Media Center

October 24, 2013

KKR & Co. L.P. Announces Third Quarter 2013 Results

Strong Investment Performance Drives Meaningful Economic Net Income

GAAP net income (loss) attributable to KKR & Co. L.P. was $204.7 million for the quarter ended September 30, 2013, up from $127.4 million in the comparable period of 2012. GAAP net income (loss) attributable to KKR & Co. L.P. was $413.3 million for the nine months ended September 30, 2013, down from $464.1 million in the comparable period of 2012.

Assets under management ("AUM") totaled $90.2 billion as of September 30, 2013, up from $83.5 billion as of June 30, 2013.

Fee related earnings ("FRE") were $106.0 million and $292.2 million for the quarter and nine months ended September 30, 2013, respectively, up from $90.7 million and $233.8 million in the comparable periods of 2012.

Total distributable earnings were $251.1 million for the quarter ended September 30, 2013, down from $332.9 million for the quarter ended September 30, 2012. Total distributable earnings were $945.5 million for the nine months ended September 30, 2013, up from $903.1 million in the comparable period of 2012.

Economic net income ("ENI") was $613.7 million for the quarter ended September 30, 2013, up from $509.9 million in the comparable period of 2012. ENI was $1.4 billion for the nine months ended September 30, 2013, down from $1.8 billion in the comparable period of 2012.

After-tax ENI was $0.84 per adjusted unit for the quarter ended September 30, 2013, up from $0.69 per adjusted unit in the comparable period of 2012. After-tax ENI was $1.90 per adjusted unit for the nine months ended September 30, 2013, down from $2.42 per adjusted unit in the comparable period of 2012.

Book value was $7.2 billion on a total reportable segment basis as of September 30, 2013 or $10.07 per adjusted unit.

KKR & Co. L.P. declares a third quarter distribution of $0.23 per common unit.

KKR & Co. L.P. announced a transaction to acquire Avoca Capital.

NEW YORK--(BUSINESS WIRE)-- KKR & Co. L.P. (NYSE: KKR) today reported its third quarter 2013 results.

For the quarter and nine months ended September 30, 2013, the carrying value of our private equity investment portfolio appreciated 5.9% and 12.5%, respectively.

ENI was $613.7 million for the quarter ended September 30, 2013, up from $509.9 million for the quarter ended September 30, 2012. The increase was principally attributable to higher investment income earned from our principal investments and to a lesser extent a higher level of net carried interest earned from our private equity funds.

ENI was $1.4 billion for the nine months ended September 30, 2013, down from $1.8 billion for the nine months ended September 30, 2012. The decrease was primarily due to lower investment income earned from our principal investments as well as a lower level of net carried interest earned from our private equity funds. While the fair value of our principal investments and private equity portfolio increased during the nine months ended September 30, 2013, the level of appreciation was lower than in the comparable period of 2012.

AUM and fee paying assets under management ("FPAUM") were $90.2 billion and $73.6 billion, respectively, as of September 30, 2013, both up from June 30, 2013. The increases in both AUM and FPAUM were primarily attributable to new capital raised across our various investment platforms, partially offset by distributions to fund limited partners. In September 2013, our Energy Income and Growth Fund had its first close with commitments totaling $1.4 billion (includes general partner commitment).

For the quarter and nine months ended September 30, 2013, FRE was $106.0 million and $292.2 million, respectively, up from $90.7 million and $233.8 million in the comparable periods of 2012. The increases in both comparable periods were primarily driven by (i) management fees attributable to new capital raised; (ii) higher transaction fees; and (iii) the acquisition of Prisma.

On October 18, 2013, KKR announced a transaction to acquire Avoca Capital (Unlimited) and its affiliates ("Avoca"), a European credit investment manager with approximately $8 billion in assets under management as of September 30, 2013. The transaction, which is subject to customary regulatory approvals, is expected to close in the first quarter of 2014.

"Our investment portfolio and balance sheet continue to perform, resulting in an unannualized 20% return on equity in the first nine months of this year," said Henry R. Kravis and George R. Roberts, Co-Chairmen and Co-Chief Executive Officers of KKR.

___________________________________________________________________________________________________

Note: Certain financial measures, including FRE, ENI, after-tax ENI, ENI after taxes and equity-based charges, fee related EBITDA, book value, cash and short-term investments and adjusted units, are not presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). See Exhibits A and B for a reconciliation of such measures to financial results prepared in accordance with GAAP.

GAAP RESULTS

GAAP results for the quarter and nine months ended September 30, 2013 included net income attributable to KKR & Co. L.P. of $204.7 million and $413.3 million, respectively, and net income attributable to KKR & Co. L.P. per common unit of $0.66 and $1.40, respectively, on a diluted basis. For the quarter and nine months ended September 30, 2012, net income attributable to KKR & Co. L.P. was $127.4 million and $464.1 million, respectively, and net income attributable to KKR & Co. L.P. per common unit were $0.49 and $1.86, respectively, on a diluted basis. The increase quarter over quarter was primarily due to (i) an increase in management fees attributable to new capital raised and the acquisition of Prisma; (ii) higher transaction fees; and (iii) a higher level of total investment income. The year over year decrease was primarily due to a lower level of total investment income. The decrease in total investment income was partially offset by increases in fees primarily attributable to the acquisition of Prisma and higher transaction fees. The decrease in compensation and benefits expense was primarily attributable to lower carry pool allocations as a result of the recognition of lower carried interest during the nine months ended September 30, 2013 compared to the comparable period in 2012.

SEGMENT RESULTS

Private Markets

AUM was $59.7 billion as of September 30, 2013, an increase of $5.2 billion, or 9.5%, compared to AUM of $54.5 billion as of June 30, 2013. The increase was primarily attributable to new capital raised from fund investors and to a lesser extent appreciation in the fair value of our private equity portfolio. The increase was partially offset by distributions to the limited partners of our private equity funds arising from realizations.

FPAUM was $49.9 billion as of September 30, 2013, an increase of $4.0 billion, or 8.7%, compared to FPAUM of $45.9 billion as of June 30, 2013. The increase was primarily attributable to new capital raised from fund investors partially offset by distributions to the limited partners of our private equity funds arising from realizations.

FRE was $44.4 million for the quarter ended September 30, 2013, a decrease of $0.3 million compared to FRE of $44.7 million for the quarter ended September 30, 2012. The decrease was primarily driven by higher compensation expense due to additional headcount, partially offset by higher management fees resulting from new capital raised and higher transaction fees.

FRE was $127.8 million for the nine months ended September 30, 2013, an increase of $9.2 million, or 7.8%, compared to FRE of $118.6 million for the nine months ended September 30, 2012. The increase was primarily driven by higher management fees resulting from new capital raised and higher transaction fees. The increase was partially offset by higher compensation expense due to additional headcount.

ENI was $245.2 million for the quarter ended September 30, 2013, an increase of $31.3 million, or 14.6%, compared to ENI of $213.9 million for the quarter ended September 30, 2012. The increase was primarily attributable to higher net carried interest resulting from a higher level of appreciation in our private equity portfolio.

ENI was $583.9 million for the nine months ended September 30, 2013, a decrease of $70.0 million, or 10.7%, compared to ENI of $653.9 million for the nine months ended September 30, 2012. The decrease was primarily attributable to lower net carried interest resulting from a lower level of appreciation in our private equity portfolio, partially offset by the increase in FRE discussed above.

Public Markets

AUM was $30.5 billion as of September 30, 2013, an increase of $1.5 billion, or 5.2%, compared to AUM of $29.0 billion as of June 30, 2013. FPAUM was $23.7 billion as of September 30, 2013, an increase of $1.7 billion, or 7.7%, compared to FPAUM of $22.0 billion as of June 30, 2013. For both AUM and FPAUM, the increases were primarily attributable to net new capital raised from fund investors.

FRE was $20.2 million for the quarter ended September 30, 2013, a decrease of $3.1 million, or 13.3%, compared to FRE of $23.3 million for the quarter ended September 30, 2012. The decrease was principally attributable to lower incentive fees earned and higher expenses related to one-time expenses in connection with the launch of a closed-end fund in the quarter ended September 30, 2013. The decrease was partially offset by higher management fees related to new capital raised from fund investors and the acquisition of Prisma.

FRE was $91.8 million for the nine months ended September 30, 2013, an increase of $40.7 million, or 79.6%, compared to FRE of $51.1 million for the nine months ended September 30, 2012. The increase was primarily attributable to higher management fees related to new capital raised from fund investors and the acquisition of Prisma.

ENI was $28.4 million for the quarter ended September 30, 2013, a decrease of $6.5 million, or 18.6%, compared to ENI of $34.9 million for the quarter ended September 30, 2012. The decrease was primarily driven by the decrease in FRE discussed above and lower net carried interest resulting from a lower level of appreciation of certain carry-earning credit investment vehicles.

ENI was $118.0 million for the nine months ended September 30, 2013, an increase of $52.4 million, or 79.9%, compared to ENI of $65.6 million for the nine months ended September 30, 2012. The increase was primarily driven by the increase in FRE discussed above and to a lesser extent higher net carried interest due to certain credit investment vehicles beginning to earn carry in 2013.

Capital Markets and Principal Activities

FRE was $41.4 million for the quarter ended September 30, 2013, an increase of $18.7 million, or 82.4%, compared to FRE of $22.7 million for the quarter ended September 30, 2012. FRE was $72.7 million for the nine months ended September 30, 2013, an increase of $8.5 million, or 13.2%, compared to FRE of $64.2 million for the nine months ended September 30, 2012. The increases in both comparable periods were primarily driven by a higher level of overall capital markets transaction activity.

ENI was $340.1 million for the quarter ended September 30, 2013, an increase of $79.0 million, or 30.3%, compared to ENI of $261.1 million for the quarter ended September 30, 2012. The increase was primarily attributable to a higher level of investment income from our principal investments and to a lesser extent the increase in FRE discussed above.

ENI was $704.0 million for the nine months ended September 30, 2013, a decrease of $359.7 million, or 33.8%, compared to ENI of $1,063.7 million for the nine months ended September 30, 2012. The decrease was primarily due to a lower level of investment income from our principal investments. While the fair value of our principal investments increased during the nine months ended September 30, 2013, the level of appreciation was lower than in the comparable period of 2012.

CAPITAL AND LIQUIDITY

As of September 30, 2013, KKR had $1.9 billion of cash and short-term investments on a total reportable segment basis and $1.0 billion of outstanding debt obligations. KKR's availability for borrowings was $750.0 million (which is reduced by an outstanding letter of credit), which does not include a $500.0 million revolving credit facility for use in its capital markets business that was undrawn as of September 30, 2013.

As of September 30, 2013, KKR's portion of total uncalled commitments to its investment funds was $1,164.5 million, consisting of the following (amounts in thousands):

 
        Uncalled

Commitments

Private Markets

Energy Income and Growth Fund $ 252,500
North America Fund XI 191,300
Real Estate Fund 155,600
European Fund III 113,300
Asian Fund II 75,000
2006 Fund 62,900
Infrastructure 24,400
Natural Resources 10,900
E2 Investors (Annex Fund) 10,200
Asian Fund 9,300
China Growth Fund 6,500
Co-Investment Vehicles   45,600
Total Private Markets Commitments   957,500
 

Public Markets

Special Situations Vehicles 162,000
Mezzanine Fund 25,700
Direct Lending Vehicles   19,300
Total Public Markets Commitments   207,000
 
Total Uncalled Commitments $ 1,164,500
 

DISTRIBUTION

A distribution of $0.23 per common unit has been declared, comprised of (i) $0.10 per common unit from after-tax FRE, (ii) $0.07 per common unit from realized cash carry, and (iii) $0.06 per common unit from net realized principal investment income. The distribution will be paid on November 19, 2013 to unitholders of record as of the close of business on November 4, 2013. Please refer to the distribution policy presented later in this release.

CONFERENCE CALL

A conference call to discuss KKR's financial results will be held on Thursday, October 24, 2013 at 11:00 a.m. EDT. The conference call may be accessed by dialing (877) 303-2917 (U.S. callers) or +1 (253) 237-1135 (non-U.S. callers); a pass code is not required. Additionally, the conference call will be broadcast live over the Internet and may be accessed through the Public Investors section of KKR's website at http://ir.kkr.com/kkr_ir/kkr_events.cfm. A replay of the live broadcast will be available on KKR's website or by dialing (855) 859-2056 (U.S. callers) or +1 (404) 537-3406 (non-U.S. callers), pass code 76308413 beginning approximately two hours after the broadcast.

From time to time, KKR may use its website as a channel of distribution of material company information. Financial and other important information regarding KKR is routinely posted and accessible on the Investor Center for KKR & Co. L.P. at http://ir.kkr.com/kkr_ir/kkr_events.cfm. In addition, you may automatically receive email alerts and other information about KKR by enrolling your email address at the "Email Alerts" area of the Investor Center on the website.

ABOUT KKR

Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a leading global investment firm with $90.2 billion in assets under management as of September 30, 2013. With offices around the world, KKR manages assets through a variety of investment funds and accounts covering multiple asset classes. KKR seeks to create value by bringing operational expertise to its portfolio companies and through active oversight and monitoring of its investments. KKR complements its investment expertise and strengthens interactions with fund investors through its client relationships and capital markets platform. KKR & Co. L.P. is publicly traded on the New York Stock Exchange (NYSE: KKR) and "KKR", as used in this release, includes its subsidiaries, their managed investment funds and accounts, and/or their affiliated investment vehicles, as appropriate. For additional information, please visit KKR's website at www.kkr.com.

FORWARD-LOOKING STATEMENTS

This release contains certain forward-looking statements. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. The forward-looking statements are based on KKR's beliefs, assumptions and expectations of its future performance, taking into account all information currently available to it. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to KKR or are within its control. If a change occurs, KKR's business, financial condition, liquidity and results of operations, including but not limited to AUM, FPAUM, FRE, total distributable earnings, ENI, after-tax ENI, ENI after taxes and equity-based charges, fee related EBITDA, committed dollars invested and syndicated capital, uncalled commitments, core interest expense, cash and short-term investments, net realized principal investment income and book value, may vary materially from those expressed in the forward-looking statements. The following factors, among others, could cause actual results to vary from the forward-looking statements: the general volatility of the capital markets; failure to realize the benefits of or changes in KKR's business strategies including the ability to realize the anticipated synergies from acquisitions or strategic partnerships such as Prisma, Nephila or Avoca; availability, terms and deployment of capital; availability of qualified personnel and expense of recruiting and retaining such personnel; changes in the asset management industry, interest rates or the general economy; underperformance of KKR's investments and decreased ability to raise funds; and the degree and nature of KKR's competition. KKR does not undertake any obligation to update any forward-looking statements to reflect circumstances or events that occur after the date on which such statements were made except as required by law. In addition, KKR's business strategy is focused on the long term and financial results are subject to significant volatility. Additional information about factors affecting KKR is available in KKR & Co. L.P.'s Annual Report on Form 10-K for the fiscal year ended December 31, 2012, filed with the SEC on February 22, 2013, and other filings with the SEC, which are available at www.sec.gov.

 
KKR
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (GAAP BASIS - UNAUDITED)
(Amounts in thousands, except common unit and per common unit amounts)
 
 
        Quarter Ended     Nine Months Ended
September 30, 2013     September 30, 2012 September 30, 2013     September 30, 2012
Revenues
Fees $ 220,028   $ 162,154   $ 537,644   $ 390,821  
 
Expenses
Compensation and Benefits 329,182 366,350 860,905 1,019,400
Occupancy and Related Charges 17,637 14,344 46,036 43,636
General, Administrative and Other   108,676     65,825     279,906     177,480  
Total Expenses   455,495     446,519     1,186,847     1,240,516  
 
Investment Income (Loss)
Net Gains (Losses) from Investment Activities 2,230,401 2,308,613 4,598,755 6,997,166
Dividend Income 121,059 10,440 370,014 263,298
Interest Income 114,861 95,578 352,250 259,669
Interest Expense   (25,056 )   (17,868 )   (72,693 )   (52,757 )
Total Investment Income (Loss)   2,441,265     2,396,763     5,248,326     7,467,376  
 
Income (Loss) Before Taxes 2,205,798 2,112,398 4,599,123 6,617,681
 
Income Taxes   7,644     9,612     25,525     37,777  
 
Net Income (Loss) 2,198,154 2,102,786 4,573,598 6,579,904
 
Net Income (Loss) Attributable to
Redeemable Noncontrolling Interests 9,169 9,994 25,992 18,551
Net Income (Loss) Attributable to
Noncontrolling Interests 1,984,245 1,965,381 4,134,293 6,097,245
       
Net Income (Loss) Attributable to KKR & Co. L.P. $ 204,740   $ 127,411   $ 413,313   $ 464,108  
 
Distributions Declared per KKR & Co. L.P. Common Unit $ 0.23 $ 0.24 $ 0.92 $ 0.52
 
Net Income (Loss) Attributable to KKR & Co. L.P. Per Common Unit
Basic $ 0.73 $ 0.53 $ 1.53 $ 1.98
Diluted (a) $ 0.66 $ 0.49 $ 1.40 $ 1.86
Weighted Average Common Units Outstanding
Basic 282,148,802 239,696,358 270,484,224 234,876,879
Diluted (a) 308,135,191 257,646,622 296,181,070 249,359,200
 
 
 
(a)   KKR Holdings L.P. units have been excluded from the calculation of diluted earnings per common unit given that the exchange of these units would proportionally increase KKR & Co. L.P.'s interests in KKR's business and would have an anti-dilutive effect on earnings per common unit as a result of certain tax benefits KKR & Co. L.P. is assumed to receive upon the exchange.

 
KKR
STATEMENTS OF OPERATIONS AND OTHER SELECTED FINANCIAL INFORMATION
TOTAL REPORTABLE SEGMENTS (UNAUDITED)
(Amounts in thousands, except unit and per unit amounts)
 
      Quarter Ended     Nine Months Ended
September 30, 2013     June 30, 2013     September 30, 2012 September 30, 2013     September 30, 2012
Fees
Management and incentive fees:
Management fees $ 173,245 $ 164,176 $ 126,483 $ 490,384 $ 384,752
Incentive fees   1,225     15,590     17,768     35,664     31,495  
Management and incentive fees   174,470     179,766     144,251     526,048     416,247  
 
Monitoring and transaction fees:
Monitoring fees 33,010 28,907 29,969 93,985 83,577
Transaction fees 129,127 62,785 75,264 232,211 163,268
Fee credits   (61,782 )   (34,751 )   (31,707 )   (119,598 )   (67,739 )
Net monitoring and transaction fees   100,355     56,941     73,526     206,598     179,106  
 
Total fees   274,825     236,707     217,777     732,646     595,353  
 
Expenses
Compensation and benefits 92,229 80,436 71,340 247,827 196,810
Occupancy and related charges 15,674 13,067 13,605 42,063 41,305
Other operating expenses (a)   60,884     45,027     42,128     150,541     123,406  
Total expenses   168,787     138,530     127,073     440,431     361,521  
 
Fee Related Earnings (a)   106,038     98,177     90,704     292,215     233,832  
 
Investment income (loss)
Realized carried interest 81,532 269,828 166,908 439,527 307,387
Unrealized carried interest   278,004     (202,018 )   243,828     407,184     855,587  
Gross carried interest 359,536 67,810 410,736 846,711 1,162,974
Less: allocation to KKR carry pool (145,512 ) (26,536 ) (169,633 ) (341,552 ) (473,692 )
Less: management fee refunds (b)   (7,767 )   (4,735 )   (61,499 )   (21,718 )   (135,011 )
Net carried interest 206,257 36,539 179,604 483,441 554,271
Other investment income (loss)   303,472     11,050     240,876     634,720     1,000,886  
Total investment income (loss)   509,729     47,589     420,480     1,118,161     1,555,157  
 
Income (Loss) before noncontrolling interests
in Income of consolidated entities 615,767 145,766 511,184 1,410,376 1,788,989
Income (Loss) attributable to
noncontrolling interests   2,020     1,323     1,310     4,444     5,798  
 
Economic Net Income (Loss) $ 613,747   $ 144,443   $ 509,874   $ 1,405,932   $ 1,783,191  
 
Provision for Income Taxes 11,950 13,486 22,548 45,553 91,788
 
Economic Net Income (Loss), After Taxes (c) $ 601,797   $ 130,957   $ 487,326   $ 1,360,379   $ 1,691,403  
 
Economic Net Income (Loss), After Taxes per Adjusted Unit (c) $ 0.84 $ 0.18 $ 0.69 $ 1.90 $ 2.42
                                 
Assets Under Management $ 90,169,200 $ 83,500,900 $ 66,278,700 $ 90,169,200 $ 66,278,700
Fee Paying Assets Under Management $ 73,611,900 $ 67,956,400 $ 50,266,000 $ 73,611,900 $ 50,266,000
Committed Dollars Invested and Syndicated Capital $ 2,848,700 $ 1,889,400 $ 926,000 $ 5,562,500 $ 2,639,200
Uncalled Commitments       $ 22,718,400       $ 21,364,400       $ 15,845,900       $ 22,718,400       $ 15,845,900  
                                 

Other Information

Fee Related Earnings $ 106,038 $ 98,177 $ 90,704 $ 292,215 $ 233,832
Plus: depreciation and amortization   3,601     3,708     3,273     10,990     8,919  
Fee Related EBITDA $ 109,639   $ 101,885   $ 93,977   $ 303,205   $ 242,751  
 
Distributed Earnings $ 189,477 $ 313,559 $ 187,174 $ 701,756 $ 403,208
Plus: Undistributed net realized principal investment income   61,660     90,217     145,700     243,771     499,898  
Total Distributable Earnings (c) $ 251,137   $ 403,776   $ 332,874   $ 945,527   $ 903,106  
 
GAAP interest expense $ 25,056 $ 24,614 $ 17,868 $ 72,693 $ 52,757
Less: interest expense related to debt obligations
from investment financing arrangements   8,841     8,404     8,502     24,035     24,036  
Core Interest Expense (c) $ 16,215   $ 16,210   $ 9,366   $ 48,658   $ 28,721  
 
Economic Net Income (Loss), After Taxes and Equity-based Charges (c)   $ 570,570       $ 105,021       $ 469,961       $ 1,275,798       $ 1,643,724  
 
 
 
(a)   For the quarter ended September 30, 2013, other operating expenses include $9.7 million of one-time expenses incurred in connection with the launch of a closed-end fund.
 
(b) As of September 30, 2013, there is no carried interest subject to management fee refunds, which may reduce carried interest in future periods.
 
(c) See definitions for economic net income (loss), after taxes, adjusted units, total distributable earnings, core interest expense and economic net income (loss), after taxes and equity-based charges under "Notes to Reportable Segments."
 

 
KKR
STATEMENTS OF OPERATIONS AND OTHER SELECTED FINANCIAL INFORMATION
PRIVATE MARKETS SEGMENTS (UNAUDITED)
(Amounts in thousands)
 
          Quarter Ended       Nine Months Ended
September 30, 2013       June 30, 2013       September 30, 2012 September 30, 2013       September 30, 2012
Fees
Management and incentive fees:
Management fees $ 119,410 $ 114,700 $ 105,035 $ 340,715 $ 319,117
Incentive fees   -     -     -     -     -  
Management and incentive fees   119,410     114,700     105,035     340,715     319,117  
 
Monitoring and transaction fees:
Monitoring fees 33,010 28,907 29,969 93,985 83,577
Transaction fees 54,968 25,231 32,788 96,611 55,223
Fee credits   (46,597 )   (29,547 )   (26,293 )   (97,153 )   (59,641 )
Net monitoring and transaction fees   41,381     24,591     36,464     93,443     79,159  
 
Total fees   160,791     139,291     141,499     434,158     398,276  
 
Expenses
Compensation and benefits 65,400 51,516 48,905 164,917 139,382
Occupancy and related charges 13,367 11,143 12,049 35,935 36,487
Other operating expenses   37,586     33,988     35,885     105,516     103,790  
Total expenses   116,353     96,647     96,839     306,368     279,659  
 
Fee Related Earnings   44,438     42,644     44,660     127,790     118,617  
 
Investment income (loss)
Realized carried interest 81,532 269,828 166,908 439,527 307,387
Unrealized carried interest   263,982     (212,809 )   224,260     361,972     830,072  
Gross carried interest 345,514 57,019 391,168 801,499 1,137,459
Less: allocation to KKR carry pool (139,903 ) (22,220 ) (161,805 ) (323,467 ) (463,485 )
Less: management fee refunds   (7,767 )   (4,735 )   (61,499 )   (21,718 )   (135,011 )
Net carried interest 197,844 30,064 167,864 456,314 538,963
Other investment income (loss)   3,357     (249 )   1,779     1,073     (559 )
Total investment income (loss)   201,201     29,815     169,643     457,387     538,404  
 
Income (Loss) before noncontrolling interests
in Income of consolidated entities 245,639 72,459 214,303 585,177 657,021
Income (Loss) attributable to
noncontrolling interests   433     411     444     1,242     3,098  
 
Economic Net Income (Loss) $ 245,206   $ 72,048   $ 213,859   $ 583,935   $ 653,923  
                                             
Assets Under Management $ 59,678,300 $ 54,452,400 $ 49,771,000 $ 59,678,300 $ 49,771,000
Fee Paying Assets Under Management $ 49,889,500 $ 45,907,500 $ 40,354,200 $ 49,889,500 $ 40,354,200
Committed Dollars Invested $ 1,805,800 $ 1,314,000 $ 623,000 $ 3,718,300 $ 1,805,500
Uncalled Commitments           $ 21,103,800         $ 19,972,800         $ 14,594,700         $ 21,103,800         $ 14,594,700  
 

 
KKR
STATEMENTS OF OPERATIONS AND OTHER SELECTED FINANCIAL INFORMATION
PUBLIC MARKETS SEGMENTS (UNAUDITED)
(Amounts in thousands)
 
          Quarter Ended       Nine Months Ended
September 30, 2013       June 30, 2013       September 30, 2012 September 30, 2013       September 30, 2012
Fees
Management and incentive fees:
Management fees $ 53,835 $ 49,476 $ 21,448 $ 149,669 $ 65,635
Incentive fees   1,225     15,590     17,768     35,664     31,495  
Management and incentive fees   55,060     65,066     39,216     185,333     97,130  
 
Monitoring and transaction fees:
Monitoring fees - - - - -
Transaction fees 20,534 7,243 8,780 30,883 12,521
Fee credits   (15,185 )   (5,204 )   (5,414 )   (22,445 )   (8,098 )
Net monitoring and transaction fees   5,349     2,039     3,366     8,438     4,423  
 
Total fees   60,409     67,105     42,582     193,771     101,553  
 
Expenses
Compensation and benefits 18,606 21,990 13,997 60,296 34,608
Occupancy and related charges 1,906 1,615 1,343 5,063 4,127
Other operating expenses (a)   19,670     9,147     3,897     36,643     11,754  
Total expenses   40,182     32,752     19,237     102,002     50,489  
 
Fee Related Earnings (a)   20,227     34,353     23,345     91,769     51,064  
 
Investment income (loss)
Realized carried interest - - - - -
Unrealized carried interest   14,022     10,791     19,568     45,212     25,515  
Gross carried interest 14,022 10,791 19,568 45,212 25,515
Less: allocation to KKR carry pool (5,609 ) (4,316 ) (7,828 ) (18,085 ) (10,207 )
Less: management fee refunds   -     -     -     -     -  
Net carried interest 8,413 6,475 11,740 27,127 15,308
Other investment income (loss)   (4 )   22     25     80     (10 )
Total investment income (loss)   8,409     6,497     11,765     27,207     15,298  
 
Income (Loss) before noncontrolling interests
in Income of consolidated entities 28,636 40,850 35,110 118,976 66,362
Income (Loss) attributable to
noncontrolling interests   202     378     233     935     787  
 
Economic Net Income (Loss) $ 28,434   $ 40,472   $ 34,877   $ 118,041   $ 65,575  
                                             
Assets Under Management $ 30,490,900 $ 29,048,500 $ 16,507,700 $ 30,490,900 $ 16,507,700
Fee Paying Assets Under Management $ 23,722,400 $ 22,048,900 $ 9,911,800 $ 23,722,400 $ 9,911,800
Committed Dollars Invested $ 326,400 $ 370,800 $ 278,300 $ 862,100 $ 558,400
Uncalled Commitments           $ 1,614,600         $ 1,391,600         $ 1,251,200         $ 1,614,600         $ 1,251,200  
 
 
 
(a)   For the quarter ended September 30, 2013, other operating expenses include $9.7 million of one-time expenses incurred in connection with the launch of a closed-end fund.
 

 
KKR
STATEMENTS OF OPERATIONS AND OTHER SELECTED FINANCIAL INFORMATION
CAPITAL MARKETS AND PRINCIPAL ACTIVITIES SEGMENTS (UNAUDITED)
(Amounts in thousands)
 
        Quarter Ended     Nine Months Ended
September 30, 2013     June 30, 2013     September 30, 2012 September 30, 2013     September 30, 2012
Fees
Management and incentive fees:
Management fees $ - $ - $ - $ - $ -
Incentive fees   -   -   -   -   -
Management and incentive fees   -   -   -   -   -
 
Monitoring and transaction fees:
Monitoring fees - - - - -
Transaction fees 53,625 30,311 33,696 104,717 95,524
Fee credits   -   -   -   -   -
Net monitoring and transaction fees   53,625   30,311   33,696   104,717   95,524
 
Total fees   53,625   30,311   33,696   104,717   95,524
 
Expenses
Compensation and benefits 8,223 6,930 8,438 22,614 22,820
Occupancy and related charges 401 309 213 1,065 691
Other operating expenses   3,628   1,892   2,346   8,382   7,862
Total expenses   12,252   9,131   10,997   32,061   31,373
 
Fee Related Earnings   41,373   21,180   22,699   72,656   64,151
 
Investment income (loss)
Realized carried interest - - - - -
Unrealized carried interest   -   -   -   -   -
Gross carried interest - - - - -
Less: allocation to KKR carry pool - - - - -
Less: management fee refunds   -   -   -   -   -
Net carried interest - - - - -
Other investment income (loss) (a)   300,119   11,277   239,072   633,567   1,001,455
Total investment income (loss)   300,119   11,277   239,072   633,567   1,001,455
 
Income (Loss) before noncontrolling interests
in Income of consolidated entities 341,492 32,457 261,771 706,223 1,065,606
Income (Loss) attributable to
noncontrolling interests   1,385   534   633   2,267   1,913
 
Economic Net Income (Loss) $ 340,107 $ 31,923 $ 261,138 $ 703,956 $ 1,063,693
                                   
Syndicated Capital         $ 716,500     $ 204,600     $ 24,700     $ 982,100     $ 275,300
 
 
 
(a)   Amount is net of (i) interest expense and (ii) certain compensation and general and administrative expenses incurred in the generation of net realized principal investment income that is not included in "Compensation and benefits" and "Other operating expenses" above and on page 6.
 

 
KKR
STATEMENTS OF OPERATIONS
TOTAL REPORTABLE SEGMENTS (UNAUDITED)
Quarter Ended September 30, 2013
(Amounts in thousands)
 
                  Capital Markets     Total
Private Markets Public Markets and Principal Reportable
Segment Segment Activities Segment Segments
 
Fees
Management and incentive fees:
Management fees $ 119,410 $ 53,835 $ - $ 173,245
Incentive fees   -     1,225     -   1,225  
Management and incentive fees   119,410     55,060     -   174,470  
 
Monitoring and transaction fees:
Monitoring fees 33,010 - - 33,010
Transaction fees 54,968 20,534 53,625 129,127
Fee credits   (46,597 )   (15,185 )   -   (61,782 )
Net monitoring and transaction fees   41,381     5,349     53,625   100,355  
 
Total fees   160,791     60,409     53,625   274,825  
 
Expenses
Compensation and benefits 65,400 18,606 8,223 92,229
Occupancy and related charges 13,367 1,906 401 15,674
Other operating expenses   37,586     19,670     3,628   60,884  
Total expenses   116,353     40,182     12,252   168,787  
 
Fee Related Earnings   44,438     20,227     41,373   106,038  
 
Investment income (loss)
Realized carried interest 81,532 - - 81,532
Unrealized carried interest   263,982     14,022     -   278,004  
Gross carried interest 345,514 14,022 - 359,536
Less: allocation to KKR carry pool (139,903 ) (5,609 ) - (145,512 )
Less: management fee refunds   (7,767 )   -     -   (7,767 )
Net carried interest 197,844 8,413 - 206,257
Other investment income (loss)   3,357     (4 )   300,119   303,472  
Total investment income (loss)   201,201     8,409     300,119   509,729  
 
Income (Loss) before noncontrolling interests
in Income of consolidated entities 245,639 28,636 341,492 615,767
Income (Loss) attributable to
noncontrolling interests 433 202 1,385 2,020
       
Economic Net Income (Loss) $ 245,206   $ 28,434   $ 340,107 $ 613,747  
 

 
KKR
STATEMENTS OF OPERATIONS
TOTAL REPORTABLE SEGMENTS (UNAUDITED)
Quarter Ended June 30, 2013
(Amounts in thousands)
 
                  Capital Markets     Total
Private Markets Public Markets and Principal Reportable
Segment Segment Activities Segment Segments
 
Fees
Management and incentive fees:
Management fees $ 114,700 $ 49,476 $ - $ 164,176
Incentive fees   -     15,590     -   15,590  
Management and incentive fees   114,700     65,066     -   179,766  
 
Monitoring and transaction fees:
Monitoring fees 28,907 - - 28,907
Transaction fees 25,231 7,243 30,311 62,785
Fee credits   (29,547 )   (5,204 )   -   (34,751 )
Net monitoring and transaction fees   24,591     2,039     30,311   56,941  
 
Total fees   139,291     67,105     30,311   236,707  
 
Expenses
Compensation and benefits 51,516 21,990 6,930 80,436
Occupancy and related charges 11,143 1,615 309 13,067
Other operating expenses   33,988     9,147     1,892   45,027  
Total expenses   96,647     32,752     9,131   138,530  
 
Fee Related Earnings   42,644     34,353     21,180   98,177  
 
Investment income (loss)
Realized carried interest 269,828 - - 269,828
Unrealized carried interest   (212,809 )   10,791     -   (202,018 )
Gross carried interest 57,019 10,791 - 67,810
Less: allocation to KKR carry pool (22,220 ) (4,316 ) - (26,536 )
Less: management fee refunds   (4,735 )   -     -   (4,735 )
Net carried interest 30,064 6,475 - 36,539
Other investment income (loss)   (249 )   22     11,277   11,050  
Total investment income (loss)   29,815     6,497     11,277   47,589  
 
Income (Loss) before noncontrolling interests
in Income of consolidated entities 72,459 40,850 32,457 145,766
Income (Loss) attributable to
noncontrolling interests 411 378 534 1,323
       
Economic Net Income (Loss) $ 72,048   $ 40,472   $ 31,923 $ 144,443  
 

 
KKR
STATEMENTS OF OPERATIONS
TOTAL REPORTABLE SEGMENTS (UNAUDITED)
Quarter Ended September 30, 2012
(Amounts in thousands)
 
                  Capital Markets     Total
Private Markets Public Markets and Principal Reportable
Segment Segment Activities Segment Segments
 
Fees
Management and incentive fees:
Management fees $ 105,035 $ 21,448 $ - $ 126,483
Incentive fees   -     17,768     -   17,768  
Management and incentive fees   105,035     39,216     -   144,251  
 
Monitoring and transaction fees:
Monitoring fees 29,969 - - 29,969
Transaction fees 32,788 8,780 33,696 75,264
Fee credits   (26,293 )   (5,414 )   -   (31,707 )
Net monitoring and transaction fees   36,464     3,366     33,696   73,526  
 
Total fees   141,499     42,582     33,696   217,777  
 
Expenses
Compensation and benefits 48,905 13,997 8,438 71,340
Occupancy and related charges 12,049 1,343 213 13,605
Other operating expenses   35,885     3,897     2,346   42,128  
Total expenses   96,839     19,237     10,997   127,073  
 
Fee Related Earnings   44,660     23,345     22,699   90,704  
 
Investment income (loss)
Realized carried interest 166,908 - - 166,908
Unrealized carried interest   224,260     19,568     -   243,828  
Gross carried interest 391,168 19,568 - 410,736
Less: allocation to KKR carry pool (161,805 ) (7,828 ) - (169,633 )
Less: management fee refunds   (61,499 )   -     -   (61,499 )
Net carried interest 167,864 11,740 - 179,604
Other investment income (loss)   1,779     25     239,072   240,876  
Total investment income (loss)   169,643     11,765     239,072   420,480  
 
Income (Loss) before noncontrolling interests
in Income of consolidated entities 214,303 35,110 261,771 511,184
Income (Loss) attributable to
noncontrolling interests 444 233 633 1,310
       
Economic Net Income (Loss) $ 213,859   $ 34,877   $ 261,138 $ 509,874  
 

 
KKR
STATEMENTS OF OPERATIONS
TOTAL REPORTABLE SEGMENTS (UNAUDITED)
Nine Months Ended September 30, 2013
(Amounts in thousands)
                   
Capital Markets Total
Private Markets Public Markets and Principal Reportable
Segment Segment Activities Segment Segments
 
Fees
Management and incentive fees:
Management fees $ 340,715 $ 149,669 $ - $ 490,384
Incentive fees   -     35,664     -   35,664  
Management and incentive fees   340,715     185,333     -   526,048  
 
Monitoring and transaction fees:
Monitoring fees 93,985 - - 93,985
Transaction fees 96,611 30,883 104,717 232,211
Fee credits   (97,153 )   (22,445 )   -   (119,598 )
Net monitoring and transaction fees   93,443     8,438     104,717   206,598  
 
Total fees   434,158     193,771     104,717   732,646  
 
Expenses
Compensation and benefits 164,917 60,296 22,614 247,827
Occupancy and related charges 35,935 5,063 1,065 42,063
Other operating expenses   105,516     36,643     8,382   150,541  
Total expenses   306,368     102,002     32,061   440,431  
 
Fee Related Earnings   127,790     91,769     72,656   292,215  
 
Investment income (loss)
Realized carried interest 439,527 - - 439,527
Unrealized carried interest   361,972     45,212     -   407,184  
Gross carried interest 801,499 45,212 - 846,711
Less: allocation to KKR carry pool (323,467 ) (18,085 ) - (341,552 )
Less: management fee refunds   (21,718 )   -     -   (21,718 )
Net carried interest 456,314 27,127 - 483,441
Other investment income (loss)   1,073     80     633,567   634,720  
Total investment income (loss)   457,387     27,207     633,567   1,118,161  
 
Income (Loss) before noncontrolling interests
in Income of consolidated entities 585,177 118,976 706,223 1,410,376
Income (Loss) attributable to
noncontrolling interests 1,242 935 2,267 4,444
       
Economic Net Income (Loss) $ 583,935   $ 118,041   $ 703,956 $ 1,405,932  
 

 
KKR
STATEMENTS OF OPERATIONS
TOTAL REPORTABLE SEGMENTS (UNAUDITED)
Nine Months Ended September 30, 2012
(Amounts in thousands)
 
                      Capital Markets       Total
Private Markets Public Markets and Principal Reportable
Segment Segment Activities Segment Segments
 
Fees
Management and incentive fees:
Management fees $ 319,117 $ 65,635 $ - $ 384,752
Incentive fees   -     31,495     -   31,495  
Management and incentive fees   319,117     97,130     -   416,247  
 
Monitoring and transaction fees:
Monitoring fees 83,577 - - 83,577
Transaction fees 55,223 12,521 95,524 163,268
Fee credits   (59,641 )   (8,098 )   -   (67,739 )
Net monitoring and transaction fees   79,159     4,423     95,524   179,106  
 
Total fees   398,276     101,553     95,524   595,353  
 
Expenses
Compensation and benefits 139,382 34,608 22,820 196,810
Occupancy and related charges 36,487 4,127 691 41,305
Other operating expenses   103,790     11,754     7,862   123,406  
Total expenses   279,659     50,489     31,373   361,521  
 
Fee Related Earnings   118,617     51,064     64,151   233,832  
 
Investment income (loss)
Realized carried interest 307,387 - - 307,387
Unrealized carried interest   830,072     25,515     -   855,587  
Gross carried interest 1,137,459 25,515 - 1,162,974
Less: allocation to KKR carry pool (463,485 ) (10,207 ) - (473,692 )
Less: management fee refunds   (135,011 )   -     -   (135,011 )
Net carried interest 538,963 15,308 - 554,271
Other investment income (loss)   (559 )   (10 )   1,001,455   1,000,886  
Total investment income (loss)   538,404     15,298     1,001,455   1,555,157  
 
Income (Loss) before noncontrolling interests
in Income of consolidated entities 657,021 66,362 1,065,606 1,788,989
Income (Loss) attributable to
noncontrolling interests 3,098 787 1,913 5,798
       
Economic Net Income (Loss) $ 653,923   $ 65,575   $ 1,063,693 $ 1,783,191  
 

 
KKR
BALANCE SHEETS
TOTAL REPORTABLE SEGMENTS (UNAUDITED)
(Amounts in thousands, except per unit amounts)
 
As of September 30, 2013
                Capital    
Markets and
Private Public Principal Total
Markets Markets Activities Reportable
Segment Segment Segment Segments
 
Cash and short-term investments $ 173,453 $ 47,074 $ 1,680,428 $ 1,900,955
Investments - - 4,937,849

 

(a)

4,937,849
Unrealized carry 918,574 52,066 - 970,640
Other assets   363,981   283,283   58,336   705,600
Total assets $ 1,456,008 $ 382,423 $ 6,676,613 $ 8,515,044
 
Debt obligations $ - $ - $ 1,000,000 $ 1,000,000
Other liabilities   143,016   51,701   40,964   235,681
Total liabilities   143,016   51,701   1,040,964   1,235,681
 
Noncontrolling interests 1,479 649 69,487 71,615
       
Book value $ 1,311,513 $ 330,073 $ 5,566,162 $ 7,207,748
 
Book value per adjusted unit $ 1.83 $ 0.46 $ 7.78 $ 10.07
 
 
As of December 31, 2012
Capital
Markets and
Private Public Principal Total
Markets Markets Activities Reportable
Segment Segment Segment Segments
 
Cash and short-term investments $ 358,237 $ 28,690 $ 1,147,360 $ 1,534,287
Investments - - 4,758,157 4,758,157
Unrealized carry 730,292 24,939 - 755,231
Other assets   207,047   280,472   62,119   549,638
Total assets $ 1,295,576 $ 334,101 $ 5,967,636 $ 7,597,313
 
Debt obligations $ - $ - $ 500,000 $ 500,000
Other liabilities   78,724   16,433   24,275   119,432
Total liabilities   78,724   16,433   524,275   619,432
 
Noncontrolling interests 1,339 739 18,619 20,697
       
Book value $ 1,215,513 $ 316,929 $ 5,424,742 $ 6,957,184
 
Book value per adjusted unit $ 1.72 $ 0.45 $ 7.70 $ 9.87
 
 
 
(a)   See Capital Markets and Principal Activities segment schedule of investments that follows.
 

 
KKR
CAPITAL MARKETS AND PRINCIPAL ACTIVITIES SEGMENT SCHEDULE OF INVESTMENTS (UNAUDITED)
(Amounts in thousands, except percentage amounts)
 
 
          As of September 30, 2013

 

 

            Fair Value as
Fair a Percentage of

Investment

Cost

Value Total Investments
 
Co-Investments in Portfolio Companies of
Private Equity Investment Vehicles:
Alliance Boots GmbH 195,640 491,801 10.0 %
HCA Inc. 96,289 363,611 7.4 %
ProSiebenSat.1 Media AG 226,913 279,201 5.7 %
The Nielsen Company B.V. 87,657 214,492 4.3 %
Samson Resources Corporation 237,514 190,012 3.8 %
KION Group 128,058 189,391 3.8 %
NXP B.V. 122,059 172,084 3.5 %
US Foods, Inc. 100,000 130,000 2.6 %
Biomet, Inc. 151,444 121,155 2.5 %
First Data Corporation 135,258 94,681 1.9 %
Dollar General Corporation 2,893 18,171 0.4 %
Energy Future Holdings Corp.   200,000   10,000 0.2 %
  1,683,725   2,274,599 46.1 %
 
Private Equity Investment Vehicles
KKR 2006 Fund L.P. 340,655 389,950 7.9 %
KKR European Fund III L.P. 243,973 286,953 5.8 %
KKR Asian Fund L.P. 84,152 95,665 1.9 %
KKR North America Fund XI L.P. 61,565 64,106 1.3 %
KKR European Fund II L.P. 46,966 49,205 1.0 %
KKR Millennium Fund L.P. 50,470 42,693 0.9 %
KKR E2 Investors, L.P. 14,210 26,037 0.5 %
Co-Investments 7,598 7,730 0.2 %
KKR European Fund L.P. 47,664 4,290 0.1 %
KKR China Growth Fund L.P.   3,286   4,207 0.1 %
  900,539   970,836 19.7 %
 
Private Equity Total   2,584,264   3,245,435 65.8 %
 
Real Assets
Royalties and Drilling 281,968 294,670 6.0 %
Real Estate Fund 45,135 57,065 1.2 %
Infrastructure Fund 30,324 32,668 0.7 %
Co-Investments 10,835 12,888 0.3 %
Natural Resources   12,917   8,159 0.2 %
Real Assets Total   381,179   405,450 8.4 %
 
Private Markets Total   2,965,443   3,650,885 74.2 %
 
Public Markets Investment Strategies
Liquid Credit 187,263 196,972 4.0 %
Long/Short Equities 100,000 110,899 2.2 %
Credit Relative Value 82,000 91,550 1.9 %
Direct Lending 49,796 55,323 1.1 %
Special Situations 30,205 34,600 0.7 %
Mezzanine Fund   15,865   19,331 0.4 %
Public Markets Total   465,129   508,675 10.3 %
 
Other   762,234   778,289 15.5 %
 
Total Investments $ 4,192,806 $ 4,937,849 100.0 %
 

 
KKR
CAPITAL MARKETS AND PRINCIPAL ACTIVITIES SEGMENT SCHEDULE OF INVESTMENTS, CONTINUED (UNAUDITED)
(Amounts in thousands, except percentage amounts)
 
 
      As of September 30, 2013

 

 

        Fair Value as
a Percentage

Investment

Cost

Fair

Value

of Total

Investments

 
Significant Aggregate Investments: (a)
Alliance Boots GmbH $ 228,769 $ 565,811 11.5 %
HCA Inc. 117,624 432,333 8.7 %
ProSieben.Sat 1 Media AG   242,643   297,299 6.0 %
  589,036   1,295,443 26.2 %
 
Other investments   3,603,770   3,642,406 73.8 %
Total Investments $ 4,192,806 $ 4,937,849 100.0 %
 
 
 
(a)   The significant aggregate investments include investments in portfolio companies with individual fair values of 5% or more of the Capital Markets and Principal Activities segment investments balance as of September 30, 2013. The fair value figures include the co-investment and the limited partner and/or general partner interests in the underlying portfolio company.
 

 
KKR
ASSETS UNDER MANAGEMENT* (UNAUDITED)
(Amounts in thousands)
 
        Private     Public     Total
Markets Markets Reportable
Segment Segment Segments

Quarter Ended September 30, 2013

 
June 30, 2013 $ 54,452,400 $ 29,048,500 $ 83,500,900
New Capital Raised 4,670,800 1,821,700 6,492,500
Distributions (1,591,600 ) (552,300 )

 

(c)

(2,143,900 )
Foreign Exchange 33,100 - 33,100
Change in Value   2,113,600     173,000     2,286,600  
September 30, 2013 $ 59,678,300   $ 30,490,900   $ 90,169,200  
 
 

Nine Months Ended September 30, 2013

 
December 31, 2012 $ 49,127,600 $ 26,399,900 $ 75,527,500
New Capital Raised 12,319,000 5,056,500 17,375,500
Distributions (6,109,000 ) (1,952,500 )

 

(d)

(8,061,500 )
Net Changes in Fee Base of Certain Funds (a) (272,300 ) - (272,300 )
Foreign Exchange 22,100 - 22,100
Change in Value   4,590,900     987,000     5,577,900  
September 30, 2013 $ 59,678,300   $ 30,490,900   $ 90,169,200  
 
 

Trailing Twelve Months Ended September 30, 2013

 
September 30, 2012 $ 49,771,000 $ 16,507,700 $ 66,278,700
New Capital Raised 13,253,100 6,850,500 20,103,600
Acquisitions (b) - 8,086,900 8,086,900
Distributions (9,206,100 ) (2,438,100 )

 

(e)

(11,644,200 )
Net Changes in Fee Base of Certain Funds (a) (272,300 ) - (272,300 )
Foreign Exchange 39,500 - 39,500
Change in Value   6,093,100     1,483,900     7,577,000  
September 30, 2013 $ 59,678,300   $ 30,490,900   $ 90,169,200  
 
 
 
*   Assets Under Management exclude those assets managed by entities where KKR holds less than a 50% ownership interest.
 
(a) Represents the impact of including certain funds entering the post-investment period.
(b) Represents AUM of Prisma as of October 1, 2012, the date of acquisition. This figure excludes new capital raised from fund investors and distributions since the acquisition.
(c) Includes $155.3 million of redemptions by fund investors.
(d) Includes $694.5 million of redemptions by fund investors.
(e) Includes $864.4 million of redemptions by fund investors.
 

 
KKR
FEE PAYING ASSETS UNDER MANAGEMENT* (UNAUDITED)
(Amounts in thousands)
 
 
        Private     Public     Total
Markets Markets Reportable
Segment Segment Segments

Quarter Ended September 30, 2013

 
June 30, 2013 $ 45,907,500 $ 22,048,900 $ 67,956,400
New Capital Raised 4,366,900 1,719,500 6,086,400
Distributions (582,800 ) (311,100 )

 

(c)

(893,900 )
Foreign Exchange 162,800 - 162,800
Change in Value   35,100     265,100     300,200  
September 30, 2013 $ 49,889,500   $ 23,722,400   $ 73,611,900  
 
 

Nine Months Ended September 30, 2013

 
December 31, 2012 $ 41,173,000 $ 19,673,000 $ 60,846,000
New Capital Raised 11,730,800 4,453,800 16,184,600
Distributions (2,533,800 ) (1,284,800 )

 

(d)

(3,818,600 )
Net Changes in Fee Base of Certain Funds (a) (654,700 ) - (654,700 )
Foreign Exchange 107,400 - 107,400
Change in Value   66,800     880,400     947,200  
September 30, 2013 $ 49,889,500   $ 23,722,400   $ 73,611,900  
 
 

Trailing Twelve Months Ended September 30, 2013

 
September 30, 2012 $ 40,354,200 $ 9,911,800 $ 50,266,000
New Capital Raised 13,002,800 6,012,900 19,015,700
Acquisitions (b) - 8,078,400 8,078,400
Distributions (3,084,900 ) (1,542,000 )

 

(e)

(4,626,900 )
Net Changes in Fee Base of Certain Funds (a) (654,700 ) - (654,700 )
Foreign Exchange 191,000 - 191,000
Change in Value   81,100     1,261,300     1,342,400  
September 30, 2013 $ 49,889,500   $ 23,722,400   $ 73,611,900  
 
 
 
*   Fee Paying Assets Under Management exclude those assets managed by entities where KKR holds less than a 50% ownership interest.
 
(a) Represents the impact of including certain funds entering the post-investment period.
(b) Represents FPAUM of Prisma as of October 1, 2012, the date of acquisition. This figure excludes new capital raised from fund investors and distributions since the acquisition.
(c) Includes $155.3 million of redemptions by fund investors.
(d) Includes $694.5 million of redemptions by fund investors.
(e) Includes $864.4 million of redemptions by fund investors.
 

 
KKR
INVESTMENT VEHICLE SUMMARY (a) (UNAUDITED)
As of September 30, 2013
(Amounts in millions, except percentages)
 
          Investment Period     Amount
            Percentage                  

Committed by

Commencement Uncalled

General

Remaining

Remaining Fair

Date End Date Commitment Commitments Partner Invested Realized Cost

Value