EQUITY METHOD INVESTMENTS

The Company holds certain investments where the Company does not control the investee and where the Company is not the primary beneficiary, but can exert significant influence over the financial and operating policies of the investee. Significant influence typically exists if the Company has a 20% to 50% ownership interest in the investee unless predominant evidence to the contrary exists.

Under the equity method of accounting, the Company records its proportionate share of net income or loss based on the investee’s financial results. Given that the Company elected the fair value option to account for these equity method investments, the Company’s share of the investee’s underlying net income or loss predominantly represents fair value adjustments in the investments. Changes in estimated fair value are recorded in net realized and unrealized gain (loss) on investments in the consolidated statements of operations.

As of December 31, 2015 and December 31, 2014, the Company had equity method investments, at estimated fair value, totaling $506.5 million and $534.7 million, respectively. The Company's equity method investments are comprised primarily of the following issuers with the respective ownership percentages: (i) Maritime Finance Company, which the Company holds approximately 31% through its ownership of KKR Nautilus Aggregator Limited, (ii) LCI Helicopters Limited, which the Company holds approximately 33% common equity interest in and (iii) Mineral Acquisition Company, which the Company holds approximately 70% through its ownership of KKR Royalty Aggregator LLC. KKR Royalty Aggregator LLC is an investment company for accounting purposes and accordingly, does not consolidate Mineral Acquisition Company, which it wholly-owns. The Company consolidates both KKR Nautilus Aggregator Limited and KKR Royalty Aggregator LLC and reflects all ownership interests held by third parties as noncontrolling interests in its financial statements.

Summarized Financial Information

The following table shows summarized financial information for the Company’s equity method investments reported under the fair value option of accounting assuming 100% ownership (amounts in thousands):



	Credit				Commercial Real Estate				Natural Resources
As of December 31,	2015		2014		2015		2014		2015		2014
Total assets	$	1,188,855	$	639,567	$	878,878	$	959,488	$	723,063	$	1,488,275
Total liabilities	$	574,635	$	208,812	$	812,935	$	836,066	$	376,638	$	615,543
Redeemable stock	$	—	$	—	$	—	$	—	$	—	$	—
Noncontrolling interests	$	—	$	—	$	—	$	—	$	264	$	268

The following table shows summarized financial information for the Company’s equity method investments, which were reported under the fair value option of accounting and were determined to be significant as defined by accounting guidance, assuming 100% ownership (amounts in thousands):



	Successor Company
	Credit						Commercial Real Estate					Natural Resources
	Year ended December 31, 2015			Eight months ended December 31, 2014			Year ended December 31, 2015		Eight months ended December 31, 2014			Year ended December 31, 2015			Eight months ended December 31, 2014
Revenues (1)	$	87,561		$	22,535		$	138,431	$	77,661		$	179,482		$	77,038
Expenses (1,2)	$	60,623		$	19,356		$	148,463	$	80,685		$	305,164		$	100,618
Net income (loss)	$	(41,201	)	$	(24,364	)	$	21,629	$	(3,024	)	$	(522,601	)	$	(58,869	)



	Predecessor Company
	Credit					Commercial Real Estate						Natural Resources
	Four months ended April 30, 2014		Year ended December 31, 2013			Four months ended April 30, 2014			Year ended December 31, 2013			Four months ended April 30, 2014		Year ended December 31, 2013
Revenues (1)	$	3,967	$	1,093		$	30,338		$	83,300		$	2,578	$	3,625
Expenses (1,2)	$	4,357	$	132		$	36,914		$	96,883		$	1,763	$	5,136
Net income (loss)	$	11,437	$	(1,050	)	$	(6,576	)	$	(13,583	)	$	815	$	(1,511	)


(1)	Revenues and expenses exclude realized and unrealized gains and losses, as well as other than temporary impairment.

(2)

Expenses include items such as operating costs, professional fees, management fees, depreciation and amortization, compensation, acquisition costs and other general and administrative costs for Credit and Commercial Real Estate. Expenses include items such as lease operating, production taxes, depreciation, depletion and amortization, and other general and administrative costs for Natural Resources.