Date of Report (Date of earliest event reported): February 9, 2017 | ||||
KKR & CO. L.P. KKR FINANCIAL HOLDINGS LLC (Exact name of registrant as specified in its charter) | ||||
Delaware (State or other jurisdiction of incorporation) | 001-34820 001-33437 (Commission File Number) | 26-0426107 11-3801844 (IRS Employer Identification No.) | ||
9 West 57th Street, Suite 4200, New York, NY 555 California Street, 50th Floor, San Francisco, CA (Address of principal executive offices) | 10019 94104 (Zip Code) | |||
(212) 750-8300 (415) 315-3620 (Registrant's telephone number, including area code) | ||||
NOT APPLICABLE (Former name or former address, if changed since last report) | ||||
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit No. | Description |
Exhibit 99.1 | Press release of KKR & Co. L.P., dated February 9, 2017, announcing its results for the quarter and year ended December 31, 2016 (This exhibit is furnished and not filed) |
KKR & CO. L.P. By: KKR Management LLC, its general partner | |
By: /s/ William J. Janetschek Name: William J. Janetschek Title: Chief Financial Officer | |
KKR FINANCIAL HOLDINGS LLC | |
Date: February 9, 2017 | By: /s/ Thomas N. Murphy Name: Thomas N. Murphy Title: Chief Financial Officer |
Exhibit No. | Description |
Exhibit 99.1 | Press release of KKR & Co. L.P., dated February 9, 2017, announcing its results for the quarter and year ended December 31, 2016 (This exhibit is furnished and not filed) |
• | Economic Net Income was $383 million for the fourth quarter and $794 million for the year ended December 31, 2016, driven by strong realized performance income |
• | Private Markets monetization activity was the primary driver of After-tax Distributable Earnings of $390 million for the fourth quarter and $1,528 million for the year ended December 31, 2016 |
• | Assets Under Management and Fee Paying Assets Under Management were $130 billion and $101 billion as of December 31, 2016, respectively, up 8% and 11%, respectively, compared to December 31, 2015 |
• | Book value was $9.8 billion as of December 31, 2016, or $12.15 per outstanding adjusted unit |
• | KKR Prisma and PAAMCO to form Strategic Partnership to create one of the largest firms in the liquid alternatives industry(2) |
• | KKR's regular distribution per common unit of $0.16 was declared for the quarter ended December 31, 2016 |
• | An incremental $250 million has been authorized to repurchase common units. Additionally, beginning with the results for the quarter ending March 31, 2017, KKR intends to increase its regular quarterly distribution to holders of its common units from $0.16 to $0.17 per common unit per quarter. |
KKR | ||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS (GAAP BASIS - UNAUDITED) | ||||||||||||||||
(Amounts in thousands, except common unit and per common unit amounts) | ||||||||||||||||
Quarter Ended | Year Ended | |||||||||||||||
December 31, 2016 | December 31, 2015 | December 31, 2016 | December 31, 2015 | |||||||||||||
Revenues | ||||||||||||||||
Fees and Other | $ | 481,475 | $ | 307,923 | $ | 1,908,093 | $ | 1,043,768 | ||||||||
Expenses | ||||||||||||||||
Compensation and Benefits | 283,751 | 306,942 | 1,063,813 | 1,180,591 | ||||||||||||
Occupancy and Related Charges | 15,463 | 17,295 | 64,622 | 65,683 | ||||||||||||
General, Administrative and Other | 153,602 | 200,858 | 567,039 | 624,951 | ||||||||||||
Total Expenses | 452,816 | 525,095 | 1,695,474 | 1,871,225 | ||||||||||||
Investment Income (Loss) | ||||||||||||||||
Net Gains (Losses) from Investment Activities | 333,808 | 1,197,879 | 342,897 | 4,672,627 | ||||||||||||
Dividend Income | 19,866 | 140,397 | 187,853 | 850,527 | ||||||||||||
Interest Income | 268,615 | 320,569 | 1,021,809 | 1,219,197 | ||||||||||||
Interest Expense | (182,141 | ) | (170,282 | ) | (789,953 | ) | (573,226 | ) | ||||||||
Total Investment Income (Loss) | 440,148 | 1,488,563 | 762,606 | 6,169,125 | ||||||||||||
Income (Loss) Before Taxes | 468,807 | 1,271,391 | 975,225 | 5,341,668 | ||||||||||||
Income Tax (Benefit) | 5,800 | 27,341 | 24,561 | 66,636 | ||||||||||||
Net Income (Loss) | 463,007 | 1,244,050 | 950,664 | 5,275,032 | ||||||||||||
Net Income (Loss) Attributable to | ||||||||||||||||
Redeemable Noncontrolling Interests | (13,092 | ) | 7,371 | (8,476 | ) | (4,512 | ) | |||||||||
Net Income (Loss) Attributable to | ||||||||||||||||
Noncontrolling Interests | 296,789 | 1,204,422 | 649,833 | 4,791,062 | ||||||||||||
Net Income (Loss) Attributable to KKR & Co. L.P. | 179,310 | 32,257 | 309,307 | 488,482 | ||||||||||||
Net Income (Loss) Attributable to Series A Preferred Unitholders | 5,822 | — | 17,337 | — | ||||||||||||
Net Income (Loss) Attributable to Series B Preferred Unitholders | 2,519 | — | 4,898 | — | ||||||||||||
Net Income (Loss) Attributable to KKR & Co. L.P. Common Unitholders | $ | 170,969 | $ | 32,257 | $ | 287,072 | $ | 488,482 | ||||||||
Net Income (Loss) Attributable to KKR & Co. L.P. Per Common Unit | ||||||||||||||||
Basic | $ | 0.38 | $ | 0.07 | $ | 0.64 | $ | 1.09 | ||||||||
Diluted | $ | 0.35 | $ | 0.07 | $ | 0.59 | $ | 1.01 | ||||||||
Weighted Average Common Units Outstanding | ||||||||||||||||
Basic | 451,154,845 | 461,374,013 | 448,905,126 | 448,884,185 | ||||||||||||
Diluted | 484,312,804 | 489,704,787 | 483,431,048 | 482,699,194 | ||||||||||||
KKR | ||||||||
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (GAAP BASIS - UNAUDITED) | ||||||||
(Amounts in thousands, except common unit and per common unit amounts) | ||||||||
As of December 31, 2016 | As of December 31, 2015 | |||||||
Assets | ||||||||
Cash and Cash Equivalents | $ | 2,508,902 | $ | 1,047,740 | ||||
Investments | 31,409,765 | 65,305,931 | ||||||
Other | 5,084,230 | 4,688,668 | ||||||
Total Assets | 39,002,897 | 71,042,339 | ||||||
Liabilities and Equity | ||||||||
Debt Obligations | 18,544,075 | 18,714,597 | ||||||
Other Liabilities | 3,340,739 | 2,860,157 | ||||||
Total Liabilities | 21,884,814 | 21,574,754 | ||||||
Redeemable Noncontrolling Interests | 632,348 | 188,629 | ||||||
Equity | ||||||||
Series A Preferred Units | 332,988 | — | ||||||
Series B Preferred Units | 149,566 | — | ||||||
KKR & Co. L.P. Capital - Common Unitholders | 5,457,279 | 5,547,182 | ||||||
Noncontrolling Interests | 10,545,902 | 43,731,774 | ||||||
Total Equity | 16,485,735 | 49,278,956 | ||||||
Total Liabilities and Equity | $ | 39,002,897 | $ | 71,042,339 | ||||
KKR & Co. L.P. Capital Per Outstanding Common Unit - Basic | $ | 12.06 | $ | 12.12 |
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 | |||||||||||||||||||
December 31, 2016 | September 30, 2016 | December 31, 2015 | December 31, 2016 | December 31, 2015 | ||||||||||||||||
Segment Revenues | ||||||||||||||||||||
Management, Monitoring and Transaction Fees, Net | ||||||||||||||||||||
Management Fees | $ | 198,137 | $ | 201,508 | $ | 195,072 | $ | 797,862 | $ | 732,033 | ||||||||||
Monitoring Fees | 12,228 | 11,091 | 94,128 | 64,354 | 264,643 | |||||||||||||||
Transaction Fees | 68,271 | 111,354 | 107,320 | 344,274 | 364,994 | |||||||||||||||
Fee Credits | (22,356 | ) | (47,392 | ) | (59,375 | ) | (131,628 | ) | (219,620 | ) | ||||||||||
Total Management, Monitoring and Transaction Fees, Net | 256,280 | 276,561 | 337,145 | 1,074,862 | 1,142,050 | |||||||||||||||
Performance Income (Loss) | ||||||||||||||||||||
Realized Incentive Fees | 23,449 | 3,659 | 7,209 | 33,346 | 19,647 | |||||||||||||||
Realized Carried Interest | 503,176 | 350,469 | 207,211 | 1,256,208 | 1,027,154 | |||||||||||||||
Unrealized Carried Interest | (285,616 | ) | 70,351 | 112,388 | (420,372 | ) | 163,545 | |||||||||||||
Total Performance Income (Loss) | 241,009 | 424,479 | 326,808 | 869,182 | 1,210,346 | |||||||||||||||
Investment Income (Loss) | ||||||||||||||||||||
Net Realized Gains (Losses) | 969 | 170,078 | (81,343 | ) | 371,563 | 337,023 | ||||||||||||||
Net Unrealized Gains (Losses) | 141,276 | 136,740 | (128,765 | ) | (584,423 | ) | (391,962 | ) | ||||||||||||
Total Realized and Unrealized | 142,245 | 306,818 | (210,108 | ) | (212,860 | ) | (54,939 | ) | ||||||||||||
Interest Income and Dividends | 69,101 | 71,185 | 85,907 | 322,857 | 411,536 | |||||||||||||||
Interest Expense | (44,264 | ) | (47,506 | ) | (52,174 | ) | (188,761 | ) | (203,085 | ) | ||||||||||
Net Interest and Dividends | 24,837 | 23,679 | 33,733 | 134,096 | 208,451 | |||||||||||||||
Total Investment Income (Loss) | 167,082 | 330,497 | (176,375 | ) | (78,764 | ) | 153,512 | |||||||||||||
Total Segment Revenues | 664,371 | 1,031,537 | 487,578 | 1,865,280 | 2,505,908 | |||||||||||||||
Segment Expenses | ||||||||||||||||||||
Compensation and Benefits | ||||||||||||||||||||
Cash Compensation and Benefits | 95,260 | 101,967 | 121,036 | 395,016 | 409,992 | |||||||||||||||
Realized Performance Income Compensation | 215,650 | 159,151 | 85,766 | 538,321 | 418,718 | |||||||||||||||
Unrealized Performance Income Compensation | (112,786 | ) | 29,393 | 45,351 | (161,510 | ) | 66,927 | |||||||||||||
Total Compensation and Benefits | 198,124 | 290,511 | 252,153 | 771,827 | 895,637 | |||||||||||||||
Occupancy and Related Charges | 14,914 | 15,877 | 16,666 | 62,400 | 62,657 | |||||||||||||||
Other Operating Expenses | 67,806 | 55,123 | 68,978 | 234,348 | 233,618 | |||||||||||||||
Total Segment Expenses | 280,844 | 361,511 | 337,797 | 1,068,575 | 1,191,912 | |||||||||||||||
Income (Loss) attributable to noncontrolling interests | 334 | 760 | 5,100 | 2,336 | 16,007 | |||||||||||||||
Economic Net Income (Loss) | 383,193 | 669,266 | 144,681 | 794,369 | 1,297,989 | |||||||||||||||
Equity-based Compensation | 37,970 | 50,270 | 37,376 | 186,227 | 186,346 | |||||||||||||||
Pre-tax Economic Net Income (Loss) | 345,223 | 618,996 | 107,305 | 608,142 | 1,111,643 | |||||||||||||||
Provision for Income Tax (Benefit) | (2,335 | ) | 12,611 | 36,797 | 10,282 | 83,363 | ||||||||||||||
Preferred Distributions | 8,341 | 8,201 | — | 22,235 | — | |||||||||||||||
After-tax Economic Net Income (Loss) | $ | 339,217 | $ | 598,184 | $ | 70,508 | $ | 575,625 | $ | 1,028,280 | ||||||||||
After-tax Economic Net Income (Loss) Per Adjusted Unit | $ | 0.40 | $ | 0.71 | $ | 0.08 | $ | 0.68 | $ | 1.21 | ||||||||||
Weighted Average Adjusted Units (Fully Diluted Basis) | 839,268,845 | 837,504,674 | 852,446,702 | 841,304,836 | 851,099,066 | |||||||||||||||
Other Operating Measures (1): | ||||||||||||||||||||
Fee Related Earnings | $ | 116,407 | $ | 142,253 | $ | 180,848 | $ | 537,419 | $ | 610,496 | ||||||||||
After-tax Distributable Earnings | $ | 389,874 | $ | 461,498 | $ | 168,618 | $ | 1,527,696 | $ | 1,452,656 | ||||||||||
Assets Under Management | $ | 129,555,700 | $ | 131,101,800 | $ | 119,544,300 | $ | 129,555,700 | $ | 119,544,300 | ||||||||||
Fee Paying Assets Under Management | $ | 101,473,400 | $ | 93,153,800 | $ | 91,720,500 | $ | 101,473,400 | $ | 91,720,500 | ||||||||||
Capital Invested and Syndicated Capital | $ | 2,461,500 | $ | 4,392,000 | $ | 3,382,200 | $ | 12,199,700 | $ | 12,393,300 | ||||||||||
Uncalled Commitments | $ | 37,791,300 | $ | 38,267,300 | $ | 29,457,100 | $ | 37,791,300 | $ | 29,457,100 | ||||||||||
KKR | ||||||||||||||||||||
SCHEDULE OF SEGMENT REVENUES AND OTHER SELECTED FINANCIAL INFORMATION (UNAUDITED) | ||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||
PRIVATE MARKETS | ||||||||||||||||||||
Quarter Ended | Year Ended | |||||||||||||||||||
December 31, 2016 | September 30, 2016 | December 31, 2015 | December 31, 2016 | December 31, 2015 | ||||||||||||||||
Segment Revenues | ||||||||||||||||||||
Management, Monitoring and Transaction Fees, Net | ||||||||||||||||||||
Management Fees | $ | 112,046 | $ | 117,795 | $ | 122,703 | $ | 466,422 | $ | 465,575 | ||||||||||
Monitoring Fees | 12,228 | 11,091 | 94,128 | 64,354 | 264,643 | |||||||||||||||
Transaction Fees | 18,581 | 53,223 | 40,000 | 132,602 | 144,652 | |||||||||||||||
Fee Credits | (10,537 | ) | (37,127 | ) | (51,567 | ) | (103,579 | ) | (195,025 | ) | ||||||||||
Total Management, Monitoring and Transaction Fees, Net | 132,318 | 144,982 | 205,264 | 559,799 | 679,845 | |||||||||||||||
Performance Income (Loss) | ||||||||||||||||||||
Realized Incentive Fees | — | — | — | — | — | |||||||||||||||
Realized Carried Interest | 503,176 | 350,469 | 207,211 | 1,252,370 | 1,018,201 | |||||||||||||||
Unrealized Carried Interest | (284,674 | ) | 53,339 | 137,438 | (416,060 | ) | 182,628 | |||||||||||||
Total Performance Income (Loss) | 218,502 | 403,808 | 344,649 | 836,310 | 1,200,829 | |||||||||||||||
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 | $ | 350,820 | $ | 548,790 | $ | 549,913 | $ | 1,396,109 | $ | 1,880,674 | ||||||||||
Assets Under Management | $ | 73,815,500 | $ | 75,181,600 | $ | 66,028,600 | $ | 73,815,500 | $ | 66,028,600 | ||||||||||
Fee Paying Assets Under Management | $ | 52,204,800 | $ | 44,010,300 | $ | 45,307,400 | $ | 52,204,800 | $ | 45,307,400 | ||||||||||
Capital Invested (1) | $ | 868,700 | $ | 2,370,600 | $ | 1,464,000 | $ | 6,344,000 | $ | 6,279,500 | ||||||||||
Uncalled Commitments | $ | 31,478,700 | $ | 31,839,100 | $ | 22,766,300 | $ | 31,478,700 | $ | 22,766,300 |
PUBLIC MARKETS | ||||||||||||||||||||
Quarter Ended | Year Ended | |||||||||||||||||||
December 31, 2016 | September 30, 2016 | December 31, 2015 | December 31, 2016 | December 31, 2015 | ||||||||||||||||
Segment Revenues | ||||||||||||||||||||
Management, Monitoring and Transaction Fees, Net | ||||||||||||||||||||
Management Fees | $ | 86,091 | $ | 83,713 | $ | 72,369 | $ | 331,440 | $ | 266,458 | ||||||||||
Monitoring Fees | — | — | — | — | — | |||||||||||||||
Transaction Fees | 12,387 | 10,748 | 8,183 | 30,155 | 28,872 | |||||||||||||||
Fee Credits | (11,819 | ) | (10,265 | ) | (7,808 | ) | (28,049 | ) | (24,595 | ) | ||||||||||
Total Management, Monitoring and Transaction Fees, Net | 86,659 | 84,196 | 72,744 | 333,546 | 270,735 | |||||||||||||||
Performance Income (Loss) | ||||||||||||||||||||
Realized Incentive Fees | 23,449 | 3,659 | 7,209 | 33,346 | 19,647 | |||||||||||||||
Realized Carried Interest | — | — | — | 3,838 | 8,953 | |||||||||||||||
Unrealized Carried Interest | (942 | ) | 17,012 | (25,050 | ) | (4,312 | ) | (19,083 | ) | |||||||||||
Total Performance Income (Loss) | 22,507 | 20,671 | (17,841 | ) | 32,872 | 9,517 | ||||||||||||||
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 | $ | 109,166 | $ | 104,867 | $ | 54,903 | $ | 366,418 | $ | 280,252 | ||||||||||
Assets Under Management | $ | 55,740,200 | $ | 55,920,200 | $ | 53,515,700 | $ | 55,740,200 | $ | 53,515,700 | ||||||||||
Fee Paying Assets Under Management | $ | 49,268,600 | $ | 49,143,500 | $ | 46,413,100 | $ | 49,268,600 | $ | 46,413,100 | ||||||||||
Capital Invested (1) | $ | 1,592,800 | $ | 1,484,400 | $ | 1,742,600 | $ | 4,642,200 | $ | 5,244,900 | ||||||||||
Uncalled Commitments | $ | 6,312,600 | $ | 6,428,200 | $ | 6,690,800 | $ | 6,312,600 | $ | 6,690,800 |
KKR | ||||||||||||||||||||
SCHEDULE OF SEGMENT REVENUES AND OTHER SELECTED FINANCIAL INFORMATION (UNAUDITED) | ||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||
CAPITAL MARKETS | ||||||||||||||||||||
Quarter Ended | Year Ended | |||||||||||||||||||
December 31, 2016 | September 30, 2016 | December 31, 2015 | December 31, 2016 | December 31, 2015 | ||||||||||||||||
Segment Revenues | ||||||||||||||||||||
Management, Monitoring and Transaction Fees, Net | ||||||||||||||||||||
Management Fees | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Monitoring Fees | — | — | — | — | — | |||||||||||||||
Transaction Fees | 37,303 | 47,383 | 59,137 | 181,517 | 191,470 | |||||||||||||||
Fee Credits | — | — | — | — | — | |||||||||||||||
Total Management, Monitoring and Transaction Fees, Net | 37,303 | 47,383 | 59,137 | 181,517 | 191,470 | |||||||||||||||
Performance Income (Loss) | ||||||||||||||||||||
Realized Incentive Fees | — | — | — | — | — | |||||||||||||||
Realized Carried Interest | — | — | — | — | — | |||||||||||||||
Unrealized Carried Interest | — | — | — | — | — | |||||||||||||||
Total Performance Income (Loss) | — | — | — | — | — | |||||||||||||||
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 | $ | 37,303 | $ | 47,383 | $ | 59,137 | $ | 181,517 | $ | 191,470 | ||||||||||
Syndicated Capital | $ | — | $ | 537,000 | $ | 175,600 | $ | 1,213,500 | $ | 868,900 |
PRINCIPAL ACTIVITIES | ||||||||||||||||||||
Quarter Ended | Year Ended | |||||||||||||||||||
December 31, 2016 | September 30, 2016 | December 31, 2015 | December 31, 2016 | December 31, 2015 | ||||||||||||||||
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 (Loss) | ||||||||||||||||||||
Realized Incentive Fees | — | — | — | — | — | |||||||||||||||
Realized Carried Interest | — | — | — | — | — | |||||||||||||||
Unrealized Carried Interest | — | — | — | — | — | |||||||||||||||
Total Performance Income (Loss) | — | — | — | — | — | |||||||||||||||
Investment Income (Loss) | ||||||||||||||||||||
Net Realized Gains (Losses) | 969 | 170,078 | (81,343 | ) | 371,563 | 337,023 | ||||||||||||||
Net Unrealized Gains (Losses) | 141,276 | 136,740 | (128,765 | ) | (584,423 | ) | (391,962 | ) | ||||||||||||
Total Realized and Unrealized | 142,245 | 306,818 | (210,108 | ) | (212,860 | ) | (54,939 | ) | ||||||||||||
Interest Income and Dividends | 69,101 | 71,185 | 85,907 | 322,857 | 411,536 | |||||||||||||||
Interest Expense | (44,264 | ) | (47,506 | ) | (52,174 | ) | (188,761 | ) | (203,085 | ) | ||||||||||
Net Interest and Dividends | 24,837 | 23,679 | 33,733 | 134,096 | 208,451 | |||||||||||||||
Total Investment Income (Loss) | 167,082 | 330,497 | (176,375 | ) | (78,764 | ) | 153,512 | |||||||||||||
Total Segment Revenues | $ | 167,082 | $ | 330,497 | $ | (176,375 | ) | $ | (78,764 | ) | $ | 153,512 | ||||||||
KKR | ||||||||||||
BALANCE SHEET | ||||||||||||
TOTAL REPORTABLE SEGMENTS (UNAUDITED) | ||||||||||||
(Amounts in thousands, except per unit amounts) | ||||||||||||
As of | As of | |||||||||||
December 31, 2016 | December 31, 2015 | |||||||||||
Cash and Short-term Investments | $ | 3,387,673 | $ | 1,287,650 | ||||||||
Investments | 6,958,873 | (1) | 8,958,089 | |||||||||
Unrealized Carry | 1,213,692 | (2) | 1,415,478 | (2) | ||||||||
Other Assets | 1,611,678 | 1,613,139 | ||||||||||
Corporate Real Estate | 161,225 | 154,942 | ||||||||||
Total Assets | $ | 13,333,141 | $ | 13,429,298 | ||||||||
Debt Obligations - KKR (ex-KFN) | $ | 2,000,000 | $ | 2,000,000 | ||||||||
Debt Obligations - KFN | 398,560 | 657,310 | ||||||||||
Preferred Shares - KFN | 373,750 | 373,750 | ||||||||||
Other Liabilities | 244,676 | 291,537 | ||||||||||
Total Liabilities | 3,016,986 | 3,322,597 | ||||||||||
Noncontrolling Interests | 19,564 | 127,472 | ||||||||||
Preferred Units | 500,000 | — | ||||||||||
Book Value | $ | 9,796,591 | $ | 9,979,229 | ||||||||
Book Value Per Outstanding Adjusted Unit | $ | 12.15 | $ | 12.18 | ||||||||
Last Twelve Months Ended | ||||||||||||
December 31, 2016 | December 31, 2015 | |||||||||||
Return on Equity (After-tax Economic Net Income (Loss) ) (3) | 6% | 10% | ||||||||||
Return on Equity (After-tax Distributable Earnings) (4) | 16% | 14% | ||||||||||
As of | As of | |||||||||||
December 31, 2016 | December 31, 2015 | |||||||||||
Private Markets | $ | 1,141,610 | $ | 1,340,556 | ||||||||
Public Markets | 72,082 | 74,922 | ||||||||||
Total | $ | 1,213,692 | $ | 1,415,478 | ||||||||
KKR |
SCHEDULE OF INVESTMENTS (1) |
TOTAL REPORTABLE SEGMENTS (UNAUDITED) |
(Amounts in thousands, except percentage amounts) |
As of December 31, 2016 | ||||
Investments | Fair Value | |||
Private Equity Co-Investments and Other Equity | $ | 1,733,215 | ||
Private Equity Funds | 1,087,783 | |||
Private Equity Total | 2,820,998 | |||
Energy | 559,050 | |||
Real Estate (3) | 747,562 | |||
Infrastructure | 223,953 | |||
Real Assets Total | 1,530,565 | |||
Special Situations | 713,733 | |||
Direct Lending | 88,918 | |||
Mezzanine | 23,856 | |||
Alternative Credit Total | 826,507 | |||
CLOs (4) | 585,078 | |||
Liquid Credit | 180,620 | |||
Specialty Finance | 202,837 | |||
Credit Total | 1,795,042 | |||
Other | 812,268 | |||
Total Investments | $ | 6,958,873 | ||
As of December 31, 2016 | |||||||
Significant Investments: (5) | Fair Value | Fair Value as a Percentage of Total Investments | |||||
First Data Corporation (NYSE: FDC) | $ | 1,094,159 | 15.7 | % | |||
KKR Real Estate Finance Trust Inc. | 289,723 | 4.2 | % | ||||
WMIH Corp. (NASDAQ: WMIH) | 220,896 | 3.2 | % | ||||
Natural Gas Midstream Investment | 134,478 | 1.9 | % | ||||
Oil & Gas Royalties Investment | 119,700 | 1.7 | % | ||||
Total Significant Investments | 1,858,956 | 26.7 | % | ||||
Other Investments | 5,099,917 | 73.3 | % | ||||
Total Investments | $ | 6,958,873 | 100.0 | % | |||
KKR | ||||||||||||
ASSETS UNDER MANAGEMENT (UNAUDITED) | ||||||||||||
(Amounts in thousands) | ||||||||||||
Private Markets Segment | Public Markets Segment | Total Reportable Segments | ||||||||||
Quarter Ended December 31, 2016 | ||||||||||||
September 30, 2016 | $ | 75,181,600 | $ | 55,920,200 | $ | 131,101,800 | ||||||
New Capital Raised | 1,791,700 | 2,682,600 | 4,474,300 | |||||||||
Distributions | (4,422,000 | ) | (2,727,800 | ) | (1) | (7,149,800 | ) | |||||
Change in Value | 1,264,200 | (134,800 | ) | 1,129,400 | ||||||||
December 31, 2016 | $ | 73,815,500 | $ | 55,740,200 | $ | 129,555,700 | ||||||
Year Ended December 31, 2016 | ||||||||||||
December 31, 2015 | $ | 66,028,600 | $ | 53,515,700 | $ | 119,544,300 | ||||||
New Capital Raised | 16,170,200 | 12,623,100 | 28,793,300 | |||||||||
Distributions | (13,557,100 | ) | (10,978,700 | ) | (2) | (24,535,800 | ) | |||||
Change in Value | 5,173,800 | 580,100 | 5,753,900 | |||||||||
December 31, 2016 | $ | 73,815,500 | $ | 55,740,200 | $ | 129,555,700 | ||||||
KKR | ||||||||||||
FEE PAYING ASSETS UNDER MANAGEMENT (UNAUDITED) | ||||||||||||
(Amounts in thousands) | ||||||||||||
Private Markets Segment | Public Markets Segment | Total Reportable Segments | ||||||||||
Quarter Ended December 31, 2016 | ||||||||||||
September 30, 2016 | $ | 44,010,300 | $ | 49,143,500 | $ | 93,153,800 | ||||||
New Capital Raised | 12,240,500 | 3,178,200 | 15,418,700 | |||||||||
Distributions | (1,689,200 | ) | (2,864,400 | ) | (1) | (4,553,600 | ) | |||||
Net Changes in Fee Base of Certain Funds (3) | (2,201,100 | ) | — | (2,201,100 | ) | |||||||
Change in Value | (155,700 | ) | (188,700 | ) | (344,400 | ) | ||||||
December 31, 2016 | $ | 52,204,800 | $ | 49,268,600 | $ | 101,473,400 | ||||||
Year Ended December 31, 2016 | ||||||||||||
December 31, 2015 | $ | 45,307,400 | $ | 46,413,100 | $ | 91,720,500 | ||||||
New Capital Raised | 14,520,900 | 13,681,200 | 28,202,100 | |||||||||
Distributions | (5,258,000 | ) | (11,123,000 | ) | (2) | (16,381,000 | ) | |||||
Net Changes in Fee Base of Certain Funds (3) | (2,546,200 | ) | — | (2,546,200 | ) | |||||||
Change in Value | 180,700 | 297,300 | 478,000 | |||||||||
December 31, 2016 | $ | 52,204,800 | $ | 49,268,600 | $ | 101,473,400 | ||||||
KKR | |||||||||||||||||||||
INVESTMENT VEHICLE SUMMARY (1) (UNAUDITED) | |||||||||||||||||||||
As of December 31, 2016 | |||||||||||||||||||||
(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 and Growth Funds | |||||||||||||||||||||
Americas Fund XII | 1/2017 | 1/2023 | $ | 12,877.9 | $ | 12,877.9 | 7.8% | $ | — | $ | — | $ | — | $ | — | ||||||
Next Generation Technology Growth Fund | 3/2016 | 3/2021 | 658.9 | 568.2 | 22.5% | 90.7 | — | 90.7 | 102.6 | ||||||||||||
European Fund IV (2) | 12/2014 | 12/2020 | 3,430.3 | 2,257.3 | 5.8% | 1,181.9 | — | 1,181.9 | 1,239.4 | ||||||||||||
Asian Fund II (2) | 4/2013 | 4/2019 | 5,825.0 | 2,789.3 | 1.3% | 3,867.7 | 895.0 | 3,012.1 | 5,114.1 | ||||||||||||
North America Fund XI (2) | 9/2012 | 1/2017 | 8,718.4 | 1,844.5 | 2.9% | 8,188.3 | 3,411.3 | 5,962.8 | 8,941.9 | ||||||||||||
China Growth Fund | 11/2010 | 11/2016 | 1,010.0 | 116.7 | 1.0% | 893.3 | 347.9 | 694.2 | 920.3 | ||||||||||||
E2 Investors (Annex Fund) | 8/2009 | 11/2013 | 195.8 | — | 4.9% | 195.8 | 195.7 | 18.1 | 6.9 | ||||||||||||
European Fund III | 3/2008 | 3/2014 | 6,108.3 | 781.0 | 4.7% | 5,327.3 | 6,198.0 | 2,417.9 | 3,393.1 | ||||||||||||
Asian Fund | 7/2007 | 4/2013 | 3,983.3 | 105.6 | 2.5% | 3,877.7 | 7,360.0 | 927.2 | 991.0 | ||||||||||||
2006 Fund | 9/2006 | 9/2012 | 17,642.2 | 387.2 | 2.1% | 17,255.0 | 22,469.1 | 6,489.5 | 10,080.2 | ||||||||||||
European Fund II | 11/2005 | 10/2008 | 5,750.8 | — | 2.1% | 5,750.8 | 8,324.1 | 35.3 | 215.7 | ||||||||||||
Millennium Fund | 12/2002 | 12/2008 | 6,000.0 | — | 2.5% | 6,000.0 | 13,116.4 | 471.3 | 771.2 | ||||||||||||
Total Private Equity and Growth Funds | 72,200.9 | 21,727.7 | 52,628.5 | 62,317.5 | 21,301.0 | 31,776.4 | |||||||||||||||
Co-Investment Vehicles and Other (2) | Various | Various | 8,178.6 | 3,554.0 | Various | 4,811.5 | 2,981.8 | 3,439.4 | 4,414.0 | ||||||||||||
Total Private Equity and Growth | 80,379.5 | 25,281.7 | 57,440.0 | 65,299.3 | 24,740.4 | 36,190.4 | |||||||||||||||
Real Assets | |||||||||||||||||||||
Energy Income and Growth Fund | 9/2013 | 9/2018 | 1,974.2 | 1,013.4 | 12.9% | 960.8 | 206.4 | 828.2 | 769.9 | ||||||||||||
Natural Resources Fund | Various | Various | 887.4 | 2.9 | Various | 884.5 | 96.6 | 809.9 | 218.4 | ||||||||||||
Global Energy Opportunities (2) | Various | Various | 979.2 | 675.1 | Various | 342.4 | 57.1 | 230.0 | 233.4 | ||||||||||||
Global Infrastructure Investors (2) | 9/2011 | 10/2014 | 1,039.8 | 75.9 | 4.8% | 994.9 | 649.7 | 649.4 | 771.5 | ||||||||||||
Global Infrastructure Investors II (2) | 10/2014 | 10/2020 | 3,023.6 | 2,091.2 | 4.1% | 969.3 | 39.4 | 929.9 | 948.8 | ||||||||||||
Real Estate Partners Americas (2) | 5/2013 | 5/2017 | 1,229.1 | 674.6 | 16.3% | 892.5 | 633.5 | 554.1 | 596.0 | ||||||||||||
Real Estate Partners Europe (2) | 9/2015 | 6/2020 | 688.2 | 593.0 | 9.1% | 95.2 | — | 95.2 | 102.8 | ||||||||||||
Co-Investment Vehicles and Other | Various | Various | 1,674.9 | 538.8 | Various | 1,136.1 | 452.1 | 1,134.6 | 1,348.2 | ||||||||||||
Real Assets | 11,496.4 | 5,664.9 | 6,275.7 | 2,134.8 | 5,231.3 | 4,989.0 | |||||||||||||||
Unallocated Commitments | 532.1 | 532.1 | Various | — | — | — | — | ||||||||||||||
Private Markets Total | 92,408.0 | 31,478.7 | 63,715.7 | 67,434.1 | 29,971.7 | 41,179.4 | |||||||||||||||
Public Markets | |||||||||||||||||||||
Special Situations Fund | 12/2012 | 1/2016 | 2,274.3 | 109.1 | 11.6% | 2,165.2 | 542.2 | 1,986.2 | 2,003.6 | ||||||||||||
Special Situations Fund II | 12/2014 | 3/2019 | 3,363.6 | 2,273.0 | 9.0% | 1,090.6 | 15.7 | 1,090.6 | 922.9 | ||||||||||||
Mezzanine Partners | 3/2010 | 3/2015 | 1,022.8 | 136.7 | 4.4% | 886.1 | 753.5 | 494.8 | 443.9 | ||||||||||||
Lending Partners | 12/2011 | 12/2014 | 460.2 | 54.9 | 15.2% | 405.3 | 244.6 | 334.6 | 267.0 | ||||||||||||
Lending Partners II | 6/2014 | 6/2017 | 1,335.9 | 487.7 | 3.7% | 848.2 | 120.0 | 848.2 | 917.4 | ||||||||||||
Lending Partners Europe | 3/2015 | 3/2019 | 847.6 | 678.1 | 5.0% | 169.5 | 13.0 | 169.5 | 185.7 | ||||||||||||
Other Alternative Credit Vehicles | Various | Various | 5,591.2 | 2,573.1 | Various | 3,018.1 | 1,775.0 | 2,067.5 | 2,257.3 | ||||||||||||
Public Markets Total | 14,895.6 | 6,312.6 | 8,583.0 | 3,464.0 | 6,991.4 | 6,997.8 | |||||||||||||||
Grand Total | $ | 107,303.6 | $ | 37,791.3 | $ | 72,298.7 | $ | 70,898.1 | $ | 36,963.1 | $ | 48,177.2 |
KKR | ||||||||||||||||||||
EXHIBIT A | ||||||||||||||||||||
OTHER FINANCIAL INFORMATION (UNAUDITED) | ||||||||||||||||||||
(Amounts in thousands) | ||||||||||||||||||||
Quarter Ended | Year Ended | |||||||||||||||||||
December 31, 2016 | September 30, 2016 | December 31, 2015 | December 31, 2016 | December 31, 2015 | ||||||||||||||||
Fee Related Earnings | ||||||||||||||||||||
Total Management, Monitoring and Transaction Fees, Net | $ | 256,280 | $ | 276,561 | $ | 337,145 | $ | 1,074,862 | $ | 1,142,050 | ||||||||||
Less: Cash Compensation and Benefits | 95,260 | 101,967 | 121,036 | 395,016 | 409,992 | |||||||||||||||
Less: Occupancy and Related Charges | 14,914 | 15,877 | 16,666 | 62,400 | 62,657 | |||||||||||||||
Less: Other Operating expenses | 67,806 | 55,123 | 68,978 | 234,348 | 233,618 | |||||||||||||||
Plus: Expenses of Principal Activities Segment | 38,107 | 38,659 | 50,383 | 154,321 | 174,713 | |||||||||||||||
Fee Related Earnings (1) | 116,407 | 142,253 | 180,848 | 537,419 | 610,496 | |||||||||||||||
Plus: Net Interest and Dividends | 24,837 | 23,679 | 33,733 | 134,096 | 208,451 | |||||||||||||||
Plus: Depreciation and Amortization | 4,020 | 4,121 | 3,775 | 15,987 | 15,319 | |||||||||||||||
Plus: Core Interest Expense | 28,900 | 29,006 | 29,516 | 116,399 | 116,027 | |||||||||||||||
Less: Expenses of Principal Activities Segment | 38,107 | 38,659 | 50,383 | 154,321 | 174,713 | |||||||||||||||
Fee and Yield Segment EBITDA (2) | 136,057 | 160,400 | 197,489 | 649,580 | 775,580 | |||||||||||||||
Plus: Realized Performance Income (Loss), net | 310,975 | 194,977 | 128,654 | 751,233 | 628,083 | |||||||||||||||
Plus: Net Realized Gains (Losses) | 969 | 170,078 | (81,343 | ) | 371,563 | 337,023 | ||||||||||||||
Total Segment EBITDA (2) | $ | 448,001 | $ | 525,455 | $ | 244,800 | $ | 1,772,376 | $ | 1,740,686 | ||||||||||
Distributable Earnings | ||||||||||||||||||||
Management, Monitoring and Transaction Fees, Net | $ | 256,280 | $ | 276,561 | $ | 337,145 | $ | 1,074,862 | $ | 1,142,050 | ||||||||||
Realized Performance Income (Loss) | 526,625 | 354,128 | 214,420 | 1,289,554 | 1,046,801 | |||||||||||||||
Realized Investment Income (Loss) | 25,806 | 193,757 | (47,610 | ) | 505,659 | 545,474 | ||||||||||||||
Total Distributable Segment Revenues | $ | 808,711 | $ | 824,446 | $ | 503,955 | $ | 2,870,075 | $ | 2,734,325 | ||||||||||
Less: Total Distributable Segment Expenses and Other | 393,964 | 332,878 | 297,546 | 1,232,421 | 1,140,992 | |||||||||||||||
Less: Corporate and Local Income Taxes Paid | 16,532 | 21,869 | 37,791 | 87,723 | 140,677 | |||||||||||||||
Less: Preferred Distributions | 8,341 | 8,201 | — | 22,235 | — | |||||||||||||||
After-tax Distributable Earnings | $ | 389,874 | $ | 461,498 | $ | 168,618 | $ | 1,527,696 | $ | 1,452,656 | ||||||||||
Per Adjusted Unit Eligible for Distribution | $ | 0.48 | $ | 0.57 | $ | 0.21 | $ | 1.89 | $ | 1.78 | ||||||||||
Core Interest Expense | ||||||||||||||||||||
GAAP Interest Expense | $ | 182,141 | $ | 255,105 | $ | 170,282 | $ | 789,953 | $ | 573,226 | ||||||||||
Less: Interest expense related to debt obligations of consolidated investment funds, CLOs and other | 137,877 | 207,599 | 118,108 | 601,192 | 370,141 | |||||||||||||||
Segment Interest Expense | 44,264 | 47,506 | 52,174 | 188,761 | 203,085 | |||||||||||||||
Less: Interest Expense related to debt obligations from KFN and other | 15,364 | 18,500 | 22,658 | 72,362 | 87,058 | |||||||||||||||
Core Interest Expense (3) | $ | 28,900 | $ | 29,006 | $ | 29,516 | $ | 116,399 | $ | 116,027 | ||||||||||
KKR | |||
EXHIBIT B | |||
KKR'S PORTION OF TOTAL UNCALLED COMMITMENTS TO ITS INVESTMENT FUNDS (UNAUDITED) | |||
(Amounts in thousands) | |||
Uncalled Commitments | |||
Private Markets | |||
Americas Fund XII | $ | 1,000,000 | |
Energy Income and Growth | 130,900 | ||
European Fund IV | 128,600 | ||
Next Generation Technology Growth Fund | 127,800 | ||
Real Estate Partners Americas | 109,800 | ||
Global Infrastructure Investors II | 86,400 | ||
Real Estate Partners Europe | 54,100 | ||
North America Fund XI | 49,900 | ||
Asian Fund II | 35,700 | ||
Co-Investment Vehicles | 23,500 | ||
Other Private Markets Funds | 441,500 | ||
Total Private Markets Commitments | 2,188,200 | ||
Public Markets | |||
Special Situations Fund | 12,100 | ||
Special Situations Fund II | 203,700 | ||
Mezzanine Partners | 5,900 | ||
Lending Partners | 8,600 | ||
Lending Partners II | 18,100 | ||
Lending Partners Europe | 34,100 | ||
Other Alternative Credit Vehicles | 114,200 | ||
Total Public Markets Commitments | 396,700 | ||
Total Uncalled Commitments | $ | 2,584,900 | |
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, 2016 | September 30, 2016 | December 31, 2015 | ||||||||||
Net income (loss) attributable to KKR & Co. L.P. per common unit - Basic | $ | 0.38 | $ | 0.79 | $ | 0.07 | ||||||
Weighted Average Common Units Outstanding - Basic | 451,154,845 | 445,989,300 | 461,374,013 | |||||||||
Net Income (Loss) Attributable to KKR & Co. L.P. Common Unitholders | 170,969 | 352,152 | 32,257 | |||||||||
Plus: Preferred Distributions | 8,341 | 8,201 | — | |||||||||
Plus: Net income (loss) attributable to noncontrolling interests held by KKR Holdings L.P. | 126,219 | 284,834 | 35,060 | |||||||||
Plus: Non-cash equity-based charges | 78,858 | 61,552 | 47,730 | |||||||||
Plus: Amortization of intangibles, placement fees and other, net | (6,994 | ) | (48,299 | ) | 2,293 | |||||||
Plus: Income tax (benefit) | 5,800 | 10,826 | 27,341 | |||||||||
Economic Net Income (Loss) | 383,193 | 669,266 | 144,681 | |||||||||
Less: Equity-based compensation associated with the KKR & Co. L.P. 2010 equity incentive plan | 37,970 | 50,270 | 37,376 | |||||||||
Pre-tax Economic Net Income (Loss) | 345,223 | 618,996 | 107,305 | |||||||||
Less: Provision for income tax (benefit) | (2,335 | ) | 12,611 | 36,797 | ||||||||
Less: Preferred Distributions | 8,341 | 8,201 | — | |||||||||
After-tax Economic Net Income (Loss) | 339,217 | 598,184 | 70,508 | |||||||||
Weighted Average Adjusted Units | 839,268,845 | 837,504,674 | 852,446,702 | |||||||||
After-tax Economic Net Income (Loss) Per Adjusted Unit | $ | 0.40 | $ | 0.71 | $ | 0.08 | ||||||
Year Ended | ||||||||||||
December 31, 2016 | December 31, 2015 | |||||||||||
Net income (loss) attributable to KKR & Co. L.P. per common unit - Basic | $ | 0.64 | $ | 1.09 | ||||||||
Weighted Average Common Units Outstanding - Basic | 448,905,126 | 448,884,185 | ||||||||||
Net Income (Loss) Attributable to KKR & Co. L.P. Common Unitholders | 287,072 | 488,482 | ||||||||||
Plus: Preferred Distributions | 22,235 | — | ||||||||||
Plus: Net income (loss) attributable to noncontrolling interests held by KKR Holdings L.P. | 212,878 | 433,693 | ||||||||||
Plus: Non-cash equity-based charges | 264,890 | 261,579 | ||||||||||
Plus: Amortization of intangibles, placement fees and other, net | (17,267 | ) | 47,599 | |||||||||
Plus: Income tax (benefit) | 24,561 | 66,636 | ||||||||||
Economic Net Income (Loss) | 794,369 | 1,297,989 | ||||||||||
Less: Equity-based compensation associated with the KKR & Co. L.P. 2010 equity incentive plan | 186,227 | 186,346 | ||||||||||
Pre-tax Economic Net Income (Loss) | 608,142 | 1,111,643 | ||||||||||
Less: Provision for income tax (benefit) | 10,282 | 83,363 | ||||||||||
Less: Preferred Distributions | 22,235 | — | ||||||||||
After-tax Economic Net Income (Loss) | 575,625 | 1,028,280 | ||||||||||
Weighted Average Adjusted Units | 841,304,836 | 851,099,066 | ||||||||||
After-tax Economic Net Income (Loss) Per Adjusted Unit | $ | 0.68 | $ | 1.21 |
KKR | ||||||||||||
EXHIBIT C (CONTINUED) | ||||||||||||
RECONCILIATION OF FEES AND OTHER (GAAP BASIS) TO TOTAL SEGMENT REVENUES (UNAUDITED) | ||||||||||||
(Amounts in thousands) | ||||||||||||
Quarter Ended | ||||||||||||
December 31, 2016 | September 30, 2016 | December 31, 2015 | ||||||||||
Fees and Other | $ | 481,475 | $ | 687,056 | $ | 307,923 | ||||||
Management fees relating to consolidated funds and placement fees | 47,284 | 49,017 | 144,007 | |||||||||
Fee credits relating to consolidated funds | (155 | ) | (417 | ) | (54,370 | ) | ||||||
Net realized and unrealized carried interest - consolidated funds | 17,070 | 5,956 | 319,599 | |||||||||
Total investment income (loss) | 167,082 | 330,497 | (176,375 | ) | ||||||||
Revenue earned by oil & gas producing entities | (17,777 | ) | (16,191 | ) | (22,064 | ) | ||||||
Reimbursable expenses | (34,966 | ) | (12,064 | ) | (24,434 | ) | ||||||
Other | 4,358 | (12,317 | ) | (6,708 | ) | |||||||
Total Segment Revenues | $ | 664,371 | $ | 1,031,537 | $ | 487,578 | ||||||
Year Ended | ||||||||||||
December 31, 2016 | December 31, 2015 | |||||||||||
Fees and Other | $ | 1,908,093 | $ | 1,043,768 | ||||||||
Management fees relating to consolidated funds and placement fees | 178,619 | 531,027 | ||||||||||
Fee credits relating to consolidated funds | (2,921 | ) | (202,269 | ) | ||||||||
Net realized and unrealized carried interest - consolidated funds | 32,651 | 1,190,699 | ||||||||||
Total investment income (loss) | (78,764 | ) | 153,512 | |||||||||
Revenue earned by oil & gas producing entities | (65,754 | ) | (112,328 | ) | ||||||||
Reimbursable expenses | (81,549 | ) | (66,144 | ) | ||||||||
Other | (25,095 | ) | (32,357 | ) | ||||||||
Total Segment Revenues | $ | 1,865,280 | $ | 2,505,908 | ||||||||
RECONCILIATION OF TOTAL EXPENSES (GAAP BASIS) TO TOTAL SEGMENT EXPENSES (UNAUDITED) | ||||||||||||
(Amounts in thousands) | ||||||||||||
Quarter Ended | ||||||||||||
December 31, 2016 | September 30, 2016 | December 31, 2015 | ||||||||||
Total Expenses | $ | 452,816 | $ | 511,117 | $ | 525,095 | ||||||
Equity based compensation | (78,858 | ) | (61,552 | ) | (47,730 | ) | ||||||
Reimbursable expenses and Placement fees | (75,596 | ) | (18,255 | ) | (38,837 | ) | ||||||
Operating expenses relating to consolidated funds, CFEs and other entities | (19,246 | ) | (20,141 | ) | (27,059 | ) | ||||||
Expenses incurred by oil & gas producing entities | (14,312 | ) | (17,782 | ) | (46,256 | ) | ||||||
Intangible amortization, acquisition and litigation | 28,993 | (22,112 | ) | (15,518 | ) | |||||||
Other | (12,953 | ) | (9,764 | ) | (11,898 | ) | ||||||
Total Segment Expenses | $ | 280,844 | $ | 361,511 | $ | 337,797 | ||||||
Year Ended | ||||||||||||
December 31, 2016 | December 31, 2015 | |||||||||||
Total Expenses | $ | 1,695,474 | $ | 1,871,225 | ||||||||
Equity based compensation | (264,890 | ) | (261,579 | ) | ||||||||
Reimbursable expenses and Placement fees | (148,483 | ) | (103,307 | ) | ||||||||
Operating expenses relating to consolidated funds, CFEs and other entities | (104,339 | ) | (65,012 | ) | ||||||||
Expenses incurred by oil & gas producing entities | (70,312 | ) | (153,611 | ) | ||||||||
Intangible amortization, acquisition and litigation | (6,647 | ) | (49,766 | ) | ||||||||
Other | (32,228 | ) | (46,038 | ) | ||||||||
Total Segment Expenses | $ | 1,068,575 | $ | 1,191,912 |
KKR | ||||||||||||
EXHIBIT C (CONTINUED) | ||||||||||||
RECONCILIATION OF NET INCOME (LOSS) ATTRIBUTABLE TO KKR & CO. L.P. COMMON UNITHOLDERS (GAAP BASIS) | ||||||||||||
TO ECONOMIC NET INCOME (LOSS), FEE RELATED EARNINGS, FEE AND YIELD SEGMENT EBITDA, AFTER TAX DISTRIBUTABLE EARNINGS AND TOTAL SEGMENT EBITDA (UNAUDITED) | ||||||||||||
(Amounts in thousands) | ||||||||||||
Quarter Ended | ||||||||||||
December 31, 2016 | September 30, 2016 | December 31, 2015 | ||||||||||
Net Income (Loss) Attributable to KKR & Co. L.P. Common Unitholders | $ | 170,969 | $ | 352,152 | $ | 32,257 | ||||||
Plus: Preferred Distributions | 8,341 | 8,201 | — | |||||||||
Plus: Net income (loss) attributable to noncontrolling interests held by KKR Holdings L.P. | 126,219 | 284,834 | 35,060 | |||||||||
Plus: Non-cash equity-based charges | 78,858 | 61,552 | 47,730 | |||||||||
Plus: Amortization of intangibles, placement fees and other, net | (6,994 | ) | (48,299 | ) | 2,293 | |||||||
Plus: Income tax (benefit) | 5,800 | 10,826 | 27,341 | |||||||||
Economic Net Income (Loss) | 383,193 | 669,266 | 144,681 | |||||||||
Plus: Income attributable to segment noncontrolling interests | 334 | 760 | 5,100 | |||||||||
Less: Total investment income (loss) | 167,082 | 330,497 | (176,375 | ) | ||||||||
Less: Net performance income (loss) | 138,145 | 235,935 | 195,691 | |||||||||
Plus: Expenses of Principal Activities Segment | 38,107 | 38,659 | 50,383 | |||||||||
Fee Related Earnings | 116,407 | 142,253 | 180,848 | |||||||||
Plus: Net interest and dividends | 24,837 | 23,679 | 33,733 | |||||||||
Plus: Depreciation and amortization | 4,020 | 4,121 | 3,775 | |||||||||
Plus: Core interest expense | 28,900 | 29,006 | 29,516 | |||||||||
Less: Expenses of Principal Activities Segment | 38,107 | 38,659 | 50,383 | |||||||||
Fee and Yield Segment EBITDA | 136,057 | 160,400 | 197,489 | |||||||||
Less: Depreciation and amortization | 4,020 | 4,121 | 3,775 | |||||||||
Less: Core interest expense | 28,900 | 29,006 | 29,516 | |||||||||
Plus: Realized performance income (loss), net | 310,975 | 194,977 | 128,654 | |||||||||
Plus: Net realized gains (losses) | 969 | 170,078 | (81,343 | ) | ||||||||
Less: Corporate and local income taxes paid | 16,532 | 21,869 | 37,791 | |||||||||
Less: Preferred Distributions | 8,341 | 8,201 | — | |||||||||
Less: Income attributable to segment noncontrolling interests | 334 | 760 | 5,100 | |||||||||
After-tax Distributable Earnings | 389,874 | 461,498 | 168,618 | |||||||||
Plus: Depreciation and amortization | 4,020 | 4,121 | 3,775 | |||||||||
Plus: Core interest expense | 28,900 | 29,006 | 29,516 | |||||||||
Plus: Corporate and local income taxes paid | 16,532 | 21,869 | 37,791 | |||||||||
Plus: Preferred Distributions | 8,341 | 8,201 | — | |||||||||
Plus: Income attributable to segment noncontrolling interests | 334 | 760 | 5,100 | |||||||||
Total Segment EBITDA | $ | 448,001 | $ | 525,455 | $ | 244,800 | ||||||
Year Ended | ||||||||||||
December 31, 2016 | December 31, 2015 | |||||||||||
Net Income (Loss) Attributable to KKR & Co. L.P. Common Unitholders | $ | 287,072 | $ | 488,482 | ||||||||
Plus: Preferred Distributions | 22,235 | — | ||||||||||
Plus: Net income (loss) attributable to noncontrolling interests held by KKR Holdings L.P. | 212,878 | 433,693 | ||||||||||
Plus: Non-cash equity-based charges | 264,890 | 261,579 | ||||||||||
Plus: Amortization of intangibles, placement fees and other, net | (17,267 | ) | 47,599 | |||||||||
Plus: Income tax (benefit) | 24,561 | 66,636 | ||||||||||
Economic Net Income (Loss) | 794,369 | 1,297,989 | ||||||||||
Plus: Income attributable to segment noncontrolling interests | 2,336 | 16,007 | ||||||||||
Less: Total investment income (loss) | (78,764 | ) | 153,512 | |||||||||
Less: Net performance income (loss) | 492,371 | 724,701 | ||||||||||
Plus: Expenses of Principal Activities Segment | 154,321 | 174,713 | ||||||||||
Fee Related Earnings | 537,419 | 610,496 | ||||||||||
Plus: Net interest and dividends | 134,096 | 208,451 | ||||||||||
Plus: Depreciation and amortization | 15,987 | 15,319 | ||||||||||
Plus: Core interest expense | 116,399 | 116,027 | ||||||||||
Less: Expenses of Principal Activities Segment | 154,321 | 174,713 | ||||||||||
Fee and Yield Segment EBITDA | 649,580 | 775,580 | ||||||||||
Less: Depreciation and amortization | 15,987 | 15,319 | ||||||||||
Less: Core interest expense | 116,399 | 116,027 | ||||||||||
Plus: Realized performance income (loss), net | 751,233 | 628,083 | ||||||||||
Plus: Net realized gains (losses) | 371,563 | 337,023 | ||||||||||
Less: Corporate and local income taxes paid | 87,723 | 140,677 | ||||||||||
Less: Preferred Distributions | 22,235 | — | ||||||||||
Less: Income attributable to segment noncontrolling interests | 2,336 | 16,007 | ||||||||||
After-tax Distributable Earnings | 1,527,696 | 1,452,656 | ||||||||||
Plus: Depreciation and amortization | 15,987 | 15,319 | ||||||||||
Plus: Core interest expense | 116,399 | 116,027 | ||||||||||
Plus: Corporate and local income taxes paid | 87,723 | 140,677 | ||||||||||
Plus: Preferred Distributions | 22,235 | — | ||||||||||
Plus: Income attributable to segment noncontrolling interests | 2,336 | 16,007 | ||||||||||
Total Segment EBITDA | $ | 1,772,376 | $ | 1,740,686 |
KKR | |||||||||||||||||||||||
EXHIBIT C (CONTINUED) | |||||||||||||||||||||||
RECONCILIATION OF CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (GAAP BASIS) | |||||||||||||||||||||||
TO TOTAL REPORTABLE SEGMENTS BALANCE SHEET (UNAUDITED) | |||||||||||||||||||||||
DECMEBER 31, 2016 | |||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (GAAP BASIS) | 1 | 2 | 3 | 4 | 5 | TOTAL REPORTABLE SEGMENTS BALANCE SHEET | |||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and Cash Equivalents | $ | 2,508,902 | — | — | 878,771 | — | — | $ | 3,387,673 | Cash and Short-term Investments | |||||||||||||
Investments | 31,409,765 | (22,249,206 | ) | (987,994 | ) | (1,213,692 | ) | — | — | 6,958,873 | Investments | ||||||||||||
— | — | 1,213,692 | — | — | 1,213,692 | Unrealized Carry | |||||||||||||||||
Other Assets | 5,084,230 | (2,118,364 | ) | — | (1,039,996 | ) | — | (314,192 | ) | 1,611,678 | Other Assets | ||||||||||||
— | — | 161,225 | — | — | 161,225 | Corporate Real Estate | |||||||||||||||||
Total Assets | $ | 39,002,897 | (24,367,570 | ) | (987,994 | ) | — | — | (314,192 | ) | $ | 13,333,141 | |||||||||||
Liabilities and Equity | |||||||||||||||||||||||
Debt Obligations | 18,544,075 | (16,145,515 | ) | — | (398,560 | ) | — | — | 2,000,000 | Debt Obligations - KKR (ex-KFN) | |||||||||||||
— | — | 398,560 | — | — | 398,560 | Debt Obligations - KFN | |||||||||||||||||
— | — | 373,750 | — | — | 373,750 | Preferred Shares - KFN | |||||||||||||||||
Other Liabilities | 3,340,739 | (1,945,039 | ) | (987,994 | ) | — | — | (163,030 | ) | 244,676 | Other Liabilities | ||||||||||||
Total Liabilities | 21,884,814 | (18,090,554 | ) | (987,994 | ) | 373,750 | — | (163,030 | ) | 3,016,986 | |||||||||||||
Redeemable Noncontrolling Interests | 632,348 | (632,348 | ) | — | — | — | — | ||||||||||||||||
Equity | |||||||||||||||||||||||
Series A Preferred Units | 332,988 | — | — | (332,988 | ) | — | — | ||||||||||||||||
Series B Preferred Units | 149,566 | — | — | (149,566 | ) | — | — | ||||||||||||||||
KKR & Co. L.P. Capital - Common Unitholders | 5,457,279 | 118,635 | — | (17,446 | ) | 4,389,285 | (151,162 | ) | 9,796,591 | Book Value | |||||||||||||
Noncontrolling Interests | 10,545,902 | (5,763,303 | ) | — | (373,750 | ) | (4,389,285 | ) | — | 19,564 | Noncontrolling Interests | ||||||||||||
— | — | 500,000 | — | — | 500,000 | Preferred Units | |||||||||||||||||
Total Liabilities and Equity | $ | 39,002,897 | (24,367,570 | ) | (987,994 | ) | — | — | (314,192 | ) | $ | 13,333,141 | |||||||||||
1 | IMPACT OF CONSOLIDATION OF INVESTMENT VEHICLES AND OTHER ENTITIES | ||||||||||||||||||||||
2 | CARRY POOL RECLASSIFICATION | ||||||||||||||||||||||
3 | OTHER RECLASSIFICATIONS | ||||||||||||||||||||||
4 | NONCONTROLLING INTERESTS HELD BY KKR HOLDINGS L.P. AND OTHER | ||||||||||||||||||||||
5 | EQUITY IMPACT OF KKR MANAGEMENT HOLDINGS CORP. | ||||||||||||||||||||||
KKR | |||||||||||||||||||||||
EXHIBIT C (CONTINUED) | |||||||||||||||||||||||
RECONCILIATION OF CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (GAAP BASIS) | |||||||||||||||||||||||
TO TOTAL REPORTABLE SEGMENTS BALANCE SHEET (UNAUDITED) | |||||||||||||||||||||||
DECEMBER 31, 2015 | |||||||||||||||||||||||
(Amounts in thousands) | |||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (GAAP BASIS) | 1 | 2 | 3 | 4 | 5 | TOTAL REPORTABLE SEGMENTS BALANCE SHEET | |||||||||||||||||
Assets | |||||||||||||||||||||||
Cash and Cash Equivalents | $ | 1,047,740 | — | — | 239,910 | — | — | $ | 1,287,650 | Cash and Short-term Investments | |||||||||||||
Investments | 65,305,931 | (53,733,364 | ) | (1,199,000 | ) | (1,415,478 | ) | — | — | 8,958,089 | Investments | ||||||||||||
— | — | 1,415,478 | — | — | 1,415,478 | Unrealized Carry | |||||||||||||||||
Other Assets | 4,688,668 | (2,406,048 | ) | — | (394,852 | ) | — | (274,629 | ) | 1,613,139 | Other Assets | ||||||||||||
— | — | 154,942 | — | — | 154,942 | Corporate Real Estate | |||||||||||||||||
Total Assets | $ | 71,042,339 | (56,139,412 | ) | (1,199,000 | ) | — | — | (274,629 | ) | $ | 13,429,298 | |||||||||||
Liabilities and Equity | |||||||||||||||||||||||
Debt Obligations | 18,714,597 | (16,057,287 | ) | — | (657,310 | ) | — | — | 2,000,000 | Debt Obligations - KKR (ex-KFN) | |||||||||||||
— | — | 657,310 | — | — | 657,310 | Debt Obligations - KFN | |||||||||||||||||
— | — | 373,750 | — | — | 373,750 | Preferred Shares - KFN | |||||||||||||||||
Other Liabilities | 2,860,157 | (1,228,091 | ) | (1,199,000 | ) | — | — | (141,529 | ) | 291,537 | Other Liabilities | ||||||||||||
Total Liabilities | 21,574,754 | (17,285,378 | ) | (1,199,000 | ) | 373,750 | — | (141,529 | ) | 3,322,597 | |||||||||||||
Redeemable Noncontrolling Interests | 188,629 | (188,629 | ) | — | — | — | — | ||||||||||||||||
Equity | |||||||||||||||||||||||
Series A Preferred Units | — | — | — | — | — | — | |||||||||||||||||
Series B Preferred Units | — | — | — | — | — | — | — | Preferred Units | |||||||||||||||
KKR & Co. L.P. Capital - Common Unitholders | 5,547,182 | 133,208 | — | — | 4,431,939 | (133,100 | ) | 9,979,229 | Book Value | ||||||||||||||
Noncontrolling Interests | 43,731,774 | (38,798,613 | ) | — | (373,750 | ) | (4,431,939 | ) | — | 127,472 | Noncontrolling Interests | ||||||||||||
Total Liabilities and Equity | $ | 71,042,339 | (56,139,412 | ) | (1,199,000 | ) | — | — | (274,629 | ) | $ | 13,429,298 | |||||||||||
1 | IMPACT OF CONSOLIDATION OF INVESTMENT VEHICLES AND OTHER ENTITIES | ||||||||||||||||||||||
2 | CARRY POOL RECLASSIFICATION | ||||||||||||||||||||||
3 | OTHER RECLASSIFICATIONS | ||||||||||||||||||||||
4 | NONCONTROLLING INTERESTS HELD BY KKR HOLDINGS L.P. AND OTHER | ||||||||||||||||||||||
5 | EQUITY IMPACT OF KKR MANAGEMENT HOLDINGS CORP. | ||||||||||||||||||||||
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, 2016 | September 30, 2016 | December 31, 2015 | ||||||||
Weighted Average GAAP Common Units Outstanding - Basic | 451,154,845 | 445,989,300 | 461,374,013 | |||||||
Adjustments: | ||||||||||
Weighted Average Unvested Common Units and Other Securities (1) | 33,157,959 | 33,986,375 | 28,330,774 | |||||||
Weighted Average GAAP Common Units Outstanding - Diluted | 484,312,804 | 479,975,675 | 489,704,787 | |||||||
Adjustments: | ||||||||||
Weighted Average KKR Holdings Units (2) | 354,956,041 | 357,528,999 | 362,741,915 | |||||||
Weighted Average Adjusted Units | 839,268,845 | 837,504,674 | 852,446,702 | |||||||
Year Ended | ||||||||||
December 31, 2016 | December 31, 2015 | |||||||||
Weighted Average GAAP Common Units Outstanding - Basic | 448,905,126 | 448,884,185 | ||||||||
Adjustments: | ||||||||||
Weighted Average Unvested Common Units and Other Securities (1) | 34,525,922 | 33,815,009 | ||||||||
Weighted Average GAAP Common Units Outstanding - Diluted | 483,431,048 | 482,699,194 | ||||||||
Adjustments: | ||||||||||
Weighted Average KKR Holdings Units (2) | 357,873,788 | 368,399,872 | ||||||||
Weighted Average Adjusted Units | 841,304,836 | 851,099,066 | ||||||||
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 Outstanding Adjusted Units: | ||||||||||
As of | As of | |||||||||
December 31, 2016 | December 31, 2015 | |||||||||
GAAP Common Units Outstanding - Basic | 452,380,335 | 457,834,875 | ||||||||
Unvested Common Units and Other Securities (1) | 42,119,756 | 27,901,910 | ||||||||
GAAP Common Units Outstanding - Diluted | 494,500,091 | 485,736,785 | ||||||||
Adjustments: | ||||||||||
KKR Holdings Units (2) | 353,757,398 | 361,346,588 | ||||||||
Adjusted Units | 848,257,489 | 847,083,373 | ||||||||
Adjustments: | ||||||||||
Unvested Common Units and Unvested Other Securities (1) | (37,519,436 | ) | (24,060,289 | ) | ||||||
Adjusted Units Eligible for Distribution | 810,738,053 | 823,023,084 | ||||||||
Adjustments: | ||||||||||
Vested Other Securities | (4,600,320 | ) | (3,841,621 | ) | ||||||
Outstanding Adjusted Units | 806,137,733 | 819,181,463 | ||||||||
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end