OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES (Tables)

3 Months Ended

Mar. 31, 2013

OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES

	March 31, 2013		December 31, 2012
Interest and Notes Receivable (a)	$	424,972	$	469,456
Due from Broker (b)	240,858		189,202
Foreign Exchange Forward Contracts (c)	215,082		137,786
Intangible Assets, net (d)	192,499		197,484
Deferred Tax Assets, net	122,002		105,654
Unsettled Investment Sales (e)	108,689		90,666
Goodwill (f)	89,000		89,000
Fixed Assets, net (g)	78,322		79,570
Receivables	46,059		267,126
Deferred Financing Costs	26,100		20,918
Deferred Transaction Costs	16,781		14,633
Prepaid Expenses	16,183		12,079
Foreign Currency Options (h)	8,546		4,992
Refundable Security Deposits	7,340		7,428
Other	25,805		15,061
	$	1,618,238	$	1,701,055

(a) Represents interest receivable and promissory notes due from third parties. The promissory notes bear interest at rates ranging from 1.5% - 3.0% per annum and mature between 2015 and 2016.

(b) Represents amounts held at clearing brokers resulting from securities transactions.

(c) Represents derivative financial instruments used to manage foreign exchange risk arising from certain foreign denominated investments. Such instruments are measured at fair value with changes in fair value recorded in Net Gains (Losses) from Investment Activities in the accompanying condensed consolidated statements of operations. See Note 3 “Net Gains (Losses) from Investment Activities” for the net changes in fair value associated with these instruments.

(d) Net of accumulated amortization of $26,387 and $21,402 as of March 31, 2013 and December 31, 2012, respectively. Amortization expense totaled $4,985 and $947 for the three months ended March 31, 2013 and 2012, respectively.

(e) Represents amounts due from third parties for investments sold for which cash settlement has not occurred.

(f) See Note 14 “Goodwill and Intangible Assets.”

(g) Net of accumulated depreciation and amortization of $95,683 and $92,467 as of March 31, 2013 and December 31, 2012, respectively. Depreciation and amortization expense totaled $3,697 and $2,572 for the three months ended March 31, 2013 and 2012, respectively.

(h) Represents derivative financial instruments used to manage foreign exchange risk arising from certain foreign denominated investments. The instruments are measured at fair value with changes in fair value recorded in Net Gains (Losses) from Investment Activities in the accompanying condensed consolidated statements of operations. See Note 3 “Net Gains (Losses) from Investment Activities” for the net changes in fair value associated with these instruments. The cost bases for these instruments at March 31, 2013 and December 31, 2012 was $2,332.

Schedule of accounts payable, accrued expenses and other liabilities

	March 31, 2013		December 31, 2012
Amounts Payable to Carry Pool (a)	$	900,158	$	776,750
Securities Sold Short (b)	426,754		350,353
Unsettled Investment Purchases (c)	212,905		172,583
Accounts Payable and Accrued Expenses	152,622		97,389
Foreign Exchange Forward Contracts (d)	99,739		229,314
Contingent Consideration Obligation (e)	81,600		71,300
Due to Broker (f)	77,865		49,204
Accrued Compensation and Benefits	51,900		17,265
Deferred Rent and Income	25,649		19,228
Interest Payable	9,896		11,746
Taxes Payable	5,602		9,250
Foreign Currency Options (g)	1,310		3,362
Other Liabilities	6,607		16,911
	$	2,052,607	$	1,824,655

(a) Represents the amount of carried interest payable to KKR’s principals, professionals and other individuals with respect to KKR’s active funds and co-investment vehicles that provide for carried interest. See Note 2 “Summary of Significant Accounting Policies.”

(b) Represents the obligations of KKR to deliver a specified security at a future point in time. Such securities are measured at fair value with changes in fair value recorded in Net Gains (Losses) from Investment Activities in the accompanying condensed consolidated statements of operations. See Note 3 “Net Gains (Losses) from Investment Activities” for the net changes in fair value associated with these instruments. The cost bases for these instruments at March 31, 2013 and December 31, 2012 were $409,070 and $343,440, respectively.

(d) Represents derivative financial instruments used to manage foreign exchange risk arising from certain foreign denominated investments. Such instruments are measured at fair value with changes in fair value recorded in Net Gains (Losses) from Investment Activities in the accompanying condensed consolidated statements of operations. See Note 3 “Net Gains (Losses) from Investment Activities” for the net changes in fair value associated with these instruments.

(e) See Note 13 “Acquisitions.”

(f) Represents amounts owed for securities transactions initiated at clearing brokers.

(g) Represents derivative financial instruments used to manage foreign exchange risk arising from certain foreign denominated investments. The instruments are measured at fair value with changes in fair value recorded in Net Gains (Losses) from Investment Activities in the accompanying condensed consolidated statements of operations. See Note 3 “Net Gains (Losses) from Investment Activities” for the net changes in fair value associated with these instruments. The cost bases for these instruments at March 31, 2013 and December 31, 2012 was $0.