10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

Form 10-Q

ý     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended March 31, 2019

or

o     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the Transition period from           to           .

Commission File Number 001-34820

KKR & CO. INC.

(Exact name of Registrant as specified in its charter)

Delaware	26-0426107
(State or other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification Number)

9 West 57^th Street, Suite 4200

New York, New York 10019

Telephone: (212) 750-8300

(Address, zip code, and telephone number, including

area code, of registrant's principal executive office.)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ý No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ý	Accelerated filer o
Non-accelerated filer o	Smaller reporting company o
	Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No ý

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Class A Common Stock	KKR	New York Stock Exchange
6.75% Series A Preferred Stock	KKR PR A	New York Stock Exchange
6.50% Series B Preferred Stock	KKR PR B	New York Stock Exchange

As of May 2, 2019, there were 543,943,670 shares of Class A common stock of the registrant outstanding.

KKR & CO. INC.

FORM 10-Q

For the Quarter Ended March 31, 2019

TABLE OF CONTENTS

		Page
	PART I — FINANCIAL INFORMATION
Item 1.	Financial Statements
	Unaudited Condensed Consolidated Financial Statements
	Condensed Consolidated Statements of Financial Condition (Unaudited) as of March 31, 2019 and December 31, 2018	5
	Condensed Consolidated Statements of Operations (Unaudited) for the Three Months Ended March 31, 2019 and 2018	7
	Condensed Consolidated Statements of Comprehensive Income (Unaudited) for the Three Months Ended March 31, 2019 and 2018	8
	Condensed Consolidated Statements of Changes in Equity (Unaudited) for the Three Months Ended March 31, 2019 and 2018	9
	Condensed Consolidated Statements of Cash Flows (Unaudited) for the Three Months Ended March 31, 2019 and 2018	11
	Notes to Financial Statements (Unaudited)	13
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	56
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	106
Item 4.	Controls and Procedures	106
	PART II — OTHER INFORMATION
Item 1.	Legal Proceedings	107
Item 1A.	Risk Factors	107
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	108
Item 3.	Defaults Upon Senior Securities	109
Item 4.	Mine Safety Disclosures	109
Item 5.	Other Information	109
Item 6.	Exhibits	109
SIGNATURES		110

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), which reflect our current views with respect to, among other things, our operations and financial performance. You can identify these forward-looking statements by the use of words such as "outlook," "believe," "expect," "potential," "continue," "may," "should," "seek," "approximately," "predict," "intend," "will," "plan," "estimate," "anticipate," the negative version of these words, other comparable words or other statements that do not relate strictly to historical or factual matters. Without limiting the foregoing, statements regarding the declaration and payment of dividends on common or preferred stock of KKR, the timing, manner and volume of repurchases of common stock pursuant to a repurchase program, and the expected synergies and benefits from acquisitions, reorganizations or strategic partnerships, may constitute forward-looking statements. Forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements or cause the anticipated benefits and synergies from transactions to not be realized. We believe these factors include those described under the section entitled "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2018 (our "Annual Report"). These factors should be read in conjunction with the other cautionary statements that are included in this report, our Annual Report and in our other filings with the U.S. Securities and Exchange Commission (the "SEC"). We do not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

In this report, references to "KKR," "we," "us" and "our" refer to (i) KKR & Co. Inc. and its subsidiaries following the conversion from a Delaware limited partnership named KKR & Co. L.P. into a Delaware corporation named KKR & Co. Inc. on July 1, 2018 (the "Conversion") and (ii) KKR & Co. L.P. and its subsidiaries prior to the Conversion, in each case, except where the context requires otherwise. KKR & Co. L.P. became listed on the New York Stock Exchange ("NYSE") on July 15, 2010 under the symbol "KKR." KKR Management Holdings L.P., KKR Fund Holdings L.P. and KKR International Holdings L.P. are together referred to in this report as the "KKR Group Partnerships." Each KKR Group Partnership has an identical number of partner interests and, when held together, one Class A partner interest in each of the KKR Group Partnerships together represents one "KKR Group Partnership Unit." In connection with the 6.75% Series A Preferred Stock ("Series A Preferred Stock") and 6.50% Series B Preferred Stock ("Series B Preferred Stock") of KKR & Co. Inc., the KKR Group Partnerships have outstanding preferred units with economic terms designed to mirror those of the Series A Preferred Stock and Series B Preferred Stock, respectively. References to our Class A common stock, Series A Preferred Stock or Series B Preferred Stock for periods prior to the Conversion mean the common units, Series A preferred units and Series B preferred units of KKR & Co. L.P., respectively.

References to the "Class B Stockholder" are to KKR Management LLC, the holder of the sole share of our Class B common stock, and unless otherwise indicated, references to equity interests in KKR's business, or to percentage interests in KKR's business, reflect the aggregate equity interests in the KKR Group Partnerships and are net of amounts that have been allocated to our principals and other employees and non-employee operating consultants in respect of the carried interest from KKR's business as part of our "carry pool" and certain minority interests. References to "principals" are to our senior employees and non-employee operating consultants who hold interests in KKR's business through KKR Holdings L.P. ("KKR Holdings") and references to our "senior principals" are to our senior employees who hold interests in the Class B Stockholder.

References to "non-employee operating consultants" include employees of KKR Capstone, who are not employees of KKR. KKR Capstone refers to a group of entities that are owned and controlled by their senior management. KKR Capstone is not a subsidiary or affiliate of KKR. KKR Capstone operates under several consulting agreements with KKR and uses the "KKR" name under license from KKR. KKR is in the process of evaluating a potential acquisition of KKR Capstone.

In this report, the term "GAAP" refers to accounting principles generally accepted in the United States of America.

We disclose certain financial measures in this report that are calculated and presented using methodologies other than in accordance with GAAP. We believe that providing these performance measures on a supplemental basis to our GAAP results is helpful to stockholders in assessing the overall performance of KKR's businesses. These financial measures should not be considered as a substitute for similar financial measures calculated in accordance with GAAP, if available. We caution readers that these non-GAAP financial measures may differ from the calculations of other investment managers, and as a result, may not be comparable to similar measures presented by other investment managers. Reconciliations of these non-GAAP financial

3

measures to the most directly comparable financial measures calculated and presented in accordance with GAAP, where applicable, are included within Note 14 "Segment Reporting" to our condensed consolidated financial statements and under "Management's Discussion and Analysis of Financial Condition and Results of Operations—Key Segment and Other Operating and Performance Measures" and "—Segment Balance Sheet."

This report uses the terms assets under management ("AUM"), fee paying assets under management ("FPAUM"), after-tax distributable earnings, fee related earnings ("FRE"), capital invested, syndicated capital, and book value. You should note that our calculations of these financial measures and other financial measures may differ from the calculations of other investment managers and, as a result, our financial measures may not be comparable to similar measures presented by other investment managers. These and other financial measures are defined in the section "Management's Discussion and Analysis of Financial Condition and Results of Operations—Key Segment and Other Operating and Performance Measures" and "Management's Discussion and Analysis of Financial Condition and Results of Operation—Segment Balance Sheet."

References to our "funds" or our "vehicles" refer to investment funds, vehicles and accounts advised, sponsored or managed by one or more subsidiaries of KKR, including collateralized loan obligations ("CLOs") and commercial real estate mortgage-backed securities ("CMBS") vehicles, unless the context requires otherwise. They do not include investment funds, vehicles or accounts of any hedge fund manager with which we have formed a strategic partnership where we have acquired a non-controlling interest.

Unless otherwise indicated, references in this report to our fully exchanged and diluted Class A common stock outstanding, or to our Class A common stock outstanding on a fully exchanged and diluted basis, reflect (i) actual shares of Class A common stock outstanding, (ii) shares of Class A common stock into which KKR Group Partnership Units not held by us are exchangeable pursuant to the terms of the exchange agreement described in our Annual Report, (iii) shares of Class A common stock issuable in respect of exchangeable equity securities issued in connection with the acquisition of Avoca Capital ("Avoca"), all of which have been exchanged as of December 31, 2018, and (iv) Class A common stock issuable pursuant to any equity awards actually granted from the Amended and Restated KKR & Co. Inc. 2010 Equity Incentive Plan (the "2010 Equity Incentive Plan") or the KKR & Co. Inc. 2019 Equity Incentive Plan (the "2019 Equity Incentive Plan" and, together with the 2010 Equity Incentive Plan, our "Equity Incentive Plans"). Our fully exchanged and diluted Class A common stock outstanding does not include (i) shares of Class A common stock available for issuance pursuant to the Equity Incentive Plans for which equity awards have not yet been granted and (ii) shares of Class A common stock that we have the option to issue in connection with our acquisition of additional interests in Marshall Wace LLP (together with its affiliates, "Marshall Wace"). 

The use of any defined term in this report to mean more than one entities, persons, securities or other items collectively is solely for convenience of reference and in no way implies that such entities, persons, securities or other items are one indistinguishable group. For example, notwithstanding the use of the defined terms "KKR," "we" and "our" in this report to refer to KKR & Co. Inc. and its subsidiaries, each subsidiary of KKR & Co. Inc. is a standalone legal entity that is separate and distinct from KKR & Co. Inc. and any of its other subsidiaries.

4

PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

KKR & CO. INC.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)

(Amounts in Thousands, Except Share Data)

	March 31, 2019			December 31, 2018
Assets
Cash and Cash Equivalents	$	1,808,368		$	1,751,287
Cash and Cash Equivalents Held at Consolidated Entities	911,450			693,860
Restricted Cash and Cash Equivalents	66,950			196,365
Investments	45,795,254			44,907,982
Due from Affiliates	734,195			657,189
Other Assets	2,687,802			2,536,692
Total Assets	$	52,004,019		$	50,743,375
Liabilities and Equity
Debt Obligations	$	22,262,369		$	22,341,192
Due to Affiliates	254,781			275,584
Accounts Payable, Accrued Expenses and Other Liabilities	3,279,028			2,743,990
Total Liabilities	25,796,178			25,360,766
Commitments and Contingencies
Redeemable Noncontrolling Interests	—			1,122,641
Stockholders' Equity (1)
Series A and B Preferred Stock, $0.01 par value. 13,800,000 and 6,200,000 shares, respectively, issued and outstanding as of March 31, 2019 and December 31, 2018.	482,554			482,554
Class A Common Stock, $0.01 par value. 3,500,000,000 shares authorized, 533,922,902 and 534,857,237 shares, issued and outstanding as of March 31, 2019 and December 31, 2018, respectively.	5,339			5,349
Class B Common Stock, $0.01 par value. 1 share authorized, 1 share issued and outstanding as of March 31, 2019 and December 31, 2018.	—			—
Class C Common Stock, $0.01 par value. 499,999,999 shares authorized, 298,645,285 and 299,081,239 shares, issued and outstanding as of March 31, 2019 and December 31, 2018, respectively.	2,987			2,991
Additional Paid-In Capital	8,145,133			8,106,408
Retained Earnings	726,312			91,953
Accumulated Other Comprehensive Income (Loss)	(39,954		)	(39,645		)
Total KKR & Co. Inc. Stockholders' Equity	9,322,371			8,649,610
Noncontrolling Interests	16,885,470			15,610,358
Total Equity	26,207,841			24,259,968
Total Liabilities and Equity	$	52,004,019		$	50,743,375

(1) See Note 1 "Organization."

See notes to financial statements.

5

KKR & CO. INC.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED) (Continued)

(Amounts in Thousands)

The following presents the portion of the consolidated balances presented in the consolidated statements of financial condition attributable to consolidated variable interest entities ("VIEs") as of March 31, 2019 and December 31, 2018. KKR's consolidated VIEs consist primarily of (i) certain collateralized financing entities ("CFEs") holding collateralized loan obligations ("CLOs") and commercial real estate mortgage-backed securities ("CMBS") and (ii) certain investment funds. With respect to consolidated VIEs, the following assets may only be used to settle obligations of these consolidated VIEs and the following liabilities are only the obligations of these consolidated VIEs. The noteholders, limited partners and other creditors of these VIEs have no recourse to KKR's general assets. Additionally, KKR has no right to the benefits from, nor does KKR bear the risks associated with, the assets held by these VIEs beyond KKR's beneficial interest therein and any income generated from the VIEs. There are neither explicit arrangements nor does KKR hold implicit variable interests that would require KKR to provide any material ongoing financial support to the consolidated VIEs, beyond amounts previously committed, if any.

	March 31, 2019
	Consolidated CFEs		Consolidated KKR Funds and Other Entities		Total
Assets
Cash and Cash Equivalents Held at Consolidated Entities	$	641,685	$	84,032	$	725,717
Restricted Cash and Cash Equivalents	—		35,692		35,692
Investments	15,021,345		15,294,693		30,316,038
Due from Affiliates	—		11,181		11,181
Other Assets	166,373		224,172		390,545
Total Assets	$	15,829,403	$	15,649,770	$	31,479,173
Liabilities
Debt Obligations	$	14,472,392	$	1,024,369	$	15,496,761
Accounts Payable, Accrued Expenses and Other Liabilities	576,009		70,232		646,241
Total Liabilities	$	15,048,401	$	1,094,601	$	16,143,002

	December 31, 2018
	Consolidated CFEs		Consolidated KKR Funds and Other Entities		Total
Assets
Cash and Cash Equivalents Held at Consolidated Entities	$	428,850	$	176,264	$	605,114
Restricted Cash and Cash Equivalents	—		174,057		174,057
Investments	14,733,423		15,585,629		30,319,052
Due from Affiliates	—		11,832		11,832
Other Assets	148,221		223,054		371,275
Total Assets	$	15,310,494	$	16,170,836	$	31,481,330
Liabilities
Debt Obligations	$	13,958,554	$	1,392,987	$	15,351,541
Accounts Payable, Accrued Expenses and Other Liabilities	579,408		126,333		705,741
Total Liabilities	$	14,537,962	$	1,519,320	$	16,057,282

See notes to financial statements.

6

KKR & CO. INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(Amounts in Thousands, Except Share Data)

	Three Months Ended March 31,
	2019			2018
Revenues
Fees and Other	$	372,548		$	394,394
Capital Allocation-Based Income	814,932			78,212
Total Revenues	1,187,480			472,606
Expenses
Compensation and Benefits	544,562			298,136
Occupancy and Related Charges	14,690			14,215
General, Administrative and Other	169,515			124,250
Total Expenses	728,767			436,601
Investment Income (Loss)
Net Gains (Losses) from Investment Activities	1,203,878			472,800
Dividend Income	22,625			33,064
Interest Income	358,511			298,256
Interest Expense	(249,088		)	(219,590		)
Total Investment Income (Loss)	1,335,926			584,530
Income (Loss) Before Taxes	1,794,639			620,535
Income Tax Expense (Benefit)	167,593			17,641
Net Income (Loss)	1,627,046			602,894
Net Income (Loss) Attributable to Redeemable Noncontrolling Interests	—			25,674
Net Income (Loss) Attributable to Noncontrolling Interests	917,727			398,777
Net Income (Loss) Attributable to KKR & Co. Inc.	709,319			178,443
Series A Preferred Stock Dividends	5,822			5,822
Series B Preferred Stock Dividends	2,519			2,519
Net Income (Loss) Attributable to KKR & Co. Inc. Class A Common Stockholders	$	700,978		$	170,102
Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Class A Common Stock
Basic	$	1.31		$	0.36
Diluted	$	1.27		$	0.32
Weighted Average Shares of Class A Common Stock Outstanding
Basic	533,892,474			487,704,838
Diluted	550,046,440			535,918,274

See notes to financial statements.

7

KKR & CO. INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)

(Amounts in Thousands)

	Three Months Ended March 31,
	2019		2018
Net Income (Loss)	$	1,627,046	$	602,894
Other Comprehensive Income (Loss), Net of Tax:
Foreign Currency Translation Adjustments	2,366		3,624
Comprehensive Income (Loss)	1,629,412		606,518
Less: Comprehensive Income (Loss) Attributable to Redeemable Noncontrolling Interests	—		25,674
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interests	920,359		398,050
Comprehensive Income (Loss) Attributable to KKR & Co. Inc.	$	709,053	$	182,794

See notes to financial statements.

8

KKR & CO. INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)

(Amounts in Thousands, Except Share Data)

The statement below for the three months ended March 31, 2018 represents KKR & Co. Inc. as a partnership prior to the Conversion:

	KKR & Co. L.P.
	Common Units	Capital - Common Unitholders			Accumulated Other Comprehensive Income (Loss)			Total Capital - Common Units			Capital - Series A Preferred Units			Capital - Series B Preferred Units			Noncontrolling Interests			Total Equity			Redeemable Noncontrolling Interests
Balance at January 1, 2018	486,174,736	$	6,722,863		$	(19,481	)	$	6,703,382		$	332,988		$	149,566		$	12,866,324		$	20,052,260		$	610,540
Net Income (Loss)		170,102						170,102			5,822			2,519			398,777			577,220			25,674
Other Comprehensive Income (Loss)- Foreign Currency Translation (Net of Tax)					4,351			4,351									(727		)	3,624
Exchange of KKR Holdings L.P. Units and Other Securities to KKR & Co. L.P. Common Units	3,067,306	51,221			(132		)	51,089									(51,089		)	—
Tax Effects Resulting from Exchange of KKR Holdings L.P. Units and Other		4,205			17			4,222												4,222
Equity-Based and Other Non-Cash Compensation		67,796						67,796									32,695			100,491
Capital Contributions								—									1,270,723			1,270,723			56,950
Capital Distributions		(82,757		)				(82,757		)	(5,822		)	(2,519		)	(839,134		)	(930,232		)	(2,534		)
Balance at March 31, 2018	489,242,042	$	6,933,430		$	(15,245	)	$	6,918,185		$	332,988		$	149,566		$	13,677,569		$	21,078,308		$	690,630

See notes to financial statements.

9

KKR & CO. INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) (Continued)

(Amounts in Thousands, Except Share Data)

The statement below represents KKR & Co. Inc. as a corporation subsequent to the Conversion for the three months ended March 31, 2019:

	Three Months Ended March 31, 2019
	Amounts			Shares
Preferred Stock
Beginning of Period	482,554			20,000,000
End of Period	482,554			20,000,000
Class A Common Stock
Beginning of Period	5,349			534,857,237
Exchange of KKR Holdings Units	4			435,954
Repurchases of Class A Common Stock	(14		)	(1,370,289	)
End of Period	5,339			533,922,902
Class B Common Stock
Beginning of Period	—			1
End of Period	—			1
Class C Common Stock
Beginning of Period	2,991			299,081,239
Cancellation of Class C Common Stock	(4		)	(435,954	)
End of Period	2,987			298,645,285
Additional Paid-In Capital
Beginning of Period	8,106,408
Exchange of KKR Holdings Units	7,137
Tax Effects Resulting from Exchange of KKR Holdings Units and Other	5,255
Repurchases of Class A Common Stock	(28,552		)
Equity-Based Compensation	54,885
End of Period	8,145,133
Retained Earnings
Beginning of Period	91,953
Net Income (Loss) Attributable to KKR & Co. Inc.	709,319
Series A Preferred Stock Dividends ($0.421875 per share)	(5,822		)
Series B Preferred Stock Dividends ($0.406250 per share)	(2,519		)
Common Stock Dividends ($0.125 per share)	(66,619		)
End of Period	726,312
Accumulated Other Comprehensive Income (Loss)
Beginning of Period	(39,645		)
Foreign Currency Translation	(266		)
Exchange of KKR Holdings Units to Class A Common Stock	(43		)
End of Period	(39,954		)
Total KKR & Co. Inc. Stockholders' Equity	9,322,371
Noncontrolling Interests (See Note 15 "Equity")	16,885,470
Total Equity	$	26,207,841

See notes to financial statements.

10

KKR & CO. INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Amounts in Thousands)

	Three Months Ended March 31,
	2019			2018
Operating Activities
Net Income (Loss)	$	1,627,046		$	602,894
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided (Used) by Operating Activities:
Equity-Based and Other Non-Cash Compensation	78,268			96,227
Net Realized (Gains) Losses on Investments	(129,781		)	(30,380		)
Change in Unrealized (Gains) Losses on Investments	(1,074,097		)	(442,420		)
Capital Allocation-Based Income	(814,932		)	(78,212		)
Other Non-Cash Amounts	(12,111		)	74,156
Cash Flows Due to Changes in Operating Assets and Liabilities:
Change in Consolidation and Other	(137,498		)	—
Change in Due from / to Affiliates	(100,529		)	(71,686		)
Change in Other Assets	68,077			420,004
Change in Accounts Payable, Accrued Expenses and Other Liabilities	381,421			(41,480		)
Investments Purchased	(5,301,227		)	(9,515,686		)
Proceeds from Investments	5,571,641			6,829,083
Net Cash Provided (Used) by Operating Activities	156,278			(2,157,500		)
Investing Activities
Purchases of Fixed Assets	(19,455		)	(8,670		)
Development of Oil and Natural Gas Properties	(451		)	—
Net Cash Provided (Used) by Investing Activities	(19,906		)	(8,670		)
Financing Activities
Preferred Stock Dividends	(8,341		)	(8,341		)
Common Stock Dividends	(66,619		)	(82,757		)
Distributions to Redeemable Noncontrolling Interests	—			(2,534		)
Contributions from Redeemable Noncontrolling Interests	—			56,950
Distributions to Noncontrolling Interests	(856,086		)	(839,134		)
Contributions from Noncontrolling Interests	1,194,815			1,263,774
Repurchases of Class A Common Stock	(28,566		)	—
Proceeds from Debt Obligations	1,581,043			3,588,463
Repayment of Debt Obligations	(1,806,203		)	(2,750,750		)
Financing Costs Paid	(2,795		)	(7,500		)
Net Cash Provided (Used) by Financing Activities	7,248			1,218,171
Effect of exchange rate changes on cash, cash equivalents and restricted cash	1,636			20,902
Net Increase/(Decrease) in Cash, Cash Equivalents and Restricted Cash	145,256			(927,097		)
Cash, Cash Equivalents and Restricted Cash, Beginning of Period	2,641,512			3,735,361
Cash, Cash Equivalents and Restricted Cash, End of Period	$	2,786,768		$	2,808,264

See notes to financial statements.

11

KKR & CO. INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Continued)

(Amounts in Thousands)

	Three Months Ended March 31,
	2019			2018
Supplemental Disclosures of Cash Flow Information
Payments for Interest	$	240,889		$	207,703
Payments for Income Taxes	$	8,901		$	19,295
Payments for Operating Lease Liabilities	$	12,291		$	—
Supplemental Disclosures of Non-Cash Investing and Financing Activities
Equity-Based and Other Non-Cash Contributions	$	78,003		$	100,491
Non-Cash Contributions from Noncontrolling Interests	$	—		$	6,949
Debt Obligations - Net Gains (Losses), Translation and Other	$	(148,312	)	$	(11,724	)
Tax Effects Resulting from Exchange of KKR Holdings L.P. Units and delivery of Class A Common Stock	$	5,255		$	4,222
Change in Consolidation and Other
Investments	$	(1,014,813	)	$	—
Due From Affiliates	$	1,642		$	—
Other Assets	$	(19,703	)	$	—
Accounts Payable, Accrued Expenses and Other Liabilities	$	(47,731	)	$	—
Redeemable Noncontrolling Interests	$	(1,122,641	)	$	—
	March 31, 2019			December 31, 2018
Reconciliation to the Condensed Consolidated Statements of Financial Condition
Cash and Cash Equivalents	$	1,808,368		$	1,751,287
Cash and Cash Equivalents Held at Consolidated Entities	911,450			693,860
Restricted Cash and Cash Equivalents	66,950			196,365
Cash, Cash Equivalents and Restricted Cash, End of Period	$	2,786,768		$	2,641,512

See notes to financial statements.

12

KKR & CO. INC.

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

(All Amounts in Thousands, Except Unit and Share Data, and Except Where Noted)

1. ORGANIZATION

KKR & Co. Inc. (NYSE: KKR), together with its subsidiaries ("KKR"), is a leading global investment firm that manages multiple alternative asset classes including private equity, energy, infrastructure, real estate and credit, with strategic partners that manage hedge funds. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR's portfolio companies. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business.

On July 1, 2018, KKR & Co. L.P. converted from a Delaware limited partnership to a Delaware corporation named KKR & Co. Inc. (the "Conversion"). Because the Conversion became effective on July 1, 2018, the prior period amounts in the accompanying condensed consolidated financial statements for the three months ended March 31, 2018, reflect KKR as a limited partnership and not a corporation. In this report, references to KKR & Co. Inc. for periods prior to the Conversion mean KKR & Co. L.P., and references to KKR's Class A common stock, Series A Preferred Stock and Series B Preferred Stock for periods prior to the Conversion mean common units, Series A preferred units and Series B preferred units of KKR & Co. L.P., respectively, in each case, except where the context requires otherwise. As a result of the Conversion, the financial impact to the condensed consolidated financial statements contained herein consisted of (i) reclassifications from partnership equity accounts to equity accounts reflective of a corporation and (ii) a partial step-up in the tax basis of certain assets resulting in the recognition of a net income tax benefit.

KKR & Co. Inc. is the parent company of KKR Group Holdings Corp., which is (i) a general partner of KKR Fund Holdings L.P. ("Fund Holdings") and KKR International Holdings L.P. ("International Holdings") and (ii) the sole stockholder of KKR Management Holdings Corp. (the general partner of KKR Management Holdings L.P. ("Management Holdings")) and KKR Fund Holdings GP Limited (the other general partner of Fund Holdings and International Holdings). Fund Holdings, Management Holdings and International Holdings are collectively referred to as the "KKR Group Partnerships."

KKR & Co. Inc. both indirectly controls the KKR Group Partnerships and indirectly holds Class A partner units in each KKR Group Partnership (collectively, "KKR Group Partnership Units") representing economic interests in KKR's business. The remaining KKR Group Partnership Units are held by KKR Holdings L.P. ("KKR Holdings"), which is not a subsidiary of KKR & Co. Inc. As of March 31, 2019, KKR & Co. Inc. held approximately 64.1% of the KKR Group Partnership Units and principals through KKR Holdings held approximately 35.9% of the KKR Group Partnership Units. The percentage ownership in the KKR Group Partnerships will continue to change as KKR Holdings and/or principals exchange units in the KKR Group Partnerships for shares of Class A common stock of KKR & Co. Inc. or when KKR & Co. Inc. otherwise issues or repurchases shares of Class A common stock of KKR & Co. Inc. The KKR Group Partnerships also have outstanding equity interests that provide for the carry pool and preferred units with economic terms that mirror the preferred stock issued by KKR & Co. Inc.

13

Notes to Financial Statements (Continued)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited financial statements of KKR & Co. Inc. have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and the instructions to Form 10-Q. The condensed consolidated financial statements (referred to hereafter as the "financial statements"), including these notes, are unaudited and exclude some of the disclosures required in annual financial statements. Management believes it has made all necessary adjustments (consisting of only normal recurring items) such that the financial statements are presented fairly and that estimates made in preparing the financial statements are reasonable and prudent. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. The December 31, 2018 consolidated balance sheet data was derived from audited financial statements included in KKR's Annual Report on Form 10-K for the year ended December 31, 2018, filed with the Securities and Exchange Commission (the "SEC") on February 15, 2019, and the financial statements should be read in conjunction with the audited financial statements included therein. Additionally, in the accompanying financial statements the condensed consolidated statements of financial condition are referred to hereafter as the “consolidated statements of financial condition”; the condensed consolidated statements of operations are referred to hereafter as the “consolidated statements of operations”;  the condensed consolidated statements of comprehensive income (loss) are referred to hereafter as the “consolidated statements of comprehensive income (loss)”; the condensed consolidated statements of changes in equity are referred to hereafter as the “consolidated statements of changes in equity”; and the condensed consolidated statements of cash flows are referred to hereafter as the “consolidated statements of cash flows."

KKR consolidates the financial results of the KKR Group Partnerships and their consolidated entities, which include the accounts of KKR's investment management and capital markets companies, the general partners of certain unconsolidated investment funds, general partners of consolidated investment funds and their respective consolidated investment funds, and certain other entities including CFEs. References in the accompanying financial statements to "principals" are to KKR's senior employees and non-employee operating consultants who hold interests in KKR's business through KKR Holdings.

All intercompany transactions and balances have been eliminated.

Use of Estimates

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues, expenses, and investment income (loss) during the reporting periods. Such estimates include but are not limited to (i) the determination of the income tax provision and (ii) the valuation of investments and financial instruments. Actual results could differ from those estimates, and such differences could be material to the financial statements.

Principles of Consolidation

The types of entities KKR assesses for consolidation include (i) subsidiaries, including management companies, broker-dealers and general partners of investment funds that KKR manages, (ii) entities that have all the attributes of an investment company, like investment funds, (iii) CFEs and (iv) other entities, including entities that employ non-employee operating consultants. Each of these entities is assessed for consolidation on a case by case basis depending on the specific facts and circumstances surrounding that entity.

Pursuant to its consolidation policy, KKR first considers whether an entity is considered a VIE and therefore whether to apply the consolidation guidance under the VIE model. Entities that do not qualify as VIEs are assessed for consolidation as voting interest entities ("VOEs") under the voting interest model.

KKR's funds are, for GAAP purposes, investment companies and therefore are not required to consolidate their investments in portfolio companies even if majority-owned and controlled. Rather, the consolidated funds and vehicles reflect their investments at fair value as described below in "Fair Value Measurements."

An entity in which KKR holds a variable interest is a VIE if any one of the following conditions exist: (a) the total equity investment at risk is not sufficient to permit the legal entity to finance its activities without additional subordinated financial support, (b) the holders of the equity investment at risk (as a group) lack either the direct or indirect ability through voting rights or similar rights to make decisions about a legal entity's activities that have a significant effect on the success of the legal

14

Notes to Financial Statements (Continued)

entity or the obligation to absorb the expected losses or right to receive the expected residual returns, or (c) the voting rights of some investors are disproportionate to their obligation to absorb the expected losses of the legal entity, their rights to receive the expected residual returns of the legal entity, or both and substantially all of the legal entity's activities either involve or are conducted on behalf of an investor with disproportionately few voting rights. Limited partnerships and other similar entities where unaffiliated limited partners have not been granted (i) substantive participatory rights or (ii) substantive rights to either dissolve the partnership or remove the general partner ("kick-out rights") are VIEs under condition (b) above. KKR's investment funds that are not CFEs (i) are generally limited partnerships, (ii) generally provide KKR with operational discretion and control, and (iii) generally have fund investors with no substantive rights to impact ongoing governance and operating activities of the fund, including the ability to remove the general partner, and, as such, the limited partners do not hold kick-out rights. Accordingly, most of KKR's investment funds are categorized as VIEs.

KKR consolidates all VIEs in which it is the primary beneficiary. A reporting entity is determined to be the primary beneficiary if it holds a controlling financial interest in a VIE. A controlling financial interest is defined as (a) the power to direct the activities of a VIE that most significantly impact the VIE's economic performance and (b) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The consolidation guidance requires an analysis to determine (i) whether an entity in which KKR holds a variable interest is a VIE and (ii) whether KKR's involvement, through holding interests directly or indirectly in the entity or contractually through other variable interests (for example, management and performance related fees), would give it a controlling financial interest. Performance of that analysis requires the exercise of judgment. Fees earned by KKR that are customary and commensurate with the level of effort required to provide those services, and where KKR does not hold other economic interests in the entity that would absorb more than an insignificant amount of the expected losses or returns of the entity, would not be considered variable interests. KKR factors in all economic interests including interests held through related parties, to determine if it holds a variable interest. KKR determines whether it is the primary beneficiary of a VIE at the time it becomes involved with a VIE and reconsiders that conclusion when facts and circumstances change.

For entities that are determined not to be VIEs, these entities are generally considered VOEs and are evaluated under the voting interest model. KKR consolidates VOEs it controls through a majority voting interest or through other means.

The consolidation assessment, including the determination as to whether an entity qualifies as a VIE or VOE depends on the facts and circumstances surrounding each entity and therefore certain of KKR's investment funds may qualify as VIEs whereas others may qualify as VOEs.

With respect to CLOs (which are generally VIEs), in its role as collateral manager, KKR generally has the power to direct the activities of the CLO that most significantly impact the economic performance of the entity. In some, but not all cases, KKR, through its residual interest in the CLO may have variable interests that represent an obligation to absorb losses of, or a right to receive benefits from, the CLO that could potentially be significant to the CLO. In cases where KKR has both the power to direct the activities of the CLO that most significantly impact the CLO's economic performance and the obligation to absorb losses of the CLO or the right to receive benefits from the CLO that could potentially be significant to the CLO, KKR is deemed to be the primary beneficiary and consolidates the CLO.

With respect to CMBS vehicles (which are generally VIEs), KKR holds unrated and non-investment grade rated securities issued by the CMBS, which are the most subordinate tranche of the CMBS vehicle. The economic performance of the CMBS is most significantly impacted by the performance of the underlying assets. Thus, the activities that most significantly impact the CMBS economic performance are the activities that most significantly impact the performance of the underlying assets. The special servicer has the ability to manage the CMBS assets that are delinquent or in default to improve the economic performance of the CMBS. KKR generally has the right to unilaterally appoint and remove the special servicer for the CMBS and as such is considered the controlling class of the CMBS vehicle. These rights give KKR the ability to direct the activities that most significantly impact the economic performance of the CMBS. Additionally, as the holder of the most subordinate tranche, KKR is in a first loss position and has the right to receive benefits, including the actual residual returns of the CMBS, if any. In these cases, KKR is deemed to be the primary beneficiary and consolidates the CMBS vehicle.

Investments

Investments consist primarily of private equity, real assets, credit, investments of consolidated CFEs, equity method, carried interest and other investments. Investments denominated in currencies other than the entity's functional currency are valued based on the spot rate of the respective currency at the end of the reporting period with changes related to exchange rate movements reflected as a component of Net Gains (Losses) from Investment Activities in the consolidated statements of operations. Security and loan transactions are recorded on a trade date basis. Further disclosure on investments is presented in Note 4 "Investments."

15

Notes to Financial Statements (Continued)

The following describes the types of securities held within each investment class.

Private Equity - Consists primarily of equity investments in operating businesses, including growth equity investments.

Credit - Consists primarily of investments in below investment grade corporate debt securities (primarily high yield bonds and syndicated bank loans), originated, distressed and opportunistic debt, real estate mortgage loans, and interests in unconsolidated CLOs.

Investments of Consolidated CFEs - Consists primarily of (i) investments in below investment grade corporate debt securities (primarily high yield bonds and syndicated bank loans) held directly by the consolidated CLOs and (ii) investments in originated, fixed-rate real estate mortgage loans held directly by the consolidated CMBS vehicles.

Real Assets - Consists primarily of investments in (i) energy related assets, principally oil and natural gas producing properties, (ii) infrastructure assets, and (iii) real estate, principally residential and commercial real estate assets and businesses.

Equity Method - Other - Consists primarily of (i) certain direct interests in operating companies in which KKR is deemed to exert significant influence under GAAP and (ii) certain interests in partnerships and joint ventures that hold private equity and real estate investments.

Equity Method - Capital Allocation-Based Income - Consists primarily of (i) the capital interest KKR holds as the general partner in certain investment funds, which are not consolidated and (ii) the carried interest component of the general partner interest, which are accounted for as a single unit of account.

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

Investments held by Consolidated Investment Funds

The consolidated investment funds are, for GAAP purposes, investment companies and reflect their investments and other financial instruments, including portfolio companies that are majority-owned and controlled by KKR's investment funds, at fair value. KKR has retained this specialized accounting for the consolidated funds in consolidation. Accordingly, the unrealized gains and losses resulting from changes in fair value of the investments and other financial instruments held by the consolidated investment funds are reflected as a component of Net Gains (Losses) from Investment Activities in the consolidated statements of operations.

Certain energy investments are made through consolidated investment funds, including investments in working and royalty interests in oil and natural gas producing properties as well as investments in operating companies that operate in the energy industry. Since these investments are held through consolidated investment funds, such investments are reflected at fair value as of the end of the reporting period. 

Investments in operating companies that are held through KKR's consolidated investment funds are generally classified within private equity investments and investments in working and royalty interests in oil and natural gas producing properties are generally classified as real asset investments.

Energy Investments held by KKR

Certain energy investments are made by KKR in working and royalty interests in oil and natural gas producing properties and not through investment funds. Oil and natural gas producing activities are accounted for under the successful efforts method of accounting and such working interests are consolidated based on the proportion of the working interests held by KKR. Accordingly, KKR reflects its proportionate share of the underlying consolidated statements of financial condition and consolidated statements of operations of the consolidated working interests on a gross basis and changes in the value of these working interests are not reflected as unrealized gains and losses in the consolidated statements of operations. Under the successful efforts method, exploration costs, other than the costs of drilling exploratory wells, are charged to expense as incurred. Costs that are associated with the drilling of successful exploration wells are capitalized if proved reserves are found. Lease acquisition costs are capitalized when incurred. Costs associated with the drilling of exploratory wells that do not find proved reserves, geological and geophysical costs and costs of certain nonproducing leasehold costs are charged to expense as incurred.

16

Notes to Financial Statements (Continued)

Expenditures for repairs and maintenance, including workovers, are charged to expense as incurred.

The capitalized costs of producing oil and natural gas properties are depleted on a field-by-field basis using the units-of production method based on the ratio of current production to estimated total net proved oil, natural gas and natural gas liquid reserves. Proved developed reserves are used in computing depletion rates for drilling and development costs and total proved reserves are used for depletion rates of leasehold costs.

Estimated dismantlement and abandonment costs for oil and natural gas properties, net of salvage value, are capitalized at their estimated net present value and amortized on a unit-of-production basis over the remaining life of the related proved developed reserves.

Whenever events or changes in circumstances indicate that the carrying amounts of oil and natural gas properties may not be recoverable, KKR evaluates oil and natural gas properties and related equipment and facilities for impairment on a field-by-field basis. The determination of recoverability is made based upon estimated undiscounted future net cash flows. The amount of impairment loss, if any, is determined by comparing the fair value, as determined by a discounted cash flow analysis, with the carrying value of the related asset. Any impairment in value is recognized when incurred and is recorded in General, Administrative, and Other expense in the consolidated statements of operations.

Fair Value Option

For certain investments and other financial instruments, KKR has elected the fair value option. Such election is irrevocable and is applied on a financial instrument by financial instrument basis at initial recognition. KKR has elected the fair value option for certain private equity, real assets, credit, investments of consolidated CFEs, equity method - other and other financial instruments not held through a consolidated investment fund. Accounting for these investments at fair value is consistent with how KKR accounts for its investments held through consolidated investment funds. Changes in the fair value of such instruments are recognized in Net Gains (Losses) from Investment Activities in the consolidated statements of operations. Interest income on interest bearing credit securities on which the fair value option has been elected is based on stated coupon rates adjusted for the accretion of purchase discounts and the amortization of purchase premiums. This interest income is recorded within Interest Income in the consolidated statements of operations.

Equity Method

For certain investments in entities over which KKR exercises significant influence but which do not meet the requirements for consolidation and for which KKR has not elected the fair value option, KKR uses the equity method of accounting. The carrying value of equity method investments, for which KKR has not elected the fair value option, is determined based on the amounts invested by KKR, adjusted for the equity in earnings or losses of the investee allocated based on KKR's respective ownership percentage, less distributions.

For equity method investments for which KKR has not elected the fair value option, KKR records its proportionate share of the investee's earnings or losses based on the most recently available financial information of the investee, which in certain cases may lag the date of KKR's financial statements by no more than three calendar months. As of March 31, 2019, equity method investees for which KKR reports financial results on a lag include Marshall Wace LLP ("Marshall Wace"). KKR evaluates its equity method investments for which KKR has not elected the fair value option for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable.

The carrying value of investments classified as Equity Method - Capital Allocation-Based Income approximates fair value, because the underlying investments of the unconsolidated investment funds are reported at fair value.

Financial Instruments held by Consolidated CFEs

KKR measures both the financial assets and financial liabilities of the consolidated CFEs in its financial statements using the more observable of the fair value of the financial assets and the fair value of the financial liabilities which results in KKR's consolidated net income (loss) reflecting KKR's own economic interests in the consolidated CFEs including (i) changes in the fair value of the beneficial interests retained by KKR and (ii) beneficial interests that represent compensation for services rendered.

For the consolidated CLOs, KKR has determined that the fair value of the financial assets of the consolidated CLOs is more observable than the fair value of the financial liabilities of the consolidated CLOs. As a result, the financial assets of the consolidated CLOs are being measured at fair value and the financial liabilities are being measured in consolidation as: (1) the

17

Notes to Financial Statements (Continued)

sum of the fair value of the financial assets and the carrying value of any nonfinancial assets that are incidental to the operations of the CLOs less (2) the sum of the fair value of any beneficial interests retained by KKR (other than those that represent compensation for services) and KKR's carrying value of any beneficial interests that represent compensation for services. The resulting amount is allocated to the individual financial liabilities (other than the beneficial interests retained by KKR).

For the consolidated CMBS vehicles, KKR has determined that the fair value of the financial liabilities of the consolidated CMBS vehicles is more observable than the fair value of the financial assets of the consolidated CMBS vehicles. As a result, the financial liabilities of the consolidated CMBS vehicles are being measured at fair value and the financial assets are being measured in consolidation as: (1) the sum of the fair value of the financial liabilities (other than the beneficial interests retained by KKR), the fair value of the beneficial interests retained by KKR and the carrying value of any nonfinancial liabilities that are incidental to the operations of the CMBS vehicles less (2) the carrying value of any nonfinancial assets that are incidental to the operations of the CMBS vehicles. The resulting amount is allocated to the individual financial assets.

Fair Value Measurements

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. Except for certain of KKR's equity method investments (see "Equity Method" above) and debt obligations (as described in Note 10 "Debt Obligations"), KKR's investments and other financial instruments are recorded at fair value or at amounts whose carrying values approximate fair value. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation techniques are applied. These valuation techniques involve varying levels of management estimation and judgment, the degree of which is dependent on a variety of factors.

GAAP establishes a hierarchical disclosure framework which prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

Investments and financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination of fair values, as follows:

Level I - Pricing inputs are unadjusted, quoted prices in active markets for identical assets or liabilities as of the measurement date. The types of financial instruments included in this category are publicly-listed equities and securities sold short.

Level II - Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the measurement date, and fair value is determined through the use of models or other valuation methodologies. The types of financial instruments included in this category are credit investments, investments and debt obligations of consolidated CLO entities, convertible debt securities indexed to publicly-listed securities, less liquid and restricted equity securities and certain over-the-counter derivatives such as foreign currency option and forward contracts.

Level III - Pricing inputs are unobservable for the financial instruments and include situations where there is little, if any, market activity for the financial instrument. The inputs into the determination of fair value require significant management judgment or estimation. The types of financial instruments generally included in this category are private portfolio companies, real assets investments, credit investments, equity method investments for which the fair value option was elected and investments and debt obligations of consolidated CMBS entities.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. KKR's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and consideration of factors specific to the asset.

A significant decrease in the volume and level of activity for the asset or liability is an indication that transactions or quoted prices may not be representative of fair value because in such market conditions there may be increased instances of

18

Notes to Financial Statements (Continued)

transactions that are not orderly. In those circumstances, further analysis of transactions or quoted prices is needed, and a significant adjustment to the transactions or quoted prices may be necessary to estimate fair value.

The availability of observable inputs can vary depending on the financial asset or liability and is affected by a wide variety of factors, including, for example, the type of instrument, whether the instrument has recently been issued, whether the instrument is traded on an active exchange or in the secondary market, and current market conditions. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by KKR in determining fair value is greatest for instruments categorized in Level III. The variability and availability of the observable inputs affected by the factors described above may cause transfers between Levels I, II, and III, which KKR recognizes at the beginning of the reporting period. 

Investments and other financial instruments that have readily observable market prices (such as those traded on a securities exchange) are stated at the last quoted sales price as of the reporting date. KKR does not adjust the quoted price for these investments, even in situations where KKR holds a large position and a sale could reasonably affect the quoted price.

Management's determination of fair value is based upon the methodologies and processes described below and may incorporate assumptions that are management's best estimates after consideration of a variety of internal and external factors.

Level II Valuation Methodologies

Credit Investments: These instruments generally have bid and ask prices that can be observed in the marketplace. Bid prices reflect the highest price that KKR and others are willing to pay for an instrument. Ask prices represent the lowest price that KKR and others are willing to accept for an instrument. For financial assets and liabilities whose inputs are based on bid-ask prices obtained from third party pricing services, fair value may not always be a predetermined point in the bid-ask range. KKR's policy is generally to allow for mid-market pricing and adjusting to the point within the bid-ask range that meets KKR's best estimate of fair value.

Investments and Debt Obligations of Consolidated CLO Vehicles: Investments of consolidated CLO vehicles are reported within Investments of Consolidated CFEs and are valued using the same valuation methodology as described above for credit investments. Under ASU 2014-13, KKR measures CLO debt obligations on the basis of the fair value of the financial assets of the CLO.

Securities indexed to publicly-listed securities: The securities are typically valued using standard convertible security pricing models. The key inputs into these models that require some amount of judgment are the credit spreads utilized and the volatility assumed. To the extent the company being valued has other outstanding debt securities that are publicly-traded, the implied credit spread on the company's other outstanding debt securities would be utilized in the valuation. To the extent the company being valued does not have other outstanding debt securities that are publicly-traded, the credit spread will be estimated based on the implied credit spreads observed in comparable publicly-traded debt securities. In certain cases, an additional spread will be added to reflect an illiquidity discount due to the fact that the security being valued is not publicly-traded. The volatility assumption is based upon the historically observed volatility of the underlying equity security into which the convertible debt security is convertible and/or the volatility implied by the prices of options on the underlying equity security.

Restricted Equity Securities: The valuation of certain equity securities is based on an observable price for an identical security adjusted for the effect of a restriction.

Derivatives: The valuation incorporates observable inputs comprising yield curves, foreign currency rates and credit spreads.

Level III Valuation Methodologies

Investments and financial instruments categorized as Level III consist primarily of the following:

Private Equity Investments: KKR generally employs two valuation methodologies when determining the fair value of a private equity investment. The first methodology is typically a market comparables analysis that considers key financial inputs and recent public and private transactions and other available measures. The second methodology utilized is typically a discounted cash flow analysis, which incorporates significant assumptions and judgments. Estimates of key inputs used in this methodology include the weighted average cost of capital for the investment and assumed inputs used to calculate terminal values, such as exit EBITDA multiples. In certain cases the results of the discounted cash flow approach can be significantly

19

Notes to Financial Statements (Continued)

impacted by these estimates. Other inputs are also used in both methodologies. In addition, when a definitive agreement has been executed to sell an investment, KKR generally considers a significant determinant of fair value to be the consideration to be received by KKR pursuant to the executed definitive agreement.

Upon completion of the valuations conducted using these methodologies, a weighting is ascribed to each method, and an illiquidity discount is typically applied where appropriate. The ultimate fair value recorded for a particular investment will generally be within a range suggested by the two methodologies, except that the value may be higher or lower than such range in the case of investments being sold pursuant to an executed definitive agreement.

When determining the weighting ascribed to each valuation methodology, KKR considers, among other factors, the availability of direct market comparables, the applicability of a discounted cash flow analysis, the expected hold period and manner of realization for the investment, and in the case of investments being sold pursuant to an executed definitive agreement, an estimated probability of such sale being completed. These factors can result in different weightings among investments in the portfolio and in certain instances may result in up to a 100% weighting to a single methodology.

When an illiquidity discount is to be applied, KKR seeks to take a uniform approach across its portfolio and generally applies a minimum 5% discount to all private equity investments. KKR then evaluates such private equity investments to determine if factors exist that could make it more challenging to monetize the investment and, therefore, justify applying a higher illiquidity discount. These factors generally include (i) whether KKR is unable to freely sell the portfolio company or conduct an initial public offering of the portfolio company due to the consent rights of a third party or similar factors, (ii) whether the portfolio company is undergoing significant restructuring activity or similar factors, and (iii) characteristics about the portfolio company regarding its size and/or whether the portfolio company is experiencing, or expected to experience, a significant decline in earnings. These factors generally make it less likely that a portfolio company would be sold or publicly offered in the near term at a price indicated by using just a market multiples and/or discounted cash flow analysis, and these factors tend to reduce the number of opportunities to sell an investment and/or increase the time horizon over which an investment may be monetized. Depending on the applicability of these factors, KKR determines the amount of any incremental illiquidity discount to be applied above the 5% minimum, and during the time KKR holds the investment, the illiquidity discount may be increased or decreased, from time to time, based on changes to these factors. The amount of illiquidity discount applied at any time requires considerable judgment about what a market participant would consider and is based on the facts and circumstances of each individual investment. Accordingly, the illiquidity discount ultimately considered by a market participant upon the realization of any investment may be higher or lower than that estimated by KKR in its valuations.

In the case of growth equity investments, enterprise values may be determined using the market comparables analysis and discounted cash flow analysis described above. A scenario analysis may also be conducted to subject the estimated enterprise values to a downside, base and upside case, which involves significant assumptions and judgments. A milestone analysis may also be conducted to assess the current level of progress towards value drivers that we have determined to be important, which involves significant assumptions and judgments. The enterprise value in each case may then be allocated across the investment's capital structure to reflect the terms of the security and subjected to probability weightings. In certain cases, the values of growth equity investments may be based on recent or expected financings.

Real Asset Investments: Real asset investments in infrastructure, energy and real estate are valued using one or more of the discounted cash flow analysis, market comparables analysis and direct income capitalization, which in each case incorporates significant assumptions and judgments.

Infrastructure investments are generally valued using the discounted cash flow analysis. Key inputs used in this methodology can include the weighted average cost of capital and assumed inputs used to calculate terminal values, such as exit EBITDA multiples.

Energy investments are generally valued using a discounted cash flow approach, and where applicable, a market approach using comparable companies and transactions. Key inputs used in our valuations include (i) the weighted average cost of capital, (ii) future commodity prices, as quoted on indices and long-term commodity price forecasts, and (iii) the asset’s future operating performance.

Real estate investments are generally valued using a combination of direct income capitalization and discounted cash flow analysis. Certain real estate investments are valued by KKR based on ranges of valuations determined by an independent valuation firm. Key inputs used in such methodologies that require estimates include an unlevered discount rate and current capitalization rate. The valuations of real assets investments also use other inputs.

20

Notes to Financial Statements (Continued)

Credit Investments: Credit investments are valued using values obtained from dealers or market makers, and where these values are not available, credit investments are generally valued by KKR based on ranges of valuations determined by an independent valuation firm. Valuation models are based on discounted cash flow analyses, for which the key inputs are determined based on market comparables, which incorporate similar instruments from similar issuers.

Other Investments: With respect to other investments including equity method investments for which the fair value election has been made, KKR generally employs the same valuation methodologies as described above for private equity investments when valuing these other investments.

Investments and Debt Obligations of Consolidated CMBS Vehicles: Under ASU 2014-13, KKR measures CMBS investments, which are reported within Investments of Consolidated CFEs on the basis of the fair value of the financial liabilities of the CMBS. Debt obligations of consolidated CMBS vehicles are valued based on discounted cash flow analyses. The key input is the expected yield of each CMBS security using both observable and unobservable factors, which may include recently offered or completed trades and published yields of similar securities, security-specific characteristics (e.g. securities ratings issued by nationally recognized statistical rating organizations, credit support by other subordinate securities issued by the CMBS and coupon type) and other characteristics.

Key unobservable inputs that have a significant impact on KKR's Level III investment valuations as described above are included in Note 5 "Fair Value Measurements." KKR utilizes several unobservable pricing inputs and assumptions in determining the fair value of its Level III investments. These unobservable pricing inputs and assumptions may differ by investment and in the application of KKR's valuation methodologies. KKR's reported fair value estimates could vary materially if KKR had chosen to incorporate different unobservable pricing inputs and other assumptions or, for applicable investments, if KKR only used either the discounted cash flow methodology or the market comparables methodology instead of assigning a weighting to both methodologies.

Revenues

For the three months ended March 31, 2019 and 2018, respectively, revenues consisted of the following:    

	Three Months Ended March 31,
	2019			2018
Management Fees	$	188,408		$	187,727
Fee Credits	(103,477		)	(29,053		)
Transaction Fees	188,203			158,653
Monitoring Fees	25,651			17,586
Incentive Fees	—			13,805
Expense Reimbursements	44,060			20,211
Oil and Gas Revenue	13,175			14,507
Consulting Fees	16,528			10,958
Total Fees and Other	372,548			394,394
Carried Interest	694,383			62,747
General Partner Capital Interest	120,549			15,465
Total Capital Allocation-Based Income	814,932			78,212
Total Revenues	$	1,187,480		$	472,606

Fees and Other

Fees and Other, as detailed above, are accounted for as contracts with customers. Under the guidance for contracts with customers, KKR is required to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) KKR satisfies its performance obligation. In determining the transaction price, KKR has included variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved.

21

Notes to Financial Statements (Continued)

The following table summarizes KKR's revenues from contracts with customers:

Revenue Type	Customer	Performance Obligation	Performance Obligation Satisfied Over Time or Point In Time (1)	Variable or Fixed Consideration	Payment Terms	Subject to Return Once Recognized	Classification of Uncollected Amounts (2)
Management Fees	Investment funds, CLOs and other vehicles	Investment management services	Over time as services are rendered	Variable consideration since varies based on fluctuations in the basis of the management fee over time	Typically quarterly or annually in arrears	No	Due from Affiliates
Transaction Fees	Portfolio companies and third party companies	Advisory services and debt and equity arranging and underwriting	Point in time when the transaction (e.g. underwriting) is completed	Fixed consideration	Typically paid on or shortly after transaction closes	No	Due from Affiliates (portfolio companies) Other Assets (third parties)
Monitoring Fees
Recurring Fees	Portfolio companies	Monitoring services	Over time as services are rendered	Variable consideration since varies based on fluctuations in the basis of the recurring fee	Typically quarterly in arrears	No	Due from Affiliates
Termination Fees	Portfolio companies	Monitoring services	Point in time when the termination is completed	Fixed consideration	Typically paid on or shortly after termination occurs	No	Due from Affiliates
Incentive Fees	Investment funds and other vehicles	Investment management services that result in achievement of minimum investment return levels	Point in time at the end of the performance measurement period (quarterly or annually) if investment performance is achieved	Variable consideration since contingent upon the investment fund and other vehicles achieving more than stipulated investment return hurdles	Typically paid shortly after the end of the performance measurement period	No	Due from Affiliates
Expense Reimbursements	Investment funds and portfolio companies	Investment management and monitoring services	Point in time when the related expense is incurred	Fixed consideration	Typically shortly after expense is incurred	No	Due from Affiliates
Oil and Gas Revenues	Oil and gas wholesalers	Delivery of oil liquids and gas	Point in time when delivery has occurred and title has transferred	Fixed consideration	Typically shortly after delivery	No	Other Assets
Consulting Fees	Portfolio companies and other companies	Consulting and other services	Over time as services are rendered	Fixed consideration	Typically quarterly in arrears	No	Due from Affiliates

(1) For performance obligations satisfied at a point in time, there were no significant judgments made in evaluating when a customer obtains control of the promised service.

(2) For amounts classified in Other Assets, see Note 8 "Other Assets and Accounts Payable, Accrued Expenses and Other Liabilities." For amounts classified in Due from Affiliates, see Note 13 "Related Party Transactions."

Management Fees

KKR provides investment management services to investment funds, CLOs, and other vehicles in exchange for a management fee. Management fees are determined quarterly based on an annual rate and are generally based upon a percentage of the capital committed or capital invested during the investment period. Thereafter, management fees are generally based on a percentage of remaining invested capital, net asset value, gross assets or as otherwise defined in the respective contractual agreements. Since some of the factors that cause the fees to fluctuate are outside of KKR's control, management fees are considered to be constrained and are therefore not included in the transaction price. Additionally, after the contract is established there are no significant judgments made when determining the transaction price.

Management fees earned from KKR's consolidated investment funds, CLOs, and other vehicles are eliminated in consolidation. However, because these amounts are funded by, and earned from, noncontrolling interests, KKR's allocated share of the net income from the consolidated investment funds, CLOs, and other vehicles is increased by the amount of fees that are eliminated. Accordingly, the elimination of these fees does not impact the net income (loss) attributable to KKR or KKR stockholders' equity.

22

Notes to Financial Statements (Continued)

Fee Credits

Under the terms of the management agreements with certain of its investment funds, KKR is required to share with such funds an agreed upon percentage of certain fees, including monitoring and transaction fees earned from portfolio companies ("Fee Credits"). Investment funds earn Fee Credits only with respect to monitoring and transaction fees that are allocable to the fund's investment in the portfolio company and not, for example, any fees allocable to capital invested through co-investment vehicles. Fee Credits are calculated after deducting certain costs incurred in connection with pursuing potential investments that do not result in completed transactions ("broken-deal expenses") and generally amount to 80% for older funds, or 100% for newer funds, of allocable monitoring and transaction fees after broken-deal expenses are recovered, although the actual percentage may vary from fund to fund. Fee Credits are recognized and owed to investment funds concurrently with the recognition of monitoring fees, transaction fees and broken-deal expenses. Since Fee Credits are payable to investment funds, amounts owed are generally applied as a reduction of the management fee that is otherwise billed to the investment fund. Fee credits are recorded as a reduction of revenues in the consolidated statement of operations. Fee credits owed to investment funds are recorded in Due to Affiliates on the consolidated statements of financial condition. See Note 13 "Related Party Transactions."

Transaction Fees

KKR (i) arranges debt and equity financing, places and underwrites securities offerings, and provides other types of capital markets services for companies seeking financing in its Capital Markets business line and (ii) provides advisory services in connection with successful Private Markets and Public Markets portfolio company investment transactions, in each case, in exchange for a transaction fee. Transaction fees are separately negotiated for each transaction and are generally based on (i) in our Capital Markets business line, a percentage of the overall transaction size and (ii) for Private Markets and Public Markets transactions, a percentage of either total enterprise value of an investment or a percentage of the aggregate price paid for an investment. After the contract is established, there are no significant judgments made when determining the transaction price.

Monitoring Fees

KKR provides services in connection with monitoring portfolio companies in exchange for a fee. Recurring monitoring fees are separately negotiated for each portfolio company. In addition, certain monitoring fee arrangements may provide for a termination payment following an initial public offering or change of control as defined in the contractual terms of the related agreement. These termination payments are recognized in the period when the related transaction closes. After the contract is established, there are no significant judgments made when determining the transaction price.

Incentive Fees

KKR provides investment management services to certain investment funds, CLOs and other vehicles in exchange for a management fee as discussed above and, in some cases an incentive fee when KKR is not entitled to a carried interest. Incentive fee rates generally range from 5% to 20% of investment gains. Incentive fees are considered a form of variable consideration as these fees are subject to reversal, and therefore the recognition of such fees is deferred until the end of each fund's measurement period (which is generally one year) when the performance-based incentive fees become fixed and determinable. Incentive fees are generally paid within 90 days of the end of the investment vehicles' measurement period. After the contract is established, there are no significant judgments made when determining the transaction price.

Expense Reimbursements

Providing investment management services to investment funds and monitoring KKR’s portfolio companies require KKR to arrange for services on behalf of them. In those situations where KKR is acting as an agent on behalf of its investment funds or portfolio companies, it presents the cost of services on a net basis as a reduction of Revenues. In all other situations, KKR is primarily responsible for fulfilling the services and is therefore acting as a principal for those arrangements for accounting purposes. As a result, the expense and related reimbursement associated with those services is presented on a gross basis.Costs incurred are classified as Expenses and reimbursements of such costs are classified as Expense Reimbursements within Revenues on the consolidated statements of operations. After the contract is established, there are no significant judgments made when determining the transaction price.

23

Notes to Financial Statements (Continued)

Oil and Gas Revenue

KKR directly holds certain working and royalty interests in oil and natural gas producing properties that are not held through investment funds. Oil and gas revenue is recognized when the performance obligation is satisfied, which occurs at the point in time when control of the product transfers to the customer. Performance obligations are typically satisfied through the monthly delivery of production. Revenue is recognized based on KKR's proportionate share of production from non-operated properties as marketed by the operator. After the contract is established, there are no significant judgments made when determining the transaction price.

Consulting Fees

Certain consolidated entities that employ non-employee operating consultants provide consulting and other services to portfolio companies and other companies in exchange for a consulting fee. Consulting fees are separately negotiated with each portfolio company for which services are provided and are not shared with KKR. After the contract is established, there are no significant judgments made when determining the transaction price.

Capital Allocation-Based Income

Capital allocation-based income is earned from those arrangements where KKR has a general partner capital interest and is entitled to a disproportionate allocation of investment income (referred to hereafter as "carried interest"). KKR accounts for its general partner interests in capital allocation-based arrangements as financial instruments under ASC 323, Investments - Equity Method and Joint Ventures ("ASC 323") since the general partner has significant governance rights in the investment funds in which it invests, which demonstrates significant influence. In accordance with ASC 323, KKR records equity method income based on the proportionate share of the income of the investment fund, including carried interest, assuming the investment fund was liquidated as of each reporting date pursuant to each investment fund's governing agreements. Accordingly, these general partner interests are accounted for outside of the scope of ASC 606. Other arrangements surrounding contractual incentive fees through an advisory contract are separate and distinct and accounted for in accordance with ASC 606. In these incentive fee arrangements, accounted for in accordance with ASC 606, KKR’s economics in the entity do not involve an allocation of capital. See "Incentive Fees" above.

Carried interest is allocated to the general partner based on cumulative fund performance to date, and where applicable, subject to a preferred return to the funds' limited partners. At the end of each reporting period, KKR calculates the carried interest that would be due to KKR for each investment fund, pursuant to the fund agreements, as if the fair value of the underlying investments were realized as of such date, irrespective of whether such amounts have been realized. As the fair value of underlying investments varies between reporting periods, it is necessary to make adjustments to amounts recorded as carried interest to reflect either (a) positive performance resulting in an increase in the carried interest allocated to the general partner or (b) negative performance that would cause the amount due to KKR to be less than the amount previously recognized, resulting in a negative adjustment to carried interest allocated to the general partner. In each case, it is necessary to calculate the carried interest on cumulative results compared to the carried interest recorded to date and to make the required positive or negative adjustments. KKR ceases to record negative carried interest allocations once previously recognized carried interest allocations for an investment fund have been fully reversed. KKR is not obligated to make payments for guaranteed returns or hurdles and, therefore, cannot have negative carried interest over the life of an investment fund. Accrued but unpaid carried interest as of the reporting date is reflected in Investments in the consolidated statements of financial condition.

Income Taxes

KKR & Co. Inc. is a corporation for U.S. federal income tax purposes and thus is subject to U.S. federal, state and local corporate income taxes at the entity level on KKR’s share of net taxable income. In addition, the KKR Group Partnerships and certain of their subsidiaries operate in the United States as partnerships for U.S. federal income tax purposes and as corporate entities in certain non-U.S. jurisdictions. These entities, in some cases, are subject to U.S. state or local income taxes or non-U.S. income taxes.

Prior to the Conversion, KKR & Co. L.P.’s investment income and carried interest generally were not subject to U.S. corporate income taxes. Subsequent to the Conversion, all income earned by KKR & Co. Inc. is subject to U.S. corporate income taxes.

See Note 11 "Income Taxes" for further information on the financial statement impact of the Conversion.

24

Notes to Financial Statements (Continued)

Leases

At contract inception, KKR determines if an arrangement contains a lease by evaluating whether (i) the identified asset has been deployed in the contract explicitly or implicitly and (ii) KKR obtains substantially all of the economic benefits from the use of that underlying asset and directs how and for what purpose the asset is used during the term of the contract. Additionally, at contract inception KKR will evaluate whether the lease is an operating or finance lease. Right-of-use (“ROU”) assets represent KKR’s right to use an underlying asset for the lease term and lease liabilities represent KKR’s obligation to make lease payments arising from the lease.

ROU assets and the associated lease liabilities are recognized at the commencement date based on the present value of the future minimum lease payments over the lease term. The discount rate implicit in the lease is generally not readily determinable. Consequently, KKR uses its incremental borrowing rate based on the information available including, but not limited to, collateral assumptions, the term of the lease, and the economic environment in which the lease is denominated at the commencement date in determining the present value of the future lease payments. The ROU assets are recognized as the initial measurement of the lease liabilities plus any initial direct costs and any prepaid lease payments less lease incentives received, if any. The lease terms may include options to extend or terminate the lease which are accounted for when it is reasonably certain that KKR will exercise that option.

Operating lease expense is recognized on a straight-line basis over the lease term and is recorded within Occupancy and Related Charges in the accompanying consolidated statements of operations. The ROU assets are included in Other Assets and the lease liabilities are included in Accounts Payable, Accrued Expenses and Other Liabilities in the accompanying consolidated statements of financial condition. See Note 8 "Other Assets and Accounts Payable, Accrued Expenses and Other Liabilities."

Recently Issued Accounting Pronouncements

Adopted in 2019

Leases

In February 2016, the FASB issued ASU No. 2016-02, Leases ("ASC 842") which has subsequently been amended. This guidance, among other items: (i) requires recognition of lease assets and lease liabilities for those leases classified as operating leases under previous GAAP, ASC 840; (ii) retains a distinction between finance leases and operating leases; and (iii) includes the classification criteria for distinguishing between finance leases and operating leases that are substantially similar to the classification criteria for distinguishing between capital leases and operating leases under ASC 840.

The only material lease activity KKR is engaged in is the leasing of office space where KKR is the lessee under the terms of lease agreements, which have been determined to be operating leases. For operating leases, a lessee is required to: (a) recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the consolidated statement of financial condition; (b) recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term, generally on a straight-line basis, and (c) classify all cash payments within operating activities in the consolidated statement of cash flows.

KKR adopted this guidance on the effective date, January 1, 2019, using the modified retrospective approach and electing the "Comparatives Under ASC 840 Approach." The Comparatives Under ASC 840 Approach allows an entity to elect not to recast its comparative periods in the period of adoption when transitioning to ASC 842. In doing so, KKR has provided the disclosures required by ASC 840 for the comparative periods. Additionally, KKR has elected the practical expedient package transition election for all leases. The practical expedient package under the new standard allows an entity not to have to reassess its prior conclusions about lease identification, lease classification and initial direct costs.

Upon adoption, KKR recorded ROU assets of $153.3 million and lease liabilities of $162.9 million, resulting in no cumulative-effect adjustment to retained earnings as of January 1, 2019.

25

Notes to Financial Statements (Continued)

Premium Amortization on Purchased Callable Debt Securities

In March 2017, the FASB issued ASU No. 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities ("ASU 2017-08"). This guidance amends the amortization period for certain purchased callable debt securities held at a premium. The guidance requires the premium to be amortized to the earliest call date. The guidance does not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 is effective for fiscal years and interim periods beginning after December 15, 2018. This guidance has been adopted as of January 1, 2019 and did not have a material impact to KKR.

Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income

In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ("ASU 2018-02"). Under ASC 740-10-45-15, the effects of changes in tax rates and laws on deferred tax balances are recorded as a component of tax expense for the period in which the law was enacted, even if the assets and liabilities related to items of accumulated other comprehensive income ("OCI"). ASU 2018-02 allows entities to elect to reclassify from accumulated OCI to retained earnings stranded tax effects that relate to the Tax Cuts and Jobs Act, which was enacted in December 2017 (the "2017 Tax Act") from the change in federal tax rate for all items accounted for in OCI. Entities can also elect to reclassify other stranded tax effects that relate to the 2017 Tax Act, but do not directly relate to the change in the federal tax rate. Tax effects that are stranded in OCI for other reasons may not be reclassified. In the period of adoption, entities that elect to reclassify the income tax effects of the 2017 Tax Act from accumulated OCI to retained earnings must disclose that they made such an election. Entities must also disclose a description of other income tax effects related to the 2017 Tax Act that are reclassified from accumulated OCI to retained earnings, if any. The guidance is effective for fiscal periods beginning after December 15, 2018, and interim periods within those fiscal years. This guidance has been adopted as of January 1, 2019 and did not have a material impact to KKR. KKR did not elect to reclassify stranded tax effects that relate to the 2017 Tax Act from accumulated OCI to retained earnings for all items accounted for in OCI. KKR's policy for releasing income tax effects from accumulated OCI is when all related units of account are liquidated, sold or extinguished.

Effective on January 1, 2020

Goodwill

In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This guidance simplifies the accounting for goodwill impairments by eliminating the second step from the goodwill impairment test. The ASU requires goodwill impairments to be measured on the basis of the fair value of a reporting unit relative to the reporting unit's carrying amount rather than on the basis of the implied amount of goodwill relative to the goodwill balance of the reporting unit. The ASU also (i) clarifies the requirements for excluding and allocating foreign currency translation adjustments to reporting units related to an entity's testing of reporting units for goodwill impairment and (ii) clarifies that an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The guidance is effective for fiscal periods beginning after December 15, 2019. Early adoption is allowed for entities as of January 1, 2017, for annual and any interim impairment tests occurring after January 1, 2017. KKR is currently evaluating the impact of this guidance on the financial statements.

Implementation Costs Incurred in a Cloud Computing Arrangement

In August 2018, the FASB issued ASU No. 2018-15, which addresses a customer’s accounting for implementation costs incurred in a cloud computing arrangement ("CCA") that is a service contract. The ASU aligns the accounting for costs incurred to implement a CCA that is a service arrangement with the guidance on capitalizing costs associated with developing or obtaining internal-use software. The guidance is effective for fiscal periods beginning after December 15, 2019. Early adoption is permitted and this ASU can be applied on either a retrospective or prospective basis. KKR is currently evaluating the impact of this guidance on the financial statements.

26

Notes to Financial Statements (Continued)

3. NET GAINS (LOSSES) FROM INVESTMENT ACTIVITIES

Net Gains (Losses) from Investment Activities in the consolidated statements of operations consist primarily of the realized and unrealized gains and losses on investments (including foreign exchange gains and losses attributable to foreign denominated investments and related activities) and other financial instruments, including those for which the fair value option has been elected. Unrealized gains or losses result from changes in the fair value of these investments and other financial instruments during a period. Upon disposition of an investment or financial instrument, previously recognized unrealized gains or losses are reversed and an offsetting realized gain or loss is recognized in the current period.

The following table summarizes total Net Gains (Losses) from Investment Activities:

	Three Months Ended March 31, 2019									Three Months Ended March 31, 2018
	Net Realized Gains (Losses)			Net Unrealized Gains (Losses)			Total			Net Realized Gains (Losses)			Net Unrealized Gains (Losses)			Total
Private Equity (1)	$	68,568		$	919,625		$	988,193		$	16,253		$	158,369		$	174,622
Credit (1)	(17,876		)	8,669			(9,207		)	1,263			58,150			59,413
Investments of Consolidated CFEs (1)	(10,530		)	233,357			222,827			(26,516		)	(48,403		)	(74,919		)
Real Assets (1)	29,547			89,581			119,128			12,957			59,297			72,254
Equity Method - Other (1)	20,133			156,906			177,039			9,210			135,604			144,814
Other Investments (1)	1,450			(30,361		)	(28,911		)	(244,199		)	86,365			(157,834		)
Foreign Exchange Forward Contracts      and Options (2)	25,454			54,789			80,243			(32,614		)	(63,118		)	(95,732		)
Securities Sold Short (2)	14,426			(80,772		)	(66,346		)	275,949			(29,874		)	246,075
Other Derivatives (2)	1,465			(13,405		)	(11,940		)	3,642			(8,223		)	(4,581		)
Debt Obligations and Other (3)	(2,856		)	(264,292		)	(267,148		)	14,435			94,253			108,688
Net Gains (Losses) From Investment      Activities	$	129,781		$	1,074,097		$	1,203,878		$	30,380		$	442,420		$	472,800

(1) See Note 4 "Investments."

(2) See Note 8 "Other Assets and Accounts Payable, Accrued Expenses and Other Liabilities."

(3) See Note 10 "Debt Obligations."

4. INVESTMENTS

Investments consist of the following:

	March 31, 2019		December 31, 2018
Private Equity	$	8,522,282	$	7,349,559
Credit	7,649,787		9,099,135
Investments of Consolidated CFEs	15,021,345		14,733,423
Real Assets	3,213,813		3,157,954
Equity Method - Other	4,472,692		4,212,874
Equity Method - Capital Allocation-Based Income	4,203,980		3,584,415
Other Investments	2,711,355		2,770,622
Total Investments	$	45,795,254	$	44,907,982

As of March 31, 2019 and December 31, 2018, there were no investments which represented greater than 5% of total investments. The majority of the securities underlying private equity investments represent equity securities.

27

Notes to Financial Statements (Continued)

5. FAIR VALUE MEASUREMENTS

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:

	March 31, 2019
	Level I		Level II		Level III			Total
Private Equity	$	1,603,803	$	86,933	$	6,831,546		$	8,522,282
Credit	—		1,119,308		6,530,479			7,649,787
Investments of Consolidated CFEs	—		12,937,610		2,083,735			15,021,345
Real Assets	—		—		3,213,813			3,213,813
Equity Method - Other	219,566		47,938		1,650,179			1,917,683
Other Investments	501,523		145,882		2,063,950			2,711,355
Total Investments	2,324,892		14,337,671		22,373,702			39,036,265
Foreign Exchange Contracts and Options	—		205,900		—			205,900
Other Derivatives	—		1,786		31,134		(1)	32,920
Total Assets	$	2,324,892	$	14,545,357	$	22,404,836		$	39,275,085

	December 31, 2018
	Level I		Level II		Level III			Total
Private Equity	$	1,156,977	$	63,999	$	6,128,583		$	7,349,559
Credit	—		2,334,405		6,764,730			9,099,135
Investments of Consolidated CFEs	—		12,650,878		2,082,545			14,733,423
Real Assets	—		—		3,157,954			3,157,954
Equity Method - Other	245,225		43,943		1,503,022			1,792,190
Other Investments	480,192		173,844		2,116,586			2,770,622
Total Investments	1,882,394		15,267,069		21,753,420			38,902,883
Foreign Exchange Contracts and Options	—		177,264		—			177,264
Other Derivatives	—		3,879		37,116		(1)	40,995
Total Assets	$	1,882,394	$	15,448,212	$	21,790,536		$	39,121,142

(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.

28

Notes to Financial Statements (Continued)

Liabilities, at fair value:

	March 31, 2019
	Level I		Level II		Level III			Total
Securities Sold Short	$	582,608	$	—	$	—		$	582,608
Foreign Exchange Contracts and Options	—		17,200		—			17,200
Unfunded Revolver Commitments	—		—		56,792		(1)	56,792
Other Derivatives	—		23,769		17,200		(2)	40,969
Debt Obligations of Consolidated CFEs	—		12,557,821		1,914,571			14,472,392
Total Liabilities	$	582,608	$	12,598,790	$	1,988,563		$	15,169,961

	December 31, 2018
	Level I		Level II		Level III			Total
Securities Sold Short	$	344,124	$	—	$	—		$	344,124
Foreign Exchange Contracts and Options	—		60,749		—			60,749
Unfunded Revolver Commitments	—		—		52,066		(1)	52,066
Other Derivatives	—		18,440		17,200		(2)	35,640
Debt Obligations of Consolidated CFEs	—		12,081,771		1,876,783			13,958,554
Total Liabilities	$	344,124	$	12,160,960	$	1,946,049		$	14,451,133

(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.

(2) Includes options issued in connection with the acquisition of the equity interest in Marshall Wace and its affiliates in November 2015 to increase KKR's ownership interest in periodic increments. The options are valued using a Monte-Carlo simulation valuation methodology. Key inputs used in this methodology that require estimates include Marshall Wace's dividend yield, assets under management volatility and equity volatility. See Note 4 "Investments."

29

Notes to Financial Statements (Continued)

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 three months ended March 31, 2019 and 2018, respectively: 

	For the Three Months Ended March 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	—			(1,598		)	—			—			—			(42,864		)	(44,462		)	—
Transfers In	—			—			—			—			—			—			—			—
Transfers Out	(56,029		)	—			—			—			—			—			(56,029		)	—
Asset Purchases / Debt Issuances	409,621			811,957			—			67,302			137,909			95,135			1,521,924			—
Sales / Paydowns	(99,603		)	(1,028,063		)	(38,295		)	(130,571		)	(41,126		)	(27,433		)	(1,365,091		)	—
Settlements	—			20,815			—			—			—			—			20,815			(2,731		)
Net Realized Gains (Losses)	68,568			(15,198		)	—			29,547			11,626			2,121			96,664			—
Net Unrealized Gains (Losses)	380,406			(24,806		)	39,485			89,581			38,748			(79,595		)	443,819			40,519
Change in Other Comprehensive Income	—			2,642			—			—			—			—			2,642			—
Balance, End of Period	$	6,831,546		$	6,530,479		$	2,083,735		$	3,213,813		$	1,650,179		$	2,063,950		$	22,373,702		$	1,914,571
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	$	442,672		$	(31,282	)	$	39,485		$	92,900		$	49,140		$	(79,347	)	$	513,568		$	40,519

	For the Three Months Ended March 31, 2018
	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	$	2,172,290		$	5,138,937		$	5,353,090		$	2,251,267		$	1,076,709		$	1,760,011		$	17,752,304		$	5,238,236
Transfers In / (Out) Due to Changes in Consolidation	—			—			—			—			—			—			—			—
Transfers In	—			—			—			—			—			—			—			—
Transfers Out	—			—			—			—			—			—			—			—
Asset Purchases / Debt Issuances	727,626			890,113			—			540,898			2,037			64,757			2,225,431			—
Sales / Paydowns	(35,245		)	(230,144		)	(11,541		)	(34,237		)	(31,939		)	(36,218		)	(379,324		)	—
Settlements	—			(53,825		)	—			—			—			—			(53,825		)	(11,541		)
Net Realized Gains (Losses)	15,312			11,581			—			8,354			9,348			8,892			53,487			—
Net Unrealized Gains (Losses)	208,428			77,715			(83,150		)	61,151			29,570			3,762			297,476			(88,528		)
Change in Other Comprehensive Income	—			(15,522		)	—			—			—			—			(15,522		)	—
Balance, End of Period	$	3,088,411		$	5,818,855		$	5,258,399		$	2,827,433		$	1,085,725		$	1,801,204		$	19,880,027		$	5,138,167
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	$	208,428		$	86,754		$	(83,150	)	$	61,151		$	34,928		$	10,442		$	318,553		$	(88,528	)

30

Notes to Financial Statements (Continued)

Total realized and unrealized gains and losses recorded for Level III assets and liabilities are reported in Net Gains (Losses) from Investment Activities in the accompanying consolidated statements of operations.

The following table presents additional information about valuation methodologies and significant unobservable inputs used for investments and debt obligations that are measured and reported at fair value and categorized within Level III as of March 31, 2019:

	Fair Value March 31, 2019			Valuation Methodologies	Unobservable Input(s) (1)	Weighted Average (2)	Range	Impact to  Valuation from an Increase in Input (3)
Private Equity	$	6,831,546
Private Equity	$	4,322,213		Inputs to market comparables and discounted cash flow and transaction price	Illiquidity Discount	6.1%	5.0% - 15.0%	Decrease
					Weight Ascribed to Market Comparables	30.5%	0.0% - 50.0%	(4)
					Weight Ascribed to Discounted Cash Flow	69.4%	0.0% - 100.0%	(5)
					Weight Ascribed to Transaction Price	0.1%	0.0% - 100.0%	(6)
				Market comparables	Enterprise Value/LTM EBITDA Multiple	14.2x	6.9x - 23.7x	Increase
					Enterprise Value/Forward EBITDA Multiple	12.4x	6.2x - 17.2x	Increase
				Discounted cash flow	Weighted Average Cost of Capital	10.7%	5.6% - 14.6%	Decrease
					Enterprise Value/LTM EBITDA Exit Multiple	12.4x	6.0x - 15.0x	Increase
Growth Equity	$	2,509,333		Inputs to market comparables, discounted cash flow and milestones	Illiquidity Discount	11.6%	5.0% - 20.0%	Decrease
					Weight Ascribed to Market Comparables	35.2%	0.0% - 100.0%	(4)
					Weight Ascribed to Discounted Cash Flow	15.3%	0.0% - 75.0%	(5)
					Weight Ascribed to Milestones	49.5%	0.0% - 100.0%	(6)
				Scenario Weighting	Base	61.4%	40.0% - 80.0%	Increase
					Downside	16.0%	5.0% - 30.0%	Decrease
					Upside	22.6%	10.0% - 45.0%	Increase
Credit	$	6,530,479		Yield Analysis	Yield	7.6%	3.5% - 23.4%	Decrease
					Net Leverage	2.1x	0.2x - 14.1x	Decrease
					EBITDA Multiple	9.7x	0.2x - 38.2x	Increase
Investments of Consolidated CFEs	$	2,083,735	(9)
Debt Obligations of Consolidated CFEs	$	1,914,571		Discounted cash flow	Yield	5.8%	2.6% - 15.5%	Decrease
Real Assets	$	3,213,813	(10)
Energy	$	1,711,998		Discounted cash flow	Weighted Average Cost of Capital	10.6%	9.5% - 14.1%	Decrease
					Average Price Per BOE (8)	$44.62	$38.98 - $47.75	Increase
Real Estate	$	1,294,181		Inputs to direct income capitalization and discounted cash flow	Weight Ascribed to Direct Income Capitalization	32.2%	0.0% - 100.0%	(7)
					Weight Ascribed to Discounted Cash Flow	67.8%	0.0% - 100.0%	(5)
				Direct income capitalization	Current Capitalization Rate	5.9%	0.4% - 9.5%	Decrease
				Discounted cash flow	Unlevered Discount Rate	8.0%	4.8% - 18.0%	Decrease
Equity Method - Other	$	1,650,179		Inputs to market comparables, discounted cash flow and transaction price	Illiquidity Discount	9.5%	5.0% - 15.0%	Decrease
					Weight Ascribed to Market Comparables	42.6%	0.0% - 75.0%	(4)
					Weight Ascribed to Discounted Cash Flow	39.4%	0.0% - 100.0%	(5)
					Weight Ascribed to Transaction Price	18.0%	0.0% - 100.0%	(6)
				Market comparables	Enterprise Value/LTM EBITDA Multiple	12.0x	6.9x - 15.2x	Increase
					Enterprise Value/Forward EBITDA Multiple	11.2x	6.2x - 13.2x	Increase
				Discounted cash flow	Weighted Average Cost of Capital	9.0%	5.6% - 13.0%	Decrease
					Enterprise Value/LTM EBITDA Exit Multiple	10.4x	6.0x - 12.5x	Increase

31

Notes to Financial Statements (Continued)

	Fair Value March 31, 2019			Valuation Methodologies	Unobservable Input(s) (1)	Weighted Average (2)	Range	Impact to  Valuation from an Increase in Input (3)
Other Investments	$	2,063,950	(11)	Inputs to market comparables, discounted cash flow and transaction price	Illiquidity Discount	10.2%	5.0% - 20.0%	Decrease
					Weight Ascribed to Market Comparables	38.1%	0.0% - 100.0%	(4)
					Weight Ascribed to Discounted Cash Flow	36.1%	0.0% - 100.0%	(5)
					Weight Ascribed to Transaction Price	25.8%	0.0% - 100.0%	(6)
				Market comparables	Enterprise Value/LTM EBITDA Multiple	10.3x	1.3x - 14.6x	Increase
					Enterprise Value/Forward EBITDA Multiple	9.1x	1.2x - 11.7x	Increase
				Discounted cash flow	Weighted Average Cost of Capital	17.2%	7.3% - 31.1%	Decrease
					Enterprise Value/LTM EBITDA Exit Multiple	8.9x	6.5x - 9.1x	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 88% liquids and 12% natural gas.

(9) KKR measures CMBS investments on the basis of the fair value of the financial liabilities of the CMBS vehicle. See Note 2 "Summary of Significant Accounting Policies."

(10) Includes one Infrastructure investment for $207.6 million that was valued using a discounted cash flow analysis. The significant inputs used included the weighted average cost of capital 6.8% and the enterprise value/LTM EBITDA Exit Multiple 10.0x.

(11) 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.

In the table above, certain private equity investments may be valued at cost for a period of time after an acquisition as the best indicator of fair value. In addition, certain valuations of private equity investments may be entirely or partially derived by reference to observable valuation measures for a pending or consummated transaction.

The various unobservable inputs used to determine the Level III valuations may have similar or diverging impacts on valuation. Significant increases and decreases in these inputs in isolation and interrelationships between those inputs could result in significantly higher or lower fair value measurements as noted in the table above.

32

Notes to Financial Statements (Continued)

6. FAIR VALUE OPTION

The following table summarizes the financial instruments for which the fair value option has been elected:

	March 31, 2019		December 31, 2018
Assets
Private Equity	$	3,235	$	2,977
Credit	4,519,000		4,950,819
Investments of Consolidated CFEs	15,021,345		14,733,423
Real Assets	309,105		310,399
Equity Method - Other	1,917,683		1,792,190
Other Investments	225,867		235,012
Total	$	21,996,235	$	22,024,820
Liabilities
Debt Obligations of Consolidated CFEs	$	14,472,392	$	13,958,554
Total	$	14,472,392	$	13,958,554

The following table presents the net realized and net unrealized gains (losses) on financial instruments for which the fair value option was elected:

	Three Months Ended March 31, 2019									Three Months Ended March 31, 2018
	Net Realized Gains (Losses)			Net Unrealized Gains (Losses)			Total			Net Realized Gains (Losses)			Net Unrealized Gains (Losses)			Total
Assets
Private Equity	$	—		$	194		$	194		$	71		$	316		$	387
Credit	(23,153		)	20,942			(2,211		)	(28,867		)	2,656			(26,211		)
Investments of Consolidated CFEs	(10,530		)	233,357			222,827			(26,516		)	(48,403		)	(74,919		)
Real Assets	703			2,436			3,139			428			(3,483		)	(3,055		)
Equity Method - Other	11,626			17,084			28,710			9,348			66,093			75,441
Other Investments	1,794			3,987			5,781			4,607			(7,878		)	(3,271		)
Total	$	(19,560	)	$	278,000		$	258,440		$	(40,929	)	$	9,301		$	(31,628	)
Liabilities
Debt Obligations of Consolidated CFEs	—			(252,281		)	(252,281		)	13,256			93,654			106,910
Total	$	—		$	(252,281	)	$	(252,281	)	$	13,256		$	93,654		$	106,910

33

Notes to Financial Statements (Continued)

7. NET INCOME (LOSS) ATTRIBUTABLE TO KKR & CO. INC. PER SHARE OF CLASS A COMMON STOCK

For the three months ended March 31, 2019 and 2018, basic and diluted Net Income (Loss) attributable to KKR & Co. Inc. per share of Class A common stock were calculated as follows:

	Three Months Ended March 31,
	2019		2018
Net Income (Loss) Attributable to KKR & Co. Inc. Class A Common Stockholders	$	700,978	$	170,102
Excess of carrying value over consideration transferred on redemption of KFN 7.375% Series A LLC Preferred Shares	—		3,102
Net Income (Loss) Available to KKR & Co. Inc. Class A Common Stockholders	$	700,978	$	173,204

Basic Net Income (Loss) Per Share of Class A Common Stock
Weighted Average Shares of Class A Common Stock Outstanding - Basic	533,892,474		487,704,838
Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Class A Common Stock - Basic	$	1.31	$	0.36

Diluted Net Income (Loss) Per Share of Class A Common Stock
Weighted Average Shares of Class A Common Stock Outstanding - Basic	533,892,474		487,704,838
Weighted Average Unvested Shares of Class A Common Stock and Other Exchangeable Securities	16,153,966		48,213,436
Weighted Average Shares of Class A Common Stock Outstanding - Diluted	550,046,440		535,918,274
Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Class A Common Stock - Diluted	$	1.27	$	0.32

Weighted Average Shares of Class A Common Stock Outstanding - Diluted primarily includes unvested equity awards that have been granted under the Amended and Restated KKR & Co. Inc. 2010 Equity Incentive Plan (the "2010 Equity Incentive Plan" and, together with the KKR & Co. Inc. 2019 Equity Incentive Plan (the "2019 Equity Incentive Plan"), the "Equity Incentive Plans"), as well as exchangeable equity securities issued in connection with the acquisition of Avoca. Vesting or exchanges of these equity interests dilute KKR & Co. Inc. and KKR Holdings pro rata in accordance with their respective ownership interests in the KKR Group Partnerships.

For the three months ended March 31, 2019 and 2018, KKR Holdings units have been excluded from the calculation of Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Class A Common Stock - Diluted since the exchange of these units would not dilute KKR's respective ownership interests in the KKR Group Partnerships.

	Three Months Ended March 31,
	2019	2018
Weighted Average KKR Holdings Units	298,858,418	335,016,218

Additionally, for the three months endedMarch 31, 2019, 5.0 million shares of KKR Class A common stock subject to a market price-based vesting condition were excluded from the calculation of Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Class A Common Stock - Diluted since the vesting conditions have not been satisfied. See Note 12 "Equity Based Compensation."

34

Notes to Financial Statements (Continued)

8. OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES

Other Assets consist of the following:

	March 31, 2019		December 31, 2018
Unsettled Investment Sales (1)	$	129,141	$	101,789
Receivables	64,802		27,258
Due from Broker (2)	485,127		396,512
Oil & Gas Assets, net (3)	210,865		225,256
Deferred Tax Assets, net	408,148		538,161
Interest Receivable	231,445		241,547
Fixed Assets, net (4)	466,264		451,206
Foreign Exchange Contracts and Options (5)	205,900		177,264
Intangible Assets, net (6)	9,125		9,863
Goodwill (7)	83,500		83,500
Derivative Assets	32,920		40,995
Deposits	7,284		7,299
Prepaid Taxes	73,054		69,165
Prepaid Expenses	27,106		23,551
Operating Lease Right of Use Assets (8)	146,165		—
Deferred Financing Costs	13,458		13,871
Other	93,498		129,455
Total	$	2,687,802	$	2,536,692

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

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

(3) Includes proved and unproved oil and natural gas properties under the successful efforts method of accounting, which is net of impairment write-downs, accumulated depreciation, depletion and amortization. Depreciation, depletion and amortization amounted to $13.8 million and $7.1 million for the three months ended March 31, 2019 and 2018, respectively.

(4) Net of accumulated depreciation and amortization of $118.0 million and $113.5 million as of March 31, 2019 and December 31, 2018, respectively. Depreciation and amortization expense of $4.4 million and $3.7 million for the three months ended March 31, 2019 and 2018, respectively, is included in General, Administrative and Other in the accompanying consolidated statements of operations.

(5) Represents derivative financial instruments used to manage foreign exchange risk arising from certain foreign currency 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 consolidated statements of operations. See Note 3 "Net Gains (Losses) from Investment Activities" for the net changes in fair value associated with these instruments.

(6) Net of accumulated amortization of $63.5 million as of March 31, 2019 and December 31, 2018. Amortization expense of $0.5 million and $5.0 million for the three months ended March 31, 2019 and 2018, respectively, is included in General, Administrative and Other in the accompanying consolidated statements of operations.

(7) As of March 31, 2019, the carrying value of goodwill is recorded and assessed for impairment at the reporting unit.

(8) KKR’s non-cancelable operating leases consist of leases for office space around the world. KKR is the lessee under the terms of the operating leases. For the three months ended March 31, 2019, the operating lease cost was $11.8 million.

35

Notes to Financial Statements (Continued)

Accounts Payable, Accrued Expenses and Other Liabilities consist of the following:

	March 31, 2019		December 31, 2018
Amounts Payable to Carry Pool (1)	$	1,089,045	$	922,977
Unsettled Investment Purchases (2)	507,731		541,165
Securities Sold Short (3)	582,608		344,124
Derivative Liabilities	40,969		35,640
Accrued Compensation and Benefits	166,294		107,887
Interest Payable	216,348		212,969
Foreign Exchange Contracts and Options (4)	17,200		60,749
Accounts Payable and Accrued Expenses	108,170		130,554
Taxes Payable	55,355		24,453
Uncertain Tax Positions	67,374		66,775
Unfunded Revolver Commitments	56,792		52,066
Operating Lease Liabilities (5)	152,073		—
Other Liabilities	219,069		244,631
Total	$	3,279,028	$	2,743,990

(1) Represents the amount of carried interest payable to principals, professionals and other individuals with respect to KKR's active funds and co-investment vehicles that provide for carried interest.

(2) Represents amounts owed to third parties for investment purchases for which cash settlement has not occurred.

(3) 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 consolidated statements of operations. See Note 3 "Net Gains (Losses) from Investment Activities" for the net changes in fair value associated with these instruments.

(4) Represents derivative financial instruments used to manage foreign exchange risk arising from certain foreign currency 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 consolidated statements of operations. See Note 3 "Net Gains (Losses) from Investment Activities" for the net changes in fair value associated with these instruments.

(5) KKR’s operating leases have remaining lease terms that range from one year to 14 years, some of which include options to extend the leases for up to three years. For the three months ended March 31, 2019, the weighted average remaining lease term and weighted average discount rate were 4.78 years and 2.64%, respectively.

36

Notes to Financial Statements (Continued)

9. VARIABLE INTEREST ENTITIES

Consolidated VIEs

KKR consolidates certain VIEs in which it is determined that KKR is the primary beneficiary as described in Note 2 "Summary of Significant Accounting Policies" and which are predominately CFEs and certain investment funds. The primary purpose of these VIEs is to provide strategy specific investment opportunities to earn investment gains, current income or both in exchange for management and performance based fees or carried interest. KKR's investment strategies for these VIEs differ by product; however, the fundamental risks have similar characteristics, including loss of invested capital and loss of management and performance based fees or carried interest. KKR does not provide performance guarantees and has no other financial obligation to provide funding to these consolidated VIEs, beyond amounts previously committed, if any.

Unconsolidated VIEs

KKR holds variable interests in certain VIEs which are not consolidated as it has been determined that KKR is not the primary beneficiary. VIEs that are not consolidated predominantly include certain investment funds sponsored by KKR.

KKR's investment strategies differ by investment fund; however, the fundamental risks have similar characteristics, including loss of invested capital and loss of management and performance based fees or carried interest. KKR's maximum exposure to loss as a result of its investments in the unconsolidated investment funds is the carrying value of such investments, including KKR's capital interest and any unrealized carried interest. Accordingly, disaggregation of KKR's involvement by type of unconsolidated investment fund would not provide more useful information. For these unconsolidated investment funds in which KKR is the sponsor, KKR may have an obligation as general partner to provide commitments to such investment funds. As of March 31, 2019, KKR's commitments to these unconsolidated investment funds was $2.3 billion. KKR has not provided any financial support other than its obligated amount as of March 31, 2019.

As of March 31, 2019 and December 31, 2018, the maximum exposure to loss, before allocations to the carry pool and noncontrolling interests, if any, for those VIEs in which KKR is determined not to be the primary beneficiary but in which it has a variable interest is as follows:

	March 31, 2019		December 31, 2018
Investments	$	4,203,980	$	3,610,502
Due from (to) Affiliates, net	490,990		410,489
Maximum Exposure to Loss	$	4,694,970	$	4,020,991

37

Notes to Financial Statements (Continued)

10. DEBT OBLIGATIONS

KKR enters into credit agreements and issues debt for its general operating and investment purposes. KKR consolidates and reports debt obligations of KKR Financial Holdings LLC ("KFN"), which are non-recourse to KKR beyond the assets of KFN.

Certain of KKR's consolidated investment funds borrow to meet financing needs of their operating and investing activities. Fund financing facilities have been established for the benefit of certain investment funds. When an investment fund borrows from the facility in which it participates, the proceeds from the borrowings are limited for their intended use by the borrowing investment fund. KKR's obligations with respect to these financing arrangements are generally limited to KKR's pro rata equity interest in such investment funds.

In certain other cases, KKR has majority-owned investment vehicles that make investments and purchase other assets with borrowings that are collateralized only by the investments and assets they own.

In addition, consolidated CFE vehicles issue debt securities to third-party investors which are collateralized by assets held by the CFE vehicle. Debt securities issued by CFEs are supported solely by the assets held at the CFEs and are not collateralized by assets of any other KKR entity. CFEs also may have warehouse facilities with banks to provide liquidity to the CFE. The CFE's debt obligations are non-recourse to KKR beyond the assets of the CFE.

KKR's borrowings consisted of the following:

	March 31, 2019							December 31, 2018
	Financing Available		Borrowing Outstanding		Fair Value			Financing Available		Borrowing Outstanding		Fair Value
Revolving Credit Facilities:
Corporate Credit Agreement	$	1,000,000	$	—	$	—		$	1,000,000	$	—	$	—
KCM Credit Agreement	434,395		—		—			451,338		—		—
KCM Short-Term Credit Agreement	750,000		—		—			750,000		—		—
Notes Issued:
KKR Issued 6.375% Notes Due 2020 (1)	—		499,122		523,900		(14)	—		498,975		523,500		(14)
KKR Issued 5.500% Notes Due 2043 (2)	—		491,921		537,235		(14)	—		491,836		508,615		(14)
KKR Issued 5.125% Notes Due 2044 (3)	—		990,831		1,030,140		(14)	—		990,740		974,320		(14)
KKR Issued 0.509% Notes Due 2023 (4)	—		224,386		223,695		(14)	—		226,895		227,298		(14)
KKR Issued 0.764% Notes Due 2025 (5)	—		44,435		45,402		(14)	—		44,923		45,161		(14)
KKR Issued 1.595% Notes Due 2038 (6)	—		91,767		96,510		(14)	—		92,817		94,568		(14)
KFN Issued 5.500% Notes Due 2032 (7)	—		493,689		502,524			—		493,568		496,359
KFN Issued 5.200% Notes Due 2033 (8)	—		118,321		117,152			—		118,291		115,582
KFN Issued 5.400% Notes Due 2033 (9)	—		68,705		69,689			—		68,683		68,780
KFN Issued Junior Subordinated Notes (10)	—		232,471		197,478			—		232,142		203,135
Other Debt Obligations:
Financing Facilities of Consolidated Funds and Other (11)	4,216,970		4,534,329		4,534,329			3,840,877		5,123,768		5,123,768
CLO Senior Secured Notes (12)	—		12,155,621		12,155,621			—		11,667,970		11,667,970
CLO Subordinated Notes (12)	—		402,200		402,200			—		413,801		413,801
CMBS Debt Obligations (13)	—		1,914,571		1,914,571			—		1,876,783		1,876,783
	$	6,401,365	$	22,262,369	$	22,350,446		$	6,042,215	$	22,341,192	$	22,339,640

(1) $500 million aggregate principal amount of 6.375% senior notes of KKR due 2020. Borrowing outstanding is presented net of (i) unamortized note discount and (ii) unamortized debt issuance costs of $0.6 millionand $0.7 million as of March 31, 2019 and December 31, 2018, respectively.

(2) $500 million aggregate principal amount of 5.500% senior notes of KKR due 2043. Borrowing outstanding is presented net of (i) unamortized note discount and (ii) unamortized debt issuance costs of $3.5 millionand $3.6 million as of March 31, 2019 and December 31, 2018, respectively.

(3) $1.0 billion aggregate principal amount of 5.125% senior notes of KKR due 2044. Borrowing outstanding is presented net of (i) unamortized note discount (net of premium) and (ii) unamortized debt issuance costs of $7.9 million and $8.0 million as of March 31, 2019 and December 31, 2018, respectively.

(4) ¥25 billion (or $225.6 million) aggregate principal amount of 0.509% senior notes of KKR due 2023. Borrowing outstanding is presented net of unamortized debt issuance costs of $1.2 million and $1.3 million as of March 31, 2019 and December 31, 2018, respectively. These senior notes are denominated in Japanese Yen ("JPY").

38

Notes to Financial Statements (Continued)

(5) ¥5.0 billion (or $45.1 million) aggregate principal amount of 0.764% senior notes of KKR due 2025. Borrowing outstanding is presented net of unamortized debt issuance costs of $0.7 million and $0.7 million as of March 31, 2019 and December 31, 2018, respectively. These senior notes are denominated in JPY.

(6) ¥10.3 billion (or $92.9 million) aggregate principal amount of 1.595% senior notes of KKR due 2038. Borrowing outstanding is presented net of unamortized debt issuance costs of $1.2 million and $1.2 million as of March 31, 2019 and December 31, 2018, respectively. These senior notes are denominated in JPY.

(7) KKR consolidates KFN and thus reports KFN's outstanding $500.0 million aggregate principal amount of 5.500% senior notes due 2032. Borrowing outstanding is presented net of (i) unamortized note discount and (ii) unamortized debt issuance costs of $4.3 million and $4.4 million as of March 31, 2019 and December 31, 2018, respectively. These debt obligations are classified as Level III within the fair value hierarchy and valued using the same valuation methodologies as KKR's Level III credit investments.

(8) KKR consolidates KFN and thus reports KFN's outstanding $120.0 million aggregate principal amount of 5.200% senior notes due 2033. Borrowing outstanding is presented net of unamortized debt issuance costs of $1.7 million and $1.7 million as of March 31, 2019 and December 31, 2018, respectively. These debt obligations are classified as Level III within the fair value hierarchy and valued using the same valuation methodologies as KKR's Level III credit investments.

(9) KKR consolidates KFN and thus reports KFN's outstanding $70.0 million aggregate principal amount of 5.400% senior notes due 2033. Borrowing outstanding is presented net of unamortized debt issuance costs of $1.3 million and $1.3 million as of March 31, 2019 and December 31, 2018, respectively. These debt obligations are classified as Level III within the fair value hierarchy and valued using the same valuation methodologies as KKR's Level III credit investments.

(10) KKR consolidates KFN and thus reports KFN's outstanding $258.5 million aggregate principal amount of junior subordinated notes. The weighted average interest rate is 5.2% and 5.0% and the weighted average years to maturity is 17.5 years and 17.8 years as of March 31, 2019 and December 31, 2018, respectively. These debt obligations are classified as Level III within the fair value hierarchy and valued using the same valuation methodologies as KKR's Level III credit investments.

(11) Amounts include (i) borrowings at consolidated investment funds relating to financing arrangements with major financial institutions, generally to enable such investment funds to make investments prior to or without receiving capital from fund limited partners and (ii) borrowings by certain majority-owned investment vehicles that are collateralized only by the investments and assets they own. The weighted average interest rate is 4.9% and 4.6% as of March 31, 2019 and December 31, 2018, respectively. In addition, the weighted average years to maturity is 3.6 years and 3.3 years as of March 31, 2019 and December 31, 2018, respectively.

(12) CLO debt obligations are carried at fair value and are classified as Level II within the fair value hierarchy. See Note 5 "Fair Value Measurements."

(13) CMBS debt obligations are carried at fair value and are classified as Level III within the fair value hierarchy. See Note 5 "Fair Value Measurements."

(14) The notes are classified as Level II within the fair value hierarchy and fair value is determined by third party broker quotes.

Revolving Credit Facilities

KCM Credit Agreement

KKR Capital Markets maintains a revolving credit agreement with a major financial institution (the "KCM Credit Agreement") for use in KKR's capital markets business, which provides for revolving borrowings of up to $500 million with a $500 million sublimit for letters of credit. As of March 31, 2019 and December 31, 2018, no amounts were outstanding under the KCM Credit Agreement, however various letters of credit were outstanding in the amount of $65.6 million and $48.7 million, respectively, which reduce the overall borrowing capacity of the KCM Credit Agreement.

Other Debt Obligations

Debt Obligations of Consolidated CFEs

As of March 31, 2019, debt obligations of consolidated CFEs consisted of the following:     

	Borrowing Outstanding		Weighted Average Interest Rate		Weighted Average Remaining Maturity in Years
Senior Secured Notes of Consolidated CLOs	$	12,155,621	3.4	%	11.5
Subordinated Notes of Consolidated CLOs	402,200		(1)		11.7
Debt Obligations of Consolidated CMBS Vehicles	1,914,571		4.0	%	24.5
	$	14,472,392

(1) The subordinated notes do not have contractual interest rates but instead receive a pro rata amount of the net distributions from the excess cash flows of the respective CLO vehicle. Accordingly, weighted average borrowing rates for the subordinated notes are based on cash distributions during the period, if any.

Debt obligations of consolidated CFEs are collateralized by assets held by each respective CFE vehicle and assets of one CFE vehicle may not be used to satisfy the liabilities of another. As of March 31, 2019, the fair value of the consolidated CFE assets was $15.8 billion. This collateral consisted of Cash and Cash Equivalents Held at Consolidated Entities, Investments, and Other Assets.

39

Notes to Financial Statements (Continued)

Debt Covenants

Borrowings of KKR contain various debt covenants. These covenants do not, in management's opinion, materially restrict KKR's operating business or investment strategies as of March 31, 2019. KKR is in compliance with its debt covenants in all material respects as of March 31, 2019.

11. INCOME TAXES

KKR & Co. Inc. is a corporation for U.S. federal income tax purposes and thus is subject to U.S. federal, state and local corporate income taxes at the entity level on KKR’s share of net taxable income. In addition, the KKR Group Partnerships and certain of their subsidiaries operate in the United States as partnerships for U.S. federal income tax purposes and as corporate entities in certain non-U.S. jurisdictions. These entities, in some cases, are subject to U.S. state or local income taxes or non-U.S. income taxes.

The Conversion resulted in KKR obtaining a partial step-up in the tax basis of certain assets that will be recovered as those assets are sold or the basis is amortized. KKR's overall tax provision is based on, among other things, the amount of such partial step-up in tax basis that is derived from an analysis of the basis of its former unitholders in their ownership of KKR common units at June 30, 2018. On the date of the Conversion, based on the information available to KKR at that time, KKR recorded an estimated net tax benefit and estimated net deferred tax asset of $257.1 million relating to this partial step-up in tax basis. Upon analysis of the basis of KKR's former unitholders in their ownership of KKR common units at June 30, 2018, based on the additional information made available to KKR after December 31, 2018, the final determination of the amount of partial step-up in tax basisresulted in an additional tax benefit of approximately $45.0 million.

The effective tax rates were 9.34% and 2.84% for the three months ended March 31, 2019 and 2018, respectively. The effective tax rate differs from the statutory rate primarily due to the following: (i) a substantial portion of the reported net income (loss) before taxes is not attributable to KKR but rather is attributable to noncontrolling interests held in KKR’s consolidated entities by KKR Holdings or by third parties, and (ii) the tax benefit recognized as a result of the final determination of the amount of the partial step-up in tax basis as a result of the Conversion. For periods prior to the Conversion, the effective rate also differs from the statutory rate as a result of investment income of certain entities and net carried interest of certain general partners of KKR investment funds that were not subject to U.S. federal income taxes prior to the Conversion.

During the three months ended March 31, 2019, there were no material changes to KKR’s uncertain tax positions and KKR believes there will be no significant increase or decrease to the uncertain tax positions within 12 months of the reporting date.

40

Notes to Financial Statements (Continued)

12. EQUITY BASED COMPENSATION

The following table summarizes the expense associated with equity-based compensation for the three months ended March 31, 2019 and 2018, respectively.

	Three Months Ended March 31,
	2019		2018
Equity Incentive Plans	$	54,885	$	67,796
KKR Holdings Principal Awards	23,666		27,282
Total (1)	$	78,551	$	95,078

(1) Includes $(0.3) million and $4.3 million of equity based compensation for the three months endedMarch 31, 2019 and 2018 related to employees of equity method investees. Such amounts are included in Net Gains (Losses) from Investment Activities in the consolidated statements of operations.

Equity Incentive Plans

On March 29, 2019, the 2019 Equity Incentive Plan became effective. Following the effectiveness of the 2019 Equity Incentive Plan, KKR will not make any further grants under the 2010 Equity Incentive Plan, and the 2019 New Equity Incentive Plan became KKR's only plan for providing new equity-based awards. Outstanding awards under the 2010 Equity Incentive Plan will remain outstanding, unchanged and subject to the terms of the 2010 Equity Incentive Plan and their respective equity award agreements, until the vesting, expiration or lapse of such awards in accordance with their terms. There are no significant differences in the expense recognition between the 2010 Equity Incentive Plan and the 2019 New Equity Incentive Plan.  

Under the 2019 Equity Incentive Plan, KKR is permitted to grant equity awards representing ownership interests in KKR & Co. Inc. Class A common stock. The total number of shares of Class A common stock that may be issued under the 2019 Equity Incentive Plan is equivalent to 15% of the aggregate number of the shares of Class A common stock and KKR Group Partnership Units (excluding KKR Group Partnership Units held by KKR & Co. Inc. or its wholly-owned subsidiaries), subject to annual adjustment. Vested awards under the Equity Incentive Plans dilute KKR & Co. Inc. common stockholders and KKR Holdings pro rata in accordance with their respective percentage interests in the KKR Group Partnerships.

Equity awards have been granted under the Equity Incentive Plans and are generally subject to service-based vesting, typically over a three to five year period from the date of grant. In certain cases, these awards are subject to transfer restrictions and/or minimum retained ownership requirements. The transfer restriction period, if applicable, lasts for (i) one year with respect to one-half of the interests vesting on any vesting date and (ii) two years with respect to the other one-half of the interests vesting on such vesting date. While providing services to KKR, if applicable, certain of these awards are also subject to minimum retained ownership rules requiring the award recipient to continuously hold shares of Class A common stock equivalents equal to at least 15% of their cumulatively vested awards that have the minimum retained ownership requirement.

Expense associated with the vesting of these awards is based on the closing price of the KKR & Co. Inc. Class A common stock on the date of grant, discounted for the lack of participation rights in the expected dividends on unvested shares. The discount range for awards granted prior to December 31, 2015 was based on management's estimates of future dividends that the unvested equity awards would not be entitled to receive between the grant date and the vesting date which ranged from 8% to 56%.

The following table presents information regarding the discount for the lack of participation rights in the expected dividends for shares granted subsequent to December 31, 2015:

Date of Grant	Discount per share (1)
January 1, 2016 to December 31, 2016	$	0.64
January 1, 2017 to December 31, 2017	$	0.68
January 1, 2018 to June 30, 2018	$	0.68
July 1, 2018 to Present	$	0.50

(1) Represents the annual discount for the lack of participation rights on expected dividends. The total discount on any given tranche of unvested shares is calculated as the discount per share multiplied by the number of years in the applicable vesting period.

41

Notes to Financial Statements (Continued)

Expense is recognized on a straight line basis over the life of the award and assumes a forfeiture rate of up to 7% annually based upon expected turnover by class of recipient.

Market Condition Awards

On November 2, 2017, KKR's Co-Presidents and Co-Chief Operating Officers were each granted equity awards representing 2.5 million shares of KKR Class A common stock subject to a market price-based vesting condition ("Market Condition Awards"). These awards were granted under the 2010 Equity Incentive Plan. All of such awards will vest upon the market price of KKR Class A common stock reaching and maintaining a closing market price of $40 per share for 10 consecutive trading days on or prior to December 31, 2022, subject to the employee's continued service to the time of such vesting. If the $40 price target is not achieved by the close of business on December 31, 2022, the unvested Market Condition Awards will be automatically canceled and forfeited. These Market Condition Awards are subject to additional transfer restrictions and minimum retained ownership requirements after vesting. Due to the existence of the market condition, the vesting period for the Market Condition Awards is not explicit, and as such, compensation expense will be recognized over the period derived from the valuation technique used to estimate the grant-date fair value of the award (the "Derived Vesting Period").

The fair value of the Market Condition Awards at the date of grant was $4.02 per share based on a Monte-Carlo simulation valuation model due to the existence of the market condition described above. Below is a summary of the significant assumptions used to estimate the grant date fair value of the Market Condition Awards:

Closing KKR share price as of valuation date	$19.90
Risk Free Rate	2.02	%
Volatility	25.00	%
Dividend Yield	3.42	%
Expected Cost of Equity	11.02	%

In addition, the grant date fair value assumes that holders of the Market Condition Awards will not participate in dividends until such awards have met their vesting requirements.

Compensation expense is recognized over the Derived Vesting Period, which was estimated to be 3 years from the date of grant, on a straight-line basis.

As of March 31, 2019, there was approximately $10.7 million of estimated unrecognized compensation expense related to unvested Market Condition Awards and such awards did not meet their market-price based vesting condition.

As of March 31, 2019, there was approximately $340.4 million of total estimated unrecognized expense related to unvested awards, including Market Condition Awards. That cost is expected to be recognized as follows:

Year	Unrecognized Expense  (in millions)
Remainder of 2019	$	132.8
2020	131.8
2021	58.5
2022	16.4
2023	0.9
Total	$	340.4

42

Notes to Financial Statements (Continued)

A summary of the status of unvested awards granted under the Equity Incentive Plans, excluding Market Condition Awards as described above, from January 1, 2019 through March 31, 2019 is presented below:

	Shares		Weighted Average Grant Date Fair Value
Balance, January 1, 2019	33,400,183		$	16.23
Granted	50,511		18.96
Vested	(15,440	)	15.83
Forfeitures	(604,519	)	17.43
Balance, March 31, 2019	32,830,735		$	16.21

The weighted average remaining vesting period over which unvested awards are expected to vest is 1.1 years.

A summary of the remaining vesting tranches of awards granted under the Equity Incentive Plans is presented below:

Vesting Date	Shares
April 1, 2019	8,917,856
October 1, 2019	4,733,416
April 1, 2020	7,135,649
October 1, 2020	3,607,073
April 1, 2021	4,093,420
October 1, 2021	2,134,028
April 1, 2022	916,731
October 1, 2022	1,201,390
October 1, 2023	91,172
	32,830,735

KKR Holdings Awards

KKR Holdings units are exchangeable for KKR Group Partnership Units and allow for their exchange into Class A common stock of KKR & Co. Inc. on a one-for-one basis. As of March 31, 2019 and 2018, KKR Holdings owned approximately 35.9% or 298,645,285 units and 40.5% or 333,648,078 units, respectively, of outstanding KKR Group Partnership Units. Awards for KKR Holdings units that have been granted are generally subject to service based vesting, typically over a three to five year period from the date of grant. They are also generally subject to transfer restrictions which last for (i) one year with respect to one-half of the interests vesting on any vesting date and (ii) two years with respect to the other one-half of the interests vesting on such vesting date. While providing services to KKR, the recipients are also subject to minimum retained ownership rules requiring them to continuously hold 25% of their vested interests. Upon separation from KKR, award recipients are subject to the terms of a confidentiality and restrictive covenants agreement that would require the forfeiture of certain vested and unvested units should the terms of the agreement be violated. Holders of KKR Holdings units are not entitled to participate in distributions made on KKR Group Partnership Units underlying their KKR Holdings units until such units are vested. All of the KKR Holdings units (except for less than 0.6% of the outstanding KKR Holdings units) have been granted as of March 31, 2019, and certain Holdings units remain subject to vesting.

The fair value of awards granted out of KKR Holdings is generally based on the closing price of KKR & Co. Inc. Class A common stock on the date of grant discounted for the lack of participation rights in the expected distributions on unvested units. KKR determined this to be the best evidence of fair value as KKR & Co. Inc. Class A common stock is traded in an active market and has an observable market price. Additionally, a KKR Holdings unit is an instrument with terms and conditions similar to those of KKR & Co. Inc. Class A common stock. Specifically, units in KKR Holdings and shares of KKR & Co. Inc. represent ownership interests in KKR Group Partnership Units and, subject to any vesting, minimum retained ownership requirements and transfer restrictions, each KKR Holdings unit is exchangeable into a KKR Group Partnership Unit and then into a share of KKR & Co. Inc. Class A common stock on a one-for-one basis.

In February 2016, approximately 28.9 million KKR Holdings units were granted that were originally subject to market condition and service-based vesting that were subsequently modified in November 2016 to eliminate the market condition vesting and instead require only service-based vesting in equal annual installments over a five year period. At the date of

43

Notes to Financial Statements (Continued)

modification, total future compensation expense amounted to $320.9 million, net of estimated forfeitures, to be recognized over the remaining vesting period of the modified awards.

The awards described above were granted from outstanding but previously unallocated units of KKR Holdings, and consequently these grants did not increase the number of KKR Holdings units outstanding or outstanding KKR & Co. Inc. Class A common stock on a fully-diluted basis. If and when vested, these awards will not dilute KKR's respective ownership interests in the KKR Group Partnerships.

KKR Holdings Awards give rise to equity-based compensation in the consolidated statements of operations based on the grant-date fair value of the award discounted for the lack of participation rights in the expected distributions on unvested units. This discount is consistent with that noted above for shares issued under the Equity Incentive Plans.

Expense is recognized on a straight line basis over the life of the award and assumes a forfeiture rate of up to 7% annually based on expected turnover by class of recipient.

As of March 31, 2019, there was approximately $230.3 million of estimated unrecognized expense related to unvested KKR Holdings awards. That cost is expected to be recognized as follows:

Year	Unrecognized Expense  (in millions)
Remainder of 2019	$	70.7
2020	86.9
2021	47.2
2022	25.5
Total	$	230.3

A summary of the status of unvested awards granted under the KKR Holdings Plan from January 1, 2019 through March 31, 2019 is presented below:

	Units		Weighted Average Grant Date Fair Value
Balance, January 1, 2019	24,123,993		$	14.42
Granted	—		—
Vested	—		—
Forfeitures	(270,000	)	16.28
Balance, March 31, 2019	23,853,993		$	14.40

The weighted average remaining vesting period over which unvested awards are expected to vest is 1.7 years.

A summary of the remaining vesting tranches of awards granted under the KKR Holdings Plan is presented below:

Vesting Date	Units
April 1, 2019	229,514
May 1, 2019	3,590,000
October 1, 2019	2,455,000
April 1, 2020	124,479
May 1, 2020	3,590,000
October 1, 2020	2,940,000
May 1, 2021	3,590,000
October 1, 2021	3,425,000
October 1, 2022	3,910,000
	23,853,993

44

Notes to Financial Statements (Continued)

13. RELATED PARTY TRANSACTIONS

Due from Affiliates consists of:

	March 31, 2019		December 31, 2018
Amounts due from portfolio companies	$	93,855	$	82,204
Amounts due from unconsolidated investment funds	637,501		568,211
Amounts due from related entities	2,839		6,774
Due from Affiliates	$	734,195	$	657,189

Due to Affiliates consists of:

	March 31, 2019		December 31, 2018
Amounts due to KKR Holdings in connection with the tax receivable agreement	$	108,270	$	117,862
Amounts due to unconsolidated investment funds	146,511		157,722
Due to Affiliates	$	254,781	$	275,584

14. SEGMENT REPORTING

KKR operates through one operating and reportable segment. This single reportable segment reflects how the chief operating decision makers allocate resources and assess performance under KKR's "one-firm approach," which includes operating collaboratively across business lines, with predominantly a single expense pool.

KKR’s segment reporting is presented prior to giving effect to the allocation of income (loss) between KKR & Co. Inc. and KKR Holdings L.P. and as such represents the business in total. In addition, KKR’s segment reporting is presented without giving effect to the consolidation of the investment funds and CFEs that KKR manages as well as other consolidated entities that are not subsidiaries of KKR & Co. Inc. The segment measures used in KKR’s segment reporting, including segment revenues, segment expenses, after-tax distributable earnings, segment assets, segment liabilities, and segment book value are used by management in making operational and resource deployment decisions as well as assessing the overall performance of KKR’s business.

After-tax Distributable Earnings

After-tax distributable earnings is a performance measure of KKR’s earnings on a segment basis excluding mark-to-market gains (losses). Starting with the second quarter of 2018, it is defined as the amount of net realized earnings of KKR for a given reporting period, after deducting equity-based compensation. KKR revised the definition of after-tax distributable earnings starting in the second quarter of 2018, because it reflects how the chief operating decision makers allocate resources and assess the performance of KKR’s business. KKR believes that after-tax distributable earnings is useful to stockholders as it aligns KKR’s net realization performance with the manner in which KKR receives its revenues and determines the compensation of its employees. After-tax distributable earnings does not represent and is not used to calculate actual dividends under KKR’s dividend policy. Historically, equity-based compensation expense relating to the Equity Incentive Plans was not reflected in our calculation of after-tax distributable earnings. Under KKR’s segment presentation, equity-based compensation expense is included in after-tax distributable earnings as a component of compensation expense in order to reflect the dilutive nature of these non-cash equity-based awards. For comparability, after-tax distributable earnings for the comparable prior periods have been calculated using this definition.

45

Notes to Financial Statements (Continued)

The following table sets forth information regarding KKR's segment results:

	As of and for the Three Months Ended
	March 31, 2019			March 31, 2018
Segment Revenues
Fees and Other, Net
Management Fees	$	292,296		$	251,585
Transaction Fees	186,727			156,845
Monitoring Fees	25,651			17,530
Fee Credits	(107,416		)	(43,774		)
Total Fees and Other, Net	397,258			382,186
Realized Performance Income (Loss)
Carried Interest	330,345			202,555
Incentive Fees	19,537			16,407
Total Realized Performance Income (Loss)	349,882			218,962
Realized Investment Income (Loss)
Net Realized Gains (Losses)	44,712			7,875
Interest Income and Dividends	58,207			72,577
Total Realized Investment Income (Loss)	102,919			80,452
Total Segment Revenues	$	850,059		$	681,600
Segment Expenses
Compensation and Benefits (1)	340,286			300,480
Occupancy and Related Charges	13,957			13,583
Other Operating Expenses	74,910			57,905
Total Segment Expenses	$	429,153		$	371,968
Segment Operating Earnings	420,906			309,632
Interest Expense	44,130			50,192
Preferred Dividends	8,341			8,341
Income (Loss) Attributable to Noncontrolling Interests	359			1,203
Income Taxes Paid	53,993			14,168
After-tax Distributable Earnings	$	314,083		$	235,728
Segment Assets	$	18,770,564		$	16,243,603
Segment Liabilities	$	4,100,354		$	3,736,797
Segment Book Value	$	14,148,206		$	11,983,289

(1) Includes equity-based compensation of $54.9 million and $67.8 million for the three months endedMarch 31, 2019 and 2018, respectively.

46

Notes to Financial Statements (Continued)

KKR's business lines are differentiated primarily by their business objectives, investment strategies and sources of revenue, and are summarized below.

Through KKR's Private Markets business line, KKR manages and sponsors private equity funds and co-investment vehicles, which invest capital for long-term appreciation, either through controlling ownership of a company or strategic minority positions. In addition to its traditional private equity funds, KKR sponsors investment funds that invest in growth equity and core investments. KKR also manages and sponsors investment funds and co-investment vehicles that invest capital in real assets, such as infrastructure, energy, and real estate.

Through KKR's Public Markets business line, KKR operates its combined credit and hedge funds platforms. KKR's credit platform invests capital in leveraged credit strategies, including leveraged loans, high-yield bonds, opportunistic credit, and revolving credit strategies, and alternative credit strategies including special situations and private credit opportunities, such as direct lending and private opportunistic credit investment strategies. KKR's hedge funds platform consists of hedge fund partnerships with third-party hedge fund managers in which KKR owns a minority stake.

KKR's Capital Markets business line supports the firm, portfolio companies, and third-party clients by developing and implementing both traditional and non-traditional capital solutions for investments or companies seeking financing. These services include arranging debt and equity financing, placing and underwriting securities offerings and providing other types of capital markets services.

Through KKR's Principal Activities business line, KKR manages the firm's assets and deploys capital to support and grow its business lines including making capital commitments as general partner to its funds, to seed new business strategies or investments for new funds or to bridge capital selectively for its funds' investments. The Principal Activities business line also provides the required capital to fund the various commitments of KKR's Capital Markets business line or to meet regulatory capital requirements.

47

Notes to Financial Statements (Continued)

The following tables provide KKR's segment revenues on a disaggregated basis by business line:

	Three Months Ended March 31, 2019
	Private Markets			Public Markets			Capital Markets		Principal Activities		Total
Fees and Other, Net
Management Fees	$	183,221		$	109,075		$	—	$	—	$	292,296
Transaction Fees	99,017			27,456			60,254		—		186,727
Monitoring Fees	25,651			—			—		—		25,651
Fee Credits	(82,342		)	(25,074		)	—		—		(107,416		)
Total Fees and Other, Net	225,547			111,457			60,254		—		397,258
Realized Performance Income (Loss)
Carried Interest	330,345			—			—		—		330,345
Incentive Fees	675			18,862			—		—		19,537
Total Realized Performance Income (Loss)	331,020			18,862			—		—		349,882
Realized Investment Income (Loss)
Net Realized Gains (Losses)	—			—			—		44,712		44,712
Interest Income and Dividends	—			—			—		58,207		58,207
Total Realized Investment Income (Loss)	—			—			—		102,919		102,919
Total	$	556,567		$	130,319		$	60,254	$	102,919	$	850,059

	Three Months Ended March 31, 2018
	Private Markets			Public Markets			Capital Markets		Principal Activities		Total
Fees and Other, Net
Management Fees	$	158,190		$	93,395		$	—	$	—	$	251,585
Transaction Fees	46,689			2,558			107,598		—		156,845
Monitoring Fees	17,530			—			—		—		17,530
Fee Credits	(41,343		)	(2,431		)	—		—		(43,774		)
Total Fees and Other, Net	181,066			93,522			107,598		—		382,186
Realized Performance Income (Loss)
Carried Interest	202,555			—			—		—		202,555
Incentive Fees	—			16,407			—		—		16,407
Total Realized Performance Income (Loss)	202,555			16,407			—		—		218,962
Realized Investment Income (Loss)
Net Realized Gains (Losses)	—			—			—		7,875		7,875
Interest Income and Dividends	—			—			—		72,577		72,577
Total Realized Investment Income (Loss)	—			—			—		80,452		80,452
Total	$	383,621		$	109,929		$	107,598	$	80,452	$	681,600

48

Notes to Financial Statements (Continued)

The following tables reconcile the most directly comparable financial measures calculated and presented in accordance with GAAP to KKR's segment information:

Revenues

	Three Months Ended
	March 31, 2019		March 31, 2018
Total GAAP Revenues	$	1,187,480	$	472,606
Add: Management Fees - Consolidated Funds and Other	121,949		64,596
Deduct: Fee Credits - Consolidated Funds	3,939		14,721
Deduct: Capital Allocation-Based Income (GAAP)	814,932		78,212
Add: Segment Realized Carried Interest	330,345		202,555
Add: Segment Realized Investment Income (Loss)	102,919		80,452
Deduct: Revenue Earned by Other Consolidated Entities	29,703		25,465
Deduct: Expense Reimbursements	44,060		20,211
Total Segment Revenues	$	850,059	$	681,600

Expenses

	Three Months Ended
	March 31, 2019			March 31, 2018
Total GAAP Expenses	$	728,767		$	436,601
Deduct: Equity-based and Other Compensation - KKR Holdings L.P.	23,743			32,695
Deduct: Segment Unrealized Performance Income Compensation	159,880			(43,123		)
Deduct: Amortization of Intangibles	535			5,030
Deduct: Reimbursable Expenses	52,032			26,093
Deduct: Operating Expenses relating to Other Consolidated Entities	51,818			44,309
Add: Other	(11,606		)	371
Total Segment Expenses	$	429,153		$	371,968

Net Income (Loss) Attributable to KKR & Co. Inc. Class A Common Stockholders

	Three Months Ended
	March 31, 2019		March 31, 2018
GAAP Net Income (Loss) Attributable to KKR & Co. Inc. Class A Common Stockholders	$	700,978	$	170,102
Add: Net Income (Loss) Attributable to Noncontrolling Interests held by KKR Holdings L.P.	481,368		121,002
Add: Equity-based and Other Compensation - KKR Holdings L.P.	23,118		32,695
Add: Amortization of Intangibles and Other, net	56,153		47,709
Deduct: Unrealized Carried Interest	401,612		(111,732		)
Deduct: Net Unrealized Gains (Losses)	819,402		207,862
Add: Unrealized Performance Income Compensation	159,880		(43,123		)
Add: Income Tax Provision	167,593		17,641
Deduct: Income Taxes Paid	53,993		14,168
After-tax Distributable Earnings	$	314,083	$	235,728

49

Notes to Financial Statements (Continued)

The items that reconcile KKR's reportable segment income (loss) attributable to noncontrolling interests to the corresponding consolidated amounts calculated and presented in accordance with GAAP for net income (loss) attributable to redeemable noncontrolling interests and income (loss) attributable to noncontrolling interests are primarily attributable to the impact of KKR Holdings L.P., KKR's consolidated funds, and certain other consolidated entities.

Assets

	As of March 31,
	2019			2018
GAAP Assets	$	52,004,019		$	47,579,153
Impact of Consolidation of Investment Vehicles and Other Entities	(31,561,635		)	(29,972,064		)
Carry Pool Reclassification	(1,089,045		)	(1,176,070		)
Other Reclassifications	(582,775		)	—
Impact of KKR Management Holdings Corp.	—			(187,416		)
Segment Assets (1)	$	18,770,564		$	16,243,603

Liabilities

	As of March 31,
	2019			2018
GAAP Liabilities	$	25,796,178		$	25,810,215
Impact of Consolidation of Investment Vehicles and Other Entities	(20,024,004		)	(20,775,320		)
Carry Pool Reclassification	(1,089,045		)	(1,176,070		)
Other Reclassifications	(582,775		)	—
Impact of KKR Management Holdings Corp.	—			(122,028		)
Segment Liabilities (1)	$	4,100,354		$	3,736,797

Stockholders' Equity

	As of March 31,
	2019			2018
KKR & Co. Inc. Stockholders' Equity - Common Stockholders	$	8,839,817		$	6,918,185
Impact of Consolidation of Investment Vehicles and Other Entities	246,793			254,777
Other Reclassifications	(17,446		)	(17,446		)
Noncontrolling Interests Held by KKR Holdings L.P.	5,079,042			4,893,161
Impact of KKR Management Holdings Corp.	—			(65,388		)
Segment Book Value (1)	$	14,148,206		$	11,983,289

(1) As of March 31, 2019, KKR's segment assets, liabilities, and book value reflect KKR's tax assets and liabilities prepared under GAAP.

50

Notes to Financial Statements (Continued)

15. EQUITY

Share Repurchase Program

KKR increased the available amount under its repurchase program to $500 million, which may be used for the repurchase of its shares of Class A common stock of KKR & Co. Inc. and retirement of equity awards issued pursuant to the Equity Incentive Plans. Under this repurchase program, shares of Class A common stock of KKR & Co. Inc. may be repurchased from time to time in open market transactions, in privately negotiated transactions or otherwise. The timing, manner, price and amount of any repurchases will be determined by KKR in its discretion and will depend on a variety of factors, including legal requirements, price and economic and market conditions. KKR expects that the program, which has no expiration date, will be in effect until the maximum approved dollar amount has been used. The program does not require KKR to repurchase any specific number of shares of Class A common stock of KKR & Co. Inc., and the program may be suspended, extended, modified or discontinued at any time. During the three months ended March 31, 2019, approximately 1.4 million shares of Class A common stock were repurchased pursuant to this program. There were no shares of Class A common stock repurchased pursuant to this program during the three months ended March 31, 2018. During the three months ended March 31, 2019 and 2018, no equity awards were retired pursuant to this program.

Noncontrolling Interests

Noncontrolling interests represent (i) noncontrolling interests in consolidated entities and (ii) noncontrolling interests held by KKR Holdings.

Noncontrolling Interests in Consolidated Entities

Noncontrolling interests in consolidated entities represent the non-redeemable ownership interests in KKR that are held primarily by:

(i) third party fund investors in KKR's consolidated funds and certain other entities;

(ii) third parties entitled to up to 1% of the carried interest received by certain general partners of KKR's funds that have made investments on or prior to December 31, 2015;

(iii) certain former principals and their designees representing a portion of the carried interest received by the general partners of KKR's private equity funds that was allocated to them with respect to private equity investments made during such former principals' tenure with KKR prior to October 1, 2009;

(iv) certain principals and former principals representing all of the capital invested by or on behalf of the general partners of KKR's private equity funds prior to October 1, 2009 and any returns thereon; and

(v) third parties in KKR's capital markets business line.

Noncontrolling Interests held by KKR Holdings

Noncontrolling interests held by KKR Holdings include economic interests held by principals indirectly in the KKR Group Partnership Units. Such principals receive financial benefits from KKR's business in the form of distributions received from KKR Holdings and through their direct and indirect participation in the value of KKR Group Partnership Units held by KKR Holdings. These financial benefits are not paid by KKR & Co. Inc. and are borne by KKR Holdings.

51

Notes to Financial Statements (Continued)

The following table presents the calculation of total noncontrolling interests:

	Three Months Ended March 31, 2019
	Noncontrolling Interests in Consolidated Entities			Noncontrolling Interests Held by KKR Holdings			Total Noncontrolling Interests
Balance at the beginning of the period	$	10,984,910		$	4,625,448		$	15,610,358
Net income (loss) attributable to noncontrolling interests (1)	436,359			481,368			917,727
Other comprehensive income (loss), net of tax (2)	2,511			121			2,632
Exchange of KKR Holdings Units to Class A Common Stock (3)	—			(7,094		)	(7,094		)
Equity-based and other non-cash compensation	—			23,118			23,118
Capital contributions	1,194,792			23			1,194,815
Capital distributions	(812,144		)	(43,942		)	(856,086		)
Balance at the end of the period	$	11,806,428		$	5,079,042		$	16,885,470

(1) Refer to the table below for calculation of net income (loss) attributable to noncontrolling interests held by KKR Holdings.

(2) With respect to noncontrolling interests held by KKR Holdings, calculated on a pro rata basis based on the weighted average KKR Group Partnership Units held by KKR Holdings during the reporting period. 

(3) Calculated based on the proportion of KKR Holdings units exchanged for KKR & Co. Inc. Class A common stock during the reporting period. The exchange agreement with KKR Holdings provides for the exchange of KKR Group Partnership Units held by KKR Holdings for KKR & Co. Inc. Class A common stock.

Net income (loss) attributable to each of KKR & Co. Inc. Class A common stockholders and KKR Holdings, with the exception of certain tax assets and liabilities that are directly allocable to KKR & Co. Inc., is attributed based on the percentage of the weighted average KKR Group Partnership Units directly or indirectly held by KKR & Co. Inc. and KKR Holdings, each of which directly or indirectly holds equity of the KKR Group Partnerships. However, primarily because of the (i) contribution of certain expenses borne entirely by KKR Holdings, (ii) the periodic exchange of KKR Holdings units for KKR & Co. Inc. Class A common stock pursuant to the exchange agreement and (iii) the contribution of certain expenses borne entirely by KKR associated with the Equity Incentive Plans, equity allocations shown in the consolidated statement of changes in equity differ from their respective pro rata ownership interests in KKR's net assets.

The following table presents net income (loss) attributable to noncontrolling interests held by KKR Holdings:

	Three Months Ended March 31,
	2019		2018
Net income (loss)	$	1,627,046	$	602,894
Less: Net income (loss) attributable to Redeemable Noncontrolling Interests	—		25,674
Less: Net income (loss) attributable to Noncontrolling Interests in consolidated entities	436,359		277,775
Less: Preferred Stock Dividends	8,341		8,341
Plus: Income tax expense (benefit) attributable to KKR & Co. Inc.	158,962		6,068
Net income (loss) attributable to KKR & Co. Inc. Class A Common Stockholders and KKR Holdings	$	1,341,308	$	297,172
Net income (loss) attributable to Noncontrolling Interests held by KKR Holdings	$	481,368	$	121,002

Redeemable Noncontrolling Interests

Redeemable Noncontrolling Interests represent noncontrolling interests of certain investment funds and vehicles that are subject to periodic redemption by fund investors following the expiration of a specified period of time (typically one year), or may be withdrawn subject to a redemption fee during the period when capital may not be otherwise withdrawn. Fund investors interests subject to redemption as described above are presented as Redeemable Noncontrolling Interests in the accompanying consolidated statements of financial condition and presented as Net Income (Loss) Attributable to Redeemable Noncontrolling Interests in the accompanying consolidated statements of operations. There was no impact to Redeemable Noncontrolling Interests upon Conversion.

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Notes to Financial Statements (Continued)

When redeemable amounts become legally payable to fund investors, they are classified as a liability and included in Accounts Payable, Accrued Expenses and Other Liabilities in the accompanying consolidated statements of financial condition. For all consolidated investment vehicles and funds in which redemption rights have not been granted, noncontrolling interests are presented within Stockholders' Equity in the accompanying consolidated statements of financial condition as noncontrolling interests.

The following table presents the rollforward of Redeemable Noncontrolling Interests:

	For the Three Months Ended March 31,
	2019
Balance at the beginning of the period	$	1,122,641
Changes in consolidation	(1,122,641		)
Balance at the end of the period	$	—

16. COMMITMENTS AND CONTINGENCIES

Funding Commitments

As of March 31, 2019, KKR had unfunded commitments consisting of $5,086.9 million to its active investment vehicles. In addition to the uncalled commitments to KKR's investment funds, KKR has entered into contractual commitments with respect to (i) the purchase of investments and other assets in its Principal Activities business line and (ii) underwriting transactions, debt financing, and syndications in KKR's Capital Markets business line. As of March 31, 2019, these commitments amounted to $153.7 million and $516.2 million, respectively. Whether these amounts are actually funded, in whole or in part, depends on the contractual terms of such commitments, including the satisfaction or waiver of any conditions to closing or funding. The unfunded commitments shown for KKR's Capital Markets business line are shown without reflecting arrangements that may reduce the actual amount of contractual commitments shown occurring after March 31, 2019. KKR's capital markets business has an arrangement with a third party, which reduces its risk when underwriting certain debt transactions, and thus our unfunded commitments as of March 31, 2019 are reduced to reflect the amount to be funded by such third party. In the case of purchases of investments or assets in KKR's Principal Activities business line, the amount to be funded includes amounts that are intended to be syndicated to third parties, and the actual amounts to be funded may be less than shown.

Non-cancelable Operating Leases

KKR's non-cancelable operating leases consist of leases of office space around the world. There are no material rent holidays, contingent rent, rent concessions or leasehold improvement incentives associated with any of these property leases. In addition to base rentals, certain lease agreements are subject to escalation provisions and rent expense is recognized on a straight‑line basis over the term of the lease agreement.

As of March 31, 2019, the approximate aggregate minimum future lease payments, net of sublease income, required on the operating leases are as follows:

April 2019 - March 2020	$	50,312
April 2020 - March 2022	66,055
April 2022 - March 2024	26,828
April 2024 and thereafter	18,855
Total minimum payments required	162,050
Less: Imputed Interest	(9,977		)
Total operating lease liabilities	$	152,073

As of March 31, 2019, KKR has an additional operating lease for office space that has not yet commenced with minimum future lease payments of approximately $87.2 million over a lease term of 15 years.

53

Notes to Financial Statements (Continued)

As of December 31, 2018, the approximate aggregate minimum future lease payments, net of sublease income, required on the operating leases are as follows:

2019	$	50,649
2020 - 2021	69,263
2022 - 2023	29,687
2024 and thereafter	76,332
Total minimum payments required (1)	$	225,931

(1) Table depicts aggregate minimum future lease payments under ASC 840.

Contingent Repayment Guarantees

The partnership documents governing KKR's carry-paying investment funds and vehicles generally include a "clawback" provision that, if triggered, may give rise to a contingent obligation requiring the general partner to return amounts to the fund for distribution to the fund investors at the end of the life of the fund. Under a clawback obligation, upon the liquidation of a fund, the general partner is required to return, typically on an after-tax basis, previously distributed carry to the extent that, due to the diminished performance of later investments, the aggregate amount of carry distributions received by the general partner during the term of the fund exceed the amount to which the general partner was ultimately entitled, including the effects of any performance thresholds. As of March 31, 2019, no carried interest was subject to this clawback obligation, assuming that all applicable carry-paying funds were liquidated at their March 31, 2019 fair values. Had the investments in such funds been liquidated at zero value, the clawback obligation would have been approximately $2.1 billion. Carried interest is recognized in the consolidated statements of operations based on the contractual conditions set forth in the agreements governing the fund as if the fund were terminated and liquidated at the reporting date and the fund's investments were realized at the then estimated fair values. Amounts earned pursuant to carried interest are earned by the general partner of those funds to the extent that cumulative investment returns are positive and where applicable, preferred return thresholds have been met. If these investment amounts earned decrease or turn negative in subsequent periods, recognized carried interest will be reversed and to the extent that the aggregate amount of carry distributions received by the general partner during the term of the fund exceed the amount to which the general partner was ultimately entitled, a clawback obligation would be recorded. For funds that are consolidated, this clawback obligation, if any, is reflected as an increase in noncontrolling interests in the consolidated statements of financial condition. For funds that are not consolidated, this clawback obligation, if any, is reflected as a reduction of KKR's investment balance as this is where carried interest is initially recorded.

Indemnifications and Other Guarantees

KKR may incur contingent liabilities for claims that may be made against it in the future. KKR enters into contracts that contain a variety of representations, warranties and covenants, including indemnifications. For example, certain of KKR's investment funds and KFN have provided certain indemnities relating to environmental and other matters and have provided nonrecourse carve-out guarantees for fraud, willful misconduct and other customary wrongful acts, each in connection with the financing of certain real estate investments that KKR has made and for certain investment vehicles that KKR manages. In addition, KKR has also provided credit support to certain of its subsidiaries' obligations in connection with a limited number of investment vehicles that KKR manages. For example, KKR has guaranteed the obligations of a general partner to post collateral on behalf of its investment vehicle in connection with such vehicle's derivative transactions, and KKR has also agreed to be liable for certain investment losses and/or for providing liquidity in the events specified in the governing documents of other investment vehicles. KKR has also provided credit support regarding repayment obligations to third-party lenders to certain of its employees, excluding its executive officers, in connection with their personal investments in KKR investment funds and to a hedge fund partnership regarding the ownership of its business. KKR also may become liable for certain fees payable to sellers of businesses or assets if a transaction does not close, subject to certain conditions, if any, specified in the acquisition agreements for such businesses or assets. KKR's maximum exposure under these arrangements is currently unknown and KKR's liabilities for these matters would require a claim to be made against KKR in the future.

54

Notes to Financial Statements (Continued)

Litigation

From time to time, KKR is involved in various legal proceedings, lawsuits and claims incidental to the conduct of KKR's business. KKR's business is also subject to extensive regulation, which may result in regulatory proceedings against it.

In December 2017, KKR & Co. L.P. and its Co-Chief Executive Officers were named as defendants in a lawsuit pending in Kentucky state court alleging, among other things, the violation of fiduciary and other duties in connection with certain separately managed accounts that Prisma Capital Partners LP, a former subsidiary of KKR, manages for the Kentucky Retirement Systems. Also named as defendants in the lawsuit are certain current and former trustees and officers of the Kentucky Retirement Systems, Prisma Capital Partners LP, and various other service providers to the Kentucky Retirement Systems and their related persons. The defendants’ motion to dismiss was denied by the trial court in November 2018, but in April 2019 the Kentucky Court of Appeals vacated the trial court's opinion and order denying the motion to dismiss the case for lack of standing. The decision of the Court of Appeals has been appealed by plaintiffs to the Supreme Court of Kentucky.

KKR currently is and expects to continue to become, from time to time, subject to examinations, inquiries and investigations by various U.S. and non-U.S. governmental and regulatory agencies, including but not limited to the SEC, Department of Justice, state attorney generals, Financial Industry Regulatory Authority, or FINRA, and the U.K. Financial Conduct Authority. Such examinations, inquiries and investigations may result in the commencement of civil, criminal or administrative proceedings or fines against KKR or its personnel.

Moreover, in the ordinary course of business, KKR is and can be both the defendant and the plaintiff in numerous lawsuits with respect to acquisitions, bankruptcy, insolvency and other types of proceedings. Such lawsuits may involve claims that adversely affect the value of certain investments owned by KKR's funds. 

KKR establishes an accrued liability for legal proceedings only when those matters present loss contingencies that are both probable and reasonably estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued. No loss contingency is recorded for matters where such losses are either not probable or reasonably estimable (or both) at the time of determination. Such matters may be subject to many uncertainties, including among others: (i) the proceedings may be in early stages; (ii) damages sought may be unspecified, unsupportable, unexplained or uncertain; (iii) discovery may not have been started or is incomplete; (iv) there may be uncertainty as to the outcome of pending appeals or motions; (v) there may be significant factual issues to be resolved or (vi) there may be novel legal issues or unsettled legal theories to be presented or a large number of parties. Consequently, management is unable to estimate a range of potential loss, if any, related to these matters. In addition, loss contingencies may be, in part or in whole, subject to insurance or other payments such as contributions and/or indemnity, which may reduce any ultimate loss.

It is not possible to predict the ultimate outcome of all pending legal proceedings, and some of the matters discussed above seek or may seek potentially large and/or indeterminate amounts. As of such date, based on information known by management, management has not concluded that the final resolutions of the matters above will have a material effect upon the financial statements. However, given the potentially large and/or indeterminate amounts sought or may be sought in certain of these matters and the inherent unpredictability of investigations and litigations, it is possible that an adverse outcome in certain matters could, from time to time, have a material effect on KKR's financial results in any particular period.

17. SUBSEQUENT EVENTS

Common Stock Dividend

A dividend of $0.125 per share of Class A common stock of KKR & Co. Inc. was announced on April 30, 2019, and will be paid on May 28, 2019 to Class A common stockholders of record as of the close of business on May 13, 2019. KKR Holdings will receive its pro rata share of the distribution from the KKR Group Partnerships.

Preferred Stock Dividend

A dividend of $0.421875 per share of Series A Preferred Stock has been declared as announced on April 30, 2019 and set aside for payment on June 17, 2019 to holders of record of Series A Preferred Stock as of the close of business on June 1, 2019.

A dividend of $0.406250 per share of Series B Preferred Stock has been declared as announced on April 30, 2019 and set aside for payment on June 17, 2019 to holders of record of Series B Preferred Stock as of the close of business on June 1, 2019.

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ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis should be read in conjunction with the unaudited condensed consolidated financial statements of KKR & Co. Inc., together with its consolidated subsidiaries, and the related notes included elsewhere in this report and our Annual Report on Form 10-K for the fiscal year ended December 31, 2018, filed with the SEC on February 15, 2019 (our "Annual Report"), including the audited consolidated financial statements and the related notes and "Management's Discussion and Analysis of Financial Condition and Results of Operations" contained therein. The historical condensed consolidated financial data discussed below reflects the historical results and financial position of KKR. In addition, this discussion and analysis contains forward-looking statements and involves numerous risks and uncertainties, including those described under "Cautionary Note Regarding Forward-looking Statements" and "Risk Factors" in this report, our Annual Report, and our other filing with the SEC. Actual results may differ materially from those contained in any forward-looking statements.

The unaudited condensed consolidated financial statements and the related notes included elsewhere in this report are hereafter referred to as the "financial statements." Additionally, the condensed consolidated statements of financial condition are referred to herein as the “consolidated statements of financial condition”; the condensed consolidated statements of operations are referred to herein as the “consolidated statements of operations”;  the condensed consolidated statements of comprehensive income (loss) are referred to herein as the “consolidated statements of comprehensive income (loss)”; the condensed consolidated statements of changes in equity are referred to herein as the “consolidated statements of changes in equity”; and the condensed consolidated statements of cash flows are referred to herein as the “ consolidated statements of cash flows."

Overview

We are a leading global investment firm that manages multiple alternative asset classes including private equity, energy, infrastructure, real estate and credit, with strategic partners that manage hedge funds. We aim to generate attractive investment returns for our fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with our portfolio companies. We invest our own capital alongside the capital we manage for fund investors and provide financing solutions and investment opportunities through our capital markets business.

Our business offers a broad range of investment management services to our fund investors and provides capital markets services to our firm, our portfolio companies and third parties. Throughout our history, we have consistently been a leader in the private equity industry, having completed more than 360 private equity investments in portfolio companies with a total transaction value in excess of $610 billion as of March 31, 2019. We have grown our firm by expanding our geographical presence and building businesses in areas such as leveraged credit, alternative credit, hedge funds, capital markets, infrastructure, energy, real estate, growth equity and core investments. Our balance sheet has provided a significant source of capital in the growth and expansion of our business, and has allowed us to further align our interests with those of our fund investors. Building on these efforts and leveraging our industry expertise and intellectual capital have allowed us to capitalize on a broader range of the opportunities we source. Additionally, we have increased our focus on meeting the needs of our existing fund investors and in developing relationships with new investors in our funds.

We seek to work proactively and collaboratively as one-firm across business lines, departments, and geographies, as appropriate, to achieve what we believe are the best results for our funds and the firm. Through our offices around the world, we have a pre-eminent global integrated platform for sourcing transactions, raising capital and carrying out capital markets activities. Our growth has been driven by value that we have created through our operationally focused investment approach, the expansion of our existing businesses, our entry into new lines of business, innovation in the products that we offer investors in our funds, an increased focus on providing tailored solutions to our clients and the integration of capital markets distribution activities.

As a global investment firm, we earn management, monitoring, transaction and incentive fees and carried interest for providing investment management, monitoring and other services to our funds, vehicles, CLOs, managed accounts and portfolio companies, and we generate transaction-specific income from capital markets transactions. We earn additional investment income by investing our own capital alongside that of our fund investors, from other assets on our balance sheet and from the carried interest we receive from our funds and certain of our other investment vehicles. A carried interest entitles the sponsor of a fund to a specified percentage of investment gains that are generated on third-party capital that is invested.

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Our investment teams have deep industry knowledge and are supported by a substantial and diversified capital base; an integrated global investment platform; the expertise of operating consultants, senior advisors and other advisors; and a worldwide network of business relationships that provide a significant source of investment opportunities, specialized knowledge during due diligence and substantial resources for creating and realizing value for stakeholders. These teams invest capital, a substantial portion of which is of a long duration and not subject to redemption. As of March 31, 2019, approximately 78% of our fee paying assets under management are not subject to redemption for at least 8 years from inception, providing us with significant flexibility to grow investments and select exit opportunities. We believe that these aspects of our business will help us continue to expand and grow our business and deliver strong investment performance in a variety of economic and financial conditions.

Our Business Lines

Private Markets

Through our Private Markets business line, we manage and sponsor a group of private equity funds that invest capital for long-term appreciation, either through controlling ownership of a company or strategic minority positions. In addition to our traditional private equity funds, we sponsor investment funds that invest in growth equity and core equity investments. We also manage and sponsor investment funds that invest capital in real assets, such as infrastructure, energy, and real estate. Our Private Markets business line includes separately managed accounts that invest in multiple strategies, which may include our credit strategies as well as our private equity and real assets strategies. These funds and accounts are managed by Kohlberg Kravis Roberts & Co. L.P., an SEC-registered investment adviser. As of March 31, 2019, Private Markets business line had $108.1 billion of AUM and FPAUM of $71.6 billion, consisting of $47.4 billion in private equity (including growth equity and core investments), $18.4 billion in real assets (including infrastructure, energy, and real estate) and $5.8 billion in other related strategies.

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The table below presents information as of March 31, 2019, relating to our current private equity, growth equity, core investment, and real asset funds and other investment vehicles in our Private Markets business line for which we have the ability to earn carried interest. This data does not reflect acquisitions or disposals of investments, changes in investment values, or distributions occurring after March 31, 2019.

	Investment Period (1)		Amount ($ in millions)
	Start Date	End Date	Commitment (2)		Uncalled Commitments		Percentage Committed by General Partner	Invested		Realized		Remaining Cost (3)		Remaining Fair Value		Gross Accrued Carried Interest
Private Equity and Growth Equity Funds
European Fund V	3/2019	(6)	$	5,252.2	$	5,252.2	7.6%	$	—	$	—	$	—	$	—	$	—
Asian Fund III	4/2017	4/2023	9,000.0		6,654.5		5.6%	2,345.5		—		2,345.5		2,988.2		83.5
Americas Fund XII	1/2017	1/2023	13,500.0		8,219.7		6.0%	5,299.0		89.0		5,295.1		5,819.6		55.2
Health Care Strategic Growth Fund	12/2016	12/2021	1,331.0		1,133.7		11.3%	197.3		—		197.3		294.6		5.4
Next Generation Technology Growth Fund	3/2016	3/2021	658.9		149.5		22.5%	509.4		—		509.4		969.9		45.4
European Fund IV	12/2014	3/2019	3,513.9		920.3		5.6%	2,686.4		461.2		2,303.2		3,834.1		272.0
Asian Fund II	4/2013	4/2017	5,825.0		626.2		1.3%	6,205.5		2,761.9		4,546.4		6,895.5		469.4
North America Fund XI	9/2012	1/2017	8,718.4		837.1		2.9%	9,315.3		9,361.8		5,555.4		9,370.3		747.1
China Growth Fund (4)	11/2010	11/2016	1,010.0		—		1.0%	1,010.0		726.9		579.1		580.9		(0.5		)
European Fund III (4)	3/2008	3/2014	5,560.4		223.5		5.1%	5,336.9		10,374.7		436.1		520.2		18.7
Asian Fund (4)	7/2007	4/2013	3,983.3		—		2.5%	3,945.9		8,474.5		179.1		230.7		11.4
2006 Fund (4)	9/2006	9/2012	17,642.2		337.7		2.1%	17,304.5		29,816.6		3,592.7		5,723.8		420.3
European Fund II (4)	11/2005	10/2008	5,750.8		—		2.1%	5,750.8		8,479.3		—		58.8		4.6
Millennium Fund (4)	12/2002	12/2008	6,000.0		—		2.5%	6,000.0		14,123.1		—		6.1		1.3
Private Equity and Growth Equity Funds			87,746.1		24,354.4			65,906.5		84,669.0		25,539.3		37,292.7		2,133.8
Co-Investment Vehicles and Other	Various	Various	9,750.6		4,305.3		Various	5,667.6		4,082.1		3,800.2		5,112.8		242.3
Total Private Equity and Growth Equity Funds			97,496.7		28,659.7			71,574.1		88,751.1		29,339.5		42,405.5		2,376.1
Real Assets
Energy Income and Growth Fund	9/2013	6/2018	1,974.2		59.3		12.9%	1,961.1		648.3		1,407.6		1,609.1		—
Natural Resources Fund (4)	Various	Various	887.4		1.7		Various	885.7		119.2		198.3		168.3		—
Global Energy Opportunities	Various	Various	979.2		329.4		Various	479.6		95.5		343.2		295.2		—
Global Infrastructure Investors	9/2011	10/2014	1,040.2		25.4		4.8%	1,047.6		1,295.2		377.9		553.0		19.8
Global Infrastructure Investors II	10/2014	6/2018	3,040.3		393.4		4.1%	2,877.0		339.5		2,614.8		3,334.4		72.5
Global Infrastructure Investors III	6/2018	6/2024	7,166.8		6,668.0		3.8%	498.8		—		498.8		466.6		—
Real Estate Partners Americas	5/2013	5/2017	1,229.1		352.7		16.3%	1,004.3		1,146.4		338.5		342.9		19.1
Real Estate Partners Americas II	5/2017	12/2020	1,921.2		1,308.0		7.8%	668.3		104.0		606.2		653.2		—
Real Estate Partners Europe	9/2015	6/2020	710.5		285.2		9.5%	438.5		22.3		422.1		518.0		8.3
Real Estate Credit Opportunity Partners	2/2017	4/2019	1,130.0		243.5		4.4%	886.5		71.5		886.5		916.1		4.9
Co-Investment Vehicles and Other	Various	Various	2,612.9		1,219.8		Various	1,393.1		706.2		1,389.9		1,619.8		4.5
Real Assets			$	22,691.8	$	10,886.4		$	12,140.5	$	4,548.1	$	9,083.8	$	10,476.6	$	129.1
Other
Core Investment Vehicles	Various	Various	9,500.0		6,342.0		36.8%	3,158.0		—		3,158.0		3,941.6		33.9
Unallocated Commitments (5)			2,540.3		2,540.3		Various	—		—		—		—		—
Private Markets Total			$	132,228.8	$	48,428.4		$	86,872.6	$	93,299.2	$	41,581.3	$	56,823.7	$	2,539.1

(1) The start date represents the date on which the general partner of the applicable fund commenced investment of the fund's capital or the date of the first closing. The end date represents the earlier of (i) the date on which the general partner of the applicable fund was or will be required by the fund's governing agreement to cease making investments on behalf of the fund, unless extended by a vote of the fund investors, and (ii) the date on which the last investment was made.

(2) The commitment represents the aggregate capital commitments to the fund, including capital commitments by third-party fund investors and the general partner. Foreign currency commitments have been converted into U.S. dollars based on (i) the foreign exchange rate at the date of purchase for each investment and (ii) the exchange rate that prevailed on March 31, 2019, in the case of uncalled commitments.

(3) The remaining cost represents the initial investment of the general partner and limited partners, reduced for returns of capital, with the limited partners' investment further reduced for any realized gains from which the general partner did not receive a carried interest.

(4) The "Invested" and "Realized" columns do not include the amounts of any realized investments that restored the unused capital commitments of the fund investors, if any.

(5) "Unallocated Commitments" represent unallocated commitments from our strategic investor partnerships.

(6) Six years from first investment date.

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The table below presents information as of March 31, 2019, relating to the historical performance of certain of our Private Markets investment vehicles since inception, which we believe illustrates the benefits of our investment approach. This data does not reflect additional capital raised since March 31, 2019, or acquisitions or disposals of investments, changes in investment values or distributions occurring after that date. However, the information presented below is not intended to be representative of any past or future performance for any particular period other than the period presented below. Past performance is no guarantee of future results.

	Amount				Fair Value of Investments
Private Markets Investment Funds	Commitment		Invested		Realized (4)		Unrealized		Total Value		Gross IRR (5)		Net IRR (5)		Gross Multiple of Invested Capital (5)
($ in millions)
Legacy Funds (1)
1976 Fund	$	31.4	$	31.4	$	537.2	$	—	$	537.2	39.5	%	35.5	%	17.1
1980 Fund	356.8		356.8		1,827.8		—		1,827.8		29.0	%	25.8	%	5.1
1982 Fund	327.6		327.6		1,290.7		—		1,290.7		48.1	%	39.2	%	3.9
1984 Fund	1,000.0		1,000.0		5,963.5		—		5,963.5		34.5	%	28.9	%	6.0
1986 Fund	671.8		671.8		9,080.7		—		9,080.7		34.4	%	28.9	%	13.5
1987 Fund	6,129.6		6,129.6		14,949.2		—		14,949.2		12.1	%	8.9	%	2.4
1993 Fund	1,945.7		1,945.7		4,143.3		—		4,143.3		23.6	%	16.8	%	2.1
1996 Fund	6,011.6		6,011.6		12,476.9		—		12,476.9		18.0	%	13.3	%	2.1
Subtotal - Legacy Funds	16,474.5		16,474.5		50,269.3		—		50,269.3		26.1	%	19.9	%	3.1
Included Funds
European Fund (1999) (2)	3,085.4		3,085.4		8,757.7		—		8,757.7		26.9	%	20.2	%	2.8
Millennium Fund (2002)	6,000.0		6,000.0		14,123.1		6.1		14,129.2		22.0	%	16.1	%	2.4
European Fund II (2005) (2)	5,750.8		5,750.8		8,479.3		58.8		8,538.1		6.1	%	4.5	%	1.5
2006 Fund (2006)	17,642.2		17,304.5		29,816.6		5,723.8		35,540.4		11.8	%	9.2	%	2.1
Asian Fund (2007)	3,983.3		3,945.9		8,474.5		230.7		8,705.2		18.9	%	13.7	%	2.2
European Fund III (2008) (2)	5,560.4		5,336.9		10,374.7		520.2		10,894.9		16.9	%	11.8	%	2.0
E2 Investors (Annex Fund) (2009) (2)	195.8		195.8		199.6		—		199.6		0.6	%	0.5	%	1.0
China Growth Fund (2010)	1,010.0		1,010.0		726.9		580.9		1,307.8		8.0	%	3.3	%	1.3
Natural Resources Fund (2010)	887.4		885.7		119.2		168.3		287.5		(22.3	)%	(24.2	)%	0.3
Global Infrastructure Investors (2011) (2)	1,040.2		1,047.6		1,295.2		553.0		1,848.2		15.1	%	13.1	%	1.8
North America Fund XI (2012)	8,718.4		9,315.3		9,361.8		9,370.3		18,732.1		24.6	%	19.5	%	2.0
Asian Fund II (2013)	5,825.0		6,205.5		2,761.9		6,895.5		9,657.4		18.3	%	13.4	%	1.6
Real Estate Partners Americas (2013)	1,229.1		1,004.3		1,146.4		342.9		1,489.3		18.9	%	13.9	%	1.5
Energy Income and Growth Fund (2013)	1,974.2		1,961.1		648.3		1,609.1		2,257.4		5.9	%	3.3	%	1.2
Global Infrastructure Investors II (2014) (2)	3,040.3		2,877.0		339.5		3,334.4		3,673.9		14.2	%	11.7	%	1.3
European Fund IV (2015) (2)	3,513.9		2,686.4		461.2		3,834.1		4,295.3		25.2	%	18.9	%	1.6
Real Estate Partners Europe (2015) (2)	710.5		438.5		22.3		518.0		540.3		17.7	%	10.9	%	1.2
Next Generation Technology Growth Fund (2016)	658.9		509.4		—		969.9		969.9		59.6	%	48.3	%	1.9
Health Care Strategic Growth Fund (2016)	1,331.0		197.3		—		294.6		294.6		86.3	%	26.6	%	1.5
Americas Fund XII (2017) (3)	13,500.0		5,299.0		89.0		5,819.6		5,908.6		—		—		—
Real Estate Credit Opportunity Partners (2017) (3)	1,130.0		886.5		71.5		916.1		987.6		—		—		—
Asian Fund III (2017) (3)	9,000.0		2,345.5		—		2,988.2		2,988.2		—		—		—
Real Estate Partners Americas II (2017) (3)	1,921.2		668.3		104.0		653.2		757.2		—		—		—
Core Investment Vehicles (2017) (3)	9,500.0		3,158.0		—		3,941.6		3,941.6		—		—		—
Global Infrastructure Investors III (2018) (2)(3)	7,166.8		498.8		—		466.6		466.6		—		—		—
European Fund V (2019) (2)(3)	5,252.2		—		—		—		—		—		—		—
Subtotal - Included Funds	119,627.0		82,613.5		97,372.7		49,795.9		147,168.6		15.8	%	11.7	%	1.9
All Funds	$	136,101.5	$	99,088.0	$	147,642.0	$	49,795.9	$	197,437.9	25.6	%	18.8	%	2.0

(1) These funds were not contributed to KKR as part of the acquisition of the assets and liabilities of KKR & Co. (Guernsey) L.P. (formerly known as KKR Private Equity Investors, L.P.) on October 1, 2009 (the "KPE Transaction").

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(2) The following table presents information regarding investment funds with euro-denominated commitments. Such amounts have been converted into U.S. dollars based on (i) the foreign exchange rate at the date of purchase for each investment and (ii) the exchange rate prevailing on March 31, 2019, in the case of unfunded commitments.

Private Markets Investment Funds	Commitment (€ in millions)
European Fund		€	196.5
European Fund II		€	2,597.5
European Fund III		€	2,882.8
E2 Investors (Annex Fund)		€	55.5
European Fund IV		€	1,626.1
Global Infrastructure Investors		€	30.0
Global Infrastructure Investors II		€	243.8
Real Estate Partners Europe		€	276.6
Global Infrastructure Investors III		€	987.0
European Fund V		€	1,598.5

(3) The gross IRR, net IRR and gross multiple of invested capital are calculated for our investment funds that made their first investment at least 24 months prior to March 31, 2019. None of the Americas Fund XII, Real Estate Credit Opportunity Partners,Asian Fund III, Real Estate Partners Americas II, our Core Investment Vehicles, Global Infrastructure Investors III, or European Fund Vhas invested for at least 24 months as of March 31, 2019. We therefore have not calculated gross IRRs, net IRRs and gross multiples of invested capital with respect to those funds.

(4) An investment is considered realized when it has been disposed of or has otherwise generated disposition proceeds or current income that has been distributed by the relevant fund. In periods prior to the three months ended September 30, 2015, realized proceeds excluded current income such as dividends and interest. Realizations have not been shown for those investment funds that have either made their first investment more recently than 24 months prior to March 31, 2019 or have not had any realizations.

(5) IRRs measure the aggregate annual compounded returns generated by a fund's investments over a holding period. Net IRRs are calculated after giving effect to the allocation of realized and unrealized carried interest and the payment of any applicable management fees and organizational expenses. Gross IRRs are calculated before giving effect to the allocation of realized and unrealized carried interest and the payment of any applicable management fees and organizational expenses.

The gross multiples of invested capital measure the aggregate value generated by a fund's investments in absolute terms. Each multiple of invested capital is calculated by adding together the total realized and unrealized values of a fund's investments and dividing by the total amount of capital invested by the fund. Such amounts do not give effect to the allocation of realized and unrealized carried interest or the payment of any applicable management fees or organizational expenses.

KKR's Private Markets funds may utilize third-party financing facilities to provide liquidity to such funds. The above net and gross IRRs are calculated from the time capital contributions are due from fund investors to the time fund investors receive a related distribution from the fund, and the use of such financing facilities generally decreases the amount of invested capital that would otherwise be used to calculate IRRs, which tends to increase IRRs when fair value grows over time and decrease IRRs when fair value decreases over time. KKR's Private Markets funds also generally provide in certain circumstances, which vary depending on the relevant fund documents, for a portion of capital returned to investors to be restored to unused commitments as recycled capital. For KKR's Private Markets funds that have a preferred return, we take into account recycled capital in the calculation of IRRs and multiples of invested capital because the calculation of the preferred return includes the effect of recycled capital. For KKR's Private Markets funds that do not have a preferred return, we do not take recycled capital into account in the calculation of IRRs and multiples of invested capital. The inclusion of recycled capital generally causes invested and realized amounts to be higher and IRRs and multiples of invested capital to be lower than had recycled capital not been included. The inclusion of recycled capital would reduce the composite net IRR of all Included Funds by 0.1% and the composite net IRR of all Legacy Funds by 0.5% and would reduce the composite multiple of invested capital of Included Funds by less than 0.1 and the composite multiple of invested capital of Legacy Funds by 0.4.

Public Markets

Through our Public Markets business line, we operate our combined credit and hedge funds platforms. Our credit business invests capital in (i) leveraged credit strategies, including leveraged loans, high-yield bonds, opportunistic credit and revolving credit strategies, and (ii) alternative credit strategies, including special situations and private credit strategies such as direct lending and private opportunistic credit (or mezzanine) investment strategies. The funds, CLOs, separately managed accounts, investment companies registered under the Investment Company Act of 1940 (the "Investment Company Act"), including business development companies ("BDCs"), and alternative investment funds ("AIFs") in our leveraged credit and alternative credit strategies are managed by KKR Credit Advisors (US) LLC, which is an SEC-registered investment adviser and KKR Credit Advisors (Ireland) Unlimited Company, regulated by the Central Bank of Ireland ("CBI"). Our Public Markets business line also includes our hedge funds platform, which consists of strategic partnerships with third-party hedge fund managers in which KKR owns a minority stake (which we refer to as "hedge fund partnerships"). Our hedge fund partnerships offer a variety of investment strategies, including hedge fund-of-funds, equity hedge funds and credit hedge funds. Our BDC platform consists of BDCs advised by FS/KKR Advisor, LLC (“FS/KKR Advisor”), which began serving as the investment adviser to BDCs that were previously advised or sub-advised by KKR and Franklin Square Holdings, L.P. (“FS Investments”) following the completion of our strategic partnership with FS Investments on April 9, 2018 (the “FS Investments Transaction”). 

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We intend to continue to grow the Public Markets business line by leveraging our global investment platform, experienced investment professionals and the ability to adapt our investment strategies to different market conditions to capitalize on investment opportunities that may arise at various levels of the capital structure and across market cycles.

As of March 31, 2019, our Public Markets business line had $91.4 billion of AUM, comprised of $36.1 billion of assets managed in our leveraged credit strategies (which include $2.5 billion of assets managed in our opportunistic credit strategy and $1.9 billion of assets managed in our revolving credit strategy), $6.6 billion of assets managed in our special situations strategy, $23.7 billion of assets managed in our private credit strategies, $24.3 billion of assets managed through our hedge fund platform, and $0.7 billion of assets managed in other strategies. Our private credit strategies include $17.5 billion of assets managed in our direct lending strategy and $6.2 billion of assets managed in our private opportunistic credit strategy. Assets managed through our hedge fund platform represent KKR's pro rata portion of AUM of our hedge fund partnerships. Our BDC platform has approximately $17.0 billion in combined assets under management, which are reflected in the AUM of our leveraged credit strategies and alternative credit strategies above. We report all of the assets under management of the BDCs in our BDC platform.

Credit

Performance

We generally review our performance in our credit platform by investment strategy.

Our leveraged credit strategies principally invest through separately managed accounts, BDCs, CLOs and investment funds. In certain cases, these strategies have meaningful track records and may be compared to widely-known indices. The following table presents information regarding larger leveraged credit strategies managed by KKR from inception to March 31, 2019. However, the information presented below is not intended to be representative of any past or future performance for any particular period other than the period presented below. Past performance is no guarantee of any future result.

Leveraged Credit Strategies: Inception-to-Date Annualized Gross Performance vs. Benchmark by Strategy

Leveraged Credit Strategy	Inception Date	Gross Returns		Net Returns		Benchmark (1)	Benchmark Gross Returns
Bank Loans Plus High Yield	Jul 2008	7.73	%	7.11	%	65% S&P/LSTA Loan Index, 35% BoAML HY Master II Index (2)	6.07	%
Opportunistic Credit (3)	May 2008	12.23	%	10.27	%	BoAML HY Master II Index (3)	6.35	%
Bank Loans	Apr 2011	5.17	%	4.57	%	S&P/LSTA Loan Index (4)	4.14	%
High-Yield	Apr 2011	6.81	%	6.22	%	BoAML HY Master II Index (5)	6.18	%
Bank Loans Conservative	Apr 2011	4.52	%	3.92	%	S&P/LSTA BB-B Loan Index (6)	4.14	%
European Leveraged Loans (7)	Sep 2009	4.99	%	4.47	%	CS Inst West European Leveraged Loan Index (8)	4.41	%
High-Yield Conservative	Apr 2011	6.19	%	5.61	%	BoAML HY BB-B Constrained (9)	6.11	%
European Credit Opportunities (7)	Sept 2007	5.47	%	4.57	%	S&P European Leveraged Loans (All Loans) (10)	4.25	%
Revolving Credit (11)	May 2015	N/A		N/A		N/A	N/A

(1) The benchmarks referred to herein include the S&P/LSTA Leveraged Loan Index (the "S&P/LSTA Loan Index"), S&P/LSTA U.S. B/BB Ratings Loan Index (the "S&P/LSTA BB-B Loan Index"), the Bank of America Merrill Lynch High Yield Master II Index (the "BoAML HY Master II Index"), the BofA Merrill Lynch BB-B US High Yield Index (the "BoAML HY BB-B Constrained"), the Credit Suisse Institutional Western European Leveraged Loan Index (the "CS Inst West European Leveraged Loan Index"), and S&P European Leveraged Loans (All Loans). The S&P/LSTA Loan Index is a daily tradable index for the U.S. loan market that seeks to mirror the market-weighted performance of the largest institutional loans that meet certain criteria. The S&P/ LSTA BB-B Loan Index is comprised of loans in the S&P/LSTA Loan Index, whose rating is BB+, BB, BB-, B+, B or B-. The BoAML HY Master II Index is an index for high-yield corporate bonds. It is designed to measure the broad high-yield market, including lower-rated securities. The BoAML HY BB-B Constrained is a subset of the BoAML HY Master II Index including all securities rated BB1 through B3, inclusive. The CS Inst West European Leveraged Loan Index contains only institutional loan facilities priced above90, excluding TL and TLa facilities and loans rated CC, C or are in default. The S&P European Leveraged Loan Index reflects the market-weighted performance of institutional leveraged loan portfolios investing in European credits. While the returns of our leveraged credit strategies reflect the reinvestment of income and dividends, none of the indices presented in the chart above reflect such reinvestment, which has the effect of increasing the reported relative performance of these strategies as compared to the indices. Furthermore, these indices are not subject to management fees, incentive allocations, or expenses.

(2) Performance is based on a blended composite of Bank Loans Plus High Yield strategy accounts. The benchmark used for purposes of comparison for the Bank Loans Plus High Yield strategy is based on 65% S&P/LSTA Loan Index and 35% BoAML HY Master II Index.

(3) The Opportunistic Credit strategy invests in high-yield securities and corporate loans with no preset allocation. The Benchmark used for purposes of comparison for the Opportunistic Credit strategy presented herein is based on the BoAML HY Master II Index. Funds within this strategy may utilize third-party financing facilities to enhance investment returns. In cases where financing facilities are used, the amounts drawn on the facility are deducted from the assets of the fund in the calculation of net asset value, which tends to increase returns when net asset value grows over time and decrease returns when net asset value decreases over time.

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(4) Performance is based on a composite of portfolios that primarily invest in leveraged loans. The benchmark used for purposes of comparison for the Bank Loans strategy is based on the S&P/LSTA Loan Index.

(5) Performance is based on a composite of portfolios that primarily invest in high-yield securities. The benchmark used for purposes of comparison for the High Yield strategy is based on the BoAML HY Master II Index.

(6) Performance is based on a composite of portfolios that primarily invest in leveraged loans rated B-/Baa3 or higher. The benchmark used for purposes of comparison for the Bank Loans Conservative strategy is based on the S&P/LSTA BB-B Loan Index.

(7) The returns presented are calculated based on local currency.

(8) Performance is based on a composite of portfolios that primarily invest in higher quality leveraged loans. The benchmark used for purposes of comparison for the European Leveraged Loans strategy is based on the CS Inst West European Leveraged Loan Index.

(9) Performance is based on a composite of portfolios that primarily invest in high-yield securities rated B or higher. The benchmark used for purposes of comparison for the High-Yield Conservative strategy is based on the BoAML HY BB-B Constrained Index.

(10) Performance is based on a composite of portfolios that primarily invest in European institutional leveraged loans. The benchmark used for purposes of comparison for the European Credit Opportunities strategy is based on the S&P European Leveraged Loans (All Loans) Index.

(11) This strategy has not called any capital as of March 31, 2019. As a result, the gross and net return performance measures are not meaningful and are not included above.

Our alternative credit strategies primarily invest in more illiquid instruments through private investment funds, BDCs and separately managed accounts. The following table presents information regarding our Public Markets alternative credit commingled funds where investors are subject to capital commitments from inception to March 31, 2019. Some of these funds have been investing for less than 24 months, and thus their performance is less meaningful and not included below. In addition, the information presented below is not intended to be representative of any past or future performance for any particular period other than the period presented below. Past performance is no guarantee of any future result.

Alternative Credit Strategies: Fund Performance

		Amount				Fair Value of Investments
Public Markets  Investment Funds	Inception Date	Commitment		Invested (1)		Realized (1)		Unrealized		Total Value		Gross IRR (2)		Net IRR (2)		Multiple of Invested Capital (3)	Gross Accrued Carried Interest
($ in Millions)
Special Situations Fund	Dec 2012	$	2,274.3	$	2,272.7	$	1,436.2	$	1,211.9	$	2,648.1	4.3	%	2.3	%	1.2	$	—
Special Situations Fund II	Dec 2014	3,524.7		2,348.7		176.8		2,412.8		2,589.6		5.3	%	2.9	%	1.1	—
Mezzanine Partners	Mar 2010	1,022.8		913.9		1,060.1		292.6		1,352.7		12.8	%	8.2	%	1.5	65.1
Private Credit Opportunities Partners II	Dec 2015	2,245.1		1,013.3		27.0		1,014.8		1,041.8		4.3	%	2.6	%	1.0	—
Lending Partners	Dec 2011	460.2		405.3		434.9		63.2		498.1		6.0	%	4.5	%	1.2	—
Lending Partners II	Jun 2014	1,335.9		1,179.1		1,009.1		518.6		1,527.7		11.3	%	9.1	%	1.3	44.2
Lending Partners III	Apr 2017	1,497.8		432.2		35.3		456.9		492.2		N/A		N/A		N/A	4.8
Lending Partners Europe	Mar 2015	847.6		544.2		93.4		510.4		603.8		8.6	%	5.3	%	1.1	—
Other Alternative Credit Vehicles	Various	8,460.1		4,422.3		2,859.7		3,032.0		5,891.7		N/A		N/A		N/A	80.4
Unallocated Commitments (4)	Various	450.0		—		—		—		—		N/A		N/A		N/A	—
All Funds		$	22,118.5	$	13,531.7	$	7,132.5	$	9,513.2	$	16,645.7						$	194.5

(1)    Recycled capital is excluded from the amounts invested and realized. 

(2)    These credit funds utilize third-party financing facilities to provide liquidity to such funds, and in such an event, IRRs are calculated from the time capital contributions are due from fund investors to the time fund investors receive a related distribution from the fund. The use of such financing facilities generally decreases the amount of invested capital that would otherwise be used to calculate IRRs, which tends to increase IRRs when fair value grows over time and decrease IRRs when fair value decreases over time. IRRs measure the aggregate annual compounded returns generated by a fund's investments over a holding period and are calculated taking into account recycled capital. Net IRRs presented are calculated after giving effect to the allocation of realized and unrealized carried interest and the payment of any applicable management fees. Gross IRRs are calculated before giving effect to the allocation of carried interest and the payment of any applicable management fees.

 (3)    The multiples of invested capital measure the aggregate value generated by a fund's investments in absolute terms. Each multiple of invested capital is calculated by adding together the total realized and unrealized values of a fund's investments and dividing by the total amount of capital invested by the investors. The use of financing facilities generally decreases the amount of invested capital that would otherwise be used to calculate multiples of invested capital, which tends to increase multiples when fair value grows over time and decrease multiples when fair value decreases over time. Such amounts do not give effect to the allocation of any realized and unrealized returns on a fund's investments to the fund's general partner pursuant to a carried interest or the payment of any applicable management fees and are calculated without taking into account recycled capital.

(4) "Unallocated Commitments" represent unallocated commitments from our strategic investor partnerships.

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Public Markets AUM and Vehicle Structures

The table below presents information as of March 31, 2019, based on the investment funds, vehicles or accounts offered by our Public Markets business line. Our funds, vehicles and accounts have been sorted based upon their primary investment strategies. However, the AUM and FPAUM presented for each line in the table includes certain investments from non-primary investment strategies, which are permitted by their investment mandates, for purposes of presenting the fees and other terms for such funds, vehicles and accounts.

($ in millions)	AUM		FPAUM		Typical  Management Fee Rate	Incentive Fee / Carried Interest	Preferred Return	Duration of Capital
Leveraged Credit:
Leveraged Credit SMAs/Funds	$	19,822	$	18,478	0.10% - 1.10%	Various (1)	Various (1)	Subject to redemptions
CLOs	13,323		13,323		0.40% - 0.50%	Various (1)	Various (1)	10-14 Years (2)
Total Leveraged Credit	33,145		31,801
Alternative Credit: (3)
Special Situations	6,838		4,376		0.90% - 1.75% (4)	10.00 - 20.00%	7.00 - 12.00%	8-15 Years (2)
Private Credit	10,035		4,318		0.50% - 1.50%	10.00 - 20.00%	5.00 - 8.00%	8-15 Years (2)
Total Alternative Credit	16,873		8,694
Hedge Funds (5)	24,328		18,582		0.50% - 2.00%	Various (1)	Various (1)	Subject to redemptions
BDCs (6)	17,038		17,038		0.60%	8.00%	7.00%	Indefinite
Total	$	91,384	$	76,115

(1) Certain funds and CLOs are subject to a performance fee in which the manager or general partner of the funds share up to 20% of the net profits earned by investors in excess of performance hurdles (generally tied to a benchmark or index) and are subject to a provision requiring the funds and vehicles to regain prior losses before any performance fee is earned.

(2) Duration of capital is measured from inception. Inception dates for CLOs were between 2013 and 2018 and for separately managed accounts and funds investing in alternative credit strategies from 2009 through 2018.

(3) Our alternative credit funds generally have investment periods of three to five years and our newer alternative credit funds generally earn fees on invested capital during the investment period.

(4) Lower fees on uninvested capital in certain vehicles.

(5) Hedge Funds represent KKR's pro rata portion of AUM and FPAUM of our hedge fund partnerships, which consist of minority stakes in third-party hedge fund managers.

(6) Consists of our BDC platform advised by FS/KKR Advisor, LLC. We report all of the assets under management of the BDCs in AUM and FPAUM.

Capital Markets

Our Capital Markets business line is comprised of our global capital markets business, which is integrated with KKR's other business lines, and serves our firm, our portfolio companies and third-party clients by developing and implementing both traditional and non-traditional capital solutions for investments or companies seeking financing. These services include arranging debt and equity financing, placing and underwriting securities offerings, and providing other types of capital markets services that may result in the firm receiving fees, including underwriting, placement, transaction and syndication fees, commissions, underwriting discounts, interest payments and other compensation, which may be payable in cash or securities, in respect of the activities described above.

Our capital markets business underwrites credit facilities and arranges loan syndications and participations. When we are sole arrangers of a credit facility, we may advance amounts to the borrower on behalf of other lenders, subject to repayment. When we underwrite an offering of securities on a firm commitment basis, we commit to buy and sell an issue of securities and generate revenue by purchasing the securities at a discount or for a fee. When we act in an agency capacity or best efforts basis, we generate revenue for arranging financing or placing securities with capital markets investors. We may also provide issuers with capital markets advice on security selection, access to markets, marketing considerations, securities pricing, and other aspects of capital markets transactions in exchange for a fee. Our capital markets business also provides syndication services in

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respect of co-investments in transactions participated in by KKR funds or third-party clients, which may entitle the firm to receive syndication fees, management fees and/or a carried interest.

The capital markets business has a global footprint, with local presence and licenses to carry out certain broker-dealer activities in various countries in North America, Europe, Asia-Pacific and the Middle East. Our flagship capital markets subsidiary is KKR Capital Markets LLC, an SEC-registered broker-dealer and a member of the Financial Industry Regulation Authority ("FINRA").

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Principal Activities

Through our Principal Activities business line, we manage the firm's own assets on our balance sheet and deploy capital to support and grow our business lines. Typically, the funds in our Private Markets and Public Markets business lines contractually require us, as general partner of the funds, to make sizable capital commitments from time to time. We believe making general partner commitments assists us in raising new funds from limited partners by demonstrating our conviction in a given fund's strategy. We also use our balance sheet to acquire investments in order to help establish a track record for fundraising purposes in new strategies. We may also use our own capital to seed investments for new funds, to bridge capital selectively for our funds' investments or finance strategic acquisitions and partnerships, although the financial results of an acquired business or hedge fund partnership may be reported in our other business lines.

Our Principal Activities business line also provides the required capital to fund the various commitments of our Capital Markets business line when underwriting or syndicating securities, or when providing term loan commitments for transactions involving our portfolio companies and for third parties. Our Principal Activities business line also holds assets that may be utilized to satisfy regulatory requirements for our Capital Markets business line and risk retention requirements for our CLOs.

We also make opportunistic investments through our Principal Activities business line, which include co-investments alongside our Private Markets and Public Markets funds as well as Principal Activities investments that do not involve our Private Markets or Public Markets funds.

We endeavor to use our balance sheet strategically and opportunistically to generate an attractive risk-adjusted return on equity in a manner that is consistent with our fiduciary duties, in compliance with applicable laws, and consistent with our one-firm approach.

The chart below presents the holdings of our Principal Activities business line by asset class as of March 31, 2019.

Holdings by Asset Class ⁽¹⁾ 

(1) This presentation includes our capital commitments to our funds. Assets and revenues of other asset managers with which KKR has formed hedge fund partnerships where KKR does not hold more than 50% ownership interest are not included in Principal Activities but are reported in the financial results of our other business lines. Private Equity includes KKR private equity funds, co-investments alongside such KKR-sponsored private equity funds, core private equity funds, and other opportunistic investments. However, equity investments in other asset classes, such as real estate, alternative credit and energy appear in these other asset classes. Other Credit consists of other leveraged credit and specialty finance strategies.

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Business Environment

Economic and Market Conditions

Economic Conditions. As a global investment firm, we are affected by financial and economic conditions globally. Global and regional economic conditions have a substantial impact on our financial condition and results of operations, impacting the values of the investments we make, our ability to exit these investments profitably, our ability to raise capital from investors, and our ability to make new investments. Financial and economic conditions in the United States, European Union, Japan, China, and other major economies are significant contributors to the global economy.

As of March 31, 2019, key economic indicators of U.S. economic growth showed positive signs in the first quarter of 2019, while the widely-held expectation remained that the U.S. economy will grow at a slower rate in 2019 than last year. After raising its benchmark interest rate four times in 2018, the U.S. Federal Reserve suggested in March 2019 that it would not raise the rate in 2019 and on May 1, 2019, announced its decision to keep the rate unchanged. In the United States, real GDP growth was 3.2%, on a seasonally adjusted annualized basis, for the quarter ended March 31, 2019, compared to 2.2% for the quarter ended December 31, 2018; the U.S. unemployment rate was 3.8% as of March 31, 2019, down from 3.9% as of December 31, 2018; U.S. core consumer price index was 2.0% on a year-over-year basis as of March 31, 2019, down from 2.2% on a year-over-year basis as of December 31, 2018; and the effective federal funds rate set by the U.S. Federal Reserve was 2.4% as of March 31, 2019, flat compared to 2.4% as of December 31, 2018.

As of March 31, 2019, the European Union continued to display signs of slow-down in economic growth, stemming in part from political uncertainty and weak economic momentum in the region. In the Euro Area, real GDP growth is estimated to be 0.2%, on a seasonally adjusted quarter-over-quarter basis, for the quarter ended March 31, 2019, compared to 0.2%, on a seasonally adjusted quarter-over-quarter basis, for the quarter ended December 31, 2018; the Euro Area unemployment rate was 7.8% as of March 31, 2019, down from 7.9% as of December 31, 2018; Euro Area core inflation was 0.8% on a year-over-year basis as of March 31, 2019, down from 0.9% on a year-over-year basis as of December 31, 2018; and the short-term benchmark interest rate set by the European Central Bank was 0.0% as of March 31, 2019, unchanged from December 31, 2018.

As of March 31, 2019, the Bank of Japan maintained its accommodative monetary policy, and announced in April 2019 its intention to keep rates very low at least until the spring of 2020; it also projected a continued "moderate expanding trend" for Japan's economy, despite the slowdown in overseas economies. The Chinese economy exhibited only a slight moderation in reported economic growth in the first quarter of 2019, easing concerns of a further slowdown. In Japan, the short-term benchmark interest rate set by the Bank of Japan was -0.1% as of March 31, 2019, unchanged from December 31, 2018; and in China, reported real GDP was 1.4%, on a seasonally adjusted quarter-over-quarter basis, for the quarter ended March 31, 2019, compared to 1.5% in the quarter ended December 31, 2018.

These and other key issues could have repercussions across regional and global financial markets, which could adversely affect the valuations of our investments. Other key issues include (i) political uncertainty caused by, among other things, populist political parties and economic nationalist sentiments, (ii) regulatory changes regarding, for example, taxation, international trade, cross-border investments, immigration, and austerity programs, (iii) increased volatility in stock markets, (iv) an unexpected shift in the U.S. Federal Reserve's monetary policies and its impact on the markets and (v) technological advancements and innovations that may disrupt marketplaces and businesses. For a further discussion of how market conditions may affect our businesses, see "Risk Factors—Risks Related to Our Business—Difficult market and economic conditions can adversely affect our business in many ways, including by reducing the value or performance of the investments that we manage or by reducing the ability of our funds to raise or deploy capital, each of which could negatively impact our net income and cash flow and adversely affect our financial condition" in our Annual Report.

Equity and Credit Markets. Global equity and credit markets have a substantial effect on our financial condition and results of operations. In general, a climate of reasonable interest rates and high levels of liquidity in the debt and equity capital markets provide a positive environment for us to generate attractive investment returns, which also impacts our ability to generate incentive fees and carried interest. Periods of volatility and dislocation in the capital markets present substantial risks, but also can present us with opportunities to invest at reduced valuations that position us for future growth and investment returns. Low interest rates related to monetary stimulus and economic stagnation may negatively impact expected returns on all types of investments. Higher interest rates in conjunction with slower growth or weaker currencies in some emerging market economies have caused, and may further cause, the default risk of these countries to increase, and this could impact the operations or value of our investments that operate in these regions. Areas such as Japan, which have ongoing central bank quantitative easing campaigns and comparatively low interest rates relative to the United States, could potentially experience further currency volatility and weakness relative to the U.S. dollar.

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Many of our investments are in equities, so a change in global equity prices or in market volatility directly impacts the value of our investments and our profitability as well as our ability to realize investment gains and the receptiveness of fund investors to our investment products. For the quarter ended March 31, 2019, global equity markets were positive, with the S&P 500 Index up 13.6% and the MSCI World Index up 12.6% on a total return basis including dividends. Equity market volatility as evidenced by the Chicago Board Options Exchange Market Volatility Index (the "VIX"), a measure of volatility, ended at 13.7 as of March 31, 2019, decreasing from 25.4 as of December 31, 2018. For a discussion of our valuation methods, see "Risk Factors—Risks Related to the Assets We Manage—Our investments are impacted by various economic conditions that are difficult to quantify or predict, which may have a significant impact on the valuation of our investments and, therefore, on the investment income we realize and our results of operations and financial condition" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies—Fair Value Measurements—Level III Valuation Methodologies" in our Annual Report.

Many of our investments are also in non-investment grade credit instruments, and our funds and our portfolio companies also rely on credit financing and the ability to refinance existing debt. Consequently, any decrease in the value of credit instruments that we have invested in or any increase in the cost of credit financing reduces our returns and decreases our net income. In particular due in part to holdings of credit instruments such as CLOs on our balance sheet, the performance of the credit markets has had an amplified impact on our financial results, as we directly bear the full extent of losses from credit instruments on our balance sheet. Credit markets can also impact valuations because a discounted cash flow analysis is generally used as one of the methodologies to ascertain the fair value of our investments that do not have readily observable market prices. In addition, with respect to our credit instruments, tightening credit spreads are generally expected to lead to an increase, and widening credit spreads are generally expected to lead to a decrease, in the value of these credit investments, if not offset by hedging or other factors. In addition, the significant widening of credit spreads is also typically expected to negatively impact equity markets, which in turn would negatively impact our portfolio and us as noted above. During the quarter ended March 31, 2019, U.S. investment grade corporate bond spreads (BofA Merrill Lynch US Corporate Index) widened by 32 basis points and U.S. high-yield corporate bond spreads (BofAML HY Master II Index) widened by 128 basis points. The non-investment grade credit indices were up during the quarter ended March 31, 2019, with the S&P/LSTA Leveraged Loan Index up 4.0% and the BofAML HY Master II Index up 7.4%. During the quarter ended March 31, 2019, 10-year government bond yields fell 28 basis points in the United States, fell 28 basis points in the United Kingdom, fell 31 basis points in Germany, fell 24 basis points in China and fell 8 basis points in Japan. For a further discussion of how market conditions may affect our businesses, see "Risk Factors—Risks Related to Our Business—Difficult market and economic conditions can adversely affect our business in many ways, including by reducing the value or performance of the investments that we manage or by reducing the ability of our funds to raise or deploy capital, each of which could negatively impact our net income and cash flow and adversely affect our financial condition" and "Risk Factors—Risks Related to the Assets We Manage—Our investments are impacted by various economic conditions that are difficult to quantify or predict, which may have a significant impact on the valuation of our investments and, therefore, on the investment income we realize and our results of operations and financial condition" in our Annual Report.

For further discussion of the impact of global credit markets on our financial condition and results of operations, see "Risk Factors—Risks Related to the Assets We Manage—Changes in the debt financing markets may negatively impact the ability of our investment funds, their portfolio companies and strategies pursued with our balance sheet assets to obtain attractive financing for their investments or to refinance existing debt and may increase the cost of such financing or refinancing if it is obtained, which could lead to lower-yielding investments and potentially decrease our net income," "Risk Factors—Risks Related to the Assets We Manage—Our investments are impacted by various economic conditions that are difficult to quantify or predict, which may have a significant impact on the valuation of our investments and, therefore, on the investment income we realize and our results of operations and financial condition" and "Risk Factors—Risks Related to the Assets We Manage—Our funds and our firm through our balance sheet may make a limited number of investments, or investments that are concentrated in certain issuers, geographic regions or asset types, which could negatively affect our performance or the performance of our funds to the extent those concentrated assets perform poorly" in our Annual Report. For a further discussion of our valuation methods, see "Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies—Fair Value Measurements—Level III Valuation Methodologies" in our Annual Report.

Foreign Exchange Rates. Foreign exchange rates have a substantial impact on the valuations of our investments that are denominated in currencies other than the U.S. dollar. Currency volatility can also affect our businesses and investments that deal in cross-border trade. The appreciation or depreciation of the U.S. dollar is expected to contribute to a decrease or increase, respectively, in the U.S. dollar value of our non-U.S. investments to the extent unhedged. In addition, an appreciating U.S. dollar would be expected to make the exports of U.S. based companies less competitive, which may lead to a decline in their export revenues, if any, while a depreciating U.S. dollar would be expected to have the opposite effect. Moreover, when selecting investments for our investment funds that are denominated in U.S. dollars, an appreciating U.S. dollar may create opportunities to invest at more attractive U.S. dollar prices in certain countries outside of the United States, while a

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depreciating U.S. dollar would be expected to have the opposite effect. For our investments denominated in currencies other than the U.S. dollar, the depreciation in such currencies will generally contribute to the decrease in the valuation of such investments, to the extent unhedged, and adversely affect the U.S. dollar equivalent revenues of portfolio companies with substantial revenues denominated in such currencies, while the appreciation in such currencies would be expected to have the opposite effect. For the quarter ended March 31, 2019, the euro fell 2.2%, the British pound rose 2.2%, the Japanese yen fell 1.1%, and the Chinese renminbi rose 2.5%, respectively, relative to the U.S. dollar. For additional information regarding our foreign exchange rate risk, see "Management’s Discussion and Analysis of Financial Condition and Results of Operations—Quantitative and Qualitative Disclosure About Market Risk—Exchange Rate Risk" in our Annual Report.

Commodity Markets. Our Private Markets portfolio contains energy real asset investments, and certain of our other Private Markets and Public Markets strategies and products, including private equity, direct lending, special situations and CLOs, also have meaningful investments in the energy sector. The value of these investments is heavily influenced by the price of natural gas and oil. During the quarter ended March 31, 2019, the long-term price of WTI crude oil increased approximately 8%, while the long-term price of natural gas increased approximately 2%. The long-term price of WTI crude oil increased from approximately $50 per barrel to $54 per barrel, and the long-term price of natural gas increased from approximately $2.60 per mcf to $2.66 per mcf as of December 31, 2018 and March 31, 2019, respectively. When commodity prices decline or if a decline is not offset by other factors, we would expect the value of our energy real asset investments to be adversely impacted, to the extent unhedged. In addition, because we hold certain energy assets, which had a fair value of $0.7 billion as of March 31, 2019 on our balance sheet, these price movements would have an amplified impact on our financial results, to the extent unhedged, as we would directly bear the full extent of such gains or losses. For additional information regarding our energy real assets, see "Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies—Fair Value Measurements—Level III Valuation Methodologies—Real Asset Investments" and "Risk Factors—Risks Related to the Assets We Manage—Our funds and our firm through our balance sheet may make a limited number of investments, or investments that are concentrated in certain issuers, geographic regions or asset types, which could negatively affect our performance or the performance of our funds to the extent those concentrated assets perform poorly" in our Annual Report.

Business Conditions

Our segment revenues consist of fees, performance income and investment income. Our ability to grow our revenues depends in part on our ability to attract new capital and investors, our successful deployment of capital including from our balance sheet and our ability to realize investments at a profit.

Our ability to attract new capital and investors. Our ability to attract new capital and investors in our funds is driven, in part, by the extent to which they continue to see the alternative asset management industry generally, and our investment products specifically, as an attractive vehicle for capital appreciation or income. Since 2010, we have expanded into strategies such as energy, infrastructure, real estate, growth equity, core, credit and, through hedge fund partnerships, hedge funds. In several of these strategies, our first time funds have begun raising successor funds, and we expect the cost of raising such successor funds to be lower. We have also reached out to new fund investors, including retail and high net worth investors. However, fundraising continues to be competitive. While our Americas XII, Asian III, Real Estate Partners Americas II and Global Infrastructure Investors III funds exceeded the size of their respective predecessor funds, there is no assurance that fundraises for our other flagship private equity funds or for our newer strategies and their successor funds will experience similar success. If we are unable to successfully raise comparably sized or larger funds, our AUM, FPAUM, and associated fees attributable to new capital raised in future periods may be lower than in prior years. New capital organically raised in AUM for the quarters ended March 31, 2019 and 2018 were $6.3 billion and $10.6 billion, respectively. See "Risk Factors—Risks Related to Our Business—Our inability to raise additional or successor funds (or raise successor funds of a comparable size as our predecessor funds) could have a material adverse impact on our business" in our Annual Report.

Our ability to successfully deploy capital. Our ability to maintain and grow our revenue base is dependent upon our ability to successfully deploy the capital available to us and participate in capital markets transactions. Greater competition, high valuations, increased overall cost of credit and other general market conditions may impact our ability to identify and execute attractive investments. Additionally, because we seek to make investments that have an ability to achieve our targeted returns while taking on a reasonable level of risk, we may experience periods of reduced investment activity. We have a long-term investment horizon and the capital deployed in any one quarter may vary significantly from the capital deployed in any other quarter or the quarterly average of capital deployed in any given year. Reduced levels of transaction activity also tends to result in reduced potential future investment gains, lower transaction fees and lower fees for our Capital Markets business line, which may earn fees in the syndication of equity or debt. Capital invested for the quarters ended March 31, 2019 and 2018 were $5.5 billion and $5.4 billion, respectively, and syndicated capital for the quarters ended March 31, 2019 and 2018 were $0.3 billion and $0.6 billion, respectively.

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Our ability to realize investments. Challenging market and economic conditions may adversely affect our ability to exit and realize value from our investments and result in lower-than-expected returns. Although the equity markets are not the only means by which we exit investments, the strength and liquidity of the U.S. and relevant global equity markets generally, and the initial public offering market specifically, affect the valuation of, and our ability to successfully exit, our equity positions in our private equity portfolio companies in a timely manner. We may also realize investments through strategic sales. When financing is not available or becomes too costly, it may be more difficult to find a buyer that can successfully raise sufficient capital to purchase our investments. For the quarters ended March 31, 2019 and 2018, through exit activity in our investments, we realized carried interest of $0.3 billion and $0.2 billion, respectively.

Basis of Accounting

We consolidate the financial results of the KKR Group Partnerships and their consolidated entities, which include the accounts of our investment management and capital markets companies, the general partners of unconsolidated funds and vehicles, general partners of certain funds that are consolidated and their respective consolidated funds and certain other entities including certain CLOs and CMBS. We refer to CLOs and CMBS as collateralized financing entities ("CFEs").

When an entity is consolidated, we reflect the accounts of the consolidated entity, including its assets, liabilities, revenues, expenses, investment income, cash flows and other amounts, on a gross basis. While the consolidation of a consolidated fund or entity does not have an effect on the amounts of Net Income Attributable to KKR or KKR's stockholders' capital that KKR reports, the consolidation does significantly impact the financial statement presentation under GAAP. This is due to the fact that the accounts of the consolidated entities are reflected on a gross basis while the allocable share of those amounts that are attributable to third parties are reflected as single line items. The single line items in which the accounts attributable to third parties are recorded are presented as noncontrolling interests on the consolidated statements of financial condition and net income attributable to noncontrolling interests on the consolidated statements of operations.

For a further discussion of our consolidation policies, see Note 2 "Summary of Significant Accounting Policies" to the financial statements included elsewhere in this report.

Key Financial Measures Under GAAP

Revenues

Fees and Other

Fees and other consist primarily of (i) management and incentive fees from providing investment management services to unconsolidated funds, CLOs, other vehicles, and separately managed accounts; (ii) transaction fees earned in connection with successful investment transactions and from capital markets activities; (iii) monitoring fees from providing services to portfolio companies; (iv) expense reimbursements from certain investment funds and portfolio companies; (v) revenue earned by oil and gas-producing entities that are consolidated; and (vi) consulting fees earned by consolidated entities that employ non-employee operating consultants. These fees are based on the contractual terms of the governing agreements and are recognized when earned, which coincides with the period during which the related services are performed and in the case of transaction fees, upon closing of the transaction. Monitoring fees may provide for a termination payment following an initial public offering or change of control. These termination payments are recognized in the period when the related transaction closes.

Capital Allocation-Based Income

Capital allocation-based income is earned from those arrangements whereby KKR serves as general partner and includes income from KKR's capital interest as well as "carried interest" which entitles KKR to a disproportionate allocation of investment income from investment funds' limited partners.

For a further discussion of our revenue policies, see Note 2 "Summary of Significant Accounting Policies" to the financial statements included elsewhere in this report.

Expenses

Compensation and Benefits

Compensation and benefits expense includes cash compensation consisting of salaries, bonuses, and benefits, as well as equity-based compensation consisting of charges associated with the vesting of equity-based awards, carry pool allocations,

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and other performance-based income compensation. The amounts allocated to the carry pool and other performance-based income compensation are accounted for as compensatory profit-sharing arrangements and recorded as compensation and benefits expenses.

All employees and employees of certain consolidated entities receive a base salary that is paid by KKR or its consolidated entities, and is accounted for as compensation and benefits expense. These employees are also eligible to receive discretionary cash bonuses based on performance, overall profitability, and other matters. While cash bonuses paid to most employees are borne by KKR and certain consolidated entities and result in customary compensation and benefits expense, in the past cash bonuses that are paid to certain employees have been borne by KKR Holdings. These bonuses have historically been funded with distributions that KKR Holdings receives on KKR Group Partnership Units held by KKR Holdings but are not then passed on to holders of unvested units of KKR Holdings. Because employees are not entitled to receive distributions on units that are unvested, any amounts allocated to employees in excess of an employee's vested equity interests are reflected as employee compensation and benefits expense. These compensation charges are currently recorded based on the amount of cash expected to be paid by KKR Holdings. Because KKR makes only fixed quarterly dividends, the distributions made on KKR Group Partnership Units underlying any unvested KKR Holdings units are generally insufficient to fund annual cash bonus compensation to the same extent as in periods prior to the fourth quarter of 2015. In addition, substantially all remaining units in KKR Holdings have been allocated and, while subject to a 5 year vesting period, will become fully vested by 2021, thus decreasing the amount of distributions received by KKR Holdings that are available for annual cash bonus compensation. We, therefore, expect to pay all or substantially all of the cash bonus payments from KKR's cash from operations and the carry pool; although, from time to time, KKR Holdings may contribute to the cash bonus payments in the future. See "Risks Related to Our Business—If we cannot retain and motivate our principals and other key personnel and recruit, retain and motivate new principals and other key personnel, our business, results and financial condition could be adversely affected" in our Annual Report regarding the adequacy of such distributions to fund future discretionary cash bonuses.

KKR uses several methods, which are designed to yield comparable results, to allocate carried interest and other performance income compensation. With respect to KKR's investment funds that provide for carried interest without a preferred return, KKR allocates 40% of the carried interest received from such funds to its carry pool for employees and non-employee operating consultants. Beginning with the quarter ended September 30, 2016, for investment funds that provide for carried interest with a preferred return and have accrued carried interest as of June 30, 2016, KKR also includes 40% of the management fees that would have been subject to a management fee refund as performance income compensation. Because of the different ways management fees are refunded in preferred return and non-preferred return funds that provide for carried interest, this calculation of 40% of the portion of the management fees subject to refund for funds that have a preferred return is designed to allocate to compensation an amount comparable to the amount that would have been allocated to the carry pool had the fund not had a preferred return. Beginning with the quarter ended September 30, 2017, for then-current and future carry generating funds with a preferred return and no or minimal accrued carried interest as of June 30, 2017, KKR allocates 43% of the carried interest to the carry pool instead of 40% of carried interest. For impacted funds, the incremental 3% replaces the allocation of management fee refunds that would have been calculated for those funds and is designed, based on a historical financial analysis of certain investment funds, to allocate an amount for preferred return funds that is comparable to the management fee refunds that would have been allocated as performance income compensation for those funds. The percentage of carried interest, management fee refunds, and incentive fees allocable to the carry pool or as performance income compensation is subject to change from time to time. For a discussion of how management fees are refunded for preferred return funds and non-preferred funds see "—Fair Value Measurements—Recognition of Carried Interest in the Statement of Operations."

General, Administrative and Other

General, administrative and other expense consists primarily of professional fees paid to legal advisors, accountants, advisors and consultants, insurance costs, travel and related expenses, communications and information services, depreciation and amortization charges, expenses (including impairment charges) incurred by oil and gas-producing entities that are consolidated, costs incurred in connection with pursuing potential investments that do not result in completed transactions ("broken-deal expenses"), and other general operating expenses. A portion of these general administrative and other expenses, in particular broken-deal expenses, are borne by fund investors.

Investment Income (Loss)

Net Gains (Losses) from Investment Activities

Net gains (losses) from investment activities consist of realized and unrealized gains and losses arising from our investment activities as well as income earned from certain equity method investments. Fluctuations in net gains (losses) from

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investment activities between reporting periods is driven primarily by changes in the fair value of our investment portfolio as well as the realization of investments. The fair value of, as well as the ability to recognize gains from, our investments is significantly impacted by the global financial markets, which, in turn, affects the net gains (losses) from investment activities recognized in any given period. Upon the disposition of an investment, previously recognized unrealized gains and losses are reversed and an offsetting realized gain or loss is recognized in the current period. Since our investments are carried at fair value, fluctuations between periods could be significant due to changes to the inputs to our valuation process over time. For a further discussion of our fair value measurements and fair value of investments, see "—Critical Accounting Policies—Fair Value Measurements."

Dividend Income

Dividend income consists primarily of distributions that we and our consolidated investment funds receive from portfolio companies in which they invest. Dividend income is recognized primarily in connection with (i) dispositions of operations by portfolio companies, (ii) distributions of cash generated from operations from portfolio investments, and (iii) other significant refinancings undertaken by portfolio investments.

Interest Income

Interest income consists primarily of interest that is received on our credit instruments in which we and our consolidated funds and other entities invest as well as interest on our cash balances and other investments.

Interest Expense

Interest expense is incurred from debt issued by KKR, including debt issued by KFN, credit facilities entered into by KKR, debt securities issued by consolidated CFEs, and financing arrangements at our consolidated funds entered into primarily with the objective of managing cash flow. KFN's debt obligations are non-recourse to KKR beyond the assets of KFN. Debt securities issued by consolidated CFEs are supported solely by the investments held at the CFE and are not collateralized by assets of any other KKR entity. Our obligations under financing arrangements at our consolidated funds are generally limited to our pro rata equity interest in such funds. However, in some circumstances, we may provide limited guarantees of the obligations of our general partners in an amount equal to its pro rata equity interest in such funds. Our management companies bear no obligations with respect to financing arrangements at our consolidated funds. We also may provide other kinds of guarantees. See "—Liquidity."

Income Taxes

On July 1, 2018, we converted from a Delaware limited partnership to a Delaware corporation (the "Conversion"). Prior to the Conversion, KKR’s investment income and carried interest generally were not subject to U.S. corporate income taxes. Subsequent to the Conversion, all income earned by KKR is subject to U.S. corporate income taxes, resulting in an overall higher income tax expense (or benefit) in periods subsequent to the Conversion.

KKR & Co. Inc. is a corporation for U.S. federal income tax purposes and thus is subject to U.S. federal, state and local corporate income taxes at the entity level on KKR’s share of net taxable income.  In addition, the KKR Group Partnerships and certain of their subsidiaries operate in the United States as partnerships for U.S. federal income tax purposes and as corporate entities in certain non-U.S. jurisdictions.  These entities, in some cases, are subject to U.S. state or local income taxes or non-U.S. income taxes.  

Tax laws are complex and subject to different interpretations by the taxpayer and respective governmental taxing authorities. Significant judgment is required in determining tax expense and in evaluating tax positions including evaluating uncertainties. We review our tax positions quarterly and adjust our tax balances as new information becomes available.

For a further discussion of our income tax policies and further information about the impact of the Conversion, see Note 2 "Summary of Significant Accounting Policies" and Note 11 "Income Taxes" to the financial statements included elsewhere in this report.

Net Income (Loss) Attributable to Noncontrolling Interests

Net income (loss) attributable to noncontrolling interests primarily represents the ownership interests that certain third parties hold in entities that are consolidated in the financial statements as well as the ownership interests in our KKR Group Partnerships that are held by KKR Holdings. The allocable share of income and expense attributable to these interests is

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accounted for as net income (loss) attributable to noncontrolling interests. Given the consolidation of certain of our investment funds and the significant ownership interests in our KKR Group Partnerships held by KKR Holdings, we expect a portion of net income (loss) will continue to be attributed to noncontrolling interests in our business.

For a further discussion of our noncontrolling interests policies, see Note 2 "Summary of Significant Accounting Policies" to the financial statements included elsewhere in this report.

Key Segment and Other Operating and Performance Measures

The key performance measures that follow are used by management in making operational and resource deployment decisions as well as assessing the overall performance of KKR's businesses. KKR's segment reporting is presented prior to giving effect to the allocation of income (loss) between KKR & Co. Inc. and KKR Holdings L.P. and as such represents the business in total. In addition, KKR's segment reporting is presented without giving effect to the consolidation of the investment funds and CFEs that KKR manages as well as other consolidated entities that are not subsidiaries of KKR & Co. Inc.

We disclose certain financial measures in this report that are calculated and presented using methodologies other than in accordance with GAAP. We believe that providing these performance measures on a supplemental basis to our GAAP results is helpful to stockholders in assessing the overall performance of KKR's businesses. These financial measures should not be considered as a substitute for similar financial measures calculated in accordance with GAAP, if available. We caution readers that these non-GAAP financial measures may differ from the calculations of other investment managers, and as a result, may not be comparable to similar measures presented by other investment managers. Reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP, where applicable, are included within Note 14 "Segment Reporting" to the financial statements included elsewhere in this report and under "—Segment Balance Sheet."

Adjusted Shares

Adjusted shares are used as a measure of the total common equity ownership of KKR that is held by KKR & Co. Inc. (including equity awards issued under our Equity Incentive Plans, but excluding preferred stock), KKR Holdings, and other holders of securities exchangeable into Class A common stock of KKR & Co. Inc. and represent the fully diluted share count of Class A common stock using the if-converted method. We believe this measure is useful to stockholders as it provides an indication of the total common equity ownership of KKR as if all outstanding KKR Holdings units, equity awards issued under our Equity Incentive Plans and other exchangeable securities had been exchanged for Class A common stock of KKR & Co. Inc. The 6.75% Series A Preferred Stock ("Series A Preferred Stock") and 6.50% Series B Preferred Stock ("Series B Preferred Stock") are not exchangeable for Class A common stock of KKR & Co. Inc.

Adjusted Shares Eligible for Distribution

Adjusted shares eligible for distribution represents the portion of total adjusted shares that are eligible to receive a dividend. We believe this measure is useful to stockholders as it provides insight into the calculation of amounts available for distribution as dividends on a per share basis. Weighted average adjusted shares eligible for distribution is used in the calculation of after-tax distributable earnings per share.

After-tax Distributable Earnings

After-tax distributable earnings is a performance measure of KKR’s earnings on a segment basis excluding mark-to-market gains (losses). Starting with the second quarter of 2018, it is defined as the amount of net realized earnings of KKR for a given reporting period, after deducting equity-based compensation. KKR revised the definition of after-tax distributable earnings starting in the second quarter of 2018, because it reflects how the chief operating decision makers allocate resources and assess performance of KKR’s business. KKR believes that after-tax distributable earnings is useful to stockholders as it aligns KKR’s net realization performance with the manner in which KKR receives its revenues and determines the compensation of its employees. After-tax distributable earnings does not represent and is not used to calculate actual dividends under KKR’s dividend policy. Historically equity-based compensation expense relating to our Equity Incentive Plans was not reflected in our calculation of after-tax distributable earnings. Under KKR’s segment presentation, equity-based compensation expense is included in after-tax distributable earnings as a component of compensation expense in order to reflect the dilutive nature of these non-cash equity-based awards. For comparability, after-tax distributable earnings for the comparable prior periods have been calculated using this definition.

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Assets Under Management ("AUM")

Assets under management represent the assets managed or advised by KKR from which KKR is entitled to receive fees or a carried interest (either currently or upon deployment of capital), general partner capital, and assets managed or advised by strategic BDC partnership and hedge fund managers in which KKR holds a minority ownership interest. We believe this measure is useful to stockholders as it provides additional insight into the capital raising activities of KKR and its hedge fund managers and the overall activity in their investment funds and other managed capital. KKR calculates the amount of AUM as of any date as the sum of: (i) the fair value of the investments of KKR's investment funds; (ii) uncalled capital commitments from these funds, including uncalled capital commitments from which KKR is currently not earning management fees or carried interest; (iii) the fair value of investments in KKR's co-investment vehicles; (iv) the par value of outstanding CLOs (excluding CLOs wholly-owned by KKR); (v) KKR's pro rata portion of the AUM of hedge fund managers in which KKR holds a minority ownership interest; (vi) all AUM of the strategic BDC partnership with FS Investments; and (vii) the fair value of other assets managed by KKR. The pro rata portion of the AUM of hedge fund managers is calculated based on KKR’s percentage ownership interest in such entities multiplied by such entity’s respective AUM. KKR's definition of AUM is not based on any definition of AUM that may be set forth in the agreements governing the investment funds, vehicles or accounts that it manages or calculated pursuant to any regulatory definitions.

Book Value

Book value is a measure of the net assets of KKR’s reportable segment and is used by management primarily in assessing the unrealized value of KKR’s investments and other assets, including carried interest. We believe this measure is useful to stockholders as it provides additional insight into the assets and liabilities of KKR excluding the assets and liabilities that are allocated to noncontrolling interest holders and to the holders of the Series A and Series B Preferred Stock. Following the Conversion, KKR's segment balance sheet reflects KKR's tax assets and liabilities as prepared under GAAP.

Capital Invested

Capital invested is the aggregate amount of capital invested by (i) KKR’s investment funds, (ii) KKR's Principal Activities business line as a co-investment, if any, alongside KKR’s investment funds, and (iii) KKR's Principal Activities business line in connection with a syndication transaction conducted by KKR's Capital Markets business line, if any. Capital invested is used as a measure of investment activity at KKR during a given period. We believe this measure is useful to stockholders as it provides a measure of capital deployment across KKR’s business lines. Capital invested includes investments made using investment financing arrangements like credit facilities, as applicable.  Capital invested excludes (i) investments in certain leveraged credit strategies, (ii) capital invested by KKR’s Principal Activities business line that is not a co-investment alongside KKR’s investment funds, and (iii) capital invested by KKR’s Principal Activities business line that is not invested in connection with a syndication transaction by KKR’s Capital Markets business line. Capital syndicated by KKR's Capital Markets business line to third parties other than KKR’s investment funds or Principal Activities business line is not included in capital invested.  See also syndicated capital.

Fee Paying AUM ("FPAUM")

Fee paying AUM represents only the AUM from which KKR is entitled to receive management fees. We believe this measure is useful to stockholders as it provides additional insight into the capital base upon which KKR earns management fees. FPAUM is the sum of all of the individual fee bases that are used to calculate KKR's and its hedge fund and BDC partnership management fees and differs from AUM in the following respects: (i) assets and commitments from which KKR is not entitled to receive a management fee are excluded (e.g., assets and commitments with respect to which it is entitled to receive only carried interest or is otherwise not currently entitled to receive a management fee) and (ii) certain assets, primarily in its private equity funds, are reflected based on capital commitments and invested capital as opposed to fair value because fees are not impacted by changes in the fair value of underlying investments.

Fee Related Earnings ("FRE")

Fee related earnings is a supplemental measure of earnings of KKR on a segment basis before performance income and investment income. KKR believes this measure may be useful to stockholders as it provides additional insight into the profitability of KKR’s fee generating management companies and capital markets businesses. Starting with the second quarter of 2018, fee related earnings is calculated as KKR’s total Fees and Other, Net, multiplied by KKR’s segment operating margin. For purposes of the fee related earnings calculation, segment operating margin is calculated as Segment Operating Earnings, before equity-based compensation, divided by total segment revenues. Historically, fee related earnings was calculated as operating earnings of KKR on a segment basis before performance income, related performance income compensation and

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investment income. KKR revised the definition of fee related earnings starting in the second quarter of 2018 to provide supplemental information about fees generated from KKR’s management companies and capital markets business because KKR believes it provides increased transparency on KKR’s underlying financial results to the stockholders. Fee related earnings for the comparable prior periods have been calculated using this definition.

Income Taxes Paid

Income taxes paid represents the estimated total tax impact on KKR’s distributable earnings before taxes. This amount is the implied amount of income taxes that would be paid assuming that all pre-tax distributable earnings were allocated to KKR & Co. Inc., which would occur following an exchange of all KKR Holdings units for Class A common stock of KKR & Co. Inc. Income taxes paid also includes amounts paid pursuant to the tax receivable agreement.

Segment Operating Earnings

Segment operating earnings represents segment earnings before interest expense, preferred dividends, income attributable to noncontrolling interests and income taxes paid. We believe segment operating earnings is useful to stockholders as it provides a supplemental measure of our operating performance without taking into account items that we do not believe relate directly to operations.

Syndicated Capital

Syndicated capital is the aggregate amount of capital in transactions originated by KKR and its investment funds and carry-yielding co-investment vehicles, which has been distributed to third parties, generally in exchange for a fee. It does not include (i) capital invested in such transactions by KKR investment funds and carry-yielding co-investment vehicles, which is instead reported in capital invested, (ii) debt capital that is arranged as part of the acquisition financing of transactions originated by KKR investment funds, and (iii) debt capital that is either underwritten or arranged on a best efforts basis. Syndicated capital is used as a measure of investment activity for KKR during a given period, and we believe that this measure is useful to stockholders as it provides additional insight into levels of syndication activity in KKR's Capital Markets business line and across KKR's investment platform.

Uncalled Commitments

Uncalled commitments are used as a measure of unfunded capital commitments that KKR’s investment funds and carry-paying co-investment vehicles have received from partners to contribute capital to fund future investments. We believe this measure is useful to stockholders as it provides additional insight into the amount of capital that is available to KKR’s investment funds to make future investments. Uncalled commitments are not reduced for investments completed using fund-level investment financing arrangements.

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Unaudited Consolidated Results of Operations

The following is a discussion of our consolidated results of operations for the three months ended March 31, 2019 and 2018. You should read this discussion in conjunction with the financial statements and related notes included elsewhere in this report. For a more detailed discussion of the factors that affected the results of operations of our reportable segment in these periods, see "—Segment Analysis."

Three months ended March 31, 2019 compared to three months ended March 31, 2018

	Three Months Ended
	March 31, 2019			March 31, 2018			Change
	($ in thousands)
Revenues
Fees and Other	$	372,548		$	394,394		$	(21,846	)
Capital Allocation-Based Income	814,932			78,212			736,720
Total Revenues	1,187,480			472,606			714,874
Expenses
Compensation and Benefits	544,562			298,136			246,426
Occupancy and Related Charges	14,690			14,215			475
General, Administrative and Other	169,515			124,250			45,265
Total Expenses	728,767			436,601			292,166
Investment Income (Loss)
Net Gains (Losses) from Investment Activities	1,203,878			472,800			731,078
Dividend Income	22,625			33,064			(10,439		)
Interest Income	358,511			298,256			60,255
Interest Expense	(249,088		)	(219,590		)	(29,498		)
Total Investment Income (Loss)	1,335,926			584,530			751,396
Income (Loss) Before Taxes	1,794,639			620,535			1,174,104
Income Tax Expense (Benefit)	167,593			17,641			149,952
Net Income (Loss)	1,627,046			602,894			1,024,152
Net Income (Loss) Attributable to Redeemable Noncontrolling Interests	—			25,674			(25,674		)
Net Income (Loss) Attributable to Noncontrolling Interests	917,727			398,777			518,950
Net Income (Loss) Attributable to KKR & Co. Inc.	709,319			178,443			530,876
Series A Preferred Stock Dividends	5,822			5,822			—
Series B Preferred Stock Dividends	2,519			2,519			—
Net Income (Loss) Attributable to KKR & Co. Inc. Class A Common Stockholders	$	700,978		$	170,102		$	530,876

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Revenues

For the three months ended March 31, 2019 and 2018, revenues consisted of the following:

	Three Months Ended
	March 31, 2019			March 31, 2018			Change
	($ in thousands)
Management Fees	$	188,408		$	187,727		$	681
Fee Credits	(103,477		)	(29,053		)	(74,424		)
Transaction Fees	188,203			158,653			29,550
Monitoring Fees	25,651			17,586			8,065
Incentive Fees	—			13,805			(13,805		)
Expense Reimbursements	44,060			20,211			23,849
Oil and Gas Revenue	13,175			14,507			(1,332		)
Consulting Fees	16,528			10,958			5,570
Total Fees and Other	372,548			394,394			(21,846		)
Carried Interest	694,383			62,747			631,636
General Partner Capital Interest	120,549			15,465			105,084
Total Capital Allocation-Based Income	814,932			78,212			736,720
Total Revenues	$	1,187,480		$	472,606		$	714,874

Total Fees and Other for the three months ended March 31, 2019 decreased compared to the three months ended March 31, 2018 primarily as a result of an increase in fee credits and a decrease in incentive fees, partially offset by an increase in expense reimbursements, transaction fees, and monitoring fees.

Fee credits increased overall as a result of a higher level of transaction and monitoring fees in our Private Markets and Public Markets business lines. Fee credits owed to consolidated investment funds are eliminated upon consolidation under GAAP. Transaction and monitoring fees earned that generate these fee credits are not eliminated upon consolidation because those fees are earned from KKR portfolio companies which are not consolidated. Accordingly, certain transaction and monitoring fees are reflected in revenues without a corresponding fee credit.

For a more detailed discussion of the factors that affected our transaction fees and monitoring fees during the period, see "—Segment Results—Segment Revenues."

The increase in management fees during the three months ended March 31, 2019 compared to the prior period was primarily due to new management fees earned from our Global Infrastructure Fund III when it entered its investment period in the second quarter of 2018. Partially offsetting this increase was a decrease in management fees and incentive fees related to our BDC platform as a result of the FS Investments Transaction that closed in the second quarter of 2018. KKR reports its investment in FS/KKR Advisor using the equity method of accounting, and as such, KKR reflects its allocation of the net income of this entity as investment income. Accordingly, the management fees and incentive fees of the BDCs that had been reported in fees and other revenues prior to the closing of the FS Investment Transaction are now reflected on a net basis as part of our allocation of the net income of this entity within investment income. This decreased our reported gross management fees and incentive fees when compared to the prior period.

The increase in carried interest and general partner capital interest during the three months ended March 31, 2019 was due primarily to a higher level of net appreciation in the value of our private equity portfolio as compared to the three months ended March 31, 2018.

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Compensation and Benefits Expenses

The increase was primarily due to a higher level of compensation primarily reflecting a higher level of appreciation in the value of our private equity portfolio during the three months ended March 31, 2019 compared to the three months ended March 31, 2018. This increase was partially offset by lower equity-based compensation charges resulting from a decrease in the weighted average number of unvested shares outstanding.

General, Administrative and Other Expenses

The increase during the three months ended March 31, 2019 compared to the prior period was primarily due to (i) an increase in expenses reimbursable by investment funds, (ii) a higher level of expenses that are creditable to our investment funds, which includes broken-deal expenses and (iii) an increase in depreciation, depletion and amortization of our consolidated oil and gas producing entities as compared to the prior period. These increases were partially offset by a lower level of expenses incurred from our consolidated investment funds during the three months ended March 31, 2019 as compared to the prior period.

Net Gains (Losses) from Investment Activities

The following is a summary of net gains (losses) from investment activities:

	Three Months Ended
	March 31, 2019			March 31, 2018
	($ in thousands)
Private Equity	$	988,193		$	174,622
Credit	(9,207		)	59,413
Investments of Consolidated CFEs	222,827			(74,919		)
Real Assets	119,128			72,254
Equity Method - Other	177,039			144,814
Other Investments	(28,911		)	(157,834		)
Debt Obligations and Other	(267,148		)	108,688
Other Net Gains (Losses) from Investment Activities	1,957			145,762
Net Gains (Losses) from Investment Activities	$	1,203,878		$	472,800

Net Gains (Losses) from Investment Activities for the three months ended March 31, 2019

The net gains from investment activities for the three months ended March 31, 2019 were comprised of net realized gains of $129.8 million and net unrealized gains of $1,074.1 million.

Realized Gains and Losses from Investment Activities

For the three months ended March 31, 2019, net realized gains related primarily to realized gains on (i) the final sale of our investment in Sedgwick Claims Management Services, Inc. (financial services sector), (ii) the sale of real estate investments held through certain consolidated entities, and (iii) the sale of assets in our consolidated special situations funds.

Unrealized Gains from Investment Activities

For the three months ended March 31, 2019, unrealized gains were driven primarily by (i) mark-to-market gains on our investment in First Data Corporation (NYSE: FDC) which is held as a co-investment by KKR, (ii) mark-to-market gains in portfolio companies in our core investment strategy, the most significant of which were PetVet Care Centers, LLC (health care sector), Heartland Dental, LLC (health care sector), and The Bay Clubs Company, LLC (hotels/leisure sector), and (iii) mark-to-market gains on our growth equity investments held by KKR and certain consolidated entities. Certain of our investment funds also hold an investment in First Data Corporation; these funds are not consolidated and as such, unrealized gains and losses relating to these funds' investments are not reflected in net gains (losses) from investment activities.

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Unrealized Losses from Investment Activities

Partially offsetting the unrealized gains above were unrealized losses relating to (i) mark-to-market losses on alternative credit assets held in our consolidated special situations funds and our investment in Mr. Cooper Group Inc. (NASDAQ: COOP) and (ii) the reversal of previously recognized unrealized gains relating to the realization activity described above.

For a discussion of other factors that affected KKR's realized investment income, see "—Segment Analysis."

Net Gains (Losses) from Investment Activities for the three months ended March 31, 2018

The net gains from investment activities for the three months ended March 31, 2018 were comprised of net realized gains of $30.4 million and net unrealized gains of $442.4 million.

Realized Gains from Investment Activities

For the three months ended March 31, 2018, realized gains related primarily to (i) the partial sale of growth equity investments held through consolidated funds and (ii) the partial sale of an investment in K Twin Towers (real estate sector) held by KKR.

Realized Losses from Investment Activities

Partially offsetting these realized gains were realized losses primarily relating to the sale of (i) alternative credit assets in our consolidated special situations funds and (ii) the sale of investments held by our consolidated CLOs.

Unrealized Gains from Investment Activities

For the three months ended March 31, 2018, net unrealized gains were driven primarily by (i) mark-to-market gains in our growth equity investments held by KKR and certain consolidated entities, (ii) gains in our private equity portfolio held directly by KKR, the most significant of which were gains on our investments in USI, Inc. (financial services sector) and WMIH Corp. (name has since changed to Mr. Cooper Group Inc.), and (iii) mark-to-market gains on alternative credit assets in our consolidated special situations funds.

Unrealized Losses from Investment Activities

Partially offsetting the unrealized gains above were unrealized losses relating to mark-to-market losses on our private equity portfolio held by KKR, the most significant of which was our co-investment in First Data Corporation.

For a discussion of other factors that affected KKR's realized investment income, see "—Segment Analysis."

Dividend Income

During the three months ended March 31, 2019, the most significant dividends received included $14.7 million from our consolidated real estate funds and real estate investments held directly by KKR, $4.5 million from our consolidated special situations funds and $2.4 million from our consolidated energy funds. During the three months ended March 31, 2018, the most significant dividends received included $11.4 million from our consolidated real estate funds, $6.2 million from our consolidated special situations funds and KFN and $5.6 million from our private equity investment in Internet Brands, Inc. (technology sector). Significant dividends from portfolio companies are generally not recurring quarterly dividends, and while they may occur in the future, their size and frequency are variable. For a discussion of other factors that affected KKR's dividend income, see "—Segment Analysis—Segment Results—Segment Revenues—Principal Activities Revenues—Realized Investment Income."

Interest Income

The increase in interest income during the three months ended March 31, 2019 compared to the three months ended March 31, 2018 was primarily due to a higher level of interest earned related to (i) the closing of six additional CLOs subsequent to the three months ended March 31, 2018, (ii) an increase in the amount of capital deployed in investments held by KKR Real Estate Finance Trust Inc. ("KREF"), a NYSE-listed real estate investment trust ("REIT"), which is consolidated and (iii) an increase in reference benchmark interest rates as compared to the prior period which impacted the amount of interest earned across various investment vehicles, most notably our CLOs and KREF. These increases were partially offset by a

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decrease in interest income as a result of the sale of KKR's beneficial interest in four consolidated CMBS vehicles held by KREF that resulted in the deconsolidation of such vehicles subsequent to March 31, 2018. For a discussion of other factors that affected KKR's interest income, see "—Segment Analysis—Segment Results—Segment Revenues—Principal Activities Revenues—Realized Investment Income."

Interest Expense

The increase in interest expense during the three months ended March 31, 2019 compared to the three months ended March 31, 2018 was primarily due to the impact of (i) the closing of six additional CLOs subsequent to the three months ended March 31, 2018, (ii) increased borrowings under KREF's lending facilities used to finance investments in commercial loans and (iii) an increase in reference benchmark interest rates as compared to the prior period which impacted the amount of interest expense incurred primarily in our CLOs and KREF. These increases were partially offset by (i) a decrease in interest expense incurred as a result of the sale of KKR's beneficial interest in four consolidated CMBS vehicles held by KREF that resulted in the deconsolidation of such vehicles subsequent to March 31, 2018 and (ii) a decrease in interest expense associated with certain notes issued by consolidated CLOs being called and repaid subsequent to March 31, 2018. For a discussion of other factors that affected KKR's interest expense, see "—Segment Analysis—Segment Results—Segment Expenses—Interest Expense."

Income (Loss) Before Taxes

The increase in income (loss) before taxes during the three months ended March 31, 2019 compared to the three months ended March 31, 2018 was due primarily to a higher level of net gains from investment activities and a higher level of capital allocation-based income, partially offset by a higher level of compensation and benefits expense, in each case as described above.

Income Taxes

Income tax expense for the three months ended March 31, 2019 increased compared to the three months ended March 31, 2018 primarily as a result of the Conversion. Prior to the Conversion, KKR & Co. L.P.’s investment income and carried interest generally were not subject to U.S. corporate income taxes. Subsequent to the Conversion, all income earned by KKR & Co. Inc. is subject to U.S. corporate income taxes, which we believe will result in an overall higher income tax expense (or benefit) when compared to periods prior to the Conversion. Our effective tax rate under GAAP for the three months ended March 31, 2019 was 9.34%. For a discussion of factors that impacted KKR's tax provision, see Note 11 "Income Taxes" to the financial statements included elsewhere in this report.

Net Income (Loss) Attributable to Noncontrolling Interests

Net income (loss) attributable to noncontrolling interests for the three months ended March 31, 2019 relates primarily to net income attributable to KKR Holdings representing its ownership interests in the KKR Group Partnerships as well as third-party limited partner interests in those investment funds that we consolidate. The increase from the prior period is due primarily to higher amounts attributed to KKR Holdings in connection with a higher level of income recognized for the three months ended March 31, 2019 as compared to the prior period as well as a higher level of income recorded by certain consolidated fund entities that is attributable to third party limited partners. This increase was partially offset by a reduction in KKR Holdings' ownership percentage in the KKR Group Partnerships as compared to the prior period.

Net Income (Loss) Attributable to KKR & Co. Inc.

The increase in net income (loss) attributable to KKR & Co. Inc. for the three months ended March 31, 2019 compared to the three months ended March 31, 2018 was primarily due to a higher level of net gains from investment activities and a higher level of capital allocation-based income as compared to the prior period, partially offset by an increase in income attributable to noncontrolling interests, and to a lesser extent, increased compensation and benefits and income tax expense in the current period as compared to the prior period.

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Consolidated Statements of Financial Condition

The following table provides the Consolidated Statements of Financial Condition on a GAAP basis as of March 31, 2019 and December 31, 2018.

(Amounts in thousands, except per share amounts)
	As of		As of
	March 31, 2019		December 31, 2018
Assets
Cash and Cash Equivalents	$	1,808,368	$	1,751,287
Investments	45,795,254		44,907,982
Other	4,400,397		4,084,106
Total Assets	52,004,019		50,743,375
Liabilities and Equity
Debt Obligations	22,262,369		22,341,192
Other Liabilities	3,533,809		3,019,574
Total Liabilities	25,796,178		25,360,766
Redeemable Noncontrolling Interests	—		1,122,641
Stockholders' Equity
Preferred Stock	482,554		482,554
KKR & Co. Inc. Stockholders' Equity - Common Stockholders	8,839,817		8,167,056
Noncontrolling Interests	16,885,470		15,610,358
Total Equity	26,207,841		24,259,968
Total Liabilities and Equity	$	52,004,019	$	50,743,375
KKR & Co. Inc. Stockholders' Equity Per Outstanding Share of Class A Common Stock	$	16.56	$	15.27

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Consolidated Statements of Cash Flows

The accompanying consolidated statements of cash flows include the cash flows of our consolidated entities which include certain consolidated investment funds and CFEs notwithstanding the fact that we may hold only a minority economic interest in those funds and CFEs.

The assets of our consolidated funds and CFEs, on a gross basis, can be substantially larger than the assets of our business and, accordingly, could have a substantial effect on the cash flows reflected in our consolidated statements of cash flows. The primary cash flow activities of our consolidated funds and CFEs involve: (i) capital contributions from fund investors; (ii) using the capital of fund investors to make investments; (iii) financing certain investments with indebtedness; (iv) generating cash flows through the realization of investments; and (v) distributing cash flows from the realization of investments to fund investors. Because our consolidated funds and CFEs are treated as investment companies for accounting purposes, certain of these cash flow amounts are included in our cash flows from operations.

Net Cash Provided (Used) by Operating Activities

Our net cash provided (used) by operating activities was $0.2 billion and $(2.2) billion during the three months ended March 31, 2019 and 2018, respectively. These amounts primarily included: (i) proceeds from investments net of investments purchased of $0.3 billion and $(2.7) billion during the three months ended March 31, 2019 and 2018, respectively; (ii) net realized gains (losses) on investments of $129.8 million and $30.4 million during the three months ended March 31, 2019 and 2018, respectively; (iii) change in unrealized gains (losses) on investments of $1,074.1 million and $442.4 million during the three months ended March 31, 2019 and 2018 respectively and (iv) capital allocation-based income of $814.9 million and $78.2 million during the three months ended March 31, 2019, and 2018, respectively. Investment funds are, for GAAP purposes, investment companies and reflect their investments and other financial instruments at fair value.

Net Cash Provided (Used) by Investing Activities

Our net cash provided (used) by investing activities was $(19.9) million and $(8.7) million during the three months ended March 31, 2019 and 2018, respectively. Our investing activities included: (i) the purchase of fixed assets of $(19.5) million and $(8.7) million during the three months ended March 31, 2019 and 2018, respectively and (ii) development of oil and natural gas properties of $(0.5) million for the three months ended March 31, 2019.

Net Cash Provided (Used) by Financing Activities

Our net cash provided (used) by financing activities was $7.2 million and $1,218.2 million during the three months ended March 31, 2019 and 2018, respectively. Our financing activities primarily included: (i) distributions to, net of contributions by, our noncontrolling and redeemable noncontrolling interests of $0.3 billion and $0.5 billion during the three months ended March 31, 2019 and 2018, respectively; (ii) proceeds received net of repayment of debt obligations of $(0.2) billion and $0.8 billion during the three months ended March 31, 2019 and 2018, respectively; (iii) common stock dividends of $(66.6) million and $(82.8) million during the three months ended March 31, 2019 and 2018, respectively; (iv) repurchases of Class A common stock of $(28.6) million during the three months ended March 31, 2019 and (v) preferred stock dividends of $(8.3) million during the three months ended March 31, 2019 and 2018.

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Segment Analysis

The following is a discussion of the results of our business on a segment basis for the three months ended March 31, 2019 and 2018. You should read this discussion in conjunction with the information included under "—Basis of Accounting—Key Segment and Other Operating and Performance Measures" and the financial statements and related notes included elsewhere in this report.

Segment Results

We operate through one operating and reportable segment with four business lines. The following table sets forth information regarding KKR's segment results and certain key operating metrics as of and for the three months ended March 31, 2019 and 2018.

Three months ended March 31, 2019 compared to three months ended March 31, 2018

	Three Months Ended
	March 31, 2019			March 31, 2018			Change
	($ in thousands)
Segment Revenues
Fees and Other, Net
Management Fees	$	292,296		$	251,585		$	40,711
Transaction Fees	186,727			156,845			29,882
Monitoring Fees	25,651			17,530			8,121
Fee Credits	(107,416		)	(43,774		)	(63,642		)
Total Fees and Other, Net	397,258			382,186			15,072
Realized Performance Income (Loss)
Carried Interest	330,345			202,555			127,790
Incentive Fees	19,537			16,407			3,130
Total Realized Performance Income (Loss)	349,882			218,962			130,920
Realized Investment Income (Loss)
Net Realized Gains (Losses)	44,712			7,875			36,837
Interest Income and Dividends	58,207			72,577			(14,370		)
Total Realized Investment Income (Loss)	102,919			80,452			22,467
Total Segment Revenues	850,059			681,600			168,459
Segment Expenses
Compensation and Benefits (1)	340,286			300,480			39,806
Occupancy and Related Charges	13,957			13,583			374
Other Operating Expenses	74,910			57,905			17,005
Total Segment Expenses	429,153			371,968			57,185
Segment Operating Earnings	420,906			309,632			111,274
Interest Expense	44,130			50,192			(6,062		)
Preferred Dividends	8,341			8,341			—
Income (Loss) Attributable to Noncontrolling Interests	359			1,203			(844		)
Income Taxes Paid	53,993			14,168			39,825
After-tax Distributable Earnings	$	314,083		$	235,728		$	78,355

(1) Includes equity-based compensation of $54,885 and $67,796 for the three months ended March 31, 2019 and 2018, respectively.

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Segment Revenues

The following sections discuss revenues for each of our business lines on a disaggregated basis for the three months ended March 31, 2019 and 2018.

Private Markets Revenues

The following table presents Fees and Other, Net, and Realized Performance Income in the Private Markets business line for the three months ended March 31, 2019 and 2018:

	Three Months Ended
	March 31, 2019			March 31, 2018			Change
	($ in thousands)
Fees and Other, Net
Management Fees	$	183,221		$	158,190		$	25,031
Transaction Fees	99,017			46,689			52,328
Monitoring Fees	25,651			17,530			8,121
Fee Credits	(82,342		)	(41,343		)	(40,999		)
Total Fees and Other, Net	225,547			181,066			44,481
Realized Performance Income (Loss)
Carried Interest	330,345			202,555			127,790
Incentive Fees	675			—			675
Total Realized Performance Income (Loss)	$	331,020		$	202,555		$	128,465

Fees and Other, Net

The increase for the three months ended March 31, 2019 as compared to the three months ended March 31, 2018 was primarily due to (i) an increase in transaction fees, partially offset by a corresponding increase in fee credits and (ii) an increase in management fees.

The increase in transaction fees was primarily attributable to an increase in the number of transaction fee-generating investments. During the three months ended March 31, 2019, there were 15 transaction fee-generating investments that paid an average fee of $6.6 million compared to 9 transaction fee-generating investments that paid an average fee of $5.2 million during the three months ended March 31, 2018. For the three months ended March 31, 2019, approximately 45% of these transaction fees were paid by companies located in North America, 42% were paid from companies in the Asia-Pacific region and 13% were paid from companies located in Europe. Transaction fees vary by investment based upon a number of factors, the most significant of which are transaction size, the particular agreements as to the amount of the fees, the complexity of the transaction, and KKR's role in the transaction. Additionally, transaction fees are generally not earned with respect to energy and real estate investments. The increase in fee credits is due primarily to a higher level of transaction fees which are shared with fund investors.

The increase in management fees was primarily due to management fees earned from our Global Infrastructure Fund III when it entered its investment period in the second quarter of 2018 and increased capital invested in our core investment strategy, for which fees are earned on invested capital. This net increase was partially offset by decreases due to management fees calculated based on lower levels of invested capital as a result of realizations primarily in our European Fund III, North America Fund XI and 2006 Fund.

Recurring monitoring fees increased $8.1 million, which was primarily the result of an increase in both the size and number of portfolio companies paying monitoring fees. For the three months ended March 31, 2019, we had 56 portfolio companies that were paying an average monitoring fee of $0.5 million compared with 54 portfolio companies that were paying an average monitoring fee of $0.3 million for the three months ended March 31, 2018. There were no termination payments for the three months ended March 31, 2019 and 2018. These termination payments may occur in the future; however, they are infrequent in nature and are generally correlated with the IPO and other realization activity in our private equity portfolio, and they are expected to continue to be smaller in size and number compared to prior periods.

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Realized Performance Income

The following table presents realized carried interest by investment vehicle for the three months ended March 31, 2019 and 2018:

	Three Months Ended March 31,
	2019		2018
	($ in thousands)
North America Fund XI	$	186,710	$	35,450
European Fund III	58,505		11,993
Co-Investment Vehicles and Other	38,337		1,669
2006 Fund	28,647		125,950
Core Investment Vehicles	14,449		—
Real Estate Partners Americas	2,785		143
Asian Fund	912		10,566
Asian Fund II	—		16,346
European Fund II	—		438
Total Realized Carried Interest (1)	$	330,345	$	202,555

(1) The above table excludes any funds for which there was no realized carried interest during either of the periods presented.

Realized carried interest for the three months ended March 31, 2019 consisted primarily of realized gains from the sale of Sedgwick Claims Management Services, Inc. and the partial sales of United Group B.V. (telecom) and GoDaddy Inc. (NYSE: GDDY).

Realized carried interest for the three months ended March 31, 2018, consisted primarily of realized gains from the partial sales of Weld North (education sector) and GoDaddy Inc. and a dividend received from Internet Brands, Inc.

Public Markets Revenues

The following table presents Fees and Other, Net, and Realized Performance Income in the Public Markets business line for the three months ended March 31, 2019 and 2018:

	Three Months Ended
	March 31, 2019			March 31, 2018			Change
	($ in thousands)
Fees and Other, Net
Management Fees	$	109,075		$	93,395		$	15,680
Transaction Fees	27,456			2,558			24,898
Fee Credits	(25,074		)	(2,431		)	(22,643		)
Total Fees and Other, Net	111,457			93,522			17,935
Realized Performance Income (Loss)
Carried Interest	—			—			—
Incentive Fees	18,862			16,407			2,455
Total Realized Performance Income (Loss)	$	18,862		$	16,407		$	2,455

Fees and Other, Net

The increase for the three months ended March 31, 2019 compared to the prior period was primarily due to (i) an increase in transaction fees partially offset by an increase in fee credits, and (ii) an increase in management fees.

The increase in transaction fees was primarily attributable to an increase in the average size of transaction fee-generating investments during the period.

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The increase in management fees was primarily due to an increase in fees earned from BDCs advised by FS/KKR Advisor, driven primarily by the completion of the FS Investments Transaction in the second quarter of 2018 and increased fees from our CLOs and leveraged credit strategies as a result of greater overall FPAUM. On a segment basis, KKR's pro rata income from our BDC platform, which is an equity method investment, is included in management fees and incentive fees. On a GAAP basis, such amounts are included in net gains from investment activities.

Realized Performance Income

The increase for the three months ended March 31, 2019 compared to the prior period was primarily attributable to higher incentive fees received from BDCs advised by FS/KKR Advisor.

Capital Markets Revenues

The following table presents Transaction Fees in the Capital Markets business line for the three months ended March 31, 2019 and 2018:

	Three Months Ended
	March 31, 2019		March 31, 2018		Change
	($ in thousands)
Transaction Fees	$	60,254	$	107,598	$	(47,344	)

Transaction fees decreased due primarily to a decrease in both the size and number of capital markets transactions for the three months ended March 31, 2019, compared to the three months ended March 31, 2018. Overall, we completed 41 capital markets transactions for the three months ended March 31, 2019, of which 6 represented equity offerings and 35 represented debt offerings, as compared to 46 transactions for the three months ended March 31, 2018, of which 4 represented equity offerings and 42 represented debt offerings. We earned fees in connection with underwriting, syndication and other capital markets services. While each of the capital markets transactions that we undertake in this business line is separately negotiated, our fee rates are generally higher with respect to underwriting or syndicating equity offerings than with respect to debt offerings, and the amount of fees that we earn for similar transactions generally correlates with overall transaction sizes. Our capital markets fees are generated in connection with our Private Markets and Public Markets business lines as well as from third-party companies. For the three months ended March 31, 2019, approximately 56% of our transaction fees were earned from unaffiliated third parties as compared to approximately 36% for the three months ended March 31, 2018. Our transaction fees are comprised of fees earned from North America, Europe, and the Asia-Pacific region. For the three months ended March 31, 2019, approximately 30% of our transaction fees were generated outside of North America as compared to approximately 17% for the three months ended March 31, 2018. Our Capital Markets business line is dependent on the overall capital markets environment, which is influenced by equity prices, credit spreads, and volatility. Our Capital Markets business line does not generate management or monitoring fees.

Principal Activities Revenues

The following table presents Realized Investment Income in the Principal Activities business line for the three months ended March 31, 2019 and 2018:

	Three Months Ended
	March 31, 2019		March 31, 2018		Change
	($ in thousands)
Realized Investment Income (Loss)
Net Realized Gains (Losses)	$	44,712	$	7,875	$	36,837
Interest Income and Dividends	58,207		72,577		(14,370		)
Total Realized Investment Income (Loss)	$	102,919	$	80,452	$	22,467

Realized Investment Income

The increase is primarily due to an increased level of net realized gains, partially offset by a decrease in interest income and dividends during the three months ended March 31, 2019, compared to the prior period.

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For the three months ended March 31, 2019, net realized gains were comprised of gains primarily from the sale of Private Markets investments including the sale of our investments in Sedgwick Claims Management Services, Inc., United Group B.V. and Cylance, Inc. (technology sector).

    For the three months ended March 31, 2018, net realized gains were primarily comprised of gains from the sale of Private Markets investments including the sales or partial sales of our investments in Weld North, K Twin Towers, and GoDaddy, Inc., as well as the sale of our alternative credit investment in Algeco Scotsman (industrial sector). These gains were partially offset by losses on the sale of certain investments in our special situations and direct lending funds.

The net decrease in interest income and dividends for the three months ended March 31, 2019 compared to the prior period is due to a lower level of interest income in alternative credit and our Capital Markets business line and a lower level of dividend income in our Private Markets business line. These decreases were partially offset by increased interest income at our CLOs.

For the three months ended March 31, 2019, interest income and dividends were comprised of (i) $42.3 million of interest income which consists primarily of interest that is received from our Public Markets investments including CLOs and other credit investments and to a lesser extent our India debt financing company and our cash balances and (ii) $15.9 million of dividend income from distributions received primarily through our energy investments and real estate investments including our investment in KREF.

For the three months ended March 31, 2018, interest income and dividends were comprised of (i) $40.8 million of interest income which consists primarily of interest that is received from our Public Markets investments including CLOs and other credit investments and to a lesser extent our capital markets business and our cash balances and (ii) $31.8 million of dividend income from distributions received primarily through our private equity investments and real estate investments including our investment in KREF.

Subsequent to March 31, 2019, we completed, or expect to complete sales, partial sales or secondary sales with respect to certain private equity portfolio companies and other investments as well as other realization activities such as the receipt of dividends and interest income across our broader portfolio. These realization activities, if and when completed, are expected to result in realized performance income and realized investment income of approximately $200 million. Some of these transactions are not complete, and are subject to the satisfaction of closing conditions; there can be no assurance if or when any of these transactions will be completed.

Segment Expenses

Compensation and Benefits

The increase for the three months ended March 31, 2019 compared to the prior period was due primarily to higher compensation recorded in connection with higher total segment revenues partially offset by lower equity-based compensation charges resulting from a decrease in the weighted average number of unvested shares outstanding.

Occupancy and Other Operating Expenses

The increase for the three months ended March 31, 2019 compared to the prior period is primarily due to a higher level of expenses that are creditable to our investment funds, which includes broken-deal expenses, and a higher level of professional fees and other administrative costs in connection with the growth of the firm. The level of broken-deal expenses can vary significantly period to period based upon a number of factors, the most significant of which are the number of potential investments being pursued for our investment funds, the size and complexity of investments being pursued and the number of investment funds currently in their investment period.

Interest Expense

For the three months ended March 31, 2019 and 2018 interest expense relates primarily to the senior notes outstanding for KKR and KFN. The decrease in interest expense for the three months ended March 31, 2019 compared to the prior period is due primarily to the redemption of preferred shares at KFN in the first quarter of 2018 and an overall lower level of borrowings in our Capital Markets business line.

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Income Taxes Paid

The increase in income taxes paid is primarily due to a higher level of income that is subject to corporate taxes following the Conversion. Prior to the Conversion, KKR's investment income and carried interest generally were not subject to U.S. corporate income taxes. Subsequent to the Conversion, all income earned by KKR is subject to U.S. corporate income taxes which we believe will result in an overall higher income taxes paid when compared to periods prior to the Conversion. As a result of the Conversion, KKR obtained a partial step-up in the tax basis of certain assets that will be recovered as those assets are sold or the basis is amortized. This generally results in a lower level of taxable gains upon realization of carried interest and investment income for those assets that existed on the date of the Conversion. Over time as these assets with higher tax basis are realized, we expect that our income taxes paid and segment effective tax rate will increase. The pace of such increase is not currently known and is dependent on a variety of factors including the pace at which the assets with higher tax basis are realized and the mix of all assets realized in any given period. Therefore, we cannot predict what the increase, if any, in income taxes paid will be quarter-over-quarter or year-over-year.

After-tax Distributable Earnings

The increase in after-tax distributable earnings for the three months ended March 31, 2019 compared to the prior period was due primarily to higher management fees, realized investment income and realized performance income, partially offset by a higher level of compensation expense and income taxes paid in the current period compared to the prior period.

Other Operating and Performance Measures

The following table presents certain key operating and performance metrics as of March 31, 2019 and December 31, 2018:

	As of
	March 31, 2019		December 31, 2018		Change
	($ in thousands)
Assets Under Management	$	199,503,300	$	194,720,400	$	4,782,900
Fee Paying Assets Under Management	$	147,685,300	$	141,007,700	$	6,677,600
Uncalled Commitments	$	58,102,600	$	57,959,000	$	143,600

The following table presents one of our key performance metrics for the three months ended March 31, 2019 and 2018:

	Three Months Ended
	March 31, 2019		March 31, 2018		Change
	($ in thousands)
Capital Invested and Syndicated Capital	$	5,825,000	$	4,287,600	$	1,537,400

Assets Under Management

Private Markets

The following table reflects the changes in our Private Markets AUM from December 31, 2018 to March 31, 2019:

	($ in thousands)
December 31, 2018	$	103,396,500
New Capital Raised	2,695,900
Distributions and Other	(2,951,900		)
Change in Value	4,979,000
March 31, 2019	$	108,119,500

AUM for the Private Markets business line was $108.1 billion at March 31, 2019, an increase of $4.7 billion, compared to $103.4 billion at December 31, 2018.

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The increase was primarily attributable to (i) an increase in the value of our Private Markets portfolio and (ii) to a lesser extent, new capital raised primarily in our private equity separately managed accounts, Real Estate Credit Opportunity Partners II Fund and European Fund V. These increases were partially offset by distributions to Private Markets fund investors primarily as a result of realizations, most notably in our North America Fund XI, European Fund III and 2006 Fund.

The increase in the value of our Private Markets portfolio was driven primarily by net gains of $1.7 billion in our 2006 Fund, $0.8 billion in North America Fund XI, $0.5 billion in Asian Fund II, $0.4 billion Americas Fund XII and $0.3 billion in our Asian Fund III.

For the three months ended March 31, 2019, the value of our private equity investment portfolio increased 11.1%. This was comprised of a 31.1% increase in the share prices of various publicly held or publicly indexed investments and a 5.5% increase in value of our privately held investments.

The most significant increases in share prices of various publicly held or publicly indexed investments were gains in First Data Corporation, Gardner Denver Holdings, Inc. (NYSE: GDI) and Fujian Sunner Development Co. Ltd. (SZ: 002299). These increases were partially offset by decreases in share prices of various publicly held investments, the most significant of which were losses in Ambea AB (STO: AMBEA), RigNet, Inc. (NASDAQ: RNET) and Laureate Education, Inc. (NASDAQ: LAUR).

The most significant increases in value of our privately held investments related to AppLovin Corporation (technology sector), KKR Debt Investors 2006 S.à.r.l. (financial services sector) and Cue & Company (technology sector). These increases in value on our privately held investments were partially offset by decreases in value relating primarily to Mills Fleet Farm Group LLC (retail sector), Channel Control Merchants, LLC (retail sector) and Ticket Monster Inc. (technology sector). The increased valuations of individual companies in our privately held investments, in the aggregate, generally related to (i) individual company performance and (ii) an increase in the value of market comparables. The decreased valuations of individual companies in our privately held investments, in the aggregate, generally related to individual company performance or, in certain cases, an unfavorable business outlook.

For the three months ended March 31, 2018, the value of our private equity investment portfolio increased 0.4%. This was comprised of a 3.6% increase in value of our privately held investments and a 6.5% decrease in the share prices of various publicly held or publicly indexed investments.

For the three months ended March 31, 2018, the most significant increases in value of our privately held investments were gains relating to Ambea Mehiläinen (health care sector) (since taken public as Ambea AB), Cognita Schools Ltd. (education sector) and Hensoldt (industrial sector). The unrealized gains on our privately held investments were partially offset by unrealized losses relating primarily to Arbor Pharmaceuticals, Inc. (health care sector), Sundrop Farms Holdings Limited (agriculture sector) and Westbrick Energy Ltd. (energy sector). The increased valuations of individual companies in our privately held investments, in the aggregate, generally related to individual company performance. The decreased valuations of individual companies in our privately held investments, in the aggregate, generally related to (i) individual company performance or, in certain cases, an unfavorable business outlook and (ii) a decrease in the value of market comparables.

For the three months ended March 31, 2018, the most significant decreases in share prices of various publicly held or publicly indexed investments were losses in National Vision Holdings, Inc. (NASDAQ: EYE), Gardner Denver Holdings, Inc. and First Data Corporation. These decreases were partially offset by increased share prices of various publicly held investments, the most significant of which were gains in GoDaddy, Inc., Integer Holdings Corporation (NYSE: ITGR) and Pets at Home Group Plc. (LSE: PETS.L).

Certain investments included in our AUM are denominated in currencies other than the U.S. dollar. Those investments expose our AUM to the risk that the value of the investments will be affected by changes in exchange rates between the currency in which the investments are denominated and the currency in which the investments are made. We generally seek to reduce these risks by employing hedging techniques in connection with certain investments, including using foreign currency options and foreign exchange forward contracts to reduce exposure to changes in exchange rates when a meaningful amount of capital has been invested in currencies other than the currencies in which the investments are denominated. We do not, however, hedge our currency exposure in all currencies or for all investments. See "—Quantitative and Qualitative Disclosures about Market Risk—Exchange Rate Risk" and "Risk Factors—Risks Related to the Assets We Manage—We make investments in companies that are based outside of the United States, which may expose us to additional risks not typically associated with investing in companies that are based in the United States" in our Annual Report.

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Public Markets

The following table reflects the changes in our Public Markets AUM from December 31, 2018 to March 31, 2019: 

	($ in thousands)
December 31, 2018	$	91,323,900
New Capital Raised	3,595,100
Distributions	(229,800		)
Redemptions	(3,384,100		)
Change in Value	78,700
March 31, 2019	$	91,383,800

AUM in our Public Markets business line totaled $91.4 billion at March 31, 2019, comparatively flat against AUM of $91.3 billion at December 31, 2018. The increases due to new capital raised were related to multiple strategies, most notably $1.2 billion in our BDCs, $1.0 billion in our leveraged credit strategies and $0.8 billion with our hedge fund partnerships. Partially offsetting these increases were redemptions and distributions from certain investment vehicles across multiple strategies, including our hedge fund partnerships and certain leveraged credit strategies. Increases in value at our hedge fund partnerships and various leveraged credit strategies were largely offset by equivalent decreases in our BDCs and CLOs.

Fee Paying Assets Under Management

Private Markets

The following table reflects the changes in our Private Markets FPAUM from December 31, 2018 to March 31, 2019:

	($ in thousands)
December 31, 2018	$	66,830,000
New Capital Raised	6,158,400
Distributions and Other	(1,096,100		)
Net Changes in Fee Base of Certain Funds	(320,800		)
Change in Value	(1,200		)
March 31, 2019	$	71,570,300

FPAUM in our Private Markets business line was $71.6 billion at March 31, 2019, an increase of $4.8 billion, compared to $66.8 billion at December 31, 2018.

The increase was primarily attributable to new capital raised of $4.4 billion in European Fund V, as a result of it entering into its investment period on April 1, 2019, and $1.3 billion in our private equity separately managed accounts. These increases were partially offset by (i) distributions relating to realizations in our North America Fund XI and European Fund III and (ii) net changes in the fee base of our European Fund IV as a result of it entering into its post-investment period, during which it earns fees on invested capital rather than committed capital.

Uncalled capital commitments from Private Markets investment funds from which KKR is currently not earning management fees amounted to approximately $12.2 billion at March 31, 2019, which includes capital commitments reserved for follow-on investments for funds that have completed their investment periods. This capital will generally begin to earn management fees upon deployment of the capital or upon the commencement of the fund's investment period. The average annual management fee rate associated with this capital is approximately 1.0%. We will not begin earning fees on this capital until it is deployed or the related investment period commences, neither of which is guaranteed.  If and when such management fees are earned, which will occur over an extended period of time, a portion of existing FPAUM may cease paying fees or pay lower fees, thus offsetting a portion of any new management fees earned.

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Public Markets

The following table reflects the changes in our Public Markets FPAUM from December 31, 2018 to March 31, 2019: 

	($ in thousands)
December 31, 2018	$	74,177,700
New Capital Raised	4,142,800
Distributions	(659,400		)
Redemptions	(1,588,600		)
Change in Value	42,500
March 31, 2019	$	76,115,000

FPAUM in our Public Markets business line was $76.1 billion at March 31, 2019, an increase of $1.9 billion, compared to FPAUM of $74.2 billion at December 31, 2018. The increases due to new capital raised were related to multiple strategies, most notably $1.2 billion in our BDCs, $0.9 billion in certain leveraged credit strategies, $0.8 billion in our private credit strategies and $0.8 billion in our hedge fund partnerships . Partially offsetting these increases were redemptions and distributions from certain investment vehicles across multiple strategies, most notably our hedge fund partnerships, certain leveraged credit strategies and our private credit strategies.

Uncalled capital commitments from Public Markets investment funds from which KKR is currently not earning management fees amounted to approximately $7.7 billion at March 31, 2019. This capital will generally begin to earn management fees upon deployment of the capital or upon the commencement of the fund's investment period. The average annual management fee rate associated with this capital is approximately 1.0%. We will not begin earning fees on this capital until it is deployed or the related investment period commences, neither of which is guaranteed. If and when such management fees are earned, which will occur over an extended period of time, a portion of existing FPAUM may cease paying fees or pay lower fees, thus offsetting a portion of any new management fees earned.

Uncalled Commitments

Private Markets

As of March 31, 2019, our Private Markets business line had $48.4 billion of remaining uncalled capital commitments that could be called for investments in new transactions as compared to $48.2 billion as of December 31, 2018. The increase is due primarily to new capital raised in our private equity separately managed accounts and European Fund V, partially offset by capital called from fund investors to make investments during the period.

Public Markets

As of March 31, 2019, our Public Markets business line had $9.7 billion of uncalled capital commitments that could be called for investments in new transactions, which was relatively flat against $9.8 billion of uncalled capital commitments as of December 31, 2018. The net decrease was primarily attributable to capital invested across various private credit strategies, partially offset by new capital raised in our revolving credit strategies.

Capital Invested and Syndicated Capital

Private Markets Capital Invested

For the three months ended March 31, 2019, Private Markets had $3.3 billion of capital invested as compared to $2.4 billion for the three months ended March 31, 2018. The increase was driven primarily by a $0.8 billion increase in capital invested in our private equity strategies (including core investments and growth equity) and $0.1 billion increase in capital invested in our real assets platforms. Generally, the portfolio companies acquired through our private equity funds have higher transaction values and result in higher capital invested relative to transactions in our real assets funds. The number of large private equity investments made in any quarter is volatile and consequently, a significant amount of capital invested in one quarter or a few quarters may not be indicative of a similar level of capital deployment in future quarters. During the quarter ended March 31, 2019, 49% of capital deployed in private equity, which includes core and growth equity investments, was in transactions in the Asia-Pacific region, 38% was in North America, and 13% was in Europe.

As of April 30, 2019, our Private Markets business line had announced transactions that were subject to closing conditions which aggregated approximately $4.0 billion. These transactions are generally subject to the satisfaction of closing conditions prior to their completion, and there can be no assurance if or when any of these transactions will be completed.

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Public Markets Capital Invested

For the three months ended March 31, 2019, Public Markets had $2.2 billion of capital invested as compared to $1.4 billion for the three months ended March 31, 2018. This was primarily due to a higher level of net capital deployed in our direct lending and private opportunistic credit strategies, offset by a lower level of net capital deployed in our special situations strategy.

Capital Markets Syndicated Capital

For the three months ended March 31, 2019, Capital Markets syndicated $0.3 billion of capital as compared to $0.6 billion for the three months ended March 31, 2018. The decrease was primarily due to a decrease in the size of syndication transactions in the three months ended March 31, 2019 as compared to the three months ended March 31, 2018. Overall, we completed five syndication transactions for the three months ended March 31, 2019 as compared to three syndications for the three months ended March 31, 2018.

Reconciliations to GAAP Measures

For the reconciliations of the most directly comparable financial measures calculated and presented in accordance with GAAP to total segment revenues, total segment expenses, and after-tax distributable earnings, see Note 14 "Segment Reporting" to the financial statements included elsewhere in this report.

Segment Balance Sheet

Our segment balance sheet is the balance sheet of KKR & Co. Inc. and its subsidiaries on a segment basis which includes, but is not limited to, our investment management companies, broker-dealer companies, general partners of our investment funds, and KFN. Our segment balance sheet excludes the assets and liabilities of our investment funds and CFEs and other consolidated entities that are not subsidiaries of KKR & Co. Inc.

Investments

Investments is a term used solely for purposes of financial presentation of a portion of KKR's balance sheet and includes majority ownership of subsidiaries that operate KKR's asset management and other businesses, including the general partner interests of KKR's investment funds.

Cash and Short-Term Investments

Cash and short-term investments represent cash and liquid short-term investments in high-grade, short-duration cash management strategies used by KKR to generate additional yield on our excess liquidity and is used by management in evaluating KKR's liquidity position. We believe this measure is useful to stockholders as it provides additional insight into KKR's available liquidity. Cash and short-term investments differ from cash and cash equivalents on a GAAP basis as a result of the inclusion of liquid short-term investments in cash and short-term investments. The impact that these liquid short-term investments have on cash and cash equivalents on a GAAP basis is reflected in the consolidated statements of cash flows within cash flows from operating activities. Accordingly, the exclusion of these investments from cash and cash equivalents on a GAAP basis has no impact on cash provided (used) by operating activities, investing activities or financing activities.

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The following tables present information with respect to our segment balance sheet as of March 31, 2019 and December 31, 2018:

	As of		As of
	March 31, 2019		December 31, 2018
	($ in thousands, except per share amounts)
Cash and Short-term Investments	$	2,554,305	$	2,502,239
Investments	10,713,740		9,847,464
Unrealized Carried Interest (1)	1,468,431		1,223,084
Corporate Real Estate	161,225		161,225
Tax Assets	429,505		561,114
Other Assets (2)	3,443,358		3,292,510
Total Assets	$	18,770,564	$	17,587,636
Debt Obligations - KKR (ex-KFN)	$	2,363,636	$	2,367,801
Debt Obligations - KFN	948,517		948,517
Tax Liabilities	190,066		174,395
Other Liabilities	598,135		590,981
Total Liabilities	4,100,354		4,081,694
Noncontrolling Interests	22,004		25,382
Preferred Stock	500,000		500,000
Book Value	$	14,148,206	$	12,980,560
Book Value Per Adjusted Share	$	16.99	$	15.57

(1) The following table provides unrealized carried interest by business line:

	As of
	March 31, 2019		December 31, 2018
Private Markets Business Line	$	1,336,213	$	1,083,163
Public Markets Business Line	132,218		139,921
Total	$	1,468,431	$	1,223,084

(2) Other Assets include KKR's ownership interest in FS/KKR Advisor, LLC and minority ownership interests in hedge fund partnerships.

Book Value Per Adjusted Share

Book value per adjusted share increased 9.1% from December 31, 2018. This increase was due primarily to a broad-based increase in the value of KKR's investment portfolio, including investments held by KKR as well as investments held through investment funds, such as KKR's private equity funds, where KKR is entitled to earn carried interest. For the three months ended March 31, 2019, the value of KKR's balance sheet portfolio, on a segment basis, increased 9.2% and KKR's overall private equity portfolio increased 11.1%. The increase in KKR's balance sheet portfolio was primarily due to mark-to-market gains in our portfolio companies. For a further discussion, see "—Unaudited Consolidated Results of Operations—Unrealized Gains from Investment Activities" and "—Unaudited Consolidated Results of Operations—Unrealized Losses from Investment Activities." For a discussion of the changes in KKR's private equity portfolio, see "—Segment Analysis—Segment Results—Other Operating and Performance Measures—AUM." The increase in book value per outstanding adjusted share was also due to approximately $0.3 billion of after-tax distributable earnings which were partially offset by dividends to Class A common stockholders during the three months ended March 31, 2019. For a discussion of factors that impacted KKR's after-tax distributable earnings, see "—Segment Analysis—Segment Results."

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The following table presents the holdings of our segment balance sheet by asset class as of March 31, 2019. To the extent investments on our segment balance sheet are realized at values below their cost in future periods, after-tax distributable earnings would be adversely affected by the amount of such loss, if any, during the period in which the realization event occurs.

	As of March 31, 2019
Investments	Cost		Fair Value		Fair Value as a Percentage of Total Investments
Private Equity Funds / SMAs	$	2,681,895	$	3,569,296	33.3	%
Private Equity Co-Investments and Other Equity	2,195,525		2,998,425		28.0	%
Private Equity Total	4,877,420		6,567,721		61.3	%
Energy	651,377		679,216		6.3	%
Real Estate	801,417		837,973		7.8	%
Infrastructure	416,626		510,016		4.8	%
Real Assets Total	1,869,420		2,027,205		18.9	%
Special Situations	688,332		560,694		5.2	%
Direct Lending	144,814		132,451		1.3	%
Alternative Credit Total	833,146		693,145		6.5	%
CLOs	729,155		635,934		5.9	%
Other Credit	353,892		234,827		2.2	%
Credit Total	1,916,193		1,563,906		14.6	%
Other	673,130		554,908		5.2	%
Total Investments	$	9,336,163	$	10,713,740	100.0	%
	March 31, 2019
Significant Investments: (1)	Cost		Fair Value		Fair Value as a Percentage of Total Investments
First Data Corporation (NYSE: FDC)	$	794,978	$	1,534,049	14.3	%
USI, Inc.	500,111		650,144		6.1	%
Heartland Dental LLC	302,255		362,706		3.4	%
PetVet Care Centers, LLC	243,188		340,463		3.2	%
KKR Real Estate Finance Trust Inc. (NYSE: KREF)	325,000		325,325		3.0	%
Total Significant Investments	2,165,532		3,212,687		30.0	%
Other Investments	7,170,631		7,501,053		70.0	%
Total Investments	$	9,336,163	$	10,713,740	100.0	%

(1) The significant investments include the top five investments (other than investments expected to be syndicated or transferred in connection with new fundraising) based on their fair values as of March 31, 2019. The fair value figures include the co-investment and the limited partner and/or general partner interests held by KKR in the underlying investment, if applicable.

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The following tables provide reconciliations of KKR's GAAP Consolidated Statements of Financial Condition to our Segment Balance Sheet as of March 31, 2019 and December 31, 2018.

As of March 31, 2019
(Amounts in thousands)
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION (GAAP BASIS)			1		2		3		4		SEGMENT BALANCE SHEET
Assets
Cash and Cash Equivalents	$	1,808,368	(86,012	)	—		831,949		—		$	2,554,305	Cash and Short-term Investments
Investments	45,795,254		(29,504,201	)	(1,089,045	)	(4,488,268	)	—		10,713,740		Investments
			—		—		1,468,431		—		1,468,431		Unrealized Carried Interest
			—		—		161,225		—		161,225		Corporate Real Estate
			—		—		429,505		—		429,505		Tax Assets
Other Assets	4,400,397		(1,971,422	)	—		1,014,383		—		3,443,358		Other Assets
Total Assets	$	52,004,019	(31,561,635	)	(1,089,045	)	(582,775	)	—		$	18,770,564
Liabilities and Equity
Debt Obligations	22,262,369		(18,950,216	)	—		(948,517	)	—		2,363,636		Debt Obligations - KKR (ex-KFN)
			—		—		948,517		—		948,517		Debt Obligations - KFN
			—		—		190,066		—		190,066		Tax Liabilities
Other Liabilities	3,533,809		(1,073,788	)	(1,089,045	)	(772,841	)	—		598,135		Other Liabilities
Total Liabilities	25,796,178		(20,024,004	)	(1,089,045	)	(582,775	)	—		4,100,354
Redeemable Noncontrolling Interests	—		—		—		—		—		—
Stockholders' Equity
Preferred Stock	482,554		—		—		(482,554	)	—
KKR & Co. Inc. Stockholders' Equity - Common Stockholders	8,839,817		246,793		—		(17,446	)	5,079,042		14,148,206		Book Value
Noncontrolling Interests	16,885,470		(11,784,424	)	—		—		(5,079,042	)	22,004		Noncontrolling Interests
			—		—		500,000		—		500,000		Preferred Stock
Total Liabilities and Equity	$	52,004,019	(31,561,635	)	(1,089,045	)	(582,775	)	—		$	18,770,564
1	IMPACT OF CONSOLIDATION OF INVESTMENT VEHICLES AND OTHER ENTITIES
2	CARRY POOL RECLASSIFICATION
3	OTHER RECLASSIFICATIONS
4	NONCONTROLLING INTERESTS HELD BY KKR HOLDINGS L.P.

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As of December 31, 2018
(Amounts in thousands)
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION (GAAP BASIS)			1		2		3		4		SEGMENT BALANCE SHEET
Assets
Cash and Cash Equivalents	$	1,751,287	(88,852	)	—		839,804		—		$	2,502,239	Cash and Short-term Investments
Investments	44,907,982		(30,069,428	)	(922,977	)	(4,068,113	)	—		9,847,464		Investments
			—		—		1,223,084		—		1,223,084		Unrealized Carried Interest
			—		—		161,225		—		161,225		Corporate Real Estate
			—		—		561,114		—		561,114		Tax Assets
Other Assets	4,084,106		(1,730,191	)	—		938,595		—		3,292,510		Other Assets
Total Assets	$	50,743,375	(31,888,471	)	(922,977	)	(344,291	)	—		$	17,587,636
Liabilities and Equity
Debt Obligations	22,341,192		(19,024,874	)	—		(948,517	)	—		2,367,801		Debt Obligations - KKR (ex-KFN)
			—		—		948,517		—		948,517		Debt Obligations - KFN
			—		—		174,395		—		174,395		Tax Liabilities
Other Liabilities	3,019,574		(986,930	)	(922,977	)	(518,686	)	—		590,981		Other Liabilities
Total Liabilities	25,360,766		(20,011,804	)	(922,977	)	(344,291	)	—		4,081,694
Redeemable Noncontrolling Interests	1,122,641		(1,122,641	)	—		—		—
Stockholders' Equity
Preferred Stock	482,554		—		—		(482,554	)	—
KKR & Co. Inc. Stockholders' Equity - Common Stockholders	8,167,056		205,502		—		(17,446	)	4,625,448		12,980,560		Book Value
Noncontrolling Interests	15,610,358		(10,959,528	)	—		—		(4,625,448	)	25,382		Noncontrolling Interests
			—		—		500,000		—		500,000		Preferred Stock
Total Liabilities and Equity	$	50,743,375	(31,888,471	)	(922,977	)	(344,291	)	—		$	17,587,636
1	IMPACT OF CONSOLIDATION OF INVESTMENT VEHICLES AND OTHER ENTITIES
2	CARRY POOL RECLASSIFICATION
3	OTHER RECLASSIFICATIONS
4	NONCONTROLLING INTERESTS HELD BY KKR HOLDINGS L.P. AND OTHER

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The following table provides reconciliations of KKR's GAAP Shares of Class A Common Stock Outstanding to Adjusted Shares Eligible for Distribution and Outstanding Adjusted Shares:

	As of	As of
	March 31, 2019	December 31, 2018
GAAP Shares of Class A Common Stock Outstanding	533,922,902	534,857,237
Adjustments:
KKR Holdings Units (1)	298,645,285	299,081,239
Adjusted Shares Eligible for Distribution (2)	832,568,187	833,938,476
Unvested Shares of Class A Common Stock (3)	32,854,483	33,408,491

(1) Class A common stock that may be issued by KKR & Co. Inc. upon exchange of units in KKR Holdings for Class A common stock.

(2) Amounts exclude unvested equity awards granted under our Equity Incentive Plans.

(3) Represents equity awards granted under our Equity Incentive Plans. The issuance of Class A common stock of KKR & Co. Inc. pursuant to awards under our Equity Incentive Plans dilutes KKR Class A common stockholders and KKR Holdings pro rata in accordance with their respective percentage interests in the KKR business. Excludes the award of 2,500,000 restricted stock units granted to each of our Co-Presidents/Co-Chief Operating Officers during 2017 that have not met their market-price based vesting condition as of March 31, 2019 or December 31, 2018. See Note 12 "Equity Based Compensation" to the financial statements included elsewhere in this report.

Liquidity

We manage our liquidity and capital requirements by focusing on our cash flows before the consolidation of our funds and CFEs and the effect of changes in short term assets and liabilities, which we anticipate will be settled for cash within one year. Our primary cash flow activities on a segment basis typically involve: (i) generating cash flow from operations; (ii) generating income from investment activities, by investing in investments that generate yield (namely interest and dividends), as well as the sale of investments and other assets; (iii) funding capital commitments that we have made to, and advancing capital to, our funds and CLOs; (iv) developing and funding new investment strategies, investment products, and other growth initiatives, including acquisitions of other investments, assets, and businesses; (v) underwriting and funding commitments in our capital markets business; (vi) distributing cash flow to our stockholders and holders of our Series A and Series B Preferred Stock; and (vii) paying borrowings, interest payments, and repayments under credit agreements, our senior notes, and other borrowing arrangements. See "—Liquidity—Liquidity Needs—Dividends."

Sources of Liquidity

Our primary sources of liquidity consist of amounts received from: (i) our operating activities, including the fees earned from our funds, portfolio companies, and capital markets transactions; (ii) realizations on carried interest from our investment funds; (iii) interest and dividends from investments that generate yield, including our investments in CLOs; (iv) realizations on and sales of investments and other assets, including the transfers of investments for fund formations; and (v) borrowings under our credit facilities, debt offerings, and other borrowing arrangements. In addition, we may generate cash proceeds from sales of our equity securities.

Many of our investment funds provide carried interest. With respect to our private equity funds, carried interest is distributed to the general partner of a private equity fund with a clawback provision only after all of the following are met: (i) a realization event has occurred (e.g., sale of a portfolio company, dividend, etc.); (ii) the vehicle has achieved positive overall investment returns since its inception, in excess of performance hurdles where applicable; and (iii) with respect to investments with a fair value below cost, cost has been returned to fund investors in an amount sufficient to reduce remaining cost to the investments' fair value. As of March 31, 2019, certain of our funds had met the first and second criteria, as described above, but did not meet the third criteria. In these cases, carried interest accrues on the consolidated statement of operations, but will not be distributed in cash to us as the general partner of an investment fund upon a realization event. For a fund that has a fair value above cost, overall, but has one or more investments where fair value is below cost, the shortfall between cost and fair value for such investments is referred to as a "netting hole." When netting holes are present, realized gains on individual investments that would otherwise allow the general partner to receive carried interest distributions are instead used to return invested capital to our funds' limited partners in an amount equal to the netting hole. Once netting holes have been filled with either (a) return of capital equal to the netting hole for those investments where fair value is below cost or (b) increases in the fair value of those investments where fair value is below cost, then realized carried interest will be distributed to the general partner upon a realization event. A fund that is in a position to pay cash carry refers to a fund for which carried interest is expected to be paid to the general partner upon the next material realization event, which includes funds with no netting holes as well as funds with

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a netting hole that is sufficiently small in size such that the next material realization event would be expected to result in the payment of carried interest. Strategic investor partnerships with fund investors may require netting across the various funds in which they invest, which may reduce the carried interest we otherwise would have earned if such fund investors were to have invested in our funds without the existence of the strategic investor partnership. See "Risk Factors—Risks Related to Our Business—Strategic investor partnerships have longer investment periods and invest in multiple strategies, which may increase the possibility of a 'netting hole,' which will result in less carried interest for us, as well as clawback liabilities" in our Annual Report.

As of March 31, 2019, no netting holes in excess of $50 million existed at our private equity funds. In accordance with the criteria set forth above, other funds currently have and may in the future develop netting holes, and netting holes for those and other funds may otherwise increase or decrease in the future.

We have access to funding under various credit facilities, other borrowing arrangements and other sources of liquidity that we have entered into with major financial institutions or which we receive from the capital markets. The following describes these sources of liquidity.

Revolving Credit Agreements, Senior Notes, KFN Debt Obligations & KFN Securities

For a discussion of KKR's debt obligations, including our revolving credit agreements, senior notes, KFN debt obligations, and KFN securities, see Note 10 "Debt Obligations" to the audited financial statements included in our Annual Report and Note 10 "Debt Obligations" to the financial statements included elsewhere in this report.

Preferred Stock

For a discussion of KKR's equity, including our preferred stock, see Note 15 "Equity" to the audited financial statements included in our Annual Report.

Liquidity Needs

We expect that our primary liquidity needs will consist of cash required to:

• continue to grow our business lines, including seeding new strategies, funding our capital commitments made to existing and future funds, co-investments and any net capital requirements of our capital markets companies and otherwise supporting investment vehicles which we sponsor;

• warehouse investments in portfolio companies or other investments for the benefit of one or more of our funds, vehicles, accounts or CLOs pending the contribution of committed capital by the investors in such vehicles, and advancing capital to them for operational or other needs;

• service debt obligations including the payment of obligations upon maturity or redemption, as well as any contingent liabilities that may give rise to future cash payments;

• fund cash operating expenses and contingencies, including litigation matters; 

• payment of corporate income taxes following the Conversion;

• pay amounts that may become due under our tax receivable agreement with KKR Holdings; 

• pay cash dividends in accordance with our dividend policy for our Class A common stock or the terms of our preferred stock;  

• underwrite commitments, advance loan proceeds and fund syndication commitments within our capital markets business;

• make future purchase price payments in connection with our proprietary investments, such as our hedge fund partnership with Marshall Wace, to the extent not paid by newly issued Class A common stock;

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• acquire other assets for our Principal Activities business line, including other businesses, investments and assets, some of which may be required to satisfy regulatory requirements for our capital markets business or risk retention requirements for CLOs (to the extent it continues to apply); and

• repurchase KKR's Class A common stock pursuant to the share repurchase program or other securities issued by KKR.

KKR & Co. Inc. Share Repurchase Program

Under the terms of our share repurchase program, KKR is authorized to repurchase its Class A common stock from time to time in open market transactions, in privately negotiated transactions or otherwise. The timing, manner, price and amount of any Class A common stock repurchases will be determined by KKR in its discretion and will depend on a variety of factors, including legal requirements, price and economic and market conditions. KKR expects that the program, which has no expiration date, will be in effect until the maximum approved dollar amount has been used. The program does not require KKR to repurchase any specific number of shares of Class A common stock, and the program may be suspended, extended, modified or discontinued at any time. As of March 31, 2019, $500 million was available under the repurchase program.

In addition to the purchases of Class A common stock as described above, the repurchase program will be used for the retirement (by cash settlement or the payment of tax withholding amounts upon net settlement) of equity awards issued pursuant to our Equity Incentive Plans representing the right to receive Class A common stock. See "Part II. Item 2. Unregistered Sales of Equity Securities and Use of Proceeds."

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Capital Commitments

The agreements governing our active investment funds generally require the general partners of the funds to make minimum capital commitments to such funds, which usually range from 2% to 8% of a fund's total capital commitments at final closing; however, the size of our general partner commitment to certain funds pursuing newer strategies may exceed this range. The following table presents our uncalled commitments to our active investment funds as of March 31, 2019:

	Uncalled Commitments
Private Markets	($ in thousands)
Core Investment Vehicles	$	2,238,200
Americas Fund XII	489,200
Asian Fund III	476,300
European Fund V	400,000
Global Infrastructure III	310,600
Energy Income and Growth II	200,000
Health Care Strategic Growth	127,800
Real Estate Partners Americas II	125,900
Global Impact Fund	100,000
Real Estate Credit Opportunity Partners II	50,000
European Fund IV	49,900
Next Generation Technology Growth	33,600
Other Private Markets Vehicles	196,200
Total Private Markets Commitments	4,797,700
Public Markets
Special Situations Fund II	105,400
Private Credit Opportunities Partners II	27,000
Lending Partners III	18,400
Lending Partners Europe	13,800
Other Public Markets Vehicles	124,600
Total Public Markets Commitments	289,200
Total Uncalled Commitments	$	5,086,900

Other Commitments

In addition to the uncalled commitments to our investment funds as shown above, KKR has entered into contractual commitments with respect to (i) the purchase of investments and other assets primarily in our Principal Activities business line and (ii) underwriting transactions, debt financing, and syndications in our Capital Markets business line. As of March 31, 2019, these commitments amounted to $153.7 million and $516.2 million, respectively. Whether these amounts are actually funded, in whole or in part, depends on the contractual terms of such commitments, including the satisfaction or waiver of any conditions to closing or funding. The unfunded commitments shown for our Capital Markets business line are shown without reflecting arrangements that may reduce the actual amount of contractual commitments shown occurring after March 31, 2019. Our capital markets business has an arrangement with a third party, which reduces our risk when underwriting certain debt transactions, and thus our unfunded commitments as of March 31, 2019 are reduced to reflect the amount to be funded by such third party. In the case of purchases of investments or assets in our Principal Activities business line, the amount to be funded includes amounts that are intended to be syndicated to third parties, and the actual amounts to be funded may be less than shown.

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Investment in Marshall Wace

In connection with our investment in Marshall Wace, either of Marshall Wace or KKR may, in the fourth quarter of 2019, exercise a put option or a call option, respectively, that would give KKR an incremental 5% equity interest in Marshall Wace. KKR currently holds an ownership interest of 34.6%. The exercise of such options would require the use of cash and/or KKR Class A common stock.

Tax Receivable Agreement

We may be required to acquire KKR Group Partnership Units from time to time pursuant to our exchange agreement with KKR Holdings, which may result in an increase in our tax basis of the assets of the KKR Group Partnerships at the time of an exchange of KKR Group Partnership Units. We have entered into a tax receivable agreement with KKR Holdings, which requires us to pay to KKR Holdings, or to current and former principals who have exchanged KKR Holdings units for KKR Class A common stock as transferees of KKR Group Partnership Units, 85% of the amount of cash savings, if any, in U.S. federal, state and local income tax that we realize as a result of the increase in tax basis described above, as well as 85% of the amount of any such savings we realize as a result of increases in tax basis that arise due to future payments under the agreement. As of March 31, 2019, an undiscounted payable of $108.3 million has been recorded in due to affiliates in the financial statements representing management's best estimate of the amounts currently expected to be owed under the tax receivable agreement. As of March 31, 2019, approximately $35.8 million of cumulative cash payments have been made under the tax receivable agreement.

Following the Conversion, we expect the amount of future payments under the tax receivable agreement to be materially higher than it would have been had we not converted to a corporation. In addition, our obligations under the tax receivable agreement would be effectively accelerated in the event of an early termination of the tax receivable agreement by us or in the event of certain mergers, asset sales and other forms of business combinations or other changes of control. See "Risk Factors—Risks Related to Our Organization—We will be required to pay our principals for most of the benefits relating to our use of tax attributes we receive from prior and future exchanges of our Class A common stock for KKR Group Partnership Units and related transactions" in our Annual Report.

Dividends

A dividend of $0.125 per share of Class A common stock has been declared, which will be paid on May 28, 2019 to holders of record of Class A common stock as of the close of business on May 13, 2019.

A dividend of $0.421875 per share of Series A Preferred Stock has been declared and set aside for payment on June 17, 2019 to holders of record of Series A Preferred Stock as of the close of business on June 1, 2019. A dividend of $0.406250 per share of Series B Preferred Stock has been declared and set aside for payment on June 17, 2019 to holders of record of Series B Preferred Stock as of the close of business on June 1, 2019.

When KKR & Co. Inc. receives distributions from the KKR Group Partnerships (the holding companies of the KKR business), KKR Holdings receives its pro rata share of such distributions from the KKR Group Partnerships.

The declaration and payment of dividends to our Class A common stockholders will be at the sole discretion of our board of directors, and our dividend policy may be changed at any time. Our current dividend policy is to pay dividends to holders of our Class A common stock in an annual aggregate amount of $0.50 per share (or a quarterly dividend of $0.125 per share), subject to the discretion of our board of directors based on a number of factors, including KKR’s future financial performance and other considerations that the board deems relevant, and compliance with the terms of KKR & Co. Inc.'s certificate of incorporation and applicable law. For U.S. federal income tax purposes, any dividends we pay (including dividends on our preferred stock) generally will be treated as qualified dividend income for U.S. individual stockholders to the extent paid out of our current or accumulated earnings and profits, as determined for U.S. federal income tax purposes. There can be no assurance that future dividends will be made as intended or at all or that any particular dividend policy for our Class A common stock will be maintained. Furthermore, the declaration and payment of distributions by the KKR Group Partnerships and our other subsidiaries may also be subject to legal, contractual and regulatory restrictions, including restrictions contained in our debt agreements and the terms of the preferred stock of the KKR Group Partnerships.

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Other Liquidity Needs

We may also be required to fund various underwriting, syndication and fronting commitments in our capital markets business in connection with the underwriting of loans, securities or other financial instruments, which has increased in significance in recent periods and may continue to be significant in future periods. We generally expect that these commitments will be syndicated to third parties or otherwise fulfilled or terminated, although we may in some instances elect to retain a portion of the commitments for our own investment.

Critical Accounting Policies

The preparation of our financial statements in accordance with GAAP requires our management to make estimates and judgments that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and reported amounts of fees, expenses and investment income. Our management bases these estimates and judgments on available information, historical experience and other assumptions that we believe are reasonable under the circumstances. However, these estimates, judgments and assumptions are often subjective and may be impacted negatively based on changing circumstances or changes in our analyses. If actual amounts are ultimately different from those estimated, judged or assumed, revisions are included in the financial statements in the period in which the actual amounts become known. We believe our critical accounting policies could potentially produce materially different results if we were to change underlying estimates, judgments or assumptions.

The following discusses certain aspects of our critical accounting policies. For a full discussion of these and all critical accounting policies, see Note 2 "Summary of Significant Accounting Policies" to the financial statements included elsewhere in this report.

Fair Value Measurements

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. Except for certain of KKR's equity method investments and debt obligations, KKR's investments and other financial instruments are recorded at fair value or at amounts whose carrying values approximate fair value.

GAAP establishes a hierarchical disclosure framework which prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Investments and financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination of fair values, as follows:

Level I

Pricing inputs are unadjusted, quoted prices in active markets for identical assets or liabilities as of the measurement date. The types of financial instruments included in this category are publicly-listed equities and securities sold short.

We classified 6.0% of total investments measured and reported at fair value as Level I at March 31, 2019.

Level II

Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the measurement date, and fair value is determined through the use of models or other valuation methodologies. The types of financial instruments included in this category are credit investments, investments and debt obligations of consolidated CLO entities, convertible debt securities indexed to publicly-listed securities, less liquid and restricted equity securities and certain over-the-counter derivatives such as foreign currency option and forward contracts.

We classified 36.7% of total investments measured and reported at fair value as Level II at March 31, 2019.

Level III

Pricing inputs are unobservable for the financial instruments and include situations where there is little, if any, market activity for the financial instrument. The inputs into the determination of fair value require significant management judgment or estimation. The types of financial instruments generally included in this category are private portfolio companies, real assets investments, credit investments, equity method investments for which the fair value option was elected and investments and debt obligations of consolidated CMBS entities.

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We classified 57.3% of total investments measured and reported at fair value as Level III at March 31, 2019. The valuation of our Level III investments at March 31, 2019 represents management's best estimate of the amounts that we would anticipate realizing on the sale of these investments in an orderly transaction at such date.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Level III Valuation Methodologies

With respect to our private equity portfolio, which includes growth equity investments, we generally employ two valuation methodologies when determining the fair value of an investment. The first methodology is typically a market comparables analysis that considers key financial inputs and recent public and private transactions and other available measures. The second methodology utilized is typically a discounted cash flow analysis, which incorporates significant assumptions and judgments. Estimates of key inputs used in this methodology include the weighted average cost of capital for the investment and assumed inputs used to calculate terminal values, such as exit EBITDA multiples. In certain cases the results of the discounted cash flow approach can be significantly impacted by these estimates. Other inputs are also used in both methodologies. Also, as discussed in greater detail under "—Business Environment" and "Risk Factors—Risks Related to the Assets We Manage—Our investments are impacted by various economic conditions that are difficult to quantify or predict, but may have a significant adverse impact on the value of our investments" in this report, a change in interest rates could have a significant impact on valuations. In addition, when a definitive agreement has been executed to sell an investment, KKR generally considers a significant determinant of fair value to be the consideration to be received by KKR pursuant to the executed definitive agreement.

Upon completion of the valuations conducted using these methodologies, a weighting is ascribed to each method, and an illiquidity discount is typically applied where appropriate. The ultimate fair value recorded for a particular investment will generally be within a range suggested by the two methodologies, except that the value may be higher or lower than such range in the case of investments being sold pursuant to an executed definitive agreement.

Across the total Level III private equity investment portfolio (including core investments), and including investments in both consolidated and unconsolidated investment funds, approximately 63% of the fair value is derived from investments that are valued based exactly 50% on market comparables and 50% on a discounted cash flow analysis. Less than 2% of the fair value of this Level III private equity investment portfolio is derived from investments that are valued either based 100% on market comparables or 100% on a discounted cash flow analysis. As of March 31, 2019, the overall weights ascribed to the market comparables methodology, the discounted cash flow methodology, and a methodology based on pending sales for this portfolio of Level III private equity investments were 41%, 51%, and 8%, respectively.

In the case of growth equity investments, enterprise values may be determined using the market comparables analysis and discounted cash flow analysis described above. A scenario analysis may also be conducted to subject the estimated enterprise values to a downside, base and upside case, which involves significant assumptions and judgments. A milestone analysis may also be conducted to assess the current level of progress towards value drivers that we have determined to be important, which involves significant assumptions and judgments. The enterprise value in each case may then be allocated across the investment's capital structure to reflect the terms of the security and subjected to probability weightings. In certain cases, the values of growth equity investments may be based on recent or expected financings.

Real asset investments in infrastructure, energy and real estate are valued using one or more of the discounted cash flow analysis, market comparables analysis and direct income capitalization, which in each case incorporates significant assumptions and judgments. Infrastructure investments are generally valued using the discounted cash flow analysis. Key inputs used in this methodology can include the weighted average cost of capital and assumed inputs used to calculate terminal values, such as exit EBITDA multiples. Energy investments are generally valued using a discounted cash flow analysis. Key inputs used in this methodology that require estimates include the weighted average cost of capital. In addition, the valuations of energy investments generally incorporate both commodity prices as quoted on indices and long-term commodity price forecasts, which may be substantially different from, and are currently higher than, commodity prices on certain indices for equivalent future dates. Certain energy investments do not include an illiquidity discount. Long-term commodity price forecasts are utilized to capture the value of the investments across a range of commodity prices within the energy investment portfolio associated with future development and to reflect a range of price expectations. Real estate investments are generally valued using a combination of direct income capitalization and discounted cash flow analysis. Key inputs used in such methodologies that require estimates include an unlevered discount rate and current capitalization rate, and certain real estate investments do not include a minimum illiquidity discount. The valuations of real assets investments also use other inputs.

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On a segment basis, our energy real asset investments in oil and gas-producing properties as of March 31, 2019 had a fair value of approximately $679 million. Based on this fair value, we estimate that an immediate, hypothetical 10% decline in the fair value of these energy investments from one or more adverse movements to the investments' valuation inputs would result in a decline in book value of $67.9 million. As of March 31, 2019, if we were to value our energy investments using only the commodity prices as quoted on indices and did not use long-term commodity price forecasts, and also held all other inputs to their valuation constant, we estimate that book value would have been approximately $83 million lower.

These hypothetical declines relate only to book value. There would be no current impact on KKR's unrealized carried interest since all of the investment funds which hold these types of energy investments have investment values that are either below their cost or not currently accruing carried interest. Additionally, there would be no impact on fees since fees earned from investment funds which hold investments in oil and gas-producing properties are based on either committed capital or capital invested.

For GAAP purposes, where KKR holds energy investments consisting of working interests in oil and gas-producing properties directly and not through an investment fund, such working interests are consolidated based on the proportion of the working interests held by us. Accordingly, we reflect the assets, liabilities, revenues, expenses, investment income and cash flows of the consolidated working interests on a gross basis and changes in the value of these energy investments are not reflected as unrealized gains and losses in the consolidated statements of operations. Accordingly, a change in fair value for these investments does not result in a decrease in net gains (losses) from investment activities, but may result in an impairment charge reflected in general, administrative and other expenses. For segment purposes, these directly held working interests are treated as investments and changes in value are reflected in our segment results as unrealized gains and losses.

Credit investments are valued using values obtained from dealers or market makers, and where these values are not available, credit investments are generally valued by us based on ranges of valuations determined by an independent valuation firm. Valuation models are based on discounted cash flow analyses, for which the key inputs are determined based on market comparables, which incorporate similar instruments from similar issuers.

Key unobservable inputs that have a significant impact on our Level III investment valuations as described above are included in Note 5 "Fair Value Measurements" to the financial statements included elsewhere in this report.

Level III Valuation Process

The valuation process involved for Level III measurements is completed on a quarterly basis and is designed to subject the valuation of Level III investments to an appropriate level of consistency, oversight, and review.

For Private Markets investments classified as Level III, investment professionals prepare preliminary valuations based on their evaluation of financial and operating data, company specific developments, market valuations of comparable companies and other factors. KKR begins its procedures to determine the fair values of its Level III assets one month prior to the end of a reporting period, and KKR follows additional procedures to ensure that its determinations of fair value for its Level III assets are appropriate as of the relevant reporting date. These preliminary valuations are reviewed by an independent valuation firm engaged by KKR to perform certain procedures in order to assess the reasonableness of KKR's valuations annually for all Level III investments in Private Markets and quarterly for investments other than certain investments, which have values less than preset value thresholds and which in the aggregate comprise less than 5% of the total value of KKR's Level III Private Markets investments. The valuations of certain real asset investments are determined solely by an independent valuation firm without the preparation of preliminary valuations by our investment professionals, and instead such independent valuation firm relies on valuation information available to it as a broker or valuation firm. For credit investments and debt obligations of consolidated CMBS vehicles, an independent valuation firm is generally engaged quarterly by KKR with respect to most investments classified as Level III. The valuation firm either provides a value or provides a valuation range from which KKR's investment professionals select a point in the range to determine the preliminary valuation or performs certain procedures in order to assess the reasonableness and provide positive assurance of KKR's valuations. After reflecting any input from the independent valuation firm, the valuation proposals are submitted for review and approval by KKR's valuation committees. As of March 31, 2019, less than 3% of the total value of our Level III credit investments were not valued with the engagement of an independent valuation firm.

KKR has a global valuation committee that is responsible for coordinating and implementing the firm's valuation process to ensure consistency in the application of valuation principles across portfolio investments and between periods. The global valuation committee is assisted by the asset class-specific valuation committees that exist for private equity (including core investments), growth equity, real estate, energy and infrastructure and credit. The asset class-specific valuation committees are responsible for the review and approval of all preliminary Level III valuations in their respective asset classes on a quarterly

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basis. The members of these valuation committees are comprised of investment professionals, including the heads of each respective strategy, and professionals from business operations functions such as legal, compliance and finance, who are not primarily responsible for the management of the investments. For periods prior to the completion of the PAAMCO Prisma transaction, when Level III valuations were required to be performed on hedge fund investments, a valuation committee for hedge funds reviewed these valuations.

All Level III valuations are also subject to approval by the global valuation committee, which is comprised of senior employees including investment professionals and professionals from business operations functions, and includes one of KKR's Co-Presidents and Co-Chief Operating Officers and its Chief Financial Officer, General Counsel and Chief Compliance Officer. When valuations are approved by the global valuation committee after reflecting any input from it, the valuations of Level III investments, as well as the valuations of Level I and Level II investments, are presented to the audit committee of the board of directors of KKR & Co. Inc. and are then reported to the board of directors.

As of March 31, 2019, upon completion by, where applicable, an independent valuation firm of certain limited procedures requested to be performed by them on certain investments, the independent valuation firm concluded that the fair values, as determined by KKR, of those investments reviewed by them were reasonable. The limited procedures did not involve an audit, review, compilation or any other form of examination or attestation under generally accepted auditing standards and were not conducted on all Level III investments. We are responsible for determining the fair value of investments in good faith, and the limited procedures performed by an independent valuation firm are supplementary to the inquiries and procedures that we are required to undertake to determine the fair value of the commensurate investments.

As described above, Level II and Level III investments were valued using internal models with significant unobservable inputs and our determinations of the fair values of these investments may differ materially from the values that would have resulted if readily observable inputs had existed. Additional external factors may cause those values, and the values of investments for which readily observable inputs exist, to increase or decrease over time, which may create volatility in our earnings and the amounts of assets and stockholders' equity that we report from time to time.

Changes in the fair value of investments impacts the amount of carried interest that is recognized as well as the amount of investment income that is recognized for investments held directly and through our consolidated funds as described below. We estimate that an immediate 10% decrease in the fair value of investments held directly and through consolidated investment funds generally would result in a commensurate change in the amount of net gains (losses) from investment activities for investments held directly and through investment funds and a more significant impact to the amount of carried interest recognized, regardless of whether the investment was valued using observable market prices or management estimates with significant unobservable pricing inputs. With respect to consolidated investment funds, the impact that the consequential decrease in investment income would have on net income attributable to KKR would generally be significantly less than the amount described above, given that a majority of the change in fair value of our consolidated funds would be attributable to noncontrolling interests and therefore we are only impacted to the extent of our carried interest and our balance sheet investments.

As of March 31, 2019, there were no investments which represented greater than 5% of total investments on a GAAP basis. On a segment basis, as of March 31, 2019, investments which represented greater than 5% of total segment investments consisted of First Data Corporation and USI, Inc. valued at $1,534.0 million and $650.1 million, respectively. Our investment income on a GAAP basis and our book value can be impacted by volatility in the public markets related to our holdings of publicly traded securities, including our sizable holdings of First Data Corporation. See "—Business Environment" for a discussion on the impact of global equity markets on our financial condition and "—Segment Balance Sheet" for additional information regarding our largest holdings on a segment basis.

Recognition of Investment Income

Investment income consists primarily of the net impact of: (i) realized and unrealized gains and losses on investments; (ii) dividends; (iii) interest income; (iv) interest expense and (v) foreign exchange gains and losses relating to mark-to-market activity on foreign exchange forward contracts, foreign currency options, foreign denominated debt and debt securities issued by consolidated CFEs.

Certain of our investment funds are consolidated. When a fund is consolidated, the portion of our funds' investment income that is allocable to our carried interests and capital investments is not shown in the consolidated statements of operations. For funds that are consolidated, all investment income (loss), including the portion of a funds' investment income (loss) that is allocable to KKR's carried interest, is included in investment income (loss) on the consolidated statements of operations. The carried interest that KKR retains in net income (loss) attributable to KKR & Co. Inc. is reflected as an adjustment to net income

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(loss) attributable to noncontrolling interests. However, because certain of our funds remain consolidated and because we hold a minority economic interest in these funds' investments, our share of the investment income is less than the total amount of investment income presented in the consolidated statements of operations for these consolidated funds.

Recognition of Carried Interest in the Statement of Operations

Carried interest entitles the general partner of a fund to a greater allocable share of the fund's earnings from investments relative to the capital contributed by the general partner and correspondingly reduces noncontrolling interests' attributable share of those earnings. Carried interest is earned by the general partner of those funds to the extent that cumulative investment returns are positive and where applicable, preferred return thresholds have been met. If these investment returns decrease or turn negative in subsequent periods, recognized carried interest will be reversed and reflected as losses in the statement of operations. For funds that are not consolidated, amounts earned pursuant to carried interest are included in capital allocation-based income in the consolidated statements of operations. Amounts earned pursuant to carried interest at consolidated funds are eliminated from fees and other upon consolidation of the fund and are included as investment income (loss) in net gains (losses) from investment activities along with all of the other investment gains and losses at the consolidated fund.

Carried interest is recognized in the statement of operations based on the contractual conditions set forth in the agreements governing the fund as if the fund were terminated and liquidated at the reporting date and the fund's investments were realized at the then estimated fair values. Due to the extended durations of our private equity funds, we believe that this approach results in income recognition that best reflects our periodic performance in the management of those funds. Amounts earned pursuant to carried interest are earned by the general partner of those funds to the extent that cumulative investment returns are positive and where applicable, preferred return thresholds have been met. If these investment amounts earned decrease or turn negative in subsequent periods, recognized carried interest will be reversed and to the extent that the aggregate amount of carry distributions received by the general partner during the term of the fund exceed the amount to which the general partner was ultimately entitled, a clawback obligation would be recorded. For funds that are not consolidated, this clawback obligation, if any, is reflected as a reduction of our investment balance as this is where carried interest is initially recorded. For funds that are consolidated, this clawback obligation, if any, is reflected as an increase in noncontrolling interests in the consolidated statements of financial condition.

Prior to January 1, 2016, most of our historical private equity funds that provide for carried interest do not have a preferred return. For these funds, the management company is required to refund up to 20% of any management fees earned from its limited partners in the event that the fund recognizes carried interest. At such time as the fund recognizes carried interest in an amount sufficient to cover 20% of the management fees earned or a portion thereof, a liability due to the fund's limited partners is recorded and revenue is reduced for the amount of the carried interest recognized, not to exceed 20% of the management fees earned. The refunds to the limited partners are paid, and liabilities relieved, at such time that the underlying investment is sold and the associated carried interest is realized. In the event that a fund's carried interest is not sufficient to cover all or a portion of the amount that represents 20% of the earned management fees, such management fees would be retained and not returned to the funds' limited partners.

Most of our newer investment funds that provide for carried interest, however, have a preferred return. In this case, the management company does not refund the management fees earned from the limited partners of the fund as described above. Instead, the management fee is effectively returned to the limited partners through a reduction of the realized gain on which carried interest is calculated. To calculate the carried interest, KKR calculates whether a preferred return has been achieved based on an amount that includes all of the management fees paid by the limited partners as well as the other capital contributions and expenses paid by them to date. To the extent the fund has exceeded the preferred return at the time of a realization event, and subject to any other conditions for the payment of carried interest like netting holes, carried interest is distributed to the general partner. Until the preferred return is achieved, no carried interest is recorded. Thereafter, the general partner is entitled to a catch up allocation such that the general partner's carried interest is paid in respect of all of the fund's net gains, including the net gains used to pay the preferred return, until the general partner has received the full percentage amount of carried interest that the general partner is entitled to under the terms of the fund. In general, investment funds that entitle the management company to receive an incentive fee have a preferred return and are calculated on a similar basis that takes into account management fees paid.

Recently Issued Accounting Pronouncements

For a full discussion of recently issued accounting pronouncements, see Note 2 "Summary of Significant Accounting Policies" to the financial statements included elsewhere in this report.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There was no material change in our market risks during the three months endedMarch 31, 2019. For additional information, please refer to our Annual Report.

ITEM 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) that are designed to ensure that the information required to be disclosed by us in the reports filed or submitted by us under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and such information is accumulated and communicated to management, including the Co-Chief Executive Officers and the Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurances of achieving the desired control objectives.

 As of the period ended March 31, 2019, we carried out an evaluation, under the supervision and with the participation of our management, including the Co-Chief Executive Officers and the Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based upon that evaluation, our Co-Chief Executive Officers and Chief Financial Officer have concluded that, as of the period ended March 31, 2019, our disclosure controls and procedures were effective to accomplish their objectives at the reasonable assurance level.

Changes in Internal Control Over Financial Reporting

No changes in our internal control over financial reporting (as such term is defined in Rule 13a-15(f) of the Exchange Act) occurred during the three months endedMarch 31, 2019 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II —OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS.

The section entitled "Litigation" appearing in Note 16 "Commitments and Contingencies" to our condensed consolidated financial statements included elsewhere in this report is incorporated herein by reference.

ITEM 1A.  RISK FACTORS.

For a discussion of our potential risks and uncertainties, see the information under the heading "Risk Factors" in our Annual Report.

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ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

Share Repurchases in the First Quarter of 2019

KKR increased the available amount under our repurchase program to $500 million, which represented an increase of approximately $247 million from amounts remaining prior to the increase under the program.

Under the current repurchase program, KKR is authorized to repurchase its Class A common stock from time to time in open market transactions, in privately negotiated transactions or otherwise. The timing, manner, price and amount of any Class A common stock repurchases will be determined by KKR in its discretion and will depend on a variety of factors, including legal requirements, price and economic and market conditions. KKR expects that the program, which has no expiration date, will be in effect until the maximum approved dollar amount has been used. The program does not require KKR to repurchase any specific number of shares of Class A common stock, and the program may be suspended, extended, modified or discontinued at any time.

In addition to the repurchases of Class A common stock described above, subsequent to May 3, 2018, the repurchase program will be used for the retirement (by cash settlement or the payment of tax withholding amounts upon net settlement) of equity awards issued pursuant to our Equity Incentive Plans representing the right to receive shares of Class A common stock. From October 27, 2015 through March 31, 2019, KKR has paid approximately $236 million in cash to satisfy tax withholding and cash settlement obligations in lieu of issuing shares of Class A common stock or its equivalent upon the vesting of equity awards representing 12.6 million shares of Class A common stock. Of these amounts, equity awards representing 11.0 million shares of Class A common stock or its equivalent were retired for $190 million prior to May 3, 2018 and did not count against the amounts remaining under the repurchase program.

The table below sets forth the information with respect to repurchases made by or on behalf of KKR & Co. Inc. or any "affiliated purchaser" (as defined in Rule 10b-18(a)(3) under the Exchange Act) of our Class A common stock during the first quarter of 2019. 1,370,289 shares of Class A common stock were repurchased during the first quarter of 2019. From inception of the repurchase program through March 31, 2019, we have repurchased a total of approximately 40.6 million shares of Class A common stock under the program at an average price of approximately $16.27 per share.

Issuer Purchases of Class A Common Stock
(amounts in thousands, except share and per share amounts)
	Total Number of Shares Purchased	Average Price Paid Per Share		Cumulative Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
Month #1 (January 1, 2019 to January 31, 2019)	1,370,289	$	20.85	40,585,002	$	252,831
Month #2 (February 1, 2019 to February 28, 2019)	—	$	—	40,585,002	$	252,831
Month #3 (March 1, 2019 to March 31, 2019)	—	$	—	40,585,002	$	500,000
Total through March 31, 2019	1,370,289

Other Equity Securities

During the first quarter of 2019, 435,954 KKR Group Partnership Units were exchanged by KKR Holdings for an equal number of shares of our Class A common stock. This resulted in an increase in our ownership of the KKR Group Partnerships and a corresponding decrease in the ownership of the KKR Group Partnerships by KKR Holdings. In May 2019, approximately 1.7 million KKR Group Partnership Units are expected to be exchanged by KKR Holdings into an equal number of shares of our Class A common stock.

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ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

Not applicable.

ITEM 4.  MINE SAFETY DISCLOSURES.

Not applicable.

ITEM 5. OTHER INFORMATION

KKR will hold its 2019 annual meeting of stockholders (the "Annual Meeting") at 9:00 a.m., Eastern Time, on Monday, June 17, 2019, at the offices of Simpson Thacher & Bartlett LLP, 425 Lexington Avenue, New York, New York 10017. The close of business on May 13, 2019 has been set as the record date for the Annual Meeting (the "Record Date"). Stockholders as of the close of business on the Record Date may attend the Annual Meeting if they bring valid government-issued photo identification and proof of stock ownership. However, there will not be any matter for the stockholders to vote on and, as such, no action is expected to be taken at the Annual Meeting and KKR will not send any proxy or information statement related to the Annual Meeting.

ITEM 6. EXHIBITS.

The following is a list of all exhibits filed or furnished as part of this report:

Exhibit No.	Description of Exhibit
3.1	Certificate of Incorporation of KKR & Co. Inc. (incorporated herein by reference to Exhibit 3.2 KKR & Co. Inc. Quarterly Report on Form 10-Q filed on May 8, 2018).
3.2	Bylaws of KKR & Co. Inc. (incorporated herein by reference to Exhibit 3.3 of KKR & Co. Inc. Quarterly Report on Form 10-Q filed on May 8, 2018).
10.1	KKR & Co. Inc. 2019 Equity Incentive Plan (incorporated herein by reference to Appendix A to the KKR & Co. Inc. definitive proxy statement filed on December 14, 2018).
10.2	Form of Restricted Stock Unit Agreement of KKR & Co. Inc. (Directors).
10.3	Form of Restricted Stock Unit Agreement of KKR & Co. Inc. (Executive Officers).
31.1	Certification of Co-Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes- Oxley Act of 2002.
31.2	Certification of Co-Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.3	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Co-Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Co-Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.3	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	Interactive data files pursuant to Rule 405 of Regulation S-T: (i) the Condensed Consolidated Statements of Financial Condition as of March 31, 2019 and December 31, 2018, (ii) the Condensed Consolidated Statements of Operations for the three months ended March 31, 2019 and March 31, 2018, (iii) the Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2019 and March 31, 2018; (iv) the Condensed Consolidated Statements of Changes in Equity for the three months ended March 31, 2019 and March 31, 2018, (v) the Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2019 and March 31, 2018, and (vi) the Notes to the Condensed Consolidated Financial Statements.

The agreements and other documents filed as exhibits to this report are not intended to provide factual information or other disclosure other than with respect to the terms of the agreements or other documents themselves, and you should not rely on them for that purpose. In particular, any representations and warranties made by us in these agreements or other documents were made solely within the specific context of the relevant agreement or document and may not describe the actual state of affairs as of the date they were made or at any other time.

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SIGNATURES

Pursuant to requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		KKR & CO. INC.
		By:	/s/ William J. Janetschek
			William J. Janetschek
			Chief Financial Officer
			(principal financial and accounting officer)
DATE:	May 3, 2019

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EX-10.2

Exhibit 10.2

RESTRICTED STOCK UNIT GRANT CERTIFICATE

UNDER THE KKR & CO. INC. 2019 EQUITY INCENTIVE PLAN

(DIRECTOR)

KKR & Co. Inc. (the “Corporation”), pursuant to its KKR & Co. Inc. 2019 Equity Incentive Plan (the “Plan”), hereby grants to the Grantee set forth below, who is a member of the board of directors of the Corporation, the number of Restricted Stock Units (“RSUs”) set forth below.  The RSUs are subject to all of the terms and conditions as set forth herein, in the Restricted Stock Unit Agreement (attached hereto), and in the Plan, all of which are incorporated herein in their entirety.  Capitalized terms not otherwise defined herein shall have the meaning set forth in the Plan.

Grantee:	Participant Name
Date of Grant:	Grant Date
Number of RSUs:	Number of Awards Granted
Vesting Schedule:	The following sets forth each applicable Service Vesting Date upon which the RSUs granted hereunder shall become vested, subject to the Grantee’s continued Service through each such date and other terms and conditions contained in the attached Restricted Stock Unit Grant Agreement.
Percentage of RSUs Vesting:	Applicable Service Vesting Date:

*          *          *

THE UNDERSIGNED GRANTEE ACKNOWLEDGES RECEIPT OF THIS RESTRICTED STOCK UNIT GRANT CERTIFICATE, THE RESTRICTED STOCK UNIT AGREEMENT AND THE PLAN, AND, AS AN EXPRESS CONDITION TO THE GRANT OF RESTRICTED STOCK UNITS HEREUNDER, AGREES TO BE BOUND BY THE TERMS OF THIS RESTRICTED STOCK UNIT GRANT CERTIFICATE, THE RESTRICTED STOCK UNIT AGREEMENT AND THE PLAN.

KKR & CO. INC.	GRANTEE
	Electronic Signature
By:	Name: Participant Name
Title:	Date: Grant Date

RESTRICTED STOCK UNIT AGREEMENT

UNDER THE KKR & CO. INC. 2019 EQUITY INCENTIVE PLAN

(DIRECTOR)

Pursuant to the Restricted Stock Unit Grant Certificate (the “RSU Grant Certificate”) delivered to the Grantee (as defined in the RSU Grant Certificate), and subject to the terms of this Restricted Stock Unit Agreement (this “Restricted Stock Unit Agreement”) and the KKR & Co. Inc. 2019 Equity Incentive Plan (the “Plan”), KKR & Co. Inc. (the “Corporation”) and the Grantee agree as follows. The RSU Grant Certificate is incorporated into and deemed a part of this Restricted Stock Unit Agreement. Capitalized terms not otherwise defined herein or in Appendix A (attached hereto) shall have the meaning set forth in the Plan.

RECITALS

WHEREAS, the board of directors of the Corporation (the “Board”) has determined it is in the best interests of the Corporation to provide the Grantee with this Agreement and the RSU Grant Certificate pursuant to and in accordance with the terms of the Plan.

NOW, THEREFORE, in consideration of the mutual promises and agreements herein made and intending to be legally bound hereby, the parties hereto agree to the following:

ARTICLE I

GRANT OF RESTRICTED STOCK UNITS

Section 1.1.   Grant of Restricted Stock Units. Subject to the terms and conditions set forth herein and in the Plan, the Corporation hereby grants to the Grantee the number of Restricted Stock Units (“RSUs”) provided in the RSU Grant Certificate (with each RSU representing an unfunded, unsecured right to receive one share of Class A Common Stock upon vesting, subject to any adjustment pursuant to Section 9 of the Plan).

ARTICLE II

VESTING AND SETTLEMENT OF RESTRICTED STOCK UNITS

Section 2.1.   Vesting of RSUs.

(a) Subject to the terms and conditions contained herein and in the Plan, the RSUs shall vest as provided in the RSU Grant Certificate and this Section 2.1.

(i) Subject to the Grantee’s continued service as a director of the Corporation (“Service”) through the Service Vesting Date(s) as specified in the RSU Grant Certificate, the RSUs shall become vested on such date(s) as to the percentage(s) of RSUs set forth in the RSU Grant Certificate.

(ii) If, prior to the date the RSUs are vested as provided in Section 2.1(a)(i) above or otherwise terminate pursuant to Section 2.1(b) below: (A) the Grantee dies or experiences a Disability or (B) there occurs a Change in Control, then all unvested RSUs shall be vested as a result thereof.

(iii) All RSUs that become vested under this Section 2.1(a) shall be Settled pursuant to Section 2.2 of this Agreement.

(b) If the Grantee’s Service terminates for any reason other than due to the Grantee’s death or Disability, all then unvested RSUs shall immediately terminate and be forfeited without consideration, and no shares of Class A Common Stock shall be delivered hereunder.

1

Section 2.2.   Settlement of RSUs.

(a) To the extent that an RSU becomes vested and the applicable Service Vesting Date has occurred, the applicable percentage of RSUs shall be Settled as soon as administratively practicable on or following the applicable Service Vesting Date. The Settlement of RSUs that become vested upon a termination of Service due to Grantee’s death or Disability or due to a Change in Control, as applicable, shall not be accelerated such that any such RSUs shall be Settled on the applicable Service Vesting Date as set forth on the RSU Grant Certificate that such RSUs would otherwise have become vested. The date on which any RSU is to be Settled hereunder is referred to as a “Delivery Date.”

(b) On any Delivery Date, each vested RSU being Settled shall be cancelled in exchange for the Corporation delivering to the Grantee the number of shares of Class A Common Stock equal to the number of RSUs that are to be Settled on such Delivery Date pursuant to Section 2.2(a).  The foregoing deliveries shall in all instances be subject to Sections 4.4 and 4.6.

(c) Subject to the provisions of this Article II relating to the number of RSUs that are to be Settled on any applicable Delivery Date and solely to the extent permitted under Section 409A, if applicable, the Corporation may impose such other conditions and procedures in relation to the Settlement of RSUs as it may reasonably determine.

Section 2.3.   No Dividend Payments. The RSUs granted to the Grantee hereunder do not include the right to receive any dividend payments.

ARTICLE III

RESTRICTIONS ON TRANSFERS

Section 3.1.   Transfer Restrictions on RSUs.

(a) The Grantee may not Transfer all or any portion of the Grantee’s RSUs to any Person (including to any Permitted Transferee) without the prior written consent of the Administrator, which consent may be given or withheld, or made subject to such conditions (including the receipt of such legal or tax opinions and other documents that the Corporation may require) as determined by the Administrator.

(b) Prior to a Transfer of any RSUs to any Person that the Administrator consents to, such Person must consent in writing to be bound by this Agreement and deliver such consent to the Administrator.

(c) Any purported Transfer of RSUs that is not in accordance with this Section 3.1 is null and void.

ARTICLE IV

MISCELLANEOUS

Section 4.1.   Governing Law.This Agreement and RSU Grant Certificate shall be governed by, and construed in accordance with, the laws of the State of New York, United States of America, without giving effect to any otherwise governing principles of conflicts of law that would apply the Laws of another jurisdiction.

Section 4.2.   Plan.The terms and provisions of the Plan are incorporated herein by reference. In the event of a conflict or inconsistency between the terms and provisions of the Plan and the provisions of this Agreement, the Plan shall govern and control.

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Section 4.3.   Arbitration. EACH PARTY HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE U.S. FEDERAL AND STATE COURTS LOCATED IN NEW YORK, NEW YORK FOR THE PURPOSE OF ANY JUDICIAL PROCEEDING BROUGHT IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION 4.3, OR ANY JUDICIAL PROCEEDING ANCILLARY TO AN ARBITRATION OR CONTEMPLATED ARBITRATION ARISING OUT OF OR RELATING TO OR CONCERNING THIS AGREEMENT.  Any controversy or claim arising out of or relating to this Agreement (or the breach thereof) shall be settled by arbitration conducted by a single arbitrator in New York, New York in accordance with the then-existing Rules of Arbitration of the International Chamber of Commerce.  If the parties to the dispute fail to agree on the selection of an arbitrator within 30 days of the receipt of the request for arbitration, the International Chamber of Commerce shall make the appointment.  The arbitrator shall be a lawyer and shall conduct the proceedings in the English language. Judgment on the award rendered by the arbitrators may be entered in any court having jurisdiction thereof.  The arbitrators shall have the authority to award any remedy or relief that a court of competent jurisdiction could order or grant, including, without limitation, the issuance of an injunction. However, either party may, without inconsistency with this arbitration provision, bring an action or special proceeding in any court of competent jurisdiction for the purpose of compelling the other party to arbitrate, seeking temporary or preliminary relief in aid of an arbitration hereunder, or enforcing an arbitration award. The Grantee irrevocably appoints the Secretary or General Counsel of the Corporation as such Grantee’s agent for service of process in connection with any such action or proceeding and agrees that service of process upon such agent, who shall promptly advise such Grantee of any such service of process, shall be deemed in every respect effective service of process upon the Grantee in any such action or proceeding. Except as necessary in court proceedings to enforce this arbitration provision or an award rendered hereunder, to obtain interim relief or as otherwise required by law, neither a party nor an arbitrator may disclose the content or results of any arbitration hereunder without the prior written consent of the Corporation and the Grantee, other than general statements.

Section 4.4.   Remedies; Recoupment; Right to Set-Off.

(a) The rights and remedies provided by this Agreement are cumulative and the use of any one right or remedy by any party shall not preclude or waive its right to use any or all other remedies.  Said rights and remedies are given in addition to any other rights the parties may have by Law or under the terms of any other applicable agreement.

(b) To the extent required or advisable, pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act and any rules promulgated thereunder and any other similar Laws including, as applicable, but not limited to the European Directives 2011/61/EU, 2013/36/EU and 2014/91/EU, the Administrator may specify in any other document or a policy to be incorporated into this Agreement by reference, that the Grantee’s rights, payments, and benefits with respect to RSUs awarded hereunder and/or Class A Common Stock delivered to the Grantee in respect of RSUs awarded hereunder shall be subject to reduction, cancellation, forfeiture or recoupment.

(c) The Administrator may set-off any amounts due under this Agreement or otherwise against any amounts which may be owed to the Corporation or its Affiliates, as applicable, by the Grantee under this Agreement, any other relationship or otherwise.  The Grantee hereby expressly authorizes the Corporation and its Affiliates to take any and all actions on the Grantee’s behalf (including, without limitation, payment, credit and satisfaction of amounts owed) in connection with the set-off of any amounts owed to the Corporation or its Affiliates or otherwise.

Section 4.5.   Amendments and Waivers.

(a) This Agreement (including the RSU Grant Certificate and Appendices A and B attached hereto, as applicable) may be amended, supplemented, waived or modified only in accordance with Section 4(b) of the Plan or Section 13 of the Plan, as applicable, or as may be required for purposes of compliance or enforceability with applicable local Law; provided, however, that the RSU Grant Certificate shall be deemed amended from time to time to reflect any adjustments provided for under the Plan.

(b) No failure or delay by any party in exercising any right, power or privilege hereunder (other than a failure or delay beyond a period of time specified herein) shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege.

3

Section 4.6.   Withholding.The provisions of Section 4(d) of the Plan are incorporated herein by reference and made a part hereof. Regardless of any action the Corporation takes with respect to any or all income tax, social insurance, payroll tax, payment on account or other tax-related items related to the Grantee’s participation in the Plan and legally applicable to the Grantee (“Tax-Related Items”), the Grantee acknowledges that the ultimate liability for all Tax-Related Items is and remains the Grantee’s responsibility and may exceed the amount, if any, actually withheld by the Corporation.  The Grantee further acknowledges that the Corporation (1) makes no representations or undertakings regarding the treatment of any Tax-Related Items and (2) is under no obligation to structure the terms of the RSUs to reduce or eliminate the Grantee’s liability for Tax-Related Items or achieve any particular tax result.The Corporation may refuse to issue or deliver Class A Common Stock or the proceeds of the sale of Class A Common Stock, if the Grantee fails to comply with the Grantee’s obligations in connection with the Tax-Related Items as set forth in this Section 4.6.

Section 4.7.   Notices.All notices, requests, claims, demands and other communications hereunder shall be in writing and shall be given (and shall be deemed to have been duly given upon receipt) by delivery in person, by courier service, by fax or by registered or certified mail (postage prepaid, return receipt requested) to the respective parties at the following addresses (or at such other address for a party as shall be specified):

(a) If to the Corporation, to:

KKR & Co. Inc.

9 West 57th Street, Suite 4200

New York, New York 10019

U.S.A.

Attention: General Counsel and Secretary

(b) If to the Grantee, to the most recent address for the Grantee in the books and records of the Corporation.

Section 4.8.   Entire Agreement; Termination of Agreement; Survival.

(a) This Agreement constitutes the entire agreement among the parties hereto pertaining to the subject matter hereof and supersedes all prior agreements and understandings, whether oral or written, pertaining thereto. The Grantee acknowledges that the grant of RSUs provided for under this Agreement is in full satisfaction of any and all grants of equity or equity-based awards that representatives of the Corporation or its Affiliates, on or prior to the date hereof, may have informed the Grantee that such Grantee is entitled to receive.

(b) This Agreement shall terminate when the Grantee and all Permitted Transferees cease to hold any of the RSUs that have been granted hereunder. Notwithstanding anything to the contrary herein, this Article IV shall survive any termination of this Agreement.

Section 4.9.   Severability.If any term or other provision of this Agreement is held to be invalid, illegal or incapable of being enforced by any rule of Law, or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions is not affected in any manner materially adverse to any party.  Upon a determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the fullest extent possible.

4

Section 4.10.   Binding Effect.This Agreement shall be binding upon and inure to the benefit of all of the parties and, to the extent permitted by this Agreement, their successors, executors, administrators, heirs, legal representatives and assigns.

Section 4.11.   Appendices. Appendices A and B constitute part of this Agreement.

Section 4.12.   Further Assurances. The Grantee shall perform all other acts and execute and deliver all other documents as may be necessary or appropriate to carry out the purposes and intent of this Agreement.

Section 4.13.   Section 409A; Service.

(a) This Section 4.13(a) applies to Grantees who are U.S. tax residents (such as, a U.S. citizen, green card holder or a U.S. tax resident under the substantial presence test) to the extent applicable.  All references to any “separation from service” or termination of Services to be provided by the Grantee shall be deemed to refer to a “separation from service” within the meaning of Section 409A, if applicable.  Notwithstanding anything herein to the contrary, (i) if at the time of the Grantee’s termination of Service the Grantee is a “specified employee” as defined in Section 409A of the Code and the deferral of the commencement of any payments or delivery of Class A Common Stock otherwise payable or provided hereunder as a result of such termination of Service is necessary in order to prevent any accelerated or additional tax under Section 409A, then, to the extent that Section 409A applies to the RSUs, the Corporation will defer the commencement of the payment of any such payments or delivery hereunder (without any reduction in such payments or delivery of Class A Common Stock ultimately paid or provided to the Grantee) until the date that is six months following the Grantee’s termination of Service (or the earliest date as is permitted under Section 409A) and (ii) if any other payments or other deliveries due to the Grantee hereunder could cause the application of an accelerated or additional tax under Section 409A, such payments or other deliveries shall be deferred if deferral will make such payment or other delivery compliant under Section 409A, or otherwise such payment or other delivery shall be restructured, to the extent possible, in a manner, determined by the Administrator, that does not cause such an accelerated or additional tax.  The Corporation shall use commercially reasonable efforts to implement the provisions of this Section 4.13(a) in good faith; provided that none of the Corporation, the Administrator nor any of the Corporation’s or its affiliates’employees, directors or representatives shall have any liability to the Grantee with respect to this Section 4.13(a).

(b) Nothing in this Agreement shall be deemed to obligate the Corporation to employ the Grantee in any capacity whatsoever or to prohibit or restrict the Corporation from terminating the Grantee’s Service at any time or for any reason whatsoever.

Section 4.14.   Counterparts.This Agreement may be executed and delivered (including by facsimile transmission) in one or more counterparts, and by the different parties hereto in separate counterparts, each of which when executed and delivered shall be deemed to be an original but all of which taken together shall constitute one and the same agreement.  Copies of executed counterparts transmitted by telecopy or other electronic transmission service shall be considered original executed counterparts for purposes of this Agreement.

[Rest of page intentionally left blank]

5

IN WITNESS WHEREOF, the Corporation has executed this Agreement as of the date specified under the signature of the Grantee.

KKR & CO. INC.

By:
	Name:
	Title:

6

IN WITNESS WHEREOF, the undersigned Grantee has caused this counterpart signature page to this Agreement to be duly executed as ofthe date specified under the signature of the Grantee.

“GRANTEE”

Electronic Signature

Name: Participant Name

Dated: Grant Date

7

APPENDIX A

DEFINITIONS

In addition to the defined terms set forth in the Plan, the following terms shall have the following meanings for purposes of the Agreement:

“Disability” means, as to any Person, such Person’s inability to perform in all material respects such Person’s duties and responsibilities to Corporation by reason of a physical or mental disability or infirmity which inability is reasonably expected to be permanent and has continued (i) for a period of six consecutive months or (ii) such shorter period as the Administrator may reasonably determine in its sole discretion.

“Law” means any statute, law, ordinance, regulation, rule, code, executive order, injunction, judgment, decree or other order issued or promulgated by any national, supranational, state, federal, provincial, local or municipal government or any administrative or regulatory body with authority therefrom with jurisdiction over the Corporation or any Grantee, as the case may be.

“Permitted Transferee” means (A) any person who is a “family member” of the Grantee, as such term is used in the instructions to Form S-8 under the Securities Act of 1933, as amended, or any successor form of registration statement promulgated by the Securities and Exchange Commission (collectively, the “Immediate Family Members”); (B) a trust solely for the benefit of the Grantee and his or her Immediate Family Members; (C) a partnership or limited liability company whose only partners or stockholders are the Grantee and his or her Immediate Family Members;  (D) a beneficiary to whom donations are eligible to be treated as “charitable contributions” for federal income tax purposes; or (E) any other Person the Corporation consents to.

“Person” means any individual, corporation, partnership, limited liability company, trust, joint stock company, business trust, unincorporated association, joint venture, governmental authority or other entity of any nature whatsoever.

“RSU Grant Certificate” means the RSU Grant Certificate delivered to the Grantee and attached to this Agreement, as the same may be modified pursuant to Section 4.5(a) of the Agreement.

“Section 409A” means Section 409A of the U.S. Internal Revenue Code of 1986, as the same may be amended from time to time, and the applicable regulations, including temporary regulations, promulgated under such Section, as such regulations may be amended from time to time (including corresponding provisions of succeeding regulations).

 “Service Vesting Date” means, with respect to any RSU, the date set forth in the RSU Grant Certificate as the “Service Vesting Date.”

“Settle”, “Settled” or “Settlement” means the discharge of the Corporation’s obligations in respect of an RSU through the delivery to the Grantee of Class A Common Stock in accordance with Article II.

“Transfer” or “Transferred” means with respect to any RSU or Class A Common Stock, as applicable, any (i) sale, assignment, transfer or other disposition thereof or any interests therein or rights attached thereto, whether voluntarily or by operation of Law, or (ii) creation or placement of any mortgage, claim, lien, encumbrance, conditional sales or other title retention agreement, right of first refusal, preemptive right, pledge, option, charge, security interest or other similar interest, easement, judgment or imperfection of title of any nature whatsoever.

A-1

APPENDIX B

ADDITIONAL TERMS AND CONDITIONS

The terms and conditions in this Appendix B supplement the provisions of the Agreement, unless otherwise indicated herein.  Capitalized terms contained in this Appendix B and not defined herein shall have the same meaning as such terms are defined in the Agreement into which this Appendix B is incorporated by reference therein and to which this Appendix B is attached, or the Plan, as applicable.

1.          Data Protection

The Grantee is hereby notified of the collection, use and transfer, in electronic or other form, of the Grantee’s personal data as described in this Agreement, any other RSU materials and the Corporation’s applicable Privacy Notice available at KKR Central.  Such personal data may be collected, used and transferred by and among, as applicable, the Corporation, its Affiliates and any third parties assisting (presently or in the future) with the implementation, administration and management of the Plan, such as Fidelity Stock Plan Services, LLC (“Fidelity”) or its successor for the exclusive purpose of implementing, administering and managing the Grantee’s participation in the Plan.  Where required under applicable law, personal data also may be disclosed to certain securities or other regulatory authorities where the Corporation’s shares are listed or traded or regulatory filings are made, or to certain tax authorities for compliance with the Corporation’s and/or the Grantee’s tax obligations.  The Grantee understands that the collection, use and transfer of his or her personal data is mandatory for compliance with applicable law and necessary for the performance of the Plan and that the Grantee’s refusal to provide such personal data would make it impossible for the Corporation to perform its contractual obligations and may affect the Grantee’s ability to participate in the Plan.

2.          Nature of Grant

In accepting the Award, the Grantee acknowledges, understands and agrees that:

(a) the Plan is established voluntarily by the Corporation, it is discretionary in nature and it may be modified, amended, suspended or terminated by the Corporation at any time;

(b) the grant of the RSUs is exceptional, voluntary and occasional and does not create any contractual or other right to receive future grants, or benefits in lieu of RSUs, even if RSUs have been granted in the past;

(c) all decisions with respect to future grants of RSUs, if any, will be at the sole discretion of the Corporation;

(d) the Grantee is voluntarily participating in the Plan;

(e) the RSUs and the Class A Common Stock subject to the RSUs, and the income from and value of same, are extraordinary items, which are outside the scope of the Grantee’s service contract, if any;

(f) the grant of RSUs and the Grantee’s participation in the Plan will not be interpreted to form an employment or service contract or relationship with the Corporation;

(g) the future value of the underlying Class A Common Stock is unknown, indeterminable and cannot be predicted with certainty;

(h) no claim or entitlement to compensation or damages shall arise from forfeiture of the RSUs resulting from termination of the Grantee’s Service (for any reason whatsoever and whether or not later found to be invalid or in breach of the Grantee’s service agreement, if any), and in consideration of the grant of RSUs, the Grantee agrees not to institute any claim against the Corporation or any Affiliate;

(i) subject to Section 9 of the Plan, the RSUs and the benefits under the Plan, if any, will not automatically transfer to another company in the case of a merger, take-over or transfer of liability; and

(j) neither the Corporation nor any Affiliate shall be liable for any foreign exchange rate fluctuation between the Grantee’s local currency and the United States Dollar that may affect the value of the RSUs or of any amounts due to the Grantee pursuant to the vesting of the RSUs or the subsequent sale of any Class A Common Stock acquired upon vesting.

B-1

3.          No Advice Regarding Award

The Corporation is not providing any tax, legal or financial advice, nor is the Corporation making any recommendations regarding the Grantee’s participation in the Plan, or the Grantee’s acquisition or sale of the underlying Class A Common Stock.  The Grantee should consult with his or her own personal tax, legal and financial advisors regarding his or her participation in the Plan before taking any action related to the Plan.

4.          Language

If the Grantee has received the Agreement or any other document related to the Plan translated into a language other than English and if the meaning of the translated version is different than the English version, the English version will control.

5.          Electronic Delivery and Acceptance

The Corporation may, in its sole discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means.  The Grantee hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Corporation or a third party designated by the Corporation.

6.          Restrictions on Trading in Securities

In addition to any policies and procedures which govern Grantee’s ability to trade in Class A Common Stock as well as other securities of the Corporation set forth in the Corporation’s trading window policy, Grantee may be subject to additional securities trading and market abuse laws depending on the Grantee’s country, the broker’s country or where the Class A Common Stock is listed.  These laws may affect Grantee’s ability to accept, acquire, sell or otherwise dispose of Class A Common Stock or rights to Class A Common Stock (e.g., RSUs) or rights linked to the value of Class A Common Stock (e.g., phantom awards, futures), particularly during such times as the Grantee is considered to have access to material nonpublic information concerning the Corporation (as defined by the Laws of the applicable country).  Local insider trading Laws may prohibit the cancellation or amendment of orders placed by the Grantee before he or she possessed inside information.  Furthermore, the Grantee could be prohibited from (i) disclosing the inside information to any third party and (ii) “tipping” third parties or causing them otherwise to buy or sell securities. Any restrictions under these Laws or regulations are separate from and in addition to any policies and procedures set forth by the Corporation.  The Grantee is responsible for ensuring compliance with any applicable restrictions and should consult his or her personal legal advisor on this matter.

7.          Foreign Asset / Account and/or Tax Reporting and Exchange Control Obligations

Depending upon the country to which Laws the Grantee is subject, the Grantee may have certain exchange control, foreign asset and/or account reporting requirements that may affect the Grantee’s ability to acquire or hold Class A Common Stock under the Plan or cash received from participating in the Plan (including from any sale proceeds arising from the sale of Class A Common Stock) in the Grantee’s Fidelity brokerage account or a bank or other brokerage account outside the Grantee’s country of residence. The Grantee’s country may require that he or she report such accounts, assets or transactions to the applicable authorities in the Grantee’s country.  The Grantee also may be required to repatriate sale proceeds or other funds received as a result of his or her participation in the Plan to his or her country through a designated bank or broker and/or within a certain time after receipt. The Grantee is responsible for knowledge of and compliance with any such regulations and should speak with his or her own personal tax, legal and financial advisors regarding same.

8.          Special Terms and Conditions for Non-U.S. Grantees

The following terms and conditions are applicable to Grantees who reside or work outside the United States.  The Grantee is advised to seek appropriate professional advice as to how the relevant Laws in the Grantee’s country may apply to his or her situation.

B-2

France: Consent to Receive Information in English

By accepting the RSUs, the Grantee confirms having read and understood the Plan and the Agreement, including all terms and conditions included therein, which were provided in the English language.  The Grantee accepts the terms of these documents accordingly.

En acceptant cette RSUs, le Titulaire des RSUs confirme avoir lu et compris le Plan et le Contrat y relatifs, incluant tous leurs termes et conditions, qui ont ete transmis en langue anglaise. Le Titulaire des RSUs accepte les dispositions de ces documents en connaissance de cause.

B-3

EX-10.3

Exhibit 10.3

RESTRICTED STOCK UNIT GRANT CERTIFICATE

UNDER THE KKR & CO. INC. 2019 EQUITY INCENTIVE PLAN

(EXECUTIVE)

KKR & Co. Inc. (the “Corporation”), pursuant to its KKR & Co. Inc. 2019 Equity Incentive Plan (the “Plan”), hereby grants to the Grantee set forth below the number of Restricted Stock Units (“RSUs”) set forth below.  The RSUs are subject to all of the terms and conditions as set forth herein, in the Restricted Stock Unit Agreement (attached hereto), and in the Plan, all of which are incorporated herein in their entirety.  Capitalized terms not otherwise defined herein shall have the meaning set forth in the Plan.

Grantee:	Participant Name
Date of Grant:	Grant Date
Number of RSUs:	Number of Awards Granted
Vesting Schedule:	The following sets forth each applicable Service Vesting Date upon which the RSUs granted hereunder shall become vested, subject to the Grantee’s continued Employment through each such date and other terms and conditions contained in the attached Restricted Stock Unit Grant Agreement.
Percentage of RSUs Vesting:	Applicable Service Vesting Date:
Post-Settlement Transfer Restrictions under Section 3.3 of the Restricted Stock Unit Agreement	□  Applicable     □  Inapplicable
Minimum Retained Ownership Percentage under Section 3.4 of the Restricted Stock Unit Agreement:	□  Applicable     □  Inapplicable Minimum Retained Ownership Percentage if applicable: 15%

*          *          *

THE UNDERSIGNED GRANTEE ACKNOWLEDGES RECEIPT OF THIS RESTRICTED STOCK UNIT GRANT CERTIFICATE, THE RESTRICTED STOCK UNIT AGREEMENT AND THE PLAN, AND, AS AN EXPRESS CONDITION TO THE GRANT OF RESTRICTED STOCK UNITS HEREUNDER, AGREES TO BE BOUND BY THE TERMS OF THIS RESTRICTED STOCK UNIT GRANT CERTIFICATE, THE RESTRICTED STOCK UNIT AGREEMENT AND THE PLAN.

KKR & CO. INC.	GRANTEE
	Electronic Signature
By:	Name: Participant Name
Title:	Date: Grant Date

RESTRICTED STOCK UNIT AGREEMENT

UNDER THE KKR & CO. INC. 2019 EQUITY INCENTIVE PLAN

(EXECUTIVE)

Pursuant to the Restricted Stock Unit Grant Certificate (the “RSU Grant Certificate”) delivered to the Grantee (as defined in the RSU Grant Certificate), and subject to the terms of this Restricted Stock Unit Agreement (this “Restricted Stock Unit Agreement”) and the KKR & Co. Inc. 2019 Equity Incentive Plan (the “Plan”), KKR & Co. Inc. (the “Corporation”) and the Grantee agree as follows. The RSU Grant Certificate is incorporated into and deemed a part of this Restricted Stock Unit Agreement. Capitalized terms not otherwise defined herein or in Appendix A (attached hereto) shall have the meaning set forth in the Plan.

RECITALS

WHEREAS, the board of directors of the Corporation (the “Board”) has determined it is in the best interests of the Corporation to provide the Grantee with this Agreement and the RSU Grant Certificate pursuant to and in accordance with the terms of the Plan.

NOW, THEREFORE, in consideration of the mutual promises and agreements herein made and intending to be legally bound hereby, the parties hereto agree to the following:

ARTICLE I

GRANT OF RESTRICTED STOCK UNITS

Section 1.1.   Grant of Restricted Stock Units. Subject to the terms and conditions set forth herein and in the Plan, the Corporation hereby grants to the Grantee the number of Restricted Stock Units (“RSUs”) provided in the RSU Grant Certificate (with each RSU representing an unfunded, unsecured right to receive one share of Class A Common Stock upon vesting, subject to any adjustment pursuant to Section 9 of the Plan). The grant of RSUs hereunder is conditioned upon the Grantee’s agreement to and compliance with the covenants and obligations contained in the confidentiality and restrictive covenant obligations, attached hereto as Appendix C (the “Confidentiality and Restrictive Covenant Agreement”) and incorporated herein by reference.

ARTICLE II

VESTING AND SETTLEMENT OF RESTRICTED STOCK UNITS

Section 2.1.   Vesting of RSUs.

(a) Subject to the terms and conditions contained herein and in the Plan, the RSUs shall vest as provided in the RSU Grant Certificate and this Section 2.1.

(i) Subject to the Grantee’s continued Employment through the Service Vesting Date(s) as specified in the RSU Grant Certificate, the RSUs shall become vested on such date(s) as to the percentage(s) of RSUs set forth in the RSU Grant Certificate.

(ii) If, prior to the date the RSUs are vested or such RSUs otherwise terminate and are forfeited: (A) the Grantee's Employment terminates due to the Grantee's Retirement, then all Retirement RSUs shall be vested; (B) the Grantee dies or experiences a Disability, then all unvested RSUs shall be vested; and (C) if a Change in Control occurs prior to any termination of the Grantee's Employment, then all or any portion of any unvested RSUs may be vested, subject, in each case of clause (A), (B) or (C), to the discretion of the Administrator.  Notwithstanding the foregoing, if the Corporation receives an opinion of counsel that there has been a legal judgment or legal development in the Grantee’s jurisdiction that would likely result in the favorable treatment applicable to the Retirement RSUs pursuant to this Section 2.1(a)(ii) being deemed unlawful and/or discriminatory, then the Corporation will not apply the favorable treatment at the time the Grantee's Employment terminates due to the Grantee's Retirement under clause (A) above, and the RSUs will be treated as set forth in Section 2.1(a)(i), 2.1(b), 2.1(c) or the other provisions of this Section 2.1(a)(ii), as applicable.

(iii) All RSUs that become vested under this Section 2.1(a) shall be Settled pursuant to Section 2.2 of this Agreement.

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(b) If the Grantee’s Employment terminates for any reason other than due to the Grantee’s death, Disability or Retirement, all then unvested RSUs (including any RSUs that are not Retirement RSUs) shall immediately terminate and be forfeited without consideration, and no shares of Class A Common Stock shall be delivered hereunder.

(c) Unless otherwise agreed in writing between the Grantee and the Designated Service Recipient, the Grantee’s right to vest in the RSUs under the Plan, if any, will terminate effective as of the date that the Grantee is no longer actively providing services (even if still considered employed or engaged under local Law) and will not be extended by any notice period mandated under local Law (e.g., active Employment would not include a period of “garden leave” or similar period pursuant to local Law), and all unvested RSUs shall immediately be forfeited upon such date.

Section 2.2.   Settlement of RSUs.

(a) To the extent that an RSU becomes vested and the applicable Service Vesting Date has occurred, the applicable percentage of RSUs shall be Settled as soon as administratively practicable on or following the applicable Service Vesting Date. The Settlement of RSUs that become vested upon a termination of Employment due to Grantee’s Retirement, death or Disability or due to a Change in Control, as applicable, shall not be accelerated such that any such RSUs shall be Settled on the applicable Service Vesting Date as set forth on the RSU Grant Certificate that such RSUs would otherwise have become vested. The date on which any RSU is to be Settled hereunder is referred to as a “Delivery Date.”

(b) On any Delivery Date, each vested RSU being Settled shall be cancelled in exchange for the Corporation delivering, or causing to be delivered by the Designated Service Recipient, to the Grantee either (i) the number of shares of Class A Common Stock equal to the number of RSUs that are to be Settled on such Delivery Date pursuant to Section 2.2(a) or (ii) an amount of cash, denominated in U.S. dollars, equal to the Fair Market Value of the foregoing number of shares of Class A Common Stock (a “Cash Payment”). The Administrator may elect in its sole discretion whether to Settle the RSUs in Class A Common Stock or by a Cash Payment. Any of the foregoing payments or deliveries shall in all instances be subject to Sections 4.4 and 4.6.

(c) Subject to the provisions of this Article II relating to the number of RSUs that are to be Settled on any applicable Delivery Date and solely to the extent permitted under Section 409A, if applicable, the Corporation may impose such other conditions and procedures in relation to the Settlement of RSUs as it may reasonably determine.

Section 2.3.   No Dividend Payments. The RSUs granted to the Grantee hereunder do not include the right to receive any dividend payments.

ARTICLE III

RESTRICTIONS ON TRANSFERS AND OTHER LIMITATIONS

Section 3.1.   Transfer Restrictions on RSUs.

(a) The Grantee may not Transfer all or any portion of the Grantee’s RSUs to any  Person (including to any Permitted Transferee) without the prior written consent of the Administrator, which consent may be given or withheld, or made subject to such conditions (including the receipt of such legal or tax opinions and other documents that the Corporation may require) as determined by the Administrator.

(b) Prior to a Transfer of any RSUs to any Person that the Administrator consents to, such Person must consent in writing to be bound by this Agreement and deliver such consent to the Administrator.

(c) Any purported Transfer of RSUs that is not in accordance with this Section 3.1 is null and void.

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Section 3.2.   Confidentiality and Restrictive Covenant Agreement.TheGrantee acknowledges and agrees that the Grantee is bound by and will comply with the Confidentiality and Restrictive Covenant Agreement contained in Appendix C and any other similar agreements that the Grantee has entered into with the Designated Service Recipient, the Corporation, KKR Holdings L.P., KKR Associates Holdings L.P., or any other member of the KKR Group, as applicable, as such agreements may be amended from time to time.  If the Grantee is a limited partner of KKR Holdings L.P. or KKR Associates Holdings L.P., the Grantee further acknowledges and agrees that references to a Confidentiality and Restrictive Covenant Agreement in the limited partnership agreements of KKR Holdings L.P. and KKR Associates Holdings L.P. shall be deemed to include the Confidentiality and Restrictive Covenant Agreement contained in Appendix C hereto.

Section 3.3.    Post-Settlement Transfer Restrictions on Class A Common Stock.

The provisions of this Section 3.3 and any references to a Transfer Restricted Class A Common Stock shall not be applicable to the RSUs granted to the Grantee hereunder if so indicated on the RSU Grant Certificate.

(a) The Grantee may not Transfer all or any portion of the Grantee’s Transfer Restricted Class A Common Stock (as defined below) (including to any Permitted Transferee) without the prior written consent of the Administrator, which consent may be given or withheld, or made subject to such conditions (including the receipt of such legal or tax opinions and other documents that the Corporation may require) as determined by the Administrator. Any permitted transfer pursuant to this Section 3.3(a) shall be made in accordance with Section 3.1.

(b) A “Transfer Restricted Class A Common Stock” refers to all Class A Common Stock or Cash Payment delivered upon Settlement of a vested RSU until (i) the first anniversary of the applicable Service Vesting Date, in the case of 50% of such Class A Common Stock or Cash Payment and (ii) the second anniversary of such Service Vesting Date, in the case of the remaining 50% of such Class A Common Stock or Cash Payment.

(c) If the Grantee breaches in any significant or intentional manner, as determined by the Administrator in its sole discretion, any of the Grantee’s covenants in Appendix C, the Administrator, in its sole discretion, may direct that the Grantee forfeit all or a portion of the Transfer Restricted Class A Common Stock held by the Grantee.  If the Grantee’s Employment is terminated for Cause, as determined by the Administrator in its sole discretion, all Transfer Restricted Class A Common Stock held by the Grantee shall automatically be forfeited, unless otherwise determined by the Administrator, in its sole discretion.  The Grantee hereby consents and agrees to immediately surrender and deliver such Transfer Restricted Class A Common Stock to the Corporation, without the payment of any consideration, receipt of any further notice or fulfillment of any other condition.  Any forfeiture of Transfer Restricted Class A Common Stock pursuant to this Section 3.3(c) shall require no additional procedures on the part of the Corporation or its Affiliates.

(d) Any purported Transfer of Transfer Restricted Class A Common Stock that is not in accordance with this Section 3.3 is null and void.  In the event of a property settlement or separation agreement between the Grantee and his or her spouse, the Grantee agrees that he or she shall use reasonable efforts to retain all of his or her RSUs and Transfer Restricted Class A Common Stock and shall reimburse his or her spouse for any interest he or she may have under this Agreement out of funds, assets or proceeds separate and distinct from his or her interest under this Agreement.

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Section 3.4.   Minimum Retained Ownership Requirement.

The provisions of this Section 3.4 shall not be applicable to the RSUs granted to the Grantee hereunder if so indicated on the RSU Grant Certificate.

(a) For so long as the Grantee retains his or her Employment, the Grantee (collectively with all Permitted Transferees, if applicable) must continuously hold an aggregate number of Class A Common Stock Equivalents (defined below) that is at least equal to the Minimum Retained Ownership Percentage of the cumulative amount of (x) all RSUs granted to the Grantee under this Agreement and (y) all other RSUs subject to a minimum retained ownership requirement that have been or are hereafter granted to the Grantee under the Plan, in each case, that have become vested pursuant to Section 2 (or similar provision in any other applicable grant agreement), prior to any net Settlement permitted by Section 4.6 (or similar provision in any other applicable grant agreement).

(b) “Class A Common Stock Equivalents” means any combination of: (i) RSUs that are or become vested pursuant to Section 2 of this Agreement and shares of Class A Common Stock delivered upon Settlement of any such RSUs (even if they are Transfer Restricted Class A Common Stock) and (ii) RSUs subject to a minimum retained ownership requirement granted to the Grantee under the Plan that are or become vested pursuant to a provision similar to Section 2 of this Agreement and shares of Class A Common Stock delivered upon Settlement of any such RSUs (even if a provision similar to the transfer restrictions on Transfer Restricted Class A Common Stock has not yet been satisfied).

(c) Any purported Transfer of any Class A Common Stock that would result in a violation of this Section 3.4 is null and void. Notwithstanding anything to the contrary contained in this Agreement (including, without limitation, Section 4.8) this Section 3.4 shall survive any termination of this Agreement.

Section 3.5.   Waiver of Restrictions. The Administrator may, from time to time, waive the provisions of Section 3.3 or Section 3.4 of this Agreement, subject to the imposition of any conditions or further requirements, as determined by the Administrator in its sole discretion.  Without limiting the foregoing, to the extent the Administrator waives the application of Section 3.3 or Section 3.4, (i) the Administrator may impose equivalent restrictions on the Grantee's other equity, if any, held in KKR Holdings L.P., the Corporation or any of their respective Affiliates (or any of their respective equity incentive plans) and (ii) the Grantee hereby consents in advance to the imposition of such equivalent restrictions for purposes of the governing documents of Grantee’s other equity, if any, held in KKR Holdings L.P., the Corporation or any of their respective Affiliates (or any of their respective equity incentive plans).

ARTICLE IV

MISCELLANEOUS

Section 4.1.   Governing Law.This Agreement and RSU Grant Certificate shall be governed by, and construed in accordance with, the laws of the State of New York, United States of America, without giving effect to any otherwise governing principles of conflicts of law that would apply the Laws of another jurisdiction.

Section 4.2.   Plan.The terms and provisions of the Plan are incorporated herein by reference. In the event of a conflict or inconsistency between the terms and provisions of the Plan and the provisions of this Agreement, the Plan shall govern and control.

Section 4.3.   Arbitration. EACH PARTY HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE U.S. FEDERAL AND STATE COURTS LOCATED IN NEW YORK, NEW YORK FOR THE PURPOSE OF ANY JUDICIAL PROCEEDING BROUGHT IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION 4.3, OR ANY JUDICIAL PROCEEDING ANCILLARY TO AN ARBITRATION OR CONTEMPLATED ARBITRATION ARISING OUT OF OR RELATING TO OR CONCERNING THIS AGREEMENT.  Any controversy or claim arising out of or relating to this Agreement (or the breach thereof) shall be settled by arbitration conducted by a single arbitrator in New York, New York in accordance with the then-existing Rules of Arbitration of the International Chamber of Commerce.  If the parties to the dispute fail to agree on the selection of an arbitrator within 30 days of the receipt of the request for arbitration, the International Chamber of Commerce shall make the appointment.  The arbitrator shall be a lawyer and shall conduct the proceedings in the English language. Judgment on the award rendered by the arbitrators may be entered in any court having jurisdiction thereof.  The arbitrators shall have the authority to award any remedy or relief that a court of competent jurisdiction could order or grant, including, without limitation, the issuance of an injunction. However, either party may, without inconsistency with this arbitration provision, bring an action or special proceeding in any court of competent jurisdiction for the purpose of compelling the other party to arbitrate, seeking temporary or preliminary relief in aid of an arbitration hereunder, or enforcing an arbitration award. The Grantee irrevocably appoints the Secretary or General Counsel of the Corporation as such Grantee’s agent for service of process in connection with any such action or proceeding and agrees that service of process upon such agent, who shall promptly advise such Grantee of any such service of process, shall be deemed in every respect effective service of process upon the Grantee in any such action or proceeding. Except as necessary in court proceedings to enforce this arbitration provision or an award rendered hereunder, to obtain interim relief or as otherwise required by law, neither a party nor an arbitrator may disclose the content or results of any arbitration hereunder without the prior written consent of the Corporation and the Grantee, other than general statements.

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Section 4.4.   Remedies; Recoupment; Right to Set-Off.

(a) The rights and remedies provided by this Agreement are cumulative and the use of any one right or remedy by any party shall not preclude or waive its right to use any or all other remedies.  Said rights and remedies are given in addition to any other rights the parties may have by Law or under the terms of any other applicable agreement.

(b) To the extent required or advisable, pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act and any rules promulgated thereunder and any other similar Laws, the Administrator may specify in any other document or a policy to be incorporated into this Agreement by reference, that the Grantee’s rights, payments, and benefits with respect to RSUs awarded hereunder and/or Class A Common Stock delivered to the Grantee in respect of RSUs awarded hereunder shall be subject to reduction, cancellation, forfeiture or recoupment.

(c) The Administrator may set-off any amounts due under this Agreement or otherwise against any amounts which may be owed to the Corporation or its Affiliates, as applicable, by the Grantee under this Agreement, any other relationship or otherwise.  The Grantee hereby expressly authorizes the Corporation and its Affiliates to take any and all actions on the Grantee’s behalf (including, without limitation, payment, credit and satisfaction of amounts owed) in connection with the set-off of any amounts owed to the Corporation or its Affiliates or otherwise.

Section 4.5.   Amendments and Waivers.

(a) This Agreement (including the RSU Grant Certificate and Appendices A through D attached hereto, as applicable) may be amended, supplemented, waived or modified only in accordance with Section 4(b) of the Plan or Section 13 of the Plan, as applicable, or as may be required for purposes of compliance or enforceability with applicable local Law; provided, however, that the RSU Grant Certificate shall be deemed amended from time to time to reflect any adjustments provided for under the Plan.

(b) No failure or delay by any party in exercising any right, power or privilege hereunder (other than a failure or delay beyond a period of time specified herein) shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege.

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Section 4.6.   Withholding.

(a)          The provisions of Section 4(d) of the Plan are incorporated herein by reference and made a part hereof. Regardless of any action the Corporation or the Designated Service Recipient takes with respect to any or all income tax, social insurance, payroll tax, payment on account or other tax-related items related to the Grantee’s participation in the Plan and legally applicable to the Grantee (“Tax-Related Items”), the Grantee acknowledges that the ultimate liability for all Tax-Related Items is and remains the Grantee’s responsibility and may exceed the amount, if any, actually withheld by the Corporation or the Designated Service Recipient.  The Grantee further acknowledges that the Corporation and/or the Designated Service Recipient (1) make no representations or undertakings regarding the treatment of any Tax-Related Items and (2) are under no obligation to structure the terms of the RSUs to reduce or eliminate the Grantee’s liability for Tax-Related Items or achieve any particular tax result.The Corporation may refuse to issue or deliver Class A Common Stock, the Cash Payment or the proceeds of the sale of Class A Common Stock, if the Grantee fails to comply with the Grantee’s obligations in connection with the Tax-Related Items as set forth in this Section 4.6.

(b)          Prior to any relevant taxable or tax withholding event, as applicable, the Grantee will pay or make adequate arrangements satisfactory to the Corporation and/or the Designated Service Recipient to satisfy all Tax-Related Items.  In this regard, the Grantee authorizes the Corporation and/or the Designated Service Recipient to satisfy the obligations with regard to all Tax-Related Items by one or a combination of the following:

(i) withholding from the Cash Payment, the Grantee’s wages or other cash compensation paid to the Grantee by the Corporation and/or the Designated Service Recipient; or

(ii) withholding from proceeds of the sale of Class A Common Stock delivered upon Settlement of the RSUs either through a voluntary sale or through a mandatory sale arranged by the Corporation (on the Grantee’s behalf pursuant to this authorization); or

(iii) withholding in Class A Common Stock to be delivered upon Settlement of the RSUs.

The Corporation may withhold or account for Tax-Related Items by considering applicable minimum statutory withholding amounts or other applicable withholding rates, including maximum applicable rates in the Grantee’s jurisdiction(s), in which case the Grantee may receive a refund of any over-withheld amount in cash and will have no entitlement to the equivalent in Class A Common Stock.  If the obligation for Tax-Related Items is satisfied by withholding in Class A Common Stock, the Grantee is deemed to have been issued the full number of shares of Class A Common Stock subject to the Settled Class A Common Stock, notwithstanding that a number of shares of Class A Common Stock are held back solely for the purpose of paying the Tax-Related Items. Finally, the Grantee shall pay to the Corporation or the Designated Service Recipient any amount of Tax-Related Items that the Corporation or the Designated Service Recipient may be required to withhold or account for as a result of the Grantee’s participation in the Plan that cannot be satisfied by the means previously described.

Section 4.7.   Notices.All notices, requests, claims, demands and other communications hereunder shall be in writing and shall be given (and shall be deemed to have been duly given upon receipt) by delivery in person, by courier service, by fax or by registered or certified mail (postage prepaid, return receipt requested) to the respective parties at the following addresses (or at such other address for a party as shall be specified):

(a) If to the Corporation, to:

KKR & Co. Inc.

9 West 57th Street, Suite 4200

New York, New York 10019

U.S.A.

Attention: General Counsel and Secretary

(b) If to the Grantee, to the most recent address for the Grantee in the books and records of the Corporation or the Designated Service Recipient, as applicable.

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Section 4.8.   Entire Agreement; Termination of Agreement; Survival.

(a) This Agreement constitutes the entire agreement among the parties hereto pertaining to the subject matter hereof and supersedes all prior agreements and understandings, whether oral or written, pertaining thereto. The Grantee acknowledges that the grant of RSUs provided for under this Agreement is in full satisfaction of any and all grants of equity or equity-based awards that representatives of the Corporation or its Affiliates, on or prior to the date hereof, may have informed the Grantee that such Grantee is entitled to receive.

(b) This Agreement shall terminate when the Grantee and all Permitted Transferees cease to hold any of the RSUs or Transfer Restricted Class A Common Stock that have been granted or delivered, as applicable, hereunder. Notwithstanding anything to the contrary herein, this Article IV shall survive any termination of this Agreement.

Section 4.9.   Severability.If any term or other provision of this Agreement is held to be invalid, illegal or incapable of being enforced by any rule of Law, or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions is not affected in any manner materially adverse to any party.  Upon a determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the fullest extent possible.

Section 4.10.   Binding Effect.This Agreement shall be binding upon and inure to the benefit of all of the parties and, to the extent permitted by this Agreement, their successors, executors, administrators, heirs, legal representatives and assigns.

Section 4.11.   Appendices.Appendices A, B, C and D constitute part of this Agreement.  Notwithstanding the provisions of this Article IV, the provisions of Sections 10 through 19 (inclusive) of Appendix C shall govern solely with respect to, and shall be applicable only to the interpretation, administration and enforcement of the provisions of Appendix C, but not to any other provisions of this Agreement or any other Appendix.

Section 4.12.   Further Assurances. The Grantee shall perform all other acts and execute and deliver all other documents as may be necessary or appropriate to carry out the purposes and intent of this Agreement.

Section 4.13.   Section 409A; Employment with Designated Service Recipient.

(a) This Section 4.13(a) applies to Grantees who are U.S. tax residents (such as, a U.S. citizen, green card holder or a U.S. tax resident under the substantial presence test) to the extent applicable.  All references to any “separation from service” or termination of the Employment of or the services to be provided by the Grantee, shall be deemed to refer to a “separation from service” within the meaning of Section 409A, if applicable.  Notwithstanding anything herein to the contrary, (i) if at the time of the Grantee’s termination of Employment the Grantee is a “specified employee” as defined in Section 409A of the Code and the deferral of the commencement of any payments or delivery of Class A Common Stock otherwise payable or provided hereunder as a result of such termination of employment is necessary in order to prevent any accelerated or additional tax under Section 409A, then, to the extent that Section 409A applies to the RSUs, the Corporation will defer the commencement of the payment of any such payments or delivery hereunder (without any reduction in such payments or delivery of Class A Common Stock ultimately paid or provided to the Grantee) until the date that is six months following the Grantee’s termination of Employment (or the earliest date as is permitted under Section 409A) and (ii) if any other payments or other deliveries due to the Grantee hereunder could cause the application of an accelerated or additional tax under Section 409A, such payments or other deliveries shall be deferred if deferral will make such payment or other delivery compliant under Section 409A, or otherwise such payment or other delivery shall be restructured, to the extent possible, in a manner, determined by the Administrator, that does not cause such an accelerated or additional tax.  The Corporation shall use commercially reasonable efforts to implement the provisions of this Section 4.14(a) in good faith; provided that none of the Corporation, the Administrator nor any of the Corporation’s, KKR Group’semployees, directors or representatives shall have any liability to the Grantee with respect to this Section 4.13(a).

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(b) Nothing in this Agreement shall be deemed to obligate the Corporation, Designated Service Recipient, or KKR Group, as applicable, to employ the Grantee in any capacity whatsoever or to prohibit or restrict the Corporation, Designated Service Recipient, or KKR Group, as applicable, from terminating the Grantee’s Employment at any time or for any reason whatsoever, with or without Cause.

Section 4.14.   Counterparts.This Agreement may be executed and delivered (including by facsimile transmission) in one or more counterparts, and by the different parties hereto in separate counterparts, each of which when executed and delivered shall be deemed to be an original but all of which taken together shall constitute one and the same agreement.  Copies of executed counterparts transmitted by telecopy or other electronic transmission service shall be considered original executed counterparts for purposes of this Agreement.

[Rest of page intentionally left blank]

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IN WITNESS WHEREOF, the Corporation has executed this Agreement as of the date specified under the signature of the Grantee.

KKR & CO. INC.

By:
	Name:
	Title:

9

IN WITNESS WHEREOF, the undersigned Grantee has caused this counterpart signature page to this Agreement to be duly executed as ofthe date specified under the signature of the Grantee.

“GRANTEE”

Electronic Signature

Name: Participant Name

Dated: Grant Date

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APPENDIX A

DEFINITIONS

In addition to the defined terms set forth in the Plan, the following terms shall have the following meanings for purposes of the Agreement:

“Cause” means, with respect to the Grantee, the occurrence or existence of any of the following as determined fairly on an informed basis and in good faith by the Administrator: (i) any act of fraud, misappropriation, dishonesty, embezzlement or similar conduct by the Grantee against any member of the KKR Group (including the Corporation), KKR Holdings L.P., KKR Associates Holdings L.P., a Fund (as defined below), or a Portfolio Company (as defined below), (ii) a Regulatory Violation that has a material adverse effect on (x) the business of any member of the KKR Group or (y) the ability of the Grantee to function as an employee, associate or in any similar capacity (including consultant) with respect to the KKR Group, taking into account the services required of the Grantee and the nature of the business of the KKR Group, or (iii) a material breach by the Grantee of a material provision of any Written Policies or the deliberate failure by the Grantee to perform the Grantee’s duties to the KKR Group, provided that in the case of this clause (iii), the Grantee has been given written notice of such breach or failure within 45 days of the KKR Group becoming aware of such breach or failure and, where such breach or failure is curable, the Grantee has failed to cure such breach or failure within (A) 15 days of receiving notice thereof or (B) such longer period of time, not to exceed 30 days, as may be reasonably necessary to cure such breach or failure provided that the Grantee is then working diligently to cure such breach or failure. If such breach or failure is not capable of being cured, the notice given to the Grantee may contain a date of termination that is earlier than 15 days after the date of such notice.

“Designated Service Recipient” means any member of the KKR Group that employs the Grantee or with which the Grantee is similarly associated.

“Disability” means, as to any Person, such Person’s inability to perform in all material respects such Person’s duties and responsibilities to the KKR Group by reason of a physical or mental disability or infirmity which inability is reasonably expected to be permanent and has continued (i) for a period of six consecutive months or (ii) such shorter period as the Administrator may reasonably determine in its sole discretion.

“Employment” means the Grantee’s employment (including any similar association determined by the Administrator to constitute employment for purposes of this Agreement) with the Designated Service Recipient or any other member of the KKR Group.

 “Group Partnerships” means KKR Management Holdings L.P., a Delaware limited partnership,KKR Fund Holdings L.P., a Cayman Island exempted limited partnership, and KKR International Holdings L.P., a Cayman Island exempted limited partnership, along with each of their successors and any other legal entity designated in the future as a “Group Partnership” by the Corporation.

“KKR Capstone” means (i) KKR Capstone Americas LLC, KKR Capstone EMEA LLP, KKR Capstone EMEA (International) LLP, KKR Capstone Asia Limited and any other “Capstone” branded entity that provides similar consulting services to the KKR Group and Portfolio Companies, and (ii) the direct and indirect parents and subsidiaries of the foregoing.

“KKR Group” means the Group Partnerships, the direct and indirect parents of the Group Partnerships (including but not limited to the Corporation), any direct or indirect subsidiaries of such parents or the Group Partnerships, the general partner or similar controlling entities of any investment fund, account or vehicle that is managed, advised or sponsored by the KKR Group (the “Funds”) and any other entity through which any of the foregoing directly or indirectly conducts its business, but shall exclude Portfolio Companies.

“Law” means any statute, law, ordinance, regulation, rule, code, executive order, injunction, judgment, decree or other order issued or promulgated by any national, supranational, state, federal, provincial, local or municipal government or any administrative or regulatory body with authority therefrom with jurisdiction over the Corporation or any Grantee, as the case may be.

A-1

“Minimum Retained Ownership Percentage” means the percentage set forth on the RSU Grant Certificate.

“Permitted Transferee” means (A) any person who is a “family member” of the Grantee, as such term is used in the instructions to Form S-8 under the Securities Act of 1933, as amended, or any successor form of registration statement promulgated by the Securities and Exchange Commission (collectively, the “Immediate Family Members”); (B) a trust solely for the benefit of the Grantee and his or her Immediate Family Members; (C) a partnership or limited liability company whose only partners or stockholders are the Grantee and his or her Immediate Family Members;  (D) a beneficiary to whom donations are eligible to be treated as “charitable contributions” for federal income tax purposes; or (E) any other Person the Administrator consents to.

“Person” means any individual, corporation, partnership, limited liability company, trust, joint stock company, business trust, unincorporated association, joint venture, governmental authority or other entity of any nature whatsoever.

“Portfolio Company” means any company in which a Fund or a member of the KKR Group has an investment and through which such Fund or member does not conduct its business.

“Regulatory Violation” means, with respect to the Grantee (i) a conviction of the Grantee based on a trial or by an accepted plea of guilt or nolo contendere of any felony or misdemeanor crime involving moral turpitude, false statements, misleading omissions, forgery, wrongful taking, embezzlement, extortion or bribery, (ii) a final determination by any court of competent jurisdiction or governmental regulatory body (or an admission by the Grantee in any settlement agreement) that the Grantee has violated any U.S. federal or state or comparable non-U.S. securities laws, rules or regulations or (iii) a final determination by self-regulatory organization having authority with respect to U.S. federal or state or comparable non-U.S. securities laws, rules or regulations (or an admission by the Grantee in any settlement agreement) that the Grantee has violated the written rules of such self-regulatory organization that are applicable to any member of the KKR Group.

“Retirement” means the resignation by the Grantee of the Grantee’s Employment with the KKR Group (other than for Cause), on or after the date that the Grantee’s age, plus the Grantee’s years of Employment with the KKR Group equals at least 80.

“Retirement RSUs” means, with respect to any Grantee whose Employment terminates due to Retirement, any RSUs with a Service Vesting Date that would, if the Grantee’s Employment were not so terminated, occur within two years after the date of such termination due to Retirement.

“RSU Grant Certificate” means the RSU Grant Certificate delivered to the Grantee and attached to this Agreement, as the same may be modified pursuant to Section 4.5(a) of the Agreement.

“Section 409A” means Section 409A of the U.S. Internal Revenue Code of 1986, as the same may be amended from time to time, and the applicable regulations, including temporary regulations, promulgated under such Section, as such regulations may be amended from time to time (including corresponding provisions of succeeding regulations).

 “Service Vesting Date” means, with respect to any RSU, the date set forth in the RSU Grant Certificate as the “Service Vesting Date.”

“Settle”, “Settled” or “Settlement” means the discharge of the Corporation’s obligations in respect of an RSU through the delivery to the Grantee of (i) Class A Common Stock or (ii) a Cash Payment, in each case in accordance with Article II.

“Transfer” or “Transferred” means with respect to any RSU or Class A Common Stock, as applicable, any (i) sale, assignment, transfer or other disposition thereof or any interests therein or rights attached thereto, whether voluntarily or by operation of Law, or (ii) creation or placement of any mortgage, claim, lien, encumbrance, conditional sales or other title retention agreement, right of first refusal, preemptive right, pledge, option, charge, security interest or other similar interest, easement, judgment or imperfection of title of any nature whatsoever.

“Written Policies” means the written policies of the KKR Group included in its employee manual, code of ethics and confidential information and information barrier policies and procedures and other documents relating to the Grantee's Employment with the KKR Group.

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APPENDIX B

ADDITIONAL TERMS AND CONDITIONS

Terms and Conditions

The terms and conditions in this Appendix B supplement the provisions of the Agreement, unless otherwise indicated herein.  Capitalized terms contained in this Appendix B and not defined herein shall have the same meaning as such terms are defined in the Agreement into which this Appendix B is incorporated by reference therein and to which this Appendix B is attached, or the Plan, as applicable.

1.          Data Protection

The Grantee is hereby notified of the collection, use and transfer, in electronic or other form, of the Grantee’s personal data as described in this Agreement, any other RSU materials and the Corporation’s applicable employee Privacy Notice available at KKR Central.  Such personal data may be collected, used and transferred by and among, as applicable, the Corporation, the Designated Service Recipient, any other Affiliate and any third parties assisting (presently or in the future) with the implementation, administration and management of the Plan, such as Fidelity Stock Plan Services, LLC (“Fidelity”) or its successor for the exclusive purpose of implementing, administering and managing the Grantee’s participation in the Plan.  Where required under applicable law, personal data also may be disclosed to certain securities or other regulatory authorities where the Corporation’s shares are listed or traded or regulatory filings are made, or to certain tax authorities for compliance with the Corporation’s, the Designated Service Recipient’s and/or the Grantee’s tax obligations.   The Grantee understands that the collection, use and transfer of his or her personal data is mandatory for compliance with applicable law and necessary for the performance of the Plan and that the Grantee’s refusal to provide such personal data would make it impossible for the Corporation to perform its contractual obligations and may affect the Grantee’s ability to participate in the Plan.

2.          Nature of Grant

In accepting the Award, the Grantee acknowledges, understands and agrees that:

(a) the Plan is established voluntarily by the Corporation, it is discretionary in nature and it may be modified, amended, suspended or terminated by the Corporation at any time;

(b) the grant of the RSUs is exceptional, voluntary and occasional and does not create any contractual or other right to receive future grants, or benefits in lieu of RSUs, even if RSUs have been granted in the past;

(c) all decisions with respect to future grants of RSUs, if any, will be at the sole discretion of the Corporation;

(d) the Grantee’s participation in the Plan shall not create a right to further Employment with the Designated Service Recipient and shall not interfere with the ability of the Designated Service Recipient to terminate the Grantee’s Employment or service relationship (if any) at any time;

(e) the Grantee is voluntarily participating in the Plan;

(f) the RSUs and the Class A Common Stock subject to the RSUs, and the income from and value of same, are extraordinary items, which are outside the scope of the Grantee’s Employment or service contract, if any;

(g) the RSUs and the Class A Common Stock subject to the RSUs, and the income from  and value of same, are not part of normal or expected compensation for purposes of calculating any severance, resignation, termination, redundancy, dismissal, end of service payments, bonuses, long-service awards, holiday pay, leave pay, pension or retirement or welfare benefits or similar mandatory payments;

(h) the grant of RSUs and the Grantee’s participation in the Plan will not be interpreted to form an Employment or service contract or relationship with the Corporation, the Designated Service Recipient or any Affiliate;

(i) the future value of the underlying Class A Common Stock is unknown, indeterminable and cannot be predicted with certainty;

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(j) no claim or entitlement to compensation or damages shall arise from forfeiture of the RSUs resulting from termination of the Grantee’s Employment (for any reason whatsoever and whether or not in breach of local labor laws and whether or not later found to be invalid), and in consideration of the grant of RSUs, the Grantee agrees not to institute any claim against the Corporation, the Designated Service Recipient or any Affiliate;

(k) unless otherwise agreed with the Corporation in writing, the RSUs  and the Class A Common Stock subject to the RSUs, and the income from and value of same, are not granted as consideration for, or in connection with, the service the Grantee may provide as a director of the Designated Service Recipient, the Corporation or any Affiliate;

(l) subject to Section 9 of the Plan, the RSUs and the benefits under the Plan, if any, will not automatically transfer to another company in the case of a merger, take-over or transfer of liability; and

(m) the following provisions apply only if the Grantee is providing services outside the United States:

(i) the RSUs and the Class A Common Stock subject to the RSUs, and the income from and value of same, are not part of normal or expected compensation or salary for any purpose;

(ii) the RSUs and the Class A Common Stock subject to the RSUs, and the income from and value of same, are not intended to replace any pension rights or compensation; and

(iii) neither the Designated Service Recipient, the Corporation nor any Affiliate shall be liable for any foreign exchange rate fluctuation between the Grantee’s local currency and the United States Dollar that may affect the value of the RSUs or of any amounts due to the Grantee pursuant to the vesting of the RSUs or the subsequent sale of any Class A Common Stock acquired upon vesting.

3.          No Advice Regarding Award

The Corporation is not providing any tax, legal or financial advice, nor is the Corporation making any recommendations regarding the Grantee’s participation in the Plan, or the Grantee’s acquisition or sale of the underlying Class A Common Stock.  The Grantee should consult with his or her own personal tax, legal and financial advisors regarding his or her participation in the Plan before taking any action related to the Plan.

4.          Language

If the Grantee has received the Agreement or any other document related to the Plan translated into a language other than English and if the meaning of the translated version is different than the English version, the English version will control.

5.          Electronic Delivery and Acceptance

The Corporation may, in its sole discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means.  The Grantee hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Corporation or a third party designated by the Corporation.

6.          Restrictions on Trading in Securities

In addition to any policies and procedures which govern Grantee’s ability to trade in Class A Common Stock as well as other securities of the Corporation set forth in the Corporation’s trading window policy, Grantee may be subject to additional securities trading and market abuse laws depending on the Grantee’s country, the broker’s country or where the Class A Common Stock is listed.  These laws may affect Grantee’s ability to accept, acquire, sell or otherwise dispose of Class A Common Stock or rights to Class A Common Stock (e.g., RSUs) or rights linked to the value of Class A Common Stock (e.g., phantom awards, futures), particularly during such times as the Grantee is considered to have access to material nonpublic information concerning the Corporation (as defined by the Laws of the applicable country).  Local insider trading Laws may prohibit the cancellation or amendment of orders placed by the Grantee before he or she possessed inside information.  Furthermore, the Grantee could be prohibited from (i) disclosing the inside information to any third party, which may include fellow employees and (ii) “tipping” third parties or causing them otherwise to buy or sell securities. Any restrictions under these Laws or regulations are separate from and in addition to any policies and procedures set forth by the Corporation.  The Grantee is responsible for ensuring compliance with any applicable restrictions and should consult his or her personal legal advisor on this matter.

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7.          Foreign Asset / Account and/or Tax Reporting and Exchange Control Obligations

Depending upon the country to which Laws the Grantee is subject, the Grantee may have certain exchange control, foreign asset and/or account reporting requirements that may affect the Grantee’s ability to acquire or hold Class A Common Stock under the Plan or cash received from participating in the Plan (including from any sale proceeds arising from the sale of Class A Common Stock) in the Grantee’s Fidelity brokerage account or a bank or other brokerage account outside the Grantee’s country of residence. The Grantee’s country may require that he or she report such accounts, assets or transactions to the applicable authorities in the Grantee’s country.  The Grantee also may be required to repatriate sale proceeds or other funds received as a result of his or her participation in the Plan to his or her country through a designated bank or broker and/or within a certain time after receipt. The Grantee is responsible for knowledge of and compliance with any such regulations and should speak with his or her own personal tax, legal and financial advisors regarding same.

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APPENDIX C

Confidentiality and Restrictive Covenant Obligations

A.          Capitalized terms contained in this Appendix C and not defined herein shall have the same meaning as such terms are defined in the Agreement into which this Appendix C is incorporated by reference therein and to which this Appendix C is attached, or the Plan, as applicable. Further, for the purposes of this Appendix C, the “Corporation” shall refer to the KKR Group;

B.          In connection with the Grantee’s employment, engagement, association or other similar affiliation with an entity of the KKR Group, the Grantee is being issued one or more RSUs pursuant to the Agreement to which this Appendix C is attached;

C.          The Grantee acknowledges and agrees that the Grantee will receive financial benefits from the KKR Group’s business through their participation in the value of the RSUs. The Grantee further acknowledges and agrees that (i) during the course of the Grantee’s employment, engagement, association or other similar affiliation with the KKR Group, the Grantee will receive and have access to confidential information of the KKR Group and the Portfolio Companies (collectively, the “KKR Related Entities”) and have influence over and the opportunity to develop relationships with Clients, Prospective Clients, Portfolio Companies and partners, members, employees and associates of the Corporation; and (ii) such confidential information and relationships are extremely valuable assets in which the KKR Group has invested, and will continue to invest, substantial time, effort and expense in developing and protecting;

D.          The Grantee acknowledges and agrees that (i) the RSUs will materially benefit the Grantee; (ii) it is essential to protect the business interests and goodwill of the Corporation and that the Corporation be protected by the restrictive covenants and confidentiality undertaking set forth herein; (iii) it is a condition precedent to the Grantee receiving RSUs that the Grantee agree to be bound by the restrictive covenants and confidentiality undertaking contained herein; and (iv) the KKR Group would suffer significant and irreparable harm from a violation by the Grantee of the confidentiality undertaking set forth herein as well as the restrictive covenants set forth herein for a period of time after the termination of the Grantee’s employment, engagement, association or other similar affiliation with the KKR Group; and

E.          This Appendix C is made in part for the benefit of the KKR Group and the Designated Service Recipient and the parties intend, acknowledge, and agree that the KKR Group and the Designated Service Recipient are third party beneficiaries of this Appendix C and any one of them is authorized to waive compliance with any provision hereof by delivering a written statement clearly expressing the intent to waive such compliance to the Grantee and a duly authorized representative of the KKR Group or Designated Service Recipient.

NOW, THEREFORE, to provide the Corporation with reasonable protection of its interests and goodwill and in consideration for (i) the RSUs and any other consideration that the Grantee will receive in connection with and as a result of the Grantee’s employment, engagement, association or other similar affiliation with the KKR Group ; (ii) the material financial and other benefits that the Grantee will derive from such RSUs and other consideration (if any); and (iii) other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Grantee hereby agrees to the following restrictions:

1. Outside Business Activities.

The Grantee acknowledges that, during the course of the Grantee’s employment, engagement, association or other similar affiliation with the KKR Group, the Grantee will be subject to the Written Policies. The Written Policies include restrictions that limit the ability of the Grantee to engage in outside business and other activities without the prior approval of the Corporation. If the Grantee has an employment, engagement or other similar contract with the KKR Group, the Grantee may be subject to similar restrictions under that agreement. The Grantee hereby agrees that, during the Grantee’s employment, engagement, association or other similar affiliation with the KKR Group, the Grantee will comply with all such restrictions that are from time to time in effect which are applicable to the Grantee.

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2. Confidentiality Undertaking.

The Grantee acknowledges that, during the course of the Grantee’s employment, engagement, association or other similar affiliation with the KKR Group, the Grantee will receive and have access to Confidential Information (as defined below) of the Corporation and the Portfolio Companies.  Recognizing that any disclosure of such information could have serious consequences to one or more of the Corporation and the Portfolio Companies, the Grantee hereby agrees that, except as provided herein, the Grantee will not under any circumstances (either while employed, engaged, associated or otherwise affiliated with the KKR Group, or at any time after the Termination Date) for any purpose other than in the ordinary course of the performance of the Grantee’s duties as an employee, consultant, associate or other affiliated person of the KKR Group, use or divulge, communicate, publish, make available, or otherwise disclose any Confidential Information to any person or entity, including but not limited to any business, firm, governmental body, partnership, corporation, press service or otherwise, other than to (i) any executive or employee of the Corporation in the ordinary course of the performance of Grantee’s duties as an employee, consultant, associate or other affiliated person of the KKR Group; (ii) any person or entity to the extent explicitly authorized by an executive of the Corporation in the ordinary course of the performance of Grantee’s duties as an employee, consultant, associate or other affiliated person of the KKR Group; (iii) any attorney, accountant, consultant or similar service provider retained by the Corporation who is required to know such information and is obligated to keep such information confidential; or (iv) any person or entity to the extent the law or legal process requires disclosure by the Grantee, provided that, in the case of clause (iv), the Grantee must first give the Corporation or the Designated Service Recipient prompt written notice of any such requirement, disclose no more information than is so required in the opinion of competent legal counsel, and cooperate fully with all efforts by the Corporation to obtain a protective order or similar confidentiality treatment for such information.

Nothing in this Appendix C shall prohibit or impede the Grantee from communicating, cooperating or filing a complaint on possible violations of U.S. federal, state or local law or regulation to or with any governmental agency or regulatory authority (collectively, a “Governmental Entity”), including, but not limited to, the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority, the Equal Employment Opportunity Commission or the National Labor Relations Board, or from making other disclosures to any Governmental Entity that are protected under the whistleblower provisions of U.S. federal, state or local law or regulation, provided that in each case such communications and disclosures are consistent with applicable law.  The Grantee shall not be held criminally or civilly liable under any U.S. federal or state trade secret law for the disclosure of a trade secret that is made (i) in confidence to a U.S. federal, state, or local government official or to an attorney solely for the purpose of reporting or investigating a suspected violation of law, or (ii) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.  An individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal; and does not disclose the trade secret, except pursuant to court order.   The Grantee shall not be required to give prior notice to (or get prior authorization from) the Corporation regarding any such communication or disclosure.  Except as otherwise provided in this paragraph or under applicable law, under no circumstance is the Grantee authorized to disclose any information covered by the Corporation’s or its Affiliates’ attorney-client privilege or attorney work product or the Corporation’s trade secrets without the prior written consent of the Corporation.

As used in this Section 2, an “executive” of the KKR Group means an employee of the Corporation with the title of “Member,” “Managing Director,” “Director,” “Principal” or other employee of the Corporation acting in a managerial or supervisory capacity. “Confidential Information” means (a) all confidential, proprietary or non-public information of, or concerning the business, operations, activities, personnel, finances, plans, personal lives, habits, history, clients, investors, or otherwise of the KKR Related Entities or any person who at any time is or was a member, partner, officer, director, other executive, employee or stockholder of any of the foregoing, (b) all confidential, proprietary or non-public information of or concerning any member of a family of any of the individuals referred to in clause (a), whether by birth, adoption or marriage (including but not limited to any of their current or former spouses or any living or deceased relatives), and (c) all confidential, proprietary or non-public information of or concerning any of the clients or investors of the KKR Related Entities or any other person or entity with which or whom any of the KKR Related Entities or their respective clients or investors does business or has a relationship. Confidential Information includes information about the KKR Related Entities relating to or concerning any of their (i) finances, investments, profits, pricing, costs, and accounting, (ii) intellectual property (including but not limited to patents, inventions, discoveries, plans, research and development, processes, formulae, reports, protocols, computer software, databases, documentation, trade secrets, know-how and business methods), (iii) personnel, compensation, recruiting and training, and (iv) any pending or completed settlements, arbitrations, litigation, governmental investigations and similar proceedings. Notwithstanding the foregoing, Confidential Information does not include any portions of the foregoing that the Grantee can demonstrate by sufficient evidence satisfactory to the Corporation that has been (i) lawfully published in a form generally available to the public prior to any disclosure by the Grantee in breach of this Appendix C or (ii) made legitimately available to the Grantee by a third party without breach of any obligation of confidence owed to the Corporation or any Portfolio Company.

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Without limiting the generality of the foregoing, the Grantee agrees that it will be a breach of this Appendix C to write about, provide, disclose or use in any fashion at any time any Confidential Information that is or becomes part of the basis for, or is used in any way in connection with any part of any book, magazine or newspaper article, any interview or is otherwise published in any media of any kind utilizing any technology now known or created in the future.

Upon termination of the Grantee's employment, engagement, association or other similar affiliation with the KKR Group, for any reason, the Grantee hereby agrees to (i) cease and not thereafter commence any and all use of any Confidential Information; (ii) upon the request of the Corporation promptly deliver to the Corporation or, at the option of the Corporation destroy, delete or expunge all originals and copies of any Confidential Information in any form or medium in the Grantee’s possession or control (including any of the foregoing stored or located in the Grantee’s home, laptop or other computer that is not the property of the Corporation, its Affiliates or Portfolio Companies); (iii) notify and fully cooperate with the Corporation regarding the delivery or destruction of any other Confidential Information of which the Grantee is aware; and (iv) upon the request of the Corporation sign and deliver a statement that the foregoing has been accomplished.

The Grantee acknowledges that he or she is aware that applicable securities laws place certain restrictions on any person who has received from an issuer material, non-public information concerning the issuer with respect to purchasing or selling securities of such issuer or from communicating such information to any other person and further agrees to comply with such securities laws.  Without limiting anything in this Appendix C, the Grantee hereby expressly confirms his or her explicit understanding that the Grantee’s obligations hereunder are in addition to, and in no way limit, the Grantee’s obligations under compliance procedures of the Corporation including those contained in the Written Policies.

Notwithstanding anything in this Appendix C to the contrary, the Grantee may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of any member of the Corporation in which the Grantee holds an interest and all materials of any kind (including opinions or other tax analyses) that are provided to the Grantee relating to such tax treatment and tax structure.

3. Notice Period.

The Grantee acknowledges and agrees that the Designated Service Recipient may terminate his or her employment, engagement, association or other similar affiliation with the Designated Service Recipient at any time for any reason or for no reason at all with or without reasons constituting Cause.

The Designated Service Recipient or the Grantee, as applicable, shall provide advance written notice (which may be by email) of the termination of  the Grantee’s employment, engagement, association or other similar affiliation with the Designated Service Recipient at least 90 days prior to actual termination (such 90-day period, the “Notice Period”); provided, however, that no advance notice shall be required by the Designated Service Recipient and the provisions of this Section 3 shall not be applicable to the Designated Service Recipient if the Grantee’s employment, engagement, association or other similar affiliation is terminated by the Designated Service Recipient for reasons constituting Cause or due to any conduct by Grantee that, in the judgment of the Designated Service Recipient in its sole discretion, amounts to gross negligence or reckless or willful misconduct.

Notice pursuant to this Section 3 shall be provided by the Grantee to any of the Chief Executive Officers, General Counsel or Head of Human Capital and Strategic Talent of the KKR Group.

During the Notice Period, the Grantee shall perform his or her regular duties and any transitional responsibilities (including but not limited to helping to transition work, projects, and Client relationships internally to others) as determined and directed by the Designated Service Recipient in its sole discretion, and Grantee shall not be employed, engaged, associated or otherwise similarly affiliated with any business other than the business of the KKR Group; provided, however, the Designated Service Recipient reserves the right to require the Grantee not to be in the offices of the KKR Group, not to undertake all or any of the Grantee’s duties or not to contact Clients or Prospective Clients (as defined in Section 5 below), other persons employed, engaged, associated or otherwise similarly affiliated with the KKR Group, or others (or any combination thereof) unless otherwise instructed during all or any part of the Notice Period.  During the Notice Period, and except as provided in the next sentence, the Grantee shall continue to receive his or her salary, and the Grantee shall not be entitled to receive or be considered for payment of any other amount for his or her services during the Notice Period (including without limitation any bonus or equity award).  In addition, the Designated Service Recipient in its sole discretion may elect to reduce the Notice Period and pay the Grantee his or her salary, but no other amount, for the period from the conclusion of the reduced Notice Period to the end of the original Notice Period, and the Grantee’s employment, engagement, association or other similar affiliation with the KKR Group, shall be terminated as of the day immediately following the conclusion of the reduced Notice Period.

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4. Non-Compete.

The Grantee hereby agrees that, while employed, engaged, associated or otherwise similarly affiliated with the KKR Group, and in addition during the Non-Compete Period (as defined below), the Grantee will not, directly or indirectly, set up, be employed or engaged by, hold an office in or provide consulting, advisory or other similar services to or for the benefit of, a Competing Business (i) where the activities or services of the Grantee in relation to the Competing Business are similar or substantially related to any activity that the Grantee engaged in or any service that  the  Grantee  provided,  in  connection  with  the  Grantee’s employment, engagement, association or other similar affiliation with the KKR Group (ii) that competes with a business for which the Grantee had direct or indirect managerial or supervisory responsibility with the KKR Group including through the Grantee’s position on the Management Committee or similar committee or group, including without limitation the Public Markets & Distribution Management Committee, for one or more businesses of the KKR Group, in each case, at any time during the 12 months preceding the Termination Date.

For the purposes of this Appendix C, a “Competing Business” means a business that competes (i) in a Covered Country with any business conducted by the Corporation on the date on which the Grantee’s employment, engagement, association or other similar affiliation with the KKR Group is terminated (the “Termination Date”) or (ii) in any country with any business that the Corporation was, on the Termination Date, formally considering conducting. A “Covered Country” means the United States, United Kingdom, the Republic of Ireland, France, Hong Kong, China, Japan, the Republic of Korea, Australia, India, United Arab Emirates, Saudi Arabia, Canada, Singapore, Spain, Luxembourg or any other country where the Corporation conducted business on the Termination Date; provided that if the Grantee is located in Japan, the definition of Covered Country shall exclude the phrase “any other country where the Corporation conducted business on the Termination Date” to the extent unenforceable under applicable law.

The “Non-Compete Period” for the Grantee shall commence on the Termination Date and shall expire upon the twelve month anniversary of the Termination Date.  Notwithstanding the foregoing, if the Grantee’s employment, engagement, association or other similar affiliation with the KKR Group, is terminated involuntarily and for reasons not constituting Cause, the Non-Compete Period will expire on the six month anniversary of the Termination Date.

Notwithstanding the foregoing, nothing in this Appendix C shall be deemed to prohibit the Grantee from (i) associating with any business whose activities consist principally of making passive investments for the account and benefit of the Grantee or members of the Grantee’s immediate family where such business does not, within the knowledge of the Grantee, compete with a business of the KKR Group for specific privately negotiated investment opportunities; (ii) making and holding passive investments in publicly traded securities of a Competing Business where such passive investment does not exceed 5% of the amount of such securities that are outstanding at the time of investment; or (iii) making and holding passive investments in limited partner or similar interests in any investment fund or vehicle with respect to which the Grantee does not exercise control, discretion or influence over investment decisions.

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5. Non-Solicitation of Clients and Prospective Clients; Non-Interference.

The Grantee hereby agrees that, while employed, engaged, associated or otherwise similarly affiliated with the KKR Group, and in addition during the Post-Termination Restricted Period (as defined below), the Grantee will not, directly or indirectly, (i) solicit, or assist any other person in soliciting, the business of any Client or Prospective Client for, or on behalf of, a Competing Business; (ii) provide, or assist any other person in providing, for any Client or Prospective Client any services that are substantially similar to those that the Corporation provided or proposed to be provided to such Client or Prospective Client; or (iii) impede or otherwise interfere with or damage, or attempt to impede or otherwise interfere with or damage, any business relationship or agreement between the Corporation and any Client or Prospective Client. As used in this Section 5, “solicit” means to have any direct or indirect communication inviting, advising, encouraging or requesting any person to take or refrain from taking any action with respect to the giving by such person of business to a Competing Business, regardless of who initiated such communication.

For purposes of this Appendix C, “Client” means any person (a) for whom the Corporation provided services, including any investor in any Fund, any client of the KKR Group’s broker-dealer business, or any Portfolio Company and (b) with whom the Grantee, individuals reporting to the Grantee or any other individuals over whom the Grantee had direct or indirect managerial or supervisory responsibility  had any contact or dealings on behalf of, and involving Confidential Information of, the Corporation during the 12 months prior to the Termination Date; and “Prospective Client” means any person with whom (I) the Corporation has had negotiations or discussions concerning becoming a Client and (II) the Grantee, individuals reporting to the Grantee or any other individuals over whom the Grantee had direct or indirect managerial or supervisory responsibility had any contact or dealings on behalf of, and involving Confidential Information of, the Corporation during the 12 months prior to the Termination Date.

6. Non-Solicitation of Personnel; No Hire.

The Grantee hereby agrees that, while employed, engaged, associated or otherwise similarly affiliated with the KKR Group, and in addition during the Post-Termination Restricted Period, the Grantee will not, directly or indirectly,  solicit, employ, engage or retain, or assist any other person in soliciting, employing, engaging or retaining, any Covered Person. As used in this Section 6, “solicit” means to have any direct or indirect communication inviting, advising, encouraging or requesting any Covered Person to terminate his or her employment, engagement, association or other affiliation with the KKR Group or KKR Capstone or recommending or suggesting that a third party take any of the foregoing actions, including by way of identifying such Covered Person to the third party, in each case regardless of who initiated such communication.

For purposes of this Appendix C, a “Covered Person” means a person who is or on the Termination Date was either (i) employed or engaged by the KKR Group as an employee or officer or otherwise associated or similarly affiliated with the KKR Group in any position, including as a member or partner, having functions and duties substantially similar to those of an employee or officer; (ii) a Senior Advisor, Industry Advisor or KKR Advisor to the KKR Group; (iii) employed or engaged by KKR Capstone as an employee or officer or otherwise associated or similarly affiliated with KKR Capstone in any position, including as a member or partner, having functions and duties substantially similar to those of an employee or officer; or (iv) a person who provides services to the Corporation or any Portfolio Company and has functions and duties that are substantially similar to those of a person listed in sub-clauses (i), (ii) or (iii) above.

7. Post-Termination Restricted Period.

The “Post-Termination Restricted Period” for the Grantee shall commence on the Termination Date and shall expire upon the eighteen month anniversary of the Termination Date.Notwithstanding the foregoing, if the Grantee’s employment, engagement, association or other similar affiliation with the KKR Group is terminated involuntarily and for reasons not constituting Cause, the Post-Termination Restricted Period will expire on the nine month anniversary of the Termination Date.  To the extent that the Grantee continues to be employed or engaged by, or otherwise associated or similarly affiliated with, the KKR Group, during any “garden leave” or “notice” period in which the Grantee is required to not perform any services for or enter the premises of the Corporation, and to otherwise comply with all terms and conditions imposed on the Grantee during such “garden leave” or “notice” period, the applicable Post-Termination Restricted Period shall be reduced by the amount of any such “garden leave” or “notice” period in which the Grantee complies with such terms.

C-5

8. Intellectual Property; Works Made for Hire.

Except as otherwise agreed in writing between the Grantee and the Corporation, the Designated Service Recipient or other member of the KKR Group, as applicable, the Grantee agrees that all work and deliverables that the Grantee prepares, creates, develops, authors, contributes to or improves, either alone or with third parties, during the course of the Grantee’s employment, engagement, association or other similar affiliation with the KKR Group, within the scope of the services provided to or with the use of any of the resources of the KKR Group, including but not limited to notes, drafts, scripts, documents, designs, inventions, data, presentations, research results, developments, reports, processes, programs, spreadsheets and other materials and all rights and intellectual property rights thereunder including but not limited to rights of authorship (collectively, “Work Product”), are works-made-for-hire owned exclusively by the KKR Group.  The Grantee hereby irrevocably assigns, transfers and conveys, to the maximum extent permitted by law, all right, title and interest that the Grantee may have in such Work Product (and any written records thereof) to the KKR Group (or any of its designees), to the extent ownership of any such rights does not vest originally with the KKR Group.  The Grantee acknowledges and agrees that the Units issued pursuant to the Agreement are sufficient compensation for such assignment, transference and conveyance. To the extent the foregoing assignment is deemed to be invalid or unenforceable, Grantee grants the KKR Group, at no additional charge an exclusive, worldwide, irrevocable, royalty-free, perpetual, assignable license under all intellectual property in and to the Work Product.

9. Non-Disparagement.

The Grantee hereby agrees that the Grantee will not at any time during his or her employment, engagement, association or other similar affiliation with the Designated Service Recipient or for five years thereafter make any disparaging, defamatory, or derogatory written or oral statements or other communications about or in reference to the Designated Service Recipient, the Corporation, or any other member of the KKR Group or KKR Capstone (including their respective businesses or reputations), including but not limited to any of their Clients, Prospective Clients, Portfolio Companies, or Covered Persons; provided that this provision shall not prevent the Grantee from (i) making reports to or testifying before any court, governmental agency, or regulatory body, including the U.S. Securities and Exchange Commission, or pursuant to any legal or regulatory process or proceeding or (ii) engaging in activity protected by applicable law, rule or regulations, including the U.S. National Labor Relations Act.

10. Representations; Warranties; Other Agreements.

The Grantee acknowledges and agrees that the Grantee will derive material financial and other benefits from the Grantee’s employment, engagement, association or other similar affiliation with the KKR Group, and that the restrictions contained herein are reasonable in all circumstances and necessary to protect the legitimate business interests of the Corporation, to have and enjoy the full benefit of its business interests and goodwill. The Grantee further agrees and acknowledges that such restrictions will not unnecessarily or unreasonably restrict or otherwise limit the professional opportunities of the Grantee should his or her employment, engagement, association or other similar affiliation with the KKR Group, terminate, that the Grantee is fully aware of the Grantee’s obligations under this Appendix C and that the livelihood of the Grantee is not impaired by the Grantee’s entry into the covenants contained herein. The Corporation and the Designated Service Recipient shall have the right, exercisable in its sole discretion, to directly or indirectly make a payment to the Grantee or grant other consideration if, and to the extent, necessary to enforce the restrictions contained herein in accordance with any applicable law.

11. Certain Relationships.

The Grantee acknowledges and agrees that the Grantee’s compliance with this Appendix C is a material part of the Grantee’s arrangements with the Corporation. Notwithstanding anything to the contrary herein, this Appendix C does not constitute an employment, engagement or other similar agreement between the Grantee and the Corporation or any other of the KKR Related Entities (including but not limited to the Corporation), and shall not interfere with or otherwise affect any rights any such person or entity may have to terminate the Grantee’s employment, engagement, association or other similar affiliation at any time upon such notice as may be required by law or the terms of any agreement or arrangement with the Grantee.

C-6

12. Injunctive Relief; Third Party Beneficiaries.

The Grantee acknowledges and agrees that the remedies of the Corporation and the Designated Service Recipient at law for any breach of this Appendix C would be inadequate and that for any breach of this Appendix C, the Designated Service Recipient may terminate your employment, engagement, association or other similar affiliation with the Corporation and shall, in addition to any other remedies that may be available to it at law or in equity, or as provided for in this Appendix C, be entitled to an injunction, restraining order or other equitable relief, without the necessity of posting a bond, restraining the Grantee from committing or continuing to commit any violation of this Appendix C. The Grantee further acknowledges and agrees that the Corporation and the Designated Service Recipient shall not be required to prove, or offer proof, that monetary damages for a breach of this Appendix C would be difficult to calculate and that any remedies at law would be inadequate for any breach of this Appendix C. The parties intend, acknowledge, and agree that each member of the KKR Group is a third party beneficiary of this Agreement and is authorized to enforce any provision hereof by delivering a written statement expressing the intent to enforce the provisions hereof to the Grantee or the Designated Service Recipient. The Grantee has executed this Agreement for the benefit of each member of the KKR Group.

13. Amendment; Waiver.

This Appendix C may not be amended, restated, supplemented or otherwise modified other than by an agreement in writing signed by the parties hereto; provided, however, that the Corporation, the KKR Group or the Designated Service Recipient may reduce the scope of, or waive compliance with any part of, any obligation of the Grantee arising under this Appendix C, at any time without any action, consent or agreement of any other party. No failure to exercise and no delay in exercising, on the part of any party, of any right, remedy, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The waiver of any particular right, remedy, power or privilege shall not affect or impair the rights, remedies, powers or privileges of any person with respect to any subsequent default of the same or of a different kind by any party hereunder. The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law. No waiver of any provision hereto shall be effective unless it is in writing and signed by the person asserted to have granted such waiver.

14. Assignment.

This Appendix C may not be assigned by any party hereto without the prior written consent of the other party hereto, except that the consent of the Grantee shall be deemed to have been given to the Corporation and the Designated Service Recipient (and the Grantee acknowledges that the Corporation and the Designated Service Recipient shall therefore have the right without further consent) to assign its rights hereunder, in whole or in part, to (i) any member of the KKR Group that becomes a Designated Service Recipient or (ii) any person who is a successor of the Corporation or the Designated Service Recipient by merger, consolidation or purchase of all or substantially all of its assets, in which case such assignee shall be substituted for the Corporation and the Designated Service Recipient hereunder with respect to the provisions so assigned and be bound under this Appendix C and by the terms of the assignment in the same manner as the Corporation and the Designated Service Recipient was bound hereunder. Any purported assignment of this Appendix C in violation of this section shall be null and void.

15. Governing Law.

This Appendix C shall be governed by and construed in accordance with the laws of the State of New York.

16. Resolution of Disputes.

(a) Subject to paragraphs (b) and (c) below, any and all disputes which cannot be settled amicably, including any ancillary claims of any party, arising out of, relating to or in connection with the validity, negotiation, execution, interpretation, performance, non performance or termination of this Appendix C (including the validity, scope and enforceability of this arbitration provision) (each a “Dispute”) shall be finally settled by arbitration conducted by a single arbitrator in New York, New York in accordance with the then existing Rules of Arbitration of the International Chamber of Commerce (the “ICC”). If the parties to the Dispute fail to agree on the selection of an arbitrator within 30 days of the receipt of the request for arbitration, the ICC shall make the appointment. The arbitrator shall be a lawyer and shall conduct the proceedings in the English language. Performance under this Appendix C shall continue if reasonably possible during any arbitration proceedings.

C-7

(b) Prior to filing a Request for Arbitration or an Answer under the Rules of Arbitration of the ICC, as the case may be, the Corporation or the Designated Service Recipient may, in its sole discretion, require all Disputes or any specific Dispute to be heard by a court of law in accordance with paragraph (e) below and, for the purposes of this paragraph (b), each party expressly consents to the application of paragraphs (e) and (f) below to any such suit, action or proceeding. If an arbitration proceeding has already been commenced in connection with a Dispute at the time that the Corporation or the Designated Service Recipient commences such proceedings in accordance with this paragraph (b), such Dispute shall be withdrawn from arbitration.

(c) Subject to paragraph (b) above, either party may bring an action or special proceeding in any court of law (or, if applicable, equity) for the purpose of compelling a party to arbitrate, seeking temporary or preliminary relief in aid of an arbitration hereunder or enforcing an arbitration award and, for the purposes of this paragraph (c), each party expressly consents to the application of paragraphs (e) and (f) below to any such suit, action or proceeding.

(d) Except as required by law or as may be reasonably required in connection with judicial proceedings to compel arbitration, to obtain temporary or preliminary judicial relief in aid of arbitration or to confirm or challenge an arbitration award, the arbitration proceedings, including any hearings, shall be confidential, and the parties shall not disclose any awards, any materials in the proceedings created for the purpose of the arbitration or any documents produced by another party in the proceedings not otherwise in the public domain. Judgment on any award rendered by an arbitration tribunal may be entered in any court having jurisdiction thereover.

(e) EACH PARTY HEREBY IRREVOCABLY SUBMITS AND AGREES TO THE EXCLUSIVE JURISDICTION OF THE COURTS, AND VENUE, LOCATED IN NEW YORK, NEW YORK FOR THE PURPOSE OF ANY SUIT, ACTION OR PROCEEDING BROUGHT IN ACCORDANCE WITH THE PROVISIONS OF PARAGRAPHS (B) OR (C) ABOVE. The parties acknowledge that the forum designated by this paragraph (e) has a reasonable relation to this Appendix C, and to the parties' relationship with one another. The parties hereby waive, to the fullest extent permitted by applicable law, any objection which they now or hereafter may have to personal jurisdiction or to the laying of venue of any suit, action or proceeding brought in any court referred to in the preceding sentence or pursuant to paragraphs (b) or (c) above and such parties agree not to plead or claim the same.

(f) The parties agree that if a suit, action or proceeding is brought under paragraphs (b) or (c) proof shall not be required that monetary damages for breach of the provisions of this Appendix C would be difficult to calculate and that remedies at law would be inadequate, and they irrevocably appoint the Secretary or General Counsel of the Corporation or the Designated Service Recipient or an officer of the Corporation or the Designated Service Recipient (at the then-current principal business address of the Corporation or the Designated Service Recipient) as such party’s agent for service of process in connection with any such action or proceeding and agrees that service of process upon such agent, who shall promptly advise such party of any such service of process, shall be deemed in every respect effective service of process upon the party in any such action or proceeding.

C-8

17. Entire Agreement.

This Appendix C contains the entire agreement and understanding among the parties hereto with respect to the subject matter of this Appendix C and supersedes all prior and contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or written, of any nature whatsoever with the Corporation, the Corporation or KKR Holdings L.P. with respect to the subject matter of this Appendix C (including but not limited to any prior grant agreement for an equity award under the Plan that contains one or more appendices with respect to the subject matter of this Appendix C) or any Confidentiality and Restrictive Covenant Agreement previously executed with the Corporation, the Corporation or KKR Holdings L.P. The express terms of this Appendix C control and supersede any course of performance and any usage of the trade inconsistent with any of the terms of this Appendix C.

18. Severability.

Notwithstanding Section 13 or any other provision of this Appendix C to the contrary, any provision of this Appendix C that is prohibited or unenforceable in any jurisdiction (including but not limited to the application, if applicable, of Rule 5.6 of the New York Rules of Professional Conduct (or successor rule)) shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. In such event, the invalid provision shall be partially enforced, reformed or substituted with a valid provision which most closely approximates the intent and the economic effect of the invalid provision to give effect to the provision to the maximum extent permitted in such jurisdiction or in such case.  Grantee specifically acknowledges that Grantee has been provided with valuable consideration in exchange for the covenants set forth herein and, accordingly, such partial enforcement or reformation is necessary to avoid frustrating the Corporation’s purpose in awarding the Grantee such consideration.

19. Interpretation.

Notwithstanding anything contained in Article IV of the Agreement, the provisions of Sections 10 through 19 (inclusive) of this Appendix C shall govern with respect to, and shall be applicable only to the interpretation, administration and enforcement of, the provisions of this Appendix C, and shall not govern or otherwise apply to, or have any administrative or interpretive effect on, any other provisions of the remainder of the Agreement or any other of its Appendices.

C-9

APPENDIX D

Fidelity Stock Plan Services, LLC

GRANTEE CONSENT

KKR & Co. Inc.

GRANTEE CONSENT

Pursuant to provisions of this grant agreement between me and KKR & Co. Inc. (the “Corporation”) and/or other parties thereto, and as a condition of receiving such grant agreement, I hereby authorize Fidelity Stock Plan Services, LLC and its affiliates (including, but not limited to Fidelity Brokerage Services LLC, National Financial Services LLC, and Fidelity Personal Trust Company, FSB) (“Fidelity”) (i) to act upon the directions of the Corporation or its designee direction to restrict my ability to sell, transfer or to take other actions with respect to certain Corporation equity that I may hold, and (ii) to act the directions of the Corporation or its designee, pursuant to provisions of the Corporation’s plans and this grant agreement requiring my forfeiture of Corporation equity if I violate certain restrictive covenants, to transfer in kind Corporation equity held by Fidelity on my behalf to the Corporation or its designee.

Grantee Name:	Participant Name
Grantee Signature:	Electronic Signature
Date:	Acceptance Date

EX-31.1

Exhibit 31.1

CO-CHIEF EXECUTIVE OFFICER CERTIFICATION

I, Henry R. Kravis, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the period ended March 31, 2019 of KKR & Co. Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)  All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 3, 2019
		/s/ Henry R. Kravis
		Henry R. Kravis
		Co-Chief Executive Officer

EX-31.2

Exhibit 31.2

CO-CHIEF EXECUTIVE OFFICER CERTIFICATION

I, George R. Roberts, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the period ended March 31, 2019 of KKR & Co. Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and 

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 3, 2019
		/s/ George R. Roberts
		George R. Roberts
		Co-Chief Executive Officer

EX-31.3

Exhibit 31.3

CHIEF FINANCIAL OFFICER CERTIFICATION

I, William J. Janetschek, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the period ended March 31, 2019 of KKR & Co. Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	May 3, 2019
		/s/ William J. Janetschek
		William J. Janetschek
		Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION OF CO-CHIEF EXECUTIVE OFFICER

Pursuant to 18 U.S.C. §1350, 

As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of KKR & Co. Inc. (the "Corporation") on Form 10-Q for the period ended March 31, 2019 as filed with the Securities and Exchange Commission (the "Report"), I, Henry R. Kravis, Co-Chief Executive Officer of the Corporation, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

Date:	May 3, 2019
		/s/ Henry R. Kravis
		Henry R. Kravis
		Co-Chief Executive Officer

* The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.

EX-32.2

Exhibit 32.2

CERTIFICATION OF CO-CHIEF EXECUTIVE OFFICER

Pursuant to 18 U.S.C. §1350,

 As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of KKR & Co. Inc. (the "Corporation") on Form 10-Q for the period ended March 31, 2019 as filed with the Securities and Exchange Commission (the "Report"), I, George R. Roberts, Co-Chief Executive Officer of the Corporation, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

Date:	May 3, 2019
		/s/ George R. Roberts
		George R. Roberts
		Co-Chief Executive Officer

* The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.

EX-32.3

Exhibit 32.3

CERTIFICATION OF CHIEF FINANCIAL OFFICER

Pursuant to 18 U.S.C. §1350,

 As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of KKR & Co. Inc. (the "Corporation") on Form 10-Q for the period ended March 31, 2019 as filed with the Securities and Exchange Commission (the "Report"), I, William J. Janetschek, Chief Financial Officer of the Corporation, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

Date:	May 3, 2019
		/s/ William J. Janetschek
		William J. Janetschek
		Chief Financial Officer

* The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 02, 2019
Document Information [Line Items]
Entity Registrant Name	KKR & Co. Inc.
Entity Central Index Key	0001404912
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Emerging Growth Company	false
Entity Small Business	false
Class A Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		543,943,670

XML

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED) - USD ($) $ in Thousands		Mar. 31, 2019	Dec. 31, 2018
Assets
Cash and Cash Equivalents		$ 1,808,368	$ 1,751,287
Cash and Cash Equivalents Held at Consolidated Entities		911,450	693,860
Restricted Cash and Cash Equivalents		66,950	196,365
Investments		45,795,254	44,907,982
Due from Affiliates		734,195	657,189
Other Assets		2,687,802	2,536,692
Total Assets		52,004,019	50,743,375
Liabilities and Equity
Debt Obligations		22,262,369	22,341,192
Due to Affiliates		254,781	275,584
Accounts Payable, Accrued Expenses and Other Liabilities		3,279,028	2,743,990
Total Liabilities		25,796,178	25,360,766
Commitments and Contingencies
Redeemable Noncontrolling Interests		0	1,122,641
Stockholders' Equity
Series A and B Preferred Stock, $0.01 par value. 13,800,000 and 6,200,000 shares, respectively, issued and outstanding as of March 31, 2019 and December 31, 2018.	[1]	482,554	482,554
Additional Paid-In Capital	[1]	8,145,133	8,106,408
Retained Earnings	[1]	726,312	91,953
Accumulated Other Comprehensive Income (Loss)	[1]	(39,954)	(39,645)
Total KKR & Co. Inc. Stockholders' Equity	[1]	9,322,371	8,649,610
Noncontrolling Interests	[1]	16,885,470	15,610,358
Total Equity	[1]	26,207,841	24,259,968
Total Liabilities and Equity		52,004,019	50,743,375
Consolidated VIEs
Assets
Cash and Cash Equivalents Held at Consolidated Entities		725,717	605,114
Restricted Cash and Cash Equivalents		35,692	174,057
Investments		30,316,038	30,319,052
Due from Affiliates		11,181	11,832
Other Assets		390,545	371,275
Total Assets		31,479,173	31,481,330
Liabilities and Equity
Debt Obligations		15,496,761	15,351,541
Accounts Payable, Accrued Expenses and Other Liabilities		646,241	705,741
Total Liabilities		16,143,002	16,057,282
Consolidated VIEs | Consolidated CFEs
Assets
Cash and Cash Equivalents Held at Consolidated Entities		641,685	428,850
Restricted Cash and Cash Equivalents		0	0
Investments		15,021,345	14,733,423
Due from Affiliates		0	0
Other Assets		166,373	148,221
Total Assets		15,829,403	15,310,494
Liabilities and Equity
Debt Obligations		14,472,392	13,958,554
Accounts Payable, Accrued Expenses and Other Liabilities		576,009	579,408
Total Liabilities		15,048,401	14,537,962
Consolidated VIEs | Consolidated KKR Funds and Other Entities
Assets
Cash and Cash Equivalents Held at Consolidated Entities		84,032	176,264
Restricted Cash and Cash Equivalents		35,692	174,057
Investments		15,294,693	15,585,629
Due from Affiliates		11,181	11,832
Other Assets		224,172	223,054
Total Assets		15,649,770	16,170,836
Liabilities and Equity
Debt Obligations		1,024,369	1,392,987
Accounts Payable, Accrued Expenses and Other Liabilities		70,232	126,333
Total Liabilities		1,094,601	1,519,320
Class A Common Stock
Stockholders' Equity
Common Stock	[1]	5,339	5,349
Class B Common Stock
Stockholders' Equity
Common Stock	[1]	0	0
Class C Common Stock
Stockholders' Equity
Common Stock	[1]	$ 2,987	$ 2,991

[1] See Note 1 "Organization."

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CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED) (Parenthetical) - $ / shares		Mar. 31, 2019	Dec. 31, 2018
Series A Preferred Stock
Preferred stock, par value (in dollars per share)	[1]	$ 0.01	$ 0.01
Preferred stock, shares issued (in shares)	[1]	13,800,000	13,800,000
Preferred stock, shares outstanding (in shares)	[1]	13,800,000	13,800,000
Series B Preferred Stock
Preferred stock, par value (in dollars per share)	[1]	$ 0.01	$ 0.01
Preferred stock, shares issued (in shares)	[1]	6,200,000	6,200,000
Preferred stock, shares outstanding (in shares)	[1]	6,200,000	6,200,000
Class A Common Stock
Common stock, par value (in dollars per share)	[1]	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	[1]	3,500,000,000	3,500,000,000
Common stock, shares issued (in shares)	[1]	533,922,902	534,857,237
Common stock, shares outstanding (in shares)	[1]	533,922,902	534,857,237
Class B Common Stock
Common stock, par value (in dollars per share)	[1]	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	[1]	1	1
Common stock, shares issued (in shares)	[1]	1	1
Common stock, shares outstanding (in shares)	[1]	1	1
Class C Common Stock
Common stock, par value (in dollars per share)	[1]	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	[1]	499,999,999	499,999,999
Common stock, shares issued (in shares)	[1]	298,645,285	299,081,239
Common stock, shares outstanding (in shares)	[1]	298,645,285	299,081,239

[1] See Note 1 "Organization."

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenues
Fees and Other	$ 372,548	$ 394,394
Capital Allocation-Based Income	814,932	78,212
Total Revenues	1,187,480	472,606
Expenses
Compensation and Benefits	544,562	298,136
Occupancy and Related Charges	14,690	14,215
General, Administrative and Other	169,515	124,250
Total Expenses	728,767	436,601
Investment Income (Loss)
Net Gains (Losses) from Investment Activities	1,203,878	472,800
Dividend Income	22,625	33,064
Interest Income	358,511	298,256
Interest Expense	(249,088)	(219,590)
Total Investment Income (Loss)	1,335,926	584,530
Income (Loss) Before Taxes	1,794,639	620,535
Income Tax Expense (Benefit)	167,593	17,641
Net Income (Loss)	1,627,046	602,894
Net Income (Loss) Attributable to Redeemable Noncontrolling Interests	0	25,674
Net Income (Loss) Attributable to Noncontrolling Interests	917,727	398,777
Net Income (Loss) Attributable to KKR & Co. Inc.	709,319	178,443
Preferred Dividends	8,341	8,341
Net Income (Loss) Attributable to KKR & Co. Inc. Class A Common Stockholders	700,978	170,102
Series A Preferred Stock Dividends
Investment Income (Loss)
Preferred Dividends	5,822	5,822
Series B Preferred Stock Dividends
Investment Income (Loss)
Preferred Dividends	2,519	2,519
Class A Common Stock
Investment Income (Loss)
Net Income (Loss) Attributable to KKR & Co. Inc. Class A Common Stockholders	$ 700,978	$ 170,102
Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Class A Common Stock
Basic (in dollars per share)	$ 1.31	$ 0.36
Diluted (in dollars per share)	$ 1.27	$ 0.32
Weighted Average Shares of Class A Common Stock Outstanding
Basic (in shares)	533,892,474	487,704,838
Diluted (in shares)	550,046,440	535,918,274

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
Net Income (Loss)	$ 1,627,046	$ 602,894
Other Comprehensive Income (Loss), Net of Tax:
Foreign Currency Translation Adjustments	2,366	3,624
Comprehensive Income (Loss)	1,629,412	606,518
Less: Comprehensive Income (Loss) Attributable to Redeemable Noncontrolling Interests	0	25,674
Less: Comprehensive Income (Loss) Attributable to Noncontrolling Interests	920,359	398,050
Comprehensive Income (Loss) Attributable to KKR & Co. Inc.	$ 709,053	$ 182,794

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CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) - USD ($) $ in Thousands		Total		Preferred Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Class A Common Stock Common Stock	Class B Common Stock Common Stock	Class C Common Stock Common Stock	Series A Preferred Stock Retained Earnings	Series B Preferred Stock Retained Earnings	Common Stock	Capital - Common Unitholders	Accumulated Other Comprehensive Income (Loss)	Total Capital - Common Units	Series A Preferred Stock Dividends	Series B Preferred Stock Dividends	Noncontrolling Interests
KKR & Co. L.P. Partners' Capital - beginning balance at Dec. 31, 2017		$ 20,052,260												$ 6,722,863	$ (19,481)	$ 6,703,382	$ 332,988	$ 149,566	$ 12,866,324
KKR & Co. L.P. Partners' Capital - beginning balance (in units) at Dec. 31, 2017													486,174,736
Increase (Decrease) in Partners' Capital
Net Income (Loss)		577,220												170,102		170,102	5,822	2,519	398,777
Other Comprehensive Income (Loss)- Foreign Currency Translation (Net of Tax)		3,624													4,351	4,351			(727)
Exchange of KKR Holdings L.P. Units and Other Securities to KKR & Co. L.P. Common Units														51,221	(132)	51,089			(51,089)
Exchange of KKR Holdings L.P. Units and Other Securities to KKR & Co. L.P. Common Units (in units)													3,067,306
Tax Effects Resulting from Exchange of KKR Holdings L.P. Units and Other		4,222												4,205	17	4,222
Equity-Based and Other Non-Cash Compensation		100,491												67,796		67,796			32,695
Capital Contributions		1,270,723																	1,270,723
Capital Distributions		(930,232)												(82,757)		(82,757)	(5,822)	(2,519)	(839,134)
KKR & Co. L.P. Partners' Capital - ending balance at Mar. 31, 2018		21,078,308												$ 6,933,430	$ (15,245)	$ 6,918,185	$ 332,988	$ 149,566	13,677,569
KKR & Co. L.P. Partners' Capital - ending balance (in units) at Mar. 31, 2018													489,242,042
Balance at Dec. 31, 2017		610,540
Increase (Decrease) in Redeemable Noncontrolling Interests
Net Income (Loss)		25,674
Capital Contributions		56,950
Capital Distributions		(2,534)
Balance at Mar. 31, 2018		690,630
Increase (Decrease) in Stockholders' Equity
Net Income (Loss) Attributable to KKR & Co. Inc.		178,443
Noncontrolling Interests (See Note 15 Equity)	[1]	15,610,358
Total Equity	[1]	24,259,968
Other Comprehensive Income (Loss)- Foreign Currency Translation (Net of Tax)		2,366					$ (266)
Exchange of KKR Holdings L.P. Units and Other Securities to KKR & Co. L.P. Common Units					$ 7,137		(43)	$ 4
Exchange of KKR Holdings L.P. Units and Other Securities to KKR & Co. L.P. Common Units (in units)								435,954
Tax Effects Resulting from Exchange of KKR Holdings L.P. Units and Other		5,255			5,255
Capital Contributions																			1,194,815
Capital Distributions																			$ (856,086)
Balance at Dec. 31, 2018		1,122,641
Increase (Decrease) in Redeemable Noncontrolling Interests
Net Income (Loss)		0
Balance at Mar. 31, 2019		0
Stockholders' equity, beginning balance at Dec. 31, 2018		8,649,610	[1]	$ 482,554	8,106,408	$ 91,953	(39,645)	$ 5,349	$ 0	$ 2,991
Shares outstanding, beginning balance (in shares) at Dec. 31, 2018				20,000,000				534,857,237	1	299,081,239
Increase (Decrease) in Stockholders' Equity
Repurchases of Class A Common Stock					(28,552)			$ (14)
Repurchases of Class A Common Stock (in shares)								(1,370,289)
Cancellation of Class C Common Stock										$ (4)
Cancellation of Class C Common Stock (in shares)										(435,954)
Equity-Based Compensation					54,885
Net Income (Loss) Attributable to KKR & Co. Inc.		709,319				709,319
Series A Preferred Stock Dividends ($0.421875 per share)											$ (5,822)	$ (2,519)
Common Stock Dividends						(66,619)
Stockholders' equity, ending balance at Mar. 31, 2019		9,322,371	[1]	$ 482,554	$ 8,145,133	$ 726,312	$ (39,954)	$ 5,339	$ 0	$ 2,987
Shares outstanding, ending balance (in shares) at Mar. 31, 2019				20,000,000				533,922,902	1	298,645,285
Increase (Decrease) in Stockholders' Equity
Noncontrolling Interests (See Note 15 Equity)	[1]	16,885,470
Total Equity	[1]	$ 26,207,841

[1] See Note 1 "Organization."

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CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) (Parenthetical)	3 Months Ended
	Mar. 31, 2019 $ / shares
Dividend declared (in dollars per share)	$ 0.125
Series A Preferred Stock
Dividend declared (in dollars per share)	0.421875
Series B Preferred Stock
Dividend declared (in dollars per share)	$ 0.406250

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Operating Activities
Net Income (Loss)	$ 1,627,046	$ 602,894
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided (Used) by Operating Activities:
Equity-Based and Other Non-Cash Compensation	78,268	96,227
Net Realized (Gains) Losses on Investments	(129,781)	(30,380)
Change in Unrealized (Gains) Losses on Investments	(1,074,097)	(442,420)
Capital Allocation-Based Income	(814,932)	(78,212)
Other Non-Cash Amounts	(12,111)	74,156
Cash Flows Due to Changes in Operating Assets and Liabilities:
Change in Consolidation and Other	(137,498)	0
Change in Due from / to Affiliates	(100,529)	(71,686)
Change in Other Assets	68,077	420,004
Change in Accounts Payable, Accrued Expenses and Other Liabilities	381,421	(41,480)
Investments Purchased	(5,301,227)	(9,515,686)
Proceeds from Investments	5,571,641	6,829,083
Net Cash Provided (Used) by Operating Activities	156,278	(2,157,500)
Investing Activities
Purchases of Fixed Assets	(19,455)	(8,670)
Development of Oil and Natural Gas Properties	(451)	0
Net Cash Provided (Used) by Investing Activities	(19,906)	(8,670)
Financing Activities
Preferred Stock Dividends	(8,341)	(8,341)
Common Stock Dividends	(66,619)	(82,757)
Distributions to Redeemable Noncontrolling Interests	0	(2,534)
Contributions from Redeemable Noncontrolling Interests	0	56,950
Distributions to Noncontrolling Interests	(856,086)	(839,134)
Contributions from Noncontrolling Interests	1,194,815	1,263,774
Proceeds from Debt Obligations	1,581,043	3,588,463
Repayment of Debt Obligations	(1,806,203)	(2,750,750)
Financing Costs Paid	(2,795)	(7,500)
Net Cash Provided (Used) by Financing Activities	7,248	1,218,171
Effect of exchange rate changes on cash, cash equivalents and restricted cash	1,636	20,902
Net Increase/(Decrease) in Cash, Cash Equivalents and Restricted Cash	145,256	(927,097)
Cash, Cash Equivalents and Restricted Cash, Beginning of Period	2,641,512	3,735,361
Cash, Cash Equivalents and Restricted Cash, End of Period	2,786,768	2,808,264
Supplemental Disclosures of Cash Flow Information
Payments for Interest	240,889	207,703
Payments for Income Taxes	8,901	19,295
Payments for Operating Lease Liabilities	12,291	0
Supplemental Disclosures of Non-Cash Investing and Financing Activities
Equity-Based and Other Non-Cash Contributions	78,003	100,491
Non-Cash Contributions from Noncontrolling Interests	0	6,949
Debt Obligations - Net Gains (Losses), Translation and Other	(148,312)	(11,724)
Tax Effects Resulting from Exchange of KKR Holdings L.P. Units and delivery of Class A Common Stock	5,255	4,222
Change in Consolidation and Other
Investments	(1,014,813)	0
Due From Affiliates	1,642	0
Other Assets	(19,703)	0
Accounts Payable, Accrued Expenses and Other Liabilities	(47,731)	0
Redeemable Noncontrolling Interests	(1,122,641)	0
Reconciliation to the Condensed Consolidated Statements of Financial Condition
Cash, Cash Equivalents and Restricted Cash, End of Period	2,641,512	3,735,361
Class A Common Stock
Financing Activities
Repurchases of Class A Common Stock	$ (28,566)	$ 0

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ORGANIZATION

3 Months Ended

Mar. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

ORGANIZATION

ORGANIZATION

KKR & Co. Inc. (NYSE: KKR), together with its subsidiaries ("KKR"), is a leading global investment firm that manages multiple alternative asset classes including private equity, energy, infrastructure, real estate and credit, with strategic partners that manage hedge funds. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR's portfolio companies. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business.

On July 1, 2018, KKR & Co. L.P. converted from a Delaware limited partnership to a Delaware corporation named KKR & Co. Inc. (the "Conversion"). Because the Conversion became effective on July 1, 2018, the prior period amounts in the accompanying condensed consolidated financial statements for the three months ended March 31, 2018, reflect KKR as a limited partnership and not a corporation. In this report, references to KKR & Co. Inc. for periods prior to the Conversion mean KKR & Co. L.P., and references to KKR's Class A common stock, Series A Preferred Stock and Series B Preferred Stock for periods prior to the Conversion mean common units, Series A preferred units and Series B preferred units of KKR & Co. L.P., respectively, in each case, except where the context requires otherwise. As a result of the Conversion, the financial impact to the condensed consolidated financial statements contained herein consisted of (i) reclassifications from partnership equity accounts to equity accounts reflective of a corporation and (ii) a partial step-up in the tax basis of certain assets resulting in the recognition of a net income tax benefit.

KKR & Co. Inc. is the parent company of KKR Group Holdings Corp., which is (i) a general partner of KKR Fund Holdings L.P. ("Fund Holdings") and KKR International Holdings L.P. ("International Holdings") and (ii) the sole stockholder of KKR Management Holdings Corp. (the general partner of KKR Management Holdings L.P. ("Management Holdings")) and KKR Fund Holdings GP Limited (the other general partner of Fund Holdings and International Holdings). Fund Holdings, Management Holdings and International Holdings are collectively referred to as the "KKR Group Partnerships."

KKR & Co. Inc. both indirectly controls the KKR Group Partnerships and indirectly holds Class A partner units in each KKR Group Partnership (collectively, "KKR Group Partnership Units") representing economic interests in KKR's business. The remaining KKR Group Partnership Units are held by KKR Holdings L.P. ("KKR Holdings"), which is not a subsidiary of KKR & Co. Inc. As of March 31, 2019, KKR & Co. Inc. held approximately 64.1% of the KKR Group Partnership Units and principals through KKR Holdings held approximately 35.9% of the KKR Group Partnership Units. The percentage ownership in the KKR Group Partnerships will continue to change as KKR Holdings and/or principals exchange units in the KKR Group Partnerships for shares of Class A common stock of KKR & Co. Inc. or when KKR & Co. Inc. otherwise issues or repurchases shares of Class A common stock of KKR & Co. Inc. The KKR Group Partnerships also have outstanding equity interests that provide for the carry pool and preferred units with economic terms that mirror the preferred stock issued by KKR & Co. Inc.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited financial statements of KKR & Co. Inc. have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and the instructions to Form 10-Q. The condensed consolidated financial statements (referred to hereafter as the "financial statements"), including these notes, are unaudited and exclude some of the disclosures required in annual financial statements. Management believes it has made all necessary adjustments (consisting of only normal recurring items) such that the financial statements are presented fairly and that estimates made in preparing the financial statements are reasonable and prudent. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. The December 31, 2018 consolidated balance sheet data was derived from audited financial statements included in KKR's Annual Report on Form 10-K for the year ended December 31, 2018, filed with the Securities and Exchange Commission (the "SEC") on February 15, 2019, and the financial statements should be read in conjunction with the audited financial statements included therein. Additionally, in the accompanying financial statements the condensed consolidated statements of financial condition are referred to hereafter as the “consolidated statements of financial condition”; the condensed consolidated statements of operations are referred to hereafter as the “consolidated statements of operations”;  the condensed consolidated statements of comprehensive income (loss) are referred to hereafter as the “consolidated statements of comprehensive income (loss)”; the condensed consolidated statements of changes in equity are referred to hereafter as the “consolidated statements of changes in equity”; and the condensed consolidated statements of cash flows are referred to hereafter as the “consolidated statements of cash flows."

KKR consolidates the financial results of the KKR Group Partnerships and their consolidated entities, which include the accounts of KKR's investment management and capital markets companies, the general partners of certain unconsolidated investment funds, general partners of consolidated investment funds and their respective consolidated investment funds, and certain other entities including CFEs. References in the accompanying financial statements to "principals" are to KKR's senior employees and non-employee operating consultants who hold interests in KKR's business through KKR Holdings.

All intercompany transactions and balances have been eliminated.

Use of Estimates

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues, expenses, and investment income (loss) during the reporting periods. Such estimates include but are not limited to (i) the determination of the income tax provision and (ii) the valuation of investments and financial instruments. Actual results could differ from those estimates, and such differences could be material to the financial statements.

Principles of Consolidation

The types of entities KKR assesses for consolidation include (i) subsidiaries, including management companies, broker-dealers and general partners of investment funds that KKR manages, (ii) entities that have all the attributes of an investment company, like investment funds, (iii) CFEs and (iv) other entities, including entities that employ non-employee operating consultants. Each of these entities is assessed for consolidation on a case by case basis depending on the specific facts and circumstances surrounding that entity.

Pursuant to its consolidation policy, KKR first considers whether an entity is considered a VIE and therefore whether to apply the consolidation guidance under the VIE model. Entities that do not qualify as VIEs are assessed for consolidation as voting interest entities ("VOEs") under the voting interest model.

KKR's funds are, for GAAP purposes, investment companies and therefore are not required to consolidate their investments in portfolio companies even if majority-owned and controlled. Rather, the consolidated funds and vehicles reflect their investments at fair value as described below in "Fair Value Measurements."

An entity in which KKR holds a variable interest is a VIE if any one of the following conditions exist: (a) the total equity investment at risk is not sufficient to permit the legal entity to finance its activities without additional subordinated financial support, (b) the holders of the equity investment at risk (as a group) lack either the direct or indirect ability through voting rights or similar rights to make decisions about a legal entity's activities that have a significant effect on the success of the legal entity or the obligation to absorb the expected losses or right to receive the expected residual returns, or (c) the voting rights of some investors are disproportionate to their obligation to absorb the expected losses of the legal entity, their rights to receive the expected residual returns of the legal entity, or both and substantially all of the legal entity's activities either involve or are conducted on behalf of an investor with disproportionately few voting rights. Limited partnerships and other similar entities where unaffiliated limited partners have not been granted (i) substantive participatory rights or (ii) substantive rights to either dissolve the partnership or remove the general partner ("kick-out rights") are VIEs under condition (b) above. KKR's investment funds that are not CFEs (i) are generally limited partnerships, (ii) generally provide KKR with operational discretion and control, and (iii) generally have fund investors with no substantive rights to impact ongoing governance and operating activities of the fund, including the ability to remove the general partner, and, as such, the limited partners do not hold kick-out rights. Accordingly, most of KKR's investment funds are categorized as VIEs.

KKR consolidates all VIEs in which it is the primary beneficiary. A reporting entity is determined to be the primary beneficiary if it holds a controlling financial interest in a VIE. A controlling financial interest is defined as (a) the power to direct the activities of a VIE that most significantly impact the VIE's economic performance and (b) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The consolidation guidance requires an analysis to determine (i) whether an entity in which KKR holds a variable interest is a VIE and (ii) whether KKR's involvement, through holding interests directly or indirectly in the entity or contractually through other variable interests (for example, management and performance related fees), would give it a controlling financial interest. Performance of that analysis requires the exercise of judgment. Fees earned by KKR that are customary and commensurate with the level of effort required to provide those services, and where KKR does not hold other economic interests in the entity that would absorb more than an insignificant amount of the expected losses or returns of the entity, would not be considered variable interests. KKR factors in all economic interests including interests held through related parties, to determine if it holds a variable interest. KKR determines whether it is the primary beneficiary of a VIE at the time it becomes involved with a VIE and reconsiders that conclusion when facts and circumstances change.

For entities that are determined not to be VIEs, these entities are generally considered VOEs and are evaluated under the voting interest model. KKR consolidates VOEs it controls through a majority voting interest or through other means.

The consolidation assessment, including the determination as to whether an entity qualifies as a VIE or VOE depends on the facts and circumstances surrounding each entity and therefore certain of KKR's investment funds may qualify as VIEs whereas others may qualify as VOEs.

With respect to CLOs (which are generally VIEs), in its role as collateral manager, KKR generally has the power to direct the activities of the CLO that most significantly impact the economic performance of the entity. In some, but not all cases, KKR, through its residual interest in the CLO may have variable interests that represent an obligation to absorb losses of, or a right to receive benefits from, the CLO that could potentially be significant to the CLO. In cases where KKR has both the power to direct the activities of the CLO that most significantly impact the CLO's economic performance and the obligation to absorb losses of the CLO or the right to receive benefits from the CLO that could potentially be significant to the CLO, KKR is deemed to be the primary beneficiary and consolidates the CLO.

With respect to CMBS vehicles (which are generally VIEs), KKR holds unrated and non-investment grade rated securities issued by the CMBS, which are the most subordinate tranche of the CMBS vehicle. The economic performance of the CMBS is most significantly impacted by the performance of the underlying assets. Thus, the activities that most significantly impact the CMBS economic performance are the activities that most significantly impact the performance of the underlying assets. The special servicer has the ability to manage the CMBS assets that are delinquent or in default to improve the economic performance of the CMBS. KKR generally has the right to unilaterally appoint and remove the special servicer for the CMBS and as such is considered the controlling class of the CMBS vehicle. These rights give KKR the ability to direct the activities that most significantly impact the economic performance of the CMBS. Additionally, as the holder of the most subordinate tranche, KKR is in a first loss position and has the right to receive benefits, including the actual residual returns of the CMBS, if any. In these cases, KKR is deemed to be the primary beneficiary and consolidates the CMBS vehicle.

Investments

Investments consist primarily of private equity, real assets, credit, investments of consolidated CFEs, equity method, carried interest and other investments. Investments denominated in currencies other than the entity's functional currency are valued based on the spot rate of the respective currency at the end of the reporting period with changes related to exchange rate movements reflected as a component of Net Gains (Losses) from Investment Activities in the consolidated statements of operations. Security and loan transactions are recorded on a trade date basis. Further disclosure on investments is presented in Note 4 "Investments."

The following describes the types of securities held within each investment class.

Private Equity - Consists primarily of equity investments in operating businesses, including growth equity investments.

Credit - Consists primarily of investments in below investment grade corporate debt securities (primarily high yield bonds and syndicated bank loans), originated, distressed and opportunistic debt, real estate mortgage loans, and interests in unconsolidated CLOs.

Investments of Consolidated CFEs - Consists primarily of (i) investments in below investment grade corporate debt securities (primarily high yield bonds and syndicated bank loans) held directly by the consolidated CLOs and (ii) investments in originated, fixed-rate real estate mortgage loans held directly by the consolidated CMBS vehicles.

Real Assets - Consists primarily of investments in (i) energy related assets, principally oil and natural gas producing properties, (ii) infrastructure assets, and (iii) real estate, principally residential and commercial real estate assets and businesses.

Equity Method - Other - Consists primarily of (i) certain direct interests in operating companies in which KKR is deemed to exert significant influence under GAAP and (ii) certain interests in partnerships and joint ventures that hold private equity and real estate investments.

Equity Method - Capital Allocation-Based Income - Consists primarily of (i) the capital interest KKR holds as the general partner in certain investment funds, which are not consolidated and (ii) the carried interest component of the general partner interest, which are accounted for as a single unit of account.

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

Investments held by Consolidated Investment Funds

The consolidated investment funds are, for GAAP purposes, investment companies and reflect their investments and other financial instruments, including portfolio companies that are majority-owned and controlled by KKR's investment funds, at fair value. KKR has retained this specialized accounting for the consolidated funds in consolidation. Accordingly, the unrealized gains and losses resulting from changes in fair value of the investments and other financial instruments held by the consolidated investment funds are reflected as a component of Net Gains (Losses) from Investment Activities in the consolidated statements of operations.

Certain energy investments are made through consolidated investment funds, including investments in working and royalty interests in oil and natural gas producing properties as well as investments in operating companies that operate in the energy industry. Since these investments are held through consolidated investment funds, such investments are reflected at fair value as of the end of the reporting period. 

Investments in operating companies that are held through KKR's consolidated investment funds are generally classified within private equity investments and investments in working and royalty interests in oil and natural gas producing properties are generally classified as real asset investments.

Energy Investments held by KKR

Certain energy investments are made by KKR in working and royalty interests in oil and natural gas producing properties and not through investment funds. Oil and natural gas producing activities are accounted for under the successful efforts method of accounting and such working interests are consolidated based on the proportion of the working interests held by KKR. Accordingly, KKR reflects its proportionate share of the underlying consolidated statements of financial condition and consolidated statements of operations of the consolidated working interests on a gross basis and changes in the value of these working interests are not reflected as unrealized gains and losses in the consolidated statements of operations. Under the successful efforts method, exploration costs, other than the costs of drilling exploratory wells, are charged to expense as incurred. Costs that are associated with the drilling of successful exploration wells are capitalized if proved reserves are found. Lease acquisition costs are capitalized when incurred. Costs associated with the drilling of exploratory wells that do not find proved reserves, geological and geophysical costs and costs of certain nonproducing leasehold costs are charged to expense as incurred.

Expenditures for repairs and maintenance, including workovers, are charged to expense as incurred.

The capitalized costs of producing oil and natural gas properties are depleted on a field-by-field basis using the units-of production method based on the ratio of current production to estimated total net proved oil, natural gas and natural gas liquid reserves. Proved developed reserves are used in computing depletion rates for drilling and development costs and total proved reserves are used for depletion rates of leasehold costs.

Estimated dismantlement and abandonment costs for oil and natural gas properties, net of salvage value, are capitalized at their estimated net present value and amortized on a unit-of-production basis over the remaining life of the related proved developed reserves.

Whenever events or changes in circumstances indicate that the carrying amounts of oil and natural gas properties may not be recoverable, KKR evaluates oil and natural gas properties and related equipment and facilities for impairment on a field-by-field basis. The determination of recoverability is made based upon estimated undiscounted future net cash flows. The amount of impairment loss, if any, is determined by comparing the fair value, as determined by a discounted cash flow analysis, with the carrying value of the related asset. Any impairment in value is recognized when incurred and is recorded in General, Administrative, and Other expense in the consolidated statements of operations.

Fair Value Option

For certain investments and other financial instruments, KKR has elected the fair value option. Such election is irrevocable and is applied on a financial instrument by financial instrument basis at initial recognition. KKR has elected the fair value option for certain private equity, real assets, credit, investments of consolidated CFEs, equity method - other and other financial instruments not held through a consolidated investment fund. Accounting for these investments at fair value is consistent with how KKR accounts for its investments held through consolidated investment funds. Changes in the fair value of such instruments are recognized in Net Gains (Losses) from Investment Activities in the consolidated statements of operations. Interest income on interest bearing credit securities on which the fair value option has been elected is based on stated coupon rates adjusted for the accretion of purchase discounts and the amortization of purchase premiums. This interest income is recorded within Interest Income in the consolidated statements of operations.

Equity Method

For certain investments in entities over which KKR exercises significant influence but which do not meet the requirements for consolidation and for which KKR has not elected the fair value option, KKR uses the equity method of accounting. The carrying value of equity method investments, for which KKR has not elected the fair value option, is determined based on the amounts invested by KKR, adjusted for the equity in earnings or losses of the investee allocated based on KKR's respective ownership percentage, less distributions.

For equity method investments for which KKR has not elected the fair value option, KKR records its proportionate share of the investee's earnings or losses based on the most recently available financial information of the investee, which in certain cases may lag the date of KKR's financial statements by no more than three calendar months. As of March 31, 2019, equity method investees for which KKR reports financial results on a lag include Marshall Wace LLP ("Marshall Wace"). KKR evaluates its equity method investments for which KKR has not elected the fair value option for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable.

The carrying value of investments classified as Equity Method - Capital Allocation-Based Income approximates fair value, because the underlying investments of the unconsolidated investment funds are reported at fair value.

Financial Instruments held by Consolidated CFEs

KKR measures both the financial assets and financial liabilities of the consolidated CFEs in its financial statements using the more observable of the fair value of the financial assets and the fair value of the financial liabilities which results in KKR's consolidated net income (loss) reflecting KKR's own economic interests in the consolidated CFEs including (i) changes in the fair value of the beneficial interests retained by KKR and (ii) beneficial interests that represent compensation for services rendered.

For the consolidated CLOs, KKR has determined that the fair value of the financial assets of the consolidated CLOs is more observable than the fair value of the financial liabilities of the consolidated CLOs. As a result, the financial assets of the consolidated CLOs are being measured at fair value and the financial liabilities are being measured in consolidation as: (1) the sum of the fair value of the financial assets and the carrying value of any nonfinancial assets that are incidental to the operations of the CLOs less (2) the sum of the fair value of any beneficial interests retained by KKR (other than those that represent compensation for services) and KKR's carrying value of any beneficial interests that represent compensation for services. The resulting amount is allocated to the individual financial liabilities (other than the beneficial interests retained by KKR).

For the consolidated CMBS vehicles, KKR has determined that the fair value of the financial liabilities of the consolidated CMBS vehicles is more observable than the fair value of the financial assets of the consolidated CMBS vehicles. As a result, the financial liabilities of the consolidated CMBS vehicles are being measured at fair value and the financial assets are being measured in consolidation as: (1) the sum of the fair value of the financial liabilities (other than the beneficial interests retained by KKR), the fair value of the beneficial interests retained by KKR and the carrying value of any nonfinancial liabilities that are incidental to the operations of the CMBS vehicles less (2) the carrying value of any nonfinancial assets that are incidental to the operations of the CMBS vehicles. The resulting amount is allocated to the individual financial assets.

Fair Value Measurements

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. Except for certain of KKR's equity method investments (see "Equity Method" above) and debt obligations (as described in Note 10 "Debt Obligations"), KKR's investments and other financial instruments are recorded at fair value or at amounts whose carrying values approximate fair value. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation techniques are applied. These valuation techniques involve varying levels of management estimation and judgment, the degree of which is dependent on a variety of factors.

GAAP establishes a hierarchical disclosure framework which prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

Investments and financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination of fair values, as follows:

Level I - Pricing inputs are unadjusted, quoted prices in active markets for identical assets or liabilities as of the measurement date. The types of financial instruments included in this category are publicly-listed equities and securities sold short.

Level II - Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the measurement date, and fair value is determined through the use of models or other valuation methodologies. The types of financial instruments included in this category are credit investments, investments and debt obligations of consolidated CLO entities, convertible debt securities indexed to publicly-listed securities, less liquid and restricted equity securities and certain over-the-counter derivatives such as foreign currency option and forward contracts.

Level III - Pricing inputs are unobservable for the financial instruments and include situations where there is little, if any, market activity for the financial instrument. The inputs into the determination of fair value require significant management judgment or estimation. The types of financial instruments generally included in this category are private portfolio companies, real assets investments, credit investments, equity method investments for which the fair value option was elected and investments and debt obligations of consolidated CMBS entities.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. KKR's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and consideration of factors specific to the asset.

A significant decrease in the volume and level of activity for the asset or liability is an indication that transactions or quoted prices may not be representative of fair value because in such market conditions there may be increased instances of transactions that are not orderly. In those circumstances, further analysis of transactions or quoted prices is needed, and a significant adjustment to the transactions or quoted prices may be necessary to estimate fair value.

The availability of observable inputs can vary depending on the financial asset or liability and is affected by a wide variety of factors, including, for example, the type of instrument, whether the instrument has recently been issued, whether the instrument is traded on an active exchange or in the secondary market, and current market conditions. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by KKR in determining fair value is greatest for instruments categorized in Level III. The variability and availability of the observable inputs affected by the factors described above may cause transfers between Levels I, II, and III, which KKR recognizes at the beginning of the reporting period. 

Investments and other financial instruments that have readily observable market prices (such as those traded on a securities exchange) are stated at the last quoted sales price as of the reporting date. KKR does not adjust the quoted price for these investments, even in situations where KKR holds a large position and a sale could reasonably affect the quoted price.

Management's determination of fair value is based upon the methodologies and processes described below and may incorporate assumptions that are management's best estimates after consideration of a variety of internal and external factors.

Level II Valuation Methodologies

Credit Investments: These instruments generally have bid and ask prices that can be observed in the marketplace. Bid prices reflect the highest price that KKR and others are willing to pay for an instrument. Ask prices represent the lowest price that KKR and others are willing to accept for an instrument. For financial assets and liabilities whose inputs are based on bid-ask prices obtained from third party pricing services, fair value may not always be a predetermined point in the bid-ask range. KKR's policy is generally to allow for mid-market pricing and adjusting to the point within the bid-ask range that meets KKR's best estimate of fair value.

Investments and Debt Obligations of Consolidated CLO Vehicles: Investments of consolidated CLO vehicles are reported within Investments of Consolidated CFEs and are valued using the same valuation methodology as described above for credit investments. Under ASU 2014-13, KKR measures CLO debt obligations on the basis of the fair value of the financial assets of the CLO.

Securities indexed to publicly-listed securities: The securities are typically valued using standard convertible security pricing models. The key inputs into these models that require some amount of judgment are the credit spreads utilized and the volatility assumed. To the extent the company being valued has other outstanding debt securities that are publicly-traded, the implied credit spread on the company's other outstanding debt securities would be utilized in the valuation. To the extent the company being valued does not have other outstanding debt securities that are publicly-traded, the credit spread will be estimated based on the implied credit spreads observed in comparable publicly-traded debt securities. In certain cases, an additional spread will be added to reflect an illiquidity discount due to the fact that the security being valued is not publicly-traded. The volatility assumption is based upon the historically observed volatility of the underlying equity security into which the convertible debt security is convertible and/or the volatility implied by the prices of options on the underlying equity security.

Restricted Equity Securities: The valuation of certain equity securities is based on an observable price for an identical security adjusted for the effect of a restriction.

Derivatives: The valuation incorporates observable inputs comprising yield curves, foreign currency rates and credit spreads.

Level III Valuation Methodologies

Investments and financial instruments categorized as Level III consist primarily of the following:

Private Equity Investments: KKR generally employs two valuation methodologies when determining the fair value of a private equity investment. The first methodology is typically a market comparables analysis that considers key financial inputs and recent public and private transactions and other available measures. The second methodology utilized is typically a discounted cash flow analysis, which incorporates significant assumptions and judgments. Estimates of key inputs used in this methodology include the weighted average cost of capital for the investment and assumed inputs used to calculate terminal values, such as exit EBITDA multiples. In certain cases the results of the discounted cash flow approach can be significantly impacted by these estimates. Other inputs are also used in both methodologies. In addition, when a definitive agreement has been executed to sell an investment, KKR generally considers a significant determinant of fair value to be the consideration to be received by KKR pursuant to the executed definitive agreement.

Upon completion of the valuations conducted using these methodologies, a weighting is ascribed to each method, and an illiquidity discount is typically applied where appropriate. The ultimate fair value recorded for a particular investment will generally be within a range suggested by the two methodologies, except that the value may be higher or lower than such range in the case of investments being sold pursuant to an executed definitive agreement.

When determining the weighting ascribed to each valuation methodology, KKR considers, among other factors, the availability of direct market comparables, the applicability of a discounted cash flow analysis, the expected hold period and manner of realization for the investment, and in the case of investments being sold pursuant to an executed definitive agreement, an estimated probability of such sale being completed. These factors can result in different weightings among investments in the portfolio and in certain instances may result in up to a 100% weighting to a single methodology.

When an illiquidity discount is to be applied, KKR seeks to take a uniform approach across its portfolio and generally applies a minimum 5% discount to all private equity investments. KKR then evaluates such private equity investments to determine if factors exist that could make it more challenging to monetize the investment and, therefore, justify applying a higher illiquidity discount. These factors generally include (i) whether KKR is unable to freely sell the portfolio company or conduct an initial public offering of the portfolio company due to the consent rights of a third party or similar factors, (ii) whether the portfolio company is undergoing significant restructuring activity or similar factors, and (iii) characteristics about the portfolio company regarding its size and/or whether the portfolio company is experiencing, or expected to experience, a significant decline in earnings. These factors generally make it less likely that a portfolio company would be sold or publicly offered in the near term at a price indicated by using just a market multiples and/or discounted cash flow analysis, and these factors tend to reduce the number of opportunities to sell an investment and/or increase the time horizon over which an investment may be monetized. Depending on the applicability of these factors, KKR determines the amount of any incremental illiquidity discount to be applied above the 5% minimum, and during the time KKR holds the investment, the illiquidity discount may be increased or decreased, from time to time, based on changes to these factors. The amount of illiquidity discount applied at any time requires considerable judgment about what a market participant would consider and is based on the facts and circumstances of each individual investment. Accordingly, the illiquidity discount ultimately considered by a market participant upon the realization of any investment may be higher or lower than that estimated by KKR in its valuations.

In the case of growth equity investments, enterprise values may be determined using the market comparables analysis and discounted cash flow analysis described above. A scenario analysis may also be conducted to subject the estimated enterprise values to a downside, base and upside case, which involves significant assumptions and judgments. A milestone analysis may also be conducted to assess the current level of progress towards value drivers that we have determined to be important, which involves significant assumptions and judgments. The enterprise value in each case may then be allocated across the investment's capital structure to reflect the terms of the security and subjected to probability weightings. In certain cases, the values of growth equity investments may be based on recent or expected financings.

Real Asset Investments: Real asset investments in infrastructure, energy and real estate are valued using one or more of the discounted cash flow analysis, market comparables analysis and direct income capitalization, which in each case incorporates significant assumptions and judgments.

Infrastructure investments are generally valued using the discounted cash flow analysis. Key inputs used in this methodology can include the weighted average cost of capital and assumed inputs used to calculate terminal values, such as exit EBITDA multiples.

Energy investments are generally valued using a discounted cash flow approach, and where applicable, a market approach using comparable companies and transactions. Key inputs used in our valuations include (i) the weighted average cost of capital, (ii) future commodity prices, as quoted on indices and long-term commodity price forecasts, and (iii) the asset’s future operating performance.

Real estate investments are generally valued using a combination of direct income capitalization and discounted cash flow analysis. Certain real estate investments are valued by KKR based on ranges of valuations determined by an independent valuation firm. Key inputs used in such methodologies that require estimates include an unlevered discount rate and current capitalization rate. The valuations of real assets investments also use other inputs.

Credit Investments: Credit investments are valued using values obtained from dealers or market makers, and where these values are not available, credit investments are generally valued by KKR based on ranges of valuations determined by an independent valuation firm. Valuation models are based on discounted cash flow analyses, for which the key inputs are determined based on market comparables, which incorporate similar instruments from similar issuers.

Other Investments: With respect to other investments including equity method investments for which the fair value election has been made, KKR generally employs the same valuation methodologies as described above for private equity investments when valuing these other investments.

Investments and Debt Obligations of Consolidated CMBS Vehicles: Under ASU 2014-13, KKR measures CMBS investments, which are reported within Investments of Consolidated CFEs on the basis of the fair value of the financial liabilities of the CMBS. Debt obligations of consolidated CMBS vehicles are valued based on discounted cash flow analyses. The key input is the expected yield of each CMBS security using both observable and unobservable factors, which may include recently offered or completed trades and published yields of similar securities, security-specific characteristics (e.g. securities ratings issued by nationally recognized statistical rating organizations, credit support by other subordinate securities issued by the CMBS and coupon type) and other characteristics.

Key unobservable inputs that have a significant impact on KKR's Level III investment valuations as described above are included in Note 5 "Fair Value Measurements." KKR utilizes several unobservable pricing inputs and assumptions in determining the fair value of its Level III investments. These unobservable pricing inputs and assumptions may differ by investment and in the application of KKR's valuation methodologies. KKR's reported fair value estimates could vary materially if KKR had chosen to incorporate different unobservable pricing inputs and other assumptions or, for applicable investments, if KKR only used either the discounted cash flow methodology or the market comparables methodology instead of assigning a weighting to both methodologies.

Revenues

For the three months ended March 31, 2019 and 2018, respectively, revenues consisted of the following:    

	Three Months Ended March 31,
	2019			2018
Management Fees	$	188,408		$	187,727
Fee Credits	(103,477		)	(29,053		)
Transaction Fees	188,203			158,653
Monitoring Fees	25,651			17,586
Incentive Fees	—			13,805
Expense Reimbursements	44,060			20,211
Oil and Gas Revenue	13,175			14,507
Consulting Fees	16,528			10,958
Total Fees and Other	372,548			394,394
Carried Interest	694,383			62,747
General Partner Capital Interest	120,549			15,465
Total Capital Allocation-Based Income	814,932			78,212
Total Revenues	$	1,187,480		$	472,606

Fees and Other

Fees and Other, as detailed above, are accounted for as contracts with customers. Under the guidance for contracts with customers, KKR is required to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) KKR satisfies its performance obligation. In determining the transaction price, KKR has included variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved.

The following table summarizes KKR's revenues from contracts with customers:

Revenue Type	Customer	Performance Obligation	Performance Obligation Satisfied Over Time or Point In Time (1)	Variable or Fixed Consideration	Payment Terms	Subject to Return Once Recognized	Classification of Uncollected Amounts (2)
Management Fees	Investment funds, CLOs and other vehicles	Investment management services	Over time as services are rendered	Variable consideration since varies based on fluctuations in the basis of the management fee over time	Typically quarterly or annually in arrears	No	Due from Affiliates
Transaction Fees	Portfolio companies and third party companies	Advisory services and debt and equity arranging and underwriting	Point in time when the transaction (e.g. underwriting) is completed	Fixed consideration	Typically paid on or shortly after transaction closes	No	Due from Affiliates (portfolio companies) Other Assets (third parties)
Monitoring Fees
Recurring Fees	Portfolio companies	Monitoring services	Over time as services are rendered	Variable consideration since varies based on fluctuations in the basis of the recurring fee	Typically quarterly in arrears	No	Due from Affiliates
Termination Fees	Portfolio companies	Monitoring services	Point in time when the termination is completed	Fixed consideration	Typically paid on or shortly after termination occurs	No	Due from Affiliates
Incentive Fees	Investment funds and other vehicles	Investment management services that result in achievement of minimum investment return levels	Point in time at the end of the performance measurement period (quarterly or annually) if investment performance is achieved	Variable consideration since contingent upon the investment fund and other vehicles achieving more than stipulated investment return hurdles	Typically paid shortly after the end of the performance measurement period	No	Due from Affiliates
Expense Reimbursements	Investment funds and portfolio companies	Investment management and monitoring services	Point in time when the related expense is incurred	Fixed consideration	Typically shortly after expense is incurred	No	Due from Affiliates
Oil and Gas Revenues	Oil and gas wholesalers	Delivery of oil liquids and gas	Point in time when delivery has occurred and title has transferred	Fixed consideration	Typically shortly after delivery	No	Other Assets
Consulting Fees	Portfolio companies and other companies	Consulting and other services	Over time as services are rendered	Fixed consideration	Typically quarterly in arrears	No	Due from Affiliates

(1) For performance obligations satisfied at a point in time, there were no significant judgments made in evaluating when a customer obtains control of the promised service.

(2) For amounts classified in Other Assets, see Note 8 "Other Assets and Accounts Payable, Accrued Expenses and Other Liabilities." For amounts classified in Due from Affiliates, see Note 13 "Related Party Transactions."

Management Fees

KKR provides investment management services to investment funds, CLOs, and other vehicles in exchange for a management fee. Management fees are determined quarterly based on an annual rate and are generally based upon a percentage of the capital committed or capital invested during the investment period. Thereafter, management fees are generally based on a percentage of remaining invested capital, net asset value, gross assets or as otherwise defined in the respective contractual agreements. Since some of the factors that cause the fees to fluctuate are outside of KKR's control, management fees are considered to be constrained and are therefore not included in the transaction price. Additionally, after the contract is established there are no significant judgments made when determining the transaction price.

Management fees earned from KKR's consolidated investment funds, CLOs, and other vehicles are eliminated in consolidation. However, because these amounts are funded by, and earned from, noncontrolling interests, KKR's allocated share of the net income from the consolidated investment funds, CLOs, and other vehicles is increased by the amount of fees that are eliminated. Accordingly, the elimination of these fees does not impact the net income (loss) attributable to KKR or KKR stockholders' equity.

Fee Credits

Under the terms of the management agreements with certain of its investment funds, KKR is required to share with such funds an agreed upon percentage of certain fees, including monitoring and transaction fees earned from portfolio companies ("Fee Credits"). Investment funds earn Fee Credits only with respect to monitoring and transaction fees that are allocable to the fund's investment in the portfolio company and not, for example, any fees allocable to capital invested through co-investment vehicles. Fee Credits are calculated after deducting certain costs incurred in connection with pursuing potential investments that do not result in completed transactions ("broken-deal expenses") and generally amount to 80% for older funds, or 100% for newer funds, of allocable monitoring and transaction fees after broken-deal expenses are recovered, although the actual percentage may vary from fund to fund. Fee Credits are recognized and owed to investment funds concurrently with the recognition of monitoring fees, transaction fees and broken-deal expenses. Since Fee Credits are payable to investment funds, amounts owed are generally applied as a reduction of the management fee that is otherwise billed to the investment fund. Fee credits are recorded as a reduction of revenues in the consolidated statement of operations. Fee credits owed to investment funds are recorded in Due to Affiliates on the consolidated statements of financial condition. See Note 13 "Related Party Transactions."

Transaction Fees

KKR (i) arranges debt and equity financing, places and underwrites securities offerings, and provides other types of capital markets services for companies seeking financing in its Capital Markets business line and (ii) provides advisory services in connection with successful Private Markets and Public Markets portfolio company investment transactions, in each case, in exchange for a transaction fee. Transaction fees are separately negotiated for each transaction and are generally based on (i) in our Capital Markets business line, a percentage of the overall transaction size and (ii) for Private Markets and Public Markets transactions, a percentage of either total enterprise value of an investment or a percentage of the aggregate price paid for an investment. After the contract is established, there are no significant judgments made when determining the transaction price.

Monitoring Fees

KKR provides services in connection with monitoring portfolio companies in exchange for a fee. Recurring monitoring fees are separately negotiated for each portfolio company. In addition, certain monitoring fee arrangements may provide for a termination payment following an initial public offering or change of control as defined in the contractual terms of the related agreement. These termination payments are recognized in the period when the related transaction closes. After the contract is established, there are no significant judgments made when determining the transaction price.

Incentive Fees

KKR provides investment management services to certain investment funds, CLOs and other vehicles in exchange for a management fee as discussed above and, in some cases an incentive fee when KKR is not entitled to a carried interest. Incentive fee rates generally range from 5% to 20% of investment gains. Incentive fees are considered a form of variable consideration as these fees are subject to reversal, and therefore the recognition of such fees is deferred until the end of each fund's measurement period (which is generally one year) when the performance-based incentive fees become fixed and determinable. Incentive fees are generally paid within 90 days of the end of the investment vehicles' measurement period. After the contract is established, there are no significant judgments made when determining the transaction price.

Expense Reimbursements

Providing investment management services to investment funds and monitoring KKR’s portfolio companies require KKR to arrange for services on behalf of them. In those situations where KKR is acting as an agent on behalf of its investment funds or portfolio companies, it presents the cost of services on a net basis as a reduction of Revenues. In all other situations, KKR is primarily responsible for fulfilling the services and is therefore acting as a principal for those arrangements for accounting purposes. As a result, the expense and related reimbursement associated with those services is presented on a gross basis.Costs incurred are classified as Expenses and reimbursements of such costs are classified as Expense Reimbursements within Revenues on the consolidated statements of operations. After the contract is established, there are no significant judgments made when determining the transaction price.

Oil and Gas Revenue

KKR directly holds certain working and royalty interests in oil and natural gas producing properties that are not held through investment funds. Oil and gas revenue is recognized when the performance obligation is satisfied, which occurs at the point in time when control of the product transfers to the customer. Performance obligations are typically satisfied through the monthly delivery of production. Revenue is recognized based on KKR's proportionate share of production from non-operated properties as marketed by the operator. After the contract is established, there are no significant judgments made when determining the transaction price.

Consulting Fees

Certain consolidated entities that employ non-employee operating consultants provide consulting and other services to portfolio companies and other companies in exchange for a consulting fee. Consulting fees are separately negotiated with each portfolio company for which services are provided and are not shared with KKR. After the contract is established, there are no significant judgments made when determining the transaction price.

Capital Allocation-Based Income

Capital allocation-based income is earned from those arrangements where KKR has a general partner capital interest and is entitled to a disproportionate allocation of investment income (referred to hereafter as "carried interest"). KKR accounts for its general partner interests in capital allocation-based arrangements as financial instruments under ASC 323, Investments - Equity Method and Joint Ventures ("ASC 323") since the general partner has significant governance rights in the investment funds in which it invests, which demonstrates significant influence. In accordance with ASC 323, KKR records equity method income based on the proportionate share of the income of the investment fund, including carried interest, assuming the investment fund was liquidated as of each reporting date pursuant to each investment fund's governing agreements. Accordingly, these general partner interests are accounted for outside of the scope of ASC 606. Other arrangements surrounding contractual incentive fees through an advisory contract are separate and distinct and accounted for in accordance with ASC 606. In these incentive fee arrangements, accounted for in accordance with ASC 606, KKR’s economics in the entity do not involve an allocation of capital. See "Incentive Fees" above.

Carried interest is allocated to the general partner based on cumulative fund performance to date, and where applicable, subject to a preferred return to the funds' limited partners. At the end of each reporting period, KKR calculates the carried interest that would be due to KKR for each investment fund, pursuant to the fund agreements, as if the fair value of the underlying investments were realized as of such date, irrespective of whether such amounts have been realized. As the fair value of underlying investments varies between reporting periods, it is necessary to make adjustments to amounts recorded as carried interest to reflect either (a) positive performance resulting in an increase in the carried interest allocated to the general partner or (b) negative performance that would cause the amount due to KKR to be less than the amount previously recognized, resulting in a negative adjustment to carried interest allocated to the general partner. In each case, it is necessary to calculate the carried interest on cumulative results compared to the carried interest recorded to date and to make the required positive or negative adjustments. KKR ceases to record negative carried interest allocations once previously recognized carried interest allocations for an investment fund have been fully reversed. KKR is not obligated to make payments for guaranteed returns or hurdles and, therefore, cannot have negative carried interest over the life of an investment fund. Accrued but unpaid carried interest as of the reporting date is reflected in Investments in the consolidated statements of financial condition.

Income Taxes

KKR & Co. Inc. is a corporation for U.S. federal income tax purposes and thus is subject to U.S. federal, state and local corporate income taxes at the entity level on KKR’s share of net taxable income. In addition, the KKR Group Partnerships and certain of their subsidiaries operate in the United States as partnerships for U.S. federal income tax purposes and as corporate entities in certain non-U.S. jurisdictions. These entities, in some cases, are subject to U.S. state or local income taxes or non-U.S. income taxes.

Prior to the Conversion, KKR & Co. L.P.’s investment income and carried interest generally were not subject to U.S. corporate income taxes. Subsequent to the Conversion, all income earned by KKR & Co. Inc. is subject to U.S. corporate income taxes.

See Note 11 "Income Taxes" for further information on the financial statement impact of the Conversion.

Leases

At contract inception, KKR determines if an arrangement contains a lease by evaluating whether (i) the identified asset has been deployed in the contract explicitly or implicitly and (ii) KKR obtains substantially all of the economic benefits from the use of that underlying asset and directs how and for what purpose the asset is used during the term of the contract. Additionally, at contract inception KKR will evaluate whether the lease is an operating or finance lease. Right-of-use (“ROU”) assets represent KKR’s right to use an underlying asset for the lease term and lease liabilities represent KKR’s obligation to make lease payments arising from the lease.

ROU assets and the associated lease liabilities are recognized at the commencement date based on the present value of the future minimum lease payments over the lease term. The discount rate implicit in the lease is generally not readily determinable. Consequently, KKR uses its incremental borrowing rate based on the information available including, but not limited to, collateral assumptions, the term of the lease, and the economic environment in which the lease is denominated at the commencement date in determining the present value of the future lease payments. The ROU assets are recognized as the initial measurement of the lease liabilities plus any initial direct costs and any prepaid lease payments less lease incentives received, if any. The lease terms may include options to extend or terminate the lease which are accounted for when it is reasonably certain that KKR will exercise that option.

Operating lease expense is recognized on a straight-line basis over the lease term and is recorded within Occupancy and Related Charges in the accompanying consolidated statements of operations. The ROU assets are included in Other Assets and the lease liabilities are included in Accounts Payable, Accrued Expenses and Other Liabilities in the accompanying consolidated statements of financial condition. See Note 8 "Other Assets and Accounts Payable, Accrued Expenses and Other Liabilities."

Recently Issued Accounting Pronouncements

Adopted in 2019

Leases

In February 2016, the FASB issued ASU No. 2016-02, Leases ("ASC 842") which has subsequently been amended. This guidance, among other items: (i) requires recognition of lease assets and lease liabilities for those leases classified as operating leases under previous GAAP, ASC 840; (ii) retains a distinction between finance leases and operating leases; and (iii) includes the classification criteria for distinguishing between finance leases and operating leases that are substantially similar to the classification criteria for distinguishing between capital leases and operating leases under ASC 840.

The only material lease activity KKR is engaged in is the leasing of office space where KKR is the lessee under the terms of lease agreements, which have been determined to be operating leases. For operating leases, a lessee is required to: (a) recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the consolidated statement of financial condition; (b) recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term, generally on a straight-line basis, and (c) classify all cash payments within operating activities in the consolidated statement of cash flows.

KKR adopted this guidance on the effective date, January 1, 2019, using the modified retrospective approach and electing the "Comparatives Under ASC 840 Approach." The Comparatives Under ASC 840 Approach allows an entity to elect not to recast its comparative periods in the period of adoption when transitioning to ASC 842. In doing so, KKR has provided the disclosures required by ASC 840 for the comparative periods. Additionally, KKR has elected the practical expedient package transition election for all leases. The practical expedient package under the new standard allows an entity not to have to reassess its prior conclusions about lease identification, lease classification and initial direct costs.

Upon adoption, KKR recorded ROU assets of $153.3 million and lease liabilities of $162.9 million, resulting in no cumulative-effect adjustment to retained earnings as of January 1, 2019.

Premium Amortization on Purchased Callable Debt Securities

In March 2017, the FASB issued ASU No. 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities ("ASU 2017-08"). This guidance amends the amortization period for certain purchased callable debt securities held at a premium. The guidance requires the premium to be amortized to the earliest call date. The guidance does not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 is effective for fiscal years and interim periods beginning after December 15, 2018. This guidance has been adopted as of January 1, 2019 and did not have a material impact to KKR.

Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income

In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ("ASU 2018-02"). Under ASC 740-10-45-15, the effects of changes in tax rates and laws on deferred tax balances are recorded as a component of tax expense for the period in which the law was enacted, even if the assets and liabilities related to items of accumulated other comprehensive income ("OCI"). ASU 2018-02 allows entities to elect to reclassify from accumulated OCI to retained earnings stranded tax effects that relate to the Tax Cuts and Jobs Act, which was enacted in December 2017 (the "2017 Tax Act") from the change in federal tax rate for all items accounted for in OCI. Entities can also elect to reclassify other stranded tax effects that relate to the 2017 Tax Act, but do not directly relate to the change in the federal tax rate. Tax effects that are stranded in OCI for other reasons may not be reclassified. In the period of adoption, entities that elect to reclassify the income tax effects of the 2017 Tax Act from accumulated OCI to retained earnings must disclose that they made such an election. Entities must also disclose a description of other income tax effects related to the 2017 Tax Act that are reclassified from accumulated OCI to retained earnings, if any. The guidance is effective for fiscal periods beginning after December 15, 2018, and interim periods within those fiscal years. This guidance has been adopted as of January 1, 2019 and did not have a material impact to KKR. KKR did not elect to reclassify stranded tax effects that relate to the 2017 Tax Act from accumulated OCI to retained earnings for all items accounted for in OCI. KKR's policy for releasing income tax effects from accumulated OCI is when all related units of account are liquidated, sold or extinguished.

Effective on January 1, 2020

Goodwill

In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This guidance simplifies the accounting for goodwill impairments by eliminating the second step from the goodwill impairment test. The ASU requires goodwill impairments to be measured on the basis of the fair value of a reporting unit relative to the reporting unit's carrying amount rather than on the basis of the implied amount of goodwill relative to the goodwill balance of the reporting unit. The ASU also (i) clarifies the requirements for excluding and allocating foreign currency translation adjustments to reporting units related to an entity's testing of reporting units for goodwill impairment and (ii) clarifies that an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The guidance is effective for fiscal periods beginning after December 15, 2019. Early adoption is allowed for entities as of January 1, 2017, for annual and any interim impairment tests occurring after January 1, 2017. KKR is currently evaluating the impact of this guidance on the financial statements.

Implementation Costs Incurred in a Cloud Computing Arrangement

In August 2018, the FASB issued ASU No. 2018-15, which addresses a customer’s accounting for implementation costs incurred in a cloud computing arrangement ("CCA") that is a service contract. The ASU aligns the accounting for costs incurred to implement a CCA that is a service arrangement with the guidance on capitalizing costs associated with developing or obtaining internal-use software. The guidance is effective for fiscal periods beginning after December 15, 2019. Early adoption is permitted and this ASU can be applied on either a retrospective or prospective basis. KKR is currently evaluating the impact of this guidance on the financial statements.

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NET GAINS (LOSSES) FROM INVESTMENT ACTIVITIES

3 Months Ended

Mar. 31, 2019

Investments, Debt and Equity Securities [Abstract]

NET GAINS (LOSSES) FROM INVESTMENT ACTIVITIES

NET GAINS (LOSSES) FROM INVESTMENT ACTIVITIES

Net Gains (Losses) from Investment Activities in the consolidated statements of operations consist primarily of the realized and unrealized gains and losses on investments (including foreign exchange gains and losses attributable to foreign denominated investments and related activities) and other financial instruments, including those for which the fair value option has been elected. Unrealized gains or losses result from changes in the fair value of these investments and other financial instruments during a period. Upon disposition of an investment or financial instrument, previously recognized unrealized gains or losses are reversed and an offsetting realized gain or loss is recognized in the current period.

The following table summarizes total Net Gains (Losses) from Investment Activities:

	Three Months Ended March 31, 2019									Three Months Ended March 31, 2018
	Net Realized Gains (Losses)			Net Unrealized Gains (Losses)			Total			Net Realized Gains (Losses)			Net Unrealized Gains (Losses)			Total
Private Equity (1)	$	68,568		$	919,625		$	988,193		$	16,253		$	158,369		$	174,622
Credit (1)	(17,876		)	8,669			(9,207		)	1,263			58,150			59,413
Investments of Consolidated CFEs (1)	(10,530		)	233,357			222,827			(26,516		)	(48,403		)	(74,919		)
Real Assets (1)	29,547			89,581			119,128			12,957			59,297			72,254
Equity Method - Other (1)	20,133			156,906			177,039			9,210			135,604			144,814
Other Investments (1)	1,450			(30,361		)	(28,911		)	(244,199		)	86,365			(157,834		)
Foreign Exchange Forward Contracts      and Options (2)	25,454			54,789			80,243			(32,614		)	(63,118		)	(95,732		)
Securities Sold Short (2)	14,426			(80,772		)	(66,346		)	275,949			(29,874		)	246,075
Other Derivatives (2)	1,465			(13,405		)	(11,940		)	3,642			(8,223		)	(4,581		)
Debt Obligations and Other (3)	(2,856		)	(264,292		)	(267,148		)	14,435			94,253			108,688
Net Gains (Losses) From Investment      Activities	$	129,781		$	1,074,097		$	1,203,878		$	30,380		$	442,420		$	472,800

(1) See Note 4 "Investments."

(2) See Note 8 "Other Assets and Accounts Payable, Accrued Expenses and Other Liabilities."

(3) See Note 10 "Debt Obligations."

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INVESTMENTS

3 Months Ended

Mar. 31, 2019

Investments [Abstract]

INVESTMENTS

INVESTMENTS

Investments consist of the following:

	March 31, 2019		December 31, 2018
Private Equity	$	8,522,282	$	7,349,559
Credit	7,649,787		9,099,135
Investments of Consolidated CFEs	15,021,345		14,733,423
Real Assets	3,213,813		3,157,954
Equity Method - Other	4,472,692		4,212,874
Equity Method - Capital Allocation-Based Income	4,203,980		3,584,415
Other Investments	2,711,355		2,770,622
Total Investments	$	45,795,254	$	44,907,982

As of March 31, 2019 and December 31, 2018, there were no investments which represented greater than 5% of total investments. The majority of the securities underlying private equity investments represent equity securities.

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FAIR VALUE MEASUREMENTS

3 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

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:

	March 31, 2019
	Level I		Level II		Level III			Total
Private Equity	$	1,603,803	$	86,933	$	6,831,546		$	8,522,282
Credit	—		1,119,308		6,530,479			7,649,787
Investments of Consolidated CFEs	—		12,937,610		2,083,735			15,021,345
Real Assets	—		—		3,213,813			3,213,813
Equity Method - Other	219,566		47,938		1,650,179			1,917,683
Other Investments	501,523		145,882		2,063,950			2,711,355
Total Investments	2,324,892		14,337,671		22,373,702			39,036,265
Foreign Exchange Contracts and Options	—		205,900		—			205,900
Other Derivatives	—		1,786		31,134		(1)	32,920
Total Assets	$	2,324,892	$	14,545,357	$	22,404,836		$	39,275,085

	December 31, 2018
	Level I		Level II		Level III			Total
Private Equity	$	1,156,977	$	63,999	$	6,128,583		$	7,349,559
Credit	—		2,334,405		6,764,730			9,099,135
Investments of Consolidated CFEs	—		12,650,878		2,082,545			14,733,423
Real Assets	—		—		3,157,954			3,157,954
Equity Method - Other	245,225		43,943		1,503,022			1,792,190
Other Investments	480,192		173,844		2,116,586			2,770,622
Total Investments	1,882,394		15,267,069		21,753,420			38,902,883
Foreign Exchange Contracts and Options	—		177,264		—			177,264
Other Derivatives	—		3,879		37,116		(1)	40,995
Total Assets	$	1,882,394	$	15,448,212	$	21,790,536		$	39,121,142

(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:

	March 31, 2019
	Level I		Level II		Level III			Total
Securities Sold Short	$	582,608	$	—	$	—		$	582,608
Foreign Exchange Contracts and Options	—		17,200		—			17,200
Unfunded Revolver Commitments	—		—		56,792		(1)	56,792
Other Derivatives	—		23,769		17,200		(2)	40,969
Debt Obligations of Consolidated CFEs	—		12,557,821		1,914,571			14,472,392
Total Liabilities	$	582,608	$	12,598,790	$	1,988,563		$	15,169,961

	December 31, 2018
	Level I		Level II		Level III			Total
Securities Sold Short	$	344,124	$	—	$	—		$	344,124
Foreign Exchange Contracts and Options	—		60,749		—			60,749
Unfunded Revolver Commitments	—		—		52,066		(1)	52,066
Other Derivatives	—		18,440		17,200		(2)	35,640
Debt Obligations of Consolidated CFEs	—		12,081,771		1,876,783			13,958,554
Total Liabilities	$	344,124	$	12,160,960	$	1,946,049		$	14,451,133

(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.

(2) Includes options issued in connection with the acquisition of the equity interest in Marshall Wace and its affiliates in November 2015 to increase KKR's ownership interest in periodic increments. The options are valued using a Monte-Carlo simulation valuation methodology. Key inputs used in this methodology that require estimates include Marshall Wace's dividend yield, assets under management volatility and equity volatility. See Note 4 "Investments."

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 three months ended March 31, 2019 and 2018, respectively: 

	For the Three Months Ended March 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	—			(1,598		)	—			—			—			(42,864		)	(44,462		)	—
Transfers In	—			—			—			—			—			—			—			—
Transfers Out	(56,029		)	—			—			—			—			—			(56,029		)	—
Asset Purchases / Debt Issuances	409,621			811,957			—			67,302			137,909			95,135			1,521,924			—
Sales / Paydowns	(99,603		)	(1,028,063		)	(38,295		)	(130,571		)	(41,126		)	(27,433		)	(1,365,091		)	—
Settlements	—			20,815			—			—			—			—			20,815			(2,731		)
Net Realized Gains (Losses)	68,568			(15,198		)	—			29,547			11,626			2,121			96,664			—
Net Unrealized Gains (Losses)	380,406			(24,806		)	39,485			89,581			38,748			(79,595		)	443,819			40,519
Change in Other Comprehensive Income	—			2,642			—			—			—			—			2,642			—
Balance, End of Period	$	6,831,546		$	6,530,479		$	2,083,735		$	3,213,813		$	1,650,179		$	2,063,950		$	22,373,702		$	1,914,571
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	$	442,672		$	(31,282	)	$	39,485		$	92,900		$	49,140		$	(79,347	)	$	513,568		$	40,519

	For the Three Months Ended March 31, 2018
	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	$	2,172,290		$	5,138,937		$	5,353,090		$	2,251,267		$	1,076,709		$	1,760,011		$	17,752,304		$	5,238,236
Transfers In / (Out) Due to Changes in Consolidation	—			—			—			—			—			—			—			—
Transfers In	—			—			—			—			—			—			—			—
Transfers Out	—			—			—			—			—			—			—			—
Asset Purchases / Debt Issuances	727,626			890,113			—			540,898			2,037			64,757			2,225,431			—
Sales / Paydowns	(35,245		)	(230,144		)	(11,541		)	(34,237		)	(31,939		)	(36,218		)	(379,324		)	—
Settlements	—			(53,825		)	—			—			—			—			(53,825		)	(11,541		)
Net Realized Gains (Losses)	15,312			11,581			—			8,354			9,348			8,892			53,487			—
Net Unrealized Gains (Losses)	208,428			77,715			(83,150		)	61,151			29,570			3,762			297,476			(88,528		)
Change in Other Comprehensive Income	—			(15,522		)	—			—			—			—			(15,522		)	—
Balance, End of Period	$	3,088,411		$	5,818,855		$	5,258,399		$	2,827,433		$	1,085,725		$	1,801,204		$	19,880,027		$	5,138,167
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	$	208,428		$	86,754		$	(83,150	)	$	61,151		$	34,928		$	10,442		$	318,553		$	(88,528	)

Total realized and unrealized gains and losses recorded for Level III assets and liabilities are reported in Net Gains (Losses) from Investment Activities in the accompanying consolidated statements of operations.

The following table presents additional information about valuation methodologies and significant unobservable inputs used for investments and debt obligations that are measured and reported at fair value and categorized within Level III as of March 31, 2019:

	Fair Value March 31, 2019			Valuation Methodologies	Unobservable Input(s) (1)	Weighted Average (2)	Range	Impact to  Valuation from an Increase in Input (3)
Private Equity	$	6,831,546
Private Equity	$	4,322,213		Inputs to market comparables and discounted cash flow and transaction price	Illiquidity Discount	6.1%	5.0% - 15.0%	Decrease
					Weight Ascribed to Market Comparables	30.5%	0.0% - 50.0%	(4)
					Weight Ascribed to Discounted Cash Flow	69.4%	0.0% - 100.0%	(5)
					Weight Ascribed to Transaction Price	0.1%	0.0% - 100.0%	(6)
				Market comparables	Enterprise Value/LTM EBITDA Multiple	14.2x	6.9x - 23.7x	Increase
					Enterprise Value/Forward EBITDA Multiple	12.4x	6.2x - 17.2x	Increase
				Discounted cash flow	Weighted Average Cost of Capital	10.7%	5.6% - 14.6%	Decrease
					Enterprise Value/LTM EBITDA Exit Multiple	12.4x	6.0x - 15.0x	Increase
Growth Equity	$	2,509,333		Inputs to market comparables, discounted cash flow and milestones	Illiquidity Discount	11.6%	5.0% - 20.0%	Decrease
					Weight Ascribed to Market Comparables	35.2%	0.0% - 100.0%	(4)
					Weight Ascribed to Discounted Cash Flow	15.3%	0.0% - 75.0%	(5)
					Weight Ascribed to Milestones	49.5%	0.0% - 100.0%	(6)
				Scenario Weighting	Base	61.4%	40.0% - 80.0%	Increase
					Downside	16.0%	5.0% - 30.0%	Decrease
					Upside	22.6%	10.0% - 45.0%	Increase
Credit	$	6,530,479		Yield Analysis	Yield	7.6%	3.5% - 23.4%	Decrease
					Net Leverage	2.1x	0.2x - 14.1x	Decrease
					EBITDA Multiple	9.7x	0.2x - 38.2x	Increase
Investments of Consolidated CFEs	$	2,083,735	(9)
Debt Obligations of Consolidated CFEs	$	1,914,571		Discounted cash flow	Yield	5.8%	2.6% - 15.5%	Decrease
Real Assets	$	3,213,813	(10)
Energy	$	1,711,998		Discounted cash flow	Weighted Average Cost of Capital	10.6%	9.5% - 14.1%	Decrease
					Average Price Per BOE (8)	$44.62	$38.98 - $47.75	Increase
Real Estate	$	1,294,181		Inputs to direct income capitalization and discounted cash flow	Weight Ascribed to Direct Income Capitalization	32.2%	0.0% - 100.0%	(7)
					Weight Ascribed to Discounted Cash Flow	67.8%	0.0% - 100.0%	(5)
				Direct income capitalization	Current Capitalization Rate	5.9%	0.4% - 9.5%	Decrease
				Discounted cash flow	Unlevered Discount Rate	8.0%	4.8% - 18.0%	Decrease
Equity Method - Other	$	1,650,179		Inputs to market comparables, discounted cash flow and transaction price	Illiquidity Discount	9.5%	5.0% - 15.0%	Decrease
					Weight Ascribed to Market Comparables	42.6%	0.0% - 75.0%	(4)
					Weight Ascribed to Discounted Cash Flow	39.4%	0.0% - 100.0%	(5)
					Weight Ascribed to Transaction Price	18.0%	0.0% - 100.0%	(6)
				Market comparables	Enterprise Value/LTM EBITDA Multiple	12.0x	6.9x - 15.2x	Increase
					Enterprise Value/Forward EBITDA Multiple	11.2x	6.2x - 13.2x	Increase
				Discounted cash flow	Weighted Average Cost of Capital	9.0%	5.6% - 13.0%	Decrease
					Enterprise Value/LTM EBITDA Exit Multiple	10.4x	6.0x - 12.5x	Increase

	Fair Value March 31, 2019			Valuation Methodologies	Unobservable Input(s) (1)	Weighted Average (2)	Range	Impact to  Valuation from an Increase in Input (3)
Other Investments	$	2,063,950	(11)	Inputs to market comparables, discounted cash flow and transaction price	Illiquidity Discount	10.2%	5.0% - 20.0%	Decrease
					Weight Ascribed to Market Comparables	38.1%	0.0% - 100.0%	(4)
					Weight Ascribed to Discounted Cash Flow	36.1%	0.0% - 100.0%	(5)
					Weight Ascribed to Transaction Price	25.8%	0.0% - 100.0%	(6)
				Market comparables	Enterprise Value/LTM EBITDA Multiple	10.3x	1.3x - 14.6x	Increase
					Enterprise Value/Forward EBITDA Multiple	9.1x	1.2x - 11.7x	Increase
				Discounted cash flow	Weighted Average Cost of Capital	17.2%	7.3% - 31.1%	Decrease
					Enterprise Value/LTM EBITDA Exit Multiple	8.9x	6.5x - 9.1x	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 88% liquids and 12% natural gas.

(9) KKR measures CMBS investments on the basis of the fair value of the financial liabilities of the CMBS vehicle. See Note 2 "Summary of Significant Accounting Policies."

(10) Includes one Infrastructure investment for $207.6 million that was valued using a discounted cash flow analysis. The significant inputs used included the weighted average cost of capital 6.8% and the enterprise value/LTM EBITDA Exit Multiple 10.0x.

(11) 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.

In the table above, certain private equity investments may be valued at cost for a period of time after an acquisition as the best indicator of fair value. In addition, certain valuations of private equity investments may be entirely or partially derived by reference to observable valuation measures for a pending or consummated transaction.

The various unobservable inputs used to determine the Level III valuations may have similar or diverging impacts on valuation. Significant increases and decreases in these inputs in isolation and interrelationships between those inputs could result in significantly higher or lower fair value measurements as noted in the table above.

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FAIR VALUE OPTION

3 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

FAIR VALUE OPTION

FAIR VALUE OPTION

The following table summarizes the financial instruments for which the fair value option has been elected:

	March 31, 2019		December 31, 2018
Assets
Private Equity	$	3,235	$	2,977
Credit	4,519,000		4,950,819
Investments of Consolidated CFEs	15,021,345		14,733,423
Real Assets	309,105		310,399
Equity Method - Other	1,917,683		1,792,190
Other Investments	225,867		235,012
Total	$	21,996,235	$	22,024,820
Liabilities
Debt Obligations of Consolidated CFEs	$	14,472,392	$	13,958,554
Total	$	14,472,392	$	13,958,554

The following table presents the net realized and net unrealized gains (losses) on financial instruments for which the fair value option was elected:

	Three Months Ended March 31, 2019									Three Months Ended March 31, 2018
	Net Realized Gains (Losses)			Net Unrealized Gains (Losses)			Total			Net Realized Gains (Losses)			Net Unrealized Gains (Losses)			Total
Assets
Private Equity	$	—		$	194		$	194		$	71		$	316		$	387
Credit	(23,153		)	20,942			(2,211		)	(28,867		)	2,656			(26,211		)
Investments of Consolidated CFEs	(10,530		)	233,357			222,827			(26,516		)	(48,403		)	(74,919		)
Real Assets	703			2,436			3,139			428			(3,483		)	(3,055		)
Equity Method - Other	11,626			17,084			28,710			9,348			66,093			75,441
Other Investments	1,794			3,987			5,781			4,607			(7,878		)	(3,271		)
Total	$	(19,560	)	$	278,000		$	258,440		$	(40,929	)	$	9,301		$	(31,628	)
Liabilities
Debt Obligations of Consolidated CFEs	—			(252,281		)	(252,281		)	13,256			93,654			106,910
Total	$	—		$	(252,281	)	$	(252,281	)	$	13,256		$	93,654		$	106,910

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NET INCOME (LOSS) ATTRIBUTABLE TO KKR & CO. INC. PER SHARE OF CLASS A COMMON STOCK

3 Months Ended

Mar. 31, 2019

Earnings Per Share [Abstract]

NET INCOME (LOSS) ATTRIBUTABLE TO KKR & CO. INC. PER SHARE OF CLASS A COMMON STOCK

NET INCOME (LOSS) ATTRIBUTABLE TO KKR & CO. INC. PER SHARE OF CLASS A COMMON STOCK

For the three months ended March 31, 2019 and 2018, basic and diluted Net Income (Loss) attributable to KKR & Co. Inc. per share of Class A common stock were calculated as follows:

	Three Months Ended March 31,
	2019		2018
Net Income (Loss) Attributable to KKR & Co. Inc. Class A Common Stockholders	$	700,978	$	170,102
Excess of carrying value over consideration transferred on redemption of KFN 7.375% Series A LLC Preferred Shares	—		3,102
Net Income (Loss) Available to KKR & Co. Inc. Class A Common Stockholders	$	700,978	$	173,204

Basic Net Income (Loss) Per Share of Class A Common Stock
Weighted Average Shares of Class A Common Stock Outstanding - Basic	533,892,474		487,704,838
Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Class A Common Stock - Basic	$	1.31	$	0.36

Diluted Net Income (Loss) Per Share of Class A Common Stock
Weighted Average Shares of Class A Common Stock Outstanding - Basic	533,892,474		487,704,838
Weighted Average Unvested Shares of Class A Common Stock and Other Exchangeable Securities	16,153,966		48,213,436
Weighted Average Shares of Class A Common Stock Outstanding - Diluted	550,046,440		535,918,274
Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Class A Common Stock - Diluted	$	1.27	$	0.32

Weighted Average Shares of Class A Common Stock Outstanding - Diluted primarily includes unvested equity awards that have been granted under the Amended and Restated KKR & Co. Inc. 2010 Equity Incentive Plan (the "2010 Equity Incentive Plan" and, together with the KKR & Co. Inc. 2019 Equity Incentive Plan (the "2019 Equity Incentive Plan"), the "Equity Incentive Plans"), as well as exchangeable equity securities issued in connection with the acquisition of Avoca. Vesting or exchanges of these equity interests dilute KKR & Co. Inc. and KKR Holdings pro rata in accordance with their respective ownership interests in the KKR Group Partnerships.

For the three months ended March 31, 2019 and 2018, KKR Holdings units have been excluded from the calculation of Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Class A Common Stock - Diluted since the exchange of these units would not dilute KKR's respective ownership interests in the KKR Group Partnerships.

	Three Months Ended March 31,
	2019	2018
Weighted Average KKR Holdings Units	298,858,418	335,016,218

Additionally, for the three months endedMarch 31, 2019, 5.0 million shares of KKR Class A common stock subject to a market price-based vesting condition were excluded from the calculation of Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Class A Common Stock - Diluted since the vesting conditions have not been satisfied. See Note 12 "Equity Based Compensation."

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OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES

3 Months Ended

Mar. 31, 2019

OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES

OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES

OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES

Other Assets consist of the following:

	March 31, 2019		December 31, 2018
Unsettled Investment Sales (1)	$	129,141	$	101,789
Receivables	64,802		27,258
Due from Broker (2)	485,127		396,512
Oil & Gas Assets, net (3)	210,865		225,256
Deferred Tax Assets, net	408,148		538,161
Interest Receivable	231,445		241,547
Fixed Assets, net (4)	466,264		451,206
Foreign Exchange Contracts and Options (5)	205,900		177,264
Intangible Assets, net (6)	9,125		9,863
Goodwill (7)	83,500		83,500
Derivative Assets	32,920		40,995
Deposits	7,284		7,299
Prepaid Taxes	73,054		69,165
Prepaid Expenses	27,106		23,551
Operating Lease Right of Use Assets (8)	146,165		—
Deferred Financing Costs	13,458		13,871
Other	93,498		129,455
Total	$	2,687,802	$	2,536,692

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

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

(3) Includes proved and unproved oil and natural gas properties under the successful efforts method of accounting, which is net of impairment write-downs, accumulated depreciation, depletion and amortization. Depreciation, depletion and amortization amounted to $13.8 million and $7.1 million for the three months ended March 31, 2019 and 2018, respectively.

(4) Net of accumulated depreciation and amortization of $118.0 million and $113.5 million as of March 31, 2019 and December 31, 2018, respectively. Depreciation and amortization expense of $4.4 million and $3.7 million for the three months ended March 31, 2019 and 2018, respectively, is included in General, Administrative and Other in the accompanying consolidated statements of operations.

(5) Represents derivative financial instruments used to manage foreign exchange risk arising from certain foreign currency 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 consolidated statements of operations. See Note 3 "Net Gains (Losses) from Investment Activities" for the net changes in fair value associated with these instruments.

(6) Net of accumulated amortization of $63.5 million as of March 31, 2019 and December 31, 2018. Amortization expense of $0.5 million and $5.0 million for the three months ended March 31, 2019 and 2018, respectively, is included in General, Administrative and Other in the accompanying consolidated statements of operations.

(7) As of March 31, 2019, the carrying value of goodwill is recorded and assessed for impairment at the reporting unit.

(8) KKR’s non-cancelable operating leases consist of leases for office space around the world. KKR is the lessee under the terms of the operating leases. For the three months ended March 31, 2019, the operating lease cost was $11.8 million.

Accounts Payable, Accrued Expenses and Other Liabilities consist of the following:

	March 31, 2019		December 31, 2018
Amounts Payable to Carry Pool (1)	$	1,089,045	$	922,977
Unsettled Investment Purchases (2)	507,731		541,165
Securities Sold Short (3)	582,608		344,124
Derivative Liabilities	40,969		35,640
Accrued Compensation and Benefits	166,294		107,887
Interest Payable	216,348		212,969
Foreign Exchange Contracts and Options (4)	17,200		60,749
Accounts Payable and Accrued Expenses	108,170		130,554
Taxes Payable	55,355		24,453
Uncertain Tax Positions	67,374		66,775
Unfunded Revolver Commitments	56,792		52,066
Operating Lease Liabilities (5)	152,073		—
Other Liabilities	219,069		244,631
Total	$	3,279,028	$	2,743,990

(1) Represents the amount of carried interest payable to principals, professionals and other individuals with respect to KKR's active funds and co-investment vehicles that provide for carried interest.

(2) Represents amounts owed to third parties for investment purchases for which cash settlement has not occurred.

(3) 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 consolidated statements of operations. See Note 3 "Net Gains (Losses) from Investment Activities" for the net changes in fair value associated with these instruments.

(4) Represents derivative financial instruments used to manage foreign exchange risk arising from certain foreign currency 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 consolidated statements of operations. See Note 3 "Net Gains (Losses) from Investment Activities" for the net changes in fair value associated with these instruments.

(5) KKR’s operating leases have remaining lease terms that range from one year to 14 years, some of which include options to extend the leases for up to three years. For the three months ended March 31, 2019, the weighted average remaining lease term and weighted average discount rate were 4.78 years and 2.64%, respectively.

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VARIABLE INTEREST ENTITIES

3 Months Ended

Mar. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES

Consolidated VIEs

KKR consolidates certain VIEs in which it is determined that KKR is the primary beneficiary as described in Note 2 "Summary of Significant Accounting Policies" and which are predominately CFEs and certain investment funds. The primary purpose of these VIEs is to provide strategy specific investment opportunities to earn investment gains, current income or both in exchange for management and performance based fees or carried interest. KKR's investment strategies for these VIEs differ by product; however, the fundamental risks have similar characteristics, including loss of invested capital and loss of management and performance based fees or carried interest. KKR does not provide performance guarantees and has no other financial obligation to provide funding to these consolidated VIEs, beyond amounts previously committed, if any.

Unconsolidated VIEs

KKR holds variable interests in certain VIEs which are not consolidated as it has been determined that KKR is not the primary beneficiary. VIEs that are not consolidated predominantly include certain investment funds sponsored by KKR.

KKR's investment strategies differ by investment fund; however, the fundamental risks have similar characteristics, including loss of invested capital and loss of management and performance based fees or carried interest. KKR's maximum exposure to loss as a result of its investments in the unconsolidated investment funds is the carrying value of such investments, including KKR's capital interest and any unrealized carried interest. Accordingly, disaggregation of KKR's involvement by type of unconsolidated investment fund would not provide more useful information. For these unconsolidated investment funds in which KKR is the sponsor, KKR may have an obligation as general partner to provide commitments to such investment funds. As of March 31, 2019, KKR's commitments to these unconsolidated investment funds was $2.3 billion. KKR has not provided any financial support other than its obligated amount as of March 31, 2019.

As of March 31, 2019 and December 31, 2018, the maximum exposure to loss, before allocations to the carry pool and noncontrolling interests, if any, for those VIEs in which KKR is determined not to be the primary beneficiary but in which it has a variable interest is as follows:

	March 31, 2019		December 31, 2018
Investments	$	4,203,980	$	3,610,502
Due from (to) Affiliates, net	490,990		410,489
Maximum Exposure to Loss	$	4,694,970	$	4,020,991

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DEBT OBLIGATIONS

3 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

DEBT OBLIGATIONS

DEBT OBLIGATIONS

KKR enters into credit agreements and issues debt for its general operating and investment purposes. KKR consolidates and reports debt obligations of KKR Financial Holdings LLC ("KFN"), which are non-recourse to KKR beyond the assets of KFN.

Certain of KKR's consolidated investment funds borrow to meet financing needs of their operating and investing activities. Fund financing facilities have been established for the benefit of certain investment funds. When an investment fund borrows from the facility in which it participates, the proceeds from the borrowings are limited for their intended use by the borrowing investment fund. KKR's obligations with respect to these financing arrangements are generally limited to KKR's pro rata equity interest in such investment funds.

In certain other cases, KKR has majority-owned investment vehicles that make investments and purchase other assets with borrowings that are collateralized only by the investments and assets they own.

In addition, consolidated CFE vehicles issue debt securities to third-party investors which are collateralized by assets held by the CFE vehicle. Debt securities issued by CFEs are supported solely by the assets held at the CFEs and are not collateralized by assets of any other KKR entity. CFEs also may have warehouse facilities with banks to provide liquidity to the CFE. The CFE's debt obligations are non-recourse to KKR beyond the assets of the CFE.

KKR's borrowings consisted of the following:

	March 31, 2019							December 31, 2018
	Financing Available		Borrowing Outstanding		Fair Value			Financing Available		Borrowing Outstanding		Fair Value
Revolving Credit Facilities:
Corporate Credit Agreement	$	1,000,000	$	—	$	—		$	1,000,000	$	—	$	—
KCM Credit Agreement	434,395		—		—			451,338		—		—
KCM Short-Term Credit Agreement	750,000		—		—			750,000		—		—
Notes Issued:
KKR Issued 6.375% Notes Due 2020 (1)	—		499,122		523,900		(14)	—		498,975		523,500		(14)
KKR Issued 5.500% Notes Due 2043 (2)	—		491,921		537,235		(14)	—		491,836		508,615		(14)
KKR Issued 5.125% Notes Due 2044 (3)	—		990,831		1,030,140		(14)	—		990,740		974,320		(14)
KKR Issued 0.509% Notes Due 2023 (4)	—		224,386		223,695		(14)	—		226,895		227,298		(14)
KKR Issued 0.764% Notes Due 2025 (5)	—		44,435		45,402		(14)	—		44,923		45,161		(14)
KKR Issued 1.595% Notes Due 2038 (6)	—		91,767		96,510		(14)	—		92,817		94,568		(14)
KFN Issued 5.500% Notes Due 2032 (7)	—		493,689		502,524			—		493,568		496,359
KFN Issued 5.200% Notes Due 2033 (8)	—		118,321		117,152			—		118,291		115,582
KFN Issued 5.400% Notes Due 2033 (9)	—		68,705		69,689			—		68,683		68,780
KFN Issued Junior Subordinated Notes (10)	—		232,471		197,478			—		232,142		203,135
Other Debt Obligations:
Financing Facilities of Consolidated Funds and Other (11)	4,216,970		4,534,329		4,534,329			3,840,877		5,123,768		5,123,768
CLO Senior Secured Notes (12)	—		12,155,621		12,155,621			—		11,667,970		11,667,970
CLO Subordinated Notes (12)	—		402,200		402,200			—		413,801		413,801
CMBS Debt Obligations (13)	—		1,914,571		1,914,571			—		1,876,783		1,876,783
	$	6,401,365	$	22,262,369	$	22,350,446		$	6,042,215	$	22,341,192	$	22,339,640

(1) $500 million aggregate principal amount of 6.375% senior notes of KKR due 2020. Borrowing outstanding is presented net of (i) unamortized note discount and (ii) unamortized debt issuance costs of $0.6 millionand $0.7 million as of March 31, 2019 and December 31, 2018, respectively.

(2) $500 million aggregate principal amount of 5.500% senior notes of KKR due 2043. Borrowing outstanding is presented net of (i) unamortized note discount and (ii) unamortized debt issuance costs of $3.5 millionand $3.6 million as of March 31, 2019 and December 31, 2018, respectively.

(3) $1.0 billion aggregate principal amount of 5.125% senior notes of KKR due 2044. Borrowing outstanding is presented net of (i) unamortized note discount (net of premium) and (ii) unamortized debt issuance costs of $7.9 million and $8.0 million as of March 31, 2019 and December 31, 2018, respectively.

(4) ¥25 billion (or $225.6 million) aggregate principal amount of 0.509% senior notes of KKR due 2023. Borrowing outstanding is presented net of unamortized debt issuance costs of $1.2 million and $1.3 million as of March 31, 2019 and December 31, 2018, respectively. These senior notes are denominated in Japanese Yen ("JPY").

(5) ¥5.0 billion (or $45.1 million) aggregate principal amount of 0.764% senior notes of KKR due 2025. Borrowing outstanding is presented net of unamortized debt issuance costs of $0.7 million and $0.7 million as of March 31, 2019 and December 31, 2018, respectively. These senior notes are denominated in JPY.

(6) ¥10.3 billion (or $92.9 million) aggregate principal amount of 1.595% senior notes of KKR due 2038. Borrowing outstanding is presented net of unamortized debt issuance costs of $1.2 million and $1.2 million as of March 31, 2019 and December 31, 2018, respectively. These senior notes are denominated in JPY.

(7) KKR consolidates KFN and thus reports KFN's outstanding $500.0 million aggregate principal amount of 5.500% senior notes due 2032. Borrowing outstanding is presented net of (i) unamortized note discount and (ii) unamortized debt issuance costs of $4.3 million and $4.4 million as of March 31, 2019 and December 31, 2018, respectively. These debt obligations are classified as Level III within the fair value hierarchy and valued using the same valuation methodologies as KKR's Level III credit investments.

(8) KKR consolidates KFN and thus reports KFN's outstanding $120.0 million aggregate principal amount of 5.200% senior notes due 2033. Borrowing outstanding is presented net of unamortized debt issuance costs of $1.7 million and $1.7 million as of March 31, 2019 and December 31, 2018, respectively. These debt obligations are classified as Level III within the fair value hierarchy and valued using the same valuation methodologies as KKR's Level III credit investments.

(9) KKR consolidates KFN and thus reports KFN's outstanding $70.0 million aggregate principal amount of 5.400% senior notes due 2033. Borrowing outstanding is presented net of unamortized debt issuance costs of $1.3 million and $1.3 million as of March 31, 2019 and December 31, 2018, respectively. These debt obligations are classified as Level III within the fair value hierarchy and valued using the same valuation methodologies as KKR's Level III credit investments.

(10) KKR consolidates KFN and thus reports KFN's outstanding $258.5 million aggregate principal amount of junior subordinated notes. The weighted average interest rate is 5.2% and 5.0% and the weighted average years to maturity is 17.5 years and 17.8 years as of March 31, 2019 and December 31, 2018, respectively. These debt obligations are classified as Level III within the fair value hierarchy and valued using the same valuation methodologies as KKR's Level III credit investments.

(11) Amounts include (i) borrowings at consolidated investment funds relating to financing arrangements with major financial institutions, generally to enable such investment funds to make investments prior to or without receiving capital from fund limited partners and (ii) borrowings by certain majority-owned investment vehicles that are collateralized only by the investments and assets they own. The weighted average interest rate is 4.9% and 4.6% as of March 31, 2019 and December 31, 2018, respectively. In addition, the weighted average years to maturity is 3.6 years and 3.3 years as of March 31, 2019 and December 31, 2018, respectively.

(12) CLO debt obligations are carried at fair value and are classified as Level II within the fair value hierarchy. See Note 5 "Fair Value Measurements."

(13) CMBS debt obligations are carried at fair value and are classified as Level III within the fair value hierarchy. See Note 5 "Fair Value Measurements."

(14) The notes are classified as Level II within the fair value hierarchy and fair value is determined by third party broker quotes.

Revolving Credit Facilities

KCM Credit Agreement

KKR Capital Markets maintains a revolving credit agreement with a major financial institution (the "KCM Credit Agreement") for use in KKR's capital markets business, which provides for revolving borrowings of up to $500 million with a $500 million sublimit for letters of credit. As of March 31, 2019 and December 31, 2018, no amounts were outstanding under the KCM Credit Agreement, however various letters of credit were outstanding in the amount of $65.6 million and $48.7 million, respectively, which reduce the overall borrowing capacity of the KCM Credit Agreement.

Other Debt Obligations

Debt Obligations of Consolidated CFEs

As of March 31, 2019, debt obligations of consolidated CFEs consisted of the following:     

	Borrowing Outstanding		Weighted Average Interest Rate		Weighted Average Remaining Maturity in Years
Senior Secured Notes of Consolidated CLOs	$	12,155,621	3.4	%	11.5
Subordinated Notes of Consolidated CLOs	402,200		(1)		11.7
Debt Obligations of Consolidated CMBS Vehicles	1,914,571		4.0	%	24.5
	$	14,472,392

(1) The subordinated notes do not have contractual interest rates but instead receive a pro rata amount of the net distributions from the excess cash flows of the respective CLO vehicle. Accordingly, weighted average borrowing rates for the subordinated notes are based on cash distributions during the period, if any.

Debt obligations of consolidated CFEs are collateralized by assets held by each respective CFE vehicle and assets of one CFE vehicle may not be used to satisfy the liabilities of another. As of March 31, 2019, the fair value of the consolidated CFE assets was $15.8 billion. This collateral consisted of Cash and Cash Equivalents Held at Consolidated Entities, Investments, and Other Assets.

Debt Covenants

Borrowings of KKR contain various debt covenants. These covenants do not, in management's opinion, materially restrict KKR's operating business or investment strategies as of March 31, 2019. KKR is in compliance with its debt covenants in all material respects as of March 31, 2019.

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INCOME TAXES

3 Months Ended

Mar. 31, 2019

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

KKR & Co. Inc. is a corporation for U.S. federal income tax purposes and thus is subject to U.S. federal, state and local corporate income taxes at the entity level on KKR’s share of net taxable income. In addition, the KKR Group Partnerships and certain of their subsidiaries operate in the United States as partnerships for U.S. federal income tax purposes and as corporate entities in certain non-U.S. jurisdictions. These entities, in some cases, are subject to U.S. state or local income taxes or non-U.S. income taxes.

The Conversion resulted in KKR obtaining a partial step-up in the tax basis of certain assets that will be recovered as those assets are sold or the basis is amortized. KKR's overall tax provision is based on, among other things, the amount of such partial step-up in tax basis that is derived from an analysis of the basis of its former unitholders in their ownership of KKR common units at June 30, 2018. On the date of the Conversion, based on the information available to KKR at that time, KKR recorded an estimated net tax benefit and estimated net deferred tax asset of $257.1 million relating to this partial step-up in tax basis. Upon analysis of the basis of KKR's former unitholders in their ownership of KKR common units at June 30, 2018, based on the additional information made available to KKR after December 31, 2018, the final determination of the amount of partial step-up in tax basisresulted in an additional tax benefit of approximately $45.0 million.

The effective tax rates were 9.34% and 2.84% for the three months ended March 31, 2019 and 2018, respectively. The effective tax rate differs from the statutory rate primarily due to the following: (i) a substantial portion of the reported net income (loss) before taxes is not attributable to KKR but rather is attributable to noncontrolling interests held in KKR’s consolidated entities by KKR Holdings or by third parties, and (ii) the tax benefit recognized as a result of the final determination of the amount of the partial step-up in tax basis as a result of the Conversion. For periods prior to the Conversion, the effective rate also differs from the statutory rate as a result of investment income of certain entities and net carried interest of certain general partners of KKR investment funds that were not subject to U.S. federal income taxes prior to the Conversion.

During the three months ended March 31, 2019, there were no material changes to KKR’s uncertain tax positions and KKR believes there will be no significant increase or decrease to the uncertain tax positions within 12 months of the reporting date.

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EQUITY BASED COMPENSATION

3 Months Ended

Mar. 31, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

EQUITY BASED COMPENSATION

EQUITY BASED COMPENSATION

The following table summarizes the expense associated with equity-based compensation for the three months ended March 31, 2019 and 2018, respectively.

	Three Months Ended March 31,
	2019		2018
Equity Incentive Plans	$	54,885	$	67,796
KKR Holdings Principal Awards	23,666		27,282
Total (1)	$	78,551	$	95,078

(1) Includes $(0.3) million and $4.3 million of equity based compensation for the three months endedMarch 31, 2019 and 2018 related to employees of equity method investees. Such amounts are included in Net Gains (Losses) from Investment Activities in the consolidated statements of operations.

Equity Incentive Plans

On March 29, 2019, the 2019 Equity Incentive Plan became effective. Following the effectiveness of the 2019 Equity Incentive Plan, KKR will not make any further grants under the 2010 Equity Incentive Plan, and the 2019 New Equity Incentive Plan became KKR's only plan for providing new equity-based awards. Outstanding awards under the 2010 Equity Incentive Plan will remain outstanding, unchanged and subject to the terms of the 2010 Equity Incentive Plan and their respective equity award agreements, until the vesting, expiration or lapse of such awards in accordance with their terms. There are no significant differences in the expense recognition between the 2010 Equity Incentive Plan and the 2019 New Equity Incentive Plan.  

Under the 2019 Equity Incentive Plan, KKR is permitted to grant equity awards representing ownership interests in KKR & Co. Inc. Class A common stock. The total number of shares of Class A common stock that may be issued under the 2019 Equity Incentive Plan is equivalent to 15% of the aggregate number of the shares of Class A common stock and KKR Group Partnership Units (excluding KKR Group Partnership Units held by KKR & Co. Inc. or its wholly-owned subsidiaries), subject to annual adjustment. Vested awards under the Equity Incentive Plans dilute KKR & Co. Inc. common stockholders and KKR Holdings pro rata in accordance with their respective percentage interests in the KKR Group Partnerships.

Equity awards have been granted under the Equity Incentive Plans and are generally subject to service-based vesting, typically over a three to five year period from the date of grant. In certain cases, these awards are subject to transfer restrictions and/or minimum retained ownership requirements. The transfer restriction period, if applicable, lasts for (i) one year with respect to one-half of the interests vesting on any vesting date and (ii) two years with respect to the other one-half of the interests vesting on such vesting date. While providing services to KKR, if applicable, certain of these awards are also subject to minimum retained ownership rules requiring the award recipient to continuously hold shares of Class A common stock equivalents equal to at least 15% of their cumulatively vested awards that have the minimum retained ownership requirement.

Expense associated with the vesting of these awards is based on the closing price of the KKR & Co. Inc. Class A common stock on the date of grant, discounted for the lack of participation rights in the expected dividends on unvested shares. The discount range for awards granted prior to December 31, 2015 was based on management's estimates of future dividends that the unvested equity awards would not be entitled to receive between the grant date and the vesting date which ranged from 8% to 56%.

The following table presents information regarding the discount for the lack of participation rights in the expected dividends for shares granted subsequent to December 31, 2015:

Date of Grant	Discount per share (1)
January 1, 2016 to December 31, 2016	$	0.64
January 1, 2017 to December 31, 2017	$	0.68
January 1, 2018 to June 30, 2018	$	0.68
July 1, 2018 to Present	$	0.50

(1) Represents the annual discount for the lack of participation rights on expected dividends. The total discount on any given tranche of unvested shares is calculated as the discount per share multiplied by the number of years in the applicable vesting period.

Expense is recognized on a straight line basis over the life of the award and assumes a forfeiture rate of up to 7% annually based upon expected turnover by class of recipient.

Market Condition Awards

On November 2, 2017, KKR's Co-Presidents and Co-Chief Operating Officers were each granted equity awards representing 2.5 million shares of KKR Class A common stock subject to a market price-based vesting condition ("Market Condition Awards"). These awards were granted under the 2010 Equity Incentive Plan. All of such awards will vest upon the market price of KKR Class A common stock reaching and maintaining a closing market price of $40 per share for 10 consecutive trading days on or prior to December 31, 2022, subject to the employee's continued service to the time of such vesting. If the $40 price target is not achieved by the close of business on December 31, 2022, the unvested Market Condition Awards will be automatically canceled and forfeited. These Market Condition Awards are subject to additional transfer restrictions and minimum retained ownership requirements after vesting. Due to the existence of the market condition, the vesting period for the Market Condition Awards is not explicit, and as such, compensation expense will be recognized over the period derived from the valuation technique used to estimate the grant-date fair value of the award (the "Derived Vesting Period").

The fair value of the Market Condition Awards at the date of grant was $4.02 per share based on a Monte-Carlo simulation valuation model due to the existence of the market condition described above. Below is a summary of the significant assumptions used to estimate the grant date fair value of the Market Condition Awards:

Closing KKR share price as of valuation date	$19.90
Risk Free Rate	2.02	%
Volatility	25.00	%
Dividend Yield	3.42	%
Expected Cost of Equity	11.02	%

In addition, the grant date fair value assumes that holders of the Market Condition Awards will not participate in dividends until such awards have met their vesting requirements.

Compensation expense is recognized over the Derived Vesting Period, which was estimated to be 3 years from the date of grant, on a straight-line basis.

As of March 31, 2019, there was approximately $10.7 million of estimated unrecognized compensation expense related to unvested Market Condition Awards and such awards did not meet their market-price based vesting condition.

As of March 31, 2019, there was approximately $340.4 million of total estimated unrecognized expense related to unvested awards, including Market Condition Awards. That cost is expected to be recognized as follows:

Year	Unrecognized Expense  (in millions)
Remainder of 2019	$	132.8
2020	131.8
2021	58.5
2022	16.4
2023	0.9
Total	$	340.4

A summary of the status of unvested awards granted under the Equity Incentive Plans, excluding Market Condition Awards as described above, from January 1, 2019 through March 31, 2019 is presented below:

	Shares		Weighted Average Grant Date Fair Value
Balance, January 1, 2019	33,400,183		$	16.23
Granted	50,511		18.96
Vested	(15,440	)	15.83
Forfeitures	(604,519	)	17.43
Balance, March 31, 2019	32,830,735		$	16.21

The weighted average remaining vesting period over which unvested awards are expected to vest is 1.1 years.

A summary of the remaining vesting tranches of awards granted under the Equity Incentive Plans is presented below:

Vesting Date	Shares
April 1, 2019	8,917,856
October 1, 2019	4,733,416
April 1, 2020	7,135,649
October 1, 2020	3,607,073
April 1, 2021	4,093,420
October 1, 2021	2,134,028
April 1, 2022	916,731
October 1, 2022	1,201,390
October 1, 2023	91,172
	32,830,735

KKR Holdings Awards

KKR Holdings units are exchangeable for KKR Group Partnership Units and allow for their exchange into Class A common stock of KKR & Co. Inc. on a one-for-one basis. As of March 31, 2019 and 2018, KKR Holdings owned approximately 35.9% or 298,645,285 units and 40.5% or 333,648,078 units, respectively, of outstanding KKR Group Partnership Units. Awards for KKR Holdings units that have been granted are generally subject to service based vesting, typically over a three to five year period from the date of grant. They are also generally subject to transfer restrictions which last for (i) one year with respect to one-half of the interests vesting on any vesting date and (ii) two years with respect to the other one-half of the interests vesting on such vesting date. While providing services to KKR, the recipients are also subject to minimum retained ownership rules requiring them to continuously hold 25% of their vested interests. Upon separation from KKR, award recipients are subject to the terms of a confidentiality and restrictive covenants agreement that would require the forfeiture of certain vested and unvested units should the terms of the agreement be violated. Holders of KKR Holdings units are not entitled to participate in distributions made on KKR Group Partnership Units underlying their KKR Holdings units until such units are vested. All of the KKR Holdings units (except for less than 0.6% of the outstanding KKR Holdings units) have been granted as of March 31, 2019, and certain Holdings units remain subject to vesting.

The fair value of awards granted out of KKR Holdings is generally based on the closing price of KKR & Co. Inc. Class A common stock on the date of grant discounted for the lack of participation rights in the expected distributions on unvested units. KKR determined this to be the best evidence of fair value as KKR & Co. Inc. Class A common stock is traded in an active market and has an observable market price. Additionally, a KKR Holdings unit is an instrument with terms and conditions similar to those of KKR & Co. Inc. Class A common stock. Specifically, units in KKR Holdings and shares of KKR & Co. Inc. represent ownership interests in KKR Group Partnership Units and, subject to any vesting, minimum retained ownership requirements and transfer restrictions, each KKR Holdings unit is exchangeable into a KKR Group Partnership Unit and then into a share of KKR & Co. Inc. Class A common stock on a one-for-one basis.

In February 2016, approximately 28.9 million KKR Holdings units were granted that were originally subject to market condition and service-based vesting that were subsequently modified in November 2016 to eliminate the market condition vesting and instead require only service-based vesting in equal annual installments over a five year period. At the date of modification, total future compensation expense amounted to $320.9 million, net of estimated forfeitures, to be recognized over the remaining vesting period of the modified awards.

The awards described above were granted from outstanding but previously unallocated units of KKR Holdings, and consequently these grants did not increase the number of KKR Holdings units outstanding or outstanding KKR & Co. Inc. Class A common stock on a fully-diluted basis. If and when vested, these awards will not dilute KKR's respective ownership interests in the KKR Group Partnerships.

KKR Holdings Awards give rise to equity-based compensation in the consolidated statements of operations based on the grant-date fair value of the award discounted for the lack of participation rights in the expected distributions on unvested units. This discount is consistent with that noted above for shares issued under the Equity Incentive Plans.

Expense is recognized on a straight line basis over the life of the award and assumes a forfeiture rate of up to 7% annually based on expected turnover by class of recipient.

As of March 31, 2019, there was approximately $230.3 million of estimated unrecognized expense related to unvested KKR Holdings awards. That cost is expected to be recognized as follows:

Year	Unrecognized Expense  (in millions)
Remainder of 2019	$	70.7
2020	86.9
2021	47.2
2022	25.5
Total	$	230.3

A summary of the status of unvested awards granted under the KKR Holdings Plan from January 1, 2019 through March 31, 2019 is presented below:

	Units		Weighted Average Grant Date Fair Value
Balance, January 1, 2019	24,123,993		$	14.42
Granted	—		—
Vested	—		—
Forfeitures	(270,000	)	16.28
Balance, March 31, 2019	23,853,993		$	14.40

The weighted average remaining vesting period over which unvested awards are expected to vest is 1.7 years.

A summary of the remaining vesting tranches of awards granted under the KKR Holdings Plan is presented below:

Vesting Date	Units
April 1, 2019	229,514
May 1, 2019	3,590,000
October 1, 2019	2,455,000
April 1, 2020	124,479
May 1, 2020	3,590,000
October 1, 2020	2,940,000
May 1, 2021	3,590,000
October 1, 2021	3,425,000
October 1, 2022	3,910,000
	23,853,993

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RELATED PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2019

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

Due from Affiliates consists of:

	March 31, 2019		December 31, 2018
Amounts due from portfolio companies	$	93,855	$	82,204
Amounts due from unconsolidated investment funds	637,501		568,211
Amounts due from related entities	2,839		6,774
Due from Affiliates	$	734,195	$	657,189

Due to Affiliates consists of:

	March 31, 2019		December 31, 2018
Amounts due to KKR Holdings in connection with the tax receivable agreement	$	108,270	$	117,862
Amounts due to unconsolidated investment funds	146,511		157,722
Due to Affiliates	$	254,781	$	275,584

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SEGMENT REPORTING

3 Months Ended

Mar. 31, 2019

Segment Reporting [Abstract]

SEGMENT REPORTING

SEGMENT REPORTING

KKR operates through one operating and reportable segment. This single reportable segment reflects how the chief operating decision makers allocate resources and assess performance under KKR's "one-firm approach," which includes operating collaboratively across business lines, with predominantly a single expense pool.

KKR’s segment reporting is presented prior to giving effect to the allocation of income (loss) between KKR & Co. Inc. and KKR Holdings L.P. and as such represents the business in total. In addition, KKR’s segment reporting is presented without giving effect to the consolidation of the investment funds and CFEs that KKR manages as well as other consolidated entities that are not subsidiaries of KKR & Co. Inc. The segment measures used in KKR’s segment reporting, including segment revenues, segment expenses, after-tax distributable earnings, segment assets, segment liabilities, and segment book value are used by management in making operational and resource deployment decisions as well as assessing the overall performance of KKR’s business.

After-tax Distributable Earnings

After-tax distributable earnings is a performance measure of KKR’s earnings on a segment basis excluding mark-to-market gains (losses). Starting with the second quarter of 2018, it is defined as the amount of net realized earnings of KKR for a given reporting period, after deducting equity-based compensation. KKR revised the definition of after-tax distributable earnings starting in the second quarter of 2018, because it reflects how the chief operating decision makers allocate resources and assess the performance of KKR’s business. KKR believes that after-tax distributable earnings is useful to stockholders as it aligns KKR’s net realization performance with the manner in which KKR receives its revenues and determines the compensation of its employees. After-tax distributable earnings does not represent and is not used to calculate actual dividends under KKR’s dividend policy. Historically, equity-based compensation expense relating to the Equity Incentive Plans was not reflected in our calculation of after-tax distributable earnings. Under KKR’s segment presentation, equity-based compensation expense is included in after-tax distributable earnings as a component of compensation expense in order to reflect the dilutive nature of these non-cash equity-based awards. For comparability, after-tax distributable earnings for the comparable prior periods have been calculated using this definition.

The following table sets forth information regarding KKR's segment results:

	As of and for the Three Months Ended
	March 31, 2019			March 31, 2018
Segment Revenues
Fees and Other, Net
Management Fees	$	292,296		$	251,585
Transaction Fees	186,727			156,845
Monitoring Fees	25,651			17,530
Fee Credits	(107,416		)	(43,774		)
Total Fees and Other, Net	397,258			382,186
Realized Performance Income (Loss)
Carried Interest	330,345			202,555
Incentive Fees	19,537			16,407
Total Realized Performance Income (Loss)	349,882			218,962
Realized Investment Income (Loss)
Net Realized Gains (Losses)	44,712			7,875
Interest Income and Dividends	58,207			72,577
Total Realized Investment Income (Loss)	102,919			80,452
Total Segment Revenues	$	850,059		$	681,600
Segment Expenses
Compensation and Benefits (1)	340,286			300,480
Occupancy and Related Charges	13,957			13,583
Other Operating Expenses	74,910			57,905
Total Segment Expenses	$	429,153		$	371,968
Segment Operating Earnings	420,906			309,632
Interest Expense	44,130			50,192
Preferred Dividends	8,341			8,341
Income (Loss) Attributable to Noncontrolling Interests	359			1,203
Income Taxes Paid	53,993			14,168
After-tax Distributable Earnings	$	314,083		$	235,728
Segment Assets	$	18,770,564		$	16,243,603
Segment Liabilities	$	4,100,354		$	3,736,797
Segment Book Value	$	14,148,206		$	11,983,289

(1) Includes equity-based compensation of $54.9 million and $67.8 million for the three months endedMarch 31, 2019 and 2018, respectively.

KKR's business lines are differentiated primarily by their business objectives, investment strategies and sources of revenue, and are summarized below.

Through KKR's Private Markets business line, KKR manages and sponsors private equity funds and co-investment vehicles, which invest capital for long-term appreciation, either through controlling ownership of a company or strategic minority positions. In addition to its traditional private equity funds, KKR sponsors investment funds that invest in growth equity and core investments. KKR also manages and sponsors investment funds and co-investment vehicles that invest capital in real assets, such as infrastructure, energy, and real estate.

Through KKR's Public Markets business line, KKR operates its combined credit and hedge funds platforms. KKR's credit platform invests capital in leveraged credit strategies, including leveraged loans, high-yield bonds, opportunistic credit, and revolving credit strategies, and alternative credit strategies including special situations and private credit opportunities, such as direct lending and private opportunistic credit investment strategies. KKR's hedge funds platform consists of hedge fund partnerships with third-party hedge fund managers in which KKR owns a minority stake.

KKR's Capital Markets business line supports the firm, portfolio companies, and third-party clients by developing and implementing both traditional and non-traditional capital solutions for investments or companies seeking financing. These services include arranging debt and equity financing, placing and underwriting securities offerings and providing other types of capital markets services.

Through KKR's Principal Activities business line, KKR manages the firm's assets and deploys capital to support and grow its business lines including making capital commitments as general partner to its funds, to seed new business strategies or investments for new funds or to bridge capital selectively for its funds' investments. The Principal Activities business line also provides the required capital to fund the various commitments of KKR's Capital Markets business line or to meet regulatory capital requirements.

The following tables provide KKR's segment revenues on a disaggregated basis by business line:

	Three Months Ended March 31, 2019
	Private Markets			Public Markets			Capital Markets		Principal Activities		Total
Fees and Other, Net
Management Fees	$	183,221		$	109,075		$	—	$	—	$	292,296
Transaction Fees	99,017			27,456			60,254		—		186,727
Monitoring Fees	25,651			—			—		—		25,651
Fee Credits	(82,342		)	(25,074		)	—		—		(107,416		)
Total Fees and Other, Net	225,547			111,457			60,254		—		397,258
Realized Performance Income (Loss)
Carried Interest	330,345			—			—		—		330,345
Incentive Fees	675			18,862			—		—		19,537
Total Realized Performance Income (Loss)	331,020			18,862			—		—		349,882
Realized Investment Income (Loss)
Net Realized Gains (Losses)	—			—			—		44,712		44,712
Interest Income and Dividends	—			—			—		58,207		58,207
Total Realized Investment Income (Loss)	—			—			—		102,919		102,919
Total	$	556,567		$	130,319		$	60,254	$	102,919	$	850,059

	Three Months Ended March 31, 2018
	Private Markets			Public Markets			Capital Markets		Principal Activities		Total
Fees and Other, Net
Management Fees	$	158,190		$	93,395		$	—	$	—	$	251,585
Transaction Fees	46,689			2,558			107,598		—		156,845
Monitoring Fees	17,530			—			—		—		17,530
Fee Credits	(41,343		)	(2,431		)	—		—		(43,774		)
Total Fees and Other, Net	181,066			93,522			107,598		—		382,186
Realized Performance Income (Loss)
Carried Interest	202,555			—			—		—		202,555
Incentive Fees	—			16,407			—		—		16,407
Total Realized Performance Income (Loss)	202,555			16,407			—		—		218,962
Realized Investment Income (Loss)
Net Realized Gains (Losses)	—			—			—		7,875		7,875
Interest Income and Dividends	—			—			—		72,577		72,577
Total Realized Investment Income (Loss)	—			—			—		80,452		80,452
Total	$	383,621		$	109,929		$	107,598	$	80,452	$	681,600

The following tables reconcile the most directly comparable financial measures calculated and presented in accordance with GAAP to KKR's segment information:

Revenues

	Three Months Ended
	March 31, 2019		March 31, 2018
Total GAAP Revenues	$	1,187,480	$	472,606
Add: Management Fees - Consolidated Funds and Other	121,949		64,596
Deduct: Fee Credits - Consolidated Funds	3,939		14,721
Deduct: Capital Allocation-Based Income (GAAP)	814,932		78,212
Add: Segment Realized Carried Interest	330,345		202,555
Add: Segment Realized Investment Income (Loss)	102,919		80,452
Deduct: Revenue Earned by Other Consolidated Entities	29,703		25,465
Deduct: Expense Reimbursements	44,060		20,211
Total Segment Revenues	$	850,059	$	681,600

Expenses

	Three Months Ended
	March 31, 2019			March 31, 2018
Total GAAP Expenses	$	728,767		$	436,601
Deduct: Equity-based and Other Compensation - KKR Holdings L.P.	23,743			32,695
Deduct: Segment Unrealized Performance Income Compensation	159,880			(43,123		)
Deduct: Amortization of Intangibles	535			5,030
Deduct: Reimbursable Expenses	52,032			26,093
Deduct: Operating Expenses relating to Other Consolidated Entities	51,818			44,309
Add: Other	(11,606		)	371
Total Segment Expenses	$	429,153		$	371,968

Net Income (Loss) Attributable to KKR & Co. Inc. Class A Common Stockholders

	Three Months Ended
	March 31, 2019		March 31, 2018
GAAP Net Income (Loss) Attributable to KKR & Co. Inc. Class A Common Stockholders	$	700,978	$	170,102
Add: Net Income (Loss) Attributable to Noncontrolling Interests held by KKR Holdings L.P.	481,368		121,002
Add: Equity-based and Other Compensation - KKR Holdings L.P.	23,118		32,695
Add: Amortization of Intangibles and Other, net	56,153		47,709
Deduct: Unrealized Carried Interest	401,612		(111,732		)
Deduct: Net Unrealized Gains (Losses)	819,402		207,862
Add: Unrealized Performance Income Compensation	159,880		(43,123		)
Add: Income Tax Provision	167,593		17,641
Deduct: Income Taxes Paid	53,993		14,168
After-tax Distributable Earnings	$	314,083	$	235,728

The items that reconcile KKR's reportable segment income (loss) attributable to noncontrolling interests to the corresponding consolidated amounts calculated and presented in accordance with GAAP for net income (loss) attributable to redeemable noncontrolling interests and income (loss) attributable to noncontrolling interests are primarily attributable to the impact of KKR Holdings L.P., KKR's consolidated funds, and certain other consolidated entities.

Assets

	As of March 31,
	2019			2018
GAAP Assets	$	52,004,019		$	47,579,153
Impact of Consolidation of Investment Vehicles and Other Entities	(31,561,635		)	(29,972,064		)
Carry Pool Reclassification	(1,089,045		)	(1,176,070		)
Other Reclassifications	(582,775		)	—
Impact of KKR Management Holdings Corp.	—			(187,416		)
Segment Assets (1)	$	18,770,564		$	16,243,603

Liabilities

	As of March 31,
	2019			2018
GAAP Liabilities	$	25,796,178		$	25,810,215
Impact of Consolidation of Investment Vehicles and Other Entities	(20,024,004		)	(20,775,320		)
Carry Pool Reclassification	(1,089,045		)	(1,176,070		)
Other Reclassifications	(582,775		)	—
Impact of KKR Management Holdings Corp.	—			(122,028		)
Segment Liabilities (1)	$	4,100,354		$	3,736,797

Stockholders' Equity

	As of March 31,
	2019			2018
KKR & Co. Inc. Stockholders' Equity - Common Stockholders	$	8,839,817		$	6,918,185
Impact of Consolidation of Investment Vehicles and Other Entities	246,793			254,777
Other Reclassifications	(17,446		)	(17,446		)
Noncontrolling Interests Held by KKR Holdings L.P.	5,079,042			4,893,161
Impact of KKR Management Holdings Corp.	—			(65,388		)
Segment Book Value (1)	$	14,148,206		$	11,983,289

(1) As of March 31, 2019, KKR's segment assets, liabilities, and book value reflect KKR's tax assets and liabilities prepared under GAAP.

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EQUITY

3 Months Ended

Mar. 31, 2019

Equity [Abstract]

EQUITY

EQUITY

Share Repurchase Program

KKR increased the available amount under its repurchase program to $500 million, which may be used for the repurchase of its shares of Class A common stock of KKR & Co. Inc. and retirement of equity awards issued pursuant to the Equity Incentive Plans. Under this repurchase program, shares of Class A common stock of KKR & Co. Inc. may be repurchased from time to time in open market transactions, in privately negotiated transactions or otherwise. The timing, manner, price and amount of any repurchases will be determined by KKR in its discretion and will depend on a variety of factors, including legal requirements, price and economic and market conditions. KKR expects that the program, which has no expiration date, will be in effect until the maximum approved dollar amount has been used. The program does not require KKR to repurchase any specific number of shares of Class A common stock of KKR & Co. Inc., and the program may be suspended, extended, modified or discontinued at any time. During the three months ended March 31, 2019, approximately 1.4 million shares of Class A common stock were repurchased pursuant to this program. There were no shares of Class A common stock repurchased pursuant to this program during the three months ended March 31, 2018. During the three months ended March 31, 2019 and 2018, no equity awards were retired pursuant to this program.

Noncontrolling Interests

Noncontrolling interests represent (i) noncontrolling interests in consolidated entities and (ii) noncontrolling interests held by KKR Holdings.

Noncontrolling Interests in Consolidated Entities

Noncontrolling interests in consolidated entities represent the non-redeemable ownership interests in KKR that are held primarily by:

(i) third party fund investors in KKR's consolidated funds and certain other entities;

(ii) third parties entitled to up to 1% of the carried interest received by certain general partners of KKR's funds that have made investments on or prior to December 31, 2015;

(iii) certain former principals and their designees representing a portion of the carried interest received by the general partners of KKR's private equity funds that was allocated to them with respect to private equity investments made during such former principals' tenure with KKR prior to October 1, 2009;

(iv) certain principals and former principals representing all of the capital invested by or on behalf of the general partners of KKR's private equity funds prior to October 1, 2009 and any returns thereon; and

(v) third parties in KKR's capital markets business line.

Noncontrolling Interests held by KKR Holdings

Noncontrolling interests held by KKR Holdings include economic interests held by principals indirectly in the KKR Group Partnership Units. Such principals receive financial benefits from KKR's business in the form of distributions received from KKR Holdings and through their direct and indirect participation in the value of KKR Group Partnership Units held by KKR Holdings. These financial benefits are not paid by KKR & Co. Inc. and are borne by KKR Holdings.

The following table presents the calculation of total noncontrolling interests:

	Three Months Ended March 31, 2019
	Noncontrolling Interests in Consolidated Entities			Noncontrolling Interests Held by KKR Holdings			Total Noncontrolling Interests
Balance at the beginning of the period	$	10,984,910		$	4,625,448		$	15,610,358
Net income (loss) attributable to noncontrolling interests (1)	436,359			481,368			917,727
Other comprehensive income (loss), net of tax (2)	2,511			121			2,632
Exchange of KKR Holdings Units to Class A Common Stock (3)	—			(7,094		)	(7,094		)
Equity-based and other non-cash compensation	—			23,118			23,118
Capital contributions	1,194,792			23			1,194,815
Capital distributions	(812,144		)	(43,942		)	(856,086		)
Balance at the end of the period	$	11,806,428		$	5,079,042		$	16,885,470

(1) Refer to the table below for calculation of net income (loss) attributable to noncontrolling interests held by KKR Holdings.

(2) With respect to noncontrolling interests held by KKR Holdings, calculated on a pro rata basis based on the weighted average KKR Group Partnership Units held by KKR Holdings during the reporting period. 

(3) Calculated based on the proportion of KKR Holdings units exchanged for KKR & Co. Inc. Class A common stock during the reporting period. The exchange agreement with KKR Holdings provides for the exchange of KKR Group Partnership Units held by KKR Holdings for KKR & Co. Inc. Class A common stock.

Net income (loss) attributable to each of KKR & Co. Inc. Class A common stockholders and KKR Holdings, with the exception of certain tax assets and liabilities that are directly allocable to KKR & Co. Inc., is attributed based on the percentage of the weighted average KKR Group Partnership Units directly or indirectly held by KKR & Co. Inc. and KKR Holdings, each of which directly or indirectly holds equity of the KKR Group Partnerships. However, primarily because of the (i) contribution of certain expenses borne entirely by KKR Holdings, (ii) the periodic exchange of KKR Holdings units for KKR & Co. Inc. Class A common stock pursuant to the exchange agreement and (iii) the contribution of certain expenses borne entirely by KKR associated with the Equity Incentive Plans, equity allocations shown in the consolidated statement of changes in equity differ from their respective pro rata ownership interests in KKR's net assets.

The following table presents net income (loss) attributable to noncontrolling interests held by KKR Holdings:

	Three Months Ended March 31,
	2019		2018
Net income (loss)	$	1,627,046	$	602,894
Less: Net income (loss) attributable to Redeemable Noncontrolling Interests	—		25,674
Less: Net income (loss) attributable to Noncontrolling Interests in consolidated entities	436,359		277,775
Less: Preferred Stock Dividends	8,341		8,341
Plus: Income tax expense (benefit) attributable to KKR & Co. Inc.	158,962		6,068
Net income (loss) attributable to KKR & Co. Inc. Class A Common Stockholders and KKR Holdings	$	1,341,308	$	297,172
Net income (loss) attributable to Noncontrolling Interests held by KKR Holdings	$	481,368	$	121,002

Redeemable Noncontrolling Interests

Redeemable Noncontrolling Interests represent noncontrolling interests of certain investment funds and vehicles that are subject to periodic redemption by fund investors following the expiration of a specified period of time (typically one year), or may be withdrawn subject to a redemption fee during the period when capital may not be otherwise withdrawn. Fund investors interests subject to redemption as described above are presented as Redeemable Noncontrolling Interests in the accompanying consolidated statements of financial condition and presented as Net Income (Loss) Attributable to Redeemable Noncontrolling Interests in the accompanying consolidated statements of operations. There was no impact to Redeemable Noncontrolling Interests upon Conversion.

When redeemable amounts become legally payable to fund investors, they are classified as a liability and included in Accounts Payable, Accrued Expenses and Other Liabilities in the accompanying consolidated statements of financial condition. For all consolidated investment vehicles and funds in which redemption rights have not been granted, noncontrolling interests are presented within Stockholders' Equity in the accompanying consolidated statements of financial condition as noncontrolling interests.

The following table presents the rollforward of Redeemable Noncontrolling Interests:

	For the Three Months Ended March 31,
	2019
Balance at the beginning of the period	$	1,122,641
Changes in consolidation	(1,122,641		)
Balance at the end of the period	$	—

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COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

Funding Commitments

As of March 31, 2019, KKR had unfunded commitments consisting of $5,086.9 million to its active investment vehicles. In addition to the uncalled commitments to KKR's investment funds, KKR has entered into contractual commitments with respect to (i) the purchase of investments and other assets in its Principal Activities business line and (ii) underwriting transactions, debt financing, and syndications in KKR's Capital Markets business line. As of March 31, 2019, these commitments amounted to $153.7 million and $516.2 million, respectively. Whether these amounts are actually funded, in whole or in part, depends on the contractual terms of such commitments, including the satisfaction or waiver of any conditions to closing or funding. The unfunded commitments shown for KKR's Capital Markets business line are shown without reflecting arrangements that may reduce the actual amount of contractual commitments shown occurring after March 31, 2019. KKR's capital markets business has an arrangement with a third party, which reduces its risk when underwriting certain debt transactions, and thus our unfunded commitments as of March 31, 2019 are reduced to reflect the amount to be funded by such third party. In the case of purchases of investments or assets in KKR's Principal Activities business line, the amount to be funded includes amounts that are intended to be syndicated to third parties, and the actual amounts to be funded may be less than shown.

Non-cancelable Operating Leases

KKR's non-cancelable operating leases consist of leases of office space around the world. There are no material rent holidays, contingent rent, rent concessions or leasehold improvement incentives associated with any of these property leases. In addition to base rentals, certain lease agreements are subject to escalation provisions and rent expense is recognized on a straight‑line basis over the term of the lease agreement.

As of March 31, 2019, the approximate aggregate minimum future lease payments, net of sublease income, required on the operating leases are as follows:

April 2019 - March 2020	$	50,312
April 2020 - March 2022	66,055
April 2022 - March 2024	26,828
April 2024 and thereafter	18,855
Total minimum payments required	162,050
Less: Imputed Interest	(9,977		)
Total operating lease liabilities	$	152,073

As of March 31, 2019, KKR has an additional operating lease for office space that has not yet commenced with minimum future lease payments of approximately $87.2 million over a lease term of 15 years.

As of December 31, 2018, the approximate aggregate minimum future lease payments, net of sublease income, required on the operating leases are as follows:

2019	$	50,649
2020 - 2021	69,263
2022 - 2023	29,687
2024 and thereafter	76,332
Total minimum payments required (1)	$	225,931

(1) Table depicts aggregate minimum future lease payments under ASC 840.

Contingent Repayment Guarantees

The partnership documents governing KKR's carry-paying investment funds and vehicles generally include a "clawback" provision that, if triggered, may give rise to a contingent obligation requiring the general partner to return amounts to the fund for distribution to the fund investors at the end of the life of the fund. Under a clawback obligation, upon the liquidation of a fund, the general partner is required to return, typically on an after-tax basis, previously distributed carry to the extent that, due to the diminished performance of later investments, the aggregate amount of carry distributions received by the general partner during the term of the fund exceed the amount to which the general partner was ultimately entitled, including the effects of any performance thresholds. As of March 31, 2019, no carried interest was subject to this clawback obligation, assuming that all applicable carry-paying funds were liquidated at their March 31, 2019 fair values. Had the investments in such funds been liquidated at zero value, the clawback obligation would have been approximately $2.1 billion. Carried interest is recognized in the consolidated statements of operations based on the contractual conditions set forth in the agreements governing the fund as if the fund were terminated and liquidated at the reporting date and the fund's investments were realized at the then estimated fair values. Amounts earned pursuant to carried interest are earned by the general partner of those funds to the extent that cumulative investment returns are positive and where applicable, preferred return thresholds have been met. If these investment amounts earned decrease or turn negative in subsequent periods, recognized carried interest will be reversed and to the extent that the aggregate amount of carry distributions received by the general partner during the term of the fund exceed the amount to which the general partner was ultimately entitled, a clawback obligation would be recorded. For funds that are consolidated, this clawback obligation, if any, is reflected as an increase in noncontrolling interests in the consolidated statements of financial condition. For funds that are not consolidated, this clawback obligation, if any, is reflected as a reduction of KKR's investment balance as this is where carried interest is initially recorded.

Indemnifications and Other Guarantees

KKR may incur contingent liabilities for claims that may be made against it in the future. KKR enters into contracts that contain a variety of representations, warranties and covenants, including indemnifications. For example, certain of KKR's investment funds and KFN have provided certain indemnities relating to environmental and other matters and have provided nonrecourse carve-out guarantees for fraud, willful misconduct and other customary wrongful acts, each in connection with the financing of certain real estate investments that KKR has made and for certain investment vehicles that KKR manages. In addition, KKR has also provided credit support to certain of its subsidiaries' obligations in connection with a limited number of investment vehicles that KKR manages. For example, KKR has guaranteed the obligations of a general partner to post collateral on behalf of its investment vehicle in connection with such vehicle's derivative transactions, and KKR has also agreed to be liable for certain investment losses and/or for providing liquidity in the events specified in the governing documents of other investment vehicles. KKR has also provided credit support regarding repayment obligations to third-party lenders to certain of its employees, excluding its executive officers, in connection with their personal investments in KKR investment funds and to a hedge fund partnership regarding the ownership of its business. KKR also may become liable for certain fees payable to sellers of businesses or assets if a transaction does not close, subject to certain conditions, if any, specified in the acquisition agreements for such businesses or assets. KKR's maximum exposure under these arrangements is currently unknown and KKR's liabilities for these matters would require a claim to be made against KKR in the future.

Litigation

From time to time, KKR is involved in various legal proceedings, lawsuits and claims incidental to the conduct of KKR's business. KKR's business is also subject to extensive regulation, which may result in regulatory proceedings against it.

In December 2017, KKR & Co. L.P. and its Co-Chief Executive Officers were named as defendants in a lawsuit pending in Kentucky state court alleging, among other things, the violation of fiduciary and other duties in connection with certain separately managed accounts that Prisma Capital Partners LP, a former subsidiary of KKR, manages for the Kentucky Retirement Systems. Also named as defendants in the lawsuit are certain current and former trustees and officers of the Kentucky Retirement Systems, Prisma Capital Partners LP, and various other service providers to the Kentucky Retirement Systems and their related persons. The defendants’ motion to dismiss was denied by the trial court in November 2018, but in April 2019 the Kentucky Court of Appeals vacated the trial court's opinion and order denying the motion to dismiss the case for lack of standing. The decision of the Court of Appeals has been appealed by plaintiffs to the Supreme Court of Kentucky.

KKR currently is and expects to continue to become, from time to time, subject to examinations, inquiries and investigations by various U.S. and non-U.S. governmental and regulatory agencies, including but not limited to the SEC, Department of Justice, state attorney generals, Financial Industry Regulatory Authority, or FINRA, and the U.K. Financial Conduct Authority. Such examinations, inquiries and investigations may result in the commencement of civil, criminal or administrative proceedings or fines against KKR or its personnel.

Moreover, in the ordinary course of business, KKR is and can be both the defendant and the plaintiff in numerous lawsuits with respect to acquisitions, bankruptcy, insolvency and other types of proceedings. Such lawsuits may involve claims that adversely affect the value of certain investments owned by KKR's funds. 

KKR establishes an accrued liability for legal proceedings only when those matters present loss contingencies that are both probable and reasonably estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued. No loss contingency is recorded for matters where such losses are either not probable or reasonably estimable (or both) at the time of determination. Such matters may be subject to many uncertainties, including among others: (i) the proceedings may be in early stages; (ii) damages sought may be unspecified, unsupportable, unexplained or uncertain; (iii) discovery may not have been started or is incomplete; (iv) there may be uncertainty as to the outcome of pending appeals or motions; (v) there may be significant factual issues to be resolved or (vi) there may be novel legal issues or unsettled legal theories to be presented or a large number of parties. Consequently, management is unable to estimate a range of potential loss, if any, related to these matters. In addition, loss contingencies may be, in part or in whole, subject to insurance or other payments such as contributions and/or indemnity, which may reduce any ultimate loss.

It is not possible to predict the ultimate outcome of all pending legal proceedings, and some of the matters discussed above seek or may seek potentially large and/or indeterminate amounts. As of such date, based on information known by management, management has not concluded that the final resolutions of the matters above will have a material effect upon the financial statements. However, given the potentially large and/or indeterminate amounts sought or may be sought in certain of these matters and the inherent unpredictability of investigations and litigations, it is possible that an adverse outcome in certain matters could, from time to time, have a material effect on KKR's financial results in any particular period.

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SUBSEQUENT EVENTS

3 Months Ended

Mar. 31, 2019

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

Common Stock Dividend

A dividend of $0.125 per share of Class A common stock of KKR & Co. Inc. was announced on April 30, 2019, and will be paid on May 28, 2019 to Class A common stockholders of record as of the close of business on May 13, 2019. KKR Holdings will receive its pro rata share of the distribution from the KKR Group Partnerships.

Preferred Stock Dividend

A dividend of $0.421875 per share of Series A Preferred Stock has been declared as announced on April 30, 2019 and set aside for payment on June 17, 2019 to holders of record of Series A Preferred Stock as of the close of business on June 1, 2019.

A dividend of $0.406250 per share of Series B Preferred Stock has been declared as announced on April 30, 2019 and set aside for payment on June 17, 2019 to holders of record of Series B Preferred Stock as of the close of business on June 1, 2019.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited financial statements of KKR & Co. Inc. have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and the instructions to Form 10-Q. The condensed consolidated financial statements (referred to hereafter as the "financial statements"), including these notes, are unaudited and exclude some of the disclosures required in annual financial statements. Management believes it has made all necessary adjustments (consisting of only normal recurring items) such that the financial statements are presented fairly and that estimates made in preparing the financial statements are reasonable and prudent. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. The December 31, 2018 consolidated balance sheet data was derived from audited financial statements included in KKR's Annual Report on Form 10-K for the year ended December 31, 2018, filed with the Securities and Exchange Commission (the "SEC") on February 15, 2019, and the financial statements should be read in conjunction with the audited financial statements included therein. Additionally, in the accompanying financial statements the condensed consolidated statements of financial condition are referred to hereafter as the “consolidated statements of financial condition”; the condensed consolidated statements of operations are referred to hereafter as the “consolidated statements of operations”;  the condensed consolidated statements of comprehensive income (loss) are referred to hereafter as the “consolidated statements of comprehensive income (loss)”; the condensed consolidated statements of changes in equity are referred to hereafter as the “consolidated statements of changes in equity”; and the condensed consolidated statements of cash flows are referred to hereafter as the “consolidated statements of cash flows."

KKR consolidates the financial results of the KKR Group Partnerships and their consolidated entities, which include the accounts of KKR's investment management and capital markets companies, the general partners of certain unconsolidated investment funds, general partners of consolidated investment funds and their respective consolidated investment funds, and certain other entities including CFEs. References in the accompanying financial statements to "principals" are to KKR's senior employees and non-employee operating consultants who hold interests in KKR's business through KKR Holdings.

All intercompany transactions and balances have been eliminated.

Use of Estimates

Use of Estimates

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues, expenses, and investment income (loss) during the reporting periods. Such estimates include but are not limited to (i) the determination of the income tax provision and (ii) the valuation of investments and financial instruments. Actual results could differ from those estimates, and such differences could be material to the financial statements.

Principles of Consolidation

Principles of Consolidation

The types of entities KKR assesses for consolidation include (i) subsidiaries, including management companies, broker-dealers and general partners of investment funds that KKR manages, (ii) entities that have all the attributes of an investment company, like investment funds, (iii) CFEs and (iv) other entities, including entities that employ non-employee operating consultants. Each of these entities is assessed for consolidation on a case by case basis depending on the specific facts and circumstances surrounding that entity.

Pursuant to its consolidation policy, KKR first considers whether an entity is considered a VIE and therefore whether to apply the consolidation guidance under the VIE model. Entities that do not qualify as VIEs are assessed for consolidation as voting interest entities ("VOEs") under the voting interest model.

KKR's funds are, for GAAP purposes, investment companies and therefore are not required to consolidate their investments in portfolio companies even if majority-owned and controlled. Rather, the consolidated funds and vehicles reflect their investments at fair value as described below in "Fair Value Measurements."

An entity in which KKR holds a variable interest is a VIE if any one of the following conditions exist: (a) the total equity investment at risk is not sufficient to permit the legal entity to finance its activities without additional subordinated financial support, (b) the holders of the equity investment at risk (as a group) lack either the direct or indirect ability through voting rights or similar rights to make decisions about a legal entity's activities that have a significant effect on the success of the legal entity or the obligation to absorb the expected losses or right to receive the expected residual returns, or (c) the voting rights of some investors are disproportionate to their obligation to absorb the expected losses of the legal entity, their rights to receive the expected residual returns of the legal entity, or both and substantially all of the legal entity's activities either involve or are conducted on behalf of an investor with disproportionately few voting rights. Limited partnerships and other similar entities where unaffiliated limited partners have not been granted (i) substantive participatory rights or (ii) substantive rights to either dissolve the partnership or remove the general partner ("kick-out rights") are VIEs under condition (b) above. KKR's investment funds that are not CFEs (i) are generally limited partnerships, (ii) generally provide KKR with operational discretion and control, and (iii) generally have fund investors with no substantive rights to impact ongoing governance and operating activities of the fund, including the ability to remove the general partner, and, as such, the limited partners do not hold kick-out rights. Accordingly, most of KKR's investment funds are categorized as VIEs.

KKR consolidates all VIEs in which it is the primary beneficiary. A reporting entity is determined to be the primary beneficiary if it holds a controlling financial interest in a VIE. A controlling financial interest is defined as (a) the power to direct the activities of a VIE that most significantly impact the VIE's economic performance and (b) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The consolidation guidance requires an analysis to determine (i) whether an entity in which KKR holds a variable interest is a VIE and (ii) whether KKR's involvement, through holding interests directly or indirectly in the entity or contractually through other variable interests (for example, management and performance related fees), would give it a controlling financial interest. Performance of that analysis requires the exercise of judgment. Fees earned by KKR that are customary and commensurate with the level of effort required to provide those services, and where KKR does not hold other economic interests in the entity that would absorb more than an insignificant amount of the expected losses or returns of the entity, would not be considered variable interests. KKR factors in all economic interests including interests held through related parties, to determine if it holds a variable interest. KKR determines whether it is the primary beneficiary of a VIE at the time it becomes involved with a VIE and reconsiders that conclusion when facts and circumstances change.

For entities that are determined not to be VIEs, these entities are generally considered VOEs and are evaluated under the voting interest model. KKR consolidates VOEs it controls through a majority voting interest or through other means.

The consolidation assessment, including the determination as to whether an entity qualifies as a VIE or VOE depends on the facts and circumstances surrounding each entity and therefore certain of KKR's investment funds may qualify as VIEs whereas others may qualify as VOEs.

With respect to CLOs (which are generally VIEs), in its role as collateral manager, KKR generally has the power to direct the activities of the CLO that most significantly impact the economic performance of the entity. In some, but not all cases, KKR, through its residual interest in the CLO may have variable interests that represent an obligation to absorb losses of, or a right to receive benefits from, the CLO that could potentially be significant to the CLO. In cases where KKR has both the power to direct the activities of the CLO that most significantly impact the CLO's economic performance and the obligation to absorb losses of the CLO or the right to receive benefits from the CLO that could potentially be significant to the CLO, KKR is deemed to be the primary beneficiary and consolidates the CLO.

With respect to CMBS vehicles (which are generally VIEs), KKR holds unrated and non-investment grade rated securities issued by the CMBS, which are the most subordinate tranche of the CMBS vehicle. The economic performance of the CMBS is most significantly impacted by the performance of the underlying assets. Thus, the activities that most significantly impact the CMBS economic performance are the activities that most significantly impact the performance of the underlying assets. The special servicer has the ability to manage the CMBS assets that are delinquent or in default to improve the economic performance of the CMBS. KKR generally has the right to unilaterally appoint and remove the special servicer for the CMBS and as such is considered the controlling class of the CMBS vehicle. These rights give KKR the ability to direct the activities that most significantly impact the economic performance of the CMBS. Additionally, as the holder of the most subordinate tranche, KKR is in a first loss position and has the right to receive benefits, including the actual residual returns of the CMBS, if any. In these cases, KKR is deemed to be the primary beneficiary and consolidates the CMBS vehicle.

Investments

Investments

Investments consist primarily of private equity, real assets, credit, investments of consolidated CFEs, equity method, carried interest and other investments. Investments denominated in currencies other than the entity's functional currency are valued based on the spot rate of the respective currency at the end of the reporting period with changes related to exchange rate movements reflected as a component of Net Gains (Losses) from Investment Activities in the consolidated statements of operations. Security and loan transactions are recorded on a trade date basis. Further disclosure on investments is presented in Note 4 "Investments."

The following describes the types of securities held within each investment class.

Private Equity - Consists primarily of equity investments in operating businesses, including growth equity investments.

Credit - Consists primarily of investments in below investment grade corporate debt securities (primarily high yield bonds and syndicated bank loans), originated, distressed and opportunistic debt, real estate mortgage loans, and interests in unconsolidated CLOs.

Investments of Consolidated CFEs - Consists primarily of (i) investments in below investment grade corporate debt securities (primarily high yield bonds and syndicated bank loans) held directly by the consolidated CLOs and (ii) investments in originated, fixed-rate real estate mortgage loans held directly by the consolidated CMBS vehicles.

Real Assets - Consists primarily of investments in (i) energy related assets, principally oil and natural gas producing properties, (ii) infrastructure assets, and (iii) real estate, principally residential and commercial real estate assets and businesses.

Equity Method - Other - Consists primarily of (i) certain direct interests in operating companies in which KKR is deemed to exert significant influence under GAAP and (ii) certain interests in partnerships and joint ventures that hold private equity and real estate investments.

Equity Method - Capital Allocation-Based Income - Consists primarily of (i) the capital interest KKR holds as the general partner in certain investment funds, which are not consolidated and (ii) the carried interest component of the general partner interest, which are accounted for as a single unit of account.

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

Investments held by Consolidated Investment Funds

The consolidated investment funds are, for GAAP purposes, investment companies and reflect their investments and other financial instruments, including portfolio companies that are majority-owned and controlled by KKR's investment funds, at fair value. KKR has retained this specialized accounting for the consolidated funds in consolidation. Accordingly, the unrealized gains and losses resulting from changes in fair value of the investments and other financial instruments held by the consolidated investment funds are reflected as a component of Net Gains (Losses) from Investment Activities in the consolidated statements of operations.

Certain energy investments are made through consolidated investment funds, including investments in working and royalty interests in oil and natural gas producing properties as well as investments in operating companies that operate in the energy industry. Since these investments are held through consolidated investment funds, such investments are reflected at fair value as of the end of the reporting period. 

Investments in operating companies that are held through KKR's consolidated investment funds are generally classified within private equity investments and investments in working and royalty interests in oil and natural gas producing properties are generally classified as real asset investments.

Energy Investments held directly by KKR

Energy Investments held by KKR

Certain energy investments are made by KKR in working and royalty interests in oil and natural gas producing properties and not through investment funds. Oil and natural gas producing activities are accounted for under the successful efforts method of accounting and such working interests are consolidated based on the proportion of the working interests held by KKR. Accordingly, KKR reflects its proportionate share of the underlying consolidated statements of financial condition and consolidated statements of operations of the consolidated working interests on a gross basis and changes in the value of these working interests are not reflected as unrealized gains and losses in the consolidated statements of operations. Under the successful efforts method, exploration costs, other than the costs of drilling exploratory wells, are charged to expense as incurred. Costs that are associated with the drilling of successful exploration wells are capitalized if proved reserves are found. Lease acquisition costs are capitalized when incurred. Costs associated with the drilling of exploratory wells that do not find proved reserves, geological and geophysical costs and costs of certain nonproducing leasehold costs are charged to expense as incurred.

Expenditures for repairs and maintenance, including workovers, are charged to expense as incurred.

The capitalized costs of producing oil and natural gas properties are depleted on a field-by-field basis using the units-of production method based on the ratio of current production to estimated total net proved oil, natural gas and natural gas liquid reserves. Proved developed reserves are used in computing depletion rates for drilling and development costs and total proved reserves are used for depletion rates of leasehold costs.

Estimated dismantlement and abandonment costs for oil and natural gas properties, net of salvage value, are capitalized at their estimated net present value and amortized on a unit-of-production basis over the remaining life of the related proved developed reserves.

Whenever events or changes in circumstances indicate that the carrying amounts of oil and natural gas properties may not be recoverable, KKR evaluates oil and natural gas properties and related equipment and facilities for impairment on a field-by-field basis. The determination of recoverability is made based upon estimated undiscounted future net cash flows. The amount of impairment loss, if any, is determined by comparing the fair value, as determined by a discounted cash flow analysis, with the carrying value of the related asset. Any impairment in value is recognized when incurred and is recorded in General, Administrative, and Other expense in the consolidated statements of operations.

Fair Value Option

Fair Value Option

For certain investments and other financial instruments, KKR has elected the fair value option. Such election is irrevocable and is applied on a financial instrument by financial instrument basis at initial recognition. KKR has elected the fair value option for certain private equity, real assets, credit, investments of consolidated CFEs, equity method - other and other financial instruments not held through a consolidated investment fund. Accounting for these investments at fair value is consistent with how KKR accounts for its investments held through consolidated investment funds. Changes in the fair value of such instruments are recognized in Net Gains (Losses) from Investment Activities in the consolidated statements of operations. Interest income on interest bearing credit securities on which the fair value option has been elected is based on stated coupon rates adjusted for the accretion of purchase discounts and the amortization of purchase premiums. This interest income is recorded within Interest Income in the consolidated statements of operations.

Equity Method

Equity Method

For certain investments in entities over which KKR exercises significant influence but which do not meet the requirements for consolidation and for which KKR has not elected the fair value option, KKR uses the equity method of accounting. The carrying value of equity method investments, for which KKR has not elected the fair value option, is determined based on the amounts invested by KKR, adjusted for the equity in earnings or losses of the investee allocated based on KKR's respective ownership percentage, less distributions.

For equity method investments for which KKR has not elected the fair value option, KKR records its proportionate share of the investee's earnings or losses based on the most recently available financial information of the investee, which in certain cases may lag the date of KKR's financial statements by no more than three calendar months. As of March 31, 2019, equity method investees for which KKR reports financial results on a lag include Marshall Wace LLP ("Marshall Wace"). KKR evaluates its equity method investments for which KKR has not elected the fair value option for impairment whenever events or changes in circumstances indicate that the carrying amounts of such investments may not be recoverable.

The carrying value of investments classified as Equity Method - Capital Allocation-Based Income approximates fair value, because the underlying investments of the unconsolidated investment funds are reported at fair value.

Financial Instruments held by Consolidated CFEs

Financial Instruments held by Consolidated CFEs

KKR measures both the financial assets and financial liabilities of the consolidated CFEs in its financial statements using the more observable of the fair value of the financial assets and the fair value of the financial liabilities which results in KKR's consolidated net income (loss) reflecting KKR's own economic interests in the consolidated CFEs including (i) changes in the fair value of the beneficial interests retained by KKR and (ii) beneficial interests that represent compensation for services rendered.

For the consolidated CLOs, KKR has determined that the fair value of the financial assets of the consolidated CLOs is more observable than the fair value of the financial liabilities of the consolidated CLOs. As a result, the financial assets of the consolidated CLOs are being measured at fair value and the financial liabilities are being measured in consolidation as: (1) the sum of the fair value of the financial assets and the carrying value of any nonfinancial assets that are incidental to the operations of the CLOs less (2) the sum of the fair value of any beneficial interests retained by KKR (other than those that represent compensation for services) and KKR's carrying value of any beneficial interests that represent compensation for services. The resulting amount is allocated to the individual financial liabilities (other than the beneficial interests retained by KKR).

For the consolidated CMBS vehicles, KKR has determined that the fair value of the financial liabilities of the consolidated CMBS vehicles is more observable than the fair value of the financial assets of the consolidated CMBS vehicles. As a result, the financial liabilities of the consolidated CMBS vehicles are being measured at fair value and the financial assets are being measured in consolidation as: (1) the sum of the fair value of the financial liabilities (other than the beneficial interests retained by KKR), the fair value of the beneficial interests retained by KKR and the carrying value of any nonfinancial liabilities that are incidental to the operations of the CMBS vehicles less (2) the carrying value of any nonfinancial assets that are incidental to the operations of the CMBS vehicles. The resulting amount is allocated to the individual financial assets.

Fair Value Measurements

Fair Value Measurements

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. Except for certain of KKR's equity method investments (see "Equity Method" above) and debt obligations (as described in Note 10 "Debt Obligations"), KKR's investments and other financial instruments are recorded at fair value or at amounts whose carrying values approximate fair value. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation techniques are applied. These valuation techniques involve varying levels of management estimation and judgment, the degree of which is dependent on a variety of factors.

GAAP establishes a hierarchical disclosure framework which prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Market price observability is affected by a number of factors, including the type of financial instrument, the characteristics specific to the financial instrument and the state of the marketplace, including the existence and transparency of transactions between market participants. Financial instruments with readily available quoted prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

Investments and financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination of fair values, as follows:

Level I - Pricing inputs are unadjusted, quoted prices in active markets for identical assets or liabilities as of the measurement date. The types of financial instruments included in this category are publicly-listed equities and securities sold short.

Level II - Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the measurement date, and fair value is determined through the use of models or other valuation methodologies. The types of financial instruments included in this category are credit investments, investments and debt obligations of consolidated CLO entities, convertible debt securities indexed to publicly-listed securities, less liquid and restricted equity securities and certain over-the-counter derivatives such as foreign currency option and forward contracts.

Level III - Pricing inputs are unobservable for the financial instruments and include situations where there is little, if any, market activity for the financial instrument. The inputs into the determination of fair value require significant management judgment or estimation. The types of financial instruments generally included in this category are private portfolio companies, real assets investments, credit investments, equity method investments for which the fair value option was elected and investments and debt obligations of consolidated CMBS entities.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. KKR's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and consideration of factors specific to the asset.

A significant decrease in the volume and level of activity for the asset or liability is an indication that transactions or quoted prices may not be representative of fair value because in such market conditions there may be increased instances of transactions that are not orderly. In those circumstances, further analysis of transactions or quoted prices is needed, and a significant adjustment to the transactions or quoted prices may be necessary to estimate fair value.

The availability of observable inputs can vary depending on the financial asset or liability and is affected by a wide variety of factors, including, for example, the type of instrument, whether the instrument has recently been issued, whether the instrument is traded on an active exchange or in the secondary market, and current market conditions. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by KKR in determining fair value is greatest for instruments categorized in Level III. The variability and availability of the observable inputs affected by the factors described above may cause transfers between Levels I, II, and III, which KKR recognizes at the beginning of the reporting period. 

Investments and other financial instruments that have readily observable market prices (such as those traded on a securities exchange) are stated at the last quoted sales price as of the reporting date. KKR does not adjust the quoted price for these investments, even in situations where KKR holds a large position and a sale could reasonably affect the quoted price.

Management's determination of fair value is based upon the methodologies and processes described below and may incorporate assumptions that are management's best estimates after consideration of a variety of internal and external factors.

Level II Valuation Methodologies

Credit Investments: These instruments generally have bid and ask prices that can be observed in the marketplace. Bid prices reflect the highest price that KKR and others are willing to pay for an instrument. Ask prices represent the lowest price that KKR and others are willing to accept for an instrument. For financial assets and liabilities whose inputs are based on bid-ask prices obtained from third party pricing services, fair value may not always be a predetermined point in the bid-ask range. KKR's policy is generally to allow for mid-market pricing and adjusting to the point within the bid-ask range that meets KKR's best estimate of fair value.

Investments and Debt Obligations of Consolidated CLO Vehicles: Investments of consolidated CLO vehicles are reported within Investments of Consolidated CFEs and are valued using the same valuation methodology as described above for credit investments. Under ASU 2014-13, KKR measures CLO debt obligations on the basis of the fair value of the financial assets of the CLO.

Securities indexed to publicly-listed securities: The securities are typically valued using standard convertible security pricing models. The key inputs into these models that require some amount of judgment are the credit spreads utilized and the volatility assumed. To the extent the company being valued has other outstanding debt securities that are publicly-traded, the implied credit spread on the company's other outstanding debt securities would be utilized in the valuation. To the extent the company being valued does not have other outstanding debt securities that are publicly-traded, the credit spread will be estimated based on the implied credit spreads observed in comparable publicly-traded debt securities. In certain cases, an additional spread will be added to reflect an illiquidity discount due to the fact that the security being valued is not publicly-traded. The volatility assumption is based upon the historically observed volatility of the underlying equity security into which the convertible debt security is convertible and/or the volatility implied by the prices of options on the underlying equity security.

Restricted Equity Securities: The valuation of certain equity securities is based on an observable price for an identical security adjusted for the effect of a restriction.

Derivatives: The valuation incorporates observable inputs comprising yield curves, foreign currency rates and credit spreads.

Level III Valuation Methodologies

Investments and financial instruments categorized as Level III consist primarily of the following:

Private Equity Investments: KKR generally employs two valuation methodologies when determining the fair value of a private equity investment. The first methodology is typically a market comparables analysis that considers key financial inputs and recent public and private transactions and other available measures. The second methodology utilized is typically a discounted cash flow analysis, which incorporates significant assumptions and judgments. Estimates of key inputs used in this methodology include the weighted average cost of capital for the investment and assumed inputs used to calculate terminal values, such as exit EBITDA multiples. In certain cases the results of the discounted cash flow approach can be significantly impacted by these estimates. Other inputs are also used in both methodologies. In addition, when a definitive agreement has been executed to sell an investment, KKR generally considers a significant determinant of fair value to be the consideration to be received by KKR pursuant to the executed definitive agreement.

Upon completion of the valuations conducted using these methodologies, a weighting is ascribed to each method, and an illiquidity discount is typically applied where appropriate. The ultimate fair value recorded for a particular investment will generally be within a range suggested by the two methodologies, except that the value may be higher or lower than such range in the case of investments being sold pursuant to an executed definitive agreement.

When determining the weighting ascribed to each valuation methodology, KKR considers, among other factors, the availability of direct market comparables, the applicability of a discounted cash flow analysis, the expected hold period and manner of realization for the investment, and in the case of investments being sold pursuant to an executed definitive agreement, an estimated probability of such sale being completed. These factors can result in different weightings among investments in the portfolio and in certain instances may result in up to a 100% weighting to a single methodology.

When an illiquidity discount is to be applied, KKR seeks to take a uniform approach across its portfolio and generally applies a minimum 5% discount to all private equity investments. KKR then evaluates such private equity investments to determine if factors exist that could make it more challenging to monetize the investment and, therefore, justify applying a higher illiquidity discount. These factors generally include (i) whether KKR is unable to freely sell the portfolio company or conduct an initial public offering of the portfolio company due to the consent rights of a third party or similar factors, (ii) whether the portfolio company is undergoing significant restructuring activity or similar factors, and (iii) characteristics about the portfolio company regarding its size and/or whether the portfolio company is experiencing, or expected to experience, a significant decline in earnings. These factors generally make it less likely that a portfolio company would be sold or publicly offered in the near term at a price indicated by using just a market multiples and/or discounted cash flow analysis, and these factors tend to reduce the number of opportunities to sell an investment and/or increase the time horizon over which an investment may be monetized. Depending on the applicability of these factors, KKR determines the amount of any incremental illiquidity discount to be applied above the 5% minimum, and during the time KKR holds the investment, the illiquidity discount may be increased or decreased, from time to time, based on changes to these factors. The amount of illiquidity discount applied at any time requires considerable judgment about what a market participant would consider and is based on the facts and circumstances of each individual investment. Accordingly, the illiquidity discount ultimately considered by a market participant upon the realization of any investment may be higher or lower than that estimated by KKR in its valuations.

In the case of growth equity investments, enterprise values may be determined using the market comparables analysis and discounted cash flow analysis described above. A scenario analysis may also be conducted to subject the estimated enterprise values to a downside, base and upside case, which involves significant assumptions and judgments. A milestone analysis may also be conducted to assess the current level of progress towards value drivers that we have determined to be important, which involves significant assumptions and judgments. The enterprise value in each case may then be allocated across the investment's capital structure to reflect the terms of the security and subjected to probability weightings. In certain cases, the values of growth equity investments may be based on recent or expected financings.

Real Asset Investments: Real asset investments in infrastructure, energy and real estate are valued using one or more of the discounted cash flow analysis, market comparables analysis and direct income capitalization, which in each case incorporates significant assumptions and judgments.

Infrastructure investments are generally valued using the discounted cash flow analysis. Key inputs used in this methodology can include the weighted average cost of capital and assumed inputs used to calculate terminal values, such as exit EBITDA multiples.

Energy investments are generally valued using a discounted cash flow approach, and where applicable, a market approach using comparable companies and transactions. Key inputs used in our valuations include (i) the weighted average cost of capital, (ii) future commodity prices, as quoted on indices and long-term commodity price forecasts, and (iii) the asset’s future operating performance.

Real estate investments are generally valued using a combination of direct income capitalization and discounted cash flow analysis. Certain real estate investments are valued by KKR based on ranges of valuations determined by an independent valuation firm. Key inputs used in such methodologies that require estimates include an unlevered discount rate and current capitalization rate. The valuations of real assets investments also use other inputs.

Credit Investments: Credit investments are valued using values obtained from dealers or market makers, and where these values are not available, credit investments are generally valued by KKR based on ranges of valuations determined by an independent valuation firm. Valuation models are based on discounted cash flow analyses, for which the key inputs are determined based on market comparables, which incorporate similar instruments from similar issuers.

Other Investments: With respect to other investments including equity method investments for which the fair value election has been made, KKR generally employs the same valuation methodologies as described above for private equity investments when valuing these other investments.

Investments and Debt Obligations of Consolidated CMBS Vehicles: Under ASU 2014-13, KKR measures CMBS investments, which are reported within Investments of Consolidated CFEs on the basis of the fair value of the financial liabilities of the CMBS. Debt obligations of consolidated CMBS vehicles are valued based on discounted cash flow analyses. The key input is the expected yield of each CMBS security using both observable and unobservable factors, which may include recently offered or completed trades and published yields of similar securities, security-specific characteristics (e.g. securities ratings issued by nationally recognized statistical rating organizations, credit support by other subordinate securities issued by the CMBS and coupon type) and other characteristics.

Key unobservable inputs that have a significant impact on KKR's Level III investment valuations as described above are included in Note 5 "Fair Value Measurements." KKR utilizes several unobservable pricing inputs and assumptions in determining the fair value of its Level III investments. These unobservable pricing inputs and assumptions may differ by investment and in the application of KKR's valuation methodologies. KKR's reported fair value estimates could vary materially if KKR had chosen to incorporate different unobservable pricing inputs and other assumptions or, for applicable investments, if KKR only used either the discounted cash flow methodology or the market comparables methodology instead of assigning a weighting to both methodologies.

Fees and Other

Fees and Other

Fees and Other, as detailed above, are accounted for as contracts with customers. Under the guidance for contracts with customers, KKR is required to (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) KKR satisfies its performance obligation. In determining the transaction price, KKR has included variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized would not occur when the uncertainty associated with the variable consideration is resolved.

The following table summarizes KKR's revenues from contracts with customers:

Revenue Type	Customer	Performance Obligation	Performance Obligation Satisfied Over Time or Point In Time (1)	Variable or Fixed Consideration	Payment Terms	Subject to Return Once Recognized	Classification of Uncollected Amounts (2)
Management Fees	Investment funds, CLOs and other vehicles	Investment management services	Over time as services are rendered	Variable consideration since varies based on fluctuations in the basis of the management fee over time	Typically quarterly or annually in arrears	No	Due from Affiliates
Transaction Fees	Portfolio companies and third party companies	Advisory services and debt and equity arranging and underwriting	Point in time when the transaction (e.g. underwriting) is completed	Fixed consideration	Typically paid on or shortly after transaction closes	No	Due from Affiliates (portfolio companies) Other Assets (third parties)
Monitoring Fees
Recurring Fees	Portfolio companies	Monitoring services	Over time as services are rendered	Variable consideration since varies based on fluctuations in the basis of the recurring fee	Typically quarterly in arrears	No	Due from Affiliates
Termination Fees	Portfolio companies	Monitoring services	Point in time when the termination is completed	Fixed consideration	Typically paid on or shortly after termination occurs	No	Due from Affiliates
Incentive Fees	Investment funds and other vehicles	Investment management services that result in achievement of minimum investment return levels	Point in time at the end of the performance measurement period (quarterly or annually) if investment performance is achieved	Variable consideration since contingent upon the investment fund and other vehicles achieving more than stipulated investment return hurdles	Typically paid shortly after the end of the performance measurement period	No	Due from Affiliates
Expense Reimbursements	Investment funds and portfolio companies	Investment management and monitoring services	Point in time when the related expense is incurred	Fixed consideration	Typically shortly after expense is incurred	No	Due from Affiliates
Oil and Gas Revenues	Oil and gas wholesalers	Delivery of oil liquids and gas	Point in time when delivery has occurred and title has transferred	Fixed consideration	Typically shortly after delivery	No	Other Assets
Consulting Fees	Portfolio companies and other companies	Consulting and other services	Over time as services are rendered	Fixed consideration	Typically quarterly in arrears	No	Due from Affiliates

(1) For performance obligations satisfied at a point in time, there were no significant judgments made in evaluating when a customer obtains control of the promised service.

(2) For amounts classified in Other Assets, see Note 8 "Other Assets and Accounts Payable, Accrued Expenses and Other Liabilities." For amounts classified in Due from Affiliates, see Note 13 "Related Party Transactions."

Management Fees

KKR provides investment management services to investment funds, CLOs, and other vehicles in exchange for a management fee. Management fees are determined quarterly based on an annual rate and are generally based upon a percentage of the capital committed or capital invested during the investment period. Thereafter, management fees are generally based on a percentage of remaining invested capital, net asset value, gross assets or as otherwise defined in the respective contractual agreements. Since some of the factors that cause the fees to fluctuate are outside of KKR's control, management fees are considered to be constrained and are therefore not included in the transaction price. Additionally, after the contract is established there are no significant judgments made when determining the transaction price.

Management fees earned from KKR's consolidated investment funds, CLOs, and other vehicles are eliminated in consolidation. However, because these amounts are funded by, and earned from, noncontrolling interests, KKR's allocated share of the net income from the consolidated investment funds, CLOs, and other vehicles is increased by the amount of fees that are eliminated. Accordingly, the elimination of these fees does not impact the net income (loss) attributable to KKR or KKR stockholders' equity.

Fee Credits

Under the terms of the management agreements with certain of its investment funds, KKR is required to share with such funds an agreed upon percentage of certain fees, including monitoring and transaction fees earned from portfolio companies ("Fee Credits"). Investment funds earn Fee Credits only with respect to monitoring and transaction fees that are allocable to the fund's investment in the portfolio company and not, for example, any fees allocable to capital invested through co-investment vehicles. Fee Credits are calculated after deducting certain costs incurred in connection with pursuing potential investments that do not result in completed transactions ("broken-deal expenses") and generally amount to 80% for older funds, or 100% for newer funds, of allocable monitoring and transaction fees after broken-deal expenses are recovered, although the actual percentage may vary from fund to fund. Fee Credits are recognized and owed to investment funds concurrently with the recognition of monitoring fees, transaction fees and broken-deal expenses. Since Fee Credits are payable to investment funds, amounts owed are generally applied as a reduction of the management fee that is otherwise billed to the investment fund. Fee credits are recorded as a reduction of revenues in the consolidated statement of operations. Fee credits owed to investment funds are recorded in Due to Affiliates on the consolidated statements of financial condition. See Note 13 "Related Party Transactions."

Transaction Fees

KKR (i) arranges debt and equity financing, places and underwrites securities offerings, and provides other types of capital markets services for companies seeking financing in its Capital Markets business line and (ii) provides advisory services in connection with successful Private Markets and Public Markets portfolio company investment transactions, in each case, in exchange for a transaction fee. Transaction fees are separately negotiated for each transaction and are generally based on (i) in our Capital Markets business line, a percentage of the overall transaction size and (ii) for Private Markets and Public Markets transactions, a percentage of either total enterprise value of an investment or a percentage of the aggregate price paid for an investment. After the contract is established, there are no significant judgments made when determining the transaction price.

Monitoring Fees

KKR provides services in connection with monitoring portfolio companies in exchange for a fee. Recurring monitoring fees are separately negotiated for each portfolio company. In addition, certain monitoring fee arrangements may provide for a termination payment following an initial public offering or change of control as defined in the contractual terms of the related agreement. These termination payments are recognized in the period when the related transaction closes. After the contract is established, there are no significant judgments made when determining the transaction price.

Incentive Fees

KKR provides investment management services to certain investment funds, CLOs and other vehicles in exchange for a management fee as discussed above and, in some cases an incentive fee when KKR is not entitled to a carried interest. Incentive fee rates generally range from 5% to 20% of investment gains. Incentive fees are considered a form of variable consideration as these fees are subject to reversal, and therefore the recognition of such fees is deferred until the end of each fund's measurement period (which is generally one year) when the performance-based incentive fees become fixed and determinable. Incentive fees are generally paid within 90 days of the end of the investment vehicles' measurement period. After the contract is established, there are no significant judgments made when determining the transaction price.

Expense Reimbursements

Providing investment management services to investment funds and monitoring KKR’s portfolio companies require KKR to arrange for services on behalf of them. In those situations where KKR is acting as an agent on behalf of its investment funds or portfolio companies, it presents the cost of services on a net basis as a reduction of Revenues. In all other situations, KKR is primarily responsible for fulfilling the services and is therefore acting as a principal for those arrangements for accounting purposes. As a result, the expense and related reimbursement associated with those services is presented on a gross basis.Costs incurred are classified as Expenses and reimbursements of such costs are classified as Expense Reimbursements within Revenues on the consolidated statements of operations. After the contract is established, there are no significant judgments made when determining the transaction price.

Oil and Gas Revenue

KKR directly holds certain working and royalty interests in oil and natural gas producing properties that are not held through investment funds. Oil and gas revenue is recognized when the performance obligation is satisfied, which occurs at the point in time when control of the product transfers to the customer. Performance obligations are typically satisfied through the monthly delivery of production. Revenue is recognized based on KKR's proportionate share of production from non-operated properties as marketed by the operator. After the contract is established, there are no significant judgments made when determining the transaction price.

Consulting Fees

Certain consolidated entities that employ non-employee operating consultants provide consulting and other services to portfolio companies and other companies in exchange for a consulting fee. Consulting fees are separately negotiated with each portfolio company for which services are provided and are not shared with KKR. After the contract is established, there are no significant judgments made when determining the transaction price.

Capital Allocation-Based Income

Capital allocation-based income is earned from those arrangements where KKR has a general partner capital interest and is entitled to a disproportionate allocation of investment income (referred to hereafter as "carried interest"). KKR accounts for its general partner interests in capital allocation-based arrangements as financial instruments under ASC 323, Investments - Equity Method and Joint Ventures ("ASC 323") since the general partner has significant governance rights in the investment funds in which it invests, which demonstrates significant influence. In accordance with ASC 323, KKR records equity method income based on the proportionate share of the income of the investment fund, including carried interest, assuming the investment fund was liquidated as of each reporting date pursuant to each investment fund's governing agreements. Accordingly, these general partner interests are accounted for outside of the scope of ASC 606. Other arrangements surrounding contractual incentive fees through an advisory contract are separate and distinct and accounted for in accordance with ASC 606. In these incentive fee arrangements, accounted for in accordance with ASC 606, KKR’s economics in the entity do not involve an allocation of capital. See "Incentive Fees" above.

Carried interest is allocated to the general partner based on cumulative fund performance to date, and where applicable, subject to a preferred return to the funds' limited partners. At the end of each reporting period, KKR calculates the carried interest that would be due to KKR for each investment fund, pursuant to the fund agreements, as if the fair value of the underlying investments were realized as of such date, irrespective of whether such amounts have been realized. As the fair value of underlying investments varies between reporting periods, it is necessary to make adjustments to amounts recorded as carried interest to reflect either (a) positive performance resulting in an increase in the carried interest allocated to the general partner or (b) negative performance that would cause the amount due to KKR to be less than the amount previously recognized, resulting in a negative adjustment to carried interest allocated to the general partner. In each case, it is necessary to calculate the carried interest on cumulative results compared to the carried interest recorded to date and to make the required positive or negative adjustments. KKR ceases to record negative carried interest allocations once previously recognized carried interest allocations for an investment fund have been fully reversed. KKR is not obligated to make payments for guaranteed returns or hurdles and, therefore, cannot have negative carried interest over the life of an investment fund. Accrued but unpaid carried interest as of the reporting date is reflected in Investments in the consolidated statements of financial condition.

Income Taxes

Income Taxes

KKR & Co. Inc. is a corporation for U.S. federal income tax purposes and thus is subject to U.S. federal, state and local corporate income taxes at the entity level on KKR’s share of net taxable income. In addition, the KKR Group Partnerships and certain of their subsidiaries operate in the United States as partnerships for U.S. federal income tax purposes and as corporate entities in certain non-U.S. jurisdictions. These entities, in some cases, are subject to U.S. state or local income taxes or non-U.S. income taxes.

Prior to the Conversion, KKR & Co. L.P.’s investment income and carried interest generally were not subject to U.S. corporate income taxes. Subsequent to the Conversion, all income earned by KKR & Co. Inc. is subject to U.S. corporate income taxes.

Leases

Leases

At contract inception, KKR determines if an arrangement contains a lease by evaluating whether (i) the identified asset has been deployed in the contract explicitly or implicitly and (ii) KKR obtains substantially all of the economic benefits from the use of that underlying asset and directs how and for what purpose the asset is used during the term of the contract. Additionally, at contract inception KKR will evaluate whether the lease is an operating or finance lease. Right-of-use (“ROU”) assets represent KKR’s right to use an underlying asset for the lease term and lease liabilities represent KKR’s obligation to make lease payments arising from the lease.

ROU assets and the associated lease liabilities are recognized at the commencement date based on the present value of the future minimum lease payments over the lease term. The discount rate implicit in the lease is generally not readily determinable. Consequently, KKR uses its incremental borrowing rate based on the information available including, but not limited to, collateral assumptions, the term of the lease, and the economic environment in which the lease is denominated at the commencement date in determining the present value of the future lease payments. The ROU assets are recognized as the initial measurement of the lease liabilities plus any initial direct costs and any prepaid lease payments less lease incentives received, if any. The lease terms may include options to extend or terminate the lease which are accounted for when it is reasonably certain that KKR will exercise that option.

Operating lease expense is recognized on a straight-line basis over the lease term and is recorded within Occupancy and Related Charges in the accompanying consolidated statements of operations. The ROU assets are included in Other Assets and the lease liabilities are included in Accounts Payable, Accrued Expenses and Other Liabilities in the accompanying consolidated statements of financial condition. See Note 8 "Other Assets and Accounts Payable, Accrued Expenses and Other Liabilities."

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

Adopted in 2019

Leases

In February 2016, the FASB issued ASU No. 2016-02, Leases ("ASC 842") which has subsequently been amended. This guidance, among other items: (i) requires recognition of lease assets and lease liabilities for those leases classified as operating leases under previous GAAP, ASC 840; (ii) retains a distinction between finance leases and operating leases; and (iii) includes the classification criteria for distinguishing between finance leases and operating leases that are substantially similar to the classification criteria for distinguishing between capital leases and operating leases under ASC 840.

The only material lease activity KKR is engaged in is the leasing of office space where KKR is the lessee under the terms of lease agreements, which have been determined to be operating leases. For operating leases, a lessee is required to: (a) recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the consolidated statement of financial condition; (b) recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term, generally on a straight-line basis, and (c) classify all cash payments within operating activities in the consolidated statement of cash flows.

KKR adopted this guidance on the effective date, January 1, 2019, using the modified retrospective approach and electing the "Comparatives Under ASC 840 Approach." The Comparatives Under ASC 840 Approach allows an entity to elect not to recast its comparative periods in the period of adoption when transitioning to ASC 842. In doing so, KKR has provided the disclosures required by ASC 840 for the comparative periods. Additionally, KKR has elected the practical expedient package transition election for all leases. The practical expedient package under the new standard allows an entity not to have to reassess its prior conclusions about lease identification, lease classification and initial direct costs.

Upon adoption, KKR recorded ROU assets of $153.3 million and lease liabilities of $162.9 million, resulting in no cumulative-effect adjustment to retained earnings as of January 1, 2019.

Premium Amortization on Purchased Callable Debt Securities

In March 2017, the FASB issued ASU No. 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities ("ASU 2017-08"). This guidance amends the amortization period for certain purchased callable debt securities held at a premium. The guidance requires the premium to be amortized to the earliest call date. The guidance does not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. ASU 2017-08 is effective for fiscal years and interim periods beginning after December 15, 2018. This guidance has been adopted as of January 1, 2019 and did not have a material impact to KKR.

Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income

In February 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ("ASU 2018-02"). Under ASC 740-10-45-15, the effects of changes in tax rates and laws on deferred tax balances are recorded as a component of tax expense for the period in which the law was enacted, even if the assets and liabilities related to items of accumulated other comprehensive income ("OCI"). ASU 2018-02 allows entities to elect to reclassify from accumulated OCI to retained earnings stranded tax effects that relate to the Tax Cuts and Jobs Act, which was enacted in December 2017 (the "2017 Tax Act") from the change in federal tax rate for all items accounted for in OCI. Entities can also elect to reclassify other stranded tax effects that relate to the 2017 Tax Act, but do not directly relate to the change in the federal tax rate. Tax effects that are stranded in OCI for other reasons may not be reclassified. In the period of adoption, entities that elect to reclassify the income tax effects of the 2017 Tax Act from accumulated OCI to retained earnings must disclose that they made such an election. Entities must also disclose a description of other income tax effects related to the 2017 Tax Act that are reclassified from accumulated OCI to retained earnings, if any. The guidance is effective for fiscal periods beginning after December 15, 2018, and interim periods within those fiscal years. This guidance has been adopted as of January 1, 2019 and did not have a material impact to KKR. KKR did not elect to reclassify stranded tax effects that relate to the 2017 Tax Act from accumulated OCI to retained earnings for all items accounted for in OCI. KKR's policy for releasing income tax effects from accumulated OCI is when all related units of account are liquidated, sold or extinguished.

Effective on January 1, 2020

Goodwill

In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This guidance simplifies the accounting for goodwill impairments by eliminating the second step from the goodwill impairment test. The ASU requires goodwill impairments to be measured on the basis of the fair value of a reporting unit relative to the reporting unit's carrying amount rather than on the basis of the implied amount of goodwill relative to the goodwill balance of the reporting unit. The ASU also (i) clarifies the requirements for excluding and allocating foreign currency translation adjustments to reporting units related to an entity's testing of reporting units for goodwill impairment and (ii) clarifies that an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The guidance is effective for fiscal periods beginning after December 15, 2019. Early adoption is allowed for entities as of January 1, 2017, for annual and any interim impairment tests occurring after January 1, 2017. KKR is currently evaluating the impact of this guidance on the financial statements.

Implementation Costs Incurred in a Cloud Computing Arrangement

In August 2018, the FASB issued ASU No. 2018-15, which addresses a customer’s accounting for implementation costs incurred in a cloud computing arrangement ("CCA") that is a service contract. The ASU aligns the accounting for costs incurred to implement a CCA that is a service arrangement with the guidance on capitalizing costs associated with developing or obtaining internal-use software. The guidance is effective for fiscal periods beginning after December 15, 2019. Early adoption is permitted and this ASU can be applied on either a retrospective or prospective basis. KKR is currently evaluating the impact of this guidance on the financial statements.

Noncontrolling Interests

Net income (loss) attributable to each of KKR & Co. Inc. Class A common stockholders and KKR Holdings, with the exception of certain tax assets and liabilities that are directly allocable to KKR & Co. Inc., is attributed based on the percentage of the weighted average KKR Group Partnership Units directly or indirectly held by KKR & Co. Inc. and KKR Holdings, each of which directly or indirectly holds equity of the KKR Group Partnerships. However, primarily because of the (i) contribution of certain expenses borne entirely by KKR Holdings, (ii) the periodic exchange of KKR Holdings units for KKR & Co. Inc. Class A common stock pursuant to the exchange agreement and (iii) the contribution of certain expenses borne entirely by KKR associated with the Equity Incentive Plans, equity allocations shown in the consolidated statement of changes in equity differ from their respective pro rata ownership interests in KKR's net assets.

Noncontrolling Interests

Noncontrolling interests represent (i) noncontrolling interests in consolidated entities and (ii) noncontrolling interests held by KKR Holdings.

Noncontrolling Interests in Consolidated Entities

Noncontrolling interests in consolidated entities represent the non-redeemable ownership interests in KKR that are held primarily by:

(i) third party fund investors in KKR's consolidated funds and certain other entities;

(ii) third parties entitled to up to 1% of the carried interest received by certain general partners of KKR's funds that have made investments on or prior to December 31, 2015;

(iii) certain former principals and their designees representing a portion of the carried interest received by the general partners of KKR's private equity funds that was allocated to them with respect to private equity investments made during such former principals' tenure with KKR prior to October 1, 2009;

(iv) certain principals and former principals representing all of the capital invested by or on behalf of the general partners of KKR's private equity funds prior to October 1, 2009 and any returns thereon; and

(v) third parties in KKR's capital markets business line.

Noncontrolling Interests held by KKR Holdings

Noncontrolling interests held by KKR Holdings include economic interests held by principals indirectly in the KKR Group Partnership Units. Such principals receive financial benefits from KKR's business in the form of distributions received from KKR Holdings and through their direct and indirect participation in the value of KKR Group Partnership Units held by KKR Holdings. These financial benefits are not paid by KKR & Co. Inc. and are borne by KKR Holdings.

Redeemable Noncontrolling Interests

Redeemable Noncontrolling Interests

Redeemable Noncontrolling Interests represent noncontrolling interests of certain investment funds and vehicles that are subject to periodic redemption by fund investors following the expiration of a specified period of time (typically one year), or may be withdrawn subject to a redemption fee during the period when capital may not be otherwise withdrawn. Fund investors interests subject to redemption as described above are presented as Redeemable Noncontrolling Interests in the accompanying consolidated statements of financial condition and presented as Net Income (Loss) Attributable to Redeemable Noncontrolling Interests in the accompanying consolidated statements of operations. There was no impact to Redeemable Noncontrolling Interests upon Conversion.

When redeemable amounts become legally payable to fund investors, they are classified as a liability and included in Accounts Payable, Accrued Expenses and Other Liabilities in the accompanying consolidated statements of financial condition. For all consolidated investment vehicles and funds in which redemption rights have not been granted, noncontrolling interests are presented within Stockholders' Equity in the accompanying consolidated statements of financial condition as noncontrolling interests.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Schedule of fees

For the three months ended March 31, 2019 and 2018, respectively, revenues consisted of the following:    

	Three Months Ended March 31,
	2019			2018
Management Fees	$	188,408		$	187,727
Fee Credits	(103,477		)	(29,053		)
Transaction Fees	188,203			158,653
Monitoring Fees	25,651			17,586
Incentive Fees	—			13,805
Expense Reimbursements	44,060			20,211
Oil and Gas Revenue	13,175			14,507
Consulting Fees	16,528			10,958
Total Fees and Other	372,548			394,394
Carried Interest	694,383			62,747
General Partner Capital Interest	120,549			15,465
Total Capital Allocation-Based Income	814,932			78,212
Total Revenues	$	1,187,480		$	472,606

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NET GAINS (LOSSES) FROM INVESTMENT ACTIVITIES (Tables)

3 Months Ended

Mar. 31, 2019

Investments, Debt and Equity Securities [Abstract]

Schedule of total net gains (losses) from investment activities

The following table summarizes total Net Gains (Losses) from Investment Activities:

	Three Months Ended March 31, 2019									Three Months Ended March 31, 2018
	Net Realized Gains (Losses)			Net Unrealized Gains (Losses)			Total			Net Realized Gains (Losses)			Net Unrealized Gains (Losses)			Total
Private Equity (1)	$	68,568		$	919,625		$	988,193		$	16,253		$	158,369		$	174,622
Credit (1)	(17,876		)	8,669			(9,207		)	1,263			58,150			59,413
Investments of Consolidated CFEs (1)	(10,530		)	233,357			222,827			(26,516		)	(48,403		)	(74,919		)
Real Assets (1)	29,547			89,581			119,128			12,957			59,297			72,254
Equity Method - Other (1)	20,133			156,906			177,039			9,210			135,604			144,814
Other Investments (1)	1,450			(30,361		)	(28,911		)	(244,199		)	86,365			(157,834		)
Foreign Exchange Forward Contracts      and Options (2)	25,454			54,789			80,243			(32,614		)	(63,118		)	(95,732		)
Securities Sold Short (2)	14,426			(80,772		)	(66,346		)	275,949			(29,874		)	246,075
Other Derivatives (2)	1,465			(13,405		)	(11,940		)	3,642			(8,223		)	(4,581		)
Debt Obligations and Other (3)	(2,856		)	(264,292		)	(267,148		)	14,435			94,253			108,688
Net Gains (Losses) From Investment      Activities	$	129,781		$	1,074,097		$	1,203,878		$	30,380		$	442,420		$	472,800

(1) See Note 4 "Investments."

(2) See Note 8 "Other Assets and Accounts Payable, Accrued Expenses and Other Liabilities."

(3) See Note 10 "Debt Obligations."

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INVESTMENTS (Tables)

3 Months Ended

Mar. 31, 2019

Investments [Abstract]

Summary of investments

Investments consist of the following:

	March 31, 2019		December 31, 2018
Private Equity	$	8,522,282	$	7,349,559
Credit	7,649,787		9,099,135
Investments of Consolidated CFEs	15,021,345		14,733,423
Real Assets	3,213,813		3,157,954
Equity Method - Other	4,472,692		4,212,874
Equity Method - Capital Allocation-Based Income	4,203,980		3,584,415
Other Investments	2,711,355		2,770,622
Total Investments	$	45,795,254	$	44,907,982

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FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

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:

	March 31, 2019
	Level I		Level II		Level III			Total
Private Equity	$	1,603,803	$	86,933	$	6,831,546		$	8,522,282
Credit	—		1,119,308		6,530,479			7,649,787
Investments of Consolidated CFEs	—		12,937,610		2,083,735			15,021,345
Real Assets	—		—		3,213,813			3,213,813
Equity Method - Other	219,566		47,938		1,650,179			1,917,683
Other Investments	501,523		145,882		2,063,950			2,711,355
Total Investments	2,324,892		14,337,671		22,373,702			39,036,265
Foreign Exchange Contracts and Options	—		205,900		—			205,900
Other Derivatives	—		1,786		31,134		(1)	32,920
Total Assets	$	2,324,892	$	14,545,357	$	22,404,836		$	39,275,085

	December 31, 2018
	Level I		Level II		Level III			Total
Private Equity	$	1,156,977	$	63,999	$	6,128,583		$	7,349,559
Credit	—		2,334,405		6,764,730			9,099,135
Investments of Consolidated CFEs	—		12,650,878		2,082,545			14,733,423
Real Assets	—		—		3,157,954			3,157,954
Equity Method - Other	245,225		43,943		1,503,022			1,792,190
Other Investments	480,192		173,844		2,116,586			2,770,622
Total Investments	1,882,394		15,267,069		21,753,420			38,902,883
Foreign Exchange Contracts and Options	—		177,264		—			177,264
Other Derivatives	—		3,879		37,116		(1)	40,995
Total Assets	$	1,882,394	$	15,448,212	$	21,790,536		$	39,121,142

(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:

	March 31, 2019
	Level I		Level II		Level III			Total
Securities Sold Short	$	582,608	$	—	$	—		$	582,608
Foreign Exchange Contracts and Options	—		17,200		—			17,200
Unfunded Revolver Commitments	—		—		56,792		(1)	56,792
Other Derivatives	—		23,769		17,200		(2)	40,969
Debt Obligations of Consolidated CFEs	—		12,557,821		1,914,571			14,472,392
Total Liabilities	$	582,608	$	12,598,790	$	1,988,563		$	15,169,961

	December 31, 2018
	Level I		Level II		Level III			Total
Securities Sold Short	$	344,124	$	—	$	—		$	344,124
Foreign Exchange Contracts and Options	—		60,749		—			60,749
Unfunded Revolver Commitments	—		—		52,066		(1)	52,066
Other Derivatives	—		18,440		17,200		(2)	35,640
Debt Obligations of Consolidated CFEs	—		12,081,771		1,876,783			13,958,554
Total Liabilities	$	344,124	$	12,160,960	$	1,946,049		$	14,451,133

(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.

(2) Includes options issued in connection with the acquisition of the equity interest in Marshall Wace and its affiliates in November 2015 to increase KKR's ownership interest in periodic increments. The options are valued using a Monte-Carlo simulation valuation methodology. Key inputs used in this methodology that require estimates include Marshall Wace's dividend yield, assets under management volatility and equity volatility. See Note 4 "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 three months ended March 31, 2019 and 2018, respectively: 

	For the Three Months Ended March 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	—			(1,598		)	—			—			—			(42,864		)	(44,462		)	—
Transfers In	—			—			—			—			—			—			—			—
Transfers Out	(56,029		)	—			—			—			—			—			(56,029		)	—
Asset Purchases / Debt Issuances	409,621			811,957			—			67,302			137,909			95,135			1,521,924			—
Sales / Paydowns	(99,603		)	(1,028,063		)	(38,295		)	(130,571		)	(41,126		)	(27,433		)	(1,365,091		)	—
Settlements	—			20,815			—			—			—			—			20,815			(2,731		)
Net Realized Gains (Losses)	68,568			(15,198		)	—			29,547			11,626			2,121			96,664			—
Net Unrealized Gains (Losses)	380,406			(24,806		)	39,485			89,581			38,748			(79,595		)	443,819			40,519
Change in Other Comprehensive Income	—			2,642			—			—			—			—			2,642			—
Balance, End of Period	$	6,831,546		$	6,530,479		$	2,083,735		$	3,213,813		$	1,650,179		$	2,063,950		$	22,373,702		$	1,914,571
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	$	442,672		$	(31,282	)	$	39,485		$	92,900		$	49,140		$	(79,347	)	$	513,568		$	40,519

	For the Three Months Ended March 31, 2018
	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	$	2,172,290		$	5,138,937		$	5,353,090		$	2,251,267		$	1,076,709		$	1,760,011		$	17,752,304		$	5,238,236
Transfers In / (Out) Due to Changes in Consolidation	—			—			—			—			—			—			—			—
Transfers In	—			—			—			—			—			—			—			—
Transfers Out	—			—			—			—			—			—			—			—
Asset Purchases / Debt Issuances	727,626			890,113			—			540,898			2,037			64,757			2,225,431			—
Sales / Paydowns	(35,245		)	(230,144		)	(11,541		)	(34,237		)	(31,939		)	(36,218		)	(379,324		)	—
Settlements	—			(53,825		)	—			—			—			—			(53,825		)	(11,541		)
Net Realized Gains (Losses)	15,312			11,581			—			8,354			9,348			8,892			53,487			—
Net Unrealized Gains (Losses)	208,428			77,715			(83,150		)	61,151			29,570			3,762			297,476			(88,528		)
Change in Other Comprehensive Income	—			(15,522		)	—			—			—			—			(15,522		)	—
Balance, End of Period	$	3,088,411		$	5,818,855		$	5,258,399		$	2,827,433		$	1,085,725		$	1,801,204		$	19,880,027		$	5,138,167
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	$	208,428		$	86,754		$	(83,150	)	$	61,151		$	34,928		$	10,442		$	318,553		$	(88,528	)

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 and debt obligations that are measured and reported at fair value and categorized within Level III as of March 31, 2019:

	Fair Value March 31, 2019			Valuation Methodologies	Unobservable Input(s) (1)	Weighted Average (2)	Range	Impact to  Valuation from an Increase in Input (3)
Private Equity	$	6,831,546
Private Equity	$	4,322,213		Inputs to market comparables and discounted cash flow and transaction price	Illiquidity Discount	6.1%	5.0% - 15.0%	Decrease
					Weight Ascribed to Market Comparables	30.5%	0.0% - 50.0%	(4)
					Weight Ascribed to Discounted Cash Flow	69.4%	0.0% - 100.0%	(5)
					Weight Ascribed to Transaction Price	0.1%	0.0% - 100.0%	(6)
				Market comparables	Enterprise Value/LTM EBITDA Multiple	14.2x	6.9x - 23.7x	Increase
					Enterprise Value/Forward EBITDA Multiple	12.4x	6.2x - 17.2x	Increase
				Discounted cash flow	Weighted Average Cost of Capital	10.7%	5.6% - 14.6%	Decrease
					Enterprise Value/LTM EBITDA Exit Multiple	12.4x	6.0x - 15.0x	Increase
Growth Equity	$	2,509,333		Inputs to market comparables, discounted cash flow and milestones	Illiquidity Discount	11.6%	5.0% - 20.0%	Decrease
					Weight Ascribed to Market Comparables	35.2%	0.0% - 100.0%	(4)
					Weight Ascribed to Discounted Cash Flow	15.3%	0.0% - 75.0%	(5)
					Weight Ascribed to Milestones	49.5%	0.0% - 100.0%	(6)
				Scenario Weighting	Base	61.4%	40.0% - 80.0%	Increase
					Downside	16.0%	5.0% - 30.0%	Decrease
					Upside	22.6%	10.0% - 45.0%	Increase
Credit	$	6,530,479		Yield Analysis	Yield	7.6%	3.5% - 23.4%	Decrease
					Net Leverage	2.1x	0.2x - 14.1x	Decrease
					EBITDA Multiple	9.7x	0.2x - 38.2x	Increase
Investments of Consolidated CFEs	$	2,083,735	(9)
Debt Obligations of Consolidated CFEs	$	1,914,571		Discounted cash flow	Yield	5.8%	2.6% - 15.5%	Decrease
Real Assets	$	3,213,813	(10)
Energy	$	1,711,998		Discounted cash flow	Weighted Average Cost of Capital	10.6%	9.5% - 14.1%	Decrease
					Average Price Per BOE (8)	$44.62	$38.98 - $47.75	Increase
Real Estate	$	1,294,181		Inputs to direct income capitalization and discounted cash flow	Weight Ascribed to Direct Income Capitalization	32.2%	0.0% - 100.0%	(7)
					Weight Ascribed to Discounted Cash Flow	67.8%	0.0% - 100.0%	(5)
				Direct income capitalization	Current Capitalization Rate	5.9%	0.4% - 9.5%	Decrease
				Discounted cash flow	Unlevered Discount Rate	8.0%	4.8% - 18.0%	Decrease
Equity Method - Other	$	1,650,179		Inputs to market comparables, discounted cash flow and transaction price	Illiquidity Discount	9.5%	5.0% - 15.0%	Decrease
					Weight Ascribed to Market Comparables	42.6%	0.0% - 75.0%	(4)
					Weight Ascribed to Discounted Cash Flow	39.4%	0.0% - 100.0%	(5)
					Weight Ascribed to Transaction Price	18.0%	0.0% - 100.0%	(6)
				Market comparables	Enterprise Value/LTM EBITDA Multiple	12.0x	6.9x - 15.2x	Increase
					Enterprise Value/Forward EBITDA Multiple	11.2x	6.2x - 13.2x	Increase
				Discounted cash flow	Weighted Average Cost of Capital	9.0%	5.6% - 13.0%	Decrease
					Enterprise Value/LTM EBITDA Exit Multiple	10.4x	6.0x - 12.5x	Increase

	Fair Value March 31, 2019			Valuation Methodologies	Unobservable Input(s) (1)	Weighted Average (2)	Range	Impact to  Valuation from an Increase in Input (3)
Other Investments	$	2,063,950	(11)	Inputs to market comparables, discounted cash flow and transaction price	Illiquidity Discount	10.2%	5.0% - 20.0%	Decrease
					Weight Ascribed to Market Comparables	38.1%	0.0% - 100.0%	(4)
					Weight Ascribed to Discounted Cash Flow	36.1%	0.0% - 100.0%	(5)
					Weight Ascribed to Transaction Price	25.8%	0.0% - 100.0%	(6)
				Market comparables	Enterprise Value/LTM EBITDA Multiple	10.3x	1.3x - 14.6x	Increase
					Enterprise Value/Forward EBITDA Multiple	9.1x	1.2x - 11.7x	Increase
				Discounted cash flow	Weighted Average Cost of Capital	17.2%	7.3% - 31.1%	Decrease
					Enterprise Value/LTM EBITDA Exit Multiple	8.9x	6.5x - 9.1x	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 88% liquids and 12% natural gas.

(9) KKR measures CMBS investments on the basis of the fair value of the financial liabilities of the CMBS vehicle. See Note 2 "Summary of Significant Accounting Policies."

(10) Includes one Infrastructure investment for $207.6 million that was valued using a discounted cash flow analysis. The significant inputs used included the weighted average cost of capital 6.8% and the enterprise value/LTM EBITDA Exit Multiple 10.0x.

(11) 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.

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FAIR VALUE OPTION (Tables)

3 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

Summary of disclosures of financial instruments for which the fair value option was elected

The following table summarizes the financial instruments for which the fair value option has been elected:

	March 31, 2019		December 31, 2018
Assets
Private Equity	$	3,235	$	2,977
Credit	4,519,000		4,950,819
Investments of Consolidated CFEs	15,021,345		14,733,423
Real Assets	309,105		310,399
Equity Method - Other	1,917,683		1,792,190
Other Investments	225,867		235,012
Total	$	21,996,235	$	22,024,820
Liabilities
Debt Obligations of Consolidated CFEs	$	14,472,392	$	13,958,554
Total	$	14,472,392	$	13,958,554

The following table presents the net realized and net unrealized gains (losses) on financial instruments for which the fair value option was elected:

	Three Months Ended March 31, 2019									Three Months Ended March 31, 2018
	Net Realized Gains (Losses)			Net Unrealized Gains (Losses)			Total			Net Realized Gains (Losses)			Net Unrealized Gains (Losses)			Total
Assets
Private Equity	$	—		$	194		$	194		$	71		$	316		$	387
Credit	(23,153		)	20,942			(2,211		)	(28,867		)	2,656			(26,211		)
Investments of Consolidated CFEs	(10,530		)	233,357			222,827			(26,516		)	(48,403		)	(74,919		)
Real Assets	703			2,436			3,139			428			(3,483		)	(3,055		)
Equity Method - Other	11,626			17,084			28,710			9,348			66,093			75,441
Other Investments	1,794			3,987			5,781			4,607			(7,878		)	(3,271		)
Total	$	(19,560	)	$	278,000		$	258,440		$	(40,929	)	$	9,301		$	(31,628	)
Liabilities
Debt Obligations of Consolidated CFEs	—			(252,281		)	(252,281		)	13,256			93,654			106,910
Total	$	—		$	(252,281	)	$	(252,281	)	$	13,256		$	93,654		$	106,910

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NET INCOME (LOSS) ATTRIBUTABLE TO KKR & CO. INC. PER SHARE OF CLASS A COMMON STOCK (Tables)

3 Months Ended

Mar. 31, 2019

Earnings Per Share [Abstract]

Schedule of basic and diluted Net Income (Loss) attributable to KKR & Co. per share of Class A common stock

For the three months ended March 31, 2019 and 2018, basic and diluted Net Income (Loss) attributable to KKR & Co. Inc. per share of Class A common stock were calculated as follows:

	Three Months Ended March 31,
	2019		2018
Net Income (Loss) Attributable to KKR & Co. Inc. Class A Common Stockholders	$	700,978	$	170,102
Excess of carrying value over consideration transferred on redemption of KFN 7.375% Series A LLC Preferred Shares	—		3,102
Net Income (Loss) Available to KKR & Co. Inc. Class A Common Stockholders	$	700,978	$	173,204

Basic Net Income (Loss) Per Share of Class A Common Stock
Weighted Average Shares of Class A Common Stock Outstanding - Basic	533,892,474		487,704,838
Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Class A Common Stock - Basic	$	1.31	$	0.36

Diluted Net Income (Loss) Per Share of Class A Common Stock
Weighted Average Shares of Class A Common Stock Outstanding - Basic	533,892,474		487,704,838
Weighted Average Unvested Shares of Class A Common Stock and Other Exchangeable Securities	16,153,966		48,213,436
Weighted Average Shares of Class A Common Stock Outstanding - Diluted	550,046,440		535,918,274
Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Class A Common Stock - Diluted	$	1.27	$	0.32

Schedule of KKR Holdings shares excluded from the calculation of diluted Net Income (Loss) attributable to KKR & Co. L.P. per share of Class A Common Stock - Diluted

	Three Months Ended March 31,
	2019	2018
Weighted Average KKR Holdings Units	298,858,418	335,016,218

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

3 Months Ended

Mar. 31, 2019

OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES

Schedule of other assets

Other Assets consist of the following:

	March 31, 2019		December 31, 2018
Unsettled Investment Sales (1)	$	129,141	$	101,789
Receivables	64,802		27,258
Due from Broker (2)	485,127		396,512
Oil & Gas Assets, net (3)	210,865		225,256
Deferred Tax Assets, net	408,148		538,161
Interest Receivable	231,445		241,547
Fixed Assets, net (4)	466,264		451,206
Foreign Exchange Contracts and Options (5)	205,900		177,264
Intangible Assets, net (6)	9,125		9,863
Goodwill (7)	83,500		83,500
Derivative Assets	32,920		40,995
Deposits	7,284		7,299
Prepaid Taxes	73,054		69,165
Prepaid Expenses	27,106		23,551
Operating Lease Right of Use Assets (8)	146,165		—
Deferred Financing Costs	13,458		13,871
Other	93,498		129,455
Total	$	2,687,802	$	2,536,692

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

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

(3) Includes proved and unproved oil and natural gas properties under the successful efforts method of accounting, which is net of impairment write-downs, accumulated depreciation, depletion and amortization. Depreciation, depletion and amortization amounted to $13.8 million and $7.1 million for the three months ended March 31, 2019 and 2018, respectively.

(4) Net of accumulated depreciation and amortization of $118.0 million and $113.5 million as of March 31, 2019 and December 31, 2018, respectively. Depreciation and amortization expense of $4.4 million and $3.7 million for the three months ended March 31, 2019 and 2018, respectively, is included in General, Administrative and Other in the accompanying consolidated statements of operations.

(5) Represents derivative financial instruments used to manage foreign exchange risk arising from certain foreign currency 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 consolidated statements of operations. See Note 3 "Net Gains (Losses) from Investment Activities" for the net changes in fair value associated with these instruments.

(6) Net of accumulated amortization of $63.5 million as of March 31, 2019 and December 31, 2018. Amortization expense of $0.5 million and $5.0 million for the three months ended March 31, 2019 and 2018, respectively, is included in General, Administrative and Other in the accompanying consolidated statements of operations.

(7) As of March 31, 2019, the carrying value of goodwill is recorded and assessed for impairment at the reporting unit.

(8) KKR’s non-cancelable operating leases consist of leases for office space around the world. KKR is the lessee under the terms of the operating leases. For the three months ended March 31, 2019, the operating lease cost was $11.8 million.

Schedule of accounts payable, accrued expenses and other liabilities

Accounts Payable, Accrued Expenses and Other Liabilities consist of the following:

	March 31, 2019		December 31, 2018
Amounts Payable to Carry Pool (1)	$	1,089,045	$	922,977
Unsettled Investment Purchases (2)	507,731		541,165
Securities Sold Short (3)	582,608		344,124
Derivative Liabilities	40,969		35,640
Accrued Compensation and Benefits	166,294		107,887
Interest Payable	216,348		212,969
Foreign Exchange Contracts and Options (4)	17,200		60,749
Accounts Payable and Accrued Expenses	108,170		130,554
Taxes Payable	55,355		24,453
Uncertain Tax Positions	67,374		66,775
Unfunded Revolver Commitments	56,792		52,066
Operating Lease Liabilities (5)	152,073		—
Other Liabilities	219,069		244,631
Total	$	3,279,028	$	2,743,990

(1) Represents the amount of carried interest payable to principals, professionals and other individuals with respect to KKR's active funds and co-investment vehicles that provide for carried interest.

(2) Represents amounts owed to third parties for investment purchases for which cash settlement has not occurred.

(3) 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 consolidated statements of operations. See Note 3 "Net Gains (Losses) from Investment Activities" for the net changes in fair value associated with these instruments.

(4) Represents derivative financial instruments used to manage foreign exchange risk arising from certain foreign currency 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 consolidated statements of operations. See Note 3 "Net Gains (Losses) from Investment Activities" for the net changes in fair value associated with these instruments.

(5) KKR’s operating leases have remaining lease terms that range from one year to 14 years, some of which include options to extend the leases for up to three years. For the three months ended March 31, 2019, the weighted average remaining lease term and weighted average discount rate were 4.78 years and 2.64%, respectively.

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VARIABLE INTEREST ENTITIES (Tables)

3 Months Ended

Mar. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of maximum exposure to loss, before allocations to the carry pool, if any, for those VIEs in which entity is determined not to be the primary beneficiary but in which it has a variable interest

As of March 31, 2019 and December 31, 2018, the maximum exposure to loss, before allocations to the carry pool and noncontrolling interests, if any, for those VIEs in which KKR is determined not to be the primary beneficiary but in which it has a variable interest is as follows:

	March 31, 2019		December 31, 2018
Investments	$	4,203,980	$	3,610,502
Due from (to) Affiliates, net	490,990		410,489
Maximum Exposure to Loss	$	4,694,970	$	4,020,991

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DEBT OBLIGATIONS (Tables)

3 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

Schedule of borrowings

KKR's borrowings consisted of the following:

	March 31, 2019							December 31, 2018
	Financing Available		Borrowing Outstanding		Fair Value			Financing Available		Borrowing Outstanding		Fair Value
Revolving Credit Facilities:
Corporate Credit Agreement	$	1,000,000	$	—	$	—		$	1,000,000	$	—	$	—
KCM Credit Agreement	434,395		—		—			451,338		—		—
KCM Short-Term Credit Agreement	750,000		—		—			750,000		—		—
Notes Issued:
KKR Issued 6.375% Notes Due 2020 (1)	—		499,122		523,900		(14)	—		498,975		523,500		(14)
KKR Issued 5.500% Notes Due 2043 (2)	—		491,921		537,235		(14)	—		491,836		508,615		(14)
KKR Issued 5.125% Notes Due 2044 (3)	—		990,831		1,030,140		(14)	—		990,740		974,320		(14)
KKR Issued 0.509% Notes Due 2023 (4)	—		224,386		223,695		(14)	—		226,895		227,298		(14)
KKR Issued 0.764% Notes Due 2025 (5)	—		44,435		45,402		(14)	—		44,923		45,161		(14)
KKR Issued 1.595% Notes Due 2038 (6)	—		91,767		96,510		(14)	—		92,817		94,568		(14)
KFN Issued 5.500% Notes Due 2032 (7)	—		493,689		502,524			—		493,568		496,359
KFN Issued 5.200% Notes Due 2033 (8)	—		118,321		117,152			—		118,291		115,582
KFN Issued 5.400% Notes Due 2033 (9)	—		68,705		69,689			—		68,683		68,780
KFN Issued Junior Subordinated Notes (10)	—		232,471		197,478			—		232,142		203,135
Other Debt Obligations:
Financing Facilities of Consolidated Funds and Other (11)	4,216,970		4,534,329		4,534,329			3,840,877		5,123,768		5,123,768
CLO Senior Secured Notes (12)	—		12,155,621		12,155,621			—		11,667,970		11,667,970
CLO Subordinated Notes (12)	—		402,200		402,200			—		413,801		413,801
CMBS Debt Obligations (13)	—		1,914,571		1,914,571			—		1,876,783		1,876,783
	$	6,401,365	$	22,262,369	$	22,350,446		$	6,042,215	$	22,341,192	$	22,339,640

(1) $500 million aggregate principal amount of 6.375% senior notes of KKR due 2020. Borrowing outstanding is presented net of (i) unamortized note discount and (ii) unamortized debt issuance costs of $0.6 millionand $0.7 million as of March 31, 2019 and December 31, 2018, respectively.

(2) $500 million aggregate principal amount of 5.500% senior notes of KKR due 2043. Borrowing outstanding is presented net of (i) unamortized note discount and (ii) unamortized debt issuance costs of $3.5 millionand $3.6 million as of March 31, 2019 and December 31, 2018, respectively.

(3) $1.0 billion aggregate principal amount of 5.125% senior notes of KKR due 2044. Borrowing outstanding is presented net of (i) unamortized note discount (net of premium) and (ii) unamortized debt issuance costs of $7.9 million and $8.0 million as of March 31, 2019 and December 31, 2018, respectively.

(4) ¥25 billion (or $225.6 million) aggregate principal amount of 0.509% senior notes of KKR due 2023. Borrowing outstanding is presented net of unamortized debt issuance costs of $1.2 million and $1.3 million as of March 31, 2019 and December 31, 2018, respectively. These senior notes are denominated in Japanese Yen ("JPY").

(5) ¥5.0 billion (or $45.1 million) aggregate principal amount of 0.764% senior notes of KKR due 2025. Borrowing outstanding is presented net of unamortized debt issuance costs of $0.7 million and $0.7 million as of March 31, 2019 and December 31, 2018, respectively. These senior notes are denominated in JPY.

(6) ¥10.3 billion (or $92.9 million) aggregate principal amount of 1.595% senior notes of KKR due 2038. Borrowing outstanding is presented net of unamortized debt issuance costs of $1.2 million and $1.2 million as of March 31, 2019 and December 31, 2018, respectively. These senior notes are denominated in JPY.

(7) KKR consolidates KFN and thus reports KFN's outstanding $500.0 million aggregate principal amount of 5.500% senior notes due 2032. Borrowing outstanding is presented net of (i) unamortized note discount and (ii) unamortized debt issuance costs of $4.3 million and $4.4 million as of March 31, 2019 and December 31, 2018, respectively. These debt obligations are classified as Level III within the fair value hierarchy and valued using the same valuation methodologies as KKR's Level III credit investments.

(8) KKR consolidates KFN and thus reports KFN's outstanding $120.0 million aggregate principal amount of 5.200% senior notes due 2033. Borrowing outstanding is presented net of unamortized debt issuance costs of $1.7 million and $1.7 million as of March 31, 2019 and December 31, 2018, respectively. These debt obligations are classified as Level III within the fair value hierarchy and valued using the same valuation methodologies as KKR's Level III credit investments.

(9) KKR consolidates KFN and thus reports KFN's outstanding $70.0 million aggregate principal amount of 5.400% senior notes due 2033. Borrowing outstanding is presented net of unamortized debt issuance costs of $1.3 million and $1.3 million as of March 31, 2019 and December 31, 2018, respectively. These debt obligations are classified as Level III within the fair value hierarchy and valued using the same valuation methodologies as KKR's Level III credit investments.

(10) KKR consolidates KFN and thus reports KFN's outstanding $258.5 million aggregate principal amount of junior subordinated notes. The weighted average interest rate is 5.2% and 5.0% and the weighted average years to maturity is 17.5 years and 17.8 years as of March 31, 2019 and December 31, 2018, respectively. These debt obligations are classified as Level III within the fair value hierarchy and valued using the same valuation methodologies as KKR's Level III credit investments.

(11) Amounts include (i) borrowings at consolidated investment funds relating to financing arrangements with major financial institutions, generally to enable such investment funds to make investments prior to or without receiving capital from fund limited partners and (ii) borrowings by certain majority-owned investment vehicles that are collateralized only by the investments and assets they own. The weighted average interest rate is 4.9% and 4.6% as of March 31, 2019 and December 31, 2018, respectively. In addition, the weighted average years to maturity is 3.6 years and 3.3 years as of March 31, 2019 and December 31, 2018, respectively.

(12) CLO debt obligations are carried at fair value and are classified as Level II within the fair value hierarchy. See Note 5 "Fair Value Measurements."

(13) CMBS debt obligations are carried at fair value and are classified as Level III within the fair value hierarchy. See Note 5 "Fair Value Measurements."

(14) The notes are classified as Level II within the fair value hierarchy and fair value is determined by third party broker quotes.

Schedule of debt obligations of consolidated CLOs

As of March 31, 2019, debt obligations of consolidated CFEs consisted of the following:     

	Borrowing Outstanding		Weighted Average Interest Rate		Weighted Average Remaining Maturity in Years
Senior Secured Notes of Consolidated CLOs	$	12,155,621	3.4	%	11.5
Subordinated Notes of Consolidated CLOs	402,200		(1)		11.7
Debt Obligations of Consolidated CMBS Vehicles	1,914,571		4.0	%	24.5
	$	14,472,392

(1) The subordinated notes do not have contractual interest rates but instead receive a pro rata amount of the net distributions from the excess cash flows of the respective CLO vehicle. Accordingly, weighted average borrowing rates for the subordinated notes are based on cash distributions during the period, if any.

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EQUITY BASED COMPENSATION (Tables)

3 Months Ended

Mar. 31, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of expense associated with equity based compensation

The following table summarizes the expense associated with equity-based compensation for the three months ended March 31, 2019 and 2018, respectively.

	Three Months Ended March 31,
	2019		2018
Equity Incentive Plans	$	54,885	$	67,796
KKR Holdings Principal Awards	23,666		27,282
Total (1)	$	78,551	$	95,078

(1) Includes $(0.3) million and $4.3 million of equity based compensation for the three months endedMarch 31, 2019 and 2018 related to employees of equity method investees. Such amounts are included in Net Gains (Losses) from Investment Activities in the consolidated statements of operations.

Summary of information regarding the discount for the lack of participation rights in the expected dividends for shares granted

The following table presents information regarding the discount for the lack of participation rights in the expected dividends for shares granted subsequent to December 31, 2015:

Date of Grant	Discount per share (1)
January 1, 2016 to December 31, 2016	$	0.64
January 1, 2017 to December 31, 2017	$	0.68
January 1, 2018 to June 30, 2018	$	0.68
July 1, 2018 to Present	$	0.50

(1) Represents the annual discount for the lack of participation rights on expected dividends. The total discount on any given tranche of unvested shares is calculated as the discount per share multiplied by the number of years in the applicable vesting period.

Summary of significant assumptions used to estimate grant date fair value of Market Condition Awards

Below is a summary of the significant assumptions used to estimate the grant date fair value of the Market Condition Awards:

Closing KKR share price as of valuation date	$19.90
Risk Free Rate	2.02	%
Volatility	25.00	%
Dividend Yield	3.42	%
Expected Cost of Equity	11.02	%

Schedule of unrecognized expense of equity incentive plan awards expected to be recognized

As of March 31, 2019, there was approximately $340.4 million of total estimated unrecognized expense related to unvested awards, including Market Condition Awards. That cost is expected to be recognized as follows:

Year	Unrecognized Expense  (in millions)
Remainder of 2019	$	132.8
2020	131.8
2021	58.5
2022	16.4
2023	0.9
Total	$	340.4

Schedule of unvested awards granted under equity incentive plan

A summary of the status of unvested awards granted under the Equity Incentive Plans, excluding Market Condition Awards as described above, from January 1, 2019 through March 31, 2019 is presented below:

	Shares		Weighted Average Grant Date Fair Value
Balance, January 1, 2019	33,400,183		$	16.23
Granted	50,511		18.96
Vested	(15,440	)	15.83
Forfeitures	(604,519	)	17.43
Balance, March 31, 2019	32,830,735		$	16.21

Schedule of remaining vesting tranches of awards granted under the equity incentive plan

A summary of the remaining vesting tranches of awards granted under the Equity Incentive Plans is presented below:

Vesting Date	Shares
April 1, 2019	8,917,856
October 1, 2019	4,733,416
April 1, 2020	7,135,649
October 1, 2020	3,607,073
April 1, 2021	4,093,420
October 1, 2021	2,134,028
April 1, 2022	916,731
October 1, 2022	1,201,390
October 1, 2023	91,172
	32,830,735

Schedule of unrecognized expense of unvested KKR Holdings awards expected to be recognized

As of March 31, 2019, there was approximately $230.3 million of estimated unrecognized expense related to unvested KKR Holdings awards. That cost is expected to be recognized as follows:

Year	Unrecognized Expense  (in millions)
Remainder of 2019	$	70.7
2020	86.9
2021	47.2
2022	25.5
Total	$	230.3

Schedule of unvested holding awards granted

A summary of the status of unvested awards granted under the KKR Holdings Plan from January 1, 2019 through March 31, 2019 is presented below:

	Units		Weighted Average Grant Date Fair Value
Balance, January 1, 2019	24,123,993		$	14.42
Granted	—		—
Vested	—		—
Forfeitures	(270,000	)	16.28
Balance, March 31, 2019	23,853,993		$	14.40

Schedule of remaining vesting tranches of holding awards granted

A summary of the remaining vesting tranches of awards granted under the KKR Holdings Plan is presented below:

Vesting Date	Units
April 1, 2019	229,514
May 1, 2019	3,590,000
October 1, 2019	2,455,000
April 1, 2020	124,479
May 1, 2020	3,590,000
October 1, 2020	2,940,000
May 1, 2021	3,590,000
October 1, 2021	3,425,000
October 1, 2022	3,910,000
	23,853,993

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RELATED PARTY TRANSACTIONS (Tables)

3 Months Ended

Mar. 31, 2019

Related Party Transactions [Abstract]

Schedule of due from and to affiliates

Due from Affiliates consists of:

	March 31, 2019		December 31, 2018
Amounts due from portfolio companies	$	93,855	$	82,204
Amounts due from unconsolidated investment funds	637,501		568,211
Amounts due from related entities	2,839		6,774
Due from Affiliates	$	734,195	$	657,189

Due to Affiliates consists of:

	March 31, 2019		December 31, 2018
Amounts due to KKR Holdings in connection with the tax receivable agreement	$	108,270	$	117,862
Amounts due to unconsolidated investment funds	146,511		157,722
Due to Affiliates	$	254,781	$	275,584

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SEGMENT REPORTING (Tables)

3 Months Ended

Mar. 31, 2019

Segment Reporting [Abstract]

Schedule of financial data of the entity's reportable segments

The following table sets forth information regarding KKR's segment results:

	As of and for the Three Months Ended
	March 31, 2019			March 31, 2018
Segment Revenues
Fees and Other, Net
Management Fees	$	292,296		$	251,585
Transaction Fees	186,727			156,845
Monitoring Fees	25,651			17,530
Fee Credits	(107,416		)	(43,774		)
Total Fees and Other, Net	397,258			382,186
Realized Performance Income (Loss)
Carried Interest	330,345			202,555
Incentive Fees	19,537			16,407
Total Realized Performance Income (Loss)	349,882			218,962
Realized Investment Income (Loss)
Net Realized Gains (Losses)	44,712			7,875
Interest Income and Dividends	58,207			72,577
Total Realized Investment Income (Loss)	102,919			80,452
Total Segment Revenues	$	850,059		$	681,600
Segment Expenses
Compensation and Benefits (1)	340,286			300,480
Occupancy and Related Charges	13,957			13,583
Other Operating Expenses	74,910			57,905
Total Segment Expenses	$	429,153		$	371,968
Segment Operating Earnings	420,906			309,632
Interest Expense	44,130			50,192
Preferred Dividends	8,341			8,341
Income (Loss) Attributable to Noncontrolling Interests	359			1,203
Income Taxes Paid	53,993			14,168
After-tax Distributable Earnings	$	314,083		$	235,728
Segment Assets	$	18,770,564		$	16,243,603
Segment Liabilities	$	4,100,354		$	3,736,797
Segment Book Value	$	14,148,206		$	11,983,289

(1) Includes equity-based compensation of $54.9 million and $67.8 million for the three months endedMarch 31, 2019 and 2018, respectively.

Segment revenues disaggregated by business line

The following tables provide KKR's segment revenues on a disaggregated basis by business line:

	Three Months Ended March 31, 2019
	Private Markets			Public Markets			Capital Markets		Principal Activities		Total
Fees and Other, Net
Management Fees	$	183,221		$	109,075		$	—	$	—	$	292,296
Transaction Fees	99,017			27,456			60,254		—		186,727
Monitoring Fees	25,651			—			—		—		25,651
Fee Credits	(82,342		)	(25,074		)	—		—		(107,416		)
Total Fees and Other, Net	225,547			111,457			60,254		—		397,258
Realized Performance Income (Loss)
Carried Interest	330,345			—			—		—		330,345
Incentive Fees	675			18,862			—		—		19,537
Total Realized Performance Income (Loss)	331,020			18,862			—		—		349,882
Realized Investment Income (Loss)
Net Realized Gains (Losses)	—			—			—		44,712		44,712
Interest Income and Dividends	—			—			—		58,207		58,207
Total Realized Investment Income (Loss)	—			—			—		102,919		102,919
Total	$	556,567		$	130,319		$	60,254	$	102,919	$	850,059

	Three Months Ended March 31, 2018
	Private Markets			Public Markets			Capital Markets		Principal Activities		Total
Fees and Other, Net
Management Fees	$	158,190		$	93,395		$	—	$	—	$	251,585
Transaction Fees	46,689			2,558			107,598		—		156,845
Monitoring Fees	17,530			—			—		—		17,530
Fee Credits	(41,343		)	(2,431		)	—		—		(43,774		)
Total Fees and Other, Net	181,066			93,522			107,598		—		382,186
Realized Performance Income (Loss)
Carried Interest	202,555			—			—		—		202,555
Incentive Fees	—			16,407			—		—		16,407
Total Realized Performance Income (Loss)	202,555			16,407			—		—		218,962
Realized Investment Income (Loss)
Net Realized Gains (Losses)	—			—			—		7,875		7,875
Interest Income and Dividends	—			—			—		72,577		72,577
Total Realized Investment Income (Loss)	—			—			—		80,452		80,452
Total	$	383,621		$	109,929		$	107,598	$	80,452	$	681,600

Schedule of reconciliation of financial information from total reportable segments to the most directly comparable financial measures calculated and presented in accordance with GAAP

The following tables reconcile the most directly comparable financial measures calculated and presented in accordance with GAAP to KKR's segment information:

Revenues

	Three Months Ended
	March 31, 2019		March 31, 2018
Total GAAP Revenues	$	1,187,480	$	472,606
Add: Management Fees - Consolidated Funds and Other	121,949		64,596
Deduct: Fee Credits - Consolidated Funds	3,939		14,721
Deduct: Capital Allocation-Based Income (GAAP)	814,932		78,212
Add: Segment Realized Carried Interest	330,345		202,555
Add: Segment Realized Investment Income (Loss)	102,919		80,452
Deduct: Revenue Earned by Other Consolidated Entities	29,703		25,465
Deduct: Expense Reimbursements	44,060		20,211
Total Segment Revenues	$	850,059	$	681,600

Expenses

	Three Months Ended
	March 31, 2019			March 31, 2018
Total GAAP Expenses	$	728,767		$	436,601
Deduct: Equity-based and Other Compensation - KKR Holdings L.P.	23,743			32,695
Deduct: Segment Unrealized Performance Income Compensation	159,880			(43,123		)
Deduct: Amortization of Intangibles	535			5,030
Deduct: Reimbursable Expenses	52,032			26,093
Deduct: Operating Expenses relating to Other Consolidated Entities	51,818			44,309
Add: Other	(11,606		)	371
Total Segment Expenses	$	429,153		$	371,968

Net Income (Loss) Attributable to KKR & Co. Inc. Class A Common Stockholders

	Three Months Ended
	March 31, 2019		March 31, 2018
GAAP Net Income (Loss) Attributable to KKR & Co. Inc. Class A Common Stockholders	$	700,978	$	170,102
Add: Net Income (Loss) Attributable to Noncontrolling Interests held by KKR Holdings L.P.	481,368		121,002
Add: Equity-based and Other Compensation - KKR Holdings L.P.	23,118		32,695
Add: Amortization of Intangibles and Other, net	56,153		47,709
Deduct: Unrealized Carried Interest	401,612		(111,732		)
Deduct: Net Unrealized Gains (Losses)	819,402		207,862
Add: Unrealized Performance Income Compensation	159,880		(43,123		)
Add: Income Tax Provision	167,593		17,641
Deduct: Income Taxes Paid	53,993		14,168
After-tax Distributable Earnings	$	314,083	$	235,728

Reconciliation of assets from segment to consolidated

Assets

	As of March 31,
	2019			2018
GAAP Assets	$	52,004,019		$	47,579,153
Impact of Consolidation of Investment Vehicles and Other Entities	(31,561,635		)	(29,972,064		)
Carry Pool Reclassification	(1,089,045		)	(1,176,070		)
Other Reclassifications	(582,775		)	—
Impact of KKR Management Holdings Corp.	—			(187,416		)
Segment Assets (1)	$	18,770,564		$	16,243,603

Reconciliation of liabilities and stockholders' equity from segment to consolidated

Liabilities

	As of March 31,
	2019			2018
GAAP Liabilities	$	25,796,178		$	25,810,215
Impact of Consolidation of Investment Vehicles and Other Entities	(20,024,004		)	(20,775,320		)
Carry Pool Reclassification	(1,089,045		)	(1,176,070		)
Other Reclassifications	(582,775		)	—
Impact of KKR Management Holdings Corp.	—			(122,028		)
Segment Liabilities (1)	$	4,100,354		$	3,736,797

Stockholders' Equity

	As of March 31,
	2019			2018
KKR & Co. Inc. Stockholders' Equity - Common Stockholders	$	8,839,817		$	6,918,185
Impact of Consolidation of Investment Vehicles and Other Entities	246,793			254,777
Other Reclassifications	(17,446		)	(17,446		)
Noncontrolling Interests Held by KKR Holdings L.P.	5,079,042			4,893,161
Impact of KKR Management Holdings Corp.	—			(65,388		)
Segment Book Value (1)	$	14,148,206		$	11,983,289

(1) As of March 31, 2019, KKR's segment assets, liabilities, and book value reflect KKR's tax assets and liabilities prepared under GAAP.

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EQUITY (Tables)

3 Months Ended

Mar. 31, 2019

Equity [Abstract]

Schedule of calculation of noncontrolling interests

The following table presents the calculation of total noncontrolling interests:

	Three Months Ended March 31, 2019
	Noncontrolling Interests in Consolidated Entities			Noncontrolling Interests Held by KKR Holdings			Total Noncontrolling Interests
Balance at the beginning of the period	$	10,984,910		$	4,625,448		$	15,610,358
Net income (loss) attributable to noncontrolling interests (1)	436,359			481,368			917,727
Other comprehensive income (loss), net of tax (2)	2,511			121			2,632
Exchange of KKR Holdings Units to Class A Common Stock (3)	—			(7,094		)	(7,094		)
Equity-based and other non-cash compensation	—			23,118			23,118
Capital contributions	1,194,792			23			1,194,815
Capital distributions	(812,144		)	(43,942		)	(856,086		)
Balance at the end of the period	$	11,806,428		$	5,079,042		$	16,885,470

(1) Refer to the table below for calculation of net income (loss) attributable to noncontrolling interests held by KKR Holdings.

(2) With respect to noncontrolling interests held by KKR Holdings, calculated on a pro rata basis based on the weighted average KKR Group Partnership Units held by KKR Holdings during the reporting period. 

(3) Calculated based on the proportion of KKR Holdings units exchanged for KKR & Co. Inc. Class A common stock during the reporting period. The exchange agreement with KKR Holdings provides for the exchange of KKR Group Partnership Units held by KKR Holdings for KKR & Co. Inc. Class A common stock.

Schedule of net income (loss) attributable to noncontrolling interests held by KKR Holdings

The following table presents net income (loss) attributable to noncontrolling interests held by KKR Holdings:

	Three Months Ended March 31,
	2019		2018
Net income (loss)	$	1,627,046	$	602,894
Less: Net income (loss) attributable to Redeemable Noncontrolling Interests	—		25,674
Less: Net income (loss) attributable to Noncontrolling Interests in consolidated entities	436,359		277,775
Less: Preferred Stock Dividends	8,341		8,341
Plus: Income tax expense (benefit) attributable to KKR & Co. Inc.	158,962		6,068
Net income (loss) attributable to KKR & Co. Inc. Class A Common Stockholders and KKR Holdings	$	1,341,308	$	297,172
Net income (loss) attributable to Noncontrolling Interests held by KKR Holdings	$	481,368	$	121,002

Redeemable noncontrolling interests

The following table presents the rollforward of Redeemable Noncontrolling Interests:

	For the Three Months Ended March 31,
	2019
Balance at the beginning of the period	$	1,122,641
Changes in consolidation	(1,122,641		)
Balance at the end of the period	$	—

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COMMITMENTS AND CONTINGENCIES (Tables)

3 Months Ended

Mar. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Schedule of minimum future lease payments

As of March 31, 2019, the approximate aggregate minimum future lease payments, net of sublease income, required on the operating leases are as follows:

April 2019 - March 2020	$	50,312
April 2020 - March 2022	66,055
April 2022 - March 2024	26,828
April 2024 and thereafter	18,855
Total minimum payments required	162,050
Less: Imputed Interest	(9,977		)
Total operating lease liabilities	$	152,073

Schedule of minimum future lease payments

As of December 31, 2018, the approximate aggregate minimum future lease payments, net of sublease income, required on the operating leases are as follows:

2019	$	50,649
2020 - 2021	69,263
2022 - 2023	29,687
2024 and thereafter	76,332
Total minimum payments required (1)	$	225,931

(1) Table depicts aggregate minimum future lease payments under ASC 840.

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ORGANIZATION - Narrative (Details) - KKR Group Partnerships	3 Months Ended
	Mar. 31, 2019
Subsidiary of Limited Liability Company or Limited Partnership [Line Items]
Percentage of economic interest held by parent entity	64.10%
KKR Holdings
Subsidiary of Limited Liability Company or Limited Partnership [Line Items]
Percentage owned by KKR Holdings L.P.	35.90%

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair Value Measurement (Details)	3 Months Ended
	Mar. 31, 2019 methodology
Accounting Policies [Abstract]
Number of valuation methodologies used to determine fair value of investments	2
Maximum
Fair Value Measurements
Weighting percentage of methodology used to determine fair value of investments (up to 100%)	100.00%
Illiquidity Discount | Minimum
Fair Value Measurements
Private equity, measurement input	0.05

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenues (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Fees and Commissions [Line Items]
Fees and Other	$ 372,548	$ 394,394
Carried Interest	694,383	62,747
General Partner Capital Interest	120,549	15,465
Total Capital Allocation-Based Income	814,932	78,212
Total Revenues	$ 1,187,480	472,606
Incentive fee, low end of range (as a percent)	5.00%
Incentive fee, high end of range (as a percent)	20.00%
Measurement period (in years)	1 year
Reportable segments
Fees and Commissions [Line Items]
Fees and Other	$ 397,258	382,186
Carried Interest	330,345	202,555
Total Revenues	$ 850,059	681,600
Minimum | Reportable segments
Fees and Commissions [Line Items]
Fee Credits as a percentage of monitoring and transaction fees net of fund-related expenses	80.00%
Maximum | Reportable segments
Fees and Commissions [Line Items]
Fee Credits as a percentage of monitoring and transaction fees net of fund-related expenses	100.00%
Management Fees
Fees and Commissions [Line Items]
Fees and Other	$ 188,408	187,727
Management Fees | Reportable segments
Fees and Commissions [Line Items]
Fees and Other	292,296	251,585
Fee Credits
Fees and Commissions [Line Items]
Fees and Other	(103,477)	(29,053)
Fee Credits | Reportable segments
Fees and Commissions [Line Items]
Fees and Other	(107,416)	(43,774)
Transaction Fees
Fees and Commissions [Line Items]
Fees and Other	188,203	158,653
Transaction Fees | Reportable segments
Fees and Commissions [Line Items]
Fees and Other	186,727	156,845
Monitoring Fees
Fees and Commissions [Line Items]
Fees and Other	25,651	17,586
Monitoring Fees | Reportable segments
Fees and Commissions [Line Items]
Fees and Other	25,651	17,530
Incentive Fees
Fees and Commissions [Line Items]
Fees and Other	0	13,805
Expense Reimbursements
Fees and Commissions [Line Items]
Fees and Other	44,060	20,211
Oil and Gas Revenue
Fees and Commissions [Line Items]
Fees and Other	13,175	14,507
Consulting Fees
Fees and Commissions [Line Items]
Fees and Other	$ 16,528	$ 10,958

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recently Issued Accounting Pronouncements (Details) - USD ($)	Mar. 31, 2019	Jan. 01, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
ROU assets	$ 146,165,000
Total operating lease liabilities	$ 152,073,000
Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
ROU assets		$ 153,300,000
Total operating lease liabilities		162,900,000
Accounting Standards Update 2016-02 | Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative-effect adjustment		$ 0

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NET GAINS (LOSSES) FROM INVESTMENT ACTIVITIES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Gain (Loss) on Securities [Line Items]
Net Realized Gains (Losses)	$ 129,781	$ 30,380
Net Unrealized Gains (Losses)	1,074,097	442,420
Total	1,203,878	472,800
Private Equity
Gain (Loss) on Securities [Line Items]
Net Realized Gains (Losses)	68,568	16,253
Net Unrealized Gains (Losses)	919,625	158,369
Total	988,193	174,622
Credit
Gain (Loss) on Securities [Line Items]
Net Realized Gains (Losses)	(17,876)	1,263
Net Unrealized Gains (Losses)	8,669	58,150
Total	(9,207)	59,413
Investments of Consolidated CFEs
Gain (Loss) on Securities [Line Items]
Net Realized Gains (Losses)	(10,530)	(26,516)
Net Unrealized Gains (Losses)	233,357	(48,403)
Total	222,827	(74,919)
Real Assets
Gain (Loss) on Securities [Line Items]
Net Realized Gains (Losses)	29,547	12,957
Net Unrealized Gains (Losses)	89,581	59,297
Total	119,128	72,254
Equity Method - Other
Gain (Loss) on Securities [Line Items]
Net Realized Gains (Losses)	20,133	9,210
Net Unrealized Gains (Losses)	156,906	135,604
Total	177,039	144,814
Other Investments
Gain (Loss) on Securities [Line Items]
Net Realized Gains (Losses)	1,450	(244,199)
Net Unrealized Gains (Losses)	(30,361)	86,365
Total	(28,911)	(157,834)
Foreign Exchange Forward Contracts and Options
Gain (Loss) on Securities [Line Items]
Net Realized Gains (Losses)	25,454	(32,614)
Net Unrealized Gains (Losses)	54,789	(63,118)
Total	80,243	(95,732)
Securities Sold Short
Gain (Loss) on Securities [Line Items]
Net Realized Gains (Losses)	14,426	275,949
Net Unrealized Gains (Losses)	(80,772)	(29,874)
Total	(66,346)	246,075
Other Derivatives
Gain (Loss) on Securities [Line Items]
Net Realized Gains (Losses)	1,465	3,642
Net Unrealized Gains (Losses)	(13,405)	(8,223)
Total	(11,940)	(4,581)
Debt Obligations and Other
Gain (Loss) on Securities [Line Items]
Net Realized Gains (Losses)	(2,856)	14,435
Net Unrealized Gains (Losses)	(264,292)	94,253
Total	$ (267,148)	$ 108,688

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INVESTMENTS - Summary of Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Investments
Investments owned, at fair value	$ 45,795,254	$ 44,907,982
Private Equity
Investments
Investments owned, at fair value	8,522,282	7,349,559
Credit
Investments
Investments owned, at fair value	7,649,787	9,099,135
Investments of Consolidated CFEs
Investments
Investments owned, at fair value	15,021,345	14,733,423
Real Assets
Investments
Investments owned, at fair value	3,213,813	3,157,954
Equity Method - Other
Investments
Investments owned, at fair value	4,472,692	4,212,874
Equity Method - Capital Allocation-Based Income
Investments
Investments owned, at fair value	4,203,980	3,584,415
Other Investments
Investments
Investments owned, at fair value	$ 2,711,355	$ 2,770,622

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INVESTMENTS - Narrative (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Investments | Investment Concentration Risk
Investments
Threshold percentage of total investments (greater than)	5.00%	5.00%

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FAIR VALUE MEASUREMENTS - Assets and Liabilities at Fair Value (Details) - Fair value measured on recurring basis - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Assets, at fair value:
Total Investments	$ 39,036,265	$ 38,902,883
Total Assets	39,275,085	39,121,142
Liabilities, at fair value:
Securities Sold Short	582,608	344,124
Unfunded Revolver Commitments	56,792	52,066
Total Liabilities	15,169,961	14,451,133
Debt Obligations of Consolidated CFEs
Liabilities, at fair value:
Total Liabilities	14,472,392	13,958,554
Foreign Exchange Forward Contracts
Assets, at fair value:
Total Assets	205,900	177,264
Liabilities, at fair value:
Total Liabilities	17,200	60,749
Other Derivatives
Assets, at fair value:
Total Assets	32,920	40,995
Liabilities, at fair value:
Total Liabilities	40,969	35,640
Private Equity
Assets, at fair value:
Total Investments	8,522,282	7,349,559
Credit
Assets, at fair value:
Total Investments	7,649,787	9,099,135
Investments of Consolidated CFEs
Assets, at fair value:
Total Investments	15,021,345	14,733,423
Real Assets
Assets, at fair value:
Total Investments	3,213,813	3,157,954
Equity Method - Other
Assets, at fair value:
Total Investments	1,917,683	1,792,190
Other Investments
Assets, at fair value:
Total Investments	2,711,355	2,770,622
Level I
Assets, at fair value:
Total Investments	2,324,892	1,882,394
Total Assets	2,324,892	1,882,394
Liabilities, at fair value:
Securities Sold Short	582,608	344,124
Unfunded Revolver Commitments	0	0
Total Liabilities	582,608	344,124
Level I | Debt Obligations of Consolidated CFEs
Liabilities, at fair value:
Total Liabilities	0	0
Level I | Foreign Exchange Forward Contracts
Assets, at fair value:
Total Assets	0	0
Liabilities, at fair value:
Total Liabilities	0	0
Level I | Other Derivatives
Assets, at fair value:
Total Assets	0	0
Liabilities, at fair value:
Total Liabilities	0	0
Level I | Private Equity
Assets, at fair value:
Total Investments	1,603,803	1,156,977
Level I | Credit
Assets, at fair value:
Total Investments	0	0
Level I | Investments of Consolidated CFEs
Assets, at fair value:
Total Investments	0	0
Level I | Real Assets
Assets, at fair value:
Total Investments	0	0
Level I | Equity Method - Other
Assets, at fair value:
Total Investments	219,566	245,225
Level I | Other Investments
Assets, at fair value:
Total Investments	501,523	480,192
Level II
Assets, at fair value:
Total Investments	14,337,671	15,267,069
Total Assets	14,545,357	15,448,212
Liabilities, at fair value:
Securities Sold Short	0	0
Unfunded Revolver Commitments	0	0
Total Liabilities	12,598,790	12,160,960
Level II | Debt Obligations of Consolidated CFEs
Liabilities, at fair value:
Total Liabilities	12,557,821	12,081,771
Level II | Foreign Exchange Forward Contracts
Assets, at fair value:
Total Assets	205,900	177,264
Liabilities, at fair value:
Total Liabilities	17,200	60,749
Level II | Other Derivatives
Assets, at fair value:
Total Assets	1,786	3,879
Liabilities, at fair value:
Total Liabilities	23,769	18,440
Level II | Private Equity
Assets, at fair value:
Total Investments	86,933	63,999
Level II | Credit
Assets, at fair value:
Total Investments	1,119,308	2,334,405
Level II | Investments of Consolidated CFEs
Assets, at fair value:
Total Investments	12,937,610	12,650,878
Level II | Real Assets
Assets, at fair value:
Total Investments	0	0
Level II | Equity Method - Other
Assets, at fair value:
Total Investments	47,938	43,943
Level II | Other Investments
Assets, at fair value:
Total Investments	145,882	173,844
Level III
Assets, at fair value:
Total Investments	22,373,702	21,753,420
Total Assets	22,404,836	21,790,536
Liabilities, at fair value:
Securities Sold Short	0	0
Unfunded Revolver Commitments	56,792	52,066
Total Liabilities	1,988,563	1,946,049
Level III | Debt Obligations of Consolidated CFEs
Liabilities, at fair value:
Total Liabilities	1,914,571	1,876,783
Level III | Foreign Exchange Forward Contracts
Assets, at fair value:
Total Assets	0	0
Liabilities, at fair value:
Total Liabilities	0	0
Level III | Other Derivatives
Assets, at fair value:
Total Assets	31,134	37,116
Liabilities, at fair value:
Total Liabilities	17,200	17,200
Level III | Private Equity
Assets, at fair value:
Total Investments	6,831,546	6,128,583
Level III | Credit
Assets, at fair value:
Total Investments	6,530,479	6,764,730
Level III | Investments of Consolidated CFEs
Assets, at fair value:
Total Investments	2,083,735	2,082,545
Level III | Real Assets
Assets, at fair value:
Total Investments	3,213,813	3,157,954
Level III | Equity Method - Other
Assets, at fair value:
Total Investments	1,650,179	1,503,022
Level III | Other Investments
Assets, at fair value:
Total Investments	$ 2,063,950	$ 2,116,586

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FAIR VALUE MEASUREMENTS - Changes in Level III Investments (Details) - Level III - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Total Level III Investments
Fair value, assets measured on recurring basis, level 3 fair-value category reconciliation
Balance, Beg. of Period	$ 21,753,420	$ 17,752,304
Transfers In / (Out) Due to Changes in Consolidation	(44,462)	0
Transfers In	0	0
Transfers Out	(56,029)	0
Asset Purchases / Debt Issuances	1,521,924	2,225,431
Sales / Paydowns	(1,365,091)	(379,324)
Settlements	20,815	(53,825)
Net Realized Gains (Losses)	96,664	53,487
Net Unrealized Gains (Losses)	443,819	297,476
Change in Other Comprehensive Income	2,642	(15,522)
Balance, End of Period	22,373,702	19,880,027
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	513,568	318,553
Private Equity
Fair value, assets measured on recurring basis, level 3 fair-value category reconciliation
Balance, Beg. of Period	6,128,583	2,172,290
Transfers In / (Out) Due to Changes in Consolidation	0	0
Transfers In	0	0
Transfers Out	(56,029)	0
Asset Purchases / Debt Issuances	409,621	727,626
Sales / Paydowns	(99,603)	(35,245)
Settlements	0	0
Net Realized Gains (Losses)	68,568	15,312
Net Unrealized Gains (Losses)	380,406	208,428
Change in Other Comprehensive Income	0	0
Balance, End of Period	6,831,546	3,088,411
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	442,672	208,428
Credit
Fair value, assets measured on recurring basis, level 3 fair-value category reconciliation
Balance, Beg. of Period	6,764,730	5,138,937
Transfers In / (Out) Due to Changes in Consolidation	(1,598)	0
Transfers In	0	0
Transfers Out	0	0
Asset Purchases / Debt Issuances	811,957	890,113
Sales / Paydowns	(1,028,063)	(230,144)
Settlements	20,815	(53,825)
Net Realized Gains (Losses)	(15,198)	11,581
Net Unrealized Gains (Losses)	(24,806)	77,715
Change in Other Comprehensive Income	2,642	(15,522)
Balance, End of Period	6,530,479	5,818,855
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	(31,282)	86,754
Investments of Consolidated CFEs
Fair value, assets measured on recurring basis, level 3 fair-value category reconciliation
Balance, Beg. of Period	2,082,545	5,353,090
Transfers In / (Out) Due to Changes in Consolidation	0	0
Transfers In	0	0
Transfers Out	0	0
Asset Purchases / Debt Issuances	0	0
Sales / Paydowns	(38,295)	(11,541)
Settlements	0	0
Net Realized Gains (Losses)	0	0
Net Unrealized Gains (Losses)	39,485	(83,150)
Change in Other Comprehensive Income	0	0
Balance, End of Period	2,083,735	5,258,399
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	39,485	(83,150)
Real Assets
Fair value, assets measured on recurring basis, level 3 fair-value category reconciliation
Balance, Beg. of Period	3,157,954	2,251,267
Transfers In / (Out) Due to Changes in Consolidation	0	0
Transfers In	0	0
Transfers Out	0	0
Asset Purchases / Debt Issuances	67,302	540,898
Sales / Paydowns	(130,571)	(34,237)
Settlements	0	0
Net Realized Gains (Losses)	29,547	8,354
Net Unrealized Gains (Losses)	89,581	61,151
Change in Other Comprehensive Income	0	0
Balance, End of Period	3,213,813	2,827,433
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	92,900	61,151
Equity Method - Other
Fair value, assets measured on recurring basis, level 3 fair-value category reconciliation
Balance, Beg. of Period	1,503,022	1,076,709
Transfers In / (Out) Due to Changes in Consolidation	0	0
Transfers In	0	0
Transfers Out	0	0
Asset Purchases / Debt Issuances	137,909	2,037
Sales / Paydowns	(41,126)	(31,939)
Settlements	0	0
Net Realized Gains (Losses)	11,626	9,348
Net Unrealized Gains (Losses)	38,748	29,570
Change in Other Comprehensive Income	0	0
Balance, End of Period	1,650,179	1,085,725
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	49,140	34,928
Other Investments
Fair value, assets measured on recurring basis, level 3 fair-value category reconciliation
Balance, Beg. of Period	2,116,586	1,760,011
Transfers In / (Out) Due to Changes in Consolidation	(42,864)	0
Transfers In	0	0
Transfers Out	0	0
Asset Purchases / Debt Issuances	95,135	64,757
Sales / Paydowns	(27,433)	(36,218)
Settlements	0	0
Net Realized Gains (Losses)	2,121	8,892
Net Unrealized Gains (Losses)	(79,595)	3,762
Change in Other Comprehensive Income	0	0
Balance, End of Period	2,063,950	1,801,204
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	$ (79,347)	$ 10,442

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FAIR VALUE MEASUREMENTS - Changes in Level III Debt Obligations (Details) - Level III - Debt Obligations of Consolidated CFEs - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Fair value, liabilities measured on recurring basis, level 3 fair-value category reconciliation
Balance, Beg. of Period	$ 1,876,783	$ 5,238,236
Transfers Out Due to Deconsolidation of Funds	0	0
Transfers In	0	0
Transfers Out	0	0
Asset Purchases / Debt Issuances	0	0
Sales	0	0
Settlements	(2,731)	(11,541)
Net Realized Gains (Losses)	0	0
Net Unrealized Gains (Losses)	40,519	(88,528)
Change in Other Comprehensive Income	0	0
Balance, End of Period	1,914,571	5,138,167
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	$ 40,519	$ (88,528)

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FAIR VALUE MEASUREMENTS - Valuation Methodologies and Significant Unobservable Inputs (Details)	3 Months Ended
	Mar. 31, 2019 USD ($) $ / barrel
Level III
Level III investments and other financial instruments by valuation methodologies
Private equity, fair value	$ 6,831,546,000
Credit, fair value	6,530,479,000
Investments of consolidated CFEs, fair value	2,083,735,000
Debt obligations of consolidated CFEs, fair value	1,914,571,000
Real assets, fair value	3,213,813,000
Equity method - other, fair value	1,650,179,000
Other investments, fair value	2,063,950,000
Private Equity | Level III
Level III investments and other financial instruments by valuation methodologies
Private equity, fair value	4,322,213,000
Growth Equity | Level III
Level III investments and other financial instruments by valuation methodologies
Private equity, fair value	2,509,333,000
Energy | Level III
Level III investments and other financial instruments by valuation methodologies
Real assets, fair value	1,711,998,000
Real Estate | Level III
Level III investments and other financial instruments by valuation methodologies
Real assets, fair value	$ 1,294,181,000
Illiquidity Discount | Minimum
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	0.05
Illiquidity Discount | Level III | Inputs to market comparables, discounted cash flow and transaction price | Weighted Average
Level III investments and other financial instruments by valuation methodologies
Equity method - other, measurement input	0.095
Other investments, measurement input	0.102
Illiquidity Discount | Level III | Inputs to market comparables, discounted cash flow and transaction price | Minimum
Level III investments and other financial instruments by valuation methodologies
Equity method - other, measurement input	0.050
Other investments, measurement input	0.050
Illiquidity Discount | Level III | Inputs to market comparables, discounted cash flow and transaction price | Maximum
Level III investments and other financial instruments by valuation methodologies
Equity method - other, measurement input	0.150
Other investments, measurement input	0.200
Illiquidity Discount | Private Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Weighted Average
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	0.061
Illiquidity Discount | Private Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Minimum
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	0.050
Illiquidity Discount | Private Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Maximum
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	0.150
Illiquidity Discount | Growth Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Weighted Average
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	0.116
Illiquidity Discount | Growth Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Minimum
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	0.050
Illiquidity Discount | Growth Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Maximum
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	0.200
Weight Ascribed to Market Comparables | Level III | Inputs to market comparables, discounted cash flow and transaction price | Weighted Average
Level III investments and other financial instruments by valuation methodologies
Equity method - other, measurement input	0.426
Other investments, measurement input	0.381
Weight Ascribed to Market Comparables | Level III | Inputs to market comparables, discounted cash flow and transaction price | Minimum
Level III investments and other financial instruments by valuation methodologies
Equity method - other, measurement input	0.000
Other investments, measurement input	0.000
Weight Ascribed to Market Comparables | Level III | Inputs to market comparables, discounted cash flow and transaction price | Maximum
Level III investments and other financial instruments by valuation methodologies
Equity method - other, measurement input	0.750
Other investments, measurement input	1.000
Weight Ascribed to Market Comparables | Private Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Weighted Average
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	0.305
Weight Ascribed to Market Comparables | Private Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Minimum
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	0.000
Weight Ascribed to Market Comparables | Private Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Maximum
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	0.500
Weight Ascribed to Market Comparables | Growth Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Weighted Average
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	0.352
Weight Ascribed to Market Comparables | Growth Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Minimum
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	0.000
Weight Ascribed to Market Comparables | Growth Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Maximum
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	1.000
Weight Ascribed to Discounted Cash Flow | Level III | Inputs to market comparables, discounted cash flow and transaction price | Weighted Average
Level III investments and other financial instruments by valuation methodologies
Equity method - other, measurement input	0.394
Other investments, measurement input	0.361
Weight Ascribed to Discounted Cash Flow | Level III | Inputs to market comparables, discounted cash flow and transaction price | Minimum
Level III investments and other financial instruments by valuation methodologies
Equity method - other, measurement input	0.000
Other investments, measurement input	0.000
Weight Ascribed to Discounted Cash Flow | Level III | Inputs to market comparables, discounted cash flow and transaction price | Maximum
Level III investments and other financial instruments by valuation methodologies
Equity method - other, measurement input	1.000
Other investments, measurement input	1.000
Weight Ascribed to Discounted Cash Flow | Private Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Weighted Average
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	0.694
Weight Ascribed to Discounted Cash Flow | Private Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Minimum
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	0.000
Weight Ascribed to Discounted Cash Flow | Private Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Maximum
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	1.000
Weight Ascribed to Discounted Cash Flow | Growth Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Weighted Average
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	0.153
Weight Ascribed to Discounted Cash Flow | Growth Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Minimum
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	0.000
Weight Ascribed to Discounted Cash Flow | Growth Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Maximum
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	0.750
Weight Ascribed to Discounted Cash Flow | Real Estate | Level III | Inputs to direct income capitalization and discounted cash flow | Weighted Average
Level III investments and other financial instruments by valuation methodologies
Real assets, measurement input	0.678
Weight Ascribed to Discounted Cash Flow | Real Estate | Level III | Inputs to direct income capitalization and discounted cash flow | Minimum
Level III investments and other financial instruments by valuation methodologies
Real assets, measurement input	0.000
Weight Ascribed to Discounted Cash Flow | Real Estate | Level III | Inputs to direct income capitalization and discounted cash flow | Maximum
Level III investments and other financial instruments by valuation methodologies
Real assets, measurement input	1.000
Weight Ascribed to Transaction Price | Level III | Inputs to market comparables, discounted cash flow and transaction price | Weighted Average
Level III investments and other financial instruments by valuation methodologies
Equity method - other, measurement input	0.180
Other investments, measurement input	0.258
Weight Ascribed to Transaction Price | Level III | Inputs to market comparables, discounted cash flow and transaction price | Minimum
Level III investments and other financial instruments by valuation methodologies
Equity method - other, measurement input	0.000
Other investments, measurement input	0.000
Weight Ascribed to Transaction Price | Level III | Inputs to market comparables, discounted cash flow and transaction price | Maximum
Level III investments and other financial instruments by valuation methodologies
Equity method - other, measurement input	1.000
Other investments, measurement input	1.000
Weight Ascribed to Transaction Price | Private Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Weighted Average
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	0.001
Weight Ascribed to Transaction Price | Private Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Minimum
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	0.000
Weight Ascribed to Transaction Price | Private Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Maximum
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	1.000
Enterprise Value/LTM EBITDA Multiple | Level III | Market comparables | Weighted Average
Level III investments and other financial instruments by valuation methodologies
Equity method - other, measurement input	12.0
Other investments, measurement input	10.3
Enterprise Value/LTM EBITDA Multiple | Level III | Market comparables | Minimum
Level III investments and other financial instruments by valuation methodologies
Equity method - other, measurement input	6.9
Other investments, measurement input	1.3
Enterprise Value/LTM EBITDA Multiple | Level III | Market comparables | Maximum
Level III investments and other financial instruments by valuation methodologies
Equity method - other, measurement input	15.2
Other investments, measurement input	14.6
Enterprise Value/LTM EBITDA Multiple | Private Equity | Level III | Market comparables | Weighted Average
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	14.2
Enterprise Value/LTM EBITDA Multiple | Private Equity | Level III | Market comparables | Minimum
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	6.9
Enterprise Value/LTM EBITDA Multiple | Private Equity | Level III | Market comparables | Maximum
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	23.7
Enterprise Value/Forward EBITDA Multiple | Level III | Market comparables | Weighted Average
Level III investments and other financial instruments by valuation methodologies
Equity method - other, measurement input	11.2
Other investments, measurement input	9.1
Enterprise Value/Forward EBITDA Multiple | Level III | Market comparables | Minimum
Level III investments and other financial instruments by valuation methodologies
Equity method - other, measurement input	6.2
Other investments, measurement input	1.2
Enterprise Value/Forward EBITDA Multiple | Level III | Market comparables | Maximum
Level III investments and other financial instruments by valuation methodologies
Equity method - other, measurement input	13.2
Other investments, measurement input	11.7
Enterprise Value/Forward EBITDA Multiple | Private Equity | Level III | Market comparables | Weighted Average
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	12.4
Enterprise Value/Forward EBITDA Multiple | Private Equity | Level III | Market comparables | Minimum
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	6.2
Enterprise Value/Forward EBITDA Multiple | Private Equity | Level III | Market comparables | Maximum
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	17.2
Weighted Average Cost of Capital | Level III | Discounted cash flow | Weighted Average
Level III investments and other financial instruments by valuation methodologies
Equity method - other, measurement input	0.090
Other investments, measurement input	0.172
Weighted Average Cost of Capital | Level III | Discounted cash flow | Minimum
Level III investments and other financial instruments by valuation methodologies
Equity method - other, measurement input	0.056
Other investments, measurement input	0.073
Weighted Average Cost of Capital | Level III | Discounted cash flow | Maximum
Level III investments and other financial instruments by valuation methodologies
Equity method - other, measurement input	0.130
Other investments, measurement input	0.311
Weighted Average Cost of Capital | Private Equity | Level III | Discounted cash flow | Weighted Average
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	0.107
Weighted Average Cost of Capital | Private Equity | Level III | Discounted cash flow | Minimum
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	0.056
Weighted Average Cost of Capital | Private Equity | Level III | Discounted cash flow | Maximum
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	0.146
Weighted Average Cost of Capital | Energy | Level III | Discounted cash flow | Weighted Average
Level III investments and other financial instruments by valuation methodologies
Real assets, measurement input	0.106
Weighted Average Cost of Capital | Energy | Level III | Discounted cash flow | Minimum
Level III investments and other financial instruments by valuation methodologies
Real assets, measurement input	0.095
Weighted Average Cost of Capital | Energy | Level III | Discounted cash flow | Maximum
Level III investments and other financial instruments by valuation methodologies
Real assets, measurement input	0.141
Enterprise Value/LTM EBITDA Exit Multiple | Level III | Discounted cash flow | Weighted Average
Level III investments and other financial instruments by valuation methodologies
Equity method - other, measurement input	10.4
Other investments, measurement input	8.9
Enterprise Value/LTM EBITDA Exit Multiple | Level III | Discounted cash flow | Minimum
Level III investments and other financial instruments by valuation methodologies
Equity method - other, measurement input	6.0
Other investments, measurement input	6.5
Enterprise Value/LTM EBITDA Exit Multiple | Level III | Discounted cash flow | Maximum
Level III investments and other financial instruments by valuation methodologies
Equity method - other, measurement input	12.5
Other investments, measurement input	9.1
Enterprise Value/LTM EBITDA Exit Multiple | Private Equity | Level III | Discounted cash flow | Weighted Average
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	12.4
Enterprise Value/LTM EBITDA Exit Multiple | Private Equity | Level III | Discounted cash flow | Minimum
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	6.0
Enterprise Value/LTM EBITDA Exit Multiple | Private Equity | Level III | Discounted cash flow | Maximum
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	15.0
Weight Ascribed to Milestones | Growth Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Weighted Average
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	0.495
Weight Ascribed to Milestones | Growth Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Minimum
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	0.000
Weight Ascribed to Milestones | Growth Equity | Level III | Inputs to market comparables, discounted cash flow and transaction price | Maximum
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	1.000
Base | Growth Equity | Level III | Scenario Weighting | Weighted Average
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	0.614
Base | Growth Equity | Level III | Scenario Weighting | Minimum
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	0.400
Base | Growth Equity | Level III | Scenario Weighting | Maximum
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	0.800
Downside | Growth Equity | Level III | Scenario Weighting | Weighted Average
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	0.160
Downside | Growth Equity | Level III | Scenario Weighting | Minimum
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	0.050
Downside | Growth Equity | Level III | Scenario Weighting | Maximum
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	0.300
Upside | Growth Equity | Level III | Scenario Weighting | Weighted Average
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	0.226
Upside | Growth Equity | Level III | Scenario Weighting | Minimum
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	0.100
Upside | Growth Equity | Level III | Scenario Weighting | Maximum
Level III investments and other financial instruments by valuation methodologies
Private equity, measurement input	0.450
Yield | Level III | Discounted cash flow | Weighted Average
Level III investments and other financial instruments by valuation methodologies
Debt obligations of consolidated CFEs, measurement input	0.058
Yield | Level III | Discounted cash flow | Minimum
Level III investments and other financial instruments by valuation methodologies
Debt obligations of consolidated CFEs, measurement input	0.026
Yield | Level III | Discounted cash flow | Maximum
Level III investments and other financial instruments by valuation methodologies
Debt obligations of consolidated CFEs, measurement input	0.155
Yield | Level III | Yield Analysis | Weighted Average
Level III investments and other financial instruments by valuation methodologies
Credit, measurement input	0.076
Yield | Level III | Yield Analysis | Minimum
Level III investments and other financial instruments by valuation methodologies
Credit, measurement input	0.035
Yield | Level III | Yield Analysis | Maximum
Level III investments and other financial instruments by valuation methodologies
Credit, measurement input	0.234
Net Leverage | Level III | Yield Analysis | Weighted Average
Level III investments and other financial instruments by valuation methodologies
Credit, measurement input	2.1
Net Leverage | Level III | Yield Analysis | Minimum
Level III investments and other financial instruments by valuation methodologies
Credit, measurement input	0.2
Net Leverage | Level III | Yield Analysis | Maximum
Level III investments and other financial instruments by valuation methodologies
Credit, measurement input	14.1
EBITDA Multiple | Level III | Yield Analysis | Weighted Average
Level III investments and other financial instruments by valuation methodologies
Credit, measurement input	9.7
EBITDA Multiple | Level III | Yield Analysis | Minimum
Level III investments and other financial instruments by valuation methodologies
Credit, measurement input	0.2
EBITDA Multiple | Level III | Yield Analysis | Maximum
Level III investments and other financial instruments by valuation methodologies
Credit, measurement input	38.2
Average Price Per BOE | Energy | Level III | Discounted cash flow | Weighted Average
Level III investments and other financial instruments by valuation methodologies
Real assets, measurement input, value	$ 44.62
Average Price Per BOE | Energy | Level III | Discounted cash flow | Minimum
Level III investments and other financial instruments by valuation methodologies
Real assets, measurement input | $ / barrel	38.98
Average Price Per BOE | Energy | Level III | Discounted cash flow | Maximum
Level III investments and other financial instruments by valuation methodologies
Real assets, measurement input | $ / barrel	47.75
Weight Ascribed to Direct Income Capitalization | Real Estate | Level III | Inputs to direct income capitalization and discounted cash flow | Weighted Average
Level III investments and other financial instruments by valuation methodologies
Real assets, measurement input	0.322
Weight Ascribed to Direct Income Capitalization | Real Estate | Level III | Inputs to direct income capitalization and discounted cash flow | Minimum
Level III investments and other financial instruments by valuation methodologies
Real assets, measurement input	0.000
Weight Ascribed to Direct Income Capitalization | Real Estate | Level III | Inputs to direct income capitalization and discounted cash flow | Maximum
Level III investments and other financial instruments by valuation methodologies
Real assets, measurement input	1.000
Current Capitalization Rate | Real Estate | Level III | Direct income capitalization | Weighted Average
Level III investments and other financial instruments by valuation methodologies
Real assets, measurement input	0.059
Current Capitalization Rate | Real Estate | Level III | Direct income capitalization | Minimum
Level III investments and other financial instruments by valuation methodologies
Real assets, measurement input	0.004
Current Capitalization Rate | Real Estate | Level III | Direct income capitalization | Maximum
Level III investments and other financial instruments by valuation methodologies
Real assets, measurement input	0.095
Unlevered Discount Rate | Real Estate | Level III | Discounted cash flow | Weighted Average
Level III investments and other financial instruments by valuation methodologies
Real assets, measurement input	0.080
Unlevered Discount Rate | Real Estate | Level III | Discounted cash flow | Minimum
Level III investments and other financial instruments by valuation methodologies
Real assets, measurement input	0.048
Unlevered Discount Rate | Real Estate | Level III | Discounted cash flow | Maximum
Level III investments and other financial instruments by valuation methodologies
Real assets, measurement input	0.180
Infrastructure | Level III
Level III investments and other financial instruments by valuation methodologies
Real assets, fair value	$ 207,600,000
Infrastructure | Weighted Average Cost of Capital | Level III | Discounted cash flow | Weighted Average
Level III investments and other financial instruments by valuation methodologies
Real assets, measurement input	0.068
Infrastructure | Enterprise Value/LTM EBITDA Exit Multiple | Level III | Discounted cash flow | Weighted Average
Level III investments and other financial instruments by valuation methodologies
Real assets, measurement input	10.0
Energy | Real Assets | Level III | Discounted cash flow
Level III investments and other financial instruments by valuation methodologies
Revenue ratio of liquids	88.00%
Revenue ratio of natural gas	12.00%

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FAIR VALUE OPTION - Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Fair Value, Option, Quantitative Disclosures [Line Items]
Assets	$ 21,996,235	$ 22,024,820
Liabilities	14,472,392	13,958,554
Private Equity
Fair Value, Option, Quantitative Disclosures [Line Items]
Assets	3,235	2,977
Credit
Fair Value, Option, Quantitative Disclosures [Line Items]
Assets	4,519,000	4,950,819
Investments of Consolidated CFEs
Fair Value, Option, Quantitative Disclosures [Line Items]
Assets	15,021,345	14,733,423
Real Assets
Fair Value, Option, Quantitative Disclosures [Line Items]
Assets	309,105	310,399
Equity Method - Other
Fair Value, Option, Quantitative Disclosures [Line Items]
Assets	1,917,683	1,792,190
Other Investments
Fair Value, Option, Quantitative Disclosures [Line Items]
Assets	225,867	235,012
Debt Obligations of Consolidated CFEs
Fair Value, Option, Quantitative Disclosures [Line Items]
Liabilities	$ 14,472,392	$ 13,958,554

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FAIR VALUE OPTION - Change in Fair Value (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair value, option, assets, net realized gains (losses)	$ (19,560)	$ (40,929)
Fair value, option, liabilities, net realized gains (losses)	0	13,256
Fair value, option, assets, net unrealized gains (losses)	278,000	9,301
Fair value, option, liabilities, net unrealized gains (losses)	(252,281)	93,654
Fair value, option, assets, total gains (losses)	258,440	(31,628)
Fair value, option, liabilities, total gains (losses)	(252,281)	106,910
Private Equity
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair value, option, assets, net realized gains (losses)	0	71
Fair value, option, assets, net unrealized gains (losses)	194	316
Fair value, option, assets, total gains (losses)	194	387
Credit
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair value, option, assets, net realized gains (losses)	(23,153)	(28,867)
Fair value, option, assets, net unrealized gains (losses)	20,942	2,656
Fair value, option, assets, total gains (losses)	(2,211)	(26,211)
Investments of Consolidated CFEs
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair value, option, assets, net realized gains (losses)	(10,530)	(26,516)
Fair value, option, assets, net unrealized gains (losses)	233,357	(48,403)
Fair value, option, assets, total gains (losses)	222,827	(74,919)
Real Assets
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair value, option, assets, net realized gains (losses)	703	428
Fair value, option, assets, net unrealized gains (losses)	2,436	(3,483)
Fair value, option, assets, total gains (losses)	3,139	(3,055)
Equity Method - Other
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair value, option, assets, net realized gains (losses)	11,626	9,348
Fair value, option, assets, net unrealized gains (losses)	17,084	66,093
Fair value, option, assets, total gains (losses)	28,710	75,441
Other Investments
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair value, option, assets, net realized gains (losses)	1,794	4,607
Fair value, option, assets, net unrealized gains (losses)	3,987	(7,878)
Fair value, option, assets, total gains (losses)	5,781	(3,271)
Debt Obligations of Consolidated CFEs
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair value, option, liabilities, net realized gains (losses)	0	13,256
Fair value, option, liabilities, net unrealized gains (losses)	(252,281)	93,654
Fair value, option, liabilities, total gains (losses)	$ (252,281)	$ 106,910

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NET INCOME (LOSS) ATTRIBUTABLE TO KKR & CO. INC. PER SHARE OF CLASS A COMMON STOCK (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
NET INCOME (LOSS) ATTRIBUTABLE TO KKR & CO. INC. PER SHARE OF CLASS A COMMON STOCK
Net Income (Loss) Attributable to KKR & Co. Inc. Class A Common Stockholders	$ 700,978	$ 170,102
Preferred stock dividend rate (as a percent)	7.375%
Weighted Average KKR Holdings Units
Weighted Average KKR Holdings Units (in shares)	298,858,418	335,016,218
Class A Common Stock
NET INCOME (LOSS) ATTRIBUTABLE TO KKR & CO. INC. PER SHARE OF CLASS A COMMON STOCK
Net Income (Loss) Attributable to KKR & Co. Inc. Class A Common Stockholders	$ 700,978	$ 170,102
Excess of carrying value over consideration transferred on redemption of KFN 7.375% Series A LLC Preferred Shares	0	3,102
Net Income (Loss) Available to KKR & Co. Inc. Class A Common Stockholders	$ 700,978	$ 173,204
Basic Net Income (Loss) Per Share of Class A Common Stock
Weighted Average Shares of Class A Common Stock Outstanding - Basic (in shares)	533,892,474	487,704,838
Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Class A Common Stock - Basic (in dollars per share)	$ 1.31	$ 0.36
Diluted Net Income (Loss) Per Share of Class A Common Stock
Weighted Average Shares of Class A Common Stock Outstanding - Basic (in shares)	533,892,474	487,704,838
Weighted Average Unvested Shares of Class A Common Stock and Other Exchangeable Securities (in shares)	16,153,966	48,213,436
Weighted Average Shares of Class A Common Stock Outstanding - Diluted (in shares)	550,046,440	535,918,274
Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Class A Common Stock - Diluted (in dollars per share)	$ 1.27	$ 0.32
Class A Common Stock | Market Condition Awards
Weighted Average KKR Holdings Units
Weighted Average KKR Holdings Units (in shares)	5,000,000

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OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES - Other Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES
Unsettled Investment Sales	$ 129,141		$ 101,789
Receivables	64,802		27,258
Due from Broker	485,127		396,512
Oil & Gas Assets, net	210,865		225,256
Deferred Tax Assets, net	408,148		538,161
Interest Receivable	231,445		241,547
Fixed Assets, net	466,264		451,206
Foreign Exchange Contracts and Options	205,900		177,264
Intangible Assets, net	9,125		9,863
Goodwill	83,500		83,500
Derivative Assets	32,920		40,995
Deposits	7,284		7,299
Prepaid Taxes	73,054		69,165
Prepaid Expenses	27,106		23,551
Operating Lease Right of Use Assets	146,165
Deferred Financing Costs	13,458		13,871
Other	93,498		129,455
Total	2,687,802		2,536,692
Depreciation, depletion, and amortization of oil and natural gas properties	13,800	$ 7,100
Accumulated depreciation and amortization of fixed assets	118,010		113,453
Depreciation and amortization expense of fixed assets	4,371	3,710
Intangible assets, accumulated amortization	63,538		$ 63,500
Amortization of intangibles	500	$ 5,000
Operating lease cost	$ 11,800

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OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES - Accounts Payable, Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
OTHER ASSETS AND ACCOUNTS PAYABLE, ACCRUED EXPENSES AND OTHER LIABILITIES
Amounts Payable to Carry Pool	$ 1,089,045	$ 922,977
Unsettled Investment Purchases	507,731	541,165
Securities Sold Short	582,608	344,124
Derivative Liabilities	40,969	35,640
Accrued Compensation and Benefits	166,294	107,887
Interest Payable	216,348	212,969
Foreign Exchange Contracts and Options	17,200	60,749
Accounts Payable and Accrued Expenses	108,170	130,554
Taxes Payable	55,355	24,453
Uncertain Tax Positions	67,374	66,775
Unfunded Revolver Commitments	56,792	52,066
Operating Lease Liabilities	152,073
Other Liabilities	219,069	244,631
Total	$ 3,279,028	$ 2,743,990
Lessee, Lease, Description [Line Items]
Operating lease, maximum extension term	3 years
Operating lease, weighted average remaining lease term	4 years 9 months 11 days
Operating lease, weighted average discount rate	2.64%
Minimum
Lessee, Lease, Description [Line Items]
Operating lease, remaining lease term	1 year
Maximum
Lessee, Lease, Description [Line Items]
Operating lease, remaining lease term	14 years

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VARIABLE INTEREST ENTITIES - Narrative (Details) $ in Billions	Mar. 31, 2019 USD ($)
Investments in Unconsolidated Investment Funds
Variable Interest Entity [Line Items]
Commitment to unconsolidated investment funds	$ 2.3

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VARIABLE INTEREST ENTITIES - Maximum Exposure to Loss (Details) - Investments in Unconsolidated CLO Vehicles - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Variable Interest Entity [Line Items]
Equity Method - Capital Allocation-Based Income	$ 4,203,980	$ 3,610,502
Due from (to) Affiliates, net	490,990	410,489
Maximum Exposure to Loss	$ 4,694,970	$ 4,020,991

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DEBT OBLIGATIONS - KKR's Borrowings (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Mar. 31, 2019 JPY (¥)
Debt Instrument [Line Items]
Financing Available	$ 6,401,365,000	$ 6,042,215,000
Borrowing Outstanding	22,262,369,000	22,341,192,000
Fair Value	22,350,446,000	22,339,640,000
Financing Facilities of Consolidated Funds and Other
Debt Instrument [Line Items]
Financing Available	4,216,970,000	3,840,877,000
Borrowing Outstanding	4,534,329,000	5,123,768,000
Fair Value	$ 4,534,329,000	$ 5,123,768,000
Weighted average interest rate (percentage)	4.90%	4.60%	4.90%
Weighted average remaining maturity (in years)	3 years 7 months 6 days	3 years 3 months 6 days
Debt Obligations of Consolidated CFEs
Debt Instrument [Line Items]
Borrowing Outstanding	$ 14,472,392,000
Senior Notes | KKR Issued 6.375% Notes Due 2020
Debt Instrument [Line Items]
Borrowing Outstanding	499,122,000	$ 498,975,000
Fair Value	523,900,000	523,500,000
Aggregate principal amount	$ 500,000,000
Interest rate, stated percentage	6.375%		6.375%
Unamortized debt issuance costs	$ 600,000	700,000
Senior Notes | KKR Issued 5.500% Notes Due 2043
Debt Instrument [Line Items]
Borrowing Outstanding	491,921,000	491,836,000
Fair Value	537,235,000	508,615,000
Aggregate principal amount	$ 500,000,000
Interest rate, stated percentage	5.50%		5.50%
Unamortized debt issuance costs	$ 3,500,000	3,600,000
Senior Notes | KKR Issued 5.125% Notes Due 2044
Debt Instrument [Line Items]
Borrowing Outstanding	990,831,000	990,740,000
Fair Value	1,030,140,000	974,320,000
Aggregate principal amount	$ 1,000,000,000.0
Interest rate, stated percentage	5.125%		5.125%
Unamortized debt issuance costs	$ 7,900,000	8,000,000
Senior Notes | KKR Issued 0.509% Notes Due 2023
Debt Instrument [Line Items]
Borrowing Outstanding	224,386,000	226,895,000
Fair Value	223,695,000	227,298,000
Aggregate principal amount	$ 225,600,000		¥ 25,000,000,000
Interest rate, stated percentage	0.509%		0.509%
Unamortized debt issuance costs	$ 1,200,000	1,300,000
Senior Notes | KKR Issued 0.764% Notes Due 2025
Debt Instrument [Line Items]
Borrowing Outstanding	44,435,000	44,923,000
Fair Value	45,402,000	45,161,000
Aggregate principal amount	$ 45,100,000		¥ 5,000,000,000
Interest rate, stated percentage	0.764%		0.764%
Unamortized debt issuance costs	$ 700,000	700,000
Senior Notes | KKR Issued 1.595% Notes Due 2038
Debt Instrument [Line Items]
Borrowing Outstanding	91,767,000	92,817,000
Fair Value	96,510,000	94,568,000
Aggregate principal amount	$ 92,900,000		¥ 10,300,000,000.0
Interest rate, stated percentage	1.595%		1.595%
Unamortized debt issuance costs	$ 1,200,000	1,200,000
Senior Notes | KFN Issued 5.500% Notes Due 2032 | KFN
Debt Instrument [Line Items]
Borrowing Outstanding	493,689,000	493,568,000
Fair Value	502,524,000	496,359,000
Aggregate principal amount	$ 500,000,000.0
Interest rate, stated percentage	5.50%		5.50%
Unamortized debt issuance costs	$ 4,300,000	4,400,000
Senior Notes | KFN Issued 5.200% Notes Due 2033 | KFN
Debt Instrument [Line Items]
Borrowing Outstanding	118,321,000	118,291,000
Fair Value	117,152,000	115,582,000
Aggregate principal amount	$ 120,000,000
Interest rate, stated percentage	5.20%		5.20%
Unamortized debt issuance costs	$ 1,700,000	1,700,000
Senior Notes | KFN Issued 5.400% Notes Due 2033 | KFN
Debt Instrument [Line Items]
Borrowing Outstanding	68,705,000	68,683,000
Fair Value	69,689,000	68,780,000
Aggregate principal amount	$ 70,000,000
Interest rate, stated percentage	5.40%		5.40%
Unamortized debt issuance costs	$ 1,300,000	1,300,000
Senior Notes | KFN Issued Junior Subordinated Notes | KFN
Debt Instrument [Line Items]
Borrowing Outstanding	232,471,000	232,142,000
Fair Value	197,478,000	$ 203,135,000
Aggregate principal amount	$ 258,500,000
Weighted average interest rate (percentage)	5.20%	5.00%	5.20%
Weighted average remaining maturity (in years)	17 years 6 months	17 years 9 months 18 days
Senior Secured Notes | Debt Obligations of Consolidated CFEs
Debt Instrument [Line Items]
Borrowing Outstanding	$ 12,155,621,000	$ 11,667,970,000
Fair Value	$ 12,155,621,000	11,667,970,000
Weighted average interest rate (percentage)	3.40%		3.40%
Weighted average remaining maturity (in years)	11 years 6 months
Subordinated Notes | Debt Obligations of Consolidated CFEs
Debt Instrument [Line Items]
Borrowing Outstanding	$ 402,200,000	413,801,000
Fair Value	$ 402,200,000	413,801,000
Weighted average remaining maturity (in years)	11 years 8 months 12 days
Collateralized Mortgage Backed Securities
Debt Instrument [Line Items]
Borrowing Outstanding	$ 1,914,571,000	1,876,783,000
Fair Value	$ 1,914,571,000	1,876,783,000
Collateralized Mortgage Backed Securities | Debt Obligations of Consolidated CFEs
Debt Instrument [Line Items]
Weighted average interest rate (percentage)	4.00%		4.00%
Weighted average remaining maturity (in years)	24 years 6 months
Revolving Credit Facility | Corporate Credit Agreement
Debt Instrument [Line Items]
Financing Available	$ 1,000,000,000	1,000,000,000
Borrowing Outstanding	0	0
Fair Value	0	0
Revolving Credit Facility | KCM Credit Agreement
Debt Instrument [Line Items]
Financing Available	434,395,000	451,338,000
Borrowing Outstanding	0	0
Fair Value	0	0
Revolving Credit Facility | KCM Short-Term Credit Agreement
Debt Instrument [Line Items]
Financing Available	750,000,000	750,000,000
Borrowing Outstanding	0	0
Fair Value	$ 0	$ 0

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DEBT OBLIGATIONS - Narrative (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018
Debt Instrument [Line Items]
Borrowing Outstanding	$ 22,262,369,000	$ 22,341,192,000
Assets	52,004,019,000	50,743,375,000	$ 47,579,153,000
KCM Credit Agreement
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	500,000,000
KCM Credit Agreement | Letter of Credit
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	500,000,000
Letters of credit outstanding	65,600,000	48,700,000
Revolving Credit Facility | KCM Credit Agreement
Debt Instrument [Line Items]
Borrowing Outstanding	0	0
Consolidated VIEs
Debt Instrument [Line Items]
Borrowing Outstanding	15,496,761,000	15,351,541,000
Assets	31,479,173,000	31,481,330,000
Consolidated VIEs | Consolidated CFEs
Debt Instrument [Line Items]
Borrowing Outstanding	14,472,392,000	13,958,554,000
Assets	$ 15,829,403,000	$ 15,310,494,000

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INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Jul. 01, 2018
Income Tax Disclosure [Abstract]
Deferred tax asset related to partial step-up in disposal of assets			$ 257,100
Deferred tax asset related to partial step-up in disposal of assets, additional amount	$ 45,000
Effective income tax rate	9.34%	2.84%
Increase in uncertain tax positions within 12 months	$ 0
Decrease in uncertain tax positions within 12 months	$ 0

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EQUITY BASED COMPENSATION - Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Compensation and Benefits
Expense associated with equity based compensation
Equity based expenses	$ 78,551	$ 95,078
Compensation and Benefits | KKR Holdings Principal Awards
Expense associated with equity based compensation
Equity based expenses	23,666	27,282
Compensation and Benefits | Equity Incentive Plan Awards
Expense associated with equity based compensation
Equity based expenses	54,885	67,796
Equity method investments | Net Gains (Losses) From Investment Activities
Expense associated with equity based compensation
Equity based expenses	$ (300)	$ 4,300

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EQUITY BASED COMPENSATION - Narrative (Details) $ / shares in Units, $ in Millions		1 Months Ended		3 Months Ended
	Nov. 02, 2017 $ / shares shares	Nov. 30, 2016 USD ($)	Feb. 29, 2016 shares	Mar. 31, 2019 USD ($) shares	Mar. 31, 2018 shares
KKR Group Partnerships
Equity Based Payments
Percentage owned by KKR Holdings L.P.					40.50%
KKR Holdings Principal Awards
Equity Based Payments
Vesting period (in years)		5 years
Minimum transfer restriction period with respect to one-half awards vested (in years)				1 year
Portion of awards vested having one-year transfer restriction period (as a percent)				50.00%
Minimum transfer restriction period with respect to remaining one-half awards vested (in years)				2 years
Portion of awards vested having two-year transfer restriction period (as a percent)				50.00%
Minimum retained ownership required to continuously hold common share equivalents to as percentage of cumulatively vested interests				25.00%
Forfeiture rate assumed (as a percent)				7.00%
Estimated unrecognized equity-based payment expense | $		$ 320.9		$ 230.3
Weighted average remaining vesting period over which unvested units are expected to vest (in years)				1 year 7 months 31 days
Common units conversion basis				1
Number of common units owned in KKR Group Partnership Units (in units) | shares				298,645,285	333,648,078
Percentage of outstanding units not granted (less than)				0.60%
Modified awards granted (in units) | shares			28,900,000
KKR Holdings Principal Awards | Minimum
Equity Based Payments
Vesting period (in years)				3 years
KKR Holdings Principal Awards | Maximum
Equity Based Payments
Vesting period (in years)				5 years
Equity Incentive Plan Shares
Equity Based Payments
Total awards issuable as a percentage of diluted common stock outstanding				15.00%
Minimum retained ownership required to continuously hold common share equivalents to as percentage of cumulatively vested interests				15.00%
Forfeiture rate assumed (as a percent)				7.00%
Estimated unrecognized equity-based payment expense | $				$ 340.4
Weighted average remaining vesting period over which unvested units are expected to vest (in years)				1 year 1 month 4 days
Equity Incentive Plan Shares | Minimum
Equity Based Payments
Vesting period (in years)				3 years
Discount rate (as a percent)				8.00%
Equity Incentive Plan Shares | Maximum
Equity Based Payments
Vesting period (in years)				5 years
Discount rate (as a percent)				56.00%
Equity Incentive Plan Shares | Market Condition Awards
Equity Based Payments
Awards granted per individual (in shares) | shares	2,500,000
Performance condition, closing market price (in dollars per share) | $ / shares	$ 40
Required term of performance condition	10 days
Fair value of award at grant date (in dollars per share) | $ / shares	$ 4.02
Compensation expense recognition period				3 years
Estimated unrecognized equity-based payment expense | $				$ 10.7
Equity Incentive Plan Shares | KKR Holdings
Equity Based Payments
Minimum transfer restriction period with respect to one-half awards vested (in years)				1 year
Portion of awards vested having one-year transfer restriction period (as a percent)				50.00%
Minimum transfer restriction period with respect to remaining one-half awards vested (in years)				2 years
Portion of awards vested having two-year transfer restriction period (as a percent)				50.00%
KKR Group Partnerships | KKR Holdings
Equity Based Payments
Percentage owned by KKR Holdings L.P.				35.90%

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EQUITY BASED COMPENSATION - Discount Per Share for Lack of Participation Rights in Expected Dividends (Details) - $ / shares	3 Months Ended	6 Months Ended	9 Months Ended	12 Months Ended
	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2019	Dec. 31, 2017	Dec. 31, 2016
Dividends Payable [Line Items]
Annual discount per share (in dollars per share)	$ 0.125
Class A Common Stock
Dividends Payable [Line Items]
Annual discount per share (in dollars per share)		$ 0.68	$ 0.50	$ 0.68	$ 0.64

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EQUITY BASED COMPENSATION - Market Condition Awards (Details) - Equity Incentive Plan Shares - Market Condition Awards	3 Months Ended
	Mar. 31, 2019 $ / shares
Equity Based Payments
Closing KKR share price as of valuation date (in dollars per share)	$ 19.90
Risk Free Rate	2.02%
Volatility	25.00%
Dividend Yield	3.42%
Expected Cost of Equity	11.02%

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EQUITY BASED COMPENSATION - Estimated Unrecognized Expense (Details) - USD ($) $ in Millions	Mar. 31, 2019	Nov. 30, 2016
Equity Incentive Plan Shares
Equity Based Payments
Estimated unrecognized equity-based payment expense	$ 340.4
Equity Incentive Plan Shares | Remainder of 2019
Equity Based Payments
Estimated unrecognized equity-based payment expense	132.8
Equity Incentive Plan Shares | 2020
Equity Based Payments
Estimated unrecognized equity-based payment expense	131.8
Equity Incentive Plan Shares | 2021
Equity Based Payments
Estimated unrecognized equity-based payment expense	58.5
Equity Incentive Plan Shares | 2022
Equity Based Payments
Estimated unrecognized equity-based payment expense	16.4
Equity Incentive Plan Shares | 2023
Equity Based Payments
Estimated unrecognized equity-based payment expense	0.9
KKR Holdings Principal Awards
Equity Based Payments
Estimated unrecognized equity-based payment expense	230.3	$ 320.9
KKR Holdings Principal Awards | Remainder of 2019
Equity Based Payments
Estimated unrecognized equity-based payment expense	70.7
KKR Holdings Principal Awards | 2020
Equity Based Payments
Estimated unrecognized equity-based payment expense	86.9
KKR Holdings Principal Awards | 2021
Equity Based Payments
Estimated unrecognized equity-based payment expense	47.2
KKR Holdings Principal Awards | 2022
Equity Based Payments
Estimated unrecognized equity-based payment expense	$ 25.5

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EQUITY BASED COMPENSATION - Awards Rollforward (Details)	3 Months Ended
	Mar. 31, 2019 $ / shares shares
KKR Holdings Principal Awards
Shares
Balance at the beginning of the period (in units) | shares	24,123,993
Granted (in units) | shares	0
Vested (in units) | shares	0
Forfeitures (in units) | shares	(270,000)
Balance at the end of the period (in units) | shares	23,853,993
Weighted Average Grant Date Fair Value
Balance at the beginning of the period (in dollars per unit) | $ / shares	$ 14.42
Granted (in dollars per unit) | $ / shares	0.00
Vested (in dollars per unit) | $ / shares	0.00
Forfeitures (in dollars per unit) | $ / shares	16.28
Balance at the end of the period (in dollars per unit) | $ / shares	$ 14.40
Equity Incentive Plan Shares
Shares
Balance at the beginning of the period (in units) | shares	33,400,183
Granted (in units) | shares	50,511
Vested (in units) | shares	(15,440)
Forfeitures (in units) | shares	(604,519)
Balance at the end of the period (in units) | shares	32,830,735
Weighted Average Grant Date Fair Value
Balance at the beginning of the period (in dollars per unit) | $ / shares	$ 16.23
Granted (in dollars per unit) | $ / shares	18.96
Vested (in dollars per unit) | $ / shares	15.83
Forfeitures (in dollars per unit) | $ / shares	17.43
Balance at the end of the period (in dollars per unit) | $ / shares	$ 16.21

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EQUITY BASED COMPENSATION - Remaining Vesting Tranches (Details) - shares	Mar. 31, 2019	Dec. 31, 2018
Equity Incentive Plan Shares
Equity Based Payments
Principal units (in units)	32,830,735	33,400,183
Equity Incentive Plan Shares | April 1, 2019
Equity Based Payments
Principal units (in units)	8,917,856
Equity Incentive Plan Shares | October 1, 2019
Equity Based Payments
Principal units (in units)	4,733,416
Equity Incentive Plan Shares | April 1, 2020
Equity Based Payments
Principal units (in units)	7,135,649
Equity Incentive Plan Shares | October 1, 2020
Equity Based Payments
Principal units (in units)	3,607,073
Equity Incentive Plan Shares | April 1, 2021
Equity Based Payments
Principal units (in units)	4,093,420
Equity Incentive Plan Shares | October 1, 2021
Equity Based Payments
Principal units (in units)	2,134,028
Equity Incentive Plan Shares | April 1, 2022
Equity Based Payments
Principal units (in units)	916,731
Equity Incentive Plan Shares | October 1, 2022
Equity Based Payments
Principal units (in units)	1,201,390
Equity Incentive Plan Shares | October 1, 2023
Equity Based Payments
Principal units (in units)	91,172
KKR Holdings Principal Awards
Equity Based Payments
Principal units (in units)	23,853,993	24,123,993
KKR Holdings Principal Awards | April 1, 2019
Equity Based Payments
Principal units (in units)	229,514
KKR Holdings Principal Awards | May 1, 2019
Equity Based Payments
Principal units (in units)	3,590,000
KKR Holdings Principal Awards | October 1, 2019
Equity Based Payments
Principal units (in units)	2,455,000
KKR Holdings Principal Awards | April 1, 2020
Equity Based Payments
Principal units (in units)	124,479
KKR Holdings Principal Awards | May 1, 2020
Equity Based Payments
Principal units (in units)	3,590,000
KKR Holdings Principal Awards | October 1, 2020
Equity Based Payments
Principal units (in units)	2,940,000
KKR Holdings Principal Awards | May 1, 2021
Equity Based Payments
Principal units (in units)	3,590,000
KKR Holdings Principal Awards | October 1, 2021
Equity Based Payments
Principal units (in units)	3,425,000
KKR Holdings Principal Awards | October 1, 2022
Equity Based Payments
Principal units (in units)	3,910,000

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RELATED PARTY TRANSACTIONS - Summary of Due From and Due To Affiliates (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Related Party Transaction [Line Items]
Due from Affiliates	$ 734,195	$ 657,189
Due to Affiliates	254,781	275,584
Portfolio Companies
Related Party Transaction [Line Items]
Due from Affiliates	93,855	82,204
Unconsolidated Investment Funds
Related Party Transaction [Line Items]
Due from Affiliates	637,501	568,211
Due to Affiliates	146,511	157,722
Related Entities
Related Party Transaction [Line Items]
Due from Affiliates	2,839	6,774
Due to KKR Holdings in connection with the tax receivable agreement
Related Party Transaction [Line Items]
Due to Affiliates	$ 108,270	$ 117,862

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SEGMENT REPORTING - Financial Data for KKR's Reportable Segments (Details) $ in Thousands		3 Months Ended
		Mar. 31, 2019 USD ($) segment	Mar. 31, 2018 USD ($)	Dec. 31, 2018 USD ($)
Segment Reporting [Abstract]
Number of operating segments | segment		1
Management, Monitoring and Transaction Fees, Net
Fees and Other		$ 372,548	$ 394,394
Realized Performance Income (Loss)
Carried Interest		694,383	62,747
Investment Income (Loss)
Total Investment Income (Loss)		1,335,926	584,530
Total Revenues		1,187,480	472,606
Segment Expenses
Compensation and Benefits		544,562	298,136
Occupancy and Related Charges		14,690	14,215
Total Expenses		728,767	436,601
Preferred Dividends		8,341	8,341
Less: Net Income (Loss) Attributable to Noncontrolling Interests		917,727	398,777
Income Taxes Paid		8,901	19,295
After-tax Distributable Earnings		700,978	170,102
Assets		52,004,019	47,579,153	$ 50,743,375
Segment Liabilities		25,796,178	25,810,215	25,360,766
Segment Book Value	[1]	9,322,371		$ 8,649,610
Reportable segments
Management, Monitoring and Transaction Fees, Net
Fees and Other		397,258	382,186
Realized Performance Income (Loss)
Carried Interest		330,345	202,555
Incentive Fees		19,537	16,407
Total Realized Performance Income (Loss)		349,882	218,962
Investment Income (Loss)
Net Realized Gains (Losses)		44,712	7,875
Interest Income and Dividends		58,207	72,577
Total Investment Income (Loss)		102,919	80,452
Total Revenues		850,059	681,600
Segment Expenses
Compensation and Benefits		340,286	300,480
Occupancy and Related Charges		13,957	13,583
Other Operating Expenses		74,910	57,905
Total Expenses		429,153	371,968
Segment Operating Earnings		420,906	309,632
Interest Expense		44,130	50,192
Preferred Dividends		8,341	8,341
Less: Net Income (Loss) Attributable to Noncontrolling Interests		359	1,203
Income Taxes Paid		53,993	14,168
After-tax Distributable Earnings		314,083	235,728
Assets		18,770,564	16,243,603
Segment Liabilities		4,100,354	3,736,797
Segment Book Value		14,148,206	11,983,289
Management Fees
Management, Monitoring and Transaction Fees, Net
Fees and Other		188,408	187,727
Management Fees | Reportable segments
Management, Monitoring and Transaction Fees, Net
Fees and Other		292,296	251,585
Transaction Fees
Management, Monitoring and Transaction Fees, Net
Fees and Other		188,203	158,653
Transaction Fees | Reportable segments
Management, Monitoring and Transaction Fees, Net
Fees and Other		186,727	156,845
Monitoring Fees
Management, Monitoring and Transaction Fees, Net
Fees and Other		25,651	17,586
Monitoring Fees | Reportable segments
Management, Monitoring and Transaction Fees, Net
Fees and Other		25,651	17,530
Fee Credits
Management, Monitoring and Transaction Fees, Net
Fees and Other		(103,477)	(29,053)
Fee Credits | Reportable segments
Management, Monitoring and Transaction Fees, Net
Fees and Other		(107,416)	(43,774)
Compensation and Benefits
Segment Expenses
Equity based expenses		78,551	95,078
Equity Incentive Plan Awards | Compensation and Benefits
Segment Expenses
Equity based expenses		$ 54,885	$ 67,796

[1] See Note 1 "Organization."

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SEGMENT REPORTING - Revenues Disaggregated By Business Line (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenues from External Customers and Long-Lived Assets [Line Items]
Fees and Other	$ 372,548	$ 394,394
Carried Interest	694,383	62,747
Total Investment Income (Loss)	1,335,926	584,530
Total Revenues	1,187,480	472,606
Reportable segments
Revenues from External Customers and Long-Lived Assets [Line Items]
Fees and Other	397,258	382,186
Carried Interest	330,345	202,555
Incentive Fees	19,537	16,407
Total Realized Performance Income (Loss)	349,882	218,962
Net Realized Gains (Losses)	44,712	7,875
Interest Income and Dividends	58,207	72,577
Total Investment Income (Loss)	102,919	80,452
Total Revenues	850,059	681,600
Private Markets Business Line | Reportable segments
Revenues from External Customers and Long-Lived Assets [Line Items]
Fees and Other	225,547	181,066
Carried Interest	330,345	202,555
Incentive Fees	675	0
Total Realized Performance Income (Loss)	331,020	202,555
Net Realized Gains (Losses)	0	0
Interest Income and Dividends	0	0
Total Investment Income (Loss)	0	0
Total Revenues	556,567	383,621
Public Markets Business Line | Reportable segments
Revenues from External Customers and Long-Lived Assets [Line Items]
Fees and Other	111,457	93,522
Carried Interest	0	0
Incentive Fees	18,862	16,407
Total Realized Performance Income (Loss)	18,862	16,407
Net Realized Gains (Losses)	0	0
Interest Income and Dividends	0	0
Total Investment Income (Loss)	0	0
Total Revenues	130,319	109,929
Capital Markets Business Line | Reportable segments
Revenues from External Customers and Long-Lived Assets [Line Items]
Fees and Other	60,254	107,598
Carried Interest	0	0
Incentive Fees	0	0
Total Realized Performance Income (Loss)	0	0
Net Realized Gains (Losses)	0	0
Interest Income and Dividends	0	0
Total Investment Income (Loss)	0	0
Total Revenues	60,254	107,598
Principal Activities Business Line | Reportable segments
Revenues from External Customers and Long-Lived Assets [Line Items]
Fees and Other	0	0
Carried Interest	0	0
Incentive Fees	0	0
Total Realized Performance Income (Loss)	0	0
Net Realized Gains (Losses)	44,712	7,875
Interest Income and Dividends	58,207	72,577
Total Investment Income (Loss)	102,919	80,452
Total Revenues	102,919	80,452
Management Fees
Revenues from External Customers and Long-Lived Assets [Line Items]
Fees and Other	188,408	187,727
Management Fees | Reportable segments
Revenues from External Customers and Long-Lived Assets [Line Items]
Fees and Other	292,296	251,585
Management Fees | Private Markets Business Line | Reportable segments
Revenues from External Customers and Long-Lived Assets [Line Items]
Fees and Other	183,221	158,190
Management Fees | Public Markets Business Line | Reportable segments
Revenues from External Customers and Long-Lived Assets [Line Items]
Fees and Other	109,075	93,395
Management Fees | Capital Markets Business Line | Reportable segments
Revenues from External Customers and Long-Lived Assets [Line Items]
Fees and Other	0	0
Management Fees | Principal Activities Business Line | Reportable segments
Revenues from External Customers and Long-Lived Assets [Line Items]
Fees and Other	0	0
Transaction Fees
Revenues from External Customers and Long-Lived Assets [Line Items]
Fees and Other	188,203	158,653
Transaction Fees | Reportable segments
Revenues from External Customers and Long-Lived Assets [Line Items]
Fees and Other	186,727	156,845
Transaction Fees | Private Markets Business Line | Reportable segments
Revenues from External Customers and Long-Lived Assets [Line Items]
Fees and Other	99,017	46,689
Transaction Fees | Public Markets Business Line | Reportable segments
Revenues from External Customers and Long-Lived Assets [Line Items]
Fees and Other	27,456	2,558
Transaction Fees | Capital Markets Business Line | Reportable segments
Revenues from External Customers and Long-Lived Assets [Line Items]
Fees and Other	60,254	107,598
Transaction Fees | Principal Activities Business Line | Reportable segments
Revenues from External Customers and Long-Lived Assets [Line Items]
Fees and Other	0	0
Monitoring Fees
Revenues from External Customers and Long-Lived Assets [Line Items]
Fees and Other	25,651	17,586
Monitoring Fees | Reportable segments
Revenues from External Customers and Long-Lived Assets [Line Items]
Fees and Other	25,651	17,530
Monitoring Fees | Private Markets Business Line | Reportable segments
Revenues from External Customers and Long-Lived Assets [Line Items]
Fees and Other	25,651	17,530
Monitoring Fees | Public Markets Business Line | Reportable segments
Revenues from External Customers and Long-Lived Assets [Line Items]
Fees and Other	0	0
Monitoring Fees | Capital Markets Business Line | Reportable segments
Revenues from External Customers and Long-Lived Assets [Line Items]
Fees and Other	0	0
Monitoring Fees | Principal Activities Business Line | Reportable segments
Revenues from External Customers and Long-Lived Assets [Line Items]
Fees and Other	0	0
Fee Credits
Revenues from External Customers and Long-Lived Assets [Line Items]
Fees and Other	(103,477)	(29,053)
Fee Credits | Reportable segments
Revenues from External Customers and Long-Lived Assets [Line Items]
Fees and Other	(107,416)	(43,774)
Fee Credits | Private Markets Business Line | Reportable segments
Revenues from External Customers and Long-Lived Assets [Line Items]
Fees and Other	(82,342)	(41,343)
Fee Credits | Public Markets Business Line | Reportable segments
Revenues from External Customers and Long-Lived Assets [Line Items]
Fees and Other	(25,074)	(2,431)
Fee Credits | Capital Markets Business Line | Reportable segments
Revenues from External Customers and Long-Lived Assets [Line Items]
Fees and Other	0	0
Fee Credits | Principal Activities Business Line | Reportable segments
Revenues from External Customers and Long-Lived Assets [Line Items]
Fees and Other	$ 0	$ 0

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SEGMENT REPORTING - Revenues (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Segment Reporting Information [Line Items]
Revenues	$ 1,187,480	$ 472,606
Deduct: Capital Allocation-Based Income (GAAP)	814,932	78,212
Add: Segment Realized Carried Interest	694,383	62,747
Add: Segment Realized Investment Income (Loss)	1,335,926	584,530
Segment Reconciling Items
Segment Reporting Information [Line Items]
Add: Management Fees - Consolidated Funds and Other	121,949	64,596
Deduct: Fee Credits - Consolidated Funds	3,939	14,721
Deduct: Capital Allocation-Based Income (GAAP)	814,932	78,212
Add: Segment Realized Carried Interest	330,345	202,555
Add: Segment Realized Investment Income (Loss)	102,919	80,452
Deduct: Revenue Earned by Other Consolidated Entities	29,703	25,465
Deduct: Expense Reimbursements	44,060	20,211
Reportable segments
Segment Reporting Information [Line Items]
Revenues	850,059	681,600
Add: Segment Realized Carried Interest	330,345	202,555
Add: Segment Realized Investment Income (Loss)	$ 102,919	$ 80,452

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SEGMENT REPORTING - Expenses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Segment Reporting Information [Line Items]
Total Segment Expenses	$ 728,767	$ 436,601
Deduct: Amortization of Intangibles	500	5,000
Segment Reconciling Items
Segment Reporting Information [Line Items]
Deduct: Equity-based and Other Compensation - KKR Holdings L.P.	23,743	32,695
Deduct: Segment Unrealized Performance Income Compensation	159,880	(43,123)
Deduct: Amortization of Intangibles	535	5,030
Deduct: Reimbursable Expenses	52,032	26,093
Deduct: Operating Expenses relating to Other Consolidated Entities	51,818	44,309
Add: Other	(11,606)	371
Reportable segments
Segment Reporting Information [Line Items]
Total Segment Expenses	$ 429,153	$ 371,968

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SEGMENT REPORTING - Income (Loss) Before Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Segment Reporting Information [Line Items]
Net Income (Loss) Attributable to KKR & Co. Inc. Class A Common Stockholders	$ 700,978	$ 170,102
Add: Equity-based and Other Compensation - KKR Holdings L.P.	78,268	96,227
Deduct: Net Unrealized Gains (Losses)	1,074,097	442,420
Add: Income Tax Provision	167,593	17,641
Income Taxes Paid	8,901	19,295
Segment Reconciling Items
Segment Reporting Information [Line Items]
Add: Net Income (Loss) Attributable to Noncontrolling Interests held by KKR Holdings L.P.	481,368	121,002
Add: Equity-based and Other Compensation - KKR Holdings L.P.	23,118	32,695
Add: Amortization of Intangibles and Other, net	56,153	47,709
Deduct: Unrealized Carried Interest	401,612	(111,732)
Deduct: Net Unrealized Gains (Losses)	819,402	207,862
Add: Unrealized Performance Income Compensation	159,880	(43,123)
Add: Income Tax Provision	167,593	17,641
Income Taxes Paid	53,993	14,168
Reportable segments
Segment Reporting Information [Line Items]
Net Income (Loss) Attributable to KKR & Co. Inc. Class A Common Stockholders	314,083	235,728
Income Taxes Paid	$ 53,993	$ 14,168

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SEGMENT REPORTING - Reconciliation of Assets from Segment to Consolidated (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018
Segment Reporting, Asset Reconciling Item [Line Items]
Total Assets	$ 52,004,019	$ 50,743,375	$ 47,579,153
Carry Pool Reclassification	1,089,045	922,977
Impact of KKR Management Holdings Corp.	2,687,802	$ 2,536,692
Segment Reconciling Items
Segment Reporting, Asset Reconciling Item [Line Items]
Impact of Consolidation of Investment Vehicles and Other Entities	(31,561,635)		(29,972,064)
Carry Pool Reclassification	(1,089,045)		(1,176,070)
Other Reclassifications	(582,775)		0
Impact of KKR Management Holdings Corp.	0		(187,416)
Reportable segments
Segment Reporting, Asset Reconciling Item [Line Items]
Total Assets	$ 18,770,564		$ 16,243,603

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SEGMENT REPORTING - Reconciliation of Liabilities from Segment to Consolidated (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018
Segment Reporting, Other Significant Reconciling Item [Line Items]
Segment Liabilities	$ 25,796,178	$ 25,360,766	$ 25,810,215
Carry Pool Reclassification	1,089,045	$ 922,977
Segment Reconciling Items
Segment Reporting, Other Significant Reconciling Item [Line Items]
Impact of Consolidation of Investment Vehicles and Other Entities	(20,024,004)		(20,775,320)
Carry Pool Reclassification	(1,089,045)		(1,176,070)
Other Reclassifications	(582,775)		0
Impact of KKR Management Holdings Corp.	0		(122,028)
Reportable segments
Segment Reporting, Other Significant Reconciling Item [Line Items]
Segment Liabilities	$ 4,100,354		$ 3,736,797

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SEGMENT REPORTING - Reconciliation of Stockholders' Equity from Segment to Consolidated (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Mar. 31, 2018
Segment Reporting, Other Significant Reconciling Item [Line Items]
KKR & Co. Inc. Stockholders' Equity - Common Stockholders	$ 8,839,817	$ 6,918,185
Segment Reconciling Items
Segment Reporting, Other Significant Reconciling Item [Line Items]
Impact of Consolidation of Investment Vehicles and Other Entities	246,793	254,777
Other Reclassifications	(17,446)	(17,446)
Noncontrolling Interests Held by KKR Holdings L.P.	5,079,042	4,893,161
Impact of KKR Management Holdings Corp.	0	(65,388)
Reportable segments
Segment Reporting, Other Significant Reconciling Item [Line Items]
KKR & Co. Inc. Stockholders' Equity - Common Stockholders	$ 14,148,206	$ 11,983,289

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EQUITY - Narrative (Details)	12 Months Ended
	Dec. 31, 2015
Equity [Abstract]
Percentage of carried interest received by general partners (up to)	1.00%

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EQUITY - Repurchase Program (Details) - 2015 Unit Repurchase Program - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Class of Stock [Line Items]
Unit repurchase program, authorized amount	$ 500,000,000
Class A Common Stock
Class of Stock [Line Items]
Stock repurchased (in shares)	1,400,000
Stock retired (in shares)	0	0

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EQUITY - Noncontrolling Interests Held by KKR Holdings (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Capital contributions		$ 1,270,723
Capital distributions		(930,232)
KKR Holdings
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Net income (loss) attributable to noncontrolling interests	$ 481,368	121,002
Noncontrolling Interests
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Balance at the beginning of the period	15,610,358
Net income (loss) attributable to noncontrolling interests	917,727
Other comprehensive income (loss), net of tax	2,632
Exchange of KKR Holdings Units to Class A Common Stock and Other	(7,094)
Equity-based and other non-cash compensation	23,118
Capital contributions	1,194,815	1,270,723
Capital distributions	(856,086)	$ (839,134)
Balance at the end of the period	16,885,470
Noncontrolling Interests | Noncontrolling Interests in Consolidated Entities
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Balance at the beginning of the period	10,984,910
Net income (loss) attributable to noncontrolling interests	436,359
Other comprehensive income (loss), net of tax	2,511
Exchange of KKR Holdings Units to Class A Common Stock and Other	0
Equity-based and other non-cash compensation	0
Capital contributions	1,194,792
Capital distributions	(812,144)
Balance at the end of the period	11,806,428
Noncontrolling Interests | KKR Holdings
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Balance at the beginning of the period	4,625,448
Net income (loss) attributable to noncontrolling interests	481,368
Other comprehensive income (loss), net of tax	121
Exchange of KKR Holdings Units to Class A Common Stock and Other	(7,094)
Equity-based and other non-cash compensation	23,118
Capital contributions	23
Capital distributions	(43,942)
Balance at the end of the period	$ 5,079,042

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EQUITY - Net Income (Loss) Attributable To Noncontrolling Interests Held by KKR Holdings (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Net Income (Loss)	$ 1,627,046	$ 602,894
Less: Net Income (Loss) Attributable to Redeemable Noncontrolling Interests	0	25,674
Less: Net income (loss) attributable to Noncontrolling Interests in consolidated entities	436,359	277,775
Less: Preferred Stock Dividends	8,341	8,341
Plus: Income tax expense (benefit) attributable to KKR & Co. Inc.	158,962	6,068
Net income (loss) attributable to KKR & Co. L.P. Common Unitholders and KKR Holdings	1,341,308	297,172
KKR Holdings
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Net income (loss) attributable to noncontrolling interests	$ 481,368	$ 121,002

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EQUITY - Redeemable Noncontrolling Interests (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($)
Increase (Decrease) in Redeemable Noncontrolling Interests
Balance	$ 1,122,641
Changes in consolidation	(1,122,641)
Balance	$ 0

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COMMITMENTS AND CONTINGENCIES - Contingent Repayment Guarantees (Details)	Mar. 31, 2019 USD ($)
Contingent Repayment Guarantees
Private equity fund carried interest amount subject to clawback provision assuming liquidation at fair value	$ 0
Liquidation value for clawback obligation	0
Clawback obligation amount if private equity vehicles liquidated at fair value	2,100,000,000
KKR
Investment Commitments
Unfunded commitments	5,086,900,000
Principal Activities
Investment Commitments
Unfunded commitments	153,700,000
Capital Markets
Investment Commitments
Unfunded commitments	$ 516,200,000

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COMMITMENTS AND CONTINGENCIES - Minimum Future Lease Payments (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Operating Lease Liabilities, Payments Due [Abstract]
April 2019 - March 2020	$ 50,312
April 2020 - March 2022	66,055
April 2022 - March 2024	26,828
April 2024 and thereafter	18,855
Total minimum payments required	162,050
Less: Imputed Interest	(9,977)
Total operating lease liabilities	152,073
Lessee, Operating Lease, Not yet Commenced, Description [Abstract]
Future lease payments for lease not yet commenced	$ 87,200
Term of lease not yet commenced	15 years
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2019		$ 50,649
2020-2021		69,263
2022-2023		29,687
2024 and thereafter		76,332
Total minimum payments required		$ 225,931

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SUBSEQUENT EVENTS (Details) - $ / shares		3 Months Ended
	Apr. 30, 2019	Mar. 31, 2019
Subsequent Events
Dividend declared (in dollars per share)		$ 0.125
Subsequent Event | Common Stock
Subsequent Events
Dividend declared (in dollars per share)	$ 0.125
Subsequent Event | Series A Preferred Stock
Subsequent Events
Dividend declared (in dollars per share)	0.421875
Subsequent Event | Series B Preferred Stock
Subsequent Events
Dividend declared (in dollars per share)	$ 0.406250