KKR & Co. L.P. Reports Fourth Quarter and Full Year 2015 Results
February 11, 2016
For the full year 2015, After-tax Economic Net Income and After-tax
Economic Net Income per adjusted unit were
For the quarter ended
Annual Highlights
-
For the full year 2015, KKR’s private equity portfolio appreciated
14.2% and the investments on KKR’s balance sheet appreciated 3.3%
compared to the total return for the S&P 500 and
MSCI World indices of 1.4% and -0.3%, respectively. -
Book value per adjusted unit was
$11.78 as ofDecember 31, 2015 compared to$12.07 per adjusted unit as ofDecember 31, 2014 . -
Assets Under Management and Fee Paying Assets Under Management were
$120 billion and$92 billion , respectively, up 12% and 7% compared toDecember 31, 2014 . (1) -
Since the announcement of KKR’s unit repurchase program on
October 27, 2015 , KKR has repurchased and canceled 17.5 million outstanding common units for$270 million . In addition, 1.7 million granted equity awards were canceled for approximately$27 million to satisfy tax obligations in connection with their vesting. In total, 19.2 million common units have been retired on a fully-diluted basis over this period. -
KKR’s regular distribution per common unit of
$0.16 was declared for the quarter endedDecember 31, 2015 .
___________________________
“KKR delivered strong investment results in 2015 as our private equity
portfolio appreciated 14.2%, outperforming the S&P 500 by over 1,200
basis points despite challenging markets,” said
Note: Certain financial measures, including ENI, After-tax ENI,
After-tax cash earnings, book value, cash and short-term investments
and adjusted units, are not presented in accordance with accounting
principles generally accepted in |
(1) AUM and FPAUM reflect the inclusion of KKR’s pro rata portion of AUM or FPAUM, as applicable, managed by other asset managers in which KKR holds a minority stake. In addition, AUM reflects the inclusion of capital commitments for which KKR is eligible to receive fees or carried interest upon deployment of capital. See “Notes to Reportable Segments” for the definitions of AUM and FPAUM. |
GAAP RESULTS
GAAP net income (loss) for the quarter and year ended
TOTAL REPORTABLE SEGMENT RESULTS
KEY FINANCIAL METRICS (UNAUDITED) | |||||||||||||||||||||||||||
(Amounts in millions, except per adjusted unit amounts) | |||||||||||||||||||||||||||
Quarter Ended | Year Ended | ||||||||||||||||||||||||||
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Cash Earnings |
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Management, Monitoring and Transaction Fees, Net | $ | 337 | $ | 244 | $ | 1,142 | $ | 1,099 | |||||||||||||||||||
Realized Performance Income (Loss) | 215 | 210 | 1,047 | 1,242 | |||||||||||||||||||||||
Realized Investment Income (Loss) | (48 | ) |
(1) |
182 | 547 | (1) | 902 | ||||||||||||||||||||
Total Cash Segment Revenues | 504 | 636 | (21 | )% | 2,736 | 3,243 | (16 | )% | |||||||||||||||||||
Less: Total Cash Segment Expenses and Other | 297 | 250 | 1,142 | 1,180 | |||||||||||||||||||||||
Less: Corporate and Local Income Taxes Paid | 38 | 25 | 141 | 131 | |||||||||||||||||||||||
After-tax Cash Earnings | $ | 169 |
(1) |
$ | 361 |
(53 |
)% |
|
$ | 1,453 |
(1) |
$ | 1,932 | (25 | )% | ||||||||||||
After-tax Cash Earnings Per Adjusted Units |
$ | 0.21 | $ | 0.44 | (52 | )% | $ | 1.78 | $ | 2.47 | (28 | )% | |||||||||||||||
Quarter Ended | Year Ended | ||||||||||||||||||||||||||
Economic Net Income (Loss) |
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% |
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% |
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Management, Monitoring and Transaction Fees, Net | $ | 337 | $ | 244 | $ | 1,142 | $ | 1,099 | |||||||||||||||||||
Performance Income (Loss) | 327 | 256 | 1,210 | 1,352 | |||||||||||||||||||||||
Investment Income (Loss) | (176 | ) | (143 | ) | 154 | 505 | |||||||||||||||||||||
Total Segment Revenues | 488 | 357 | 37 | % | 2,506 | 2,956 | (15 | )% | |||||||||||||||||||
Less: Total Segment Expenses and Other | 343 | 270 | 1,208 | 1,229 | |||||||||||||||||||||||
Economic Net Income (Loss) | 145 | 87 | 67 | % | 1,298 | 1,727 | (25 | )% | |||||||||||||||||||
Less: Equity-based Compensation | 38 | 37 | 186 | 159 | |||||||||||||||||||||||
Pre-tax Economic Net Income (Loss) | 107 | 50 | 114 | % | 1,112 | 1,568 | (29 | )% | |||||||||||||||||||
Less: Provision for Income Tax (Benefit) | 36 | 4 | 84 | 94 | |||||||||||||||||||||||
After-tax Economic Net Income (Loss) | $ | 71 | $ | 46 | 54 | % | $ | 1,028 | $ | 1,474 | (30 | )% | |||||||||||||||
After-tax Economic Net Income (Loss) Per |
$ | 0.08 | $ | 0.05 | 60 | % | $ | 1.21 | $ | 1.84 | (34 | )% | |||||||||||||||
Book Value Per Unit |
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Book Value Per Outstanding Adjusted Unit | $ | 12.18 | $ | 12.48 | (2 | )% | |||||||||||||||||||||
Book Value Per Adjusted Unit | $ | 11.78 | $ | 12.07 | (2 | )% | |||||||||||||||||||||
Year Ended | |||||||||||||||||||||||||||
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Return on Equity | 10% | 16% | |||||||||||||||||||||||||
Cash Return on Equity | 14% | 21% |
(1) Amount includes a |
TOTAL REPORTABLE SEGMENTS
Total segment revenues were
Total segment revenues were
ENI was
ENI was
AUM(1) was
FPAUM(1) was
CAPITAL AND LIQUIDITY
As of
As of
DISTRIBUTION
A distribution of
The declaration and payment of any distributions are subject to the discretion of the board of directors of the general partner of KKR, and the terms of its limited partnership agreement. There can be no assurance that distributions will be made as intended or at all, that unitholders will receive sufficient distributions to satisfy payment of their tax liabilities as limited partners of KKR or that any particular distribution policy will be maintained.
(1) AUM and FPAUM reflect the inclusion of KKR’s pro rata portion of AUM or FPAUM, as applicable, managed by other asset managers in which KKR holds a minority stake. In addition, AUM reflects the inclusion of capital commitments for which KKR is eligible to receive fees or carried interest upon deployment of capital. See “Notes to Reportable Segments” for the definitions of AUM and FPAUM. |
SUPPLEMENTAL INFORMATION
A slide presentation containing supplemental commentary about the
Company’s financial results for the fiscal quarter and year ended
CONFERENCE CALL
A conference call to discuss KKR’s financial results will be held on
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
2015 SCHEDULE K-1 DISTRIBUTION
The 2015 K-1 tax information is expected to be available by the end of
ABOUT KKR
KKR is a leading global investment firm that manages investments across
multiple asset classes including private equity, energy, infrastructure,
real estate, credit and hedge funds. KKR aims to generate attractive
investment returns by following a patient and disciplined investment
approach, employing world-class people, and driving growth and value
creation at the asset level. KKR invests its own capital alongside its
partners’ capital and brings opportunities to others through its capital
markets business. References to KKR’s investments may include the
activities of its sponsored funds. For additional information about
FORWARD-LOOKING STATEMENTS
This release contains certain forward-looking statements, including the
statements with respect to the strategic partnership with
KKR | ||||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS (GAAP BASIS – UNAUDITED) | ||||||||||||||||||||
(Amounts in thousands, except common unit and per common unit amounts) | ||||||||||||||||||||
Quarter Ended | Year Ended | |||||||||||||||||||
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Revenues | ||||||||||||||||||||
Fees and Other | $ | 307,923 | $ | 212,944 | $ | 1,043,768 | $ | 1,110,008 | ||||||||||||
Expenses | ||||||||||||||||||||
Compensation and Benefits | 306,942 | 253,661 | 1,180,591 | 1,263,852 | ||||||||||||||||
Occupancy and Related Charges | 17,295 | 15,596 | 65,683 | 62,564 | ||||||||||||||||
General, Administrative and Other | 200,858 | 363,904 | 624,951 | 869,651 | ||||||||||||||||
Total Expenses | 525,095 | 633,161 | 1,871,225 | 2,196,067 | ||||||||||||||||
Investment Income (Loss) | ||||||||||||||||||||
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1,197,879 | 535,943 | 4,672,627 | 4,778,232 | ||||||||||||||||
Dividend Income | 140,397 | 205,875 | 850,527 | 1,174,501 | ||||||||||||||||
Interest Income | 320,569 | 271,083 | 1,219,197 | 909,207 | ||||||||||||||||
Interest Expense | (170,282 | ) | (119,846 | ) | (573,226 | ) | (317,192 | ) | ||||||||||||
Total Investment Income (Loss) | 1,488,563 | 893,055 | 6,169,125 | 6,544,748 | ||||||||||||||||
Income (Loss) Before Taxes | 1,271,391 | 472,838 | 5,341,668 | 5,458,689 | ||||||||||||||||
Income Tax (Benefit) | 27,341 | 6,524 | 66,636 | 63,669 | ||||||||||||||||
Net Income (Loss) | 1,244,050 | 466,314 | 5,275,032 | 5,395,020 | ||||||||||||||||
Net Income (Loss) Attributable to | ||||||||||||||||||||
Redeemable Noncontrolling Interests | 7,371 | (4,707 | ) | (4,512 | ) | (3,341 | ) | |||||||||||||
Net Income (Loss) Attributable to | ||||||||||||||||||||
|
1,204,422 | 471,604 | 4,791,062 | 4,920,750 | ||||||||||||||||
Net Income (Loss) Attributable to |
$ | 32,257 | $ | (583 | ) | $ | 488,482 | $ | 477,611 | |||||||||||
Net Income (Loss) Attributable to |
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Basic | $ | 0.07 | $ | 0.00 | $ | 1.09 | $ | 1.25 | ||||||||||||
Diluted (a) | $ | 0.07 | $ | 0.00 | $ | 1.01 | $ | 1.16 | ||||||||||||
Weighted Average Common Units Outstanding | ||||||||||||||||||||
Basic | 461,374,013 | 431,432,521 | 448,884,185 | 381,092,394 | ||||||||||||||||
Diluted (a) | 489,704,787 | 458,982,859 | 482,699,194 | 412,049,275 | ||||||||||||||||
(a) |
KKR | |||||||||||||||||||||||||
STATEMENTS OF OPERATIONS AND OTHER SELECTED FINANCIAL INFORMATION | |||||||||||||||||||||||||
TOTAL REPORTABLE SEGMENTS (UNAUDITED) | |||||||||||||||||||||||||
(Amounts in thousands, except unit and per unit amounts) | |||||||||||||||||||||||||
Quarter Ended | Year Ended | ||||||||||||||||||||||||
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Segment Revenues | |||||||||||||||||||||||||
Management, Monitoring and Transaction Fees, Net | |||||||||||||||||||||||||
Management Fees | $ | 195,072 | $ | 181,780 | $ | 178,064 | $ | 732,033 | $ | 726,043 | |||||||||||||||
Monitoring Fees | 94,128 | 24,964 | 38,738 | 264,643 | 135,160 | ||||||||||||||||||||
Transaction Fees | 107,320 | 61,437 | 53,292 | 364,994 | 459,677 | ||||||||||||||||||||
Fee Credits | (59,375 | ) | (23,293 | ) | (25,728 | ) | (219,620 | ) | (222,037 | ) | |||||||||||||||
Total Management, Monitoring and Transaction Fees, Net | 337,145 | 244,888 | 244,366 | 1,142,050 | 1,098,843 | ||||||||||||||||||||
Performance Income | |||||||||||||||||||||||||
Realized Incentive Fees | 7,209 | 880 | 11,301 | 19,647 | 47,807 | ||||||||||||||||||||
Realized Carried Interest | 207,211 | 265,291 | 198,597 | 1,027,154 | 1,193,661 | ||||||||||||||||||||
Unrealized Carried Interest | 112,388 | (428,493 | ) | 46,120 | 163,545 | 110,133 | |||||||||||||||||||
Total Performance Income | 326,808 | (162,322 | ) | 256,018 | 1,210,346 | 1,351,601 | |||||||||||||||||||
Investment Income (Loss) | |||||||||||||||||||||||||
Net Realized Gains (Losses) | (81,343 | ) | 61,439 | 62,219 | 337,023 | 628,403 | |||||||||||||||||||
Net Unrealized Gains (Losses) | (128,765 | ) | (384,460 | ) | (324,416 | ) | (391,962 | ) | (396,425 | ) | |||||||||||||||
Total Realized and Unrealized | (210,108 | ) | (323,021 | ) | (262,197 | ) | (54,939 | ) | 231,978 | ||||||||||||||||
Interest Income and Dividends | 85,907 | 101,318 | 165,856 | 411,536 | 408,084 | ||||||||||||||||||||
Interest Expense | (52,174 | ) | (52,681 | ) | (46,531 | ) | (203,085 | ) | (134,909 | ) | |||||||||||||||
Net Interest and Dividends | 33,733 | 48,637 | 119,325 | 208,451 | 273,175 | ||||||||||||||||||||
Total Investment Income (Loss) | (176,375 | ) | (274,384 | ) | (142,872 | ) | 153,512 | 505,153 | |||||||||||||||||
Total Segment Revenues | 487,578 | (191,818 | ) | 357,512 | 2,505,908 | 2,955,597 | |||||||||||||||||||
Segment Expenses | |||||||||||||||||||||||||
Compensation and Benefits | |||||||||||||||||||||||||
Cash Compensation and Benefits | 121,036 | 87,680 | 86,035 | 409,992 | 380,581 | ||||||||||||||||||||
Realized Performance Income Compensation | 85,766 | 106,469 | 83,960 | 418,718 | 496,589 | ||||||||||||||||||||
Unrealized Performance Income Compensation | 45,351 | (170,621 | ) | 21,508 | 66,927 | 49,459 | |||||||||||||||||||
Total Compensation and Benefits | 252,153 | 23,528 | 191,503 | 895,637 | 926,629 | ||||||||||||||||||||
Occupancy and Related Charges | 16,666 | 15,720 | 14,383 | 62,657 | 57,787 | ||||||||||||||||||||
Other Operating Expenses | 68,978 | 52,081 | 61,685 | 233,618 | 229,069 | ||||||||||||||||||||
Total Segment Expenses | 337,797 | 91,329 | 267,571 | 1,191,912 | 1,213,485 | ||||||||||||||||||||
Income (Loss) attributable to noncontrolling interests | 5,100 | 2,902 | 3,349 | 16,007 | 14,946 | ||||||||||||||||||||
Economic Net Income (Loss) (a) | 144,681 | (286,049 | ) | 86,592 | 1,297,989 | 1,727,166 | |||||||||||||||||||
Equity-based Compensation | 37,376 | 48,252 | 36,607 | 186,346 | 158,927 | ||||||||||||||||||||
Pre-tax Economic Net Income (Loss) (b) | 107,305 | (334,301 | ) | 49,985 | 1,111,643 | 1,568,239 | |||||||||||||||||||
Provision for Income Tax (Benefit) | 36,797 | (19,505 | ) | 3,951 | 83,363 | 94,223 | |||||||||||||||||||
After-tax Economic Net Income (Loss) (c) | $ | 70,508 | $ | (314,796 | ) | $ | 46,034 | $ | 1,028,280 | $ | 1,474,016 | ||||||||||||||
After-tax Economic Net Income (Loss) Per Adjusted Unit | $ | 0.08 | $ | (0.37 | ) | $ | 0.05 | $ | 1.21 | $ | 1.84 | ||||||||||||||
Weighted Average Adjusted Units (Fully Diluted Basis) (a) | 852,446,702 | 851,704,303 | 838,067,975 | 851,099,066 | 800,247,988 | ||||||||||||||||||||
Assets Under Management | $ | 119,544,300 | $ | 112,414,500 | $ | 107,119,300 | $ | 119,544,300 | $ | 107,119,300 | |||||||||||||||
Fee Paying Assets Under Management | $ | 91,720,500 | $ | 85,861,800 | $ | 85,857,200 | $ | 91,720,500 | $ | 85,857,200 | |||||||||||||||
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$ | 2,192,100 | $ | 1,462,900 | $ | 2,343,900 | $ | 8,611,500 | $ | 12,818,100 | |||||||||||||||
Uncalled Commitments | $ | 29,457,100 | $ | 26,892,300 | $ | 21,113,700 | $ | 29,457,100 | $ | 21,113,700 | |||||||||||||||
Fee Related Earnings (d) | $ | 180,848 | $ | 127,523 | $ | 126,416 | $ | 610,496 | $ | 631,344 | |||||||||||||||
(a) | See definitions for Economic Net Income (Loss) and adjusted units under “Notes to Reportable Segments.” | |
(b) | Represents Economic Net Income (Loss) after equity-based compensation. | |
(c) | Represents Economic Net Income (Loss) after equity-based compensation and income taxes. | |
(d) | See Exhibit A “Other Information” for the definition and calculation of Fee Related Earnings. | |
KKR | |||||||||||||||||||||||||
SCHEDULE OF SEGMENT REVENUES AND OTHER SELECTED FINANCIAL INFORMATION (UNAUDITED) | |||||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||||
PRIVATE MARKETS | |||||||||||||||||||||||||
Quarter Ended | Year Ended | ||||||||||||||||||||||||
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Segment Revenues | |||||||||||||||||||||||||
Management, Monitoring and Transaction Fees, Net | |||||||||||||||||||||||||
Management Fees | $ | 122,703 | $ | 118,250 | $ | 111,186 | $ | 465,575 | $ | 453,210 | |||||||||||||||
Monitoring Fees | 94,128 | 24,964 | 38,738 | 264,643 | 135,160 | ||||||||||||||||||||
Transaction Fees | 40,000 | 17,732 | 8,480 | 144,652 | 214,612 | ||||||||||||||||||||
Fee Credits | (51,567 | ) | (20,266 | ) | (16,054 | ) | (195,025 | ) | (198,680 | ) | |||||||||||||||
Total Management, Monitoring and Transaction Fees, Net | 205,264 | 140,680 | 142,350 | 679,845 | 604,302 | ||||||||||||||||||||
Performance Income | |||||||||||||||||||||||||
Realized Incentive Fees | — | — | — | — | — | ||||||||||||||||||||
Realized Carried Interest | 207,211 | 265,291 | 198,597 | 1,018,201 | 1,159,011 | ||||||||||||||||||||
Unrealized Carried Interest | 137,438 | (394,126 | ) | 34,070 | 182,628 | 70,058 | |||||||||||||||||||
Total Performance Income | 344,649 | (128,835 | ) | 232,667 | 1,200,829 | 1,229,069 | |||||||||||||||||||
Investment Income (Loss) | |||||||||||||||||||||||||
Net Realized Gains (Losses) | — | — | — | — | — | ||||||||||||||||||||
Net Unrealized Gains (Losses) | — | — | — | — | — | ||||||||||||||||||||
Total Realized and Unrealized | — | — | — | — | — | ||||||||||||||||||||
Interest Income and Dividends | — | — | — | — | — | ||||||||||||||||||||
Interest Expense | — | — | — | — | — | ||||||||||||||||||||
Net Interest and Dividends | — | — | — | — | — | ||||||||||||||||||||
Total Investment Income (Loss) | — | — | — | — | — | ||||||||||||||||||||
Total Segment Revenues | $ | 549,913 | $ | 11,845 | $ | 375,017 | $ | 1,880,674 | $ | 1,833,371 | |||||||||||||||
Assets Under Management | $ | 66,028,600 | $ | 66,776,600 | $ | 64,611,300 | $ | 66,028,600 | $ | 64,611,300 | |||||||||||||||
Fee Paying Assets Under Management | $ | 45,307,400 | $ | 46,399,800 | $ | 47,262,500 | $ | 45,307,400 | $ | 47,262,500 | |||||||||||||||
Equity Invested | $ | 1,355,300 | $ | 867,000 | $ | 828,000 | $ | 5,527,900 | $ | 7,223,400 | |||||||||||||||
Uncalled Commitments | $ | 22,766,300 | $ | 21,610,400 | $ | 18,272,400 | $ | 22,766,300 | $ | 18,272,400 |
PUBLIC MARKETS | |||||||||||||||||||||||||
Quarter Ended | Year Ended | ||||||||||||||||||||||||
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Segment Revenues | |||||||||||||||||||||||||
Management, Monitoring and Transaction Fees, Net | |||||||||||||||||||||||||
Management Fees | $ | 72,369 | $ | 63,530 | $ | 66,878 | $ | 266,458 | $ | 272,833 | |||||||||||||||
Monitoring Fees | — | — | — | — | — | ||||||||||||||||||||
Transaction Fees | 8,183 | 3,386 | 10,511 | 28,872 | 27,145 | ||||||||||||||||||||
Fee Credits | (7,808 | ) | (3,027 | ) | (9,674 | ) | (24,595 | ) | (23,357 | ) | |||||||||||||||
Total Management, Monitoring and Transaction Fees, Net | 72,744 | 63,889 | 67,715 | 270,735 | 276,621 | ||||||||||||||||||||
Performance Income | |||||||||||||||||||||||||
Realized Incentive Fees | 7,209 | 880 | 11,301 | 19,647 | 47,807 | ||||||||||||||||||||
Realized Carried Interest | — | — | — | 8,953 | 34,650 | ||||||||||||||||||||
Unrealized Carried Interest | (25,050 | ) | (34,367 | ) | 12,050 | (19,083 | ) | 40,075 | |||||||||||||||||
Total Performance Income | (17,841 | ) | (33,487 | ) | 23,351 | 9,517 | 122,532 | ||||||||||||||||||
Investment Income (Loss) | |||||||||||||||||||||||||
Net Realized Gains (Losses) | — | — | — | — | — | ||||||||||||||||||||
Net Unrealized Gains (Losses) | — | — | — | — | — | ||||||||||||||||||||
Total Realized and Unrealized | — | — | — | — | — | ||||||||||||||||||||
Interest Income and Dividends | — | — | — | — | — | ||||||||||||||||||||
Interest Expense | — | — | — | — | — | ||||||||||||||||||||
Net Interest and Dividends | — | — | — | — | — | ||||||||||||||||||||
Total Investment Income (Loss) | — | — | — | — | — | ||||||||||||||||||||
Total Segment Revenues | $ | 54,903 | $ | 30,402 | $ | 91,066 | $ | 280,252 | $ | 399,153 | |||||||||||||||
Assets Under Management | $ | 53,515,700 | $ | 45,637,900 | $ | 42,508,000 | $ | 53,515,700 | $ | 42,508,000 | |||||||||||||||
Fee Paying Assets Under Management | $ | 46,413,100 | $ | 39,462,000 | $ | 38,594,700 | $ | 46,413,100 | $ | 38,594,700 | |||||||||||||||
Equity Invested | $ | 661,200 | $ | 583,400 | $ | 1,126,700 | $ | 2,214,700 | $ | 3,027,400 | |||||||||||||||
Uncalled Commitments | $ | 6,690,800 | $ | 5,281,900 | $ | 2,841,300 | $ | 6,690,800 | $ | 2,841,300 | |||||||||||||||
Gross Dollars Invested | $ | 1,742,600 | $ | 1,181,400 | $ | 1,545,600 | $ | 5,244,900 | $ | 4,425,600 | |||||||||||||||
KKR | ||||||||||||||||||||||||
SCHEDULE OF SEGMENT REVENUES AND OTHER SELECTED FINANCIAL INFORMATION (UNAUDITED) | ||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||
CAPITAL MARKETS | ||||||||||||||||||||||||
Quarter Ended | Year Ended | |||||||||||||||||||||||
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Segment Revenues | ||||||||||||||||||||||||
Management, Monitoring and Transaction Fees, Net | ||||||||||||||||||||||||
Management Fees | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Monitoring Fees | — | — | — | — | — | |||||||||||||||||||
Transaction Fees | 59,137 | 40,319 | 34,301 | 191,470 | 217,920 | |||||||||||||||||||
Fee Credits | — | — | — | — | — | |||||||||||||||||||
Total Management, Monitoring and Transaction Fees, Net | 59,137 | 40,319 | 34,301 | 191,470 | 217,920 | |||||||||||||||||||
Performance Income | ||||||||||||||||||||||||
Realized Incentive Fees | — | — | — | — | — | |||||||||||||||||||
Realized Carried Interest | — | — | — | — | — | |||||||||||||||||||
Unrealized Carried Interest | — | — | — | — | — | |||||||||||||||||||
Total Performance Income | — | — | — | — | — | |||||||||||||||||||
Investment Income (Loss) | ||||||||||||||||||||||||
Net Realized Gains (Losses) | — | — | — | — | — | |||||||||||||||||||
Net Unrealized Gains (Losses) | — | — | — | — | — | |||||||||||||||||||
Total Realized and Unrealized | — | — | — | — | — | |||||||||||||||||||
Interest Income and Dividends | — | — | — | — | — | |||||||||||||||||||
Interest Expense | — | — | — | — | — | |||||||||||||||||||
Net Interest and Dividends | — | — | — | — | — | |||||||||||||||||||
Total Investment Income (Loss) | — | — | — | — | — | |||||||||||||||||||
Total Segment Revenues | $ | 59,137 | $ | 40,319 | $ | 34,301 | $ | 191,470 | $ | 217,920 | ||||||||||||||
|
$ | 175,600 | $ | 12,500 | $ | 389,200 | $ | 868,900 | $ | 2,567,300 |
PRINCIPAL ACTIVITIES | |||||||||||||||||||||||||
Quarter Ended | Year Ended | ||||||||||||||||||||||||
|
|
|
|
|
|||||||||||||||||||||
Segment Revenues | |||||||||||||||||||||||||
Management, Monitoring and Transaction Fees, Net | |||||||||||||||||||||||||
Management Fees | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Monitoring Fees | — | — | — | — | — | ||||||||||||||||||||
Transaction Fees | — | — | — | — | — | ||||||||||||||||||||
Fee Credits | — | — | — | — | — | ||||||||||||||||||||
Total Management, Monitoring and Transaction Fees, Net | — | — | — | — | — | ||||||||||||||||||||
Performance Income | |||||||||||||||||||||||||
Realized Incentive Fees | — | — | — | — | — | ||||||||||||||||||||
Realized Carried Interest | — | — | — | — | — | ||||||||||||||||||||
Unrealized Carried Interest | — | — | — | — | — | ||||||||||||||||||||
Total Performance Income | — | — | — | — | — | ||||||||||||||||||||
Investment Income (Loss) | |||||||||||||||||||||||||
Net Realized Gains (Losses) |
(81,343 |
) | 61,439 | 62,219 | 337,023 | 628,403 | |||||||||||||||||||
Net Unrealized Gains (Losses) | (128,765 | ) | (384,460 | ) | (324,416 | ) | (391,962 | ) | (396,425 | ) | |||||||||||||||
Total Realized and Unrealized | (210,108 | ) | (323,021 | ) | (262,197 | ) | (54,939 | ) | 231,978 | ||||||||||||||||
Interest Income and Dividends | 85,907 | 101,318 | 165,856 | 411,536 | 408,084 | ||||||||||||||||||||
Interest Expense | (52,174 | ) | (52,681 | ) | (46,531 | ) | (203,085 | ) | (134,909 | ) | |||||||||||||||
Net Interest and Dividends | 33,733 | 48,637 | 119,325 | 208,451 | 273,175 | ||||||||||||||||||||
Total Investment Income (Loss) | (176,375 | ) | (274,384 | ) | (142,872 | ) | 153,512 | 505,153 | |||||||||||||||||
Total Segment Revenues | $ | (176,375 | ) | $ | (274,384 | ) | $ | (142,872 | ) | $ | 153,512 | $ | 505,153 | ||||||||||||
KKR | ||||||||||||||
BALANCE SHEET | ||||||||||||||
TOTAL REPORTABLE SEGMENTS (UNAUDITED) | ||||||||||||||
(Amounts in thousands, except per unit amounts) | ||||||||||||||
As of | As of | |||||||||||||
|
|
|||||||||||||
Cash and Short-term Investments | $ | 1,287,650 | $ | 1,121,385 | ||||||||||
Investments | 8,958,089 | (a) | 9,807,606 | |||||||||||
Unrealized Carry | 1,415,478 | (b) | 1,283,022 | (b) | ||||||||||
Other Assets | 1,613,139 | 999,654 | ||||||||||||
|
154,942 | — | ||||||||||||
Total Assets | $ | 13,429,298 | $ | 13,211,667 | ||||||||||
Debt Obligations – KKR (ex-KFN) | $ | 2,000,000 | $ | 1,527,000 | ||||||||||
Debt Obligations – KFN | 657,310 | 657,310 | ||||||||||||
Preferred Shares – KFN | 373,750 | 373,750 | ||||||||||||
Other Liabilities | 291,537 | 413,808 | ||||||||||||
Total Liabilities | 3,322,597 | 2,971,868 | ||||||||||||
Noncontrolling Interests | 127,472 | 121,574 | ||||||||||||
Book Value | $ | 9,979,229 | $ | 10,118,225 | ||||||||||
Book Value Per Outstanding Adjusted Unit | $ | 12.18 | $ | 12.48 | ||||||||||
Book Value Per Adjusted Unit | $ | 11.78 | $ | 12.07 | ||||||||||
(a) See schedule of investments that follows on the next page. | ||||||||||||||
As of | As of | |||||||||||||
(b) Unrealized Carry |
|
|
||||||||||||
Private Markets | $ | 1,340,556 | $ | 1,196,633 | ||||||||||
Public Markets | 74,922 | 86,389 | ||||||||||||
Total | $ | 1,415,478 | $ | 1,283,022 | ||||||||||
KKR | ||||||||||||||
SCHEDULE OF INVESTMENTS* | ||||||||||||||
TOTAL REPORTABLE SEGMENTS (UNAUDITED) | ||||||||||||||
(Amounts in thousands, except percentage amounts) | ||||||||||||||
As of |
||||||||||||||
Investments | Cost |
Fair
Value |
Fair Value as a
Percentage of Total Investments |
|||||||||||
Private Equity Co-Investments | $ | 2,250,079 | $ | 3,036,805 | 33.9 | % | ||||||||
Private Equity Funds | 786,043 | 1,020,953 | 11.4 | % | ||||||||||
Private Equity Total | 3,036,122 | 4,057,758 | 45.3 | % | ||||||||||
Energy | 977,213 | 580,680 | 6.5 | % | ||||||||||
Real Estate | 793,068 | 846,266 | 9.4 | % | ||||||||||
Infrastructure | 183,347 | 191,181 | 2.1 | % | ||||||||||
Real Assets Total | 1,953,628 | 1,618,127 | 18.0 | % | ||||||||||
Special Situations | 894,344 | 788,123 | 8.8 | % | ||||||||||
Direct Lending | 65,802 | 66,827 | 0.8 | % | ||||||||||
Mezzanine | 63,559 | 64,090 | 0.7 | % | ||||||||||
Alternative Credit Total | 1,023,705 | 919,040 | 10.3 | % | ||||||||||
CLOs (a) | 1,330,450 | 921,509 | 10.3 | % | ||||||||||
Liquid Credit | 189,280 | 184,825 | 2.1 | % | ||||||||||
Specialty Finance | 297,756 | 234,467 | 2.6 | % | ||||||||||
Credit Total | 2,841,191 | 2,259,841 | 25.3 | % | ||||||||||
Other | 1,090,008 | 1,022,363 | 11.4 | % | ||||||||||
Total Investments | $ | 8,920,949 | $ | 8,958,089 | 100.0 | % | ||||||||
As of |
||||||||||||||
Significant Investments: (b) | Cost |
Fair Value |
Fair Value as a Percentage of Total Investments |
|||||||||||
|
$ | 1,061,332 | $ | 1,266,196 | 14.1 | % | ||||||||
|
222,533 | 748,688 | 8.4 | % | ||||||||||
|
221,127 | 311,270 | 3.5 | % | ||||||||||
Oil & |
118,640 | 173,800 | 1.9 | % | ||||||||||
|
29,455 | 169,332 | 1.9 | % | ||||||||||
Total Significant Investments | 1,653,087 | 2,669,286 | 29.8 | % | ||||||||||
Other Investments | 7,267,862 | 6,288,803 | 70.2 | % | ||||||||||
Total Investments | $ | 8,920,949 | $ | 8,958,089 | 100.0 | % |
* Investments is a term used solely for purposes of financial presentation of a portion of KKR’s balance sheet and includes majority investments in subsidiaries that operate KKR’s asset management and broker-dealer businesses, including the general partner interests of KKR’s investment funds. |
(a) Includes approximately |
(b) The significant investments include the top five investments
(other than investments expected to be syndicated or transferred
in connection with new fundraising) based on their fair market
value as of |
KKR | |||||||||||||||
ASSETS UNDER MANAGEMENT* (UNAUDITED) | |||||||||||||||
(Amounts in thousands) | |||||||||||||||
Private
Markets Segment |
Public
Markets Segment |
Total
Reportable Segments |
|||||||||||||
First Quarter 2015 |
|||||||||||||||
|
$ | 61,505,800 | $ | 37,106,700 | $ | 98,612,500 | |||||||||
Net AUM of Strategic Partnerships (pro-rata based on ownership interest) | — | 2,810,800 | 2,810,800 | ||||||||||||
Capital Commitments Excluded from AUM (“Shadow AUM”) | 3,105,500 | 2,590,500 | 5,696,000 | ||||||||||||
|
$ | 64,611,300 | $ | 42,508,000 | $ | 107,119,300 | |||||||||
New Capital Raised | 1,570,500 | 2,324,600 | 3,895,100 | ||||||||||||
Distributions | (2,967,000 | ) | (1,900,800 | ) | (c) | (4,867,800 | ) | ||||||||
Net Changes in |
— | (238,600 | ) | (238,600 | ) | ||||||||||
Change in Value | 2,009,500 | (292,800 | ) | 1,716,700 | |||||||||||
|
$ | 65,224,300 | $ | 42,400,400 | $ | 107,624,700 | |||||||||
Second Quarter 2015 |
|||||||||||||||
|
$ | 65,224,300 | $ | 42,400,400 | $ | 107,624,700 | |||||||||
New Capital Raised | 3,468,900 | 4,374,700 | 7,843,600 | ||||||||||||
Distributions | (3,447,000 | ) | (1,485,400 | ) | (d) | (4,932,400 | ) | ||||||||
Change in Value | 3,294,100 | 642,700 | 3,936,800 | ||||||||||||
|
$ | 68,540,300 | $ | 45,932,400 | $ | 114,472,700 | |||||||||
Third Quarter 2015 |
|||||||||||||||
|
$ | 68,540,300 | $ | 45,932,400 | $ | 114,472,700 | |||||||||
New Capital Raised | 1,583,800 | 2,444,700 | 4,028,500 | ||||||||||||
Distributions | (2,700,300 | ) | (1,861,300 | ) | (e) | (4,561,600 | ) | ||||||||
Change in Value | (647,200 | ) | (877,900 | ) | (1,525,100 | ) | |||||||||
|
$ | 66,776,600 | $ | 45,637,900 | $ | 112,414,500 | |||||||||
Fourth Quarter 2015 |
|||||||||||||||
|
$ | 66,776,600 | $ | 45,637,900 | $ | 112,414,500 | |||||||||
New Capital Raised | 327,000 | 3,782,300 | 4,109,300 | ||||||||||||
Acquisitions | — | 6,010,800 | (b) | 6,010,800 | |||||||||||
Distributions | (2,718,200 | ) | (1,713,900 | ) | (f) | (4,432,100 | ) | ||||||||
Change in Value | 1,643,200 | (201,400 | ) | 1,441,800 | |||||||||||
|
$ | 66,028,600 | $ | 53,515,700 | $ | 119,544,300 | |||||||||
Full Year 2015 |
|||||||||||||||
|
$ | 64,611,300 | $ | 42,508,000 | $ | 107,119,300 | |||||||||
New Capital Raised | 6,950,200 | 12,926,300 | 19,876,500 | ||||||||||||
Acquisitions | — | 6,010,800 | (b) | 6,010,800 | |||||||||||
Distributions | (11,832,500 | ) | (6,961,400 | ) | (g) | (18,793,900 | ) | ||||||||
Net Changes in |
— | (238,600 | ) | (238,600 | ) | ||||||||||
Change in Value | 6,299,600 | (729,400 | ) | 5,570,200 | |||||||||||
|
$ | 66,028,600 | $ | 53,515,700 | $ | 119,544,300 |
* For the periods reported, AUM reflects the inclusion of capital commitments for which we are eligible to receive fees or carried interest upon deployment of capital and the inclusion of KKR’s pro rata portion of AUM managed by other asset managers in which KKR holds a minority stake. |
|
(a) Represents the impact of certain funds entering their post-investment period. |
(b) Represents KKR’s pro rata portion of AUM managed by |
(c) Includes |
(d) Includes |
(e) Includes |
(f) Includes |
(g) Includes |
KKR | |||||||||||||||
FEE PAYING ASSETS UNDER MANAGEMENT* (UNAUDITED) | |||||||||||||||
(Amounts in thousands) | |||||||||||||||
Private
Markets Segment |
Public
Markets Segment |
Total
Reportable Segments |
|||||||||||||
First Quarter 2015 |
|||||||||||||||
|
$ | 47,262,500 | $ | 35,783,900 | $ | 83,046,400 | |||||||||
Net FPAUM of Strategic Partnerships (pro-rata based on ownership interest) | — | 2,810,800 | 2,810,800 | ||||||||||||
|
$ | 47,262,500 | $ | 38,594,700 | $ | 85,857,200 | |||||||||
New Capital Raised | 1,320,500 | 2,277,200 | 3,597,700 | ||||||||||||
Distributions | (961,100 | ) | (1,638,600 | ) | (c) | (2,599,700 | ) | ||||||||
Net Changes in |
— | (325,200 | ) | (325,200 | ) | ||||||||||
Change in Value | (460,000 | ) | (357,500 | ) | (817,500 | ) | |||||||||
|
$ | 47,161,900 | $ | 38,550,600 | $ | 85,712,500 | |||||||||
Second Quarter 2015 |
|||||||||||||||
|
$ | 47,161,900 | $ | 38,550,600 | $ | 85,712,500 | |||||||||
New Capital Raised | 1,310,500 | 2,249,200 | 3,559,700 | ||||||||||||
Distributions | (1,723,600 | ) | (1,293,900 | ) | (d) | (3,017,500 | ) | ||||||||
Change in Value | 196,900 | 429,300 | 626,200 | ||||||||||||
|
$ | 46,945,700 | $ | 39,935,200 | $ | 86,880,900 | |||||||||
Third Quarter 2015 |
|||||||||||||||
|
$ | 46,945,700 | $ | 39,935,200 | $ | 86,880,900 | |||||||||
New Capital Raised | 1,042,700 | 1,944,500 | 2,987,200 | ||||||||||||
Distributions | (1,648,300 | ) | (1,776,100 | ) | (e) | (3,424,400 | ) | ||||||||
Change in Value | 59,700 | (641,600 | ) | (581,900 | ) | ||||||||||
|
$ | 46,399,800 | $ | 39,462,000 | $ | 85,861,800 | |||||||||
Fourth Quarter 2015 |
|||||||||||||||
|
$ | 46,399,800 | $ | 39,462,000 | $ | 85,861,800 | |||||||||
New Capital Raised | 222,400 | 2,741,500 | 2,963,900 | ||||||||||||
Acquisitions | — | 6,010,800 | (b) | 6,010,800 | |||||||||||
Distributions | (1,212,200 | ) | (1,620,700 | ) | (f) | (2,832,900 | ) | ||||||||
Change in Value | (102,600 | ) | (180,500 | ) | (283,100 | ) | |||||||||
|
$ | 45,307,400 | $ | 46,413,100 | $ | 91,720,500 | |||||||||
Full Year 2015 |
|||||||||||||||
|
$ | 47,262,500 | $ | 38,594,700 | $ | 85,857,200 | |||||||||
New Capital Raised | 3,896,100 | 9,212,400 | 13,108,500 | ||||||||||||
Acquisitions | — | 6,010,800 | (b) | 6,010,800 | |||||||||||
Distributions | (5,545,200 | ) | (6,329,300 | ) | (g) | (11,874,500 | ) | ||||||||
Net Changes in |
— | (325,200 | ) | (325,200 | ) | ||||||||||
Change in Value | (306,000 | ) | (750,300 | ) | (1,056,300 | ) | |||||||||
December 31, 2015 | $ | 45,307,400 | $ | 46,413,100 | $ | 91,720,500 | |||||||||
* For the periods reported, FPAUM reflects the inclusion of KKR’s pro rata portion of FPAUM managed by other asset managers in which KKR holds a minority stake. |
(a) Represents the impact of certain funds entering their post-investment period. |
(b) Represents KKR’s pro rata portion of FPAUM managed by |
(c) Includes $705.4 million of redemptions by fund investors. |
(d) Includes $563.8 million of redemptions by fund investors. |
(e) Includes $696.3 million of redemptions by fund investors. |
(f) Includes $908.0 million of redemptions by fund investors. |
(g) Includes $2,873.5 million of redemptions by fund investors. |
KKR | |||||||||||||||||||||||||||||
INVESTMENT VEHICLE SUMMARY (a) (UNAUDITED) | |||||||||||||||||||||||||||||
As of December 31, 2015 | |||||||||||||||||||||||||||||
(Amounts in millions, except percentages) | |||||||||||||||||||||||||||||
Investment Period | Amount | ||||||||||||||||||||||||||||
Commencement
Date |
End Date | Commitment |
Uncalled
Commitments |
Percentage
Committed by General Partner |
Invested | Realized |
Remaining
Cost |
Remaining Fair
Value |
|||||||||||||||||||||
Private Markets |
|||||||||||||||||||||||||||||
Private Equity Funds | |||||||||||||||||||||||||||||
European Fund IV (b) | 12/2014 | 12/2020 | $ | 3,468.0 | $ | 3,307.1 | 5.7% | $ | 160.9 | $ | — | $ | 160.9 | $ | 185.7 | ||||||||||||||
Asian Fund II (b) | 4/2013 | 4/2019 | 5,825.0 | 3,979.3 | 1.3% | 2,599.7 | 753.9 | 1,845.8 | 3,163.6 | ||||||||||||||||||||
North America Fund XI (b) | 9/2012 | 9/2018 | 8,718.4 | 3,704.0 | 2.9% | 5,932.1 | 1,733.8 | 4,635.4 | 6,983.8 | ||||||||||||||||||||
China Growth Fund | 11/2010 | 11/2016 | 1,010.0 | 307.6 | 1.0% | 702.4 | 283.4 | 544.4 | 713.4 | ||||||||||||||||||||
E2 Investors (Annex Fund) | 8/2009 | 11/2013 | 195.8 | — | 4.9% | 195.8 | 195.7 | 18.1 | 10.3 | ||||||||||||||||||||
European Fund III | 3/2008 | 3/2014 | 6,121.8 | 812.1 | 4.6% | 5,309.7 | 4,447.2 | 3,224.2 | 4,240.2 | ||||||||||||||||||||
Asian Fund | 7/2007 | 4/2013 | 3,983.3 | 129.5 | 2.5% | 3,853.8 | 5,397.4 | 1,918.7 | 2,534.0 | ||||||||||||||||||||
2006 Fund | 9/2006 | 9/2012 | 17,642.2 | 525.6 | 2.1% | 17,116.6 | 18,411.5 | 7,703.3 | 13,028.5 | ||||||||||||||||||||
European Fund II | 11/2005 | 10/2008 | 5,750.8 | — | 2.1% | 5,750.8 | 6,611.1 | 825.0 | 2,003.2 | ||||||||||||||||||||
Millennium Fund | 12/2002 | 12/2008 | 6,000.0 | — | 2.5% | 6,000.0 | 12,517.4 | 714.0 | 1,521.1 | ||||||||||||||||||||
European Fund | 12/1999 | 12/2005 | 3,085.4 | — | 3.2% | 3,085.4 | 8,748.0 | — | 17.1 | ||||||||||||||||||||
Total Private Equity Funds | 61,800.7 | 12,765.2 | 50,707.2 | 59,099.4 | 21,589.8 | 34,400.9 | |||||||||||||||||||||||
Co-Investment Vehicles (b) | Various | Various | 5,774.0 | 2,709.6 | Various | 3,137.4 | 2,511.0 | 2,118.0 | 2,865.8 | ||||||||||||||||||||
Total Private Equity | 67,574.7 | 15,474.8 | 53,844.6 | 61,610.4 | 23,707.8 | 37,266.7 | |||||||||||||||||||||||
Real Assets | |||||||||||||||||||||||||||||
Energy Income and Growth Fund | 9/2013 | 9/2018 | 1,974.2 | 1,142.6 | 12.8% | 831.6 | 143.9 | 757.1 | 544.3 | ||||||||||||||||||||
Natural Resources Fund | Various | Various | 887.4 | 2.9 | Various | 884.5 | 96.6 | 809.9 | 200.1 | ||||||||||||||||||||
Global Energy Opportunities (b) | Various | Various | 1,026.4 | 808.7 | Various | 252.7 | 55.0 | 144.8 | 124.7 | ||||||||||||||||||||
Global Infrastructure Investors (b) | 9/2011 | 10/2014 | 1,039.9 | 100.9 | 4.8% | 967.0 | 216.4 | 847.8 | 972.7 | ||||||||||||||||||||
Global Infrastructure Investors II (b) | 10/2014 | 10/2020 | 3,028.3 | 2,685.7 | 4.1% | 346.5 | 8.9 | 338.9 | 354.0 | ||||||||||||||||||||
Infrastructure Co-Investments | Various | Various | 1,125.0 | — | Various | 1,125.0 | 377.9 | 1,124.4 | 1,520.1 | ||||||||||||||||||||
Real Estate Partners Americas (b) | 5/2013 | 12/2016 | 1,229.1 | 598.2 | 16.3% | 777.5 | 314.5 | 630.5 | 740.7 | ||||||||||||||||||||
Real Estate Partners Europe (b) | 9/2015 | (d) | 591.3 | 591.3 | 10.9% | — | — | — | — | ||||||||||||||||||||
Real Assets | 10,901.6 | 5,930.3 | 5,184.8 | 1,213.2 | 4,653.4 | 4,456.6 | |||||||||||||||||||||||
Unallocated Commitments | 1,361.2 | 1,361.2 | Various | — | — | — | — | ||||||||||||||||||||||
Private Markets Total | 79,837.5 | 22,766.3 | 59,029.4 | 62,823.6 | 28,361.2 | 41,723.3 | |||||||||||||||||||||||
Public Markets |
|||||||||||||||||||||||||||||
Special Situations Fund | 12/2012 | 1/2016 | 2,257.6 | 128.0 | 11.6% | 2,129.6 | 257.6 | 2,129.6 | 2,205.6 | ||||||||||||||||||||
Special Situations Fund II | 12/2014 | (c) | 2,675.5 | 2,083.4 | 9.4% | 592.1 | — | 592.1 | 452.4 | ||||||||||||||||||||
Mezzanine Fund | 3/2010 | 3/2015 | 1,022.8 | 150.6 | 4.4% | 872.2 | 541.0 | 618.5 | 634.3 | ||||||||||||||||||||
Lending Partners | 12/2011 | 12/2014 | 460.2 | 90.5 | 15.2% | 369.7 | 181.5 | 325.3 | 303.3 | ||||||||||||||||||||
Lending Partners II | 6/2014 | 6/2017 | 1,335.9 | 889.6 | 3.7% | 446.3 | 26.4 | 446.3 | 475.7 | ||||||||||||||||||||
Lending Partners Europe | 3/2015 | 3/2018 | 780.1 | 763.6 | 5.2% | 16.5 | — | 16.5 | 24.0 | ||||||||||||||||||||
Other Alternative Credit Vehicles | Various | Various | 5,157.2 | 2,585.1 | Various | 2,572.1 | 1,496.5 | 1,706.7 | 1,925.9 | ||||||||||||||||||||
Public Markets Total | 13,689.3 | 6,690.8 | 6,998.5 | 2,503.0 | 5,835.0 | 6,021.2 | |||||||||||||||||||||||
Grand Total | $ | 93,526.8 | $ | 29,457.1 | $ | 66,027.9 | $ | 65,326.6 | $ | 34,196.2 | $ | 47,744.5 | |||||||||||||||||
_____________________________________________________________________________________________________________________
(a) | Reflects investment vehicles for which KKR has the ability to earn carried interest. | |
(b) | The “Invested” and “Realized” columns include the amounts of any realized investments that restored the unused capital commitments of the fund investors. | |
(c) | Three years from final close. | |
(d) | Four years from final close. | |
Notes to Reportable Segments (Unaudited)
The segment key performance measures that follow are used by management
in making operating and resource deployment decisions as well as
assessing the overall performance of each of KKR’s reportable business
segments. The reportable segments for KKR’s business are presented prior
to giving effect to the allocation of income (loss) between
KKR discloses the following financial measures in this earnings release that are calculated and presented using methodologies other than in accordance with GAAP. We believe that providing these performance measures on a supplemental basis to our GAAP results is helpful to unitholders in assessing the overall performance of KKR’s businesses. These financial measures should not be considered as a substitute for similar financial measures calculated in accordance with GAAP. We caution readers that these non-GAAP financial measures may differ from the calculations of other investment managers, and as a result, may not be comparable to similar measures presented by other investment managers. Reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are included elsewhere within this earnings release.
Adjusted units are used as a measure of the total equity
ownership of KKR that is held by
After-tax cash earnings is used by management as a measure of the cash earnings of KKR. KKR believes this measure, which was formerly referred to as total distributable earnings, is useful to unitholders as it provides a supplemental measure to assess performance, excluding the impact of mark-to-market gains (losses). After-tax cash earnings excludes certain realized investment losses to the extent unrealized losses on these investments were recognized prior to the combination with KPE on October 1, 2009.
Assets under management (“AUM”) represent the assets managed by KKR or by its strategic partners from which KKR is entitled to receive fees or a carried interest (either currently or upon deployment of capital) and general partner capital. We believe this measure is useful to unitholders as it provides additional insight into KKR’s capital raising activities and the overall activity in its investment funds and strategic partnerships. KKR calculates the amount of AUM as of any date as the sum of: (i) the fair value of the investments of KKR’s investment funds; (ii) uncalled capital commitments from these funds, including uncalled capital commitments from which KKR is currently not earning management fees or carried interest; (iii) the fair value of investments in KKR’s co-investment vehicles; (iv) the par value of outstanding CLOs (excluding CLOs wholly-owned by KKR); (vi) KKR’s pro-rata portion of the AUM managed by strategic partnerships in which KKR holds a minority ownership interest and (vi) the fair value of other assets managed by KKR. The pro-rata portion of the AUM managed by strategic partnerships is calculated based on KKR’s percentage ownership interest in such entities multiplied by such entity’s respective AUM. KKR’s definition of AUM is not based on any definition of AUM that may be set forth in the agreements governing the investment funds, vehicles or accounts that it manages or calculated pursuant to any regulatory definitions.
Book value is a measure of the net assets of KKR’s reportable
segments and is used by management primarily in assessing the unrealized
value of KKR’s investment portfolio, including carried interest, as well
as KKR’s overall liquidity position. We believe this measure is useful
to unitholders as it provides additional insight into the assets and
liabilities of KKR excluding the assets and liabilities that are
allocated to noncontrolling interest holders. Book value differs from
Cash and short-term investments represent cash and liquid short-term investments in high-grade, short-duration cash management strategies used by KKR to generate additional yield on our excess liquidity and is used by management in evaluating KKR’s liquidity position. We believe this measure is useful to unitholders as it provides additional insight into KKR’s available liquidity. Cash and short-term investments differ from cash and cash equivalents on a GAAP basis as a result of the inclusion of liquid short-term investments in cash and short-term investments.
Cash return on equity measures the amount of cash income generated as a percentage of capital invested in KKR’s business. Cash return on equity is calculated by dividing Cash Earnings on a trailing twelve-month basis by the average book value during the period.
Economic net income (loss) (“ENI”) is a measure of profitability
for KKR’s reportable segments and is used by management as an
alternative measurement of the operating and investment earnings of KKR
and its business segments. We believe this measure is useful to
unitholders as it provides additional insight into the overall
profitability of KKR’s businesses inclusive of carried interest and
related carry pool allocations and investment income. ENI is comprised
of total segment revenues less total segment expenses and certain
economic interests in KKR’s segments held by third parties. ENI differs
from net income (loss) on a GAAP basis as a result of: (i) the inclusion
of management fees earned from consolidated funds that were eliminated
in consolidation; (ii) the exclusion of fees and expenses of certain
consolidated entities; (iii) the exclusion of charges relating to the
amortization of intangible assets; (iv) the exclusion of non-cash
equity-based charges and other non-cash compensation charges borne by
KKR Holdings or incurred under the Equity Incentive Plan and other
securities that are exchangeable for common units of
Equity invested is the aggregate amount of equity capital that has been invested by KKR’s investment funds and carry-yielding co-investment vehicles and is used as a measure of investment activity for KKR and its business segments during a given period. We believe this measure is useful to unitholders as it provides additional insight into KKR’s investments among its investment funds and carry-yielding co-investment vehicles and replaces committed dollars invested. Such amounts include: (i) capital invested by fund investors and co-investors with respect to which KKR is entitled to a carried interest and (ii) capital invested by KKR’s investment funds, including investments made using investment financing arrangements.
Investments is a term used solely for purposes of financial presentation of a portion of KKR’s balance sheet and includes majority investments in subsidiaries that operate KKR’s asset management and broker-dealer businesses, including the general partner interests of KKR’s investment funds.
Fee paying AUM (“FPAUM”) represents only those assets under management of KKR or its strategic partners from which KKR receives management fees. We believe this measure is useful to unitholders as it provides additional insight into the capital base upon which KKR earns management fees. FPAUM is the sum of all of the individual fee bases that are used to calculate KKR’s fees and differs from AUM in the following respects: (i) assets and commitments from which KKR does not receive a fee are excluded (i.e., assets and commitments with respect to which it receives only carried interest or is otherwise not currently receiving a fee) and (ii) certain assets, primarily in its private equity funds, are reflected based on capital commitments and invested capital as opposed to fair value because fees are not impacted by changes in the fair value of underlying investments.
Gross dollars invested is the aggregate amount of capital that has been invested by all of KKR’s Public Markets investment vehicles in our private credit non-liquid strategies and is used as a measure of investment activity for a portion of KKR’s Public Markets segment in a given period. We believe this measure is useful to unitholders as it provides additional insight into KKR’s investment of capital across private credit non-liquid strategies for all the investment vehicles in the Public Markets segment. Such amounts include capital invested by fund investors and co-investors with respect to which KKR’s Public Markets business is entitled to a fee or carried interest.
Return on equity measures the amount of net income generated as a percentage of capital invested in KKR’s business. Return on equity is calculated by dividing After-tax Economic Net Income (Loss) on a trailing twelve-month basis by the average book value during the period.
Syndicated capital is generally the aggregate amount of capital in transactions originated by KKR and its investment funds and carry-yielding co-investment vehicles, which has been distributed to third parties in exchange for a fee. It does not include (i) capital invested in such transactions by KKR investment funds and carry-yielding co-investment vehicles, which is instead reported in equity invested and (ii) debt capital that is arranged as part of the acquisition financing of transactions originated by KKR investment funds. Syndicated capital is used as a measure of investment activity for KKR and its business segments during a given period, and we believe that this measure is useful to unitholders as it provides additional insight into levels of syndication activity in KKR’s Capital Markets segment and across its investment platform.
Uncalled commitments are used as a measure of unfunded capital commitments that KKR’s investment funds and carry-paying co-investment vehicles have received from partners to contribute capital to fund future investments. We believe this measure is useful to unitholders as it provides additional insight into the amount of capital that is available to KKR’s investment funds to make future investments. Uncalled commitments are not reduced for investments completed using fund-level investment financing arrangements.
KKR | ||||||||||||||||||||||||
EXHIBIT A |
||||||||||||||||||||||||
OTHER FINANCIAL INFORMATION (UNAUDITED) | ||||||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||||||
Quarter Ended | Year Ended | |||||||||||||||||||||||
December 31, 2015 | September 30, 2015 | December 31, 2014 | December 31, 2015 | December 31, 2014 | ||||||||||||||||||||
Fee Related Earnings |
||||||||||||||||||||||||
Total Management, Monitoring and Transaction Fees, Net | $ | 337,145 | $ | 244,888 | $ | 244,366 | $ | 1,142,050 | $ | 1,098,843 | ||||||||||||||
Less: Cash Compensation and Benefits | 121,036 | 87,680 | 86,035 | 409,992 | 380,581 | |||||||||||||||||||
Less: Occupancy and Related Charges | 16,666 | 15,720 | 14,383 | 62,657 | 57,787 | |||||||||||||||||||
Less: Other Operating expenses | 68,978 | 52,081 | 61,685 | 233,618 | 229,069 | |||||||||||||||||||
Plus: Expenses of Principal Activities Segment | 50,383 | 38,116 | 44,153 | 174,713 | 199,938 | |||||||||||||||||||
Fee Related Earnings (a) | 180,848 | 127,523 | 126,416 | 610,496 | 631,344 | |||||||||||||||||||
Plus: Net Interest and Dividends | 33,733 | 48,637 | 119,325 | 208,451 | 273,175 | |||||||||||||||||||
Plus: Depreciation and Amortization | 3,775 | 3,745 | 3,830 | 15,319 | 15,782 | |||||||||||||||||||
Plus: Core Interest Expense | 29,516 | 30,429 | 27,050 | 116,027 | 88,002 | |||||||||||||||||||
Less: Expenses of Principal Activities Segment | 50,383 | 38,116 | 44,153 | 174,713 | 199,938 | |||||||||||||||||||
Fee and Yield EBITDA (b) | 197,489 | 172,218 | 232,468 | 775,580 | 808,365 | |||||||||||||||||||
Plus: Realized Performance Income, net | 128,654 | 159,702 | 125,938 | 628,083 | 744,879 | |||||||||||||||||||
Plus: Net Realized Gains (Losses) | (81,343 | ) | 61,439 | 62,219 | 337,023 | 628,403 | ||||||||||||||||||
Total EBITDA | $ | 244,800 | $ | 393,359 | $ | 420,625 | $ | 1,740,686 | $ | 2,181,647 | ||||||||||||||
Core Interest Expense |
||||||||||||||||||||||||
GAAP Interest Expense | $ | 170,282 | $ | 151,554 | $ | 119,846 | $ | 573,226 | $ | 317,192 | ||||||||||||||
Less: Interest expense related to debt obligations from investment financing arrangements |
118,108 | 98,873 | 73,315 | 370,141 | 182,283 | |||||||||||||||||||
Segment Interest Expense | 52,174 | 52,681 | 46,531 | 203,085 | 134,909 | |||||||||||||||||||
Less: Interest Expense related to debt obligations from KFN and other | 22,658 | 22,252 | 19,481 | 87,058 | 46,907 | |||||||||||||||||||
Core Interest Expense (c) | $ | 29,516 | $ | 30,429 | $ | 27,050 | $ | 116,027 | $ | 88,002 |
________________________________________________________________________________________________________________________________________________________
(a) | Fee related earnings (“FRE”) is a measure of the operating earnings of KKR and its business segments before performance income, related performance income compensation and investment income. KKR believes this measure is useful to unitholders as it provides additional insight into the operating profitability of KKR’s fee generating management companies and capital markets businesses. | |
(b) | Fee and Yield EBITDA is used by management as another measure of the cash earnings of KKR and its business segments investment income. We believe this measure is also useful to unitholders as it provides insight into the amount of KKR’s cash earnings before the impact of interest expense, significant portions of which tend to be more recurring than realized carried interest and realized investment income from quarter to quarter. | |
(c) | Core interest expense is used by management as an alternative measurement of interest expense incurred by KKR on a segment basis and excludes interest expense related to debt obligations from investment financing arrangements related to certain of KKR’s investment funds, investment vehicles and principal investments and also excludes interest expense incurred by KFN. The financing arrangements excluded from core interest expense are not direct obligations of the general partners of KKR’s private equity funds or its management companies, and in the case of debt obligations of KFN are non-recourse to KKR beyond the assets of KFN. KKR believes this measure is useful to unitholders as it provides an indication of the amount of interest expense borne by KKR excluding interest expense that is allocated to KKR’s investment funds, other noncontrolling interest holders and KFN. Additionally, we believe this measure is useful for analyzing KKR’s ability to service its debt obligations other than the debt obligations of KFN. | |
KKR | |||
EXHIBIT B |
|||
KKR’S PORTION OF TOTAL UNCALLED COMMITMENTS TO ITS INVESTMENT FUNDS (UNAUDITED) | |||
(Amounts in thousands) | |||
Uncalled
Commitments |
|||
Private Markets |
|||
European Fund IV | $ | 184,700 | |
Energy Income and Growth Fund | 147,100 | ||
Global Infrastructure Investors II | 110,900 | ||
North America Fund XI | 100,500 | ||
Real Estate Partners Americas | 97,300 | ||
European Fund III | 66,300 | ||
Real Estate Partners Europe | 64,700 | ||
Asian Fund II | 50,900 | ||
2006 Fund | 22,700 | ||
Co-Investment Vehicles | 69,600 | ||
Other Private Markets Funds | 10,600 | ||
Total Private Markets Commitments | 925,300 | ||
Public Markets |
|||
Special Situations Fund | 14,900 | ||
Special Situations Fund II | 195,100 | ||
Mezzanine Fund | 6,500 | ||
Lending Partners | 13,900 | ||
Lending Partners II | 33,300 | ||
Lending Partners Europe | 39,600 | ||
Other Alternative Credit Vehicles | 125,200 | ||
Total Public Markets Commitments | 428,500 | ||
Total Uncalled Commitments | $ | 1,353,800 | |
KKR | ||||||||||||
EXHIBIT C |
||||||||||||
RECONCILIATION OF NET INCOME (LOSS) ATTRIBUTABLE TO KKR & CO. L.P. PER COMMON UNIT – BASIC (GAAP BASIS) | ||||||||||||
TO AFTER TAX ENI PER ADJUSTED UNIT (UNAUDITED) | ||||||||||||
(Amounts in thousands, except common unit and per common unit amounts) | ||||||||||||
Quarter Ended | ||||||||||||
December 31, 2015 | September 30, 2015 | December 31, 2014 | ||||||||||
Net income (loss) attributable to |
$ | 0.07 | $ | (0.42 | ) | $ | 0.00 | |||||
Weighted Average Common Units Outstanding – Basic | 461,374,013 | 452,165,697 | 431,432,521 | |||||||||
Net income (loss) attributable to |
32,257 | (190,588 | ) | (583 | ) | |||||||
Plus: Net income (loss) attributable to noncontrolling
interests held by KKR Holdings L.P. |
35,060 | (166,078 | ) | (3,365 | ) | |||||||
Plus: Non-cash equity-based charges | 47,730 | 67,821 | 55,968 | |||||||||
Plus: Amortization of intangibles and other, net | 2,293 | 10,186 | 28,048 | |||||||||
Plus: Income tax (benefit) | 27,341 | (7,390 | ) | 6,524 | ||||||||
Economic Net Income (Loss) | 144,681 | (286,049 | ) | 86,592 | ||||||||
Less: Equity-based compensation associated with the |
37,376 | 48,252 | 36,607 | |||||||||
Pre-tax Economic Net Income (Loss) | 107,305 | (334,301 | ) | 49,985 | ||||||||
Less: Provision for income tax (benefit) | 36,797 | (19,505 | ) | 3,951 | ||||||||
After-tax Economic Net Income (Loss) | 70,508 | (314,796 | ) | 46,034 | ||||||||
Weighted Average Adjusted Units | 852,446,702 | 851,704,303 | 838,067,975 | |||||||||
After-tax Economic Net Income (Loss) Per Adjusted Unit | $ | 0.08 | $ | (0.37 | ) | $ | 0.05 | |||||
Year Ended | ||||||||||||
December 31, 2015 | December 31, 2014 | |||||||||||
Net income (loss) attributable to |
$ | 1.09 | $ | 1.25 | ||||||||
Weighted Average Common Units Outstanding – Basic | 448,884,185 | 381,092,394 | ||||||||||
Net income (loss) attributable to |
488,482 | 477,611 | ||||||||||
Plus: Net income (loss) attributable to noncontrolling |
433,693 | 585,135 | ||||||||||
Plus: Non-cash equity-based charges | 261,579 | 310,403 | ||||||||||
Plus: Amortization of intangibles and other, net | 47,599 | 290,348 | ||||||||||
Plus: Income tax (benefit) | 66,636 | 63,669 | ||||||||||
Economic Net Income (Loss) | 1,297,989 | 1,727,166 | ||||||||||
Less: Equity-based compensation associated with the |
186,346 | 158,927 | ||||||||||
Pre-tax Economic Net Income (Loss) | 1,111,643 | 1,568,239 | ||||||||||
Less: Provision for income tax (benefit) | 83,363 | 94,223 | ||||||||||
After-tax Economic Net Income (Loss) | 1,028,280 | 1,474,016 | ||||||||||
Weighted Average Adjusted Units | 851,099,066 | 800,247,988 | ||||||||||
After-tax Economic Net Income (Loss) Per Adjusted Unit | $ | 1.21 | $ | 1.84 | ||||||||
KKR | ||||||||||||
EXHIBIT C (CONTINUED) |
||||||||||||
RECONCILIATION OF NET INCOME (LOSS) ATTRIBUTABLE TO KKR & CO. L.P. (GAAP BASIS) | ||||||||||||
TO ECONOMIC NET INCOME (LOSS), FEE RELATED EARNINGS, FEE AND
YIELD EBITDA, AFTER TAX CASH EARNINGS AND |
||||||||||||
(Amounts in thousands) | ||||||||||||
Quarter Ended | ||||||||||||
December 31, 2015 | September 30, 2015 | December 31, 2014 | ||||||||||
Net income (loss) attributable to |
$ | 32,257 | $ | (190,588 | ) | $ | (583 | ) | ||||
Plus: Net income (loss) attributable to noncontrolling
interests held by KKR Holdings L.P. |
35,060 | (166,078 | ) | (3,365 | ) | |||||||
Plus: Non-cash equity-based charges | 47,730 | 67,821 | 55,968 | |||||||||
Plus: Amortization of intangibles and other, net | 2,293 | 10,186 | 28,048 | |||||||||
Plus: Income tax (benefit) | 27,341 | (7,390 | ) | 6,524 | ||||||||
Economic Net Income (Loss) | 144,681 | (286,049 | ) | 86,592 | ||||||||
Plus: Income attributable to segment noncontrolling interests | 5,100 | 2,902 | 3,349 | |||||||||
Less: Total investment income (loss) | (176,375 | ) | (274,384 | ) | (142,872 | ) | ||||||
Less: Net performance income (loss) | 195,691 | (98,170 | ) | 150,550 | ||||||||
Plus: Expenses of Principal Activities Segment | 50,383 | 38,116 | 44,153 | |||||||||
Fee Related Earnings | 180,848 | 127,523 | 126,416 | |||||||||
Plus: Net interest and dividends | 33,733 | 48,637 | 119,325 | |||||||||
Plus: Depreciation and amortization | 3,775 | 3,745 | 3,830 | |||||||||
Plus: Core interest expense | 29,516 | 30,429 | 27,050 | |||||||||
Less: Expenses of Principal Activities Segment | 50,383 | 38,116 | 44,153 | |||||||||
Fee and Yield EBITDA | 197,489 | 172,218 | 232,468 | |||||||||
Less: Depreciation and amortization | 3,775 | 3,745 | 3,830 | |||||||||
Less: Core interest expense | 29,516 | 30,429 | 27,050 | |||||||||
Plus: Realized performance income (loss), net | 128,654 | 159,702 | 125,938 | |||||||||
Plus: Net realized gains (losses) | (81,343 | ) | 61,439 | 62,219 | ||||||||
Less: Corporate and local income taxes paid | 37,791 | 25,173 | 25,183 | |||||||||
Less: Income attributable to segment noncontrolling interests | 5,100 | 2,902 | 3,349 | |||||||||
After-tax Cash Earnings | 168,618 | 331,110 | 361,213 | |||||||||
Plus: Depreciation and amortization | 3,775 | 3,745 | 3,830 | |||||||||
Plus: Core interest expense | 29,516 | 30,429 | 27,050 | |||||||||
Plus: Corporate and local income taxes paid | 37,791 | 25,173 | 25,183 | |||||||||
Plus: Income attributable to segment noncontrolling interests | 5,100 | 2,902 | 3,349 | |||||||||
Total EBITDA | $ | 244,800 | $ | 393,359 | $ | 420,625 | ||||||
Year Ended | ||||||||||||
December 31, 2015 | December 31, 2014 | |||||||||||
Net income (loss) attributable to |
$ | 488,482 | $ | 477,611 | ||||||||
Plus: Net income (loss) attributable to noncontrolling
interests held by KKR Holdings L.P. |
433,693 | 585,135 | ||||||||||
Plus: Non-cash equity-based charges | 261,579 | 310,403 | ||||||||||
Plus: Amortization of intangibles and other, net | 47,599 | 290,348 | ||||||||||
Plus: Income tax (benefit) | 66,636 | 63,669 | ||||||||||
Economic Net Income (Loss) | 1,297,989 | 1,727,166 | ||||||||||
Plus: Income attributable to segment noncontrolling interests | 16,007 | 14,946 | ||||||||||
Less: Total investment income (loss) | 153,512 | 505,153 | ||||||||||
Less: Net performance income (loss) | 724,701 | 805,553 | ||||||||||
Plus: Expenses of Principal Activities Segment | 174,713 | 199,938 | ||||||||||
Fee Related Earnings | 610,496 | 631,344 | ||||||||||
Plus: Net interest and dividends | 208,451 | 273,175 | ||||||||||
Plus: Depreciation and amortization | 15,319 | 15,782 | ||||||||||
Plus: Core interest expense | 116,027 | 88,002 | ||||||||||
Less: Expenses of Principal Activities Segment | 174,713 | 199,938 | ||||||||||
Fee and Yield EBITDA | 775,580 | 808,365 | ||||||||||
Less: Depreciation and amortization | 15,319 | 15,782 | ||||||||||
Less: Core interest expense | 116,027 | 88,002 | ||||||||||
Plus: Realized performance income (loss), net | 628,083 | 744,879 | ||||||||||
Plus: Net realized gains (losses) | 337,023 | 628,403 | ||||||||||
Less: Corporate and local income taxes paid | 140,677 | 131,081 | ||||||||||
Less: Income attributable to segment noncontrolling interests | 16,007 | 14,946 | ||||||||||
After-tax Cash Earnings | 1,452,656 | 1,931,836 | ||||||||||
Plus: Depreciation and amortization | 15,319 | 15,782 | ||||||||||
Plus: Core interest expense | 116,027 | 88,002 | ||||||||||
Plus: Corporate and local income taxes paid | 140,677 | 131,081 | ||||||||||
Plus: Income attributable to segment noncontrolling interests | 16,007 | 14,946 | ||||||||||
Total EBITDA | $ | 1,740,686 | $ | 2,181,647 | ||||||||
KKR | |||||||
EXHIBIT C (CONTINUED) |
|||||||
RECONCILIATION OF KKR & CO. L.P. PARTNERS’ CAPITAL (GAAP BASIS) | |||||||
TO BOOK VALUE AND BOOK VALUE PER ADJUSTED UNIT (UNAUDITED) | |||||||
(Amounts in thousands, except common unit and per common unit amounts) | |||||||
As of | As of | ||||||
December 31, 2015 | December 31, 2014 | ||||||
|
$ | 5,547,182 | $ | 5,382,691 | |||
Noncontrolling interests held by KKR Holdings L.P. | 4,347,153 | 4,661,679 | |||||
Equity impact of KKR Management Holdings Corp. and other | 84,894 | 73,855 | |||||
Book value | 9,979,229 | 10,118,225 | |||||
Adjusted units | 847,083,373 | 838,020,974 | |||||
Book value per adjusted unit | $ | 11.78 | $ | 12.07 | |||
RECONCILIATION OF CASH AND CASH EQUIVALENTS (GAAP BASIS) | |||||||
TO CASH AND SHORT-TERM INVESTMENTS (UNAUDITED) | |||||||
(Amounts in thousands) | |||||||
As of | As of | ||||||
December 31, 2015 | December 31, 2014 | ||||||
Cash and cash equivalents | $ | 1,047,740 | $ | 918,080 | |||
Liquid short-term investments | 239,910 | 203,305 | |||||
Cash and short-term investments | $ | 1,287,650 | $ | 1,121,385 | |||
KKR | ||||||||
EXHIBIT D |
||||||||
RECONCILIATION OF WEIGHTED AVERAGE GAAP COMMON UNITS OUTSTANDING (UNAUDITED) | ||||||||
The following table provides a reconciliation of KKR’s Weighted Average GAAP Common Units Outstanding to Weighted Average Adjusted Units: | ||||||||
Quarter Ended | ||||||||
December 31, 2015 | September 30, 2015 | December 31, 2014 | ||||||
Weighted Average GAAP Common Units Outstanding – Basic | 461,374,013 | 452,165,697 | 431,432,521 | |||||
Adjustments: | ||||||||
Weighted Average Unvested Common Units and Other Securities (a) | 28,330,774 | — | (c) | 27,550,338 | ||||
Weighted Average GAAP Common Units Outstanding – Diluted | 489,704,787 | 452,165,697 | 458,982,859 | |||||
Adjustments: | ||||||||
Weighted Average KKR Holdings Units (b) | 362,741,915 | 365,717,358 | 379,085,116 | |||||
Weighted Average Unvested Common Units and Other Securities (a) | — | 33,821,248 | (c) | — | ||||
Weighted Average Adjusted Units | 852,446,702 | 851,704,303 | 838,067,975 | |||||
Year Ended | ||||||||
December 31, 2015 | December 31, 2014 | |||||||
Weighted Average GAAP Common Units Outstanding – Basic | 448,884,185 | 381,092,394 | ||||||
Adjustments: | ||||||||
Weighted Average Unvested Common Units and Other Securities (a) | 33,815,009 | 30,956,881 | ||||||
Weighted Average GAAP Common Units Outstanding – Diluted | 482,699,194 | 412,049,275 | ||||||
Adjustments: | ||||||||
Weighted Average KKR Holdings Units (b) | 368,399,872 | 388,198,713 | ||||||
Weighted Average Adjusted Units | 851,099,066 | 800,247,988 | ||||||
RECONCILIATION OF GAAP COMMON UNITS OUTSTANDING (UNAUDITED) | ||||||||
The following table provides a reconciliation of KKR’s GAAP Common
Units Outstanding to Adjusted Units, Adjusted Units Eligible for
Distribution and |
||||||||
As of | As of | |||||||
December 31, 2015 | December 31, 2014 | |||||||
GAAP Common Units Outstanding – Basic | 457,834,875 | 433,330,540 | ||||||
Unvested Common Units and Other Securities (a) | 27,901,910 | 27,493,685 | ||||||
GAAP Common Units Outstanding – Diluted | 485,736,785 | 460,824,225 | ||||||
Adjustments: | ||||||||
KKR Holdings Units (b) | 361,346,588 | 377,196,749 | ||||||
Adjusted Units | 847,083,373 | 838,020,974 | ||||||
Adjustments: | ||||||||
Unvested Common Units and Unvested Other Securities (a) | (24,060,289 | ) | (24,373,441 | ) | ||||
Adjusted Units Eligible for Distribution | 823,023,084 | 813,647,533 | ||||||
Adjustments: | ||||||||
Vested Other Securities | (3,841,621 | ) | (3,120,244 | ) | ||||
Outstanding Adjusted Units | 819,181,463 | 810,527,289 |
______________________________________________________________________________________________________________________________________________________
(a) |
Represents equity awards granted under the |
|
(b) |
Common units that may be issued by |
|
(c) | Unvested common units and other securities are excluded from the calculation of diluted earnings per common unit on a GAAP basis because inclusion of such unvested common units and other securities would be anti-dilutive (decrease the loss per common unit). |
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Media Contacts
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Miles Radcliffe-Trenner
Telephone: +1 (212) 750-8300
Email: media@kkr.com
Investor Relations
Craig Larson
Telephone: +1 (877) 610-4910
Outside US: +1 (212) 230-9410
Facsimile: +1 (212) 750-0003
Email: Investor-Relations@kkr.com