FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2020

Schedule of assets and liabilities at fair value

The following tables summarize the valuation of assets and liabilities measured and reported at fair value by the fair value hierarchy. Investments classified as Equity Method - Other, for which the fair value option has not been elected, and Equity Method - Capital Allocation-Based Income have been excluded from the tables below.

Assets, at fair value:


	December 31, 2020
	Level I		Level II		Level III			Total
Private Equity	$	2,758,396	$	2,476,823	$	15,234,904		$	20,470,123
Credit	—		2,031,057		9,172,848			11,203,905
Investments of Consolidated CFEs	—		17,706,976		—			17,706,976
Real Assets	—		172,043		5,924,575			6,096,618
Equity Method - Other	485,988		7,254		1,014,378			1,507,620
Other Investments	434,481		88,760		2,341,981			2,865,222
Total Investments	3,678,865		22,482,913		33,688,686			59,850,464

Foreign Exchange Contracts and Options	—		250,398		—			250,398
Other Derivatives	442		729		6,668		(1)	7,839
Total Assets	$	3,679,307	$	22,734,040	$	33,695,354		$	60,108,701


	December 31, 2019
	Level I		Level II		Level III			Total
Private Equity	$	1,393,654	$	1,658,264	$	9,871,682		$	12,923,600
Credit	—		1,320,380		9,217,759			10,538,139
Investments of Consolidated CFEs	—		14,948,237		—			14,948,237
Real Assets	—		—		3,567,944			3,567,944
Equity Method - Other	228,999		49,511		1,656,045			1,934,555
Other Investments	431,084		196,192		2,154,755			2,782,031
Total Investments	2,053,737		18,172,584		26,468,185			46,694,506

Foreign Exchange Contracts and Options	—		188,572		—			188,572
Other Derivatives	—		1,333		21,806		(1)	23,139
Total Assets	$	2,053,737	$	18,362,489	$	26,489,991		$	46,906,217

(1)Includes derivative assets that were valued using a third-party valuation firm. The approach used to estimate the fair value of these derivative assets was generally the discounted cash flow method, which includes consideration of the current portfolio, projected portfolio construction, projected portfolio realizations, portfolio volatility (based on the volatility, correlation, and size of each underlying asset class), and the discounting of future cash flows to the reporting date.

Liabilities, at fair value:


	December 31, 2020
	Level I		Level II		Level III			Total
Securities Sold Short	$	281,826	$	—	$	—		$	281,826
Foreign Exchange Contracts and Options	—		551,728		—			551,728
Unfunded Revolver Commitments	—		—		46,340		(1)	46,340
Other Derivatives	76,930		50,020		—			126,950
Debt Obligations of Consolidated CFEs	—		17,372,740		—			17,372,740



Total Liabilities	$	358,756	$	17,974,488	$	46,340		$	18,379,584


	December 31, 2019
	Level I		Level II		Level III			Total
Securities Sold Short	$	251,223	$	—	$	—		$	251,223
Foreign Exchange Contracts and Options	—		39,364		—			39,364
Unfunded Revolver Commitments	—		—		75,842		(1)	75,842
Other Derivatives	—		34,174		—			34,174
Debt Obligations of Consolidated CFEs	—		14,658,137		—			14,658,137
Total Liabilities	$	251,223	$	14,731,675	$	75,842		$	15,058,740

(1)These unfunded revolver commitments are classified as Level III within the fair value hierarchy and valued using the same valuation methodologies as KKR's Level III credit investments.

Summary of changes in assets and liabilities reported at fair value for which Level III inputs have been used to determine fair value

The following tables summarize changes in investments and debt obligations measured and reported at fair value for which Level III inputs have been used to determine fair value for the years ended December 31, 2020 and 2019, respectively:


	For the Year Ended December 31, 2020
	Level III Investments
	Private Equity		Credit		Real Assets			Equity Method - Other		Other Investments		Total
Balance, Beg. of Period	$	9,871,682	$	9,217,759	$	3,567,944		$	1,656,045	$	2,154,755	$	26,468,185
Transfers In / (Out) Due to Changes in Consolidation	—		231,872		(230,163)			(20,523)		—		(18,814)
Transfers In	780,833		—		197,972		(1)	136,374		—		1,115,179
Transfers Out	(413,330)		(3,287)		(113,770)			(836,021)		(2,473)		(1,368,881)
Asset Purchases	3,610,965		3,097,652		3,089,791			183,893		515,964		10,498,265
Sales / Paydowns	(1,451,859)		(2,652,896)		(477,720)			(91,052)		(80,508)		(4,754,035)
Settlements	—		(73,911)		—			—		—		(73,911)
Net Realized Gains (Losses)	698,674		(352,110)		34,307			(71,191)		(357,606)		(47,926)
Net Unrealized Gains (Losses)	2,137,939		(302,614)		(143,786)			56,853		111,849		1,860,241
Change in Other Comprehensive Income	—		10,383		—			—		—		10,383
Balance, End of Period	$	15,234,904	$	9,172,848	$	5,924,575		$	1,014,378	$	2,341,981	$	33,688,686

Changes in Net Unrealized Gains (Losses) Included in Net Gains (Losses) from Investment Activities related to Level III Assets and Liabilities still held as of the Reporting Date	$	2,537,525	$	(555,211)	$	(157,245)		$	10,958	$	(158,516)	$	1,677,511

(1) Includes working and royalty interests that were held directly by KKR, which have been transferred into a consolidated investment fund on August 18, 2020 as discussed in Note 2 "Summary of Significant Accounting Policies."



	For the Year Ended December 31, 2019
	Level III Investments														Level III Debt Obligations
	Private Equity		Credit		Investments of Consolidated CFEs		Real Assets		Equity Method - Other		Other Investments		Total		Debt Obligations of Consolidated CFEs
Balance, Beg. of Period	$	6,128,583	$	6,764,730	$	2,082,545	$	3,157,954	$	1,503,022	$	2,116,586	$	21,753,420	$	1,876,783
Transfers In / (Out) Due to Changes in Consolidation	23,123		956,402		(2,015,130)		—		—		(42,864)		(1,078,469)		(1,849,206)
Transfers In	26,045		149,804		—		18,429		26,520		—		220,798		—
Transfers Out	(491,723)		(10,248)		—		—		(143,620)		(36,018)		(681,609)		—
Asset Purchases / Debt Issuances	3,179,376		4,600,626		—		927,477		414,393		829,992		9,951,864		—
Sales / Paydowns	(353,684)		(3,032,887)		(62,334)		(501,371)		(303,196)		(516,346)		(4,769,818)		—
Settlements	—		39,424		—		—		—		—		39,424		(26,770)
Net Realized Gains (Losses)	114,812		(55,948)		(2,759)		93,848		17,496		52,757		220,206		—
Net Unrealized Gains (Losses)	1,245,150		(177,954)		(2,322)		(128,393)		141,430		(249,352)		828,559		(807)
Change in Other Comprehensive Income	—		(16,190)		—		—		—		—		(16,190)		—
Balance, End of Period	$	9,871,682	$	9,217,759	$	—	$	3,567,944	$	1,656,045	$	2,154,755	$	26,468,185	$	—

Changes in Net Unrealized Gains (Losses) Included in Net Gains (Losses) from Investment Activities related to Level III Assets and Liabilities still held as of the Reporting Date	$	1,316,857	$	(208,744)	$	—	$	(90,583)	$	149,519	$	(230,726)	$	936,323	$	—

Summary of valuation methodologies used for assets, measured at fair value and categorized within Level III

The following table presents additional information about valuation methodologies and significant unobservable inputs used for investments that are measured and reported at fair value and categorized within Level III as of December 31, 2020:


	Fair Value December 31, 2020			Valuation Methodologies	Unobservable Input(s) (1)	Weighted Average (2)	Range	Impact to Valuation from an Increase in Input (3)



Private Equity	$	15,234,904

Private Equity	$	13,130,223		Inputs to market comparables, discounted cash flow and transaction price	Illiquidity Discount	7.2%	5.0% - 15.0%	Decrease
					Weight Ascribed to Market Comparables	28.7%	0.0% - 100.0%	(4)
					Weight Ascribed to Discounted Cash Flow	65.7%	0.0% - 100.0%	(5)
					Weight Ascribed to Transaction Price	5.6%	0.0% - 100.0%	(6)
				Market comparables	Enterprise Value/LTM EBITDA Multiple	17.2x	8.4x - 28.2x	Increase
					Enterprise Value/Forward EBITDA Multiple	15.2x	7.1x - 20.3x	Increase
				Discounted cash flow	Weighted Average Cost of Capital	9.7%	4.3% - 18.5%	Decrease
					Enterprise Value/LTM EBITDA Exit Multiple	12.5x	6.0x - 18.0x	Increase





































Growth Equity	$	2,104,681		Inputs to market comparables, discounted cash flow and milestones	Illiquidity Discount	12.5%	10.0% - 35.0%	Decrease
					Weight Ascribed to Market Comparables	36.8%	0.0% - 100.0%	(4)
					Weight Ascribed to Discounted Cash Flow	0.3%	0.0% - 50.0%	(5)
					Weight Ascribed to Milestones	62.9%	0.0% - 100.0%	(6)
				Scenario Weighting	Base	66.3%	50.0% - 75.0%	Increase
					Downside	10.4%	5.0% - 25.0%	Decrease
					Upside	23.3%	15.0% - 45.0%	Increase

Credit	$	9,172,848		Yield Analysis	Yield	5.7%	4.8% - 40.0%	Decrease
					Net Leverage	5.6x	0.3x - 28.7x	Decrease
					EBITDA Multiple	10.4x	1.1x - 29.5x	Increase




Real Assets	$	5,924,575

Energy	$	2,213,489		Inputs to market comparables and discounted cash flow	Weight Ascribed to Market Comparables	38.3%	0.0% - 50.0%	(4)
					Weight Ascribed to Discounted Cash Flow	61.7%	50.0% - 100.0%	(5)
				Market comparables	Enterprise Value/LTM EBITDA Multiple	6.3x	6.1x - 6.3x	Increase
					Enterprise Value/Forward EBITDA Multiple	5.7x	5.4x - 7.9x	Increase
				Discounted cash flow	Weighted Average Cost of Capital	10.8%	10.2% - 14.2%	Decrease
					Average Price Per BOE (8)	$33.53	$28.71 - $35.89	Increase

Infrastructure	$	880,209	(9)	Inputs to market comparables, discounted cash flow and transaction price	Weight Ascribed to Market Comparables	5.8%	0.0% - 25.0%	(4)
					Weight Ascribed to Discounted Cash Flow	17.4%	0.0% - 75.0%	(5)
					Weight Ascribed to Transaction Price	76.8%	0.0% - 100.0%	(6)

Real Estate	$	2,830,877		Inputs to direct income capitalization and discounted cash flow	Weight Ascribed to Direct Income Capitalization	16.2%	0.0% - 100.0%	(7)
					Weight Ascribed to Discounted Cash Flow	83.8%	0.0% - 100.0%	(5)
				Direct income capitalization	Current Capitalization Rate	5.7%	3.8% - 7.9%	Decrease
				Discounted cash flow	Unlevered Discount Rate	6.7%	4.9% - 18.0%	Decrease

Equity Method - Other	$	1,014,378		Inputs to market comparables, discounted cash flow and transaction price	Illiquidity Discount	9.4%	5.0% - 15.0%	Decrease
					Weight Ascribed to Market Comparables	43.2%	0.0% - 100.0%	(4)
					Weight Ascribed to Discounted Cash Flow	49.9%	0.0% - 100.0%	(5)
					Weight Ascribed to Transaction Price	6.9%	0.0% - 50.0%	(6)

Fair Value December 31, 2020

Valuation
Methodologies

Unobservable Input(s) (1)

Weighted

Average (2)

Range

Impact to

Valuation

from an

Increase in

Input (3)

Market comparables

Enterprise Value/LTM EBITDA Multiple

13.6x

10.9x - 26.4x

Increase

Enterprise Value/Forward EBITDA Multiple

12.7x

10.6x - 22.0x

Increase

Discounted cash flow

Weighted Average Cost of Capital

8.8%

5.4% - 18.3%

Decrease

Enterprise Value/LTM EBITDA Exit Multiple

10.9x

6.0x - 15.0x

Increase

Other Investments

2,341,981

(10)

Inputs to market comparables, discounted cash flow and transaction price

Illiquidity Discount

10.2%

5.0% - 20.0%

Decrease

Weight Ascribed to Market Comparables

35.6%

0.0% - 100.0%

(4)

Weight Ascribed to Discounted Cash Flow

40.6%

0.0% - 100.0%

(5)

Weight Ascribed to Transaction Price

23.8%

0.0% - 100.0%

(6)

Market comparables

Enterprise Value/LTM EBITDA Multiple

12.7x

1.5x - 29.5x

Increase

Enterprise Value/Forward EBITDA Multiple

11.8x

1.5x - 15.1x

Increase

Discounted cash flow

Weighted Average Cost of Capital

14.2%

8.3% - 25.0%

Decrease

Enterprise Value/LTM EBITDA Exit Multiple

9.5x

8.0x - 11.0x

Increase

(1)In determining certain of these inputs, management evaluates a variety of factors including economic conditions, industry and market developments, market valuations of comparable companies and company specific developments including exit strategies and realization opportunities. Management has determined that market participants would take these inputs into account when valuing the investments and debt obligations. LTM means last twelve months and EBITDA means earnings before interest, taxes, depreciation and amortization.

(2)Inputs were weighted based on the fair value of the investments included in the range.

(3)Unless otherwise noted, this column represents the directional change in the fair value of the Level III investments that would result from an increase to the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect. Significant increases and decreases in these inputs in isolation could result in significantly higher or lower fair value measurements.

(4)The directional change from an increase in the weight ascribed to the market comparables approach would increase the fair value of the Level III investments if the market comparables approach results in a higher valuation than the discounted cash flow approach and transaction price. The opposite would be true if the market comparables approach results in a lower valuation than the discounted cash flow approach and transaction price.

(5)The directional change from an increase in the weight ascribed to the discounted cash flow approach would increase the fair value of the Level III investments if the discounted cash flow approach results in a higher valuation than the market comparables approach, transaction price and direct income capitalization approach. The opposite would be true if the discounted cash flow approach results in a lower valuation than the market comparables approach, transaction price and direct income capitalization approach.

(6)The directional change from an increase in the weight ascribed to the transaction price or milestones would increase the fair value of the Level III investments if the transaction price or milestones results in a higher valuation than the market comparables and discounted cash flow approach. The opposite would be true if the transaction price or milestones results in a lower valuation than the market comparables approach and discounted cash flow approach.

(7)The directional change from an increase in the weight ascribed to the direct income capitalization approach would increase the fair value of the Level III investments if the direct income capitalization approach results in a higher valuation than the discounted cash flow approach. The opposite would be true if the direct income capitalization approach results in a lower valuation than the discounted cash flow approach.

(8)The total energy fair value amount includes multiple investments (in multiple locations throughout North America) that are held in multiple investment funds and produce varying quantities of oil, condensate, natural gas liquids, and natural gas. Commodity price may be measured using a common volumetric equivalent where one barrel of oil equivalent ("BOE"), is determined using the ratio of six thousand cubic feet of natural gas to one barrel of oil, condensate or natural gas liquids. The price per BOE is provided to show the aggregate of all price inputs for the various investments over a common volumetric equivalent although the valuations for specific investments may use price inputs specific to the asset for purposes of our valuations. The discounted cash flows include forecasted production of liquids (oil, condensate, and natural gas liquids) and natural gas with a forecasted revenue ratio of approximately 83% liquids and 17% natural gas.

(9)Consists of three infrastructure investments. Two infrastructure investments purchased in 2020 were valued at the acquisition price since this was believed to be the best indicator of fair value. Other investment was valued using a market comparables and discounted cash flow analysis. The significant inputs used in the market comparables approach included the Forward EBITDA multiple 10.4x. The significant inputs used in the discounted cash flow approach included the weighted average cost of capital 7.6% and the enterprise value/LTM EBITDA exit multiple 10.0x.

(10)Consists primarily of investments in common stock, preferred stock, warrants and options of companies that are not private equity, real assets, credit, equity method - other or investments of consolidated CFEs.