EQUITY INVESTMENTS AND INTERESTS IN JOINT VENTURES AND PARTNERSHIPS

The Company holds interests in joint ventures and partnerships, certain of which (i) the Company participates alongside affiliates of the Manager through which the Company contributes capital for assets, including development projects related to commercial real estate and specialty lending focused businesses or (ii) are held as interests in private or public funds managed by KKR. Refer to Note 10 to these condensed consolidated financial statements for further discussion. As of June 30, 2017 and December 31, 2016, the Company held $1.0 billion and $794.0 million, respectively, of interests in joint ventures and partnerships carried at estimated fair value.

In addition, as of June 30, 2017 and December 31, 2016, the Company held $444.4 million and $168.7 million, respectively, of equity investments, which were carried at estimated fair value and comprised primarily of common and preferred stock.

Net Realized and Unrealized Gains (Losses)

The following tables present the Company’s realized and unrealized gains (losses), which are accounted for similarly to securities and loans, from equity investments and interests in joint ventures and partnerships (amounts in thousands):



	Three months ended June 30, 2017						Three months ended June 30, 2016						Six months ended June 30, 2017						Six months ended June 30, 2016
	Equity Investments			Interests in Joint Ventures and Partnerships(1)			Equity Investments			Interests in Joint Ventures and Partnerships(1)			Equity Investments			Interests in Joint Ventures and Partnerships(1)			Equity Investments			Interests in Joint Ventures and Partnerships(1)
Net realized gains (losses)	$	(4,094	)	$	(2,137	)	$	(4,496	)	$	9,736		$	(4,094	)	$	(36,262	)	$	(3,771	)	$	7,574
Net (increase) decrease in unrealized losses	(2,800		)	2,209			(457		)	(5,346		)	2,792			66,569			(16,449		)	(88,439		)
Net realized and unrealized gains (losses)	$	(6,894	)	$	72		$	(4,953	)	$	4,390		$	(1,302	)	$	30,307		$	(20,220	)	$	(80,865	)

(1) Includes net loss attributable to noncontrolling interests of $0.3 million and net gain of $1.7 million for the three and six months ended June 30, 2017, respectively, and net loss of $1.3 million and $16.8 million for the three and six months ended June 30, 2016, respectively.

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 condensed consolidated statements of operations.

As of June 30, 2017 and December 31, 2016, the Company had equity method investments, at estimated fair value, totaling $858.1 million and $408.3 million, respectively. As of June 30, 2017, the Company's equity method investments were comprised primarily of the following issuers with the respective ownership percentages: (i) Port Aventura Entertainment S.A., in which the Company holds an approximately 48% ownership interest through its ownership of KKR Gaudi S.a.r.l., (ii) KKR Real Estate Finance Trust Inc., in which the Company holds an approximately 15% ownership interest through its ownership of KKR REFT Asset Holdings LLC, and (iii) Maritime Credit Corporation Ltd., in which the Company holds an approximately 31% ownership interest through its ownership of KKR Nautilus Aggregator Limited. As of December 31, 2016, the Company's equity method investments were comprised primarily of the following issuers with the respective ownership percentages: (i) Maritime Credit Corporation Ltd., which the Company held approximately 31% through its ownership of KKR Nautilus Aggregator Limited, (ii) LCI Helicopters Limited, which the Company held approximately 33% common equity interest in, and (iii) Mineral Acquisition Company, which the Company held 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.

Pledged Assets

There were no equity investments or interests in joint ventures and partnerships pledged as collateral as of June 30, 2017 and December 31, 2016.