Business Context and Reporting Period
This Form 8-K is a current report filed by Oaktree Capital Group, LLC on October 25, 2013. The filing serves as a Regulation FD disclosure to provide an update on Assets Under Management (AUM) as of September 30, 2013, contemporaneous with updates to fund presentation materials and the company website.
Key Financial Metrics
The filing focuses on asset management metrics rather than traditional financial statement items like revenue or cash flow.
- Total Assets Under Management (AUM): $79.8 billion as of September 30, 2013.
- Management Fee-Generating AUM: $66.9 billion as of September 30, 2013.
- Definition of AUM: Includes net asset value of managed assets, fund-level leverage on which fees are charged, and undrawn capital entitled to be called from investors.
- Definition of Fee-Generating AUM: Reflects AUM on which management fees will be earned in the following quarter, excluding certain undrawn commitments, GP investments, and funds beyond their fee-paying term.
The filing text does not provide clear values for revenue, profit, cash flow, margins, debt, or liquidity.
Material Changes
The filing does not provide comparative data for the prior period (e.g., June 30, 2013, or September 30, 2012) to calculate material changes or growth rates. It only presents the absolute figures for the period ended September 30, 2013.
Guidance, Outlook, and Risks
Upcoming Reporting: The company announced it will report third-quarter 2013 financial results prior to the opening of the New York Stock Exchange on Friday, November 1, 2013.
Forward-Looking Statements: The report contains forward-looking statements regarding future results of operations and financial performance. These are subject to risks and uncertainties, including:
- Volatile anticipated revenue and income.
- Changes in the value of investments.
- The pace of raising new funds.
- Timing and tax impact of carried interest.
- Distributions and liquidation of existing funds.
- Changes in operating expenses and competition.
- General economic and market conditions.
The company disclaims any obligation to update these forward-looking statements except as required by law.
Investor Verification Checklist
- Verify the upcoming Q3 2013 financial results release scheduled for November 1, 2013.
- Review the detailed composition of the $79.8 billion AUM to understand the split between drawn and undrawn capital.
- Confirm the specific exclusions applied to derive the $66.9 billion management fee-generating AUM.
- Consult the company's Annual Report on Form 10-K for the year ended December 31, 2012, for a comprehensive list of risk factors.