KKR & Co. L.P. Announces Fourth Quarter and Full Year 2012 Results

  KKR & Co. L.P. Announces Fourth Quarter and Full Year 2012 Results

 Significant realization activity drives record total distributable earnings

GAAP net income (loss) attributable to KKR & Co. L.P. was $96.7 million and
$560.8 million for the quarter and year ended December 31, 2012, respectively,
up from $46.1 million and $1.9 million in the comparable periods of 2011.

Assets under management (“AUM”) totaled $75.5 billion as of December 31, 2012,
up from $66.3 billion as of September 30, 2012.

Fee related earnings (“FRE”) were $86.0 million and $319.8 million for the
quarter and year ended December 31, 2012, respectively, down from $116.6
million and $417.2 million in the comparable periods of 2011.

Total distributable earnings were $546.3 million and $1,449.4 million for the
quarter and year ended December 31, 2012, respectively, up from $146.5 million
and $782.6 million in the comparable periods of 2011.

Economic net income (loss) (“ENI”) was $347.7 million and $2,130.9 million for
the quarter and year ended December 31, 2012, respectively, up from $285.5
million and $750.9 million in the comparable periods of 2011.

After-tax ENI was $0.48 and $2.90 per adjusted unit for the quarter and year
ended December 31, 2012, respectively, up from $0.33 and $0.73 per adjusted
unit in the comparable periods of 2011.

Book value was $7.0 billion on a segment basis as of December 31, 2012,
representing $9.87 per adjusted unit.

KKR & Co. L.P. declares a fourth quarter distribution of $0.70 per common
unit, bringing year-to-date distributions for 2012 to $1.22 per common unit,
up from $0.74 per common unit for 2011.

Business Wire

NEW YORK -- February 7, 2013

KKR & Co. L.P. (NYSE: KKR) today reported its fourth quarter and full year
2012 results.

For the fourth quarter and full year 2012, the carrying value of KKR’s private
equity investment portfolio appreciated 4.0% and 23.8%, respectively, driving
meaningful ENI.

ENI was $347.7 million for the quarter ended December 31, 2012, an increase of
$62.2 million compared to the quarter ended December 31, 2011. The increase
was primarily attributable to higher net carried interest earned from our
investment funds. ENI was $2,130.9 million for the year ended December 31,
2012, an increase of $1,380.0 million compared to the year ended December 31,
2011. The increase was primarily due to a higher level of appreciation in the
carrying value of our principal investments and greater net carried interest
earned from our investment funds.

Total distributable earnings was $546.3 million and $1,449.4 million for the
quarter and year ended December 31, 2012, respectively, an increase of $399.8
million and $666.8 million from the comparable periods in 2011. The increase
in both comparative periods is due to a higher level of realization activity
in our private equity investment portfolio.

On October 1, 2012, we closed our acquisition of Prisma Capital Partners LP
and its affiliates (“Prisma”), a leading provider of customized hedge fund
solutions. Prisma’s results have been reported as part of our Public Markets
segment in the fourth quarter of 2012. As of December 31, 2012, Prisma had
$8.5 billion of assets under management.

AUM was $75.5 billion as of December 31, 2012, an increase of $9.2 billion, or
13.9%, compared to AUM of $66.3 billion as of September 30, 2012. Fee paying
assets under management (“FPAUM”) was $60.8 billion as of December 31, 2012,
an increase of $10.5 billion, or 20.9%, compared to FPAUM of $50.3 billion as
of September 30, 2012. The increases in both AUM and FPAUM were primarily
attributable to new capital from the acquisition of Prisma and to a lesser
extent new capital raised and appreciation in the fair value of our investment
vehicles. The increases were partially offset by distributions to limited
partners of our investment funds. Neither AUM nor FPAUM include $4.0 biillion
(includes general partner commitment) of capital raised for our second Asian
private equity fund.

On January 23, 2013, we announced the acquisition of a 24.9% interest in
Nephila Capital Ltd. (“Nephila”). Nephila is a leading investment manager that
offers a broad range of investment products focusing on reinsurance risk,
investing in instruments such as insurance-linked securities, catastrophe
bonds, and weather derivatives. Nephila has assets under management of
approximately $8 billion as of January 1, 2013 and has been managing
institutional assets in this space since it was founded in 1998. This
strategic partnership increases our breadth of liquid product offerings
through a strategy which is uncorrelated to the global financial markets
relative to other asset classes. Nephila’s assets under management are not
included in KKR’s results.

“Our private equity portfolio and our balance sheet both appreciated 24% in
2012, outperforming the S&P 500 and MSCI World indices by over 700 basis
points,” said Henry R. Kravis and George R. Roberts, Co-Chairmen and Co-Chief
Executive Officers of KKR. “In addition, in 2012 we completed transactions
which returned over $9 billion to all investors in our private equity funds
and co-investment vehicles, the highest figure in our 36-year history, and
contributed to a record annual distribution of $1.22 per common unit. We are
pleased with our results.”


Note: Certain financial measures, including FRE, ENI, after-tax ENI, after-tax
ENI per adjusted unit, fee related EBITDA, book value, cash and short-term
investments and adjusted units, are not presented in accordance with
accounting principles generally accepted in the United States of America
(“GAAP”). See Exhibits A and B for a reconciliation of such measures to
financial results prepared in accordance with GAAP. See calculation and
reconciliation of total distributable earnings under “Distribution
Calculation.”


GAAP RESULTS

GAAP results for the quarter and year ended December 31, 2012 included net
income attributable to KKR & Co. L.P. of $96.7 million and $560.8 million,
respectively, and net income attributable to KKR & Co. L.P. per common unit of
$0.36 and $2.21, respectively, on a diluted basis. For the quarter and year
ended December 31, 2011, net income attributable to KKR & Co. L.P. was $46.1
million and $1.9 million, respectively, and net income attributable to KKR &
Co. L.P. per common unit was $0.20 and $0.01, respectively, on a diluted
basis. The increases in both comparable periods were primarily due to a
greater level of investment appreciation for the quarter and year ended
December 31, 2012 compared to the quarter and year ended December 31, 2011.
This increase in investment appreciation, which is recorded in net gains
(losses) from investment activities, was partially offset by an increase in
compensation and benefits expense

SEGMENT RESULTS

Private Markets

AUM was $49.1 billion as of December 31, 2012, a decrease of $0.7 billion, or
1.4%, compared to AUM of $49.8 billion as of September 30, 2012. The decrease
was primarily attributable to distributions to the limited partners of our
private equity funds arising from realizations. The decrease was partially
offset by the appreciation in the fair value of our private equity portfolio
and new capital raised.

FPAUM was $41.2 billion as of December 31, 2012, an increase of $0.8 billion,
or 2.0%, compared to FPAUM of $40.4 billion as of September 30, 2012. The
increase was primarily due to new capital raised, partially offset by
distributions to the limited partners of our private equity funds arising from
realizations.

FRE was $32.4 million for the quarter ended December 31, 2012, a decrease of
$24.6 million, or 43.2%, compared to FRE of $57.0 million for the quarter
ended December 31, 2011. The decrease was principally attributable to (i) a
lower level of transaction fees during the quarter ended December 31, 2012, as
a result of closing relatively smaller transaction fee-generating investments,
which in turn produced lower transaction fees and (ii) higher compensation
expense in connection with increased headcount. The decrease was partially
offset by a higher level of monitoring fees as a result of new monitoring
agreements with portfolio companies acquired over the past year.

FRE was $151.0 million for the year ended December 31, 2012, a decrease of
$75.6 million, or 33.4%, compared to FRE of $226.6 million for year ended
December 31, 2011. The decrease was primarily attributable to (i) a lower
level of transaction fees during the year ended December 31, 2012 as a result
of closing relatively smaller transaction fee-generating investments, which in
turn produced lower transaction fees; (ii) lower monitoring fees as a result
of $76.6 million of termination payments on monitoring agreements with three
portfolio companies during the year ended December 31, 2011, which increased
FRE by $39.7 million net of associated fee credits and (iii) higher
compensation expense in connection with increased headcount.

ENI was $177.8 million for the quarter ended December 31, 2012, an increase of
$68.0 million, or 61.9%, compared to ENI of $109.8 million for the quarter
ended December 31, 2011. ENI was $831.7 million for the year ended December
31, 2012, an increase of $468.9 million, or 129.2%, compared to ENI of $362.8
million for the year ended December 31, 2011. The increase in both comparative
periods was primarily attributable to higher net carried interest driven by a
greater level of appreciation in our private equity portfolio, partially
offset by the decrease in FRE discussed above.

Public Markets

AUM was $26.4 billion as of December 31, 2012, an increase of $9.9 billion, or
60.0%, compared to AUM of $16.5 billion as of September 30, 2012. FPAUM was
$19.7 billion as of December 31, 2012, an increase of $9.8 billion, or 99.0%,
compared to FPAUM of $9.9 billion as of September 30, 2012. The increase in
both AUM and FPAUM were primarily attributable to new capital from the
acquisition of Prisma and to a lesser extent net new capital raised.

FRE was $29.4 million for the quarter ended December 31, 2012, an increase of
$17.6 million compared to FRE of $11.8 million for the quarter ended December
31, 2011. FRE was $80.5 million for the year ended December 31, 2012, an
increase of $20.9 million compared to FRE of $59.6 million for year ended
December 31, 2011. The increase in both comparable periods was primarily due
to (i) higher management fees related to new capital raised as well as the
acquisition of Prisma and (ii) higher incentive fees earned.

ENI was $37.4 million for the quarter ended December 31, 2012, an increase of
$25.6 million compared to ENI of $11.8 million for the quarter ended December
31, 2011. The increase was primarily attributable to the increase in FRE
discussed above and to a lesser extent a higher level of net carried interest
recognized driven by the appreciation in the net asset value of certain
carry-eligible investment vehicles.

ENI was $102.9 million for the year ended December 31, 2012, an increase of
$44.9 million compared to ENI of $58.0 million for year ended December 31,
2011. The increase was principally attributable to the increase in FRE
discussed above and net carried interest recognized for the year ended
December 31, 2012 driven by the appreciation in the net asset value of certain
carry-eligible investment vehicles. For the year ended December 31, 2011,
there was a reversal of previously recognized net carried interest due to a
decline in the carrying value of certain carry-eligible investment vehicles.

Capital Markets and Principal Activities

FRE was $24.2 million for the quarter ended December 31, 2012, a decrease of
$23.6 million, or 49.4%, compared to FRE of $47.8 million for the quarter
ended December 31, 2011. FRE was $88.3 million for the year ended December 31,
2012, a decrease of $42.6 million, or 32.5%, compared to FRE of $130.9 million
for year ended December 31, 2011.  The decrease in both comparative periods
was primarily driven by a lower level of overall capital markets transaction
activity.

ENI was $132.6 million for the quarter ended December 31, 2012, a decrease of
$31.2 million, or 19.0%, compared to ENI of $163.8 million for the quarter
ended December 31, 2011. The decrease was principally attributable to the
decrease in FRE discussed above and to a lesser extent a lower level of
investment income. While the fair value of our principal investments increased
during the fourth quarter of 2012, the level of appreciation was lower than in
the comparable period of 2011.

ENI was $1,196.2 million for the year ended December 31, 2012, an increase of
$866.0 million compared to ENI of $330.2 million for year ended December 31,
2011. The increase was primarily driven by a higher level of appreciation in
the carrying value of our principal investments, partially offset by the
decrease in FRE discussed above.

CAPITAL AND LIQUIDITY

As of December 31, 2012, KKR had $1,534.3 million of cash and short-term
investments on a segment basis and $500.0 million of outstanding debt
obligations under its senior notes. KKR’s availability for further borrowings
was approximately $750.0 million (which does not include a $500.0 million
revolving credit facility for use in its capital markets business that was
undrawn as of December 31, 2012).

On February 1, 2013, KKR issued $500.0 million of 5.5% senior notes due in
2043. The senior notes are rated A and A- by Fitch and Standard & Poor’s,
respectively.

As of December 31, 2012, KKR’s portion of total uncalled commitments to its
investment funds was $677.9 million, consisting of the following (amounts in
thousands):

                                  
                                    Uncalled

                                    Commitments
Private Markets
North America Fund XI               $  232,100
European Fund III                      174,000
2006 Fund                              64,700
Asian Fund                             35,400
Infrastructure                         34,100
E2 Investors (Annex Fund)              14,000
Natural Resources                      13,600
China Growth Fund                      6,400
Other                                 10,800
Total Private Markets Commitments     585,100
                                    
Public Markets
Direct Lending Vehicles                33,700
Special Situations Vehicles            29,200
Mezzanine Fund                        29,900
Total Public Markets Commitments      92,800
                                    
Total Uncalled Commitments          $  677,900
                                       

DISTRIBUTION

A distribution of $0.70 per common unit will be paid on March 5, 2013 to
unitholders of record as of the close of business on February 19, 2013.

CONFERENCE CALL

A conference call to discuss KKR’s financial results will be held on Thursday,
February 7, 2013 at 10:00 a.m. EST. The conference call may be accessed by
dialing (877) 303-2917 (U.S. callers) or +1 (253) 237-1135 (non-U.S. callers);
a pass code is not required. Additionally, the conference call will be
broadcast live over the Internet and may be accessed through the Public
Investors section of KKR’s website at http://ir.kkr.com/kkr_ir/kkr_events.cfm.
A replay of the live broadcast will be available on KKR’s website or by
dialing (855) 859-2056 (U.S. callers) and +1 (404) 537-3406 (non-U.S.
callers), pass code 86899275, beginning approximately two hours after the
broadcast.

From time to time, KKR may use its website as a channel of distribution of
material company information. Financial and other important information
regarding KKR is routinely posted and accessible on the Public Investors
section of KKR’s website at http://ir.kkr.com/kkr_ir/alerts.cfm. In addition,
you may automatically receive email alerts and other information about KKR by
enrolling your email address at the “Email Alerts” area of the Public
Investors section of the website.

ABOUT KKR

Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a leading
global investment firm with $75.5 billion in assets under management as of
December 31, 2012. With offices around the world,KKR manages assets through a
variety of investment funds and accounts covering multiple asset classes. KKR
seeks to create value by bringing operational expertise to its portfolio
companies and through active oversight and monitoring of its investments. KKR
complements its investment expertise and strengthens interactions with fund
investors through its client relationships and capital markets platform. KKR &
Co. L.P. is publicly traded on the New York Stock Exchange (NYSE: KKR), and
"KKR," as used in this release, includes its subsidiaries, their managed
investment funds and accounts, and/or their affiliated investment vehicles, as
appropriate. For additional information, please visit KKR's website at
www.kkr.com.

FORWARD-LOOKING STATEMENTS

This release contains certain forward-looking statements. Forward-looking
statements relate to expectations, beliefs, projections, future plans and
strategies, anticipated events or trends and similar expressions concerning
matters that are not historical facts. The forward-looking statements are
based on KKR’s beliefs, assumptions and expectations of its future
performance, taking into account all information currently available to it.
These beliefs, assumptions and expectations can change as a result of many
possible events or factors, not all of which are known to KKR or are within
its control. If a change occurs, KKR’s business, financial condition,
liquidity and results of operations, including but not limited to AUM, FPAUM,
FRE, total distributable earnings, ENI, after-tax ENI, fee related EBITDA,
committed dollars invested and syndicated capital, uncalled commitments, core
interest expense, cash and short-term investments and book value, may vary
materially from those expressed in the forward-looking statements. The
following factors, among others, could cause actual results to vary from the
forward-looking statements: the general volatility of the capital markets;
failure to realize the benefits of or changes in KKR’s business strategies
including the ability to realize the anticipated synergies from the
acquisitions or strategic partnerships such as Prisma or Nephila;
availability, terms and deployment of capital; availability of qualified
personnel and expense of recruiting and retaining such personnel; changes in
the asset management industry, interest rates or the general economy;
underperformance of KKR's investments and decreased ability to raise funds;
and the degree and nature of KKR’s competition. KKR does not undertake any
obligation to update any forward-looking statements to reflect circumstances
or events that occur after the date on which such statements were made except
as required by law. In addition, KKR’s business strategy is focused on the
long term and financial results are subject to significant volatility.
Additional information about factors affecting KKR is available in KKR & Co.
L.P.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011,
filed with the SEC on February 27, 2012 and Quarterly Report on Form 10-Q for
the quarter ended September 30, 2012 filed with the SEC on November 2, 2012,
and other filings with the SEC, which are available at www.sec.gov.

                                                                  
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,      December 31,      December 31,      December 31,
                 2012              2011              2012              2011
Revenues
Fees             $ 177,621        $ 209,357        $ 568,442        $ 723,620     
                                                                       
Expenses
Compensation       261,454           190,832           1,280,854         868,749
and Benefits
Occupancy and
Related            14,569            15,197            58,205            54,282
Charges
General,
Administrative    82,249          124,108         259,729         290,974     
and Other
Total Expenses    358,272         330,137         1,598,788       1,214,005   
                                                                       
Investment
Income (Loss)
Net Gains
(Losses) from      874,507           514,580           7,871,673         981,858
Investment
Activities
Dividend           677,590           117,944           940,888           225,073
Income
Interest           98,929            102,968           358,598           321,943
Income
Interest          (16,407     )    (20,393     )    (69,164     )    (72,758     )
Expense
Total
Investment        1,634,619       715,099         9,101,995       1,456,116   
Income (Loss)
                                                                       
Income (Loss)      1,453,968         594,319           8,071,649         965,731
Before Taxes
                                                                       
Income Taxes      5,628           21,322          43,405          89,245      
                                                                       
Net Income         1,448,340         572,997           8,028,244         876,486
(Loss)
                                                                       
Net Income
(Loss)
Attributable
to
Redeemable
Noncontrolling     16,412            4,318             34,963            4,318
Interests
Net Income
(Loss)
Attributable
to
Noncontrolling     1,335,200         522,542           7,432,445         870,247
Interests
                                                                    
Net Income
(Loss)
Attributable     $ 96,728         $ 46,137         $ 560,836        $ 1,921       
to KKR & Co.
L.P.
                                                                       
Distributions
Declared per     $ 0.70            $ 0.32            $ 1.22            $ 0.74
KKR & Co. L.P.
Common Unit
                                                                       
Net Income
(Loss)
Attributable
to KKR & Co.
L.P. Per
Common Unit
Basic            $ 0.39            $ 0.20            $ 2.35            $ 0.01
Diluted (a)      $ 0.36            $ 0.20            $ 2.21            $ 0.01
Weighted
Average Common
Units
Outstanding
Basic              249,303,558       225,382,001       238,503,257       220,235,469
Diluted (a)        268,192,128       231,361,032       254,093,160       222,519,174

    
      KKR Holdings L.P. units have been excluded from the calculation of
      diluted earnings per common unit given that the exchange of these units
(a)  would proportionally increase KKR & Co. L.P.’s interests in KKR’s
      business and would have an anti-dilutive effect on earnings per common
      unit as a result of certain tax benefits KKR & Co. L.P. is assumed to
      receive upon the exchange.


KKR
STATEMENTS OF OPERATIONS AND OTHER SELECTED FINANCIAL INFORMATION
TOTAL REPORTABLE SEGMENTS (UNAUDITED)
(Amounts in thousands, except unit and per unit amounts)
                                                                               
                 Quarter Ended                                      Year Ended
                 December 31,     September 30,    December 31,     December 31,     December 31,
                 2012             2012             2011             2012             2011
Fees
Management and
incentive
fees:
Management       $ 144,355        $ 126,483        $ 127,556        $ 529,107        $ 515,384
fees
Incentive fees    12,350         17,768         6,084          43,845         34,243     
Management and    156,705        144,251        133,640        572,952        549,627    
incentive fees
                                                                                     
Monitoring and
transaction
fees:
Monitoring         32,988           29,969           21,797           116,565          163,769
fees
Transaction        76,840           75,264           128,338          240,108          349,130
fees
Fee credits       (37,991    )    (31,707    )    (36,862    )    (105,730   )    (150,858   )
Net monitoring
and               71,837         73,526         113,273        250,943        362,041    
transaction
fees
                                                                                     
Total fees        228,542        217,777        246,913        823,895        911,668    
                                                                                     
Expenses
Compensation       76,001           71,340           65,038           272,811          257,951
and benefits
Occupancy and
related            13,763           13,605           14,353           55,068           51,009
charges
Other
operating         52,799         42,128         50,947         176,205        185,555    
expenses
Total expenses    142,563        127,073        130,338        504,084        494,515    
(a)
                                                                                     
Fee Related       85,979         90,704         116,575        319,811        417,153    
Earnings
                                                                                     
Investment
income (loss)
Gross carried      268,936          410,736          96,503           1,431,910        263,621
interest
Less:
allocation to      (107,514   )     (169,633   )     (40,410    )     (581,206   )     (108,325   )
KKR carry pool
Less:
management fee    (8,712     )    (61,499    )    (1,993     )    (143,723   )    (17,587    )
refunds (b)
Net carried        152,710          179,604          54,100           706,981          137,709
interest
Other
investment        110,236        240,876        117,039        1,111,122      202,758    
income (loss)
Total
investment        262,946        420,480        171,139        1,818,103      340,467    
income (loss)
                                                                                     
Income (Loss)
before
noncontrolling
interests
in Income of
consolidated       348,925          511,184          287,714          2,137,914        757,620
entities
Income (Loss)
attributable
to
noncontrolling    1,245          1,310          2,220          7,043          6,671      
interests
                                                                                     
Economic Net     $ 347,680       $ 509,874       $ 285,494       $ 2,130,871     $ 750,949    
Income (Loss)
                                                                                     
Provision for      10,632           22,548           59,988           102,420          248,082
Income Taxes
                                                                                     
Economic Net
Income (Loss),   $ 337,048       $ 487,326       $ 225,506       $ 2,028,451     $ 502,867    
After Taxes
(c)
                                                                                     
Economic Net
Income (Loss),
After Taxes      $ 0.48           $ 0.69           $ 0.33           $ 2.90           $ 0.73
per Adjusted
Unit (c)
                                                                           
Assets Under     $ 75,527,500     $ 66,278,700     $ 59,008,600     $ 75,527,500     $ 59,008,600
Management
Fee Paying
Assets Under     $ 60,846,000     $ 50,266,000     $ 46,397,300     $ 60,846,000     $ 46,397,300
Management
Committed
Dollars
Invested and     $ 1,715,700      $ 926,000        $ 2,582,600      $ 4,354,900      $ 6,014,000
Syndicated
Capital
Uncalled        $ 16,071,900   $ 15,845,900   $ 11,400,500   $ 16,071,900   $ 11,400,500 
Commitments
                                                                           
Other
Information
Fee Related      $ 85,979         $ 90,704         $ 116,575        $ 319,811        $ 417,153
Earnings
Plus:
depreciation      3,580          3,273          2,528          12,499         9,925      
and
amortization
Fee Related      $ 89,559        $ 93,977        $ 119,103       $ 332,310       $ 427,078    
EBITDA
                                                                                     
Distributed      $ 179,412        $ 187,174        $ 195,725        $ 582,620        $ 596,306
Earnings
Plus: Net
realized
principal         366,878        145,700        (49,237    )    866,776        186,288    
investment
income
Total
Distributable    $ 546,290       $ 332,874       $ 146,488       $ 1,449,396     $ 782,594    
Earnings (c)
                                                                                     
GAAP interest    $ 16,407         $ 17,868         $ 20,393         $ 69,164         $ 72,758
expense
Less: interest
expense
related to
debt
obligations
from
investment        7,014          8,502          9,598          31,050         30,160     
financing
arrangements
Core Interest    $ 9,393         $ 9,366         $ 10,795        $ 38,114        $ 42,598     
Expense (c)


    
      Excludes a $15.2 million, $17.4 million and $5.5 million charge for
      non-cash equity based compensation during the quarters ended December
      31, 2012, September 30, 2012, and December 31, 2011, respectively,
(a)  associated with equity awards granted under the KKR & Co. L.P. 2010
      Equity Incentive Plan. Excludes a $62.9 million and $16.7 million charge
      for non-cash equity based compensation during the years ended December
      31, 2012 and 2011, respectively, associated with equity awards granted
      under the KKR & Co. L.P. 2010 Equity Incentive Plan.
      As of December 31, 2012, there is no carried interest subject to
(b)   management fee refunds, which may reduce carried interest in future
      periods.
      See definitions for after-tax ENI, adjusted units, total distributable
(c)   earnings, and core interest expense under “Notes to Reportable
      Segments.”
      

                                                                               
KKR
STATEMENTS OF OPERATIONS AND OTHER SELECTED FINANCIAL INFORMATION
PRIVATE MARKETS SEGMENT (UNAUDITED)
(Amounts in thousands)
                                                                                     
                 Quarter Ended                                      Year Ended
                 December 31,     September 30,    December 31,     December 31,     December 31,
                 2012             2012             2011             2012             2011
Fees
Management and
incentive
fees:
Management       $ 104,804        $ 105,035        $ 106,716        $ 423,921        $ 430,400
fees
Incentive fees    -              -              -              -              -          
Management and    104,804        105,035        106,716        423,921        430,400    
incentive fees
                                                                                     
Monitoring and
transaction
fees:
Monitoring         32,988           29,969           21,797           116,565          163,769
fees
Transaction        41,231           32,788           65,148           96,454           166,654
fees
Fee credits       (37,721    )    (26,293    )    (34,799    )    (97,362    )    (144,928   )
Net monitoring
and               36,498         36,464         52,146         115,657        185,495    
transaction
fees
                                                                                     
Total fees        141,302        141,499        158,862        539,578        615,895    
                                                                                     
Expenses
Compensation       53,383           48,905           46,139           192,765          185,709
and benefits
Occupancy and
related            12,075           12,049           12,902           48,562           45,694
charges
Other
operating         43,463         35,885         42,825         147,253        157,901    
expenses
Total expenses    108,921        96,839         101,866        388,580        389,304    
                                                                                     
Fee Related       32,381         44,660         56,996         150,998        226,591    
Earnings
                                                                                     
Investment
income (loss)
Gross carried      255,296          391,168          96,115           1,392,755        266,211
interest
Less:
allocation to      (102,058   )     (161,805   )     (40,255    )     (565,543   )     (109,361   )
KKR carry pool
Less:
management fee    (8,712     )    (61,499    )    (1,993     )    (143,723   )    (17,587    )
refunds
Net carried        144,526          167,864          53,867           683,489          139,263
interest
Other
investment        1,158          1,779          (364       )    599            (549       )
income (loss)
Total
investment        145,684        169,643        53,503         684,088        138,714    
income (loss)
                                                                                     
Income (Loss)
before
noncontrolling
interests
in Income of
consolidated       178,065          214,303          110,499          835,086          365,305
entities
Income (Loss)
attributable
to
noncontrolling    292            444            651            3,390          2,536      
interests
                                                                                     
Economic Net     $ 177,773       $ 213,859       $ 109,848       $ 831,696       $ 362,769    
Income (Loss)
                                                                                     
                                                                                     
Assets Under     $ 49,127,600     $ 49,771,000     $ 43,627,900     $ 49,127,600     $ 43,627,900
Management
Fee Paying
Assets Under     $ 41,173,000     $ 40,354,200     $ 37,869,700     $ 41,173,000     $ 37,869,700
Management
Committed
Dollars          $ 1,220,800      $ 623,000        $ 2,148,400      $ 3,026,300      $ 5,033,300
Invested
Uncalled         $ 14,271,100     $ 14,594,700     $ 10,070,300     $ 14,271,100     $ 10,070,300
Commitments



KKR
STATEMENTS OF OPERATIONS AND OTHER SELECTED FINANCIAL INFORMATION
PUBLIC MARKETS SEGMENT (UNAUDITED)
(Amounts in thousands)
                                                                               
                 Quarter Ended                                      Year Ended
                 December 31,     September 30,    December 31,    December 31,     December 31,
                 2012             2012             2011             2012             2011
Fees
Management and
incentive
fees:
Management       $ 39,551         $ 21,448         $ 20,840         $ 105,186        $ 84,984
fees
Incentive fees    12,350         17,768         6,084          43,845         34,243     
Management and    51,901         39,216         26,924         149,031        119,227    
incentive fees
                                                                                     
Monitoring and
transaction
fees:
Monitoring         -                -                -                -                -
fees
Transaction        1,974            8,780            4,151            14,495           11,996
fees
Fee credits       (270       )    (5,414     )    (2,063     )    (8,368     )    (5,930     )
Net monitoring
and               1,704          3,366          2,088          6,127          6,066      
transaction
fees
                                                                                     
Total fees        53,605         42,582         29,012         155,158        125,293    
                                                                                     
Expenses
Compensation       16,097           13,997           12,166           50,705           46,133
and benefits
Occupancy and
related            1,479            1,343            1,189            5,606            4,059
charges
Other
operating         6,596          3,897          3,834          18,350         15,483     
expenses
Total expenses    24,172         19,237         17,189         74,661         65,675     
                                                                                     
Fee Related       29,433         23,345         11,823         80,497         59,618     
Earnings
                                                                                     
Investment
income (loss)
Gross carried      13,640           19,568           388              39,155           (2,590     )
interest
Less:
allocation to      (5,456     )     (7,828     )     (155       )     (15,663    )     1,036
KKR carry pool
Less:
management fee    -              -              -              -              -          
refunds
Net carried        8,184            11,740           233              23,492           (1,554     )
interest
Other
investment        30             25             (93        )    20             505        
income (loss)
Total
investment        8,214          11,765         140            23,512         (1,049     )
income (loss)
                                                                                     
Income (Loss)
before
noncontrolling
interests
in Income of
consolidated       37,647           35,110           11,963           104,009          58,569
entities
Income (Loss)
attributable
to
noncontrolling    292            233            119            1,079          599        
interests
                                                                                     
Economic Net     $ 37,355        $ 34,877        $ 11,844        $ 102,930       $ 57,970     
Income (Loss)
                                                                                     
Assets Under     $ 26,399,900     $ 16,507,700     $ 15,380,700     $ 26,399,900     $ 15,380,700
Management
Fee Paying
Assets Under     $ 19,673,000     $ 9,911,800      $ 8,527,600      $ 19,673,000     $ 8,527,600
Management
Committed
Dollars          $ 226,400        $ 278,300        $ 434,200        $ 784,800        $ 980,700
Invested
Uncalled         $ 1,800,800      $ 1,251,200      $ 1,330,200      $ 1,800,800      $ 1,330,200
Commitments
                                                                                                  

                                                               
KKR
STATEMENTS OF OPERATIONS AND OTHER SELECTED FINANCIAL INFORMATION
CAPITAL MARKETS AND PRINCIPAL ACTIVITIES SEGMENT (UNAUDITED)
(Amounts in thousands)
                                                                     
                 Quarter Ended                         Year Ended
                 December    September   December      December      December
                 31, 2012    30, 2012    31, 2011      31, 2012      31, 2011
Fees
Management and
incentive
fees:
Management       $ -         $ -         $ -           $ -           $ -
fees
Incentive fees    -          -          -            -            -
Management and    -          -          -            -            -
incentive fees
                                                                     
Monitoring and
transaction
fees:
Monitoring         -           -           -             -             -
fees
Transaction        33,635      33,696      59,039        129,159       170,480
fees
Fee credits       -          -          -            -            -
Net monitoring
and               33,635     33,696     59,039       129,159      170,480
transaction
fees
                                                                     
Total fees        33,635     33,696     59,039       129,159      170,480
                                                                     
Expenses
Compensation       6,521       8,438       6,733         29,341        26,109
and benefits
Occupancy and
related            209         213         262           900           1,256
charges
Other
operating         2,740      2,346      4,288        10,602       12,171
expenses
Total expenses    9,470      10,997     11,283       40,843       39,536
                                                                     
Fee Related       24,165     22,699     47,756       88,316       130,944
Earnings
                                                                     
Investment
income (loss)
Gross carried      -           -           -             -             -
interest
Less:
allocation to      -           -           -             -             -
KKR carry pool
Less:
management fee    -          -          -            -            -
refunds
Net carried        -           -           -             -             -
interest
Other
investment        109,048    239,072    117,496      1,110,503    202,802
income (loss)
Total
investment        109,048    239,072    117,496      1,110,503    202,802
income (loss)
                                                                     
Income (Loss)
before
noncontrolling
interests
in Income of
consolidated       133,213     261,771     165,252       1,198,819     333,746
entities
Income (Loss)
attributable
to
noncontrolling    661        633        1,450        2,574        3,536
interests
                                                                     
Economic Net     $ 132,552   $ 261,138   $ 163,802     $ 1,196,245   $ 330,210
Income (Loss)
                                                                     
                                                                     
Syndicated       $ 268,500   $ 24,700    $ 1,151,900   $ 543,800     $ 2,426,600
Capital
                                                                     

                                                             
KKR
STATEMENTS OF OPERATIONS
TOTAL REPORTABLE SEGMENTS (UNAUDITED)
Quarter Ended December 31, 2012
(Amounts in thousands)
                                                                  
                                                                  
                                                     Capital      Total
                                                     Markets
                   Private Markets   Public          and          Reportable
                                     Markets         Principal
                   Segment           Segment         Activities   Segments
                                                     Segment
                                                                  
Fees
Management and
incentive fees:
Management fees    $  104,804        $  39,551       $  -         $ 144,355
Incentive fees       -               12,350        -          12,350   
Management and       104,804         51,901        -          156,705  
incentive fees
                                                                  
Monitoring and
transaction
fees:
Monitoring fees       32,988            -               -           32,988
Transaction fees      41,231            1,974           33,635      76,840
Fee credits          (37,721   )      (270    )      -          (37,991  )
Net monitoring
and transaction      36,498          1,704         33,635     71,837   
fees
                                                                  
Total fees           141,302         53,605        33,635     228,542  
                                                                  
Expenses
Compensation and      53,383            16,097          6,521       76,001
benefits
Occupancy and         12,075            1,479           209         13,763
related charges
Other operating      43,463          6,596         2,740      52,799   
expenses
Total expenses       108,921         24,172        9,470      142,563  
                                                                  
Fee Related          32,381          29,433        24,165     85,979   
Earnings
                                                                  
Investment
income (loss)
Gross carried         255,296           13,640          -           268,936
interest
Less: allocation
to KKR carry          (102,058  )       (5,456  )       -           (107,514 )
pool
Less: management     (8,712    )      -             -          (8,712   )
fee refunds
Net carried           144,526           8,184           -           152,710
interest
Other investment     1,158           30            109,048    110,236  
income (loss)
Total investment     145,684         8,214         109,048    262,946  
income (loss)
                                                                  
Income (Loss)
before
noncontrolling
interests
in Income of
consolidated          178,065           37,647          133,213     348,925
entities
Income (Loss)
attributable to
noncontrolling        292               292             661         1,245
interests
                                                               
Economic Net       $  177,773       $  37,355      $  132,552   $ 347,680  
Income (Loss)
                                                                  

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

                                                              
KKR
STATEMENTS OF OPERATIONS
TOTAL REPORTABLE SEGMENTS (UNAUDITED)
Quarter Ended December 31, 2011
(Amounts in thousands)
                                                                   
                                                                   
                                                     Capital       Total
                                                     Markets
                    Private          Public          and           Reportable
                    Markets          Markets         Principal
                    Segment          Segment         Activities    Segments
                                                     Segment
                                                                   
Fees
Management and
incentive fees:
Management fees     $  106,716       $  20,840       $  -          $ 127,556
Incentive fees        -              6,084         -           6,084   
Management and        106,716        26,924        -           133,640 
incentive fees
                                                                   
Monitoring and
transaction fees:
Monitoring fees        21,797           -               -            21,797
Transaction fees       65,148           4,151           59,039       128,338
Fee credits           (34,799  )      (2,063  )      -           (36,862 )
Net monitoring
and transaction       52,146         2,088         59,039      113,273 
fees
                                                                   
Total fees            158,862        29,012        59,039      246,913 
                                                                   
Expenses
Compensation and       46,139           12,166          6,733        65,038
benefits
Occupancy and          12,902           1,189           262          14,353
related charges
Other operating       42,825         3,834         4,288       50,947  
expenses
Total expenses        101,866        17,189        11,283      130,338 
                                                                   
Fee Related           56,996         11,823        47,756      116,575 
Earnings
                                                                   
Investment income
(loss)
Gross carried          96,115           388             -            96,503
interest
Less: allocation       (40,255  )       (155    )       -            (40,410 )
to KKR carry pool
Less: management      (1,993   )      -             -           (1,993  )
fee refunds
Net carried            53,867           233             -            54,100
interest
Other investment      (364     )      (93     )      117,496     117,039 
income (loss)
Total investment      53,503         140           117,496     171,139 
income (loss)
                                                                   
Income (Loss)
before
noncontrolling
interests
in Income of
consolidated           110,499          11,963          165,252      287,714
entities
Income (Loss)
attributable to
noncontrolling         651              119             1,450        2,220
interests
                                                                
Economic Net        $  109,848      $  11,844      $  163,802    $ 285,494 
Income (Loss)
                                                                             


KKR
STATEMENTS OF OPERATIONS
TOTAL REPORTABLE SEGMENTS (UNAUDITED)
Year Ended December 31, 2012
(Amounts in thousands)
                                                            
                                                                 
                                                   Capital       Total
                                                   Markets
                  Private Markets   Public         and           Reportable
                                    Markets        Principal
                  Segment           Segment        Activities    Segments
                                                   Segment
                                                                 
Fees
Management and
incentive fees:
Management fees   $  423,921        $  105,186     $ -           $ 529,107
Incentive fees      -               43,845      -            43,845    
Management and      423,921         149,031     -            572,952   
incentive fees
                                                                 
Monitoring and
transaction
fees:
Monitoring fees      116,565           -             -             116,565
Transaction          96,454            14,495        129,159       240,108
fees
Fee credits         (97,362    )     (8,368  )    -            (105,730  )
Net monitoring
and transaction     115,657         6,127       129,159      250,943   
fees
                                                                 
Total fees          539,578         155,158     129,159      823,895   
                                                                 
Expenses
Compensation         192,765           50,705        29,341        272,811
and benefits
Occupancy and        48,562            5,606         900           55,068
related charges
Other operating     147,253         18,350      10,602       176,205   
expenses
Total expenses      388,580         74,661      40,843       504,084   
                                                                 
Fee Related         150,998         80,497      88,316       319,811   
Earnings
                                                                 
Investment
income (loss)
Gross carried        1,392,755         39,155        -             1,431,910
interest
Less:
allocation to        (565,543   )      (15,663 )     -             (581,206  )
KKR carry pool
Less:
management fee      (143,723   )     -           -            (143,723  )
refunds
Net carried          683,489           23,492        -             706,981
interest
Other
investment          599             20          1,110,503    1,111,122 
income (loss)
Total
investment          684,088         23,512      1,110,503    1,818,103 
income (loss)
                                                                 
Income (Loss)
before
noncontrolling
interests
in Income of
consolidated         835,086           104,009       1,198,819     2,137,914
entities
Income (Loss)
attributable to
noncontrolling       3,390             1,079         2,574         7,043
interests
                                                              
Economic Net      $  831,696       $  102,930    $ 1,196,245   $ 2,130,871 
Income (Loss)
                                                               

                                                             
KKR
STATEMENTS OF OPERATIONS
TOTAL REPORTABLE SEGMENTS (UNAUDITED)
Year Ended December 31, 2011
(Amounts in thousands)
                                                                  
                                                                  
                                                     Capital      Total
                                                     Markets
                  Private Markets   Public Markets   and          Reportable
                                                     Principal
                  Segment           Segment          Activities   Segments
                                                     Segment
                                                                  
Fees
Management and
incentive fees:
Management fees   $  430,400        $  84,984        $  -         $ 515,384
Incentive fees      -               34,243         -          34,243   
Management and      430,400         119,227        -          549,627  
incentive fees
                                                                  
Monitoring and
transaction
fees:
Monitoring fees      163,769           -                -           163,769
Transaction          166,654           11,996           170,480     349,130
fees
Fee credits         (144,928  )      (5,930   )      -          (150,858 )
Net monitoring
and transaction     185,495         6,066          170,480    362,041  
fees
                                                                  
Total fees          615,895         125,293        170,480    911,668  
                                                                  
Expenses
Compensation         185,709           46,133           26,109      257,951
and benefits
Occupancy and        45,694            4,059            1,256       51,009
related charges
Other operating     157,901         15,483         12,171     185,555  
expenses
Total expenses      389,304         65,675         39,536     494,515  
                                                                  
Fee Related         226,591         59,618         130,944    417,153  
Earnings
                                                                  
Investment
income (loss)
Gross carried        266,211           (2,590   )       -           263,621
interest
Less:
allocation to        (109,361  )       1,036            -           (108,325 )
KKR carry pool
Less:
management fee      (17,587   )      -              -          (17,587  )
refunds
Net carried          139,263           (1,554   )       -           137,709
interest
Other
investment          (549      )      505            202,802    202,758  
income (loss)
Total
investment          138,714         (1,049   )      202,802    340,467  
income (loss)
                                                                  
Income (Loss)
before
noncontrolling
interests
in Income of
consolidated         365,305           58,569           333,746     757,620
entities
Income (Loss)
attributable to
noncontrolling       2,536             599              3,536       6,671
interests
                                                               
Economic Net      $  362,769       $  57,970       $  330,210   $ 750,949  
Income (Loss)
                                                                             


KKR
BALANCE SHEETS
TOTAL REPORTABLE SEGMENTS (UNAUDITED)
(Amounts in thousands, except per unit amounts)

As of December 31, 2012
                                               Capital
                   Private         Public      Markets and         Total
                  Markets        Markets    Principal         Reportable
                   Segment         Segment     Activities          Segments
                                               Segment
                                                                   
Cash and
short-term         $ 358,237       $ 28,690    $ 1,147,360         $ 1,534,287
investments
Investments          -               -           4,758,157   (a)     4,758,157
Unrealized carry     730,292         24,939      -                   755,231
Other assets        207,047       280,472    62,119             549,638
Total assets       $ 1,295,576    $ 334,101   $ 5,967,636         $ 7,597,313
                                                                   
Debt obligations   $ -             $ -         $ 500,000           $ 500,000
Other               78,724        16,433     24,275             119,432
liabilities
Total               78,724        16,433     524,275            619,432
liabilities
                                                                   
Noncontrolling       1,339           739         18,619              20,697
interests
                                                                
Book value         $ 1,215,513    $ 316,929   $ 5,424,742         $ 6,957,184
                                                                   
Book value per     $ 1.72          $ 0.45      $ 7.70              $ 9.87
adjusted unit
                                                                   
                                                                   
                                                                   
As of December 31, 2011
                                               Capital
                   Private         Public      Markets and         Total
                   Markets         Markets     Principal           Reportable
                   Segment         Segment     Activities          Segments
                                               Segment
                                                                   
Cash and
short-term         $ 296,717       $ 8,087     $ 684,637           $ 989,441
investments
Investments          -               -           4,743,406           4,743,406
Unrealized carry     419,523         1,447       -                   420,970
Other assets        139,432       58,360     63,799             261,591
Total assets       $ 855,672      $ 67,894    $ 5,491,842         $ 6,415,408
                                                                   
Debt obligations   $ -             $ -         $ 500,000           $ 500,000
Other               128,590       8,153      49,329             186,072
liabilities
Total               128,590       8,153      549,329            686,072
liabilities
                                                                   
Noncontrolling       (1,358    )     729         19,381              18,752
interests
                                                                
Book value         $ 728,440      $ 59,012    $ 4,923,132         $ 5,710,584
                                                                   
Book value per     $ 1.06          $ 0.09      $ 7.14              $ 8.29
adjusted unit


    
(a)  See Capital Markets and Principal Activities segment schedule of
      investments that follows.
      


KKR
CAPITAL MARKETS AND PRINCIPAL ACTIVITIES SEGMENT SCHEDULE OF INVESTMENTS
(Amounts in thousands, except percentage amounts)
                                                         
                                 As of December 31, 2012
                                                           Fair Value as
                                               Fair          a Percentage of
Investment                       Cost          Value         Total Investments
                                                             
Co-Investments in Portfolio
Companies of
Private Equity Investment
Vehicles:
Alliance Boots GmbH              195,640       426,561       9.0%
HCA Inc.                         141,983       378,387       8.0%
The Nielsen Company B.V.         134,603       273,712       5.8%
NXP B.V.                         207,964       207,388       4.4%
Samson Resources Corporation     237,514       190,012       4.0%
Dollar General Corporation       37,733        185,107       3.9%
KION Group GmbH                  128,058       172,748       3.6%
ProSiebenSat.1 Media AG          226,913       144,919       3.0%
US Foods                         100,000       140,000       2.9%
Biomet, Inc.                     151,444       121,155       2.5%
First Data Corporation           135,258       94,681        2.0%
Energy Future Holdings Corp.     200,000       10,000        0.2%
PagesJaunes Groupe S.A.          235,201       -             0.0%
                                 2,132,311     2,344,670     49.3%
                                                             
Private Equity Investment
Vehicles
KKR 2006 Fund L.P.               380,803       436,552       9.2%
KKR European Fund III L.P.       189,441       221,393       4.7%
KKR Asian Fund L.P.              64,324        82,641        1.7%
KKR European Fund II L.P.        65,649        57,616        1.2%
KKR Millennium Fund L.P.         59,426        50,111        1.1%
KKR North America Fund XI L.P.   22,788        22,788        0.5%
KKR E2 Investors, L.P.           10,418        19,261        0.4%
KKR European Fund L.P.           47,664        4,299         0.1%
KKR China Growth Fund L.P.       3,611         4,051         0.1%
Co-Investment Vehicles           528           598           0.0%
                                 844,652       899,310       19.0%
                                                             
Private Equity Total             2,976,963     3,243,980     68.3%
                                                             
Energy & Infrastructure
Investment Vehicles
Royalties and Drilling           93,755        93,755        2.0%
Infrastructure Fund              24,447        25,678        0.5%
Co-Investment Vehicles           10,718        13,217        0.3%
Natural Resources                9,747         5,796         0.1%
Energy & Infrastructure Total    138,667       138,446       2.9%
                                                             
Private Markets Total            3,115,630     3,382,426     71.2%
                                                             
Public Markets Investment
Vehicles
Liquid Credit SMAs/Funds         187,163       194,658       4.1%
Long/Short Equities Funds        100,000       105,648       2.2%
Credit Relative Value Fund       50,000        52,507        1.1%
Direct Lending                   36,739        39,649        0.8%
Special Situations Vehicles      20,148        22,172        0.5%
Mezzanine Fund                   14,735        17,235        0.4%
Public Markets Total             408,785       431,869       9.1%
                                                             
Other                            947,040       943,862       19.7%
                                                             
Total Investments                $ 4,471,455   $ 4,758,157   100.0%



KKR
CAPITAL MARKETS AND PRINCIPAL ACTIVITIES SEGMENT SCHEDULE OF INVESTMENTS,
CONTINUED
(Amounts in thousands, except percentage amounts)

                                   As of December 31, 2012
                                                               Fair Value as
                                                               a Percentage
                                                   Fair          of Total
Investment                           Cost          Value        Investments
                                                                 
Significant Aggregate Investments:
(a)
Alliance Boots GmbH                  $ 228,769     $ 491,530     10.3     %
HCA Inc.                               173,443       451,752     9.5      %
The Nielsen Company B.V.               134,603       273,712     5.8      %
Dollar General Corporation            52,359       245,432     5.2      %
                                      589,174      1,462,426   30.8     %
                                                                 
Other investments                     3,882,281    3,295,731   69.2     %
Total Investments                    $ 4,471,455   $ 4,758,157   100.0    %
                                                                 
                                                                 
Investments by Geography:
North America                        $ 2,911,143   $ 3,232,122   67.9     %
Europe                                 1,391,256     1,355,801   28.5     %
Asia-Pacific                          169,056      170,234     3.6      %
Total Investments                    $ 4,471,455   $ 4,758,157   100.0    %


    
      The significant aggregate investments include investments in portfolio
      companies with individual fair values of 5% or more of the Capital
(a)  Markets and Principal Activities segment investments balance as of
      December 31, 2012. The fair value figures include the co-investment and
      the limited partner and/or general partner interests in the underlying
      portfolio company.


KKR
ASSETS UNDER MANAGEMENT
(Amounts in thousands)
                                                          
                                                               
                      Private           Public                 Total
                      Markets          Markets               Reportable
                      Segment           Segment                Segments
Quarter Ended
December 31, 2012
                                                               
September 30, 2012    $ 49,771,000      $ 16,507,700           $ 66,278,700
New Capital Raised      934,100           1,794,000              2,728,100
Acquisitions (a)        -                 8,086,900              8,086,900
Distributions           (3,097,100  )     (485,600   )   (b)     (3,582,700  )
Foreign Exchange        17,400            -                      17,400
Change in Value        1,502,200       496,900              1,999,100   
December 31, 2012     $ 49,127,600     $ 26,399,900          $ 75,527,500  
                                                               
                                                               
Year Ended December
31, 2012
                                                               
December 31, 2011     $ 43,627,900      $ 15,380,700           $ 59,008,600
New Capital Raised      7,360,100         3,219,600              10,579,700
Acquisitions (a)        -                 8,086,900              8,086,900
Distributions           (9,023,900  )     (1,543,200 )   (c)     (10,567,100 )
Net Changes in Fee
Base of Certain         (1,327,900  )     -                      (1,327,900  )
Funds (d)
Foreign Exchange        16,000            -                      16,000
Change in Value        8,475,400       1,255,900            9,731,300   
December 31, 2012     $ 49,127,600     $ 26,399,900          $ 75,527,500  
                                                               
                                                               
                                                               
KKR
FEE PAYING ASSETS UNDER MANAGEMENT
(Amounts in thousands)
                                                               
                                                               
                      Private           Public                 Total
                      Markets          Markets               Reportable
                      Segment           Segment                Segments
Quarter Ended
December 31, 2012
                                                               
September 30, 2012    $ 40,354,200      $ 9,911,800            $ 50,266,000
New Capital Raised      1,272,000         1,559,100              2,831,100
Acquisitions (a)        -                 8,078,400              8,078,400
Distributions           (551,100    )     (257,200   )   (b)     (808,300    )
Foreign Exchange        83,600            -                      83,600
Change in Value        14,300          380,900              395,200     
December 31, 2012     $ 41,173,000     $ 19,673,000          $ 60,846,000  
                                                               
                                                               
Year Ended December
31, 2012
                                                               
December 31, 2011     $ 37,869,700      $ 8,527,600            $ 46,397,300
New Capital Raised      7,451,700         2,999,200              10,450,900
Acquisitions (a)        -                 8,078,400              8,078,400
Distributions           (1,089,400  )     (851,400   )   (c)     (1,940,800  )
Net Changes in Fee
Base of Certain         (3,205,400  )     -                      (3,205,400  )
Funds (d)
Foreign Exchange        99,60*Story
                        too large*

[TRUNCATED]