Business Context and Reporting Period
This Form 8-K is a current report filed by Oaktree Capital Group, LLC on October 24, 2014. The filing serves as a Regulation FD disclosure to update investors on Assets Under Management (AUM) as of September 30, 2014. The Company announced it will report its third-quarter 2014 financial results on October 30, 2014.
Key Financial Metrics
The filing provides specific metrics regarding asset management capacity but does not contain revenue, profit, cash flow, or debt figures for the period.
- Total Assets Under Management (AUM): $93.2 billion as of September 30, 2014.
- Management Fee-Generating AUM: $79.1 billion as of September 30, 2014.
- Definition of AUM: Includes net asset value of managed assets, fund-level leverage charged for fees, undrawn capital commitments, and collateral assets in CLO vehicles.
- Definition of Fee-Generating AUM: A forward-looking metric reflecting AUM on which fees will be earned in the following quarter, excluding undrawn capital for certain funds and liquidating funds with waived fees.
Material Changes
The filing text does not provide comparative data for the prior period (e.g., June 30, 2014) to calculate material changes in AUM or fee-generating assets. The document focuses solely on the absolute values as of September 30, 2014.
Guidance, Outlook, and Risks
Outlook: The Company expects to release third-quarter 2014 financial results on October 30, 2014. Management fee-generating AUM is described as a forward-looking metric for the upcoming quarter.
Risks and Contingencies: The filing includes standard forward-looking statement disclaimers. Key risks identified include:
- Volatile anticipated revenue and income.
- Changes in the value of investments.
- Pace of raising new funds and changes in AUM.
- Timing and tax impact of carried interest.
- General economic and market conditions.
- Competition and operating expenses.
The Company states it has no obligation to update forward-looking statements unless required by law.
Investor Verification Checklist
- Verify the upcoming Q3 2014 earnings release scheduled for October 30, 2014, for detailed revenue and profit figures.
- Confirm the composition of the $14.1 billion difference between Total AUM ($93.2B) and Fee-Generating AUM ($79.1B) in the full earnings report.
- Review the Company's Form 10-K for the year ended December 31, 2013, for a comprehensive list of risk factors.
- Monitor future filings for updates on the pace of new fund raising and changes in undrawn capital commitments.