8 unchanged sentences
To a lesser extent, management fees are based upon the NAV of vehicles in our Liquid Strategies or GAV for certain InfraBridge vehicles, measured at fair value.
−Removed: At June 30, 2024, vehicles with NAV or GAV fee basis made up 5% of our $32.7 billion FEEUM.
+Added: At September 30, 2024, vehicles with NAV or GAV fee basis made up 5% of our $34.1 billion FEEUM.
Accordingly, most of our management fee revenue will not be directly affected by changes in investment fair values.
Principal Investment Income (Loss) —This is our share of income (loss) from equity interests in our sponsored funds, which in turn is largely driven by fair value changes in the underlying investments of the funds.
−Removed: A hypothetical 10% decline in the fair value of fund investments at June 30, 2024 would decrease the OP's share of principal investment income by approximately $121 million.
+Added: A hypothetical 10% decline in the fair value of fund investments at September 30, 2024 would decrease the OP's share of principal investment income by approximately $124 million.
Incentive Fees and Carried Interest —Incentive fees and carried interest, net of management allocations, are earned based upon the financial performance of a vehicle above a specified return threshold, which is largely driven by appreciation in value of underlying investments.
2 unchanged sentences
The extent of the effect of fair value changes to the amount of incentive fees and carried interest earned will depend upon the cumulative performance of an investment vehicle relative to its return threshold, the performance measurement period used to calculate incentives and carried interest, and the stage of the vehicle's lifecycle.
−Removed: A hypothetical 10% decline in the fair value of fund investments at June 30, 2024 would decrease carried interest by approximately $140 million, representing the OP's share of carried interest net of allocations to employees, former employees and Wafra.
+Added: A hypothetical 10% decline in the fair value of fund investments at September 30, 2024 would decrease carried interest by approximately $168 million, representing the OP's share of carried interest net of allocations to employees, former employees and Wafra.
In the same scenario, generally no incentive fees would be realized.
Foreign Currency Risk
−Removed: As of June 30, 2024, we have limited direct foreign currency exposure from our foreign operations and foreign currency denominated investments warehoused on the balance sheet for future sponsored vehicles.
+Added: As of September 30, 2024, we have limited direct foreign currency exposure from our foreign operations and foreign currency denominated investments warehoused on the balance sheet for future sponsored vehicles.
Changes in foreign currency rates can adversely affect earnings and the value of our foreign currency denominated investments, including investments in our foreign subsidiaries.
4 unchanged sentences
subsidiaries that are temporarily warehoused on the balance sheet.
−Removed: At June 30, 2024, our foreign currency exposure is limited to only one AUD equity investment (cost of investment at AUD 35 million).
−Removed: Based upon book value of the investment (which is lower than cost), a hypothetical 100 basis point decline in the AUD/USD rate at June 30, 2024 would have an immaterial effect on earnings.
+Added: At September 30, 2024, our foreign currency exposure is limited to only one AUD equity investment (cost of investment at AUD 35 million).
+Added: Based upon book value of the investment (which is lower than cost), a hypothetical 100 basis point decline in the AUD/USD rate at September 30, 2024 would have an immaterial effect on earnings.
Interest Rate Risk
Instruments bearing variable interest rates include debt obligations, which are subject to interest rate fluctuations that will affect future cash flows, specifically interest expense.
−Removed: Our corporate debt exposure to variable interest rates is limited to our VFN revolver, which had no outstanding balance as of June 30, 2024.
+Added: Our corporate debt exposure to variable interest rates is limited to our VFN revolver, which had no outstanding balance as of September 30, 2024.
Equity Price Risk
−Removed: At June 30, 2024, we had $112 million of long positions and $46 million of short positions in marketable equity securities, held predominantly by our consolidated sponsored liquid funds.
+Added: At September 30, 2024, we had $91 million of long positions and $47 million of short positions in marketable equity securities, held predominantly by our consolidated sponsored liquid funds.
Realized and unrealized gains and losses from marketable equity securities are recorded in other gain (loss) on the consolidated statement of operations.
5 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.