75 Td (Non-controlling Interests in Consolidated Funds) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 577.75 Td (Non-controlling interests in consolidated funds represent the equity interests held by third-party investors in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 565.75 Td (CLOs that had not yet priced as of the respective period end. ) Tj ET Q q 0 0 0 rg BT 324.11 565.75 Td (All non-controlling interests in those CLOs are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 553.75 Td (attributed a share of income or loss arising from the respective CLO based on the relative ownership interests of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 541.75 Td (third-party investors after consideration of contractual arrangements that govern allocations of income or loss. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 529.75 Td (Investors in those CLOs are generally unable to redeem their interests until the respective CLO liquidates, is called ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 517.75 Td (or otherwise terminates. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 496.75 Td (Non-controlling Interests in Consolidated Subsidiaries) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 475.75 Td (Non-controlling interests in consolidated subsidiaries reflect the portion of unitholders’) Tj ET Q q 0 0 0 rg BT 463.11 475.75 Td ( capital attributable to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 463.75 Td (OCGH unitholders \(“OCGH non-controlling interest”\), related parties and third parties. ) Tj ET Q q 0 0 0 rg BT 432.44 463.75 Td (All non-controlling interests ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 451.75 Td (in consolidated subsidiaries are attributed a share of income or loss in the respective consolidated subsidiary based ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 439.75 Td (on the relative economic interests of the OCGH unitholders, related parties or third parties after consideration of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 427.75 Td (contractual arrangements that govern allocations of income or loss. Please see note 12 for more information.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 406.75 Td (Business Combinations) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 385.75 Td (The Company accounts for business combinations using the acquisition method of accounting, which ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 373.75 Td (requires the use of estimates and judgment to measure the fair value of identifiable tangible and intangible assets ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 361.75 Td (acquired, liabilities assumed, and non-controlling interests in the acquiree as of the acquisition date. Contingent ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 349.75 Td (consideration that is determined to be part of the business combination is recognized at fair value as of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 337.75 Td (acquisition date and is included in the purchase price. ) Tj ET Q q 0 0 0 rg BT 292.25 337.75 Td (T) Tj ET Q q 0 0 0 rg BT 297.99 337.75 Td (ransaction costs are expensed as incurred.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 316.75 Td (Goodwill and Intangibles) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 295.75 Td (Goodwill represents the excess of cost over the fair value of identifiable net assets of acquired businesses. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 283.75 Td (Goodwill has an indefinite useful life and is not amortized, but instead is tested for impairment annually in the fourth ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 271.75 Td (quarter of each fiscal year) Tj ET Q q 0 0 0 rg BT 164.01 271.75 Td (, or more frequently when events or circumstances indicate that impairment may have ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 259.75 Td (occurred. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 238.75 Td (The Company’) Tj ET Q q 0 0 0 rg BT 150.35 238.75 Td (s identifiable intangible assets acquired in business combinations primarily relate to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 226.75 Td (contractual rights to earn future management fees and incentive income. Finite-lived intangible assets are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 214.75 Td (amortized over their estimated useful lives, which range from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 321.28 214.75 Td (three) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 344.08 214.75 Td ( to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 357.97 214.75 Td (seven) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 384.66 214.75 Td ( years, and are reviewed for impairment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 202.75 Td (whenever events or circumstances indicate that the carrying amount of the asset may not be recoverable. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 181.75 Td (Fair V) Tj ET Q q 0 0 0 rg BT 76.92 181.75 Td (alue of Financial Instruments ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 165.25 Td (GAAP) Tj ET Q q 0 0 0 rg BT 113.11 165.25 Td ( establishes a hierarchical disclosure framework that prioritizes the inputs used in measuring financial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 153.25 Td (instruments at fair value into three levels based on their market observability) Tj ET Q q 0 0 0 rg BT 385.59 153.25 Td (. Market price observability is af) Tj ET Q q 0 0 0 rg BT 528.24 153.25 Td (fected ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 141.25 Td (by a number of factors, such as the type of instrument and the characteristics specific to the instrument. Financial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 129.25 Td (instruments with readily available quoted prices from an active market or for which fair value can be measured ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 117.25 Td (based on actively quoted prices generally will have a higher degree of market price observability and a lesser ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 105.25 Td (degree of judgment inherent in measuring fair value. ) Tj ET Q endstream endobj 273 0 obj <> endobj 274 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (136) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 712.75 Td (Financial assets and liabilities measured and reported at fair value are classified as follows: ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 696.25 Td (• ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 103.50 696.25 Td (Level I – ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 144.08 696.25 Td (Quoted unadjusted prices for identical instruments in active markets to which the Company ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 684.25 Td (has access at the date of measurement. ) Tj ET Q q 0 0 0 rg BT 286.75 684.25 Td (The types of investments in Level I include exchange-traded ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 672.25 Td (equities, debt and derivatives with quoted prices. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 655.75 Td (• ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 103.50 655.75 Td (Level II – ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 146.86 655.75 Td (Quoted prices for similar instruments in active markets; quoted prices for identical or similar ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 643.75 Td (instruments in markets that are not active; and model-derived valuations in which all significant inputs ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 631.75 Td (are directly or indirectly observable. Level II inputs include interest rates, yield curves, volatilities, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 619.75 Td (prepayment risks, loss severities, credit risks and default rates. ) Tj ET Q q 0 0 0 rg BT 386.76 619.75 Td (The types of investments in Level II ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 607.75 Td (generally include corporate bonds and loans, government and agency securities, less liquid and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 595.75 Td (restricted equity investments, over-the-counter traded derivatives, other investments where the fair ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 583.75 Td (value is based on observable inputs, and upon adoption of the new CLO measurement guidance as of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 571.75 Td (January 1, 2016, debt obligations of consolidated CLOs. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 555.25 Td (• ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 103.50 555.25 Td (Level III – ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 149.64 555.25 Td (V) Tj ET Q q 0 0 0 rg BT 155.57 555.25 Td (aluations for which one or more significant inputs are unobservable. ) Tj ET Q q 0 0 0 rg BT 460.00 555.25 Td (These inputs reflect ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 543.25 Td (the Company’) Tj ET Q q 0 0 0 rg BT 165.02 543.25 Td (s assessment of the assumptions that market participants use to value the investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 531.25 Td (based on the best available information. Level III inputs include prices of quoted securities in markets ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 519.25 Td (for which there are few transactions, less public information exists or prices vary among brokered ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 507.25 Td (market makers. ) Tj ET Q q 0 0 0 rg BT 177.78 507.25 Td (The types of investments in Level III include non-publicly traded equity) Tj ET Q q 0 0 0 rg BT 487.76 507.25 Td (, debt, real ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 495.25 Td (estate and derivatives. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 474.25 Td (In some instances, the inputs used to value an instrument may fall into multiple levels of the fair-value ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 462.25 Td (hierarchy) Tj ET Q q 0 0 0 rg BT 89.89 462.25 Td (. In such instances, the instrument’) Tj ET Q q 0 0 0 rg BT 246.45 462.25 Td (s level within the fair-value hierarchy is based on the lowest of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 450.25 Td (three levels \(with Level III being the lowest\) that is significant to the fair-value measurement. ) Tj ET Q q 0 0 0 rg BT 461.18 450.25 Td (The Company’) Tj ET Q q 0 0 0 rg BT 526.03 450.25 Td (s ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 438.25 Td (assessment of the significance of an input requires judgment and considers factors specific to the instrument. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 426.25 Td (T) Tj ET Q q 0 0 0 rg BT 55.24 426.25 Td (ransfers of assets into or out of each fair value hierarchy level as a result of changes in the observability of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 414.25 Td (inputs used in measuring fair value are accounted for as of the beginning of the reporting period. ) Tj ET Q q 0 0 0 rg BT 480.70 414.25 Td (T) Tj ET Q q 0 0 0 rg BT 486.44 414.25 Td (ransfers ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 402.25 Td (resulting from a specific event, such as a reorganization or restructuring, are accounted for as of the date of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 390.25 Td (event that caused the transfer) Tj ET Q q 0 0 0 rg BT 181.25 390.25 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 369.25 Td (In the absence of observable market prices, the Company values Level III investments using valuation ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 357.25 Td (methodologies applied on a consistent basis. ) Tj ET Q q 0 0 0 rg BT 253.89 357.25 Td (The quarterly valuation process for Level III investments begins with ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 345.25 Td (each portfolio company) Tj ET Q q 0 0 0 rg BT 152.15 345.25 Td (, property or security being valued by the investment and/or valuation teams. With the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 333.25 Td (exception of open-end funds, all unquoted Level III investment values are reviewed and approved by \(i\) the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 321.25 Td (Company’) Tj ET Q q 0 0 0 rg BT 94.34 321.25 Td (s valuation of) Tj ET Q q 0 0 0 rg BT 153.08 321.25 Td (ficer) Tj ET Q q 0 0 0 rg BT 171.42 321.25 Td (, who is independent of the investment teams, \(ii\) a designated investment professional ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 309.25 Td (of each strategy and \(iii\) for a substantial majority of unquoted Level III holdings as measured by market value, a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 297.25 Td (valuation committee of the respective strategy) Tj ET Q q 0 0 0 rg BT 252.19 297.25 Td (. For open-end funds, unquoted Level III investment values are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 285.25 Td (reviewed and approved by the Company’) Tj ET Q q 0 0 0 rg BT 231.10 285.25 Td (s valuation of) Tj ET Q q 0 0 0 rg BT 289.84 285.25 Td (ficer) Tj ET Q q 0 0 0 rg BT 308.18 285.25 Td (. For certain investments, the valuation process also ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 273.25 Td (includes a review by independent valuation parties, at least annually) Tj ET Q q 0 0 0 rg BT 350.06 273.25 Td (, to determine whether the fair values ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 261.25 Td (determined by management are reasonable. Results of the valuation process are evaluated each quarter) Tj ET Q q 0 0 0 rg BT 515.34 261.25 Td (, including ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 249.25 Td (an assessment of whether the underlying calculations should be adjusted or recalibrated. In connection with this ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 237.25 Td (process, the Company periodically evaluates changes in fair-value measurements for reasonableness, considering ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 225.25 Td (items such as industry trends, general economic and market conditions, and factors specific to the investment. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 204.25 Td (Certain assets are valued using prices obtained from brokers or pricing vendors. ) Tj ET Q q 0 0 0 rg BT 445.50 204.25 Td (The Company obtains an ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 192.25 Td (average of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 99.53 192.25 Td (one) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 116.22 192.25 Td ( to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 130.12 192.25 Td (two) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 145.68 192.25 Td ( broker quotes. ) Tj ET Q q 0 0 0 rg BT 217.76 192.25 Td (The Company seeks to obtain at least ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 388.41 192.25 Td (one) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 405.09 192.25 Td ( quote directly from a broker ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 180.25 Td (making a market for the asset and one price from a pricing vendor for the specific or similar securities. ) Tj ET Q q 0 0 0 rg BT 505.07 180.25 Td (These ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 168.25 Td (investments may be classified as Level III because the quoted prices may be indicative in nature for securities that ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 156.25 Td (are in an inactive market, may be for similar securities, or may require adjustment for investment-specific factors or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 144.25 Td (restrictions. ) Tj ET Q q 0 0 0 rg BT 106.00 144.25 Td (The Company evaluates the prices obtained from brokers or pricing vendors based on available market ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 132.25 Td (information, including trading activity of the subject or similar securities, or by performing a comparable security ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 120.25 Td (analysis to ensure that fair values are reasonably estimated. ) Tj ET Q q 0 0 0 rg BT 321.13 120.25 Td (The Company also performs back-testing of valuation ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 108.25 Td (information obtained from brokers and pricing vendors against actual prices received in transactions. In addition to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 96.25 Td (ongoing monitoring and back-testing, the Company performs due diligence procedures surrounding pricing vendors ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 84.25 Td (to understand their methodology and controls to support their use in the valuation process.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 63.25 Td (The Company adopted the new CLO measurement guidance on a modified retrospective approach as of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 51.25 Td (January 1, 2016. Please see “—Recent ) Tj ET Q q 0 0 0 rg BT 229.05 51.25 Td (Accounting Guidance” below for further details. Upon adoption, the ) Tj ET Q endstream endobj 275 0 obj <> endobj 276 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (137) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 712.75 Td (Company elected the fair value option for the financial liabilities of the consolidated CLOs and determined that the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 700.75 Td (fair value of the CLO assets was more observable than the fair value of the CLO liabilities. ) Tj ET Q q 0 0 0 rg BT 452.48 700.75 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 503.43 700.75 Td (, the fair ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 688.75 Td (value of the CLO liabilities was measured as the fair value of CLO assets less the sum of \(a\) the fair value of any ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 676.75 Td (beneficial interests held by the Company and \(b\) the carrying value of any beneficial interests that represent ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 664.75 Td (compensation for services.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 643.75 Td (Fair V) Tj ET Q q 0 0 0 rg BT 76.92 643.75 Td (alue Option) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 622.75 Td (The Company has elected the fair value option for certain corporate investments that otherwise would not ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 610.75 Td (have reflected unrealized gains and losses in current-period earnings. Such election is irrevocable and is applied ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 598.75 Td (on an investment-by-investment basis at initial recognition. Unrealized gains and losses resulting from changes in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 586.75 Td (fair value are reflected as a component of investment income in the consolidated statements of operations. ) Tj ET Q q 0 0 0 rg BT 526.25 586.75 Td (The ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 574.75 Td (Company’) Tj ET Q q 0 0 0 rg BT 94.34 574.75 Td (s accounting for these investments is similar to its accounting for investments held by the consolidated ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 562.75 Td (funds at fair value and the valuation methods are consistent with those used to determine the fair value of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 550.75 Td (consolidated funds’) Tj ET Q q 0 0 0 rg BT 134.74 550.75 Td ( investments.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 529.75 Td (The Company has elected the fair value option for the financial assets and financial liabilities of its ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 517.75 Td (consolidated CLOs. ) Tj ET Q q 0 0 0 rg BT 142.15 517.75 Td (The assets and liabilities of CLOs are primarily reflected within the investments, at fair value ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 505.75 Td (and within the debt obligations of CLOs line items in the consolidated statements of financial condition. ) Tj ET Q q 0 0 0 rg BT 507.92 505.75 Td (The ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 493.75 Td (Company’) Tj ET Q q 0 0 0 rg BT 94.34 493.75 Td (s accounting for CLO assets is similar to its accounting for its funds with respect to both carrying ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 481.75 Td (investments held by CLOs at fair value and the valuation methods used to determine the fair value of those ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 469.75 Td (investments. CLO liabilities are measured based on the more observable fair value of CLO assets under the new ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 457.75 Td (CLO measurement guidance, as discussed under “—Fair V) Tj ET Q q 0 0 0 rg BT 311.10 457.75 Td (alue of Financial Instruments” above. Realized gains or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 445.75 Td (losses and changes in the fair value of CLO assets, respectively) Tj ET Q q 0 0 0 rg BT 332.24 445.75 Td (, are included in net realized gain on consolidated ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 433.75 Td (funds’) Tj ET Q q 0 0 0 rg BT 75.81 433.75 Td ( investments and net change in unrealized appreciation \(depreciation\) on consolidated funds’) Tj ET Q q 0 0 0 rg BT 486.26 433.75 Td ( investments in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 421.75 Td (the consolidated statements of operations. Interest income of CLOs is included in interest and dividend income, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 409.75 Td (and interest expense and other expenses, respectively) Tj ET Q q 0 0 0 rg BT 290.57 409.75 Td (, are included in interest expense and consolidated fund ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 397.75 Td (expenses in the consolidated statements of operations. Changes in the fair value of a CLO’) Tj ET Q q 0 0 0 rg BT 454.56 397.75 Td (s financial liabilities in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 385.75 Td (accordance with the CLO measurement guidance are included in net change in unrealized appreciation ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 373.75 Td (\(depreciation\) on consolidated funds’) Tj ET Q q 0 0 0 rg BT 212.57 373.75 Td ( investments in the consolidated statements of operations. Please see notes 6 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 361.75 Td (and 10 for more information.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 336.25 Td (Foreign Currency ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 319.75 Td (The assets and liabilities of Oaktree’) Tj ET Q q 0 0 0 rg BT 245.95 319.75 Td (s foreign subsidiaries with non-U.S. dollar functional currencies are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 307.75 Td (translated at exchange rates prevailing at the end of each reporting period. ) Tj ET Q q 0 0 0 rg BT 385.09 307.75 Td (The results of foreign operations are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 295.75 Td (translated at the weighted average exchange rate for each reporting period. ) Tj ET Q q 0 0 0 rg BT 388.98 295.75 Td (T) Tj ET Q q 0 0 0 rg BT 394.72 295.75 Td (ranslation adjustments are included ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 283.75 Td (in other comprehensive income \(loss\) within the consolidated statements of financial condition until realized. Gains ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 271.75 Td (and losses resulting from foreign-currency transactions are included in general and administrative expense.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 246.25 Td (Derivatives and Hedging) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 229.25 Td (A) Tj ET Q q 0 0 0 rg BT 91.62 229.25 Td ( derivative is a financial instrument whose value is derived from an underlying financial instrument or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 217.25 Td (index, such as interest rates, equity securities, currencies, commodities or credit spreads. Derivatives include ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 205.25 Td (futures, forwards, swaps or option contracts, and other financial instruments with similar characteristics. Derivative ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 193.25 Td (contracts often involve future commitments to exchange interest payment streams or currencies based on a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 181.25 Td (notional or contractual amount \(e.g., interest-rate swaps or foreign-currency forwards\). ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 164.25 Td (The Company enters into derivatives as part of its overall risk management strategy or to facilitate its ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 152.25 Td (investment management activities. Risks associated with fluctuations in interest rates and foreign-currency ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 140.25 Td (exchange rates in the normal course of business are addressed as part of the Company’) Tj ET Q q 0 0 0 rg BT 440.10 140.25 Td (s overall risk management ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 128.25 Td (strategy that may result in the use of derivatives to economically hedge or reduce these exposures. ) Tj ET Q q 0 0 0 rg BT 492.89 128.25 Td (T) Tj ET Q q 0 0 0 rg BT 497.89 128.25 Td (o mitigate the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 116.25 Td (risk associated with fluctuations in interest rates, the Company may enter into interest-rate swaps to manage all or a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 104.25 Td (portion of the interest-rate risk associated with its variable-rate borrowings. ) Tj ET Q q 0 0 0 rg BT 384.47 104.25 Td (The Company’) Tj ET Q q 0 0 0 rg BT 449.31 104.25 Td (s corporate investments ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 92.25 Td (in funds include investments denominated in currencies other than the U.S. dollar) Tj ET Q q 0 0 0 rg BT 408.60 92.25 Td (, which is the Company’) Tj ET Q q 0 0 0 rg BT 514.02 92.25 Td (s reporting ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 80.25 Td (currency and, consequently) Tj ET Q q 0 0 0 rg BT 171.05 80.25 Td (, are subject to fluctuations in foreign-currency exchange rates. ) Tj ET Q q 0 0 0 rg BT 454.91 80.25 Td (The Company also ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 68.25 Td (receives management fees from certain funds and pays expenses in currencies other than the U.S. dollar) Tj ET Q q 0 0 0 rg BT 514.20 68.25 Td (. ) Tj ET Q q 0 0 0 rg BT 522.35 68.25 Td (T) Tj ET Q q 0 0 0 rg BT 527.35 68.25 Td (o ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 56.25 Td (reduce earnings and cash-flow volatility associated with changes in foreign-currency exchange rates caused by the ) Tj ET Q endstream endobj 277 0 obj <> endobj 278 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (138) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 712.75 Td (remeasurement of the Company’) Tj ET Q q 0 0 0 rg BT 194.94 712.75 Td (s corporate investments, management fees and expenses denominated in non-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 700.75 Td (functional currencies, the Company may enter into foreign-currency option and forward contracts. ) Tj ET Q q 0 0 0 rg BT 484.16 700.75 Td (As a result of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 688.75 Td (use of these or other derivative contracts, the Company is exposed to the risk that counterparties will fail to fulfill ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 676.75 Td (their contractual obligations. ) Tj ET Q q 0 0 0 rg BT 179.39 676.75 Td (The Company attempts to mitigate this counterparty risk by entering into derivative ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 664.75 Td (contracts only with major financial institutions that have investment-grade ratings. Counterparty credit risk is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 652.75 Td (evaluated in determining the fair value of derivatives. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 631.75 Td (The Company recognizes all derivatives as assets or liabilities in its consolidated statements of financial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 619.75 Td (condition at fair value. In connection with its derivative activities, the Company generally enters into agreements ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 607.75 Td (subject to enforceable master netting arrangements that allow the Company to of) Tj ET Q q 0 0 0 rg BT 407.30 607.75 Td (fset derivative assets and liabilities ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 595.75 Td (in the same currency by specific derivative type or) Tj ET Q q 0 0 0 rg BT 270.15 595.75 Td (, in the event of default by the counterparty) Tj ET Q q 0 0 0 rg BT 458.98 595.75 Td (, to of) Tj ET Q q 0 0 0 rg BT 483.81 595.75 Td (fset derivative ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 583.75 Td (assets and liabilities with the same counterparty) Tj ET Q q 0 0 0 rg BT 260.53 583.75 Td (. While these derivatives are eligible to be of) Tj ET Q q 0 0 0 rg BT 458.79 583.75 Td (fset in accordance with ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 571.75 Td (applicable accounting guidance, the Company has elected to present derivative assets and liabilities based on ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 559.75 Td (gross fair value in its consolidated statements of financial condition.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 538.75 Td (When the Company enters into a derivative contract, the Company may elect to designate the derivative as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 526.75 Td (a hedging instrument and apply hedge accounting as part of its overall risk management strategy) Tj ET Q q 0 0 0 rg BT 477.34 526.75 Td (. In other ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 514.75 Td (situations, when a derivative does not qualify for hedge accounting or when the derivative and the hedged item are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 502.75 Td (both recorded in current-period earnings and thus deemed to be economic hedges, hedge accounting is not ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 490.75 Td (applied. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 469.75 Td (Derivatives that are designated as hedging instruments are classified as either a hedge of \(a\) a recognized ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 457.75 Td (asset or liability \(“fair-value hedge”\), \(b\) a forecasted transaction or of the variability of cash flows to be received or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 445.75 Td (paid related to a recognized asset or liability \(“cash-flow hedge”\), or \(c\) a net investment in a foreign operation. For ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 433.75 Td (a fair-value hedge, changes in the fair value of the derivative and, to the extent that it is highly ef) Tj ET Q q 0 0 0 rg BT 474.03 433.75 Td (fective, changes in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 421.75 Td (the fair value of the hedged asset or liability attributable to the hedged risk are recorded in current-period earnings ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 409.75 Td (in the same caption in the consolidated statements of operations as the hedged item. Changes in the fair value of a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 397.75 Td (derivative that is highly ef) Tj ET Q q 0 0 0 rg BT 161.60 397.75 Td (fective and is designated and qualifies as a cash-flow hedge, to the extent that the hedge ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 385.75 Td (is ef) Tj ET Q q 0 0 0 rg BT 67.66 385.75 Td (fective, are recorded in other comprehensive income \(loss\) until earnings are af) Tj ET Q q 0 0 0 rg BT 418.21 385.75 Td (fected by the variability of cash ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 373.75 Td (flows of the hedged transaction. ) Tj ET Q q 0 0 0 rg BT 195.71 373.75 Td (Any hedge inef) Tj ET Q q 0 0 0 rg BT 262.24 373.75 Td (fectiveness is recorded in current-period earnings. Changes in the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 361.75 Td (fair value of derivatives designated as hedging instruments that are caused by factors other than changes in the risk ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 349.75 Td (being hedged are excluded from the assessment of hedge ef) Tj ET Q q 0 0 0 rg BT 318.39 349.75 Td (fectiveness and recognized in current-period earnings. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 337.75 Td (For a derivative that is not designated as a hedging instrument \(“freestanding derivative”\), the Company records ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 325.75 Td (changes in fair value in current-period earnings. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 304.75 Td (The Company formally documents at inception the hedge relationship, including identification of the hedging ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 292.75 Td (instrument and the hedged item, as well as the risk management objectives, the strategy for undertaking the hedge ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 280.75 Td (transaction, and the evaluation of ef) Tj ET Q q 0 0 0 rg BT 207.76 280.75 Td (fectiveness of its hedged transaction. On a quarterly basis, the Company ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 268.75 Td (formally assesses whether the derivative it designated in each hedging relationship has been and is expected to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 256.75 Td (remain highly ef) Tj ET Q q 0 0 0 rg BT 119.91 256.75 Td (fective in of) Tj ET Q q 0 0 0 rg BT 170.31 256.75 Td (fsetting changes in the estimated fair value or cash flow of the hedged items. If it is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 244.75 Td (determined that a derivative is not highly ef) Tj ET Q q 0 0 0 rg BT 239.43 244.75 Td (fective at hedging the designated exposure, hedge accounting is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 232.75 Td (discontinued and the balance remaining in other comprehensive income \(loss\) is released to earnings. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 207.25 Td (Cash and Cash-equivalents ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 190.75 Td (Cash and cash-equivalents include demand deposit accounts, money market funds and short-term ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 178.75 Td (investments with maturities of three months or less at the date of acquisition. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 153.25 Td (U.S. T) Tj ET Q q 0 0 0 rg BT 77.65 153.25 Td (reasury and T) Tj ET Q q 0 0 0 rg BT 143.05 153.25 Td (ime Deposit Securities ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 136.75 Td (Includes holdings of U.S. ) Tj ET Q q 0 0 0 rg BT 198.72 136.75 Td (T) Tj ET Q q 0 0 0 rg BT 204.46 136.75 Td (reasury bills and time deposit securities with maturities greater than three ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 124.75 Td (months at the date of acquisition. ) Tj ET Q q 0 0 0 rg BT 201.63 124.75 Td (These securities, classified as available-for-sale, are recorded at fair value with ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 112.75 Td (changes in fair value included in other comprehensive income \(loss\). Changes in fair value were not material for all ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 100.75 Td (years presented.) Tj ET Q endstream endobj 279 0 obj <> endobj 280 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (139) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 712.75 Td (Corporate Investments) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 691.75 Td (Corporate investments consist of investments in funds and companies in which the Company does not have ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 679.75 Td (a controlling financial interest. Investments for which the Company is deemed to exert significant influence are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 667.75 Td (accounted for under the equity method of accounting and reflect Oaktree’) Tj ET Q q 0 0 0 rg BT 372.85 667.75 Td (s ownership interest in each fund or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 655.75 Td (company) Tj ET Q q 0 0 0 rg BT 89.33 655.75 Td (. In the case of investments for which the Company is not deemed to exert significant influence or control, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 643.75 Td (the fair value option of accounting has been elected. Investment income represents the Company’) Tj ET Q q 0 0 0 rg BT 484.58 643.75 Td (s pro-rata share ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 631.75 Td (of income or loss from these funds or companies, or the change in fair value of the investment, as applicable. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 619.75 Td (Oaktree’) Tj ET Q q 0 0 0 rg BT 87.11 619.75 Td (s general partnership interests are substantially illiquid. While investments in funds reflect each respective ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 607.75 Td (fund’) Tj ET Q q 0 0 0 rg BT 71.00 607.75 Td (s holdings at fair value, equity-method investments in DoubleLine Capital LP) Tj ET Q q 0 0 0 rg BT 408.24 607.75 Td ( and its af) Tj ET Q q 0 0 0 rg BT 451.41 607.75 Td (filiates \(collectively) Tj ET Q q 0 0 0 rg BT 533.47 607.75 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 595.75 Td (“DoubleLine”\) and other companies are not adjusted to reflect the fair value of the underlying company) Tj ET Q q 0 0 0 rg BT 501.25 595.75 Td (. ) Tj ET Q q 0 0 0 rg BT 509.40 595.75 Td (The fair ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 583.75 Td (value of the underlying investments in Oaktree funds is based on the Company’) Tj ET Q q 0 0 0 rg BT 400.63 583.75 Td (s assessment, which takes into ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 571.75 Td (account expected cash flows, earnings multiples and/or comparisons to similar market transactions, among other ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 559.75 Td (factors. V) Tj ET Q q 0 0 0 rg BT 93.77 559.75 Td (aluation adjustments reflecting consideration of credit quality) Tj ET Q q 0 0 0 rg BT 360.40 559.75 Td (, concentration risk, sales restrictions and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 547.75 Td (other liquidity factors are integral to valuing these instruments.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 526.75 Td (Management Fees ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 510.25 Td (Management fees are recognized over the period in which the investment advisory services are performed. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 498.25 Td (The contractual terms of management fees generally vary by fund structure. For most closed-end funds, the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 486.25 Td (management fee rate is applied against committed capital during the fund’) Tj ET Q q 0 0 0 rg BT 376.74 486.25 Td (s investment period and the lesser of total ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 474.25 Td (funded capital or cost basis of assets in the liquidation period. However) Tj ET Q q 0 0 0 rg BT 366.35 474.25 Td (, for certain closed-end funds, management ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 462.25 Td (fees during the investment period are calculated based on drawn capital or cost basis. ) Tj ET Q q 0 0 0 rg BT 434.72 462.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 485.13 462.25 Td (, for those ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 450.25 Td (closed-end funds for which management fees are based on committed capital, the Company sometimes elects to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 438.25 Td (delay the start of the fund’) Tj ET Q q 0 0 0 rg BT 164.39 438.25 Td (s investment period and thus its full management fees, in which case the Company earns ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 426.25 Td (management fees based on drawn capital, and in certain cases outstanding borrowings under a fund-level credit ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 414.25 Td (facility made in lieu of drawing capital, until the Company elects to start the fund’) Tj ET Q q 0 0 0 rg BT 403.95 414.25 Td (s investment period. ) Tj ET Q q 0 0 0 rg BT 498.81 414.25 Td (The ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 402.25 Td (Company’) Tj ET Q q 0 0 0 rg BT 94.34 402.25 Td (s right to receive management fees typically ends after ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 338.90 402.25 Td (10) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 350.03 402.25 Td ( or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 364.48 402.25 Td (1) Tj ET Q q 0 0 0 rg BT 369.29 402.25 Td (1) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 374.86 402.25 Td ( years from either the initial closing date ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 390.25 Td (or the start of the investment period, even if assets remain in the fund. In the case of CLOs, a portion of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 378.25 Td (management fees earned by us is dependent on the suf) Tj ET Q q 0 0 0 rg BT 296.71 378.25 Td (ficiency of the particular vehicle’) Tj ET Q q 0 0 0 rg BT 437.71 378.25 Td (s cash flow) Tj ET Q q 0 0 0 rg BT 486.62 378.25 Td (. For open-end ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 366.25 Td (and evergreen funds, the management fee is generally based on the NA) Tj ET Q q 0 0 0 rg BT 368.41 366.25 Td (V of the fund. In the case of certain open-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 354.25 Td (end and evergreen fund accounts, the Company has the potential to earn performance-based fees, typically in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 342.25 Td (reference to a relevant benchmark index or hurdle rate.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 321.25 Td (The Company does not recognize incremental income for transaction, advisory) Tj ET Q q 0 0 0 rg BT 433.26 321.25 Td (, director and other ancillary ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 309.25 Td (fees received in connection with providing services to portfolio companies or potential investees of the funds; rather) Tj ET Q q 0 0 0 rg BT 558.12 309.25 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 297.25 Td (any such fees are of) Tj ET Q q 0 0 0 rg BT 139.37 297.25 Td (fset against management fees earned from the applicable fund. ) Tj ET Q q 0 0 0 rg BT 424.92 297.25 Td (These fees are typically ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 285.25 Td (recognized as revenue in the period in which they are of) Tj ET Q q 0 0 0 rg BT 297.25 285.25 Td (fset against the quarterly management fees that would ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 273.25 Td (otherwise be paid by the applicable fund, which is generally the quarter following the period in which the fees are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 261.25 Td (received. ) Tj ET Q q 0 0 0 rg BT 95.08 261.25 Td (Ancillary fees recognized in management fees for the years ended December 31, 2016, 2015 and 2014 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 249.25 Td (were ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.95 249.25 Td ($32.5 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 130.10 249.25 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 135.65 249.25 Td ($26.6 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 191.79 249.25 Td ( and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 214.04 249.25 Td ($32.7 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 270.18 249.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 327.79 249.25 Td (. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 223.75 Td (Incentive Income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 207.25 Td (Incentive income generally represents ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 256.70 207.25 Td (20%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 276.72 207.25 Td ( of each closed-end fund’) Tj ET Q q 0 0 0 rg BT 388.28 207.25 Td (s profits, subject to the return of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 195.25 Td (contributed capital and a preferred return of typically ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 282.96 195.25 Td (8%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.42 195.25 Td ( per annum, and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 373.02 195.25 Td (10%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 393.04 195.25 Td ( to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 406.93 195.25 Td (20%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 426.95 195.25 Td ( of certain evergreen fund’) Tj ET Q q 0 0 0 rg BT 542.95 195.25 Td (s ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 183.25 Td (annual profits, subject to high-water marks or hurdle rates. ) Tj ET Q q 0 0 0 rg BT 312.78 183.25 Td (The Company has elected to adopt “Method 1” for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 171.25 Td (revenue recognition based on a formula. Under this method, incentive income is recognized when fixed or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 159.25 Td (determinable, all related contingencies have been removed and collection is reasonably assured, which generally ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 147.25 Td (occurs in the quarter of, or the quarter immediately prior to, the distribution of the income by the fund to Oaktree. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 135.25 Td (The Method 1 criteria for revenue recognition is typically met \(a\) for closed-end funds, only after all contributed ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 123.25 Td (capital and the preferred return on that capital have been distributed to the fund’) Tj ET Q q 0 0 0 rg BT 402.33 123.25 Td (s investors, and \(b\) for certain ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 111.25 Td (evergreen funds, at the conclusion of each annual measurement period. Incentives received by Oaktree before the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 99.25 Td (above criteria have been met are deferred and recorded as a deferred incentive income liability within accounts ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 87.25 Td (payable, accrued expenses and other liabilities in the consolidated statements of financial condition. ) Tj ET Q q 0 0 0 rg BT 495.89 87.25 Td (As of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 75.25 Td (December 31, 2016 and 2015, respectively) Tj ET Q q 0 0 0 rg BT 239.43 75.25 Td (, there was ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 291.12 75.25 Td ($16.8 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 347.26 75.25 Td ( and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 369.50 75.25 Td (zero) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 388.96 75.25 Td ( of deferred incentive income. ) Tj ET Q q 0 0 0 rg BT 525.52 75.25 Td (The ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 63.25 Td (Company may receive tax distributions related to taxable income allocated by funds, which are treated as an ) Tj ET Q endstream endobj 281 0 obj <> endobj 282 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (140) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 712.75 Td (advance of incentive income and subject to the same recognition criteria. ) Tj ET Q q 0 0 0 rg BT 377.28 712.75 Td (T) Tj ET Q q 0 0 0 rg BT 382.28 712.75 Td (ax distributions are contractually not ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 700.75 Td (subject to clawback. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 675.25 Td (Incentive Income Compensation ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 658.75 Td (Incentive income compensation expense primarily reflects compensation directly related to incentive ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 646.75 Td (income, which generally consists of percentage interests \(sometimes referred to as “points”\) that the Company ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 634.75 Td (grants to its investment professionals associated with the particular fund that generated the incentive income, and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 622.75 Td (secondarily) Tj ET Q q 0 0 0 rg BT 99.34 622.75 Td (, compensation directly related to investment income. ) Tj ET Q q 0 0 0 rg BT 340.38 622.75 Td (The Company has an obligation to pay a fixed ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 610.75 Td (percentage of the incentive income earned from a particular fund, including income from consolidated funds that is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 598.75 Td (eliminated in consolidation, to specified investment professionals responsible for the management of the fund. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 586.75 Td (Amounts payable pursuant to these arrangements are recorded as compensation expense when they have become ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 574.75 Td (probable and reasonably estimable. ) Tj ET Q q 0 0 0 rg BT 213.31 574.75 Td (The Company’) Tj ET Q q 0 0 0 rg BT 278.16 574.75 Td (s determination of the point at which it becomes probable and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 562.75 Td (reasonably estimable that incentive income compensation expense should be recorded is based on its assessment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 550.75 Td (of numerous factors, particularly those related to the profitability) Tj ET Q q 0 0 0 rg BT 330.01 550.75 Td (, realizations, distribution status, investment profile ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 538.75 Td (and commitments or contingencies of the individual funds that may give rise to incentive income. Incentive income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 526.75 Td (compensation is expensed no later than the period in which the underlying income is recognized. Payment of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 514.75 Td (incentive income compensation generally occurs in the same period the related income is received or in the next ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 502.75 Td (period. Participation in incentive income generated by the funds is subject to forfeiture upon departure and to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 490.75 Td (vesting provisions \(generally over a period of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 250.72 490.75 Td (five years) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 293.51 490.75 Td (\), in each case, under certain circumstances set forth in the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 478.75 Td (applicable governing documents. ) Tj ET Q q 0 0 0 rg BT 201.08 478.75 Td (These provisions are generally only applicable to incentive income compensation ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 466.75 Td (that has not yet been recognized as an expense by the Company or paid to the participant. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 441.25 Td (Equity-based Compensation ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 424.75 Td (Equity-based compensation expense reflects the non-cash charge associated with grants of Class ) Tj ET Q q 0 0 0 rg BT 521.30 424.75 Td (A) Tj ET Q q 0 0 0 rg BT 527.42 424.75 Td ( units, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 412.75 Td (OCGH units and OCGH equity value units \(“EVUs”\), and is calculated based on the grant-date fair value of the unit ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 400.75 Td (award, adjusted annually or more frequently) Tj ET Q q 0 0 0 rg BT 243.31 400.75 Td (, as necessary) Tj ET Q q 0 0 0 rg BT 307.04 400.75 Td (, for actual forfeitures to reflect expense only for those ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 388.75 Td (units that ultimately vest. ) Tj ET Q q 0 0 0 rg BT 164.00 388.75 Td (A) Tj ET Q q 0 0 0 rg BT 170.12 388.75 Td ( contemporaneous valuation report is utilized in determining fair value at the date of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 376.75 Td (grant for OCGH unit awards. Each valuation report is based on the market price of Oaktree’) Tj ET Q q 0 0 0 rg BT 456.18 376.75 Td (s Class ) Tj ET Q q 0 0 0 rg BT 491.19 376.75 Td (A) Tj ET Q q 0 0 0 rg BT 497.31 376.75 Td ( units as well ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 364.75 Td (as other pertinent factors. ) Tj ET Q q 0 0 0 rg BT 167.90 364.75 Td (A) Tj ET Q q 0 0 0 rg BT 174.02 364.75 Td ( discount is then applied to the Class ) Tj ET Q q 0 0 0 rg BT 339.12 364.75 Td (A) Tj ET Q q 0 0 0 rg BT 345.24 364.75 Td ( unit market price to reflect the lack of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 352.75 Td (marketability for equity-classified awards, if applicable. ) Tj ET Q q 0 0 0 rg BT 295.54 352.75 Td (The determination of an appropriate discount for lack of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 340.75 Td (marketability is based on a review of discounts on the sale of restricted shares of publicly-traded companies and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 328.75 Td (multi-period put-based quantitative methods. Factors that influence the size of the discount for lack of marketability ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 316.75 Td (applicable to OCGH units include \(a\) the estimated time it would take for an OCGH unitholder to exchange units ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 304.75 Td (into Class ) Tj ET Q q 0 0 0 rg BT 95.63 304.75 Td (A) Tj ET Q q 0 0 0 rg BT 101.75 304.75 Td ( units, \(b\) the volatility of the Company’) Tj ET Q q 0 0 0 rg BT 273.87 304.75 Td (s business and \(c\) thin trading of the Class ) Tj ET Q q 0 0 0 rg BT 465.08 304.75 Td (A) Tj ET Q q 0 0 0 rg BT 471.20 304.75 Td ( units. Each of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 292.75 Td (these factors is subject to significant judgment. Equity-based awards that do not require future service \(i.e., awards ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 280.75 Td (vested at grant\) are expensed immediately) Tj ET Q q 0 0 0 rg BT 237.75 280.75 Td (. Equity-based awards that require future service are expensed on a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 268.75 Td (straight-line basis over the requisite service period. Cash-settled equity-based awards are classified as liabilities ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 256.75 Td (and are remeasured at the end of each reporting period. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 231.25 Td (Depreciation and ) Tj ET Q q 0 0 0 rg BT 133.04 231.25 Td (Amortization ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 214.75 Td (Depreciation and amortization expense includes costs associated with the purchase of furniture and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 202.75 Td (equipment, capitalized software, leasehold improvements, company-owned aircraft and acquired intangibles. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 190.75 Td (Furniture and equipment and capitalized software costs are depreciated using the straight-line method over the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 178.75 Td (estimated useful life of the asset, generally ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 241.27 178.75 Td (three) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 264.07 178.75 Td ( to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 277.96 178.75 Td (five years) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 320.75 178.75 Td ( beginning in the first full month after the asset is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 166.75 Td (placed in service. Leasehold improvements are amortized using the straight-line method over the shorter of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 154.75 Td (respective estimated useful life or the lease term. Company-owned aircraft are depreciated using the straight-line ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 142.75 Td (method over their estimated useful life. ) Tj ET Q q 0 0 0 rg BT 226.26 142.75 Td (Acquired intangibles primarily relate to contractual rights and are amortized ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 130.75 Td (over their estimated useful lives on a straight-line basis, which range from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 377.43 130.75 Td (three) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 400.22 130.75 Td ( to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 414.12 130.75 Td (seven) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 440.80 130.75 Td ( years.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 105.25 Td (Other Income \(Expense\), Net) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 88.75 Td (Other income \(expense\), net represents non-operating income or expense, including income related to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 76.75 Td (amounts received for contractually reimbursable costs associated with the 2014 acquisition of the Highstar Capital ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 64.75 Td (team and certain Highstar entities \(collectively “Highstar”\).) Tj ET Q endstream endobj 283 0 obj <> endobj 284 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (141) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 712.75 Td (Income T) Tj ET Q q 0 0 0 rg BT 93.03 712.75 Td (axes) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 696.25 Td (Oaktree is a publicly traded partnership. Because it satisfies the qualifying income test, it is not required to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 684.25 Td (be treated as a corporation for U.S. federal and state income tax purposes; rather it is taxed as a partnership. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 672.25 Td (Oaktree Holdings, Inc. and Oaktree ) Tj ET Q q 0 0 0 rg BT 208.47 672.25 Td (AIF Holdings, Inc., two of the Company’) Tj ET Q q 0 0 0 rg BT 383.93 672.25 Td (s Intermediate Holding Companies and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 660.25 Td (wholly-owned corporate subsidiaries, are subject to U.S. federal and state income taxes. ) Tj ET Q q 0 0 0 rg BT 445.63 660.25 Td (The remainder of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 648.25 Td (Oaktree’) Tj ET Q q 0 0 0 rg BT 87.11 648.25 Td (s income is generally not subject to U.S. corporate-level taxation. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 627.25 Td (The Company’) Tj ET Q q 0 0 0 rg BT 150.35 627.25 Td (s ef) Tj ET Q q 0 0 0 rg BT 166.29 627.25 Td (fective tax rate is dependent on many factors, including the estimated nature of many ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 615.25 Td (amounts and the mix of revenues and expenses between the two corporate subsidiaries that are subject to income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 603.25 Td (tax and the three other subsidiaries that are not; consequently) Tj ET Q q 0 0 0 rg BT 322.82 603.25 Td (, the ef) Tj ET Q q 0 0 0 rg BT 353.22 603.25 Td (fective tax rate is subject to significant variation ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 591.25 Td (from period to period. ) Tj ET Q q 0 0 0 rg BT 149.92 591.25 Td (The Company’) Tj ET Q q 0 0 0 rg BT 214.77 591.25 Td (s non-U.S. income or loss before taxes is generally not significant in relation to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 579.25 Td (total pre-tax income or loss and is generally more predictable because, unlike U.S. pre-tax income, it is not ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 567.25 Td (significantly impacted by unrealized gains or losses. Non-U.S. tax expense typically represents a disproportionately ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 555.25 Td (large percentage of total income tax expense because nearly all of the Company’) Tj ET Q q 0 0 0 rg BT 407.87 555.25 Td (s non-U.S. income or loss is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 543.25 Td (subject to corporate-level income tax, whereas a substantial portion of the Company’) Tj ET Q q 0 0 0 rg BT 423.41 543.25 Td (s U.S.-based income or loss is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 531.25 Td (not subject to corporate-level taxes. In addition, changes in the proportion of non-U.S. pre-tax income to total pre-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 519.25 Td (tax income impact the Company’) Tj ET Q q 0 0 0 rg BT 194.38 519.25 Td (s ef) Tj ET Q q 0 0 0 rg BT 210.32 519.25 Td (fective tax rate to the extent non-U.S. rates dif) Tj ET Q q 0 0 0 rg BT 413.58 519.25 Td (fer from the combined U.S. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 507.25 Td (federal and state tax rate.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 486.25 Td (Income taxes are accounted for using the liability method of accounting. Under this method, deferred tax ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 474.25 Td (assets and liabilities are recognized for the expected future tax consequences of dif) Tj ET Q q 0 0 0 rg BT 417.87 474.25 Td (ferences between the carrying ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 462.25 Td (amount of assets and liabilities and their respective tax bases, using currently enacted tax rates. ) Tj ET Q q 0 0 0 rg BT 479.55 462.25 Td (The ef) Tj ET Q q 0 0 0 rg BT 507.72 462.25 Td (fect on ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 450.25 Td (deferred tax assets and liabilities of a change in tax rates is recognized in income in the period when the change is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 438.25 Td (enacted. Deferred tax assets would be reduced by a valuation allowance if it becomes more likely than not that ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 426.25 Td (some portion or all of the deferred tax assets will not be realized. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 405.25 Td (Oaktree analyzes its tax filing positions for all open tax years in all of the U.S. federal, state, local and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 393.25 Td (foreign tax jurisdictions where it is required to file income tax returns. If the Company determines that uncertainties ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 381.25 Td (in tax positions exist, a reserve is established. Oaktree recognizes accrued interest and penalties related to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 369.25 Td (uncertain tax positions within income tax expense in the consolidated statements of operations. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 348.25 Td (T) Tj ET Q q 0 0 0 rg BT 90.50 348.25 Td (ax laws are complex and subject to dif) Tj ET Q q 0 0 0 rg BT 259.29 348.25 Td (ferent interpretations by the taxpayer and respective governmental ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 336.25 Td (taxing authorities. Significant judgment is required in determining tax expense and in evaluating tax positions, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 324.25 Td (including evaluating uncertainties under GAAP) Tj ET Q q 0 0 0 rg BT 254.45 324.25 Td (. Oaktree reviews its tax positions quarterly and adjusts its tax ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 312.25 Td (balances as new information becomes available. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 291.25 Td (The Oaktree funds are generally not subject to U.S. federal and state income taxes and, consequently) Tj ET Q q 0 0 0 rg BT 535.58 291.25 Td (, no ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 279.25 Td (income tax provision has been made in the accompanying consolidated financial statements because individual ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 267.25 Td (partners are responsible for their proportionate share of the taxable income. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 241.75 Td (Comprehensive Income \(Loss\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 225.25 Td (Comprehensive income \(loss\) consists of net income \(loss\) and other gains and losses af) Tj ET Q q 0 0 0 rg BT 479.95 225.25 Td (fecting ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 213.25 Td (unitholders’) Tj ET Q q 0 0 0 rg BT 100.27 213.25 Td ( capital that, under GAAP) Tj ET Q q 0 0 0 rg BT 211.82 213.25 Td (, are excluded from net income \(loss\). Other gains and losses result from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 201.25 Td (unrealized gains and losses on cash-flow hedges and foreign-currency translation adjustments, net of tax. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 175.75 Td (Accounting Policies of Consolidated Funds ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 154.75 Td (The Company deconsolidated substantially all of its investment funds upon adoption of the new ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 142.75 Td (consolidation guidance as of January 1, 2016. Investment vehicles in which we have a significant investment, such ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 130.75 Td (as CLOs and certain Oaktree funds, remain consolidated under GAAP) Tj ET Q q 0 0 0 rg BT 358.93 130.75 Td (. ) Tj ET Q q 0 0 0 rg BT 367.09 130.75 Td (The Company records the economic ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 118.75 Td (interests in those consolidated funds, which are held by third-party investors, as debt obligations of CLOs or non-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 106.75 Td (controlling interests in consolidated funds in the consolidated financial statements.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 81.25 Td (Investment T) Tj ET Q q 0 0 0 rg BT 111.00 81.25 Td (ransactions and Income Recognition ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 64.75 Td (The consolidated funds record investment transactions at cost on trade date for publicly-traded securities or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 52.75 Td (when they have an enforceable right to acquire the security) Tj ET Q q 0 0 0 rg BT 310.58 52.75 Td (, which is generally on the closing date if not publicly ) Tj ET Q endstream endobj 285 0 obj <> endobj 286 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (142) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 712.75 Td (traded. Realized gains and losses on investments are recorded on a specific-identification basis. ) Tj ET Q q 0 0 0 rg BT 483.45 712.75 Td (The consolidated ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 700.75 Td (funds record dividend income on the ex-dividend date and interest income on an accrual basis, unless the related ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 688.75 Td (investment is in default or if collection of the income is otherwise considered doubtful. ) Tj ET Q q 0 0 0 rg BT 431.74 688.75 Td (The consolidated funds may ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 676.75 Td (hold investments that provide for interest payable in-kind rather than in cash, in which case the related income is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 664.75 Td (recorded at its estimated net realizable amount. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 639.25 Td (Income T) Tj ET Q q 0 0 0 rg BT 93.03 639.25 Td (axes) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 622.75 Td (The consolidated funds may invest in operating entities that are treated as partnerships for U.S. federal ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 610.75 Td (income tax purposes which may give rise to unrelated business taxable income or income ef) Tj ET Q q 0 0 0 rg BT 457.30 610.75 Td (fectively connected ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 598.75 Td (with a U.S. trade or business. In such situations, the consolidated funds permit certain investors to elect to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 586.75 Td (participate in these investments through a “blocker structure” using entities that are treated as corporations for U.S. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 574.75 Td (federal income tax purposes and are generally subject to U.S. federal, state and local taxes. ) Tj ET Q q 0 0 0 rg BT 461.22 574.75 Td (The consolidated ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 562.75 Td (funds withhold blocker expenses and tax payments from electing limited partners, which are treated as deemed ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 550.75 Td (distributions to such limited partners pursuant to the terms of the respective limited partnership agreement. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 525.25 Td (Foreign Currency ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 508.75 Td (Investments denominated in non-U.S. currencies are recorded in the consolidated financial statements after ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 496.75 Td (translation into U.S. dollars utilizing rates of exchange on the last business day of the period. Interest and dividend ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 484.75 Td (income is recorded net of foreign withholding taxes and calculated using the exchange rate in ef) Tj ET Q q 0 0 0 rg BT 472.92 484.75 Td (fect when the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 472.75 Td (income is recognized. ) Tj ET Q q 0 0 0 rg BT 151.59 472.75 Td (The ef) Tj ET Q q 0 0 0 rg BT 179.76 472.75 Td (fect of changes in exchange rates on assets and liabilities, income, and realized gains ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 460.75 Td (or losses is included as part of net realized gain \(loss\) on consolidated funds’) Tj ET Q q 0 0 0 rg BT 389.32 460.75 Td ( investments and net change in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 448.75 Td (unrealized appreciation \(depreciation\) on consolidated funds’) Tj ET Q q 0 0 0 rg BT 318.75 448.75 Td ( investments in the consolidated statements of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 436.75 Td (operations. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 411.25 Td (Cash and Cash-equivalents ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 394.75 Td (Cash and cash-equivalents held at the consolidated funds represent cash that, although not legally ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 382.75 Td (restricted, is not available to support the general liquidity needs of Oaktree as the use of such amounts is generally ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 370.75 Td (limited to the investment activities of the consolidated funds. Cash-equivalents, a Level I valuation, include highly ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 358.75 Td (liquid investments such as money market funds, whose carrying value approximates fair value due to its short-term ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 346.75 Td (nature. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 321.25 Td (Receivable for Investments Sold ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 304.75 Td (Receivables for investments sold by the consolidated funds are recorded at net realizable value. Changes ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 292.75 Td (in net realizable value are reflected within net change in unrealized appreciation \(depreciation\) on consolidated ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 280.75 Td (funds’) Tj ET Q q 0 0 0 rg BT 75.81 280.75 Td ( investments and realizations are reflected within net realized gain on consolidated funds’) Tj ET Q q 0 0 0 rg BT 469.56 280.75 Td ( investments in the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 268.75 Td (consolidated statements of operations.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 247.75 Td (Investments, at Fair V) Tj ET Q q 0 0 0 rg BT 152.50 247.75 Td (alue ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 231.25 Td (The consolidated funds include investment limited partnerships and CLOs that reflect their investments, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 219.25 Td (including majority-owned and controlled investments, at fair value. ) Tj ET Q q 0 0 0 rg BT 346.69 219.25 Td (The Company has retained the specialized ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 207.25 Td (investment company accounting guidance under GAAP) Tj ET Q q 0 0 0 rg BT 294.47 207.25 Td ( for investment limited partnerships with respect to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 195.25 Td (consolidated investments and has elected the fair value option for the financial assets of CLOs. ) Tj ET Q q 0 0 0 rg BT 475.12 195.25 Td (Thus, the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 183.25 Td (consolidated investments are reflected in the consolidated statements of financial condition at fair value, with ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 171.25 Td (unrealized gains and losses resulting from changes in fair value reflected as a component of net change in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 159.25 Td (unrealized appreciation \(depreciation\) on consolidated funds’) Tj ET Q q 0 0 0 rg BT 318.75 159.25 Td ( investments in the consolidated statements of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 147.25 Td (operations. Fair value is the amount that would be received to sell an asset or paid to transfer a liability in an ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 135.25 Td (orderly transaction between market participants at the measurement date \(i.e., the exit price\). ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 118.75 Td (Non-publicly traded debt and equity securities and other securities or instruments for which reliable market ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 106.75 Td (quotations are not available are valued by management using valuation methodologies applied on a consistent ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 94.75 Td (basis. ) Tj ET Q q 0 0 0 rg BT 81.00 94.75 Td (These securities may initially be valued at the acquisition price as the best indicator of fair value. ) Tj ET Q q 0 0 0 rg BT 511.59 94.75 Td (The ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 82.75 Td (Company reviews the significant unobservable inputs, valuations of comparable investments and other similar ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 70.75 Td (transactions for investments valued at acquisition price to determine whether another valuation methodology should ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 58.75 Td (be utilized. Subsequent valuations will depend on the facts and circumstances known as of the valuation date and ) Tj ET Q endstream endobj 287 0 obj <> endobj 288 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (143) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 712.75 Td (the application of valuation methodologies as further described below under “—Non-publicly ) Tj ET Q q 0 0 0 rg BT 457.89 712.75 Td (T) Tj ET Q q 0 0 0 rg BT 463.63 712.75 Td (raded Equity and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 700.75 Td (Real Estate Investments.” ) Tj ET Q q 0 0 0 rg BT 169.37 700.75 Td (The fair value may also be based on a pending transaction expected to close after the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 688.75 Td (valuation date.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 49.50 667.75 Td (Exchange-traded Investments ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 651.25 Td (Securities listed on one or more national securities exchanges are valued at their last reported sales price ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 639.25 Td (on the date of valuation. If no sale occurred on the valuation date, the security is valued at the mean of the last ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 627.25 Td (“bid” and “ask” prices on the valuation date. Securities that are not readily marketable due to legal restrictions that ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 615.25 Td (may limit or restrict transferability are generally valued at a discount from quoted market prices. ) Tj ET Q q 0 0 0 rg BT 475.05 615.25 Td (The discount would ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 603.25 Td (reflect the amount market participants would require due to the risk relating to the inability to access a public market ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 591.25 Td (for the security for the specified period and would vary depending on the nature and duration of the restriction and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 579.25 Td (the perceived risk and volatility of the underlying securities. Securities with longer duration restrictions or higher ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 567.25 Td (volatility are generally valued at a higher discount. Such discounts are generally estimated based on put option ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 555.25 Td (models or an analysis of market studies. Instances where the Company has applied discounts to quoted prices of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 543.25 Td (restricted listed securities have been infrequent. ) Tj ET Q q 0 0 0 rg BT 266.66 543.25 Td (The impact of such discounts is not material to the Company’) Tj ET Q q 0 0 0 rg BT 536.60 543.25 Td (s ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 531.25 Td (consolidated statements of financial condition and results of operations for all periods presented. ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 49.50 510.25 Td (Credit-oriented Investments \(including Real Estate Loan Portfolios\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 493.75 Td (Investments in corporate and government debt which are not listed or admitted to trading on any securities ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 481.75 Td (exchange are valued at the mean of the last bid and ask prices on the valuation date based on quotations supplied ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 469.75 Td (by recognized quotation services or by reputable broker-dealers. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 448.75 Td (The market-yield approach is considered in the valuation of non-publicly traded debt securities, utilizing ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 436.75 Td (expected future cash flows and discounted using estimated current market rates. Discounted cash-flow calculations ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 424.75 Td (may be adjusted to reflect current market conditions and/or the perceived credit risk of the borrower) Tj ET Q q 0 0 0 rg BT 488.05 424.75 Td (. Consideration ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 412.75 Td (is also given to a borrower) Tj ET Q q 0 0 0 rg BT 166.59 412.75 Td (’) Tj ET Q q 0 0 0 rg BT 168.64 412.75 Td (s ability to meet principal and interest obligations; this may include an evaluation of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 400.75 Td (collateral and/or the underlying value of the borrower utilizing techniques described below under “—Non-publicly ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 388.75 Td (T) Tj ET Q q 0 0 0 rg BT 55.24 388.75 Td (raded Equity and Real Estate Investments.” ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 49.50 367.75 Td (Non-publicly T) Tj ET Q q 0 0 0 rg BT 112.67 367.75 Td (raded Equity and Real Estate Investments ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 351.25 Td (The fair value of equity and real estate investments is determined using a cost, market or income approach. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 339.25 Td (The cost approach is based on the current cost of reproducing a real estate investment less deterioration and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 327.25 Td (functional and economic obsolescence. ) Tj ET Q q 0 0 0 rg BT 229.43 327.25 Td (The market approach utilizes valuations of comparable public companies ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 315.25 Td (and transactions, and generally seeks to establish the enterprise value of the portfolio company or investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 303.25 Td (property using a market-multiple methodology) Tj ET Q q 0 0 0 rg BT 251.63 303.25 Td (. ) Tj ET Q q 0 0 0 rg BT 259.79 303.25 Td (This approach takes into account the financial measure \(such as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 291.25 Td (EBITDA, adjusted EBITDA, free cash flow) Tj ET Q q 0 0 0 rg BT 234.58 291.25 Td (, net operating income, net income, book value or net asset value\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 279.25 Td (believed to be most relevant for the given company or investment property) Tj ET Q q 0 0 0 rg BT 377.26 279.25 Td (. Consideration also may be given to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 267.25 Td (factors such as acquisition price of the security or investment property) Tj ET Q q 0 0 0 rg BT 357.79 267.25 Td (, historical and projected operational and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 255.25 Td (financial results for the portfolio company) Tj ET Q q 0 0 0 rg BT 230.52 255.25 Td (, the strengths and weaknesses of the portfolio company or investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 243.25 Td (property relative to its comparable companies or properties, industry trends, general economic and market ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 231.25 Td (conditions, and others deemed relevant. ) Tj ET Q q 0 0 0 rg BT 232.77 231.25 Td (The income approach is typically a discounted cash-flow method that ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 219.25 Td (incorporates expected timing and level of cash flows. It incorporates assumptions in determining growth rates, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 207.25 Td (income and expense projections, discount and capitalization rates, capital structure, terminal values, and other ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 195.25 Td (factors. ) Tj ET Q q 0 0 0 rg BT 87.66 195.25 Td (The applicability and weight assigned to market and income approaches are determined based on the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 183.25 Td (availability of reliable projections and comparable companies and transactions. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 162.25 Td (The valuation of securities may be impacted by expectations of investors’) Tj ET Q q 0 0 0 rg BT 408.63 162.25 Td ( receptiveness to a public of) Tj ET Q q 0 0 0 rg BT 532.40 162.25 Td (fering ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 150.25 Td (of the securities, the size of the holding of the securities and any associated control, information with respect to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 138.25 Td (transactions or of) Tj ET Q q 0 0 0 rg BT 126.02 138.25 Td (fers for the securities \(including the transaction pursuant to which the investment was made and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 126.25 Td (the elapsed time from the date of the investment to the valuation date\), and applicable restrictions on the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 114.25 Td (transferability of the securities. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 93.25 Td (These valuation methodologies involve a significant degree of management judgment. ) Tj ET Q q 0 0 0 rg BT 471.30 93.25 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 522.24 93.25 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 81.25 Td (valuations by the Company do not necessarily represent the amounts that eventually may be realized from sales or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 69.25 Td (other dispositions of investments. Fair values may dif) Tj ET Q q 0 0 0 rg BT 286.64 69.25 Td (fer from the values that would have been used had a ready ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 57.25 Td (market for the investment existed, and the dif) Tj ET Q q 0 0 0 rg BT 248.87 57.25 Td (ferences could be material to the consolidated financial statements. ) Tj ET Q endstream endobj 289 0 obj <> endobj 290 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (144) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 712.75 Td (Securities Sold Short ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 696.25 Td (Securities sold short represent obligations of the consolidated funds to make a future delivery of a specific ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 684.25 Td (security and, correspondingly) Tj ET Q q 0 0 0 rg BT 178.83 684.25 Td (, create an obligation to purchase the security at prevailing market prices \(or deliver ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 672.25 Td (the security) Tj ET Q q 0 0 0 rg BT 99.89 672.25 Td (, if owned by the consolidated funds\) as of the delivery date. ) Tj ET Q q 0 0 0 rg BT 370.61 672.25 Td (As a result, these short sales create the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 660.25 Td (risk that the funds’) Tj ET Q q 0 0 0 rg BT 130.28 660.25 Td ( obligations to satisfy the delivery requirement may exceed the amount recorded in the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 648.25 Td (accompanying consolidated statements of financial condition. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 627.25 Td (Securities sold short are recorded at fair value, with the resulting change in value reflected as a component ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 615.25 Td (of net change in unrealized appreciation \(depreciation\) on consolidated funds’) Tj ET Q q 0 0 0 rg BT 392.69 615.25 Td ( investments in the consolidated ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 603.25 Td (statements of operations. When the securities are delivered, any gain or loss is included in net realized gain on ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 591.25 Td (consolidated funds’) Tj ET Q q 0 0 0 rg BT 134.74 591.25 Td ( investments. ) Tj ET Q q 0 0 0 rg BT 199.03 591.25 Td (The funds maintain cash deposits with prime brokers in order to cover their ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 579.25 Td (obligations on short sales. ) Tj ET Q q 0 0 0 rg BT 170.50 579.25 Td (These amounts are included in due from brokers in the consolidated statements of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 567.25 Td (financial condition. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 545.25 Td (Options ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 528.75 Td (The purchase price of a call option or a put option is recorded as an investment, which is carried at fair ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 516.75 Td (value. If a purchased option expires, a loss in the amount of the cost of the option is realized. When there is a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 504.75 Td (closing sale transaction, a gain or loss is realized if the proceeds are greater or less than, respectively) Tj ET Q q 0 0 0 rg BT 498.43 504.75 Td (, the cost of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 492.75 Td (the option. When a call option is exercised, the cost of the security purchased upon exercise is increased by the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 480.75 Td (premium originally paid. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 459.75 Td (When a consolidated fund writes an option, the premium received is recorded as a liability and is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 447.75 Td (subsequently adjusted to the current fair value of the option written. If a written option expires, a gain is realized in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 435.75 Td (the amount of the premium received. ) Tj ET Q q 0 0 0 rg BT 217.74 435.75 Td (The dif) Tj ET Q q 0 0 0 rg BT 248.13 435.75 Td (ference between the premium and the amount paid on ef) Tj ET Q q 0 0 0 rg BT 499.22 435.75 Td (fecting a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 423.75 Td (closing purchase transaction, including brokerage commissions, is also treated as a realized gain or loss. ) Tj ET Q q 0 0 0 rg BT 519.00 423.75 Td (The ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 411.75 Td (writer of an option bears the market risk of an unfavorable change in the price of the security underlying the written ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 399.75 Td (option. Options written are included in accounts payable, accrued expenses and other liabilities in the consolidated ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 387.75 Td (statements of financial condition. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 362.25 Td (T) Tj ET Q q 0 0 0 rg BT 55.24 362.25 Td (otal-return Swaps ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 345.75 Td (A) Tj ET Q q 0 0 0 rg BT 91.62 345.75 Td ( total-return swap is an agreement to exchange cash flows based on an underlying asset. Pursuant to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 333.75 Td (these agreements, a fund may deposit collateral with the counterparty and may pay a swap fee equal to a fixed ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 321.75 Td (percentage of the value of the underlying security \(notional amount\). ) Tj ET Q q 0 0 0 rg BT 356.36 321.75 Td (A) Tj ET Q q 0 0 0 rg BT 362.47 321.75 Td ( fund earns interest on cash collateral held ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 309.75 Td (on account with the counterparty and may be required to deposit additional collateral equal to the unrealized ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 297.75 Td (appreciation or depreciation on the underlying asset. Changes in the value of the swaps, which are recorded as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 285.75 Td (unrealized gains or losses, are based on changes in the underlying value of the security) Tj ET Q q 0 0 0 rg BT 436.78 285.75 Td (. ) Tj ET Q q 0 0 0 rg BT 444.56 285.75 Td (All amounts exchanged ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 273.75 Td (with the swap counterparty representing capital appreciation or depreciation, dividend income and expense, items ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 261.75 Td (of interest income on short proceeds, borrowing costs on short sales, and commissions are recorded as realized ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 249.75 Td (gains or losses. Dividend income and expense on the underlying assets are accrued as unrealized gains or losses ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 237.75 Td (on the ex-date. ) Tj ET Q q 0 0 0 rg BT 121.59 237.75 Td (The average notional amounts of total-return swap contracts outstanding during 2016 were ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 525.72 237.75 Td ($7,050) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 556.31 237.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 225.75 Td (long and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 90.65 225.75 Td ($1) Tj ET Q q 0 0 0 rg BT 101.03 225.75 Td (1,938) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 126.05 225.75 Td ( short, and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 176.08 225.75 Td ($2,913,281) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 226.13 225.75 Td ( long and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 270.06 225.75 Td ($15,644) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 306.20 225.75 Td ( short for 2015.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 200.25 Td (Due From Brokers ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 183.75 Td (Due from brokers represents cash owned by the consolidated funds and cash collateral on deposit with ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 171.75 Td (brokers and counterparties that are used as collateral for the consolidated funds’) Tj ET Q q 0 0 0 rg BT 404.90 171.75 Td ( securities and swaps. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 146.25 Td (Risks and Uncertainties ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 125.25 Td (Certain consolidated funds invest primarily in the securities of entities that are undergoing, or are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 113.25 Td (considered likely to undergo, reorganization, debt restructuring, liquidation or other extraordinary transactions. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 101.25 Td (Investments in such entities are considered speculative and involve substantial risk of principal loss. Certain of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 89.25 Td (consolidated funds’) Tj ET Q q 0 0 0 rg BT 134.74 89.25 Td ( investments may also consist of securities that are thinly traded, securities and other assets for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 77.25 Td (which no market exists, and securities which are restricted as to their transferability) Tj ET Q q 0 0 0 rg BT 415.57 77.25 Td (. ) Tj ET Q q 0 0 0 rg BT 423.36 77.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 473.76 77.25 Td (, investments are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 65.25 Td (subject to concentration and industry risks, reflecting numerous factors, including political, regulatory or economic ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 53.25 Td (issues that could cause the investments and their markets to be relatively illiquid and their prices relatively volatile. ) Tj ET Q endstream endobj 291 0 obj <> endobj 292 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (145) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 712.75 Td (Investments denominated in non-U.S. currencies or involving non-U.S. domiciled entities are subject to risks and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 700.75 Td (special considerations not typically associated with U.S. investments. Such risks may include, but are not limited to, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 688.75 Td (investment and repatriation restrictions; currency exchange-rate fluctuations; adverse political, social and economic ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 676.75 Td (developments; less liquidity; smaller capital markets; and certain local tax law considerations. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 655.75 Td (Credit risk is the potential loss that may be incurred from the failure of a counterparty or an issuer to make ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 643.75 Td (payments according to the terms of a contract. Some consolidated funds are subject to additional credit risk due to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 631.75 Td (strategies of investing in debt of financially distressed issuers or derivatives, as well as involvement in privately-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 619.75 Td (negotiated structured notes and structured-credit transactions. Counterparties include custodian banks, major ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 607.75 Td (brokerage houses and their af) Tj ET Q q 0 0 0 rg BT 182.19 607.75 Td (filiates. ) Tj ET Q q 0 0 0 rg BT 218.68 607.75 Td (The Company monitors the creditworthiness of the financial institutions with ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 595.75 Td (which it conducts business. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 574.75 Td (Bank debt has exposure to certain types of risk, including interest rate, market, and the potential non-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 562.75 Td (payment of principal and interest as a result of default or bankruptcy of the issuer) Tj ET Q q 0 0 0 rg BT 406.92 562.75 Td (. Loans are generally subject to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 550.75 Td (prepayment risk, which will af) Tj ET Q q 0 0 0 rg BT 179.36 550.75 Td (fect the maturity of such loans. ) Tj ET Q q 0 0 0 rg BT 320.36 550.75 Td (The consolidated funds may enter into bank debt ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 538.75 Td (participation agreements through contractual relationships with a third-party intermediary) Tj ET Q q 0 0 0 rg BT 440.07 538.75 Td (, causing the consolidated ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 526.75 Td (funds to assume the credit risk of both the borrower and the intermediary) Tj ET Q q 0 0 0 rg BT 370.59 526.75 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 505.75 Td (Certain consolidated funds may invest in real property and real estate-related investments, including ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 493.75 Td (commercial mortgage-backed securities \(“CMBS”\) and real estate loans, that entail substantial inherent risks. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 481.75 Td (There can be no assurance that such investments will increase in value or that significant losses will not be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 469.75 Td (incurred. CMBS are subject to a number of risks, including credit, interest rate, prepayment and market. ) Tj ET Q q 0 0 0 rg BT 515.08 469.75 Td (These ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 457.75 Td (risks can be af) Tj ET Q q 0 0 0 rg BT 113.79 457.75 Td (fected by a number of factors, including general economic conditions, particularly those in the area ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 445.75 Td (where the related mortgaged properties are located, the level of the borrowers’) Tj ET Q q 0 0 0 rg BT 396.55 445.75 Td ( equity in the mortgaged properties, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 433.75 Td (and the relative timing and rate of delinquencies and prepayments of mortgage loans bearing a higher rate of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 421.75 Td (interest. Real estate loans include residential or commercial loans that are non-performing at the time of their ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 409.75 Td (acquisition or that become non-performing following their acquisition. Non-performing real estate loans may require ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 397.75 Td (a substantial amount of workout negotiations or restructuring, which may entail, among other things, a substantial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 385.75 Td (reduction in the interest rate and/or write-down of the principal balance. Moreover) Tj ET Q q 0 0 0 rg BT 411.37 385.75 Td (, foreclosure on collateral ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 373.75 Td (securing one or more real estate loans held by the consolidated funds may be necessary) Tj ET Q q 0 0 0 rg BT 441.21 373.75 Td (, which may be lengthy and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 361.75 Td (expensive. Residential loans are typically subject to risks associated with the value of the underlying properties, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 349.75 Td (which may be af) Tj ET Q q 0 0 0 rg BT 121.58 349.75 Td (fected by a number of factors including general economic conditions, mortgage qualification ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 337.75 Td (standards, local market conditions such as employment levels, the supply of homes, and the safety) Tj ET Q q 0 0 0 rg BT 486.21 337.75 Td (, convenience ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 325.75 Td (and attractiveness of the properties and neighborhoods. Commercial loans are typically subject to risks associated ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 313.75 Td (with the ability of the borrower to repay) Tj ET Q q 0 0 0 rg BT 220.51 313.75 Td (, which may be impacted by general economic conditions, as well as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 301.75 Td (borrower-specific factors including the quality of management, the ability to generate suf) Tj ET Q q 0 0 0 rg BT 438.42 301.75 Td (ficient income to make ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 289.75 Td (scheduled principal and interest payments, or the ability to obtain alternative financing to repay the loan.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 268.75 Td (Certain consolidated funds hold over-the-counter derivatives that may allow counterparties to terminate ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 256.75 Td (derivative contracts prior to maturity under certain circumstances, thereby resulting in an accelerated payment of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 244.75 Td (any net liability owed to the counterparty) Tj ET Q q 0 0 0 rg BT 227.20 244.75 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 223.75 Td (Recent ) Tj ET Q q 0 0 0 rg BT 85.25 223.75 Td (Accounting Developments ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 202.75 Td (In January 2017, the F) Tj ET Q q 0 0 0 rg BT 185.01 202.75 Td (ASB issued guidance to simplify the accounting for goodwill impairments by ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 190.75 Td (eliminating step 2 of the goodwill impairment test. ) Tj ET Q q 0 0 0 rg BT 273.32 190.75 Td (This step requires an entity to perform a hypothetical purchase ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 178.75 Td (price allocation to derive the implied fair value of goodwill. Under the new guidance, an impairment loss is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 166.75 Td (recognized if the carrying value of a reporting unit exceeds its fair value. ) Tj ET Q q 0 0 0 rg BT 372.83 166.75 Td (The impairment loss would equal the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 154.75 Td (amount of that excess, limited to the total amount of goodwill. ) Tj ET Q q 0 0 0 rg BT 325.21 154.75 Td (All other goodwill impairment guidance remains ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 142.75 Td (largely unchanged. Entities will continue to have the option to perform a qualitative assessment to determine if a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 130.75 Td (quantitative impairment test is necessary) Tj ET Q q 0 0 0 rg BT 229.39 130.75 Td (. ) Tj ET Q q 0 0 0 rg BT 237.55 130.75 Td (The guidance is ef) Tj ET Q q 0 0 0 rg BT 319.08 130.75 Td (fective for the Company in the first quarter of 2020 on ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 118.75 Td (a prospective basis, with early adoption permitted. ) Tj ET Q q 0 0 0 rg BT 276.66 118.75 Td (The Company expects that adoption of this guidance will not ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 106.75 Td (have a material impact on its consolidated financial statements. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 85.75 Td (In January 2017, the F) Tj ET Q q 0 0 0 rg BT 185.01 85.75 Td (ASB issued guidance that amends the definition of a business. ) Tj ET Q q 0 0 0 rg BT 467.23 85.75 Td (The guidance ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 73.75 Td (provides a framework to help determine whether a transaction involves an asset or a business. In general, if ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 61.75 Td (substantially all of the gross assets acquired or disposed of are concentrated in a single identifiable asset or group ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 49.75 Td (of similar identifiable assets, the transaction is deemed to not involve a business. ) Tj ET Q q 0 0 0 rg BT 412.29 49.75 Td (This framework is expected to ) Tj ET Q endstream endobj 293 0 obj <> endobj 294 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (146) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 712.75 Td (reduce the number of transactions that an entity must further evaluate to determine whether they are business ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 700.75 Td (combinations or asset acquisitions. ) Tj ET Q q 0 0 0 rg BT 209.95 700.75 Td (The definition of a business may also af) Tj ET Q q 0 0 0 rg BT 385.43 700.75 Td (fect other aspects of accounting, such ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 688.75 Td (as goodwill impairment or consolidation. ) Tj ET Q q 0 0 0 rg BT 232.19 688.75 Td (The guidance is ef) Tj ET Q q 0 0 0 rg BT 313.72 688.75 Td (fective for the Company in the first quarter of 2018, on a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 676.75 Td (prospective basis. Early adoption is permitted. ) Tj ET Q q 0 0 0 rg BT 261.64 676.75 Td (The Company expects that adoption of this guidance will not have a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 664.75 Td (material impact on its consolidated financial statements. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 643.75 Td (In October 2016, the F) Tj ET Q q 0 0 0 rg BT 185.01 643.75 Td (ASB amended the consolidation guidance with respect to a single decision maker) Tj ET Q q 0 0 0 rg BT 545.59 643.75 Td (’) Tj ET Q q 0 0 0 rg BT 547.63 643.75 Td (s ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 631.75 Td (evaluation of interests held through related parties that are under common control when it is determining whether it ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 619.75 Td (is the primary beneficiary of a VIE. Under the guidance, a reporting entity considers its indirect economic interests ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 607.75 Td (in a VIE held through related parties that are under common control on a proportionate basis, consistent with the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 595.75 Td (way it would evaluate its indirect economic interests held through related parties that are not under common control. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 583.75 Td (Previously) Tj ET Q q 0 0 0 rg BT 94.89 583.75 Td (, a reporting entity’) Tj ET Q q 0 0 0 rg BT 176.97 583.75 Td (s indirect economic interests in a VIE held through related parties that are under ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 571.75 Td (common control were considered to be the equivalent of direct interests in their entirety) Tj ET Q q 0 0 0 rg BT 433.40 571.75 Td (. ) Tj ET Q q 0 0 0 rg BT 441.56 571.75 Td (The guidance is ef) Tj ET Q q 0 0 0 rg BT 523.09 571.75 Td (fective ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 559.75 Td (for the Company in the first quarter of 2017, with early adoption permitted. ) Tj ET Q q 0 0 0 rg BT 381.72 559.75 Td (The Company expects that adoption of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 547.75 Td (this guidance will not have a material impact on its consolidated financial statements. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 526.75 Td (In ) Tj ET Q q 0 0 0 rg BT 96.07 526.75 Td (August 2016, the F) Tj ET Q q 0 0 0 rg BT 180.02 526.75 Td (ASB issued guidance on the classification of certain cash receipts and payments in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 514.75 Td (the statement of cash flows. ) Tj ET Q q 0 0 0 rg BT 178.83 514.75 Td (The amendments add to or clarify guidance on a number of cash flow issues, including ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 502.75 Td (debt prepayment or debt extinguishment costs, contingent consideration payments made after a business ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 490.75 Td (combination, distributions received from equity-method investees and beneficial interests in securitization ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 478.75 Td (transactions. ) Tj ET Q q 0 0 0 rg BT 111.57 478.75 Td (The guidance is ef) Tj ET Q q 0 0 0 rg BT 193.11 478.75 Td (fective for the Company in the first quarter of 2018, generally on a retrospective ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 466.75 Td (basis, with early adoption permitted. ) Tj ET Q q 0 0 0 rg BT 214.40 466.75 Td (The Company expects that adoption of this guidance will not have a material ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 454.75 Td (impact on its consolidated financial statements. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 433.75 Td (In March 2016, the F) Tj ET Q q 0 0 0 rg BT 177.22 433.75 Td (ASB issued guidance that af) Tj ET Q q 0 0 0 rg BT 302.68 433.75 Td (fects several aspects of accounting for employee share-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 421.75 Td (based payment awards. ) Tj ET Q q 0 0 0 rg BT 161.05 421.75 Td (The amendments would impact the accounting for income taxes, forfeitures and statutory ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 409.75 Td (tax withholding requirements, as well as classification in the statement of cash flows. ) Tj ET Q q 0 0 0 rg BT 428.39 409.75 Td (The Company will adopt the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 397.75 Td (guidance in the first quarter of 2017. ) Tj ET Q q 0 0 0 rg BT 214.98 397.75 Td (The Company expects that adoption of this guidance will not have a material ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 385.75 Td (impact on its consolidated financial statements. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 364.75 Td (In March 2016, the F) Tj ET Q q 0 0 0 rg BT 177.22 364.75 Td (ASB issued guidance eliminating the requirement to retroactively apply the equity ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 352.75 Td (method of accounting when a reporting entity obtains significant influence over an investment \(e.g., due to an ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 340.75 Td (increase in ownership\) that previously had been accounted for under the cost basis or at fair value. Instead, the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 328.75 Td (reporting entity would be required to apply the equity method of accounting prospectively from the date significant ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 316.75 Td (influence was obtained. ) Tj ET Q q 0 0 0 rg BT 159.39 316.75 Td (The cost of the additional interest in the investee, if any) Tj ET Q q 0 0 0 rg BT 402.68 316.75 Td (, should be added to the current ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 304.75 Td (basis of the investment. ) Tj ET Q q 0 0 0 rg BT 159.93 304.75 Td (The amendment also provides guidance for available-for-sale investments that become ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 292.75 Td (eligible for the equity method of accounting. In those cases, any unrealized gain or loss recorded within ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 280.75 Td (accumulated other comprehensive income should be recognized in earnings as of the date the investment initially ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 268.75 Td (qualifies for the use of the equity method. ) Tj ET Q q 0 0 0 rg BT 237.77 268.75 Td (The Company will adopt the guidance in the first quarter of 2017 on a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 256.75 Td (prospective basis. ) Tj ET Q q 0 0 0 rg BT 134.92 256.75 Td (The Company expects that adoption of this guidance will not have a material impact on its ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 244.75 Td (consolidated financial statements.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 223.75 Td (In February 2016, the F) Tj ET Q q 0 0 0 rg BT 189.45 223.75 Td (ASB issued guidance that will require a lessee to recognize a lease asset and a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 211.75 Td (lease liability for most of its operating leases. Under current GAAP) Tj ET Q q 0 0 0 rg BT 343.90 211.75 Td (, operating leases are not recognized by a lessee ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 199.75 Td (in its statements of financial position. In general, the new asset and liability will each equal the present value of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 187.75 Td (lease payments. ) Tj ET Q q 0 0 0 rg BT 127.69 187.75 Td (The guidance does not significantly change the recognition, measurement and presentation of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 175.75 Td (expenses and cash flows arising from a lease by a lessee. ) Tj ET Q q 0 0 0 rg BT 312.79 175.75 Td (The Company expects to adopt the guidance in the first ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 163.75 Td (quarter of 2019, under the modified retrospective transition approach, which requires application of the new ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 151.75 Td (guidance at the beginning of the earliest comparative period presented. ) Tj ET Q q 0 0 0 rg BT 370.09 151.75 Td (The Company does not expect that ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 139.75 Td (adoption will have a material impact on its consolidated statements of operations because all of its leases are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 127.75 Td (currently classified as operating leases, which under the guidance will continue to be recognized as expense on a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 115.75 Td (straight-line basis. ) Tj ET Q q 0 0 0 rg BT 135.47 115.75 Td (The adoption, however) Tj ET Q q 0 0 0 rg BT 236.65 115.75 Td (, will result in a significant gross up in total assets and total liabilities on ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 103.75 Td (the Company’) Tj ET Q q 0 0 0 rg BT 111.02 103.75 Td (s consolidated statements of financial position. Please see note 16 for more information on the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 91.75 Td (Company’) Tj ET Q q 0 0 0 rg BT 94.34 91.75 Td (s minimum lease payments as of December 31, 2016.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 70.75 Td (In January 2016, the F) Tj ET Q q 0 0 0 rg BT 185.01 70.75 Td (ASB issued guidance that changes the classification and measurement of financial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 58.75 Td (instruments and amends certain disclosure requirements associated with the fair value of financial instruments. ) Tj ET Q q 0 0 0 rg BT 545.12 58.75 Td (The ) Tj ET Q endstream endobj 295 0 obj <> endobj 296 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (147) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 712.75 Td (amendments revise the accounting related to \(a\) the classification and measurement of investments in equity ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 700.75 Td (investments and \(b\) the presentation of certain fair value changes for financial liabilities measured at fair value. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 688.75 Td (Specifically) Tj ET Q q 0 0 0 rg BT 98.78 688.75 Td (, the guidance generally requires equity investments to be carried at fair value with changes flowing ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 676.75 Td (through net income. ) Tj ET Q q 0 0 0 rg BT 143.26 676.75 Td (This requirement does not apply to equity-method investments. For financial liabilities ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 664.75 Td (measured at fair value, the guidance requires fair value changes attributable to instrument-specific credit risk to be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 652.75 Td (presented separately in other comprehensive income, as opposed to reflecting the entire fair-value change in net ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 640.75 Td (income. ) Tj ET Q q 0 0 0 rg BT 89.89 640.75 Td (The guidance is ef) Tj ET Q q 0 0 0 rg BT 171.43 640.75 Td (fective for the Company in the first quarter of 2019, with early adoption permitted. ) Tj ET Q q 0 0 0 rg BT 535.33 640.75 Td (The ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 628.75 Td (Company is currently evaluating the ef) Tj ET Q q 0 0 0 rg BT 219.41 628.75 Td (fect that adoption will have on its consolidated financial statements. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 607.75 Td (In ) Tj ET Q q 0 0 0 rg BT 96.07 607.75 Td (April 2015, the F) Tj ET Q q 0 0 0 rg BT 168.89 607.75 Td (ASB issued guidance that changes the presentation of debt issuance costs in the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 595.75 Td (statements of financial position. Previously) Tj ET Q q 0 0 0 rg BT 239.96 595.75 Td (, such costs were reflected in the statements of financial position as a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 583.75 Td (deferred asset. ) Tj ET Q q 0 0 0 rg BT 121.58 583.75 Td (The new guidance requires these costs to be presented as a direct deduction from the related debt ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 571.75 Td (liability and to be amortized as interest expense. ) Tj ET Q q 0 0 0 rg BT 268.33 571.75 Td (The amendment does not af) Tj ET Q q 0 0 0 rg BT 393.23 571.75 Td (fect the current guidance on the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 559.75 Td (recognition and measurement of debt issuance costs. ) Tj ET Q q 0 0 0 rg BT 291.68 559.75 Td (The Company adopted the guidance in the first quarter of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 547.75 Td (2016 on a retrospective basis. ) Tj ET Q q 0 0 0 rg BT 188.29 547.75 Td (The adoption resulted in the reclassification of deferred debt issuance costs related ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 535.75 Td (to the Company and the consolidated funds, respectively) Tj ET Q q 0 0 0 rg BT 300.02 535.75 Td (, of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 316.70 535.75 Td ($3.6 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 367.28 535.75 Td ( and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 389.52 535.75 Td ($44.7 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 445.66 535.75 Td ( as of December 31, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 523.75 Td (2015, from other assets to debt obligations in the consolidated statements of financial condition.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 502.75 Td (In February 2015, the F) Tj ET Q q 0 0 0 rg BT 189.45 502.75 Td (ASB amended its consolidation guidance to end the deferral granted to investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 490.75 Td (companies with respect to applying VIE guidance. ) Tj ET Q q 0 0 0 rg BT 275.56 490.75 Td (The new guidance does not af) Tj ET Q q 0 0 0 rg BT 409.36 490.75 Td (fect the five characteristics that ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 478.75 Td (determine if an entity is a VIE; rather) Tj ET Q q 0 0 0 rg BT 210.69 478.75 Td (, it focuses on the consolidation criteria used to evaluate whether certain legal ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 466.75 Td (entities should be consolidated. ) Tj ET Q q 0 0 0 rg BT 194.05 466.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 244.45 466.75 Td (, the new guidance eliminates the presumption that a general partner ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 454.75 Td (should consolidate a limited partnership under the voting model. ) Tj ET Q q 0 0 0 rg BT 337.83 454.75 Td (The amendment is intended to simplify the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 442.75 Td (consolidation guidance by placing more emphasis on risk of loss when determining a controlling financial interest, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 430.75 Td (reducing the frequency of the application of related-party guidance when determining a controlling financial interest ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 418.75 Td (in a VIE and providing more clarity for reporting entities that typically make use of limited partnerships or VIEs. ) Tj ET Q q 0 0 0 rg BT 541.21 418.75 Td (The ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 406.75 Td (Company adopted the guidance in the first quarter of 2016 on a modified retrospective basis as of January 1, 2016. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 394.75 Td (As a result, prior periods were not recast; instead, a cumulative-ef) Tj ET Q q 0 0 0 rg BT 340.01 394.75 Td (fect adjustment to equity as of January 1, 2016 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 382.75 Td (was recorded. ) Tj ET Q q 0 0 0 rg BT 117.68 382.75 Td (The adoption resulted in a reduction to total consolidated assets, liabilities, non-controlling ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 370.75 Td (redeemable interests in consolidated funds and unitholders' capital as of January 1, 2016 of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 457.22 370.75 Td ($45.7 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 510.60 370.75 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 516.16 370.75 Td ($7.6 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 358.75 Td (billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 75.07 358.75 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.63 358.75 Td ($38.0 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 134.00 358.75 Td ( and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 156.24 358.75 Td ($90.6 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 212.39 358.75 Td (, respectively) Tj ET Q q 0 0 0 rg BT 270.00 358.75 Td (. ) Tj ET Q q 0 0 0 rg BT 278.15 358.75 Td (There was no impact on retained earnings or net income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 346.75 Td (attributable to the Company) Tj ET Q q 0 0 0 rg BT 171.61 346.75 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 325.75 Td (In ) Tj ET Q q 0 0 0 rg BT 96.07 325.75 Td (August 2014, the F) Tj ET Q q 0 0 0 rg BT 180.02 325.75 Td (ASB issued guidance on determining when and how reporting entities must disclose ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 313.75 Td (going-concern uncertainties in their financial statements. ) Tj ET Q q 0 0 0 rg BT 304.46 313.75 Td (The guidance requires management to perform interim ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 301.75 Td (and annual assessments of an entity’) Tj ET Q q 0 0 0 rg BT 213.87 301.75 Td (s ability to continue as a going concern within one year of the date of issuance ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 289.75 Td (of the entity’) Tj ET Q q 0 0 0 rg BT 103.24 289.75 Td (s financial statements. ) Tj ET Q q 0 0 0 rg BT 207.18 289.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 257.58 289.75 Td (, an entity must provide certain disclosures if there is substantial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 277.75 Td (doubt about the entity’) Tj ET Q q 0 0 0 rg BT 147.73 277.75 Td (s ability to continue as a going concern. ) Tj ET Q q 0 0 0 rg BT 328.21 277.75 Td (The Company adopted the guidance in the fourth ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 265.75 Td (quarter of 2016, with no impact on its consolidated financial statements.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 244.75 Td (In ) Tj ET Q q 0 0 0 rg BT 96.07 244.75 Td (August 2014, the F) Tj ET Q q 0 0 0 rg BT 180.02 244.75 Td (ASB issued guidance on measuring the financial assets and financial liabilities of a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 232.75 Td (consolidated collateralized financing entity) Tj ET Q q 0 0 0 rg BT 235.54 232.75 Td (, such as a CLO. ) Tj ET Q q 0 0 0 rg BT 315.39 232.75 Td (The guidance applies to reporting entities that are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 220.75 Td (required to consolidate a collateralized financing entity under the VIE guidance when \(a\) the reporting entity ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 208.75 Td (measures all of the financial assets and financial liabilities of that consolidated financing entity at fair value in the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 196.75 Td (consolidated financial statements and \(b\) the changes in the fair values of those financial assets and financial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 184.75 Td (liabilities are reflected in earnings. ) Tj ET Q q 0 0 0 rg BT 205.51 184.75 Td (The guidance provides an alternative for measuring the financial assets and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 172.75 Td (financial liabilities of a consolidated collateralized financing entity to eliminate dif) Tj ET Q q 0 0 0 rg BT 402.85 172.75 Td (ferences in the fair value of those ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 160.75 Td (financial assets and financial liabilities as determined under GAAP) Tj ET Q q 0 0 0 rg BT 341.15 160.75 Td (. In the first quarter of 2016, the Company ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 148.75 Td (adopted the guidance on a modified retrospective basis, as of January 1, 2016. ) Tj ET Q q 0 0 0 rg BT 404.18 148.75 Td (As a result, prior periods were not ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 136.75 Td (recast and a cumulative-ef) Tj ET Q q 0 0 0 rg BT 166.60 136.75 Td (fect reduction of unitholders’) Tj ET Q q 0 0 0 rg BT 291.30 136.75 Td ( capital in the amount of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 400.26 136.75 Td ($32.1 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 456.40 136.75 Td ( was recorded as of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 124.75 Td (January 1, 2016.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 103.75 Td (In May 2014, the F) Tj ET Q q 0 0 0 rg BT 168.33 103.75 Td (ASB issued guidance on revenue recognition that superseded most existing revenue ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 91.75 Td (recognition guidance, including industry-specific. ) Tj ET Q q 0 0 0 rg BT 269.44 91.75 Td (The new guidance outlined a single comprehensive model for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 79.75 Td (entities to use in accounting for revenue arising from contracts with customers, and provides a largely principles-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 67.75 Td (based framework for addressing revenue recognition issues on a comprehensive basis. Under the new guidance, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 55.75 Td (revenue would be recognized when an entity satisfies a performance obligation by transferring control of a promised ) Tj ET Q endstream endobj 297 0 obj <> endobj 298 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (148) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 712.75 Td (good or service to a customer in an amount that reflects the consideration for which the entity expects to be entitled ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 700.75 Td (for that good or service. ) Tj ET Q q 0 0 0 rg BT 159.56 700.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 209.96 700.75 Td (, enhanced disclosures would be required regarding both revenue that has ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 688.75 Td (been recognized and revenue that is expected to be recognized in the future from existing contracts, including ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 676.75 Td (quantitative and qualitative information about significant judgments and changes in those judgments made by ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 664.75 Td (management in recognizing revenue. ) Tj ET Q q 0 0 0 rg BT 219.42 664.75 Td (The Company expects to adopt the guidance in the first quarter of 2018 on a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 652.75 Td (modified retrospective basis. ) Tj ET Q q 0 0 0 rg BT 181.60 652.75 Td (The Company currently anticipates that the most significant ef) Tj ET Q q 0 0 0 rg BT 454.89 652.75 Td (fect of the new ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 640.75 Td (guidance relates to the recognition of incentive income. ) Tj ET Q q 0 0 0 rg BT 298.91 640.75 Td (The new guidance would require the Company to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 628.75 Td (recognize incentive income when it concludes that it is probable that significant reversals of revenue will not occur ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 616.75 Td (in subsequent periods. Under current GAAP) Tj ET Q q 0 0 0 rg BT 246.10 616.75 Td (, the amount of incentive income recognized by the Company is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 604.75 Td (generally limited to the amount that is not contingent on a future event. ) Tj ET Q q 0 0 0 rg BT 366.74 604.75 Td (The Company is in the process of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 592.75 Td (evaluating the ef) Tj ET Q q 0 0 0 rg BT 122.71 592.75 Td (fects, if any) Tj ET Q q 0 0 0 rg BT 172.54 592.75 Td (, of adopting the new standard on its consolidated financial statements.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 571.75 Td (3. BUSINESS COMBINA) Tj ET Q q 0 0 0 rg BT 161.55 571.75 Td (TIONS) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 550.75 Td (In ) Tj ET Q q 0 0 0 rg BT 96.07 550.75 Td (August 2014, the Company completed its acquisition of Highstar for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 397.34 550.75 Td ($31.4 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 453.48 550.75 Td ( in cash, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 493.50 550.75 Td (100,595) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 529.65 550.75 Td ( fully-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 538.75 Td (vested OCGH units and contingent consideration of up to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 305.21 538.75 Td ($60.0 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 361.35 538.75 Td (. Highstar is an investment management ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 526.75 Td (firm specializing in U.S. energy infrastructure, waste management and transportation. ) Tj ET Q q 0 0 0 rg BT 432.28 526.75 Td (The transaction, which was ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 514.75 Td (immaterial to Oaktree’) Tj ET Q q 0 0 0 rg BT 147.13 514.75 Td (s consolidated financial statements, resulted in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 356.69 514.75 Td ($50.8 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 412.83 514.75 Td ( of goodwill, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 468.42 514.75 Td ($28.0 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 524.56 514.75 Td ( of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 502.75 Td (identifiable intangible assets, primarily consisting of contractual rights associated with the management of Highstar ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 490.75 Td (Capital IV \(“HS IV”\), and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 160.09 490.75 Td ($72.2 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 216.23 490.75 Td ( of non-controlling interests in certain acquired subsidiaries that principally ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 478.75 Td (relate to investments in HS IV) Tj ET Q q 0 0 0 rg BT 180.31 478.75 Td (. Ef) Tj ET Q q 0 0 0 rg BT 197.91 478.75 Td (fective ) Tj ET Q q 0 0 0 rg BT 229.04 478.75 Td (August 2014, the Company consolidated the financial position and results ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 466.75 Td (of operations of the controlled Highstar entities, including HS IV) Tj ET Q q 0 0 0 rg BT 328.74 466.75 Td (, and accounted for this transaction as a business ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 454.75 Td (combination. Please see notes 13 and 16 for more information regarding the contingent consideration liability) Tj ET Q q 0 0 0 rg BT 532.94 454.75 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 433.75 Td (4. V) Tj ET Q q 0 0 0 rg BT 66.55 433.75 Td (ARIABLE INTEREST ENTITIES) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 412.75 Td (The Company consolidates VIEs for which it is the primary beneficiary) Tj ET Q q 0 0 0 rg BT 394.33 412.75 Td (. VIEs include funds managed by ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 400.75 Td (Oaktree and CLOs for which Oaktree acts as collateral manager) Tj ET Q q 0 0 0 rg BT 332.97 400.75 Td (. ) Tj ET Q q 0 0 0 rg BT 341.12 400.75 Td (The purpose of these VIEs is to provide ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 388.75 Td (investment opportunities for investors in exchange for management fees and, in certain cases, performance-based ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 376.75 Td (allocations. While the investment strategies of the funds and CLOs dif) Tj ET Q q 0 0 0 rg BT 360.04 376.75 Td (fer by product, in general the fundamental ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 364.75 Td (risks of the funds and CLOs have similar characteristics, including loss of invested capital and reduction or absence ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 352.75 Td (of management and performance-based fees. ) Tj ET Q q 0 0 0 rg BT 257.41 352.75 Td (As general partner or collateral manager) Tj ET Q q 0 0 0 rg BT 435.84 352.75 Td (, respectively) Tj ET Q q 0 0 0 rg BT 493.45 352.75 Td (, Oaktree ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 340.75 Td (generally considers itself the sponsor of the applicable fund or CLO. ) Tj ET Q q 0 0 0 rg BT 355.05 340.75 Td (The Company does not provide performance ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 328.75 Td (guarantees and, other than capital commitments, has no financial obligation to provide funding to VIEs.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 307.75 Td (As discussed in note 2, the Company adopted the new consolidation guidance in the first quarter of 2016 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 295.75 Td (under the modified retrospective approach as of January 1, 2016, which did not require prior periods to be recast. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 283.75 Td (The adoption resulted in the deconsolidation of substantially all of Oaktree’) Tj ET Q q 0 0 0 rg BT 378.97 283.75 Td (s investment funds as of January 1, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 271.75 Td (2016.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 250.75 Td (Consolidated VIEs) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 229.75 Td (As of December 31, 2016, the Company consolidated ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 325.64 229.75 Td (17) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 336.76 229.75 Td ( VIEs for which it was the primary beneficiary) Tj ET Q q 0 0 0 rg BT 534.98 229.75 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 217.75 Td (including ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 91.75 217.75 Td (eight) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 113.44 217.75 Td ( funds managed by Oaktree, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 242.40 217.75 Td (eight) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 264.08 217.75 Td ( CLOs for which Oaktree serves as collateral manager) Tj ET Q q 0 0 0 rg BT 503.63 217.75 Td (, and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 205.75 Td (Oaktree ) Tj ET Q q 0 0 0 rg BT 87.30 205.75 Td (AIF Holdings, Inc., which was formed to hold certain assets for regulatory and other purposes. One of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 193.75 Td (consolidated funds, Oaktree Enhanced Income Retention Holdings III, LLC, was formed to satisfy risk retention ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 181.75 Td (requirements under Section 15G of the Exchange ) Tj ET Q q 0 0 0 rg BT 271.31 181.75 Td (Act. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 294.09 181.75 Td (One) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 312.99 181.75 Td ( of the CLOs had not priced as of December 31, 2016. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 169.75 Td (As of December 31, 2015, the Company consolidated ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 289.64 169.75 Td (eight) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 311.33 169.75 Td ( VIEs pursuant to the consolidation rules then in ef) Tj ET Q q 0 0 0 rg BT 534.06 169.75 Td (fect. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 148.75 Td (As of December 31, 2016, the assets and liabilities of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 340.65 148.75 Td (16) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 351.77 148.75 Td ( consolidated VIEs representing funds and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 136.75 Td (CLOs amounted to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 136.21 136.75 Td ($4.6 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 184.03 136.75 Td ( and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 206.27 136.75 Td ($3.9 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 254.08 136.75 Td (, respectively) Tj ET Q q 0 0 0 rg BT 311.69 136.75 Td (. ) Tj ET Q q 0 0 0 rg BT 319.85 136.75 Td (The assets of these consolidated VIEs primarily ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 124.75 Td (consisted of investments in debt and equity securities, while their liabilities primarily represented debt obligations ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 112.75 Td (issued by CLOs. ) Tj ET Q q 0 0 0 rg BT 128.24 112.75 Td (The assets of these VIEs may be used only to settle obligations of the same VIE. In addition, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 100.75 Td (there is no recourse to the Company for the VIEs’) Tj ET Q q 0 0 0 rg BT 268.13 100.75 Td ( liabilities. In exchange for managing either the funds’) Tj ET Q q 0 0 0 rg BT 506.23 100.75 Td ( or CLOs’) Tj ET Q q 0 0 0 rg BT 548.09 100.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 88.75 Td (collateral, the Company typically earns management fees and may earn performance fees, all of which are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 76.75 Td (eliminated in consolidation. ) Tj ET Q q 0 0 0 rg BT 174.58 76.75 Td (As of December 31, 2016, the Company’) Tj ET Q q 0 0 0 rg BT 355.05 76.75 Td (s investments in consolidated VIEs had a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 64.75 Td (carrying value of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 125.65 64.75 Td ($304.5 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 187.35 64.75 Td (, which represented its maximum risk of loss as of that date. ) Tj ET Q q 0 0 0 rg BT 457.83 64.75 Td (The Company’) Tj ET Q q 0 0 0 rg BT 522.68 64.75 Td (s ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 52.75 Td (investments in CLOs are generally subordinated to other interests in the CLOs and entitle the Company to receive a ) Tj ET Q endstream endobj 299 0 obj <> endobj 300 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (149) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 712.75 Td (pro-rata portion of the residual cash flows, if any) Tj ET Q q 0 0 0 rg BT 261.64 712.75 Td (, from the CLOs. Please see note 10 for more information on CLO ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 700.75 Td (debt obligations.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 679.75 Td (Unconsolidated VIEs) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 658.75 Td (The Company holds variable interests in certain VIEs in the form of direct equity interests that are not ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 646.75 Td (consolidated because it is not the primary beneficiary) Tj ET Q q 0 0 0 rg BT 283.88 646.75 Td (, inasmuch as its fee arrangements are considered at-market ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 634.75 Td (and it does not hold interests in those entities that are considered more than insignificant. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 613.75 Td (As of December 31, 2016, the assets and liabilities of VIEs that were not consolidated, and the Company’) Tj ET Q q 0 0 0 rg BT 551.14 613.75 Td (s ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 601.75 Td (investments in those VIEs, are shown below) Tj ET Q q 0 0 0 rg BT 244.60 601.75 Td (. ) Tj ET Q q 0 0 0 rg BT 252.39 601.75 Td (As of December 31, 2015, there were no VIEs for which the Company ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 589.75 Td (was not the primary beneficiary pursuant to the consolidation rules then in ef) Tj ET Q q 0 0 0 rg BT 386.73 589.75 Td (fect.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 533.25 m 562 533.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 531.25 m 562 531.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 515.25 m 562 515.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 513.25 m 562 513.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 469.25 m 562 469.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 469.25 m 562 469.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 455.25 m 562 455.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 453.25 m 562 453.25 l s BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.84 w 0 i [] 0 d 1 J 1 j 3 M 52.5 560.208203125 m 203.69140625 560.208203125 l s q 0 0 0 rg BT 52.50 561.48 Td (Carrying Value as of December 31, 2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 536.65 Td (Assets of VIEs) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 119.40 536.20 Td (....................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 495.50 536.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 513.10 536.65 Td (52,098,059) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 518.65 Td (Liabilities of VIEs) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 129.40 518.20 Td (................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 495.50 518.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 518.10 518.65 Td (9,088,173) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 488.65 Td (Corporate investments) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 151.90 488.20 Td (.......................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 495.50 488.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 518.10 488.65 Td (1,055,227) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 473.65 Td (Due from affiliates) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 134.40 473.20 Td (..............................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.60 473.65 Td (159,714) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 458.65 Td (Maximum exposure to loss) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 166.90 458.20 Td (.................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 495.50 458.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 518.10 458.65 Td (1,214,941) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 424.75 Td (5. INVESTMENTS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 403.75 Td (Corporate Investments) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 382.75 Td (Corporate investments consist of investments in funds and companies in which the Company does not have ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 370.75 Td (a controlling financial interest. Investments for which the Company is deemed to exert significant influence are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 358.75 Td (accounted for under the equity method of accounting and reflect Oaktree’) Tj ET Q q 0 0 0 rg BT 372.85 358.75 Td (s ownership interest in each fund or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 346.75 Td (company) Tj ET Q q 0 0 0 rg BT 89.33 346.75 Td (. In the case of investments for which the Company is not deemed to exert significant influence or control, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 334.75 Td (the fair value option of accounting has been elected. Investment income represents the Company’) Tj ET Q q 0 0 0 rg BT 484.58 334.75 Td (s pro-rata share ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 322.75 Td (of income or loss from these funds or companies, or the change in fair value of the investment, as applicable. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 310.75 Td (Oaktree’) Tj ET Q q 0 0 0 rg BT 87.11 310.75 Td (s general partnership interests are substantially illiquid. While investments in funds reflect each respective ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 298.75 Td (fund’) Tj ET Q q 0 0 0 rg BT 71.00 298.75 Td (s holdings at fair value, equity-method investments in DoubleLine and other companies are not adjusted to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 286.75 Td (reflect the fair value of the underlying company) Tj ET Q q 0 0 0 rg BT 256.10 286.75 Td (. ) Tj ET Q q 0 0 0 rg BT 264.25 286.75 Td (The fair value of the underlying investments in Oaktree funds is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 274.75 Td (based on the Company’) Tj ET Q q 0 0 0 rg BT 154.94 274.75 Td (s assessment, which takes into account expected cash flows, earnings multiples and/or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 262.75 Td (comparisons to similar market transactions, among other factors. V) Tj ET Q q 0 0 0 rg BT 347.76 262.75 Td (aluation adjustments reflecting consideration of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 250.75 Td (credit quality) Tj ET Q q 0 0 0 rg BT 104.90 250.75 Td (, concentration risk, sales restrictions and other liquidity factors are integral to valuing these ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 238.75 Td (instruments. ) Tj ET Q q 0 0 0 rg BT 109.34 238.75 Td (The Company adopted the new consolidation guidance ef) Tj ET Q q 0 0 0 rg BT 364.33 238.75 Td (fective the first quarter of 2016, resulting in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 226.75 Td (the deconsolidation of substantially all of Oaktree’) Tj ET Q q 0 0 0 rg BT 268.89 226.75 Td (s investment funds. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 205.75 Td (Corporate investments consisted of the following:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 182.25 m 495 182.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495 182.25 m 503 182.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 182.25 m 563 182.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 168.25 m 495 168.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 168.25 m 563 168.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 100.25 m 495 100.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 86.25 m 495 86.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 84.25 m 495 84.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 100.25 m 563 100.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 86.25 m 563 86.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 84.25 m 563 84.25 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 466.00 186.25 Td (As of December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.84 w 0 i [] 0 d 1 J 1 j 3 M 52.5 171.20820312499995 m 142.296875 171.20820312499995 l s q 0 0 0 rg BT 52.50 172.48 Td (Corporate Investments:) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 456.70 172.25 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 524.70 172.25 Td (2015) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 149.65 Td (Equity-method investments:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 61.50 134.65 Td (Funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 93.90 134.20 Td (.......................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 437.50 134.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 458.95 134.65 Td (981,209) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 505.50 134.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.95 134.65 Td (117,800) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 61.50 119.65 Td (Companies) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 113.90 119.20 Td (...............................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.95 119.65 Td (34,932) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 531.95 119.65 Td (28,562) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 104.65 Td (Other investments, at fair value) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 183.95 104.20 Td (...................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 458.95 104.65 Td (107,591) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 531.95 104.65 Td (67,626) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 89.65 Td (Total corporate investments) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 168.90 89.20 Td (.........................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 437.50 89.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 451.45 89.65 Td (1,123,732) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 505.50 89.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.95 89.65 Td (213,988) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 301 0 obj <> endobj 302 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (150) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 712.75 Td (The components of investment income \(loss\) are set forth below:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 689.25 m 427 689.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 689.25 m 435 689.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 689.25 m 495 689.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495 689.25 m 503 689.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 689.25 m 563 689.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 676.25 m 427 676.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 676.25 m 495 676.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 676.25 m 563 676.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 608.25 m 427 608.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 594.25 m 427 594.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 592.25 m 427 592.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 608.25 m 495 608.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 594.25 m 495 594.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 592.25 m 495 592.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 608.25 m 563 608.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 594.25 m 563 594.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 592.25 m 563 592.25 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 421.70 693.25 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.84 w 0 i [] 0 d 1 J 1 j 3 M 52.5 679.208203125 m 153.8515625 679.208203125 l s q 0 0 0 rg BT 52.50 680.48 Td (Investment Income \(Loss\):) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 388.70 680.25 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 456.70 680.25 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 524.70 680.25 Td (2014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 657.65 Td (Equity-method investments:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 61.50 642.65 Td (Funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 93.40 642.20 Td (............................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 369.50 642.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 390.95 642.65 Td (123,511) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 437.50 642.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 468.95 642.65 Td (1,813) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 505.50 642.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 544.45 642.65 Td (556) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 61.50 627.65 Td (Companies) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 113.45 627.20 Td (....................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 395.95 627.65 Td (66,427) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.95 627.65 Td (49,933) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 531.95 627.65 Td (46,212) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 612.65 Td (Other investments, at fair value) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 180.95 612.20 Td (.........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 400.95 612.65 Td (9,188) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 476.45 612.65 Td (212) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 528.95 612.65 Td (\(13,073) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 559.50 612.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 597.65 Td (Total investment income) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 153.45 597.20 Td (....................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 369.50 597.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 390.95 597.65 Td (199,126) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 437.50 597.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.95 597.65 Td (51,958) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 505.50 597.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 531.95 597.65 Td (33,695) Tj ET Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 566.75 Td (Equity-method Investments ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 545.75 Td (The Company’) Tj ET Q q 0 0 0 rg BT 150.35 545.75 Td (s equity-method investments include its investments in Oaktree funds for which it serves as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 533.75 Td (general partner) Tj ET Q q 0 0 0 rg BT 116.77 533.75 Td (, and other third-party funds and companies that are not consolidated for which the Company is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 521.75 Td (deemed to exert significant influence. ) Tj ET Q q 0 0 0 rg BT 219.97 521.75 Td (The Company’) Tj ET Q q 0 0 0 rg BT 284.82 521.75 Td (s share of income or loss generated by these investments is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 509.75 Td (recorded within investment income in the consolidated statements of operations. ) Tj ET Q q 0 0 0 rg BT 410.07 509.75 Td (The Company’) Tj ET Q q 0 0 0 rg BT 474.92 509.75 Td (s equity-method ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 497.75 Td (investments in Oaktree funds principally reflect the Company’) Tj ET Q q 0 0 0 rg BT 320.55 497.75 Td (s general partner interests in those funds, which ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 485.75 Td (typically does not exceed ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 164.01 485.75 Td (2.5%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 186.80 485.75 Td ( in each fund. ) Tj ET Q q 0 0 0 rg BT 252.22 485.75 Td (The Oaktree funds are investment companies that follow a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 473.75 Td (specialized basis of accounting established by GAAP) Tj ET Q q 0 0 0 rg BT 283.35 473.75 Td (. Equity-method investments in companies include the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 461.75 Td (Company’) Tj ET Q q 0 0 0 rg BT 94.34 461.75 Td (s ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 102.12 461.75 Td (one-fifth) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 138.25 461.75 Td ( equity stake in DoubleLine.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 440.75 Td (Each reporting period, the Company evaluates each of its equity-method investments to determine if any ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 428.75 Td (are considered significant, as defined by the SEC. ) Tj ET Q q 0 0 0 rg BT 275.75 428.75 Td (As of December 31, 2016 and 2015, or for the years ended ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 416.75 Td (December 31, 2016, 2015 and 2014, no individual equity-method investment met the significance criteria. ) Tj ET Q q 0 0 0 rg BT 519.78 416.75 Td (As a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 404.75 Td (result, separate financial statements were not required for any of the Company’) Tj ET Q q 0 0 0 rg BT 398.95 404.75 Td (s equity-method investments.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 383.75 Td (Summarized financial information of the Company’) Tj ET Q q 0 0 0 rg BT 308.76 383.75 Td (s equity-method investments is set forth below) Tj ET Q q 0 0 0 rg BT 513.30 383.75 Td (. Equity-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 371.75 Td (method investments were not material for periods prior to adoption of the deconsolidation guidance in the first ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 359.75 Td (quarter of 2016, pursuant to the consolidation rules then in ef) Tj ET Q q 0 0 0 rg BT 318.94 359.75 Td (fect. ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 324.25 m 563 324.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 264.25 m 563 264.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 250.25 m 563 250.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 248.25 m 563 248.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 204.25 m 563 204.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 174.25 m 563 174.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 160.25 m 563 160.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 158.25 m 563 158.25 l s BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.84 w 0 i [] 0 d 1 J 1 j 3 M 52.5 327.208203125 m 177.390625 327.208203125 l s q 0 0 0 rg BT 52.50 328.48 Td (Statement of Financial Condition) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 177.39 328.48 Td (: ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 521.25 341.65 Td (As of ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 507.20 334.65 Td (December 31, ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 522.20 327.65 Td (2016) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.50 313.65 Td (Assets:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 298.65 Td (Cash and cash-equivalents) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 169.40 298.20 Td (..................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.50 298.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 519.45 298.65 Td (3,713,045) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 283.65 Td (Investments, at fair value) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 159.40 283.20 Td (......................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 514.45 283.65 Td (43,084,842) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 268.65 Td (Other assets) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 111.90 268.20 Td (.........................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 519.45 268.65 Td (1,994,304) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 253.65 Td (Total assets) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 126.90 253.20 Td (...................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.50 253.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 514.45 253.65 Td (48,792,191) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.50 238.65 Td (Liabilities and Capital:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 223.65 Td (Debt obligations) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 124.40 223.20 Td (....................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.50 223.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 519.45 223.65 Td (7,372,063) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 208.65 Td (Other liabilities) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 119.40 208.20 Td (......................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 519.45 208.65 Td (2,028,065) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 193.65 Td (Total liabilities) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 134.40 193.20 Td (................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 519.45 193.65 Td (9,400,128) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 178.65 Td (Total capital) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 126.90 178.20 Td (...................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 514.45 178.65 Td (39,392,063) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.50 163.65 Td (Total liabilities and capital) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 196.90 163.20 Td (.......................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.50 163.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 514.45 163.65 Td (48,792,191) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 303 0 obj <> endobj 304 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (151) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 689.5 m 563 689.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 689.5 m 563 689.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 629.5 m 563 629.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 615.5 m 563 615.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 613.5 m 563 613.5 l s BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.84 w 0 i [] 0 d 1 J 1 j 3 M 52.5 692.458203125 m 149.8515625 692.458203125 l s q 0 0 0 rg BT 52.50 693.73 Td (Statements of Operations) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 149.85 693.73 Td (: ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 510.90 707.50 Td (Year Ended) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 507.20 700.50 Td (December 31,) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 522.20 693.50 Td (2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 678.90 Td (Revenues / investment income) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 181.90 678.45 Td (.............................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.50 678.90 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 519.45 678.90 Td (2,188,044) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 663.90 Td (Interest expense) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 126.90 663.45 Td (...................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 523.95 663.90 Td (\(176,009) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 559.50 663.90 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 648.90 Td (Other expenses) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 124.40 648.45 Td (....................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 523.95 648.90 Td (\(899,288) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 559.50 648.90 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 633.90 Td (Net realized and unrealized gain on investments) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 251.95 633.45 Td (.................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 519.45 633.90 Td (4,065,939) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 618.90 Td (Net income) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 124.40 618.45 Td (....................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.50 618.90 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 519.45 618.90 Td (5,178,686) Tj ET Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 585.00 Td (Other Investments, at Fair V) Tj ET Q q 0 0 0 rg BT 181.95 585.00 Td (alue) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 564.00 Td (Other investments, at fair value primarily consist of investments in certain Oaktree and non-Oaktree funds ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 552.00 Td (for which the fair value option of accounting has been elected, as well as derivatives utilized to hedge the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 540.00 Td (Company’) Tj ET Q q 0 0 0 rg BT 94.34 540.00 Td (s exposure to investment income earned from unconsolidated funds. ) Tj ET Q q 0 0 0 rg BT 402.66 540.00 Td (The following table summarizes net ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 528.00 Td (gains \(losses\) attributable to the Company’) Tj ET Q q 0 0 0 rg BT 238.86 528.00 Td (s other investments:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 352 502.5 m 417 502.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 502.5 m 425 502.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 502.5 m 490 502.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490 502.5 m 498 502.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 502.5 m 563 502.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 352 487.5 m 417 487.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 487.5 m 490 487.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 487.5 m 563 487.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 352 449.5 m 417 449.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 352 435.5 m 417 435.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 352 433.5 m 417 433.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 449.5 m 490 449.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 435.5 m 490 435.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 433.5 m 490 433.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 449.5 m 563 449.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 435.5 m 563 435.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 433.5 m 563 433.5 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 414.20 506.50 Td (Year Ended December 31,) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 376.20 491.50 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 449.20 491.50 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 522.20 491.50 Td (2014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 468.90 Td (Realized gain \(loss\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 135.95 468.45 Td (.....................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 354.50 468.90 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 390.95 468.90 Td (1,808) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 427.50 468.90 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.95 468.90 Td (1,372) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.50 468.90 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 536.95 468.90 Td (2,838) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 453.90 Td (Net change in unrealized gain \(loss\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 200.95 453.45 Td (...........................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 390.95 453.90 Td (7,380) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 460.95 453.90 Td (\(1,160) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 486.50 453.90 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 528.95 453.90 Td (\(15,911) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 559.50 453.90 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 438.90 Td (Total) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 78.40 438.45 Td (............................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 354.50 438.90 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 390.95 438.90 Td (9,188) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 427.50 438.90 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 471.45 438.90 Td (212) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.50 438.90 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 528.95 438.90 Td (\(13,073) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 559.50 438.90 Td (\)) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 305 0 obj <> endobj 306 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (152) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 712.75 Td (Investments of Consolidated Funds) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 691.75 Td (Investments, at Fair V) Tj ET Q q 0 0 0 rg BT 152.50 691.75 Td (alue) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 675.25 Td (Investments held and securities sold short by the consolidated funds are summarized below: ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 623.75 m 394 623.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394 623.75 m 402 623.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 623.75 m 466 623.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 623.75 m 514 623.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514 623.75 m 522 623.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522 623.75 m 562 623.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 623.75 m 394 623.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 608.75 m 394 608.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 623.75 m 466 623.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 608.75 m 466 608.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 623.75 m 514 623.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 608.75 m 514 608.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522 623.75 m 562 623.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522 608.75 m 562 608.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 439.75 m 394 439.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 439.75 m 466 439.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522 439.75 m 562 439.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 418.75 m 394 418.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 418.75 m 466 418.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 439.75 m 514 439.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 418.75 m 514 418.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522 439.75 m 562 439.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522 418.75 m 562 418.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 275.75 m 394 275.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 275.75 m 466 275.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 254.75 m 394 254.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 254.75 m 466 254.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 275.75 m 514 275.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 254.75 m 514 254.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522 275.75 m 562 275.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522 254.75 m 562 254.75 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 348.05 627.75 Td (Fair Value as of December 31,) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 493.15 655.75 Td (Fair Value as a) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 494.35 648.75 Td (Percentage of) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 492.80 641.75 Td (Investments of) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 483.85 634.75 Td (Consolidated Funds) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 485.55 627.75 Td (as of December 31,) Tj ET Q BT /F2 7.00 Tf ET 0 0 0 RG /GS0 gs 0.73 w 0 i [] 0 d 1 J 1 j 3 M 52.5 611.644677734375 m 95.67919921875 611.644677734375 l s q 0 0 0 rg BT 52.50 612.75 Td (Investments:) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 353.70 612.75 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 425.70 612.75 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 485.70 612.75 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 533.70 612.75 Td (2015) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 599.98 Td (United States:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 332.50 600.00 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 404.50 600.00 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.50 600.00 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 524.50 600.00 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 70.50 586.98 Td (Debt securities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 332.50 587.00 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 404.50 587.00 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.50 587.00 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 524.50 587.00 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 573.98 Td (Consumer discretionary) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 170.90 574.43 Td (......................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 332.50 573.98 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 361.80 573.98 Td (628,621) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 404.50 573.98 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 427.20 574.03 Td (3,387,072) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 490.75 574.03 Td (16.5) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 506.35 573.98 Td (%) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 573.98 Td (7.5) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 554.35 573.98 Td (%) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 560.98 Td (Consumer staples) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 150.90 561.43 Td (...............................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 361.80 560.98 Td (123,395) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 433.80 560.98 Td (686,071) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 560.98 Td (3.2) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 560.98 Td (1.5) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 547.98 Td (Energy) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 110.90 548.43 Td (.................................................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 366.30 548.03 Td (55,655) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 433.80 547.98 Td (854,220) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 547.98 Td (1.5) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 547.98 Td (1.9) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 534.98 Td (Financials) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 122.00 535.43 Td (............................................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 361.80 534.98 Td (182,685) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 427.20 535.03 Td (1,293,508) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 534.98 Td (4.8) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 534.98 Td (2.9) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 521.98 Td (Government) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 130.90 522.43 Td (........................................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 370.75 522.03 Td (5,234) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 438.30 522.03 Td (95,508) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 521.98 Td (0.1) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 521.98 Td (0.2) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 508.98 Td (Health care) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 126.45 509.43 Td (..........................................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 361.80 508.98 Td (337,138) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 427.20 509.03 Td (1,135,799) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 508.98 Td (8.9) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 508.98 Td (2.5) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 495.98 Td (Industrials) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 122.00 496.43 Td (............................................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 361.80 495.98 Td (379,122) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 427.20 496.03 Td (1,710,706) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 490.75 496.03 Td (10.0) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 495.98 Td (3.8) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 482.98 Td (Information technology) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 166.45 483.43 Td (........................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 361.80 482.98 Td (272,637) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 427.20 483.03 Td (1,293,815) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 482.98 Td (7.2) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 482.98 Td (2.9) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 469.98 Td (Materials) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 117.55 470.43 Td (..............................................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 361.80 469.98 Td (237,417) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 427.20 470.03 Td (1,393,521) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 469.98 Td (6.2) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 469.98 Td (3.1) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 456.98 Td (Telecommunication services) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 186.45 457.43 Td (...............................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 366.30 457.03 Td (93,893) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 433.80 456.98 Td (471,711) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 456.98 Td (2.5) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 456.98 Td (1.0) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 443.98 Td (Utilities) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 113.10 444.43 Td (................................................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 366.30 444.03 Td (76,920) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 433.80 443.98 Td (686,126) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 443.98 Td (2.0) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 443.98 Td (1.5) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 94.50 430.98 Td (Total debt securities \(cost: $2,378,759 and $15,304,870 as of) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 103.50 422.98 Td (December 31, 2016 and 2015, respectively\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 259.80 423.43 Td (..............................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 355.20 423.03 Td (2,392,717) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 422.75 423.03 Td (13,008,057) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 490.75 423.03 Td (62.9) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 538.75 423.03 Td (28.8) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 70.50 409.98 Td (Equity securities:) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 332.50 409.98 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 462.50 409.98 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 476.50 409.98 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 558.50 409.98 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 396.98 Td (Consumer discretionary) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 170.90 397.43 Td (......................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 377.45 397.03 Td (711) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 427.20 397.03 Td (1,813,832) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 396.98 Td (0.0) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 396.98 Td (4.0) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 383.98 Td (Consumer staples) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 150.90 384.43 Td (...............................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 382.75 383.98 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 433.80 383.98 Td (872,472) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 498.35 384.03 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 383.98 Td (1.9) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 370.98 Td (Energy) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 110.90 371.43 Td (.................................................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 370.75 371.03 Td (2,002) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 427.20 371.03 Td (1,810,290) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 370.98 Td (0.1) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 370.98 Td (4.0) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 357.98 Td (Financials) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 122.00 358.43 Td (............................................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 370.75 358.03 Td (3,977) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 427.20 358.03 Td (7,639,790) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 357.98 Td (0.1) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 538.75 358.03 Td (16.9) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 344.98 Td (Health care) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 126.45 345.43 Td (..........................................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 377.45 345.03 Td (343) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 438.30 345.03 Td (92,866) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 344.98 Td (0.0) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 344.98 Td (0.2) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 331.98 Td (Industrials) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 122.00 332.43 Td (............................................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 386.30 331.98 Td (1) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 427.20 332.03 Td (1,728,086) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 331.98 Td (0.0) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 331.98 Td (3.8) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 318.98 Td (Information technology) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 166.45 319.43 Td (........................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 382.75 318.98 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 438.30 319.03 Td (67,253) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 498.35 319.03 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 318.98 Td (0.2) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 305.98 Td (Materials) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 117.55 306.43 Td (..............................................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 377.45 306.03 Td (691) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 433.80 305.98 Td (882,366) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 305.98 Td (0.0) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 305.98 Td (2.0) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 292.98 Td (Telecommunication services) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 186.45 293.43 Td (...............................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 382.75 292.98 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 438.30 293.03 Td (16,471) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 498.35 293.03 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 292.98 Td (0.0) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 279.98 Td (Utilities) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 113.10 280.43 Td (................................................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 382.75 279.98 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 433.80 279.98 Td (156,865) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 498.35 280.03 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 279.98 Td (0.3) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 94.50 266.98 Td (Total equity securities \(cost: $5,462 and $13,290,699 as of) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 103.50 258.98 Td (December 31, 2016 and 2015, respectively\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 259.80 259.43 Td (..............................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 370.75 259.03 Td (7,725) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 422.75 259.03 Td (15,080,291) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 258.98 Td (0.2) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 538.75 259.03 Td (33.3) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 307 0 obj <> endobj 308 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (153) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 678.5 m 394 678.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394 678.5 m 402 678.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 678.5 m 466 678.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 678.5 m 514 678.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514 678.5 m 522 678.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522 678.5 m 562 678.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 678.5 m 394 678.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 663.5 m 394 663.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 678.5 m 466 678.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 663.5 m 466 663.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 678.5 m 514 678.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 663.5 m 514 663.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522 678.5 m 562 678.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522 663.5 m 562 663.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 494.5 m 394 494.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 494.5 m 466 494.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 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gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 317.5 m 514 317.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 296.5 m 514 296.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522 317.5 m 562 317.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522 296.5 m 562 296.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 127.5 m 514 127.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522 127.5 m 562 127.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 127.5 m 394 127.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 106.5 m 394 106.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 127.5 m 466 127.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 106.5 m 466 106.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 127.5 m 514 127.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 106.5 m 514 106.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522 127.5 m 562 127.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522 106.5 m 562 106.5 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 348.05 682.50 Td (Fair Value as of December 31,) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 493.15 710.50 Td (Fair Value as a) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 494.35 703.50 Td (Percentage of) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 492.80 696.50 Td (Investments of) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 483.85 689.50 Td (Consolidated Funds) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 485.55 682.50 Td (as of December 31,) Tj ET Q BT /F2 7.00 Tf ET 0 0 0 RG /GS0 gs 0.73 w 0 i [] 0 d 1 J 1 j 3 M 52.5 666.394677734375 m 95.67919921875 666.394677734375 l s q 0 0 0 rg BT 52.50 667.50 Td (Investments:) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 353.70 667.50 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 425.70 667.50 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 485.70 667.50 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 533.70 667.50 Td (2015) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 654.73 Td (Europe:) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 462.50 654.73 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 558.50 654.73 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 70.50 641.73 Td (Debt securities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 332.50 641.75 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 404.50 641.75 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 476.50 641.75 Td ( ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 524.50 641.75 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 628.73 Td (Consumer discretionary) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 170.90 629.18 Td (......................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 332.50 628.73 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 361.80 628.73 Td (374,627) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 404.50 628.73 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 427.20 628.78 Td (1,329,387) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 628.73 Td (9.8) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 506.35 628.73 Td (%) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 628.73 Td (2.9) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 554.35 628.73 Td (%) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 615.73 Td (Consumer staples) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 150.90 616.18 Td (...............................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 366.30 615.78 Td (92,750) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 433.80 615.73 Td (222,789) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 615.73 Td (2.4) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 615.73 Td (0.5) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 602.73 Td (Energy) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 110.90 603.18 Td (.................................................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 366.30 602.78 Td (13,274) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 433.80 602.73 Td (144,742) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 602.73 Td (0.3) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 602.73 Td (0.3) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 589.73 Td (Financials) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 122.00 590.18 Td (............................................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 366.30 589.78 Td (13,822) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 433.80 589.73 Td (808,568) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 589.73 Td (0.4) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 589.73 Td (1.8) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 576.73 Td (Government) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 130.90 577.18 Td (........................................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 370.75 576.78 Td (1,996) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 438.30 576.78 Td (46,946) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 576.73 Td (0.1) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 576.73 Td (0.1) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 563.73 Td (Health care) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 126.45 564.18 Td (..........................................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 361.80 563.73 Td (210,078) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 433.80 563.73 Td (197,569) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 563.73 Td (5.5) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 563.73 Td (0.5) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 550.73 Td (Industrials) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 122.00 551.18 Td (............................................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 366.30 550.78 Td (54,578) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 433.80 550.73 Td (291,950) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 550.73 Td (1.4) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 550.73 Td (0.7) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 537.73 Td (Information technology) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 166.45 538.18 Td (........................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 366.30 537.78 Td (23,832) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 438.30 537.78 Td (71,168) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 537.73 Td (0.6) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 537.73 Td (0.2) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 524.73 Td (Materials) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 117.55 525.18 Td (..............................................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 361.80 524.73 Td (226,961) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 433.80 524.73 Td (377,460) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 524.73 Td (6.0) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 524.73 Td (0.8) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 511.73 Td (Telecommunication services) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 186.45 512.18 Td (...............................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 361.80 511.73 Td (214,182) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 433.80 511.73 Td (200,610) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 511.73 Td (5.6) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 511.73 Td (0.4) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 498.73 Td (Utilities) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 113.10 499.18 Td (................................................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 382.75 498.73 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 438.30 498.78 Td (18,028) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 498.35 498.78 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 498.73 Td (0.0) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 94.50 485.73 Td (Total debt securities \(cost: $1,214,068 and $4,207,531 as of) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 103.50 477.73 Td (December 31, 2016 and 2015, respectively\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 259.80 478.18 Td (..............................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 355.20 477.78 Td (1,226,100) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 427.20 477.78 Td (3,709,217) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 490.75 477.78 Td (32.1) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 477.73 Td (8.2) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 70.50 464.73 Td (Equity securities:) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 451.73 Td (Consumer discretionary) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 170.90 452.18 Td (......................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 382.75 451.73 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 433.80 451.73 Td (270,370) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 498.35 451.78 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 451.73 Td (0.6) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 438.73 Td (Consumer staples) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 150.90 439.18 Td (...............................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 382.75 438.73 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 433.80 438.73 Td (145,108) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 498.35 438.78 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 438.73 Td (0.3) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 425.73 Td (Energy) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 110.90 426.18 Td (.................................................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 382.75 425.73 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 438.30 425.78 Td (21,791) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 498.35 425.78 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 425.73 Td (0.0) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 412.73 Td (Financials) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 122.00 413.18 Td (............................................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 370.75 412.78 Td (1,605) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 427.20 412.78 Td (6,239,424) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 412.73 Td (0.0) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 538.75 412.78 Td (13.8) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 399.73 Td (Government) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 130.90 400.18 Td (........................................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 382.75 399.73 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 438.30 399.78 Td (40,290) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 498.35 399.78 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 399.73 Td (0.1) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 386.73 Td (Health care) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 126.45 387.18 Td (..........................................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 382.75 386.73 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 438.30 386.78 Td (79,582) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 498.35 386.78 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 386.73 Td (0.2) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 373.73 Td (Industrials) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 122.00 374.18 Td (............................................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 382.75 373.73 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 427.20 373.78 Td (1,499,142) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 498.35 373.78 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 373.73 Td (3.3) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 360.73 Td (Information technology) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 166.45 361.18 Td (........................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 382.75 360.73 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 442.75 360.78 Td (1,646) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 498.35 360.78 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 360.73 Td (0.0) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 347.73 Td (Materials) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 117.55 348.18 Td (..............................................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 382.75 347.73 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 433.80 347.73 Td (475,306) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 498.35 347.78 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 347.73 Td (1.1) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 334.73 Td (T) Tj ET Q q 0 0 0 rg BT 86.50 334.73 Td (elecommunication services) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 186.45 335.18 Td (...............................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 382.75 334.73 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 442.75 334.78 Td (4,834) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 498.35 334.78 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 334.73 Td (0.0) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 321.73 Td (Utilities) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 113.10 322.18 Td (................................................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 382.75 321.73 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 433.80 321.73 Td (344,736) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 498.35 321.78 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 321.73 Td (0.8) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 94.50 308.73 Td (Total equity securities \(cost: $1,494 and $7,627,245 as of) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 103.50 300.73 Td (December 31, 2016 and 2015, respectively\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 259.80 301.18 Td (..............................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 370.75 300.78 Td (1,605) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 427.20 300.78 Td (9,122,229) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 300.73 Td (0.0) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 538.75 300.78 Td (20.2) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 287.73 Td (Asia and other:) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 332.50 287.73 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 462.50 287.73 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 476.50 287.73 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 558.50 287.73 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 70.50 274.73 Td (Debt securities:) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 332.50 274.73 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 462.50 274.73 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 476.50 274.73 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 558.50 274.73 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 261.73 Td (Consumer discretionary) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 170.90 262.18 Td (......................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 370.75 261.78 Td (3,145) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 433.80 261.73 Td (102,531) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 261.73 Td (0.1) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 261.73 Td (0.2) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 248.73 Td (Consumer staples) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 150.90 249.18 Td (...............................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 370.75 248.78 Td (5,994) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 438.30 248.78 Td (33,061) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 248.73 Td (0.2) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 248.73 Td (0.1) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 235.73 Td (Energy) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 110.90 236.18 Td (.................................................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 370.75 235.78 Td (9,570) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 433.80 235.73 Td (193,645) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 235.73 Td (0.3) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 235.73 Td (0.4) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 222.73 Td (Financials) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 122.00 223.18 Td (............................................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 382.75 222.73 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 438.30 222.78 Td (27,413) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 498.35 222.78 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 222.73 Td (0.1) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 209.73 Td (Government) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 130.90 210.18 Td (........................................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 370.75 209.78 Td (1,506) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 442.75 209.78 Td (6,974) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 209.73 Td (0.0) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 209.73 Td (0.0) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 196.73 Td (Health care) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 126.45 197.18 Td (..........................................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 370.75 196.78 Td (1,245) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 438.30 196.78 Td (47,010) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 196.73 Td (0.0) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 196.73 Td (0.1) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 183.73 Td (Industrials) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 122.00 184.18 Td (............................................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 366.30 183.78 Td (15,450) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 433.80 183.73 Td (268,710) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 183.73 Td (0.4) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 183.73 Td (0.6) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 170.73 Td (Information technology) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 166.45 171.18 Td (........................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 377.45 170.78 Td (409) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 438.30 170.78 Td (31,983) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 170.73 Td (0.0) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 170.73 Td (0.1) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 157.73 Td (Materials) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 117.55 158.18 Td (..............................................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 366.30 157.78 Td (10,245) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 433.80 157.73 Td (248,830) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 157.73 Td (0.3) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 157.73 Td (0.6) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 144.73 Td (Telecommunication services) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 186.45 145.18 Td (...............................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 370.75 144.78 Td (4,809) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 454.75 144.73 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 144.73 Td (0.1) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 546.35 144.78 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 131.73 Td (Utilities) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 113.10 132.18 Td (................................................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 377.45 131.78 Td (928) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 442.75 131.78 Td (2,713) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 131.73 Td (0.0) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 131.73 Td (0.0) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 94.50 118.73 Td (Total debt securities \(cost: $57,400 and $1,090,867 as of) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 103.50 110.73 Td (December 31, 2016 and 2015, respectively\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 259.80 111.18 Td (..............................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 366.30 110.78 Td (53,301) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 433.80 110.73 Td (962,870) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 110.73 Td (1.4) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 110.73 Td (2.2) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 309 0 obj <> endobj 310 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (154) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 678.5 m 394 678.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394 678.5 m 402 678.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 678.5 m 466 678.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 678.5 m 514 678.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514 678.5 m 522 678.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522 678.5 m 562 678.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 678.5 m 394 678.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 663.5 m 394 663.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 678.5 m 466 678.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 663.5 m 466 663.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 678.5 m 514 678.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 663.5 m 514 663.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522 678.5 m 562 678.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522 663.5 m 562 663.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 663.5 m 394 663.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 663.5 m 466 663.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 507.5 m 394 507.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 507.5 m 466 507.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 507.5 m 514 507.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522 507.5 m 562 507.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 486.5 m 394 486.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 486.5 m 466 486.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 486.5 m 514 486.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522 486.5 m 562 486.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 460.5 m 394 460.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 448.5 m 394 448.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 446.5 m 394 446.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 460.5 m 466 460.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 448.5 m 466 448.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 446.5 m 466 446.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 460.5 m 514 460.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 448.5 m 514 448.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 446.5 m 514 446.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522 460.5 m 562 460.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522 448.5 m 562 448.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522 446.5 m 562 446.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 413.5 m 394 413.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 411.5 m 394 411.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 413.5 m 466 413.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 411.5 m 466 411.5 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 348.05 682.50 Td (Fair Value as of December 31,) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 493.15 710.50 Td (Fair Value as a) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 494.35 703.50 Td (Percentage of) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 492.80 696.50 Td (Investments of) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 483.85 689.50 Td (Consolidated Funds) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 485.55 682.50 Td (as of December 31,) Tj ET Q BT /F2 7.00 Tf ET 0 0 0 RG /GS0 gs 0.73 w 0 i [] 0 d 1 J 1 j 3 M 52.5 666.394677734375 m 95.67919921875 666.394677734375 l s q 0 0 0 rg BT 52.50 667.50 Td (Investments:) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 353.70 667.50 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 425.70 667.50 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 485.70 667.50 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 533.70 667.50 Td (2015) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 654.73 Td (Asia and other:) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 70.50 641.73 Td (Equity securities:) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 332.50 641.73 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 404.50 641.73 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 476.50 641.73 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 558.50 641.73 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 628.73 Td (Consumer discretionary) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 170.90 629.18 Td (......................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 332.50 628.73 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 370.75 628.78 Td (7,639) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 404.50 628.73 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 433.80 628.73 Td (506,761) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 628.73 Td (0.2) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 506.35 628.73 Td (%) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 628.73 Td (1.1) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 554.35 628.73 Td (%) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 615.73 Td (Consumer staples) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 150.90 616.18 Td (...............................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 370.75 615.78 Td (3,786) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 438.30 615.78 Td (29,863) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 615.73 Td (0.1) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 615.73 Td (0.1) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 602.73 Td (Energy) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 110.90 603.18 Td (.................................................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 370.75 602.78 Td (6,978) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 433.80 602.73 Td (192,844) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 602.73 Td (0.2) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 602.73 Td (0.4) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 589.73 Td (Financials) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 122.00 590.18 Td (............................................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 366.30 589.78 Td (44,328) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 433.80 589.73 Td (986,753) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 589.73 Td (1.2) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 589.73 Td (2.2) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 576.73 Td (Health care) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 126.45 577.18 Td (..........................................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 382.75 576.73 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 438.30 576.78 Td (18,535) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 498.35 576.78 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 576.73 Td (0.1) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 563.73 Td (Industrials) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 122.00 564.18 Td (............................................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 366.30 563.78 Td (21,564) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 427.20 563.78 Td (1,032,225) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 563.73 Td (0.6) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 563.73 Td (2.3) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 550.73 Td (Information technology) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 166.45 551.18 Td (........................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 366.30 550.78 Td (16,642) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 433.80 550.73 Td (244,433) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 550.73 Td (0.4) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 550.73 Td (0.5) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 537.73 Td (Materials) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 117.55 538.18 Td (..............................................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 366.30 537.78 Td (19,697) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 438.30 537.78 Td (96,326) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 537.73 Td (0.5) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 537.73 Td (0.2) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 524.73 Td (Telecommunication services) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 186.45 525.18 Td (...............................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 370.75 524.78 Td (4,296) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 438.30 524.78 Td (34,678) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 524.73 Td (0.1) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 524.73 Td (0.1) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 511.73 Td (Utilities) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 113.10 512.18 Td (................................................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 370.75 511.78 Td (1,856) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 433.80 511.73 Td (154,824) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 511.73 Td (0.1) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 511.73 Td (0.3) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 94.50 498.73 Td (Total equity securities \(cost: $118,292 and $3,370,406 as of) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 103.50 490.73 Td (December 31, 2016 and 2015, respectively\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 259.80 491.18 Td (..............................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 361.80 490.73 Td (126,786) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 427.20 490.78 Td (3,297,242) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 490.73 Td (3.4) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 543.20 490.73 Td (7.3) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 70.50 477.73 Td (Total debt securities) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 144.20 478.18 Td (..................................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 355.20 477.78 Td (3,672,118) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 422.75 477.78 Td (17,680,144) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 490.75 477.78 Td (96.4) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 538.75 477.78 Td (39.2) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 70.50 464.73 Td (Total equity securities) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 150.90 465.18 Td (...............................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 361.80 464.73 Td (136,116) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 422.75 464.78 Td (27,499,762) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.20 464.73 Td (3.6) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 538.75 464.78 Td (60.8) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 82.50 451.73 Td (Total investments, at fair value) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 193.10 452.18 Td (............................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 332.50 451.73 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 355.20 451.78 Td (3,808,234) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 404.50 451.73 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 422.75 451.78 Td (45,179,906) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 486.30 451.78 Td (100.0) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 506.35 451.73 Td (%) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 534.30 451.78 Td (100.0) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 554.35 451.73 Td (%) Tj ET Q BT /F2 7.00 Tf ET 0 0 0 RG /GS0 gs 0.73 w 0 i [] 0 d 1 J 1 j 3 M 52.5 436.394677734375 m 125.6240234375 436.394677734375 l s q 0 0 0 rg BT 52.50 437.50 Td (Securities Sold Short:) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 332.50 437.73 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 404.50 437.73 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 476.50 437.73 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 558.50 437.73 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 70.50 424.73 Td (Equity securities \(proceeds: $41,541 and $102,236 as of) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 79.50 416.73 Td (December 31, 2016 and 2015, respectively\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 237.55 417.18 Td (........................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 332.50 416.73 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 363.65 416.73 Td (\(41,016) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 390.80 416.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 404.50 416.73 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 435.65 416.73 Td (\(91,246) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 462.80 416.73 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 476.50 416.73 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 558.50 416.73 Td ( ) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 383.00 Td (As of December 31, 2016 and 2015, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 248.94 383.00 Td (no) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 260.07 383.00 Td ( single issuer or investment had a fair value that exceeded ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 520.77 383.00 Td (5%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 535.22 383.00 Td ( of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 371.00 Td (Oaktree’) Tj ET Q q 0 0 0 rg BT 87.11 371.00 Td (s total consolidated net assets. ) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 226.64 371.00 Td ( ) Tj ET Q endstream endobj 311 0 obj <> endobj 312 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (155) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 712.75 Td (Net Gains \(Losses\) From Investment ) Tj ET Q q 0 0 0 rg BT 225.84 712.75 Td (Activities of Consolidated Funds ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 696.25 Td (Net gains \(losses\) from investment activities in the consolidated statements of operations consist primarily ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 684.25 Td (of realized and unrealized gains and losses on the consolidated funds’) Tj ET Q q 0 0 0 rg BT 359.90 684.25 Td ( investments \(including foreign exchange ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 672.25 Td (gains and losses attributable to foreign-denominated investments and related activities\) and other financial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 660.25 Td (instruments. Unrealized gains or losses result from changes in the fair value of these investments and other ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 648.25 Td (financial instruments. Upon disposition of an investment, unrealized gains or losses are reversed and an of) Tj ET Q q 0 0 0 rg BT 523.47 648.25 Td (fsetting ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 636.25 Td (realized gain or loss is recognized in the current period. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 619.75 Td (The following table summarizes net gains \(losses\) from investment activities: ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 174 597.25 m 232 597.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 232 597.25 m 240 597.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240 597.25 m 298 597.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 298 597.25 m 306 597.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306 597.25 m 364 597.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 597.25 m 372 597.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372 597.25 m 430 597.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430 597.25 m 438 597.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 597.25 m 496 597.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 597.25 m 504 597.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 597.25 m 562 597.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 174 582.25 m 232 582.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 232 582.25 m 240 582.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240 582.25 m 298 582.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306 597.25 m 364 597.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306 582.25 m 364 582.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 597.25 m 372 597.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 582.25 m 372 582.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372 597.25 m 430 597.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372 582.25 m 430 582.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 597.25 m 496 597.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 582.25 m 496 582.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 597.25 m 504 597.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 582.25 m 504 582.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 597.25 m 562 597.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 582.25 m 562 582.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 174 541.25 m 232 541.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240 541.25 m 298 541.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306 582.25 m 364 582.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306 541.25 m 364 541.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 582.25 m 372 582.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372 582.25 m 430 582.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372 541.25 m 430 541.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 582.25 m 496 582.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 541.25 m 496 541.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 582.25 m 504 582.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 582.25 m 562 582.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 541.25 m 562 541.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 174 439.25 m 232 439.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240 439.25 m 298 439.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306 439.25 m 364 439.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372 439.25 m 430 439.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 439.25 m 496 439.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 439.25 m 562 439.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 174 439.25 m 232 439.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 174 425.25 m 232 425.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 174 423.25 m 232 423.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240 439.25 m 298 439.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240 425.25 m 298 425.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240 423.25 m 298 423.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306 439.25 m 364 439.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306 425.25 m 364 425.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306 423.25 m 364 423.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372 439.25 m 430 439.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372 425.25 m 430 425.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372 423.25 m 430 423.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 439.25 m 496 439.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 425.25 m 496 425.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 423.25 m 496 423.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 439.25 m 562 439.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 425.25 m 562 425.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 423.25 m 562 423.25 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 324.70 601.25 Td (Year Ended December 31,) Tj ET Q BT /F3 4.00 Tf ET q 0 0 0 rg BT 52.50 585.64 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 227.70 586.25 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 359.70 586.25 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 491.70 586.25 Td (2014) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 181.65 559.25 Td (Net Realized) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 178.00 552.25 Td (Gain \(Loss\) on) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 182.05 545.25 Td (Investments) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 244.95 573.25 Td (Net Change in) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 250.80 566.25 Td (Unrealized) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 247.10 559.25 Td (Appreciation) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 244.95 552.25 Td (\(Depreciation\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 242.80 545.25 Td (on Investments) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 313.65 559.25 Td (Net Realized) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 310.00 552.25 Td (Gain \(Loss\) on) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 314.05 545.25 Td (Investments) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 376.95 573.25 Td (Net Change in) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 382.80 566.25 Td (Unrealized) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 379.10 559.25 Td (Appreciation) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 376.95 552.25 Td (\(Depreciation\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 374.80 545.25 Td (on Investments) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 445.65 559.25 Td (Net Realized) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 442.00 552.25 Td (Gain \(Loss\) on) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 446.05 545.25 Td (Investments) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 508.95 573.25 Td (Net Change in) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 514.80 566.25 Td (Unrealized) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 511.10 559.25 Td (Appreciation) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 508.95 552.25 Td (\(Depreciation\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 506.80 545.25 Td (on Investments) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 532.48 Td (Investments and other financial) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 61.50 524.48 Td (instruments) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 103.80 524.93 Td (..............................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 176.50 524.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 204.25 524.48 Td (30,718) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 242.50 524.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 265.85 524.48 Td (109,398) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 308.50 524.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 331.80 524.48 Td (895,271) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 374.50 524.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 388.50 524.53 Td (\(3,602,437) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 426.80 524.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 440.50 524.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 457.20 524.53 Td (1,937,061) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 506.50 524.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 520.50 524.53 Td (\(1,080,571) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 558.80 524.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 511.48 Td (CLO liabilities ) Tj ET Q BT /F3 8.00 Tf ET BT /F3 5.20 Tf ET q 0 0 0 rg BT 103.63 515.29 Td (\(1\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 109.98 511.48 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 112.70 511.93 Td (..........................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 220.75 511.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 263.20 511.48 Td (\(120,702) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 294.80 511.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 352.75 511.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 418.75 511.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 484.75 511.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 550.75 511.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 498.48 Td (Foreign-currency forward ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 61.50 490.48 Td (contracts ) Tj ET Q BT /F3 8.00 Tf ET BT /F3 5.20 Tf ET q 0 0 0 rg BT 96.18 494.29 Td (\(2\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 102.53 490.48 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 103.80 490.93 Td (..............................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 215.45 490.48 Td (521) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 281.45 490.48 Td (264) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 331.80 490.48 Td (457,594) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 399.65 490.48 Td (\(98,420) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 426.80 490.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 463.85 490.53 Td (179,675) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 529.85 490.53 Td (278,647) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 477.48 Td (T) Tj ET Q q 0 0 0 rg BT 56.50 477.48 Td (otal-return and interest-rate ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 61.50 469.48 Td (swaps ) Tj ET Q BT /F3 8.00 Tf ET BT /F3 5.20 Tf ET q 0 0 0 rg BT 86.40 473.29 Td (\(2\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 92.75 469.48 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 94.90 469.93 Td (..................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 206.10 469.48 Td (\(2,353) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 228.80 469.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 272.10 469.48 Td (\(1,416) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 294.80 469.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 329.20 469.53 Td (\(215,837) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 360.80 469.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 399.65 469.48 Td (\(38,658) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 426.80 469.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 468.30 469.53 Td (54,437) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 527.20 469.53 Td (\(193,079) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 558.80 469.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 456.48 Td (Options and futures ) Tj ET Q BT /F3 8.00 Tf ET BT /F3 5.20 Tf ET q 0 0 0 rg BT 124.54 460.29 Td (\(2\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 130.90 456.48 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 132.70 456.93 Td (.................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 206.10 456.48 Td (\(1,293) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 228.80 456.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 290.35 456.48 Td (3) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 336.30 456.53 Td (43,055) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 399.65 456.48 Td (\(30,198) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 426.80 456.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 465.65 456.48 Td (\(38,431) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 492.80 456.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 538.75 456.53 Td (6,513) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 443.48 Td (Swaptions ) Tj ET Q BT /F3 8.00 Tf ET BT /F3 5.20 Tf ET q 0 0 0 rg BT 91.63 447.29 Td (\(2\)\(3\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 104.34 443.48 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 106.00 443.93 Td (.............................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 220.75 443.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 286.75 443.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 338.05 443.48 Td (\(2,933) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 360.80 443.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 406.75 443.53 Td (2,186) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 470.10 443.53 Td (\(1,158) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 492.80 443.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 536.10 443.53 Td (\(4,770) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 558.80 443.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 70.50 428.48 Td (Total) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 90.45 428.93 Td (....................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 176.50 428.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 204.25 428.48 Td (27,593) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 242.50 428.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 267.65 428.53 Td (\(12,453) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 294.80 428.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 308.50 428.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 325.20 428.53 Td (1,177,150) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 374.50 428.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 388.50 428.53 Td (\(3,767,527) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 426.80 428.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 440.50 428.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 457.20 428.53 Td (2,131,584) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 506.50 428.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 527.20 428.53 Td (\(993,260) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 558.80 428.48 Td (\)) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 410.25 m 150 410.25 l s BT /F1 10.00 Tf ET BT /F3 8.00 Tf ET q 0 0 0 rg BT 48.50 398.15 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 73.50 398.15 Td (Represents the net change in the fair value of CLO liabilities based on the more observable fair value of CLO assets, as measured under ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 73.50 388.55 Td (the CLO measurement guidance. Please see note 2 for more information.) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 49.50 378.95 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 59.28 378.95 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 378.95 Td (Please see note 7 for additional information. ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 49.50 369.35 Td (\(3\) ) Tj ET Q q 0 0 0 rg BT 72.00 369.35 Td (A) Tj ET Q q 0 0 0 rg BT 76.89 369.35 Td ( swaption is an option granting the buyer the right but not the obligation to enter into a swap agreement on a specified future date.) Tj ET Q endstream endobj 313 0 obj <> endobj 314 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (156) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 712.75 Td (6. F) Tj ET Q q 0 0 0 rg BT 66.17 712.75 Td (AIR V) Tj ET Q q 0 0 0 rg BT 92.10 712.75 Td (ALUE ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 691.75 Td (Fair V) Tj ET Q q 0 0 0 rg BT 76.74 691.75 Td (alue of Financial ) Tj ET Q q 0 0 0 rg BT 157.49 691.75 Td (Assets and Liabilities ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 675.25 Td (The short-term nature of cash and cash-equivalents, receivables and accounts payable causes each of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 663.25 Td (their carrying values to approximate fair value. ) Tj ET Q q 0 0 0 rg BT 259.42 663.25 Td (The fair value of short-term investments included in cash and cash-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 651.25 Td (equivalents is a Level I valuation. ) Tj ET Q q 0 0 0 rg BT 201.63 651.25 Td (The Company’) Tj ET Q q 0 0 0 rg BT 266.48 651.25 Td (s other financial assets and financial liabilities by fair-value ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 639.25 Td (hierarchy level are set forth below) Tj ET Q q 0 0 0 rg BT 198.46 639.25 Td (. Please see notes 10 and 18 for the fair value of the Company’) Tj ET Q q 0 0 0 rg BT 480.68 639.25 Td (s outstanding debt ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 627.25 Td (obligations and amounts due from/to af) Tj ET Q q 0 0 0 rg BT 222.21 627.25 Td (filiates, respectively) Tj ET Q q 0 0 0 rg BT 308.16 627.25 Td (. ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 170 597.25 m 214 597.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 214 597.25 m 219 597.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 219 597.25 m 263 597.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263 597.25 m 268 597.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 597.25 m 312 597.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312 597.25 m 317 597.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317 597.25 m 361 597.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 597.25 m 415 597.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 597.25 m 420 597.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 597.25 m 464 597.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464 597.25 m 469 597.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 597.25 m 513 597.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 597.25 m 518 597.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 597.25 m 562 597.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 170 582.25 m 214 582.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 219 597.25 m 263 597.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 219 582.25 m 263 582.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 597.25 m 312 597.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 582.25 m 312 582.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317 582.25 m 361 582.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 597.25 m 415 597.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 582.25 m 415 582.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 597.25 m 420 597.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 597.25 m 464 597.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 582.25 m 464 582.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464 597.25 m 469 597.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 597.25 m 513 597.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 582.25 m 513 582.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 597.25 m 518 597.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 597.25 m 562 597.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 582.25 m 562 582.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 170 513.25 m 214 513.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 170 501.25 m 214 501.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 170 499.25 m 214 499.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 219 513.25 m 263 513.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 219 501.25 m 263 501.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 219 499.25 m 263 499.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 513.25 m 312 513.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 501.25 m 312 501.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 499.25 m 312 499.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317 513.25 m 361 513.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317 501.25 m 361 501.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317 499.25 m 361 499.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 513.25 m 415 513.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 501.25 m 415 501.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 499.25 m 415 499.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 513.25 m 464 513.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 501.25 m 464 501.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 499.25 m 464 499.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 513.25 m 513 513.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 501.25 m 513 501.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 499.25 m 513 499.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 513.25 m 562 513.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 501.25 m 562 501.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 499.25 m 562 499.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 170 424.25 m 214 424.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 170 412.25 m 214 412.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 170 410.25 m 214 410.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 219 424.25 m 263 424.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 219 412.25 m 263 412.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 219 410.25 m 263 410.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 424.25 m 312 424.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 412.25 m 312 412.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 410.25 m 312 410.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317 424.25 m 361 424.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317 412.25 m 361 412.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317 410.25 m 361 410.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 424.25 m 415 424.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 412.25 m 415 412.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 410.25 m 415 410.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 424.25 m 464 424.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 412.25 m 464 412.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 410.25 m 464 410.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 424.25 m 513 424.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 412.25 m 513 412.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 410.25 m 513 410.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 424.25 m 562 424.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 412.25 m 562 412.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 410.25 m 562 410.25 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 223.75 601.25 Td (As of December 31, 2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 424.75 601.25 Td (As of December 31, 2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 180.60 586.25 Td (Level I) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 228.60 586.25 Td (Level II) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 276.65 586.25 Td (Level III) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 330.35 586.25 Td (Total) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 381.60 586.25 Td (Level I) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 429.60 586.25 Td (Level II) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 477.65 586.25 Td (Level III) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 531.35 586.25 Td (Total) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.84 w 0 i [] 0 d 1 J 1 j 3 M 51.5 571.208203125 m 77.73828125 571.208203125 l s q 0 0 0 rg BT 51.50 572.48 Td (Assets) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 51.50 559.48 Td (U.S. ) Tj ET Q q 0 0 0 rg BT 69.14 559.48 Td (T) Tj ET Q q 0 0 0 rg BT 73.73 559.48 Td (reasury and time deposit ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 60.50 551.48 Td (securities ) Tj ET Q BT /F3 8.00 Tf ET BT /F3 5.20 Tf ET q 0 0 0 rg BT 96.51 555.29 Td (\(1\)) Tj ET Q BT /F3 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 1 1 rg BT 102.87 551.48 Td ( ) Tj ET Q BT /F3 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 104.25 551.93 Td (............................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 172.50 551.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 181.85 551.48 Td (757,578) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 221.50 551.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 251.75 551.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 270.50 551.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 300.75 551.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 319.50 551.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 328.80 551.48 Td (757,578) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 373.50 551.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 382.80 551.48 Td (661,116) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 422.50 551.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 452.75 551.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 471.50 551.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 501.75 551.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 520.50 551.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 529.85 551.53 Td (661,116) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 51.50 538.48 Td (Corporate investments) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 133.15 538.93 Td (...............) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 202.75 538.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 235.25 538.48 Td (27,551) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 284.30 538.53 Td (74,663) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 328.80 538.48 Td (102,214) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 403.75 538.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 436.30 538.53 Td (41,876) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 485.30 538.53 Td (25,750) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 534.30 538.53 Td (67,626) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 51.50 525.48 Td (Foreign-currency forward ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 60.50 517.48 Td (contracts ) Tj ET Q BT /F3 8.00 Tf ET BT /F3 5.20 Tf ET q 0 0 0 rg BT 95.18 521.29 Td (\(2\)) Tj ET Q BT /F3 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 1 1 rg BT 101.53 517.48 Td ( ) Tj ET Q BT /F3 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 104.25 517.93 Td (............................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 202.75 517.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 235.25 517.48 Td (16,142) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 300.75 517.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 333.30 517.53 Td (16,142) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 403.75 517.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 440.75 517.53 Td (5,875) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 501.75 517.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 538.75 517.53 Td (5,875) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 51.50 504.48 Td (Total assets) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 95.35 504.93 Td (................................) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 172.50 504.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 183.65 504.34 Td (757,578) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 221.50 504.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 236.85 504.34 Td (43,693) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 270.50 504.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 285.85 504.39 Td (74,663) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 319.50 504.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 330.65 504.34 Td (875,934) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 373.50 504.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 384.65 504.34 Td (661,116) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 422.50 504.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 437.80 504.34 Td (47,751) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 471.50 504.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 486.85 504.39 Td (25,750) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 520.50 504.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 531.65 504.34 Td (734,617) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.84 w 0 i [] 0 d 1 J 1 j 3 M 51.5 474.208203125 m 88.3984375 474.208203125 l s q 0 0 0 rg BT 51.50 475.48 Td (Liabilities) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 51.50 462.48 Td (Contingent consideration ) Tj ET Q BT /F3 8.00 Tf ET BT /F3 5.20 Tf ET q 0 0 0 rg BT 142.23 466.29 Td (\(3\)) Tj ET Q BT /F3 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 1 1 rg BT 148.58 462.48 Td ( ) Tj ET Q BT /F3 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 150.90 462.93 Td (.......) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 172.50 462.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 202.75 462.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 221.50 462.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 251.75 462.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 270.50 462.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 281.65 462.53 Td (\(23,567) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 308.80 462.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 319.50 462.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 330.65 462.48 Td (\(23,567) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 357.80 462.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 373.50 462.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 403.75 462.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 422.50 462.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 452.75 462.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 471.50 462.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 482.65 462.48 Td (\(28,494) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 509.80 462.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 520.50 462.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 531.65 462.48 Td (\(28,494) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 558.80 462.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 51.50 449.48 Td (Foreign-currency forward ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 60.50 441.48 Td (contracts ) Tj ET Q BT /F3 8.00 Tf ET BT /F3 5.20 Tf ET q 0 0 0 rg BT 95.18 445.29 Td (\(3\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 101.53 441.48 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 104.25 441.93 Td (............................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 202.75 441.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 237.10 441.48 Td (\(7,805) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 259.80 441.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 300.75 441.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 335.05 441.48 Td (\(7,805) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 357.80 441.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 403.75 441.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 438.05 441.48 Td (\(3,286) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 460.80 441.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 501.75 441.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 536.10 441.53 Td (\(3,286) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 558.80 441.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 51.50 428.48 Td (Interest-rate swaps ) Tj ET Q BT /F3 8.00 Tf ET BT /F3 5.20 Tf ET q 0 0 0 rg BT 121.75 432.29 Td (\(3\)) Tj ET Q BT /F3 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 1 1 rg BT 128.10 428.48 Td ( ) Tj ET Q BT /F3 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 128.70 428.93 Td (.................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 202.75 428.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 248.20 428.48 Td (\(60) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 259.80 428.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 300.75 428.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 346.20 428.53 Td (\(60) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 357.80 428.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 403.75 428.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 444.75 428.53 Td (\(943) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 460.80 428.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 501.75 428.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 542.75 428.53 Td (\(943) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 558.80 428.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 51.50 415.48 Td (Total liabilities) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 102.00 415.93 Td (.............................) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 172.50 415.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 203.25 415.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 221.50 415.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 238.50 415.39 Td (\(7,865) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 259.80 415.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 270.50 415.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 283.35 415.39 Td (\(23,567) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 308.80 415.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 319.50 415.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 332.30 415.34 Td (\(31,432) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 357.80 415.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 373.50 415.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 404.25 415.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 422.50 415.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 439.50 415.39 Td (\(4,229) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 460.80 415.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 471.50 415.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 484.35 415.39 Td (\(28,494) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 509.80 415.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 520.50 415.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 533.35 415.39 Td (\(32,723) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 558.80 415.34 Td (\)) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 397.25 m 150 397.25 l s BT /F1 10.00 Tf ET BT /F3 8.00 Tf ET q 0 0 0 rg BT 49.50 385.15 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 72.00 385.15 Td (Carrying value approximates fair value due to the short-term nature.) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 49.50 375.55 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 72.00 375.55 Td (Amounts are included in other assets in the consolidated statements of financial condition, except for ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 430.43 375.55 Td ($5,377) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 454.90 375.55 Td ( of the December 31, 2016 ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 365.95 Td (amount, which is included within corporate investments in the consolidated statements of financial condition.) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 49.50 356.35 Td (\(3\) ) Tj ET Q q 0 0 0 rg BT 72.00 356.35 Td (Amounts are included in accounts payable, accrued expenses and other liabilities in the consolidated statements of financial condition.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 322.75 Td (There were no transfers between Level I and Level II positions for the years ended December 31, 2016 and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 310.75 Td (2015.) Tj ET Q endstream endobj 315 0 obj <> endobj 316 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (157) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 712.75 Td (The table below sets forth a summary of changes in the fair value of Level III financial instruments:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 199 678.25 m 253 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 678.25 m 261 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261 678.25 m 315 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315 678.25 m 322 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 678.25 m 376 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376 678.25 m 384 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 678.25 m 438 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 678.25 m 446 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 678.25 m 500 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 678.25 m 508 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 678.25 m 562 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 199 666.25 m 253 666.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 666.25 m 261 666.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261 666.25 m 315 666.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 666.25 m 376 666.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376 666.25 m 384 666.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 666.25 m 438 666.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 678.25 m 500 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 666.25 m 500 666.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 678.25 m 508 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 666.25 m 508 666.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 678.25 m 562 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 666.25 m 562 666.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 199 638.25 m 253 638.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261 638.25 m 315 638.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 638.25 m 376 638.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 638.25 m 438 638.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 638.25 m 500 638.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 638.25 m 562 638.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 199 638.25 m 253 638.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 638.25 m 376 638.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 638.25 m 500 638.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 199 567.25 m 253 567.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 199 554.25 m 253 554.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 199 552.25 m 253 552.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261 567.25 m 315 567.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261 554.25 m 315 554.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261 552.25 m 315 552.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 567.25 m 376 567.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 554.25 m 376 554.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 552.25 m 376 552.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 567.25 m 438 567.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 554.25 m 438 554.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 552.25 m 438 552.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 567.25 m 500 567.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 554.25 m 500 554.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 552.25 m 500 552.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 567.25 m 562 567.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 554.25 m 562 554.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 552.25 m 562 552.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 199 498.25 m 253 498.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 199 496.25 m 253 496.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261 498.25 m 315 498.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261 496.25 m 315 496.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 498.25 m 376 498.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 496.25 m 376 496.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 498.25 m 438 498.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 496.25 m 438 496.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 498.25 m 500 498.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 496.25 m 500 496.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 498.25 m 562 498.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 496.25 m 562 496.25 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 337.20 682.25 Td (Year Ended December 31,) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 248.70 670.25 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 371.70 670.25 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 495.70 670.25 Td (2014) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 208.75 649.25 Td (Corporate) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 205.05 642.25 Td (Investments) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 269.00 656.25 Td (Contingent) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 263.95 649.25 Td (Consideration) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 274.25 642.25 Td (Liability) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 331.75 649.25 Td (Corporate) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 328.05 642.25 Td (Investments) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 392.00 656.25 Td (Contingent) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 386.95 649.25 Td (Consideration) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 397.25 642.25 Td (Liability) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 455.75 649.25 Td (Corporate) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 452.05 642.25 Td (Investments) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 516.00 656.25 Td (Contingent) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 510.95 649.25 Td (Consideration) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 521.25 642.25 Td (Liability) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 51.50 622.65 Td (Beginning balance) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 127.95 622.20 Td (...........................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 201.50 622.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 221.95 622.65 Td (25,750) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 263.50 622.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 280.95 622.65 Td (\(28,494) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 311.50 622.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 324.50 622.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 363.50 622.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 386.50 622.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 403.95 622.65 Td (\(27,245) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 434.50 622.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 448.50 622.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 487.50 622.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 510.50 622.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 549.50 622.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 60.50 608.65 Td (Contributions or additions) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 165.45 608.20 Td (............) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 221.95 608.65 Td (43,521) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 302.50 608.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 344.95 608.65 Td (25,750) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 425.50 608.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 487.50 608.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 527.95 608.65 Td (\(25,559) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.50 608.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 60.50 594.65 Td (Distributions) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 112.95 594.20 Td (.................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 223.95 594.65 Td (\(1,470) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 249.50 594.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 302.50 594.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 363.50 594.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 425.50 594.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 487.50 594.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 549.50 594.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 60.50 580.65 Td (Net gain \(loss\) included in) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 69.50 571.65 Td (earnings) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 107.95 571.20 Td (...................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 226.95 571.65 Td (6,862) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 288.95 571.65 Td (4,927) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 363.50 571.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 408.95 571.65 Td (\(1,249) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 434.50 571.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 487.50 571.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 532.95 571.65 Td (\(1,686) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.50 571.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 51.50 557.65 Td (Ending balance) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 115.45 557.20 Td (................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 201.50 557.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 221.95 557.65 Td (74,663) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 263.50 557.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 280.95 557.65 Td (\(23,567) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 311.50 557.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 324.50 557.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 344.95 557.65 Td (25,750) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 386.50 557.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 403.95 557.65 Td (\(28,494) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 434.50 557.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 448.50 557.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 487.50 557.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 510.50 557.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 527.95 557.65 Td (\(27,245) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.50 557.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 51.50 528.65 Td (Net change in unrealized gains) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 60.50 519.65 Td (\(losses\) attributable to financial) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 60.50 510.65 Td (instruments still held at end of) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 60.50 501.65 Td (period) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 87.95 501.20 Td (...........................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 201.50 501.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 226.95 501.65 Td (5,913) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 263.50 501.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 288.95 501.65 Td (4,927) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 324.50 501.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 363.50 501.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 386.50 501.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 408.95 501.65 Td (\(1,249) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 434.50 501.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 448.50 501.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 487.50 501.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 510.50 501.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 532.95 501.65 Td (\(1,686) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.50 501.65 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 467.75 Td (The table below sets forth a summary of the valuation techniques and quantitative information utilized in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 455.75 Td (determining the fair value of the Company’) Tj ET Q q 0 0 0 rg BT 237.20 455.75 Td (s Level III financial instruments:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 141 424.25 m 195 424.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 195 424.25 m 203 424.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 203 424.25 m 256 424.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49 412.25 m 133 412.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 141 424.25 m 195 424.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 141 412.25 m 195 412.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 203 412.25 m 256 412.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 264 412.25 m 367 412.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375 412.25 m 459 412.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467 412.25 m 510 412.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 412.25 m 562 412.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49 412.25 m 133 412.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 141 412.25 m 195 412.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 203 412.25 m 256 412.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 264 412.25 m 367 412.25 l s BT /F2 6.50 Tf ET q 0 0 0 rg BT 152.10 428.17 Td (Fair Value as of December 31,) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 399.85 422.67 Td (Significant) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 386.15 416.17 Td (Unobservable Input) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 524.90 422.67 Td (Weighted) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 526.75 416.17 Td (Average) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 58.70 416.17 Td (Financial Instrument) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 160.25 416.17 Td (2016) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 221.75 416.17 Td (2015) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 283.60 416.17 Td (Valuation Technique) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 478.05 416.17 Td (Range) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 51.50 394.25 Td (Corporate investment –) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 60.50 387.25 Td (Limited partnership) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 60.50 380.25 Td (interests) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 88.65 380.65 Td (.....................) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 143.50 396.65 Td ($) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 170.70 396.65 Td (74,663) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 205.50 396.65 Td ($) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 231.70 396.65 Td (25,750) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 266.50 396.65 Td (Market approach) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 266.50 389.65 Td (\(value of underlying assets\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 377.50 396.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 482.55 396.65 Td (Not) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 472.20 389.65 Td (applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 534.05 396.65 Td (Not) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 523.70 389.65 Td (applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 51.50 368.65 Td (Contingent consideration) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 60.50 361.65 Td (liability) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 82.80 361.65 Td (........................) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 170.70 368.65 Td (23,567) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 231.70 368.65 Td (28,494) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 266.50 368.65 Td (Discounted cash flow) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 377.50 368.65 Td (Assumed % of total) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 377.50 361.65 Td (potential contingent) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 377.50 354.65 Td (payments) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 470.05 368.65 Td (0% – 100%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 532.45 368.65 Td (45%) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 317 0 obj <> endobj 318 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (158) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 712.75 Td (Fair V) Tj ET Q q 0 0 0 rg BT 76.74 712.75 Td (alue of Financial Instruments Held By Consolidated Funds ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 696.25 Td (The short-term nature of cash and cash-equivalents held at the consolidated funds causes their carrying ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 684.25 Td (value to approximate fair value. ) Tj ET Q q 0 0 0 rg BT 193.84 684.25 Td (The fair value of cash-equivalents is a Level I valuation. Derivatives may relate to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 672.25 Td (a mix of Level I, II or III investments, and therefore their fair-value hierarchy level may not correspond to the fair-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 660.25 Td (value hierarchy level of the economically hedged investment. ) Tj ET Q q 0 0 0 rg BT 324.47 660.25 Td (The table below summarizes the investments and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 648.25 Td (other financial instruments of the consolidated funds by fair-value hierarchy level: ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 145 621.25 m 193 621.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 193 621.25 m 197 621.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197 621.25 m 245 621.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 245 621.25 m 249 621.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 621.25 m 297 621.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297 621.25 m 301 621.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301 621.25 m 349 621.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 621.25 m 406 621.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 621.25 m 410 621.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 621.25 m 458 621.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458 621.25 m 462 621.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 621.25 m 510 621.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510 621.25 m 514 621.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514 621.25 m 562 621.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 145 609.25 m 193 609.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197 621.25 m 245 621.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197 609.25 m 245 609.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 621.25 m 297 621.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 609.25 m 297 609.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301 609.25 m 349 609.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 621.25 m 406 621.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 609.25 m 406 609.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 621.25 m 410 621.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 621.25 m 458 621.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 609.25 m 458 609.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458 621.25 m 462 621.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 621.25 m 510 621.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 609.25 m 510 609.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510 621.25 m 514 621.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514 621.25 m 562 621.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514 609.25 m 562 609.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 145 470.25 m 193 470.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 145 457.25 m 193 457.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197 470.25 m 245 470.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197 457.25 m 245 457.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 470.25 m 297 470.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 457.25 m 297 457.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301 470.25 m 349 470.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301 457.25 m 349 457.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 470.25 m 406 470.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 457.25 m 406 457.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 470.25 m 458 470.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 457.25 m 458 457.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 470.25 m 510 470.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 457.25 m 510 457.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514 470.25 m 562 470.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514 457.25 m 562 457.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 145 385.25 m 193 385.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197 385.25 m 245 385.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 385.25 m 297 385.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301 385.25 m 349 385.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 385.25 m 406 385.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 385.25 m 458 385.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 385.25 m 510 385.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514 385.25 m 562 385.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 145 372.25 m 193 372.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 145 360.25 m 193 360.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 145 358.25 m 193 358.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197 372.25 m 245 372.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197 360.25 m 245 360.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197 358.25 m 245 358.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 372.25 m 297 372.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 360.25 m 297 360.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 358.25 m 297 358.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301 372.25 m 349 372.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301 360.25 m 349 360.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301 358.25 m 349 358.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 372.25 m 406 372.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 360.25 m 406 360.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 358.25 m 406 358.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 372.25 m 458 372.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 360.25 m 458 360.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 358.25 m 458 358.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 372.25 m 510 372.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 360.25 m 510 360.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 358.25 m 510 358.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514 372.25 m 562 372.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514 360.25 m 562 360.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514 358.25 m 562 358.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 145 297.25 m 193 297.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197 297.25 m 245 297.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 297.25 m 297 297.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301 297.25 m 349 297.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 297.25 m 406 297.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 297.25 m 458 297.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 297.25 m 510 297.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514 297.25 m 562 297.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 145 297.25 m 193 297.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 145 277.25 m 193 277.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197 297.25 m 245 297.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197 277.25 m 245 277.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 297.25 m 297 297.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 277.25 m 297 277.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301 297.25 m 349 297.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301 277.25 m 349 277.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 297.25 m 406 297.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 277.25 m 406 277.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 297.25 m 458 297.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 277.25 m 458 277.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 297.25 m 510 297.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 277.25 m 510 277.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514 297.25 m 562 297.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514 277.25 m 562 277.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 145 251.25 m 193 251.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197 251.25 m 245 251.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 251.25 m 297 251.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301 251.25 m 349 251.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 251.25 m 406 251.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 251.25 m 458 251.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 251.25 m 510 251.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514 251.25 m 562 251.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 145 192.25 m 193 192.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 145 179.25 m 193 179.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197 192.25 m 245 192.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197 179.25 m 245 179.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 192.25 m 297 192.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 179.25 m 297 179.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301 192.25 m 349 192.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301 179.25 m 349 179.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 192.25 m 406 192.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 179.25 m 406 179.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 192.25 m 458 192.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 179.25 m 458 179.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 192.25 m 510 192.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 179.25 m 510 179.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514 192.25 m 562 192.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514 179.25 m 562 179.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 145 179.25 m 193 179.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 145 167.25 m 193 167.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 145 165.25 m 193 165.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197 179.25 m 245 179.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197 167.25 m 245 167.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197 165.25 m 245 165.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 179.25 m 297 179.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 167.25 m 297 167.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 165.25 m 297 165.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301 179.25 m 349 179.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301 167.25 m 349 167.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301 165.25 m 349 165.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 179.25 m 406 179.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 167.25 m 406 167.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 165.25 m 406 165.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 179.25 m 458 179.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 167.25 m 458 167.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 165.25 m 458 165.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 179.25 m 510 179.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 167.25 m 510 167.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 165.25 m 510 165.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514 179.25 m 562 179.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514 167.25 m 562 167.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514 165.25 m 562 165.25 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 205.25 625.25 Td (As of December 31, 2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 418.25 625.25 Td (As of December 31, 2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 157.60 613.25 Td (Level I) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 208.60 613.25 Td (Level II) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 259.65 613.25 Td (Level III) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 316.35 613.25 Td (Total) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 370.60 613.25 Td (Level I) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 421.60 613.25 Td (Level II) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 472.65 613.25 Td (Level III) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 529.35 613.25 Td (Total) Tj ET Q BT /F2 7.50 Tf ET 0 0 0 RG /GS0 gs 0.79 w 0 i [] 0 d 1 J 1 j 3 M 51.5 599.1511962890625 m 76.099609375 599.1511962890625 l s q 0 0 0 rg BT 51.50 600.34 Td (Assets) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 51.50 587.34 Td (Investments:) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 60.50 574.84 Td (Corporate debt – bank) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 69.50 567.34 Td (debt) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 85.20 567.29 Td (...........................) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 147.50 567.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 182.50 567.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 199.50 567.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 208.60 567.34 Td (2,973,482) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 251.50 567.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 266.85 567.34 Td (208,868) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 303.50 567.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 312.55 567.34 Td (3,182,350) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 360.50 567.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 395.50 567.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 412.50 567.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 421.55 567.34 Td (7,891,929) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 464.50 567.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 473.60 567.34 Td (1,871,375) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 516.50 567.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 525.60 567.34 Td (9,763,304) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 60.50 554.84 Td (Corporate debt – all) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 69.50 547.34 Td (other) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 87.30 547.29 Td (..........................) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 182.50 547.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 214.85 547.34 Td (460,975) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 271.05 547.34 Td (28,793) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 318.80 547.34 Td (489,768) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 384.20 547.34 Td (5,450) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 421.55 547.34 Td (4,902,226) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 473.60 547.34 Td (3,009,164) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 525.60 547.34 Td (7,916,840) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 60.50 534.84 Td (Equities – common) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 69.50 527.34 Td (stock) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 89.40 527.29 Td (.........................) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 162.85 527.34 Td (129,362) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 233.60 527.34 Td (61) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 275.20 527.34 Td (6,693) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 318.80 527.34 Td (136,116) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 369.55 527.34 Td (4,836,422) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 427.80 527.34 Td (256,604) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 473.60 527.34 Td (8,729,202) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 521.45 527.34 Td (13,822,228) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 60.50 514.84 Td (Equities – preferred) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 69.50 507.34 Td (stock) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 89.40 507.29 Td (.........................) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 182.50 507.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 234.50 507.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 286.50 507.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 338.50 507.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 395.50 507.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 447.50 507.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 473.60 507.34 Td (1,363,542) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 525.60 507.34 Td (1,363,542) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 60.50 494.34 Td (Real estate) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 99.80 494.29 Td (....................) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 182.50 494.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 234.50 494.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 286.50 494.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 338.50 494.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 380.05 494.34 Td (61,317) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 447.50 494.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 473.60 494.34 Td (9,655,270) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 525.60 494.34 Td (9,716,587) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 60.50 481.84 Td (Real estate loan) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 69.50 474.34 Td (portfolios) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 101.90 474.29 Td (...................) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 182.50 474.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 234.50 474.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 286.50 474.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 338.50 474.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 395.50 474.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 447.50 474.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 473.60 474.34 Td (2,597,405) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 525.60 474.34 Td (2,597,405) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 69.50 461.34 Td (Total investments) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 128.95 461.29 Td (......) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 162.85 461.34 Td (129,362) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 208.60 461.34 Td (3,434,518) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 266.85 461.34 Td (244,354) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 312.55 461.34 Td (3,808,234) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 369.55 461.34 Td (4,903,189) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 417.45 461.34 Td (13,050,759) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 469.45 461.34 Td (27,225,958) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 521.45 461.34 Td (45,179,906) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 51.50 448.34 Td (Derivatives:) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 60.50 435.84 Td (Foreign-currency) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 69.50 428.34 Td (forward contracts) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 128.95 428.29 Td (......) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 182.50 428.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 229.45 428.34 Td (216) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 286.50 428.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 333.45 428.34 Td (216) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 395.50 428.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 427.80 428.34 Td (156,234) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 499.50 428.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 531.85 428.34 Td (156,234) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 60.50 415.34 Td (Swaps) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 85.20 415.29 Td (...........................) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 182.50 415.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 229.45 415.34 Td (141) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 286.50 415.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 333.45 415.34 Td (141) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 395.50 415.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 432.05 415.34 Td (16,544) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 499.50 415.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 536.05 415.34 Td (16,544) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 60.50 402.34 Td (Options and futures) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 126.90 402.29 Td (.......) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 182.50 402.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 234.50 402.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 286.50 402.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 338.50 402.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 395.50 402.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 432.05 402.34 Td (25,559) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 499.50 402.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 536.05 402.34 Td (25,559) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 60.50 389.34 Td (Swaptions) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 95.65 389.29 Td (......................) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 182.50 389.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 234.50 389.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 286.50 389.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 338.50 389.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 395.50 389.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 446.65 389.34 Td (14) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 499.50 389.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 550.65 389.34 Td (14) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 69.50 376.34 Td (Total derivatives) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 124.80 376.29 Td (........) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 182.50 376.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 229.45 376.34 Td (357) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 286.50 376.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 333.45 376.34 Td (357) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 395.50 376.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 427.80 376.34 Td (198,351) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 499.50 376.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 531.85 376.34 Td (198,351) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 51.50 363.34 Td (Total assets) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 93.55 363.29 Td (.......................) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 147.50 363.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 162.85 363.34 Td (129,362) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 199.50 363.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 208.60 363.34 Td (3,434,875) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 251.50 363.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 266.85 363.34 Td (244,354) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 303.50 363.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 312.55 363.34 Td (3,808,591) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 360.50 363.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 369.55 363.34 Td (4,903,189) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 412.50 363.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 417.45 363.34 Td (13,249,110) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 464.50 363.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 469.45 363.34 Td (27,225,958) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 516.50 363.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 521.45 363.34 Td (45,378,257) Tj ET Q BT /F2 7.50 Tf ET 0 0 0 RG /GS0 gs 0.79 w 0 i [] 0 d 1 J 1 j 3 M 51.5 339.1511962890625 m 86.0947265625 339.1511962890625 l s q 0 0 0 rg BT 51.50 340.34 Td (Liabilities) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 51.50 327.34 Td (CLO debt obligations:) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 60.50 314.34 Td (Senior secured notes ) Tj ET Q BT /F3 7.50 Tf ET BT /F3 4.87 Tf ET q 0 0 0 rg BT 133.46 317.92 Td (\(1\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 139.42 314.34 Td ( ) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 147.50 314.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 182.50 314.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 199.50 314.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 206.10 314.34 Td (\(2,953,880) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 242.00 314.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 251.50 314.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 286.50 314.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 303.50 314.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 310.05 314.34 Td (\(2,953,880) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 346.00 314.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 360.50 314.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 395.50 314.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 412.50 314.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 447.50 314.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 464.50 314.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 499.50 314.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 516.50 314.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 551.50 314.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 60.50 301.34 Td (Subordinated notes ) Tj ET Q BT /F3 7.50 Tf ET BT /F3 4.87 Tf ET q 0 0 0 rg BT 127.64 304.92 Td (\(1\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 133.59 301.34 Td ( ) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 135.20 301.29 Td (...) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 182.50 301.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 212.35 301.34 Td (\(100,330) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 242.00 301.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 286.50 301.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 316.30 301.34 Td (\(100,330) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 346.00 301.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 395.50 301.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 447.50 301.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 499.50 301.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 551.50 301.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 69.50 288.84 Td (Total CLO debt) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 78.50 281.34 Td (obligations) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 116.45 281.29 Td (............) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 182.50 281.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 206.10 281.34 Td (\(3,054,210) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 242.00 281.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 286.50 281.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 310.05 281.34 Td (\(3,054,210) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 346.00 281.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 395.50 281.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 447.50 281.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 499.50 281.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 551.50 281.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 51.50 268.34 Td (Securities sold short:) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 60.50 255.34 Td (Equity securities) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 116.45 255.29 Td (............) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 164.55 255.34 Td (\(41,016) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 190.00 255.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 234.50 255.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 286.50 255.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 320.55 255.34 Td (\(41,016) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 346.00 255.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 377.55 255.34 Td (\(91,246) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 403.00 255.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 447.50 255.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 499.50 255.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 533.55 255.34 Td (\(91,246) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 559.00 255.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 51.50 242.34 Td (Derivatives:) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 60.50 229.84 Td (Foreign-currency) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 69.50 222.34 Td (forward contracts) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 128.95 222.29 Td (......) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 182.50 222.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 235.25 222.34 Td (\(4) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 242.00 222.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 286.50 222.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 339.30 222.34 Td (\(4) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 346.00 222.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 395.50 222.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 429.55 222.34 Td (\(64,364) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 455.00 222.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 499.50 222.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 533.55 222.34 Td (\(64,364) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 559.00 222.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 60.50 209.34 Td (Swaps) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 85.20 209.29 Td (...........................) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 182.50 209.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 220.70 209.34 Td (\(1,082) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 242.00 209.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 286.50 209.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 324.70 209.34 Td (\(1,082) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 346.00 209.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 395.50 209.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 425.30 209.34 Td (\(223,359) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 455.00 209.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 485.70 209.34 Td (\(8,251) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 507.00 209.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 529.35 209.34 Td (\(231,610) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 559.00 209.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 60.50 196.34 Td (Options and futures) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 126.90 196.29 Td (.......) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 182.50 196.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 234.50 196.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 286.50 196.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 338.50 196.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 392.15 196.34 Td (\(88) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 403.00 196.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 433.70 196.34 Td (\(4,146) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 455.00 196.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 499.50 196.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 537.70 196.34 Td (\(4,234) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 559.00 196.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 69.50 183.34 Td (Total derivatives) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 124.80 183.29 Td (........) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 182.50 183.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 220.70 183.34 Td (\(1,086) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 242.00 183.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 286.50 183.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 324.70 183.34 Td (\(1,086) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 346.00 183.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 392.15 183.34 Td (\(88) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 403.00 183.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 425.30 183.34 Td (\(291,869) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 455.00 183.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 485.70 183.34 Td (\(8,251) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 507.00 183.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 529.35 183.34 Td (\(300,208) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 559.00 183.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 51.50 170.34 Td (Total liabilities) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 99.80 170.29 Td (....................) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 147.50 170.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 164.55 170.34 Td (\(41,016) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 190.00 170.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 199.50 170.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 206.10 170.34 Td (\(3,055,296) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 242.00 170.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 251.50 170.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 286.50 170.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 303.50 170.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 310.05 170.34 Td (\(3,096,312) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 346.00 170.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 360.50 170.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 377.55 170.34 Td (\(91,334) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 403.00 170.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 412.50 170.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 425.30 170.34 Td (\(291,869) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 455.00 170.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 464.50 170.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 485.70 170.34 Td (\(8,251) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 507.00 170.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 516.50 170.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 529.35 170.34 Td (\(391,454) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 559.00 170.34 Td (\)) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 152.25 m 150 152.25 l s BT /F1 10.00 Tf ET BT /F3 7.50 Tf ET q 0 0 0 rg BT 49.50 140.75 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 72.00 140.75 Td (The fair value of CLO liabilities is classified based on the more observable fair value of CLO assets. Please see notes 2 and 10 for more ) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 72.00 131.75 Td (information.) Tj ET Q endstream endobj 319 0 obj <> endobj 320 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (159) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 712.75 Td (The following tables set forth a summary of changes in the fair value of Level III investments: ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 497.93 712.75 Td ( ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 135 676.25 m 180 676.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 184 676.25 m 229 676.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233 676.25 m 278 676.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 676.25 m 327 676.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 676.25 m 376 676.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 676.25 m 425 676.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 676.25 m 467 676.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 676.25 m 508 676.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512 676.25 m 562 676.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 135 485.25 m 180 485.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 135 473.25 m 180 473.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 135 471.25 m 180 471.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 184 485.25 m 229 485.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 184 473.25 m 229 473.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 184 471.25 m 229 471.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233 485.25 m 278 485.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233 473.25 m 278 473.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233 471.25 m 278 471.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 485.25 m 327 485.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 473.25 m 327 473.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 471.25 m 327 471.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 485.25 m 376 485.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 473.25 m 376 473.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 471.25 m 376 471.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 485.25 m 425 485.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 473.25 m 425 473.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 471.25 m 425 471.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 485.25 m 467 485.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 473.25 m 467 473.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 471.25 m 467 471.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 485.25 m 508 485.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 473.25 m 508 473.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 471.25 m 508 471.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512 485.25 m 562 485.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512 473.25 m 562 473.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512 471.25 m 562 471.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 135 412.25 m 180 412.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 135 410.25 m 180 410.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 184 412.25 m 229 412.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 184 410.25 m 229 410.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233 412.25 m 278 412.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233 410.25 m 278 410.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 412.25 m 327 412.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 410.25 m 327 410.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 412.25 m 376 412.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 410.25 m 376 410.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 471.25 m 425 471.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 473.25 m 425 473.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 412.25 m 425 412.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 410.25 m 425 410.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 471.25 m 467 471.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 473.25 m 467 473.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 412.25 m 467 412.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 410.25 m 467 410.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 412.25 m 508 412.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 410.25 m 508 410.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512 412.25 m 562 412.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512 410.25 m 562 410.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 135 248.25 m 180 248.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 135 236.25 m 180 236.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 135 234.25 m 180 234.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 184 248.25 m 229 248.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 184 236.25 m 229 236.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 184 234.25 m 229 234.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233 248.25 m 278 248.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233 236.25 m 278 236.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233 234.25 m 278 234.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 248.25 m 327 248.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 236.25 m 327 236.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 234.25 m 327 234.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 248.25 m 376 248.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 236.25 m 376 236.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 234.25 m 376 234.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 248.25 m 425 248.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 236.25 m 425 236.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 234.25 m 425 234.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 248.25 m 467 248.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 236.25 m 467 236.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 234.25 m 467 234.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 248.25 m 508 248.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 236.25 m 508 236.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 234.25 m 508 234.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512 248.25 m 562 248.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512 236.25 m 562 236.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512 234.25 m 562 234.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 135 175.25 m 180 175.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 135 173.25 m 180 173.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 184 175.25 m 229 175.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 184 173.25 m 229 173.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233 175.25 m 278 175.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233 173.25 m 278 173.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 175.25 m 327 175.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 282 173.25 m 327 173.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 175.25 m 376 175.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 173.25 m 376 173.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 175.25 m 425 175.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 173.25 m 425 173.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 234.25 m 467 234.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 236.25 m 467 236.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 175.25 m 467 175.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 173.25 m 467 173.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 175.25 m 508 175.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 173.25 m 508 173.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512 175.25 m 562 175.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512 173.25 m 562 173.25 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 140.25 694.25 Td (Corporate) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 146.30 687.25 Td (Debt –) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 139.65 680.25 Td (Bank Debt) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 189.25 694.25 Td (Corporate) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 189.95 687.25 Td (Debt – All) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 196.65 680.25 Td (Other) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 238.45 694.25 Td (Equities –) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 239.80 687.25 Td (Common) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 245.45 680.25 Td (Stock) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 287.45 694.25 Td (Equities –) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 288.40 687.25 Td (Preferred) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 294.45 680.25 Td (Stock) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 334.10 680.25 Td (Real Estate) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 383.10 694.25 Td (Real Estate) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 393.60 687.25 Td (Loan) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 387.60 680.25 Td (Portfolio) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 436.40 680.25 Td (Swaps) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 479.65 680.25 Td (Other) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 528.35 680.25 Td (Total) Tj ET Q BT /F2 7.50 Tf ET 0 0 0 RG /GS0 gs 0.79 w 0 i [] 0 d 1 J 1 j 3 M 51.5 665.1511962890625 m 70.68310546875 665.1511962890625 l s q 0 0 0 rg BT 51.50 666.34 Td (2016:) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 137.50 666.48 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 186.50 666.48 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 235.50 666.48 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 284.50 666.48 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 333.50 666.48 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 473.50 666.48 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 514.50 666.48 Td ( ) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 51.50 653.34 Td (Beginning balance) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 114.80 653.29 Td (........) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 137.50 653.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 143.40 653.34 Td (1,871,375) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 186.50 653.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 192.35 653.34 Td (3,009,164) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 235.50 653.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 241.35 653.34 Td (8,729,202) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 284.50 653.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 290.40 653.39 Td (1,363,542) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 333.50 653.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 339.40 653.34 Td (9,655,270) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 382.50 653.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 388.40 653.34 Td (2,597,405) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 431.50 653.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 442.50 653.34 Td (\(8,251) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 463.80 653.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 473.50 653.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 497.25 653.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 514.50 653.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 521.25 653.39 Td (27,217,707) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 69.50 640.34 Td (Cumulative-effect) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 78.50 632.84 Td (adjustment) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 78.50 625.34 Td (from adoption) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 78.50 617.84 Td (of accounting) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 78.50 610.34 Td (guidance) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 110.65 610.29 Td (..........) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 140.90 610.34 Td (\(1,672,305) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 176.80 610.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 189.85 610.34 Td (\(3,007,287) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 225.80 610.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 238.85 610.34 Td (\(8,725,026) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 274.80 610.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 287.90 610.39 Td (\(1,363,542) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 323.80 610.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 336.90 610.34 Td (\(9,655,270) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 372.80 610.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 385.90 610.34 Td (\(2,597,405) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 421.80 610.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 445.00 610.34 Td (8,251) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 497.25 610.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 518.75 610.39 Td (\(27,012,584) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 558.80 610.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 69.50 597.84 Td (Transfers into) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 78.50 590.34 Td (Level III) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 106.45 590.29 Td (............) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 153.85 590.34 Td (83,218) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 213.25 590.39 Td (657) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 256.00 590.39 Td (3,089) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 316.25 590.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 365.25 590.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 414.25 590.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 456.25 590.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 497.25 590.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 535.85 590.39 Td (86,964) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 69.50 577.84 Td (Transfers out of) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 78.50 570.34 Td (Level III) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 106.45 570.29 Td (............) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 151.35 570.34 Td (\(43,728) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 176.80 570.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 218.25 570.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 267.25 570.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 316.25 570.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 365.25 570.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 414.25 570.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 456.25 570.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 497.25 570.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 533.35 570.39 Td (\(43,728) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 558.80 570.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 69.50 557.34 Td (Purchases) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 106.45 557.29 Td (............) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 153.85 557.34 Td (21,259) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 202.85 557.34 Td (26,662) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 256.00 557.39 Td (1,301) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 316.25 557.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 365.25 557.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 414.25 557.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 456.25 557.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 497.25 557.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 535.85 557.39 Td (49,222) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 69.50 544.34 Td (Sales) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 89.80 544.29 Td (....................) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 151.35 544.34 Td (\(57,659) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 176.80 544.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 210.75 544.39 Td (\(219) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 225.80 544.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 253.50 544.39 Td (\(2,651) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 274.80 544.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 316.25 544.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 365.25 544.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 414.25 544.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 456.25 544.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 497.25 544.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 533.35 544.39 Td (\(60,529) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 558.80 544.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 69.50 531.84 Td (Realized gains) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 78.50 524.34 Td (\(losses\), net) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 121.05 524.29 Td (.....) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 164.25 524.34 Td (389) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 221.60 524.34 Td (2) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 267.25 524.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 316.25 524.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 365.25 524.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 414.25 524.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 456.25 524.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 497.25 524.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 546.25 524.39 Td (391) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 69.50 511.84 Td (Unrealized) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 78.50 504.34 Td (appreciation) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 78.50 496.84 Td (\(depreciation\),) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 78.50 489.34 Td (net) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 89.80 489.29 Td (....................) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 158.00 489.34 Td (6,319) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 210.75 489.39 Td (\(186) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 225.80 489.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 262.25 489.39 Td (778) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 316.25 489.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 365.25 489.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 414.25 489.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 456.25 489.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 497.25 489.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 540.00 489.39 Td (6,911) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 51.50 476.34 Td (Ending balance) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 104.40 476.29 Td (.............) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 137.50 476.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 149.65 476.34 Td (208,868) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 186.50 476.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 202.85 476.34 Td (28,793) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 235.50 476.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 256.00 476.39 Td (6,693) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 284.50 476.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 316.25 476.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 333.50 476.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 365.25 476.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 382.50 476.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 414.25 476.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 431.50 476.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 456.25 476.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 473.50 476.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 497.25 476.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 514.50 476.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 531.65 476.34 Td (244,354) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 51.50 460.34 Td (Net change in) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 60.50 452.84 Td (unrealized) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 60.50 445.34 Td (appreciation) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 60.50 437.84 Td (\(depreciation\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 60.50 430.34 Td (attributable to assets) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 60.50 422.84 Td (still held at end of) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 60.50 415.34 Td (period) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 83.55 415.29 Td (.......................) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 137.50 415.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 158.00 415.34 Td (6,196) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 186.50 415.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 210.75 415.39 Td (\(186) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 225.80 415.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 235.50 415.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 262.25 415.39 Td (778) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 284.50 415.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 316.25 415.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 333.50 415.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 365.25 415.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 382.50 415.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 414.25 415.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 431.50 415.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 456.25 415.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 473.50 415.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 497.25 415.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 514.50 415.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 540.00 415.39 Td (6,788) Tj ET Q BT /F2 7.50 Tf ET 0 0 0 RG /GS0 gs 0.79 w 0 i [] 0 d 1 J 1 j 3 M 51.5 385.1511962890625 m 70.68310546875 385.1511962890625 l s q 0 0 0 rg BT 51.50 386.34 Td (2015:) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 137.50 386.48 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 186.50 386.48 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 235.50 386.48 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 284.50 386.48 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 333.50 386.48 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 473.50 386.48 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 514.50 386.48 Td ( ) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 51.50 373.34 Td (Beginning balance) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 114.80 373.29 Td (........) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 137.50 373.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 143.40 373.34 Td (1,555,656) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 186.50 373.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 192.35 373.34 Td (2,750,661) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 235.50 373.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 241.35 373.34 Td (9,044,579) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 284.50 373.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 290.40 373.39 Td (1,320,752) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 333.50 373.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 339.40 373.34 Td (9,216,056) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 382.50 373.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 388.40 373.34 Td (2,399,105) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 431.50 373.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 438.30 373.34 Td (\(10,687) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 463.80 373.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 473.50 373.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 481.85 373.34 Td (15,576) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 514.50 373.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 521.25 373.39 Td (26,291,698) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 69.50 360.84 Td (Transfers into) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 78.50 353.34 Td (Level III) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 106.45 353.29 Td (............) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 149.65 353.34 Td (364,501) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 198.60 353.34 Td (248,824) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 247.60 353.34 Td (570,137) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 300.85 353.39 Td (15,835) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 345.65 353.34 Td (142,165) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 414.25 353.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 456.25 353.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 497.25 353.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 525.40 353.34 Td (1,341,462) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 69.50 340.84 Td (Transfers out of) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 78.50 333.34 Td (Level III) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 106.45 333.29 Td (............) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 147.15 333.34 Td (\(199,119) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 176.80 333.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 196.10 333.34 Td (\(246,615) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 225.80 333.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 238.85 333.34 Td (\(1,427,473) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 274.80 333.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 298.35 333.39 Td (\(32,692) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 323.80 333.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 347.30 333.34 Td (\(61,317) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 372.80 333.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 414.25 333.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 456.25 333.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 479.35 333.34 Td (\(12,000) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 504.80 333.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 522.90 333.34 Td (\(1,979,216) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 558.80 333.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 69.50 320.34 Td (Purchases) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 106.45 320.29 Td (............) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 149.65 320.34 Td (684,359) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 192.35 320.34 Td (1,267,168) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 241.35 320.34 Td (1,706,683) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 296.65 320.39 Td (203,077) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 339.40 320.34 Td (1,973,704) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 388.40 320.34 Td (1,207,691) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 456.25 320.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 497.25 320.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 525.40 320.34 Td (7,042,682) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 69.50 307.34 Td (Sales) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 89.80 307.29 Td (....................) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 147.15 307.34 Td (\(493,438) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 176.80 307.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 196.10 307.34 Td (\(584,756) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 225.80 307.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 238.85 307.34 Td (\(1,315,766) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 274.80 307.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 294.15 307.39 Td (\(305,917) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 323.80 307.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 336.90 307.34 Td (\(2,242,760) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 372.80 307.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 385.90 307.34 Td (\(1,100,273) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 421.80 307.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 456.25 307.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 483.50 307.34 Td (\(5,513) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 504.80 307.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 522.90 307.34 Td (\(6,048,423) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 558.80 307.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 69.50 294.84 Td (Realized gains) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 78.50 287.34 Td (\(losses\), net) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 121.05 287.29 Td (.....) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 153.85 287.34 Td (16,245) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 204.50 287.39 Td (\(4,670) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 225.80 287.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 247.60 287.34 Td (125,637) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 300.85 287.39 Td (81,037) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 345.65 287.34 Td (766,400) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 394.65 287.34 Td (283,074) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 456.25 287.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 486.00 287.34 Td (3,147) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 525.40 287.34 Td (1,270,870) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 69.50 274.84 Td (Unrealized) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 78.50 267.34 Td (appreciation) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 78.50 259.84 Td (\(depreciation\),) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 78.50 252.34 Td (net) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 89.80 252.29 Td (....................) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 151.35 252.34 Td (\(56,829) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 176.80 252.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 196.10 252.34 Td (\(421,448) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 225.80 252.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 251.85 252.34 Td (25,405) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 300.85 252.39 Td (81,450) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 343.15 252.34 Td (\(138,978) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 372.80 252.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 392.15 252.34 Td (\(192,192) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 421.80 252.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 445.00 252.34 Td (2,436) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 483.50 252.34 Td (\(1,210) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 504.80 252.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 529.15 252.34 Td (\(701,366) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 558.80 252.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 51.50 239.34 Td (Ending balance) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 104.40 239.29 Td (.............) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 137.50 239.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 143.40 239.34 Td (1,871,375) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 186.50 239.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 192.35 239.34 Td (3,009,164) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 235.50 239.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 241.35 239.34 Td (8,729,202) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 284.50 239.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 290.40 239.39 Td (1,363,542) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 333.50 239.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 339.40 239.34 Td (9,655,270) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 382.50 239.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 388.40 239.34 Td (2,597,405) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 431.50 239.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 442.50 239.34 Td (\(8,251) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 463.80 239.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 473.50 239.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 497.25 239.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 514.50 239.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 521.25 239.39 Td (27,217,707) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 51.50 223.34 Td (Net change in) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 60.50 215.84 Td (unrealized) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 60.50 208.34 Td (appreciation) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 60.50 200.84 Td (\(depreciation\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 60.50 193.34 Td (attributable to assets) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 60.50 185.84 Td (still held at end of) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 60.50 178.34 Td (period) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 83.55 178.29 Td (.......................) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 137.50 178.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 151.35 178.34 Td (\(43,305) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 176.80 178.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 186.50 178.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 196.10 178.34 Td (\(340,883) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 225.80 178.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 235.50 178.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 249.35 178.34 Td (\(33,299) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 274.80 178.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 284.50 178.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 296.65 178.39 Td (169,799) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 333.50 178.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 345.65 178.34 Td (342,560) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 382.50 178.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 392.15 178.34 Td (\(192,192) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 421.80 178.34 Td (\)) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 431.50 178.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 445.00 178.34 Td (2,436) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 473.50 178.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 497.25 178.34 Td (—) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 514.50 178.34 Td ($) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 533.35 178.39 Td (\(94,884) Tj ET Q BT /F3 7.50 Tf ET q 0 0 0 rg BT 558.80 178.34 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 147.75 Td (T) Tj ET Q q 0 0 0 rg BT 90.50 147.75 Td (otal realized and unrealized gains and losses recorded for Level III investments are included in net ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 135.75 Td (realized gain on consolidated funds’) Tj ET Q q 0 0 0 rg BT 208.13 135.75 Td ( investments or net change in unrealized appreciation \(depreciation\) on ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 123.75 Td (consolidated funds’) Tj ET Q q 0 0 0 rg BT 134.74 123.75 Td ( investments in the consolidated statements of operations. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 102.75 Td (There were ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 138.85 102.75 Td (no) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 149.98 102.75 Td ( transfers between Level I and Level II positions for the years ended December 31, 2016 and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 90.75 Td (2015. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 69.75 Td (T) Tj ET Q q 0 0 0 rg BT 91.24 69.75 Td (ransfers out of Level III are generally attributable to certain investments that experienced a more ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 57.75 Td (significant level of market trading activity or completed an initial public of) Tj ET Q q 0 0 0 rg BT 368.36 57.75 Td (fering during the respective period and thus ) Tj ET Q endstream endobj 321 0 obj <> endobj 322 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (160) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 712.75 Td (were valued using observable inputs. ) Tj ET Q q 0 0 0 rg BT 219.42 712.75 Td (T) Tj ET Q q 0 0 0 rg BT 225.16 712.75 Td (ransfers into Level III typically reflect either investments that experienced a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 700.75 Td (less significant level of market trading activity during the period or portfolio companies that undertook restructurings ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 688.75 Td (or bankruptcy proceedings and thus were valued in the absence of observable inputs. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 667.75 Td (The following table sets forth a summary of the valuation techniques and quantitative information utilized in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 655.75 Td (determining the fair value of the consolidated funds’) Tj ET Q q 0 0 0 rg BT 277.61 655.75 Td ( Level III investments as of December 31, 2016: ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49 627.25 m 135 627.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 143 627.25 m 190 627.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 198 627.25 m 311 627.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319 627.25 m 432 627.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 440 627.25 m 497 627.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 627.25 m 562 627.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49 627.25 m 135 627.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 143 627.25 m 190 627.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 198 627.25 m 311 627.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 143 279.25 m 190 279.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 143 261.25 m 190 261.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 143 259.25 m 190 259.25 l s BT /F2 6.50 Tf ET q 0 0 0 rg BT 66.05 631.17 Td (Investment Type) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 150.60 631.17 Td (Fair Value) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 222.60 631.17 Td (Valuation Technique) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 335.95 637.67 Td (Significant Unobservable ) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 354.65 631.17 Td (Inputs) Tj ET Q BT /F2 6.50 Tf ET BT /F2 4.22 Tf ET q 0 0 0 rg BT 374.15 634.27 Td ( \(9\)\(10\)\(1) Tj ET Q BT /F2 4.22 Tf ET q 0 0 0 rg BT 391.52 634.27 Td (1\)) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 458.05 631.17 Td (Range) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 518.40 637.67 Td (W) Tj ET Q q 0 0 0 rg BT 524.42 637.67 Td (eighted ) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 515.60 631.17 Td (A) Tj ET Q q 0 0 0 rg BT 520.05 631.17 Td (verage ) Tj ET Q BT /F2 6.50 Tf ET BT /F2 4.22 Tf ET q 0 0 0 rg BT 542.82 634.27 Td (\(12\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 51.50 611.65 Td (Credit-oriented) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 60.50 604.70 Td (investments:) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 611.65 Td ( ) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 611.65 Td ( ) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 60.50 595.65 Td (Consumer) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 60.50 588.70 Td ( discretionary:) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 145.50 595.65 Td ($) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 169.60 595.65 Td (7,658) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 595.65 Td (Discounted cash flow ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 268.59 598.99 Td (\(1\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 595.65 Td (Discount rate) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 452.00 595.65 Td (5% – 13%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 527.90 595.65 Td (7%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 51.50 579.65 Td ( ) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 165.70 579.65 Td (64,147) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 579.65 Td (Recent market information ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 284.53 582.99 Td (\(6\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 579.65 Td (Quoted prices) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 445.80 579.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 510.80 579.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 60.50 563.65 Td (Consumer Staples:) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 169.60 563.65 Td (7,356) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 563.65 Td (Discounted cash flow ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 268.59 566.99 Td (\(1\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 563.65 Td (Discount rate) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 452.00 563.65 Td (6% – 12%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 527.90 563.65 Td (7%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 165.70 544.65 Td (23,182) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 544.65 Td (Recent market information ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 284.53 547.99 Td (\(6\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 544.65 Td (Quoted prices) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 445.80 544.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 510.80 544.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 60.50 525.65 Td (Energy:) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 165.70 525.65 Td (12,758) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 525.65 Td (Recent market information ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 284.53 528.99 Td (\(6\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 525.65 Td (Quoted prices) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 445.80 525.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 510.80 525.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 60.50 506.65 Td (Industrials:) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 165.70 506.65 Td (10,574) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 506.65 Td (Discounted cash flow ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 268.59 509.99 Td (\(1\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 506.65 Td (Discount rate) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 453.95 506.65 Td (5% – 7%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 527.90 506.65 Td (6%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 169.60 490.65 Td (4,230) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 490.65 Td (Market approach) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 483.65 Td (\(comparable companies\) ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 279.48 486.99 Td (\(2\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 490.65 Td (Earnings multiple ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 377.14 493.99 Td (\(3\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 457.45 490.65 Td (5x - 7x) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 529.30 490.65 Td (6x) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 165.70 471.65 Td (30,531) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 471.65 Td (Recent market information ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 284.53 474.99 Td (\(6\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 471.65 Td (Quoted prices) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 445.80 471.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 510.80 471.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 60.50 455.65 Td (Information) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 60.50 448.65 Td ( technology:) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 165.70 455.65 Td (11,681) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 455.65 Td (Discounted cash flow ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 268.59 458.99 Td (\(1\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 455.65 Td (Discount rate) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 452.00 455.65 Td (6% – 13%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 527.90 455.65 Td (9%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 169.60 436.65 Td (5,076) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 436.65 Td (Recent market information ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 284.53 439.99 Td (\(6\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 436.65 Td (Quoted prices) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 445.80 436.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 510.80 436.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 60.50 420.65 Td (Materials:) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 169.60 420.65 Td (1,206) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 420.65 Td (Discounted cash flow ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 268.59 423.99 Td (\(1\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 420.65 Td (Discount rate) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 450.35 420.65 Td (11% – 13%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 525.95 420.65 Td (12%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 165.70 404.65 Td (15,586) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 404.65 Td (Recent market information ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 284.53 407.99 Td (\(6\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 404.65 Td (Quoted prices) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 445.80 404.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 510.80 404.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 60.50 388.65 Td (Other:) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 165.70 388.65 Td (13,754) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 388.65 Td (Discounted cash flow ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 268.59 391.99 Td (\(1\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 388.65 Td (Discount rate) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 452.00 388.65 Td (8% – 16%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 525.95 388.65 Td (12%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 169.60 372.65 Td (9,137) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 372.65 Td (Recent market information ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 284.53 375.99 Td (\(6\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 372.65 Td (Quoted prices) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 445.80 372.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 510.80 372.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 165.70 356.65 Td (20,785) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 356.65 Td (Recent transaction price ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 277.93 359.99 Td (\(5\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 356.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 445.80 356.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 510.80 356.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 51.50 340.65 Td (Equity investments:) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 169.60 324.65 Td (3,542) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 324.65 Td (Market approach) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 317.65 Td (\(comparable companies\) ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 279.48 320.99 Td (\(2\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 324.65 Td (Earnings multiple ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 377.14 327.99 Td (\(3\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 455.00 324.65 Td (4x – 11x) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 529.30 324.65 Td (8x) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 169.60 303.65 Td (1,352) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 303.65 Td (Discounted cash flow ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 268.59 306.99 Td (\(1\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 303.65 Td (Discount rate) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 450.35 303.65 Td (11% – 33%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 525.95 303.65 Td (14%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 169.60 287.65 Td (1,799) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 287.65 Td (Recent market information ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 284.53 290.99 Td (\(6\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 287.65 Td (Quoted prices) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 445.80 287.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 510.80 287.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 51.50 271.45 Td (Total Level III) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 51.50 264.45 Td ( investments) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 96.45 264.65 Td (..................) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 145.50 264.25 Td ($) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 161.80 264.25 Td (244,354) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 323 0 obj <> endobj 324 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (161) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 712.75 Td (The following table sets forth a summary of the valuation techniques and quantitative information utilized in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 700.75 Td (determining the fair value of the consolidated funds’) Tj ET Q q 0 0 0 rg BT 277.61 700.75 Td ( Level III investments as of December 31, 2015:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49 672.25 m 135 672.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 143 672.25 m 190 672.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 198 672.25 m 311 672.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319 672.25 m 432 672.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 440 672.25 m 497 672.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 672.25 m 562 672.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49 672.25 m 135 672.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 143 672.25 m 190 672.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 198 672.25 m 311 672.25 l s BT /F2 6.50 Tf ET q 0 0 0 rg BT 66.05 676.17 Td (Investment Type) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 150.60 676.17 Td (Fair Value) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 222.60 676.17 Td (Valuation Technique) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 335.95 682.67 Td (Significant Unobservable ) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 354.35 676.17 Td (Inputs ) Tj ET Q BT /F2 6.50 Tf ET BT /F2 4.22 Tf ET q 0 0 0 rg BT 375.65 679.27 Td (\(9\)\(10\)\(1) Tj ET Q BT /F2 4.22 Tf ET q 0 0 0 rg BT 391.85 679.27 Td (1\)) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 458.05 676.17 Td (Range) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 518.40 682.67 Td (W) Tj ET Q q 0 0 0 rg BT 524.42 682.67 Td (eighted ) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 515.60 676.17 Td (A) Tj ET Q q 0 0 0 rg BT 520.05 676.17 Td (verage ) Tj ET Q BT /F2 6.50 Tf ET BT /F2 4.22 Tf ET q 0 0 0 rg BT 542.82 679.27 Td (\(12\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 51.50 656.65 Td (Credit-oriented) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 60.50 649.65 Td (investments:) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 656.65 Td ( ) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 656.65 Td ( ) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 60.50 637.65 Td (Consumer) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 60.50 630.65 Td ( discretionary:) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 145.50 637.65 Td ($) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 161.80 637.65 Td (289,107) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 637.65 Td (Discounted cash flow ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 268.59 640.99 Td (\(1\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 637.65 Td (Discount rate) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 452.00 637.65 Td (5% – 15%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 525.95 637.65 Td (12%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 51.50 618.65 Td ( ) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 161.80 618.65 Td (451,584) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 618.65 Td (Market approach) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 611.65 Td (\(comparable companies\) ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 279.48 614.99 Td (\(2\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 618.65 Td (Earnings multiple ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 377.14 621.99 Td (\(3\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 454.75 618.65 Td (3x – 10x) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 529.30 618.65 Td (6x) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 51.50 599.65 Td ( ) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 161.80 599.65 Td (232,995) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 599.65 Td (Recent transaction price ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 277.93 602.99 Td (\(5\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 599.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 445.80 599.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 510.80 599.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 51.50 586.65 Td ( ) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 161.80 586.65 Td (156,160) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 586.65 Td (Recent market information ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 284.53 589.99 Td (\(6\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 586.65 Td (Quoted prices / discount) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 579.65 Td (\(discount not applicable\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 445.80 586.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 510.80 586.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 60.50 567.65 Td (Financials:) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 161.80 567.65 Td (595,066) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 567.65 Td (Discounted cash flow ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 268.59 570.99 Td (\(1\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 567.65 Td (Discount rate) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 452.00 567.65 Td (6% – 14%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 525.95 567.65 Td (11%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 161.80 554.65 Td (259,669) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 554.65 Td (Market approach) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 547.65 Td (\(value of underlying assets\) ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 288.04 550.99 Td (\(2\)\(4\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 554.65 Td (Underlying asset multiple) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 450.85 554.65 Td (1.1x – 1.5x) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 526.35 554.65 Td (1.2x) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 161.80 535.65 Td (232,958) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 535.65 Td (Recent transaction price ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 277.93 538.99 Td (\(5\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 535.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 445.80 535.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 510.80 535.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 161.80 522.65 Td (241,667) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 522.65 Td (Recent market information ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 284.53 525.99 Td (\(6\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 522.65 Td (Quoted prices / discount) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 515.65 Td (\(discount not applicable\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 445.80 522.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 510.80 522.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 60.50 503.65 Td (Industrials:) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 161.80 503.65 Td (135,808) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 503.65 Td (Discounted cash flow ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 268.59 506.99 Td (\(1\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 503.65 Td (Discount rate) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 452.00 503.65 Td (5% – 15%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 525.95 503.65 Td (13%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 165.70 490.65 Td (55,310) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 490.65 Td (Discounted cash flow ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 268.59 493.99 Td (\(1\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 274.15 490.65 Td ( /) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 483.65 Td (Sales approach ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 251.09 486.99 Td (\(8\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 490.65 Td (Discount rate / Market) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 483.65 Td (transactions) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 452.30 490.65 Td (9% – 11%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 525.95 490.65 Td (10%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 51.50 471.65 Td ( ) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 169.60 471.65 Td (7,549) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 471.65 Td (Market approach) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 464.65 Td (\(comparable companies\) ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 279.48 467.99 Td (\(2\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 471.65 Td (Earnings multiple ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 377.14 474.99 Td (\(3\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 456.70 471.65 Td (5x – 9x) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 529.30 471.65 Td (7x) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 51.50 452.65 Td ( ) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 161.80 452.65 Td (219,121) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 452.65 Td (Market approach) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 445.65 Td (\(value of underlying assets\) ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 288.04 448.99 Td (\(2\)\(4\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 452.65 Td (Underlying asset multiple) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 450.85 452.65 Td (0.7x – 1.0x) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 526.35 452.65 Td (0.9x) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 51.50 433.65 Td ( ) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 165.70 433.65 Td (45,647) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 433.65 Td (Recent transaction price ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 277.93 436.99 Td (\(5\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 433.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 445.80 433.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 510.80 433.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 165.70 420.65 Td (24,247) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 420.65 Td (Recent market information ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 284.53 423.99 Td (\(6\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 420.65 Td (Quoted prices / discount) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 413.65 Td (\(discount not applicable\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 445.80 420.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 510.80 420.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 60.50 401.65 Td (Materials:) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 161.80 401.65 Td (417,749) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 401.65 Td (Discounted cash flow ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 268.59 404.99 Td (\(1\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 401.65 Td (Discount rate) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 450.35 401.65 Td (11% – 14%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 525.95 401.65 Td (14%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 161.80 382.65 Td (128,230) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 382.65 Td (Market approach) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 375.65 Td (\(comparable companies\) ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 279.48 378.99 Td (\(2\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 382.65 Td (Earnings multiple ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 377.14 385.99 Td (\(3\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 456.70 382.65 Td (7x – 9x) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 529.30 382.65 Td (8x) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 169.60 363.65 Td (3,938) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 363.65 Td (Recent transaction price ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 277.93 366.99 Td (\(5\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 363.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 445.80 363.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 510.80 363.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 165.70 344.65 Td (71,174) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 344.65 Td (Recent market information ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 284.53 347.99 Td (\(6\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 344.65 Td (Quoted prices / discount) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 337.65 Td (\(discount not applicable\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 445.80 344.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 510.80 344.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 60.50 325.65 Td (Information) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 60.50 318.65 Td ( technology:) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 161.80 325.65 Td (199,841) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 325.65 Td (Discounted cash flow ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 268.59 328.99 Td (\(1\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 325.65 Td (Discount rate) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 452.00 325.65 Td (6% – 13%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 525.95 325.65 Td (12%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 161.80 306.65 Td (143,596) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 306.65 Td (Market approach) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 299.65 Td (\(comparable companies\) ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 279.48 302.99 Td (\(2\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 306.65 Td (Earnings multiple ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 377.14 309.99 Td (\(3\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 456.70 306.65 Td (6x – 8x) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 529.30 306.65 Td (7x) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 165.70 287.65 Td (63,594) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 287.65 Td (Recent transaction price ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 277.93 290.99 Td (\(5\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 287.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 445.80 287.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 510.80 287.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 165.70 274.65 Td (62,353) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 274.65 Td (Recent market information ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 284.53 277.99 Td (\(6\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 274.65 Td (Quoted prices / discount) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 267.65 Td (\(discount not applicable\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 445.80 274.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 510.80 274.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 60.50 255.65 Td (Other:) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 161.80 255.65 Td (442,797) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 255.65 Td (Discounted cash flow ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 268.59 258.99 Td (\(1\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 255.65 Td (Discount rate) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 452.00 255.65 Td (5% – 20%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 525.95 255.65 Td (12%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 51.50 242.65 Td ( ) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 165.70 242.65 Td (60,643) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 242.65 Td (Recent transaction price ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 277.93 245.99 Td (\(5\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 242.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 445.80 242.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 510.80 242.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 161.80 229.65 Td (331,485) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 229.65 Td (Recent market information ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 284.53 232.99 Td (\(6\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 229.65 Td (Quoted prices / discount) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 222.65 Td (\(discount not applicable\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 445.80 229.65 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 510.80 229.65 Td (Not applicable) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 325 0 obj <> endobj 326 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (162) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49 701.5 m 135 701.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 143 701.5 m 190 701.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 198 701.5 m 311 701.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319 701.5 m 432 701.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 440 701.5 m 497 701.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 701.5 m 562 701.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 143 701.5 m 190 701.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 198 701.5 m 311 701.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 143 117.5 m 190 117.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 143 99.5 m 190 99.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 143 97.5 m 190 97.5 l s BT /F2 6.50 Tf ET q 0 0 0 rg BT 66.05 705.42 Td (Investment Type) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 150.60 705.42 Td (Fair Value) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 222.60 705.42 Td (Valuation Technique) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 335.95 711.92 Td (Significant Unobservable ) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 354.35 705.42 Td (Inputs ) Tj ET Q BT /F2 6.50 Tf ET BT /F2 4.22 Tf ET q 0 0 0 rg BT 375.65 708.52 Td (\(9\)\(10\)\(1) Tj ET Q BT /F2 4.22 Tf ET q 0 0 0 rg BT 391.85 708.52 Td (1\)) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 458.05 705.42 Td (Range) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 518.40 711.92 Td (W) Tj ET Q q 0 0 0 rg BT 524.42 711.92 Td (eighted ) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 515.60 705.42 Td (A) Tj ET Q q 0 0 0 rg BT 520.05 705.42 Td (verage ) Tj ET Q BT /F2 6.50 Tf ET BT /F2 4.22 Tf ET q 0 0 0 rg BT 542.82 708.52 Td (\(12\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 51.50 685.90 Td (Equity investments:) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 60.50 672.90 Td (Financials:) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 164.70 672.90 Td (58,352) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 672.90 Td (Discounted cash flow ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 268.59 676.24 Td (\(1\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 672.90 Td (Discount rate) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 450.05 672.90 Td (14% – 16%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 525.95 672.90 Td (15%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 155.00 653.90 Td (1,029,904) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 653.90 Td (Market approach) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 646.90 Td (\(value of underlying assets\) ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 288.04 650.24 Td (\(2\)\(4\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 653.90 Td (Underlying asset multiple) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 450.85 653.90 Td (1.0x – 1.5x) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 526.35 653.90 Td (1.4x) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 160.80 634.90 Td (189,714) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 634.90 Td (Recent transaction price) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 275.98 638.24 Td ( \(5\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 634.90 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 445.80 634.90 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 510.80 634.90 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 60.50 615.90 Td (Industrials:) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 164.70 615.90 Td (37,130) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 615.90 Td (Discounted cash flow ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 268.59 619.24 Td (\(1\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 615.90 Td (Discount rate) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 450.05 615.90 Td (10% – 12%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 526.25 615.90 Td (11%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 155.00 602.90 Td (2,385,995) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 602.90 Td (Market approach) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 595.90 Td (\(comparable companies\) ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 279.48 599.24 Td (\(2\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 602.90 Td (Earnings multiple ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 377.14 606.24 Td (\(3\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 454.75 602.90 Td (5x – 18x) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 529.30 602.90 Td (9x) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 155.00 583.90 Td (1,287,791) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 583.90 Td (Market approach) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 576.90 Td (\(value of underlying assets\) ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 288.04 580.24 Td (\(2\)\(4\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 583.90 Td (Underlying asset multiple) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 450.85 583.90 Td (0.9x – 1.0x) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 526.35 583.90 Td (1.0x) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 160.80 564.90 Td (248,894) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 564.90 Td (Recent transaction price ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 277.93 568.24 Td (\(5\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 564.90 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 445.80 564.90 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 510.80 564.90 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 164.70 551.90 Td (53,005) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 551.90 Td (Recent market information ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 284.53 555.24 Td (\(6\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 551.90 Td (Quoted prices / discount) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 544.90 Td (\(discount not applicable\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 445.80 551.90 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 510.80 551.90 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 60.50 532.90 Td (Materials:) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 155.00 532.90 Td (1,238,760) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 532.90 Td (Market approach) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 525.90 Td (\(comparable companies\) ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 279.48 529.24 Td (\(2\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 532.90 Td (Earnings multiple ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 377.14 536.24 Td (\(3\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 456.70 532.90 Td (7x – 9x) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 529.30 532.90 Td (8x) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 164.70 513.90 Td (25,133) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 513.90 Td (Recent transaction price ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 277.93 517.24 Td (\(5\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 513.90 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 445.80 513.90 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 510.80 513.90 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 60.50 500.90 Td (Utilities) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 160.80 500.90 Td (616,596) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 500.90 Td (Market approach) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 493.90 Td (\(comparable companies\) ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 279.48 497.24 Td (\(2\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 500.90 Td (Earnings multiple ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 377.14 504.24 Td (\(3\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 455.00 500.90 Td (8x – 11x) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 529.30 500.90 Td (9x) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 160.80 481.90 Td (266,185) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 481.90 Td (Other) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 481.90 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 445.80 481.90 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 510.80 481.90 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 160.80 462.90 Td (200,112) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 462.90 Td (Recent transaction price ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 277.93 466.24 Td (\(5\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 462.90 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 445.80 462.90 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 510.80 462.90 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 60.50 443.90 Td (Other:) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 155.00 443.90 Td (1,898,334) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 443.90 Td (Market approach) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 436.90 Td (\(comparable companies\) ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 279.48 440.24 Td (\(2\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 443.90 Td (Earnings multiple ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 377.14 447.24 Td (\(3\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 454.75 443.90 Td (6x – 18x) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 527.35 443.90 Td (10x) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 160.80 424.90 Td (164,026) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 424.90 Td (Market approach) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 417.90 Td (\(value of underlying assets\) ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 288.04 421.24 Td (\(2\)\(4\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 424.90 Td (Underlying asset multiple) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 450.85 424.90 Td (1.1x – 1.3x) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 526.35 424.90 Td (1.2x) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 51.50 405.90 Td ( ) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 160.80 405.90 Td (221,350) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 405.90 Td (Recent transaction price ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 277.93 409.24 Td (\(5\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 405.90 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 445.80 405.90 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 510.80 405.90 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 160.80 392.90 Td (171,463) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 392.90 Td (Recent market information ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 284.53 396.24 Td (\(6\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 392.90 Td (Quoted prices / discount) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 385.90 Td (\(discount not applicable\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 445.80 392.90 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 510.80 392.90 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 51.50 373.90 Td (Real estate-oriented) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 60.50 366.90 Td (investments:) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 155.00 354.90 Td (3,863,639) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 354.90 Td (Discounted cash flow ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 268.59 358.24 Td (\(1\)\(7\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 354.90 Td (Discount rate) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 452.00 354.90 Td (6% – 44%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 525.95 354.90 Td (13%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 341.90 Td (Terminal capitalization rate) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 452.00 341.90 Td (5% – 10%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 527.90 341.90 Td (7%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 326.90 Td (Direct capitalization rate) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 452.00 326.90 Td (5% – 10%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 527.90 326.90 Td (7%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 51.50 311.90 Td ( ) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 311.90 Td (Net operating income growth rate) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 452.00 311.90 Td (0% – 38%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 525.95 311.90 Td (10%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 51.50 296.90 Td ( ) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 296.90 Td (Absorption rate) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 450.05 296.90 Td (25% – 44%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 525.95 296.90 Td (30%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 160.80 281.90 Td (132,640) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 281.90 Td (Discounted cash flow ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 268.59 285.24 Td (\(1\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 274.15 281.90 Td ( /) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 274.90 Td (Sales approach ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 251.09 278.24 Td (\(8\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 281.90 Td (Discount rate / Market) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 274.90 Td (transactions) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 453.95 281.90 Td (6% – 8%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 527.90 281.90 Td (7%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 51.50 262.90 Td ( ) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 160.80 262.90 Td (218,817) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 262.90 Td (Market approach) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 255.90 Td (\(comparable companies\) ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 279.48 259.24 Td (\(2\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 262.90 Td (Earnings multiple ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 377.14 266.24 Td (\(3\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 455.00 262.90 Td (9x – 11x) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 527.60 262.90 Td (11x) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 51.50 243.90 Td ( ) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 160.80 243.90 Td (992,695) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 243.90 Td (Market approach) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 236.90 Td (\(value of underlying assets\) ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 288.04 240.24 Td (\(2\)\(4\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 243.90 Td (Underlying asset multiple) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 453.75 243.90 Td (1x – 1.8x) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 526.35 243.90 Td (1.6x) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 51.50 224.90 Td ( ) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 160.80 224.90 Td (512,120) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 224.90 Td (Recent transaction price ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 277.93 228.24 Td (\(5\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 224.90 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 445.80 224.90 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 510.80 224.90 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 155.00 211.90 Td (2,385,895) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 211.90 Td (Recent market information ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 284.53 215.24 Td (\(6\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 211.90 Td (Quoted prices / discount) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 453.95 211.90 Td (0% – 5%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 527.90 211.90 Td (3%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 51.50 185.90 Td ( ) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 155.00 185.90 Td (1,385,418) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 185.90 Td (Sales approach ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 251.09 189.24 Td (\(8\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 185.90 Td (Market transactions) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 445.80 185.90 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 510.80 185.90 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 160.80 172.90 Td (164,046) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 172.90 Td (Other) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 172.90 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 445.80 172.90 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 510.80 172.90 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 51.50 159.90 Td (Real estate loan) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 60.50 152.90 Td (portfolios:) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 155.00 140.90 Td (2,101,463) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 140.90 Td (Discounted cash flow ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 268.59 144.24 Td (\(1\)\(7\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 140.90 Td (Discount rate) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 452.00 140.90 Td (7% – 23%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 525.95 140.90 Td (13%) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 160.80 127.90 Td (495,942) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 200.50 127.90 Td (Recent transaction price ) Tj ET Q BT /F3 7.00 Tf ET BT /F3 4.55 Tf ET q 0 0 0 rg BT 277.93 131.24 Td (\(5\)) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 321.50 127.90 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 445.80 127.90 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 510.80 127.90 Td (Not applicable) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 51.50 109.70 Td (T) Tj ET Q q 0 0 0 rg BT 55.00 109.70 Td (otal Level III) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 51.50 102.70 Td ( investments) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 96.45 102.90 Td (..................) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 145.50 102.50 Td ($) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 151.10 102.50 Td (27,217,707) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 327 0 obj <> endobj 328 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (163) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 712.6 m 150 712.6 l s BT /F1 10.00 Tf ET BT /F3 8.00 Tf ET q 0 0 0 rg BT 49.50 700.50 Td (\(1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 59.28 700.50 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 700.50 Td (A) Tj ET Q q 0 0 0 rg BT 76.89 700.50 Td ( discounted cash-flow method is generally used to value performing credit-oriented investments in which the consolidated funds do not ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 690.90 Td (have a controlling interest in the underlying issuer) Tj ET Q q 0 0 0 rg BT 247.21 690.90 Td (, as well as certain equity investments, real estate-oriented investments and real estate ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 681.30 Td (loan portfolios. ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 49.50 671.70 Td (\(2\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 59.28 671.70 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 671.70 Td (A) Tj ET Q q 0 0 0 rg BT 76.89 671.70 Td ( market approach is generally used to value distressed investments and investments in which the consolidated funds have a controlling ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 662.10 Td (interest in the underlying issuer) Tj ET Q q 0 0 0 rg BT 182.29 662.10 Td (. ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 49.50 652.50 Td (\(3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 59.28 652.50 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 652.50 Td (Earnings multiples are based on comparable public companies and transactions with comparable companies. ) Tj ET Q q 0 0 0 rg BT 463.18 652.50 Td (The Company typically ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 642.90 Td (utilizes multiples of EBITDA; however) Tj ET Q q 0 0 0 rg BT 204.50 642.90 Td (, in certain cases the Company may use other earnings multiples believed to be most relevant to the ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 633.30 Td (investment. ) Tj ET Q q 0 0 0 rg BT 117.21 633.30 Td (The Company typically applies the multiple to trailing twelve-months’) Tj ET Q q 0 0 0 rg BT 358.80 633.30 Td ( EBITDA. However) Tj ET Q q 0 0 0 rg BT 427.71 633.30 Td (, in certain cases other earnings ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 623.70 Td (measures, such as pro forma EBITDA, may be utilized if deemed to be more relevant.) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 49.50 614.10 Td (\(4\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 59.28 614.10 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 614.10 Td (A) Tj ET Q q 0 0 0 rg BT 76.89 614.10 Td ( market approach using the value of underlying assets utilizes a multiple, based on comparable companies, of underlying assets or the ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 604.50 Td (net book value of the portfolio company) Tj ET Q q 0 0 0 rg BT 211.05 604.50 Td (. ) Tj ET Q q 0 0 0 rg BT 217.57 604.50 Td (The Company typically obtains the value of underlying assets from the underlying portfolio ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 594.90 Td (company’) Tj ET Q q 0 0 0 rg BT 106.09 594.90 Td (s financial statements or from pricing vendors. ) Tj ET Q q 0 0 0 rg BT 273.57 594.90 Td (The Company may value the underlying assets by using prices and other ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 585.30 Td (relevant information from market transactions involving comparable assets.) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 49.50 575.70 Td (\(5\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 59.28 575.70 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 575.70 Td (Certain investments are valued based on recent transactions, generally defined as investments purchased or sold within six months of the ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 566.10 Td (valuation date. ) Tj ET Q q 0 0 0 rg BT 128.34 566.10 Td (The fair value may also be based on a pending transaction expected to close after the valuation date. ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 49.50 556.50 Td (\(6\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 59.28 556.50 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 556.50 Td (Certain investments are valued using quoted prices for the subject or similar securities. Generally) Tj ET Q q 0 0 0 rg BT 417.34 556.50 Td (, investments valued in this manner are ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 546.90 Td (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 ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 537.30 Td (securities, or may require adjustment for investment-specific factors or restrictions.) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 49.50 527.70 Td (\(7\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 59.28 527.70 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 527.70 Td (The discounted cash flow model for certain real estate-oriented investments and certain real estate loan portfolios contains a sell-out ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 518.10 Td (analysis. In these cases, the discounted cash flow is based on the expected timing and prices of sales of the underlying properties. ) Tj ET Q q 0 0 0 rg BT 540.57 518.10 Td (The ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 508.50 Td (Company’) Tj ET Q q 0 0 0 rg BT 107.87 508.50 Td (s determination of the sales prices of these properties typically includes consideration of prices and other relevant information ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 498.90 Td (from market transactions involving comparable properties. ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 49.50 489.30 Td (\(8\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 59.28 489.30 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 489.30 Td (The sales approach uses prices and other relevant information generated by market transactions involving comparable assets. ) Tj ET Q q 0 0 0 rg BT 523.65 489.30 Td (The ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 479.70 Td (significant unobservable inputs used in the sales approach generally include adjustments to transactions involving comparable assets or ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 470.10 Td (properties, adjustments to external or internal appraised values, and the Company’) Tj ET Q q 0 0 0 rg BT 364.46 470.10 Td (s assumptions regarding market trends or other ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 460.50 Td (relevant factors. ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 49.50 450.90 Td (\(9\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 59.28 450.90 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 450.90 Td (The discount rate is the significant unobservable input used in the fair-value measurement of performing credit-oriented investments in ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 441.30 Td (which the consolidated funds do not have a controlling interest in the underlying issuer) Tj ET Q q 0 0 0 rg BT 376.64 441.30 Td (, as well as certain equity investments and real ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 431.70 Td (estate loan portfolios. ) Tj ET Q q 0 0 0 rg BT 152.05 431.70 Td (An increase \(decrease\) in the discount rate would result in a lower \(higher\) fair-value measurement. ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 49.50 422.10 Td (\(10\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 63.73 422.10 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 422.10 Td (Multiple of either earnings or underlying assets is the significant unobservable input used in the market approach for the fair-value ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 412.50 Td (measurement of distressed credit-oriented investments, credit-oriented investments in which the consolidated funds have a controlling ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 402.90 Td (interest in the underlying issuer) Tj ET Q q 0 0 0 rg BT 182.29 402.90 Td (, equity investments and certain real estate-oriented investments. ) Tj ET Q q 0 0 0 rg BT 417.07 402.90 Td (An increase \(decrease\) in the multiple ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 393.30 Td (would result in a higher \(lower\) fair-value measurement. ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 49.50 383.70 Td (\(1) Tj ET Q q 0 0 0 rg BT 56.02 383.70 Td (1\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 63.13 383.70 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 383.70 Td (The significant unobservable inputs used in the fair-value measurement of real estate investments utilizing a discounted cash flow analysis ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 374.10 Td (can include one or more of the following: discount rate, terminal capitalization rate, direct capitalization rate, net operating income growth ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 364.50 Td (rate or absorption rate. ) Tj ET Q q 0 0 0 rg BT 156.94 364.50 Td (An increase \(decrease\) in a discount rate, terminal capitalization rate or direct capitalization rate would result in a ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 354.90 Td (lower \(higher\) fair-value measurement. ) Tj ET Q q 0 0 0 rg BT 213.39 354.90 Td (An increase \(decrease\) in a net operating income growth rate or absorption rate would result in a ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 345.30 Td (higher \(lower\) fair-value measurement. Generally) Tj ET Q q 0 0 0 rg BT 247.48 345.30 Td (, a change in a net operating income growth rate or absorption rate would be ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 335.70 Td (accompanied by a directionally similar change in the discount rate. ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 49.50 326.10 Td (\(12\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 63.73 326.10 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 326.10 Td (The weighted average is based on the fair value of the investments included in the range.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 284.10 Td (A) Tj ET Q q 0 0 0 rg BT 91.62 284.10 Td ( significant amount of judgment may be required when using unobservable inputs, including assessing the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 272.10 Td (accuracy of source data and the results of pricing models. ) Tj ET Q q 0 0 0 rg BT 310.56 272.10 Td (The Company assesses the accuracy and reliability of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 260.10 Td (the sources it uses to develop unobservable inputs. ) Tj ET Q q 0 0 0 rg BT 282.24 260.10 Td (These sources may include third-party vendors that the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 248.10 Td (Company believes are reliable and commonly utilized by other marketplace participants. ) Tj ET Q q 0 0 0 rg BT 443.59 248.10 Td (As described in note 2, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 236.10 Td (other factors beyond the unobservable inputs described above may have a significant impact on investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 224.10 Td (valuations.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 203.10 Td (During the year ended December 31, 2016, the valuation technique for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 400.71 203.10 Td (one) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 417.39 203.10 Td ( Level III credit-oriented ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 191.10 Td (investment changed from a discounted cash flow to a market approach based on comparable companies due to the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 179.10 Td (anticipated restructuring of the portfolio company) Tj ET Q q 0 0 0 rg BT 264.99 179.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 158.10 Td (During the year ended December 31, 2015, the valuation technique for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 400.71 158.10 Td (ten) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 414.61 158.10 Td ( Level III investments changed, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 146.10 Td (as follows: \(a\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 113.96 146.10 Td (three) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 136.76 146.10 Td ( credit-oriented investments and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 281.83 146.10 Td (one) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 298.51 146.10 Td ( equity investment changed from a market approach based ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 134.10 Td (on comparable companies to a market approach based on the value of underlying assets as a result of an ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 122.10 Td (increased focus on the value of the company’) Tj ET Q q 0 0 0 rg BT 250.00 122.10 Td (s physical assets, \(b\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 346.14 122.10 Td (one) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 362.83 122.10 Td ( equity investment changed from a market ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 110.10 Td (approach based on comparable companies to a valuation based on recent market information due to increased ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 98.10 Td (availability of broker quotations, \(c\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 206.79 98.10 Td (one) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 223.48 98.10 Td ( credit-oriented investment changed from a valuation technique that used ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 86.10 Td (both a discounted cash flow and sales approach to an approach based solely on a discounted cash flow technique ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 74.10 Td (due to a decreased focus on the value of the issuer) Tj ET Q q 0 0 0 rg BT 276.69 74.10 Td (’) Tj ET Q q 0 0 0 rg BT 278.73 74.10 Td (s assets, \(d\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 335.96 74.10 Td (one) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 352.65 74.10 Td ( real estate-oriented investment changed from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 62.10 Td (a valuation based on a market approach to a discounted cash flow as a result of the stabilization of the underlying ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 50.10 Td (property) Tj ET Q q 0 0 0 rg BT 85.44 50.10 Td (, \(e\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 106.00 50.10 Td (one) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 122.68 50.10 Td ( real estate-oriented investment changed from a valuation based on a discounted cash flow to a ) Tj ET Q endstream endobj 329 0 obj <> endobj 330 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (164) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 712.75 Td (sales approach as a result of receiving of) Tj ET Q q 0 0 0 rg BT 231.09 712.75 Td (fers from potential buyers, \(f\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 361.69 712.75 Td (one) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 378.37 712.75 Td ( credit-oriented investment changed from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 700.75 Td (a valuation based on recent market information to a discounted cash flow technique due to decreased availability of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 688.75 Td (broker quotations, and \(g\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 166.79 688.75 Td (one) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 183.47 688.75 Td ( credit-oriented investment, comprised of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 366.89 688.75 Td (ten) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 380.79 688.75 Td ( underlying loans, changed from a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 676.75 Td (valuation technique that used both a discounted cash flow and sales approach to a market approach based on the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 664.75 Td (value of underlying assets as a result of an increased focus on the value of the assets collateralizing the loans.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 639.25 Td (7. DERIV) Tj ET Q q 0 0 0 rg BT 90.44 639.25 Td (A) Tj ET Q q 0 0 0 rg BT 96.92 639.25 Td (TIVES ) Tj ET Q q 0 0 0 rg BT 128.22 639.25 Td (AND HEDGING) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 622.75 Td (The Company enters into derivatives as part of its overall risk management strategy or to facilitate its ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 610.75 Td (investment management activities. Risks associated with fluctuations in interest rates and foreign-currency ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 598.75 Td (exchange rates in the normal course of business are addressed as part of the Company’) Tj ET Q q 0 0 0 rg BT 440.10 598.75 Td (s overall risk management ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 586.75 Td (strategy that may include the use of derivatives to economically hedge or reduce these exposures. From time to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 574.75 Td (time, the Company may enter into \(a\) foreign-currency option and forward contracts to reduce earnings and cash-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 562.75 Td (flow volatility associated with changes in foreign-currency exchange rates, and \(b\) interest-rate swaps to manage all ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 550.75 Td (or a portion of the interest-rate risk associated with its variable-rate borrowings. ) Tj ET Q q 0 0 0 rg BT 404.10 550.75 Td (As a result of the use of these or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 538.75 Td (other derivative contracts, the Company is exposed to the risk that counterparties will fail to fulfill their contractual ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 526.75 Td (obligations. ) Tj ET Q q 0 0 0 rg BT 105.47 526.75 Td (The Company attempts to mitigate this counterparty risk by entering into derivative contracts only with ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 514.75 Td (major financial institutions that have investment-grade credit ratings. Counterparty credit risk is evaluated in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 502.75 Td (determining the fair value of derivatives. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 481.75 Td (As of December 31, 2016, the Company had ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 286.17 481.75 Td (one) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 302.86 481.75 Td ( interest-rate swap outstanding, which expired in January ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 469.75 Td (2017, that was designated to hedge the interest-rate risk of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 329.68 469.75 Td ($150.0 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 391.38 469.75 Td ( outstanding principal balance ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 457.75 Td (remaining under the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 141.22 457.75 Td ($250.0 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 202.93 457.75 Td ( variable-rate bank term loan. ) Tj ET Q q 0 0 0 rg BT 338.00 457.75 Td (As of December 31, 2016, the hedge continued to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 445.75 Td (be ef) Tj ET Q q 0 0 0 rg BT 71.56 445.75 Td (fective. ) Tj ET Q q 0 0 0 rg BT 108.25 445.75 Td (As of December 31, 2015, the Company had an additional interest-rate swap that expired in January ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 433.75 Td (2016 and was designated to hedge the interest-rate risk covering up to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 364.70 433.75 Td ($150.0 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 426.40 433.75 Td ( of the same bank term loan.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 412.75 Td (Freestanding derivatives are financial instruments that the Company enters into as part of its overall risk ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 400.75 Td (management strategy but does not designate as hedging instruments for accounting purposes. ) Tj ET Q q 0 0 0 rg BT 474.03 400.75 Td (These financial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 388.75 Td (instruments may include foreign-currency exchange contracts, interest-rate swaps and other derivative contracts.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 367.75 Td (The fair value of foreign-currency forward sell contracts consisted of the following:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316 330.25 m 373 330.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 330.25 m 436 330.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 330.25 m 499 330.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 330.25 m 562 330.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316 330.25 m 373 330.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 330.25 m 436 330.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 330.25 m 499 330.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 330.25 m 562 330.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 288.25 m 436 288.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 275.25 m 436 275.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 273.25 m 436 273.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 288.25 m 499 288.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 275.25 m 499 275.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 273.25 m 499 273.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 288.25 m 562 288.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 275.25 m 562 275.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 273.25 m 562 273.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 211.25 m 436 211.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 198.25 m 436 198.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 196.25 m 436 196.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 211.25 m 499 211.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 198.25 m 499 198.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 196.25 m 499 196.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 211.25 m 562 211.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 198.25 m 562 198.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 196.25 m 562 196.25 l s BT /F2 7.00 Tf ET 0 0 0 RG /GS0 gs 0.73 w 0 i [] 0 d 1 J 1 j 3 M 52.5 333.144677734375 m 137.3203125 333.144677734375 l s q 0 0 0 rg BT 52.50 334.25 Td (As of December 31, 2016:) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 137.32 334.25 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 329.60 348.25 Td (Contract ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 326.65 341.25 Td (Amount in) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 318.50 334.25 Td (Local Currency ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 393.60 348.25 Td (Contract ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 390.65 341.25 Td (Amount in) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 388.35 334.25 Td (U.S. Dollars) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 459.70 348.25 Td (Market ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 453.65 341.25 Td (Amount in) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 451.35 334.25 Td (U.S. Dollars) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 509.65 348.25 Td (Net Unrealized) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 512.60 341.25 Td (Appreciation) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 510.45 334.25 Td (\(Depreciation\) ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 320.65 Td (Euro, expiring 1/9/17-12/29/17) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 177.45 320.20 Td (......................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 336.95 320.65 Td (242,100) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 383.50 320.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 399.95 320.65 Td (271,848) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 446.50 320.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.95 320.65 Td (257,652) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 509.50 320.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.95 320.65 Td (14,196) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 306.65 Td (USD \(buy GBP\), expiring 1/31/17-12/29/17) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 224.95 306.20 Td (...................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 341.95 306.65 Td (72,565) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 404.95 306.65 Td (72,565) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.95 306.65 Td (78,143) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 532.95 306.65 Td (\(5,578) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.50 306.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 292.65 Td (Japanese ) Tj ET Q q 0 0 0 rg BT 93.87 292.65 Td (Y) Tj ET Q q 0 0 0 rg BT 99.05 292.65 Td (en, expiring 1/31/17-2/28/17) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 214.95 292.20 Td (.......................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 329.45 292.65 Td (6,150,000) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 404.95 292.65 Td (52,511) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.95 292.65 Td (52,792) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.45 292.65 Td (\(281) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.50 292.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 278.65 Td (Total) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 94.95 278.20 Td (.......................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 383.50 278.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 399.95 278.65 Td (396,924) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 446.50 278.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.95 278.65 Td (388,587) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 509.50 278.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.95 278.65 Td (8,337) Tj ET Q BT /F2 7.00 Tf ET 0 0 0 RG /GS0 gs 0.73 w 0 i [] 0 d 1 J 1 j 3 M 52.5 256.144677734375 m 137.3203125 256.144677734375 l s q 0 0 0 rg BT 52.50 257.25 Td (As of December 31, 2015:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 369.50 257.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 432.50 257.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 495.50 257.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.50 257.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 243.65 Td (Euro, expiring 1/8/16-12/30/16) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 177.45 243.20 Td (......................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 336.95 243.65 Td (246,850) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 383.50 243.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 399.95 243.65 Td (274,135) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 446.50 243.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.95 243.65 Td (269,603) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 509.50 243.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.95 243.65 Td (4,532) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 229.65 Td (USD \(buy GBP\), expiring 1/8/16-10/31/16) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 219.95 229.20 Td (.....................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 341.95 229.65 Td (70,594) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 404.95 229.65 Td (70,594) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.95 229.65 Td (72,476) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 532.95 229.65 Td (\(1,882) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.50 229.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 215.65 Td (Japanese ) Tj ET Q q 0 0 0 rg BT 93.87 215.65 Td (Y) Tj ET Q q 0 0 0 rg BT 99.05 215.65 Td (en, expiring 1/29/16-9/30/16) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 214.95 215.20 Td (.......................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 329.45 215.65 Td (5,840,300) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 404.95 215.65 Td (48,631) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.95 215.65 Td (48,692) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 545.45 215.65 Td (\(61) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.50 215.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 201.65 Td (Total) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 94.95 201.20 Td (.......................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 369.50 201.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 383.50 201.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 399.95 201.65 Td (393,360) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 446.50 201.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.95 201.65 Td (390,771) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 509.50 201.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.95 201.65 Td (2,589) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 331 0 obj <> endobj 332 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (165) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 712.75 Td (Realized and unrealized gains and losses arising from freestanding derivative instruments were recorded in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 700.75 Td (the consolidated statements of operations as follows: ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 678.25 m 436 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436 678.25 m 444 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 678.25 m 499 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499 678.25 m 507 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 678.25 m 562 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 664.25 m 436 664.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 664.25 m 499 664.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 664.25 m 562 664.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 626.25 m 436 626.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 611.25 m 436 611.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 609.25 m 436 609.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 626.25 m 499 626.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 611.25 m 499 611.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 609.25 m 499 609.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 626.25 m 562 626.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 611.25 m 562 611.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 609.25 m 562 609.25 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 428.20 682.25 Td (Year Ended December 31,) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 400.20 668.25 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 463.20 668.25 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 526.20 668.25 Td (2014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 51.50 646.65 Td (Investment income) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 132.45 646.20 Td (..................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 383.50 646.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 409.95 646.65 Td (4,630) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 446.50 646.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 486.50 646.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 509.50 646.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.95 646.65 Td (2,554) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 51.50 630.65 Td (General and administrative expense ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 198.08 634.94 Td (\(1\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 205.23 630.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 209.95 630.20 Td (...................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 406.95 630.65 Td (\(8,846) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 432.50 630.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.95 630.65 Td (23,554) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.95 630.65 Td (31,772) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 51.50 614.65 Td (Total) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 77.40 614.20 Td (........................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 383.50 614.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 406.95 614.65 Td (\(4,216) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 432.50 614.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 446.50 614.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.95 614.65 Td (23,554) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 509.50 614.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.95 614.65 Td (34,326) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 596.25 m 149.5 596.25 l s BT /F1 10.00 Tf ET BT /F3 9.00 Tf ET q 0 0 0 rg BT 49.50 585.95 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 72.00 585.95 Td (T) Tj ET Q q 0 0 0 rg BT 76.50 585.95 Td (o the extent that the Company’) Tj ET Q q 0 0 0 rg BT 198.91 585.95 Td (s freestanding derivatives are utilized to hedge its foreign-currency exposure to investment ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 575.15 Td (income and management fees earned from consolidated funds, the related hedged items are eliminated in consolidation, ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 564.35 Td (with the derivative impact \(a positive number reflects a reduction in expenses\) reflected in consolidated general and ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 553.55 Td (administrative expense. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 532.55 Td (As of both December 31, 2016 and 2015, the Company had not designated any derivatives as fair-value ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 520.55 Td (hedges or hedges of net investments in foreign operations. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 490.55 Td (Derivatives Held By Consolidated Funds ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 474.05 Td (Certain consolidated funds utilize derivatives in their ongoing investment operations. ) Tj ET Q q 0 0 0 rg BT 462.76 474.05 Td (These derivatives ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 462.05 Td (primarily consist of foreign-currency forward contracts and options utilized to manage currency risk, interest-rate ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 450.05 Td (swaps to hedge interest-rate risk, options and futures used to hedge certain exposures for specific securities, and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 438.05 Td (total-return swaps utilized mainly to obtain exposure to leveraged loans or to participate in foreign markets not ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 426.05 Td (readily accessible. ) Tj ET Q q 0 0 0 rg BT 136.58 426.05 Td (The primary risk exposure for options and futures is price, while the primary risk exposure for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 414.05 Td (total-return swaps is credit. None of the derivative instruments is accounted for as a hedging instrument utilizing ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 402.05 Td (hedge accounting. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 385.55 Td (The impact of derivatives held by the consolidated funds in the consolidated statements of operations was ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 373.55 Td (as follows:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 96.18 373.55 Td ( ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 191 351.04999999999995 m 247 351.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 247 351.04999999999995 m 254 351.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254 351.04999999999995 m 310 351.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310 351.04999999999995 m 317 351.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317 351.04999999999995 m 373 351.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 351.04999999999995 m 380 351.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 351.04999999999995 m 436 351.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436 351.04999999999995 m 443 351.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 351.04999999999995 m 499 351.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499 351.04999999999995 m 506 351.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506 351.04999999999995 m 562 351.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 191 339.04999999999995 m 247 339.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 247 339.04999999999995 m 254 339.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254 339.04999999999995 m 310 339.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317 339.04999999999995 m 373 339.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 339.04999999999995 m 380 339.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 339.04999999999995 m 436 339.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 191 294.04999999999995 m 247 294.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254 294.04999999999995 m 310 294.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317 339.04999999999995 m 373 339.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317 294.04999999999995 m 373 294.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 339.04999999999995 m 380 339.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 339.04999999999995 m 436 339.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 294.04999999999995 m 436 294.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 339.04999999999995 m 499 339.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 294.04999999999995 m 499 294.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499 339.04999999999995 m 506 339.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506 339.04999999999995 m 562 339.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506 294.04999999999995 m 562 294.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 191 294.04999999999995 m 247 294.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254 294.04999999999995 m 310 294.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317 294.04999999999995 m 373 294.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 294.04999999999995 m 436 294.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 294.04999999999995 m 499 294.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506 294.04999999999995 m 562 294.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 191 232.04999999999995 m 247 232.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254 232.04999999999995 m 310 232.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317 232.04999999999995 m 373 232.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 232.04999999999995 m 436 232.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 232.04999999999995 m 499 232.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506 232.04999999999995 m 562 232.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 191 232.04999999999995 m 247 232.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 191 219.04999999999995 m 247 219.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 191 217.04999999999995 m 247 217.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254 232.04999999999995 m 310 232.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254 219.04999999999995 m 310 219.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254 217.04999999999995 m 310 217.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317 232.04999999999995 m 373 232.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317 219.04999999999995 m 373 219.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317 217.04999999999995 m 373 217.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 232.04999999999995 m 436 232.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 219.04999999999995 m 436 219.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 217.04999999999995 m 436 217.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 232.04999999999995 m 499 232.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 219.04999999999995 m 499 219.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 217.04999999999995 m 499 217.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506 232.04999999999995 m 562 232.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506 219.04999999999995 m 562 219.04999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506 217.04999999999995 m 562 217.04999999999995 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 333.20 355.05 Td (Year Ended December 31,) Tj ET Q BT /F3 4.00 Tf ET q 0 0 0 rg BT 51.50 342.44 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 242.20 343.05 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 368.20 343.05 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 494.20 343.05 Td (2014) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 197.65 312.05 Td (Net Realized) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 194.00 305.05 Td (Gain \(Loss\) on) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 198.05 298.05 Td (Investments) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 257.95 331.45 Td (Net Change in) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 263.80 324.45 Td (Unrealized) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 260.10 317.45 Td (Appreciation) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 257.95 310.45 Td (\(Depreciation\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 277.20 303.45 Td (on) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 261.05 296.45 Td (Investments) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 323.65 312.05 Td (Net Realized) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 320.00 305.05 Td (Gain \(Loss\) on) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 324.05 298.05 Td (Investments) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 383.95 331.45 Td (Net Change in) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 389.80 324.45 Td (Unrealized) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 386.10 317.45 Td (Appreciation) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 383.95 310.45 Td (\(Depreciation\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 403.20 303.45 Td (on) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 387.05 296.45 Td (Investments) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 449.65 312.05 Td (Net Realized) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 446.00 305.05 Td (Gain \(Loss\) on) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 450.05 298.05 Td (Investments) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 509.95 331.45 Td (Net Change in) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 515.80 324.45 Td (Unrealized) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 512.10 317.45 Td (Appreciation) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 509.95 310.45 Td (\(Depreciation\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 529.20 303.45 Td (on) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 513.05 296.45 Td (Investments) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 51.50 278.28 Td (Foreign-currency forward contracts) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 176.35 278.73 Td (.....) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 193.50 278.28 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 230.45 278.28 Td (521) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 256.50 278.28 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 293.45 278.33 Td (264) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 319.50 278.28 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 340.80 278.28 Td (457,594) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 382.50 278.28 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 405.65 278.28 Td (\(98,420) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 432.80 278.28 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 445.50 278.28 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 466.85 278.33 Td (179,675) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 508.50 278.28 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 529.85 278.33 Td (278,647) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 51.50 264.28 Td (Total-return and interest-rate swaps) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 178.60 264.73 Td (....) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 221.10 264.28 Td (\(2,353) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 243.80 264.28 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 284.10 264.33 Td (\(1,416) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 306.80 264.28 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 338.20 264.33 Td (\(215,837) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 369.80 264.28 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 405.65 264.28 Td (\(38,658) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 432.80 264.28 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 471.30 264.33 Td (54,437) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 527.20 264.33 Td (\(193,079) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 558.80 264.28 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 51.50 250.28 Td (Options and futures) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 123.00 250.73 Td (.............................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 221.10 250.28 Td (\(1,293) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 243.80 250.28 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 302.35 250.33 Td (3) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 345.30 250.33 Td (43,055) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 405.65 250.28 Td (\(30,198) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 432.80 250.28 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 468.65 250.28 Td (\(38,431) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.80 250.28 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 538.75 250.33 Td (6,513) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 51.50 236.28 Td (Swaptions) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 89.70 236.73 Td (............................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 235.75 236.28 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 298.75 236.28 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 347.05 236.28 Td (\(2,933) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 369.80 236.28 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 412.75 236.33 Td (2,186) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 473.10 236.33 Td (\(1,158) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 495.80 236.28 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 536.10 236.33 Td (\(4,770) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 558.80 236.28 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 69.50 222.28 Td (Total) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 89.70 222.73 Td (............................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 193.50 222.28 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 221.10 222.28 Td (\(3,125) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 243.80 222.28 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 256.50 222.28 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 284.10 222.33 Td (\(1,149) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 306.80 222.28 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 319.50 222.28 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 340.80 222.28 Td (281,879) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 382.50 222.28 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 401.20 222.33 Td (\(165,090) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 432.80 222.28 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 445.50 222.28 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 466.85 222.33 Td (194,523) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 508.50 222.28 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 534.30 222.33 Td (87,311) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 333 0 obj <> endobj 334 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (166) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 712.75 Td (Foreign-currency Forward Contracts ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 696.25 Td (Certain consolidated funds enter into foreign-currency forward contracts to hedge foreign currencies utilized ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 684.25 Td (in certain current investments or future purchase commitments. ) Tj ET Q q 0 0 0 rg BT 334.06 684.25 Td (All commitments are valued using the applicable ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 672.25 Td (foreign-currency exchange rate, with the resulting unrealized gain or loss included in income. Gains or losses are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 660.25 Td (realized at the time forward contracts are either extinguished or closed if entering into an of) Tj ET Q q 0 0 0 rg BT 451.20 660.25 Td (fsetting contract. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 639.25 Td (The average notional amounts of foreign-currency forward contracts outstanding during 2016 was ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 519.64 639.25 Td ($14.4 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 627.25 Td (million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.84 627.25 Td ( long and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 121.77 627.25 Td (zero) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 141.22 627.25 Td ( short, and during 2015 were ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 271.30 627.25 Td ($5.4 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 319.11 627.25 Td ( long and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 363.04 627.25 Td ($338.1 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 424.74 627.25 Td ( short. Outstanding foreign-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 615.25 Td (currency forward contracts as of December 31, 2016 and 2015, as shown in the table below) Tj ET Q q 0 0 0 rg BT 454.73 615.25 Td (, included ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 500.32 615.25 Td ($216 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 603.25 Td (thousand) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 90.65 603.25 Td ( and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.89 603.25 Td ($156.2 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 174.59 603.25 Td ( of gross unrealized appreciation, and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 344.14 603.25 Td ($4 thousand) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 399.19 603.25 Td ( and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 421.43 603.25 Td ($64.4 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 477.58 603.25 Td ( of gross ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 591.25 Td (unrealized depreciation, respectively) Tj ET Q q 0 0 0 rg BT 210.52 591.25 Td (.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 266 545.75 m 334 545.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 545.75 m 410 545.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 545.75 m 486 545.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 545.75 m 562 545.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 266 545.75 m 334 545.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 545.75 m 410 545.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 545.75 m 486 545.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 545.75 m 562 545.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 515.75 m 410 515.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 502.75 m 410 502.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 500.75 m 410 500.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 515.75 m 486 515.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 502.75 m 486 502.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 500.75 m 486 500.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 515.75 m 562 515.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 502.75 m 562 502.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 500.75 m 562 500.75 l s BT /F2 7.00 Tf ET 0 0 0 RG /GS0 gs 0.73 w 0 i [] 0 d 1 J 1 j 3 M 51.5 548.644677734375 m 136.3203125 548.644677734375 l s q 0 0 0 rg BT 51.50 549.75 Td (As of December 31, 2016:) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 136.32 549.75 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 283.35 563.75 Td (Buy \(Sell\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 271.00 556.75 Td (Contract Amount) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 269.90 549.75 Td (in Local Currency) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 347.00 556.75 Td (Contract Amount) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 351.75 549.75 Td (in U.S. Dollars) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 422.05 556.75 Td (Market Amount in) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 431.85 549.75 Td (U.S. Dollars) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 503.15 563.75 Td (Net Unrealized) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 506.10 556.75 Td (Appreciation) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 503.95 549.75 Td (\(Depreciation\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 51.50 532.98 Td (Euro, expiring 1/6/17-3/16/17) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 158.00 533.43 Td (...............................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 303.65 533.03 Td (\(10,248) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 330.80 532.98 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 344.50 532.98 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 382.30 533.03 Td (10,997) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 420.50 532.98 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 458.30 533.03 Td (10,821) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 496.50 532.98 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 545.45 533.03 Td (176) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 51.50 519.98 Td (Pound Sterling, expiring 1/6/17) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 162.45 520.43 Td (.............................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 314.75 520.03 Td (\(901) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 330.80 519.98 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 386.75 520.03 Td (1,146) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 462.75 520.03 Td (1,110) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 549.90 519.98 Td (36) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 69.50 505.98 Td (Total) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 89.10 506.43 Td (..............................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 330.50 505.98 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 344.50 505.98 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 382.30 506.03 Td (12,143) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 420.50 505.98 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 458.30 506.03 Td (11,931) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 496.50 505.98 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 545.45 506.03 Td (212) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 266 456.75 m 334 456.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 456.75 m 410 456.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 456.75 m 486 456.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 456.75 m 562 456.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 266 456.75 m 334 456.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 456.75 m 410 456.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 456.75 m 486 456.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 456.75 m 562 456.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 270.75 m 410 270.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 270.75 m 486 270.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 270.75 m 562 270.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 270.75 m 410 270.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 257.75 m 410 257.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 255.75 m 410 255.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 270.75 m 486 270.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 257.75 m 486 257.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 255.75 m 486 255.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 270.75 m 562 270.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 257.75 m 562 257.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 255.75 m 562 255.75 l s BT /F2 7.00 Tf ET 0 0 0 RG /GS0 gs 0.73 w 0 i [] 0 d 1 J 1 j 3 M 51.5 459.644677734375 m 136.3203125 459.644677734375 l s q 0 0 0 rg BT 51.50 460.75 Td (As of December 31, 2015:) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 136.32 460.75 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 283.35 474.75 Td (Buy \(Sell\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 271.00 467.75 Td (Contract Amount) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 269.90 460.75 Td (in Local Currency) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 347.00 467.75 Td (Contract Amount) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 351.75 460.75 Td (in U.S. Dollars) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 422.05 467.75 Td (Market Amount in) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 431.85 460.75 Td (U.S. Dollars) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 503.15 474.75 Td (Net Unrealized) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 506.10 467.75 Td (Appreciation) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 503.95 460.75 Td (\(Depreciation\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 51.50 443.98 Td (Euro, expiring 1/12/16-11/13/18) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 164.70 444.43 Td (............................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 292.50 444.03 Td (\(2,383,537) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 330.80 443.98 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 344.50 443.98 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 371.20 444.03 Td (2,630,690) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 420.50 443.98 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 447.20 444.03 Td (2,600,245) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 496.50 443.98 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 534.30 444.03 Td (30,445) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 51.50 430.98 Td (Pound Sterling, expiring 1/12/16-11/14/16) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 200.25 431.43 Td (............................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 292.50 431.03 Td (\(1,401,289) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 330.80 430.98 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 371.20 431.03 Td (2,135,175) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 447.20 431.03 Td (2,065,891) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 534.30 431.03 Td (69,284) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 51.50 417.98 Td (Canadian Dollar, expiring 2/4/16-5/19/16) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 195.80 418.43 Td (..............................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 303.65 418.03 Td (\(46,505) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 330.80 417.98 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 382.30 418.03 Td (35,279) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 458.30 418.03 Td (33,485) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 538.75 418.03 Td (1,794) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 51.50 404.98 Td (Australian Dollar, expiring 3/17/16) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 173.55 405.43 Td (........................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 299.20 405.03 Td (\(323,440) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 330.80 404.98 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 377.80 404.98 Td (228,399) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 453.80 404.98 Td (234,428) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 536.10 405.03 Td (\(6,029) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 558.80 404.98 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 51.50 391.98 Td (Hong Kong Dollar, expiring 1/21/16) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 178.00 392.43 Td (......................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 308.05 391.98 Td (\(1,896) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 330.80 391.98 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 393.45 392.03 Td (245) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 469.45 392.03 Td (245) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 550.80 392.03 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 51.50 378.98 Td (Japanese Yen, expiring 1/21/16 -4/7/16) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 191.35 379.43 Td (................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 292.50 379.03 Td (\(7,651,169) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 330.80 378.98 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 382.30 379.03 Td (62,040) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 458.30 379.03 Td (63,709) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 536.10 379.03 Td (\(1,669) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 558.80 378.98 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 51.50 365.98 Td (Swiss Franc, expiring 1/21/16) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 158.00 366.43 Td (...............................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 314.75 366.03 Td (\(481) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 330.80 365.98 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 393.45 366.03 Td (493) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 469.45 366.03 Td (481) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 549.90 365.98 Td (12) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 51.50 352.98 Td (Singapore Dollar, expiring 1/21/16) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 173.55 353.43 Td (........................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 308.05 352.98 Td (\(2,444) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 330.80 352.98 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 386.75 353.03 Td (1,753) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 462.75 353.03 Td (1,722) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 549.90 352.98 Td (31) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 51.50 339.98 Td (South Korean Won, expiring 1/4/16-12/1/16) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 206.90 340.43 Td (.........................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 283.60 340.03 Td (\(151,173,334) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 330.80 339.98 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 377.80 339.98 Td (132,553) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 453.80 339.98 Td (128,757) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 538.75 340.03 Td (3,796) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 51.50 326.98 Td (New Zealand Dollar, expiring 3/17/16-6/9/16) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 209.15 327.43 Td (........................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 299.20 327.03 Td (\(284,364) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 330.80 326.98 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 377.80 326.98 Td (178,371) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 453.80 326.98 Td (193,723) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 531.65 326.98 Td (\(15,352) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 558.80 326.98 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 51.50 313.98 Td (Danish Krone, expiring 11/4/16) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 162.45 314.43 Td (.............................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 299.20 314.03 Td (\(362,000) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 330.80 313.98 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 382.30 314.03 Td (54,167) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 458.30 314.03 Td (53,316) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 545.45 314.03 Td (851) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 51.50 300.98 Td (Chinese Yuan, expiring 3/17/16-5/20/16) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 193.55 301.43 Td (...............................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 299.20 301.03 Td (\(466,187) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 330.80 300.98 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 382.30 301.03 Td (74,667) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 458.30 301.03 Td (71,220) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 538.75 301.03 Td (3,447) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 51.50 287.98 Td (Swedish Krona, expiring 1/21/16) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 169.10 288.43 Td (..........................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 314.75 288.03 Td (\(145) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 330.80 287.98 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 395.20 288.03 Td (\(11) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 406.80 287.98 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 471.20 288.03 Td (\(17) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 482.80 287.98 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 554.35 288.03 Td (6) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 51.50 274.98 Td (U.S. Dollar \(buy Euro\), expiring 1/12/16-11/18/16) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 226.90 275.43 Td (................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 303.65 275.03 Td (\(32,547) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 330.80 274.98 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 382.30 275.03 Td (37,577) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 458.30 275.03 Td (32,323) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 538.75 275.03 Td (5,254) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 69.50 260.98 Td (Total) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 89.10 261.43 Td (..............................................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 330.50 260.98 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 344.50 260.98 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 371.20 261.03 Td (5,571,398) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 420.50 260.98 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 447.20 261.03 Td (5,479,528) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 496.50 260.98 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 534.30 261.03 Td (91,870) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 335 0 obj <> endobj 336 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (167) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 712.75 Td (Balance Sheet Offsetting) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 691.75 Td (The Company recognizes all derivatives as assets or liabilities at fair value in its consolidated statements of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 679.75 Td (financial condition. In connection with its derivative activities, the Company generally enters into agreements ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 667.75 Td (subject to enforceable master netting arrangements that allow the Company to of) Tj ET Q q 0 0 0 rg BT 407.30 667.75 Td (fset derivative assets and liabilities ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 655.75 Td (in the same currency by specific derivative type or) Tj ET Q q 0 0 0 rg BT 270.15 655.75 Td (, in the event of default by the counterparty) Tj ET Q q 0 0 0 rg BT 458.98 655.75 Td (, to of) Tj ET Q q 0 0 0 rg BT 483.81 655.75 Td (fset derivative ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 643.75 Td (assets and liabilities with the same counterparty) Tj ET Q q 0 0 0 rg BT 260.53 643.75 Td (. While these derivatives are eligible to be of) Tj ET Q q 0 0 0 rg BT 458.79 643.75 Td (fset in accordance with ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 631.75 Td (applicable accounting guidance, the Company has elected to present derivative assets and liabilities based on ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 619.75 Td (gross fair value in its consolidated statements of financial condition. ) Tj ET Q q 0 0 0 rg BT 352.82 619.75 Td (The table below sets forth the setof) Tj ET Q q 0 0 0 rg BT 508.28 619.75 Td (f rights and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 607.75 Td (related arrangements associated with derivatives held by the Company) Tj ET Q q 0 0 0 rg BT 362.82 607.75 Td (. ) Tj ET Q q 0 0 0 rg BT 370.97 607.75 Td (The “gross amounts not of) Tj ET Q q 0 0 0 rg BT 487.51 607.75 Td (fset in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 595.75 Td (statements of financial condition” columns represent derivatives that management has elected not to of) Tj ET Q q 0 0 0 rg BT 504.02 595.75 Td (fset in the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 583.75 Td (consolidated statements of financial condition even though they are eligible to be of) Tj ET Q q 0 0 0 rg BT 417.34 583.75 Td (fset in accordance with ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 571.75 Td (applicable accounting guidance.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 533.25 m 439 533.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 533.25 m 445 533.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 533.25 m 502 533.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 320 507.25 m 374 507.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 507.25 m 439 507.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 507.25 m 502 507.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 507.25 m 563 507.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 320 476.25 m 374 476.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 476.25 m 439 476.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 476.25 m 502 476.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 476.25 m 563 476.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 320 437.25 m 374 437.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 437.25 m 439 437.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 437.25 m 502 437.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 437.25 m 563 437.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 320 423.25 m 374 423.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 320 410.25 m 374 410.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 320 408.25 m 374 408.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 423.25 m 439 423.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 410.25 m 439 410.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 408.25 m 439 408.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 423.25 m 502 423.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 410.25 m 502 410.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 408.25 m 502 408.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 423.25 m 563 423.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 410.25 m 563 410.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 408.25 m 563 408.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 320 360.25 m 374 360.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 320 346.25 m 374 346.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 360.25 m 439 360.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 346.25 m 439 346.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 360.25 m 502 360.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 346.25 m 502 346.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 360.25 m 563 360.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 346.25 m 563 346.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 320 307.25 m 374 307.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 307.25 m 439 307.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 307.25 m 502 307.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 307.25 m 563 307.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 320 293.25 m 374 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0 0 rg BT 335.00 525.25 Td (Assets) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 328.00 518.25 Td (\(Liabilities\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 329.55 511.25 Td (Presented) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 393.40 544.25 Td (Gross Amounts Not Offset in) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 384.90 537.25 Td (Statements of Financial Condition) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 515.75 511.25 Td (Net Amount) Tj ET Q BT /F2 7.00 Tf ET 0 0 0 RG /GS0 gs 0.73 w 0 i [] 0 d 1 J 1 j 3 M 52.5 510.144677734375 m 137.3203125 510.144677734375 l s q 0 0 0 rg BT 52.50 511.25 Td (As of December 31, 2016:) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 393.25 525.25 Td (Derivative) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 398.50 518.25 Td (Assets) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 391.50 511.25 Td (\(Liabilities\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 447.50 525.25 Td (Cash Collateral) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 457.60 518.25 Td (Received) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 457.05 511.25 Td (\(Pledged\)) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 52.50 493.56 Td (Derivative Assets:) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 52.50 480.56 Td (Foreign-currency forward contracts) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 186.60 480.56 Td (.......................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 322.50 480.56 Td ($) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 344.65 480.56 Td (16,142) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 384.50 480.56 Td ($) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 414.35 480.61 Td (7,805) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 447.50 480.56 Td ($) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 490.15 480.56 Td (—) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 511.50 480.56 Td ($) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 538.35 480.61 Td (8,337) Tj ET Q BT /F5 8.50 Tf ET q 0 0 0 rg BT 61.50 467.56 Td (Derivative assets of consolidated funds:) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 52.50 454.56 Td (Foreign-currency forward contracts) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 186.60 454.56 Td (.......................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 356.45 454.56 Td (216) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 430.90 454.56 Td (4) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 490.15 454.56 Td (—) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 545.45 454.56 Td (212) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 52.50 441.56 Td (Total-return and interest-rate swaps) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 188.95 441.56 Td (......................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 356.45 441.56 Td (141) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 421.45 441.56 Td (141) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 490.15 441.56 Td (—) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 551.15 441.56 Td (—) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 70.50 427.56 Td (Subtotal) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 106.25 427.56 Td (.........................................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 356.45 427.56 Td (357) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 421.45 427.56 Td (145) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 490.15 427.56 Td (—) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 545.45 427.56 Td (212) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 52.50 413.56 Td (Total) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 75.55 413.56 Td (......................................................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 322.50 413.56 Td ($) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 344.65 413.56 Td (16,499) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 384.50 413.56 Td ($) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 414.35 413.61 Td (7,950) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 447.50 413.56 Td ($) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 490.15 413.56 Td (—) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 511.50 413.56 Td ($) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 538.35 413.61 Td (8,549) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 52.50 391.56 Td (Derivative Liabilities:) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 52.50 378.56 Td (Foreign-currency forward contracts) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 186.60 378.56 Td (.......................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 322.50 378.56 Td ($) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 346.50 378.56 Td (\(7,805) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 370.65 378.56 Td (\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 384.50 378.56 Td ($) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 411.50 378.56 Td (\(7,805) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 435.65 378.56 Td (\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 447.50 378.56 Td ($) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 490.15 378.56 Td (—) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 511.50 378.56 Td ($) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 551.15 378.56 Td (—) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 52.50 364.56 Td (Interest-rate swaps) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 129.90 364.56 Td (...............................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 358.35 364.61 Td (\(60) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 370.65 364.56 Td (\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 490.15 364.56 Td (—) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 547.35 364.61 Td (\(60) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 559.65 364.56 Td (\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 70.50 350.56 Td (Subtotal) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 106.25 350.56 Td (.........................................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 346.50 350.56 Td (\(7,865) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 370.65 350.56 Td (\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 411.50 350.56 Td (\(7,805) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 435.65 350.56 Td (\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 490.15 350.56 Td (—) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 547.35 350.61 Td (\(60) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 559.65 350.56 Td (\)) Tj ET Q BT /F5 8.50 Tf ET q 0 0 0 rg BT 61.50 337.56 Td (Derivative liabilities of consolidated funds:) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 52.50 324.56 Td (Foreign-currency forward contracts) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 186.60 324.56 Td (.......................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 363.05 324.61 Td (\(4) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 370.65 324.56 Td (\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 428.05 324.61 Td (\(4) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 435.65 324.56 Td (\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 490.15 324.56 Td (—) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 551.15 324.56 Td (—) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 52.50 311.56 Td (Total-return and interest-rate swaps) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 188.95 311.56 Td (......................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 346.50 311.56 Td (\(1,082) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 370.65 311.56 Td (\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 418.60 311.61 Td (\(141) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 435.65 311.56 Td (\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 481.60 311.61 Td (\(941) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 498.65 311.56 Td (\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 551.15 311.56 Td (—) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 70.50 297.56 Td (Subtotal) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 106.25 297.56 Td (.........................................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 346.50 297.56 Td (\(1,086) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 370.65 297.56 Td (\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 418.60 297.61 Td (\(145) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 435.65 297.56 Td (\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 481.60 297.61 Td (\(941) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 498.65 297.56 Td (\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 551.15 297.56 Td (—) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 52.50 283.56 Td (Total) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 75.55 283.56 Td (......................................................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 322.50 283.56 Td ($) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 346.50 283.56 Td (\(8,951) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 370.65 283.56 Td (\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 384.50 283.56 Td ($) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 411.50 283.56 Td (\(7,950) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 435.65 283.56 Td (\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 447.50 283.56 Td ($) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 481.60 283.61 Td (\(941) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 498.65 283.56 Td (\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 511.50 283.56 Td ($) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 547.35 283.61 Td (\(60) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 559.65 283.56 Td (\)) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 337 0 obj <> endobj 338 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated 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m 502 643.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 643.5 m 563 643.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 320 577.5 m 374 577.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 577.5 m 439 577.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 577.5 m 502 577.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 577.5 m 563 577.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 320 577.5 m 374 577.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 577.5 m 439 577.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 577.5 m 502 577.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 577.5 m 563 577.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 320 563.5 m 374 563.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 320 550.5 m 374 550.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 320 548.5 m 374 548.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 563.5 m 439 563.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 550.5 m 439 550.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 548.5 m 439 548.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 563.5 m 502 563.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 550.5 m 502 550.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 548.5 m 502 548.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 563.5 m 563 563.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 550.5 m 563 550.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 548.5 m 563 548.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 320 500.5 m 374 500.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 320 486.5 m 374 486.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 500.5 m 439 500.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 486.5 m 439 486.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 500.5 m 502 500.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 486.5 m 502 486.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 500.5 m 563 500.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 486.5 m 563 486.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 320 434.5 m 374 434.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 434.5 m 439 434.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 434.5 m 502 434.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 434.5 m 563 434.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 320 420.5 m 374 420.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 320 407.5 m 374 407.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 320 405.5 m 374 405.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 420.5 m 439 420.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 407.5 m 439 407.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 405.5 m 439 405.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 420.5 m 502 420.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 407.5 m 502 407.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 405.5 m 502 405.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 420.5 m 563 420.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 407.5 m 563 407.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 405.5 m 563 405.5 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 322.55 706.50 Td (Gross and Net) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 327.05 699.50 Td (Amounts of) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 335.00 692.50 Td (Assets) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 328.00 685.50 Td (\(Liabilities\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 329.55 678.50 Td (Presented) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 393.40 711.50 Td (Gross Amounts Not Offset in) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 384.90 704.50 Td (Statements of Financial Condition) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 515.75 678.50 Td (Net Amount) Tj ET Q BT /F2 7.00 Tf ET 0 0 0 RG /GS0 gs 0.73 w 0 i [] 0 d 1 J 1 j 3 M 52.5 677.394677734375 m 137.3203125 677.394677734375 l s q 0 0 0 rg BT 52.50 678.50 Td (As of December 31, 2015:) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 393.25 692.50 Td (Derivative) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 398.50 685.50 Td (Assets) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 391.50 678.50 Td (\(Liabilities\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 447.50 692.50 Td (Cash Collateral) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 457.60 685.50 Td (Received) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 457.05 678.50 Td (\(Pledged\)) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 52.50 660.81 Td (Derivative Assets:) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 52.50 647.81 Td (Foreign-currency forward contracts) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 186.60 647.81 Td (.......................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 322.50 647.81 Td ($) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 349.35 647.86 Td (5,875) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 384.50 647.81 Td ($) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 414.35 647.86 Td (2,047) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 447.50 647.81 Td ($) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 490.15 647.81 Td (—) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 511.50 647.81 Td ($) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 538.35 647.86 Td (3,828) Tj ET Q BT /F5 8.50 Tf ET q 0 0 0 rg BT 61.50 634.81 Td (Derivative assets of consolidated funds:) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 52.50 621.81 Td (Foreign-currency forward contracts) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 186.60 621.81 Td (.......................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 339.90 621.81 Td (156,234) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 409.65 621.81 Td (38,033) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 490.15 621.81 Td (—) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 528.90 621.81 Td (118,201) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 52.50 608.81 Td (Total-return and interest-rate swaps) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 188.95 608.81 Td (......................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 344.65 608.81 Td (16,544) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 414.35 608.86 Td (4,526) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 490.15 608.81 Td (—) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 533.65 608.81 Td (12,018) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 52.50 595.81 Td (Options and futures) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 129.90 595.81 Td (...............................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 344.65 595.81 Td (25,559) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 414.35 595.86 Td (5,665) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 490.15 595.81 Td (—) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 533.65 595.81 Td (19,894) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 52.50 581.81 Td (Swaptions) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 96.85 581.81 Td (.............................................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 361.15 581.81 Td (14) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 426.15 581.81 Td (14) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 490.15 581.81 Td (—) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 551.15 581.81 Td (—) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 70.50 567.81 Td (Subtotal) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 106.25 567.81 Td (.........................................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 339.90 567.81 Td (198,351) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 409.65 567.81 Td (48,238) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 490.15 567.81 Td (—) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 528.90 567.81 Td (150,113) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 52.50 553.81 Td (Total) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 75.55 553.81 Td (......................................................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 322.50 553.81 Td ($) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 339.90 553.81 Td (204,226) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 384.50 553.81 Td ($) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 409.65 553.81 Td (50,285) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 447.50 553.81 Td ($) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 490.15 553.81 Td (—) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 511.50 553.81 Td ($) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 528.90 553.81 Td (153,941) Tj ET Q BT /F2 8.50 Tf ET q 0 0 0 rg BT 52.50 531.81 Td (Derivative Liabilities:) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 52.50 518.81 Td (Foreign-currency forward contracts) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 186.60 518.81 Td (.......................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 322.50 518.81 Td ($) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 346.50 518.81 Td (\(3,286) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 370.65 518.81 Td (\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 384.50 518.81 Td ($) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 411.50 518.81 Td (\(2,047) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 435.65 518.81 Td (\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 447.50 518.81 Td ($) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 490.15 518.81 Td (—) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 511.50 518.81 Td ($) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 535.50 518.81 Td (\(1,239) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 559.65 518.81 Td (\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 52.50 504.81 Td (Interest-rate swaps) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 129.90 504.81 Td (...............................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 353.60 504.86 Td (\(943) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 370.65 504.81 Td (\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 427.15 504.81 Td (—) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 490.15 504.81 Td (—) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 542.60 504.86 Td (\(943) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 559.65 504.81 Td (\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 70.50 490.81 Td (Subtotal) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 106.25 490.81 Td (.........................................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 346.50 490.81 Td (\(4,229) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 370.65 490.81 Td (\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 411.50 490.81 Td (\(2,047) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 435.65 490.81 Td (\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 490.15 490.81 Td (—) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 535.50 490.81 Td (\(2,182) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 559.65 490.81 Td (\)) Tj ET Q BT /F5 8.50 Tf ET q 0 0 0 rg BT 61.50 477.81 Td (Derivative liabilities of consolidated funds:) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 52.50 464.81 Td (Foreign-currency forward contracts) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 186.60 464.81 Td (.......................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 341.80 464.86 Td (\(64,364) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 370.65 464.81 Td (\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 406.80 464.86 Td (\(38,788) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 435.65 464.81 Td (\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 490.15 464.81 Td (—) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 530.80 464.86 Td (\(25,576) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 559.65 464.81 Td (\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 52.50 451.81 Td (Total-return and interest-rate swaps) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 188.95 451.81 Td (......................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 337.05 451.86 Td (\(231,610) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 370.65 451.81 Td (\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 411.50 451.81 Td (\(5,304) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 435.65 451.81 Td (\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 465.05 451.86 Td (\(202,677) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 498.65 451.81 Td (\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 530.80 451.86 Td (\(23,629) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 559.65 451.81 Td (\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 52.50 438.81 Td (Options and futures) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 129.90 438.81 Td (...............................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 346.50 438.81 Td (\(4,234) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 370.65 438.81 Td (\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 411.50 438.81 Td (\(4,146) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 435.65 438.81 Td (\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 486.35 438.86 Td (\(88) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 498.65 438.81 Td (\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 551.15 438.81 Td (—) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 70.50 424.81 Td (Subtotal) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 106.25 424.81 Td (.........................................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 337.05 424.86 Td (\(300,208) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 370.65 424.81 Td (\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 406.80 424.86 Td (\(48,238) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 435.65 424.81 Td (\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 465.05 424.86 Td (\(202,765) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 498.65 424.81 Td (\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 530.80 424.86 Td (\(49,205) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 559.65 424.81 Td (\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 52.50 410.81 Td (Total) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 75.55 410.81 Td (......................................................................................................) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 322.50 410.81 Td ($) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 337.05 410.86 Td (\(304,437) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 370.65 410.81 Td (\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 384.50 410.81 Td ($) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 406.80 410.86 Td (\(50,285) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 435.65 410.81 Td (\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 447.50 410.81 Td ($) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 465.05 410.86 Td (\(202,765) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 498.65 410.81 Td (\)) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 511.50 410.81 Td ($) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 530.80 410.86 Td (\(51,387) Tj ET Q BT /F3 8.50 Tf ET q 0 0 0 rg BT 559.65 410.81 Td (\)) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 339 0 obj <> endobj 340 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (169) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 712.75 Td (8. FIXED ) Tj ET Q q 0 0 0 rg BT 92.47 712.75 Td (ASSETS) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 691.75 Td (Fixed assets, which consist of furniture and equipment, capitalized software, of) Tj ET Q q 0 0 0 rg BT 433.27 691.75 Td (fice leasehold improvements ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 679.75 Td (and company-owned aircraft, are included in other assets in the consolidated statements of financial position. In ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 667.75 Td (September 2016, the Company entered into a purchase contract and made a deposit for a new corporate aircraft to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 655.75 Td (be delivered in 2017, at which time it plans to sell its existing corporate aircraft. In connection with its planned sale, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 643.75 Td (the Company recorded a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 162.34 643.75 Td ($4.4 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 212.92 643.75 Td ( impairment charge on the existing aircraft within other income \(expense\), net. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 631.75 Td (The fair value of the existing aircraft was based on prices for similar aircraft.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 610.75 Td (The following table sets forth the Company’) Tj ET Q q 0 0 0 rg BT 277.09 610.75 Td (s fixed assets and accumulated depreciation:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 587.25 m 494 587.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 587.25 m 502 587.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 587.25 m 562 587.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 575.25 m 494 575.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 575.25 m 562 575.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 511.25 m 494 511.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 511.25 m 562 511.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 483.25 m 494 483.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 470.25 m 494 470.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 468.25 m 494 468.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 483.25 m 562 483.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 470.25 m 562 470.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 468.25 m 562 468.25 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 465.50 591.25 Td (As of December 31,) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 456.20 579.25 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 523.70 579.25 Td (2015) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 557.65 Td (Furniture, equipment and capitalized software) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 238.95 557.20 Td (.............................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 437.50 557.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.95 557.65 Td (18,771) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 504.50 557.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.95 557.65 Td (16,820) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 543.65 Td (Leasehold improvements) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 158.90 543.20 Td (.............................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.95 543.65 Td (49,626) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.95 543.65 Td (43,107) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 529.65 Td (Corporate aircraft) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 128.90 529.20 Td (.........................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.95 529.65 Td (66,277) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.95 529.65 Td (12,439) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 515.65 Td (Other) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 83.90 515.20 Td (...........................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.95 515.65 Td (3,748) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.95 515.65 Td (3,295) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 501.65 Td (Fixed assets) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 128.90 501.20 Td (.........................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 457.95 501.65 Td (138,422) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.95 501.65 Td (75,661) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 487.65 Td (Accumulated depreciation) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 161.40 487.20 Td (............................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 459.95 487.65 Td (\(45,344) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.50 487.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 527.95 487.65 Td (\(36,394) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.50 487.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 473.65 Td (Fixed assets, net) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 146.40 473.20 Td (..................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 437.50 473.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.95 473.65 Td (93,078) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 504.50 473.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.95 473.65 Td (39,267) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 439.75 Td (9. GOODWILL) Tj ET Q q 0 0 0 rg BT 115.93 439.75 Td ( ) Tj ET Q q 0 0 0 rg BT 118.33 439.75 Td (AND INT) Tj ET Q q 0 0 0 rg BT 158.14 439.75 Td (ANGIBLES) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 418.75 Td (Goodwill represents the excess of cost over the fair value of identifiable net assets of acquired businesses. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 406.75 Td (Goodwill has an indefinite useful life and is not amortized, but instead is tested for impairment annually in the fourth ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 394.75 Td (quarter of each fiscal year) Tj ET Q q 0 0 0 rg BT 164.51 394.75 Td (, or more frequently if events or circumstances indicate that impairment may have ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 382.75 Td (occurred. ) Tj ET Q q 0 0 0 rg BT 96.69 382.75 Td (As of December 31, 2016, the Company determined there was no goodwill impairment. ) Tj ET Q q 0 0 0 rg BT 487.27 382.75 Td (The carrying ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 370.75 Td (value of goodwill was ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 147.28 370.75 Td ($69.3 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 203.42 370.75 Td ( as of December 31, 2016 and 2015.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 349.75 Td (The following table summarizes the carrying value of intangible assets:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 317.25 m 494.5 317.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494.5 317.25 m 502.5 317.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 317.25 m 562.5 317.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 305.25 m 494.5 305.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 305.25 m 562.5 305.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 269.25 m 494.5 269.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 256.25 m 494.5 256.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 254.25 m 494.5 254.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 269.25 m 562.5 269.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 256.25 m 562.5 256.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 254.25 m 562.5 254.25 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 465.50 321.25 Td (As of December 31,) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 456.20 309.25 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 524.20 309.25 Td (2015) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 287.65 Td (Contractual rights) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 130.90 287.20 Td (........................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 437.00 287.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.45 287.65 Td (28,017) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 505.00 287.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 531.45 287.65 Td (28,017) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 273.65 Td (Accumulated amortization) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 163.40 273.20 Td (...........................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 465.45 273.65 Td (\(9,675) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 491.00 273.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 533.45 273.65 Td (\(5,671) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 559.00 273.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 71.00 259.65 Td (Intangible assets, net) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 163.40 259.20 Td (...........................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 437.00 259.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.45 259.65 Td (18,342) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 505.00 259.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 531.45 259.65 Td (22,346) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 225.75 Td (Amortization expense associated with the Company's intangible assets was ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 423.08 225.75 Td ($4.0 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 473.67 225.75 Td ( for the years ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 213.75 Td (ended December 31, 2016 and 2015, and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 237.92 213.75 Td ($1.7 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 288.51 213.75 Td ( for the year ended December 31, 2014. ) Tj ET Q q 0 0 0 rg BT 470.84 213.75 Td (Amortization ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 201.75 Td (expense is estimated to be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 171.74 201.75 Td ($4.0 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 222.32 201.75 Td ( for each of the years ending December 31, 2017–2020, and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 492.50 201.75 Td ($2.3 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 543.09 201.75 Td ( for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 189.75 Td (2021.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 168.75 Td (Goodwill and intangible assets are included in other assets in the consolidated statements of financial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 156.75 Td (position.) Tj ET Q endstream endobj 341 0 obj <> endobj 342 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (170) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 712.75 Td (10. DEBT OBLIGA) Tj ET Q q 0 0 0 rg BT 134.32 712.75 Td (TIONS ) Tj ET Q q 0 0 0 rg BT 167.29 712.75 Td (AND CREDIT F) Tj ET Q q 0 0 0 rg BT 237.29 712.75 Td (ACILITIES ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 696.25 Td (The Company’) Tj ET Q q 0 0 0 rg BT 150.35 696.25 Td (s debt obligations are set forth below: ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 673.75 m 500 673.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 673.75 m 508 673.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 673.75 m 563 673.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 659.75 m 500 659.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 659.75 m 563 659.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 659.75 m 500 659.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 659.75 m 563 659.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 545.75 m 500 545.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 545.75 m 563 545.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 517.75 m 500 517.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 504.75 m 500 504.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 502.75 m 500 502.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 517.75 m 563 517.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 504.75 m 563 504.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 502.75 m 563 502.75 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 471.00 677.75 Td (As of December 31,) Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 52.50 663.13 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 464.20 663.75 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 527.20 663.75 Td (2015) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 648.15 Td ($50,000, 6.09%, issued in June 2006, matured on June 6, 2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 308.95 647.70 Td (.....................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 447.50 648.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 487.50 648.15 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 510.50 648.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 531.95 648.15 Td (50,000) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 634.15 Td ($50,000, 5.82%, issued in November 2006, matured on November 8, 2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 351.45 633.70 Td (....................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 487.50 634.15 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 531.95 634.15 Td (50,000) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 620.15 Td ($250,000, 6.75%, issued in November 2009, payable on December 2, 2019) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 356.45 619.70 Td (..................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.95 620.15 Td (250,000) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.95 620.15 Td (250,000) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 606.15 Td ($250,000, rate as described below, term loan issued in March 2014, payable on March 31, 2021) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 436.45 605.70 Td (..) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.95 606.15 Td (150,000) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.95 606.15 Td (250,000) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 592.15 Td ($50,000, 3.91%, issued in September 2014, payable on September 3, 2024) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 356.45 591.70 Td (..................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 468.95 592.15 Td (50,000) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 531.95 592.15 Td (50,000) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 578.15 Td ($100,000, 4.01%, issued in September 2014, payable on September 3, 2026) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 361.45 577.70 Td (................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.95 578.15 Td (100,000) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.95 578.15 Td (100,000) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 564.15 Td ($100,000, 4.21%, issued in September 2014, payable on September 3, 2029) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 361.45 563.70 Td (................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.95 564.15 Td (100,000) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.95 564.15 Td (100,000) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 550.15 Td ($100,000, 3.69%, issued in July 2016, payable on July 12, 2031) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 311.45 549.70 Td (....................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.95 550.15 Td (100,000) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 550.50 550.15 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 536.15 Td (Total remaining principal) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 156.40 535.70 Td (..................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.95 536.15 Td (750,000) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.95 536.15 Td (850,000) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 522.15 Td (Less: Debt issuance costs) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 163.90 521.70 Td (...............................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 470.95 522.15 Td (\(4,103) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 496.50 522.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 533.95 522.15 Td (\(3,646) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 559.50 522.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 508.15 Td (Debt obligations) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 123.90 507.70 Td (...............................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 447.50 508.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.95 508.15 Td (745,897) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 510.50 508.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.95 508.15 Td (846,354) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 480.25 Td (As of December 31, 2016, future scheduled principal payments of debt obligations were as follows: ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 385.75 m 563 385.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 372.75 m 563 372.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 370.75 m 563 370.75 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 460.15 Td (2017) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 81.90 459.70 Td (.........................................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 510.50 460.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 550.50 460.15 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 446.15 Td (2018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 81.90 445.70 Td (.........................................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 550.50 446.15 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 432.15 Td (2019) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 81.90 431.70 Td (.........................................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.95 432.15 Td (250,000) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 418.15 Td (2020) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 81.90 417.70 Td (.........................................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 550.50 418.15 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 404.15 Td (2021) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 81.90 403.70 Td (.........................................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.95 404.15 Td (150,000) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 390.15 Td (Thereafter) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 104.40 389.70 Td (................................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.95 390.15 Td (350,000) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 376.15 Td (Total) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 81.90 375.70 Td (.........................................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 510.50 376.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.95 376.15 Td (750,000) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 351.25 Td (In June and November 2016, the Company paid an aggregate ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 362.91 351.25 Td ($100.0 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 424.62 351.25 Td ( for the full maturing principal ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 339.25 Td (balances on its ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 118.99 339.25 Td (6.09%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 147.34 339.25 Td ( and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 169.58 339.25 Td (5.82%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 197.94 339.25 Td ( senior notes. ) Tj ET Q q 0 0 0 rg BT 263.35 339.25 Td (The Company was in compliance with all financial maintenance ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 327.25 Td (covenants associated with its senior notes and bank credit facility as of December 31, 2016 and 2015.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 306.25 Td (The fair value of the Company’) Tj ET Q q 0 0 0 rg BT 221.50 306.25 Td (s debt obligations, which are carried at amortized cost, is a Level III valuation ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 294.25 Td (that is estimated based on a discounted cash-flow calculation using estimated rates that would be of) Tj ET Q q 0 0 0 rg BT 491.80 294.25 Td (fered to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 282.25 Td (Oaktree for debt of similar terms and maturities. ) Tj ET Q q 0 0 0 rg BT 266.06 282.25 Td (The fair value of these debt obligations, gross of debt issuance ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 270.25 Td (costs, was ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 98.96 270.25 Td ($756.6 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 160.66 270.25 Td ( and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 182.90 270.25 Td ($855.3 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 244.61 270.25 Td ( as of December 31, 2016 and 2015, respectively) Tj ET Q q 0 0 0 rg BT 461.78 270.25 Td (, utilizing an average ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 258.25 Td (borrowing rate of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 127.32 258.25 Td (3.9%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 150.11 258.25 Td ( and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 172.35 258.25 Td (3.7%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 195.14 258.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 252.76 258.25 Td (. ) Tj ET Q q 0 0 0 rg BT 260.54 258.25 Td (As of December 31, 2016, a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 387.83 258.25 Td (10%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 407.85 258.25 Td ( increase in the assumed average ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 246.25 Td (borrowing rate would lower the estimated fair value to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 289.07 246.25 Td ($739.2 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 350.77 246.25 Td (, whereas a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 405.24 246.25 Td (10%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 425.26 246.25 Td ( decrease would increase the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 234.25 Td (estimated fair value to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 150.11 234.25 Td ($774.8 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 211.81 234.25 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.50 213.25 Td (In July 2016, the Company’) Tj ET Q q 0 0 0 rg BT 207.50 213.25 Td (s indirect subsidiary) Tj ET Q q 0 0 0 rg BT 294.57 213.25 Td (, Oaktree Capital Management, L.P) Tj ET Q q 0 0 0 rg BT 450.03 213.25 Td (. \(the “Issuer”\), issued ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 201.25 Td (and sold to certain accredited investors ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 225.71 201.25 Td ($100 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 279.07 201.25 Td ( of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 292.97 201.25 Td (3.69%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 321.32 201.25 Td ( senior notes \(the “Notes”\) due July 12, 2031. ) Tj ET Q q 0 0 0 rg BT 527.36 201.25 Td (The ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 189.25 Td (Notes are senior unsecured obligations of the Issuer) Tj ET Q q 0 0 0 rg BT 280.19 189.25 Td (, jointly and severally guaranteed by the Company’) Tj ET Q q 0 0 0 rg BT 504.03 189.25 Td (s indirect ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 177.25 Td (subsidiaries, Oaktree Capital I, L.P) Tj ET Q q 0 0 0 rg BT 202.17 177.25 Td (., Oaktree Capital II, L.P) Tj ET Q q 0 0 0 rg BT 307.60 177.25 Td (. and Oaktree ) Tj ET Q q 0 0 0 rg BT 370.41 177.25 Td (AIF Investments, L.P) Tj ET Q q 0 0 0 rg BT 461.94 177.25 Td (. \(together with the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 165.25 Td (Issuer) Tj ET Q q 0 0 0 rg BT 76.18 165.25 Td (, the “Obligors”\) pursuant to a note and guaranty agreement \(the “Note ) Tj ET Q q 0 0 0 rg BT 390.25 165.25 Td (Agreement”\). ) Tj ET Q q 0 0 0 rg BT 453.98 165.25 Td (The Company used the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 153.25 Td (proceeds from the sale of the Notes to simultaneously repay ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 318.53 153.25 Td ($100 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 371.89 153.25 Td ( of its ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 398.57 153.25 Td ($250 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 451.93 153.25 Td ( term loan due March ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 141.25 Td (31, 2021. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.50 120.25 Td (The Note ) Tj ET Q q 0 0 0 rg BT 129.86 120.25 Td (Agreement provides for certain af) Tj ET Q q 0 0 0 rg BT 277.53 120.25 Td (firmative and negative covenants, including financial covenants ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 108.25 Td (relating to the Obligors’) Tj ET Q q 0 0 0 rg BT 151.96 108.25 Td ( combined leverage ratio and minimum assets under management. In addition, the Note ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 96.25 Td (Agreement contains customary representations and warranties of the Obligors and customary events of default, in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 84.25 Td (certain cases, subject to cure periods. ) Tj ET Q q 0 0 0 rg BT 222.74 84.25 Td (The Issuer may prepay all, or from time to time any part of, the Notes at any ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 72.25 Td (time, subject to the Issuer) Tj ET Q q 0 0 0 rg BT 163.81 72.25 Td (’) Tj ET Q q 0 0 0 rg BT 165.85 72.25 Td (s payment of the applicable make-whole amount determined with respect to such ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 60.25 Td (principal amount prepaid. Upon the occurrence of a change of control, the Issuer will be required to make an of) Tj ET Q q 0 0 0 rg BT 541.82 60.25 Td (fer ) Tj ET Q endstream endobj 343 0 obj <> endobj 344 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (171) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 712.75 Td (to prepay the Notes together with the applicable make-whole amount determined with respect to such principal ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 700.75 Td (amount prepaid.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.50 679.75 Td (In March 2016, Oaktree Capital Management, L.P) Tj ET Q q 0 0 0 rg BT 305.88 679.75 Td (., Oaktree Capital II, L.P) Tj ET Q q 0 0 0 rg BT 411.31 679.75 Td (., Oaktree ) Tj ET Q q 0 0 0 rg BT 457.44 679.75 Td (AIF Investments, L.P) Tj ET Q q 0 0 0 rg BT 548.97 679.75 Td (., ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 667.75 Td (and Oaktree Capital I, L.P) Tj ET Q q 0 0 0 rg BT 163.27 667.75 Td (. \(collectively) Tj ET Q q 0 0 0 rg BT 219.77 667.75 Td (, the “Borrowers”\) entered into the Second ) Tj ET Q q 0 0 0 rg BT 408.76 667.75 Td (Amendment to Credit ) Tj ET Q q 0 0 0 rg BT 505.47 667.75 Td (Agreement ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 655.75 Td (\(the “Second ) Tj ET Q q 0 0 0 rg BT 108.98 655.75 Td (Amendment”\), which amended the credit agreement dated as of March 31, 2014 \(as amended through ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 643.75 Td (and including the Second ) Tj ET Q q 0 0 0 rg BT 164.04 643.75 Td (Amendment, the “Credit ) Tj ET Q q 0 0 0 rg BT 272.42 643.75 Td (Agreement”\). ) Tj ET Q q 0 0 0 rg BT 336.15 643.75 Td (The Credit ) Tj ET Q q 0 0 0 rg BT 385.06 643.75 Td (Agreement consists of a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 495.12 643.75 Td ($250 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 548.48 643.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 631.75 Td (fully-funded term loan \(the “T) Tj ET Q q 0 0 0 rg BT 176.78 631.75 Td (erm Loan”\), of which ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 270.71 631.75 Td ($100 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 324.07 631.75 Td ( was repaid in July 2016, and a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 464.71 631.75 Td ($500 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 518.08 631.75 Td ( revolving ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 619.75 Td (credit facility \(the “Revolver”\). ) Tj ET Q q 0 0 0 rg BT 184.91 619.75 Td (The Second ) Tj ET Q q 0 0 0 rg BT 241.06 619.75 Td (Amendment extended the maturity date of the Credit ) Tj ET Q q 0 0 0 rg BT 475.64 619.75 Td (Agreement from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 607.75 Td (March 31, 2019 to March 31, 2021, at which time the entire remaining principal balance of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 449.17 607.75 Td ($150 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 502.53 607.75 Td ( is due, and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 595.75 Td (provides the Borrowers with the option to extend the new maturity date by ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 378.01 595.75 Td (one year) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 416.93 595.75 Td ( if the lenders holding at least ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 583.75 Td (50%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 69.51 583.75 Td ( of the aggregate amount of the term loan and the revolving loan commitment thereunder on the date of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 571.75 Td (Borrowers’) Tj ET Q q 0 0 0 rg BT 96.92 571.75 Td ( extension request consent to such extension. Borrowings under the Credit ) Tj ET Q q 0 0 0 rg BT 432.11 571.75 Td (Agreement generally bear ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 559.75 Td (interest at a spread to either LIBOR or an alternative base rate. Based on the current credit ratings of Oaktree ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 547.75 Td (Capital Management, L.P) Tj ET Q q 0 0 0 rg BT 161.05 547.75 Td (., the interest rate on borrowings is LIBOR plus ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 371.15 547.75 Td (1.00%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 399.50 547.75 Td ( per annum and the commitment fee ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 535.75 Td (on the unused portions of the Revolver is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 234.06 535.75 Td (0.125%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 267.97 535.75 Td ( per annum. Utilizing an interest-rate swap, the ) Tj ET Q q 0 0 0 rg BT 480.12 535.75 Td (T) Tj ET Q q 0 0 0 rg BT 485.12 535.75 Td (erm Loan’) Tj ET Q q 0 0 0 rg BT 529.40 535.75 Td (s ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 523.75 Td (annual interest rate is fixed at ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 182.91 523.75 Td (2.22%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 211.26 523.75 Td ( through January 2017, based on such current credit ratings. ) Tj ET Q q 0 0 0 rg BT 484.02 523.75 Td (The Credit ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 511.75 Td (Agreement contains customary financial covenants and restrictions, including ones regarding a maximum leverage ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 499.75 Td (ratio of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 82.85 499.75 Td (3.0) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 96.75 499.75 Td (-to-1.0 and a minimum required level of assets under management \(as defined in the credit agreement\). ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 487.75 Td (The Second ) Tj ET Q q 0 0 0 rg BT 105.65 487.75 Td (Amendment increased the minimum level of assets under management to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 435.26 487.75 Td ($60 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 480.30 487.75 Td ( and made certain ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 475.75 Td (other amendments to the provisions of the Credit ) Tj ET Q q 0 0 0 rg BT 267.95 475.75 Td (Agreement. ) Tj ET Q q 0 0 0 rg BT 324.65 475.75 Td (As of December 31, 2016, the Company had ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 525.33 475.75 Td (no) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 536.45 475.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 463.75 Td (outstanding borrowings under its ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 196.81 463.75 Td ($500 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 250.17 463.75 Td ( revolving credit facility and was able to draw the full amount available ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 451.75 Td (without violating any financial maintenance covenants.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 426.25 Td (Credit Facilities of the Consolidated Funds ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 409.75 Td (Certain consolidated funds may maintain revolving credit facilities to fund investments between, or in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 397.75 Td (advance of, capital drawdowns. ) Tj ET Q q 0 0 0 rg BT 194.40 397.75 Td (These facilities generally \(a\) are collateralized by the unfunded capital ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 385.75 Td (commitments of the consolidated funds’) Tj ET Q q 0 0 0 rg BT 224.77 385.75 Td ( limited partners, \(b\) are subject to an annual commitment fee based on ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 373.75 Td (unfunded commitments, and \(c\) contain various af) Tj ET Q q 0 0 0 rg BT 271.10 373.75 Td (firmative and negative covenants and reporting obligations, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 361.75 Td (including restrictions on additional indebtedness, liens, margin stock, af) Tj ET Q q 0 0 0 rg BT 363.94 361.75 Td (filiate transactions, dividends and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 349.75 Td (distributions, release of capital commitments, and portfolio asset dispositions. ) Tj ET Q q 0 0 0 rg BT 396.34 349.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 446.74 349.75 Td (, certain consolidated ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 337.75 Td (funds may issue senior variable rate notes to fund investments on a longer term basis, generally up to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 501.97 337.75 Td (ten) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 515.87 337.75 Td ( years. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 325.75 Td (The obligations of the consolidated funds are nonrecourse to the Company) Tj ET Q q 0 0 0 rg BT 379.52 325.75 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 304.75 Td (The Company adopted the new consolidation guidance as of January 1, 2016, resulting in the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 292.75 Td (deconsolidation of substantially all of Oaktree’) Tj ET Q q 0 0 0 rg BT 252.21 292.75 Td (s investment funds as of that date. ) Tj ET Q q 0 0 0 rg BT 409.53 292.75 Td (As of December 31, 2016, the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 280.75 Td (consolidated funds had senior variable rate notes with an aggregate outstanding principal balance of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 495.91 280.75 Td ($489.0 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 557.62 280.75 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 268.75 Td (The fair value of the senior variable rate notes is a Level III valuation and approximated carrying value due to their ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 256.75 Td (recent issuance date as of December 31, 2016. Prior to adoption, as of December 31, 2015, the consolidated funds ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 244.75 Td (had credit facilities and senior variable rate notes with an aggregate outstanding principal balance of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 494.78 244.75 Td ($6.5 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 542.59 244.75 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 232.75 Td (The fair value of the revolving credit facilities is a Level III valuation and approximated carrying value due to their ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 220.75 Td (short-term nature. ) Tj ET Q q 0 0 0 rg BT 134.35 220.75 Td (The fair value of the credit facilities and senior variable rate notes is a Level III valuation and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 208.75 Td (aggregated ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 102.88 208.75 Td ($3.7 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 150.69 208.75 Td ( as of December 31, 2015, using prices obtained from pricing vendors. Financial instruments ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 196.75 Td (that are valued using quoted prices for the security or similar securities are generally classified as Level III because ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 184.75 Td (the quoted prices may be indicative in nature for securities that are in an inactive market, may be for similar ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 172.75 Td (securities, or may require adjustment for investment-specific factors or restrictions. ) Tj ET Q endstream endobj 345 0 obj <> endobj 346 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (172) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 712.75 Td (The consolidated funds had the following revolving credit facilities and term loans outstanding:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 174 675.25 m 226 675.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 226 675.25 m 239 675.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 239 675.25 m 292 675.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 174 663.25 m 226 663.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 239 663.25 m 292 663.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297 663.25 m 346 663.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 663.25 m 399 663.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 404 663.25 m 454 663.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458 663.25 m 507 663.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512 663.25 m 562 663.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 174 663.25 m 226 663.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 239 663.25 m 292 663.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297 663.25 m 346 663.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 663.25 m 399 663.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 404 663.25 m 454 663.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458 663.25 m 507 663.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512 663.25 m 562 663.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 174 618.25 m 226 618.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 239 618.25 m 292 618.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 174 588.25 m 226 588.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 174 574.25 m 226 574.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 174 572.25 m 226 572.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 239 588.25 m 292 588.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 239 574.25 m 292 574.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 239 572.25 m 292 572.25 l s BT /F2 6.50 Tf ET q 0 0 0 rg BT 191.80 685.67 Td (Outstanding Amount as of) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 211.35 679.17 Td (December 31,) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 309.80 673.67 Td (Facility) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 307.45 667.17 Td (Capacity) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 363.85 673.67 Td (LIBOR ) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 359.85 667.17 Td (Margin ) Tj ET Q BT /F2 6.50 Tf ET BT /F2 4.22 Tf ET q 0 0 0 rg BT 382.96 670.27 Td (\(1\)) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 415.85 667.17 Td (Maturity) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 462.10 673.67 Td (Commitment) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 468.45 667.17 Td (Fee Rate) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 524.75 667.17 Td (L/C Fee) Tj ET Q BT /F2 6.50 Tf ET 0 0 0 RG /GS0 gs 0.68 w 0 i [] 0 d 1 J 1 j 3 M 51.5 666.1376708984375 m 105.80126953125 666.1376708984375 l s q 0 0 0 rg BT 51.50 667.17 Td (Credit Agreement) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 192.25 667.17 Td (2016) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 257.75 667.17 Td (2015) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 51.50 652.48 Td (Credit facilities) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 106.00 652.93 Td (.............................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 176.50 652.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 214.75 652.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 241.50 652.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 253.20 652.48 Td (2,381,324) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 299.50 652.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 313.80 652.48 Td (450,000) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 362.65 652.48 Td (1.25%) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 410.70 652.48 Td (4/19/2019) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 475.55 652.48 Td (N/A) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 530.05 652.48 Td (N/A) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 51.50 637.48 Td (Revolving credit facilities) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 141.60 637.93 Td (.............) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 214.75 637.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 253.20 637.48 Td (2,718,394) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 314.55 637.48 Td (N/A) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 367.55 637.48 Td (N/A) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 422.05 637.48 Td (N/A) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 475.55 637.48 Td (N/A) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 530.05 637.48 Td (N/A) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 51.50 622.48 Td (Senior variable rate notes ) Tj ET Q BT /F3 8.00 Tf ET BT /F3 5.20 Tf ET q 0 0 0 rg BT 144.89 626.29 Td (\(2\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 151.24 622.48 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 152.70 622.93 Td (........) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 193.85 622.48 Td (488,997) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 253.20 622.48 Td (1,363,044) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 299.50 622.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 313.80 622.48 Td (489,000) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 360.70 622.48 Td (Various) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 408.45 622.48 Td (10/20/2027) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 475.55 622.48 Td (N/A) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 530.05 622.48 Td (N/A) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 51.50 607.48 Td (Total debt obligations) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 128.25 607.93 Td (...................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 193.85 607.48 Td (488,997) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 253.20 607.48 Td (6,462,762) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 51.50 592.48 Td (Less: Debt issuance costs) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 146.05 592.93 Td (...........) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 200.10 592.48 Td (\(5,041) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 222.80 592.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 261.65 592.53 Td (\(20,020) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 288.80 592.48 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 51.50 577.48 Td (Total debt obligations, net) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 143.80 577.93 Td (............) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 176.50 577.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 193.85 577.48 Td (483,956) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 241.50 577.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 253.20 577.48 Td (6,442,742) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 559.25 m 150 559.25 l s BT /F1 10.00 Tf ET BT /F3 8.00 Tf ET q 0 0 0 rg BT 49.50 547.15 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 72.00 547.15 Td (The facility bears interest at an annual rate of LIBOR plus the applicable margin.) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 49.50 537.55 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 72.00 537.55 Td (The weighted average interest rate was ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 214.30 537.55 Td (2.63%) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 236.98 537.55 Td ( as of December 31, 2016.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 502.45 Td (Debt Obligations of CLOs) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 485.95 Td (Debt obligations of CLOs represent amounts due to holders of debt securities issued by the CLOs, including ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 473.95 Td (term loans of CLOs that had not priced as of period end. ) Tj ET Q q 0 0 0 rg BT 303.91 473.95 Td (The table below sets forth the outstanding debt obligations ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 461.95 Td (of CLOs as of the date indicated.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 209 434.95000000000005 m 258 434.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258 434.95000000000005 m 263 434.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263 434.95000000000005 m 304 434.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 434.95000000000005 m 309 434.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309 434.95000000000005 m 350 434.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 434.95000000000005 m 417 434.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 434.95000000000005 m 422 434.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 422 434.95000000000005 m 471 434.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 434.95000000000005 m 476 434.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 434.95000000000005 m 517 434.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 517 434.95000000000005 m 522 434.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522 434.95000000000005 m 563 434.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 209 434.95000000000005 m 258 434.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 209 396.95000000000005 m 258 396.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263 396.95000000000005 m 304 396.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309 396.95000000000005 m 350 396.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 434.95000000000005 m 417 434.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 396.95000000000005 m 417 396.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 422 396.95000000000005 m 471 396.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 396.95000000000005 m 517 396.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522 396.95000000000005 m 563 396.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 209 396.95000000000005 m 258 396.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263 396.95000000000005 m 304 396.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309 396.95000000000005 m 350 396.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 396.95000000000005 m 417 396.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 422 396.95000000000005 m 471 396.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 396.95000000000005 m 517 396.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 522 396.95000000000005 m 563 396.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 209 199.95000000000005 m 258 199.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 199.95000000000005 m 417 199.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 209 199.95000000000005 m 258 199.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 199.95000000000005 m 417 199.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 422 199.95000000000005 m 471 199.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 422 185.95000000000005 m 471 185.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 422 183.95000000000005 m 471 183.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 209 169.95000000000005 m 258 169.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 209 155.95000000000005 m 258 155.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 209 153.95000000000005 m 258 153.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 169.95000000000005 m 417 169.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 155.95000000000005 m 417 155.95000000000005 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 153.95000000000005 m 417 153.95000000000005 l s BT /F2 6.50 Tf ET q 0 0 0 rg BT 240.65 438.87 Td (As of December 31, 2016) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 426.65 438.87 Td (As of December 31, 2015) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 219.60 407.37 Td (Carrying ) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 221.00 400.87 Td (V) Tj ET Q q 0 0 0 rg BT 224.98 400.87 Td (alue ) Tj ET Q BT /F2 6.50 Tf ET BT /F2 4.22 Tf ET q 0 0 0 rg BT 239.79 403.97 Td (\(1\)) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 268.40 420.37 Td (Weighted) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 270.25 413.87 Td (Average) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 271.25 407.37 Td (Interest) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 275.95 400.87 Td (Rate) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 314.40 426.87 Td (Weighted) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 316.25 420.37 Td (Average) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 312.35 413.87 Td (Remaining) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 316.35 407.37 Td (Maturity) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 318.30 400.87 Td (\(years\)) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 378.60 407.37 Td (Carrying) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 383.50 400.87 Td (Value) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 427.15 400.87 Td (Fair V) Tj ET Q q 0 0 0 rg BT 444.86 400.87 Td (alue ) Tj ET Q BT /F2 6.50 Tf ET BT /F2 4.22 Tf ET q 0 0 0 rg BT 459.67 403.97 Td (\(2\)) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 481.40 420.37 Td (Weighted) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 483.25 413.87 Td (Average) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 484.25 407.37 Td (Interest) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 488.95 400.87 Td (Rate) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 527.40 426.87 Td (Weighted) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 529.25 420.37 Td (Average) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 525.35 413.87 Td (Remaining) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 529.35 407.37 Td (Maturity) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 531.30 400.87 Td (\(years\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 386.18 Td (Senior secured notes ) Tj ET Q BT /F3 8.00 Tf ET BT /F3 5.20 Tf ET q 0 0 0 rg BT 130.32 389.99 Td (\(3\)) Tj ET Q BT /F3 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 1 1 rg BT 136.68 386.18 Td ( ) Tj ET Q BT /F3 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 138.80 386.63 Td (..............................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 211.50 386.18 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 225.85 386.18 Td (471,603) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 271.65 386.18 Td (2.90%) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 323.40 386.18 Td (8.2) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 370.50 386.18 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 384.80 386.18 Td (457,196) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 424.50 386.18 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 438.80 386.18 Td (447,460) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 484.65 386.18 Td (2.37%) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 536.40 386.18 Td (9.3) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 373.18 Td (Senior secured notes ) Tj ET Q BT /F3 8.00 Tf ET BT /F3 5.20 Tf ET q 0 0 0 rg BT 130.32 376.99 Td (\(3\)) Tj ET Q BT /F3 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 1 1 rg BT 136.68 373.18 Td ( ) Tj ET Q BT /F3 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 138.80 373.63 Td (..............................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 225.85 373.18 Td (470,298) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 271.65 373.18 Td (3.03%) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 323.40 373.18 Td (9.9) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 384.80 373.18 Td (454,423) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 438.80 373.18 Td (446,558) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 484.65 373.18 Td (2.52%) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 534.50 373.18 Td (11.0) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 360.18 Td (Senior secured notes ) Tj ET Q BT /F3 8.00 Tf ET BT /F3 5.20 Tf ET q 0 0 0 rg BT 130.32 363.99 Td (\(4\)) Tj ET Q BT /F3 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 1 1 rg BT 136.68 360.18 Td ( ) Tj ET Q BT /F3 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 138.80 360.63 Td (..............................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 230.25 360.18 Td (49,336) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 271.65 360.18 Td (3.31%) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 323.40 360.18 Td (2.0) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 389.30 360.23 Td (79,914) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 443.30 360.23 Td (78,632) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 484.65 360.18 Td (2.96%) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 536.40 360.18 Td (3.0) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 347.18 Td (Senior secured notes ) Tj ET Q BT /F3 8.00 Tf ET BT /F3 5.20 Tf ET q 0 0 0 rg BT 130.32 350.99 Td (\(5\)) Tj ET Q BT /F3 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 1 1 rg BT 136.68 347.18 Td ( ) Tj ET Q BT /F3 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 138.80 347.63 Td (..............................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 225.85 347.18 Td (357,706) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 271.65 347.18 Td (1.73%) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 321.20 347.18 Td (10.7) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 384.80 347.18 Td (363,709) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 438.80 347.18 Td (357,626) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 484.65 347.18 Td (2.26%) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 534.50 347.18 Td (11.7) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 334.18 Td (Senior secured notes ) Tj ET Q BT /F3 8.00 Tf ET BT /F3 5.20 Tf ET q 0 0 0 rg BT 130.32 337.99 Td (\(3\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 136.68 334.18 Td ( ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 138.80 334.63 Td (..............................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 225.85 334.18 Td (467,084) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 271.65 334.18 Td (2.96%) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 321.50 334.18 Td (11.0) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 384.80 334.18 Td (455,295) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 438.80 334.18 Td (448,933) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 484.65 334.18 Td (2.54%) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 534.20 334.18 Td (12.0) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 321.18 Td (Senior secured notes ) Tj ET Q BT /F3 8.00 Tf ET BT /F3 5.20 Tf ET q 0 0 0 rg BT 130.32 324.99 Td (\(5\)) Tj ET Q BT /F3 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 1 1 rg BT 136.68 321.18 Td ( ) Tj ET Q BT /F3 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 138.80 321.63 Td (..............................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 225.85 321.18 Td (360,234) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 271.65 321.18 Td (2.29%) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 321.50 321.18 Td (11.3) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 384.80 321.18 Td (361,142) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 438.80 321.18 Td (359,914) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 484.65 321.18 Td (2.29%) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 534.20 321.18 Td (12.3) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 308.18 Td (Senior secured notes ) Tj ET Q BT /F3 8.00 Tf ET BT /F3 5.20 Tf ET q 0 0 0 rg BT 130.32 311.99 Td (\(5\)) Tj ET Q BT /F3 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 1 1 rg BT 136.68 308.18 Td ( ) Tj ET Q BT /F3 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 138.80 308.63 Td (..............................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 225.85 308.18 Td (395,458) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 271.65 308.18 Td (2.28%) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 321.20 308.18 Td (12.4) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 405.75 308.18 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 459.75 308.18 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 492.00 308.18 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 538.00 308.18 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 295.18 Td (Senior secured notes ) Tj ET Q BT /F3 8.00 Tf ET BT /F3 5.20 Tf ET q 0 0 0 rg BT 130.32 298.99 Td (\(5\)) Tj ET Q BT /F3 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 1 1 rg BT 136.68 295.18 Td ( ) Tj ET Q BT /F3 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 138.80 295.63 Td (..............................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 225.85 295.18 Td (382,161) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 271.65 295.18 Td (1.99%) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 321.20 295.18 Td (13.2) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 405.75 295.18 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 459.75 295.18 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 492.00 295.18 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 538.00 295.18 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 282.18 Td (Subordinated note ) Tj ET Q BT /F3 8.00 Tf ET BT /F3 5.20 Tf ET q 0 0 0 rg BT 120.11 285.99 Td (\(6\)) Tj ET Q BT /F3 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 1 1 rg BT 126.46 282.18 Td ( ) Tj ET Q BT /F3 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 127.70 282.63 Td (...................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 230.25 282.18 Td (12,281) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 276.55 282.18 Td (N/A) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 323.40 282.18 Td (9.9) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 389.30 282.23 Td (25,500) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 443.30 282.23 Td (16,400) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 489.55 282.18 Td (N/A) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 534.50 282.18 Td (11.0) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 269.18 Td (Subordinated note ) Tj ET Q BT /F3 8.00 Tf ET BT /F3 5.20 Tf ET q 0 0 0 rg BT 120.11 272.99 Td (\(6\)) Tj ET Q BT /F3 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 1 1 rg BT 126.46 269.18 Td ( ) Tj ET Q BT /F3 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 127.70 269.63 Td (...................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 230.25 269.18 Td (17,871) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 276.55 269.18 Td (N/A) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 321.20 269.18 Td (10.7) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 389.30 269.23 Td (21,183) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 443.30 269.23 Td (15,876) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 489.55 269.18 Td (N/A) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 534.50 269.18 Td (11.7) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 256.18 Td (Subordinated note ) Tj ET Q BT /F3 8.00 Tf ET BT /F3 5.20 Tf ET q 0 0 0 rg BT 120.11 259.99 Td (\(6\)) Tj ET Q BT /F3 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 1 1 rg BT 126.46 256.18 Td ( ) Tj ET Q BT /F3 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 127.70 256.63 Td (...................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 230.25 256.18 Td (18,432) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 276.55 256.18 Td (N/A) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 321.50 256.18 Td (11.0) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 389.30 256.23 Td (25,500) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 443.30 256.23 Td (18,337) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 489.55 256.18 Td (N/A) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 534.20 256.18 Td (12.0) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 243.18 Td (Subordinated note ) Tj ET Q BT /F3 8.00 Tf ET BT /F3 5.20 Tf ET q 0 0 0 rg BT 120.11 246.99 Td (\(6\)) Tj ET Q BT /F3 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 1 1 rg BT 126.46 243.18 Td ( ) Tj ET Q BT /F3 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 127.70 243.63 Td (...................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 230.25 243.18 Td (13,422) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 276.55 243.18 Td (N/A) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 321.50 243.18 Td (11.3) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 389.30 243.23 Td (17,924) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 443.30 243.23 Td (11,928) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 489.55 243.18 Td (N/A) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 534.20 243.18 Td (12.3) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 230.18 Td (Subordinated note ) Tj ET Q BT /F3 8.00 Tf ET BT /F3 5.20 Tf ET q 0 0 0 rg BT 120.11 233.99 Td (\(6\)) Tj ET Q BT /F3 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 1 1 rg BT 126.46 230.18 Td ( ) Tj ET Q BT /F3 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 127.70 230.63 Td (...................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 230.25 230.18 Td (17,073) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 276.55 230.18 Td (N/A) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 321.20 230.18 Td (12.4) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 389.30 230.23 Td (12,036) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 443.30 230.23 Td (12,036) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 489.55 230.18 Td (N/A) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 536.40 230.18 Td (1.6) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 217.18 Td (Subordinated note ) Tj ET Q BT /F3 8.00 Tf ET BT /F3 5.20 Tf ET q 0 0 0 rg BT 120.11 220.99 Td (\(6\)) Tj ET Q BT /F3 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 1 1 rg BT 126.46 217.18 Td ( ) Tj ET Q BT /F3 8.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 127.70 217.63 Td (...................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 230.25 217.18 Td (21,251) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 276.55 217.18 Td (N/A) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 321.20 217.18 Td (13.2) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 405.75 217.18 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 459.75 217.18 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 492.00 217.18 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 538.00 217.18 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 204.18 Td (Term loan) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 89.90 204.63 Td (....................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 246.75 204.18 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 279.00 204.18 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 325.00 204.18 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 389.30 204.23 Td (81,238) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 443.30 204.23 Td (81,238) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 484.65 204.18 Td (1.20%) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 536.40 204.18 Td (1.6) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 189.18 Td (Total CLO debt obligations) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 147.70 189.63 Td (..........................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 219.20 189.18 Td (3,054,210) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 378.20 189.23 Td (2,355,060) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 424.50 189.18 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 432.20 189.23 Td (2,294,938) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 174.18 Td (Less: Debt issuance costs) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 147.70 174.63 Td (..........................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 246.75 174.18 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 386.65 174.18 Td (\(24,701) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 413.80 174.18 Td (\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 159.18 Td (Total CLO debt obligations, net) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 163.25 159.63 Td (...................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 211.50 159.18 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 219.20 159.18 Td (3,054,210) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 370.50 159.18 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 378.20 159.23 Td (2,330,359) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 140.95000000000005 m 150 140.95000000000005 l s BT /F1 10.00 Tf ET BT /F3 8.00 Tf ET q 0 0 0 rg BT 49.50 128.85 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 72.00 128.85 Td (The Company adopted the CLO measurement guidance on a modified retrospective approach as of January 1, 2016. Upon adoption, the ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 119.25 Td (Company elected the fair value option for the financial liabilities of the consolidated CLOs and determined that the fair value of the CLO ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 109.65 Td (assets was more observable than the fair value of the CLO liabilities. ) Tj ET Q q 0 0 0 rg BT 318.79 109.65 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 359.55 109.65 Td (, the fair value of CLO liabilities was measured as the fair ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 100.05 Td (value of CLO assets less the sum of \(a\) the fair value of any beneficial interests held by the Company and \(b\) the carrying value of any ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 90.45 Td (beneficial interests that represent compensation for services. Please see notes 2 and 6 for more information.) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 49.50 80.85 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 72.00 80.85 Td (The debt obligations of the CLOs are Level III valuations and were valued using prices obtained from pricing vendors or recent ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 71.25 Td (transactions. Financial instruments that are valued using quoted prices for the subject or similar securities are generally classified as ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 61.65 Td (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 ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 52.05 Td (may require adjustment for investment-specific factors or restrictions. Financial instruments that are valued based on recent transactions ) Tj ET Q endstream endobj 347 0 obj <> endobj 348 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (173) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 714.20 Td (are generally defined as securities purchased or sold within six months of the valuation date. ) Tj ET Q q 0 0 0 rg BT 403.15 714.20 Td (The fair value may also be based on a ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 704.60 Td (pending transaction expected to close after the valuation date. For certain recently issued debt obligations, the carrying value ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 695.00 Td (approximates fair value.) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 49.50 685.40 Td (\(3\) ) Tj ET Q q 0 0 0 rg BT 72.00 685.40 Td (The weighted average interest rate is based on LIBOR plus a margin.) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 49.50 675.80 Td (\(4\) ) Tj ET Q q 0 0 0 rg BT 72.00 675.80 Td (The interest rate was LIBOR plus a margin determined based on a formula as defined in the respective borrowing agreements, which ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 666.20 Td (incorporate dif) Tj ET Q q 0 0 0 rg BT 122.55 666.20 Td (ferent borrowing values based on the characteristics of collateral investments purchased. ) Tj ET Q q 0 0 0 rg BT 441.68 666.20 Td (The weighted average unused ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 656.60 Td (commitment fee rate ranged from ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 192.49 656.60 Td (0%) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 204.05 656.60 Td ( to ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 215.17 656.60 Td (2.0%) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 233.41 656.60 Td (. ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 49.50 647.00 Td (\(5\) ) Tj ET Q q 0 0 0 rg BT 72.00 647.00 Td (The weighted average interest rate is based on EURIBOR \(subject to a ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 325.46 647.00 Td (zero) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 341.03 647.00 Td ( floor\) plus a margin.) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 49.50 637.40 Td (\(6\) ) Tj ET Q q 0 0 0 rg BT 72.00 637.40 Td (The subordinated notes do not have a contractual interest rate; instead, they receive distributions from the excess cash flows generated by ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 72.00 627.80 Td (the CLO.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 597.80 Td (The debt obligations of CLOs are nonrecourse to the Company and are backed by the investments held by ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 585.80 Td (the respective CLO. ) Tj ET Q q 0 0 0 rg BT 142.88 585.80 Td (Assets of one CLO may not be used to satisfy the liabilities of another) Tj ET Q q 0 0 0 rg BT 450.27 585.80 Td (. ) Tj ET Q q 0 0 0 rg BT 458.05 585.80 Td (As of December 31, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 573.80 Td (2016 and 2015, the fair value of CLO assets was ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 268.52 573.80 Td ($3.4 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 316.34 573.80 Td ( and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 338.58 573.80 Td ($2.6 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 386.39 573.80 Td (, respectively) Tj ET Q q 0 0 0 rg BT 444.00 573.80 Td (, and consisted of cash, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 561.80 Td (corporate loans, corporate bonds and other securities. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 540.80 Td (As of December 31, 2016, future scheduled principal \(or par value\) payments with respect to the debt ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 528.80 Td (obligations of CLOs were as follows: ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 434.3 m 563 434.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 421.3 m 563 421.3 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 419.3 m 563 419.3 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 508.70 Td (2017) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 81.90 508.25 Td (.......................................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 505.50 508.70 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 550.50 508.70 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 494.70 Td (2018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 81.90 494.25 Td (.......................................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 531.95 494.70 Td (49,336) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 480.70 Td (2019) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 81.90 480.25 Td (.......................................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 550.50 480.70 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 466.70 Td (2020) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 81.90 466.25 Td (.......................................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 550.50 466.70 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 452.70 Td (2021) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 81.90 452.25 Td (.......................................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 550.50 452.70 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 438.70 Td (Thereafter) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 101.90 438.25 Td (...............................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 519.45 438.70 Td (3,002,952) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 424.70 Td (Total) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 81.90 424.25 Td (.......................................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 505.50 424.70 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 519.45 424.70 Td (3,052,288) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 389.60 Td (1) Tj ET Q q 0 0 0 rg BT 54.51 389.60 Td (1. NON-CONTROLLING REDEEMABLE INTERESTS IN CONSOLIDA) Tj ET Q q 0 0 0 rg BT 371.00 389.60 Td (TED FUNDS ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 373.10 Td (The following table sets forth a summary of changes in the non-controlling redeemable interests in the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 361.10 Td (consolidated funds. Dividends reinvested and in-kind contributions or distributions are non-cash in nature and have ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 349.10 Td (been presented on a gross basis in the table below) Tj ET Q q 0 0 0 rg BT 274.66 349.10 Td (. ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 323.6 m 418 323.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 323.6 m 426 323.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426 323.6 m 490 323.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490 323.6 m 498 323.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 323.6 m 562 323.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 311.6 m 418 311.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426 311.6 m 490 311.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 311.6 m 562 311.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 311.6 m 418 311.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426 311.6 m 490 311.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 311.6 m 562 311.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 182.60000000000002 m 418 182.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 169.60000000000002 m 418 169.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 167.60000000000002 m 418 167.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426 182.60000000000002 m 490 182.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426 169.60000000000002 m 490 169.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426 167.60000000000002 m 490 167.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 182.60000000000002 m 562 182.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 169.60000000000002 m 562 169.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 167.60000000000002 m 562 167.60000000000002 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 414.70 327.60 Td (Year Ended December 31,) Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 52.50 314.98 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 377.70 315.60 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 449.70 315.60 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 521.70 315.60 Td (2014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 299.00 Td (Beginning balance) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 132.95 298.55 Td (.......................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 356.50 299.00 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 369.45 299.00 Td (38,173,125) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 428.50 299.00 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 441.45 299.00 Td (41,681,155) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.50 299.00 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 513.45 299.00 Td (38,834,831) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 285.00 Td (Cumulative-effect adjustment from adoption of accounting guidance) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 340.45 284.55 Td (....) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 366.45 285.00 Td (\(37,969,042) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 414.50 285.00 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 477.50 285.00 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 549.50 285.00 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 271.00 Td (Contributions) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 127.95 270.55 Td (.........................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 381.95 271.00 Td (144,060) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 446.45 271.00 Td (5,796,081) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 518.45 271.00 Td (9,420,044) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 257.00 Td (Distributions) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 125.45 256.55 Td (..........................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 383.95 257.00 Td (\(56,557) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 414.50 257.00 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 443.45 257.00 Td (\(7,407,437) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 486.50 257.00 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 515.45 257.00 Td (\(7,962,362) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.50 257.00 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 243.00 Td (Net income \(loss\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 145.45 242.55 Td (..................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 386.95 243.00 Td (20,988) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 443.45 243.00 Td (\(1,812,539) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 486.50 243.00 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 518.45 243.00 Td (1,647,753) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 229.00 Td (Change in distributions payable) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 200.45 228.55 Td (............................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 388.95 229.00 Td (\(4,227) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 414.50 229.00 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 453.95 229.00 Td (387,989) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.95 229.00 Td (\(528,051) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.50 229.00 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 215.00 Td (Change in accrued or deferred contributions) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 250.45 214.55 Td (........................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 405.50 215.00 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 471.45 215.00 Td (526) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 527.95 215.00 Td (\(26,760) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.50 215.00 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 201.00 Td (Initial consolidation of a fund) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 187.95 200.55 Td (.................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 386.95 201.00 Td (34,095) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 477.50 201.00 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.95 201.00 Td (902,979) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 187.00 Td (Foreign-currency translation and other) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 227.95 186.55 Td (.................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 391.95 187.00 Td (1,605) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 450.95 187.00 Td (\(472,650) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 486.50 187.00 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.95 187.00 Td (\(607,279) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.50 187.00 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 173.00 Td (Ending balance) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 120.45 172.55 Td (............................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 356.50 173.00 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 381.95 173.00 Td (344,047) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 428.50 173.00 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 441.45 173.00 Td (38,173,125) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.50 173.00 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 513.45 173.00 Td (41,681,155) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 349 0 obj <> endobj 350 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (174) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 712.75 Td (12. UNITHOLDERS’) Tj ET Q q 0 0 0 rg BT 140.63 712.75 Td ( CAPIT) Tj ET Q q 0 0 0 rg BT 172.66 712.75 Td (AL) Tj ET Q q 0 0 0 rg BT 185.81 712.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 696.25 Td (Unitholders’) Tj ET Q q 0 0 0 rg BT 137.93 696.25 Td ( capital reflects the economic interests attributable to Class ) Tj ET Q q 0 0 0 rg BT 400.84 696.25 Td (A) Tj ET Q q 0 0 0 rg BT 406.96 696.25 Td ( unitholders, non-controlling ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 684.25 Td (interests in consolidated subsidiaries and non-controlling interests in consolidated funds. Non-controlling interests ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 672.25 Td (in consolidated subsidiaries represent the portion of unitholders’) Tj ET Q q 0 0 0 rg BT 331.52 672.25 Td ( capital attributable to the OCGH non-controlling ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 660.25 Td (interest, related parties and third parties. ) Tj ET Q q 0 0 0 rg BT 233.86 660.25 Td (The OCGH non-controlling interest is determined at the Oaktree ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 648.25 Td (Operating Group level based on the proportionate share of Oaktree Operating Group units held by the OCGH ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 636.25 Td (unitholders. Certain expenses, such as income tax and related administrative expenses of Oaktree Capital Group, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 624.25 Td (LLC and its Intermediate Holding Companies, are solely attributable to the Class ) Tj ET Q q 0 0 0 rg BT 406.92 624.25 Td (A) Tj ET Q q 0 0 0 rg BT 413.04 624.25 Td ( unitholders. ) Tj ET Q q 0 0 0 rg BT 472.52 624.25 Td (As of December 31, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 612.25 Td (2016 and 2015, respectively) Tj ET Q q 0 0 0 rg BT 173.85 612.25 Td (, OCGH units represented ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 292.23 612.25 Td (91,758,067) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 342.28 612.25 Td ( of the total ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 394.53 612.25 Td (154,790,343) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 450.14 612.25 Td ( Oaktree Operating ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 600.25 Td (Group units and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 123.44 600.25 Td (91,937,873) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 173.48 600.25 Td ( of the total ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 225.74 600.25 Td (153,907,733) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 281.35 600.25 Td ( Oaktree Operating Group units. Based on total allocable ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 588.25 Td (Oaktree Operating Group capital of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 207.92 588.25 Td ($1,754,882) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 257.97 588.25 Td ( and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 280.21 588.25 Td ($1,575,504) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 330.26 588.25 Td ( as of December 31, 2016 and 2015, respectively) Tj ET Q q 0 0 0 rg BT 547.42 588.25 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 576.25 Td (the OCGH non-controlling interest was ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 223.46 576.25 Td ($1,040,274) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 273.51 576.25 Td ( and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 295.75 576.25 Td ($941,141) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 337.46 576.25 Td (. ) Tj ET Q q 0 0 0 rg BT 345.25 576.25 Td (As of December 31, 2016 and 2015, non-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 564.25 Td (controlling interests attributable to certain related parties and third parties was ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 395.79 564.25 Td ($10,045) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 431.94 564.25 Td ( and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 454.18 564.25 Td ($102,789) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 495.89 564.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 553.50 564.25 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 543.25 Td (Distributions per Class ) Tj ET Q q 0 0 0 rg BT 187.76 543.25 Td (A) Tj ET Q q 0 0 0 rg BT 193.88 543.25 Td ( unit are set forth below:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 512.75 m 188.5 512.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 204.5 512.75 m 343.5 512.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359.5 512.75 m 498.5 512.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 512.75 m 561.5 512.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 453.75 m 561.5 453.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 440.75 m 561.5 440.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 438.75 m 561.5 438.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 369.75 m 561.5 369.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 356.75 m 561.5 356.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 354.75 m 561.5 354.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 285.75 m 561.5 285.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 272.75 m 561.5 272.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 270.75 m 561.5 270.75 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 95.35 516.75 Td (Payment Date) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 252.85 516.75 Td (Record Date) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 366.45 516.75 Td (Applicable to Quarterly Period Ended) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 517.85 523.75 Td (Distribution) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 524.05 516.75 Td (Per Unit) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 500.15 Td (November 14, 2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 207.00 500.15 Td (November 7, 2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 362.00 500.15 Td (September 30, 2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.00 500.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.45 500.15 Td (0.65) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 486.15 Td (August 12, 2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 207.00 486.15 Td (August 8, 2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 362.00 486.15 Td (June 30, 2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.45 486.15 Td (0.58) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 472.15 Td (May 13, 2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 207.00 472.15 Td (May 9, 2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 362.00 472.15 Td (March 31, 2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.45 472.15 Td (0.55) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 458.15 Td (February 26, 2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 207.00 458.15 Td (February 19, 2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 362.00 458.15 Td (December 31, 2015) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.45 458.15 Td (0.47) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 444.15 Td (Total 2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 102.40 443.70 Td (.............................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.00 444.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.45 444.15 Td (2.25) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 416.15 Td (November 12, 2015) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 207.00 416.15 Td (November 9, 2015) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 362.00 416.15 Td (September 30, 2015) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.00 416.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.45 416.15 Td (0.40) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 402.15 Td (August 13, 2015) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 207.00 402.15 Td (August 10, 2015) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 362.00 402.15 Td (June 30, 2015) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.45 402.15 Td (0.50) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 388.15 Td (May 14, 2015) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 207.00 388.15 Td (May 11, 2015) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 362.00 388.15 Td (March 31, 2015) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.45 388.15 Td (0.64) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 374.15 Td (February 25, 2015) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 207.00 374.15 Td (February 19, 2015) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 362.00 374.15 Td (December 31, 2014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.45 374.15 Td (0.56) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 360.15 Td (Total 2015) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 102.40 359.70 Td (.............................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.00 360.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.45 360.15 Td (2.10) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 332.15 Td (November 13, 2014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 207.00 332.15 Td (November 10, 2014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 362.00 332.15 Td (September 30, 2014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.00 332.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.45 332.15 Td (0.62) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 318.15 Td (August 14, 2014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 207.00 318.15 Td (August 11, 2014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 362.00 318.15 Td (June 30, 2014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.45 318.15 Td (0.55) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 304.15 Td (May 15, 2014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 207.00 304.15 Td (May 12, 2014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 362.00 304.15 Td (March 31, 2014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.45 304.15 Td (0.98) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 290.15 Td (February 27, 2014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 207.00 290.15 Td (February 24, 2014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 362.00 290.15 Td (December 31, 2013) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.45 290.15 Td (1.00) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 276.15 Td (Total 2014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 102.40 275.70 Td (.............................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.00 276.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.45 276.15 Td (3.15) Tj ET Q BT /F1 6.00 Tf ET q 0 0 0 rg BT 563.00 272.25 Td ( ) Tj ET Q endstream endobj 351 0 obj <> endobj 352 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (175) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 712.75 Td (The following table sets forth a summary of net income attributable to the OCGH non-controlling interest ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 700.75 Td (and to Class ) Tj ET Q q 0 0 0 rg BT 107.31 700.75 Td (A) Tj ET Q q 0 0 0 rg BT 113.43 700.75 Td ( unitholders:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 674.25 m 437 674.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437 674.25 m 445 674.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 674.25 m 500 674.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 674.25 m 508 674.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 674.25 m 563 674.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 674.25 m 437 674.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 660.25 m 437 660.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437 674.25 m 445 674.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 674.25 m 500 674.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 660.25 m 500 660.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 674.25 m 508 674.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 674.25 m 563 674.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 660.25 m 563 660.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 609.25 m 437 609.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 596.25 m 437 596.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 594.25 m 437 594.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 609.25 m 500 609.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 596.25 m 500 596.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 594.25 m 500 594.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 609.25 m 563 609.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 596.25 m 563 596.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 594.25 m 563 594.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 547.25 m 437 547.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 534.25 m 437 534.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 532.25 m 437 532.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 547.25 m 500 547.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 534.25 m 500 534.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 532.25 m 500 532.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 547.25 m 563 547.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 534.25 m 563 534.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 532.25 m 563 532.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 471.25 m 437 471.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 458.25 m 437 458.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 456.25 m 437 456.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 471.25 m 500 471.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 458.25 m 500 458.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 456.25 m 500 456.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 471.25 m 563 471.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 458.25 m 563 458.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 456.25 m 563 456.25 l s BT /F1 4.00 Tf ET q 0 0 0 rg BT 52.50 677.63 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 431.70 679.38 Td (Y) Tj ET Q q 0 0 0 rg BT 435.98 679.38 Td (ear Ended December 31,) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 517.30 679.38 Td ( ) Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 520.30 679.38 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 401.20 664.25 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 464.20 664.25 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 527.20 664.25 Td (2014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 650.65 Td (W) Tj ET Q q 0 0 0 rg BT 60.83 650.65 Td (eighted average Oaktree Operating Group units outstanding ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 61.50 641.65 Td (\(in thousands\):) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 384.50 641.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 447.50 641.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 510.50 641.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 82.50 627.65 Td (OCGH non-controlling interest) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 208.45 627.20 Td (....................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 405.95 627.65 Td (92,122) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.95 627.65 Td (104,427) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.95 627.65 Td (110,078) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 82.50 613.65 Td (Class A unitholders) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 163.45 613.20 Td (......................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 405.95 613.65 Td (62,565) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 468.95 613.65 Td (49,324) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 531.95 613.65 Td (42,582) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 82.50 599.65 Td (Total weighted average units outstanding) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 248.45 599.20 Td (....................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 400.95 599.65 Td (154,687) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.95 599.65 Td (153,751) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.95 599.65 Td (152,660) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 579.65 Td (Oaktree Operating Group net income:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 496.50 579.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 559.50 579.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 82.50 565.65 Td (Net income attributable to OCGH non-controlling interest) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 310.95 565.20 Td (...........................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 384.50 565.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 400.95 565.65 Td (343,781) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 447.50 565.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.95 565.65 Td (195,162) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 510.50 565.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.95 565.65 Td (386,398) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 82.50 551.65 Td (Net income attributable to Class A unitholders) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 268.45 551.20 Td (............................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 400.95 551.65 Td (233,765) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 468.95 551.65 Td (87,620) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.95 551.65 Td (146,446) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 82.50 537.65 Td (Oaktree Operating Group net income ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 233.08 541.94 Td (\(1\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 240.23 537.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 243.45 537.20 Td (......................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 384.50 537.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 400.95 537.65 Td (577,546) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 447.50 537.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.95 537.65 Td (282,782) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 510.50 537.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.95 537.65 Td (532,844) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 517.65 Td (Net income attributable to Oaktree Capital Group, LLC:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 496.50 517.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 559.50 517.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 82.50 503.65 Td (Oaktree Operating Group net income attributable to Class A unitholders) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 368.45 503.20 Td (....) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 384.50 503.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 400.95 503.65 Td (233,765) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 447.50 503.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 468.95 503.65 Td (87,620) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 510.50 503.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.95 503.65 Td (146,446) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 82.50 489.65 Td (Non-Operating Group expenses) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 213.45 489.20 Td (..................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 407.95 489.65 Td (\(1,176) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 433.50 489.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 470.95 489.65 Td (\(2,097) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 496.50 489.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 533.95 489.65 Td (\(1,645) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 559.50 489.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 82.50 475.65 Td (Income tax expense of Intermediate Holding Companies) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 308.45 475.20 Td (............................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 402.95 475.65 Td (\(37,884) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 433.50 475.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 465.95 475.65 Td (\(14,174) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 496.50 475.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 528.95 475.65 Td (\(18,518) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 559.50 475.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 82.50 461.65 Td (Net income attributable to Oaktree Capital Group, LLC) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 300.95 461.20 Td (...............................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 384.50 461.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 400.95 461.65 Td (194,705) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 447.50 461.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 468.95 461.65 Td (71,349) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 510.50 461.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.95 461.65 Td (126,283) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 442.25 m 150 442.25 l s BT /F1 10.00 Tf ET BT /F3 9.00 Tf ET q 0 0 0 rg BT 49.50 428.95 Td (\(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 60.50 428.95 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 428.95 Td (Oaktree Operating Group net income does not include amounts attributable to other non-controlling interests, which ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 418.15 Td (amounted to ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 124.54 418.15 Td ($4,696) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 152.06 418.15 Td (, ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 157.06 418.15 Td ($10,214) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 189.60 418.15 Td ( and ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 209.61 418.15 Td ($12,981) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 242.15 418.15 Td ( for the years ended December 31, 2016, 2015 and 2014, respectively) Tj ET Q q 0 0 0 rg BT 520.66 418.15 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.50 391.15 Td (The change in the Company’) Tj ET Q q 0 0 0 rg BT 214.18 391.15 Td (s ownership interest in the Oaktree Operating Group is set forth below: ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 364.65 m 436 364.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436 364.65 m 444 364.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 364.65 m 499 364.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499 364.65 m 507 364.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 364.65 m 562 364.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 364.65 m 436 364.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 350.65 m 436 350.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436 364.65 m 444 364.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 364.65 m 499 364.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 350.65 m 499 350.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499 364.65 m 507 364.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 364.65 m 562 364.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 350.65 m 562 350.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 318.65 m 436 318.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 296.65 m 436 296.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 294.65 m 436 294.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 318.65 m 499 318.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 296.65 m 499 296.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 294.65 m 499 294.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 318.65 m 562 318.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 296.65 m 562 296.65 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 294.65 m 562 294.65 l s BT /F1 4.00 Tf ET q 0 0 0 rg BT 51.50 368.03 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 428.20 368.65 Td (Year Ended December 31,) Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 51.50 354.03 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 400.20 354.65 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 463.20 354.65 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 526.20 354.65 Td (2014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 51.50 337.05 Td (Net income attributable to Oaktree Capital Group, LLC) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 272.45 336.60 Td (..........................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 383.50 337.05 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 399.95 337.05 Td (194,705) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 446.50 337.05 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.95 337.05 Td (71,349) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 509.50 337.05 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.95 337.05 Td (126,283) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 51.50 323.05 Td (Equity reallocation between controlling and non-controlling interests) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 322.45 322.60 Td (......................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 404.95 323.05 Td (14,388) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.95 323.05 Td (181,539) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.95 323.05 Td (51,525) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 51.50 309.05 Td (Change from net income attributable to Oaktree Capital Group, LLC and transfers) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 60.50 300.05 Td (from non-controlling interests) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 182.45 299.60 Td (..............................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 383.50 300.05 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 399.95 300.05 Td (209,093) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 446.50 300.05 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.95 300.05 Td (252,888) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 509.50 300.05 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.95 300.05 Td (177,808) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 272.15 Td (In November 2015, the Company’) Tj ET Q q 0 0 0 rg BT 234.85 272.15 Td (s board of directors approved the exchange of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 441.64 272.15 Td (12,998,725) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 491.69 272.15 Td ( outstanding ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 260.15 Td (vested and unvested OCGH units \(the “November 2015 Exchange”\) held by employees, former employees and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 248.15 Td (other existing OCGH unitholders into an equal number of Class ) Tj ET Q q 0 0 0 rg BT 331.32 248.15 Td (A) Tj ET Q q 0 0 0 rg BT 337.43 248.15 Td ( units, which continued to be owned by the same ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 236.15 Td (unitholders. ) Tj ET Q q 0 0 0 rg BT 106.58 236.15 Td (The exchange did not result in an increase to the tax receivable agreement liability) Tj ET Q q 0 0 0 rg BT 469.93 236.15 Td (. ) Tj ET Q q 0 0 0 rg BT 478.09 236.15 Td (The Class ) Tj ET Q q 0 0 0 rg BT 525.33 236.15 Td (A) Tj ET Q q 0 0 0 rg BT 531.45 236.15 Td ( units ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 224.15 Td (issued in the exchange are subject to a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 225.73 224.15 Td (three) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 248.52 224.15 Td (-year lock-up that is scheduled to be released in equal quarterly ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 212.15 Td (increments, generally ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 147.32 212.15 Td (two) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 162.88 212.15 Td ( business days after the Company’) Tj ET Q q 0 0 0 rg BT 316.12 212.15 Td (s quarterly earnings release, beginning with the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 200.15 Td (earnings release for the fourth quarter of 2015 that was announced on February 9, 2016. ) Tj ET Q q 0 0 0 rg BT 446.43 200.15 Td (As a result, approximately ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 188.15 Td (1.1 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 94.52 188.15 Td ( Class ) Tj ET Q q 0 0 0 rg BT 124.53 188.15 Td (A) Tj ET Q q 0 0 0 rg BT 130.65 188.15 Td ( units will become newly eligible for sale each quarter through the earnings release for the third ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 176.15 Td (quarter of 2018. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 155.15 Td (In March 2015, the Company issued and sold ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 289.51 155.15 Td (4,600,000) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 334.00 155.15 Td ( Class ) Tj ET Q q 0 0 0 rg BT 364.01 155.15 Td (A) Tj ET Q q 0 0 0 rg BT 370.12 155.15 Td ( units in a public of) Tj ET Q q 0 0 0 rg BT 452.77 155.15 Td (fering \(the “March 2015 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 143.15 Td (Of) Tj ET Q q 0 0 0 rg BT 59.88 143.15 Td (fering”\), resulting in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 148.25 143.15 Td ($237.8 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 209.95 143.15 Td ( in proceeds to the Company) Tj ET Q q 0 0 0 rg BT 337.06 143.15 Td (. ) Tj ET Q q 0 0 0 rg BT 345.21 143.15 Td (The Company did not retain any proceeds from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 131.15 Td (the sale of Class ) Tj ET Q q 0 0 0 rg BT 125.65 131.15 Td (A) Tj ET Q q 0 0 0 rg BT 131.77 131.15 Td ( units in the March 2015 Of) Tj ET Q q 0 0 0 rg BT 251.65 131.15 Td (fering. ) Tj ET Q q 0 0 0 rg BT 284.82 131.15 Td (The proceeds from the March 2015 Of) Tj ET Q q 0 0 0 rg BT 454.17 131.15 Td (fering were used to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 119.15 Td (acquire interests in the Company’) Tj ET Q q 0 0 0 rg BT 197.73 119.15 Td (s business from certain of the Company’) Tj ET Q q 0 0 0 rg BT 375.96 119.15 Td (s directors, employees and other ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 107.15 Td (investors, including certain senior executives and other members of the Company’) Tj ET Q q 0 0 0 rg BT 412.28 107.15 Td (s senior management.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.50 86.15 Td (In March 2014, the Company issued and sold ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 290.51 86.15 Td (5,000,000) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 335.00 86.15 Td ( Class ) Tj ET Q q 0 0 0 rg BT 365.01 86.15 Td (A) Tj ET Q q 0 0 0 rg BT 371.12 86.15 Td ( units in a public of) Tj ET Q q 0 0 0 rg BT 453.77 86.15 Td (fering \(the “March 2014 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 74.15 Td (Of) Tj ET Q q 0 0 0 rg BT 59.88 74.15 Td (fering”\), resulting in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 148.25 74.15 Td ($296.7 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 209.95 74.15 Td ( in proceeds to the Company) Tj ET Q q 0 0 0 rg BT 337.06 74.15 Td (. ) Tj ET Q q 0 0 0 rg BT 345.21 74.15 Td (The Company did not retain any proceeds from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 62.15 Td (the sale of Class ) Tj ET Q q 0 0 0 rg BT 125.65 62.15 Td (A) Tj ET Q q 0 0 0 rg BT 131.77 62.15 Td ( units in the March 2014 Of) Tj ET Q q 0 0 0 rg BT 251.65 62.15 Td (fering. ) Tj ET Q q 0 0 0 rg BT 284.82 62.15 Td (The proceeds from the March 2014 Of) Tj ET Q q 0 0 0 rg BT 454.17 62.15 Td (fering were used to ) Tj ET Q endstream endobj 353 0 obj <> endobj 354 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (176) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 712.75 Td (acquire interests in the Company’) Tj ET Q q 0 0 0 rg BT 197.73 712.75 Td (s business from certain of the Company’) Tj ET Q q 0 0 0 rg BT 375.96 712.75 Td (s directors, employees and other ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 700.75 Td (investors, including certain senior executives and other members of the Company’) Tj ET Q q 0 0 0 rg BT 412.28 700.75 Td (s senior management.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 679.75 Td (Please see notes 13, 14 and 15 for additional information regarding transactions that impacted unitholders’) Tj ET Q q 0 0 0 rg BT 556.54 679.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 667.75 Td (capital. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 640.75 Td (13. EARNINGS PER UNIT ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 624.25 Td (The computation of net income per Class ) Tj ET Q q 0 0 0 rg BT 270.04 624.25 Td (A) Tj ET Q q 0 0 0 rg BT 276.16 624.25 Td ( unit is set forth below: ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 378.43 624.25 Td ( ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 599.75 m 438 599.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 599.75 m 446 599.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 599.75 m 500 599.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 599.75 m 508 599.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 599.75 m 562 599.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 599.75 m 438 599.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 585.75 m 438 585.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 599.75 m 500 599.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 585.75 m 500 585.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 599.75 m 562 599.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 585.75 m 562 585.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 550.75 m 438 550.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 548.75 m 438 548.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 550.75 m 500 550.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 548.75 m 500 548.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 550.75 m 562 550.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 548.75 m 562 548.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 534.75 m 438 534.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 532.75 m 438 532.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 534.75 m 500 534.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 532.75 m 500 532.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 534.75 m 562 534.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 532.75 m 562 532.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 518.75 m 438 518.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 516.75 m 438 516.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 518.75 m 500 518.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 516.75 m 500 516.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 518.75 m 562 518.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 516.75 m 562 516.75 l s BT /F1 4.00 Tf ET q 0 0 0 rg BT 51.50 603.13 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 429.70 603.75 Td (Year Ended December 31,) Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 51.50 589.13 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 402.70 589.75 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 464.70 589.75 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 526.70 589.75 Td (2014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 51.50 570.15 Td (Net income per Class A unit \(basic and diluted\):) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 405.95 578.15 Td (\(in thousands, except per unit amounts\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 69.50 554.15 Td (Net income attributable to Oaktree Capital Group, LLC) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 287.95 553.70 Td (.....................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 386.50 554.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 401.95 554.15 Td (194,705) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 448.50 554.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 468.95 554.15 Td (71,349) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 510.50 554.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.95 554.15 Td (126,283) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 69.50 538.15 Td (Weighted average number of Class A units outstanding \(basic and diluted\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 365.45 537.70 Td (......) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 406.95 538.15 Td (62,565) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 468.95 538.15 Td (49,324) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.95 538.15 Td (42,582) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 69.50 522.15 Td (Basic and diluted net income per Class A unit) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 252.95 521.70 Td (...................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 386.50 522.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 416.95 522.15 Td (3.11) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 448.50 522.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 478.95 522.15 Td (1.45) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 510.50 522.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.95 522.15 Td (2.97) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 494.25 Td (V) Tj ET Q q 0 0 0 rg BT 91.62 494.25 Td (ested OCGH units may be exchanged on a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 285.06 494.25 Td (one) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 301.75 494.25 Td (-for-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 320.08 494.25 Td (one) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 336.76 494.25 Td ( basis into Class ) Tj ET Q q 0 0 0 rg BT 411.79 494.25 Td (A) Tj ET Q q 0 0 0 rg BT 417.91 494.25 Td ( units, subject to certain ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 482.25 Td (restrictions. ) Tj ET Q q 0 0 0 rg BT 105.63 482.25 Td (As of December 31, 2016, there were ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 274.61 482.25 Td (91,758,067) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 324.66 482.25 Td ( OCGH units outstanding, which are vested or will ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 470.25 Td (vest through March 1, 2026, that ultimately may be exchanged into ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 347.45 470.25 Td (91,758,067) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 397.50 470.25 Td ( Class ) Tj ET Q q 0 0 0 rg BT 427.51 470.25 Td (A) Tj ET Q q 0 0 0 rg BT 433.63 470.25 Td ( units. ) Tj ET Q q 0 0 0 rg BT 465.68 470.25 Td (The exchange of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 458.25 Td (these units would proportionally increase the Company’) Tj ET Q q 0 0 0 rg BT 294.46 458.25 Td (s interest in the Oaktree Operating Group. However) Tj ET Q q 0 0 0 rg BT 525.13 458.25 Td (, as the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 446.25 Td (restrictions set forth in the exchange agreement were in place at the end of each respective reporting period, those ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 434.25 Td (units were not included in the computation of diluted earnings per unit for the years ended December 31, 2016, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 422.25 Td (2015 and 2014.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 401.25 Td (In connection with the Highstar acquisition, the Company has a contingent consideration liability that is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 389.25 Td (payable in a combination of cash and fully-vested OCGH units. ) Tj ET Q q 0 0 0 rg BT 332.80 389.25 Td (The amount of contingent consideration, if any) Tj ET Q q 0 0 0 rg BT 537.19 389.25 Td (, is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 377.25 Td (based on the achievement of certain performance targets over a period of up to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 403.04 377.25 Td (seven) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 429.73 377.25 Td ( years from the acquisition ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 365.25 Td (date. ) Tj ET Q q 0 0 0 rg BT 76.75 365.25 Td (As of December 31, 2016, 2015 and 2014, no OCGH units were considered issuable under the terms of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 353.25 Td (contingent consideration arrangement; consequently) Tj ET Q q 0 0 0 rg BT 281.13 353.25 Td (, no contingently issuable units were included in the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 341.25 Td (computation of diluted earnings per unit for each of those years. Please see note 16 for more information.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 315.75 Td (14. EQUITY) Tj ET Q q 0 0 0 rg BT 102.85 315.75 Td (-BASED COMPENSA) Tj ET Q q 0 0 0 rg BT 201.01 315.75 Td (TION ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 294.75 Td (In December 201) Tj ET Q q 0 0 0 rg BT 161.47 294.75 Td (1, the Company adopted the 201) Tj ET Q q 0 0 0 rg BT 306.39 294.75 Td (1 Oaktree Capital Group, LLC Equity Incentive Plan \(the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 282.75 Td (“201) Tj ET Q q 0 0 0 rg BT 68.77 282.75 Td (1 Plan”\). ) Tj ET Q q 0 0 0 rg BT 111.94 282.75 Td (The 201) Tj ET Q q 0 0 0 rg BT 147.89 282.75 Td (1 Plan provides for the granting of options, unit appreciation rights, restricted unit awards, unit ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 270.75 Td (bonus awards, phantom equity awards or other unit-based awards to senior executives, directors, of) Tj ET Q q 0 0 0 rg BT 491.22 270.75 Td (ficers, certain ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 258.75 Td (employees, consultants, and advisors of the Company and its af) Tj ET Q q 0 0 0 rg BT 332.81 258.75 Td (filiates. ) Tj ET Q q 0 0 0 rg BT 368.94 258.75 Td (As of December 31, 2016, a maximum of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 246.75 Td (23,086,160) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 99.55 246.75 Td ( units have been authorized to be awarded pursuant to the 201) Tj ET Q q 0 0 0 rg BT 376.79 246.75 Td (1 Plan, and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 430.16 246.75 Td (9,363,365) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 474.65 246.75 Td ( units \(including ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 234.75 Td (2,000,000) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 93.99 234.75 Td ( EVUs and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 144.57 234.75 Td (36,387) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 175.15 234.75 Td ( phantom units\) have been awarded under the 201) Tj ET Q q 0 0 0 rg BT 398.46 234.75 Td (1 Plan. ) Tj ET Q q 0 0 0 rg BT 434.60 234.75 Td (A) Tj ET Q q 0 0 0 rg BT 440.72 234.75 Td ( total of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 476.29 234.75 Td (4,954,976) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 520.78 234.75 Td ( OCGH ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 222.75 Td (units were awarded and issued pursuant to the 2007 Oaktree Capital Group Equity Incentive Plan, which was ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 210.75 Td (discontinued for future issuances on March 28, 2012. Each Class ) Tj ET Q q 0 0 0 rg BT 343.00 210.75 Td (A) Tj ET Q q 0 0 0 rg BT 349.12 210.75 Td ( and OCGH unit, when issued, represents an ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 198.75 Td (indirect interest in one Oaktree Operating Group unit. ) Tj ET Q q 0 0 0 rg BT 290.00 198.75 Td (T) Tj ET Q q 0 0 0 rg BT 295.00 198.75 Td (otal vested and unvested Class ) Tj ET Q q 0 0 0 rg BT 436.20 198.75 Td (A) Tj ET Q q 0 0 0 rg BT 442.32 198.75 Td ( and OCGH units issued ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 186.75 Td (and outstanding were ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 147.90 186.75 Td (154,790,343) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 203.51 186.75 Td ( as of December 31, 2016.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 165.75 Td (Pursuant to the terms of the OCGH limited partnership agreement, the general partner of OCGH may elect ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 153.75 Td (at its discretion to declare an open period during which an OCGH unitholder may exchange its OCGH units for) Tj ET Q q 0 0 0 rg BT 535.86 153.75 Td (, at ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 141.75 Td (the option of the Company’) Tj ET Q q 0 0 0 rg BT 168.84 141.75 Td (s board of directors, Class ) Tj ET Q q 0 0 0 rg BT 287.22 141.75 Td (A) Tj ET Q q 0 0 0 rg BT 293.34 141.75 Td ( units, an equivalent amount of cash based on then-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 129.75 Td (prevailing market prices, other consideration of equal value, or any combination of the foregoing under the terms of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 117.75 Td (the Company’) Tj ET Q q 0 0 0 rg BT 111.02 117.75 Td (s exchange agreement, as amended. ) Tj ET Q q 0 0 0 rg BT 281.50 117.75 Td (The general partner determines the number of units eligible for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 105.75 Td (exchange within a given open period and, if the OCGH unitholders request to exchange a number of units in excess ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 93.75 Td (of the amount eligible for exchange, the general partner determines which units to exchange taking into account ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 81.75 Td (appropriate factors. In addition, the general partner of OCGH may at its sole discretion cause a mandatory sale or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 69.75 Td (exchange of OCGH units owned by any OCGH unitholder) Tj ET Q q 0 0 0 rg BT 304.08 69.75 Td (. Upon approval by the Company’) Tj ET Q q 0 0 0 rg BT 455.10 69.75 Td (s board of directors, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 57.75 Td (OCGH units selected for exchange in accordance with the foregoing will be exchanged, at the option of the board of ) Tj ET Q endstream endobj 355 0 obj <> endobj 356 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (177) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 712.75 Td (directors, into Class ) Tj ET Q q 0 0 0 rg BT 139.53 712.75 Td (A) Tj ET Q q 0 0 0 rg BT 145.65 712.75 Td ( units, an equivalent amount of cash based on then-prevailing market prices, other ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 700.75 Td (consideration of equal value, or any combination of the foregoing pursuant to the terms of the exchange agreement. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 679.75 Td (The exchange agreement generally provides that \(a\) such OCGH units will be acquired by the Intermediate ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 667.75 Td (Holding Companies in exchange for) Tj ET Q q 0 0 0 rg BT 207.38 667.75 Td (, at the option of the Company’) Tj ET Q q 0 0 0 rg BT 343.39 667.75 Td (s board of directors, Class ) Tj ET Q q 0 0 0 rg BT 461.78 667.75 Td (A) Tj ET Q q 0 0 0 rg BT 467.89 667.75 Td ( units, an equivalent ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 655.75 Td (amount of cash based on then-prevailing market prices, other consideration of equal value, or any combination of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 643.75 Td (the foregoing, \(b\) the OCGH units acquired by the Intermediate Holding Companies may then be redeemed by ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 631.75 Td (OCGH in exchange for Oaktree Operating Group units, \(c\) the Intermediate Holding Companies may exchange ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 619.75 Td (Oaktree Operating Group units with each other such that, immediately after such exchange, each Intermediate ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 607.75 Td (Holding Company holds Oaktree Operating Group units only in the Oaktree Operating Group entity for which such ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 595.75 Td (Intermediate Holding Company serves as the general partner and \(d\) the Company will cancel a corresponding ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 583.75 Td (number of Class B units. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 562.75 Td (Class ) Tj ET Q q 0 0 0 rg BT 78.59 562.75 Td (A) Tj ET Q q 0 0 0 rg BT 85.44 562.75 Td ( and OCGH Unit ) Tj ET Q q 0 0 0 rg BT 163.40 562.75 Td (A) Tj ET Q q 0 0 0 rg BT 170.44 562.75 Td (wards) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 541.75 Td (In 2016, the Company granted ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 223.37 541.75 Td (830,949) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 259.52 541.75 Td ( Class ) Tj ET Q q 0 0 0 rg BT 289.53 541.75 Td (A) Tj ET Q q 0 0 0 rg BT 295.65 541.75 Td ( units and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 341.79 541.75 Td (879,667) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 377.94 541.75 Td ( restricted OCGH units to its employees ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 529.75 Td (and directors, subject to annual vesting over a weighted average period of approximately ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 444.73 529.75 Td (5.0) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 458.64 529.75 Td ( years. ) Tj ET Q q 0 0 0 rg BT 493.65 529.75 Td (As of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 517.75 Td (December 31, 2016, the Company expected to recognize compensation expense on its unvested Class ) Tj ET Q q 0 0 0 rg BT 508.67 517.75 Td (A) Tj ET Q q 0 0 0 rg BT 514.78 517.75 Td ( and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 505.75 Td (OCGH unit awards of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 147.31 505.75 Td ($141.5 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 209.02 505.75 Td ( over a weighted average period of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 365.78 505.75 Td (4.1 years) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 406.92 505.75 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 484.75 Td (The Company utilizes a contemporaneous valuation report in determining fair value at the date of grant for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 472.75 Td (OCGH unit awards. Each valuation report is based on the market price of Oaktree’) Tj ET Q q 0 0 0 rg BT 416.16 472.75 Td (s Class ) Tj ET Q q 0 0 0 rg BT 451.17 472.75 Td (A) Tj ET Q q 0 0 0 rg BT 457.29 472.75 Td ( units. ) Tj ET Q q 0 0 0 rg BT 488.97 472.75 Td (A) Tj ET Q q 0 0 0 rg BT 495.09 472.75 Td ( discount is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 460.75 Td (then applied to the Class ) Tj ET Q q 0 0 0 rg BT 161.80 460.75 Td (A) Tj ET Q q 0 0 0 rg BT 167.92 460.75 Td ( unit market price to reflect the lack of marketability for the OCGH units. ) Tj ET Q q 0 0 0 rg BT 488.97 460.75 Td (The ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 448.75 Td (determination of an appropriate discount for lack of marketability is based on a review of discounts on the sale of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 436.75 Td (restricted shares of publicly traded companies and multi-period put-based quantitative methods. Factors that ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 424.75 Td (influence the size of the discount for lack of marketability include \(a\) the estimated time it would take for an OCGH ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 412.75 Td (unitholder to exchange units into Class ) Tj ET Q q 0 0 0 rg BT 223.50 412.75 Td (A) Tj ET Q q 0 0 0 rg BT 229.62 412.75 Td ( units, \(b\) the volatility of the Company’) Tj ET Q q 0 0 0 rg BT 401.74 412.75 Td (s business and \(c\) thin trading of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 400.75 Td (the Class ) Tj ET Q q 0 0 0 rg BT 93.41 400.75 Td (A) Tj ET Q q 0 0 0 rg BT 99.53 400.75 Td ( units. Each of these factors is subject to significant judgment.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 379.75 Td (The estimated time-to-liquidity assumption was ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 296.14 379.75 Td (5.5) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 310.04 379.75 Td ( years in the first quarter of 2014 and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 476.25 379.75 Td (5.6) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 490.15 379.75 Td ( years in the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 367.75 Td (most recent valuation in 2016. ) Tj ET Q q 0 0 0 rg BT 188.29 367.75 Td (The estimated time to liquidity is influenced primarily by the need for \(a\) the general ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 355.75 Td (partner of OCGH to elect in its discretion to declare an open period during which an OCGH unitholder may ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 343.75 Td (exchange his or her unrestricted vested OCGH units for) Tj ET Q q 0 0 0 rg BT 295.17 343.75 Td (, at the option of the Company’) Tj ET Q q 0 0 0 rg BT 431.19 343.75 Td (s board of directors, Class ) Tj ET Q q 0 0 0 rg BT 549.57 343.75 Td (A) Tj ET Q q 0 0 0 rg BT 555.69 343.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 331.75 Td (units on a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.64 331.75 Td (one) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.33 331.75 Td (-for-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 130.66 331.75 Td (one) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 147.34 331.75 Td ( basis, an equivalent amount of cash based on then-prevailing market prices, other ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 319.75 Td (consideration of equal value or any combination of the foregoing, and \(b\) the approval of the Company’) Tj ET Q q 0 0 0 rg BT 504.05 319.75 Td (s board of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 307.75 Td (directors to exchange such OCGH units into any of the foregoing. Board approval is based primarily on the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 295.75 Td (objective of maintaining an orderly market for Oaktree’) Tj ET Q q 0 0 0 rg BT 289.43 295.75 Td (s units, but may take into account any other factors that the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 283.75 Td (board may deem appropriate in its sole discretion. V) Tj ET Q q 0 0 0 rg BT 282.40 283.75 Td (olatility is estimated from historical and implied volatilities of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 271.75 Td (Company and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 114.54 271.75 Td (six) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 126.76 271.75 Td ( comparable public alternative asset management companies. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 250.75 Td (In valuing employee OCGH unit grants, the discount percentage applied to the then-prevailing Class ) Tj ET Q q 0 0 0 rg BT 530.21 250.75 Td (A) Tj ET Q q 0 0 0 rg BT 536.33 250.75 Td ( unit ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 238.75 Td (trading price was ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 127.87 238.75 Td (25%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 147.88 238.75 Td ( from January 1, 2014 to ) Tj ET Q q 0 0 0 rg BT 258.50 238.75 Td (April 30, 2014, and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 345.23 238.75 Td (20%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 365.25 238.75 Td ( from May 1, 2014 to December 31, 2016. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 226.75 Td (The decline in the discount percentage was primarily attributable to lower volatility) Tj ET Q q 0 0 0 rg BT 410.05 226.75 Td (. ) Tj ET Q q 0 0 0 rg BT 418.21 226.75 Td (The calculation of compensation ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 214.75 Td (expense assumes a forfeiture rate of up to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 239.61 214.75 Td (3.0%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 262.40 214.75 Td ( annually) Tj ET Q q 0 0 0 rg BT 301.69 214.75 Td (, based on expected employee turnover) Tj ET Q q 0 0 0 rg BT 476.80 214.75 Td (. Compensation ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 202.75 Td (expense is revised annually or more frequently) Tj ET Q q 0 0 0 rg BT 255.54 202.75 Td (, as necessary) Tj ET Q q 0 0 0 rg BT 319.27 202.75 Td (, to adjust for actual forfeitures and to reflect expense ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 190.75 Td (only for those units that ultimately vest. In each period presented, forfeitures were not materially dif) Tj ET Q q 0 0 0 rg BT 487.87 190.75 Td (ferent from the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 178.75 Td (assumed rate.) Tj ET Q endstream endobj 357 0 obj <> endobj 358 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (178) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 712.75 Td (A) Tj ET Q q 0 0 0 rg BT 91.62 712.75 Td ( summary of the status of the Company’) Tj ET Q q 0 0 0 rg BT 268.18 712.75 Td (s unvested Class ) Tj ET Q q 0 0 0 rg BT 346.55 712.75 Td (A) Tj ET Q q 0 0 0 rg BT 352.67 712.75 Td ( and OCGH unit awards and a summary of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 700.75 Td (changes for the periods presented are set forth below \(actual dollars per unit\): ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312 678.25 m 374 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374 678.25 m 382 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 678.25 m 433 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441 678.25 m 503 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 678.25 m 511 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 678.25 m 562 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312 678.25 m 374 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312 639.25 m 374 639.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374 678.25 m 382 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 678.25 m 433 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 639.25 m 433 639.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441 678.25 m 503 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441 639.25 m 503 639.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 678.25 m 511 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 678.25 m 562 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 639.25 m 562 639.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312 583.25 m 374 583.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441 583.25 m 503 583.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312 513.25 m 374 513.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441 513.25 m 503 513.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312 457.25 m 374 457.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312 444.25 m 374 444.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312 442.25 m 374 442.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441 457.25 m 503 457.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441 444.25 m 503 444.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441 442.25 m 503 442.25 l s BT /F3 4.00 Tf ET q 0 0 0 rg BT 51.50 681.64 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 349.65 682.25 Td (Class A Units) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 480.75 682.25 Td (OCGH Units) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 315.25 643.25 Td (Number of Units) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 391.30 664.25 Td (Weighted) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 393.30 657.25 Td (Average) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 389.10 650.25 Td (Grant Date) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 390.45 643.25 Td (Fair Value) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 444.25 643.25 Td (Number of Units) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 520.30 664.25 Td (Weighted) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 522.30 657.25 Td (Average) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 518.10 650.25 Td (Grant Date) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 519.45 643.25 Td (Fair Value) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 51.50 629.65 Td (Balance, December 31, 2013) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 170.95 629.20 Td (.......................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 342.95 629.65 Td (16,582) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 384.50 629.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 406.95 629.65 Td (45.34) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 459.45 629.65 Td (4,465,722) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 513.50 629.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.95 629.65 Td (30.30) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 69.50 615.65 Td (Granted) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 108.45 615.20 Td (................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 347.95 615.65 Td (7,164) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 406.95 615.65 Td (58.88) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 459.45 615.65 Td (1,770,418) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.95 615.65 Td (43.98) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 69.50 601.65 Td (Vested) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 103.45 601.20 Td (..................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 344.95 601.65 Td (\(4,697) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 370.50 601.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 406.95 601.65 Td (44.54) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 456.45 601.65 Td (\(1,109,170) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 499.50 601.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.95 601.65 Td (24.90) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 69.50 587.65 Td (Forfeited) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 110.95 587.20 Td (...............................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 361.50 587.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.50 587.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 468.95 587.65 Td (\(55,978) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 499.50 587.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.95 587.65 Td (34.42) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 51.50 573.65 Td (Balance, December 31, 2014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 170.95 573.20 Td (.......................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 342.95 573.65 Td (19,049) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 406.95 573.65 Td (50.63) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 459.45 573.65 Td (5,070,992) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.95 573.65 Td (36.21) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 69.50 559.65 Td (Granted) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 108.45 559.20 Td (................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 347.95 559.65 Td (7,940) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 406.95 559.65 Td (55.75) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 459.45 559.65 Td (1,175,213) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.95 559.65 Td (44.04) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 69.50 545.65 Td (Vested) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 103.45 545.20 Td (..................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 339.95 545.65 Td (\(50,931) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 370.50 545.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 406.95 545.65 Td (40.11) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 456.45 545.65 Td (\(1,421,597) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 499.50 545.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.95 545.65 Td (32.38) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 69.50 531.65 Td (Exchanged ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 117.04 535.94 Td (\(1\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 124.18 531.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 128.45 531.20 Td (........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 330.45 531.65 Td (2,418,282) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 406.95 531.65 Td (38.10) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 456.45 531.65 Td (\(2,418,282) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 499.50 531.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.95 531.65 Td (38.10) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 69.50 517.65 Td (Forfeited) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 110.95 517.20 Td (...............................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 339.95 517.65 Td (\(18,000) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 370.50 517.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 406.95 517.65 Td (42.29) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.95 517.65 Td (\(140,359) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 499.50 517.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.95 517.65 Td (35.68) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 51.50 503.65 Td (Balance, December 31, 2015) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 170.95 503.20 Td (.......................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 330.45 503.65 Td (2,376,340) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 406.95 503.65 Td (38.18) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 459.45 503.65 Td (2,265,967) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.95 503.65 Td (40.70) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 69.50 489.65 Td (Granted) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 108.45 489.20 Td (................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 337.95 489.65 Td (830,949) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 406.95 489.65 Td (46.79) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 466.95 489.65 Td (879,667) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.95 489.65 Td (35.96) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 69.50 475.65 Td (Vested) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 103.45 475.20 Td (..................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 334.95 475.65 Td (\(997,039) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 370.50 475.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 406.95 475.65 Td (37.71) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.95 475.65 Td (\(601,249) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 499.50 475.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.95 475.65 Td (39.18) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 69.50 461.65 Td (Forfeited) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 110.95 461.20 Td (...............................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 339.95 461.65 Td (\(81,850) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 370.50 461.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 406.95 461.65 Td (35.63) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.95 461.65 Td (\(206,432) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 499.50 461.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.95 461.65 Td (34.60) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 51.50 447.65 Td (Balance, December 31, 2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 170.95 447.20 Td (.......................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 330.45 447.65 Td (2,128,400) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 384.50 447.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 406.95 447.65 Td (41.86) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 459.45 447.65 Td (2,337,953) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 513.50 447.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.95 447.65 Td (39.80) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 428.25 m 150 428.25 l s BT /F1 10.00 Tf ET BT /F3 9.00 Tf ET q 0 0 0 rg BT 49.50 414.95 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 72.00 414.95 Td (Represents the unvested units with respect to the November 2015 exchange of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.69 414.95 Td (12,998,725) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 434.73 414.95 Td ( outstanding vested and ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 404.15 Td (unvested OCGH units into an equal number of Class ) Tj ET Q q 0 0 0 rg BT 283.61 404.15 Td (A) Tj ET Q q 0 0 0 rg BT 289.12 404.15 Td ( units.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 374.15 Td (Equity V) Tj ET Q q 0 0 0 rg BT 88.95 374.15 Td (alue Units) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 353.15 Td (OCGH equity value units \(“EVUs”\) represent special limited partnership units in OCGH that entitle the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 341.15 Td (holder the right to receive a one-time special distribution that will be settled in OCGH units, based on value created ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 329.15 Td (during a specified period \(“T) Tj ET Q q 0 0 0 rg BT 172.90 329.15 Td (erm”\) in excess of a fixed “Base V) Tj ET Q q 0 0 0 rg BT 322.21 329.15 Td (alue.” ) Tj ET Q q 0 0 0 rg BT 352.60 329.15 Td (The value created will be measured on a per ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 317.15 Td (unit basis, based on Class ) Tj ET Q q 0 0 0 rg BT 168.46 317.15 Td (A) Tj ET Q q 0 0 0 rg BT 174.58 317.15 Td ( unit trading prices and certain components of quarterly distributions with respect to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 305.15 Td (interim periods during the ) Tj ET Q q 0 0 0 rg BT 164.93 305.15 Td (T) Tj ET Q q 0 0 0 rg BT 169.93 305.15 Td (erm. EVUs also give the holder the right, subject to service vesting and Oaktree ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 293.15 Td (performance relative to the accreting Base V) Tj ET Q q 0 0 0 rg BT 246.08 293.15 Td (alue, to receive certain quarterly distributions from OCGH. EVUs do ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 281.15 Td (not entitle the holder to any voting rights. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.50 260.15 Td (Certain EVUs provide the holder with certain liquidity rights in respect of the one-time special distribution ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 248.15 Td (that will be settled in OCGH units. ) Tj ET Q q 0 0 0 rg BT 204.38 248.15 Td (The Company accounts for EVUs with liquidity rights as liability-classified ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 236.15 Td (awards. ) Tj ET Q q 0 0 0 rg BT 89.52 236.15 Td (As of December 31, 2016, there were ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 258.50 236.15 Td (1,000,000) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 302.99 236.15 Td ( equity-classified EVUs and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 427.49 236.15 Td (1,000,000) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 471.98 236.15 Td ( liability-classified ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 224.15 Td (EVUs outstanding. ) Tj ET Q q 0 0 0 rg BT 137.33 224.15 Td (As of December 31, 2016, the Company expected to recognize ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 419.16 224.15 Td ($5.3 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 469.74 224.15 Td ( of compensation ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 212.15 Td (expense on its unvested EVUs over the next ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 249.06 212.15 Td (3.0) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 262.96 212.15 Td ( years. Equity-classified EVUs that require future service are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 200.15 Td (expensed on a straight-line basis over the requisite service period. Liability-classified EVUs are remeasured at the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 188.15 Td (end of each quarter) Tj ET Q q 0 0 0 rg BT 135.68 188.15 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.50 167.15 Td (The fair value of EVUs was determined using a Monte Carlo simulation model at the grant date for equity-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 155.15 Td (classified EVUs and as of the period end date for liability-classified EVUs. ) Tj ET Q q 0 0 0 rg BT 380.04 155.15 Td (The fair value is af) Tj ET Q q 0 0 0 rg BT 461.56 155.15 Td (fected by the Class ) Tj ET Q q 0 0 0 rg BT 548.83 155.15 Td (A) Tj ET Q q 0 0 0 rg BT 554.95 155.15 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 143.15 Td (unit trading price and assumptions regarding certain complex and subjective variables, including the expected Class ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 131.15 Td (A) Tj ET Q q 0 0 0 rg BT 55.62 131.15 Td ( unit trading price volatility) Tj ET Q q 0 0 0 rg BT 169.93 131.15 Td (, distributions and exercise timing, and the risk-free interest rate. ) Tj ET Q q 0 0 0 rg BT 459.32 131.15 Td (The fair value of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 119.15 Td (equity-classified EVUs reflected a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 201.23 119.15 Td (20%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 221.25 119.15 Td ( lack-of-marketability discount for the OCGH units that will be issued upon ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 107.15 Td (vesting, and an assumed forfeiture rate of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 236.83 107.15 Td (zero) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 256.28 107.15 Td (.) Tj ET Q endstream endobj 359 0 obj <> endobj 360 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (179) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 712.75 Td (15. INCOME T) Tj ET Q q 0 0 0 rg BT 114.32 712.75 Td (AXES ) Tj ET Q q 0 0 0 rg BT 143.96 712.75 Td (AND RELA) Tj ET Q q 0 0 0 rg BT 194.89 712.75 Td (TED P) Tj ET Q q 0 0 0 rg BT 223.59 712.75 Td (A) Tj ET Q q 0 0 0 rg BT 229.90 712.75 Td (YMENTS) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.50 696.25 Td (Oaktree is a publicly traded partnership and Oaktree Holdings, Inc. and Oaktree ) Tj ET Q q 0 0 0 rg BT 434.70 696.25 Td (AIF Holdings, Inc., ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 519.17 696.25 Td (two) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 534.73 696.25 Td ( of its ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 684.25 Td (Intermediate Holding Companies, are wholly-owned corporate subsidiaries. Income earned by these corporate ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 672.25 Td (subsidiaries is subject to U.S. federal and state income taxation and taxed at prevailing rates. Income earned by ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 660.25 Td (non-corporate subsidiaries is not subject to U.S. federal corporate income tax and is allocated to the Oaktree ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 648.25 Td (Operating Group’) Tj ET Q q 0 0 0 rg BT 126.03 648.25 Td (s unitholders. ) Tj ET Q q 0 0 0 rg BT 190.88 648.25 Td (The Company’) Tj ET Q q 0 0 0 rg BT 255.73 648.25 Td (s ef) Tj ET Q q 0 0 0 rg BT 271.67 648.25 Td (fective tax rate is dependent on many factors, including the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 636.25 Td (estmated nature of many amounts and the mix of revenues and expenses between the subsidiaries that are or are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 624.25 Td (not subject to income tax; consequently) Tj ET Q q 0 0 0 rg BT 223.86 624.25 Td (, from period to period the ef) Tj ET Q q 0 0 0 rg BT 349.30 624.25 Td (fective tax rate is subject to significant variation. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.50 607.25 Td (Income tax expense from operations consisted of the following: ) Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 361.32 607.25 Td ( ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366 584.75 m 426 584.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426 584.75 m 434 584.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 584.75 m 494 584.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 584.75 m 502 584.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 584.75 m 562 584.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366 570.75 m 426 570.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 570.75 m 494 570.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 570.75 m 562 570.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366 514.75 m 426 514.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366 501.75 m 426 501.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366 499.75 m 426 499.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 514.75 m 494 514.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 501.75 m 494 501.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 499.75 m 494 499.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 514.75 m 562 514.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 501.75 m 562 501.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 499.75 m 562 499.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366 444.75 m 426 444.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 444.75 m 494 444.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 444.75 m 562 444.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366 444.75 m 426 444.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366 431.75 m 426 431.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366 429.75 m 426 429.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 444.75 m 494 444.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 431.75 m 494 431.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 429.75 m 494 429.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 444.75 m 562 444.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 431.75 m 562 431.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 429.75 m 562 429.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366 374.75 m 426 374.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366 361.75 m 426 361.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366 359.75 m 426 359.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 374.75 m 494 374.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 361.75 m 494 361.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 359.75 m 494 359.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 374.75 m 562 374.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 361.75 m 562 361.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 359.75 m 562 359.75 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 420.70 588.75 Td (Year Ended December 31,) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 387.70 574.75 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 455.70 574.75 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 523.70 574.75 Td (2014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 51.50 561.15 Td (Current:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 368.50 561.21 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 436.50 561.21 Td ( ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 504.50 561.21 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 69.50 547.15 Td (U.S. federal income tax) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 167.45 546.70 Td (..............................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 368.50 547.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 394.95 547.15 Td (10,268) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 436.50 547.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.95 547.15 Td (1,478) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 504.50 547.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.95 547.15 Td (4,128) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 69.50 533.15 Td (State and local income tax) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 179.95 532.70 Td (.........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 399.95 533.15 Td (6,154) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.95 533.15 Td (1,650) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.45 533.15 Td (\(372) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.50 533.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 69.50 519.15 Td (Foreign income tax) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 152.45 518.70 Td (....................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 399.95 519.15 Td (1,436) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.95 519.15 Td (2,621) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.95 519.15 Td (2,245) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 51.50 505.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 368.50 505.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 394.95 505.15 Td (17,858) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 436.50 505.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.95 505.15 Td (5,749) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 504.50 505.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.95 505.15 Td (6,001) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 51.50 491.15 Td (Deferred:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 368.50 491.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.50 491.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.50 491.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 69.50 477.15 Td (U.S. federal income tax) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 167.45 476.70 Td (..............................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 368.50 477.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 394.95 477.15 Td (23,835) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 436.50 477.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.95 477.15 Td (11,306) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 504.50 477.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.95 477.15 Td (12,544) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 69.50 463.15 Td (State and local income tax) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 179.95 462.70 Td (.........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 399.95 463.15 Td (2,110) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 475.45 463.15 Td (786) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.95 463.15 Td (1,836) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 69.50 449.15 Td (Foreign income tax) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 152.45 448.70 Td (....................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 396.95 449.15 Td (\(1,284) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.50 449.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 472.45 449.15 Td (\(292) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.50 449.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 532.95 449.15 Td (\(1,845) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.50 449.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 51.50 435.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 368.50 435.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 394.95 435.15 Td (24,661) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 436.50 435.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.95 435.15 Td (11,800) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 504.50 435.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.95 435.15 Td (12,535) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 51.50 421.15 Td (Total:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 368.50 421.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.50 421.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.50 421.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 69.50 407.15 Td (U.S. federal income tax) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 167.45 406.70 Td (..............................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 368.50 407.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 394.95 407.15 Td (34,103) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 436.50 407.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.95 407.15 Td (12,784) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 504.50 407.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.95 407.15 Td (16,672) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 69.50 393.15 Td (State and local income tax) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 179.95 392.70 Td (.........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 399.95 393.15 Td (8,264) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.95 393.15 Td (2,436) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.95 393.15 Td (1,464) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 69.50 379.15 Td (Foreign income tax) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 152.45 378.70 Td (....................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 407.45 379.15 Td (152) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.95 379.15 Td (2,329) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 543.45 379.15 Td (400) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 51.50 365.15 Td (Income tax expense) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 137.45 364.70 Td (..........................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 368.50 365.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 394.95 365.15 Td (42,519) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 436.50 365.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.95 365.15 Td (17,549) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 504.50 365.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.95 365.15 Td (18,536) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.50 334.25 Td (The Company’) Tj ET Q q 0 0 0 rg BT 144.35 334.25 Td (s income \(loss\) before income taxes consisted of the following: ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 424.48 334.25 Td ( ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366 311.75 m 426 311.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426 311.75 m 434 311.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 311.75 m 494 311.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 311.75 m 502 311.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 311.75 m 562 311.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366 297.75 m 426 297.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 297.75 m 494 297.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 297.75 m 562 297.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366 262.75 m 426 262.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366 249.75 m 426 249.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366 247.75 m 426 247.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 262.75 m 494 262.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 249.75 m 494 249.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 247.75 m 494 247.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 262.75 m 562 262.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 249.75 m 562 249.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 247.75 m 562 247.75 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 420.70 315.75 Td (Year Ended December 31,) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 387.70 301.75 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 455.70 301.75 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 523.70 301.75 Td (2014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 51.50 281.15 Td (Domestic income \(loss\) before income taxes) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 232.45 280.70 Td (....................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 368.50 281.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.95 281.15 Td (623,712) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 436.50 281.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 447.45 281.15 Td (\(1,518,108) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.50 281.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 504.50 281.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 518.45 281.15 Td (2,195,174) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 51.50 267.15 Td (Foreign income \(loss\) before income taxes) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 224.95 266.70 Td (.......................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 391.95 267.15 Td (\(15,090) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 422.50 267.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.95 267.15 Td (2,695) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 532.95 267.15 Td (\(1,086) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.50 267.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 51.50 253.15 Td (Total income \(loss\) before income taxes) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 214.95 252.70 Td (...........................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 368.50 253.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 389.95 253.15 Td (608,622) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 436.50 253.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 447.45 253.15 Td (\(1,515,413) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.50 253.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 504.50 253.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 518.45 253.15 Td (2,194,088) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.50 222.25 Td (The Company’) Tj ET Q q 0 0 0 rg BT 144.35 222.25 Td (s ef) Tj ET Q q 0 0 0 rg BT 160.29 222.25 Td (fective tax rate dif) Tj ET Q q 0 0 0 rg BT 238.47 222.25 Td (fered from the federal statutory rate for the following reasons: ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 511.95 222.25 Td ( ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 199.75 m 427 199.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 199.75 m 435 199.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 199.75 m 495 199.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495 199.75 m 502 199.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 199.75 m 562 199.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 199.75 m 427 199.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 185.75 m 427 185.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 199.75 m 435 199.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 199.75 m 495 199.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 185.75 m 495 185.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495 199.75 m 502 199.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 199.75 m 562 199.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 185.75 m 562 185.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 112.75 m 427 112.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 99.75 m 427 99.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 97.75 m 427 97.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 112.75 m 495 112.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 99.75 m 495 99.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 97.75 m 495 97.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 112.75 m 562 112.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 99.75 m 562 99.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 97.75 m 562 97.75 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 421.20 203.75 Td (Year Ended December 31,) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 388.70 189.75 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 456.70 189.75 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 523.70 189.75 Td (2014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 51.50 173.15 Td (Income tax expense at federal statutory rate) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 230.95 172.70 Td (.....................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 395.90 173.15 Td (35.00) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 418.45 173.15 Td (%) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 460.95 173.15 Td (35.00) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 486.45 173.15 Td (%) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.90 173.15 Td (35.00) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 553.45 173.15 Td (%) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 51.50 159.15 Td (Income passed through) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 150.95 158.70 Td (.....................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 392.90 159.15 Td (\(30.31) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 418.45 159.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 457.95 159.15 Td (\(35.91) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 483.50 159.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 527.90 159.15 Td (\(34.15) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 553.45 159.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 51.50 145.15 Td (State and local taxes, net of federal benefit) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 225.95 144.70 Td (.......................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 400.90 145.15 Td (1.28) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.95 145.15 Td (\(0.17) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 483.50 145.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.90 145.15 Td (0.05) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 51.50 131.15 Td (Foreign taxes) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 113.45 130.70 Td (....................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 400.90 131.15 Td (0.89) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.95 131.15 Td (\(0.09) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 483.50 131.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.90 131.15 Td (0.04) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 51.50 117.15 Td (Other, net) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 98.40 116.70 Td (..........................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 400.90 117.15 Td (0.13) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 465.95 117.15 Td (0.01) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 532.90 117.15 Td (\(0.10) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 553.45 117.15 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 51.50 103.15 Td (Total effective rate) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 130.95 102.70 Td (.............................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 400.90 103.15 Td (6.99) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 418.45 103.15 Td (%) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.95 103.15 Td (\(1.16) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 483.50 103.15 Td (\)%) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.90 103.15 Td (0.84) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 553.45 103.15 Td (%) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 361 0 obj <> endobj 362 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (180) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.50 712.75 Td (The components of the Company’) Tj ET Q q 0 0 0 rg BT 229.40 712.75 Td (s deferred tax assets and liabilities were as follows: ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 690.25 m 431.5 690.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 690.25 m 439.5 690.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 690.25 m 496.5 690.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 690.25 m 504.5 690.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504.5 690.25 m 561.5 690.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 676.25 m 431.5 676.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 676.25 m 496.5 676.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504.5 676.25 m 561.5 676.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 620.25 m 431.5 620.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 620.25 m 496.5 620.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504.5 620.25 m 561.5 620.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 592.25 m 431.5 592.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 592.25 m 496.5 592.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504.5 592.25 m 561.5 592.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 564.25 m 431.5 564.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 551.25 m 431.5 551.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 549.25 m 431.5 549.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 564.25 m 496.5 564.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 551.25 m 496.5 551.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 549.25 m 496.5 549.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504.5 564.25 m 561.5 564.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504.5 551.25 m 561.5 551.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504.5 549.25 m 561.5 549.25 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 435.00 694.25 Td (As of December 31,) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 394.70 680.25 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 459.70 680.25 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 524.70 680.25 Td (2014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 666.65 Td (Deferred tax assets:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 428.00 666.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 493.00 666.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 666.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 652.65 Td (Investment in partnerships) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 180.95 652.20 Td (............................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 377.00 652.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 395.45 652.65 Td (386,796) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 442.00 652.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 460.45 652.65 Td (414,142) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 507.00 652.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 652.65 Td (351,962) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 638.65 Td (Equity-based compensation expense) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 220.95 638.20 Td (............................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 405.45 638.65 Td (4,449) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 470.45 638.65 Td (3,773) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 638.65 Td (5,514) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 624.65 Td (Other, net) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 115.95 624.20 Td (......................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 400.45 624.65 Td (14,329) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 470.45 624.65 Td (9,675) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 624.65 Td (3,071) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 610.65 Td (Total deferred tax assets) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 155.95 610.20 Td (......................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 395.45 610.65 Td (405,574) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 460.45 610.65 Td (427,590) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 610.65 Td (360,547) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 596.65 Td (Total deferred tax liabilities) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 163.45 596.20 Td (...................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 412.95 596.65 Td (960) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 470.45 596.65 Td (1,792) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 596.65 Td (3,183) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 582.65 Td (Net deferred tax assets before valuation allowance) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 258.45 582.20 Td (.............................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 395.45 582.65 Td (404,614) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 460.45 582.65 Td (425,798) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 582.65 Td (357,364) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 568.65 Td (Valuation allowance) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 138.45 568.20 Td (.............................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 419.00 568.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 484.00 568.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 549.00 568.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 554.65 Td (Net deferred tax assets) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 150.95 554.20 Td (........................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 377.00 554.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 395.45 554.65 Td (404,614) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 442.00 554.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 460.45 554.65 Td (425,798) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 507.00 554.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 554.65 Td (357,364) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.50 529.75 Td (When assessing the realizability of deferred tax assets, the Company considers whether it is probable that ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 517.75 Td (some or all of the deferred tax assets will not be realized. In determining whether the deferred tax assets are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 505.75 Td (realizable, the Company considers the period of expiration of the tax asset, historical and projected taxable income, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 493.75 Td (and tax liabilities for the tax jurisdiction in which the tax asset is located. ) Tj ET Q q 0 0 0 rg BT 371.70 493.75 Td (The deferred tax asset recognized by the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 481.75 Td (Company) Tj ET Q q 0 0 0 rg BT 91.56 481.75 Td (, as it relates to the higher tax basis in the carrying value of certain assets compared to the book basis of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 469.75 Td (those assets, will be recognized in future years by these taxable entities. Deferred tax assets are based on the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 457.75 Td (amount of the tax benefit that the Company’) Tj ET Q q 0 0 0 rg BT 243.33 457.75 Td (s management has determined is more likely than not to be realized in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 445.75 Td (future periods. In determining the realizability of this tax benefit, management considered numerous factors that will ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 433.75 Td (give rise to pre-tax income in future periods. ) Tj ET Q q 0 0 0 rg BT 249.04 433.75 Td (Among these are the historical and expected future book and tax basis ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 421.75 Td (pre-tax income of the Company and unrealized gains in the Company’) Tj ET Q q 0 0 0 rg BT 358.94 421.75 Td (s assets at the determination date. Based on ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 409.75 Td (these and other factors, the Company determined that, as of December 31, 2016, all deferred tax assets were more ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 397.75 Td (likely than not to be realized in future periods. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.50 376.75 Td (The Company recognizes tax benefits related to its tax positions only where the position is “more likely than ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 364.75 Td (not” to be sustained in the event of examination by tax authorities. ) Tj ET Q q 0 0 0 rg BT 345.79 364.75 Td (As part of its assessment, the Company ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 352.75 Td (analyzes its tax filing positions in all of the federal, state and foreign tax jurisdictions where it is required to file ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 340.75 Td (income tax returns, and for all open tax years in these jurisdictions. ) Tj ET Q q 0 0 0 rg BT 350.21 340.75 Td (As of December 31, 2016, the total reserve ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 328.75 Td (balance, including interest and penalties, was ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 253.52 328.75 Td ($8.9 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 304.10 328.75 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.50 307.75 Td (The following is a reconciliation of unrecognized tax benefits \(excluding interest and penalties thereon\): ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376 285.25 m 433 285.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 285.25 m 441 285.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441 285.25 m 498 285.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 285.25 m 506 285.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506 285.25 m 563 285.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376 271.25 m 433 271.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441 271.25 m 498 271.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506 271.25 m 563 271.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376 179.25 m 433 179.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376 165.25 m 433 165.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376 163.25 m 433 163.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441 179.25 m 498 179.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441 165.25 m 498 165.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441 163.25 m 498 163.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506 179.25 m 563 179.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506 165.25 m 563 165.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506 163.25 m 563 163.25 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 426.20 289.25 Td (Year Ended December 31,) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 396.20 275.25 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 461.20 275.25 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 526.20 275.25 Td (2014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 258.65 Td (Unrecognized tax benefits, January 1) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 204.95 258.20 Td (...................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 378.50 258.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 406.95 258.65 Td (4,956) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 443.50 258.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 471.95 258.65 Td (5,575) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 508.50 258.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 531.95 258.65 Td (10,390) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 243.65 Td (Additions for tax positions related to the current year) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 282.45 243.20 Td (....................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 414.45 243.65 Td (350) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 471.95 243.65 Td (1,156) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 536.95 243.65 Td (1,492) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 228.65 Td (Additions for tax positions related to prior years) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 262.45 228.20 Td (............................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 406.95 228.65 Td (2,121) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 479.45 228.65 Td (109) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 550.50 228.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 213.65 Td (Reductions for tax positions related to prior years) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 269.95 213.20 Td (.........................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 416.45 213.65 Td (\(79) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 429.50 213.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 485.50 213.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 533.95 213.65 Td (\(1,373) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 559.50 213.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 198.65 Td (Settlements) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 124.95 198.20 Td (...................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.50 198.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 485.50 198.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 533.95 198.65 Td (\(3,657) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 559.50 198.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 183.65 Td (Lapse in statute of limitations) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 192.45 183.20 Td (........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 403.95 183.65 Td (\(1,580) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 429.50 183.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 468.95 183.65 Td (\(1,884) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 494.50 183.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 533.95 183.65 Td (\(1,277) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 559.50 183.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 168.65 Td (Unrecognized tax benefits, December 31) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 219.95 168.20 Td (.............................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 378.50 168.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 406.95 168.65 Td (5,768) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 443.50 168.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 471.95 168.65 Td (4,956) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 508.50 168.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 536.95 168.65 Td (5,575) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.50 143.75 Td (If the above tax benefits as of December 31, 2016 were to be recognized in 2016, the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 459.74 143.75 Td ($5.8 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 510.33 143.75 Td ( would ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 131.75 Td (impact the annual ef) Tj ET Q q 0 0 0 rg BT 139.38 131.75 Td (fective tax rate. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.50 110.75 Td (The Company recognizes interest and penalties related to unrecognized tax positions in the provision for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 98.75 Td (income taxes in the consolidated statements of operations. ) Tj ET Q q 0 0 0 rg BT 314.66 98.75 Td (As of December 31, 2016 and 2015, respectively) Tj ET Q q 0 0 0 rg BT 530.15 98.75 Td (, the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 86.75 Td (aggregate amount of interest and penalties accrued was ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 301.33 86.75 Td ($3.1 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 351.91 86.75 Td ( and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 374.15 86.75 Td ($1.5 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 424.73 86.75 Td (. ) Tj ET Q q 0 0 0 rg BT 432.88 86.75 Td (The Company recognized a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 74.75 Td (net expense of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 117.88 74.75 Td ($1.6 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 168.46 74.75 Td ( in 2016, no net change in 2015 and a net benefit of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 399.76 74.75 Td ($2.9 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 450.34 74.75 Td ( in 2014. ) Tj ET Q q 0 0 0 rg BT 494.08 74.75 Td (There was no ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 62.75 Td (net change in the amount of interest and penalties accrued between December 31, 2014 and December 31, 2015, ) Tj ET Q endstream endobj 363 0 obj <> endobj 364 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (181) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 712.75 Td (because the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 106.77 712.75 Td ($0.9 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 157.35 712.75 Td ( charge for interest and penalties in 2015 was fully of) Tj ET Q q 0 0 0 rg BT 390.64 712.75 Td (fset by a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 431.21 712.75 Td ($0.9 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 481.79 712.75 Td ( benefit from the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 700.75 Td (reversal of prior-year accruals upon the lapse in the statute of limitations.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.50 679.75 Td (The Company files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates. In the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 667.75 Td (normal course of business, the Company is subject to examination by federal, state, local and foreign tax ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 655.75 Td (regulators. With limited exceptions, the Company is no longer subject to income tax audits by taxing authorities for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 643.75 Td (periods before 2013. ) Tj ET Q q 0 0 0 rg BT 146.61 643.75 Td (T) Tj ET Q q 0 0 0 rg BT 151.61 643.75 Td (axing authorities currently are examining certain income tax returns of Oaktree, with certain ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 631.75 Td (of these examinations at an advanced stage. During the year ending December 31, 2017, the Company believes ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 619.75 Td (that it is reasonably possible that one outcome of these current examinations and expiring statutes of limitation on ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 607.75 Td (other items may be the release of up to approximately ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 290.74 607.75 Td ($4.6 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 341.32 607.75 Td ( of previously accrued Operating Group income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 595.75 Td (taxes. ) Tj ET Q q 0 0 0 rg BT 81.56 595.75 Td (The Company believes that it has adequately provided for any reasonably foreseeable outcomes related to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 583.75 Td (its tax examinations and that any settlements related thereto will not have a material adverse ef) Tj ET Q q 0 0 0 rg BT 470.10 583.75 Td (fect on the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 571.75 Td (Company’) Tj ET Q q 0 0 0 rg BT 94.34 571.75 Td (s consolidated financial statements; however) Tj ET Q q 0 0 0 rg BT 292.23 571.75 Td (, there can be no assurances as to the ultimate outcomes.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 546.25 Td (Exchange ) Tj ET Q q 0 0 0 rg BT 99.15 546.25 Td (Agreement and T) Tj ET Q q 0 0 0 rg BT 180.09 546.25 Td (ax Receivable ) Tj ET Q q 0 0 0 rg BT 248.65 546.25 Td (Agreement ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 525.25 Td (Subject to certain restrictions and the approval of the Company’) Tj ET Q q 0 0 0 rg BT 366.58 525.25 Td (s board of directors, each holder of OCGH ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 513.25 Td (units has the right to exchange his or her vested units for) Tj ET Q q 0 0 0 rg BT 300.20 513.25 Td (, at the option of the Company’) Tj ET Q q 0 0 0 rg BT 436.22 513.25 Td (s board of directors, Class ) Tj ET Q q 0 0 0 rg BT 554.60 513.25 Td (A) Tj ET Q q 0 0 0 rg BT 560.72 513.25 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 501.25 Td (units, an equivalent amount of cash based on then-prevailing market prices and/or other consideration of equal ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 489.25 Td (value. Certain of the Oaktree Operating Group entities made an election under Section 754 of the U.S. Internal ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 477.25 Td (Revenue Code, as amended \(the “Code”\), which may result in an adjustment to the tax basis of the assets owned ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 465.25 Td (by the Oaktree Operating Group at the time of an exchange. ) Tj ET Q q 0 0 0 rg BT 321.15 465.25 Td (These exchanges may result in increases in tax ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 453.25 Td (deductions and tax basis that would reduce the amount of tax that Oaktree Holdings, Inc. and Oaktree ) Tj ET Q q 0 0 0 rg BT 502.55 453.25 Td (AIF ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 441.25 Td (Holdings, Inc. would otherwise be required to pay in the future. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 420.25 Td (Oaktree Holdings, Inc. and Oaktree ) Tj ET Q q 0 0 0 rg BT 244.47 420.25 Td (AIF Holdings, Inc. have entered into a tax receivable agreement with ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 408.25 Td (OCGH unitholders that, as amended, provides for the payment to an exchanging or selling OCGH unitholder of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 541.99 408.25 Td (85%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 562.00 408.25 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 396.25 Td (of the amount of cash savings, if any) Tj ET Q q 0 0 0 rg BT 211.07 396.25 Td (, in U.S. federal, state, local and foreign income taxes that they actually realize ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 384.25 Td (\(or are deemed to realize in the case of an early termination payment by Oaktree Holdings, Inc. or Oaktree ) Tj ET Q q 0 0 0 rg BT 522.52 384.25 Td (AIF ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 372.25 Td (Holdings, Inc., or a change of control\) as a result of an increase in the tax basis of the assets owned by the Oaktree ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 360.25 Td (Operating Group. When an exchange of OCGH units results in an increase to the tax basis of the assets owned by ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 348.25 Td (the Oaktree Operating Group, a deferred tax asset and an associated liability for payments to OCGH unitholders ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 336.25 Td (under the tax receivable agreement are recorded, subject to realizability considerations. ) Tj ET Q q 0 0 0 rg BT 442.31 336.25 Td (The establishment of a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 324.25 Td (deferred tax asset increases additional paid-in capital because the transactions are between Oaktree and its ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 312.25 Td (unitholders.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 291.25 Td (Assuming no material changes in the relevant tax law and that the Company earns suf) Tj ET Q q 0 0 0 rg BT 466.64 291.25 Td (ficient taxable ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 279.25 Td (income to realize the full tax benefit of the increased amortization of the assets, the expected future payments to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 267.25 Td (OCGH unitholders under the tax receivable agreement, as of December 31, 2016, are estimated to aggregate ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 537.00 267.25 Td ($33.4 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 255.25 Td (million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.84 255.25 Td ( over the period ending approximately in 2029 with respect to the 2007 Private Of) Tj ET Q q 0 0 0 rg BT 436.76 255.25 Td (fering, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 467.33 255.25 Td ($71.3 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 523.47 255.25 Td ( over the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 243.25 Td (period ending approximately in 2034 with respect to the initial public of) Tj ET Q q 0 0 0 rg BT 360.06 243.25 Td (fering, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 390.63 243.25 Td ($99.0 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 446.78 243.25 Td ( over the period ending ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 231.25 Td (approximately in 2035 with respect to the May 2013 Of) Tj ET Q q 0 0 0 rg BT 291.12 231.25 Td (fering, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 321.69 231.25 Td ($74.5 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 377.83 231.25 Td ( over the period ending approximately in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 219.25 Td (2036 with respect to the March 2014 Of) Tj ET Q q 0 0 0 rg BT 224.42 219.25 Td (fering, and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 274.45 219.25 Td ($62.7 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 330.59 219.25 Td ( over the period ending approximately in 2037 with ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 207.25 Td (respect to the March 2015 Of) Tj ET Q q 0 0 0 rg BT 178.83 207.25 Td (fering. Future estimated payments to OCGH unitholders under the tax receivable ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 195.25 Td (agreement are subject to increase in the event of additional exchanges of OCGH units.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 174.25 Td (In the years ended December 31, 2016, 2015 and 2014, respectively) Tj ET Q q 0 0 0 rg BT 388.85 174.25 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 394.41 174.25 Td ($18.8 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 450.55 174.25 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 456.11 174.25 Td ($15.7 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 512.25 174.25 Td ( and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 534.49 174.25 Td ($10.1 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 162.25 Td (million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 77.84 162.25 Td ( were paid under the tax receivable agreement.) Tj ET Q endstream endobj 365 0 obj <> endobj 366 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (182) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 712.75 Td (16. COMMITMENTS ) Tj ET Q q 0 0 0 rg BT 144.13 712.75 Td (AND CONTINGENCIES ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.50 696.25 Td (In the normal course of business, Oaktree enters into contracts that contain certain representations, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 684.25 Td (warranties and indemnifications. ) Tj ET Q q 0 0 0 rg BT 197.73 684.25 Td (The Company’) Tj ET Q q 0 0 0 rg BT 262.58 684.25 Td (s exposure under these arrangements would involve future claims ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 672.25 Td (that have not yet been asserted. Inasmuch as no such claims currently exist or are expected to arise, the Company ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 660.25 Td (has not accrued any liability in connection with these indemnifications. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 638.25 Td (Legal ) Tj ET Q q 0 0 0 rg BT 78.03 638.25 Td (Actions ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 617.25 Td (Oaktree, its af) Tj ET Q q 0 0 0 rg BT 147.57 617.25 Td (filiates, investment professionals, and portfolio companies are routinely involved in litigation ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 605.25 Td (and other legal actions in the ordinary course of their business and investing activities. In addition, Oaktree is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 593.25 Td (subject to the authority of a number of U.S. and non-U.S. regulators, including the SEC and the Financial Industry ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 581.25 Td (Regulatory ) Tj ET Q q 0 0 0 rg BT 100.09 581.25 Td (Authority) Tj ET Q q 0 0 0 rg BT 138.81 581.25 Td (, and those authorities periodically conduct examinations of Oaktree and make other inquiries ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 569.25 Td (that may result in the commencement of regulatory proceedings against Oaktree and its personnel. Oaktree is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 557.25 Td (currently not subject to any pending actions or regulatory proceedings that either individually or in the aggregate are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 545.25 Td (expected to have a material impact on its consolidated financial statements. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 523.25 Td (Incentive Income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.50 506.75 Td (In addition to the incentive income recognized by the Company) Tj ET Q q 0 0 0 rg BT 357.26 506.75 Td (, certain of its funds have amounts recorded ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 494.75 Td (as potentially allocable to the Company as its share of potential future incentive income, based on each fund’) Tj ET Q q 0 0 0 rg BT 530.17 494.75 Td (s net ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 482.75 Td (asset value. Inasmuch as this incentive income is contingent upon future investment activity and other factors, it is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 470.75 Td (not recognized by the Company until it is fixed or determinable. ) Tj ET Q q 0 0 0 rg BT 333.54 470.75 Td (As of December 31, 2016 and 2015, respectively) Tj ET Q q 0 0 0 rg BT 549.04 470.75 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 458.75 Td (the aggregate of such amounts recorded at the fund level in excess of incentive income recognized by the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 446.75 Td (Company was ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 115.64 446.75 Td ($1,970,755) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 165.69 446.75 Td ( and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 187.93 446.75 Td ($1,540,469) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 237.98 446.75 Td (, for which related direct incentive income compensation expense was ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 434.75 Td (estimated to be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 120.65 434.75 Td ($1,026,345) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 170.70 434.75 Td ( and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 192.94 434.75 Td ($750,077) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 234.65 434.75 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 412.75 Td (Contingent Consideration) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 390.75 Td (The Company has a contingent consideration obligation of up to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 371.24 390.75 Td ($60.0 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 427.38 390.75 Td ( related to the Highstar ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 378.75 Td (acquisition, payable in cash and fully-vested OCGH units. ) Tj ET Q q 0 0 0 rg BT 309.45 378.75 Td (The amount of contingent consideration is based on the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 366.75 Td (achievement of certain performance targets over a period of up to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 342.44 366.75 Td (seven) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 369.12 366.75 Td ( years from the acquisition date of ) Tj ET Q q 0 0 0 rg BT 521.43 366.75 Td (August ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 354.75 Td (2014. ) Tj ET Q q 0 0 0 rg BT 79.53 354.75 Td (As of December 31, 2016 and 2015, the fair value of the contingent consideration liability was ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 495.34 354.75 Td ($23.6 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 551.48 354.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 342.75 Td (and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 68.96 342.75 Td ($28.5 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 125.11 342.75 Td (, respectively) Tj ET Q q 0 0 0 rg BT 182.72 342.75 Td (. Changes in this liability resulted in income of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 390.60 342.75 Td ($4.9 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 441.18 342.75 Td ( in 2016, and expense of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 330.75 Td ($1.2 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 100.08 330.75 Td ( and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 122.32 330.75 Td ($1.7 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 172.90 330.75 Td ( in 2015 and 2014, respectively) Tj ET Q q 0 0 0 rg BT 310.59 330.75 Td (. ) Tj ET Q q 0 0 0 rg BT 318.74 330.75 Td (The fair value of the contingent consideration liability is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 318.75 Td (a Level III valuation, which uses a discounted cash-flow analysis based on a probability-weighted average estimate ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 306.75 Td (of certain performance targets, including fundraising and revenue levels. ) Tj ET Q q 0 0 0 rg BT 374.50 306.75 Td (The assumptions used in the analysis are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 294.75 Td (inherently subjective, and thus the ultimate amount of the contingent consideration liability may dif) Tj ET Q q 0 0 0 rg BT 481.23 294.75 Td (fer materially from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 282.75 Td (the most recent estimate. ) Tj ET Q q 0 0 0 rg BT 167.15 282.75 Td (The contingent consideration liability is included in accounts payable, accrued expenses ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 270.75 Td (and other liabilities in the consolidated statements of financial condition. Changes in the liability are recorded in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 258.75 Td (general and administrative expense in the consolidated statements of operations.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 236.75 Td (Commitments to Funds ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.50 220.25 Td (As of December 31, 2016 and 2015, the Company) Tj ET Q q 0 0 0 rg BT 301.68 220.25 Td (, generally in its capacity as general partner) Tj ET Q q 0 0 0 rg BT 494.01 220.25 Td (, had undrawn ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 208.25 Td (capital commitments of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 154.53 208.25 Td ($565.4 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 216.24 208.25 Td ( and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 238.48 208.25 Td ($469.4 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 300.18 208.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 357.80 208.25 Td (, including commitments to both ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 196.25 Td (unconsolidated and consolidated funds.) Tj ET Q endstream endobj 367 0 obj <> endobj 368 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (183) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 712.75 Td (Operating Leases ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.50 696.25 Td (Oaktree leases its main headquarters of) Tj ET Q q 0 0 0 rg BT 256.63 696.25 Td (fice in Los ) Tj ET Q q 0 0 0 rg BT 303.88 696.25 Td (Angeles and of) Tj ET Q q 0 0 0 rg BT 370.42 696.25 Td (fices in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 404.32 696.25 Td (17) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 415.45 696.25 Td ( other cities in the U.S., Europe, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 684.25 Td (Asia and ) Tj ET Q q 0 0 0 rg BT 90.64 684.25 Td (Australia, pursuant to current lease terms expiring through 2030. Occupancy costs, including non-lease ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 672.25 Td (expenses, were ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 122.32 672.25 Td ($22,637) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 158.46 672.25 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 164.02 672.25 Td ($19,305) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 200.17 672.25 Td ( and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 222.41 672.25 Td ($18,040) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 258.56 672.25 Td ( for the years ended December 31, 2016, 2015 and 2014, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 660.25 Td (respectively) Tj ET Q q 0 0 0 rg BT 101.56 660.25 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.50 639.25 Td (As of December 31, 2016, aggregate estimated minimum commitments under Oaktree’) Tj ET Q q 0 0 0 rg BT 463.94 639.25 Td (s operating leases ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 627.25 Td (were as follows: ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 526.75 m 562 526.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 512.75 m 562 512.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 510.75 m 562 510.75 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 606.15 Td (2017) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 80.90 605.70 Td (.........................................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 509.50 606.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.95 606.15 Td (10,056) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 591.15 Td (2018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 80.90 590.70 Td (.........................................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.95 591.15 Td (14,275) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 576.15 Td (2019) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 80.90 575.70 Td (.........................................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.95 576.15 Td (14,556) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 561.15 Td (2020) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 80.90 560.70 Td (.........................................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.95 561.15 Td (14,961) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 546.15 Td (2021) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 80.90 545.70 Td (.........................................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.95 546.15 Td (11,672) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 531.15 Td (Thereafter) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 103.40 530.70 Td (................................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.95 531.15 Td (55,480) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 516.15 Td (Total) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 80.90 515.70 Td (.........................................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 509.50 516.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.95 516.15 Td (121,000) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 486.75 Td (Investment Commitments of Consolidated Funds ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 470.25 Td (Certain of the consolidated funds are parties to credit arrangements that provide for the issuance of letters ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 458.25 Td (of credit and/or revolving loans, which may require the particular fund to extend loans to investee companies. ) Tj ET Q q 0 0 0 rg BT 536.25 458.25 Td (The ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 446.25 Td (consolidated funds use the same investment criteria in making these commitments as they do for investments that ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 434.25 Td (are included in the consolidated statements of financial condition. ) Tj ET Q q 0 0 0 rg BT 343.39 434.25 Td (The unfunded liability associated with these ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 422.25 Td (credit arrangements is equal to the amount by which the contractual loan commitment exceeds the sum of funded ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 410.25 Td (debt and cash held in escrow) Tj ET Q q 0 0 0 rg BT 178.47 410.25 Td (, if any) Tj ET Q q 0 0 0 rg BT 207.19 410.25 Td (. ) Tj ET Q q 0 0 0 rg BT 214.97 410.25 Td (As of December 31, 2016 and 2015, the consolidated funds had potential ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 398.25 Td (aggregate commitments of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 170.67 398.25 Td ($2.1 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 221.25 398.25 Td ( and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 243.49 398.25 Td ($1.3 billion) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 291.30 398.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 348.91 398.25 Td (. ) Tj ET Q q 0 0 0 rg BT 357.07 398.25 Td (These commitments are expected to be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 386.25 Td (funded by the funds’) Tj ET Q q 0 0 0 rg BT 139.20 386.25 Td ( cash balances, proceeds from asset sales or drawdowns against existing capital commitments. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 368.25 Td (A) Tj ET Q q 0 0 0 rg BT 91.62 368.25 Td ( consolidated fund may agree to guarantee the repayment obligations of certain investee companies. ) Tj ET Q q 0 0 0 rg BT 541.90 368.25 Td (As ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 356.25 Td (of December 31, 2016 and 2015, the aggregate amounts guaranteed were ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 381.96 356.25 Td (zero) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 401.41 356.25 Td ( and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 423.65 356.25 Td ($142.4 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 485.35 356.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 542.97 356.25 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 338.25 Td (Certain consolidated funds are investment companies that are required to disclose financial support ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 326.25 Td (provided or contractually required to be provided to any of their portfolio companies. During the year ended ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 314.25 Td (December 31, 2016, the consolidated funds did not provide any financial support to portfolio companies.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 287.25 Td (17. EMPLOYEE BENEFITS ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.50 270.75 Td (Oaktree provides certain employee benefits, including a voluntary 401\(k\) savings plan for which the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 258.75 Td (Company makes an annual profit sharing contribution equal to up to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 352.46 258.75 Td (4.5%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 375.26 258.75 Td ( of total compensation for employees ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 246.75 Td (below certain compensation levels and up to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 249.07 246.75 Td (13.2%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 277.42 246.75 Td ( of total compensation, subject to prescribed limits, for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 234.75 Td (employees meeting certain eligibility requirements. For the years ended December 31, 2016, 2015 and 2014, the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 222.75 Td (Company incurred expenses of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 190.69 222.75 Td ($8.8 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 241.27 222.75 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 246.82 222.75 Td ($9.1 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.41 222.75 Td ( and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 319.65 222.75 Td ($7.8 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 370.23 222.75 Td (, respectively) Tj ET Q q 0 0 0 rg BT 427.84 222.75 Td (, in connection with the plan. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 210.75 Td (Oaktree also has a discretionary annual bonus program for all employees, which is based, in part, on adjusted net ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 198.75 Td (income.) Tj ET Q endstream endobj 369 0 obj <> endobj 370 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (184) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 712.75 Td (18. RELA) Tj ET Q q 0 0 0 rg BT 92.66 712.75 Td (TED P) Tj ET Q q 0 0 0 rg BT 121.37 712.75 Td (ARTY) Tj ET Q q 0 0 0 rg BT 148.41 712.75 Td ( TRANSACTIONS ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.50 696.25 Td (The Company considers its senior executives, employees and unconsolidated Oaktree funds to be af) Tj ET Q q 0 0 0 rg BT 525.68 696.25 Td (filiates ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 684.25 Td (\(as defined in the F) Tj ET Q q 0 0 0 rg BT 134.55 684.25 Td (ASB ) Tj ET Q q 0 0 0 rg BT 156.79 684.25 Td (ASC Master Glossary\). ) Tj ET Q q 0 0 0 rg BT 264.04 684.25 Td (Amounts due from and to af) Tj ET Q q 0 0 0 rg BT 387.26 684.25 Td (filiates are set forth below) Tj ET Q q 0 0 0 rg BT 500.10 684.25 Td (. ) Tj ET Q q 0 0 0 rg BT 508.25 684.25 Td (The fair ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 672.25 Td (value of amounts due from and to af) Tj ET Q q 0 0 0 rg BT 209.42 672.25 Td (filiates is a Level III valuation and was valued based on a discounted cash-flow ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 660.25 Td (analysis. ) Tj ET Q q 0 0 0 rg BT 93.78 660.25 Td (The carrying value of amounts due from af) Tj ET Q q 0 0 0 rg BT 281.47 660.25 Td (filiates approximated fair value due to their short-term nature or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 648.25 Td (because their average interest rate, which ranged from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 294.63 648.25 Td (2%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 309.08 648.25 Td ( to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 322.98 648.25 Td (3%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 337.43 648.25 Td (, approximated the Company’) Tj ET Q q 0 0 0 rg BT 467.88 648.25 Td (s cost of debt. ) Tj ET Q q 0 0 0 rg BT 535.51 648.25 Td (The ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 636.25 Td (fair value of amounts due to af) Tj ET Q q 0 0 0 rg BT 183.85 636.25 Td (filiates approximated ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 278.34 636.25 Td ($164,335) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 320.05 636.25 Td ( and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 342.29 636.25 Td ($160,952) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 384.00 636.25 Td ( as of December 31, 2016 and 2015, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 624.25 Td (respectively) Tj ET Q q 0 0 0 rg BT 101.56 624.25 Td (, based on a discount rate of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 230.53 624.25 Td (10.0%) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 258.88 624.25 Td (.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 601.75 m 500 601.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 601.75 m 508 601.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 601.75 m 563 601.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 587.75 m 500 587.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 587.75 m 563 587.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 494.75 m 500 494.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 481.75 m 500 481.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 479.75 m 500 479.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 494.75 m 563 494.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 481.75 m 563 481.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 479.75 m 563 479.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 421.75 m 500 421.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 408.75 m 500 408.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 406.75 m 500 406.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 421.75 m 563 421.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 408.75 m 563 408.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 406.75 m 563 406.75 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 471.00 605.75 Td (As of December 31,) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 464.20 591.75 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 527.20 591.75 Td (2015) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 578.15 Td (Due from affiliates:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 447.50 578.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 510.50 578.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 564.15 Td (Loans) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 103.90 563.70 Td (.......................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 447.50 564.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 468.95 564.15 Td (19,325) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 510.50 564.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 531.95 564.15 Td (29,718) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 550.15 Td (Amounts due from unconsolidated funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 236.45 549.70 Td (..................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 468.95 550.15 Td (53,573) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 544.45 550.15 Td (777) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 536.15 Td (Management fees and incentive income due from unconsolidated funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 358.95 535.70 Td (.................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.95 536.15 Td (130,708) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 550.50 536.15 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 522.15 Td (Payments made on behalf of unconsolidated entities) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 283.95 521.70 Td (...............................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 473.95 522.15 Td (3,779) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 536.95 522.15 Td (3,788) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 508.15 Td (Non-interest bearing advances made to certain non-controlling interest holders and) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 79.50 499.15 Td (employees) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 131.40 498.70 Td (............................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 473.95 499.15 Td (1,258) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 536.95 499.15 Td (1,616) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.50 485.15 Td (Total due from affiliates) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 186.45 484.70 Td (......................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 447.50 485.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.95 485.15 Td (208,643) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 510.50 485.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 531.95 485.15 Td (35,899) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 463.15 Td (Due to affiliates:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 447.50 463.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 559.50 463.15 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 449.15 Td (Due to OCGH unitholders in connection with the tax receivable agreement \(please see note) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 79.50 440.15 Td (15\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 101.40 439.70 Td (........................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 447.50 440.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.95 440.15 Td (340,966) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 510.50 440.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.95 440.15 Td (356,851) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 426.15 Td (Amounts due to senior executives, certain non-controlling interest holders and employees) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 428.95 425.70 Td (.....) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 473.95 426.15 Td (5,577) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 550.50 426.15 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.50 412.15 Td (Total due to affiliates) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 176.40 411.70 Td (..........................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 447.50 412.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.95 412.15 Td (346,543) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 510.50 412.15 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.95 412.15 Td (356,851) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 382.75 Td (Loans ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.50 366.25 Td (Loans primarily consist of interest-bearing loans made to certain non-controlling interest holders, primarily ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 354.25 Td (certain employees, to meet tax obligations related to vesting of equity awards. ) Tj ET Q q 0 0 0 rg BT 398.95 354.25 Td (The notes, which are generally ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 342.25 Td (recourse to the borrower or secured by vested equity and other collateral, typically bear interest at the Company’) Tj ET Q q 0 0 0 rg BT 546.24 342.25 Td (s ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 330.25 Td (cost of debt and generated interest income of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 252.96 330.25 Td ($906) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 275.21 330.25 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 280.76 330.25 Td ($2,144) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 311.35 330.25 Td ( and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 333.59 330.25 Td ($1,440) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 364.18 330.25 Td ( for the years ended December 31, 2016, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 318.25 Td (2015 and 2014, respectively) Tj ET Q q 0 0 0 rg BT 173.85 318.25 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 292.75 Td (Due From Oaktree Funds and Portfolio Companies ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.50 276.25 Td (In the normal course of business, the Company advances certain expenses on behalf of Oaktree funds. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 264.25 Td (Amounts advanced on behalf of consolidated funds are eliminated in consolidation. Certain expenses paid by the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 252.25 Td (Company) Tj ET Q q 0 0 0 rg BT 91.56 252.25 Td (, which typically are employee travel and other costs associated with particular portfolio company holdings, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 240.25 Td (are reimbursed to the Company by the portfolio companies. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 219.25 Td (In January 2016, the Company extended a short-term loan to one of the investment funds that it manages. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 207.25 Td (The loan and accrued interest were fully repaid as of June 30, 2016.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 186.25 Td (Revenues Earned From Oaktree Funds) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 165.25 Td (Management fees and incentive income earned from unconsolidated Oaktree funds totaled ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 490.19 165.25 Td ($1.0 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.00 165.25 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 153.25 Td ($75.2 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 105.64 153.25 Td ( and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 127.88 153.25 Td ($67.7 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 184.03 153.25 Td ( for the years ended December 31, 2016, 2015 and 2014, respectively) Tj ET Q q 0 0 0 rg BT 493.48 153.25 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 127.75 Td (Other Investment T) Tj ET Q q 0 0 0 rg BT 140.08 127.75 Td (ransactions ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.50 111.25 Td (The Company’) Tj ET Q q 0 0 0 rg BT 144.35 111.25 Td (s senior executives, directors and senior professionals are permitted to invest their own capital ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 99.25 Td (\(or the capital of family trusts or other estate planning vehicles they control\) in Oaktree funds, for which they pay the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 87.25 Td (particular fund’) Tj ET Q q 0 0 0 rg BT 114.91 87.25 Td (s full management fee but not its incentive allocation. ) Tj ET Q q 0 0 0 rg BT 354.87 87.25 Td (T) Tj ET Q q 0 0 0 rg BT 359.87 87.25 Td (o facilitate the funding of capital calls by ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 75.25 Td (funds in which employees are invested, the Company periodically advances on a short-term basis the capital calls ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 63.25 Td (on certain employees’) Tj ET Q q 0 0 0 rg BT 146.40 63.25 Td ( behalf. ) Tj ET Q q 0 0 0 rg BT 184.58 63.25 Td (These advances are reimbursed generally toward the end of the calendar quarter in ) Tj ET Q endstream endobj 371 0 obj <> endobj 372 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (185) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 712.75 Td (which the capital calls occurred. ) Tj ET Q q 0 0 0 rg BT 195.68 712.75 Td (Amounts advanced by the Company are included above in non-interest bearing ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 700.75 Td (advances made to certain non-controlling interest holders and employees.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 675.25 Td (Aircraft Services ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 658.75 Td (In March 2015, the Company exercised a purchase option on an airplane lease for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 452.39 658.75 Td ($12.5 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 508.53 658.75 Td (. Howard ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 646.75 Td (Marks, the Company’) Tj ET Q q 0 0 0 rg BT 143.80 646.75 Td (s co-chairman, may use this aircraft for personal travel, in which case he reimburses the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 634.75 Td (Company) Tj ET Q q 0 0 0 rg BT 91.56 634.75 Td (, pursuant to Company policy as of December 31, 2016. ) Tj ET Q q 0 0 0 rg BT 343.92 634.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 394.32 634.75 Td (, the Company occasionally makes ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 622.75 Td (use of an aircraft owned by one of its senior executives for business purposes at a price to the Company that is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 610.75 Td (based on market rates. In September 2016, the Company entered into a purchase contract and made a deposit for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 598.75 Td (a new corporate aircraft expected to be delivered in 2017, at which time it plans to sell its existing corporate aircraft.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 573.25 Td (Special ) Tj ET Q q 0 0 0 rg BT 86.93 573.25 Td (Allocations ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 556.75 Td (Certain senior executives receive special allocations based on a percentage of profits of the Oaktree ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 544.75 Td (Operating Group. ) Tj ET Q q 0 0 0 rg BT 132.14 544.75 Td (These special allocations, which are recorded as compensation expense, are made on a current ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 532.75 Td (basis for so long as they remain senior executives of the Company) Tj ET Q q 0 0 0 rg BT 343.35 532.75 Td (, with limited exceptions. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 507.25 Td (19. CAPIT) Tj ET Q q 0 0 0 rg BT 95.94 507.25 Td (AL) Tj ET Q q 0 0 0 rg BT 109.09 507.25 Td ( REQUIREMENTS OF REGULA) Tj ET Q q 0 0 0 rg BT 253.35 507.25 Td (TED ENTITIES ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 490.75 Td (One of the Company’) Tj ET Q q 0 0 0 rg BT 174.32 490.75 Td (s indirect subsidiaries is a registered U.S. broker-dealer that is subject to the minimum ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 478.75 Td (net capital requirements of the U.S. Securities and Exchange Commission and the U.S. Financial Industry ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 466.75 Td (Regulatory ) Tj ET Q q 0 0 0 rg BT 100.59 466.75 Td (Authority) Tj ET Q q 0 0 0 rg BT 139.31 466.75 Td (. ) Tj ET Q q 0 0 0 rg BT 147.09 466.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 197.49 466.75 Td (, one of the Company’) Tj ET Q q 0 0 0 rg BT 295.15 466.75 Td (s indirect subsidiaries based in London is subject to the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 454.75 Td (capital requirements of the U.K. Financial Conduct ) Tj ET Q q 0 0 0 rg BT 275.12 454.75 Td (Authority) Tj ET Q q 0 0 0 rg BT 313.84 454.75 Td (, and another based in Hong Kong is subject to the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 442.75 Td (capital requirements of the Hong Kong Securities and Futures Ordinance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.18 442.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 380.18 442.75 Td (These entities operate in excess of their ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 430.75 Td (respective regulatory capital requirements. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 409.75 Td (The regulatory capital requirements referred to above may restrict the Company’) Tj ET Q q 0 0 0 rg BT 434.98 409.75 Td (s ability to withdraw capital ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 397.75 Td (from its entities for purposes such as paying cash distributions or advances to the Company) Tj ET Q q 0 0 0 rg BT 455.02 397.75 Td (. ) Tj ET Q q 0 0 0 rg BT 462.80 397.75 Td (As of December 31, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 385.75 Td (2016 and 2015, respectively) Tj ET Q q 0 0 0 rg BT 174.35 385.75 Td (, there was approximately ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 291.06 385.75 Td ($92.8 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 347.21 385.75 Td ( and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 369.45 385.75 Td ($71.3 million) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 425.59 385.75 Td ( of such potentially restricted ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 373.75 Td (amounts. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 348.25 Td (20. SEGMENT REPORTING ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.50 331.75 Td (The Company’) Tj ET Q q 0 0 0 rg BT 144.35 331.75 Td (s business is comprised of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 264.40 331.75 Td (one) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 281.08 331.75 Td ( segment, the investment management segment. ) Tj ET Q q 0 0 0 rg BT 502.87 331.75 Td (As a global ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 319.75 Td (investment manager) Tj ET Q q 0 0 0 rg BT 139.55 319.75 Td (, the Company provides investment management services through funds and separate ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 307.75 Td (accounts. Management makes operating decisions and assesses business performance based on financial and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 295.75 Td (operating metrics and data that are presented without the consolidation of any funds. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.50 274.75 Td (The Company conducts its investment management business primarily in the United States, where ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 262.75 Td (substantially all of its revenues are generated. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 237.25 Td (Adjusted Net Income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 220.75 Td (The Company’) Tj ET Q q 0 0 0 rg BT 150.35 220.75 Td (s chief operating decision maker uses adjusted net income \(“ANI”\) as a tool to help evaluate ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 208.75 Td (the financial performance of, and make resource allocations and other operating decisions for) Tj ET Q q 0 0 0 rg BT 461.97 208.75 Td (, the investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 196.75 Td (management segment. ) Tj ET Q q 0 0 0 rg BT 157.16 196.75 Td (The components of revenues and expenses used in the determination of ) Tj ET Q q 0 0 0 rg BT 480.14 196.75 Td (ANI do not give ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 184.75 Td (ef) Tj ET Q q 0 0 0 rg BT 57.66 184.75 Td (fect to the consolidation of the funds that the Company manages. Segment revenues include investment income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 172.75 Td (\(loss\) that is classified in other income \(loss\) in the GAAP-basis statements of operations. Segment revenues and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 160.75 Td (expenses also reflect Oaktree’) Tj ET Q q 0 0 0 rg BT 183.83 160.75 Td (s proportionate economic interest in Highstar) Tj ET Q q 0 0 0 rg BT 381.71 160.75 Td (, whereby amounts received for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 148.75 Td (contractually reimbursable costs are classified for segment reporting as expenses and under GAAP) Tj ET Q q 0 0 0 rg BT 488.43 148.75 Td ( as other ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 136.75 Td (income. In addition, ) Tj ET Q q 0 0 0 rg BT 141.22 136.75 Td (ANI excludes the ef) Tj ET Q q 0 0 0 rg BT 227.76 136.75 Td (fect of \(a\) non-cash equity-based compensation expense related to unit ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 124.75 Td (grants made before our initial public of) Tj ET Q q 0 0 0 rg BT 218.86 124.75 Td (fering, \(b\) acquisition-related items, including amortization of intangibles and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 112.75 Td (changes in the contingent consideration liability) Tj ET Q q 0 0 0 rg BT 257.78 112.75 Td (, \(c\) dif) Tj ET Q q 0 0 0 rg BT 288.16 112.75 Td (ferences arising from EVUs that are classified as liability ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 100.75 Td (awards under GAAP) Tj ET Q q 0 0 0 rg BT 140.48 100.75 Td ( but as equity awards for segment reporting, \(d\) income taxes, \(e\) other income or expenses ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 88.75 Td (applicable to OCG or its Intermediate Holding Companies, and \(f\) the adjustment for non-controlling interests. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 76.75 Td (Moreover) Tj ET Q q 0 0 0 rg BT 91.18 76.75 Td (, third-party placement costs associated with closed-end funds under GAAP) Tj ET Q q 0 0 0 rg BT 425.62 76.75 Td ( are expensed as incurred, but ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 64.75 Td (for ) Tj ET Q q 0 0 0 rg BT 63.40 64.75 Td (ANI are capitalized and amortized as general and administrative expense in proportion to the associated ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 52.75 Td (management fee stream. Gains and losses resulting from foreign-currency transactions and hedging activities ) Tj ET Q endstream endobj 373 0 obj <> endobj 374 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (186) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 712.75 Td (under GAAP) Tj ET Q q 0 0 0 rg BT 105.46 712.75 Td ( are recognized as general and administrative expense whether realized or unrealized in the current ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 700.75 Td (period, but for ) Tj ET Q q 0 0 0 rg BT 113.43 700.75 Td (ANI unrealized gains and losses from foreign-currency hedging activities are deferred until realized, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 688.75 Td (at which time they are included in the same revenue or expense line item as the underlying exposure that was ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 676.75 Td (hedged. ) Tj ET Q q 0 0 0 rg BT 90.65 676.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 141.05 676.75 Td (, for ) Tj ET Q q 0 0 0 rg BT 160.51 676.75 Td (ANI, foreign-currency transaction gains and losses are included in other income \(expense\), ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 664.75 Td (net. Incentive income and incentive income compensation expense are included in ) Tj ET Q q 0 0 0 rg BT 419.17 664.75 Td (ANI when the underlying fund ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 652.75 Td (distributions are known or knowable as of the respective quarter end, which may be later than the time at which the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 640.75 Td (same revenue or expense is included in the GAAP-basis statements of operations, for which the revenue standard ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 628.75 Td (is fixed or determinable and the expense standard is probable and reasonably estimable. CLO investments are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 616.75 Td (carried at fair value for GAAP) Tj ET Q q 0 0 0 rg BT 179.37 616.75 Td ( reporting, whereas for segment reporting they are carried at amortized cost, subject to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 604.75 Td (any impairment charges. Investment income on CLO investments is recognized in ) Tj ET Q q 0 0 0 rg BT 416.34 604.75 Td (ANI when cash distributions are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 592.75 Td (received. Cash distributions are allocated between income and return of capital based on the ef) Tj ET Q q 0 0 0 rg BT 473.46 592.75 Td (fective yield ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 580.75 Td (method. ) Tj ET Q q 0 0 0 rg BT 90.64 580.75 Td (ANI is calculated at the Operating Group level.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 559.75 Td (ANI was as follows: ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375 537.25 m 432 537.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432 537.25 m 440 537.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 440 537.25 m 497 537.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 537.25 m 505 537.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 537.25 m 562 537.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375 537.25 m 432 537.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375 523.25 m 432 523.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432 537.25 m 440 537.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 440 537.25 m 497 537.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 440 523.25 m 497 523.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 537.25 m 505 537.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 537.25 m 562 537.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 523.25 m 562 523.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375 467.25 m 432 467.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375 453.25 m 432 453.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 440 467.25 m 497 467.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 440 453.25 m 497 453.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 467.25 m 562 467.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 453.25 m 562 453.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375 369.25 m 432 369.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375 355.25 m 432 355.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 440 369.25 m 497 369.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 440 355.25 m 497 355.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 369.25 m 562 369.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 355.25 m 562 355.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375 312.25 m 432 312.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375 299.25 m 432 299.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375 297.25 m 432 297.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 440 312.25 m 497 312.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 440 299.25 m 497 299.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 440 297.25 m 497 297.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 312.25 m 562 312.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 299.25 m 562 299.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 297.25 m 562 297.25 l s BT /F1 4.00 Tf ET q 0 0 0 rg BT 52.50 540.63 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 425.20 541.25 Td (Year Ended December 31,) Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 52.50 526.63 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 395.20 527.25 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 460.20 527.25 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 525.20 527.25 Td (2014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 513.65 Td (Revenues:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 428.50 513.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 493.50 513.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.50 513.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 499.65 Td (Management fees) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 148.95 499.20 Td (.........................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 377.50 499.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 395.95 499.65 Td (785,673) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 442.50 499.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 460.95 499.65 Td (753,805) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 507.50 499.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.95 499.65 Td (762,823) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 485.65 Td (Incentive income) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 143.95 485.20 Td (...........................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 395.95 485.65 Td (355,152) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 460.95 485.65 Td (263,806) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.95 485.65 Td (491,402) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 471.65 Td (Investment income) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 151.45 471.20 Td (........................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 395.95 471.65 Td (221,377) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 465.95 471.65 Td (48,253) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.95 471.65 Td (117,662) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.50 457.65 Td (Total revenues) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 151.45 457.20 Td (........................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 388.45 457.65 Td (1,362,202) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 453.45 457.65 Td (1,065,864) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 518.45 457.65 Td (1,371,887) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 443.65 Td (Expenses:) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 377.50 443.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 442.50 443.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.50 443.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 429.65 Td (Compensation and benefits) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 183.95 429.20 Td (...........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 392.95 429.65 Td (\(381,937) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 428.50 429.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 457.95 429.65 Td (\(404,442) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 493.50 429.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.95 429.65 Td (\(379,360) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.50 429.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 415.65 Td (Equity-based compensation) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 186.45 415.20 Td (..........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 397.95 415.65 Td (\(51,759) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 428.50 415.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.95 415.65 Td (\(37,978) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 493.50 415.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 527.95 415.65 Td (\(19,705) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.50 415.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 401.65 Td (Incentive income compensation) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 201.45 401.20 Td (....................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 392.95 401.65 Td (\(169,683) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 428.50 401.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 457.95 401.65 Td (\(141,822) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 493.50 401.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.95 401.65 Td (\(231,871) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.50 401.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 387.65 Td (General and administrative) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 183.95 387.20 Td (...........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 392.95 387.65 Td (\(123,784) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 428.50 387.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 457.95 387.65 Td (\(120,783) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 493.50 387.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.95 387.65 Td (\(127,954) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.50 387.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 373.65 Td (Depreciation and amortization) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 193.95 373.20 Td (.......................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 397.95 373.65 Td (\(12,219) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 428.50 373.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.95 373.65 Td (\(10,018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 493.50 373.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 532.95 373.65 Td (\(7,249) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.50 373.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 88.50 359.65 Td (Total expenses) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 153.95 359.20 Td (.......................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 392.95 359.65 Td (\(739,382) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 428.50 359.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 457.95 359.65 Td (\(715,043) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 493.50 359.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.95 359.65 Td (\(766,139) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.50 359.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 344.65 Td (Adjusted net income before interest and other income \(expense\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 311.45 344.20 Td (........................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 395.95 344.65 Td (622,820) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 460.95 344.65 Td (350,821) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.95 344.65 Td (605,748) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 330.65 Td (Interest expense, net of interest income ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 230.59 334.94 Td (\(1\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 241.45 330.20 Td (....................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 397.95 330.65 Td (\(31,845) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 428.50 330.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.95 330.65 Td (\(35,032) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 493.50 330.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 527.95 330.65 Td (\(30,190) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.50 330.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 316.65 Td (Other income \(expense\), net) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 188.95 316.20 Td (.........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 402.95 316.65 Td (\(8,392) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 428.50 316.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 467.95 316.65 Td (\(3,927) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 493.50 316.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 532.95 316.65 Td (\(2,431) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.50 316.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 302.65 Td (Adjusted net income) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 138.95 302.20 Td (.............................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 377.50 302.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 395.95 302.65 Td (582,583) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 442.50 302.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 460.95 302.65 Td (311,862) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 507.50 302.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.95 302.65 Td (573,127) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 284.25 m 150 284.25 l s BT /F1 10.00 Tf ET BT /F3 9.00 Tf ET q 0 0 0 rg BT 49.50 270.95 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 72.00 270.95 Td (Interest income was ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 154.53 270.95 Td ($6.6 million) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 200.06 270.95 Td (, ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 205.06 270.95 Td ($5.1 million) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 250.58 270.95 Td ( and ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 270.60 270.95 Td ($3.6 million) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 316.12 270.95 Td ( for the years ended December 31, 2016, 2015 and 2014, ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 260.15 Td (respectively) Tj ET Q q 0 0 0 rg BT 118.85 260.15 Td (.) Tj ET Q endstream endobj 375 0 obj <> endobj 376 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (187) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.50 712.75 Td (A) Tj ET Q q 0 0 0 rg BT 85.62 712.75 Td ( reconciliation of net income attributable to Oaktree Capital Group, LLC to adjusted net income of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 700.75 Td (investment management segment is presented below) Tj ET Q q 0 0 0 rg BT 285.75 700.75 Td (. ) Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 291.30 700.75 Td ( ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 678.25 m 431.5 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 678.25 m 439.5 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 678.25 m 496.5 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 678.25 m 504.5 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504.5 678.25 m 561.5 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 678.25 m 431.5 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 664.25 m 431.5 664.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 678.25 m 439.5 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 678.25 m 496.5 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 664.25 m 496.5 664.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 678.25 m 504.5 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504.5 678.25 m 561.5 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504.5 664.25 m 561.5 664.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 664.25 m 431.5 664.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 664.25 m 496.5 664.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504.5 664.25 m 561.5 664.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 507.25 m 431.5 507.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 494.25 m 431.5 494.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 492.25 m 431.5 492.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 507.25 m 496.5 507.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 494.25 m 496.5 494.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 492.25 m 496.5 492.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504.5 507.25 m 561.5 507.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504.5 494.25 m 561.5 494.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504.5 492.25 m 561.5 492.25 l s BT /F1 4.00 Tf ET q 0 0 0 rg BT 52.00 681.63 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 424.70 682.25 Td (Year Ended December 31,) Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 52.00 667.63 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 394.70 668.25 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 459.70 668.25 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 524.70 668.25 Td (2014) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 651.65 Td (Net income attributable to Oaktree Capital Group, LLC) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 270.95 651.20 Td (........................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 377.00 651.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 395.45 651.65 Td (194,705) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 442.00 651.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 465.45 651.65 Td (71,349) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 507.00 651.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 651.65 Td (126,283) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 637.65 Td (Incentive income ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 140.04 641.94 Td (\(1\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 147.18 637.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 153.45 637.20 Td (.......................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 405.45 637.65 Td (1,407) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.45 637.65 Td (\(19,002) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 493.00 637.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 637.65 Td (28,813) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 623.65 Td (Incentive income compensation ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 198.57 627.94 Td (\(1\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 205.72 623.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 210.95 623.20 Td (................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 402.45 623.65 Td (\(1,407) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 428.00 623.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 465.45 623.65 Td (19,009) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 527.45 623.65 Td (\(10,677) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 623.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 609.65 Td (Investment income ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 148.03 613.94 Td (\(2\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 155.18 609.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 160.95 609.20 Td (....................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 397.45 609.65 Td (\(21,814) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 428.00 609.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 484.00 609.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 549.00 609.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 595.65 Td (Equity-based compensation ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 183.57 599.94 Td (\(3\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 190.72 595.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 195.95 595.20 Td (......................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 400.45 595.65 Td (11,965) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 465.45 595.65 Td (16,403) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 595.65 Td (21,690) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 581.65 Td (Placement costs ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 138.53 585.94 Td (\(4\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 145.68 581.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 150.95 581.20 Td (........................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 400.45 581.65 Td (11,870) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 470.45 581.65 Td (3,619) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 549.00 581.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 567.65 Td (Foreign-currency hedging ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 175.06 571.94 Td (\(5\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 182.20 567.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 185.95 567.20 Td (..........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 405.45 567.65 Td (1,496) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 470.45 567.65 Td (2,619) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 532.45 567.65 Td (\(2,003) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 567.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 553.65 Td (Acquisition-related items ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 170.54 557.94 Td (\(6\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 177.69 553.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 183.45 553.20 Td (...........................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 409.95 553.65 Td (\(924) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 428.00 553.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 470.45 553.65 Td (5,251) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 553.65 Td (2,442) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 539.65 Td (Income taxes ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 126.03 543.94 Td (\(7\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 133.17 539.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 138.45 539.20 Td (.............................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 400.45 539.65 Td (42,519) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 465.45 539.65 Td (17,549) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 539.65 Td (18,536) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 525.65 Td (Non-Operating Group expenses ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 200.07 529.94 Td (\(8\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 207.22 525.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 210.95 525.20 Td (................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 405.45 525.65 Td (1,176) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 470.45 525.65 Td (2,097) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 525.65 Td (1,645) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.00 511.65 Td (Non-controlling interests ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 169.54 515.94 Td (\(8\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 176.69 511.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 180.95 511.20 Td (............................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 395.45 511.65 Td (341,590) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 460.45 511.65 Td (192,968) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 511.65 Td (386,398) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 497.65 Td (Adjusted net income) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 138.45 497.20 Td (.............................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 377.00 497.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 395.45 497.65 Td (582,583) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 442.00 497.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 460.45 497.65 Td (311,862) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 507.00 497.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 497.65 Td (573,127) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 479.25 m 150 479.25 l s BT /F1 10.00 Tf ET BT /F3 9.00 Tf ET q 0 0 0 rg BT 49.50 465.95 Td (\(1\) ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 465.95 Td (This adjustment adds back the ef) Tj ET Q q 0 0 0 rg BT 203.91 465.95 Td (fect of timing dif) Tj ET Q q 0 0 0 rg BT 266.77 465.95 Td (ferences associated with the recognition of incentive income and incentive ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 455.15 Td (income compensation expense between adjusted net income and net income attributable to OCG. ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 49.50 444.35 Td (\(2\) ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 444.35 Td (This adjustment adds back the ef) Tj ET Q q 0 0 0 rg BT 203.91 444.35 Td (fect of dif) Tj ET Q q 0 0 0 rg BT 240.27 444.35 Td (ferences in the recognition of investment income related to corporate ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 433.55 Td (investments in CLOs, which under GAAP) Tj ET Q q 0 0 0 rg BT 235.91 433.55 Td ( are marked-to-market but for segment reporting are accounted for at amortized ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 422.75 Td (cost, subject to impairment.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 49.50 411.95 Td (\(3\) ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 411.95 Td (This adjustment adds back the ef) Tj ET Q q 0 0 0 rg BT 203.91 411.95 Td (fect of \(a\) equity-based compensation expense related to unit grants made before our ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 401.15 Td (initial public of) Tj ET Q q 0 0 0 rg BT 128.37 401.15 Td (fering, which is excluded from adjusted net income and fee-related earnings because it is a non-cash charge ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 390.35 Td (that does not af) Tj ET Q q 0 0 0 rg BT 133.88 390.35 Td (fect our financial position, and \(b\) dif) Tj ET Q q 0 0 0 rg BT 278.30 390.35 Td (ferences arising from EVUs that are classified as liability awards under ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 379.55 Td (GAAP) Tj ET Q q 0 0 0 rg BT 96.85 379.55 Td ( but as equity awards for segment reporting.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 49.50 368.75 Td (\(4\) ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 368.75 Td (This adjustment adds back the ef) Tj ET Q q 0 0 0 rg BT 203.91 368.75 Td (fect of timing dif) Tj ET Q q 0 0 0 rg BT 266.77 368.75 Td (ferences with respect to the recognition of third-party placement costs ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 357.95 Td (associated with closed-end funds between adjusted net income and net income attributable to OCG.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 49.50 347.15 Td (\(5\) ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 347.15 Td (This adjustment adds back the ef) Tj ET Q q 0 0 0 rg BT 203.91 347.15 Td (fect of timing dif) Tj ET Q q 0 0 0 rg BT 266.77 347.15 Td (ferences associated with the recognition of unrealized gains and losses ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 336.35 Td (related to foreign-currency hedging between adjusted net income and net income attributable to OCG.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 49.50 325.55 Td (\(6\) ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 325.55 Td (This adjustment adds back the ef) Tj ET Q q 0 0 0 rg BT 203.91 325.55 Td (fect of acquisition-related items associated with the amortization of intangibles and ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 314.75 Td (changes in the contingent consideration liability) Tj ET Q q 0 0 0 rg BT 259.45 314.75 Td (, which are excluded from adjusted net income.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 49.50 303.95 Td (\(7\) ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 303.95 Td (Because adjusted net income and fee-related earnings are pre-tax measures, this adjustment adds back the ef) Tj ET Q q 0 0 0 rg BT 512.09 303.95 Td (fect of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 293.15 Td (income tax expense.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 49.50 282.35 Td (\(8\) ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 282.35 Td (Because adjusted net income and fee-related earnings are calculated at the Operating Group level, this adjustment adds ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 271.55 Td (back the ef) Tj ET Q q 0 0 0 rg BT 115.87 271.55 Td (fect of items applicable to OCG, its Intermediate Holding Companies or non-controlling interests.) Tj ET Q endstream endobj 377 0 obj <> endobj 378 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (188) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.50 712.75 Td (The following tables reconcile the Company’) Tj ET Q q 0 0 0 rg BT 274.98 712.75 Td (s segment information to the consolidated financial statements:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 678.25 m 418 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 678.25 m 426 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426 678.25 m 490 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490 678.25 m 498 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 678.25 m 562 678.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 663.25 m 418 663.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426 663.25 m 490 663.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 663.25 m 562 663.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 663.25 m 418 663.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426 663.25 m 490 663.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 663.25 m 562 663.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 511.25 m 418 511.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 489.25 m 418 489.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 487.25 m 418 487.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426 511.25 m 490 511.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426 489.25 m 490 489.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426 487.25 m 490 487.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 511.25 m 562 511.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 489.25 m 562 489.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 487.25 m 562 487.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 475.25 m 418 475.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 473.25 m 418 473.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426 475.25 m 490 475.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426 473.25 m 490 473.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 475.25 m 562 475.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 473.25 m 562 473.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 461.25 m 418 461.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 459.25 m 418 459.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426 461.25 m 490 461.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426 459.25 m 490 459.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 461.25 m 562 461.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 459.25 m 562 459.25 l s BT /F1 4.00 Tf ET q 0 0 0 rg BT 52.50 681.63 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 379.90 682.25 Td (As of or for the Year Ended December 31, 2016) Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 52.50 666.63 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 370.70 667.25 Td (Segment) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 436.30 667.25 Td (Adjustments) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 507.30 667.25 Td (Consolidated) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 650.65 Td (Management fees ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 127.04 654.94 Td (\(1\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 134.19 650.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 140.45 650.20 Td (....................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 356.50 650.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 381.95 650.65 Td (785,673) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 428.50 650.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 455.95 650.65 Td (\(11,086) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 486.50 650.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.50 650.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.95 650.65 Td (774,587) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 636.65 Td (Incentive income ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 122.54 640.94 Td (\(1\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 129.68 636.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 135.45 636.20 Td (......................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 381.95 636.65 Td (355,152) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 460.95 636.65 Td (\(3,993) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 486.50 636.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.95 636.65 Td (351,159) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 622.65 Td (Investment income ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 130.53 626.94 Td (\(1\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 137.68 622.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 142.95 622.20 Td (...................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 381.95 622.65 Td (221,377) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 455.95 622.65 Td (\(22,251) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 486.50 622.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.95 622.65 Td (199,126) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 608.65 Td (T) Tj ET Q q 0 0 0 rg BT 57.00 608.65 Td (otal expenses ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 115.04 612.94 Td (\(2\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 122.19 608.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 127.95 608.20 Td (.........................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 378.95 608.65 Td (\(739,382) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 414.50 608.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 455.95 608.65 Td (\(49,954) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 486.50 608.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.95 608.65 Td (\(789,336) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.50 608.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 594.65 Td (Interest expense, net ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 139.05 598.94 Td (\(3\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 146.20 594.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 150.45 594.20 Td (................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 383.95 594.65 Td (\(31,845) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 414.50 594.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 455.95 594.65 Td (\(88,765) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 486.50 594.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.95 594.65 Td (\(120,610) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.50 594.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 580.65 Td (Other income \(expense\), net ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 169.06 584.94 Td (\(4\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 176.20 580.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 180.45 580.20 Td (....................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 388.95 580.65 Td (\(8,392) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 414.50 580.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 458.95 580.65 Td (21,882) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.95 580.65 Td (13,490) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 566.65 Td (Other income of consolidated funds ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 196.58 570.94 Td (\(5\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 203.73 566.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 207.95 566.20 Td (.........................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 405.50 566.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 453.95 566.65 Td (180,206) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.95 566.65 Td (180,206) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 552.65 Td (Income taxes) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 112.95 552.20 Td (...............................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 405.50 552.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 455.95 552.65 Td (\(42,519) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 486.50 552.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 527.95 552.65 Td (\(42,519) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.50 552.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 538.65 Td (Net income attributable to non-controlling interests in consolidated funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 340.45 538.20 Td (....) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 405.50 538.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 455.95 538.65 Td (\(22,921) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 486.50 538.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 527.95 538.65 Td (\(22,921) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.50 538.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 524.65 Td (Net income attributable to non-controlling interests in consolidated) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 61.50 515.65 Td (subsidiaries) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 115.45 515.20 Td (..............................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 405.50 515.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 450.95 515.65 Td (\(348,477) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 486.50 515.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.95 515.65 Td (\(348,477) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.50 515.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 501.65 Td (Adjusted net income/net income attributable to Oaktree Capital Group,) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 61.50 492.65 Td (LLC) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 85.40 492.20 Td (..........................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 356.50 492.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 381.95 492.65 Td (582,583) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 428.50 492.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 450.95 492.65 Td (\(387,878) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 486.50 492.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.50 492.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.95 492.65 Td (194,705) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 478.65 Td (Corporate investments ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 145.54 482.94 Td (\(6\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 152.69 478.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 157.95 478.20 Td (.............................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 356.50 478.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 374.45 478.65 Td (1,480,928) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 428.50 478.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 450.95 478.65 Td (\(357,196) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 486.50 478.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.50 478.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 518.45 478.65 Td (1,123,732) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 464.65 Td (T) Tj ET Q q 0 0 0 rg BT 57.00 464.65 Td (otal assets ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 102.52 468.94 Td (\(7\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 109.67 464.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 115.45 464.20 Td (..............................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 356.50 464.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 374.45 464.65 Td (3,313,714) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 428.50 464.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 446.45 464.65 Td (4,335,396) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.50 464.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 518.45 464.65 Td (7,649,110) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 446.25 m 150 446.25 l s BT /F1 10.00 Tf ET BT /F3 9.00 Tf ET q 0 0 0 rg BT 49.50 432.95 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 72.00 432.95 Td (The adjustment represents \(a\) the elimination of amounts earned from the consolidated funds, \(b\) for management fees, ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 422.15 Td (the reclassification of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 158.54 422.15 Td ($408) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 178.56 422.15 Td ( of net gains related to foreign-currency hedging activities to general and administrative expense ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 411.35 Td (and \(c\) for investment income, dif) Tj ET Q q 0 0 0 rg BT 204.89 411.35 Td (ferences of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 251.92 411.35 Td ($21,814) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 284.45 411.35 Td ( related to corporate investments in CLOs, which under GAAP) Tj ET Q q 0 0 0 rg BT 531.40 411.35 Td ( are ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 400.55 Td (marked-to-market but for segment reporting accounted for at amortized cost, subject to impairment.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 49.50 389.75 Td (\(2\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 60.50 389.75 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 389.75 Td (The expense adjustment consists of \(a\) equity-based compensation expense of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 390.68 389.75 Td ($13,627) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 423.22 389.75 Td ( related to unit grants made before ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 378.95 Td (the Company’) Tj ET Q q 0 0 0 rg BT 127.37 378.95 Td (s initial public of) Tj ET Q q 0 0 0 rg BT 190.74 378.95 Td (fering, \(b\) consolidated fund expenses of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 355.84 378.95 Td ($4,428) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 383.37 378.95 Td (, \(c\) expenses incurred by the Intermediate ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 368.15 Td (Holding Companies of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 163.05 368.15 Td ($1,051) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 190.58 368.15 Td (, \(d\) the ef) Tj ET Q q 0 0 0 rg BT 231.43 368.15 Td (fect of timing dif) Tj ET Q q 0 0 0 rg BT 294.30 368.15 Td (ferences in the recognition of incentive income compensation ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 357.35 Td (expense between adjusted net income and net income attributable to OCG of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 382.19 357.35 Td ($1,407) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 409.72 357.35 Td (, \(e\) acquisition-related items of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 537.77 357.35 Td ($924) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 557.79 357.35 Td (, ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 346.55 Td (\(f\) adjustments of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 144.03 346.55 Td ($21,194) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 176.56 346.55 Td ( related to amounts received for contractually reimbursable costs that are classified as expenses ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 335.75 Td (for segment reporting and as other income under GAAP) Tj ET Q q 0 0 0 rg BT 293.46 335.75 Td (, \(g\) dif) Tj ET Q q 0 0 0 rg BT 321.31 335.75 Td (ferences of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 368.33 335.75 Td ($1,661) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 395.86 335.75 Td ( arising from EVUs that are classified as ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 324.95 Td (liability awards under GAAP) Tj ET Q q 0 0 0 rg BT 183.39 324.95 Td ( but as equity awards for segment reporting, \(h\) ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 374.98 324.95 Td ($1) Tj ET Q q 0 0 0 rg BT 384.32 324.95 Td (1,870) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 406.85 324.95 Td ( related to third-party placement costs, ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 314.15 Td (and \(i\) ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 100.01 314.15 Td ($1,776) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 127.54 314.15 Td ( of net losses related to foreign-currency hedging activities.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 49.50 303.35 Td (\(3\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 60.50 303.35 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 303.35 Td (The interest expense adjustment represents the inclusion of interest expense attributable to third-party investors in CLOs, ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 292.55 Td (non-controlling interests of the consolidated funds and the exclusion of segment interest income. ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 49.50 281.75 Td (\(4\) ) Tj ET Q q 0 0 0 rg BT 72.00 281.75 Td (The adjustment to other income \(expense\), net represents adjustments related to \(a\) amounts received for contractually ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 270.95 Td (reimbursable costs of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 160.04 270.95 Td ($21,194) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 192.57 270.95 Td ( that are classified as expenses for segment reporting and as other income under GAAP) Tj ET Q q 0 0 0 rg BT 542.10 270.95 Td (, and ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 260.15 Td (\(b\) the reclassification of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 172.04 260.15 Td ($688) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 192.06 260.15 Td ( of net losses related to foreign-currency hedging activities to general and administrative ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 249.35 Td (expense.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 49.50 238.55 Td (\(5\) ) Tj ET Q q 0 0 0 rg BT 72.00 238.55 Td (The adjustment to other income of consolidated funds primarily represents the inclusion of interest, dividend and other ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 227.75 Td (investment income attributable to third-party investors in CLOs and non-controlling interests of the consolidated funds. ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 49.50 216.95 Td (\(6\) ) Tj ET Q q 0 0 0 rg BT 72.00 216.95 Td (The adjustment to corporate investments is to remove from segment assets the Company’) Tj ET Q q 0 0 0 rg BT 430.50 216.95 Td (s investments in the ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 206.15 Td (consolidated funds, including investments that are treated as equity- or cost-method investments for segment reporting. ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 195.35 Td (The ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 90.01 195.35 Td ($1.5 billion) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 133.04 195.35 Td ( of corporate investments included ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 272.61 195.35 Td ($1.2 billion) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 315.65 195.35 Td ( of equity-method investments.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 49.50 184.55 Td (\(7\) ) Tj ET Q q 0 0 0 rg BT 72.00 184.55 Td (The total assets adjustment represents the inclusion of investments and other assets of the consolidated funds, net of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 173.75 Td (segment assets eliminated in consolidation, which are primarily corporate investments in funds and incentive income ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 162.95 Td (receivable.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 141.35 Td ( ) Tj ET Q endstream endobj 379 0 obj <> endobj 380 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (189) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 707.5 m 418 707.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 707.5 m 426 707.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426 707.5 m 490 707.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490 707.5 m 498 707.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 707.5 m 562 707.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 692.5 m 418 692.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426 692.5 m 490 692.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 692.5 m 562 692.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 692.5 m 418 692.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426 692.5 m 490 692.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 692.5 m 562 692.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 541.5 m 418 541.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 519.5 m 418 519.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 517.5 m 418 517.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426 541.5 m 490 541.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426 519.5 m 490 519.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426 517.5 m 490 517.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 541.5 m 562 541.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 519.5 m 562 519.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 517.5 m 562 517.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 505.5 m 418 505.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 503.5 m 418 503.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426 505.5 m 490 505.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426 503.5 m 490 503.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 505.5 m 562 505.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 503.5 m 562 503.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 491.5 m 418 491.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 489.5 m 418 489.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426 491.5 m 490 491.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426 489.5 m 490 489.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 491.5 m 562 491.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 489.5 m 562 489.5 l s BT /F1 4.00 Tf ET q 0 0 0 rg BT 52.50 710.88 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 379.90 711.50 Td (As of or for the Year Ended December 31, 2015) Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 52.50 695.88 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 370.70 696.50 Td (Segment) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 436.30 696.50 Td (Adjustments) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 507.30 696.50 Td (Consolidated) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 680.90 Td (Management fees ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 127.04 685.19 Td (\(1\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 134.19 680.90 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 140.45 680.45 Td (....................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 356.50 680.90 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 381.95 680.90 Td (753,805) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 428.50 680.90 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 450.95 680.90 Td (\(558,497) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 486.50 680.90 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.50 680.90 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.95 680.90 Td (195,308) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 666.90 Td (Incentive income ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 122.54 671.19 Td (\(1\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 129.68 666.90 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 135.45 666.45 Td (......................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 381.95 666.90 Td (263,806) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 450.95 666.90 Td (\(257,209) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 486.50 666.90 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.95 666.90 Td (6,597) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 652.90 Td (Investment income ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 130.53 657.19 Td (\(1\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 137.68 652.90 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 142.95 652.45 Td (...................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 386.95 652.90 Td (48,253) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.95 652.90 Td (3,705) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.95 652.90 Td (51,958) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 638.90 Td (T) Tj ET Q q 0 0 0 rg BT 57.00 638.90 Td (otal expenses ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 115.04 643.19 Td (\(2\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 122.19 638.90 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 127.95 638.45 Td (.........................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 378.95 638.90 Td (\(715,043) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 414.50 638.90 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 450.95 638.90 Td (\(225,865) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 486.50 638.90 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.95 638.90 Td (\(940,908) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.50 638.90 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 624.90 Td (Interest expense, net ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 139.05 629.19 Td (\(3\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 146.20 624.90 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 150.45 624.45 Td (................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 383.95 624.90 Td (\(35,032) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 414.50 624.90 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 450.95 624.90 Td (\(181,767) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 486.50 624.90 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.95 624.90 Td (\(216,799) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.50 624.90 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 610.90 Td (Other income \(expense\), net ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 169.06 615.19 Td (\(4\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 176.20 610.90 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 180.45 610.45 Td (....................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 388.95 610.90 Td (\(3,927) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 414.50 610.90 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 458.95 610.90 Td (23,933) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.95 610.90 Td (20,006) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 596.90 Td (Other income \(loss\) of consolidated funds ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 221.08 601.19 Td (\(5\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 228.23 596.90 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 232.95 596.45 Td (...............................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 405.50 596.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 450.95 596.90 Td (\(631,575) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 486.50 596.90 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.95 596.90 Td (\(631,575) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.50 596.90 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 582.90 Td (Income taxes) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 112.95 582.45 Td (...............................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 405.50 582.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 455.95 582.90 Td (\(17,549) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 486.50 582.90 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 527.95 582.90 Td (\(17,549) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.50 582.90 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 568.90 Td (Net loss attributable to non-controlling interests in consolidated funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 327.95 568.45 Td (.........) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 405.50 568.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 446.45 568.90 Td (1,809,683) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 518.45 568.90 Td (1,809,683) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 554.90 Td (Net income attributable to non-controlling interests in consolidated) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 61.50 545.90 Td (subsidiaries) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 115.45 545.45 Td (..............................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 405.50 545.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 450.95 545.90 Td (\(205,372) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 486.50 545.90 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.95 545.90 Td (\(205,372) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.50 545.90 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 531.90 Td (Adjusted net income/net income attributable to Oaktree Capital Group,) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 61.50 522.90 Td (LLC) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 85.40 522.45 Td (..........................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 356.50 522.90 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 381.95 522.90 Td (311,862) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 428.50 522.90 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 450.95 522.90 Td (\(240,513) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 486.50 522.90 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.50 522.90 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.95 522.90 Td (71,349) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 508.90 Td (Corporate investments ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 145.54 513.19 Td (\(6\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 152.69 508.90 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 157.95 508.45 Td (.............................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 356.50 508.90 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 374.45 508.90 Td (1,434,109) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 428.50 508.90 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 443.45 508.90 Td (\(1,220,121) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 486.50 508.90 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.50 508.90 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.95 508.90 Td (213,988) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 494.90 Td (T) Tj ET Q q 0 0 0 rg BT 57.00 494.90 Td (otal assets ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 102.52 499.19 Td (\(7\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 109.67 494.90 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 115.45 494.45 Td (..............................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 356.50 494.90 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 374.45 494.90 Td (3,254,082) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 428.50 494.90 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 441.45 494.90 Td (48,508,649) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.50 494.90 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 513.45 494.90 Td (51,762,731) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 476.5 m 150 476.5 l s BT /F1 10.00 Tf ET BT /F3 9.00 Tf ET q 0 0 0 rg BT 49.50 463.20 Td (\(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 60.50 463.20 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 463.20 Td (The adjustment represents \(a\) the elimination of amounts attributable to the consolidated funds and \(b\) for management ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 452.40 Td (fees, the reclassification of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 180.55 452.40 Td ($12,676) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 213.09 452.40 Td ( of net gains related to foreign-currency hedging activities to general and administrative ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 441.60 Td (expense. ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 49.50 430.80 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 72.00 430.80 Td (The expense adjustment consists of \(a\) equity-based compensation expense of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 390.68 430.80 Td ($16,475) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 423.22 430.80 Td ( related to unit grants made before ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 420.00 Td (the Company’) Tj ET Q q 0 0 0 rg BT 127.37 420.00 Td (s initial public of) Tj ET Q q 0 0 0 rg BT 190.74 420.00 Td (fering, \(b\) consolidated fund expenses of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 355.84 420.00 Td ($165,904) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 393.38 420.00 Td (, \(c\) expenses incurred by the ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 409.20 Td (Intermediate Holding Companies of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 215.58 409.20 Td ($1,690) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 243.11 409.20 Td ( and \(d\) the ef) Tj ET Q q 0 0 0 rg BT 298.98 409.20 Td (fect of timing dif) Tj ET Q q 0 0 0 rg BT 361.84 409.20 Td (ferences in the recognition of incentive income ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 398.40 Td (compensation expense between adjusted net income and net income attributable to OCG of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 440.73 398.40 Td ($19,009) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 473.26 398.40 Td (, \(e\) acquisition-) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 387.60 Td (related items of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 136.03 387.60 Td ($5,251) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 163.56 387.60 Td (, \(f\) adjustments of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 240.58 387.60 Td ($23,552) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 273.12 387.60 Td ( related to amounts received for contractually reimbursable costs that ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 376.80 Td (are classified as expenses for segment reporting and as other income under GAAP) Tj ET Q q 0 0 0 rg BT 401.52 376.80 Td (, \(g\) dif) Tj ET Q q 0 0 0 rg BT 429.36 376.80 Td (ferences of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 476.39 376.80 Td ($72) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 491.41 376.80 Td ( arising from ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 366.00 Td (EVUs that are classified as liability awards under GAAP) Tj ET Q q 0 0 0 rg BT 293.44 366.00 Td ( but as equity awards for segment reporting, \(g\) ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 485.03 366.00 Td ($9,676) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 512.56 366.00 Td ( of net gains ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 355.20 Td (related to foreign-currency hedging activities, and \(i\) other expenses of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 355.65 355.20 Td ($1) Tj ET Q q 0 0 0 rg BT 365.00 355.20 Td (13) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 375.01 355.20 Td (.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 49.50 344.40 Td (\(3\) ) Tj ET Q q 0 0 0 rg BT 70.34 344.40 Td (The interest expense adjustment represents the inclusion of interest expense attributable to third-party investors in CLOs, ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 333.60 Td (non-controlling interests of the consolidated funds and the exclusion of segment interest income. ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 49.50 322.80 Td (\(4\) ) Tj ET Q q 0 0 0 rg BT 72.00 322.80 Td (The adjustment to other income \(expense\), net represents adjustments related to \(a\) amounts received for contractually ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 312.00 Td (reimbursable costs of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 160.04 312.00 Td ($23,552) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 192.57 312.00 Td ( that are classified as expenses for segment reporting and as other income under GAAP) Tj ET Q q 0 0 0 rg BT 542.10 312.00 Td (, and ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 301.20 Td (\(b\) the reclassification of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 172.04 301.20 Td ($381) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 192.06 301.20 Td ( of net losses related to foreign-currency hedging activities to general and administrative ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 290.40 Td (expense.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 49.50 279.60 Td (\(5\) ) Tj ET Q q 0 0 0 rg BT 72.00 279.60 Td (The adjustment to other income of consolidated funds primarily represents the inclusion of interest, dividend and other ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 268.80 Td (investment income attributable to third-party investors in CLOs and non-controlling interests of the consolidated funds. ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 49.50 258.00 Td (\(6\) ) Tj ET Q q 0 0 0 rg BT 72.00 258.00 Td (The adjustment to corporate investments is to remove from segment assets the Company’) Tj ET Q q 0 0 0 rg BT 430.50 258.00 Td (s investments in the ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 247.20 Td (consolidated funds that are treated as equity- or cost-method investments for segment reporting. ) Tj ET Q q 0 0 0 rg BT 460.54 247.20 Td (The ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 478.55 247.20 Td ($1.4 billion) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 521.58 247.20 Td ( of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 236.40 Td (corporate investments included ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 199.07 236.40 Td ($1.3 billion) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 242.10 236.40 Td ( of equity-method investments.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 49.50 225.60 Td (\(7\) ) Tj ET Q q 0 0 0 rg BT 72.00 225.60 Td (The total assets adjustment represents the inclusion of investments and other assets of the consolidated funds, net of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 214.80 Td (segment assets eliminated in consolidation, which are primarily corporate investments in funds and incentive income ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 204.00 Td (receivable. ) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 49.50 190.80 Td ( ) Tj ET Q endstream endobj 381 0 obj <> endobj 382 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (190) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 707.5 m 417.5 707.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 707.5 m 425.5 707.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425.5 707.5 m 489.5 707.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489.5 707.5 m 497.5 707.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 707.5 m 561.5 707.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 692.5 m 417.5 692.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425.5 692.5 m 489.5 692.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 692.5 m 561.5 692.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 692.5 m 417.5 692.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425.5 692.5 m 489.5 692.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 692.5 m 561.5 692.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 541.5 m 417.5 541.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 519.5 m 417.5 519.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 517.5 m 417.5 517.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425.5 541.5 m 489.5 541.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425.5 519.5 m 489.5 519.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425.5 517.5 m 489.5 517.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 541.5 m 561.5 541.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 519.5 m 561.5 519.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 517.5 m 561.5 517.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 505.5 m 417.5 505.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 503.5 m 417.5 503.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425.5 505.5 m 489.5 505.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425.5 503.5 m 489.5 503.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 505.5 m 561.5 505.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 503.5 m 561.5 503.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 491.5 m 417.5 491.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 489.5 m 417.5 489.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425.5 491.5 m 489.5 491.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425.5 489.5 m 489.5 489.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 491.5 m 561.5 491.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 489.5 m 561.5 489.5 l s BT /F1 4.00 Tf ET q 0 0 0 rg BT 52.00 710.88 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 379.40 711.50 Td (As of or for the Year Ended December 31, 2014) Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 52.00 695.88 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 370.20 696.50 Td (Segment) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 435.80 696.50 Td (Adjustments) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 506.80 696.50 Td (Consolidated) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 680.90 Td (Management fees ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 126.54 685.19 Td (\(1\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 133.69 680.90 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 139.95 680.45 Td (....................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 356.00 680.90 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 381.45 680.90 Td (762,823) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 428.00 680.90 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 450.45 680.90 Td (\(570,768) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 486.00 680.90 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.00 680.90 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 680.90 Td (192,055) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 666.90 Td (Incentive income ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 122.04 671.19 Td (\(1\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 129.18 666.90 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 134.95 666.45 Td (......................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 381.45 666.90 Td (491,402) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 450.45 666.90 Td (\(489,563) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 486.00 666.90 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 666.90 Td (1,839) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 652.90 Td (Investment income ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 130.03 657.19 Td (\(1\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 137.18 652.90 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 142.45 652.45 Td (...................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 381.45 652.90 Td (117,662) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 455.45 652.90 Td (\(83,967) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 486.00 652.90 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 652.90 Td (33,695) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 638.90 Td (T) Tj ET Q q 0 0 0 rg BT 56.50 638.90 Td (otal expenses ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 114.54 643.19 Td (\(2\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 121.69 638.90 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 127.45 638.45 Td (.........................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 378.45 638.90 Td (\(766,139) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 414.00 638.90 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 450.45 638.90 Td (\(181,338) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 486.00 638.90 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 638.90 Td (\(947,477) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 638.90 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 624.90 Td (Interest expense, net ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 138.55 629.19 Td (\(3\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 145.70 624.90 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 149.95 624.45 Td (................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 383.45 624.90 Td (\(30,190) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 414.00 624.90 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 455.45 624.90 Td (\(99,752) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 486.00 624.90 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 624.90 Td (\(129,942) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 624.90 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 610.90 Td (Other income \(expense\), net ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 168.56 615.19 Td (\(4\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 175.70 610.90 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 179.95 610.45 Td (....................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 388.45 610.90 Td (\(2,431) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 414.00 610.90 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.45 610.90 Td (5,449) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 610.90 Td (3,018) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 596.90 Td (Other income of consolidated funds ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 196.08 601.19 Td (\(5\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 203.23 596.90 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 207.45 596.45 Td (.........................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 405.00 596.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 445.95 596.90 Td (3,040,900) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 517.95 596.90 Td (3,040,900) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 582.90 Td (Income taxes) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 112.45 582.45 Td (...............................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 405.00 582.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 455.45 582.90 Td (\(18,536) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 486.00 582.90 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 527.45 582.90 Td (\(18,536) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 582.90 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 568.90 Td (Net income attributable to non-controlling interests in consolidated funds) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 339.95 568.45 Td (....) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 405.00 568.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 442.95 568.90 Td (\(1,649,890) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 486.00 568.90 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 514.95 568.90 Td (\(1,649,890) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 568.90 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 554.90 Td (Net income attributable to non-controlling interests in consolidated) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 61.00 545.90 Td (subsidiaries) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 114.95 545.45 Td (..............................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 405.00 545.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 450.45 545.90 Td (\(399,379) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 486.00 545.90 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 522.45 545.90 Td (\(399,379) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 545.90 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 531.90 Td (Adjusted net income/net income attributable to Oaktree Capital Group,) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 61.00 522.90 Td (LLC) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 84.90 522.45 Td (..........................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 356.00 522.90 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 381.45 522.90 Td (573,127) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 428.00 522.90 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 450.45 522.90 Td (\(446,844) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 486.00 522.90 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.00 522.90 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 522.90 Td (126,283) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 508.90 Td (Corporate investments ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 145.04 513.19 Td (\(6\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 152.19 508.90 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 157.45 508.45 Td (.............................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 356.00 508.90 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 373.95 508.90 Td (1,515,443) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 428.00 508.90 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 442.95 508.90 Td (\(1,327,480) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 486.00 508.90 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.00 508.90 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.45 508.90 Td (187,963) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 494.90 Td (T) Tj ET Q q 0 0 0 rg BT 56.50 494.90 Td (otal assets ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 102.02 499.19 Td (\(7\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 109.17 494.90 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 114.95 494.45 Td (..............................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 356.00 494.90 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 373.95 494.90 Td (3,263,382) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 428.00 494.90 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 440.95 494.90 Td (50,057,334) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 500.00 494.90 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 512.95 494.90 Td (53,320,716) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 476.5 m 150 476.5 l s BT /F1 10.00 Tf ET BT /F3 9.00 Tf ET q 0 0 0 rg BT 49.50 463.20 Td (\(1\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 60.50 463.20 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 463.20 Td (The adjustment represents \(a\) the elimination of amounts attributable to the consolidated funds and \(b\) for management ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 452.40 Td (fees, the reclassification of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 180.55 452.40 Td ($1,669) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 208.08 452.40 Td ( of net losses related to foreign-currency hedging activities to general and administrative ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 441.60 Td (expense. ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 49.50 430.80 Td (\(2\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 60.50 430.80 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 430.80 Td (The expense adjustment consists of \(a\) equity-based compensation expense of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 390.68 430.80 Td ($21,657) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 423.22 430.80 Td ( related to unit grants made before ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 420.00 Td (the Company’) Tj ET Q q 0 0 0 rg BT 127.37 420.00 Td (s initial public of) Tj ET Q q 0 0 0 rg BT 190.74 420.00 Td (fering, \(b\) consolidated fund expenses of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 355.84 420.00 Td ($161,055) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 393.38 420.00 Td (, \(c\) expenses incurred by the ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 409.20 Td (Intermediate Holding Companies of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 215.58 409.20 Td ($1,645) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 243.11 409.20 Td (, \(d\) the ef) Tj ET Q q 0 0 0 rg BT 283.96 409.20 Td (fect of timing dif) Tj ET Q q 0 0 0 rg BT 346.83 409.20 Td (ferences in the recognition of incentive income ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 398.40 Td (compensation expense between adjusted net income and net income attributable to OCG of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 440.73 398.40 Td ($10,677) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 473.26 398.40 Td (, \(e\) acquisition-) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 387.60 Td (related items of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 136.03 387.60 Td ($2,442) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 163.56 387.60 Td (, \(f\) adjustments of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 240.58 387.60 Td ($8,319) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 268.11 387.60 Td ( related to amounts received for contractually reimbursable costs that are ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 376.80 Td (classified as expenses for segment reporting and as other income under GAAP) Tj ET Q q 0 0 0 rg BT 386.01 376.80 Td (, \(g\) dif) Tj ET Q q 0 0 0 rg BT 413.85 376.80 Td (ferences of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 460.88 376.80 Td ($33) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 475.90 376.80 Td ( arising from EVUs ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 366.00 Td (that are classified as liability awards under GAAP) Tj ET Q q 0 0 0 rg BT 267.93 366.00 Td ( but as equity awards for segment reporting, \(g\) ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 459.52 366.00 Td ($3,204) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 487.05 366.00 Td ( of net gains ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 355.20 Td (related to foreign-currency hedging activities, and \(i\) other expenses of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 355.65 355.20 Td ($68) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 370.67 355.20 Td (.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 49.50 344.40 Td (\(3\) ) Tj ET Q q 0 0 0 rg BT 70.34 344.40 Td (The interest expense adjustment represents the inclusion of interest expense attributable to third-party investors in CLOs, ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 333.60 Td (non-controlling interests of the consolidated funds and the exclusion of segment interest income. ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 49.50 322.80 Td (\(4\) ) Tj ET Q q 0 0 0 rg BT 72.00 322.80 Td (The adjustment to other income \(expense\), net represents adjustments related to \(a\) amounts received for contractually ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 312.00 Td (reimbursable costs of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 160.04 312.00 Td ($8,319) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 187.56 312.00 Td ( that are classified as expenses for segment reporting and as other income under GAAP) Tj ET Q q 0 0 0 rg BT 537.10 312.00 Td (, and ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 301.20 Td (\(b\) the reclassification of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 172.04 301.20 Td ($2,870) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 199.57 301.20 Td ( of net gains related to foreign-currency hedging activities to general and administrative ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 290.40 Td (expense.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 49.50 279.60 Td (\(5\) ) Tj ET Q q 0 0 0 rg BT 72.00 279.60 Td (The adjustment to other income of consolidated funds primarily represents the inclusion of interest, dividend and other ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 268.80 Td (investment income attributable to third-party investors in CLOs and non-controlling interests of the consolidated funds. ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 49.50 258.00 Td (\(6\) ) Tj ET Q q 0 0 0 rg BT 72.00 258.00 Td (The adjustment to corporate investments is to remove from segment assets the Company’) Tj ET Q q 0 0 0 rg BT 430.50 258.00 Td (s investments in the ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 247.20 Td (consolidated funds that are treated as equity- or cost-method investments for segment reporting. ) Tj ET Q q 0 0 0 rg BT 460.54 247.20 Td (The ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 478.55 247.20 Td ($1.5 billion) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 521.58 247.20 Td ( of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 236.40 Td (corporate investments included ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 199.07 236.40 Td ($1.3 billion) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 242.10 236.40 Td ( of equity-method investments.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 49.50 225.60 Td (\(7\) ) Tj ET Q q 0 0 0 rg BT 72.00 225.60 Td (The total assets adjustment represents the inclusion of investments and other assets of the consolidated funds, net of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 214.80 Td (segment assets eliminated in consolidation, which are primarily corporate investments in funds and incentive income ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 204.00 Td (receivable. ) Tj ET Q endstream endobj 383 0 obj <> endobj 384 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 240.40 772.25 Td (Oaktree Capital Group, LLC ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 165.70 760.25 Td (Notes to Consolidated Financial Statements — \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.95 748.25 Td (December 31, 2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 217.90 736.25 Td (\($ in thousands, except where noted\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 33.25 Td (191) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 712.75 Td (21. SUBSEQUENT EVENTS ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 691.75 Td (On February 7, 2017, the Company declared a distribution attributable to the fourth quarter of 2016 of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 536.33 691.75 Td ($0.63) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 561.35 691.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 679.75 Td (per Class ) Tj ET Q q 0 0 0 rg BT 93.96 679.75 Td (A) Tj ET Q q 0 0 0 rg BT 100.08 679.75 Td ( unit, bringing aggregate distributions relating to fiscal year 2016 to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 397.48 679.75 Td ($2.41) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 422.51 679.75 Td (. ) Tj ET Q q 0 0 0 rg BT 430.66 679.75 Td (The distribution of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 512.93 679.75 Td ($0.63) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 537.95 679.75 Td ( was ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 667.75 Td (paid on February 24, 2017 to Class ) Tj ET Q q 0 0 0 rg BT 207.93 667.75 Td (A) Tj ET Q q 0 0 0 rg BT 214.05 667.75 Td ( unitholders of record at the close of business on February 17, 2017. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 634.75 Td (22. QUARTERL) Tj ET Q q 0 0 0 rg BT 120.81 634.75 Td (Y) Tj ET Q q 0 0 0 rg BT 127.30 634.75 Td ( FINANCIAL) Tj ET Q q 0 0 0 rg BT 183.78 634.75 Td ( DA) Tj ET Q q 0 0 0 rg BT 200.26 634.75 Td (T) Tj ET Q q 0 0 0 rg BT 205.63 634.75 Td (A) Tj ET Q q 0 0 0 rg BT 212.48 634.75 Td ( \(UNAUDITED\)) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297 609.25 m 357 609.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 609.25 m 365 609.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365 609.25 m 425 609.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 609.25 m 433 609.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 609.25 m 493 609.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 609.25 m 501 609.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501 609.25 m 561 609.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297 590.25 m 357 590.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365 590.25 m 425 590.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 590.25 m 493 590.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501 590.25 m 561 590.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297 590.25 m 357 590.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365 590.25 m 425 590.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 590.25 m 493 590.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501 590.25 m 561 590.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297 546.25 m 357 546.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297 532.25 m 357 532.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297 530.25 m 357 530.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365 546.25 m 425 546.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365 532.25 m 425 532.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365 530.25 m 425 530.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 546.25 m 493 546.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 532.25 m 493 532.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 530.25 m 493 530.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501 546.25 m 561 546.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501 532.25 m 561 532.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501 530.25 m 561 530.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297 517.25 m 357 517.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297 515.25 m 357 515.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365 517.25 m 425 517.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365 515.25 m 425 515.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 517.25 m 493 517.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 515.25 m 493 515.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501 517.25 m 561 517.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501 515.25 m 561 515.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297 502.25 m 357 502.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297 500.25 m 357 500.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365 502.25 m 425 502.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365 500.25 m 425 500.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 502.25 m 493 502.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 500.25 m 493 500.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501 502.25 m 561 502.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501 500.25 m 561 500.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297 474.25 m 357 474.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297 472.25 m 357 472.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365 474.25 m 425 474.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365 472.25 m 425 472.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 474.25 m 493 474.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 472.25 m 493 472.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501 474.25 m 561 474.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501 472.25 m 561 472.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297 460.25 m 357 460.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297 458.25 m 357 458.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365 460.25 m 425 460.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365 458.25 m 425 458.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 460.25 m 493 460.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 458.25 m 493 458.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501 460.25 m 561 460.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501 458.25 m 561 458.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297 429.25 m 357 429.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 429.25 m 365 429.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365 429.25 m 425 429.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 429.25 m 433 429.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 429.25 m 493 429.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 429.25 m 501 429.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501 429.25 m 561 429.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297 429.25 m 357 429.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297 410.25 m 357 410.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 429.25 m 365 429.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365 429.25 m 425 429.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365 410.25 m 425 410.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 429.25 m 433 429.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 429.25 m 493 429.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 410.25 m 493 410.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 429.25 m 501 429.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501 429.25 m 561 429.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501 410.25 m 561 410.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297 410.25 m 357 410.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365 410.25 m 425 410.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 410.25 m 493 410.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501 410.25 m 561 410.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297 366.25 m 357 366.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297 352.25 m 357 352.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297 350.25 m 357 350.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365 366.25 m 425 366.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365 352.25 m 425 352.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365 350.25 m 425 350.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 366.25 m 493 366.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 352.25 m 493 352.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 350.25 m 493 350.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501 366.25 m 561 366.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501 352.25 m 561 352.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501 350.25 m 561 350.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297 337.25 m 357 337.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297 335.25 m 357 335.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365 337.25 m 425 337.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365 335.25 m 425 335.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 337.25 m 493 337.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 335.25 m 493 335.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501 337.25 m 561 337.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501 335.25 m 561 335.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297 322.25 m 357 322.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297 320.25 m 357 320.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365 322.25 m 425 322.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365 320.25 m 425 320.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 322.25 m 493 322.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 320.25 m 493 320.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501 322.25 m 561 322.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501 320.25 m 561 320.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297 294.25 m 357 294.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297 292.25 m 357 292.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365 294.25 m 425 294.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365 292.25 m 425 292.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 294.25 m 493 294.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 292.25 m 493 292.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501 294.25 m 561 294.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501 292.25 m 561 292.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297 280.25 m 357 280.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297 278.25 m 357 278.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365 280.25 m 425 280.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365 278.25 m 425 278.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 280.25 m 493 280.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 278.25 m 493 278.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501 280.25 m 561 280.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501 278.25 m 561 278.25 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 393.85 613.25 Td (Three Months Ended) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 301.55 594.25 Td (March 31, 2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 371.70 594.25 Td (June 30, 2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 438.55 601.25 Td (September 30,) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 454.70 594.25 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 507.70 601.25 Td (December 31,) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 522.70 594.25 Td (2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 578.65 Td (Revenues) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 98.45 578.20 Td (..............................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 299.50 578.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 320.60 578.65 Td (254,490) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 367.50 578.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 388.60 578.65 Td (282,716) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 435.50 578.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 456.60 578.65 Td (290,230) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 503.50 578.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 524.60 578.65 Td (298,310) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 564.65 Td (Expenses) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 95.95 564.20 Td (...............................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 317.60 564.65 Td (\(185,184) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 353.15 564.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 385.60 564.65 Td (\(191,648) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 421.15 564.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 453.60 564.65 Td (\(202,339) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 489.15 564.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 521.60 564.65 Td (\(210,165) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 557.15 564.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 550.65 Td (Other income \(loss\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 135.95 550.20 Td (...............................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 325.60 550.65 Td (26,542) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 393.60 550.65 Td (58,337) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 461.60 550.65 Td (89,499) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 529.60 550.65 Td (97,834) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 535.65 Td (Income before income taxes) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 168.45 535.20 Td (..................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 299.50 535.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 325.60 535.65 Td (95,848) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 367.50 535.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 388.60 535.65 Td (149,405) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 435.50 535.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 456.60 535.65 Td (177,390) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 503.50 535.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 524.60 535.65 Td (185,979) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 520.65 Td (Net income) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 103.45 520.20 Td (............................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 299.50 520.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 325.60 520.65 Td (83,168) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 367.50 520.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 388.60 520.65 Td (140,834) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 435.50 520.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 456.60 520.65 Td (168,823) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 503.50 520.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 524.60 520.65 Td (173,278) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 505.65 Td (Net income attributable to Oaktree Capital Group, LLC) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 270.95 505.20 Td (.........) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 299.50 505.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 325.60 505.65 Td (28,078) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 367.50 505.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 393.60 505.65 Td (49,047) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 435.50 505.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 461.60 505.65 Td (58,297) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 503.50 505.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 529.60 505.65 Td (59,283) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 491.65 Td (Net income per unit \(basic and diluted\):) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 477.65 Td (Net income per Class A unit) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 165.95 477.20 Td (...................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 299.50 477.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 335.60 477.65 Td (0.45) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 367.50 477.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 403.60 477.65 Td (0.78) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 435.50 477.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 471.60 477.65 Td (0.93) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 503.50 477.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 539.60 477.65 Td (0.94) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 463.65 Td (Distributions declared per Class A unit) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 205.95 463.20 Td (...................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 299.50 463.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 335.60 463.65 Td (0.47) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 367.50 463.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 403.60 463.65 Td (0.55) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 435.50 463.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 471.60 463.65 Td (0.58) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 503.50 463.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 539.60 463.65 Td (0.65) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 393.85 433.25 Td (Three Months Ended) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 301.55 414.25 Td (March 31, 2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 371.70 414.25 Td (June 30, 2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 438.55 421.25 Td (September 30,) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 454.70 414.25 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 507.70 421.25 Td (December 31,) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 522.70 414.25 Td (2015) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 398.65 Td (Revenues) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 98.45 398.20 Td (..............................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 299.50 398.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 325.60 398.65 Td (50,819) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 367.50 398.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 393.60 398.65 Td (51,487) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 435.50 398.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 461.60 398.65 Td (50,491) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 503.50 398.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 529.60 398.65 Td (49,108) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 384.65 Td (Expenses) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 95.95 384.20 Td (...............................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 317.60 384.65 Td (\(235,974) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 353.15 384.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 385.60 384.65 Td (\(245,929) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 421.15 384.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 453.60 384.65 Td (\(190,518) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 489.15 384.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 521.60 384.65 Td (\(268,487) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 557.15 384.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 370.65 Td (Other income \(loss\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 135.95 370.20 Td (...............................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 313.10 370.65 Td (1,476,049) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 385.60 370.65 Td (\(116,711) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 421.15 370.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 446.10 370.65 Td (\(1,624,651) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 489.15 370.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 521.60 370.65 Td (\(511,097) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 557.15 370.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 355.65 Td (Income \(loss\) before income taxes) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 193.45 355.20 Td (........................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 299.50 355.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 313.10 355.65 Td (1,290,894) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 367.50 355.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 385.60 355.65 Td (\(311,153) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 421.15 355.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 435.50 355.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 446.10 355.65 Td (\(1,764,678) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 489.15 355.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 503.50 355.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 521.60 355.65 Td (\(730,476) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 557.15 355.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 340.65 Td (Net income \(loss\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 125.95 340.20 Td (...................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 299.50 340.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 313.10 340.65 Td (1,283,019) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 367.50 340.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 385.60 340.65 Td (\(316,638) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 421.15 340.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 435.50 340.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 446.10 340.65 Td (\(1,766,571) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 489.15 340.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 503.50 340.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 521.60 340.65 Td (\(732,772) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 557.15 340.65 Td (\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 325.65 Td (Net income attributable to Oaktree Capital Group, LLC) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 270.95 325.20 Td (.........) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 299.50 325.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 325.60 325.65 Td (38,253) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 367.50 325.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 393.60 325.65 Td (19,814) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 435.50 325.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 466.60 325.65 Td (1,887) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 503.50 325.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 529.60 325.65 Td (11,395) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 311.65 Td (Net income per unit \(basic and diluted\):) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 297.65 Td (Net income per Class A unit) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 165.95 297.20 Td (...................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 299.50 297.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 335.60 297.65 Td (0.85) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 367.50 297.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 403.60 297.65 Td (0.41) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 435.50 297.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 471.60 297.65 Td (0.04) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 503.50 297.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 539.60 297.65 Td (0.21) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 283.65 Td (Distributions declared per Class A unit) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 205.95 283.20 Td (...................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 299.50 283.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 335.60 283.65 Td (0.56) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 367.50 283.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 403.60 283.65 Td (0.64) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 435.50 283.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 471.60 283.65 Td (0.50) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 503.50 283.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 539.60 283.65 Td (0.40) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 385 0 obj <> endobj 386 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (192) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Item 9. Changes in and Disagreements with ) Tj ET Q q 0 0 0 rg BT 258.57 741.75 Td (Accountants on ) Tj ET Q q 0 0 0 rg BT 336.53 741.75 Td (Accounting and Financial Disclosure ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 720.75 Td (None.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 699.75 Td (Item 9A. Controls and Procedures) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 678.75 Td (Evaluation of Disclosure Controls and Procedures ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 660.75 Td (W) Tj ET Q q 0 0 0 rg BT 95.26 660.75 Td (e maintain disclosure controls and procedures \(as such term is defined in Rules 13a-15\(e\) and 15d-15\(e\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 648.75 Td (under the Exchange ) Tj ET Q q 0 0 0 rg BT 141.74 648.75 Td (Act\) that are designed to ensure that information required to be disclosed by us in reports that ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 636.75 Td (we file or submit under the Exchange ) Tj ET Q q 0 0 0 rg BT 216.76 636.75 Td (Act is recorded, processed, summarized and reported within the time periods ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 624.75 Td (specified in SEC rules and forms and that such information is accumulated and communicated to our management, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 612.75 Td (including our Chief Executive Of) Tj ET Q q 0 0 0 rg BT 192.11 612.75 Td (ficer and Chief Financial Of) Tj ET Q q 0 0 0 rg BT 312.54 612.75 Td (ficer) Tj ET Q q 0 0 0 rg BT 330.88 612.75 Td (, as appropriate, to allow timely decisions regarding ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 600.75 Td (required disclosure. In designing disclosure controls and procedures, our management necessarily was required to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 588.75 Td (apply its judgment in evaluating the cost-benefit relationship of possible disclosure controls and procedures. ) Tj ET Q q 0 0 0 rg BT 531.21 588.75 Td (The ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 576.75 Td (design of any disclosure controls and procedures also is based in part upon certain assumptions about the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 564.75 Td (likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 552.75 Td (under all potential future conditions. ) Tj ET Q q 0 0 0 rg BT 212.89 552.75 Td (Any controls and procedures, no matter how well designed and operated, can ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 540.75 Td (provide only reasonable assurance of achieving the desired objectives.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 522.75 Td (Our management, including our Chief Executive Of) Tj ET Q q 0 0 0 rg BT 311.49 522.75 Td (ficer and Chief Financial Of) Tj ET Q q 0 0 0 rg BT 431.92 522.75 Td (ficer) Tj ET Q q 0 0 0 rg BT 450.26 522.75 Td (, evaluated the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 510.75 Td (ef) Tj ET Q q 0 0 0 rg BT 58.16 510.75 Td (fectiveness of our disclosure controls and procedures pursuant to Rule 13a-15 under the Exchange ) Tj ET Q q 0 0 0 rg BT 498.98 510.75 Td (Act as of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 498.75 Td (end of the period covered by this report. Based on that evaluation, our Chief Executive Of) Tj ET Q q 0 0 0 rg BT 447.83 498.75 Td (ficer and Chief Financial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 486.75 Td (Of) Tj ET Q q 0 0 0 rg BT 60.38 486.75 Td (ficer have concluded that, as of the end of the period covered by this report, our disclosure controls and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 474.75 Td (procedures \(as defined in Rule 13a-15\(e\) under the Exchange ) Tj ET Q q 0 0 0 rg BT 326.85 474.75 Td (Act\) are ef) Tj ET Q q 0 0 0 rg BT 372.79 474.75 Td (fective at the reasonable assurance level ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 462.75 Td (to accomplish their objectives of ensuring that information we are required to disclose in reports that we file or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 450.75 Td (submit under the Exchange ) Tj ET Q q 0 0 0 rg BT 173.97 450.75 Td (Act is recorded, processed, summarized and reported within the time periods specified ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 438.75 Td (in SEC rules and forms and that such information is accumulated and communicated to our management, including ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 426.75 Td (our Chief Executive Of) Tj ET Q q 0 0 0 rg BT 149.86 426.75 Td (ficer and Chief Financial Of) Tj ET Q q 0 0 0 rg BT 270.29 426.75 Td (ficer) Tj ET Q q 0 0 0 rg BT 288.63 426.75 Td (, as appropriate, to allow timely decisions regarding required ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 414.75 Td (disclosure. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 393.75 Td (Changes in Internal Control Over Financial Reporting) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 375.75 Td (No changes in our internal control over financial reporting \(as such term is defined in Rules 13a-15\(f\) and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 363.75 Td (15d-15\(f\) under the Exchange ) Tj ET Q q 0 0 0 rg BT 185.09 363.75 Td (Act\) occurred during our most recent quarter) Tj ET Q q 0 0 0 rg BT 381.29 363.75 Td (, that have materially af) Tj ET Q q 0 0 0 rg BT 484.50 363.75 Td (fected, or are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 351.75 Td (reasonably likely to materially af) Tj ET Q q 0 0 0 rg BT 191.55 351.75 Td (fect, our internal control over financial reporting. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 330.75 Td (Management’) Tj ET Q q 0 0 0 rg BT 113.53 330.75 Td (s Report on Internal Control Over Financial Reporting) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 312.75 Td (Our management is responsible for establishing and maintaining adequate internal control over financial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 300.75 Td (reporting. Internal control over financial reporting is a process designed under the supervision of management, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 288.75 Td (including our Chief Executive Of) Tj ET Q q 0 0 0 rg BT 192.11 288.75 Td (ficer and Chief Financial Of) Tj ET Q q 0 0 0 rg BT 312.54 288.75 Td (ficer) Tj ET Q q 0 0 0 rg BT 330.88 288.75 Td (, to provide reasonable assurance regarding the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 276.75 Td (reliability of financial reporting and the preparation of our consolidated financial statements for external reporting ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 264.75 Td (purposes in accordance with accounting principles generally accepted in the United States of ) Tj ET Q q 0 0 0 rg BT 463.03 264.75 Td (America.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 246.75 Td (Our internal control over financial reporting includes policies and procedures that pertain to the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 234.75 Td (maintenance of records that, in reasonable detail, accurately and fairly reflect transactions and dispositions of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 222.75 Td (assets; provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 210.75 Td (statements in accordance with generally accepted accounting principles, and that receipts and expenditures are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 198.75 Td (being made only in accordance with authorizations of management and the directors; and provide reasonable ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 186.75 Td (assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 174.75 Td (could have a material ef) Tj ET Q q 0 0 0 rg BT 155.99 174.75 Td (fect on our financial statements.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 156.75 Td (Our management conducted an assessment of the ef) Tj ET Q q 0 0 0 rg BT 321.51 156.75 Td (fectiveness of our internal control over financial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 144.75 Td (reporting as of December 31, 2016 based on criteria established in Internal Control—Integrated Framework 2013 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 132.75 Td (issued by the Committee of Sponsoring Organizations of the ) Tj ET Q q 0 0 0 rg BT 319.41 132.75 Td (T) Tj ET Q q 0 0 0 rg BT 325.15 132.75 Td (readway Commission. Based on this assessment, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 120.75 Td (management has determined that our internal control over financial reporting as of December 31, 2016 was ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 108.75 Td (ef) Tj ET Q q 0 0 0 rg BT 58.16 108.75 Td (fective.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 90.75 Td (Attestation Report of the Independent Registered Public ) Tj ET Q q 0 0 0 rg BT 319.09 90.75 Td (Accounting Firm) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 72.75 Td (Ernst & ) Tj ET Q q 0 0 0 rg BT 121.39 72.75 Td (Y) Tj ET Q q 0 0 0 rg BT 127.14 72.75 Td (oung LLP) Tj ET Q q 0 0 0 rg BT 168.67 72.75 Td (, an independent registered public accounting firm, has audited our financial statements ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 60.75 Td (included in this annual report and has issued its attestation report on our internal control over financial reporting as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 48.75 Td (of December 31, 2016, which is included in “Financial Statements and Supplementary Data.”) Tj ET Q endstream endobj 387 0 obj <> endobj 388 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (193) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Item 9B. Other Information) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 720.75 Td (None.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 699.75 Td (P) Tj ET Q q 0 0 0 rg BT 55.93 699.75 Td (ART III.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 666.75 Td (Item 10. Directors, Executive Officers and Corporate Governance ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 641.25 Td (Executive Officers and Directors ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 624.75 Td (The following table sets forth information about our executive of) Tj ET Q q 0 0 0 rg BT 360.53 624.75 Td (ficers and directors as of March 1, 2017: ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 541.73 624.75 Td ( ) Tj ET Q BT /F2 7.00 Tf ET 0 0 0 RG /GS0 gs 0.73 w 0 i [] 0 d 1 J 1 j 3 M 52 604.144677734375 m 71.0654296875 604.144677734375 l s q 0 0 0 rg BT 52.00 605.25 Td (Name) Tj ET Q BT /F2 7.00 Tf ET 0 0 0 RG /GS0 gs 0.73 w 0 i [] 0 d 1 J 1 j 3 M 186.85 604.144677734375 m 200.07412109375 604.144677734375 l s q 0 0 0 rg BT 186.85 605.25 Td (Age) Tj ET Q BT /F2 7.00 Tf ET 0 0 0 RG /GS0 gs 0.73 w 0 i [] 0 d 1 J 1 j 3 M 208 604.144677734375 m 235.6103515625 604.144677734375 l s q 0 0 0 rg BT 208.00 605.25 Td (Position) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 590.87 Td (Howard S. Marks) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 131.75 590.47 Td (.................) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 187.90 590.87 Td (70) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 208.00 590.87 Td (Director and Co-Chairman) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 569.87 Td (Bruce A. Karsh) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 120.65 569.47 Td (.....................) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 187.90 569.87 Td (61) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 208.00 569.87 Td (Director, Co-Chairman and Chief Investment Officer) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 548.87 Td (Jay S. Wintrob) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 117.85 548.47 Td (......................) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 187.90 548.87 Td (59) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 208.00 548.87 Td (Director and Chief Executive Officer) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 527.87 Td (John B. Frank) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 115.05 527.47 Td (.......................) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 187.90 527.87 Td (60) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 208.00 527.87 Td (Director and Vice Chairman) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 506.87 Td (David M. Kirchheimer) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 148.40 506.47 Td (...........) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 187.90 506.87 Td (60) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 208.00 506.87 Td (Director, Chief Financial Officer and Principal) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 485.87 Td (Susan Gentile) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 117.85 485.47 Td (......................) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 187.90 485.87 Td (50) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 208.00 485.87 Td (Chief Accounting Officer and Managing Director) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 464.87 Td (Sheldon M. Stone) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 134.50 464.47 Td (................) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 187.90 464.87 Td (64) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 208.00 464.87 Td (Director and Principal) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 443.87 Td (Robert E. Denham) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 137.30 443.47 Td (...............) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 187.90 443.87 Td (71) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 208.00 443.87 Td (Director) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 422.87 Td (Steven J. Gilbert) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 128.95 422.47 Td (..................) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 187.90 422.87 Td (69) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 208.00 422.87 Td (Director) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 401.87 Td (Larry W. Keele) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 120.65 401.47 Td (.....................) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 187.90 401.87 Td (59) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 208.00 401.87 Td (Director) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 380.87 Td (D. Richard Masson) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 140.10 380.47 Td (..............) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 187.90 380.87 Td (58) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 208.00 380.87 Td (Director) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 359.87 Td (Wayne G. Pierson) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 134.50 359.47 Td (................) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 187.90 359.87 Td (66) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 208.00 359.87 Td (Director) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 338.87 Td (Marna C. Whittington) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 148.40 338.47 Td (...........) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 187.90 338.87 Td (69) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 208.00 338.87 Td (Director) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 319.87 Td (Todd E. Molz) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.30 319.47 Td (........................) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 187.90 319.87 Td (45) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 208.00 319.87 Td (General Counsel, Chief Administrative Officer and Secretary) Tj ET Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 80.00 285.75 Td (Howard S. Marks) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 160.58 285.75 Td ( is our Co-Chairman and a co-founder and has been a director since May 2007.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 511.89 285.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 517.45 285.75 Td (Since the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 273.75 Td (formation of Oaktree in 1995, Mr) Tj ET Q q 0 0 0 rg BT 193.40 273.75 Td (. Marks has been responsible for ensuring the firm’) Tj ET Q q 0 0 0 rg BT 417.77 273.75 Td (s adherence to its core ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 261.75 Td (investment philosophy; communicating closely with clients concerning products and strategies; and contributing his ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 249.75 Td (experience to big-picture decisions relating to investments and corporate direction. From 1985 until 1995, Mr) Tj ET Q q 0 0 0 rg BT 531.37 249.75 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 237.75 Td (Marks led the groups at ) Tj ET Q q 0 0 0 rg BT 157.09 237.75 Td (The ) Tj ET Q q 0 0 0 rg BT 176.92 237.75 Td (TCW Group, Inc. that were responsible for investments in distressed debt, high yield ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 225.75 Td (bonds, and convertible securities. He was also Chief Investment Of) Tj ET Q q 0 0 0 rg BT 349.41 225.75 Td (ficer for Domestic Fixed Income at ) Tj ET Q q 0 0 0 rg BT 503.72 225.75 Td (TCW) Tj ET Q q 0 0 0 rg BT 525.94 225.75 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 213.75 Td (Previously) Tj ET Q q 0 0 0 rg BT 95.39 213.75 Td (, Mr) Tj ET Q q 0 0 0 rg BT 112.05 213.75 Td (. Marks was with Citicorp Investment Management for 16 years, where from 1978 to 1985 he was ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 201.75 Td (V) Tj ET Q q 0 0 0 rg BT 56.49 201.75 Td (ice President and senior portfolio manager in charge of convertible and high yield securities. Between 1969 and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 189.75 Td (1978, he was an equity research analyst and, subsequently) Tj ET Q q 0 0 0 rg BT 312.21 189.75 Td (, Citicorp’) Tj ET Q q 0 0 0 rg BT 353.70 189.75 Td (s Director of Research. Mr) Tj ET Q q 0 0 0 rg BT 472.62 189.75 Td (. Marks holds a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 177.75 Td (B.S.Ec. degree ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 120.04 177.75 Td (cum laude) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 166.18 177.75 Td ( from the Wharton School of the University of Pennsylvania with a major in finance and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 165.75 Td (an M.B.A. in accounting and marketing from the Booth School of Business of the University of Chicago, where he ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 153.75 Td (received the George Hay Brown Prize. He is a CF) Tj ET Q q 0 0 0 rg BT 272.87 153.75 Td (A) Tj ET Q BT /F3 10.00 Tf ET BT /F3 6.50 Tf ET q 0 0 0 rg BT 279.54 158.52 Td (®) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 284.33 153.75 Td ( charterholder) Tj ET Q q 0 0 0 rg BT 345.48 153.75 Td (. Mr) Tj ET Q q 0 0 0 rg BT 364.92 153.75 Td (. Marks is a member of the Investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 141.75 Td (Committees of the Metropolitan Museum of ) Tj ET Q q 0 0 0 rg BT 243.42 141.75 Td (Art and the Edmond J. Safra Foundation; a ) Tj ET Q q 0 0 0 rg BT 436.13 141.75 Td (T) Tj ET Q q 0 0 0 rg BT 441.87 141.75 Td (rustee of the Metropolitan ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 129.75 Td (Museum; Chairman of the Board of ) Tj ET Q q 0 0 0 rg BT 208.23 129.75 Td (T) Tj ET Q q 0 0 0 rg BT 213.96 129.75 Td (rustees of the Royal Drawing School; and an Emeritus ) Tj ET Q q 0 0 0 rg BT 456.68 129.75 Td (T) Tj ET Q q 0 0 0 rg BT 462.42 129.75 Td (rustee of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 117.75 Td (University of Pennsylvania \(where from 2000 to 2010 he chaired the Investment Board\). With over 40 years of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 105.75 Td (investment experience, Mr) Tj ET Q q 0 0 0 rg BT 166.72 105.75 Td (. Marks’) Tj ET Q q 0 0 0 rg BT 201.54 105.75 Td (s extensive expertise in our industry) Tj ET Q q 0 0 0 rg BT 359.76 105.75 Td (, his perceptive market insights and his ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 93.75 Td (importance to our client development bring value to our board of directors and our overall business.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 80.00 74.75 Td (Bruce ) Tj ET Q q 0 0 0 rg BT 110.75 74.75 Td (A. Karsh) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 151.88 74.75 Td ( is our Co-Chairman and one of the firm’) Tj ET Q q 0 0 0 rg BT 329.55 74.75 Td (s co-founders and has been a director since May ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 62.75 Td (2007. He also is Chief Investment Of) Tj ET Q q 0 0 0 rg BT 215.45 62.75 Td (ficer and serves as portfolio manager for Oaktree’) Tj ET Q q 0 0 0 rg BT 434.82 62.75 Td (s Distressed Debt, V) Tj ET Q q 0 0 0 rg BT 525.22 62.75 Td (alue ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 50.75 Td (Opportunities and Multi-Strategy Credit strategies. Prior to co-founding Oaktree, Mr) Tj ET Q q 0 0 0 rg BT 419.61 50.75 Td (. Karsh was a managing ) Tj ET Q endstream endobj 389 0 obj <> endobj 390 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (194) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (director of ) Tj ET Q q 0 0 0 rg BT 97.06 741.75 Td (TCW ) Tj ET Q q 0 0 0 rg BT 122.06 741.75 Td (Asset Management Company) Tj ET Q q 0 0 0 rg BT 253.05 741.75 Td (, and the portfolio manager of the Special Credits Funds from 1988 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (until 1995. Prior to joining ) Tj ET Q q 0 0 0 rg BT 168.22 729.75 Td (TCW) Tj ET Q q 0 0 0 rg BT 190.44 729.75 Td (, Mr) Tj ET Q q 0 0 0 rg BT 207.10 729.75 Td (. Karsh worked as ) Tj ET Q q 0 0 0 rg BT 289.37 729.75 Td (Assistant to the Chairman of SunAmerica, Inc. Prior to that, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (he was an attorney with the law firm of O’Melveny & Myers. Before working at O’Melveny & Myers, Mr) Tj ET Q q 0 0 0 rg BT 501.82 717.75 Td (. Karsh ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 705.75 Td (clerked for the Honorable ) Tj ET Q q 0 0 0 rg BT 164.51 705.75 Td (Anthony M. Kennedy) Tj ET Q q 0 0 0 rg BT 256.61 705.75 Td (, then of the U.S. Court of ) Tj ET Q q 0 0 0 rg BT 372.23 705.75 Td (Appeals for the Ninth Circuit and presently ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 693.75 Td (Associate Justice of the U.S. Supreme Court. Mr) Tj ET Q q 0 0 0 rg BT 267.31 693.75 Td (. Karsh holds an ) Tj ET Q q 0 0 0 rg BT 341.80 693.75 Td (A.B. degree in economics ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 458.53 693.75 Td (summa cum laude) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 540.23 693.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 681.75 Td (from Duke University) Tj ET Q q 0 0 0 rg BT 142.06 681.75 Td (, where he was elected to Phi Beta Kappa. He went on to earn a J.D. from the University of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 669.75 Td (V) Tj ET Q q 0 0 0 rg BT 56.49 669.75 Td (irginia School of Law) Tj ET Q q 0 0 0 rg BT 148.21 669.75 Td (, where he served as Notes Editor of the ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 329.42 669.75 Td (V) Tj ET Q q 0 0 0 rg BT 335.91 669.75 Td (irginia Law R) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 393.71 669.75 Td (eview and was a member of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 657.75 Td (Order of the Coif. Mr) Tj ET Q q 0 0 0 rg BT 143.36 657.75 Td (. Karsh is Chairman of the Board of ) Tj ET Q q 0 0 0 rg BT 302.15 657.75 Td (T) Tj ET Q q 0 0 0 rg BT 307.89 657.75 Td (ribune Media Company and serves on the boards of a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 645.75 Td (number of privately held companies. He is a member of the investment committee of the Broad Foundations. Mr) Tj ET Q q 0 0 0 rg BT 549.13 645.75 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 633.75 Td (Karsh is ) Tj ET Q q 0 0 0 rg BT 88.72 633.75 Td (T) Tj ET Q q 0 0 0 rg BT 94.46 633.75 Td (rustee Emeritus of Duke University) Tj ET Q q 0 0 0 rg BT 247.66 633.75 Td (, having served as ) Tj ET Q q 0 0 0 rg BT 331.41 633.75 Td (T) Tj ET Q q 0 0 0 rg BT 337.15 633.75 Td (rustee from 2003 to 2015, and as Chairman of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 621.75 Td (Board of DUMAC, LLC, the entity that managed Duke’) Tj ET Q q 0 0 0 rg BT 289.38 621.75 Td (s endowment, from 2005 to 2014. He previously served on ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 609.75 Td (the boards of Charter Communications, Inc.; Furniture Brands International; KinderCare Learning Centers, Inc.; and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 597.75 Td (Littelfuse Inc. Mr) Tj ET Q q 0 0 0 rg BT 125.59 597.75 Td (. Karsh is highly respected as one of the leading portfolio managers in the area of distressed debt ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 585.75 Td (investing, one of our flagship investment strategies. ) Tj ET Q q 0 0 0 rg BT 282.35 585.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 332.75 585.75 Td (, Mr) Tj ET Q q 0 0 0 rg BT 349.42 585.75 Td (. Karsh’) Tj ET Q q 0 0 0 rg BT 383.14 585.75 Td (s extensive leadership and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 573.75 Td (management skills and his current and past service on boards of other public companies add value to our board of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 561.75 Td (directors and our overall business.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 80.00 542.75 Td (Jay S. W) Tj ET Q q 0 0 0 rg BT 121.04 542.75 Td (introb) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 149.37 542.75 Td ( is our Chief Executive Of) Tj ET Q q 0 0 0 rg BT 262.01 542.75 Td (ficer and has served as a member of the Board of Directors since ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 530.75 Td (September 201) Tj ET Q q 0 0 0 rg BT 117.64 530.75 Td (1. Prior to joining the firm as Chief Executive Of) Tj ET Q q 0 0 0 rg BT 330.32 530.75 Td (ficer) Tj ET Q q 0 0 0 rg BT 348.66 530.75 Td (, he was President and Chief Executive Of) Tj ET Q q 0 0 0 rg BT 535.80 530.75 Td (ficer ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 518.75 Td (of ) Tj ET Q q 0 0 0 rg BT 60.57 518.75 Td (AIG Life and Retirement, the U.S.-based life and retirement services segment of ) Tj ET Q q 0 0 0 rg BT 416.85 518.75 Td (American International Group, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 506.75 Td (Inc., from 2009 to 2014. Following ) Tj ET Q q 0 0 0 rg BT 205.64 506.75 Td (AIG’) Tj ET Q q 0 0 0 rg BT 224.91 506.75 Td (s acquisition of SunAmerica in 1998, Mr) Tj ET Q q 0 0 0 rg BT 400.56 506.75 Td (. Wintrob was V) Tj ET Q q 0 0 0 rg BT 470.40 506.75 Td (ice Chairman and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 494.75 Td (Chief Operating Of) Tj ET Q q 0 0 0 rg BT 133.19 494.75 Td (ficer of ) Tj ET Q q 0 0 0 rg BT 165.43 494.75 Td (AIG Retirement Services, Inc. from 1998 to 2001, and President of Chief Executive ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 482.75 Td (Of) Tj ET Q q 0 0 0 rg BT 60.38 482.75 Td (ficer from 2001 to 2009. Mr) Tj ET Q q 0 0 0 rg BT 182.66 482.75 Td (. Wintrob began his career in financial services in 1987 as ) Tj ET Q q 0 0 0 rg BT 440.57 482.75 Td (Assistant to the Chairman ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 470.75 Td (of SunAmerica Inc., and then went on to serve in several other executive positions, including President of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 458.75 Td (SunAmerica Investments, Inc. overseeing the company’) Tj ET Q q 0 0 0 rg BT 296.61 458.75 Td (s invested asset portfolio. Prior to joining SunAmerica, Mr) Tj ET Q q 0 0 0 rg BT 552.83 458.75 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 446.75 Td (Wintrob was with the law firm of O’Melveny & Myers. He received his B.A. and J.D. from the University of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 434.75 Td (California, Berkeley) Tj ET Q q 0 0 0 rg BT 135.96 434.75 Td (. Mr) Tj ET Q q 0 0 0 rg BT 155.41 434.75 Td (. Wintrob is a board member of several non-profit organizations, including ) Tj ET Q q 0 0 0 rg BT 482.61 434.75 Td (The Broad ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 422.75 Td (Foundations, ) Tj ET Q q 0 0 0 rg BT 110.42 422.75 Td (The Doheny Eye Institute, ) Tj ET Q q 0 0 0 rg BT 228.08 422.75 Td (The Los ) Tj ET Q q 0 0 0 rg BT 266.44 422.75 Td (Angeles Music Center and the Skirball Cultural Center) Tj ET Q q 0 0 0 rg BT 505.44 422.75 Td (. Mr) Tj ET Q q 0 0 0 rg BT 524.89 422.75 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 410.75 Td (Wintrob’) Tj ET Q q 0 0 0 rg BT 86.49 410.75 Td (s investment and finance expertise and his service as chief executive of) Tj ET Q q 0 0 0 rg BT 403.15 410.75 Td (ficer of one of the largest life ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 398.75 Td (insurance and retirement services organizations in the United States add value to our board of directors and to our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 386.75 Td (business.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 80.00 367.75 Td (John B. Frank) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 146.67 367.75 Td ( is Oaktree’) Tj ET Q q 0 0 0 rg BT 197.07 367.75 Td (s V) Tj ET Q q 0 0 0 rg BT 211.33 367.75 Td (ice Chairman and works closely with Messrs. Marks, Karsh and Wintrob in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 355.75 Td (managing the firm. He has been a director since May 2007. Mr) Tj ET Q q 0 0 0 rg BT 331.81 355.75 Td (. Frank joined in 2001 as General Counsel and was ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 343.75 Td (named Oaktree’) Tj ET Q q 0 0 0 rg BT 120.97 343.75 Td (s Managing Principal in early 2006, a position which he held for about nine years. Prior thereto, Mr) Tj ET Q q 0 0 0 rg BT 557.32 343.75 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 331.75 Td (Frank was a partner of the Los ) Tj ET Q q 0 0 0 rg BT 187.85 331.75 Td (Angeles law firm of Munger) Tj ET Q q 0 0 0 rg BT 308.46 331.75 Td (, ) Tj ET Q q 0 0 0 rg BT 313.84 331.75 Td (T) Tj ET Q q 0 0 0 rg BT 318.84 331.75 Td (olles & Olson LLP) Tj ET Q q 0 0 0 rg BT 397.04 331.75 Td (. While at that firm, he acted as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 319.75 Td (principal lawyer in a number of notable merger and acquisition transactions; as primary outside counsel to a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 307.75 Td (number of public and privately held corporations; and as special counsel to various boards of directors and special ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 295.75 Td (board committees. Prior to joining Munger ) Tj ET Q q 0 0 0 rg BT 241.02 295.75 Td (T) Tj ET Q q 0 0 0 rg BT 246.02 295.75 Td (olles in 1984, Mr) Tj ET Q q 0 0 0 rg BT 318.83 295.75 Td (. Frank served as a law clerk to the Honorable Frank ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 283.75 Td (M. Cof) Tj ET Q q 0 0 0 rg BT 79.27 283.75 Td (fin of the United States Court of ) Tj ET Q q 0 0 0 rg BT 221.02 283.75 Td (Appeals for the First Circuit. Prior to attending law school, Mr) Tj ET Q q 0 0 0 rg BT 492.24 283.75 Td (. Frank served ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 271.75 Td (as a Legislative ) Tj ET Q q 0 0 0 rg BT 121.16 271.75 Td (Assistant to the Honorable Robert F) Tj ET Q q 0 0 0 rg BT 279.02 271.75 Td (. Drinan, Member of Congress. Mr) Tj ET Q q 0 0 0 rg BT 432.40 271.75 Td (. Frank holds a B.A. degree ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 259.75 Td (with honors in history from W) Tj ET Q q 0 0 0 rg BT 178.75 259.75 Td (esleyan University and a J.D. ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 311.03 259.75 Td (magna cum laude) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 390.52 259.75 Td ( from the University of Michigan Law ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 247.75 Td (School, where he was Managing Editor of the Michigan Law Review and a member of the Order of the Coif. He is a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 235.75 Td (member of the State Bar of California and, while in private practice, was listed in W) Tj ET Q q 0 0 0 rg BT 416.09 235.75 Td (oodward & White’) Tj ET Q q 0 0 0 rg BT 494.28 235.75 Td (s Best ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 223.75 Td (Lawyers in ) Tj ET Q q 0 0 0 rg BT 100.02 223.75 Td (America. Mr) Tj ET Q q 0 0 0 rg BT 156.14 223.75 Td (. Frank is a trustee of W) Tj ET Q q 0 0 0 rg BT 262.10 223.75 Td (esleyan University) Tj ET Q q 0 0 0 rg BT 342.50 223.75 Td (, Polytechnic School, Good Samaritan Hospital of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 211.75 Td (Los ) Tj ET Q q 0 0 0 rg BT 68.35 211.75 Td (Angeles and the XPRIZE Foundation. Mr) Tj ET Q q 0 0 0 rg BT 251.79 211.75 Td (. Frank brings a deep knowledge of our business to our board of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 199.75 Td (directors, as well as many years of experience as a corporate lawyer) Tj ET Q q 0 0 0 rg BT 352.92 199.75 Td (. Mr) Tj ET Q q 0 0 0 rg BT 372.36 199.75 Td (. Frank has broad responsibility for our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 187.75 Td (business and his service on our board of directors helps ensure both that our board is well informed about our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 175.75 Td (operations and that the board’) Tj ET Q q 0 0 0 rg BT 182.70 175.75 Td (s priorities are implemented.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 80.00 156.75 Td (David M. Kirchheimer) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 182.25 156.75 Td ( has been our Chief Financial Of) Tj ET Q q 0 0 0 rg BT 325.48 156.75 Td (ficer since our founding, a Principal since 2002 and a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 144.75 Td (director since May 2007. Prior to joining Oaktree in 1995, Mr) Tj ET Q q 0 0 0 rg BT 319.02 144.75 Td (. Kirchheimer was a vice president and the Chief ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 132.75 Td (Administrative Of) Tj ET Q q 0 0 0 rg BT 125.95 132.75 Td (ficer of ) Tj ET Q q 0 0 0 rg BT 158.56 132.75 Td (T) Tj ET Q q 0 0 0 rg BT 164.30 132.75 Td (icketmaster Corporation, a leading ticket processing and distribution company) Tj ET Q q 0 0 0 rg BT 507.07 132.75 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 120.75 Td (Previously) Tj ET Q q 0 0 0 rg BT 95.39 120.75 Td (, he was Executive V) Tj ET Q q 0 0 0 rg BT 188.03 120.75 Td (ice President and Chief Financial Of) Tj ET Q q 0 0 0 rg BT 347.37 120.75 Td (ficer of Republic Pictures Corporation, a publicly ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 108.75 Td (held entertainment company) Tj ET Q q 0 0 0 rg BT 175.44 108.75 Td (. From 1979 to 1986, Mr) Tj ET Q q 0 0 0 rg BT 284.94 108.75 Td (. Kirchheimer was with Price W) Tj ET Q q 0 0 0 rg BT 422.38 108.75 Td (aterhouse in Los ) Tj ET Q q 0 0 0 rg BT 498.54 108.75 Td (Angeles, most ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 96.75 Td (recently serving as a senior audit manager) Tj ET Q q 0 0 0 rg BT 237.88 96.75 Td (. Mr) Tj ET Q q 0 0 0 rg BT 257.32 96.75 Td (. Kirchheimer graduated Phi Beta Kappa and ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 458.56 96.75 Td (summa cum laude) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 540.26 96.75 Td ( with ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 84.75 Td (a B.A. degree in economics from Colorado College and an M.B.A. in accounting and finance from the Booth School ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 72.75 Td (of Business of the University of Chicago. He is a Certified Public ) Tj ET Q q 0 0 0 rg BT 338.47 72.75 Td (Accountant \(inactive\). Mr) Tj ET Q q 0 0 0 rg BT 451.29 72.75 Td (. Kirchheimer serves on ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 60.75 Td (the Board of ) Tj ET Q q 0 0 0 rg BT 107.08 60.75 Td (T) Tj ET Q q 0 0 0 rg BT 112.82 60.75 Td (rustees of Huntington Memorial Hospital. ) Tj ET Q q 0 0 0 rg BT 298.46 60.75 Td (As our Chief Financial Of) Tj ET Q q 0 0 0 rg BT 409.44 60.75 Td (ficer) Tj ET Q q 0 0 0 rg BT 427.78 60.75 Td (, Mr) Tj ET Q q 0 0 0 rg BT 444.44 60.75 Td (. Kirchheimer has ) Tj ET Q endstream endobj 391 0 obj <> endobj 392 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (195) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (thorough knowledge of the day-to-day operations of our business. ) Tj ET Q q 0 0 0 rg BT 345.75 741.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 396.15 741.75 Td (, his extensive experience in financial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (reporting, accounting and controls adds a valuable resource to our board of directors.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 80.00 708.75 Td (Susan Gentile ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 149.46 708.75 Td (is our Chief ) Tj ET Q q 0 0 0 rg BT 202.27 708.75 Td (Accounting Of) Tj ET Q q 0 0 0 rg BT 264.90 708.75 Td (ficer and a Managing Director) Tj ET Q q 0 0 0 rg BT 395.52 708.75 Td (. Ms. Gentile joined Oaktree in 2013 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 696.75 Td (from the Clorox Company) Tj ET Q q 0 0 0 rg BT 163.19 696.75 Td (, where she was most recently Controller and Chief ) Tj ET Q q 0 0 0 rg BT 391.63 696.75 Td (Accounting Of) Tj ET Q q 0 0 0 rg BT 454.26 696.75 Td (ficer) Tj ET Q q 0 0 0 rg BT 472.60 696.75 Td (. ) Tj ET Q q 0 0 0 rg BT 480.38 696.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 530.78 696.75 Td (, she ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 684.75 Td (has held accounting, internal controls and financial reporting roles for Levi Strauss & Co.; Motorola, Inc.; and Next ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 672.75 Td (Level Communications, Inc. Ms. Gentile began her career in the audit and assurance practice at Deloitte & ) Tj ET Q q 0 0 0 rg BT 525.63 672.75 Td (T) Tj ET Q q 0 0 0 rg BT 530.63 672.75 Td (ouche ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 660.75 Td (LLP) Tj ET Q q 0 0 0 rg BT 66.50 660.75 Td (. She received her B.S. and B.A. degrees in finance from Boston University) Tj ET Q q 0 0 0 rg BT 400.38 660.75 Td (, School of Management. Ms. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 648.75 Td (Gentile is a Certified Public ) Tj ET Q q 0 0 0 rg BT 172.28 648.75 Td (Accountant.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 80.00 627.75 Td (Sheldon M. Stone) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 163.89 627.75 Td ( is a Principal and a co-founder and has been a director since May 2007. Mr) Tj ET Q q 0 0 0 rg BT 501.86 627.75 Td (. Stone is the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 615.75 Td (head of Oaktree’) Tj ET Q q 0 0 0 rg BT 123.75 615.75 Td (s high yield bond area. In this capacity) Tj ET Q q 0 0 0 rg BT 295.34 615.75 Td (, he serves as co-portfolio manager of Oaktree’) Tj ET Q q 0 0 0 rg BT 503.59 615.75 Td (s U.S. High ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 603.75 Td (Y) Tj ET Q q 0 0 0 rg BT 56.30 603.75 Td (ield Bond and Global High ) Tj ET Q q 0 0 0 rg BT 175.09 603.75 Td (Y) Tj ET Q q 0 0 0 rg BT 181.39 603.75 Td (ield Bond strategies and has supervisory responsibility for European High ) Tj ET Q q 0 0 0 rg BT 508.61 603.75 Td (Y) Tj ET Q q 0 0 0 rg BT 514.91 603.75 Td (ield ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 591.75 Td (Bonds. Mr) Tj ET Q q 0 0 0 rg BT 97.80 591.75 Td (. Stone, a co-founding member of Oaktree in 1995, established ) Tj ET Q q 0 0 0 rg BT 378.90 591.75 Td (TCW’) Tj ET Q q 0 0 0 rg BT 403.71 591.75 Td (s High ) Tj ET Q q 0 0 0 rg BT 434.65 591.75 Td (Y) Tj ET Q q 0 0 0 rg BT 440.95 591.75 Td (ield Bond department with ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 579.75 Td (Mr) Tj ET Q q 0 0 0 rg BT 61.11 579.75 Td (. Marks in 1985 and ran the department for ten years. Prior to joining ) Tj ET Q q 0 0 0 rg BT 369.42 579.75 Td (TCW) Tj ET Q q 0 0 0 rg BT 391.64 579.75 Td (, Mr) Tj ET Q q 0 0 0 rg BT 408.31 579.75 Td (. Stone worked with Mr) Tj ET Q q 0 0 0 rg BT 509.46 579.75 Td (. Marks at ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 567.75 Td (Citibank for two years where he performed credit analysis and managed high yield bond portfolios. From 1978 to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 555.75 Td (1983, Mr) Tj ET Q q 0 0 0 rg BT 88.91 555.75 Td (. Stone worked at ) Tj ET Q q 0 0 0 rg BT 169.33 555.75 Td (The Prudential Insurance Company where he was a director of corporate finance, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 543.75 Td (managing a fixed income portfolio exceeding $1 billion. Mr) Tj ET Q q 0 0 0 rg BT 309.59 543.75 Td (. Stone holds a B.A. degree from Bowdoin College and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 531.75 Td (an M.B.A. in accounting and finance from Columbia University) Tj ET Q q 0 0 0 rg BT 323.83 531.75 Td (. Mr) Tj ET Q q 0 0 0 rg BT 343.28 531.75 Td (. Stone serves as a ) Tj ET Q q 0 0 0 rg BT 431.47 531.75 Td (T) Tj ET Q q 0 0 0 rg BT 437.21 531.75 Td (rustee of Colonial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 519.75 Td (Williamsburg Foundation and serves on the investment committee of Bowdoin College. With over 35 years of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 507.75 Td (experience in the fixed income markets, Mr) Tj ET Q q 0 0 0 rg BT 240.08 507.75 Td (. Stone brings a wealth of knowledge to the board of directors. ) Tj ET Q q 0 0 0 rg BT 519.70 507.75 Td (As one of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 495.75 Td (our co-founders, he is also closely familiar with our business. His investment background and insights into the fixed ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 483.75 Td (income markets bring value to our board of directors and our business.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 80.00 462.75 Td (Robert E. Denham) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 166.68 462.75 Td ( has been a director since December 2007. Mr) Tj ET Q q 0 0 0 rg BT 374.57 462.75 Td (. Denham is a partner in the law firm of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 450.75 Td (Munger) Tj ET Q q 0 0 0 rg BT 83.35 450.75 Td (, ) Tj ET Q q 0 0 0 rg BT 88.73 450.75 Td (T) Tj ET Q q 0 0 0 rg BT 93.73 450.75 Td (olles & Olson LLP) Tj ET Q q 0 0 0 rg BT 171.93 450.75 Td (, having rejoined the firm as a partner in 1998 to advise clients on strategic and financial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 438.75 Td (issues, after serving as the Chairman and Chief Executive Of) Tj ET Q q 0 0 0 rg BT 319.95 438.75 Td (ficer of Salomon Inc. Mr) Tj ET Q q 0 0 0 rg BT 424.99 438.75 Td (. Denham joined Salomon in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 426.75 Td (late ) Tj ET Q q 0 0 0 rg BT 68.35 426.75 Td (August 1991 as General Counsel of Salomon and its subsidiary) Tj ET Q q 0 0 0 rg BT 348.33 426.75 Td (, Salomon Brothers, and became Chairman and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 414.75 Td (CEO of Salomon in June 1992. Prior to joining Salomon, Mr) Tj ET Q q 0 0 0 rg BT 316.25 414.75 Td (. Denham had been at Munger) Tj ET Q q 0 0 0 rg BT 451.34 414.75 Td (, ) Tj ET Q q 0 0 0 rg BT 456.72 414.75 Td (T) Tj ET Q q 0 0 0 rg BT 461.72 414.75 Td (olles & Olson LLP) Tj ET Q q 0 0 0 rg BT 541.03 414.75 Td ( for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 402.75 Td (twenty years, including five years as managing partner) Tj ET Q q 0 0 0 rg BT 290.68 402.75 Td (. Mr) Tj ET Q q 0 0 0 rg BT 307.35 402.75 Td (. Denham graduated ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 401.30 402.75 Td (magna cum laude) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 480.79 402.75 Td ( from the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 390.75 Td (University of ) Tj ET Q q 0 0 0 rg BT 107.61 390.75 Td (T) Tj ET Q q 0 0 0 rg BT 112.61 390.75 Td (exas, where he was elected to Phi Beta Kappa. He received a master) Tj ET Q q 0 0 0 rg BT 423.15 390.75 Td (’) Tj ET Q q 0 0 0 rg BT 425.20 390.75 Td (s degree in government from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 378.75 Td (Harvard University in 1968, and a J.D. from Harvard Law School in 1971, where he graduated ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 467.44 378.75 Td (magna cum laude) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 546.93 378.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 366.75 Td (and was a Case and Developments Editor of the Harvard Law Review) Tj ET Q q 0 0 0 rg BT 359.05 366.75 Td (. Mr) Tj ET Q q 0 0 0 rg BT 378.50 366.75 Td (. Denham is a member of the California, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 354.75 Td (American and Los ) Tj ET Q q 0 0 0 rg BT 132.83 354.75 Td (Angeles County Bar ) Tj ET Q q 0 0 0 rg BT 223.99 354.75 Td (Associations. Mr) Tj ET Q q 0 0 0 rg BT 296.80 354.75 Td (. Denham serves on the board of directors of the Russell ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 342.75 Td (Sage Foundation \(Chair\) and the James Irvine Foundation and is a trustee of the Good Samaritan Hospital of Los ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 330.75 Td (Angeles \(V) Tj ET Q q 0 0 0 rg BT 98.74 330.75 Td (ice Chairman\). He is also a public member of the Professional Ethics Executive Committee of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 318.75 Td (American Institute of Certified Public ) Tj ET Q q 0 0 0 rg BT 213.41 318.75 Td (Accountants. Mr) Tj ET Q q 0 0 0 rg BT 287.89 318.75 Td (. Denham presently serves on the boards of the Chevron ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 306.75 Td (Corporation, Fomento Economico Mexicano, S.A. de CV \(FEMSA\) and ) Tj ET Q q 0 0 0 rg BT 366.06 306.75 Td (The New ) Tj ET Q q 0 0 0 rg BT 408.68 306.75 Td (Y) Tj ET Q q 0 0 0 rg BT 414.43 306.75 Td (ork ) Tj ET Q q 0 0 0 rg BT 430.92 306.75 Td (T) Tj ET Q q 0 0 0 rg BT 436.66 306.75 Td (imes. Mr) Tj ET Q q 0 0 0 rg BT 477.21 306.75 Td (. Denham ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 294.75 Td (previously served on the board of W) Tj ET Q q 0 0 0 rg BT 209.90 294.75 Td (esco Financial Corporation and UGL) Tj ET Q q 0 0 0 rg BT 371.28 294.75 Td ( Limited. Mr) Tj ET Q q 0 0 0 rg BT 425.74 294.75 Td (. Denham has served as a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 282.75 Td (member of the board of directors of a number of publicly traded companies and, therefore, is experienced with ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 270.75 Td (board responsibilities, oversight and control which will benefit our board of directors and our business. Mr) Tj ET Q q 0 0 0 rg BT 516.35 270.75 Td (. Denham ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 258.75 Td (also provides a broader range of expertise on the board of directors given his background as a corporate lawyer ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 246.75 Td (and a former chief executive of) Tj ET Q q 0 0 0 rg BT 186.56 246.75 Td (ficer of a global financial services company) Tj ET Q q 0 0 0 rg BT 375.91 246.75 Td (, where among other responsibilities, he ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 234.75 Td (chaired the risk management committee.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 80.00 213.75 Td (Steven J. Gilbert ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 161.69 213.75 Td (has been a director since October 2016. He is the founder and Chairman of the Board of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 201.75 Td (Gilbert Global Equity Partners, L.P) Tj ET Q q 0 0 0 rg BT 201.56 201.75 Td (., an institutional investment firm established in 1997. In addition, Mr) Tj ET Q q 0 0 0 rg BT 504.50 201.75 Td (. Gilbert also ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 189.75 Td (founded Soros Capital, Commonwealth Capital Partners, and Chemical V) Tj ET Q q 0 0 0 rg BT 374.06 189.75 Td (enture Partners. He currently serves as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 177.75 Td (V) Tj ET Q q 0 0 0 rg BT 56.49 177.75 Td (ice Chairman of the Executive Board of MidOcean Equity Partners, LP) Tj ET Q q 0 0 0 rg BT 367.02 177.75 Td ( and Co-Chairman of Birch Grove Capital, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 165.75 Td (and has served on the boards of more than 25 companies over the span of his career) Tj ET Q q 0 0 0 rg BT 426.90 165.75 Td (. Mr) Tj ET Q q 0 0 0 rg BT 446.34 165.75 Td (. Gilbert received a J.D. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 153.75 Td (degree from Harvard Law School, an M.B.A. from Harvard Business School, and a B.S. in economics from the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 141.75 Td (Wharton School of the University of Pennsylvania. Mr) Tj ET Q q 0 0 0 rg BT 288.44 141.75 Td (. Gilbert’) Tj ET Q q 0 0 0 rg BT 325.49 141.75 Td (s investment and finance expertise add value to our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 129.75 Td (board of directors and to our business.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 80.00 108.75 Td (Larry W) Tj ET Q q 0 0 0 rg BT 116.49 108.75 Td (. Keele) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 148.73 108.75 Td ( has been a director since May 2007. Prior to his retirement in 2015, Mr) Tj ET Q q 0 0 0 rg BT 466.11 108.75 Td (. Keele was a co-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 96.75 Td (founder and Principal of Oaktree, where for over 20 years, he served as a portfolio manager and head of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 84.75 Td (Convertible Securities group. From 1986 to 1995, Mr) Tj ET Q q 0 0 0 rg BT 285.12 84.75 Td (. Keele managed ) Tj ET Q q 0 0 0 rg BT 363.33 84.75 Td (T) Tj ET Q q 0 0 0 rg BT 369.06 84.75 Td (rust Company of the W) Tj ET Q q 0 0 0 rg BT 471.14 84.75 Td (est’) Tj ET Q q 0 0 0 rg BT 486.52 84.75 Td (s Convertible ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 72.75 Td (V) Tj ET Q q 0 0 0 rg BT 55.93 72.75 Td (alue portfolios. Prior to joining ) Tj ET Q q 0 0 0 rg BT 193.04 72.75 Td (TCW) Tj ET Q q 0 0 0 rg BT 215.26 72.75 Td (, Mr) Tj ET Q q 0 0 0 rg BT 231.92 72.75 Td (. Keele organized and managed the NationsBank Equity Income Fund, a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 60.75 Td (commingled fund specializing in convertible securities and high yielding equities. He also served as a Security ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 48.75 Td (Analyst and Institutional Portfolio Manager) Tj ET Q q 0 0 0 rg BT 236.78 48.75 Td (. Mr) Tj ET Q q 0 0 0 rg BT 256.22 48.75 Td (. Keele holds a B.B.A. degree in Finance from ) Tj ET Q q 0 0 0 rg BT 461.71 48.75 Td (T) Tj ET Q q 0 0 0 rg BT 466.71 48.75 Td (ennessee ) Tj ET Q endstream endobj 393 0 obj <> endobj 394 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (196) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (T) Tj ET Q q 0 0 0 rg BT 55.00 741.75 Td (echnological University and an M.B.A. in Finance from the University of South Carolina. He is a CF) Tj ET Q q 0 0 0 rg BT 493.53 741.75 Td (A) Tj ET Q q 0 0 0 rg BT 499.65 741.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (charterholder) Tj ET Q q 0 0 0 rg BT 108.37 729.75 Td (. Mr) Tj ET Q q 0 0 0 rg BT 127.81 729.75 Td (. Keele’) Tj ET Q q 0 0 0 rg BT 160.99 729.75 Td (s investment and finance expertise and his familiarity with our company add value to our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (board of directors and to our business. Mr) Tj ET Q q 0 0 0 rg BT 237.32 717.75 Td (. Keele has extensive experience in that asset class. ) Tj ET Q q 0 0 0 rg BT 474.12 717.75 Td (As one of our co-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 705.75 Td (founders, he is also closely familiar with our business. His investment background and insights to the convertible ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 693.75 Td (markets bring value to our board of directors and our business.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 80.00 672.75 Td (D. Richard Masson) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 170.02 672.75 Td ( has been a director since May 2007. Prior to his retirement from Oaktree in 2009, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 660.75 Td (Mr) Tj ET Q q 0 0 0 rg BT 61.11 660.75 Td (. Masson was a co-founder and Principal of Oaktree, where he served as head of analysis for the Distressed ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 648.75 Td (Debt strategy from 1995 to 2001 and as co-head of analysis from 2001 to 2009. Prior thereto, he was Managing ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 636.75 Td (Director of ) Tj ET Q q 0 0 0 rg BT 98.72 636.75 Td (TCW and its af) Tj ET Q q 0 0 0 rg BT 164.67 636.75 Td (filiate, ) Tj ET Q q 0 0 0 rg BT 193.39 636.75 Td (TCW ) Tj ET Q q 0 0 0 rg BT 218.38 636.75 Td (Asset Management Company) Tj ET Q q 0 0 0 rg BT 349.38 636.75 Td (, and head of the Special Credits ) Tj ET Q q 0 0 0 rg BT 496.69 636.75 Td (Analytical ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 624.75 Td (Group. Prior to joining ) Tj ET Q q 0 0 0 rg BT 152.65 624.75 Td (TCW in 1988, Mr) Tj ET Q q 0 0 0 rg BT 227.67 624.75 Td (. Masson worked for three years at Houlihan, Lokey) Tj ET Q q 0 0 0 rg BT 455.37 624.75 Td (, Howard and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 612.75 Td (Zukin, Inc., where he was responsible for the valuation and analysis of securities and businesses. Prior to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 600.75 Td (Houlihan, Mr) Tj ET Q q 0 0 0 rg BT 106.14 600.75 Td (. Masson was a senior accountant with the Comprehensive Professional Services Group at Price ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 588.75 Td (W) Tj ET Q q 0 0 0 rg BT 59.07 588.75 Td (aterhouse in Los ) Tj ET Q q 0 0 0 rg BT 135.23 588.75 Td (Angeles. Mr) Tj ET Q q 0 0 0 rg BT 190.82 588.75 Td (. Masson holds a B.S. in Business ) Tj ET Q q 0 0 0 rg BT 344.23 588.75 Td (Administration from the University of California at ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 576.75 Td (Berkeley and an M.B.A. in finance from the University of California at Los ) Tj ET Q q 0 0 0 rg BT 375.16 576.75 Td (Angeles. He is a Certified Public ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 564.75 Td (Accountant \(inactive\). Mr) Tj ET Q q 0 0 0 rg BT 162.82 564.75 Td (. Masson’) Tj ET Q q 0 0 0 rg BT 205.43 564.75 Td (s investment and finance expertise and his familiarity with our company add ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 552.75 Td (value to our board of directors and to our business.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 80.00 531.75 Td (W) Tj ET Q q 0 0 0 rg BT 89.26 531.75 Td (ayne G. Pierson) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 164.84 531.75 Td ( has been a director since November 2007. Mr) Tj ET Q q 0 0 0 rg BT 372.73 531.75 Td (. Pierson currently serves as President of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 519.75 Td (Acorn Investors, LLC, an investor in OCGH which consists of six longstanding Oaktree clients who became ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 507.75 Td (institutional investors in Oaktree in February 2004. Mr) Tj ET Q q 0 0 0 rg BT 289.56 507.75 Td (. Pierson retired from Meyer Memorial ) Tj ET Q q 0 0 0 rg BT 459.98 507.75 Td (T) Tj ET Q q 0 0 0 rg BT 465.71 507.75 Td (rust \(a member of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 495.75 Td (Acorn Investors, LLC\) in 2014 after 32 years as its Chief Financial & Investment Of) Tj ET Q q 0 0 0 rg BT 415.54 495.75 Td (ficer) Tj ET Q q 0 0 0 rg BT 433.88 495.75 Td (. Prior to joining Meyer ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 483.75 Td (Memorial ) Tj ET Q q 0 0 0 rg BT 93.72 483.75 Td (T) Tj ET Q q 0 0 0 rg BT 99.45 483.75 Td (rust, Mr) Tj ET Q q 0 0 0 rg BT 132.79 483.75 Td (. Pierson served as treasurer of Gregory ) Tj ET Q q 0 0 0 rg BT 313.42 483.75 Td (Af) Tj ET Q q 0 0 0 rg BT 322.69 483.75 Td (filiates from 1980 until 1982. From 1973 until 1980, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 471.75 Td (he served as an audit supervisor with Ernst & ) Tj ET Q q 0 0 0 rg BT 253.25 471.75 Td (Y) Tj ET Q q 0 0 0 rg BT 259.00 471.75 Td (oung. Mr) Tj ET Q q 0 0 0 rg BT 300.69 471.75 Td (. Pierson initiated and conducted a comprehensive ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 459.75 Td (investment survey for the Foundation Financial Of) Tj ET Q q 0 0 0 rg BT 270.48 459.75 Td (ficers Group, representing more than 160 foundations with assets ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 447.75 Td (totaling approximately $250 billion for over 20 years. He has served on a number of private equity fund advisory ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 435.75 Td (boards and was a trustee for several private trusts. In addition, he serves on the board of directors of M Fund, Inc. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 423.75 Td (and is a principal with Clif) Tj ET Q q 0 0 0 rg BT 162.65 423.75 Td (ford Capital Partners, LLC. Mr) Tj ET Q q 0 0 0 rg BT 297.70 423.75 Td (. Pierson received a B.S. in business administration ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 528.37 423.75 Td (cum ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 50.00 411.75 Td (laude) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 74.47 411.75 Td ( from California State University) Tj ET Q q 0 0 0 rg BT 214.33 411.75 Td (, Northridge and is a Certified Public ) Tj ET Q q 0 0 0 rg BT 376.63 411.75 Td (Accountant and CF) Tj ET Q q 0 0 0 rg BT 461.68 411.75 Td (A) Tj ET Q q 0 0 0 rg BT 467.80 411.75 Td ( charterholder) Tj ET Q q 0 0 0 rg BT 528.95 411.75 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 399.75 Td (Mr) Tj ET Q q 0 0 0 rg BT 61.11 399.75 Td (. Pierson’) Tj ET Q q 0 0 0 rg BT 102.61 399.75 Td (s investment and finance expertise and his familiarity with our company add value to our board of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 387.75 Td (directors and to our business.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 80.00 366.75 Td (Marna C. Whittington) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 180.54 366.75 Td (, Ph.D., has been a director since June 2012. Ms. Whittington was the Chief ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 354.75 Td (Executive Of) Tj ET Q q 0 0 0 rg BT 106.51 354.75 Td (ficer of ) Tj ET Q q 0 0 0 rg BT 138.75 354.75 Td (Allianz Global Investors Capital from 2001 until her retirement in January 2012. From 2002 to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 342.75 Td (201) Tj ET Q q 0 0 0 rg BT 65.94 342.75 Td (1, she was Chief Operating Of) Tj ET Q q 0 0 0 rg BT 199.72 342.75 Td (ficer of ) Tj ET Q q 0 0 0 rg BT 231.95 342.75 Td (Allianz Global Investors, the parent company of ) Tj ET Q q 0 0 0 rg BT 443.74 342.75 Td (Allianz Global Investors ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 330.75 Td (Capital. Prior to that, she was Managing Director and Chief Operating Of) Tj ET Q q 0 0 0 rg BT 373.31 330.75 Td (ficer of Morgan Stanley Investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 318.75 Td (Management. Ms. Whittington started in the investment management industry in 1992, joining Philadelphia-based ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 306.75 Td (Miller ) Tj ET Q q 0 0 0 rg BT 76.11 306.75 Td (Anderson & Sherrerd. Previously) Tj ET Q q 0 0 0 rg BT 223.77 306.75 Td (, she was Executive V) Tj ET Q q 0 0 0 rg BT 321.42 306.75 Td (ice President and CFO of the University of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 294.75 Td (Pennsylvania, and earlier) Tj ET Q q 0 0 0 rg BT 161.74 294.75 Td (, Secretary of Finance for the State of Delaware. Ms. Whittington currently serves as a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 282.75 Td (director of Macy’) Tj ET Q q 0 0 0 rg BT 123.17 282.75 Td (s, Inc. and Phillips 66. She holds an M.S. degree and a Ph.D. from the University of Pittsburgh, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 270.75 Td (both in quantitative methods, and a B.A. degree in mathematics from the University of Delaware. Ms. Whittington’) Tj ET Q q 0 0 0 rg BT 552.84 270.75 Td (s ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 258.75 Td (investment and finance expertise and her familiarity with our company add value to our board of directors and to our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 246.75 Td (business.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 80.00 225.75 Td (T) Tj ET Q q 0 0 0 rg BT 85.74 225.75 Td (odd E. Molz ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 144.06 225.75 Td (is our General Counsel and Chief ) Tj ET Q q 0 0 0 rg BT 294.15 225.75 Td (Administrative Of) Tj ET Q q 0 0 0 rg BT 370.10 225.75 Td (ficer) Tj ET Q q 0 0 0 rg BT 388.44 225.75 Td (. He oversees the Compliance, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 213.75 Td (Internal ) Tj ET Q q 0 0 0 rg BT 85.58 213.75 Td (Audit and ) Tj ET Q q 0 0 0 rg BT 130.06 213.75 Td (Administration functions and all aspects of our legal activities, including fund formation, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 201.75 Td (acquisitions and other special projects. Prior to joining the firm in 2006, Mr) Tj ET Q q 0 0 0 rg BT 379.61 201.75 Td (. Molz was a partner of the Los ) Tj ET Q q 0 0 0 rg BT 518.57 201.75 Td (Angeles ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 189.75 Td (law firm of Munger) Tj ET Q q 0 0 0 rg BT 131.69 189.75 Td (, ) Tj ET Q q 0 0 0 rg BT 137.07 189.75 Td (T) Tj ET Q q 0 0 0 rg BT 142.07 189.75 Td (olles & Olson LLP) Tj ET Q q 0 0 0 rg BT 220.27 189.75 Td (, where his practice focused on tax and structuring aspects of complex and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 177.75 Td (novel business transactions. Prior to joining Munger ) Tj ET Q q 0 0 0 rg BT 284.38 177.75 Td (T) Tj ET Q q 0 0 0 rg BT 289.38 177.75 Td (olles, Mr) Tj ET Q q 0 0 0 rg BT 326.62 177.75 Td (. Molz served as a law clerk to the Honorable ) Tj ET Q q 0 0 0 rg BT 528.38 177.75 Td (Alfred ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 165.75 Td (T) Tj ET Q q 0 0 0 rg BT 55.00 165.75 Td (. Goodwin of the United States Court of ) Tj ET Q q 0 0 0 rg BT 231.21 165.75 Td (Appeals for the Ninth Circuit. Mr) Tj ET Q q 0 0 0 rg BT 375.16 165.75 Td (. Molz received a B.A. degree in political ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 153.75 Td (science ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 86.68 153.75 Td (cum laude) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 132.82 153.75 Td ( from Middlebury College and a J.D. degree with honors from the University of Chicago. While at ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 141.75 Td (Chicago, Mr) Tj ET Q q 0 0 0 rg BT 103.35 141.75 Td (. Molz served on the Law Review) Tj ET Q q 0 0 0 rg BT 249.54 141.75 Td (, received the John M. Olin Student Fellowship and was a member of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 129.75 Td (the Order of the Coif. Mr) Tj ET Q q 0 0 0 rg BT 160.04 129.75 Td (. Molz serves on the Board of ) Tj ET Q q 0 0 0 rg BT 292.71 129.75 Td (T) Tj ET Q q 0 0 0 rg BT 298.44 129.75 Td (rustees of the Children’) Tj ET Q q 0 0 0 rg BT 401.09 129.75 Td (s Hospital of Los ) Tj ET Q q 0 0 0 rg BT 477.25 129.75 Td (Angeles.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 108.75 Td (There are no family relationships among any of our executive of) Tj ET Q q 0 0 0 rg BT 361.64 108.75 Td (ficers and directors. ) Tj ET Q endstream endobj 395 0 obj <> endobj 396 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (197) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Board Structure and Governance) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 720.75 Td (Composition of Our Board of Directors) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 704.25 Td (Our operating agreement establishes a board of directors responsible for the oversight of our business and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 692.25 Td (operations. So long as the Oaktree control condition is satisfied, the number of directors that comprise our board of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 680.25 Td (directors is determined from time to time by our manager) Tj ET Q q 0 0 0 rg BT 300.65 680.25 Td (. Our board of directors consists of Messrs. Marks, Karsh, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 668.25 Td (Wintrob, Frank, Kirchheimer) Tj ET Q q 0 0 0 rg BT 173.93 668.25 Td (, Stone, Masson, Denham, Gilbert, Keele and Pierson and Ms. Whittington \(for a total of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 656.25 Td (12 directors\). ) Tj ET Q q 0 0 0 rg BT 113.36 656.25 Td (Actions by our board of directors must be taken with the approval of a majority of its members. So ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 644.25 Td (long as the Oaktree control condition is satisfied, our manager is entitled to designate all the members of our board ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 632.25 Td (of directors. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 606.75 Td (Control of Oaktree Capital Group Holdings GP) Tj ET Q q 0 0 0 rg BT 268.17 606.75 Td (, LLC ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 590.25 Td (Oaktree Capital Group Holdings GP) Tj ET Q q 0 0 0 rg BT 237.68 590.25 Td (, LLC acts as our manager and is the general partner of OCGH, which ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 578.25 Td (owns 100% of our outstanding Class B units. Under its operating agreement, Oaktree Capital Group Holdings GP) Tj ET Q q 0 0 0 rg BT 552.31 578.25 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 566.25 Td (LLC is managed by an executive committee that is comprised of our senior executives. In general, the executive ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 554.25 Td (committee seeks to act by consensus or) Tj ET Q q 0 0 0 rg BT 227.30 554.25 Td (, absent a consensus, by a vote of a majority of the voting percentage of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 542.25 Td (the executive committee members \(or such higher threshold as may be determined from time to time by the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 530.25 Td (executive committee\). ) Tj ET Q q 0 0 0 rg BT 152.63 530.25 Td (The executive committee also, from time to time, delegates to one or more of its members or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 518.25 Td (to other persons such authority and duties as the executive committee may deem advisable. Oaktree Capital ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 506.25 Td (Group Holdings GP) Tj ET Q q 0 0 0 rg BT 135.42 506.25 Td (, LLC has agreed that the admission of any member who is not a “principal” as defined under its ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 494.25 Td (operating agreement is prohibited. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 473.25 Td (The voting percentage of each member of the executive committee is equal to the fraction, expressed as a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 461.25 Td (percentage, the numerator of which is his percentage interest in OCGH and the denominator of which is the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 449.25 Td (aggregate percentage interest of all of the executive committee members in OCGH. ) Tj ET Q q 0 0 0 rg BT 424.63 449.25 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 475.58 449.25 Td (, members with ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 437.25 Td (larger economic stakes in the Oaktree Operating Group \(including Messrs. Marks, Karsh and Stone\) are able to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 425.25 Td (exercise greater voting power than members with smaller economic stakes on any matter submitted to the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 413.25 Td (executive committee for a vote. ) Tj ET Q q 0 0 0 rg BT 193.77 413.25 Td (The combined voting percentages of Messrs. Marks and Karsh by themselves are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 401.25 Td (suf) Tj ET Q q 0 0 0 rg BT 63.16 401.25 Td (ficient, for the foreseeable future, to constitute a majority of the voting percentage of the executive committee ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 389.25 Td (members. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 363.75 Td (Controlled Company Exemption ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 347.25 Td (Under the NYSE rules, a company of which more than 50% of the voting power is held by an individual, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 335.25 Td (group or another company is a “controlled company” and may elect not to comply with certain NYSE corporate ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 323.25 Td (governance standards. Because our senior executives represent more than 50% of our voting power) Tj ET Q q 0 0 0 rg BT 496.37 323.25 Td (, we are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 311.25 Td (therefore a “controlled company) Tj ET Q q 0 0 0 rg BT 190.44 311.25 Td (.” ) Tj ET Q q 0 0 0 rg BT 201.56 311.25 Td (As a result, we have elected not to comply with certain NYSE corporate ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 299.25 Td (governance standards, including the requirement that a majority of the board of directors consist of independent ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 287.25 Td (directors and the requirement to have a compensation committee and a nominating/corporate governance ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 275.25 Td (committee that are composed entirely of independent directors with written charters addressing the committee’) Tj ET Q q 0 0 0 rg BT 537.83 275.25 Td (s ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 263.25 Td (purpose and responsibilities. In addition, we are not required to hold annual meetings of our unitholders. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 251.25 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 100.95 251.25 Td (, our Class ) Tj ET Q q 0 0 0 rg BT 150.97 251.25 Td (A) Tj ET Q q 0 0 0 rg BT 157.08 251.25 Td ( unitholders do not have the same protections af) Tj ET Q q 0 0 0 rg BT 370.37 251.25 Td (forded to shareholders of companies that ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 239.25 Td (are subject to all of the NYSE corporate governance requirements. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 213.75 Td (Audit Committee ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 197.25 Td (The purpose of the audit committee is to assist our board of directors in overseeing and monitoring the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 185.25 Td (quality and integrity of our financial statements, our compliance with legal and regulatory requirements, the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 173.25 Td (performance of our internal audit function and our independent registered public accounting firm’) Tj ET Q q 0 0 0 rg BT 475.63 173.25 Td (s qualifications, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 161.25 Td (independence and performance. Our audit committee is comprised of Messrs. Gilbert, Masson and Pierson and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 149.25 Td (Ms. Whittington. Our board of directors has determined that Messrs. Gilbert, Masson and Pierson and Ms. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 137.25 Td (Whittington meet the independence standards and financial literacy requirements for service on an audit committee ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 125.25 Td (of a board of directors under Rule 10A-3 promulgated under the Exchange ) Tj ET Q q 0 0 0 rg BT 381.32 125.25 Td (Act and the NYSE rules. In addition, our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 113.25 Td (board of directors has determined that each of Messrs. Gilbert, Masson and Pierson and Ms. Whittington is an ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 101.25 Td (“audit committee financial expert” within the meaning of Item 407\(d\)\(5\) of Regulation S-K and has “accounting or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 89.25 Td (related financial management expertise” under applicable NYSE rules. ) Tj ET Q q 0 0 0 rg BT 366.66 89.25 Td (The audit committee has a charter that is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 77.25 Td (available on our website at www) Tj ET Q q 0 0 0 rg BT 192.30 77.25 Td (.oaktreecapital.com under the “Unitholders – Investor Relations” section.) Tj ET Q endstream endobj 397 0 obj <> endobj 398 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (198) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Executive Committee ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 725.25 Td (Our board of directors has established an executive committee of the Company that acts, when necessary) Tj ET Q q 0 0 0 rg BT 548.39 725.25 Td (, in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 713.25 Td (place of our full board of directors during intervals between meetings of our board of directors. ) Tj ET Q q 0 0 0 rg BT 470.04 713.25 Td (This executive ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 701.25 Td (committee consists of Messrs. Marks, Karsh, Wintrob and Frank. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 675.75 Td (Code of Ethics ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 659.25 Td (W) Tj ET Q q 0 0 0 rg BT 95.26 659.25 Td (e have a Code of Ethics, which applies to our directors, executive of) Tj ET Q q 0 0 0 rg BT 395.24 659.25 Td (ficers and employees and is available ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 647.25 Td (on our website at www) Tj ET Q q 0 0 0 rg BT 150.05 647.25 Td (.oaktreecapital.com under the “Unitholders – Investor Relations” section. W) Tj ET Q q 0 0 0 rg BT 485.02 647.25 Td (e intend to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 635.25 Td (disclose any amendment to or waiver of the Code of Ethics on behalf of a director or executive of) Tj ET Q q 0 0 0 rg BT 477.83 635.25 Td (ficer either on our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 623.25 Td (website or in a Current Report on Form 8-K filing.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 597.75 Td (Corporate Governance Guidelines ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 581.25 Td (Our board of directors has a governance policy) Tj ET Q q 0 0 0 rg BT 293.15 581.25 Td (, which addresses matters such as the board of directors’) Tj ET Q q 0 0 0 rg BT 545.67 581.25 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 569.25 Td (responsibilities and duties, the board of directors’) Tj ET Q q 0 0 0 rg BT 266.42 569.25 Td ( composition, policies and compensation and director ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 557.25 Td (independence, and is available on our website at www) Tj ET Q q 0 0 0 rg BT 290.16 557.25 Td (.oaktreecapital.com under the “Unitholders – Investor ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 545.25 Td (Relations” section. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 519.75 Td (Communications to the Board of Directors ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 503.25 Td (The non-management members of our board of directors meet quarterly) Tj ET Q q 0 0 0 rg BT 403.74 503.25 Td (. ) Tj ET Q q 0 0 0 rg BT 411.90 503.25 Td (The non-management directors ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 491.25 Td (have currently selected Mr) Tj ET Q q 0 0 0 rg BT 166.72 491.25 Td (. Pierson, one of our non-management directors, to lead these meetings for 2017. ) Tj ET Q q 0 0 0 rg BT 532.49 491.25 Td (All ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 479.25 Td (interested parties, including any employee or unitholder) Tj ET Q q 0 0 0 rg BT 294.59 479.25 Td (, may send communications to the non-management ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 467.25 Td (members of our board of directors by writing to: Oaktree Capital Group, LLC, ) Tj ET Q q 0 0 0 rg BT 391.26 467.25 Td (Attn: General Counsel, 333 South ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 455.25 Td (Grand ) Tj ET Q q 0 0 0 rg BT 80.02 455.25 Td (A) Tj ET Q q 0 0 0 rg BT 86.51 455.25 Td (venue, 28th Floor) Tj ET Q q 0 0 0 rg BT 163.78 455.25 Td (, Los ) Tj ET Q q 0 0 0 rg BT 187.69 455.25 Td (Angeles, CA) Tj ET Q q 0 0 0 rg BT 242.72 455.25 Td ( 90071. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 429.75 Td (Section 16\(a\) Beneficial Ownership Reporting Compliance ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 404.25 Td (Section 16\(a\) of the Exchange ) Tj ET Q q 0 0 0 rg BT 222.76 404.25 Td (Act requires our executive of) Tj ET Q q 0 0 0 rg BT 349.31 404.25 Td (ficers and directors and persons who ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 392.25 Td (beneficially own more than ten percent of a registered class of our equity securities to file initial reports of ownership ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 380.25 Td (and reports of changes in ownership with the SEC and furnish us with copies of all Section 16\(a\) forms they file. ) Tj ET Q q 0 0 0 rg BT 548.96 380.25 Td (T) Tj ET Q q 0 0 0 rg BT 553.96 380.25 Td (o ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 368.25 Td (our knowledge, based solely on our review of the copies of such reports furnished to us or written representations ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 356.25 Td (from such persons that they were not required to file a Form 5 to report previously unreported ownership or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 344.25 Td (changes in ownership, we believe that, with respect to the year ended December 31, 2016, such persons complied ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 332.25 Td (with all such filing requirements. However) Tj ET Q q 0 0 0 rg BT 236.19 332.25 Td (, in connection with our review) Tj ET Q q 0 0 0 rg BT 369.59 332.25 Td (, we determined that filings in prior years ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 320.25 Td (were not made for certain transactions involving Messrs. Frank, Keele, Karsh, Stone and Masson and Caleb ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 308.25 Td (Kramer) Tj ET Q q 0 0 0 rg BT 82.23 308.25 Td (. Each such transaction related to a gift of OCGH units to trusts or other personal planning vehicles ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 296.25 Td (controlled by each such of) Tj ET Q q 0 0 0 rg BT 166.00 296.25 Td (ficer or director) Tj ET Q q 0 0 0 rg BT 232.13 296.25 Td (. ) Tj ET Q q 0 0 0 rg BT 239.92 296.25 Td (As a result, each of Messrs. Frank, Keele, Karsh, Kramer) Tj ET Q q 0 0 0 rg BT 492.24 296.25 Td (, Stone and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 284.25 Td (Masson made a late filing on Form 4 on March 1, 2017 reporting one, one, three, one, one and one late ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 272.25 Td (transactions, respectively) Tj ET Q q 0 0 0 rg BT 161.53 272.25 Td (, which should have been reported on one, one, two, one, one and one Form 4\(s\) or Form ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 260.25 Td (5\(s\), respectively) Tj ET Q q 0 0 0 rg BT 124.83 260.25 Td (. No change in the aggregate number of OCGH units that may be deemed to be beneficially ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 248.25 Td (owned by any such of) Tj ET Q q 0 0 0 rg BT 146.55 248.25 Td (ficer or director occurred as a result of any of these transactions.) Tj ET Q endstream endobj 399 0 obj <> endobj 400 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (199) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 741.75 Td (Item 1) Tj ET Q q 0 0 0 rg BT 77.85 741.75 Td (1. Executive Compensation ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 720.75 Td (Compensation Discussion and ) Tj ET Q q 0 0 0 rg BT 198.04 720.75 Td (Analysis ) Tj ET Q BT /F5 10.00 Tf ET 0 0 0 RG /GS0 gs 0.73 w 0 i [] 0 d 1 J 1 j 3 M 49.5 698.32421875 m 284.6171875 698.32421875 l s q 0 0 0 rg BT 49.50 699.75 Td (Overview of Compensation Philosophy and Program ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 678.75 Td (Our fundamental philosophy in compensating our key personnel has always been, and continues to be, to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 666.75 Td (align their interests with the interests of our clients and unitholders and to motivate and reward long-term ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 654.75 Td (performance. ) Tj ET Q q 0 0 0 rg BT 113.79 654.75 Td (The alignment of interests is a defining characteristic of our business and one that we believe best ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 642.75 Td (optimizes long-term sustainable value. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 621.75 Td (With respect to our compensation program, we have generally established a uniform approach to the mix of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 609.75 Td (our employees’) Tj ET Q q 0 0 0 rg BT 116.94 609.75 Td ( compensation between base salary and discretionary cash bonus and, for certain employees whose ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 597.75 Td (total compensation exceeds certain levels \(including certain of our named executive of) Tj ET Q q 0 0 0 rg BT 430.64 597.75 Td (ficers, as discussed in more ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 585.75 Td (detail below\), annual equity grants. Beginning with compensation determinations made at the end of 2015, we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 573.75 Td (shifted a portion of cash compensation from year-end bonus to base salary) Tj ET Q q 0 0 0 rg BT 380.06 573.75 Td (. ) Tj ET Q q 0 0 0 rg BT 388.21 573.75 Td (This approach is not intended to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 561.75 Td (increase an employee’) Tj ET Q q 0 0 0 rg BT 149.38 561.75 Td (s total compensation but instead to modify the mix and timing of the payment of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 549.75 Td (compensation. Our executive committee determined that it was beneficial to facilitate our employees’) Tj ET Q q 0 0 0 rg BT 497.13 549.75 Td ( ability to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 537.75 Td (manage their financial planning by shifting more of their cash compensation to base salary) Tj ET Q q 0 0 0 rg BT 447.87 537.75 Td (. In addition, a higher ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 525.75 Td (base salary allows us to make our year-end bonuses more discretionary and variable based on individual, group, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 513.75 Td (and firm performance.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 492.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 135.90 492.75 Td (, our employees whose total annual compensation \(excluding payments in respect of carried ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 480.75 Td (interest\) is $/Ł/€300,000 or greater receive annual equity grants that are a fixed percentage of the employee’) Tj ET Q q 0 0 0 rg BT 528.50 480.75 Td (s total ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 468.75 Td (compensation rather than based on title or responsibility) Tj ET Q q 0 0 0 rg BT 296.68 468.75 Td (. W) Tj ET Q q 0 0 0 rg BT 314.27 468.75 Td (e wanted equity awards to be a set and predictable part ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 456.75 Td (of our more highly compensated employees’) Tj ET Q q 0 0 0 rg BT 245.34 456.75 Td ( annual compensation without using supplemental equity grants to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 444.75 Td (accomplish that goal. W) Tj ET Q q 0 0 0 rg BT 158.25 444.75 Td (e think that using a fixed formula for equity grants based on an employee’) Tj ET Q q 0 0 0 rg BT 482.71 444.75 Td (s total ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 432.75 Td (compensation range for determining the size of annual equity grants makes our compensation process for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 420.75 Td (employees simpler and more transparent.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 399.75 Td (The following individuals were our named executive of) Tj ET Q q 0 0 0 rg BT 324.89 399.75 Td (ficers \(“NEOs”\) for fiscal year 2016: \(a\) Jay S. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 387.75 Td (Wintrob, our Chief Executive Of) Tj ET Q q 0 0 0 rg BT 189.37 387.75 Td (ficer; \(b\) David M. Kirchheimer) Tj ET Q q 0 0 0 rg BT 323.85 387.75 Td (, our Chief Financial Of) Tj ET Q q 0 0 0 rg BT 425.94 387.75 Td (ficer; \(c\) John B. Frank, our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 375.75 Td (V) Tj ET Q q 0 0 0 rg BT 55.99 375.75 Td (ice Chairman; \(d\) Stephen ) Tj ET Q q 0 0 0 rg BT 174.94 375.75 Td (A. Kaplan, one of our Principals, who retired from Oaktree on December 31, 2016; and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 363.75 Td (\(e\) ) Tj ET Q q 0 0 0 rg BT 64.32 363.75 Td (T) Tj ET Q q 0 0 0 rg BT 69.32 363.75 Td (odd E. Molz, our General Counsel and Chief ) Tj ET Q q 0 0 0 rg BT 267.77 363.75 Td (Administrative Of) Tj ET Q q 0 0 0 rg BT 343.72 363.75 Td (ficer) Tj ET Q q 0 0 0 rg BT 362.06 363.75 Td (.) Tj ET Q BT /F5 10.00 Tf ET 0 0 0 RG /GS0 gs 0.73 w 0 i [] 0 d 1 J 1 j 3 M 49.5 341.32421875 m 294.0458984375 341.32421875 l s q 0 0 0 rg BT 49.50 342.75 Td (Compensation Elements for Named Executive Officers ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 321.75 Td (Our NEOs have dif) Tj ET Q q 0 0 0 rg BT 169.24 321.75 Td (ferent compensation arrangements. ) Tj ET Q q 0 0 0 rg BT 332.48 321.75 Td (The following table identifies the dif) Tj ET Q q 0 0 0 rg BT 487.95 321.75 Td (ferent ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 309.75 Td (compensation elements used in each arrangement:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 287.25 m 50 264.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 287.25 m 307 287.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307 287.25 m 307 264.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 564 287.25 m 564 264.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307 287.25 m 564 287.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 264.25 m 50 234.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 264.25 m 307 264.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307 264.25 m 307 234.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 564 264.25 m 564 234.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307 264.25 m 564 264.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 234.25 m 50 214.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 234.25 m 307 234.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307 234.25 m 307 214.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 564 234.25 m 564 214.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307 234.25 m 564 234.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 214.25 m 50 184.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 214.25 m 307 214.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307 214.25 m 307 184.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 564 214.25 m 564 184.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307 214.25 m 564 214.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 184.25 m 50 154.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 184.25 m 307 184.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307 184.25 m 307 154.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 564 184.25 m 564 154.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307 184.25 m 564 184.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 154.25 m 50 115.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 154.25 m 307 154.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 115.25 m 307 115.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307 154.25 m 307 115.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 564 154.25 m 564 115.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307 154.25 m 564 154.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307 115.25 m 564 115.25 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 273.17 Td (NEO) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.50 273.17 Td (Compensation Elements) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.50 254.47 Td (Jay S. Wintrob) Tj ET Q BT /F3 10.00 Tf ET /GS0 gs q 8.78 0 0 10.09 309.50 252.66 cm /I30 Do Q q 0 0 0 rg BT 318.28 254.82 Td ( ) Tj ET Q q 0 0 0 rg BT 321.06 254.82 Td ( ) Tj ET Q q 0 0 0 rg BT 323.84 254.82 Td (Profit ) Tj ET Q q 0 0 0 rg BT 349.95 254.82 Td (sharing ) Tj ET Q q 0 0 0 rg BT 385.53 254.82 Td (arrangement) Tj ET Q BT /F3 10.00 Tf ET /GS0 gs q 8.78 0 0 10.09 309.50 242.66 cm /I31 Do Q q 0 0 0 rg BT 318.28 244.82 Td ( ) Tj ET Q q 0 0 0 rg BT 321.06 244.82 Td ( ) Tj ET Q q 0 0 0 rg BT 323.84 244.82 Td (Equity ) Tj ET Q q 0 0 0 rg BT 354.41 244.82 Td (grants) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.50 224.47 Td (David M. Kirchheimer) Tj ET Q /GS0 gs q 132.73 0 0 9.09 309.50 222.66 cm /I32 Do Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.50 204.47 Td (John B. Frank) Tj ET Q BT /F3 10.00 Tf ET /GS0 gs q 8.78 0 0 10.09 309.50 202.66 cm /I33 Do Q q 0 0 0 rg BT 318.28 204.82 Td ( ) Tj ET Q q 0 0 0 rg BT 321.06 204.82 Td ( ) Tj ET Q q 0 0 0 rg BT 323.84 204.82 Td (Profit ) Tj ET Q q 0 0 0 rg BT 349.95 204.82 Td (sharing ) Tj ET Q q 0 0 0 rg BT 385.53 204.82 Td (arrangement) Tj ET Q BT /F3 10.00 Tf ET /GS0 gs q 8.78 0 0 10.09 309.50 192.66 cm /I34 Do Q q 0 0 0 rg BT 318.28 194.82 Td ( ) Tj ET Q q 0 0 0 rg BT 321.06 194.82 Td ( ) Tj ET Q q 0 0 0 rg BT 323.84 194.82 Td (Carried ) Tj ET Q q 0 0 0 rg BT 359.40 194.82 Td (interest ) Tj ET Q q 0 0 0 rg BT 394.97 194.82 Td (payments) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.50 174.47 Td (Stephen A. Kaplan) Tj ET Q BT /F3 10.00 Tf ET /GS0 gs q 8.78 0 0 10.09 309.50 172.66 cm /I35 Do Q q 0 0 0 rg BT 318.28 174.82 Td ( ) Tj ET Q q 0 0 0 rg BT 321.06 174.82 Td ( ) Tj ET Q q 0 0 0 rg BT 323.84 174.82 Td (Base ) Tj ET Q q 0 0 0 rg BT 349.41 174.82 Td (salary) Tj ET Q BT /F3 10.00 Tf ET /GS0 gs q 8.78 0 0 10.09 309.50 162.66 cm /I36 Do Q q 0 0 0 rg BT 318.28 164.82 Td ( ) Tj ET Q q 0 0 0 rg BT 321.06 164.82 Td ( ) Tj ET Q q 0 0 0 rg BT 323.84 164.82 Td (Carried ) Tj ET Q q 0 0 0 rg BT 359.40 164.82 Td (interest ) Tj ET Q q 0 0 0 rg BT 394.97 164.82 Td (payments) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.50 144.47 Td (Todd E. Molz) Tj ET Q BT /F3 10.00 Tf ET /GS0 gs q 8.78 0 0 10.09 309.50 142.66 cm /I37 Do Q q 0 0 0 rg BT 318.28 144.82 Td ( ) Tj ET Q q 0 0 0 rg BT 321.06 144.82 Td ( ) Tj ET Q q 0 0 0 rg BT 323.84 144.82 Td (Base ) Tj ET Q q 0 0 0 rg BT 349.41 144.82 Td (salary) Tj ET Q BT /F3 10.00 Tf ET /GS0 gs q 8.78 0 0 10.09 309.50 132.66 cm /I38 Do Q q 0 0 0 rg BT 318.28 134.82 Td ( ) Tj ET Q q 0 0 0 rg BT 321.06 134.82 Td ( ) Tj ET Q q 0 0 0 rg BT 323.28 134.82 Td (Annual ) Tj ET Q q 0 0 0 rg BT 357.20 134.82 Td (bonus) Tj ET Q BT /F3 10.00 Tf ET /GS0 gs q 8.78 0 0 10.09 309.50 122.66 cm /I39 Do Q q 0 0 0 rg BT 318.28 124.82 Td ( ) Tj ET Q q 0 0 0 rg BT 321.06 124.82 Td ( ) Tj ET Q q 0 0 0 rg BT 323.84 124.82 Td (Equity ) Tj ET Q q 0 0 0 rg BT 354.41 124.82 Td (grants) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 91.75 Td (Other than base salary and annual equity grants, which we described above, we first discuss the other ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 79.75 Td (compensation elements of our NEOs generally) Tj ET Q q 0 0 0 rg BT 255.53 79.75 Td (, then we discuss each NEO’) Tj ET Q q 0 0 0 rg BT 383.19 79.75 Td (s compensation arrangement ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 67.75 Td (individually) Tj ET Q q 0 0 0 rg BT 97.67 67.75 Td (.) Tj ET Q endstream endobj 401 0 obj <> endobj 402 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (200) Tj ET Q BT /F5 10.00 Tf ET 0 0 0 RG /GS0 gs 0.73 w 0 i [] 0 d 1 J 1 j 3 M 49.5 740.32421875 m 279.060546875 740.32421875 l s q 0 0 0 rg BT 49.50 741.75 Td (Indirect Ownership of the Oaktree Operating Group ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 720.75 Td (All of our executive of) Tj ET Q q 0 0 0 rg BT 180.92 720.75 Td (ficers, including our NEOs, have indirect equity stakes in the Oaktree Operating ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 708.75 Td (Group through their holdings of OCGH units and/or Class ) Tj ET Q q 0 0 0 rg BT 305.19 708.75 Td (A) Tj ET Q q 0 0 0 rg BT 311.31 708.75 Td ( units or) Tj ET Q q 0 0 0 rg BT 346.33 708.75 Td (, in the case of Mr) Tj ET Q q 0 0 0 rg BT 425.25 708.75 Td (. Wintrob, EVUs. Equity ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 696.75 Td (grants further align the interests of our NEOs with those of our unitholders. ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 49.50 675.75 Td (OCGH Units) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 654.75 Td (OCGH units entitle our NEOs who hold such units to a portion of the aggregate earnings of the Oaktree ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 642.75 Td (Operating Group, which allows our NEOs to realize appreciation in the value of our units by) Tj ET Q q 0 0 0 rg BT 451.75 642.75 Td (, subject to the approval ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 630.75 Td (of our board of directors, exchanging such units for Class ) Tj ET Q q 0 0 0 rg BT 304.64 630.75 Td (A) Tj ET Q q 0 0 0 rg BT 310.75 630.75 Td ( units, which they can sell. For purposes of our financial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 618.75 Td (statements, we treat distributions paid on the OCGH units as distributions on equity rather than as compensation, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 606.75 Td (and therefore these payments are not reflected in the Summary Compensation ) Tj ET Q q 0 0 0 rg BT 400.07 606.75 Td (T) Tj ET Q q 0 0 0 rg BT 405.07 606.75 Td (able below) Tj ET Q q 0 0 0 rg BT 452.33 606.75 Td (. ) Tj ET Q q 0 0 0 rg BT 460.11 606.75 Td (As described under ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 594.75 Td (“Certain Relationships and Related ) Tj ET Q q 0 0 0 rg BT 207.19 594.75 Td (T) Tj ET Q q 0 0 0 rg BT 212.92 594.75 Td (ransactions, and Director Independence—Exchange ) Tj ET Q q 0 0 0 rg BT 446.96 594.75 Td (Agreement,” subject to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 582.75 Td (certain restrictions, each OCGH unitholder will have the right, subject to the approval of our board of directors, to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 570.75 Td (exchange his or her OCGH units into Class ) Tj ET Q q 0 0 0 rg BT 242.92 570.75 Td (A) Tj ET Q q 0 0 0 rg BT 249.04 570.75 Td ( units, an equivalent amount of cash based on then-prevailing market ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 558.75 Td (prices, other consideration of equal value or any combination of the foregoing as determined by our board of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 546.75 Td (directors pursuant to the terms of an exchange agreement. In addition, the general partner of OCGH may at its sole ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 534.75 Td (discretion cause a mandatory sale or exchange of OCGH units owned by any OCGH unitholder) Tj ET Q q 0 0 0 rg BT 470.28 534.75 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 513.75 Td (Our NEOs will forfeit all their unvested OCGH units when they leave Oaktree for any reason unless the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 501.75 Td (departure is due to death, disability) Tj ET Q q 0 0 0 rg BT 203.86 501.75 Td (, or) Tj ET Q q 0 0 0 rg BT 217.75 501.75 Td (, for certain awards, termination without cause, in which case all unvested ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 489.75 Td (units automatically vest in full, or if the forfeiture requirement is waived by us. ) Tj ET Q q 0 0 0 rg BT 394.66 489.75 Td (All of our NEOs are subject to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 477.75 Td (transfer restrictions in respect of their OCGH units by virtue of the fact that each of our NEOs must obtain board ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 465.75 Td (approval to exchange their OCGH units for Class ) Tj ET Q q 0 0 0 rg BT 268.49 465.75 Td (A) Tj ET Q q 0 0 0 rg BT 274.61 465.75 Td ( units, which may be sold, or the equivalent amount of cash as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 453.75 Td (discussed above. ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 49.50 432.75 Td (Grants of Units Under the 201) Tj ET Q q 0 0 0 rg BT 181.60 432.75 Td (1 Plan ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 411.75 Td (Since the adoption of the Oaktree Capital Group, LLC 201) Tj ET Q q 0 0 0 rg BT 341.59 411.75 Td (1 Equity Incentive Plan \(our “201) Tj ET Q q 0 0 0 rg BT 485.93 411.75 Td (1 Plan”\), all ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 399.75 Td (grants of equity-based awards to be made to our NEOs, whether of OCGH units, Class ) Tj ET Q q 0 0 0 rg BT 435.79 399.75 Td (A) Tj ET Q q 0 0 0 rg BT 441.91 399.75 Td ( units or EVUs, are being ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 387.75 Td (made pursuant to the terms and conditions of the 201) Tj ET Q q 0 0 0 rg BT 285.57 387.75 Td (1 Plan. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 366.75 Td (As of December 31, 2016, our NEOs beneficially owned the following number of OCGH units, EVUs, and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 354.75 Td (Class ) Tj ET Q q 0 0 0 rg BT 76.73 354.75 Td (A) Tj ET Q q 0 0 0 rg BT 82.85 354.75 Td ( units: ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 288.25 m 308 288.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316 288.25 m 372 288.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 288.25 m 435 288.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 288.25 m 499 288.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 288.25 m 563 288.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 288.25 m 308 288.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316 288.25 m 372 288.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 288.25 m 435 288.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 288.25 m 499 288.25 l s BT /F2 7.00 Tf ET 0 0 0 RG /GS0 gs 0.73 w 0 i [] 0 d 1 J 1 j 3 M 52.5 291.144677734375 m 71.5654296875 291.144677734375 l s q 0 0 0 rg BT 52.50 292.25 Td (Name) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 262.50 299.25 Td (Number of ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 256.00 292.25 Td (OCGH Units ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 298.39 295.59 Td (\(1\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 326.00 299.25 Td (Number of) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 334.35 292.25 Td (EVUs) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 389.50 299.25 Td (Number of) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 384.65 292.25 Td (Class A Units) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 448.20 299.25 Td (Total Number) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 457.45 292.25 Td (of Units) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 511.35 327.25 Td (Percentage of) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 517.95 320.25 Td (Beneficial) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 512.10 313.25 Td (Ownership of) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 521.45 306.25 Td (Oaktree) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 517.95 299.25 Td (Operating) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 524.00 292.25 Td (Group) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 277.65 Td (Jay S. Wintrob) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 114.45 277.20 Td (......................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 295.50 277.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 328.45 277.65 Td (2,000,000) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 403.95 277.65 Td (28,128) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 455.45 277.65 Td (2,028,128) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 555.95 277.65 Td (*) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 262.65 Td (David M. Kirchheimer) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 141.95 262.20 Td (...........................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 264.45 262.65 Td (1,407,097) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 359.50 262.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 403.95 262.65 Td (66,803) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 455.45 262.65 Td (1,473,900) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 555.95 262.65 Td (*) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 247.65 Td (John B. Frank) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 111.95 247.20 Td (.......................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 264.45 247.65 Td (2,100,397) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 359.50 247.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 403.95 247.65 Td (75,185) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 455.45 247.65 Td (2,175,582) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 541.90 247.65 Td (1.4) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 554.45 247.65 Td (%) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 232.65 Td (Stephen A. Kaplan) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 129.45 232.20 Td (................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 264.45 232.65 Td (1,672,328) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 359.50 232.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 398.95 232.65 Td (100,181) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 455.45 232.65 Td (1,772,509) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 541.90 232.65 Td (1.2) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 554.45 232.65 Td (%) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 217.65 Td (Todd E. Molz) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 109.45 217.20 Td (........................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 271.95 217.65 Td (202,304) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 359.50 217.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 403.95 217.65 Td (99,177) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 462.95 217.65 Td (301,481) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 555.95 217.65 Td (*) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 199.25 m 150 199.25 l s BT /F1 10.00 Tf ET BT /F3 9.00 Tf ET q 0 0 0 rg BT 49.50 188.95 Td (* ) Tj ET Q q 0 0 0 rg BT 72.00 188.95 Td (Less than 1%) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 49.50 178.15 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 72.00 178.15 Td (Following the May 2007 Restructuring, the OCGH unitholders’) Tj ET Q q 0 0 0 rg BT 318.28 178.15 Td ( interests in OCGH continued to take into account any ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 167.35 Td (disproportionate sharing in historical incentive income in accordance with the terms of the OCGH limited partnership ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 156.55 Td (agreement that were in ef) Tj ET Q q 0 0 0 rg BT 173.90 156.55 Td (fect prior to the May 2007 Restructuring. ) Tj ET Q q 0 0 0 rg BT 338.98 156.55 Td (As a result, distributions to the OCGH unitholders by ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 145.75 Td (OCGH that are attributable to historical incentive income \(i.e., attributable to funds formed before 2007\) are not made pro ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 134.95 Td (rata in proportion to the OCGH unitholders’) Tj ET Q q 0 0 0 rg BT 242.75 134.95 Td ( interest in OCGH units but instead will be adjusted to account for the ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 124.15 Td (disproportionate sharing of historical incentive income. ) Tj ET Q q 0 0 0 rg BT 293.45 124.15 Td (The figures included in this table do not reflect an NEO’) Tj ET Q q 0 0 0 rg BT 513.41 124.15 Td (s rights to ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 113.35 Td (historical incentive income, if applicable.) Tj ET Q endstream endobj 403 0 obj <> endobj 404 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (201) Tj ET Q BT /F5 10.00 Tf ET 0 0 0 RG /GS0 gs 0.73 w 0 i [] 0 d 1 J 1 j 3 M 49.5 740.32421875 m 178.0791015625 740.32421875 l s q 0 0 0 rg BT 49.50 741.75 Td (Profit Sharing ) Tj ET Q q 0 0 0 rg BT 112.49 741.75 Td (Arrangements ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 720.75 Td (W) Tj ET Q q 0 0 0 rg BT 94.76 720.75 Td (e pay three of our NEOs a certain percentage of our profits comprised of fee-related earnings, net ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 708.75 Td (investment income and net incentive income with certain adjustments.) Tj ET Q BT /F5 10.00 Tf ET 0 0 0 RG /GS0 gs 0.73 w 0 i [] 0 d 1 J 1 j 3 M 49.5 686.32421875 m 208.4599609375 686.32421875 l s q 0 0 0 rg BT 49.50 687.75 Td (Carried Interest or Incentive Income) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 666.75 Td (T) Tj ET Q q 0 0 0 rg BT 91.06 666.75 Td (wo of our NEOs receive a portion of the incentive income generated by our funds through their ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 654.75 Td (participation interests in the carry pools generated by the general partners of these funds. ) Tj ET Q q 0 0 0 rg BT 450.11 654.75 Td (The carry pools \(and our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 642.75 Td (NEOs’) Tj ET Q q 0 0 0 rg BT 78.02 642.75 Td ( participation therein\) are referred to as our “Carry Plans.” Under the terms of our closed-end funds, we \(and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 630.75 Td (our employees who share in our carried interest\) are generally not entitled to carried interest distributions \(other ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 618.75 Td (than tax distributions\) until the investors in our funds have received a return of all contributed capital plus a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 606.75 Td (preferred return, which is typically 8%. Because the aggregate amount of carried interest payable through our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 594.75 Td (Carry Plans is directly tied to the realized performance of the funds, we believe this fosters a strong alignment of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 582.75 Td (interests among the investors in those funds and our executives, and therefore benefits both those investors and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 570.75 Td (our unitholders.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 549.75 Td (Participation in carried interest is a primary means of compensating and motivating many of our investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 537.75 Td (professionals. W) Tj ET Q q 0 0 0 rg BT 126.01 537.75 Td (e believe such participation is one of the most ef) Tj ET Q q 0 0 0 rg BT 339.29 537.75 Td (fective ways to align the interests of our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 525.75 Td (investment professionals with our clients and unitholders. Mr) Tj ET Q q 0 0 0 rg BT 319.08 525.75 Td (. Wintrob, or Howard Marks, our Co-Chairman, and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 513.75 Td (Bruce Karsh, our Co-Chairman and Chief Investment Of) Tj ET Q q 0 0 0 rg BT 297.21 513.75 Td (ficer) Tj ET Q q 0 0 0 rg BT 315.54 513.75 Td (, as applicable, determine the amount of incentive ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 501.75 Td (income to grant in respect of a given fund based on their estimation of the individual’) Tj ET Q q 0 0 0 rg BT 421.77 501.75 Td (s current and projected role in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 489.75 Td (the investment activities of the particular fund. In making these determinations, we consider a multitude of factors, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 477.75 Td (including the individual’) Tj ET Q q 0 0 0 rg BT 152.17 477.75 Td (s role in raising the particular fund, sourcing and evaluating potential investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 465.75 Td (opportunities for the fund, managing and monitoring existing investments within the fund, running the larger ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 453.75 Td (investment strategy and managing the investment and other professionals involved in the fund’) Tj ET Q q 0 0 0 rg BT 467.90 453.75 Td (s activities. None of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 441.75 Td (these factors is assigned a particular weighting when determining the amount of carried interest to grant to a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 429.75 Td (particular individual.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 408.75 Td (W) Tj ET Q q 0 0 0 rg BT 94.76 408.75 Td (e expect to continue to use participation in carried interest as a cornerstone of compensation for our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 396.75 Td (investment professionals who manage closed-end funds. Grants of participation interests in incentive income for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 384.75 Td (our closed-end funds are made in each specific fund and are subject to vesting, which typically runs over five years, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 372.75 Td (with accelerated vesting for death, disability or termination without cause. V) Tj ET Q q 0 0 0 rg BT 384.68 372.75 Td (esting serves as an employment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 360.75 Td (retention mechanism and thereby enhances the alignment of interests between a participant and us. W) Tj ET Q q 0 0 0 rg BT 504.03 360.75 Td (e believe ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 348.75 Td (that vesting of participation in incentive income motivates participants to remain in our employ over the long term. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 336.75 Td (For purposes of our financial statements, we treat the income allocated to all of our personnel who have ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 324.75 Td (participation interests in the incentive income generated by our funds as compensation, and the allocations of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 312.75 Td (incentive income earned by our NEOs in respect of 2016 are accordingly set forth under “All Other Compensation” ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 300.75 Td (in the Summary Compensation ) Tj ET Q q 0 0 0 rg BT 189.38 300.75 Td (T) Tj ET Q q 0 0 0 rg BT 194.38 300.75 Td (able below) Tj ET Q q 0 0 0 rg BT 241.64 300.75 Td (, even though they may not have received such amounts in cash.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 279.75 Td (The Carry Pools largely consist of the participation interests in certain of our investment funds paid to the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 267.75 Td (general partners of those funds, which in turn have granted a portion of such interests to our investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 255.75 Td (professionals. Certain of our other investment funds and separate accounts that we manage also pay incentive ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 243.75 Td (fees directly to certain members of the Oaktree Operating Group. Our NEOs with profit sharing arrangements will ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 231.75 Td (also receive such incentive fees.) Tj ET Q BT /F5 10.00 Tf ET 0 0 0 RG /GS0 gs 0.73 w 0 i [] 0 d 1 J 1 j 3 M 49.5 209.32421875 m 216.2578125 209.32421875 l s q 0 0 0 rg BT 49.50 210.75 Td (Compensation of the Individual NEOs) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 189.75 Td (A. ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 103.50 189.75 Td (Jay S. W) Tj ET Q q 0 0 0 rg BT 143.42 189.75 Td (introb) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 168.75 Td (W) Tj ET Q q 0 0 0 rg BT 94.76 168.75 Td (e entered into an employment agreement with Mr) Tj ET Q q 0 0 0 rg BT 312.10 168.75 Td (. Wintrob for a term of employment that began on ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 156.75 Td (November 1, 2014 and, subject to earlier termination, ends on December 31, 2019. Pursuant to the employment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 144.75 Td (agreement, Mr) Tj ET Q q 0 0 0 rg BT 113.97 144.75 Td (. Wintrob received an equity grant comprised of the EVUs and is entitled to receive certain profit ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 132.75 Td (sharing payments and other equity grants, which are discussed below) Tj ET Q q 0 0 0 rg BT 357.45 132.75 Td (. Mr) Tj ET Q q 0 0 0 rg BT 376.90 132.75 Td (. Wintrob may be entitled to additional ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 120.75 Td (payments from us, if and to the extent that certain other incentive awards from his prior employer are otherwise not ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 108.75 Td (paid \(and he remains entitled to such payments under the terms of his employment agreement with us\).) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 87.75 Td (The principal elements of Mr) Tj ET Q q 0 0 0 rg BT 211.11 87.75 Td (. Wintrob’) Tj ET Q q 0 0 0 rg BT 253.16 87.75 Td (s compensation are an equity grant and a profit sharing arrangement. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 75.75 Td (However) Tj ET Q q 0 0 0 rg BT 88.41 75.75 Td (, Mr) Tj ET Q q 0 0 0 rg BT 105.07 75.75 Td (. Wintrob’) Tj ET Q q 0 0 0 rg BT 147.12 75.75 Td (s equity grant, called an equity value unit, or EVU, is a special form of partnership interest in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 63.75 Td (OCGH, called a profits interest, that is currently only held by him. Its features are dif) Tj ET Q q 0 0 0 rg BT 421.70 63.75 Td (ferent from the OCGH units ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 51.75 Td (held by other members of management because it is not exchangeable for Oaktree Class ) Tj ET Q q 0 0 0 rg BT 446.94 51.75 Td (A) Tj ET Q q 0 0 0 rg BT 453.06 51.75 Td ( units and has value ) Tj ET Q endstream endobj 405 0 obj <> endobj 406 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (202) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 741.75 Td (only to the extent certain distributions plus the value of our Class ) Tj ET Q q 0 0 0 rg BT 337.44 741.75 Td (A) Tj ET Q q 0 0 0 rg BT 343.56 741.75 Td ( units on the relevant measurement dates ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 729.75 Td (exceed the applicable “Base V) Tj ET Q q 0 0 0 rg BT 183.85 729.75 Td (alue,” which is \(a\) $61.00 for the performance period January 1, 2015 – December ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 717.75 Td (31, 2019, \(b\) $65.00 for the performance period January 1, 2015 – December 31, 2020 and \(c\) $69.00 for the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 705.75 Td (performance period January 1, 2015 – December 31, 2021. ) Tj ET Q q 0 0 0 rg BT 317.82 705.75 Td (The EVUs are structured so that, at fixed future dates, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 693.75 Td (their value is measured and recapitalized into OCGH units. ) Tj ET Q q 0 0 0 rg BT 315.00 693.75 Td (The EVU structure serves as an incentive for Mr) Tj ET Q q 0 0 0 rg BT 527.31 693.75 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 681.75 Td (Wintrob to create value in our Class ) Tj ET Q q 0 0 0 rg BT 210.13 681.75 Td (A) Tj ET Q q 0 0 0 rg BT 216.25 681.75 Td ( units and the level of cash distributions to OCGH units.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 49.50 660.75 Td (EVU Grant to Mr) Tj ET Q q 0 0 0 rg BT 123.04 660.75 Td (. W) Tj ET Q q 0 0 0 rg BT 137.94 660.75 Td (introb) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 639.75 Td (In connection with his appointment as our chief executive of) Tj ET Q q 0 0 0 rg BT 349.36 639.75 Td (ficer) Tj ET Q q 0 0 0 rg BT 367.70 639.75 Td (, Mr) Tj ET Q q 0 0 0 rg BT 384.37 639.75 Td (. Wintrob was awarded 2,000,000 EVUs ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 627.75 Td (under our 201) Tj ET Q q 0 0 0 rg BT 111.03 627.75 Td (1 Plan, which EVU award was amended in 2015 to extend the applicable performance period. ) Tj ET Q q 0 0 0 rg BT 530.54 627.75 Td (Their ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 615.75 Td (value is measured in three tranches at fixed future dates, at which time they are recapitalized as fully vested OCGH ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 603.75 Td (units, like those held by the other NEOs.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 582.75 Td (The determination of how many OCGH units Mr) Tj ET Q q 0 0 0 rg BT 296.14 582.75 Td (. Wintrob will receive when the EVUs are recapitalized will ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 570.75 Td (generally be made in three tranches after December 31, 2019, December 31, 2020 and December 31, 2021. ) Tj ET Q q 0 0 0 rg BT 534.06 570.75 Td (The ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 558.75 Td (recapitalizations could occur earlier) Tj ET Q q 0 0 0 rg BT 205.13 558.75 Td (, in the event of Mr) Tj ET Q q 0 0 0 rg BT 287.40 558.75 Td (. Wintrob’) Tj ET Q q 0 0 0 rg BT 329.45 558.75 Td (s termination due to death or disability) Tj ET Q q 0 0 0 rg BT 497.14 558.75 Td (, or upon ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 546.75 Td (certain other acceleration events, which are discussed below under “) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 353.00 546.75 Td (Potential Payments Upon T) Tj ET Q q 0 0 0 rg BT 473.81 546.75 Td (ermination of ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 49.50 534.75 Td (Employment or Change in Control at 2016 ) Tj ET Q q 0 0 0 rg BT 238.87 534.75 Td (Y) Tj ET Q q 0 0 0 rg BT 244.99 534.75 Td (ear End) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 280.01 534.75 Td (.” Except for certain distributions described below) Tj ET Q q 0 0 0 rg BT 500.12 534.75 Td (, Mr) Tj ET Q q 0 0 0 rg BT 516.79 534.75 Td (. Wintrob ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 522.75 Td (will not realize any value from the EVUs unless and until such recapitalizations occur) Tj ET Q q 0 0 0 rg BT 423.02 522.75 Td (.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 85.50 501.75 Td (EVU V) Tj ET Q q 0 0 0 rg BT 115.14 501.75 Td (aluation and Recapitalization.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 245.78 501.75 Td ( ) Tj ET Q q 0 0 0 rg BT 251.16 501.75 Td (The number of OCGH units that Mr) Tj ET Q q 0 0 0 rg BT 406.22 501.75 Td (. Wintrob will receive in respect of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 489.75 Td (the EVUs will generally be determined based on the appreciation of our Class ) Tj ET Q q 0 0 0 rg BT 394.70 489.75 Td (A) Tj ET Q q 0 0 0 rg BT 400.82 489.75 Td ( units and certain distributions made ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 477.75 Td (with respect to OCGH units over the period beginning January 1, 2015 and ending on each of December 31, 2019, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 465.75 Td (December 31, 2020, and December 31, 2021, with one-third of the EVUs recapitalizing on each date. ) Tj ET Q q 0 0 0 rg BT 501.81 465.75 Td (The number ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 453.75 Td (of OCGH units will be determined by \(1\) calculating the excess \(if any\) of \(A\) the sum of \(x\) the volume-weighted ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 441.75 Td (average price of a Class ) Tj ET Q q 0 0 0 rg BT 159.56 441.75 Td (A) Tj ET Q q 0 0 0 rg BT 165.68 441.75 Td ( unit over a period of 60 business days before and 60 business days after each of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 429.75 Td (December 31, 2019, December 31, 2020, and December 31, 2021 and \(y\) the aggregate cash distributions made ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 417.75 Td (on a per-OCGH unit basis in respect of such period, excluding distributions attributable to net incentive income from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 405.75 Td (certain Oaktree funds listed in Mr) Tj ET Q q 0 0 0 rg BT 195.68 405.75 Td (. Wintrob’) Tj ET Q q 0 0 0 rg BT 237.73 405.75 Td (s employment agreement, over \(B\) the Base V) Tj ET Q q 0 0 0 rg BT 442.63 405.75 Td (alues of $61.00, $65.00, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 393.75 Td (and $69.00, respectively) Tj ET Q q 0 0 0 rg BT 157.16 393.75 Td (, \(2\) multiplying such excess by one-third of 2,000,000 \(the aggregate number of EVUs\) on ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 381.75 Td (each of the applicable recapitalization dates, and \(3\) dividing that amount by the applicable volume-weighted ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 369.75 Td (average price of a Class ) Tj ET Q q 0 0 0 rg BT 159.56 369.75 Td (A) Tj ET Q q 0 0 0 rg BT 165.68 369.75 Td ( unit described in this paragraph.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 85.50 348.75 Td (Distributions on EVUs.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 185.54 348.75 Td ( Commencing in 2016, Mr) Tj ET Q q 0 0 0 rg BT 302.26 348.75 Td (. Wintrob will also be eligible to receive cash distributions ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 336.75 Td (in respect of the EVUs. ) Tj ET Q q 0 0 0 rg BT 157.15 336.75 Td (The cash distributions are designed to deliver to Mr) Tj ET Q q 0 0 0 rg BT 383.38 336.75 Td (. Wintrob the same cash distributions he ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 324.75 Td (would receive if he held a certain number of OCGH units \(“reference OCGH units”\), other than distributions ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 312.75 Td (attributable to net incentive income for certain investment funds listed in Mr) Tj ET Q q 0 0 0 rg BT 380.22 312.75 Td (. Wintrob’) Tj ET Q q 0 0 0 rg BT 422.27 312.75 Td (s employment agreement. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 300.75 Td (These distributions are designed to align his interests with those of holders of OCGH units and Class ) Tj ET Q q 0 0 0 rg BT 496.96 300.75 Td (A) Tj ET Q q 0 0 0 rg BT 503.07 300.75 Td ( units and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 288.75 Td (also to incentivize him to achieve certain performance conditions in order to receive the distributions.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 267.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 267.75 Td (The reference OCGH units are not real OCGH units; they represent a reference point for purposes of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 255.75 Td (calculating cash distributions only) Tj ET Q q 0 0 0 rg BT 251.17 255.75 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 234.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 234.75 Td (The number of reference OCGH units based of) Tj ET Q q 0 0 0 rg BT 311.20 234.75 Td (f of which the cash distributions are to be calculated is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 222.75 Td (determined by application of a vesting schedule \(described below\) and a performance condition. ) Tj ET Q q 0 0 0 rg BT 533.57 222.75 Td (The ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 210.75 Td (performance condition for each year is appreciation in value in a Class ) Tj ET Q q 0 0 0 rg BT 417.01 210.75 Td (A) Tj ET Q q 0 0 0 rg BT 423.12 210.75 Td ( unit and in the aggregate cash ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 198.75 Td (distributions made on a per-OCGH unit basis over a pre-set hurdle.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 177.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 177.75 Td (Once the number of reference OCGH units is determined for a given fiscal year \(commencing with ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 165.75 Td (2016\), Mr) Tj ET Q q 0 0 0 rg BT 145.74 165.75 Td (. Wintrob will be entitled to receive, for each reference OCGH unit, the amount of the per-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 153.75 Td (OCGH unit distributions all OCGH unitholders otherwise receive for the applicable year) Tj ET Q q 0 0 0 rg BT 487.01 153.75 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 132.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 132.75 Td (Mr) Tj ET Q q 0 0 0 rg BT 114.61 132.75 Td (. Wintrob’) Tj ET Q q 0 0 0 rg BT 156.66 132.75 Td (s entitlement to cash distributions in one year does not mean he will be entitled to them in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 120.75 Td (the next year) Tj ET Q q 0 0 0 rg BT 160.76 120.75 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 99.75 Td (The calculation of the cash distributions is described more specifically below) Tj ET Q q 0 0 0 rg BT 385.78 99.75 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 78.75 Td (T) Tj ET Q q 0 0 0 rg BT 90.50 78.75 Td (o be eligible to receive cash distributions in respect of any of 2016-2021, the sum of \(x\) the volume-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 66.75 Td (weighted average price of an Oaktree Class ) Tj ET Q q 0 0 0 rg BT 246.28 66.75 Td (A) Tj ET Q q 0 0 0 rg BT 252.40 66.75 Td ( unit over a period of 60 business days before and 60 business days ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 54.75 Td (after the end of the preceding fiscal year \(the “end of year VW) Tj ET Q q 0 0 0 rg BT 322.61 54.75 Td (AP”\) and \(y\) the aggregate cash distributions made ) Tj ET Q endstream endobj 407 0 obj <> endobj 408 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (203) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 741.75 Td (on a per-OCGH unit basis in respect of such fiscal year and, if applicable, all preceding fiscal years commencing ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 729.75 Td (with 2015, excluding distributions attributable to net incentive income from certain Oaktree funds listed in Mr) Tj ET Q q 0 0 0 rg BT 525.30 729.75 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 717.75 Td (Wintrob’) Tj ET Q q 0 0 0 rg BT 85.99 717.75 Td (s employment agreement \(“eligible cash distributions”\), must exceed the pre-set hurdle for the year) Tj ET Q q 0 0 0 rg BT 522.31 717.75 Td (. If this ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 705.75 Td (performance condition is not met, then Mr) Tj ET Q q 0 0 0 rg BT 233.48 705.75 Td (. Wintrob will not be entitled to any cash distributions in respect of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 693.75 Td (EVUs for the year) Tj ET Q q 0 0 0 rg BT 127.87 693.75 Td (. If the condition is met, Mr) Tj ET Q q 0 0 0 rg BT 247.36 693.75 Td (. Wintrob will be entitled to cash distributions, in the amounts described ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 681.75 Td (below) Tj ET Q q 0 0 0 rg BT 75.08 681.75 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 660.75 Td (The number of reference OCGH units with which Mr) Tj ET Q q 0 0 0 rg BT 315.03 660.75 Td (. Wintrob will be credited, and which determine the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 648.75 Td (value of his cash distributions in the year) Tj ET Q q 0 0 0 rg BT 229.05 648.75 Td (, will be:) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 627.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 627.75 Td (2,000,000 EVUs \(reduced to 1,333,334 with respect to 2020 and 666,667 with respect to 2021\), ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 103.50 615.75 Td (multiplied by) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 594.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 594.75 Td (Mr) Tj ET Q q 0 0 0 rg BT 114.61 594.75 Td (. Wintrob’) Tj ET Q q 0 0 0 rg BT 156.66 594.75 Td (s vested percentage in the EVUs as of the December 31 preceding the year of distribution, ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 103.50 582.75 Td (multiplied by) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 561.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 561.75 Td (the amount by which the end of year VW) Tj ET Q q 0 0 0 rg BT 283.23 561.75 Td (AP) Tj ET Q q 0 0 0 rg BT 296.39 561.75 Td ( plus the eligible cash distributions exceeds the applicable ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 549.75 Td (annual hurdle, ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 169.66 549.75 Td (divided by) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 528.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 528.75 Td (the end of year VW) Tj ET Q q 0 0 0 rg BT 188.73 528.75 Td (AP) Tj ET Q q 0 0 0 rg BT 200.78 528.75 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 507.75 Td (Distributions in respect of the reference OCGH units for a year are paid quarterly) Tj ET Q q 0 0 0 rg BT 441.03 507.75 Td (, after each quarter is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 495.75 Td (completed \(so, distributions for the first quarter are paid in the second quarter) Tj ET Q q 0 0 0 rg BT 390.79 495.75 Td (, distributions for the second quarter ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 483.75 Td (are made in the third quarter) Tj ET Q q 0 0 0 rg BT 175.13 483.75 Td (, and so on\). Subject to Mr) Tj ET Q q 0 0 0 rg BT 294.64 483.75 Td (. Wintrob’) Tj ET Q q 0 0 0 rg BT 336.69 483.75 Td (s continued employment, the vested percentage is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 471.75 Td (20% on December 31, 2015, 40% on December 31, 2016, 60% on December 31, 2017, 80% on December 31, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 459.75 Td (2018 and 100% on December 31, 2019.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 438.75 Td (The annual hurdles selected serve as an ongoing assessment of the Company’) Tj ET Q q 0 0 0 rg BT 435.53 438.75 Td (s performance and are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 426.75 Td (intended to motivate and reward Mr) Tj ET Q q 0 0 0 rg BT 206.25 426.75 Td (. Wintrob for directing and managing the Company in a way that enables it to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 414.75 Td (exceed the targeted performance – by reference to two measures, Class ) Tj ET Q q 0 0 0 rg BT 372.45 414.75 Td (A) Tj ET Q q 0 0 0 rg BT 378.57 414.75 Td ( unit price and certain cash distributions ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 402.75 Td (– over the relevant time period. Whether these performance conditions will be achieved depends on a number of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 390.75 Td (factors, many of which are not predictable at this time, but our assessment is that they are ambitious but ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 378.75 Td (achievable. For 2016, the performance condition was not achieved. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 357.75 Td (W) Tj ET Q q 0 0 0 rg BT 94.76 357.75 Td (e believe the EVUs are well designed to align Mr) Tj ET Q q 0 0 0 rg BT 309.32 357.75 Td (. Wintrob’) Tj ET Q q 0 0 0 rg BT 351.37 357.75 Td (s compensation with the total return achieved ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 345.75 Td (by the Company’) Tj ET Q q 0 0 0 rg BT 124.36 345.75 Td (s unitholders because the number of OCGH units Mr) Tj ET Q q 0 0 0 rg BT 356.69 345.75 Td (. Wintrob will ultimately receive upon the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 333.75 Td (recapitalization of the EVUs into OCGH units at the end of the relevant performance period is a function of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 321.75 Td (amount by which the volume-weighted average price of a Class ) Tj ET Q q 0 0 0 rg BT 332.43 321.75 Td (A) Tj ET Q q 0 0 0 rg BT 338.55 321.75 Td ( unit and the applicable distributions described ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 309.75 Td (above exceed the applicable Base V) Tj ET Q q 0 0 0 rg BT 210.54 309.75 Td (alue of $61.00, $65.00 and $69.00 for the performance period in question. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 297.75 Td (Similarly) Tj ET Q q 0 0 0 rg BT 86.54 297.75 Td (, his level of participation in distributions during any given performance period will be based on the extent to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 285.75 Td (which the volume-weighted average price of a Class ) Tj ET Q q 0 0 0 rg BT 282.96 285.75 Td (A) Tj ET Q q 0 0 0 rg BT 289.08 285.75 Td ( unit and the applicable distributions exceed a pre-set hurdle ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 273.75 Td (for each of the relevant performance periods.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 49.50 252.75 Td (Profit Sharing for Mr) Tj ET Q q 0 0 0 rg BT 138.60 252.75 Td (. W) Tj ET Q q 0 0 0 rg BT 153.51 252.75 Td (introb) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 231.75 Td (Pursuant to his employment agreement, Mr) Tj ET Q q 0 0 0 rg BT 276.70 231.75 Td (. Wintrob is entitled to profit sharing payments equal to a fixed ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 219.75 Td (percentage of certain of Oaktree’) Tj ET Q q 0 0 0 rg BT 194.96 219.75 Td (s operating profit and income. Specifically) Tj ET Q q 0 0 0 rg BT 381.54 219.75 Td (, Mr) Tj ET Q q 0 0 0 rg BT 398.20 219.75 Td (. Wintrob’) Tj ET Q q 0 0 0 rg BT 440.25 219.75 Td (s share of profit and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 207.75 Td (income excludes net incentive income on closed-end funds and certain other funds raised before Mr) Tj ET Q q 0 0 0 rg BT 490.87 207.75 Td (. Wintrob’) Tj ET Q q 0 0 0 rg BT 532.92 207.75 Td (s ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 195.75 Td (employment. ) Tj ET Q q 0 0 0 rg BT 112.12 195.75 Td (The fixed percentage is 1.5% in each of 2015-2019, up to the level of profit and income in 2014 and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 183.75 Td (1.75% of profit and income that exceeds the 2014 level, if any) Tj ET Q q 0 0 0 rg BT 321.71 183.75 Td (. In all cases, Mr) Tj ET Q q 0 0 0 rg BT 396.73 183.75 Td (. Wintrob’) Tj ET Q q 0 0 0 rg BT 438.78 183.75 Td (s profit sharing payments ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 171.75 Td (will have a floor of $5,000,000 per year) Tj ET Q q 0 0 0 rg BT 221.28 171.75 Td (, pro-rated for partial years. Payments will be made in a combination of cash ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 159.75 Td (and Class ) Tj ET Q q 0 0 0 rg BT 96.19 159.75 Td (A) Tj ET Q q 0 0 0 rg BT 102.31 159.75 Td ( units, but at least the first $3,000,000 in each year will be paid in cash. ) Tj ET Q q 0 0 0 rg BT 421.21 159.75 Td (The annual equity grants made ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 147.75 Td (to our of) Tj ET Q q 0 0 0 rg BT 86.01 147.75 Td (ficers generally) Tj ET Q q 0 0 0 rg BT 152.52 147.75 Td (, which are discussed under “) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 282.58 147.75 Td (Overview of Compensation Philosophy and Program) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 514.92 147.75 Td (” on page ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 135.75 Td (199, above, are made in Class ) Tj ET Q q 0 0 0 rg BT 187.36 135.75 Td (A) Tj ET Q q 0 0 0 rg BT 193.48 135.75 Td ( units. Mr) Tj ET Q q 0 0 0 rg BT 236.82 135.75 Td (. Wintrob requested that the equity grants made to him in respect of his ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 123.75 Td (profit sharing entitlement be made as Class ) Tj ET Q q 0 0 0 rg BT 244.05 123.75 Td (A) Tj ET Q q 0 0 0 rg BT 250.16 123.75 Td ( units rather than OCGH units so that his equity compensation relating ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 111.75 Td (to his profit share is the same as the annual equity grants made to other of) Tj ET Q q 0 0 0 rg BT 378.40 111.75 Td (ficers. ) Tj ET Q q 0 0 0 rg BT 410.44 111.75 Td (The Class ) Tj ET Q q 0 0 0 rg BT 457.68 111.75 Td (A) Tj ET Q q 0 0 0 rg BT 463.80 111.75 Td ( units will vest ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 99.75 Td (annually over four years. When setting the level of Mr) Tj ET Q q 0 0 0 rg BT 287.95 99.75 Td (. Wintrob’) Tj ET Q q 0 0 0 rg BT 330.00 99.75 Td (s profit participation, including the annual floor) Tj ET Q q 0 0 0 rg BT 532.91 99.75 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 87.75 Td (Messrs. Marks and Karsh took into account the anticipated performance of the Company) Tj ET Q q 0 0 0 rg BT 440.62 87.75 Td (, Mr) Tj ET Q q 0 0 0 rg BT 457.29 87.75 Td (. Wintrob’) Tj ET Q q 0 0 0 rg BT 499.34 87.75 Td (s role and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 75.75 Td (responsibilities, the level of compensation of certain other NEOs, their subjective understanding of the market for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 63.75 Td (CEO compensation, and what would be necessary to retain Mr) Tj ET Q q 0 0 0 rg BT 326.31 63.75 Td (. Wintrob. In addition, Messrs. Marks and Karsh ) Tj ET Q endstream endobj 409 0 obj <> endobj 410 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (204) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 741.75 Td (thought it appropriate to pay a significant portion of Mr) Tj ET Q q 0 0 0 rg BT 287.98 741.75 Td (. Wintrob’) Tj ET Q q 0 0 0 rg BT 330.03 741.75 Td (s profit participation in the form of equity that vests ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 729.75 Td (over time after grant to further align Mr) Tj ET Q q 0 0 0 rg BT 219.57 729.75 Td (. Wintrob’) Tj ET Q q 0 0 0 rg BT 261.62 729.75 Td (s interests with the Company’) Tj ET Q q 0 0 0 rg BT 392.05 729.75 Td (s unitholders.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 49.50 708.75 Td (T) Tj ET Q q 0 0 0 rg BT 54.87 708.75 Td (reatment of EVUs and Profit Sharing Payments on Certain T) Tj ET Q q 0 0 0 rg BT 320.74 708.75 Td (erminations of Employment and Other Significant ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 49.50 696.75 Td (Events) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 675.75 Td (Other than Mr) Tj ET Q q 0 0 0 rg BT 146.64 675.75 Td (. Wintrob, each of our NEOs is either a founder of our company) Tj ET Q q 0 0 0 rg BT 425.48 675.75 Td (, has been promoted from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 663.75 Td (within or has been employed by us for over a decade and has generally not received special severance or change ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 651.75 Td (in control benefits with their compensation arrangements. By contrast, Mr) Tj ET Q q 0 0 0 rg BT 375.21 651.75 Td (. Wintrob was hired from outside of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 639.75 Td (Oaktree in 2014. His employment agreement and EVU award are the products of an arms’) Tj ET Q q 0 0 0 rg BT 451.00 639.75 Td ( length negotiation we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 627.75 Td (undertook with Mr) Tj ET Q q 0 0 0 rg BT 128.43 627.75 Td (. Wintrob before he joined the Company) Tj ET Q q 0 0 0 rg BT 304.45 627.75 Td (. In order to encourage Mr) Tj ET Q q 0 0 0 rg BT 422.29 627.75 Td (. Wintrob to join our Company) Tj ET Q q 0 0 0 rg BT 553.83 627.75 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 615.75 Td (it was necessary to provide him with the security provided by continuation of his profit sharing payment levels ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 603.75 Td (following certain terminations from employment as well as the EVU protections discussed below under “) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 507.49 603.75 Td (Potential ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 49.50 591.75 Td (Payments Upon T) Tj ET Q q 0 0 0 rg BT 128.62 591.75 Td (ermination of Employment or Change in Control at 2016 ) Tj ET Q q 0 0 0 rg BT 378.57 591.75 Td (Y) Tj ET Q q 0 0 0 rg BT 384.69 591.75 Td (ear End) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 419.71 591.75 Td (.” ) Tj ET Q q 0 0 0 rg BT 430.83 591.75 Td (As described in that section, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 579.75 Td (Mr) Tj ET Q q 0 0 0 rg BT 60.61 579.75 Td (. Wintrob’) Tj ET Q q 0 0 0 rg BT 102.66 579.75 Td (s EVUs will receive enhanced vesting credit upon certain terminations from employment, which credit is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 567.75 Td (further enhanced if such termination occurs following a change in control of our business. ) Tj ET Q q 0 0 0 rg BT 448.62 567.75 Td (Also, if we no longer ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 555.75 Td (employ Howard Marks or Bruce Karsh, if either one is no longer our director or of) Tj ET Q q 0 0 0 rg BT 406.70 555.75 Td (ficer) Tj ET Q q 0 0 0 rg BT 425.04 555.75 Td (, or if either one substantially ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 543.75 Td (reduces his role \(other than for death or disability) Tj ET Q q 0 0 0 rg BT 265.54 543.75 Td (, or a family medical issue\), then Mr) Tj ET Q q 0 0 0 rg BT 422.82 543.75 Td (. Wintrob’) Tj ET Q q 0 0 0 rg BT 464.87 543.75 Td (s EVUs will become ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 531.75 Td (fully vested and recapitalized at the time of Mr) Tj ET Q q 0 0 0 rg BT 252.38 531.75 Td (. Marks’) Tj ET Q q 0 0 0 rg BT 287.20 531.75 Td (s or Mr) Tj ET Q q 0 0 0 rg BT 317.76 531.75 Td (. Karsh’) Tj ET Q q 0 0 0 rg BT 351.48 531.75 Td (s departure \(as applicable\), and Mr) Tj ET Q q 0 0 0 rg BT 506.00 531.75 Td (. Wintrob ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 519.75 Td (will receive a new EVU grant. Providing these profit sharing payment continuation and EVU protections was critical ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 507.75 Td (to reaching an agreement with Mr) Tj ET Q q 0 0 0 rg BT 197.91 507.75 Td (. Wintrob. W) Tj ET Q q 0 0 0 rg BT 255.52 507.75 Td (e think these payments and benefits are appropriate and consistent ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 495.75 Td (with what might be included in a new chief executive of) Tj ET Q q 0 0 0 rg BT 292.23 495.75 Td (ficer) Tj ET Q q 0 0 0 rg BT 311.50 495.75 Td (’) Tj ET Q q 0 0 0 rg BT 313.54 495.75 Td (s compensation arrangements at a similarly situated ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 483.75 Td (company) Tj ET Q q 0 0 0 rg BT 89.33 483.75 Td (.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 49.50 462.75 Td (2016 Equity Grants to Mr) Tj ET Q q 0 0 0 rg BT 160.29 462.75 Td (. W) Tj ET Q q 0 0 0 rg BT 175.20 462.75 Td (introb ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 441.75 Td (In March 2016, we granted 21,937 Class ) Tj ET Q q 0 0 0 rg BT 267.83 441.75 Td (A) Tj ET Q q 0 0 0 rg BT 273.95 441.75 Td ( units to Mr) Tj ET Q q 0 0 0 rg BT 322.86 441.75 Td (. Wintrob as part of his profit sharing arrangement, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 429.75 Td (whose amount and size were determined based on the amount of Mr) Tj ET Q q 0 0 0 rg BT 353.57 429.75 Td (. Wintrob’) Tj ET Q q 0 0 0 rg BT 395.62 429.75 Td (s total compensation in accordance ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 417.75 Td (with Mr) Tj ET Q q 0 0 0 rg BT 81.17 417.75 Td (. Wintrob’) Tj ET Q q 0 0 0 rg BT 123.22 417.75 Td (s employment agreement, as discussed generally above. ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 85.50 396.75 Td (B. ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 103.50 396.75 Td (David M. Kirchheimer) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 375.75 Td (Mr) Tj ET Q q 0 0 0 rg BT 96.61 375.75 Td (. Kirchheimer is entitled to receive profit sharing payments that reflect 1% of fee-related earnings, net ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 363.75 Td (investment income and net incentive income of the Oaktree Operating Group subject to certain adjustments. ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 85.50 342.75 Td (C. ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 103.50 342.75 Td (John B. Frank) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 321.75 Td (Mr) Tj ET Q q 0 0 0 rg BT 96.61 321.75 Td (. Frank received a share of the carried interest from our largest closed-end strategy) Tj ET Q q 0 0 0 rg BT 463.26 321.75 Td (, distressed debt, both ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 309.75 Td (in recognition of his historic contributions to the management of some of the strategy's investments and in lieu of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 297.75 Td (other compensation, such as a greater profit sharing percentage or additional OCGH units. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 276.75 Td (For 2016 Mr) Tj ET Q q 0 0 0 rg BT 139.41 276.75 Td (. Frank also received \(a\) 1.3% of the net incentive income of the Oaktree Operating Group from ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 264.75 Td (certain funds that existed as of December 31, 2014 \(b\) 1.0% of the net incentive income of Oaktree Operating ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 252.75 Td (Group from certain funds that started during 2015 or had substantial or final closings during 2015, and \(c\) 0.5% of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 240.75 Td (the net incentive income of the Oaktree Operating Group from certain funds that started after December 31, 2015 or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 228.75 Td (whose final or more substantial closing occurred after December 31, 2015. ) Tj ET Q q 0 0 0 rg BT 384.12 228.75 Td (Additionally) Tj ET Q q 0 0 0 rg BT 434.52 228.75 Td (, for 2016 Mr) Tj ET Q q 0 0 0 rg BT 490.66 228.75 Td (. Frank was ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 216.75 Td (entitled to receive profit sharing payments that reflect 0.5% of the net investment income and fee-related earnings ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 204.75 Td (of the Oaktree Operating Group subject to certain adjustments. Mr) Tj ET Q q 0 0 0 rg BT 344.65 204.75 Td (. Frank’) Tj ET Q q 0 0 0 rg BT 377.81 204.75 Td (s remuneration for 2016 was determined ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 192.75 Td (based on responsibilities he assumed as V) Tj ET Q q 0 0 0 rg BT 238.88 192.75 Td (ice Chairman. ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 85.50 171.75 Td (D. ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 103.50 171.75 Td (Stephen ) Tj ET Q q 0 0 0 rg BT 143.16 171.75 Td (A. Kaplan) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 150.75 Td (Mr) Tj ET Q q 0 0 0 rg BT 96.61 150.75 Td (. Kaplan received four quarterly fixed payments in 2016 totaling $250,000 in the aggregate. Once Mr) Tj ET Q q 0 0 0 rg BT 541.89 150.75 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 138.75 Td (Kaplan transitioned away from being the primary manager of the Control Investing strategy) Tj ET Q q 0 0 0 rg BT 449.52 138.75 Td (, he received fixed ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 126.75 Td (payments instead of a percentage of asset based management fees. ) Tj ET Q q 0 0 0 rg BT 358.59 126.75 Td (As his responsibilities gradually diminished ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 114.75 Td (over time, his fixed payments have been adjusted accordingly) Tj ET Q q 0 0 0 rg BT 321.69 114.75 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 93.75 Td (A) Tj ET Q q 0 0 0 rg BT 91.62 93.75 Td ( portion of the compensation earned by Mr) Tj ET Q q 0 0 0 rg BT 278.95 93.75 Td (. Kaplan consists of carried interest we receive from certain of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 81.75 Td (our Control Investing funds, which he received as a member of the portfolio management team for the funds for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 69.75 Td (which he served as the portfolio manager) Tj ET Q q 0 0 0 rg BT 231.83 69.75 Td (. ) Tj ET Q endstream endobj 411 0 obj <> endobj 412 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (205) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 85.50 741.75 Td (E. ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 103.50 741.75 Td (T) Tj ET Q q 0 0 0 rg BT 108.69 741.75 Td (odd E. Molz) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 720.75 Td (Mr) Tj ET Q q 0 0 0 rg BT 96.61 720.75 Td (. Wintrob determined Mr) Tj ET Q q 0 0 0 rg BT 203.31 720.75 Td (. Molz’) Tj ET Q q 0 0 0 rg BT 232.02 720.75 Td (s compensation for 2016. Mr) Tj ET Q q 0 0 0 rg BT 360.98 720.75 Td (. Wintrob’) Tj ET Q q 0 0 0 rg BT 403.03 720.75 Td (s determination was a subjective ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 708.75 Td (assessment of a range of factors, including \(i\) the fact that four of our operational units report to Mr) Tj ET Q q 0 0 0 rg BT 484.72 708.75 Td (. Molz in his ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 696.75 Td (capacity as our General Counsel and Chief ) Tj ET Q q 0 0 0 rg BT 242.39 696.75 Td (Administrative Of) Tj ET Q q 0 0 0 rg BT 318.34 696.75 Td (ficer – Legal, Compliance, Internal ) Tj ET Q q 0 0 0 rg BT 472.32 696.75 Td (Audit and Corporate ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 684.75 Td (Services; \(ii\) his overall leadership and oversight of these units, \(iii\) his role in our strategic direction and initiatives ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 672.75 Td (and \(iv\) his individual performance. In particular) Tj ET Q q 0 0 0 rg BT 261.82 672.75 Td (, Mr) Tj ET Q q 0 0 0 rg BT 278.49 672.75 Td (. Molz’) Tj ET Q q 0 0 0 rg BT 307.20 672.75 Td (s leadership of the Legal and Compliance departments ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 660.75 Td (involves oversight of matters spanning a broad array of complex laws and regulations around the globe, with the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 648.75 Td (scope and complexity of such laws and regulations having increased substantially under the Dodd-Frank W) Tj ET Q q 0 0 0 rg BT 523.27 648.75 Td (all ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 636.75 Td (Street Reform and Consumer Protection ) Tj ET Q q 0 0 0 rg BT 230.14 636.75 Td (Act, as well as the legal requirements of the Sarbanes-Oxley ) Tj ET Q q 0 0 0 rg BT 500.28 636.75 Td (Act of 2002 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 624.75 Td (and the NYSE, and various legal and regulatory initiatives in Europe and ) Tj ET Q q 0 0 0 rg BT 371.93 624.75 Td (Asia. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 603.75 Td (Mr) Tj ET Q q 0 0 0 rg BT 96.61 603.75 Td (. Wintrob also reviewed available market data, including survey data provided by a compensation ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 591.75 Td (consultant hired by Oaktree, to assist him in comparing the overall compensation we of) Tj ET Q q 0 0 0 rg BT 433.40 591.75 Td (fered Mr) Tj ET Q q 0 0 0 rg BT 470.08 591.75 Td (. Molz to the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 579.75 Td (compensation packages our peer companies of) Tj ET Q q 0 0 0 rg BT 259.45 579.75 Td (fer their general counsels in order to facilitate Mr) Tj ET Q q 0 0 0 rg BT 472.88 579.75 Td (. Wintrob’) Tj ET Q q 0 0 0 rg BT 514.93 579.75 Td (s ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 567.75 Td (understanding of the state of the market for that position, and Mr) Tj ET Q q 0 0 0 rg BT 333.56 567.75 Td (. Wintrob worked to devise the right balance of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 555.75 Td (long-term and short-term incentives for Mr) Tj ET Q q 0 0 0 rg BT 235.12 555.75 Td (. Molz. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 534.75 Td (Mr) Tj ET Q q 0 0 0 rg BT 96.61 534.75 Td (. Molz receives fixed payments as base salary and receives an annual bonus, which is paid in part in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 522.75 Td (cash and in part in equity so that 25% of his total annual compensation is paid in equity) Tj ET Q q 0 0 0 rg BT 433.45 522.75 Td (. ) Tj ET Q q 0 0 0 rg BT 441.23 522.75 Td (A) Tj ET Q q 0 0 0 rg BT 447.35 522.75 Td ( portion of Mr) Tj ET Q q 0 0 0 rg BT 505.71 522.75 Td (. Molz’) Tj ET Q q 0 0 0 rg BT 534.42 522.75 Td (s total ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 510.75 Td (equity grant in 2016 relating to his 2015 performance was determined under the new compensation mix system as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 498.75 Td (described above. ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 85.50 477.75 Td (2016 Equity Grant to Mr) Tj ET Q q 0 0 0 rg BT 191.29 477.75 Td (. Molz) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 456.75 Td (In March 2016, we granted 14,077 Class ) Tj ET Q q 0 0 0 rg BT 267.83 456.75 Td (A) Tj ET Q q 0 0 0 rg BT 273.95 456.75 Td ( units to Mr) Tj ET Q q 0 0 0 rg BT 322.86 456.75 Td (. Molz, whose amounts and size were determined ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 444.75 Td (based on the amount of Mr) Tj ET Q q 0 0 0 rg BT 168.46 444.75 Td (. Molz’) Tj ET Q q 0 0 0 rg BT 197.18 444.75 Td (s total compensation, as discussed generally above. In addition, we granted ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 432.75 Td (1) Tj ET Q q 0 0 0 rg BT 54.32 432.75 Td (1,172 OCGH units subject to four year vesting and an additional 8,938 OCGH units subject to ten year vesting in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 420.75 Td (March 2016 to Mr) Tj ET Q q 0 0 0 rg BT 127.31 420.75 Td (. Molz as a supplemental equity grant in order to recognize 2015 performance and his assumption ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 408.75 Td (of additional responsibilities in 2015. ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 49.50 387.75 Td (Risk ) Tj ET Q q 0 0 0 rg BT 71.35 387.75 Td (Analysis of Our Compensation Programs) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 366.75 Td (W) Tj ET Q q 0 0 0 rg BT 94.76 366.75 Td (e strive to invest in a risk-controlled fashion and seek to ensure that our compensation policies are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 354.75 Td (consistent with that approach and discourage the incurrence of undue risk. ) Tj ET Q q 0 0 0 rg BT 384.52 354.75 Td (Thus, we emphasize both the grant of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 342.75 Td (equity and – for senior investment professionals in our closed-end funds – carried interest subject to multi-year ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 330.75 Td (vesting as key forms of compensation, particularly as employees become more senior in the organization and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 318.75 Td (assume more leadership. W) Tj ET Q q 0 0 0 rg BT 176.59 318.75 Td (e believe this policy encourages long-term thinking, fosters a collaborative culture and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 306.75 Td (reduces any incentive to accept excessive risk in a search for short-term gain. With respect to participation in our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 294.75 Td (incentive income, our closed-end funds generally distribute incentive income only after we have returned all capital ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 282.75 Td (plus a preferred return to our investors, meaning that in analyzing investments and making investment decisions, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 270.75 Td (our investment professionals are motivated to take a long-term view of their investments, given that short-term ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 258.75 Td (results typically do not af) Tj ET Q q 0 0 0 rg BT 158.82 258.75 Td (fect their compensation. Importantly) Tj ET Q q 0 0 0 rg BT 319.26 258.75 Td (, the amount of incentive income paid to these ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 246.75 Td (investment professionals is determined by the performance of the fund as a whole, rather than specific investments, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 234.75 Td (meaning that they have a material interest in every investment. ) Tj ET Q q 0 0 0 rg BT 332.80 234.75 Td (This approach discourages excessive risk taking, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 222.75 Td (given that even a hugely successful investment will result in incentive compensation payments only if the overall ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 210.75 Td (performance of the fund exceeds the requisite hurdle.) Tj ET Q endstream endobj 413 0 obj <> endobj 414 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (206) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 49.50 741.75 Td (Summary Compensation T) Tj ET Q q 0 0 0 rg BT 167.51 741.75 Td (able for 2016) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 720.75 Td (The following table provides summary information concerning the compensation of Jay S. Wintrob, our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 708.75 Td (principal executive of) Tj ET Q q 0 0 0 rg BT 142.70 708.75 Td (ficer) Tj ET Q q 0 0 0 rg BT 161.04 708.75 Td (, David M. Kirchheimer) Tj ET Q q 0 0 0 rg BT 261.63 708.75 Td (, our chief financial of) Tj ET Q q 0 0 0 rg BT 355.95 708.75 Td (ficer and our three other most highly ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 696.75 Td (compensated employees who served as executive of) Tj ET Q q 0 0 0 rg BT 283.89 696.75 Td (ficers as of December 31, 2016, for services rendered to us ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 684.75 Td (during 2016.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 663.75 Td (The distributions our NEOs receive in respect of their indirect ownership of the Oaktree Operating Group ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 651.75 Td (are based on their respective holdings of OCGH and Class ) Tj ET Q q 0 0 0 rg BT 311.86 651.75 Td (A) Tj ET Q q 0 0 0 rg BT 317.98 651.75 Td ( units and are not reflected as cash compensation in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 639.75 Td (the table below) Tj ET Q q 0 0 0 rg BT 116.22 639.75 Td (.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 587.25 m 160 587.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 167 587.25 m 200 587.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 206 587.25 m 260 587.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267 587.25 m 321 587.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328 587.25 m 382 587.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 587.25 m 443 587.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450 587.25 m 504 587.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 587.25 m 563 587.25 l s BT /F2 6.50 Tf ET q 0 0 0 rg BT 52.50 591.17 Td (Name and Principal Position) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 176.10 591.17 Td (Year) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 217.85 591.17 Td (Salary \($\)) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 278.50 591.17 Td (Bonus \($\)) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 333.15 597.67 Td (Stock ) Tj ET Q q 0 0 0 rg BT 352.42 597.67 Td (A) Tj ET Q q 0 0 0 rg BT 356.99 597.67 Td (wards ) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 344.45 591.17 Td (\($\) ) Tj ET Q BT /F2 6.50 Tf ET BT /F2 4.22 Tf ET q 0 0 0 rg BT 354.20 594.27 Td (\(1\)\(2\)) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 398.15 610.67 Td (Non-Equity) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 393.60 604.17 Td (Incentive Plan) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 392.90 597.67 Td (Compensation) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 411.50 591.17 Td (\($\)) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 462.75 604.17 Td (All Other ) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 453.90 597.67 Td (Compensation ) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 469.00 591.17 Td (\($\) ) Tj ET Q BT /F2 6.50 Tf ET BT /F2 4.22 Tf ET q 0 0 0 rg BT 478.75 594.27 Td (\(3\)) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 523.10 591.17 Td (Total \($\)) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 570.48 Td (Jay S. Wintrob,) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 562.48 Td (Chief Executive Officer) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 134.25 562.93 Td (..........) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 174.10 562.48 Td (2016) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 208.50 562.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 248.75 562.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 269.50 562.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 309.75 562.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 330.50 562.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 343.20 562.53 Td (1,082,152) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 391.50 562.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 431.75 562.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 452.50 562.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 465.20 562.53 Td (5,124,532) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 511.50 562.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 524.20 562.53 Td (6,206,684) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 174.10 546.48 Td (2015) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 208.50 546.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 248.75 546.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 269.50 546.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 309.75 546.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 330.50 546.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 370.75 546.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 391.50 546.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 431.75 546.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 452.50 546.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 465.20 546.53 Td (4,000,000) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 511.50 546.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 524.20 546.53 Td (4,000,000) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 174.10 530.48 Td (2014) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 208.50 530.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 232.25 530.48 Td (81,254) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 269.50 530.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 288.85 530.53 Td (991,636) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 330.50 530.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 338.75 530.53 Td (13,805,454) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 391.50 530.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 431.75 530.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 452.50 530.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 471.85 530.53 Td (833,000) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 511.50 530.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 519.75 530.53 Td (15,711,344) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 517.48 Td (David M. Kirchheimer,) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 509.48 Td ( Chief Financial Officer) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 140.90 509.93 Td (.......) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 174.10 509.48 Td (2016) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 208.50 509.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 248.75 509.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 269.50 509.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 309.75 509.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 330.50 509.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 370.75 509.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 391.50 509.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 431.75 509.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 452.50 509.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 465.20 509.53 Td (6,133,140) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 511.50 509.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 524.20 509.53 Td (6,133,140) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 174.10 493.48 Td (2015) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 208.50 493.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 248.75 493.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 269.50 493.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 309.75 493.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 330.50 493.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 370.75 493.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 391.50 493.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 431.75 493.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 452.50 493.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 465.20 493.53 Td (3,306,832) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 511.50 493.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 524.20 493.53 Td (3,306,832) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 174.10 477.48 Td (2014) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 208.50 477.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 248.75 477.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 269.50 477.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 309.75 477.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 330.50 477.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 370.75 477.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 391.50 477.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 431.75 477.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 452.50 477.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 465.20 477.53 Td (5,360,729) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 511.50 477.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 524.20 477.53 Td (5,360,729) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 464.48 Td (John B. Frank, ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 456.48 Td ( V) Tj ET Q q 0 0 0 rg BT 66.58 456.48 Td (ice Chairman) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 114.25 456.93 Td (...................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 174.10 456.48 Td (2016) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 208.50 456.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 248.75 456.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 269.50 456.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 309.75 456.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 330.50 456.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 370.75 456.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 391.50 456.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 431.75 456.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 452.50 456.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 465.20 456.53 Td (7,364,386) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 511.50 456.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 524.20 456.53 Td (7,364,386) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 174.10 440.48 Td (2015) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 208.50 440.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 248.75 440.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 269.50 440.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 309.75 440.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 330.50 440.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 370.75 440.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 391.50 440.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 431.75 440.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 452.50 440.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 465.20 440.53 Td (6,703,501) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 511.50 440.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 524.20 440.53 Td (6,703,501) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 174.10 424.48 Td (2014) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 208.50 424.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 248.75 424.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 269.50 424.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 309.75 424.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 330.50 424.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 370.75 424.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 391.50 424.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 431.75 424.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 452.50 424.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 460.75 424.53 Td (13,172,107) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 511.50 424.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 519.75 424.53 Td (13,172,107) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 409.48 Td (Stephen ) Tj ET Q q 0 0 0 rg BT 84.09 409.48 Td (A. Kaplan,) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 61.50 401.48 Td (Principal) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 94.25 401.93 Td (............................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 174.10 401.48 Td (2016) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 208.50 401.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 227.85 401.48 Td (250,000) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 269.50 401.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 309.75 401.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 330.50 401.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 370.75 401.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 391.50 401.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 431.75 401.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 452.50 401.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 465.20 401.53 Td (6,765,362) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 511.50 401.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 524.20 401.53 Td (7,015,362) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 382.48 Td (T) Tj ET Q q 0 0 0 rg BT 56.50 382.48 Td (odd E. Molz,) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 61.50 374.48 Td (General Counsel and ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 61.50 366.48 Td (Chief ) Tj ET Q q 0 0 0 rg BT 81.96 366.48 Td (Administrative ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 61.50 358.48 Td (Of) Tj ET Q q 0 0 0 rg BT 69.80 358.48 Td (ficer) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 87.55 358.93 Td (...............................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 174.10 358.48 Td (2016) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 208.50 358.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 227.85 358.48 Td (500,000) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 269.50 358.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 282.20 358.53 Td (2,500,000) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 330.50 358.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 343.20 358.53 Td (1,415,643) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 391.50 358.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 431.75 358.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 452.50 358.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 492.75 358.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 511.50 358.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 524.20 358.53 Td (4,415,643) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 340.25 m 150 340.25 l s BT /F1 10.00 Tf ET BT /F3 8.00 Tf ET q 0 0 0 rg BT 48.50 331.15 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 70.50 331.15 Td (For Mr) Tj ET Q q 0 0 0 rg BT 93.61 331.15 Td (. Wintrob, reflects a grant of Class ) Tj ET Q q 0 0 0 rg BT 215.88 331.15 Td (A) Tj ET Q q 0 0 0 rg BT 220.77 331.15 Td ( units in respect of $1,082,152 earned in 2015 as profits participation, and for Mr) Tj ET Q q 0 0 0 rg BT 504.06 331.15 Td (. Molz, reflects a ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 70.50 321.55 Td (grant of Class ) Tj ET Q q 0 0 0 rg BT 121.64 321.55 Td (A) Tj ET Q q 0 0 0 rg BT 126.53 321.55 Td ( and OCGH units in respect of $1,415,643 earned in 2015 as part of his 2015 total compensation. ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 48.50 311.95 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 70.50 311.95 Td (The grant date fair value of the units received by our NEOs during each year is reflected in the “Stock ) Tj ET Q q 0 0 0 rg BT 430.25 311.95 Td (A) Tj ET Q q 0 0 0 rg BT 435.44 311.95 Td (wards” column in the Summary ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 70.50 302.35 Td (Compensation ) Tj ET Q q 0 0 0 rg BT 124.16 302.35 Td (T) Tj ET Q q 0 0 0 rg BT 128.16 302.35 Td (able because we must account for such units as compensation expense for financial statement reporting purposes. W) Tj ET Q q 0 0 0 rg BT 546.47 302.35 Td (e ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 70.50 292.75 Td (recognize expense for financial statement reporting purposes in respect of the unvested OCGH and Class ) Tj ET Q q 0 0 0 rg BT 446.71 292.75 Td (A) Tj ET Q q 0 0 0 rg BT 451.60 292.75 Td ( units received by our NEOs on ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 70.50 283.15 Td (the basis of the value of those units at the time of the grant pursuant to Financial ) Tj ET Q q 0 0 0 rg BT 356.45 283.15 Td (Accounting Standards Board ) Tj ET Q q 0 0 0 rg BT 460.08 283.15 Td (Accounting Codification ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 70.50 273.55 Td (\(ASC\) ) Tj ET Q q 0 0 0 rg BT 94.36 273.55 Td (T) Tj ET Q q 0 0 0 rg BT 98.36 273.55 Td (opic 718 or “ASC ) Tj ET Q q 0 0 0 rg BT 161.35 273.55 Td (T) Tj ET Q q 0 0 0 rg BT 165.35 273.55 Td (opic 718,” ) Tj ET Q q 0 0 0 rg BT 202.27 273.55 Td (Accounting for Stock Compensation. Please see notes 2 and 14 to our consolidated financial ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 70.50 263.95 Td (statements included elsewhere in this annual report for further information concerning the assumptions underlying such expense. ) Tj ET Q q 0 0 0 rg BT 530.61 263.95 Td (The ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 70.50 254.35 Td (compensation shown in the Summary Compensation ) Tj ET Q q 0 0 0 rg BT 259.79 254.35 Td (T) Tj ET Q q 0 0 0 rg BT 263.79 254.35 Td (able uses the ) Tj ET Q q 0 0 0 rg BT 313.16 254.35 Td (ASC ) Tj ET Q q 0 0 0 rg BT 331.68 254.35 Td (T) Tj ET Q q 0 0 0 rg BT 335.68 254.35 Td (opic 718 grant date fair values of the equity unit awards actually ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 70.50 244.75 Td (granted in the reported fiscal year) Tj ET Q q 0 0 0 rg BT 189.24 244.75 Td (, regardless of when those awards were earned. ) Tj ET Q q 0 0 0 rg BT 364.00 244.75 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 404.76 244.75 Td (, our equity awards granted in 2016 in ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 70.50 235.15 Td (respect of 2015 performance are shown in the 2016 line in the Summary Compensation ) Tj ET Q q 0 0 0 rg BT 382.53 235.15 Td (T) Tj ET Q q 0 0 0 rg BT 386.53 235.15 Td (able instead of the 2015 line. Our equity awards ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 70.50 225.55 Td (to be granted in 2017 in respect of 2016 performance are not shown in the 2016 line in the Summary Compensation ) Tj ET Q q 0 0 0 rg BT 482.16 225.55 Td (T) Tj ET Q q 0 0 0 rg BT 486.16 225.55 Td (able \(but will appear ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 70.50 215.95 Td (in the 2017 line in next year) Tj ET Q q 0 0 0 rg BT 168.64 215.95 Td (’) Tj ET Q q 0 0 0 rg BT 170.27 215.95 Td (s Summary Compensation ) Tj ET Q q 0 0 0 rg BT 266.61 215.95 Td (T) Tj ET Q q 0 0 0 rg BT 270.61 215.95 Td (able for next year) Tj ET Q q 0 0 0 rg BT 332.72 215.95 Td (’) Tj ET Q q 0 0 0 rg BT 334.35 215.95 Td (s named executive of) Tj ET Q q 0 0 0 rg BT 409.80 215.95 Td (ficers\). ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 48.50 206.35 Td (\(3\) ) Tj ET Q q 0 0 0 rg BT 70.50 206.35 Td (Please see the “All Other Compensation Supplemental ) Tj ET Q q 0 0 0 rg BT 266.46 206.35 Td (T) Tj ET Q q 0 0 0 rg BT 270.46 206.35 Td (able” below) Tj ET Q q 0 0 0 rg BT 310.94 206.35 Td (.) Tj ET Q endstream endobj 415 0 obj <> endobj 416 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (207) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 49.50 741.75 Td (All Other Compensation Supplemental T) Tj ET Q q 0 0 0 rg BT 227.56 741.75 Td (able ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 717.75 Td (The following table provides additional information regarding each component of the ) Tj ET Q q 0 0 0 rg BT 459.07 717.75 Td (All Other ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 705.75 Td (Compensation column in the Summary Compensation ) Tj ET Q q 0 0 0 rg BT 291.66 705.75 Td (T) Tj ET Q q 0 0 0 rg BT 296.66 705.75 Td (able: ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 693.75 Td ( ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 650.25 m 224 650.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 231 650.25 m 280 650.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 650.25 m 351 650.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 650.25 m 421 650.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 650.25 m 492 650.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499 650.25 m 563 650.25 l s BT /F2 6.50 Tf ET q 0 0 0 rg BT 52.50 654.17 Td (Name) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 248.10 654.17 Td (Year) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 299.35 667.17 Td (Payments in ) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 289.60 660.67 Td (Respect of Carried ) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 303.25 654.17 Td (Interest ) Tj ET Q BT /F2 6.50 Tf ET BT /F2 4.22 Tf ET q 0 0 0 rg BT 328.54 657.27 Td (\(1\)) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 378.20 660.67 Td (Profits ) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 365.30 654.17 Td (Participation ) Tj ET Q BT /F2 6.50 Tf ET BT /F2 4.22 Tf ET q 0 0 0 rg BT 406.48 657.27 Td (\(2\)) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 438.45 654.17 Td (Perquisites ) Tj ET Q BT /F2 6.50 Tf ET BT /F2 4.22 Tf ET q 0 0 0 rg BT 475.30 657.27 Td (\(3\)) Tj ET Q BT /F2 6.50 Tf ET q 0 0 0 rg BT 522.95 654.17 Td (Total) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 632.48 Td (Jay S. Wintrob) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 107.10 632.93 Td (...................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 246.10 632.48 Td (2016) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 289.50 632.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 339.75 632.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 359.50 632.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 382.20 632.53 Td (5,124,532) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 430.50 632.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 480.75 632.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 501.50 632.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 524.20 632.53 Td (5,124,532) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 246.10 616.48 Td (2015) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 289.50 616.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 339.75 616.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 359.50 616.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 382.20 616.53 Td (4,000,000) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 430.50 616.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 480.75 616.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 501.50 616.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 524.20 616.53 Td (4,000,000) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 246.10 600.48 Td (2014) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 289.50 600.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 339.75 600.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 359.50 600.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 388.80 600.48 Td (833,000) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 430.50 600.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 480.75 600.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 501.50 600.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 530.85 600.53 Td (833,000) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 578.48 Td (David M. Kirchheimer) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 131.55 578.93 Td (........................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 246.10 578.48 Td (2016) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 289.50 578.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 339.75 578.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 359.50 578.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 382.20 578.53 Td (6,102,368) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 430.50 578.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 464.30 578.53 Td (30,772) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 501.50 578.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 524.20 578.53 Td (6,133,140) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 246.10 562.48 Td (2015) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 289.50 562.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 339.75 562.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 359.50 562.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 382.20 562.53 Td (3,281,631) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 430.50 562.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 464.30 562.53 Td (25,201) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 501.50 562.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 524.20 562.53 Td (3,306,832) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 246.10 546.48 Td (2014) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 289.50 546.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 339.75 546.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 359.50 546.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 382.20 546.53 Td (5,338,247) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 430.50 546.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 464.30 546.53 Td (22,482) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 501.50 546.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 524.20 546.53 Td (5,360,729) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 524.48 Td (John B. Frank) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 104.90 524.93 Td (....................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 246.10 524.48 Td (2016) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 289.50 524.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 312.20 524.53 Td (2,731,734) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 359.50 524.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 382.20 524.53 Td (4,606,761) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 430.50 524.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 464.30 524.53 Td (25,891) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 501.50 524.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 524.20 524.53 Td (7,364,386) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 246.10 508.48 Td (2015) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 289.50 508.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 312.20 508.53 Td (3,131,713) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 359.50 508.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 382.20 508.53 Td (3,547,712) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 430.50 508.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 464.30 508.53 Td (24,076) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 501.50 508.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 524.20 508.53 Td (6,703,501) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 246.10 492.48 Td (2014) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 289.50 492.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 312.20 492.53 Td (6,138,185) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 359.50 492.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 382.20 492.53 Td (7,012,095) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 430.50 492.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 464.30 492.53 Td (21,827) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 501.50 492.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 519.75 492.53 Td (13,172,107) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 470.48 Td (Stephen A. Kaplan) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 120.45 470.93 Td (.............................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 246.10 470.48 Td (2016) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 289.50 470.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 312.20 470.53 Td (6,741,881) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 359.50 470.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 409.75 470.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 430.50 470.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 464.30 470.53 Td (23,481) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 501.50 470.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 524.20 470.53 Td (6,765,362) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 52.50 448.48 Td (Todd E. Molz) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 100.45 448.93 Td (......................................................) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 246.10 448.48 Td (2016) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 289.50 448.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 339.75 448.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 359.50 448.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 409.75 448.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 430.50 448.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 480.75 448.48 Td (—) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 501.50 448.48 Td ($) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 551.75 448.48 Td (—) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 430.25 m 150 430.25 l s BT /F1 10.00 Tf ET BT /F3 8.00 Tf ET q 0 0 0 rg BT 48.50 421.15 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 70.50 421.15 Td (Amounts included for 2016 represent amounts earned on an accrual basis in respect of participation interests in incentive income ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 70.50 411.55 Td (generated by our funds with respect to the year ended December 31, 2016. ) Tj ET Q q 0 0 0 rg BT 341.19 411.55 Td (T) Tj ET Q q 0 0 0 rg BT 345.19 411.55 Td (o the extent that timing dif) Tj ET Q q 0 0 0 rg BT 436.66 411.55 Td (ferences may exist between when ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 70.50 401.95 Td (amounts are earned on an accrual basis and paid in cash, these amounts do not reflect actual cash carried interest distributions to the ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 70.50 392.35 Td (NEOs during such periods. ) Tj ET Q q 0 0 0 rg BT 170.40 392.35 Td (T) Tj ET Q q 0 0 0 rg BT 174.99 392.35 Td (iming dif) Tj ET Q q 0 0 0 rg BT 204.64 392.35 Td (ferences typically arise when cash is distributed in the quarter immediately following the one in which ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 70.50 382.75 Td (the related income was earned.) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 48.50 373.15 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 70.50 373.15 Td (Amounts included for 2016 represent the amounts earned on an accrual basis in a given year in respect of the NEO’) Tj ET Q q 0 0 0 rg BT 480.82 373.15 Td (s annual profits ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 70.50 363.55 Td (participation interest. ) Tj ET Q q 0 0 0 rg BT 148.62 363.55 Td (The amount for Mr) Tj ET Q q 0 0 0 rg BT 213.98 363.55 Td (. Wintrob excludes $1,676,51) Tj ET Q q 0 0 0 rg BT 317.00 363.55 Td (1 earned in profits participation for 2016 that will be paid to Mr) Tj ET Q q 0 0 0 rg BT 535.35 363.55 Td (. ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 70.50 353.95 Td (Wintrob in the form of a grant of Class ) Tj ET Q q 0 0 0 rg BT 207.00 353.95 Td (A) Tj ET Q q 0 0 0 rg BT 211.90 353.95 Td ( units in the first quarter of 2017.) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 48.50 344.35 Td (\(3\) ) Tj ET Q q 0 0 0 rg BT 70.50 344.35 Td (Amounts included for 2016 represent tax preparation fees of $13,420 and $17,302 related to internet services provided for Mr) Tj ET Q q 0 0 0 rg BT 513.00 344.35 Td (. Kirchheimer; ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 70.50 334.75 Td (tax preparation fees of $15,250 and $10,641 related to internet services provided for Mr) Tj ET Q q 0 0 0 rg BT 379.58 334.75 Td (. Frank, and tax preparation fees of $13,430 and ) Tj ET Q BT /F3 8.00 Tf ET q 0 0 0 rg BT 70.50 325.15 Td ($10,051 related to internet services provided for Mr) Tj ET Q q 0 0 0 rg BT 251.04 325.15 Td (. Kaplan.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 295.15 Td (Non-competition, Non-solicitation and Confidentiality Restrictions ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 274.15 Td (Pursuant to the terms of OCGH’) Tj ET Q q 0 0 0 rg BT 227.04 274.15 Td (s partnership agreement or the Company’) Tj ET Q q 0 0 0 rg BT 411.40 274.15 Td (s Class ) Tj ET Q q 0 0 0 rg BT 446.41 274.15 Td (A) Tj ET Q q 0 0 0 rg BT 452.53 274.15 Td ( unit grant agreement, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 262.15 Td (as applicable, our executive of) Tj ET Q q 0 0 0 rg BT 183.85 262.15 Td (ficers \(including our NEOs\) are subject to customary provisions regarding non-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 250.15 Td (solicitation of our clients and employees, confidentiality) Tj ET Q q 0 0 0 rg BT 291.67 250.15 Td (, assignment of intellectual property and nondisparagement ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 238.15 Td (obligations. In addition, during the term of employment and for a period up to one year immediately following the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 226.15 Td (resignation or termination of employment \(other than a termination by us without cause\), our executive of) Tj ET Q q 0 0 0 rg BT 512.34 226.15 Td (ficers may ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 214.15 Td (not, directly or indirectly:) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 193.15 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 193.15 Td (engage in any business activity in which we operate, including any Competitive Business \(as defined ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 181.15 Td (below\); ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 160.15 Td (• ) Tj ET Q q 0 0 0 rg BT 103.50 160.15 Td (render any services to any Competitive Business; or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 139.15 Td (• ) Tj ET Q q 0 0 0 rg BT 103.50 139.15 Td (acquire a financial interest in or become actively involved with any Competitive Business \(other than as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 127.15 Td (a passive investor holding a minimal percentage of the stock of a public company\). ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 106.15 Td (Under the terms of OCGH’) Tj ET Q q 0 0 0 rg BT 203.13 106.15 Td (s partnership agreement, during the term of employment and for the two-year ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 94.15 Td (period immediately following the resignation or termination of employment for any reason, our executive of) Tj ET Q q 0 0 0 rg BT 518.45 94.15 Td (ficers ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 82.15 Td (\(including Mr) Tj ET Q q 0 0 0 rg BT 106.19 82.15 Td (. Wintrob, as these restrictive covenants are reflected in Mr) Tj ET Q q 0 0 0 rg BT 366.30 82.15 Td (. Wintrob’) Tj ET Q q 0 0 0 rg BT 408.35 82.15 Td (s employment agreement\), may ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 70.15 Td (not solicit our customers or clients for a Competitive Business, induce any employee to leave our employ or hire or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 58.15 Td (otherwise enter into any business af) Tj ET Q q 0 0 0 rg BT 208.86 58.15 Td (filiation with any person who was our employee during the twelve-month period ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 46.15 Td (preceding such executive of) Tj ET Q q 0 0 0 rg BT 173.28 46.15 Td (ficer) Tj ET Q q 0 0 0 rg BT 192.55 46.15 Td (’) Tj ET Q q 0 0 0 rg BT 194.59 46.15 Td (s termination of employment.) Tj ET Q endstream endobj 417 0 obj <> endobj 418 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (208) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 741.75 Td (“Competitive Business” means any business which is competitive with the business of any member of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 729.75 Td (Oaktree Operating Group or any of its af) Tj ET Q q 0 0 0 rg BT 227.74 729.75 Td (filiates \(including raising, organizing, managing or advising any fund having ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 717.75 Td (an investment strategy in any way competitive with any of the funds managed by any member of the Oaktree ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 705.75 Td (Operating Group or any of its af) Tj ET Q q 0 0 0 rg BT 189.39 705.75 Td (filiates\) anywhere in the United States or any other country where a member of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 693.75 Td (Oaktree Operating Group or any of its af) Tj ET Q q 0 0 0 rg BT 227.74 693.75 Td (filiates conducts business. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 672.75 Td (Incentive Income ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 651.75 Td (Participation in incentive income generated by our funds is typically subject to a five-year vesting schedule, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 639.75 Td (under which a participating NEO’) Tj ET Q q 0 0 0 rg BT 194.95 639.75 Td (s interest will vest in increments of 22% on each of the first through fourth ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 627.75 Td (anniversaries of the closing date of the applicable fund, with the remaining 12% of the interest vesting on or after ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 615.75 Td (the fifth anniversary of such closing date, subject to certain limitations as set forth in the applicable governing ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 603.75 Td (documents. Under the terms of the applicable governing documents, NEOs are subject to various covenants ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 591.75 Td (addressing confidentiality) Tj ET Q q 0 0 0 rg BT 161.05 591.75 Td (, intellectual property) Tj ET Q q 0 0 0 rg BT 252.58 591.75 Td (, non-solicitation, non-competition and non-disparagement. Pursuant ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 579.75 Td (to the applicable fund agreements, a participating NEO’) Tj ET Q q 0 0 0 rg BT 294.47 579.75 Td (s incentive income interest is subject to clawback in the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 567.75 Td (event that the general partner of the applicable fund is required to return any distributions \(other than tax ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 555.75 Td (distributions\) received in respect of such NEO’) Tj ET Q q 0 0 0 rg BT 254.41 555.75 Td (s interest in the applicable fund. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 534.75 Td (Grants of Plan-Based ) Tj ET Q q 0 0 0 rg BT 153.60 534.75 Td (A) Tj ET Q q 0 0 0 rg BT 160.64 534.75 Td (wards in 2016 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 513.75 Td (The following table provides information concerning the grant of equity-based awards made during the 2016 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 501.75 Td (fiscal year in respect of 2015 performance.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323 449.25 m 394 449.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407 449.25 m 478 449.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 449.25 m 563 449.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407 449.25 m 478 449.25 l s BT /F2 7.00 Tf ET 0 0 0 RG /GS0 gs 0.73 w 0 i [] 0 d 1 J 1 j 3 M 52.5 452.144677734375 m 71.5654296875 452.144677734375 l s q 0 0 0 rg BT 52.50 453.25 Td (Name) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 340.10 453.25 Td (Grant Date) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 416.70 474.25 Td (All Other Stock) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 409.75 467.25 Td (Awards: Number of) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 411.05 460.25 Td (Shares of Stock or) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 433.25 453.25 Td (Units) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 501.70 467.25 Td (Grant Date Fair ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 503.05 460.25 Td (V) Tj ET Q q 0 0 0 rg BT 507.33 460.25 Td (alue of Stock ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 510.65 453.25 Td (A) Tj ET Q q 0 0 0 rg BT 515.58 453.25 Td (wards ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 537.75 456.59 Td (\(3\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 438.65 Td (Jay S. Wintrob) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 116.95 438.20 Td (.................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 337.95 438.65 Td (3/31/2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 446.95 438.65 Td (21,937) Tj ET Q BT /F3 5.85 Tf ET q 0 0 0 rg BT 480.50 443.57 Td (\(1\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 494.50 438.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 519.45 438.65 Td (1,082,152) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 423.65 Td (Todd E. Molz) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 109.45 423.20 Td (....................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 337.95 423.65 Td (3/31/2016) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 446.95 423.65 Td (34,187) Tj ET Q BT /F3 5.85 Tf ET q 0 0 0 rg BT 480.50 428.57 Td (\(2\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 494.50 423.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 519.45 423.65 Td (1,415,643) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 405.25 m 150 405.25 l s BT /F1 10.00 Tf ET BT /F3 9.00 Tf ET q 0 0 0 rg BT 48.50 394.95 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 70.50 394.95 Td (Reflects a grant of 21,937 Class ) Tj ET Q q 0 0 0 rg BT 200.57 394.95 Td (A) Tj ET Q q 0 0 0 rg BT 206.08 394.95 Td ( units, which vest ratably over four years. ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 48.50 384.15 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 70.50 384.15 Td (Includes a grant of 14,077 Class ) Tj ET Q q 0 0 0 rg BT 201.58 384.15 Td (A) Tj ET Q q 0 0 0 rg BT 207.09 384.15 Td ( units and 1) Tj ET Q q 0 0 0 rg BT 252.96 384.15 Td (1,172 OCGH units, which all vest ratably over four years, and 8,938 OCGH ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 373.35 Td (units, which vest ratably over ten years.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 48.50 362.55 Td (\(3\) ) Tj ET Q q 0 0 0 rg BT 70.50 362.55 Td (Grant date fair value is based on the grant date determined under ) Tj ET Q q 0 0 0 rg BT 333.67 362.55 Td (ASC ) Tj ET Q q 0 0 0 rg BT 354.51 362.55 Td (T) Tj ET Q q 0 0 0 rg BT 359.01 362.55 Td (opic 718 of March 31, 2016 for Mr) Tj ET Q q 0 0 0 rg BT 493.59 362.55 Td (. Wintrob’) Tj ET Q q 0 0 0 rg BT 531.43 362.55 Td (s Class ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 351.75 Td (A) Tj ET Q q 0 0 0 rg BT 76.01 351.75 Td ( units and March 24, 2016 for Mr) Tj ET Q q 0 0 0 rg BT 205.57 351.75 Td (. Molz’) Tj ET Q q 0 0 0 rg BT 231.41 351.75 Td (s Class ) Tj ET Q q 0 0 0 rg BT 262.92 351.75 Td (A) Tj ET Q q 0 0 0 rg BT 268.43 351.75 Td ( and OCGH units. ) Tj ET Q q 0 0 0 rg BT 343.96 351.75 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 389.82 351.75 Td (, the grant date fair value for the Class ) Tj ET Q q 0 0 0 rg BT 544.40 351.75 Td (A) Tj ET Q q 0 0 0 rg BT 549.91 351.75 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 340.95 Td (units is based on the Class ) Tj ET Q q 0 0 0 rg BT 180.06 340.95 Td (A) Tj ET Q q 0 0 0 rg BT 185.57 340.95 Td ( unit price of $46.93 per unit on March 24, 2016 for Mr) Tj ET Q q 0 0 0 rg BT 400.20 340.95 Td (. Molz and $49.33 per unit on March 31, ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 330.15 Td (2016 for Mr) Tj ET Q q 0 0 0 rg BT 116.02 330.15 Td (. Wintrob. ) Tj ET Q q 0 0 0 rg BT 159.37 330.15 Td (The fair value of the OCGH units for Mr) Tj ET Q q 0 0 0 rg BT 315.43 330.15 Td (. Molz is $37.54, which is based on the March 24, 2016 Class ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 319.35 Td (A) Tj ET Q q 0 0 0 rg BT 76.01 319.35 Td ( price of $46.93 per unit, less a discount applied to the OCGH units as detailed in notes 2 and 14 to our consolidated ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 308.55 Td (financial statements. Please see note 2 to the Summary Compensation ) Tj ET Q q 0 0 0 rg BT 358.49 308.55 Td (T) Tj ET Q q 0 0 0 rg BT 362.99 308.55 Td (able above.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 281.55 Td (201) Tj ET Q q 0 0 0 rg BT 65.63 281.55 Td (1 Equity Incentive Plan ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 260.55 Td (The purpose of the 201) Tj ET Q q 0 0 0 rg BT 188.17 260.55 Td (1 Plan is to provide a means for us and our ) Tj ET Q q 0 0 0 rg BT 381.06 260.55 Td (Af) Tj ET Q q 0 0 0 rg BT 390.32 260.55 Td (filiates \(as defined in the 201) Tj ET Q q 0 0 0 rg BT 516.89 260.55 Td (1 Plan\) to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 248.55 Td (attract and retain key personnel and a means for current and prospective principals, directors, of) Tj ET Q q 0 0 0 rg BT 474.54 248.55 Td (ficers, employees, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 236.55 Td (consultants and advisors of us and our ) Tj ET Q q 0 0 0 rg BT 222.94 236.55 Td (Af) Tj ET Q q 0 0 0 rg BT 232.21 236.55 Td (filiates to acquire and maintain an equity interest in us and/or one or more ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 224.55 Td (of our ) Tj ET Q q 0 0 0 rg BT 77.30 224.55 Td (Af) Tj ET Q q 0 0 0 rg BT 86.57 224.55 Td (filiates, thereby strengthening their commitment to our welfare and that of our ) Tj ET Q q 0 0 0 rg BT 429.52 224.55 Td (Af) Tj ET Q q 0 0 0 rg BT 438.79 224.55 Td (filiates and aligning their ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 212.55 Td (interests with those of our unitholders and clients.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 85.50 191.55 Td (Eligibility) Tj ET Q q 0 0 0 rg BT 123.66 191.55 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 126.44 191.55 Td ( Employees, partners, directors, consultants, advisors and other individuals providing services to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 179.55 Td (us or our ) Tj ET Q q 0 0 0 rg BT 91.19 179.55 Td (Af) Tj ET Q q 0 0 0 rg BT 100.46 179.55 Td (filiates are eligible to participate in the 201) Tj ET Q q 0 0 0 rg BT 285.94 179.55 Td (1 Plan. ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 85.50 158.55 Td (A) Tj ET Q q 0 0 0 rg BT 91.99 158.55 Td (wards.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 121.44 158.55 Td ( ) Tj ET Q q 0 0 0 rg BT 126.82 158.55 Td (The Committee \(as defined in the 201) Tj ET Q q 0 0 0 rg BT 293.39 158.55 Td (1 Plan\) has the discretion to grant awards in respect of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 146.55 Td (Oaktree Operating Group units, Class ) Tj ET Q q 0 0 0 rg BT 219.03 146.55 Td (A) Tj ET Q q 0 0 0 rg BT 225.14 146.55 Td ( units, OCGH units, any type of unit or interest of any member of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 134.55 Td (Oaktree Operating Group or any class or series of units or other ownership interests issued by us or one of our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 122.55 Td (Af) Tj ET Q q 0 0 0 rg BT 58.77 122.55 Td (filiates \(collectively) Tj ET Q q 0 0 0 rg BT 140.83 122.55 Td (, “Units”\). ) Tj ET Q q 0 0 0 rg BT 184.53 122.55 Td (The Committee may grant options, unit appreciation rights \(“UARs”\), restricted Unit ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 110.55 Td (awards, Unit bonus awards and/or phantom equity awards to eligible persons. ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 85.50 89.55 Td (Number of Units ) Tj ET Q q 0 0 0 rg BT 160.15 89.55 Td (Authorized.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 210.74 89.55 Td ( ) Tj ET Q q 0 0 0 rg BT 216.12 89.55 Td (The 201) Tj ET Q q 0 0 0 rg BT 252.07 89.55 Td (1 Plan provides that the maximum number of Units that may be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 77.55 Td (delivered pursuant to awards under the 201) Tj ET Q q 0 0 0 rg BT 241.66 77.55 Td (1 Plan is 22,300,000, as increased on January 1 of each year beginning ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 65.55 Td (in 2012 by a number of Units equal to the excess of \(a\) 15% of the number of outstanding Oaktree Operating Group ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 53.55 Td (units on December 31 of the immediately preceding year over \(b\) the number of Oaktree Operating Group units that ) Tj ET Q endstream endobj 419 0 obj <> endobj 420 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (209) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 741.75 Td (have been issued or are issuable under the 201) Tj ET Q q 0 0 0 rg BT 260.02 741.75 Td (1 Plan as of such date, except that our board of directors may) Tj ET Q q 0 0 0 rg BT 532.21 741.75 Td (, in its ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 729.75 Td (discretion, increase the number of Units covered by the 201) Tj ET Q q 0 0 0 rg BT 312.79 729.75 Td (1 Plan by a lesser amount. ) Tj ET Q q 0 0 0 rg BT 436.19 729.75 Td (As of February 21, 2017, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 717.75 Td (9,363,365 Units have been issued or are issuable under the 201) Tj ET Q q 0 0 0 rg BT 332.84 717.75 Td (1 Plan, and the Committee may issue 13,855,186 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 705.75 Td (additional Units under the 201) Tj ET Q q 0 0 0 rg BT 181.63 705.75 Td (1 Plan.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 684.75 Td (2007 Equity Incentive Plan ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 663.75 Td (Our board of directors and the general partner of OCGH adopted the 2007 Oaktree Capital Group, LLC ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 651.75 Td (Equity Incentive Plan \(our “2007 Plan”\) as part of the May 2007 Restructuring. No more awards are being granted ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 639.75 Td (under the 2007 Plan.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 85.50 618.75 Td (Units Subject to the 2007 Plan.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 222.81 618.75 Td ( ) Tj ET Q q 0 0 0 rg BT 227.81 618.75 Td (As of February 21, 2017, 4,954,976 OCGH units have been issued under ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 606.75 Td (our 2007 Plan. ) Tj ET Q q 0 0 0 rg BT 119.55 606.75 Td (As with the other OCGH units, pursuant to the exchange agreement and the terms of the OCGH ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 594.75 Td (partnership agreement, vested ) Tj ET Q q 0 0 0 rg BT 187.36 594.75 Td (A) Tj ET Q q 0 0 0 rg BT 193.85 594.75 Td (ward Units may be exchanged for) Tj ET Q q 0 0 0 rg BT 342.26 594.75 Td (, at the option of our board of directors, our Class ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 582.75 Td (A) Tj ET Q q 0 0 0 rg BT 55.62 582.75 Td ( units, an equivalent amount of cash based on then-prevailing market prices, other consideration of equal value or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 570.75 Td (any combination of the foregoing, subject to approval of our board of directors.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 549.75 Td (Outstanding Equity at 2016 ) Tj ET Q q 0 0 0 rg BT 181.01 549.75 Td (Y) Tj ET Q q 0 0 0 rg BT 187.13 549.75 Td (ear End ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 528.75 Td (The following table provides information regarding outstanding unvested equity held by our NEOs as of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 516.75 Td (December 31, 2016:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 485.25 m 486 485.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486 485.25 m 500 485.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 485.25 m 563 485.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 458.25 m 486 458.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 458.25 m 563 458.25 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 79.50 489.25 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 470.00 489.25 Td (Stock Awards) Tj ET Q BT /F2 7.00 Tf ET 0 0 0 RG /GS0 gs 0.73 w 0 i [] 0 d 1 J 1 j 3 M 52.5 461.144677734375 m 71.5654296875 461.144677734375 l s q 0 0 0 rg BT 52.50 462.25 Td (Name) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 427.25 476.25 Td (Number of Units) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 430.95 469.25 Td (That Have Not) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 443.20 462.25 Td (Vested) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 505.30 476.25 Td (Market V) Tj ET Q q 0 0 0 rg BT 534.09 476.25 Td (alue of ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 504.55 469.25 Td (Units That Have ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 509.15 462.25 Td (Not V) Tj ET Q q 0 0 0 rg BT 527.04 462.25 Td (ested ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 547.27 465.59 Td (\(1\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 446.65 Td (Jay S. Wintrob) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 117.90 446.20 Td (.........................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 442.45 446.65 Td (1,621,937) Tj ET Q BT /F3 5.85 Tf ET q 0 0 0 rg BT 488.50 451.57 Td (\(2\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 502.50 446.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 519.45 446.65 Td (4,614,638) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 430.65 Td (David M. Kirchheimer) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 145.40 430.20 Td (..............................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 454.95 430.65 Td (27,500) Tj ET Q BT /F3 5.85 Tf ET q 0 0 0 rg BT 488.50 435.57 Td (\(3\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 502.50 430.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.95 430.65 Td (825,000) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 414.65 Td (John B. Frank) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 115.40 414.20 Td (..........................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 449.95 414.65 Td (110,000) Tj ET Q BT /F3 5.85 Tf ET q 0 0 0 rg BT 488.50 419.57 Td (\(4\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 502.50 414.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 519.45 414.65 Td (3,487,500) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 398.65 Td (Stephen A. Kaplan) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 132.90 398.20 Td (...................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 473.50 398.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 502.50 398.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 550.50 398.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 382.65 Td (Todd E. Molz) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 112.90 382.20 Td (...........................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 449.95 382.65 Td (140,173) Tj ET Q BT /F3 5.85 Tf ET q 0 0 0 rg BT 488.50 387.57 Td (\(5\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 502.50 382.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 519.45 382.65 Td (4,931,535) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 364.25 m 150 364.25 l s BT /F3 9.00 Tf ET q 0 0 0 rg BT 563.50 364.75 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 48.50 353.95 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 70.50 353.95 Td (The fair market value of $37.50 per Class ) Tj ET Q q 0 0 0 rg BT 237.58 353.95 Td (A) Tj ET Q q 0 0 0 rg BT 243.09 353.95 Td ( unit and $30.00 per OCGH unit is based on the closing price for our Class ) Tj ET Q q 0 0 0 rg BT 541.25 353.95 Td (A) Tj ET Q q 0 0 0 rg BT 546.76 353.95 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 343.15 Td (units on December 31, 2016, less a discount applied to OCGH units as detailed in notes 2 and 14 to our consolidated ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 332.35 Td (financial statements. ) Tj ET Q q 0 0 0 rg BT 157.38 332.35 Td (The fair value of $2.37 per EVU was determined as of December 31, 2016 using a Monte Carlo ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 321.55 Td (simulation model as detailed in note 14 to our consolidated financial statements.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 48.50 310.75 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 70.50 310.75 Td (Mr) Tj ET Q q 0 0 0 rg BT 80.50 310.75 Td (. Wintrob’) Tj ET Q q 0 0 0 rg BT 118.34 310.75 Td (s units are composed of 1,600,000 EVUs and 21,937 Class ) Tj ET Q q 0 0 0 rg BT 356.49 310.75 Td (A) Tj ET Q q 0 0 0 rg BT 362.00 310.75 Td ( units. With respect to the EVUs, 400,000 will ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 299.95 Td (vest on December 31 of each of 2017 and 2018, and 800,000 will vest on December 31, 2019. ) Tj ET Q q 0 0 0 rg BT 451.09 299.95 Td (The Class ) Tj ET Q q 0 0 0 rg BT 493.61 299.95 Td (A) Tj ET Q q 0 0 0 rg BT 499.11 299.95 Td ( units will vest ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 289.15 Td (on February 15 of each of 2017 through 2020, respectively) Tj ET Q q 0 0 0 rg BT 303.48 289.15 Td (, in the following amounts: 6,810, 6,358, 5,484 and 5,485. ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 48.50 278.35 Td (\(3\) ) Tj ET Q q 0 0 0 rg BT 70.50 278.35 Td (Mr) Tj ET Q q 0 0 0 rg BT 80.50 278.35 Td (. Kirchheimer) Tj ET Q q 0 0 0 rg BT 133.85 278.35 Td (’) Tj ET Q q 0 0 0 rg BT 135.68 278.35 Td (s units are composed entirely of OCGH units, of which 2,500 OCGH units will vest on January 1 and ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 267.55 Td (February 15 of each of 2017 through 2021, respectively) Tj ET Q q 0 0 0 rg BT 290.97 267.55 Td (, and 2,500 OCGH units will vest on February 15, 2022.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 48.50 256.75 Td (\(4\) ) Tj ET Q q 0 0 0 rg BT 70.50 256.75 Td (Mr) Tj ET Q q 0 0 0 rg BT 80.50 256.75 Td (. Frank’) Tj ET Q q 0 0 0 rg BT 110.34 256.75 Td (s units are composed of 25,000 Class ) Tj ET Q q 0 0 0 rg BT 262.93 256.75 Td (A) Tj ET Q q 0 0 0 rg BT 268.43 256.75 Td ( units and 85,000 OCGH units. ) Tj ET Q q 0 0 0 rg BT 395.84 256.75 Td (The Class ) Tj ET Q q 0 0 0 rg BT 438.36 256.75 Td (A) Tj ET Q q 0 0 0 rg BT 443.86 256.75 Td ( units will vest on January 1, ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 245.95 Td (2018, February 15, 2018, and January 1, 2019, respectively) Tj ET Q q 0 0 0 rg BT 307.98 245.95 Td (, in the following amounts: 10,000, 10,000 and 5,000. With ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 235.15 Td (respect to the OCGH units \(i\) 10,000 will vest on January 1 of each of 2017, 2020 and 2021, respectively) Tj ET Q q 0 0 0 rg BT 486.57 235.15 Td (, \(ii\) 5,000 will vest ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 224.35 Td (on January 1, 2019 and \(iii\) 10,000 will vest on February 15 of each of 2017 and 2019 through 2022, respectively) Tj ET Q q 0 0 0 rg BT 519.12 224.35 Td (.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 48.50 213.55 Td (\(5\) ) Tj ET Q q 0 0 0 rg BT 70.50 213.55 Td (Mr) Tj ET Q q 0 0 0 rg BT 80.50 213.55 Td (. Molz’) Tj ET Q q 0 0 0 rg BT 106.34 213.55 Td (s units are composed of 96,846 Class ) Tj ET Q q 0 0 0 rg BT 258.92 213.55 Td (A) Tj ET Q q 0 0 0 rg BT 264.43 213.55 Td ( units and 43,327 OCGH units. With respect to the Class ) Tj ET Q q 0 0 0 rg BT 494.04 213.55 Td (A) Tj ET Q q 0 0 0 rg BT 499.55 213.55 Td ( units \(i\) 5,000 ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 202.75 Td (will vest on January 1 of each of 2017 through 2021, respectively) Tj ET Q q 0 0 0 rg BT 328.49 202.75 Td (, and \(ii\) the following amounts will vest on February 15 of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 191.95 Td (each of 2017 through 2022, respectively: 15,750, 15,750, 15,748, 13,902, 10,382 and 314. With respect to the OCGH ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 181.15 Td (units, the following amounts will vest on February 15 of each of 2017 through 2026, respectively: 3,686, 3,687, 3,687, ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 170.35 Td (3,687, 894, 10,961, 6,276, 6,276, 3,279 and 894. ) Tj ET Q endstream endobj 421 0 obj <> endobj 422 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (210) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 741.75 Td (Units V) Tj ET Q q 0 0 0 rg BT 83.40 741.75 Td (ested in 2016) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 720.75 Td (The following table provides information regarding the number of outstanding equity units held by our NEOs ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 708.75 Td (that vested during the year ended December 31, 2016: ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 677.25 m 487 677.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 677.25 m 495 677.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495 677.25 m 562 677.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 650.25 m 487 650.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495 650.25 m 562 650.25 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 63.00 681.25 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 463.75 681.25 Td (Stock ) Tj ET Q q 0 0 0 rg BT 484.50 681.25 Td (A) Tj ET Q q 0 0 0 rg BT 489.43 681.25 Td (wards ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 511.60 684.59 Td (\(1\)) Tj ET Q BT /F2 7.00 Tf ET 0 0 0 RG /GS0 gs 0.73 w 0 i [] 0 d 1 J 1 j 3 M 52.5 653.144677734375 m 71.5654296875 653.144677734375 l s q 0 0 0 rg BT 52.50 654.25 Td (Name) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 425.75 668.25 Td (Number of Units) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 432.55 661.25 Td (Acquired on) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 440.55 654.25 Td (Vesting) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 502.30 661.25 Td (Market V) Tj ET Q q 0 0 0 rg BT 531.09 661.25 Td (alue of ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 502.05 654.25 Td (Units V) Tj ET Q q 0 0 0 rg BT 525.78 654.25 Td (esting ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 548.34 657.59 Td (\(2\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 638.65 Td (Jay S. Wintrob) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 118.90 638.20 Td (.......................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 450.95 638.65 Td (401,328) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 497.50 638.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 518.45 638.65 Td (1,008,809) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 622.65 Td (David M. Kirchheimer) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 143.90 622.20 Td (.............................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 460.95 622.65 Td (5,000) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 497.50 622.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.95 622.65 Td (187,020) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 606.65 Td (John B. Frank) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 116.40 606.20 Td (........................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 455.95 606.65 Td (20,000) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 497.50 606.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.95 606.65 Td (748,080) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 590.65 Td (Stephen A. Kaplan) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 133.90 590.20 Td (.................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 474.50 590.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 497.50 590.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 549.50 590.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 574.65 Td (Todd E. Molz) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 111.40 574.20 Td (..........................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 455.95 574.65 Td (17,231) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 497.50 574.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 525.95 574.65 Td (798,657) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 556.25 m 150 556.25 l s BT /F1 10.00 Tf ET BT /F3 9.00 Tf ET q 0 0 0 rg BT 48.50 545.95 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 70.50 545.95 Td (The references to Stock ) Tj ET Q q 0 0 0 rg BT 168.05 545.95 Td (A) Tj ET Q q 0 0 0 rg BT 173.89 545.95 Td (wards or units in this table refer to 400,000 EVUs and 1,328 Class ) Tj ET Q q 0 0 0 rg BT 439.04 545.95 Td (A) Tj ET Q q 0 0 0 rg BT 444.54 545.95 Td ( units in the case of Mr) Tj ET Q q 0 0 0 rg BT 534.59 545.95 Td (. ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 535.15 Td (Wintrob; 17,231 Class ) Tj ET Q q 0 0 0 rg BT 161.04 535.15 Td (A) Tj ET Q q 0 0 0 rg BT 166.55 535.15 Td ( units in the case of Mr) Tj ET Q q 0 0 0 rg BT 256.60 535.15 Td (. Molz; and otherwise refer to OCGH units.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 48.50 524.35 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 70.50 524.35 Td (The fair market value per unit is based on the trading price for our Class ) Tj ET Q q 0 0 0 rg BT 358.64 524.35 Td (A) Tj ET Q q 0 0 0 rg BT 364.15 524.35 Td ( units on applicable vesting dates of January 1, ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 513.55 Td (2016 and March 1, 2016, respectively) Tj ET Q q 0 0 0 rg BT 219.92 513.55 Td (, less a discount applied to OCGH units. ) Tj ET Q q 0 0 0 rg BT 384.34 513.55 Td (The fair market value of $2.37 per EVU was ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 502.75 Td (determined as of December 31, 2016 using a Monte Carlo simulation model. Please see notes 2 and 14 to our ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 491.95 Td (consolidated financial statements for more details.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 454.15 Td (Potential Payments Upon T) Tj ET Q q 0 0 0 rg BT 178.22 454.15 Td (ermination of Employment or Change in Control at 2016 ) Tj ET Q q 0 0 0 rg BT 445.85 454.15 Td (Y) Tj ET Q q 0 0 0 rg BT 451.97 454.15 Td (ear End ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 433.15 Td (Except as otherwise reflected in Mr) Tj ET Q q 0 0 0 rg BT 240.57 433.15 Td (. Wintrob’) Tj ET Q q 0 0 0 rg BT 282.62 433.15 Td (s employment agreement, we do not have any formal ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 421.15 Td (severance or change of control plans or agreements in place for any of our NEOs. Except for Mr) Tj ET Q q 0 0 0 rg BT 476.38 421.15 Td (. Wintrob’) Tj ET Q q 0 0 0 rg BT 518.43 421.15 Td (s EVUs, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 409.15 Td (none of the equity awards held by any of our executive of) Tj ET Q q 0 0 0 rg BT 302.26 409.15 Td (ficers at 2016 year end is subject to accelerated vesting in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 397.15 Td (connection with a change in control or a termination of employment for any reason, except if termination is due to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 385.15 Td (death, disability or) Tj ET Q q 0 0 0 rg BT 129.55 385.15 Td (, in certain cases discussed below) Tj ET Q q 0 0 0 rg BT 280.18 385.15 Td (, termination without cause, in which case all unvested units ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 373.15 Td (automatically accelerate in full. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 352.15 Td (In all cases, none of Messrs. Kaplan and Frank is entitled to any additional vesting of their participation ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 340.15 Td (rights in the incentive income generated by our funds as a result of a change in control of us or any of our af) Tj ET Q q 0 0 0 rg BT 525.71 340.15 Td (filiates. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 328.15 Td (The impact of a termination of employment on the incentive income participation rights held by each of Messrs. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 316.15 Td (Kaplan and Frank is described below) Tj ET Q q 0 0 0 rg BT 212.93 316.15 Td (. ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 49.50 295.15 Td (Incentive Income \(Messrs. Kaplan and Frank\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 274.15 Td (Generally) Tj ET Q q 0 0 0 rg BT 127.56 274.15 Td (, upon the earliest to occur of a participating NEO’) Tj ET Q q 0 0 0 rg BT 348.05 274.15 Td (s death, “disability” \(as defined in the applicable ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 262.15 Td (governing documents\) termination without “cause” \(as defined in the applicable governing documents\) or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 250.15 Td (resignation \(each, a “termination event”\), such NEO’) Tj ET Q q 0 0 0 rg BT 279.98 250.15 Td (s incentive income interest will be converted into the right to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 238.15 Td (receive a residual percentage \(which cannot exceed the NEO’) Tj ET Q q 0 0 0 rg BT 323.36 238.15 Td (s interest prior to such termination event\) of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 226.15 Td (distributions the NEO otherwise would have received absent such termination event, as described below) Tj ET Q q 0 0 0 rg BT 510.31 226.15 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 205.15 Td (In the case of a termination event other than resignation, the residual percentage generally will equal the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 193.15 Td (product of: ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 172.15 Td (• ) Tj ET Q q 0 0 0 rg BT 103.50 172.15 Td (the participating NEO’) Tj ET Q q 0 0 0 rg BT 200.59 172.15 Td (s interest prior to such event; and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 151.15 Td (• ) Tj ET Q q 0 0 0 rg BT 103.50 151.15 Td (if the fund is in its investment period, a percentage equal to the applicable fund’) Tj ET Q q 0 0 0 rg BT 453.54 151.15 Td (s aggregate committed ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 139.15 Td (capital that had been contributed as of the date of the termination event. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 118.15 Td (If a participating NEO resigns, the residual percentage generally will equal the product of: ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 97.15 Td (• ) Tj ET Q q 0 0 0 rg BT 103.50 97.15 Td (the participating NEO’) Tj ET Q q 0 0 0 rg BT 200.59 97.15 Td (s interest prior to such resignation; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 76.15 Td (• ) Tj ET Q q 0 0 0 rg BT 103.50 76.15 Td (the participating NEO’) Tj ET Q q 0 0 0 rg BT 200.59 76.15 Td (s vested percentage as of the resignation date \(as discussed above under “—) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 64.15 Td (Carried Interest or Incentive Income”\); and ) Tj ET Q endstream endobj 423 0 obj <> endobj 424 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 298.00 31.25 Td (21) Tj ET Q q 0 0 0 rg BT 308.38 31.25 Td (1) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 741.75 Td (• ) Tj ET Q q 0 0 0 rg BT 103.50 741.75 Td (if the fund is in its investment period, a percentage equal to the applicable fund’) Tj ET Q q 0 0 0 rg BT 453.54 741.75 Td (s aggregate committed ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 729.75 Td (capital that had been contributed as of the resignation date. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 708.75 Td (If a participating NEO resigns and engages in competitive activity within two years following his resignation, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 696.75 Td (the NEO’) Tj ET Q q 0 0 0 rg BT 89.89 696.75 Td (s residual percentage will be reduced further \(by as much as 50%\). ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 675.75 Td (In the event that a participating NEO is terminated for cause, he immediately forfeits all rights to further ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 663.75 Td (distributions of incentive income. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 642.75 Td (The following table sets forth the estimated value of the estimated incentive income distributions that would ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 630.75 Td (be made in respect of the NEO’) Tj ET Q q 0 0 0 rg BT 188.84 630.75 Td (s unvested incentive income interests under the Carry Plans, assuming those ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 618.75 Td (interests became fully vested on December 31, 2016 upon a termination of employment without cause or for good ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 606.75 Td (reason \(as applicable\) or termination due to death, disability or resignation. No amount is payable or accelerated in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 594.75 Td (respect of an interest in the incentive income upon an individual’) Tj ET Q q 0 0 0 rg BT 332.83 594.75 Td (s termination, regardless of the reason for the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 582.75 Td (termination. Rather) Tj ET Q q 0 0 0 rg BT 133.99 582.75 Td (, an individual who is terminated will receive amounts payable as and when we receive the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 570.75 Td (associated incentive income \(which is expected to occur over a number of years\) in accordance with the same ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 558.75 Td (payment schedule as would have been in ef) Tj ET Q q 0 0 0 rg BT 243.89 558.75 Td (fect in the absence of termination. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 537.75 Td (The values disclosed below in respect of the rights of participating NEOs to continue to participate in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 525.75 Td (distributions of incentive income, whether at the same level as before termination or at a reduced level as described ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 513.75 Td (above under “—) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 121.21 513.75 Td (Potential Payments Upon T) Tj ET Q q 0 0 0 rg BT 242.02 513.75 Td (ermination of Employment or Change in Control at 2016 ) Tj ET Q q 0 0 0 rg BT 491.98 513.75 Td (Y) Tj ET Q q 0 0 0 rg BT 498.09 513.75 Td (ear End) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 533.12 513.75 Td (,” ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 501.75 Td (have been determined assuming that each of the funds in respect of which the NEOs would have a right to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 489.75 Td (incentive income had been liquidated on December 31, 2016 and all of the funds’) Tj ET Q q 0 0 0 rg BT 407.71 489.75 Td ( assets distributed in accordance ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 477.75 Td (with their respective distribution provisions at a value equal to their book value as of December 31, 2016. W) Tj ET Q q 0 0 0 rg BT 527.35 477.75 Td (e have ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 465.75 Td (calculated the amounts set forth below using these assumptions because distributions made on a liquidation basis ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 453.75 Td (would yield the maximum amounts potentially payable to each of the NEOs, had a termination of employment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 441.75 Td (actually occurred on December 31, 2016. W) Tj ET Q q 0 0 0 rg BT 247.20 441.75 Td (e note, however) Tj ET Q q 0 0 0 rg BT 317.80 441.75 Td (, that the values set forth below were computed based ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 429.75 Td (on assumptions that may not be accurate or applicable to a given circumstance of termination. ) Tj ET Q q 0 0 0 rg BT 471.21 429.75 Td (The actual amounts ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 417.75 Td (to be paid upon a particular termination of employment cannot be directly determined since such payments would ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 405.75 Td (be based on several factors, including when termination of employment occurs, the circumstances of termination, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 393.75 Td (the time period for fund liquidation, the investment performance of the fund and the value at which such liquidations ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 381.75 Td (actually occur) Tj ET Q q 0 0 0 rg BT 110.09 381.75 Td (, when Oaktree determines to make distributions from such funds, when income is realized from such ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 369.75 Td (funds and the actual amounts so realized.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 348.75 Td (Estimated Distributions in Respect of ) Tj ET Q q 0 0 0 rg BT 229.71 348.75 Td (Acceleration of Unvested Incentive Income Interests ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 294.25 m 562 294.25 l s BT /F2 7.00 Tf ET 0 0 0 RG /GS0 gs 0.73 w 0 i [] 0 d 1 J 1 j 3 M 52.5 297.144677734375 m 71.5654296875 297.144677734375 l s q 0 0 0 rg BT 52.50 298.25 Td (Name) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 497.00 319.25 Td (Liquidation Value) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 493.50 312.25 Td (of Interests Subject) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 509.25 305.25 Td (to Vesting) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 504.95 298.25 Td (Acceleration) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 283.65 Td (Jay S. Wintrob) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 119.90 283.20 Td (...................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 493.50 283.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 549.50 283.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 268.65 Td (David M. Kirchheimer) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 147.40 268.20 Td (........................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 493.50 268.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 549.50 268.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 253.65 Td (John B. Frank) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 117.40 253.20 Td (....................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 493.50 253.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 518.45 253.65 Td (9,756,715) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 238.65 Td (Stephen A. Kaplan) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 134.90 238.20 Td (.............................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 493.50 238.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 513.45 238.65 Td (52,756,876) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 223.65 Td (Todd E. Molz) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 112.40 223.20 Td (......................................................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 493.50 223.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 549.50 223.65 Td (—) Tj ET Q BT /F1 10.00 Tf ET BT /F5 10.00 Tf ET q 0 0 0 rg BT 49.50 192.75 Td (Impact of T) Tj ET Q q 0 0 0 rg BT 98.60 192.75 Td (ermination W) Tj ET Q q 0 0 0 rg BT 157.42 192.75 Td (ithout Cause or for Good Reason on Profit Sharing Payments) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 171.75 Td (If Mr) Tj ET Q q 0 0 0 rg BT 104.94 171.75 Td (. Wintrob’) Tj ET Q q 0 0 0 rg BT 146.99 171.75 Td (s employment is terminated by us without cause or by Mr) Tj ET Q q 0 0 0 rg BT 398.77 171.75 Td (. Wintrob for good reason \(as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 159.75 Td (defined in Mr) Tj ET Q q 0 0 0 rg BT 106.76 159.75 Td (. Wintrob’) Tj ET Q q 0 0 0 rg BT 148.81 159.75 Td (s employment agreement\), Mr) Tj ET Q q 0 0 0 rg BT 281.63 159.75 Td (. Wintrob will be entitled to: \(i\) the profit sharing payments ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 147.75 Td (described above on page 203 through the fiscal quarter of termination, \(ii\) immediate vesting of all unvested OCGH ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 135.75 Td (Units delivered in respect of prior profit sharing payments, and \(iii\) payment of 25% of the aggregate profit sharing ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 123.75 Td (payments earned in respect of the four full fiscal quarters that preceded the termination quarter for up to eight ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 111.75 Td (quarters after the quarter of termination, depending on the timing and circumstances of the termination. If Mr) Tj ET Q q 0 0 0 rg BT 529.75 111.75 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 99.75 Td (Wintrob’) Tj ET Q q 0 0 0 rg BT 85.99 99.75 Td (s employment had been terminated by us without cause or by him for good reason on December 31, 2016, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 87.75 Td (we expect that we would have paid him an amount equal to $1,333,055 per quarter for each of the Company’) Tj ET Q q 0 0 0 rg BT 530.74 87.75 Td (s eight ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 75.75 Td (consecutive fiscal quarters beginning with the first quarter of 2017, for a total of $10,664,440. In addition, we would ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 63.75 Td (still make the cash replacement payments to Mr) Tj ET Q q 0 0 0 rg BT 260.70 63.75 Td (. Wintrob as described above under “—) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 434.68 63.75 Td (Compensation of the ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 49.50 51.75 Td (Individual NEOs) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 121.20 51.75 Td (” if Mr) Tj ET Q q 0 0 0 rg BT 146.19 51.75 Td (. Wintrob’) Tj ET Q q 0 0 0 rg BT 188.25 51.75 Td (s prior employer does not otherwise honor its continuing payment obligations to Mr) Tj ET Q q 0 0 0 rg BT 552.88 51.75 Td (. ) Tj ET Q endstream endobj 425 0 obj <> endobj 426 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (212) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 741.75 Td (Wintrob. ) Tj ET Q q 0 0 0 rg BT 91.74 741.75 Td (As we could not know as of December 31, 2016 whether or not Mr) Tj ET Q q 0 0 0 rg BT 384.11 741.75 Td (. Wintrob’) Tj ET Q q 0 0 0 rg BT 426.17 741.75 Td (s prior employer would honor ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 729.75 Td (its continuing payment obligations, we cannot quantify the contingent cash replacement payments that we may ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 717.75 Td (need to make in the future.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 696.75 Td (Under his employment agreement, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 675.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 675.75 Td (“cause” includes \(i\) willful and continued failure to fulfill responsibilities under the employment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 663.75 Td (agreement, \(ii\) gross negligence or willful misconduct detrimental to Oaktree, \(iii\) material breach of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 651.75 Td (employment agreement or any other agreement with Oaktree, \(iv\) material violation of a material ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 639.75 Td (regulation or regulatory rule, \(v\) conviction of, or entry of a guilty plea or of no contest to, certain ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 627.75 Td (felonies, \(vi\) court or regulatory order removing Mr) Tj ET Q q 0 0 0 rg BT 325.25 627.75 Td (. Wintrob as an of) Tj ET Q q 0 0 0 rg BT 403.44 627.75 Td (ficer \(or equivalent person\) of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 615.75 Td (Oaktree or prohibiting him from participating in the conduct of any Oaktree af) Tj ET Q q 0 0 0 rg BT 442.38 615.75 Td (fairs, \(vii\) fraud, theft ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 603.75 Td (misappropriation or dishonesty relating to Oaktree, or \(viii\) material breach of Oaktree policies; and) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 582.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 582.75 Td (“good reason” includes \(i\) a material diminution or adverse change in duties, authority) Tj ET Q q 0 0 0 rg BT 480.74 582.75 Td (, responsibilities, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 570.75 Td (positions or reporting lines of authority under the employment agreement, \(ii\) relocation of Mr) Tj ET Q q 0 0 0 rg BT 513.15 570.75 Td (. Wintrob’) Tj ET Q q 0 0 0 rg BT 555.20 570.75 Td (s ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 558.75 Td (principal job location or of) Tj ET Q q 0 0 0 rg BT 216.72 558.75 Td (fice by more than 35 miles, and \(iii\) any material breach by Oaktree of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 546.75 Td (employment agreement.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 525.75 Td (As a condition to receiving these entitlements, Mr) Tj ET Q q 0 0 0 rg BT 302.83 525.75 Td (. Wintrob will be required to sign a release of claims ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 513.75 Td (against us, our employees, directors and related persons and to comply with certain post-employment restrictive ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 501.75 Td (covenants. ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 49.50 480.75 Td (Impact of T) Tj ET Q q 0 0 0 rg BT 98.60 480.75 Td (ermination W) Tj ET Q q 0 0 0 rg BT 157.42 480.75 Td (ithout Cause or for Good Reason on EVUs) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 85.50 459.75 Td (T) Tj ET Q q 0 0 0 rg BT 90.69 459.75 Td (ermination Other than During the One ) Tj ET Q q 0 0 0 rg BT 260.60 459.75 Td (Y) Tj ET Q q 0 0 0 rg BT 266.72 459.75 Td (ear Period Following a Change in Control.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 452.38 459.75 Td ( If Mr) Tj ET Q q 0 0 0 rg BT 477.38 459.75 Td (. Wintrob had been ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 447.75 Td (terminated by us without cause, or if he had resigned for good reason, on December 31, 2016, Mr) Tj ET Q q 0 0 0 rg BT 480.86 447.75 Td (. Wintrob would ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 435.75 Td (be vested in a number of EVUs equal to the sum \(not to exceed 2,000,000\) of \(A\) the number of EVUs that have ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 423.75 Td (vested before the fiscal year in which his termination of employment occurs, plus, \(B\) the product of 400,000 EVUs ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 411.75 Td (multiplied by) Tj ET Q q 0 0 0 rg BT 104.34 411.75 Td (, a fraction, the numerator of which is the number of days in the fiscal year during which we employed ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 399.75 Td (Mr) Tj ET Q q 0 0 0 rg BT 60.61 399.75 Td (. Wintrob, and the denominator of which is 365, plus \(C\) 800,000 EVUs, so Mr) Tj ET Q q 0 0 0 rg BT 404.67 399.75 Td (. Wintrob would be vested in 1.6 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 387.75 Td (million EVUs. ) Tj ET Q q 0 0 0 rg BT 114.33 387.75 Td (The value attributable to the accelerated vesting of the EVUs is not currently calculable because ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 375.75 Td (these vested EVUs would be recapitalized as OCGH Units following December 31, 2019, December 31, 2020, and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 363.75 Td (December 31, 2021 based on the excess of \(A\) the sum of \(x\) the volume-weighted average price of an Oaktree ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 351.75 Td (Class ) Tj ET Q q 0 0 0 rg BT 76.73 351.75 Td (A) Tj ET Q q 0 0 0 rg BT 82.85 351.75 Td ( unit over a period of 60 business days before and 60 business days after December 31, 2019, December ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 339.75 Td (31, 2020, and December 31, 2021 and \(y\) the aggregate cash distributions made on a per-OCGH unit basis in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 327.75 Td (respect of such periods, excluding distributions attributable to net incentive income from certain Oaktree funds listed ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 315.75 Td (in Mr) Tj ET Q q 0 0 0 rg BT 71.17 315.75 Td (. Wintrob’) Tj ET Q q 0 0 0 rg BT 113.22 315.75 Td (s employment agreement, over \(B\) $61.00, $65.00 and $69.00, as applicable \(2\) multiplying such ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 303.75 Td (excess by 1.6 million EVUs, and \(3\) dividing that amount by the volume-weighted average price described in this ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 291.75 Td (section. ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 85.50 270.75 Td (T) Tj ET Q q 0 0 0 rg BT 90.69 270.75 Td (ermination During the One ) Tj ET Q q 0 0 0 rg BT 210.57 270.75 Td (Y) Tj ET Q q 0 0 0 rg BT 216.69 270.75 Td (ear Period Following a Change in Control.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 402.35 270.75 Td ( ) Tj ET Q q 0 0 0 rg BT 407.73 270.75 Td (The EVU award agreement ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 258.75 Td (provides that if Mr) Tj ET Q q 0 0 0 rg BT 128.42 258.75 Td (. Wintrob had been terminated by us without cause, or if he had resigned for good reason, within ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 246.75 Td (one year following a change in control, 1,600,000 EVUs would vest if the termination occurs in 2016 and 2,000,000 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 234.75 Td (EVUs would vest if a termination occurs in 2017, 2018 or 2019. If a change in control occurred on December 31, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 222.75 Td (2016 and Mr) Tj ET Q q 0 0 0 rg BT 105.10 222.75 Td (. Wintrob had been terminated by us without cause, or if he had resigned for good reason on such ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 210.75 Td (date, then Mr) Tj ET Q q 0 0 0 rg BT 107.87 210.75 Td (. Wintrob would be vested in 1,600,000 EVUs. ) Tj ET Q q 0 0 0 rg BT 317.25 210.75 Td (The value attributable to the accelerated vesting of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 198.75 Td (EVUs is not currently calculable because the recapitalization and settlement of those EVUs would occur in the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 186.75 Td (same manner as described in the preceding paragraph.) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 49.50 165.75 Td (V) Tj ET Q q 0 0 0 rg BT 55.80 165.75 Td (oluntary Resignation W) Tj ET Q q 0 0 0 rg BT 159.09 165.75 Td (ithout Good Reason, T) Tj ET Q q 0 0 0 rg BT 258.79 165.75 Td (ermination for Cause or T) Tj ET Q q 0 0 0 rg BT 371.25 165.75 Td (ermination by Reason of Death or ) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 49.50 153.75 Td (Disability) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 132.75 Td (If Mr) Tj ET Q q 0 0 0 rg BT 104.94 132.75 Td (. Wintrob resigns without good reason on December 31, 2016, then Mr) Tj ET Q q 0 0 0 rg BT 416.23 132.75 Td (. Wintrob would receive payment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 120.75 Td (in respect of 400,000 EVUs. If Mr) Tj ET Q q 0 0 0 rg BT 199.02 120.75 Td (. Wintrob is terminated by us for cause, all of his EVUs, whether vested or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 108.75 Td (unvested, will be immediately forfeited without consideration. If Mr) Tj ET Q q 0 0 0 rg BT 342.97 108.75 Td (. Wintrob were terminated by reason of death or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 96.75 Td (disability) Tj ET Q q 0 0 0 rg BT 87.11 96.75 Td (, Mr) Tj ET Q q 0 0 0 rg BT 103.77 96.75 Td (. Wintrob would be entitled to pro rata vesting and recapitalization of his EVUs, all as described in his ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 84.75 Td (EVU award agreement.) Tj ET Q endstream endobj 427 0 obj <> endobj 428 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (213) Tj ET Q BT /F5 10.00 Tf ET q 0 0 0 rg BT 49.50 741.75 Td (Full ) Tj ET Q q 0 0 0 rg BT 68.02 741.75 Td (Acceleration Event for EVUs) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 720.75 Td (If we no longer employ Howard Marks or Bruce Karsh, or if either one is no longer our director or of) Tj ET Q q 0 0 0 rg BT 522.74 720.75 Td (ficer) Tj ET Q q 0 0 0 rg BT 541.08 720.75 Td (, or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 708.75 Td (if either one substantially reduces his role \(other than for death or disability) Tj ET Q q 0 0 0 rg BT 378.38 708.75 Td (, or a family medical issue\), in each case ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 696.75 Td (on or prior to December 31, 2019, then Mr) Tj ET Q q 0 0 0 rg BT 235.71 696.75 Td (. Wintrob will be entitled to the following treatment with respect to his ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 684.75 Td (EVUs:) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 663.75 Td (\(A\) ) Tj ET Q q 0 0 0 rg BT 101.06 663.75 Td (All of Mr) Tj ET Q q 0 0 0 rg BT 137.17 663.75 Td (. Wintrob’) Tj ET Q q 0 0 0 rg BT 179.23 663.75 Td (s 2,000,000 outstanding EVUs will become fully vested and nonforfeitable. In lieu of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 651.75 Td (calculating the value of the amounts paid in respect of the EVUs in 2019, 2020 or 2021 as would occur absent a full ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 639.75 Td (acceleration event, the calculation would occur promptly following the full acceleration event. ) Tj ET Q q 0 0 0 rg BT 463.44 639.75 Td (The allocation for the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 627.75 Td (EVUs will equal the sum of \(i\) the volume-weighted average price of our Class ) Tj ET Q q 0 0 0 rg BT 396.88 627.75 Td (A) Tj ET Q q 0 0 0 rg BT 403.00 627.75 Td ( Units over the 15 business days ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 615.75 Td (before the date as of which either Mr) Tj ET Q q 0 0 0 rg BT 211.26 615.75 Td (. Wintrob notifies us that Mr) Tj ET Q q 0 0 0 rg BT 332.42 615.75 Td (. Karsh or Mr) Tj ET Q q 0 0 0 rg BT 389.65 615.75 Td (. Marks has ceased to serve, or there ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 603.75 Td (is a public announcement that Mr) Tj ET Q q 0 0 0 rg BT 196.25 603.75 Td (. Karsh or Mr) Tj ET Q q 0 0 0 rg BT 253.49 603.75 Td (. Marks has ceased to serve; plus \(ii\) the aggregate cash distributions ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 591.75 Td (made on a per-OCGH Unit-basis from January 1, 2015 through such date of notice, excluding distributions ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 579.75 Td (attributable to net incentive income from certain Oaktree funds listed in Mr) Tj ET Q q 0 0 0 rg BT 375.77 579.75 Td (. Wintrob’) Tj ET Q q 0 0 0 rg BT 417.82 579.75 Td (s employment agreement over ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 567.75 Td (the $61.00 Base V) Tj ET Q q 0 0 0 rg BT 131.04 567.75 Td (alue as accreted through such date of notice. ) Tj ET Q q 0 0 0 rg BT 335.99 567.75 Td (The allocation hereunder will be made no later ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 555.75 Td (than in the year following the year in which the full acceleration event occurred.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 534.75 Td (\(B\) Mr) Tj ET Q q 0 0 0 rg BT 112.72 534.75 Td (. Wintrob will get an award of an additional 2,000,000 OCGH equity value units \(the “new EVUs”\). ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 522.75 Td (The new EVUs will vest ratably over the period of remaining full or partial years between January 1, 2015 and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 510.75 Td (December 31, 2020, subject to Mr) Tj ET Q q 0 0 0 rg BT 199.58 510.75 Td (. Wintrob’) Tj ET Q q 0 0 0 rg BT 241.63 510.75 Td (s continued employment. Mr) Tj ET Q q 0 0 0 rg BT 369.47 510.75 Td (. Wintrob would be entitled to annual cash ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 498.75 Td (distributions in respect of the new EVUs based on the performance period of remaining full or partial years between ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 486.75 Td (January 1, 2015 through December 31, 2020. ) Tj ET Q q 0 0 0 rg BT 256.68 486.75 Td (The new EVUs would be divided into three tranches, and the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 474.75 Td (determination of how many of the new EVUs are recapitalized as OCGH units would be made as of each December ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 462.75 Td (31 of 2020, 2021 and 2022, respectively) Tj ET Q q 0 0 0 rg BT 226.67 462.75 Td (, and would be made based on the three performance periods each ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 450.75 Td (beginning on January 1, 2015 and ending on December 31 of 2020, 2021 and 2022, respectively) Tj ET Q q 0 0 0 rg BT 476.30 450.75 Td (. ) Tj ET Q q 0 0 0 rg BT 484.45 450.75 Td (The Base V) Tj ET Q q 0 0 0 rg BT 535.96 450.75 Td (alue ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 438.75 Td (for the 2020 fiscal year would be the volume-weighted average price of our Class ) Tj ET Q q 0 0 0 rg BT 410.26 438.75 Td (A) Tj ET Q q 0 0 0 rg BT 416.38 438.75 Td ( units over the 15 days following ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 426.75 Td (the date as of which Mr) Tj ET Q q 0 0 0 rg BT 152.33 426.75 Td (. Marks or Mr) Tj ET Q q 0 0 0 rg BT 210.67 426.75 Td (. Karsh ceases to serve, plus any unaccreted portion of the $61.00 Base V) Tj ET Q q 0 0 0 rg BT 539.01 426.75 Td (alue ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 414.75 Td (that is an estimate of the projected cash distributions over the period January 1, 2015 through December 31, 2020, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 402.75 Td (on a per-OCGH Unit-basis, excluding distributions attributable to net incentive income from certain Oaktree funds ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 390.75 Td (listed in Mr) Tj ET Q q 0 0 0 rg BT 97.29 390.75 Td (. Wintrob’) Tj ET Q q 0 0 0 rg BT 139.34 390.75 Td (s employment agreement, plus twenty percent of such unaccreted Base V) Tj ET Q q 0 0 0 rg BT 465.44 390.75 Td (alue. ) Tj ET Q q 0 0 0 rg BT 492.50 390.75 Td (The Base ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 378.75 Td (V) Tj ET Q q 0 0 0 rg BT 55.43 378.75 Td (alues for the 2021 and 2022 fiscal years would be determined in the same manner) Tj ET Q q 0 0 0 rg BT 418.99 378.75 Td (, but using $65.00 in place of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 366.75 Td ($61.00 for the 2021 fiscal year and $69.00 for the 2022 fiscal year) Tj ET Q q 0 0 0 rg BT 340.25 366.75 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 345.75 Td (All other terms and conditions that applied to the original EVUs will apply to the new EVUs.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 324.75 Td (Accelerated V) Tj ET Q q 0 0 0 rg BT 115.10 324.75 Td (esting of OCGH Units and Class ) Tj ET Q q 0 0 0 rg BT 269.74 324.75 Td (A) Tj ET Q q 0 0 0 rg BT 276.59 324.75 Td ( Units Upon T) Tj ET Q q 0 0 0 rg BT 340.84 324.75 Td (ermination of Employment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 303.75 Td (The following table sets forth the estimated value of the acceleration of all unvested OCGH units and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 291.75 Td (unvested Class ) Tj ET Q q 0 0 0 rg BT 120.10 291.75 Td (A) Tj ET Q q 0 0 0 rg BT 126.21 291.75 Td ( units held by each NEO other than Mr) Tj ET Q q 0 0 0 rg BT 295.75 291.75 Td (. Wintrob, assuming a termination of employment due to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 279.75 Td (death or disability on December 31, 2016. Other than on termination of employment by reason of death or disability) Tj ET Q q 0 0 0 rg BT 559.60 279.75 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 267.75 Td (the vesting of outstanding OCGH and Class ) Tj ET Q q 0 0 0 rg BT 245.72 267.75 Td (A) Tj ET Q q 0 0 0 rg BT 251.84 267.75 Td ( unit awards do not accelerate upon termination of employment, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 255.75 Td (except in the case of \(i\) Class ) Tj ET Q q 0 0 0 rg BT 182.89 255.75 Td (A) Tj ET Q q 0 0 0 rg BT 189.01 255.75 Td ( units granted to Mr) Tj ET Q q 0 0 0 rg BT 274.61 255.75 Td (. Wintrob in connection with his profit sharing payments as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 243.75 Td (described above and \(ii\) certain OCGH and Class ) Tj ET Q q 0 0 0 rg BT 271.27 243.75 Td (A) Tj ET Q q 0 0 0 rg BT 277.39 243.75 Td ( units granted to Mr) Tj ET Q q 0 0 0 rg BT 362.99 243.75 Td (. Molz in 2014 and thereafter if Mr) Tj ET Q q 0 0 0 rg BT 511.96 243.75 Td (. Molz is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 231.75 Td (terminated by us without cause.) Tj ET Q endstream endobj 429 0 obj <> endobj 430 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (214) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 741.75 Td (Acceleration of Unvested OCGH Units and Class ) Tj ET Q q 0 0 0 rg BT 282.52 741.75 Td (A) Tj ET Q q 0 0 0 rg BT 289.37 741.75 Td ( Units ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413 710.25 m 484 710.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 484 710.25 m 492 710.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 710.25 m 563 710.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413 675.25 m 484 675.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 675.25 m 563 675.25 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 435.75 714.25 Td (OCGH Units or Class ) Tj ET Q q 0 0 0 rg BT 507.45 714.25 Td (A) Tj ET Q q 0 0 0 rg BT 512.24 714.25 Td ( Units ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 533.63 717.59 Td (\(1\)) Tj ET Q BT /F2 7.00 Tf ET 0 0 0 RG /GS0 gs 0.73 w 0 i [] 0 d 1 J 1 j 3 M 52.5 678.144677734375 m 71.5654296875 678.144677734375 l s q 0 0 0 rg BT 52.50 679.25 Td (Name) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 416.50 700.25 Td (Number of Units of) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 420.55 693.25 Td (Stock Subject to) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 435.55 686.25 Td (Vesting) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 426.95 679.25 Td (Acceleration) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 501.30 693.25 Td (Market V) Tj ET Q q 0 0 0 rg BT 530.09 693.25 Td (alue of ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 507.15 686.25 Td (Accelerated ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 496.80 679.25 Td (V) Tj ET Q q 0 0 0 rg BT 501.08 679.25 Td (esting of Units ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 551.64 682.59 Td (\(2\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 664.65 Td (Jay S. Wintrob) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 116.90 664.20 Td (.....................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 452.95 664.65 Td (21,937) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 494.50 664.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.95 664.65 Td (822,638) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 649.65 Td (David M. Kirchheimer) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 144.40 649.20 Td (..........................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 452.95 649.65 Td (27,500) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 494.50 649.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.95 649.65 Td (825,000) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 634.65 Td (John B. Frank) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 114.40 634.20 Td (......................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 447.95 634.65 Td (110,000) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 494.50 634.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 519.45 634.65 Td (3,487,500) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 619.65 Td (Steven A. Kaplan) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 129.40 619.20 Td (................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 471.50 619.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 494.50 619.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 550.50 619.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 604.65 Td (Todd E. Molz) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 111.90 604.20 Td (.......................................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 447.95 604.65 Td (140,173) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 494.50 604.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 519.45 604.65 Td (4,931,535) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 586.25 m 150 586.25 l s BT /F1 10.00 Tf ET BT /F3 9.00 Tf ET q 0 0 0 rg BT 48.50 575.95 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 70.50 575.95 Td (The references to stock awards or units in this table refer to Class ) Tj ET Q q 0 0 0 rg BT 334.12 575.95 Td (A) Tj ET Q q 0 0 0 rg BT 339.63 575.95 Td ( units in the case of Mr) Tj ET Q q 0 0 0 rg BT 429.67 575.95 Td (. Wintrob, OCGH units in the ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 565.15 Td (case of Mr) Tj ET Q q 0 0 0 rg BT 112.02 565.15 Td (. Kirchheimer and both Class ) Tj ET Q q 0 0 0 rg BT 229.57 565.15 Td (A) Tj ET Q q 0 0 0 rg BT 235.08 565.15 Td ( and OCGH units in the case of Messrs. Frank and Molz. ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 48.50 554.35 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 70.50 554.35 Td (The fair market value of $37.50 per Class ) Tj ET Q q 0 0 0 rg BT 237.58 554.35 Td (A) Tj ET Q q 0 0 0 rg BT 243.09 554.35 Td ( unit and $30.00 per OCGH unit is based on the closing price for our Class ) Tj ET Q q 0 0 0 rg BT 541.25 554.35 Td (A) Tj ET Q q 0 0 0 rg BT 546.76 554.35 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 543.55 Td (units on December 31, 2016, less a discount applied to OCGH units as detailed in notes 2 and 14 to our consolidated ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 532.75 Td (financial statements.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 505.75 Td (Director Compensation T) Tj ET Q q 0 0 0 rg BT 168.22 505.75 Td (able for 2016 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 484.75 Td (The following table sets forth the cash and equity compensation paid to our non-employee directors for the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 472.75 Td (year ended December 31, 2016:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 436.25 m 320 436.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328 436.25 m 399 436.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407 436.25 m 478 436.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478 436.25 m 492 436.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 436.25 m 563 436.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328 436.25 m 399 436.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407 436.25 m 478 436.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478 436.25 m 492 436.25 l s BT /F2 7.00 Tf ET 0 0 0 RG /GS0 gs 0.73 w 0 i [] 0 d 1 J 1 j 3 M 52.5 439.144677734375 m 71.5654296875 439.144677734375 l s q 0 0 0 rg BT 52.50 440.25 Td (Name) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 258.70 447.25 Td (Fees Earned or ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 259.20 440.25 Td (Paid in Cash ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 303.16 443.59 Td (\(1\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 339.00 440.25 Td (Unit ) Tj ET Q q 0 0 0 rg BT 354.29 440.25 Td (A) Tj ET Q q 0 0 0 rg BT 359.22 440.25 Td (wards ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 381.40 443.59 Td (\(2\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 432.65 447.25 Td (Other) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 417.65 440.25 Td (Compensation) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 518.85 440.25 Td (Total) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 425.65 Td (Robert E. Denham) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 130.45 425.20 Td (..............................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 251.50 425.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 288.95 425.65 Td (75,000) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 330.50 425.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 362.95 425.65 Td (104,842) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 409.50 425.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 465.50 425.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 494.50 425.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.95 425.65 Td (179,842) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 410.65 Td (Steven J. Gilbert) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 122.95 410.20 Td (.................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 251.50 410.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 288.95 410.65 Td (16,667) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 330.50 410.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 367.95 410.65 Td (16,301) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 409.50 410.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 465.50 410.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 494.50 410.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 531.95 410.65 Td (32,968) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 395.65 Td (D. Richard Masson) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 132.95 395.20 Td (.............................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 251.50 395.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 283.95 395.65 Td (100,000) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 330.50 395.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 362.95 395.65 Td (104,842) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 409.50 395.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 446.95 395.65 Td (16,727) Tj ET Q BT /F3 5.85 Tf ET q 0 0 0 rg BT 480.50 400.57 Td (\(3\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 494.50 395.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.95 395.65 Td (221,569) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 380.65 Td (Wayne G. Pierson) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 127.95 380.20 Td (...............................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 251.50 380.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 283.95 380.65 Td (100,000) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 330.50 380.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 362.95 380.65 Td (104,842) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 409.50 380.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 465.50 380.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 494.50 380.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.95 380.65 Td (204,842) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.50 365.65 Td (Marna C. Whittington) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 140.45 365.20 Td (..........................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 251.50 365.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 283.95 365.65 Td (115,000) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 330.50 365.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 362.95 365.65 Td (104,842) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 409.50 365.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 465.50 365.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 494.50 365.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 526.95 365.65 Td (219,842) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 347.25 m 150 347.25 l s BT /F1 10.00 Tf ET BT /F3 9.00 Tf ET q 0 0 0 rg BT 48.50 336.95 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 70.50 336.95 Td (Annual cash retainer and fees for serving on our Board of Directors and, other than Mr) Tj ET Q q 0 0 0 rg BT 413.19 336.95 Td (. Denham, for serving on the ) Tj ET Q q 0 0 0 rg BT 528.75 336.95 Td (Audit ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 326.15 Td (Committee of our Board. Mr) Tj ET Q q 0 0 0 rg BT 183.54 326.15 Td (. Gilbert’) Tj ET Q q 0 0 0 rg BT 216.89 326.15 Td (s fees represent a prorated annual amount for 2016. ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 48.50 315.35 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 70.50 315.35 Td (On March 31, 2016, we granted 2,234 Class ) Tj ET Q q 0 0 0 rg BT 249.11 315.35 Td (A) Tj ET Q q 0 0 0 rg BT 254.61 315.35 Td ( units to each of Messrs. Denham, Masson and Pierson and Ms. Whittington, ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 304.55 Td (which will vest ratably over four years beginning on March 1, 2017, in consideration of their service as members of our ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 293.75 Td (board of directors in 2016. On November 14, 2016, we granted 406 Class ) Tj ET Q q 0 0 0 rg BT 367.68 293.75 Td (A) Tj ET Q q 0 0 0 rg BT 373.18 293.75 Td ( units to Steven Gilbert in consideration of his ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 282.95 Td (services as a member of our board for directors in 2016, which will vest ratably over four years beginning on ) Tj ET Q q 0 0 0 rg BT 501.71 282.95 Td (August 1, ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 272.15 Td (2017. ) Tj ET Q q 0 0 0 rg BT 97.86 272.15 Td (The number of outstanding and unvested Class ) Tj ET Q q 0 0 0 rg BT 288.98 272.15 Td (A) Tj ET Q q 0 0 0 rg BT 294.49 272.15 Td ( units held by Messrs. Denham, Masson, Pierson, Ms. Whittington, ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 261.35 Td (and Gilbert as of December 31, 2016 was 5,923, 5,470, 3,723 5,753, and 406 units, respectively) Tj ET Q q 0 0 0 rg BT 455.08 261.35 Td (. W) Tj ET Q q 0 0 0 rg BT 470.91 261.35 Td (e recognize expense ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 250.55 Td (for financial statement reporting purposes in respect of the unvested Class ) Tj ET Q q 0 0 0 rg BT 368.66 250.55 Td (A) Tj ET Q q 0 0 0 rg BT 374.17 250.55 Td ( units received by our directors on the basis of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 239.75 Td (the value of those units at the time of the grant pursuant to ) Tj ET Q q 0 0 0 rg BT 305.15 239.75 Td (ASC ) Tj ET Q q 0 0 0 rg BT 325.99 239.75 Td (T) Tj ET Q q 0 0 0 rg BT 330.49 239.75 Td (opic 718, ) Tj ET Q q 0 0 0 rg BT 369.02 239.75 Td (Accounting for Stock Compensation. Please ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 228.95 Td (see notes 2 and 14 to our consolidated financial statements included elsewhere in this annual report for further information ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 70.50 218.15 Td (concerning the assumptions underlying such expense.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 48.50 207.35 Td (\(3\) ) Tj ET Q q 0 0 0 rg BT 70.50 207.35 Td (Represents the cost of internet services provided at personal residence.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 180.35 Td (During 2016, we compensated our outside directors through an annual cash retainer of $75,000, and, for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 168.35 Td (five of our outside directors, the grant of our Class ) Tj ET Q q 0 0 0 rg BT 272.95 168.35 Td (A) Tj ET Q q 0 0 0 rg BT 279.07 168.35 Td ( units. Directors who are also senior executives during any ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 156.35 Td (portion of 2016 do not receive any additional compensation for serving on our board of directors. Members of our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 144.35 Td (audit committee receive an additional annual retainer of $25,000, and the chair of the audit committee receives an ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 132.35 Td (additional annual retainer of $15,000. ) Tj ET Q q 0 0 0 rg BT 219.63 132.35 Td (All members of our board of directors are reimbursed for their reasonable ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 120.35 Td (out-of-pocket expenses incurred in attending board meetings. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 99.35 Td (The number of Class ) Tj ET Q q 0 0 0 rg BT 180.54 99.35 Td (A) Tj ET Q q 0 0 0 rg BT 186.66 99.35 Td ( units granted for Messrs. Denham, Masson and Pierson and Ms. Whittington is that ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 87.35 Td (number of Class ) Tj ET Q q 0 0 0 rg BT 124.53 87.35 Td (A) Tj ET Q q 0 0 0 rg BT 130.65 87.35 Td ( units having a value equal to $100,000, determined based on the average closing price of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 75.35 Td (Class ) Tj ET Q q 0 0 0 rg BT 76.73 75.35 Td (A) Tj ET Q q 0 0 0 rg BT 82.85 75.35 Td ( units during the 20 trading days prior to February 25, 2016. ) Tj ET Q q 0 0 0 rg BT 351.72 75.35 Td (The number of Class ) Tj ET Q q 0 0 0 rg BT 446.76 75.35 Td (A) Tj ET Q q 0 0 0 rg BT 452.88 75.35 Td ( units granted for Mr) Tj ET Q q 0 0 0 rg BT 541.81 75.35 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 63.35 Td (Gilbert is that number of Class ) Tj ET Q q 0 0 0 rg BT 186.22 63.35 Td (A) Tj ET Q q 0 0 0 rg BT 192.34 63.35 Td ( units having a value equal to $16,667, determined based on the average closing ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 51.35 Td (price of the Class ) Tj ET Q q 0 0 0 rg BT 128.98 51.35 Td (A) Tj ET Q q 0 0 0 rg BT 135.10 51.35 Td ( units during the 20 trading days prior to October 24, 2016.) Tj ET Q endstream endobj 431 0 obj <> endobj 432 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (215) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 741.75 Td (Compensation Committee Interlocks and Insider Participation ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 720.75 Td (As described under “Directors, Executive Of) Tj ET Q q 0 0 0 rg BT 279.84 720.75 Td (ficers and Corporate Governance—Board Structure and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 708.75 Td (Governance—Controlled Company Exemption,” we are a “controlled company” within the meaning of the NYSE ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 696.75 Td (corporate governance standards and do not have a compensation committee. Mr) Tj ET Q q 0 0 0 rg BT 406.93 696.75 Td (. Wintrob makes all final ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 684.75 Td (determinations regarding executive of) Tj ET Q q 0 0 0 rg BT 216.08 684.75 Td (ficer compensation, with input from Messrs. Marks and Karsh as applicable. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 672.75 Td (For a description of certain transactions involving us and our directors and executive of) Tj ET Q q 0 0 0 rg BT 432.85 672.75 Td (ficers, please see “Certain ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 660.75 Td (Relationships and Related ) Tj ET Q q 0 0 0 rg BT 168.84 660.75 Td (T) Tj ET Q q 0 0 0 rg BT 174.58 660.75 Td (ransactions, and Director Independence.”) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 639.75 Td (Compensation Committee Report) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 618.75 Td (As described above, our board of directors does not have a compensation committee. ) Tj ET Q q 0 0 0 rg BT 467.20 618.75 Td (The executive ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 606.75 Td (committee of the board of directors identified below has reviewed and discussed with management the foregoing ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 594.75 Td (Compensation Discussion and ) Tj ET Q q 0 0 0 rg BT 186.80 594.75 Td (Analysis and, based on such review and discussion, has determined that the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 582.75 Td (Compensation Discussion and ) Tj ET Q q 0 0 0 rg BT 186.80 582.75 Td (Analysis should be included in this annual report.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 561.75 Td (Howard S. Marks) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 549.75 Td (Bruce ) Tj ET Q q 0 0 0 rg BT 77.85 549.75 Td (A. Karsh) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 537.75 Td (Jay S. Wintrob) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 525.75 Td (John B. Frank) Tj ET Q endstream endobj 433 0 obj <> endobj 434 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (216) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (Matters ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 708.75 Td (The following table sets forth information regarding the current beneficial ownership of our Class ) Tj ET Q q 0 0 0 rg BT 506.89 708.75 Td (A) Tj ET Q q 0 0 0 rg BT 513.01 708.75 Td ( units and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 696.75 Td (Class B units and the OCGH units by: ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.50 680.25 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 94.00 680.25 Td (each person known to us to beneficially own more than 5% of any class of the outstanding voting ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 94.00 668.25 Td (securities of Oaktree Capital Group, LLC; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.50 651.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 94.00 651.75 Td (each of our directors; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.50 635.25 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 94.00 635.25 Td (each of our named executive of) Tj ET Q q 0 0 0 rg BT 233.35 635.25 Td (ficers; and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.50 618.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 94.00 618.75 Td (all directors and executive of) Tj ET Q q 0 0 0 rg BT 220.55 618.75 Td (ficers as a group. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 597.75 Td (In the following table, the applicable percentage ownership with respect to the Class ) Tj ET Q q 0 0 0 rg BT 453.56 597.75 Td (A) Tj ET Q q 0 0 0 rg BT 459.68 597.75 Td ( units and the Class B ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 585.75 Td (units beneficially owned represents the applicable unitholder) Tj ET Q q 0 0 0 rg BT 317.21 585.75 Td (’) Tj ET Q q 0 0 0 rg BT 319.25 585.75 Td (s holdings of Class ) Tj ET Q q 0 0 0 rg BT 405.41 585.75 Td (A) Tj ET Q q 0 0 0 rg BT 411.52 585.75 Td ( units and Class B units, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 573.75 Td (respectively) Tj ET Q q 0 0 0 rg BT 102.06 573.75 Td (, as a percentage of 62,991,591 Class ) Tj ET Q q 0 0 0 rg BT 273.29 573.75 Td (A) Tj ET Q q 0 0 0 rg BT 279.40 573.75 Td ( units outstanding and 91,547,128 Class B units outstanding, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 561.75 Td (respectively) Tj ET Q q 0 0 0 rg BT 102.06 561.75 Td (, as of February 21, 2017. ) Tj ET Q q 0 0 0 rg BT 221.94 561.75 Td (The applicable percentage ownership with respect to the OCGH units ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 549.75 Td (beneficially owned represents the applicable unitholder) Tj ET Q q 0 0 0 rg BT 293.31 549.75 Td (’) Tj ET Q q 0 0 0 rg BT 295.35 549.75 Td (s holdings of OCGH units as a percentage of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 537.75 Td (154,538,719 Oaktree Operating Group units outstanding as of February 21, 2017. ) Tj ET Q q 0 0 0 rg BT 416.72 537.75 Td (The applicable unitholder) Tj ET Q q 0 0 0 rg BT 528.84 537.75 Td (’) Tj ET Q q 0 0 0 rg BT 530.88 537.75 Td (s ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 525.75 Td (aggregate holdings of Class ) Tj ET Q q 0 0 0 rg BT 176.20 525.75 Td (A) Tj ET Q q 0 0 0 rg BT 182.31 525.75 Td ( units and OCGH units represent such unitholder) Tj ET Q q 0 0 0 rg BT 398.35 525.75 Td (’) Tj ET Q q 0 0 0 rg BT 400.40 525.75 Td (s aggregate economic interest in the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 513.75 Td (Oaktree Operating Group. ) Tj ET Q q 0 0 0 rg BT 170.62 513.75 Td (Although holders of OCGH units are entitled, subject to vesting requirements and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 501.75 Td (transfer restrictions, to exchange their OCGH units for) Tj ET Q q 0 0 0 rg BT 287.88 501.75 Td (, at the option of our board of directors, our Class ) Tj ET Q q 0 0 0 rg BT 507.44 501.75 Td (A) Tj ET Q q 0 0 0 rg BT 513.56 501.75 Td ( units on a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 489.75 Td (one-for-one basis, an equivalent amount of cash based on then-prevailing market prices, other consideration of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 477.75 Td (equal value or any combination of the foregoing, such exchanges require board approval and thus holders of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 465.75 Td (OCGH units are not deemed to beneficially own the equivalent number of Class ) Tj ET Q q 0 0 0 rg BT 404.08 465.75 Td (A) Tj ET Q q 0 0 0 rg BT 410.20 465.75 Td ( units. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 444.75 Td (Beneficial ownership is determined in accordance with the rules of the SEC. Under these rules, more than ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 432.75 Td (one person may be deemed a beneficial owner of the same securities, and a person may be deemed a beneficial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 420.75 Td (owner of securities as to which he has no economic interest. ) Tj ET Q q 0 0 0 rg BT 322.18 420.75 Td (T) Tj ET Q q 0 0 0 rg BT 327.18 420.75 Td (o our knowledge, except as otherwise set forth in the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 408.75 Td (notes to the following table, each person named in the table has sole voting and investment power with respect to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 396.75 Td (all of the interests shown as beneficially owned by such person, subject to applicable community property laws. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 384.75 Td (Unless otherwise specified, the address of each person named in the table is c/o Oaktree Capital Group, LLC, 333 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 372.75 Td (South Grand ) Tj ET Q q 0 0 0 rg BT 108.93 372.75 Td (A) Tj ET Q q 0 0 0 rg BT 115.42 372.75 Td (venue, 28th Floor) Tj ET Q q 0 0 0 rg BT 192.70 372.75 Td (, Los ) Tj ET Q q 0 0 0 rg BT 216.60 372.75 Td (Angeles, CA) Tj ET Q q 0 0 0 rg BT 271.64 372.75 Td ( 90071. ) Tj ET Q endstream endobj 435 0 obj <> endobj 436 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (217) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 206.5 729.5 m 261.5 729.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261.5 729.5 m 275.5 729.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275.5 729.5 m 315.5 729.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 729.5 m 384.5 729.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 729.5 m 398.5 729.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 729.5 m 438.5 729.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 729.5 m 507.5 729.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507.5 729.5 m 521.5 729.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 521.5 729.5 m 561.5 729.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 717.5 m 192.5 717.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 206.5 717.5 m 261.5 717.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275.5 717.5 m 315.5 717.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 717.5 m 384.5 717.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 717.5 m 438.5 717.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 717.5 m 507.5 717.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 521.5 717.5 m 561.5 717.5 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 120.50 733.50 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 238.15 740.50 Td (Class ) Tj ET Q q 0 0 0 rg BT 258.51 740.50 Td (A) Tj ET Q q 0 0 0 rg BT 263.31 740.50 Td ( Units) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 228.40 733.50 Td (Beneficially Owned) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 360.90 740.50 Td (Class B Units) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 351.40 733.50 Td (Beneficially Owned) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 486.25 740.50 Td (OCGH Units) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 470.65 733.50 Td (Beneficially Owned ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 536.78 736.84 Td (\(1\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 52.00 721.50 Td (Named Executive Officers and Directors) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 220.25 721.50 Td (Number) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 282.15 721.50 Td (Percent) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 343.25 721.50 Td (Number) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 405.15 721.50 Td (Percent) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 466.25 721.50 Td (Number) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 528.15 721.50 Td (Percent) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 706.90 Td (Howard S. Marks) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 123.95 706.45 Td (..........................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 225.45 706.90 Td (101,826) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 293.20 706.90 Td (*) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 372.00 706.90 Td (—) Tj ET Q BT /F3 5.85 Tf ET q 0 0 0 rg BT 387.00 711.82 Td (\(2\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.95 706.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 458.95 706.90 Td (17,058,600) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.40 706.90 Td (11.0) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 552.95 706.90 Td (%) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 691.90 Td (Bruce A. Karsh) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 113.95 691.45 Td (..............................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 225.45 691.90 Td (101,826) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 293.20 691.90 Td (*) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 372.00 691.90 Td (—) Tj ET Q BT /F3 5.85 Tf ET q 0 0 0 rg BT 387.00 696.82 Td (\(2\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.95 691.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 458.95 691.90 Td (17,765,767) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.40 691.90 Td (11.5) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 676.90 Td (Jay S. Wintrob) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 113.95 676.45 Td (..............................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 230.45 676.90 Td (25,913) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 293.20 676.90 Td (*) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 372.00 676.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.95 676.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 495.00 676.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 543.95 676.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 661.90 Td (John B. Frank) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 111.45 661.45 Td (...............................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 230.45 661.90 Td (75,185) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 293.20 661.90 Td (*) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 372.00 661.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.95 661.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.95 661.90 Td (2,100,397) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.40 661.90 Td (1.4) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 646.90 Td (David M. Kirchheimer) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 141.45 646.45 Td (...................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 230.45 646.90 Td (58,470) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 293.20 646.90 Td (*) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 372.00 646.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.95 646.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.95 646.90 Td (1,407,097) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 539.20 646.90 Td (*) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 631.90 Td (Sheldon M. Stone) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 126.45 631.45 Td (.........................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 225.45 631.90 Td (101,009) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 293.20 631.90 Td (*) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 372.00 631.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.95 631.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.95 631.90 Td (9,900,223) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.40 631.90 Td (6.4) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 616.90 Td (Todd E. Molz) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 106.45 616.45 Td (.................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 230.45 616.90 Td (76,096) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 293.20 616.90 Td (*) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 372.00 616.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.95 616.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 471.45 616.90 Td (202,304) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 539.20 616.90 Td (*) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 601.90 Td (Stephen A. Kaplan) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 128.95 601.45 Td (........................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 225.45 601.90 Td (100,181) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 293.20 601.90 Td (*) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 372.00 601.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.95 601.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.95 601.90 Td (1,672,328) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.40 601.90 Td (1.1) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 586.90 Td (Robert E. Denham) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 128.95 586.45 Td (........................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 230.45 586.90 Td (22,410) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 293.20 586.90 Td (*) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 372.00 586.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.95 586.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 495.00 586.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 543.95 586.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 571.90 Td (Steven J. Gilbert) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 121.45 571.45 Td (...........................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 242.95 571.90 Td (406) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 293.20 571.90 Td (*) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 372.00 571.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.95 571.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 495.00 571.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 543.95 571.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 556.90 Td (Larry W. Keele) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 113.95 556.45 Td (..............................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 230.45 556.90 Td (66,989) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 293.20 556.90 Td (*) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 372.00 556.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.95 556.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.95 556.90 Td (2,901,695) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.40 556.90 Td (1.9) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 541.90 Td (D. Richard Masson) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 131.45 541.45 Td (.......................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 225.45 541.90 Td (108,650) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 293.20 541.90 Td (*) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 372.00 541.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.95 541.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 463.95 541.90 Td (2,849,490) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 540.40 541.90 Td (1.8) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 526.90 Td (W) Tj ET Q q 0 0 0 rg BT 60.16 526.90 Td (ayne G. Pierson ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 127.19 531.19 Td (\(3\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 136.45 526.45 Td (.....................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 235.45 526.90 Td (4,219) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 293.20 526.90 Td (*) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 372.00 526.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.95 526.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 495.00 526.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 543.95 526.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 511.90 Td (Marna C. Whittington) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 138.95 511.45 Td (....................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 230.45 511.90 Td (14,560) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 293.20 511.90 Td (*) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 372.00 511.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.95 511.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 495.00 511.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 543.95 511.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 485.90 Td (All executive officers and directors) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 61.00 476.90 Td (as a group \(15 persons\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 158.95 476.45 Td (............) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 225.45 476.90 Td (873,599) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 293.20 476.90 Td (*) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 372.00 476.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.95 476.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 458.95 476.90 Td (55,857,901) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.40 476.90 Td (36.1) Tj ET Q BT /F2 7.00 Tf ET 0 0 0 RG /GS0 gs 0.73 w 0 i [] 0 d 1 J 1 j 3 M 52 453.394677734375 m 102.95166015625 453.394677734375 l s q 0 0 0 rg BT 52.00 454.50 Td (5% Unitholders) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 209.00 454.90 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 278.00 454.90 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 455.00 454.90 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 558.00 454.90 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 429.90 Td (FMR LLC ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 93.01 434.19 Td (\(4\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 103.95 429.45 Td (..................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 217.95 429.90 Td (4,639,224) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 294.40 429.90 Td (7.4) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 306.95 429.90 Td (%) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 372.00 429.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 420.95 429.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 495.00 429.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 543.95 429.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 413.90 Td (Oaktree Capital Group Holdings,) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 61.00 404.90 Td (L.P. ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 78.95 404.45 Td (............................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 230.45 404.90 Td (13,000) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 293.20 404.90 Td (*) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 335.95 404.90 Td (91,547,128) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 414.90 404.90 Td (100) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 429.95 404.90 Td (%) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 495.00 404.90 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 543.95 404.90 Td (—) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 386.5 m 150.5 386.5 l s BT /F1 10.00 Tf ET BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 373.20 Td (* ) Tj ET Q q 0 0 0 rg BT 72.50 373.20 Td (Represents less than 1%. ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 362.40 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 72.50 362.40 Td (Subject to certain restrictions, each OCGH unitholder has the right, subject to the approval of our board of directors, to ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 351.60 Td (exchange his or her units following the expiration of any applicable lock-up period pursuant to the terms of an exchange ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 340.80 Td (agreement. Pursuant to the exchange agreement and the terms of the OCGH partnership agreement, the OCGH units will ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 330.00 Td (be exchanged for) Tj ET Q q 0 0 0 rg BT 141.56 330.00 Td (, at the option of our board of directors, our Class ) Tj ET Q q 0 0 0 rg BT 339.16 330.00 Td (A) Tj ET Q q 0 0 0 rg BT 344.67 330.00 Td ( units on a one-for-one basis, an equivalent amount of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 319.20 Td (cash based on then-prevailing market prices, other consideration of equal value or any combination of the foregoing, and ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 308.40 Td (we will cancel a corresponding number of Class B units.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 297.60 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 72.50 297.60 Td (Excludes 13,000 Class ) Tj ET Q q 0 0 0 rg BT 166.06 297.60 Td (A) Tj ET Q q 0 0 0 rg BT 171.56 297.60 Td ( units and 91,547,128 Class B units held by OCGH. ) Tj ET Q q 0 0 0 rg BT 381.51 297.60 Td (The general partner of OCGH is Oaktree ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 286.80 Td (Capital Group Holdings GP) Tj ET Q q 0 0 0 rg BT 179.89 286.80 Td (, LLC. In their capacities as members of the executive committee of Oaktree Capital Group ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 276.00 Td (Holdings GP) Tj ET Q q 0 0 0 rg BT 121.86 276.00 Td (, LLC holding more than 50% of the aggregate number of OCGH units held by all of the members of the ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 265.20 Td (executive committee as a group, Mr) Tj ET Q q 0 0 0 rg BT 214.56 265.20 Td (. Marks and Mr) Tj ET Q q 0 0 0 rg BT 274.08 265.20 Td (. Karsh may be deemed to be beneficial owners of the securities held by ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 254.40 Td (OCGH. Each of Mr) Tj ET Q q 0 0 0 rg BT 150.02 254.40 Td (. Marks and Mr) Tj ET Q q 0 0 0 rg BT 209.53 254.40 Td (. Karsh disclaims beneficial ownership of such securities.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 243.60 Td (\(3\) ) Tj ET Q q 0 0 0 rg BT 72.50 243.60 Td (Excludes 7,703,250 OCGH units held by ) Tj ET Q q 0 0 0 rg BT 236.10 243.60 Td (Acorn Investors, LLC, which Mr) Tj ET Q q 0 0 0 rg BT 360.64 243.60 Td (. Pierson may be deemed to beneficially own. ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 232.80 Td (Mr) Tj ET Q q 0 0 0 rg BT 82.50 232.80 Td (. Pierson is the President of ) Tj ET Q q 0 0 0 rg BT 194.56 232.80 Td (Acorn Investors, LLC and disclaims beneficial ownership of the Class ) Tj ET Q q 0 0 0 rg BT 471.69 232.80 Td (A) Tj ET Q q 0 0 0 rg BT 477.20 232.80 Td ( and OCGH units ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 222.00 Td (held by that entity) Tj ET Q q 0 0 0 rg BT 142.38 222.00 Td (.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 211.20 Td (\(4\) ) Tj ET Q q 0 0 0 rg BT 72.50 211.20 Td (Reflects Class ) Tj ET Q q 0 0 0 rg BT 132.02 211.20 Td (A) Tj ET Q q 0 0 0 rg BT 137.53 211.20 Td ( units beneficially owned as of December 31, 2016 by FMR LLC based on a Schedule 13G filed by FMR ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 200.40 Td (LLC on January 10, 2017. ) Tj ET Q q 0 0 0 rg BT 180.91 200.40 Td (The Schedule 13G includes 4,639,224 Class ) Tj ET Q q 0 0 0 rg BT 361.03 200.40 Td (A) Tj ET Q q 0 0 0 rg BT 366.54 200.40 Td ( units beneficially owned by ) Tj ET Q q 0 0 0 rg BT 478.11 200.40 Td (Abigail Johnson and ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 189.60 Td (Fidelity Management & Research Company \(together with FMR LLC and ) Tj ET Q q 0 0 0 rg BT 364.13 189.60 Td (Abigail Johnson, “Fidelity”\), a wholly owned ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 178.85 Td (subsidiary of FMR LLC, in its capacity as investment adviser to various registered investment companies \(the “Fidelity ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 168.05 Td (funds”\). ) Tj ET Q q 0 0 0 rg BT 107.85 168.05 Td (The Schedule 13G states that members of the Johnson family) Tj ET Q q 0 0 0 rg BT 353.81 168.05 Td (, including ) Tj ET Q q 0 0 0 rg BT 396.34 168.05 Td (Abigail, through their ownership of FMR ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 157.25 Td (LLC voting common stock and the execution of a shareholders’) Tj ET Q q 0 0 0 rg BT 323.31 157.25 Td ( voting agreement, may be deemed a controlling group with ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 146.45 Td (respect to FMR LLC. ) Tj ET Q q 0 0 0 rg BT 160.36 146.45 Td (The Schedule 13G also states that neither FMR LLC nor Ms. Johnson has the sole power to vote or ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 135.65 Td (direct the voting of the shares owned directly by the Fidelity funds, which power resides with the Fidelity funds’) Tj ET Q q 0 0 0 rg BT 510.38 135.65 Td ( boards of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 124.85 Td (trustees pursuant to established guidelines. ) Tj ET Q q 0 0 0 rg BT 250.45 124.85 Td (The address of Fidelity is 245 Summer Street, Boston, Massachusetts 02210.) Tj ET Q endstream endobj 437 0 obj <> endobj 438 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (218) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Equity Compensation Plan Information ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.50 720.75 Td (The following table sets forth information concerning the awards that may be issued under the 201) Tj ET Q q 0 0 0 rg BT 514.90 720.75 Td (1 Plan as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 708.75 Td (of December 31, 2016. ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351.5 607.25 m 416.5 607.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424.5 607.25 m 489.5 607.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 607.25 m 562.5 607.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351.5 562.25 m 416.5 562.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351.5 548.25 m 416.5 548.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351.5 546.25 m 416.5 546.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424.5 562.25 m 489.5 562.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424.5 548.25 m 489.5 548.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424.5 546.25 m 489.5 546.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 562.25 m 562.5 562.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 548.25 m 562.5 548.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 546.25 m 562.5 546.25 l s BT /F2 7.00 Tf ET 0 0 0 RG /GS0 gs 0.73 w 0 i [] 0 d 1 J 1 j 3 M 53 610.144677734375 m 100.06884765625 610.144677734375 l s q 0 0 0 rg BT 53.00 611.25 Td (Plan Category) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 366.00 660.25 Td (Number of ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 357.40 653.25 Td (Securities to be ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 362.45 646.25 Td (Issued Upon ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 364.80 639.25 Td (Exercise of ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 362.85 632.25 Td (Outstanding ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 369.30 625.25 Td (Options, ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 361.25 618.25 Td (W) Tj ET Q q 0 0 0 rg BT 367.60 618.25 Td (arrants and ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 368.85 611.25 Td (Rights ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 392.57 614.59 Td (\(1\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 439.60 653.25 Td (Weighted-) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 427.40 646.25 Td (Average Exercise) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 443.65 639.25 Td (Price of) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 435.85 632.25 Td (Outstanding) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 442.30 625.25 Td (Options,) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 434.25 618.25 Td (Warrants and) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 445.60 611.25 Td (Rights) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 512.00 681.25 Td (Number of ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 512.75 674.25 Td (Securities ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 511.60 667.25 Td (Remaining ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 508.60 660.25 Td (A) Tj ET Q q 0 0 0 rg BT 513.40 660.25 Td (vailable for ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 502.65 653.25 Td (Future Issuance ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 507.70 646.25 Td (Under Equity ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 505.15 639.25 Td (Compensation ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 501.65 632.25 Td (Plans \(excluding ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 513.15 625.25 Td (securities ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 510.80 618.25 Td (reflected in ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 506.85 611.25 Td (column \(a\)\) ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 546.52 614.59 Td (\(2\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 379.20 599.65 Td (\(a\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 452.00 599.65 Td (\(b\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 525.20 599.65 Td (\(c\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 581.65 Td (Equity compensation plans approved by security holders) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 280.45 581.20 Td (...........................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 372.95 581.65 Td (9,363,365) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 477.00 581.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 513.95 581.65 Td (13,722,795) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 566.65 Td (Equity compensation plans not approved by security holders) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 295.45 566.20 Td (.....................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 404.00 566.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 477.00 566.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 550.00 566.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 53.00 551.65 Td (T) Tj ET Q q 0 0 0 rg BT 57.50 551.65 Td (otal ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 74.51 555.94 Td (\(3\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 87.90 551.20 Td (........................................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 372.95 551.65 Td (9,363,365) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 477.00 551.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 513.95 551.65 Td (13,722,795) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 533.25 m 150.5 533.25 l s BT /F1 10.00 Tf ET BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 519.95 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 72.50 519.95 Td (Reflects the aggregate number of OCGH units, Class ) Tj ET Q q 0 0 0 rg BT 286.60 519.95 Td (A) Tj ET Q q 0 0 0 rg BT 292.11 519.95 Td ( units, phantom units and EVUs granted under the 201) Tj ET Q q 0 0 0 rg BT 508.58 519.95 Td (1 Plan as of ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 509.15 Td (December 31, 2016.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 498.35 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 72.50 498.35 Td (The 201) Tj ET Q q 0 0 0 rg BT 104.86 498.35 Td (1 Plan provides that the maximum number of Units that may be delivered pursuant to awards under the 201) Tj ET Q q 0 0 0 rg BT 531.92 498.35 Td (1 Plan ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 487.55 Td (is 22,300,000, as increased on January 1 of each year beginning in 2012 by a number of Units equal to the excess of \(a\) ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 476.75 Td (15% of the number of outstanding Oaktree Operating Group units on December 31 of the immediately preceding year over ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 465.95 Td (\(b\) the number of Oaktree Operating Group units that have been issued or are issuable under the 201) Tj ET Q q 0 0 0 rg BT 476.58 465.95 Td (1 Plan as of such ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 455.15 Td (date, except that our board of directors may) Tj ET Q q 0 0 0 rg BT 245.93 455.15 Td (, in its discretion, increase the number of Units covered by the 201) Tj ET Q q 0 0 0 rg BT 508.89 455.15 Td (1 Plan by a ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 444.35 Td (lesser amount. ) Tj ET Q q 0 0 0 rg BT 136.37 444.35 Td (The issuance of Units or the payment of cash upon the exercise of an award or in consideration of the ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 433.55 Td (cancellation or termination of an award will reduce the total number of Units available under the 201) Tj ET Q q 0 0 0 rg BT 468.06 433.55 Td (1 Plan, as applicable. ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 422.75 Td (Units underlying awards under the 201) Tj ET Q q 0 0 0 rg BT 225.93 422.75 Td (1 Plan that are forfeited, cancelled, expire unexercised or are settled in cash will be ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 411.95 Td (available again to be used as awards under the 201) Tj ET Q q 0 0 0 rg BT 277.98 411.95 Td (1 Plan. However) Tj ET Q q 0 0 0 rg BT 346.02 411.95 Td (, Units used to pay the required exercise price or tax ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 401.15 Td (obligations, or Units not issued in connection with the settlement of an award or that are used or withheld to satisfy tax ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 390.35 Td (obligations of a participant, will not be available again for other awards under the 201) Tj ET Q q 0 0 0 rg BT 409.55 390.35 Td (1 Plan.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 379.55 Td (\(3\) ) Tj ET Q q 0 0 0 rg BT 72.50 379.55 Td (As of December 31, 2016, 4,954,976 OCGH units have been granted under the 2007 Plan. However) Tj ET Q q 0 0 0 rg BT 474.26 379.55 Td (, such amounts are ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 368.75 Td (not reflected in this table because our board of directors has resolved that the administrator of the 2007 Plan will no longer ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 357.95 Td (grant awards under the 2007 Plan. Please see note 1) Tj ET Q q 0 0 0 rg BT 286.98 357.95 Td (1 to our consolidated financial statements included elsewhere in this ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 347.15 Td (annual report for additional information.) Tj ET Q endstream endobj 439 0 obj <> endobj 440 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (219) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Item 13. Certain Relationships and Related T) Tj ET Q q 0 0 0 rg BT 260.61 741.75 Td (ransactions, and Director Independence) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 723.75 Td (Exchange ) Tj ET Q q 0 0 0 rg BT 99.65 723.75 Td (Agreement) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 705.75 Td (Under the terms of the OCGH limited partnership agreement, its general partner may elect in its discretion to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 693.75 Td (declare an open period during which an OCGH unitholder may exchange its OCGH units for) Tj ET Q q 0 0 0 rg BT 455.77 693.75 Td (, at the option of our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 681.75 Td (board of directors, Class ) Tj ET Q q 0 0 0 rg BT 160.61 681.75 Td (A) Tj ET Q q 0 0 0 rg BT 166.72 681.75 Td ( units, an equivalent amount of cash based on then-prevailing market prices, other ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 669.75 Td (consideration of equal value or any combination of the foregoing. ) Tj ET Q q 0 0 0 rg BT 342.23 669.75 Td (The general partner determines the number of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 657.75 Td (units eligible for exchange within a given open period and, if the OCGH unitholders request to exchange a number ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 645.75 Td (of units in excess of the amount eligible for exchange, which units to exchange taking into account such factors as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 633.75 Td (the general partner determines appropriate. In addition, the general partner may at its sole discretion cause a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 621.75 Td (mandatory sale or exchange of OCGH units owned by any OCGH unitholder) Tj ET Q q 0 0 0 rg BT 387.40 621.75 Td (. Upon approval of our board of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 609.75 Td (directors, OCGH units that are selected for exchange in accordance with the foregoing will be exchanged, at the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 597.75 Td (option of our board of directors, into Class ) Tj ET Q q 0 0 0 rg BT 237.88 597.75 Td (A) Tj ET Q q 0 0 0 rg BT 244.00 597.75 Td ( units, an equivalent amount of cash based on then-prevailing market ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 585.75 Td (prices, other consideration of equal value or any combination of the foregoing pursuant to the terms of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 573.75 Td (exchange agreement. ) Tj ET Q q 0 0 0 rg BT 152.11 573.75 Td (The exchange agreement generally provides that:) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.00 555.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 94.00 555.75 Td (such OCGH units will be acquired by the Intermediate Holding Companies in exchange for) Tj ET Q q 0 0 0 rg BT 492.54 555.75 Td (, at the option ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 94.00 543.75 Td (of our board of directors, Class ) Tj ET Q q 0 0 0 rg BT 232.96 543.75 Td (A) Tj ET Q q 0 0 0 rg BT 239.07 543.75 Td ( units, an equivalent amount of cash based on then-prevailing market ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 94.00 531.75 Td (prices, other consideration of equal value or any combination of the foregoing;) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.00 513.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 94.00 513.75 Td (the OCGH units acquired by the Intermediate Holding Companies may then be redeemed by OCGH in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 94.00 501.75 Td (exchange for Oaktree Operating Group units;) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.00 483.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 94.00 483.75 Td (the Intermediate Holding Companies may exchange Oaktree Operating Group units with each other such ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 94.00 471.75 Td (that, immediately after such exchange, each Intermediate Holding Company holds Oaktree Operating ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 94.00 459.75 Td (Group units only in the Oaktree Operating Group entity for which such Intermediate Holding Company ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 94.00 447.75 Td (serves as the general partner; and) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.00 429.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 94.00 429.75 Td (we will cancel a corresponding number of Class B units.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 408.75 Td (T) Tj ET Q q 0 0 0 rg BT 55.37 408.75 Td (ax Receivable ) Tj ET Q q 0 0 0 rg BT 123.93 408.75 Td (Agreement) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 390.75 Td (As described above, subject to certain restrictions, including the approval of our board of directors, each ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 378.75 Td (OCGH unitholder has the right to \(or may be required to\) exchange his or her OCGH units for) Tj ET Q q 0 0 0 rg BT 461.30 378.75 Td (, at the option of our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 366.75 Td (board of directors, Class ) Tj ET Q q 0 0 0 rg BT 160.61 366.75 Td (A) Tj ET Q q 0 0 0 rg BT 166.72 366.75 Td ( units, an equivalent amount of cash based on then-prevailing market prices, other ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 354.75 Td (consideration of equal value or any combination of the foregoing. Our Intermediate Holding Companies will deliver) Tj ET Q q 0 0 0 rg BT 555.84 354.75 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 342.75 Td (at the option of our board of directors, Class ) Tj ET Q q 0 0 0 rg BT 246.78 342.75 Td (A) Tj ET Q q 0 0 0 rg BT 252.90 342.75 Td ( units on a one-for-one basis, an equivalent amount of cash based on ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 330.75 Td (then-prevailing market prices, other consideration of equal value or any combination of the foregoing in exchange ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 318.75 Td (for the applicable OCGH unitholder) Tj ET Q q 0 0 0 rg BT 206.01 318.75 Td (’) Tj ET Q q 0 0 0 rg BT 208.05 318.75 Td (s OCGH units pursuant to the exchange agreement. ) Tj ET Q q 0 0 0 rg BT 444.11 318.75 Td (These exchanges, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 306.75 Td (including our purchase of Oaktree Operating Group units in connection with the 2007 Private Of) Tj ET Q q 0 0 0 rg BT 472.29 306.75 Td (fering and in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 294.75 Td (connection with our initial public of) Tj ET Q q 0 0 0 rg BT 201.57 294.75 Td (fering in ) Tj ET Q q 0 0 0 rg BT 239.38 294.75 Td (April 2012 and follow-on of) Tj ET Q q 0 0 0 rg BT 357.60 294.75 Td (ferings in May 2013, March 2014 and March ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 282.75 Td (2015, resulted in, and are expected to result in, increases in the tax basis of the tangible and intangible assets of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 270.75 Td (the Oaktree Operating Group. ) Tj ET Q q 0 0 0 rg BT 187.67 270.75 Td (These increases in tax basis have increased and will increase \(for tax purposes\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 258.75 Td (depreciation and amortization deductions and reduce gain on sales of assets, and therefore reduce the taxes of two ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 246.75 Td (of our Intermediate Holding Companies, Oaktree Holdings, Inc. and Oaktree ) Tj ET Q q 0 0 0 rg BT 388.52 246.75 Td (AIF Holdings, Inc.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 228.75 Td (Oaktree Holdings, Inc. and Oaktree ) Tj ET Q q 0 0 0 rg BT 238.97 228.75 Td (AIF Holdings, Inc. entered into a tax receivable agreement with the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 216.75 Td (OCGH unitholders that provides for the payment by Oaktree Holdings, Inc. and Oaktree ) Tj ET Q q 0 0 0 rg BT 439.09 216.75 Td (AIF Holdings, Inc. to the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 204.75 Td (OCGH unitholders of 85% of the amount of cash savings, if any) Tj ET Q q 0 0 0 rg BT 329.96 204.75 Td (, in U.S. federal, state and local income tax that ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 192.75 Td (Oaktree Holdings, Inc. or Oaktree ) Tj ET Q q 0 0 0 rg BT 201.18 192.75 Td (AIF Holdings, Inc. actually realizes \(or is deemed to realize in the case of an early ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 180.75 Td (termination payment by Oaktree Holdings, Inc. or Oaktree ) Tj ET Q q 0 0 0 rg BT 307.90 180.75 Td (AIF Holdings, Inc. or a change of control, as discussed ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 168.75 Td (below\) as a result of these increases in tax basis and of certain other tax benefits related to our entering into the tax ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 156.75 Td (receivable agreement, including tax benefits attributable to payments under the tax receivable agreement. ) Tj ET Q q 0 0 0 rg BT 522.88 156.75 Td (These ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 144.75 Td (payment obligations are obligations of Oaktree Holdings, Inc. and Oaktree ) Tj ET Q q 0 0 0 rg BT 379.64 144.75 Td (AIF Holdings, Inc. and not of the Oaktree ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 132.75 Td (Operating Group.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 114.75 Td (Oaktree Holdings, Inc. and Oaktree ) Tj ET Q q 0 0 0 rg BT 238.97 114.75 Td (AIF Holdings, Inc. expect to benefit from the remaining 15% of cash ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 102.75 Td (savings, if any) Tj ET Q q 0 0 0 rg BT 112.62 102.75 Td (, in income tax that they realize. For purposes of the tax receivable agreement, cash savings in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 90.75 Td (income tax will be computed by comparing the actual income tax liability of Oaktree Holdings, Inc. or Oaktree ) Tj ET Q q 0 0 0 rg BT 533.56 90.75 Td (AIF ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 78.75 Td (Holdings, Inc. to the amount of such taxes that Oaktree Holdings, Inc. or Oaktree ) Tj ET Q q 0 0 0 rg BT 409.63 78.75 Td (AIF Holdings, Inc. would have ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 66.75 Td (been required to pay had there been no increase to the tax basis of the tangible and intangible assets of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 54.75 Td (Oaktree Operating Group as a result of the exchanges and had Oaktree Holdings, Inc. and Oaktree ) Tj ET Q q 0 0 0 rg BT 491.37 54.75 Td (AIF ) Tj ET Q endstream endobj 441 0 obj <> endobj 442 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (220) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Holdings, Inc. not entered into the tax receivable agreement. ) Tj ET Q q 0 0 0 rg BT 322.39 741.75 Td (An OCGH unitholder may also elect to make a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (charitable contribution of units. In such a case, an exchange under the exchange agreement to facilitate a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (charitable contribution will not result in an increase in the tax basis of the assets of the Oaktree Operating Group; ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 705.75 Td (therefore, no payments will be made under the tax receivable agreement.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 687.75 Td (The term of the tax receivable agreement commenced upon the consummation of the 2007 Private Of) Tj ET Q q 0 0 0 rg BT 529.51 687.75 Td (fering ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 675.75 Td (and continues until all such tax benefits have been utilized or expired, unless Oaktree Holdings, Inc. or Oaktree ) Tj ET Q q 0 0 0 rg BT 543.06 675.75 Td (AIF ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 663.75 Td (Holdings, Inc. exercises its right to terminate the tax receivable agreement for an amount based on the agreed ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 651.75 Td (payments remaining to be made under the agreement. Estimating the amount of payments that may be made ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 639.75 Td (under the tax receivable agreement is by its nature imprecise, as the calculation of amounts payable depends on a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 627.75 Td (variety of factors. ) Tj ET Q q 0 0 0 rg BT 131.51 627.75 Td (The actual increase in tax basis, as well as the amount and timing of any payments under the tax ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 615.75 Td (receivable agreement, will vary depending upon a number of factors, including:) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 597.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 597.75 Td (the timing of the exchanges – for instance, the increase in any tax deductions will vary depending on the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 585.75 Td (fair market value, which may fluctuate over time, of the depreciable or amortizable assets of the Oaktree ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 573.75 Td (Operating Group at the time of the transaction;) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 555.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 555.75 Td (the price of our Class ) Tj ET Q q 0 0 0 rg BT 188.71 555.75 Td (A) Tj ET Q q 0 0 0 rg BT 194.83 555.75 Td ( units at the time of the exchanges – the increase in any tax deductions, as well as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 543.75 Td (the tax basis increase in other assets, of the Oaktree Operating Group, is directly proportional to the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 531.75 Td (market value of our Class ) Tj ET Q q 0 0 0 rg BT 207.61 531.75 Td (A) Tj ET Q q 0 0 0 rg BT 213.72 531.75 Td ( units at the time of the exchange;) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 513.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 513.75 Td (the extent to which an exchange of OCGH units is taxable – if an exchange is not taxable for any reason ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 501.75 Td (\(for instance, in connection with a charitable contribution\), increased deductions will not be available;) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 483.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 483.75 Td (the amount and timing of our income – Oaktree Holdings, Inc. and Oaktree ) Tj ET Q q 0 0 0 rg BT 424.41 483.75 Td (AIF Holdings, Inc. will be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 471.75 Td (required to pay 85% of the tax savings as and when realized, if any; and) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 79.00 453.75 Td (• ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 453.75 Td (the corporate income tax rates \(both U.S. federal and state and local\) in ef) Tj ET Q q 0 0 0 rg BT 419.78 453.75 Td (fect at the time the tax ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 441.75 Td (deductions are utilized to of) Tj ET Q q 0 0 0 rg BT 213.56 441.75 Td (fset taxable income - since an increase in tax rates will generally result in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 92.00 429.75 Td (higher payments, and a decrease in tax rates will generally result in lower payments.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 411.75 Td (If Oaktree Holdings, Inc. or Oaktree ) Tj ET Q q 0 0 0 rg BT 239.52 411.75 Td (AIF Holdings, Inc. does not have taxable income, they are not required ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 399.75 Td (to make payments under the tax receivable agreement for that taxable year because no tax savings will have been ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 387.75 Td (actually realized. W) Tj ET Q q 0 0 0 rg BT 139.30 387.75 Td (e expect that as a result of the size of the increases in the tax basis of the tangible and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 375.75 Td (intangible assets of the Oaktree Operating Group, the payments that we may make under the tax receivable ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 363.75 Td (agreement will be substantial. ) Tj ET Q q 0 0 0 rg BT 186.74 363.75 Td (Assuming no material changes in the relevant tax law and that we earn suf) Tj ET Q q 0 0 0 rg BT 516.19 363.75 Td (ficient ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 351.75 Td (taxable income to realize the full tax benefit of the increased amortization of our assets, we expect that remaining ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 339.75 Td (payments under the tax receivable agreement \(“TRA) Tj ET Q q 0 0 0 rg BT 282.34 339.75 Td ( payments”\) in connection with the 2007 Private Of) Tj ET Q q 0 0 0 rg BT 506.16 339.75 Td (fering, our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 327.75 Td (initial public of) Tj ET Q q 0 0 0 rg BT 112.63 327.75 Td (fering in 2012 and our follow-on of) Tj ET Q q 0 0 0 rg BT 263.66 327.75 Td (ferings in May 2013, March 2014 and March 2015 will aggregate to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 315.75 Td ($33.4 million over the period ending approximately in 2029, $71.3 million over the period ending approximately in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 303.75 Td (2034, $99.0 million over the period ending approximately in 2035, $74.5 million over the period ending ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 291.75 Td (approximately in 2036 and $62.7 million over the period ending approximately in 2037, respectively) Tj ET Q q 0 0 0 rg BT 486.74 291.75 Td (. W) Tj ET Q q 0 0 0 rg BT 504.34 291.75 Td (e have ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 279.75 Td (begun to make payments in respect of the 2007 Private Of) Tj ET Q q 0 0 0 rg BT 308.30 279.75 Td (fering, our initial public of) Tj ET Q q 0 0 0 rg BT 418.74 279.75 Td (fering, and our 2013 and 2014 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 267.75 Td (follow-on of) Tj ET Q q 0 0 0 rg BT 100.96 267.75 Td (ferings. During the year ended December 31, 2016, we made ) Tj ET Q q 0 0 0 rg BT 377.60 267.75 Td (TRA) Tj ET Q q 0 0 0 rg BT 397.05 267.75 Td ( payments in respect of the year ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 255.75 Td (ended December 31, 2015 of $4,146,126, $3,972,046, $2,017,258, $730,242, $310,842, $343,764, $207,898 and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 243.75 Td ($241,793 to Howard Marks, our Co-Chairman and a director; Bruce Karsh, our Co-Chairman, Chief Investment ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 231.75 Td (Of) Tj ET Q q 0 0 0 rg BT 60.38 231.75 Td (ficer and a director; Sheldon Stone, a principal and a director; D. Richard Masson, a director; John Frank, our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 219.75 Td (V) Tj ET Q q 0 0 0 rg BT 56.49 219.75 Td (ice Chairman and a director; Stephen Kaplan, a former principal and a former director; David Kirchheimer) Tj ET Q q 0 0 0 rg BT 521.16 219.75 Td (, our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 207.75 Td (Chief Financial Of) Tj ET Q q 0 0 0 rg BT 129.30 207.75 Td (ficer) Tj ET Q q 0 0 0 rg BT 147.64 207.75 Td (, a principal and a director; and Larry Keele, a director and a former principal, respectively) Tj ET Q q 0 0 0 rg BT 543.20 207.75 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 195.75 Td (W) Tj ET Q q 0 0 0 rg BT 59.26 195.75 Td (e have not yet begun to make ) Tj ET Q q 0 0 0 rg BT 193.61 195.75 Td (TRA) Tj ET Q q 0 0 0 rg BT 213.06 195.75 Td ( payments in respect of the March 2015 follow-on of) Tj ET Q q 0 0 0 rg BT 442.45 195.75 Td (fering. In addition, we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 183.75 Td (expect that future ) Tj ET Q q 0 0 0 rg BT 129.87 183.75 Td (TRA) Tj ET Q q 0 0 0 rg BT 149.32 183.75 Td ( payments in connection with the 2007 Private Of) Tj ET Q q 0 0 0 rg BT 366.48 183.75 Td (fering, our initial public of) Tj ET Q q 0 0 0 rg BT 476.91 183.75 Td (fering and the May ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 171.75 Td (2013, March 2014 and March 2015 follow-on of) Tj ET Q q 0 0 0 rg BT 259.39 171.75 Td (ferings to Messrs. Marks, Karsh, Stone, Masson, Frank, Kaplan, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 159.75 Td (Kirchheimer) Tj ET Q q 0 0 0 rg BT 102.80 159.75 Td (, Keele and ) Tj ET Q q 0 0 0 rg BT 155.99 159.75 Td (T) Tj ET Q q 0 0 0 rg BT 160.99 159.75 Td (odd Molz, our General Counsel and Chief ) Tj ET Q q 0 0 0 rg BT 347.21 159.75 Td (Administrative Of) Tj ET Q q 0 0 0 rg BT 423.16 159.75 Td (ficer) Tj ET Q q 0 0 0 rg BT 441.50 159.75 Td (, will be approximately ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 147.75 Td ($76.3 million, $72.4 million, $36.9 million, $12.5 million, $5.4 million, $6.3 million, $3.8 million, $4.4 million and $0.4 ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 135.75 Td (million, respectively) Tj ET Q q 0 0 0 rg BT 135.95 135.75 Td (. Future payments under the tax receivable agreement in respect of subsequent exchanges of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 123.75 Td (OCGH units would be in addition to these amounts and are expected to be substantial. ) Tj ET Q q 0 0 0 rg BT 438.39 123.75 Td (The payments under the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 111.75 Td (tax receivable agreement are not conditioned upon OCGH unitholders’) Tj ET Q q 0 0 0 rg BT 361.48 111.75 Td ( continued ownership of interests in OCGH.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 93.75 Td (In addition, the tax receivable agreement provides that, upon certain mergers, asset sales, other forms of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 81.75 Td (business combinations or other changes of control, the obligations of Oaktree Holdings, Inc. and Oaktree ) Tj ET Q q 0 0 0 rg BT 515.83 81.75 Td (AIF ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 69.75 Td (Holdings, Inc. \(or their successors\) with respect to purchased interests would be based on certain assumptions, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 57.75 Td (including that Oaktree Holdings, Inc. and Oaktree ) Tj ET Q q 0 0 0 rg BT 270.68 57.75 Td (AIF Holdings, Inc. would have suf) Tj ET Q q 0 0 0 rg BT 418.91 57.75 Td (ficient taxable income to fully ) Tj ET Q endstream endobj 443 0 obj <> endobj 444 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (221) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (utilize the deductions arising from the increased tax deductions and tax basis and other benefits related to entering ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (into the tax receivable agreement.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 711.75 Td (Decisions we make in the course of running our business, such as with respect to the realization of an ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 699.75 Td (investment by one of our funds, may influence the timing and amount of payments made under the tax receivable ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 687.75 Td (agreement. For example, if one of our funds disposes of assets, the disposition may accelerate payments under ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 675.75 Td (the tax receivable agreement and increase the present value of such payments.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 657.75 Td (Although we are not aware of any issue that would cause the IRS to challenge a tax basis increase, Oaktree ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 645.75 Td (Holdings, Inc. and Oaktree ) Tj ET Q q 0 0 0 rg BT 170.63 645.75 Td (AIF Holdings, Inc. will not be reimbursed for any payments previously made under the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 633.75 Td (tax receivable agreement. ) Tj ET Q q 0 0 0 rg BT 170.07 633.75 Td (As a result, in certain circumstances, payments could be made under the tax receivable ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 621.75 Td (agreement in excess of Oaktree Holdings, Inc.’) Tj ET Q q 0 0 0 rg BT 257.14 621.75 Td (s and Oaktree ) Tj ET Q q 0 0 0 rg BT 322.18 621.75 Td (AIF Holdings, Inc.’) Tj ET Q q 0 0 0 rg BT 403.14 621.75 Td (s cash tax savings. However) Tj ET Q q 0 0 0 rg BT 532.09 621.75 Td (, the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 609.75 Td (value of such excess payments may be recouped through reduced future payments of amounts otherwise payable ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 597.75 Td (by Oaktree Holdings, Inc. and Oaktree ) Tj ET Q q 0 0 0 rg BT 222.31 597.75 Td (AIF Holdings, Inc. pursuant to the tax receivable agreement.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 579.75 Td (Oaktree Operating Group Partnership ) Tj ET Q q 0 0 0 rg BT 230.78 579.75 Td (Agreements) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 561.75 Td (Each of the Oaktree Operating Group partnerships either has as its sole general partner one of the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 549.75 Td (Intermediate Holding Companies or is indirectly controlled by the Intermediate Holding Companies. ) Tj ET Q q 0 0 0 rg BT 491.89 549.75 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 542.84 549.75 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 537.75 Td (Oaktree Capital Group, LLC operates all of the business and af) Tj ET Q q 0 0 0 rg BT 328.87 537.75 Td (fairs of the Oaktree Operating Group and conducts ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 525.75 Td (our business through the Oaktree Operating Group and its subsidiaries.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 507.75 Td (Pursuant to the partnership agreements of the Oaktree Operating Group partnerships, the Intermediate ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 495.75 Td (Holding Companies that are the general partners of those partnerships \(or entities controlled by the Intermediate ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 483.75 Td (Holding Companies\) have the right to determine when distributions will be made to the holders of Oaktree ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 471.75 Td (Operating Group units and the amounts of any such distributions. If a distribution is authorized, the distribution will ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 459.75 Td (be made to the holders of Oaktree Operating Group units pro rata in accordance with the percentages of their ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 447.75 Td (respective interests.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 429.75 Td (Each of the Oaktree Operating Group partnerships has an identical number of units outstanding, and we use ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 417.75 Td (the term “Oaktree Operating Group unit” to refer) Tj ET Q q 0 0 0 rg BT 261.76 417.75 Td (, collectively) Tj ET Q q 0 0 0 rg BT 314.93 417.75 Td (, to a unit in each of the Oaktree Operating Group ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 405.75 Td (partnerships. ) Tj ET Q q 0 0 0 rg BT 112.81 405.75 Td (As of February 21, 2017, there were 154,538,719 Oaktree Operating Group units outstanding. ) Tj ET Q q 0 0 0 rg BT 533.45 405.75 Td (The ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 393.75 Td (holders of Oaktree Operating Group units, including the Intermediate Holding Companies, will incur U.S. federal, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 381.75 Td (state and local income taxes on their proportionate share of any net taxable income of the Oaktree Operating ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 369.75 Td (Group. Net profits and net losses of Oaktree Operating Group units generally are allocated to the holders of such ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 357.75 Td (units \(including the Intermediate Holding Companies\) pro rata in accordance with the percentages of their ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 345.75 Td (respective interests. ) Tj ET Q q 0 0 0 rg BT 144.30 345.75 Td (The partnership agreement of each Oaktree Operating Group partnership provides for cash ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 333.75 Td (distributions, which we refer to as “tax distributions,” to the partners of such partnership if we determine that the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 321.75 Td (allocation of the partnership’) Tj ET Q q 0 0 0 rg BT 174.90 321.75 Td (s income will give rise to taxable income for its partners. Generally) Tj ET Q q 0 0 0 rg BT 469.83 321.75 Td (, these tax ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 309.75 Td (distributions are computed based on our estimate of the net taxable income of the relevant entity allocable to a ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 297.75 Td (partner multiplied by an assumed tax rate equal to the highest ef) Tj ET Q q 0 0 0 rg BT 334.43 297.75 Td (fective marginal combined U.S. federal, state and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 285.75 Td (local income tax rate prescribed for an individual or corporate resident in Los ) Tj ET Q q 0 0 0 rg BT 390.74 285.75 Td (Angeles, California or New ) Tj ET Q q 0 0 0 rg BT 511.72 285.75 Td (Y) Tj ET Q q 0 0 0 rg BT 517.48 285.75 Td (ork, New ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 273.75 Td (Y) Tj ET Q q 0 0 0 rg BT 55.75 273.75 Td (ork \(taking into account the nondeductibility of certain expenses and the character of our income\). ) Tj ET Q q 0 0 0 rg BT 492.49 273.75 Td (T) Tj ET Q q 0 0 0 rg BT 497.49 273.75 Td (ax ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 261.75 Td (distributions are made only to the extent that all distributions from the Oaktree Operating Group for the relevant ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 249.75 Td (year were insuf) Tj ET Q q 0 0 0 rg BT 117.63 249.75 Td (ficient to cover such tax liabilities.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 231.75 Td (The partnership agreements of the Oaktree Operating Group partnerships also provide that substantially all ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 219.75 Td (of our expenses will be borne by the Oaktree Operating Group \(excluding, for example, obligations incurred under ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 207.75 Td (the tax receivable agreement by the Intermediate Holding Companies, income tax expenses of the Intermediate ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 195.75 Td (Holding Companies and payments on indebtedness incurred by the Intermediate Holding Companies\).) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 177.75 Td (Oaktree Capital Group Holdings, L.P) Tj ET Q q 0 0 0 rg BT 221.51 177.75 Td (. Units) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 159.75 Td (OCGH unitholders hold OCGH units. OCGH, in turn, holds an equivalent number of Oaktree Operating ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 147.75 Td (Group units. ) Tj ET Q q 0 0 0 rg BT 109.85 147.75 Td (The units in OCGH held by the OCGH unitholders as of February 21, 2017 have vesting provisions. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 135.75 Td (Upon expiration of the vesting period, OCGH unitholders may) Tj ET Q q 0 0 0 rg BT 321.06 135.75 Td (, subject to certain restrictions, sell their OCGH units ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 123.75 Td (or exchange their OCGH units into, at the option of our board of directors, Class ) Tj ET Q q 0 0 0 rg BT 405.19 123.75 Td (A) Tj ET Q q 0 0 0 rg BT 411.30 123.75 Td ( units, an equivalent amount of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 111.75 Td (cash based on then-prevailing market prices, other consideration of equal value or any combination of the foregoing ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 99.75 Td (and, subsequently) Tj ET Q q 0 0 0 rg BT 130.43 99.75 Td (, sell any such Class ) Tj ET Q q 0 0 0 rg BT 223.80 99.75 Td (A) Tj ET Q q 0 0 0 rg BT 229.92 99.75 Td ( units received. OCGH and our board of directors may limit the number of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 87.75 Td (OCGH units that may be exchanged after expiration of the relevant vesting period, based on such factors as they ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 75.75 Td (deem appropriate, including the market’) Tj ET Q q 0 0 0 rg BT 225.47 75.75 Td (s ability to absorb sales of the exchanged Class ) Tj ET Q q 0 0 0 rg BT 438.93 75.75 Td (A) Tj ET Q q 0 0 0 rg BT 445.05 75.75 Td ( units. In addition, the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 63.75 Td (general partner of OCGH may at its sole discretion cause a mandatory sale or exchange of OCGH units owned by ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 51.75 Td (any OCGH unitholder) Tj ET Q q 0 0 0 rg BT 145.05 51.75 Td (. ) Tj ET Q q 0 0 0 rg BT 152.83 51.75 Td (As of the date of this annual report, sales of Class ) Tj ET Q q 0 0 0 rg BT 375.74 51.75 Td (A) Tj ET Q q 0 0 0 rg BT 381.86 51.75 Td ( units by our employees may only be ) Tj ET Q endstream endobj 445 0 obj <> endobj 446 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (222) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (ef) Tj ET Q q 0 0 0 rg BT 58.16 741.75 Td (fected during “open periods” authorized by us. ) Tj ET Q q 0 0 0 rg BT 267.55 741.75 Td (The amount of OCGH units vesting will vary year to year) Tj ET Q q 0 0 0 rg BT 516.54 741.75 Td (, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (sometimes materially) Tj ET Q q 0 0 0 rg BT 143.17 729.75 Td (, but as of February 21, 2017, OCGH units due to vest after 2017 represented approximately ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 717.75 Td (1.1% of the total outstanding number of Oaktree Operating Group units.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 699.75 Td (OCGH unitholders that are employees will generally forfeit all unvested units in OCGH upon termination of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 687.75 Td (their employment for any reason unless the termination is due to death or disability or if the forfeiture requirement is ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 675.75 Td (waived. Except as otherwise set forth in any employment agreement or letter agreement, starting with OCGH unit ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 663.75 Td (grants issued in 2014 any unvested OCGH units held by employees subject to four-year vesting will generally vest ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 651.75 Td (in full upon termination of their employment by us without cause if such employee delivers to us a release for our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 639.75 Td (benefit. ) Tj ET Q q 0 0 0 rg BT 87.81 639.75 Td (Any of the OCGH units that were outstanding at the time of the 2007 Private Of) Tj ET Q q 0 0 0 rg BT 437.26 639.75 Td (fering that are forfeited will ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 627.75 Td (be reallocated among the remaining OCGH unitholders at the time of such of) Tj ET Q q 0 0 0 rg BT 389.45 627.75 Td (fering. ) Tj ET Q q 0 0 0 rg BT 422.25 627.75 Td (Any of the OCGH units issued ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 615.75 Td (after the date of the 2007 Private Of) Tj ET Q q 0 0 0 rg BT 208.81 615.75 Td (fering that are forfeited will result in a corresponding forfeiture of Oaktree ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 603.75 Td (Operating Group units held by OCGH.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 585.75 Td (Our Manager) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 567.75 Td (Our operating agreement provides that so long as the Oaktree control condition is satisfied, our manager will ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 555.75 Td (control the membership of our board of directors. Our board of directors will manage all of our operations and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 543.75 Td (activities and will have discretion over significant corporate actions, such as the issuance of securities, payment of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 531.75 Td (distributions, sales of assets, making certain amendments to our operating agreement and other matters.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 513.75 Td (Holders of our Class ) Tj ET Q q 0 0 0 rg BT 172.82 513.75 Td (A) Tj ET Q q 0 0 0 rg BT 178.94 513.75 Td ( units and Class B units have no right to elect our manager) Tj ET Q q 0 0 0 rg BT 437.97 513.75 Td (, which is controlled by our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 501.75 Td (senior executives.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 483.75 Td (Aircraft Use) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 465.75 Td (W) Tj ET Q q 0 0 0 rg BT 89.26 465.75 Td (e lease from Mr) Tj ET Q q 0 0 0 rg BT 158.17 465.75 Td (. Karsh an aircraft owned personally by him for business-related purposes on a non-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 453.75 Td (exclusive basis pursuant to a lease agreement. During the year ended December 31, 2016, we paid Mr) Tj ET Q q 0 0 0 rg BT 507.49 453.75 Td (. Karsh ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 441.75 Td ($688,783 in connection with our use of his aircraft under this lease agreement. In addition, during the year ended ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 429.75 Td (December 31, 2016, Mr) Tj ET Q q 0 0 0 rg BT 154.50 429.75 Td (. Marks paid us $425,998 in reimbursement for operating costs of our existing corporate ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 417.75 Td (aircraft that we had incurred on his behalf in connection with his personal use of our aircraft.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 399.75 Td (Investments in Funds) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 381.75 Td (Our directors and executive of) Tj ET Q q 0 0 0 rg BT 213.22 381.75 Td (ficers are permitted to invest their own capital \(or the capital of family trusts or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 369.75 Td (other estate planning vehicles they control\) in our funds. ) Tj ET Q q 0 0 0 rg BT 303.30 369.75 Td (These investment opportunities are available to all of our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 357.75 Td (professionals who we have determined have a status that reasonably permits us to of) Tj ET Q q 0 0 0 rg BT 427.25 357.75 Td (fer them these types of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 345.75 Td (investments in compliance with applicable laws and regulations. ) Tj ET Q q 0 0 0 rg BT 337.75 345.75 Td (These investment opportunities are available on ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 333.75 Td (the same terms and conditions as those applicable to third-party investors in our funds and bear their share of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 321.75 Td (management fees, except that they are not subject to incentive fees. ) Tj ET Q q 0 0 0 rg BT 357.41 321.75 Td (As of December 31, 2016, we managed ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 309.75 Td (approximately $603 million of ) Tj ET Q q 0 0 0 rg BT 181.74 309.75 Td (AUM invested by our directors, executive of) Tj ET Q q 0 0 0 rg BT 374.42 309.75 Td (ficers and certain current and former ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 297.75 Td (employees in our funds. During the year ended December 31, 2016, the following directors and executive of) Tj ET Q q 0 0 0 rg BT 528.99 297.75 Td (ficers ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 285.75 Td (made the following contributions of their own capital \(and/or the capital of family trusts or other estate planning ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 273.75 Td (vehicles they control\) to our funds and are expected to continue to contribute capital in our funds from time to time: ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 261.75 Td (Mr) Tj ET Q q 0 0 0 rg BT 61.11 261.75 Td (. Frank contributed an aggregate of $1,068,718; Mr) Tj ET Q q 0 0 0 rg BT 286.81 261.75 Td (. Karsh and an organization af) Tj ET Q q 0 0 0 rg BT 420.05 261.75 Td (filiated with Mr) Tj ET Q q 0 0 0 rg BT 483.41 261.75 Td (. Karsh ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 249.75 Td (contributed an aggregate of $5,820,347; Mr) Tj ET Q q 0 0 0 rg BT 241.81 249.75 Td (. Keele contributed an aggregate of $446,718; Mr) Tj ET Q q 0 0 0 rg BT 459.18 249.75 Td (. Kirchheimer ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 237.75 Td (contributed an aggregate of $1,015,444; Mr) Tj ET Q q 0 0 0 rg BT 241.81 237.75 Td (. Marks contributed an aggregate of $3,750,000; Mr) Tj ET Q q 0 0 0 rg BT 469.17 237.75 Td (. Stone contributed ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 225.75 Td (an aggregate of $6,169,734; Mr) Tj ET Q q 0 0 0 rg BT 189.55 225.75 Td (. Masson contributed an aggregate of $4,155,215; Ms. Whittington contributed an ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 213.75 Td (aggregate of $134,692; and Mr) Tj ET Q q 0 0 0 rg BT 186.77 213.75 Td (. Wintrob contributed an aggregate of $2,150,695, respectively) Tj ET Q q 0 0 0 rg BT 462.31 213.75 Td (. During the year ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 201.75 Td (ended December 31, 2016, the following directors and executive of) Tj ET Q q 0 0 0 rg BT 346.11 201.75 Td (ficers \(and/or family trusts or other estate ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 189.75 Td (planning vehicles they control\) received the following net distributions from our funds as a result of their invested ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 177.75 Td (capital: Mr) Tj ET Q q 0 0 0 rg BT 95.57 177.75 Td (. Frank received $995,287; Mr) Tj ET Q q 0 0 0 rg BT 228.42 177.75 Td (. Kaplan received $557,575; Mr) Tj ET Q q 0 0 0 rg BT 366.84 177.75 Td (. Karsh and an organization af) Tj ET Q q 0 0 0 rg BT 500.08 177.75 Td (filiated with ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 165.75 Td (Mr) Tj ET Q q 0 0 0 rg BT 61.11 165.75 Td (. Karsh received an aggregate of $13,953,1) Tj ET Q q 0 0 0 rg BT 252.72 165.75 Td (17; Mr) Tj ET Q q 0 0 0 rg BT 280.51 165.75 Td (. Keele received $2,614,004; Mr) Tj ET Q q 0 0 0 rg BT 421.71 165.75 Td (. Kirchheimer received ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 153.75 Td ($3,359,1) Tj ET Q q 0 0 0 rg BT 88.18 153.75 Td (17; Mr) Tj ET Q q 0 0 0 rg BT 115.97 153.75 Td (. Marks received $28,570,263; Mr) Tj ET Q q 0 0 0 rg BT 264.38 153.75 Td (. Masson received $684,337; Mr) Tj ET Q q 0 0 0 rg BT 406.68 153.75 Td (. Stone received $1) Tj ET Q q 0 0 0 rg BT 492.10 153.75 Td (1,952,699; and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 141.75 Td (Mr) Tj ET Q q 0 0 0 rg BT 61.11 141.75 Td (. Wintrob received $1,281,558 from our funds, respectively) Tj ET Q q 0 0 0 rg BT 319.38 141.75 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 123.75 Td (Offsets to Distributions in Respect of OCGH Units) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 105.75 Td (Pursuant to an agreement between Mr) Tj ET Q q 0 0 0 rg BT 250.10 105.75 Td (. Marks and Oaktree Capital Management \(UK\) LLP) Tj ET Q q 0 0 0 rg BT 478.36 105.75 Td (, a subsidiary of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 93.75 Td (ours in the United Kingdom, we provide Ł153,500 \($189,097 based on the average exchange rate for the 24-hour ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 81.75 Td (period ending December 31, 2016 as reported by www) Tj ET Q q 0 0 0 rg BT 291.81 81.75 Td (.oanda.com\) per year to Mr) Tj ET Q q 0 0 0 rg BT 411.87 81.75 Td (. Marks, which is of) Tj ET Q q 0 0 0 rg BT 496.70 81.75 Td (fset by ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 69.75 Td (distributions in respect of OCGH units to which Mr) Tj ET Q q 0 0 0 rg BT 270.64 69.75 Td (. Marks is entitled. In accordance with ) Tj ET Q q 0 0 0 rg BT 442.38 69.75 Td (ASC ) Tj ET Q q 0 0 0 rg BT 465.54 69.75 Td (T) Tj ET Q q 0 0 0 rg BT 470.54 69.75 Td (opic 718, the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 57.75 Td (payment of future distributions in respect of OCGH units is factored into the grant date fair value of the OCGH units ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 45.75 Td (\(which value is used for determining the compensation expense for such units under ) Tj ET Q q 0 0 0 rg BT 424.66 45.75 Td (ASC ) Tj ET Q q 0 0 0 rg BT 447.82 45.75 Td (T) Tj ET Q q 0 0 0 rg BT 452.82 45.75 Td (opic 718\) and any ) Tj ET Q endstream endobj 447 0 obj <> endobj 448 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (223) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (distributions made with respect to such units are therefore not treated as an additional compensation expense by ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 729.75 Td (such subsidiary in the year in which such distributions are paid.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 711.75 Td (T) Tj ET Q q 0 0 0 rg BT 55.56 711.75 Td (ransactions with Other Related Persons ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 693.75 Td (W) Tj ET Q q 0 0 0 rg BT 95.26 693.75 Td (e have and may in the future continue to enter into ordinary course transactions with unaf) Tj ET Q q 0 0 0 rg BT 489.20 693.75 Td (filiated entities ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 681.75 Td (known to us to beneficially own more than 5% of any class of the outstanding voting securities of the Company) Tj ET Q q 0 0 0 rg BT 537.87 681.75 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 669.75 Td (These transactions may include investments by them or their af) Tj ET Q q 0 0 0 rg BT 329.95 669.75 Td (filiates in our funds generally on the same terms and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 657.75 Td (conditions of) Tj ET Q q 0 0 0 rg BT 105.97 657.75 Td (fered to other unaf) Tj ET Q q 0 0 0 rg BT 187.51 657.75 Td (filiated fund investors and participation in our capital markets transactions, including ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 645.75 Td (underwritings and syndications, generally on the same terms and conditions of) Tj ET Q q 0 0 0 rg BT 396.68 645.75 Td (fered to other unaf) Tj ET Q q 0 0 0 rg BT 478.22 645.75 Td (filiated capital ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 633.75 Td (markets participants. See “Security Ownership of Certain Beneficial Owners and Management and Related ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 621.75 Td (Stockholder Matters.” ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 603.75 Td (Limitations on Liability; Indemnification of Directors, Officers and Manager) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 585.75 Td (Our operating agreement provides that our directors and of) Tj ET Q q 0 0 0 rg BT 340.52 585.75 Td (ficers will be liable to us or our unitholders for an ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 573.75 Td (act or omission only if such act or omission constitutes a breach of the duties owed to us or our unitholders, as ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 561.75 Td (applicable, by any such director or of) Tj ET Q q 0 0 0 rg BT 212.69 561.75 Td (ficer and such breach is the result of \(a\) willful malfeasance, gross negligence, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 549.75 Td (the commission of a felony or a material violation of law) Tj ET Q q 0 0 0 rg BT 294.56 549.75 Td (, in each case, that has or could reasonably be expected to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 537.75 Td (have a material adverse ef) Tj ET Q q 0 0 0 rg BT 167.66 537.75 Td (fect on us or \(b\) fraud and that our manager will not be liable to us or our unitholders for ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 525.75 Td (its actions.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 507.75 Td (Moreover) Tj ET Q q 0 0 0 rg BT 121.68 507.75 Td (, in our operating agreement we have agreed to indemnify our directors, of) Tj ET Q q 0 0 0 rg BT 450.02 507.75 Td (ficers and manager) Tj ET Q q 0 0 0 rg BT 535.07 507.75 Td (, to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 495.75 Td (the fullest extent permitted by law) Tj ET Q q 0 0 0 rg BT 197.86 495.75 Td (, against all expenses and liabilities \(including judgments, fines, penalties, interest, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 483.75 Td (amounts paid in settlement with our approval and counsel fees and disbursements\) arising from the performance of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 471.75 Td (any of their obligations or duties in connection with their service to us, including in connection with any civil, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 459.75 Td (criminal, administrative, investigative or other action, suit or proceeding to which any such person may hereafter be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 447.75 Td (made a party by reason of being or having been one of our directors or of) Tj ET Q q 0 0 0 rg BT 373.91 447.75 Td (ficers or our manager) Tj ET Q q 0 0 0 rg BT 468.39 447.75 Td (, except for any ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 435.75 Td (expenses or liabilities that have been finally judicially determined to have arisen primarily from acts or omissions ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 423.75 Td (that violated the standard set forth in the preceding paragraph.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 405.75 Td (The indemnification rights that we provide to our directors and of) Tj ET Q q 0 0 0 rg BT 364.41 405.75 Td (ficers are more expansive than those ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 393.75 Td (provided to the directors and of) Tj ET Q q 0 0 0 rg BT 187.68 393.75 Td (ficers of a Delaware corporation.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 375.75 Td (In addition to the indemnity that exists in our operating agreement, our subsidiary Oaktree Capital ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 363.75 Td (Management, L.P) Tj ET Q q 0 0 0 rg BT 127.65 363.75 Td (. has entered into separate indemnification agreements with each of our directors and our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 351.75 Td (executive of) Tj ET Q q 0 0 0 rg BT 103.18 351.75 Td (ficers, that indemnify them, to the fullest extent permitted by applicable law) Tj ET Q q 0 0 0 rg BT 432.24 351.75 Td (, against all expenses and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 339.75 Td (liabilities \(including judgments, fines, penalties, interest and amounts paid in settlement\) incurred by them in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 327.75 Td (connection with any proceeding in which any of them are made a party to or any claim, issue or matter) Tj ET Q q 0 0 0 rg BT 501.34 327.75 Td (, except to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 315.75 Td (the extent that it shall have been determined in a final non-appealable judgment by a court of competent jurisdiction ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 303.75 Td (that such expenses and liabilities arose primarily from acts or omissions that constituted a breach of their duties and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 291.75 Td (such breach was the result of \(a\) willful malfeasance, gross negligence, the commission of a felony or a material ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 279.75 Td (violation of applicable law \(including any federal or state securities law\), in each case, that resulted in, or could ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 267.75 Td (reasonably be expected to result in, a material adverse ef) Tj ET Q q 0 0 0 rg BT 303.85 267.75 Td (fect on us or our af) Tj ET Q q 0 0 0 rg BT 387.05 267.75 Td (filiates or \(b\) fraud. Such ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 255.75 Td (indemnification agreements will continue until and terminate upon the later of \(a\) 10 years after the indemnitee has ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 243.75 Td (ceased to occupy any positions or have any relationships with us or any of our af) Tj ET Q q 0 0 0 rg BT 406.69 243.75 Td (filiates, \(b\) the final termination of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 231.75 Td (all proceedings pending or threatened during such period to which any indemnitee may be subject and \(c\) the ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 219.75 Td (expiration of the applicable statute of limitations for any possible claim or threatened, pending or completed action, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 207.75 Td (suit or proceeding.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 189.75 Td (Statement of Policy Regarding T) Tj ET Q q 0 0 0 rg BT 203.36 189.75 Td (ransactions with Related Persons) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 80.00 171.75 Td (Our board of directors has adopted a written statement of policy for our company regarding transactions with ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 159.75 Td (related persons. Our related person policy covers any “related person transaction” including, but not limited to, any ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 147.75 Td (transaction, arrangement or relationship \(including any indebtedness or guarantee of indebtedness\) or series of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 135.75 Td (similar transactions, arrangements or relationships that is reportable by us under Item 404\(a\) of Regulation S-K in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 123.75 Td (which we were or are to be a participant and the amount involved exceeds $120,000 and in which any “related ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 111.75 Td (person” \(as defined in Item 404\(a\) of Regulation S-K\) had or will have a direct or indirect material interest. With ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 99.75 Td (certain limited exceptions, our related person policy requires that each related person transaction, and any material ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 87.75 Td (amendment or modification to a related person transaction, be reviewed and approved or ratified by a committee or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 75.75 Td (subcommittee of our board of directors composed solely of disinterested directors, by a majority of the disinterested ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 63.75 Td (members of our board of directors, by a majority of disinterested members of the executive committee of our board ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 51.75 Td (of directors or as otherwise approved in accordance with our operating agreement.) Tj ET Q endstream endobj 449 0 obj <> endobj 450 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (224) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Director Independence) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 723.75 Td (Because our senior executives represent more than 50% of our voting power) Tj ET Q q 0 0 0 rg BT 425.08 723.75 Td (, we are a “controlled ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 711.75 Td (company” as defined in the NYSE corporate governance standards. ) Tj ET Q q 0 0 0 rg BT 354.62 711.75 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 405.57 711.75 Td (, we have elected not to comply ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 699.75 Td (with certain NYSE corporate governance standards, including the requirements that a majority of our board of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 687.75 Td (directors consist of independent directors and that we have a compensation committee and a nominating/corporate ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 675.75 Td (governance committee with written charters addressing the committee’) Tj ET Q q 0 0 0 rg BT 362.18 675.75 Td (s purpose and responsibilities that are ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 663.75 Td (composed entirely of independent directors.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 645.75 Td (At such time that we are no longer deemed a controlled company) Tj ET Q q 0 0 0 rg BT 373.75 645.75 Td (, the board of directors will become ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 633.75 Td (comprised of a majority of independent directors in accordance with the applicable standards set forth by the SEC ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 621.75 Td (and NYSE for determining director independence. Presently) Tj ET Q q 0 0 0 rg BT 317.19 621.75 Td (, in applying such SEC and NYSE independence ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 609.75 Td (standards and the independence standards described in our corporate governance guidelines, the board of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 597.75 Td (directors has determined that four of its members, namely Messrs. Gilbert, Masson and Pierson and Ms. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 585.75 Td (Whittington, are each independent. Please see “Directors, Executive Of) Tj ET Q q 0 0 0 rg BT 368.32 585.75 Td (ficers and Corporate Governance—Board ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 573.75 Td (Structure and Governance” and “—Corporate Governance Guidelines.”) Tj ET Q endstream endobj 451 0 obj <> endobj 452 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (225) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (Item 14. Principal ) Tj ET Q q 0 0 0 rg BT 134.66 741.75 Td (Accounting Fees and Services) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.00 717.75 Td (On March 24, 2016, the audit committee of our board of directors dismissed PricewaterhouseCoopers LLP) Tj ET Q q 0 0 0 rg BT 551.06 717.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 705.75 Td (and engaged Ernst & ) Tj ET Q q 0 0 0 rg BT 146.56 705.75 Td (Y) Tj ET Q q 0 0 0 rg BT 152.31 705.75 Td (oung LLP) Tj ET Q q 0 0 0 rg BT 194.95 705.75 Td ( as the independent registered public accounting firm of the Company) Tj ET Q q 0 0 0 rg BT 502.17 705.75 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.00 684.75 Td (The following table sets forth the aggregate fees for professional services provided by our independent ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 672.75 Td (registered public accounting firm for the year ended December 31, 2016 \(Ernst & ) Tj ET Q q 0 0 0 rg BT 410.01 672.75 Td (Y) Tj ET Q q 0 0 0 rg BT 415.76 672.75 Td (oung LLP\) and for the year ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 660.75 Td (ended December 31, 2015 \(PricewaterhouseCoopers LLP\).) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 637.25 m 384.5 637.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 637.25 m 392.5 637.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 637.25 m 443.5 637.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 637.25 m 451.5 637.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451.5 637.25 m 502.5 637.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 637.25 m 510.5 637.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510.5 637.25 m 561.5 637.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 624.25 m 384.5 624.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 624.25 m 392.5 624.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 624.25 m 443.5 624.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451.5 624.25 m 502.5 624.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 624.25 m 510.5 624.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510.5 624.25 m 561.5 624.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 333.5 591.25 m 384.5 591.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 591.25 m 443.5 591.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451.5 591.25 m 502.5 591.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510.5 591.25 m 561.5 591.25 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 391.40 641.25 Td (For the Year Ended December 31,) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 380.20 628.25 Td (2016) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 498.20 628.25 Td (2015) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 345.45 609.25 Td (Oaktree) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 346.80 602.25 Td (Capital) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 339.25 595.25 Td (Group, LLC) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 404.45 616.25 Td (Oaktree ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 395.30 609.25 Td (Consolidated ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 399.80 602.25 Td (Funds and ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 398.95 595.25 Td (Affiliates ) Tj ET Q BT /F2 7.00 Tf ET BT /F2 4.55 Tf ET q 0 0 0 rg BT 430.46 598.59 Td (\(5\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 463.45 609.25 Td (Oaktree) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 464.80 602.25 Td (Capital) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 457.25 595.25 Td (Group, LLC) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 522.45 616.25 Td (Oaktree) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 513.30 609.25 Td (Consolidated) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 517.80 602.25 Td (Funds and) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 520.70 595.25 Td (Affiliates) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 385.35 583.65 Td (\($ in thousands, except where noted\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 565.65 Td (Audit fees ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 94.53 569.94 Td (\(1\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 107.45 565.20 Td (.........................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 336.00 565.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 358.45 565.65 Td (3,434) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 395.00 565.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 424.95 565.65 Td (444) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 454.00 565.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 476.45 565.65 Td (5,497) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 513.00 565.65 Td ($) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 565.65 Td (4,833) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 550.65 Td (Audit-related fees ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 125.04 554.94 Td (\(2\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 137.45 550.20 Td (.............................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 365.95 550.65 Td (300) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 431.00 550.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 483.95 550.65 Td (300) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 535.45 550.65 Td (2,761) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 535.65 Td (T) Tj ET Q q 0 0 0 rg BT 56.50 535.65 Td (ax fees ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 88.02 539.94 Td (\(3\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 99.95 535.20 Td (............................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 358.45 535.65 Td (4,886) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 424.95 535.65 Td (210) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 476.45 535.65 Td (2,384) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 530.45 535.65 Td (13,437) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 52.00 520.65 Td (Other fees ) Tj ET Q BT /F3 9.00 Tf ET BT /F3 5.85 Tf ET q 0 0 0 rg BT 96.52 524.94 Td (\(4\)) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 103.67 520.65 Td ( ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 109.95 520.20 Td (........................................................................................) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 365.95 520.65 Td (120) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 431.00 520.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 490.00 520.65 Td (—) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 549.00 520.65 Td (—) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 502.25 m 150.5 502.25 l s BT /F1 10.00 Tf ET BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 488.95 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 72.50 488.95 Td (Audit fees consist of fees for services related to the annual audit of our consolidated financial statements, the audit of the ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 478.15 Td (ef) Tj ET Q q 0 0 0 rg BT 79.84 478.15 Td (fectiveness of internal control over financial reporting, reviews of our interim consolidated financial statements on Form ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 467.35 Td (10-Q, statutory audits, and services that only the independent auditors can reasonably provide such as services ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 456.55 Td (associated with SEC registration statements or other documents issued in connection with securities of) Tj ET Q q 0 0 0 rg BT 481.54 456.55 Td (ferings \(including ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 445.75 Td (consents and comfort letters\), and accounting consultations and services that are normally provided in connection with ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 434.95 Td (statutory and regulatory filings and engagements. Fees in 2015 include $0.2 million related to 2014 audits.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 424.15 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 72.50 424.15 Td (Audit-related fees consist of fees related to examinations of our investment adviser operations controls. For 2015, such ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 413.35 Td (fees also include due diligence services in connection with acquisitions of portfolio companies for investment by ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 402.55 Td (consolidated funds managed by Oaktree in its capacity as general partner) Tj ET Q q 0 0 0 rg BT 365.68 402.55 Td (.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 391.75 Td (\(3\) ) Tj ET Q q 0 0 0 rg BT 72.50 391.75 Td (T) Tj ET Q q 0 0 0 rg BT 77.00 391.75 Td (ax fees consist of fees related to tax compliance and tax advisory services. ) Tj ET Q q 0 0 0 rg BT 379.48 391.75 Td (T) Tj ET Q q 0 0 0 rg BT 383.98 391.75 Td (ax fees in 2016 include $3,363 for tax ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 380.95 Td (compliance services and $1,733 for tax advisory services. For 2015, such fees also include tax diligence services in ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 370.15 Td (connection with acquisitions of portfolio companies for investments by funds managed by Oaktree in its capacity as ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 359.35 Td (general partner) Tj ET Q q 0 0 0 rg BT 133.04 359.35 Td (. ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 348.55 Td (\(4\) ) Tj ET Q q 0 0 0 rg BT 72.50 348.55 Td (Other fees consist of fees related to advice and assistance regarding European statutory regulatory reporting and capital ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 337.75 Td (requirements.) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 50.00 326.95 Td (\(5\) ) Tj ET Q q 0 0 0 rg BT 72.50 326.95 Td (Decrease in fees for Oaktree funds from 2015 to 2016 relates to the adoption of a new accounting standard ef) Tj ET Q q 0 0 0 rg BT 509.11 326.95 Td (fective ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 316.15 Td (January 1, 2016, which resulted in the deconsolidation of substantially all of our funds. Please see note 2 of our ) Tj ET Q BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.50 305.35 Td (consolidated financial statements included in Item 8 of this Form 10-K for additional information. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 81.00 278.35 Td (In accordance with our audit committee charter) Tj ET Q q 0 0 0 rg BT 288.32 278.35 Td (, the audit committee is required to approve, in advance, all ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 266.35 Td (audit and non-audit services to be provided by our independent registered public accounting firm. ) Tj ET Q q 0 0 0 rg BT 484.16 266.35 Td (All services ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 254.35 Td (reported in the ) Tj ET Q q 0 0 0 rg BT 116.71 254.35 Td (Audit, ) Tj ET Q q 0 0 0 rg BT 144.51 254.35 Td (Audit-related, ) Tj ET Q q 0 0 0 rg BT 206.59 254.35 Td (T) Tj ET Q q 0 0 0 rg BT 211.59 254.35 Td (ax and Other fee categories above were approved by the audit committee. Of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 242.35 Td (the total aggregate fees in 2016, less than 0.1% were approved by the audit committee pursuant to the de minimis ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 230.35 Td (exception provided by Section \(c\)\(7\)\(i\)\(C\) of Rule 2-01 of Regulation S-X. Our audit committee charter is available ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 218.35 Td (on our website at www) Tj ET Q q 0 0 0 rg BT 150.05 218.35 Td (.oaktreecapital.com under the “Unitholders—Investor Relations” section.) Tj ET Q endstream endobj 453 0 obj <> endobj 454 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (226) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 741.75 Td (P) Tj ET Q q 0 0 0 rg BT 55.93 741.75 Td (ART IV) Tj ET Q q 0 0 0 rg BT 87.79 741.75 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 711.75 Td (Item 15. Exhibits, Financial Statement Schedules) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 690.75 Td (\(a\) ) Tj ET Q q 0 0 0 rg BT 86.00 690.75 Td (The following documents are filed as part of this report:) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.00 678.75 Td (\(1\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 117.00 678.75 Td (Financial statements: Please see Item 8 above.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.00 666.75 Td (\(2\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 117.00 666.75 Td (Financial statement schedules: Schedules for which provision is made in the applicable accounting ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 117.00 654.75 Td (regulations of the SEC are not required under the related instructions or are not applicable and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 117.00 642.75 Td (therefore have been omitted.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.00 630.75 Td (\(3\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 117.00 630.75 Td (Exhibits: For a list of exhibits filed with this report, please refer to the Exhibits Index on the page ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 117.00 618.75 Td (immediately preceding the exhibits, which Exhibit Index is incorporated herein by reference.) Tj ET Q endstream endobj 455 0 obj <> endobj 456 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (227) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 273.55 729.75 Td (SIGNA) Tj ET Q q 0 0 0 rg BT 304.48 729.75 Td (TURES ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.00 708.75 Td (Pursuant to the requirements of the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 338.92 708.75 Td (Act of 1934, as amended, the registrant has duly ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 696.75 Td (caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 675.75 Td (Date: March 1, 2017 ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 143.38 675.75 Td ( ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 631.25 m 561.5 631.25 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 342.00 655.47 Td (Oaktree Capital Group, LLC) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 342.00 635.87 Td (By:) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 424.85 635.78 Td (/s/ Susan Gentile) Tj ET Q BT /F3 4.00 Tf ET q 0 0 0 rg BT 52.00 617.64 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 342.00 618.25 Td (Name:) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 441.65 618.25 Td (Susan Gentile) Tj ET Q BT /F3 4.00 Tf ET q 0 0 0 rg BT 52.00 594.64 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 342.00 602.65 Td (Title:) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 372.00 602.65 Td (Chief ) Tj ET Q q 0 0 0 rg BT 391.19 602.65 Td (Accounting Officer and Managing Director) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 372.00 595.65 Td (and ) Tj ET Q q 0 0 0 rg BT 386.13 595.65 Td (Authorized Signatory) Tj ET Q BT /F1 10.00 Tf ET BT /F1 1.00 Tf ET q 0 0 0 rg BT 86.00 567.75 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 86.25 567.75 Td (Pursuant to the requirements of the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 339.17 567.75 Td (Act of 1934, this report has been signed below by ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 555.75 Td (the following persons on behalf of the registrant in the capacities indicated on this 1st day of March 2017: ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 533.25 m 90.5 533.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 185.5 533.25 m 206.5 533.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 513.25 m 90.5 513.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 90.5 513.25 m 171.5 513.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 479.25 m 90.5 479.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 90.5 479.25 m 171.5 479.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 441.25 m 90.5 441.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 90.5 441.25 m 171.5 441.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 403.25 m 90.5 403.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 90.5 403.25 m 171.5 403.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 366.25 m 90.5 366.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 90.5 366.25 m 171.5 366.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 327.25 m 90.5 327.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 90.5 327.25 m 171.5 327.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 289.25 m 90.5 289.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 90.5 289.25 m 171.5 289.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 255.25 m 90.5 255.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 90.5 255.25 m 171.5 255.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 221.25 m 90.5 221.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 90.5 221.25 m 171.5 221.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 187.25 m 90.5 187.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 90.5 187.25 m 171.5 187.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 153.25 m 90.5 153.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 90.5 153.25 m 171.5 153.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 119.25 m 90.5 119.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 90.5 119.25 m 171.5 119.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 85.25 m 90.5 85.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 90.5 85.25 m 171.5 85.25 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 52.00 537.25 Td (Signature) Tj ET Q BT /F3 7.00 Tf ET q 0 0 0 rg BT 174.00 537.25 Td ( ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 188.00 537.25 Td (Title) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 52.00 517.78 Td (/s/ Howard S. Marks) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 52.00 503.83 Td (Howard S. Marks) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 174.00 503.83 Td ( ) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 188.00 503.83 Td (Director and Co-Chairman) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 52.00 483.78 Td (/s/ Bruce A. Karsh) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 52.00 469.83 Td (Bruce A. Karsh) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 174.00 469.83 Td ( ) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 188.00 469.83 Td (Director, Co-Chairman and Chief Investment Officer) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 52.00 445.78 Td (/s/ Jay S. Wintrob) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 52.00 431.83 Td (Jay S. Wintrob) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 188.00 431.83 Td (Director and Chief Executive Of) Tj ET Q q 0 0 0 rg BT 320.89 431.83 Td (ficer) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 188.00 422.33 Td (\(Principal Executive Of) Tj ET Q q 0 0 0 rg BT 283.92 422.33 Td (ficer\)) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 52.00 407.78 Td (/s/ John B. Frank) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 52.00 393.83 Td (John B. Frank) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 174.00 393.83 Td ( ) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 188.00 393.83 Td (Director and Vice Chairman) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 52.00 370.78 Td (/s/ David M. Kirchheimer) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 52.00 356.83 Td (David M. Kirchheimer) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 174.00 356.83 Td ( ) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 188.00 356.83 Td (Director) Tj ET Q q 0 0 0 rg BT 220.73 356.83 Td (, Chief Financial Of) Tj ET Q q 0 0 0 rg BT 301.35 356.83 Td (ficer and Principal) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 188.00 347.33 Td (\(Principal Financial Of) Tj ET Q q 0 0 0 rg BT 280.75 347.33 Td (ficer\)) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 52.00 331.78 Td (/s/ Susan Gentile) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 52.00 317.83 Td (Susan Gentile) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 188.00 317.83 Td (Chief ) Tj ET Q q 0 0 0 rg BT 212.29 317.83 Td (Accounting Of) Tj ET Q q 0 0 0 rg BT 271.80 317.83 Td (ficer and Managing Director) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 188.00 308.33 Td (\(Principal ) Tj ET Q q 0 0 0 rg BT 229.71 308.33 Td (Accounting Of) Tj ET Q q 0 0 0 rg BT 289.21 308.33 Td (ficer\)) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 52.00 293.78 Td (/s/ Sheldon M. Stone) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 52.00 279.83 Td (Sheldon M. Stone) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 174.00 279.83 Td ( ) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 188.00 279.83 Td (Director and Principal) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 52.00 259.78 Td (/s/ Robert E. Denham) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 52.00 245.83 Td (Robert E. Denham) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 174.00 245.78 Td ( ) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 188.00 245.83 Td (Director) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 52.00 225.78 Td (/s/ Steven J. Gilbert) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 52.00 211.83 Td (Steven J. Gilbert) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 174.00 211.78 Td ( ) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 188.00 211.83 Td (Director) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 52.00 191.78 Td (/s/ Larry W. Keele) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 52.00 177.78 Td (Larry W. Keele) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 174.00 177.78 Td ( ) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 188.00 177.78 Td (Director) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 52.00 157.78 Td (/s/ D. Richard Masson) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 52.00 143.83 Td (D. Richard Masson) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 174.00 143.78 Td ( ) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 188.00 143.83 Td (Director) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 52.00 123.78 Td (/s/ Wayne G. Pierson) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 52.00 109.83 Td (Wayne G. Pierson) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 174.00 109.78 Td ( ) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 188.00 109.83 Td (Director) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 52.00 89.78 Td (/s/ Marna C. Whittington) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 52.00 75.83 Td (Marna C. Whittington) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 174.00 75.78 Td ( ) Tj ET Q BT /F3 9.50 Tf ET q 0 0 0 rg BT 188.00 75.83 Td (Director) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 457 0 obj <> endobj 458 0 obj <> stream BT /F3 10.00 Tf ET q 0 0 0 rg BT 297.65 31.25 Td (228) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 266.25 741.75 Td (EXHIBITS INDEX) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 730.95 Td ( ) Tj ET Q BT /F2 7.00 Tf ET 0 0 0 RG /GS0 gs 0.73 w 0 i [] 0 d 1 J 1 j 3 M 52 707.3446777343751 m 88.55517578125 707.3446777343751 l s q 0 0 0 rg BT 52.00 708.45 Td (Exhibit No.) Tj ET Q BT /F2 7.00 Tf ET 0 0 0 RG /GS0 gs 0.73 w 0 i [] 0 d 1 J 1 j 3 M 298.8 707.3446777343751 m 371.137890625 707.3446777343751 l s q 0 0 0 rg BT 298.80 708.45 Td (Description of Exhibit) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 688.67 Td (3.1) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 688.07 Td (Restated Certificate of Formation of the Registrant \(incorporated by reference to Exhibit 3.1 to the) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 678.07 Td (Registrant’s Registration Statement on Form S-1, filed with the SEC on June 17, 2011\).) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 657.67 Td (3.2) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 657.07 Td (Third Amended and Restated Operating Agreement of the Registrant dated as of August 31, 2011) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 647.07 Td (\(incorporated by reference to Exhibit 3.2 to the Registrant’s Registration Statement on Form S-1,) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 637.07 Td (filed with the SEC on September 2, 2011\).) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 616.67 Td (3.3) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 616.07 Td (Amendment to Third Amended and Restated Operating Agreement of the Registrant dated as of) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 606.07 Td (March 29, 2012 \(incorporated by reference to Exhibit 3.3 to the Registrant’s Registration Statement) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 596.07 Td (on Form S-1, filed with the SEC on March 30, 2012\).) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 575.67 Td (3.4) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 575.07 Td (Unit Designation, effective November 16, 2015 \(incorporated by reference to Exhibit 3 to the) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 565.07 Td (Registrant’s Current Report on Form 8-K, filed with the SEC on November 18, 2015\).) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 544.67 Td (4.1) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 544.07 Td (Specimen Certificate evidencing the Registrant’s Class A units \(incorporated by reference to Exhibit) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 534.07 Td (4.1 to the Registrant’s Registration Statement on Form S-1, filed with the SEC on September 2,) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 524.07 Td (2011\).) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 503.67 Td (4.2) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 503.07 Td (Indenture, dated as of November 24, 2009, by and among Oaktree Capital Management, L.P., as) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 493.07 Td (Issuer, Oaktree Capital Group, LLC, Oaktree Capital Group Holdings, L.P., Oaktree Capital II, L.P.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 483.07 Td (and Oaktree AIF Investments, L.P., each an Initial Guarantor, and Wells Fargo Bank, National) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 473.07 Td (Association, as Trustee, with respect to 6.75% Senior Notes Due 2019 \(incorporated by reference to) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 463.07 Td (Exhibit 4.15 to the Registrant’s Registration Statement on Form S-1, filed with the SEC on August 1,) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 453.07 Td (2011\).) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 432.67 Td (4.3) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 432.07 Td (Note and Guaranty Agreement, dated as of July 11, 2014, by and among Oaktree Capital) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 422.07 Td (Management, L.P., Oaktree Capital I, L.P., Oaktree Capital II, L.P. and Oaktree AIF Investments, L.P.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 412.07 Td (and each of the purchasers party thereto \(incorporated by reference to Exhibit 4.1 to the Registrant’s) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 402.07 Td (Current Report on Form 8-K, filed with the SEC on July 15, 2014\).) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 381.67 Td (4.4) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 381.07 Td (Form of 3.91% Senior Notes, Series A, due September 3, 2024 \(incorporated by reference to Exhibit) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 371.07 Td (4.2 to the Registrant’s Current Report on Form 8-K, filed with the SEC on July 15, 2014\).) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 350.67 Td (4.5) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 350.07 Td (Form of 4.01% Senior Notes, Series B, due September 3, 2026 \(incorporated by reference to Exhibit) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 340.07 Td (4.3 to the Registrant’s Current Report on Form 8-K, filed with the SEC on July 15, 2014\).) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 319.67 Td (4.6) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 319.07 Td (Form of 4.21% Senior Notes, Series C, due September 3, 2029 \(incorporated by reference to Exhibit) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 309.07 Td (4.4 to the Registrant’s Current Report on Form 8-K, filed with the SEC on July 15, 2014\).) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 288.67 Td (4.7) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 288.07 Td (Note and Guaranty Agreement, dated as of July 12, 2016, by and among Oaktree Capital) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 278.07 Td (Management, L.P., Oaktree Capital I, L.P., Oaktree Capital II, L.P. and Oaktree AIF Investments, L.P.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 268.07 Td (and each of the purchasers party thereto \(incorporated by reference to Exhibit 4.1 to the Registrant’s) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 258.07 Td (Current Report on Form 8-K, filed with the SEC on July 12, 2016\).) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 237.67 Td (4.8) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 237.07 Td (Form of 3.69% Senior Notes due July 12, 2031 \(incorporated by reference to Exhibit 4.2 to the) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 227.07 Td (Registrant’s Current Report on Form 8-K, filed with the SEC on July 12, 2016\).) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 206.67 Td (10.1) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 206.07 Td (Amended and Restated Limited Partnership Agreement of Oaktree Capital I, L.P., dated as of) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 196.07 Td (May 25, 2007 \(incorporated by reference to Exhibit 10.1 to the Registrant’s Registration Statement) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 186.07 Td (on Form S-1, filed with the SEC on August 1, 2011\).) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 165.67 Td (10.2) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 165.07 Td (Amended and Restated Limited Partnership Agreement of Oaktree Capital II, L.P., dated as of) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 155.07 Td (May 25, 2007 \(incorporated by reference to Exhibit 10.2 to the Registrant’s Registration Statement) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 145.07 Td (on Form S-1, filed with the SEC on August 1, 2011\).) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 124.67 Td (10.3) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 124.07 Td (Limited Partnership Agreement of Oaktree Capital Management, L.P., dated as of May 25, 2007) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 114.07 Td (\(incorporated by reference to Exhibit 10.3 to the Registrant’s Registration Statement on Form S-1,) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 104.07 Td (filed with the SEC on August 1, 2011\).) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 83.67 Td (10.4) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 83.07 Td (Amended and Restated Limited Partnership Agreement of Oaktree Capital Management \(Cayman\),) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 73.07 Td (L.P., dated as of May 25, 2007 \(incorporated by reference to Exhibit 10.4 to the Registrant’s) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 63.07 Td (Registration Statement on Form S-1, filed with the SEC on August 1, 2011\).) 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Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 656.72 Td (10.7) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 656.12 Td (Second Amended and Restated Tax Receivable Agreement, dated as of March 29, 2012, by and) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 646.12 Td (among Oaktree Holdings, Inc., Oaktree AIF Holdings, Inc., Oaktree Capital II, L.P., Oaktree Capital) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 636.12 Td (Management, L.P., Oaktree Investment Holdings, L.P., Oaktree AIF Investments, L.P. and the other) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 626.12 Td (parties from time to time party thereto \(incorporated by reference to Exhibit 10.7 to the Registrant’s) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 616.12 Td (Registration Statement on Form S-1, filed with the SEC on March 30, 2012\).) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 595.72 Td (10.8) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 595.12 Td (Second Amended and Restated Exchange Agreement, dated as of March 29, 2012, by and among) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 585.12 Td (Oaktree Capital Group, LLC, OCM Holdings I, LLC, Oaktree Holdings, Inc., Oaktree AIF Holdings,) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 575.12 Td (Inc., Oaktree Holdings, Ltd., Oaktree Capital Group Holdings, L.P. and the other parties from time to) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 565.12 Td (time party thereto \(incorporated by reference to Exhibit 10.8 to the Registrant’s Registration) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 555.12 Td (Statement on Form S-1, filed with the SEC on March 30, 2012\).) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 534.72 Td (10.9) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 534.12 Td (Credit Agreement, dated as of March 31, 2014, by and among Oaktree Capital Management, L.P.,) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 524.12 Td (Oaktree Capital II, L.P., Oaktree AIF Investments, L.P., Oaktree Capital I, L.P., the Lenders party) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 514.12 Td (thereto, Wells Fargo Bank, National Association, as Administrative Agent, L/C Issuer and Swing Line) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 504.12 Td (Lender, and Wells Fargo Securities, LLC, as Sole Lead Arranger and Sole Lead Bookrunner) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 494.12 Td (\(incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K, filed with) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 484.12 Td (the SEC on April 4, 2014\).) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 463.72 Td (10.9.1) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 463.12 Td (First Amendment, dated as of November 3, 2014, to the March 31, 2014 Credit Agreement by and) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 453.12 Td (among Oaktree Capital Management, L.P., Oaktree Capital II, L.P., Oaktree AIF Investments, L.P.,) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 443.12 Td (Oaktree Capital I, L.P., the Lenders party thereto, Wells Fargo Bank, National Association, as) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 433.12 Td (Administrative Agent, L/C Issuer and Swing Line Lender, and Wells Fargo Securities, LLC, as Sole) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 423.12 Td (Lead Arranger and Sole Lead Bookrunner \(incorporated by reference to Exhibit 10.1 to the) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 413.12 Td (Registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2014, filed with the) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 403.12 Td (SEC on November 7, 2014\).) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 382.72 Td (10.9.2) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 382.12 Td (Second Amendment, dated as of March 31, 2016, to the March 31, 2014 Credit Agreement, by and) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 372.12 Td (among Oaktree Capital Management, L.P., Oaktree Capital II, L.P., Oaktree AIF Investments, L.P.,) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 362.12 Td (Oaktree Capital I, L.P., the Lenders party thereto, and Wells Fargo Bank, National Association, as) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 352.12 Td (Administrative Agent for the Lenders \(incorporated by reference to Exhibit 10.1 to the Registrant’s) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 342.12 Td (Current Report on Form 8-K, filed with the SEC on April 6, 2016\).) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 321.72 Td (10.10) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 321.12 Td (Form of Indemnification Agreement by and between Oaktree Capital Management, L.P. and the) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 311.12 Td (director or officer named therein \(incorporated by reference to Exhibit 10.11 to the Registrant’s) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 301.12 Td (Registration Statement on Form S-1, filed with the SEC on October 20, 2011\).) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 280.72 Td (10.11*) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 280.12 Td (2007 Oaktree Capital Group Equity Incentive Plan and forms of award agreements thereunder) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 270.12 Td (\(incorporated by reference to Exhibit 10.12 to the Registrant’s Registration Statement on Form S-1,) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 260.12 Td (filed with the SEC on August 1, 2011\).) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 239.72 Td (10.12*) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 239.12 Td (Summary Employment Agreement by and among Oaktree Capital Management Limited and Howard) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 229.12 Td (Marks, dated as of September 26, 2006 \(incorporated by reference to Exhibit 10.14 to the) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 219.12 Td (Registrant’s Registration Statement on Form S-1, filed with the SEC on August 1, 2011\).) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 198.72 Td (10.13*) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 198.12 Td (Sixth Amended and Restated Limited Partnership Agreement of Oaktree Fund GP I, L.P., dated as of) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 188.12 Td (March 20, 2015 \(incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 178.12 Td (Form 10-Q for the quarter ended June 30, 2015, filed with the SEC on August 6, 2015\).) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 157.72 Td (10.14*) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 157.12 Td (Sixth Amended and Restated Limited Partnership Agreement of Oaktree Fund GP II, L.P., dated as) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 147.12 Td (of March 20, 2015 \(incorporated by reference to Exhibit 10.2 to the Registrant’s Quarterly Report on) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 137.12 Td (Form 10-Q for the quarter ended June 30, 2015, filed with the SEC on August 6, 2015\).) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 116.72 Td (10.15*) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 116.12 Td (Fourth Amended and Restated Limited Partnership Agreement of Oaktree Fund GP III, L.P., dated as) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 106.12 Td (of March 20, 2015 \(incorporated by reference to Exhibit 10.3 to the Registrant’s Quarterly Report on) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 96.12 Td (Form 10-Q for the quarter ended June 30, 2015, filed with the SEC on August 6, 2015\).) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 75.72 Td (10.16*) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 75.12 Td (Amended and Restated Oaktree Capital Group, LLC 2011 Equity Incentive Plan \(incorporated by) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 65.12 Td (reference to Exhibit 4.4 to the Registrant’s Registration Statement on Form S-8, filed with the SEC) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 55.12 Td (on March 30, 2016\).) 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Wintrob dated February 24, 2015 \(incorporated by reference to Exhibit) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 671.12 Td (10.21 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2014, filed) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 661.12 Td (with the SEC on February 27, 2015\).) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.00 640.72 Td (10.19*) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 640.12 Td (Letter Agreement between Oaktree Capital Management, L.P. and Jay S. Wintrob dated October 6,) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 630.12 Td (2014 \(incorporated by reference to Exhibit 10.22 to the Registrant’s Annual Report on Form 10-K for) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 112.00 620.12 Td (the year ended December 31, 2014, filed with the SEC on February 27, 2015\).) 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