Item 1. FINANCIAL STATEMENTS

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Item 1. FINANCIAL STATEMENTS

KKR & CO. INC.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)

(Amounts in Thousands, Except Share and Per Share Data)


	March 31, 2022		December 31, 2021
Assets
Asset Management
Cash and Cash Equivalents	$	8,324,897	$	6,699,668
Restricted Cash and Cash Equivalents	103,961		134,298
Investments	88,770,480		88,775,514
Due from Affiliates	1,277,574		1,224,283
Other Assets	2,407,714		2,886,313
	100,884,626		99,720,076
Insurance
Cash and Cash Equivalents	$	4,590,032	$	3,391,934
Restricted Cash and Cash Equivalents	523,503		300,404
Investments	122,799,871		123,763,675
Reinsurance Recoverable	24,639,148		25,062,256
Insurance Intangible Assets	1,481,284		1,407,149
Other Assets	6,302,775		5,053,518
Separate Account Assets	5,069,742		5,586,428
	165,406,355		164,565,364
Total Assets	$	266,290,981	$	264,285,440

Liabilities and Equity
Asset Management
Debt Obligations	$	36,112,872	$	36,669,755
Due to Affiliates	457,668		462,722
Accrued Expenses and Other Liabilities	7,241,786		7,896,897
	43,812,326		45,029,374
Insurance
Policy Liabilities	$	131,076,687	$	126,520,044
Debt Obligations	2,029,769		1,908,006
Funds Withheld Payable at Interest	21,781,731		23,460,253
Accrued Expenses and Other Liabilities	4,615,841		3,263,566
Reinsurance Liabilities	607,014		378,549
Separate Account Liabilities	5,069,742		5,586,428
	165,180,784		161,116,846
Total Liabilities	208,993,110		206,146,220


	March 31, 2022		December 31, 2021

Commitments and Contingencies (See Note 24)



Redeemable Noncontrolling Interests	$	81,793	$	82,491

Stockholders' Equity

Series C Mandatory Convertible Preferred Stock, $0.01 par value. 23,000,000 shares issued and outstanding as of March 31, 2022 and December 31, 2021.	1,115,792		1,115,792
Series I Preferred Stock, $0.01 par value. 1 share authorized, 1 share issued and outstanding as of March 31, 2022 and December 31, 2021.	—		—
Series II Preferred Stock, $0.01 par value. 499,999,999 shares authorized, 258,726,163 and 258,726,163 shares, issued and outstanding as of March 31, 2022 and December 31, 2021, respectively.	2,587		2,587
Common Stock, $0.01 par value. 3,500,000,000 shares authorized, 590,472,444 and 595,663,618 shares, issued and outstanding as of March 31, 2022 and December 31, 2021, respectively.	5,905		5,957
Additional Paid-In Capital	8,729,544		8,997,435
Retained Earnings	7,510,671		7,670,182
Accumulated Other Comprehensive Income (Loss) ("AOCI")	(1,650,212)		(209,789)
Total KKR & Co. Inc. Stockholders' Equity	15,714,287		17,582,164
Noncontrolling Interests	41,501,791		40,474,565
Total Equity	57,216,078		58,056,729
Total Liabilities and Equity	$	266,290,981	$	264,285,440

See notes to financial statements.

KKR & CO. INC.

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

(Amounts in Thousands)

The following presents the portion of the consolidated balances provided in the consolidated statements of financial condition attributable to consolidated variable interest entities ("VIEs"). As of March 31, 2022 and December 31, 2021, KKR's consolidated VIEs consist primarily of (i) certain collateralized financing entities ("CFEs") holding collateralized loan obligations ("CLOs"), (ii) certain investment funds, and (iii) certain VIEs formed by Global Atlantic. The noteholders, creditors and equity holders of these VIEs have no recourse to the assets of any other KKR entity.

With respect to consolidated CLOs and certain investment funds, 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 and not generally to KKR. 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 to them, if any.

With respect to certain other VIEs consolidated by Global Atlantic, Global Atlantic has formed certain VIEs to hold investments, including fixed maturity securities, consumer and other loans, renewable energy, transportation and real estate. These VIEs issue beneficial interests primarily to Global Atlantic’s insurance companies.


	March 31, 2022
	Consolidated CLOs		Consolidated Funds and Other Investment Vehicles		Other VIEs		Total
Assets
Asset Management
Cash and Cash Equivalents	$	837,670	$	2,674,422	$	—	$	3,512,092
Restricted Cash and Cash Equivalents	—		68,508		—		68,508
Investments	22,014,866		49,373,376		—		71,388,242

Other Assets	190,869		396,204		—		587,073
	23,043,405		52,512,510		—		75,555,915
Insurance
Cash and Cash Equivalents	—		—		1,365,544		1,365,544

Investments	—		—		23,186,192		23,186,192
Accrued Investment Income	—		—		137,575		137,575
Other Assets	—		—		1,072,608		1,072,608
	—		—		25,761,919		25,761,919

Total Assets	$	23,043,405	$	52,512,510	$	25,761,919	$	101,317,834

Liabilities
Asset Management
Debt Obligations	$	21,213,206	$	5,947,090	$	—	$	27,160,296
Accrued Expenses and Other Liabilities	1,021,892		676,814		—		1,698,706
	22,235,098		6,623,904		—		28,859,002
Insurance
Accrued Expenses and Other Liabilities	—		—		1,017,952		1,017,952


Total Liabilities	$	22,235,098	$	6,623,904	$	1,017,952	$	29,876,954


	December 31, 2021
	Consolidated CLOs		Consolidated Funds and Other Investment Vehicles		Other VIEs		Total
Assets
Asset Management
Cash and Cash Equivalents	$	1,215,992	$	1,085,958	$	—	$	2,301,950
Restricted Cash and Cash Equivalents	—		90,255		—		90,255
Investments	22,076,809		46,780,595		—		68,857,404
Other Assets	173,329		641,946		—		815,275
	23,466,130		48,598,754		—		72,064,884
Insurance
Cash and Cash Equivalents	—		—		1,406,974		1,406,974
Investments	—		—		20,043,016		20,043,016
Accrued Investment Income	—		—		100,693		100,693
Other Assets	—		—		506,777		506,777
	—		—		22,057,460		22,057,460
Total Assets	$	23,466,130	$	48,598,754	$	22,057,460	$	94,122,344

Liabilities
Asset Management
Debt Obligations	$	21,271,084	$	6,291,292	$	—	$	27,562,376
Accrued Expenses and Other Liabilities	1,367,778		691,288		—		2,059,066
	22,638,862		6,982,580		—		29,621,442
Insurance
Accrued Expenses and Other Liabilities	—		—		594,946		594,946
Total Liabilities	$	22,638,862	$	6,982,580	$	594,946	$	30,216,388

See notes to financial statements.

KKR & CO. INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(Amounts in Thousands, Except Share and Per Share Data)


	Three Months Ended March 31,

		2022			2021
Revenues
Asset Management
Fees and Other		$	780,511		$	493,311
Capital Allocation-Based Income (Loss)		(945,743)			2,684,647
		(165,232)			3,177,958
Insurance
Net Premiums		372,144			1,176,142
Policy Fees		318,436			201,683
Net Investment Income		812,605			444,781
Net Investment-Related Gains (Losses)		(368,680)			(455,702)
Other Income		34,744			18,144
		1,169,249			1,385,048
Total Revenues		1,004,017			4,563,006

Expenses
Asset Management
Compensation and Benefits		283,672			1,306,797
Occupancy and Related Charges		18,149			15,200
General, Administrative and Other		234,665			166,997
		536,486			1,488,994
Insurance
Policy Benefits and Claims		726,060			1,485,318
Amortization of Policy Acquisition Costs		(7,733)			(20,478)
Interest Expense		13,219			10,672
Insurance Expenses		116,743			52,084
General, Administrative and Other		167,214			79,955
		1,015,503		—	1,607,551
Total Expenses		1,551,989		—	3,096,545


Investment Income (Loss) - Asset Management
Net Gains (Losses) from Investment Activities		914,261			2,696,200
Dividend Income		662,350			75,746
Interest Income		352,556			367,455
Interest Expense		(281,759)			(251,756)
Total Investment Income (Loss)		1,647,408			2,887,645


	Three Months Ended March 31,

		2022		2021
Income (Loss) Before Taxes		1,099,436		4,354,106

Income Tax Expense (Benefit)		(3,166)		438,739

Net Income (Loss)		1,102,602		3,915,367
Net Income (Loss) Attributable to Redeemable Noncontrolling Interests		(63)		—
Net Income (Loss) Attributable to Noncontrolling Interests		1,159,185		2,245,531
Net Income (Loss) Attributable to KKR & Co. Inc.		(56,520)		1,669,836

Series A Preferred Stock Dividends		—		5,822
Series B Preferred Stock Dividends		—		2,519
Series C Mandatory Convertible Preferred Stock Dividends		17,250		17,250

Net Income (Loss) Attributable to KKR & Co. Inc. Common Stockholders		$	(73,770)	$	1,644,245


Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Common Stock
Basic		$	(0.12)	$	2.85
Diluted		$	(0.12)	$	2.68
Weighted Average Shares of Common Stock Outstanding
Basic		592,202,835		576,727,967
Diluted		592,202,835		620,888,491

See notes to financial statements.

KKR & CO. INC.

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

(Amounts in Thousands)


	Three Months Ended March 31,
		2022		2021
Net Income (Loss)		$	1,102,602	$	3,915,367

Other Comprehensive Income (Loss), Net of Tax:

Unrealized Gains (Losses) on Available-For-Sale Securities and Other		(3,339,211)		(1,490,289)





Foreign Currency Translation Adjustments		(22,281)		(15,257)

Comprehensive Income (Loss)		(2,258,890)		2,409,821

Comprehensive Income (Loss) Attributable to Redeemable Noncontrolling Interests		(63)		—
Comprehensive Income (Loss) Attributable to Noncontrolling Interests		(761,884)		1,366,143

Comprehensive Income (Loss) Attributable to KKR & Co. Inc.		$	(1,496,943)	$	1,043,678

See notes to financial statements.


KKR & CO. INC. CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) (Amounts in Thousands, Except Share and Per Share Data)

	Three Months Ended March 31, 2022			Three Months Ended March 31, 2021
	Amounts		Shares	Amounts		Shares
Series A and B Preferred Stock
Beginning of Period	$	—	—	$	482,554	20,000,000


End of Period	—		—	482,554		20,000,000
Series C Mandatory Convertible Preferred Stock
Beginning of Period	1,115,792		23,000,000	1,115,792		23,000,000
End of Period	1,115,792		23,000,000	1,115,792		23,000,000
Series I Preferred Stock
Beginning of Period	—		1	—		1
End of Period	—		1	—		1
Series II Preferred Stock
Beginning of Period	2,587		258,726,163	2,756		275,626,493
Cancellation of Series II Preferred Stock	—		—	(23)		(2,258,781)
End of Period	2,587		258,726,163	2,733		273,367,712
Common Stock
Beginning of Period	5,957		595,663,618	5,729		572,893,738
Private Placement Share Issuance	—		—	9		964,871
Exchange of KKR Holdings Units	—		—	23		2,258,781
Net Delivery of Common Stock	—		—	37		3,657,470
Clawback of Transfer Restricted Shares	—		—	—		(4,263)
Repurchases of Common Stock	(52)		(5,191,174)	(15)		(1,501,558)
End of Period	5,905		590,472,444	5,783		578,269,039
Additional Paid-In Capital
Beginning of Period	8,997,435			8,687,817
Private Placement Share Issuance	—			38,454
Exchange of KKR Holdings Units	—			58,501
Tax Effects - Exchange of KKR Holdings Units and Other	26,780			4,627
Net Delivery of Common Stock	—			(55,910)
Repurchases of Common Stock	(346,599)			(71,351)
Equity-Based Compensation	51,928			46,201

End of Period	8,729,544			8,708,339
Retained Earnings
Beginning of Period	7,670,182			3,440,782
Net Income (Loss) Attributable to KKR & Co. Inc.	(56,520)			1,669,836
Series A Preferred Stock Dividends ($0.421875 per share)	—			(5,822)

Series B Preferred Stock Dividends ($0.406250 per share)	—			(2,519)

Series C Mandatory Convertible Preferred Stock Dividends ($0.75 per share)	(17,250)			(17,250)
Common Stock Dividends ($0.145 and $0.135 per share, respectively)	(85,741)			(77,804)
End of Period	7,510,671			5,007,223
Accumulated Other Comprehensive Income (Loss) (net of tax)
Beginning of Period	(209,789)			(18,612)
Other Comprehensive Income (Loss)	(1,440,423)			(626,158)
Exchange of KKR Holdings Units	—			(1,598)

End of Period	(1,650,212)			(646,368)
Total KKR & Co. Inc. Stockholders' Equity	15,714,287			14,676,056
Noncontrolling Interests (See Note 22)	41,501,791			31,534,729
Total Equity	$	57,216,078		$	46,210,785

Redeemable Noncontrolling Interests (See Note 23)	$	81,793		$	91,845

See notes to financial statements.

KKR & CO. INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Amounts in Thousands)


	Three Months Ended March 31,
		2022		2021
Operating Activities
Net Income (Loss)		$	1,102,602	$	3,915,367
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided (Used) by Operating Activities:
Equity-Based and Other Non-Cash Compensation		168,792		88,162
Net Realized (Gains) Losses - Asset Management		(279,629)		(584,381)
Change in Unrealized (Gains) Losses - Asset Management		(634,632)		(2,111,819)
Capital Allocation-Based (Income) Loss - Asset Management		945,743		(2,684,647)
Net Realized (Gains) Losses - Insurance		(74,974)		441,553
Net Accretion and Amortization		74,962		82,607
Interest Credited to Policyholder Account Balances (net of Policy Fees) - Insurance		470,543		422,873
Other Non-Cash Amounts		(8,079)		2,297
Cash Flows Due to Changes in Operating Assets and Liabilities:
Reinsurance Transactions and Acquisitions, Net of Cash Provided - Insurance		5,764		415,777
Change in Premiums, Notes Receivable and Reinsurance Recoverable, Net of Reinsurance Premiums Payable - Insurance		291,418		295,131
Change in Deferred Policy Acquisition Costs - Insurance		(120,435)		(73,201)
Change in Policy Liabilities and Accruals, Net - Insurance		(422,298)		(189,108)
Change in Consolidation		—		(21,149)
Change in Due from / to Affiliates		(68,560)		(212,300)
Change in Other Assets		570,262		308,439
Change in Accrued Expenses and Other Liabilities		(491,126)		1,135,268
Investments Purchased - Asset Management		(12,736,719)		(15,127,133)
Proceeds from Investments - Asset Management		12,123,184		13,823,098
Net Cash Provided (Used) by Operating Activities		916,818		(73,166)

Investing Activities
Acquisition of Global Atlantic, Net of Cash Acquired (See Note 3)		—		(415,640)
Purchases of Fixed Assets		(11,888)		(27,727)
Investments Purchased - Insurance		(15,105,620)		(5,300,346)
Proceeds from Investments - Insurance		13,130,681		5,255,841
Other Investing Activities, Net - Insurance		(11,002)		111,836
Net Cash Provided (Used) by Investing Activities		(1,997,829)		(376,036)

Financing Activities
Series A and B Preferred Stock Dividends		—		(8,341)
Series C Mandatory Convertible Preferred Stock Dividends		(17,250)		(17,250)
Common Stock Dividends		(85,741)		(77,804)
Distributions to Redeemable Noncontrolling Interests		(635)		—

Distributions to Noncontrolling Interests		(1,873,873)		(1,027,834)
Contributions from Noncontrolling Interests		3,494,333		3,164,049


Net Delivery of Common Stock (Equity Incentive Plans)		—		(55,873)
Repurchases of Common Stock		(346,651)		(71,366)
Private Placement Share Issuance		—		38,463
Proceeds from Debt Obligations		5,515,904		5,109,790
Repayment of Debt Obligations		(5,484,370)		(3,552,362)
Financing Costs Paid		(42,816)		(921)
Additions to Contractholder Deposit Funds - Insurance		5,066,018		2,433,498
Withdrawals from Contractholder Deposit Funds - Insurance		(2,628,071)		(1,475,176)
Reinsurance Transactions, Net of Cash Provided - Insurance		46,566		—
Other Financing Activity, Net - Insurance		503,062		269
Net Cash Provided (Used) by Financing Activities		4,146,476		4,459,142


	Three Months Ended March 31,
		2022		2021

Effect of exchange rate changes on cash, cash equivalents and restricted cash		(49,376)		(25,722)

Net Increase/(Decrease) in Cash, Cash Equivalents and Restricted Cash		$	3,016,089	$	3,984,218
Cash, Cash Equivalents and Restricted Cash, Beginning of Period		10,526,304		6,993,457
Cash, Cash Equivalents and Restricted Cash, End of Period		$	13,542,393	$	10,977,675



Cash, Cash Equivalents and Restricted Cash are comprised of the following:

Beginning of the Period
Asset Management
Cash and Cash Equivalents		$	6,699,668	$	6,507,874
Restricted Cash and Cash Equivalents		134,298		485,583
Total Asset Management		6,833,966		6,993,457
Insurance
Cash and Cash Equivalents		$	3,391,934	$	—
Restricted Cash and Cash Equivalents		300,404		—
Total Insurance		3,692,338		—

Cash, Cash Equivalents and Restricted Cash, Beginning of Period		$	10,526,304	$	6,993,457

End of the Period
Asset Management
Cash and Cash Equivalents		$	8,324,897	$	5,031,724
Restricted Cash and Cash Equivalents		103,961		79,017
Total Asset Management		8,428,858		5,110,741
Insurance
Cash and Cash Equivalents		$	4,590,032	$	5,467,012
Restricted Cash and Cash Equivalents		523,503		399,922
Total Insurance		5,113,535		5,866,934

Cash, Cash Equivalents and Restricted Cash, End of Period		$	13,542,393	$	10,977,675

See notes to financial statements.

KKR & CO. INC.

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

(Amounts in Thousands)


	Three Months Ended March 31,
	2022		2021
Supplemental Disclosures of Cash Flow Information
Payments for Interest	$	329,776	$	289,420
Payments for Income Taxes	$	24,406	$	11,044
Payments for Operating Lease Liabilities	$	11,600	$	9,846

Supplemental Disclosures of Non-Cash Investing and Financing Activities
Equity-Based and Other Non-Cash Contributions	$	134,964	$	82,517

Non-Cash Contribution from Noncontrolling Interests	$	85,258	$	845,943


Debt Obligations - Net Gains (Losses), Translation and Other	$	545,574	$	235,821
Tax Effects - Exchange of KKR Holdings L.P. Units and Other	$	26,780	$	4,627

Right-of-Use Assets obtained in Exchange for new Operating Lease Liabilities	$	1,211	$	31,003
Investments Acquired through Reinsurance Agreements	$	2,697,956	$	368,328
Policyholder Liabilities and Accruals Acquired through Reinsurance Agreements	$	236,698	$	1,112,370
Contractholder Deposit Funds Acquired through Reinsurance Agreements	$	2,537,960	$	6,988

Change in Consolidation
Investments	$	—	$	(49,403)

Other Assets	$	—	$	(32,689)
Debt Obligations	$	—	$	(26,165)
Due to Affiliates	$	—	$	(238)
Accrued Expenses and Other Liabilities	$	—	$	(10,350)
Noncontrolling Interests	$	—	$	(66,488)

See notes to financial statements.

KKR & CO. INC.

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

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

1. ORGANIZATION

KKR & Co. Inc. (NYSE: KKR), through its subsidiaries (collectively, "KKR"), is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of The Global Atlantic Financial Group LLC ("TGAFG" and, together with its subsidiaries, "Global Atlantic").

KKR & Co. Inc. is the parent company of KKR Group Holdings Corp., which is the general partner of KKR Group Partnership L.P. ("KKR Group Partnership"). KKR & Co. Inc. both indirectly controls KKR Group Partnership and indirectly holds Class A partner interests in KKR Group Partnership ("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., and holders of other exchangeable securities through KKR Holdings II L.P. As of March 31, 2022, KKR & Co. Inc. held indirectly approximately 69.4% of the KKR Group Partnership Units. The percentage ownership in KKR Group Partnership may continue to change as KKR Holdings and the holders of other exchangeable securities exchange their KKR Group Partnership Units for shares of common stock of KKR & Co. Inc. or when KKR & Co. Inc. otherwise issues or repurchases shares of common stock of KKR & Co. Inc. KKR Group Partnership also has outstanding limited partner interests that provide for a carry pool and preferred units with economic terms that mirror the Series C Mandatory Convertible Preferred Stock issued by KKR & Co. Inc.

References to "KKR" in these financial statements refer to KKR & Co. Inc. and its subsidiaries, including Global Atlantic, unless the context requires otherwise, especially in sections where "KKR" is intended to refer to the asset management business only. References in these financial statements to "principals" are to KKR's current and former employees who hold interests in KKR's business through KKR Holdings. References to "Global Atlantic" in these financial statements includes the insurance companies of Global Atlantic, which are consolidated by KKR.

Reorganization Agreement

On October 8, 2021, KKR entered into a Reorganization Agreement (the "Reorganization Agreement") with KKR Holdings, KKR Management LLP (which holds the sole outstanding share of Series I preferred stock), KKR Associates Holdings L.P. and the other parties thereto. Pursuant to the Reorganization Agreement, the parties agreed to undertake a series of integrated transactions to effect a number of transformative structural and governance changes, including (a) the acquisition by KKR of KKR Holdings and all of the KKR Group Partnership Units held by it, (b) the future elimination of voting control by KKR Management LLP and its ownership of the Series I preferred stock, (c) the future establishment of voting rights for all common stock on a one vote per share basis, including with respect to the election of directors, and (d) the future control of the carry pool by KKR. In particular, the Reorganization Agreement provides for:

i.a simplifying reorganization of KKR’s current corporate structure whereby all holders of common stock of KKR & Co. Inc. immediately prior to such reorganization and all holders of interests in KKR Holdings immediately prior to such reorganization will receive the same common stock in a new parent company of KKR (“New KKR Parent”),

ii.the future elimination of control of New KKR Parent by KKR Management LLP by having all voting power vested in the common stock of New KKR Parent on a one vote per share basis on the Sunset Date (as defined below),

iii.also on the Sunset Date, the future acquisition of control by KKR of KKR Associates Holdings L.P., the entity providing for the allocation of carry proceeds to KKR employees, also known as the carry pool,

iv.the termination of KKR's tax receivable agreement with KKR Holdings other than with respect to exchanges prior to the closing of the mergers contemplated by the Reorganization Agreement, and

v.in the merger of KKR Holdings with a subsidiary of New KKR Parent (the “Holdings Merger”), the issuance to limited partners of KKR Holdings of 8.5 million shares (as adjusted for any stock splits or similar adjustments) of common stock of New KKR Parent, which will not be transferrable (except in the case of death or for estate planning purposes) prior to the Sunset Date.

The “Sunset Date” will be the earlier of (i) December 31, 2026 and (ii) the six-month anniversary of the first date on which the death or permanent disability of both Mr. Henry Kravis and Mr. George Roberts (collectively, "Co-Founders") has occurred (or any earlier date consented to by KKR Management LLP in its sole discretion). In addition, KKR Management LLP agreed not to transfer its ownership of the sole share of Series I preferred stock. The transactions contemplated to occur under the Reorganization Agreement (including the establishment of New KKR Parent, the Holdings Merger, the termination of the tax receivable agreement except with respect to exchanges of Holdings units made prior thereto, and the changes to occur effective on the Sunset Date) are all required to be consummated together as integrated transactions under the Reorganization Agreement. The consummation of the merger transactions is subject to the receipt of regulatory approvals and other conditions to closing as provided in the Reorganization Agreement. While the Sunset Date itself is expected to occur after, and is conditioned upon, the completion of the merger transactions contemplated by the Reorganization Agreement, the changes to occur effective on the Sunset Date will be unconditional commitments upon the completion of the merger transactions.

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 this Quarterly Report on 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 consolidated balance sheet data as of December 31, 2021 were derived from audited financial statements included in KKR & Co. Inc.'s Annual Report on Form 10-K for the year ended December 31, 2021, 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 and redeemable non-controlling interests 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 KKR Group Partnership and its 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, Global Atlantic’s insurance companies and certain other entities including CFEs.

The presentations in the consolidated statement of financial condition and consolidated statement of operations reflect the significant industry diversification of KKR by its acquisition of Global Atlantic. Global Atlantic operates an insurance business, and KKR operates an asset management business, each of which possess distinct characteristics. As a result, KKR developed a two-tiered approach for the financial statements presentation, where Global Atlantic's insurance operations are presented separately from KKR's asset management business. KKR believes that these separate presentations provide a more informative view of the consolidated financial position and results of operations than traditional aggregated presentations and that reporting Global Atlantic’s insurance operations separately is appropriate given, among other factors, the relative significance of Global Atlantic’s policy liabilities, which are not obligations of KKR (other than the insurance companies that issued them). If a traditional aggregate presentation were to be used, KKR would expect to eliminate or combine several identical or similar captions, which would condense the presentations, but would also reduce the level of information presented. KKR also believes that using a traditional aggregate presentation would result in no new line items compared to the two-tier presentation included in the financial statements in this report.

In the ordinary course of business, KKR’s Asset Management business and Global Atlantic enter into transactions with each other, which may include transactions pursuant to their investment management agreements and financing arrangements. The borrowings from these financing arrangements are non-recourse to KKR beyond the assets pledged to support such borrowings. All the investment management and financing arrangements between KKR's Asset Management business and Global Atlantic are eliminated in consolidation; however, KKR's allocated share of the net income from the consolidation of Global Atlantic is increased by the amount of fees earned from and decreased by the amount of interest expense incurred from noncontrolling interest holders in Global Atlantic. Accordingly, the elimination of these fees and interest impacts the net income (loss) attributable to KKR and KKR stockholders' equity for the pro-rata ownership of the noncontrolling interests in Global Atlantic.

All intercompany transactions and balances have been eliminated.

For a detailed discussion about KKR’s significant accounting policies and for further information on accounting updates adopted in the prior year, see Note 2 to the financial statements in the 2021 Form 10-K. During the three months ended March 31, 2022, there were no significant updates to KKR’s significant accounting policies.

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 valuation of investments and financial instruments, (ii) the determination of the income tax provision, (iii) the impairment of goodwill and intangible assets, (iv) the impairment of available-for-sale investments, (v) the valuation of insurance policy liabilities, (vi) the valuation of embedded derivatives, (vii) the determination of the allowance for loan losses, and (viii) amortization of deferred revenues and expenses associated with the insurance business. Certain events particular to each industry and country in which the portfolio companies conduct their operations, as well as general economic, political, regulatory and public health conditions, may have a significant negative impact on KKR’s investments and profitability. Such events are beyond KKR’s control, and the likelihood that they may occur and the effect on KKR's use of estimates cannot be predicted. Actual results could differ from those estimates, and such differences could be material to the financial statements.

Adoption of new accounting pronouncements

The Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") and related regulatory actions

On March 27, 2020, the CARES Act was enacted in response to the COVID-19 pandemic. The CARES Act, among other things, permits net operating loss ("NOL") carryovers and carrybacks to offset 100% of taxable income for taxable years beginning before 2021. In addition, the CARES Act allows NOLs incurred in 2018, 2019 and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes.

The provisions of the CARES Act, as amended by the Consolidated Appropriations Act, also permit financial institutions to suspend requirements under U.S. GAAP for loan modifications that otherwise would be categorized as troubled debt restructurings ("TDRs") if (1) the borrower was not more than 30 days past due as of December 31, 2019, and (2) the modifications are related to arrangements that defer or delay the payment of principal or interest, or change the interest rate on the loan, provided the modifications are made between March 1, 2020 and the earlier of 60 days after the end of the national emergency related to the COVID-19 pandemic or January 1, 2022. Global Atlantic has applied this guidance before the permitted suspension period expired on January 1, 2022 to loan forbearance requests that meet the requirements. The application of this guidance did not have a material impact on the financial statements.

See Note 8 "Investments" for additional information on loan modifications.

Simplifying the accounting for income taxes

On December 18, 2019, the Financial Accounting Standards Board (the "FASB") issued ASU No. 2019-12, which modifies ASC 740 to simplify the accounting for income taxes. This guidance eliminates the exceptions to the incremental approach, to accounting for basis differences when there are changes in ownership of foreign investments, and to interim period tax accounting for year-to-date losses that exceed anticipated losses. The guidance also simplifies the application of tax guidance related to franchise taxes, transactions with government entities, separate financial statements of legal entities that are not subject to tax, and enacted changes in tax laws in interim periods. The guidance is effective for public business entities that meet the definition of an SEC filer for fiscal years beginning after December 15, 2020, including interim period within those fiscal years. KKR adopted the standard effective January 1, 2021. The adoption of this new guidance did not have a material impact on the financial statements.

Reference rate reform

In March 2020, the FASB issued new guidance to ease the accounting implications of the transition away from the London Interbank Offering Rate ("LIBOR") and other reference rates which are scheduled to be discontinued, including LIBOR tenors after June 30, 2023. The new guidance offers a variety of optional expedients and exceptions related to accounting for contract modifications and hedging relationships. These expedients and exceptions apply only to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The new guidance is effective for contract modifications made and hedging relationships existing or entered into from January 1, 2020 through December 31, 2022. In the first quarter 2022, KKR elected to adopt the new guidance and, for the modifications that have occurred to date, the adoption of the guidance has not had a material impact on KKR’s consolidated financial statements.

Future application of accounting standards

Targeted improvements to the accounting for long-duration contracts

In August 2018, the FASB issued new guidance for insurance and reinsurance companies that issue long-duration contracts such as life insurance and annuities. The objective of this guidance is to improve, simplify and enhance the financial reporting of long-duration contracts by providing financial statement users with useful information in a timely and transparent manner. The primary changes include:

(1) more timely recognition of assumption changes in the liability for future policy benefits and use of a current rate for the discounting of future cash flows – The assumptions used to calculate the liability for future policy benefits on traditional and limited-payment contracts are required to be reviewed and updated periodically (versus set at inception and not changed under the current guidance). Cash flow assumptions are required to be reviewed at least annually with the impact recognized in net income. The standard also prescribes that the discount rate assumption should be based on a current upper-medium grade (i.e., low credit risk) fixed income instrument yield (e.g., a single A credit-rating) with the impact recognized in other comprehensive income ("OCI").

(2) standardization and improvement in the accounting for certain market-based options or guarantees associated with deposit (or account balance) contracts – The new guidance creates a new category of benefits referred to as market risk benefits, which are contracts or contract features that provide both protection to the policyholder from capital market risk and expose the insurer to other-than-nominal capital market risk. Market risk benefits are required to be measured at fair value with the change in fair value recognized in net income, except for changes in the entity’s non-performance risk, which is recognized in OCI.

(3) simplification of the amortization of deferred acquisition costs - Deferred policy acquisition costs ("DAC") and other similar actuarial balances (e.g., deferred sales inducements) for life and annuity contracts are required to be amortized on a constant basis over the term of the related contracts.

(4) enhanced disclosures – Additional disclosures are required including disaggregated roll-forwards of significant insurance liabilities as well as disclosures about significant inputs, judgments, assumptions and methods used in measurement.

The guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. For changes related to the liability for future policy benefits and deferred acquisition costs, the new guidance requires adoption using a modified retrospective approach upon transition with an option to elect a retrospective approach. For changes related to market risk benefits, the new guidance requires a retrospective approach.

KKR intends to implement this standard using the retrospective approach for the liability for future policy benefits, deferred acquisition costs and market risk benefits with an adoption date of January 1, 2023. KKR has completed the design and planning phase of its implementation effort and has begun detailed implementation activities. KKR has established a governance framework to manage the implementation activities and support timely application of the guidance. KKR has made progress in the following areas:

High level impact assessment;
Identification of key accounting policy decisions;
Evaluation and selection of actuarial system solutions;
Development of detailed business requirements document inclusive of roll-forward disclosures; and
Preliminary modeling of market risk benefits.

KKR continues to evaluate the impact of this guidance but anticipates that the new standard will have a material impact on the consolidated financial statements. The new guidance is expected to increase financial statement volatility primarily due to the requirement to measure market risk benefits at fair value, which is recorded in net income, except for changes in value attributable to changes in an entity’s non-performance risk, which is recognized in OCI. In addition, the new guidance is expected to have a significant impact on KKR’s systems, processes and controls.

Troubled debt restructurings and vintage disclosures

In March 2022, the FASB issued new guidance regarding the modification of receivables, which affects their recognition and measurement. The guidance eliminates the concept of troubled debt restructurings and instead requires all modifications to be analyzed to determine whether they result in a new receivable or a continuation of an existing receivable. The guidance also makes related updates to the measurement of expected credit losses for receivables. The new guidance requires additional disclosures for receivable modifications involving borrowers experiencing financial difficulty as well as disclosure of loan charge-offs by origination year (vintage). For entities that have already adopted ASC 326 (addressing credit losses on financial instruments), the guidance is effective for fiscal years beginning after December 15, 2022, including interim period within those fiscal years. Early adoption is permitted. KKR is currently evaluating the impact of this accounting standard update on its consolidated financial statements.

3. ACQUISITIONS

Acquisition of Mitsubishi Corp-UBS Realty Inc.

On March 17, 2022, KKR announced the signing of a strategic transaction by 76KK, an indirect subsidiary of KKR & Co. Inc., to acquire all of the outstanding shares of Mitsubishi Corp-UBS Realty Inc. from Mitsubishi Corporation and UBS Asset Management in an all-cash transaction valued at approximately ¥230 billion (or approximately $1.8 billion). On April 28, 2022, KKR completed the acquisition of Mitsubishi Corp-UBS Realty Inc., which changed its name to KJR Management ("KJRM"). Given the recent closing, the purchase accounting analysis is incomplete.

Acquisition of Global Atlantic

On July 7, 2020, indirect subsidiaries of KKR & Co. Inc., namely Magnolia Parent LLC and Magnolia Merger Sub Limited, entered into an Agreement and Plan of Merger (the “GA Merger Agreement”) with Global Atlantic Financial Group Limited ("GAFG"), Global Atlantic Financial Life Limited ("GAFLL"), LAMC LP, and Goldman Sachs & Co. LLC, solely in its capacity as the Equity Representative (as defined in the GA Merger Agreement). Pursuant to the GA Merger Agreement, at the closing of the acquisition of Global Atlantic by KKR (the "GA Acquisition"), among other things, Global Atlantic Financial Group Limited continued as the surviving entity in its merger with Magnolia Merger Sub Limited and became a direct subsidiary of Magnolia Parent LLC, which subsequently changed its name to The Global Atlantic Financial Group LLC (“TGAFG”).

On February 1, 2021 (the “GA Acquisition Date”), the GA Acquisition was completed, and KKR acquired all of the voting interests in Global Atlantic and an economic ownership of 61.1% of Global Atlantic prior to certain post-closing purchase price adjustments discussed below and after taking into account GA Rollover Investors’ and GA Co-Investors’ (each as defined below) equity ownership of Global Atlantic. In addition to entering into the retirement and life insurance business through KKR's indirect ownership of Global Atlantic's insurance companies, KKR's flagship investment management company became the investment adviser for Global Atlantic’s insurance companies, which increases KKR’s presence in the insurance community. Furthermore, the transaction allows Global Atlantic to gain access to KKR’s origination and asset management capabilities.

Under the GA Merger Agreement, KKR agreed to pay former shareholders of Global Atlantic Financial Group Limited an amount in cash equal to 1.0x U.S. GAAP Shareholders’ Equity of Global Atlantic Financial Group Limited, excluding Accumulated Other Comprehensive Income and subject to certain other purchase price adjustments ("GA Book Value," determined as $4.7 billion as of February 1, 2021 for purposes of the purchase price determination). The amount of consideration payable by KKR was reduced by the amount of equity rolled over by certain former shareholders of Global Atlantic Financial Group Limited who elected to continue their equity ownership in Global Atlantic at closing ("GA Rollover Investors"). In addition, KKR syndicated equity interests in Global Atlantic to minority co-investors ("GA Co-Investors"), which also had the effect of reducing the amount of consideration payable by KKR at closing. The purchase price is as follows (in thousands):


Cash consideration paid by KKR	$	2,914,455
GA Co-Investors and GA Rollover Investors	1,824,239
Total Purchase Price	$	4,738,694

The purchase price paid at closing was subject to certain post-closing adjustments, which were finalized in June 2021, and KKR and certain GA Co-Investors paid incremental amounts of $55 million and $3 million, respectively ($58 million in total). As a result of the post-closing adjustments, KKR's economic ownership of Global Atlantic increased from 61.1% at closing to 61.5%.

The GA Acquisition was accounted for as a business combination under FASB Accounting Standards Codification Topic 805, Business Combinations ("Topic 805"). Goodwill of $497.1 million has been recorded based on the amount that the purchase price exceeds the fair value of the net assets acquired less the amounts attributable to noncontrolling interests. Goodwill is primarily attributable to the scale, skill sets, operations, and synergies that can be achieved subsequent to the GA Acquisition. The goodwill recorded is not expected to be deductible for tax purposes and it has been allocated to the Insurance segment.

The following table summarizes the fair value amounts recognized for the assets acquired and liabilities assumed and resulting goodwill as of the GA Acquisition Date:


	February 1, 2021
($ in thousands)
Consideration Transferred
Cash Consideration paid by KKR	$	2,914,455
GA Co-Investors	978,296
GA Rollover Investors	845,943
Settlement of pre-existing relationships(1)	(60,200)
Total Consideration Transferred(2)	$	4,678,494

Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed:
Cash, Cash Equivalents and Restricted Cash	$	3,358,772

Investments	99,544,755
Reinsurance Recoverable	15,753,030
Insurance Intangible Assets	1,024,520
Other Assets(3)	3,325,652
Separate Account Assets	5,371,060
Policy Liabilities	(100,374,765)
Debt Obligations	(1,450,920)
Funds Withheld Payable at Interest	(13,800,969)
Accrued Expenses and Other Liabilities	(2,735,811)
Reinsurance Liabilities	(180,573)
Separate Account Liabilities	(5,371,060)
Total Identifiable Net Assets	4,463,691
Redeemable non-controlling interests(4)	(91,845)
Other Noncontrolling interests(4)	(190,405)
Goodwill	$	497,053

(1) Represents KKR debt obligations held by Global Atlantic at the GA Acquisition Date.

(2) At the GA Acquisition Date, the transaction was funded with a combination of (i) cash on hand by KKR, (ii) cash proceeds from syndication of the equity interests in Global Atlantic to minority co-investors and equity rolled over from certain former Global Atlantic shareholders. The equity held by GA co-investors and rollover investors are presented as noncontrolling interests in the financial statements. Acquisition of Global Atlantic, Net of Cash Acquired in the consolidated statements of cash flows represents the Total Consideration Transferred (excluding GA Rollover Investors) net of acquired Cash and Cash Equivalents and Restricted Cash and Cash Equivalents.

(3) Includes $1.0 billion of deferred tax assets recognized from the step-up in basis under purchase accounting.

(4) Represents the fair value of Noncontrolling Interests in consolidated renewable energy entities held by Global Atlantic on the GA Acquisition Date. Such interests do not represent ownership interests held by GA Rollover Investors or GA Co-Investors in Global Atlantic's equity.

Measurement Period Adjustments

KKR finalized the valuation of the acquired assets and assumed liabilities in December 2021. During the second quarter of 2021, KKR recognized measurement period adjustments to reflect new information obtained about facts and circumstances that existed as of the acquisition date. The measurement period adjustments also reflected the increase in the total consideration transferred of $58 million as a result of final purchase price adjustments. Measurement period adjustments consist primarily of a $50 million increase in the value of distribution agreements acquired, a $63 million increase in policy liabilities, a $25 million increase in investments, and a $46 million increase in goodwill. The related impact to net income that would have been recognized in previous periods if the adjustments were recognized as of the GA Acquisition Date was not material to the consolidated financial statements.

KKR performed a valuation of the acquired investments, policy liabilities, value of business acquired ("VOBA"), other identifiable intangibles, and funds withheld at interest payables and receivables. The following is a summary of significant inputs to the valuation:

Investments

Global Atlantic’s investment portfolio primarily consists of fixed maturity securities, mortgage and other loan receivables, equity securities, and investments in real assets such as renewable energy and transportation assets. All of the assets included within the investment portfolio were measured and reported at their fair values on the GA Acquisition Date consistent with the valuation methodologies discussed in Note 2 "Summary of Significant Accounting Policies" in audited financial statements included in KKR & Co. Inc.'s Annual Report on Form 10-K for the year ended December 31, 2021. As a result, the cost basis of each respective investment was reset to equal fair value on the GA Acquisition Date.

Policy liabilities

Policy liabilities were remeasured based on generally accepted actuarial methods and reported at their fair values on the GA Acquisition Date. Assumptions for future mortality, persistency, policyholder behavior, expenses, investment return and other actuarial factors were based on an evaluation of Global Atlantic’s recent experience, industry experience, and anticipated future trends. These assumptions are intended to be representative of market assumptions used by buyers and sellers in similar transactions. The approach employed to develop these projection assumptions is described below:

Discount rates used to calculate fair value ranged from 11% to 15%, depending on product;
Mortality and persistency assumptions are based on both Global Atlantic and general industry experience;
Expenses were projected reflecting Global Atlantic’s unit expenses with an allocation of a portion of overhead expenses to in-force business;
Future investment income reflects a runoff of the existing asset portfolios and reinvestment strategies based on Global Atlantic’s assumptions for asset yield, quality, and maturity. The projections are based on forward interest rates implied by the Treasury yield curve. Credit rates reflect Global Atlantic’s target spreads;
Separate account and index account growth rates are based on long-term return expectations for different fund types and on the underlying mix of funds; and
Statutory reserves underlying the valuation reflect Global Atlantic’s current reserving methodologies.

Value of business acquired ("VOBA")

VOBA represents the estimated fair value of future net cash flows from in-force life and annuity insurance contracts acquired at the GA Acquisition Date.

Other identifiable intangible assets

Other identifiable intangible assets represent distribution relationships, trade names and state insurance licenses. The distribution relationships were valued using the excess earnings method, which derives value based on the present value of the cash flow attributable to the distribution relationships, less returns for contributory assets. The trade name intangible asset represents the Global Atlantic trade name, and was valued using the relief-from-royalty method giving consideration to publicly available third-party trade name royalty rates as well as expected premiums generated by the use of the trade name over its anticipated life. The state insurance licenses represent Global Atlantic’s jurisdictional insurance licenses, which include 52 insurance licenses, encompassing all 50 U.S. states, the District of Columbia, and the U.S. Virgin Islands. They were protected through registration and were valued using the market approach based on third-party market transactions from which the prices paid for state insurance licenses could be derived.

Funds withheld at interest receivables and payables

Funds withheld at interest receivables and payables were remeasured at fair value based on the fair value of assets held in the underlying portfolios supporting those receivables or payables.

The fair value and weighted average estimated useful lives of Value of Business Acquired and Other Identifiable Intangible Assets acquired in the GA Acquisition consist of the following (dollars in thousands):


	Fair Value		Average Useful Life
	($ in thousands)		(in years)
VOBA (included within Insurance Intangible Assets)	$	1,024,520	28.6
Negative VOBA (included within Policy Liabilities)	(1,273,414)		22.2
Total VOBA	$	(248,894)

Value of Distribution Agreements Acquired	$	250,000	16 to 21
Trade Names	50,000		15 to 18
State Insurance Licenses	10,000		Indefinite
Total Identifiable Other Intangible Assets (included within Other Assets)	$	310,000

As of the GA Acquisition Date, Global Atlantic's financial results are reflected in these financial statements. Global Atlantic's revenues of $1.4 billion and net income before allocation to noncontrolling interest holders of $(203.9) million, respectively, are included in the consolidated statement of operations for the three months ended March 31, 2021.

Pro- Forma Financial Information

Unaudited pro-forma financial information for the three months ended March 31, 2021 is presented below. Pro-forma financial information presented does not include adjustments to reflect any potential revenue synergies or cost savings that may be achievable in connection with the GA Acquisition and assume the GA Acquisition occurred as of January 1, 2020. The unaudited pro forma financial information is presented for informational purposes only, and is not necessarily indicative of future operations or results had the GA Acquisition been completed as of January 1, 2020.


	Three months ended
		March 31, 2021
Total Revenues		$	5,077,184
Net Income Attributable to KKR & Co. Inc. Common Stockholders		$	1,738,106

Amounts above reflect certain pro forma adjustments that were directly attributable to the GA Acquisition. These adjustments include the following:

adjustment to reflect the elimination of historical amortization of Global Atlantic’s intangibles and the additional amortization of intangibles measured at fair value as of the GA Acquisition Date;
adjustment to reflect the prospective reclassification from accumulated other comprehensive earnings of the unrealized gains on available-for-sale securities to a premium which will be amortized into income based on the expected life of the investment securities;
adjustments to reflect the KKR pro-rata economic ownership as well as financing consummated by KKR to complete the acquisition; and
adjustments to reflect the adoption of ASC 326 "Financial Instruments - Credit Losses" in 2020 by Global Atlantic.

4. REVENUES - ASSET MANAGEMENT

For the three months ended March 31, 2022 and 2021, respectively, Asset Management revenues consisted of the following:


	Three Months Ended March 31,
		2022		2021
Management Fees		$	398,046	$	276,181
Fee Credits		(187,745)		(35,398)
Transaction Fees		466,966		165,893
Monitoring Fees		39,400		35,388
Incentive Fees		7,057		3,438
Expense Reimbursements		41,303		27,729

Consulting Fees		15,484		20,080
Total Fees and Other		780,511		493,311

Carried Interest		(783,688)		2,140,426
General Partner Capital Interest		(162,055)		544,221
Total Capital Allocation-Based Income (Loss)		(945,743)		2,684,647

Total Revenues - Asset Management		$	(165,232)	$	3,177,958

5. NET GAINS (LOSSES) FROM INVESTMENT ACTIVITIES - ASSET MANAGEMENT

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 for the three months ended March 31, 2022 and 2021, respectively:


	Three Months Ended March 31, 2022
	Net Realized Gains (Losses)		Net Unrealized Gains (Losses)		Total
Private Equity (1)	$	198,380	$	(265,326)	$	(66,946)
Credit (1)	(11,455)		(188,974)		(200,429)
Investments of Consolidated CFEs (1)	2,949		(269,548)		(266,599)
Real Assets (1)	(2,761)		1,297,270		1,294,509
Equity Method - Other (1)	14,284		(72,642)		(58,358)
Other Investments (1)	1,743		(15,015)		(13,272)
Foreign Exchange Forward Contracts and Options (2)	90,890		(147,007)		(56,117)
Securities Sold Short (2)	36,082		10,181		46,263
Other Derivatives (2)	(12,005)		20,137		8,132
Debt Obligations and Other (3)	(38,478)		265,556		227,078
Net Gains (Losses) From Investment Activities	$	279,629	$	634,632	$	914,261






	Three Months Ended March 31, 2021
	Net Realized Gains (Losses)		Net Unrealized Gains (Losses)		Total
Private Equity (1)	$	756,347	$	794,318	$	1,550,665
Credit (1)	33,916		(4,509)		29,407
Investments of Consolidated CFEs (1)	(2,628)		128,143		125,515
Real Assets (1)	39,749		234,398		274,147
Equity Method - Other (1)	5,187		396,514		401,701
Other Investments (1)	(226,899)		433,080		206,181
Foreign Exchange Forward Contracts and Options (2)	(5,643)		15,192		9,549
Securities Sold Short (2)	50,623		50,996		101,619
Other Derivatives (2)	(30,521)		29,334		(1,187)
Debt Obligations and Other (3)	(35,750)		34,353		(1,397)
Net Gains (Losses) From Investment Activities	$	584,381	$	2,111,819	$	2,696,200

(1)See Note 8 "Investments."

(2)See Note 9 "Derivatives" and Note 15 "Other Assets and Accrued Expenses and Other Liabilities."

(3)See Note 17 "Debt Obligations."

6. NET INVESTMENT INCOME - INSURANCE

Net investment income for Global Atlantic is comprised primarily of interest income, including amortization of premiums and accretion of discounts, based on yields that change due to expectations in projected cash flows, dividend income from common and preferred stock, earnings from investments accounted for under equity method accounting, and lease income on other investments.

The components of net investment income were as follows:


	Three Months Ended March 31,
	2022		2021
Fixed maturity securities – interest and other income	$	691,293	$	351,540
Mortgage and other loan receivables	324,141		122,466
Investments in transportation and other leased assets	67,679		36,743
Investments in renewable energy	25,218		796
Short-term and other investment income	20,697		5,113
Income assumed from funds withheld receivable at interest	19,605		13,473
Policy loans	7,911		1,847
Investments in real estate	3,903		1,084
Equity securities – dividends and other income	—		(484)
Income ceded to funds withheld payable at interest	(179,702)		(29,839)
Gross investment income	980,745		502,739
Less investment expenses:
Investment management and administration	113,131		33,946
Transportation and renewable energy asset depreciation and maintenance	53,953		23,509
Interest expense on derivative collateral and repurchase agreements	1,056		503
Net investment income	$	812,605	$	444,781

7. NET INVESTMENT-RELATED GAINS (LOSSES) - INSURANCE

Net investment-related (losses) gains from insurance operations primarily consists of (i) realized gains and (losses) from the disposal of investments, (ii) unrealized gains and (losses) from investments held for trading, equity securities, real estate investments accounted for under investment company accounting, and investments with fair value remeasurements recognized in earnings as a result of the election of a fair-value option, (iii) unrealized gains and (losses) on funds withheld at interest, (iv) unrealized gains and (losses) from derivatives not designated in an hedging relationship, and (v) allowances for credit losses, and other impairments of investments.

Net investment-related gains (losses) were as follows:


	Three Months Ended March 31,
	2022		2021
Realized gains (losses) on equity investments	$	—	$	2,243
Realized gains (losses) on available-for-sale fixed maturity debt securities	(243,350)		(45,640)
Credit loss allowances on available-for-sale securities	(10,602)		(21,351)
Credit loss allowances on mortgage and other loan receivables	(26,085)		(183,641)
Allowances on unfunded commitments	6,790		(14,609)

Unrealized gains (losses) on fixed maturity securities classified as trading	(1,038,446)		(317,052)
Unrealized gains (losses) on investments recognized under the fair-value option	(2,493)		(12,166)
Unrealized gains (losses) on real estate investments recognized at fair value under investment company accounting	77,692		—
Net gains (losses) on derivative instruments	859,734		148,532
Realized gains (losses) on funds withheld at interest, payable portfolio	(26,387)		(7,378)
Realized gains (losses) on funds withheld at interest, receivable portfolio	25,600		354
Other realized gains (losses)	8,867		(4,994)
Net investment-related gains (losses)	$	(368,680)	$	(455,702)

Allowance for credit losses

Available-for-sale fixed maturity securities

The table below presents a roll-forward of the allowance for credit losses recognized for fixed maturity securities held by Global Atlantic:


	Three Months Ended March 31, 2022
		Corporate		Structured		Total
Balance, as of beginning of period		$	3,238	$	84,895	$	88,133
Initial impairments for credit losses recognized on securities not previously impaired		122		15,758		15,880
Initial credit loss allowance recognized on purchased credit deteriorated ("PCD") securities		—		140		140
Accretion of initial credit loss allowance on PCD securities		—		477		477
Reductions due to sales (or maturities, pay downs or prepayments) during the period of securities previously identified as credit impaired		—		(2,444)		(2,444)

Net additions / reductions for securities previously impaired		1,640		(6,918)		(5,278)


Balance, as of end of period		$	5,000	$	91,908	$	96,908


	Three Months Ended March 31, 2021
		Corporate		Structured		Total
Balance, as of beginning of period(1)		$	—	$	120,895	$	120,895
Initial impairments for credit losses recognized on securities not previously impaired		—		27,423		27,423
Initial credit loss allowance recognized on PCD securities		—		222		222
Accretion of initial credit loss allowance on PCD securities		—		321		321
Reductions due to sales (or maturities, pay downs or prepayments) during the period of securities previously identified as credit impaired		—		(2,537)		(2,537)

Net additions / reductions for securities previously impaired		—		(6,072)		(6,072)


Balance, as of end of period		$	—	$	140,252	$	140,252

(1)Includes securities designated as purchased credit impaired as of the time of the acquisition of Global Atlantic.

Mortgage and other loan receivables

Changes in the allowance for credit losses on mortgage and other loan receivables held by Global Atlantic are summarized below:


	Three Months Ended March 31, 2022
		Commercial Mortgage Loans		Residential Mortgage Loans		Consumer and Other Loan Receivables		Total
Balance, as of beginning of period		$	65,970	$	72,082	$	236,025	$	374,077
Net provision (release)		15,566		15,501		(4,982)		26,085



Balance, as of end of period		$	81,536	$	87,583	$	231,043	$	400,162


	Three Months Ended March 31, 2021
		Commercial Mortgage Loans		Residential Mortgage Loans		Consumer and Other Loan Receivables		Total
Balance, as of beginning of period (1)		$	58,203	$	62,056	$	—	$	120,259
Net provision		21,853		16,683		145,105		183,641



Balance, as of end of period		$	80,056	$	78,739	$	145,105	$	303,900

(1) Includes loans designated as purchased credit deteriorated as of the time of the acquisition of Global Atlantic.

Proceeds and gross gains and losses from voluntary sales

The proceeds from voluntary sales and the gross gains and losses on those sales of available-for-sale ("AFS") fixed maturity securities were as follows:


	Three Months Ended March 31,
	2022		2021
AFS fixed maturity securities:
Proceeds from voluntary sales	$	6,128,285	$	1,903,120
Gross gains	8,942		4,776
Gross losses	(245,871)		(50,972)

8. INVESTMENTS

Investments consist of the following:


	March 31, 2022		December 31, 2021
Asset Management
Private Equity	$	26,180,914	$	25,685,750
Credit	6,821,730		7,949,573
Investments of Consolidated CFEs	22,014,866		22,076,809
Real Assets	14,788,831		12,500,749
Equity Method - Other	4,667,571		4,877,592
Equity Method - Capital Allocation-Based Income	10,254,226		11,539,945
Other Investments	4,042,342		4,145,096
Investments - Asset Management	$	88,770,480	$	88,775,514

Insurance
Fixed maturity securities, available-for-sale, at fair value(1)	$	64,243,697	$	68,870,886
Mortgage and other loan receivables	31,576,685		28,876,759
Fixed maturity securities, trading, at fair value(2)	13,061,360		13,753,573
Other investments	10,150,075		8,208,566
Funds withheld receivable at interest	2,966,803		2,999,448
Policy loans	762,460		765,310
Equity securities at fair value	38,791		289,133
Investments - Insurance	$	122,799,871	$	123,763,675

Total Investments	$	211,570,351	$	212,539,189

(1) Amortized cost of $69.1 billion and $69.5 billion, net of credit loss allowances of $96.9 million and $88.1 million.

(2) Amortized cost of $14.2 billion and $13.9 billion.

As of March 31, 2022 and December 31, 2021, there were no investments which represented greater than 5% of total investments.

Fixed maturity securities

The cost or amortized cost and fair value for AFS fixed maturity securities were as follows:


	Cost or amortized cost		Allowance for Credit Losses (2)(3)		Gross unrealized				Fair value
As of March 31, 2022			gains		losses
AFS fixed maturity securities portfolio by type:
U.S. government and agencies	$	528,130	$	—	$	475	$	(37,431)	$	491,174
U.S. state, municipal and political subdivisions	5,330,590		—		2,677		(546,271)		4,786,996
Corporate	40,541,267		(5,000)		43,940		(3,634,576)		36,945,631
Residential mortgage-backed securities ("RMBS")	7,377,229		(50,060)		71,724		(235,551)		7,163,342
Commercial mortgage-backed securities ("CMBS")	6,622,204		(6,442)		3,679		(289,380)		6,330,061
Collateralized bond obligations ("CBOs")	3,089,089		(20,800)		2,807		(87,089)		2,984,007
Collateralized loan obligations ("CLOs")	2,685,279		(3,665)		1,009		(39,669)		2,642,954
All other structured securities(1)	2,968,505		(10,941)		19,967		(77,999)		2,899,532
Total AFS fixed maturity securities	$	69,142,293	$	(96,908)	$	146,278	$	(4,947,966)	$	64,243,697

(1) Includes primarily asset-backed securities ("ABS").

(2) Represents the cumulative amount of credit impairments that have been recognized in the consolidated statement of operations (as net investment (losses) gains) or that were recognized as a gross-up of the purchase price of PCD securities. Amount excludes unrealized losses related to non-credit impairment.

(3) Includes credit loss allowances on purchase-credit deteriorated fixed-maturity securities of $(38.5) million.


	Cost or amortized cost		Allowance for Credit Losses (2)(3)		Gross unrealized				Fair value
As of December 31, 2021			gains		losses
AFS fixed maturity securities portfolio by type:
U.S. government and agencies	$	785,144	$	—	$	4,171	$	(4,768)	$	784,547
U.S. state, municipal and political subdivisions	5,122,651		—		42,286		(55,240)		5,109,697
Corporate	41,433,757		(3,238)		190,516		(688,648)		40,932,387
RMBS	7,703,030		(50,975)		126,662		(113,359)		7,665,358
CMBS	5,952,656		(282)		16,332		(56,523)		5,912,183
CBOs	3,111,620		(22,160)		6,862		(27,466)		3,068,856
CLOs	2,985,098		(639)		6,554		(5,776)		2,985,237
All other structured securities(1)	2,425,540		(10,839)		19,990		(22,070)		2,412,621
Total AFS fixed maturity securities	$	69,519,496	$	(88,133)	$	413,373	$	(973,850)	$	68,870,886

(1) Includes primarily asset-backed securities ("ABS").

(3) Includes credit loss allowances on purchase-credit deteriorated fixed-maturity securities of $(46.4) million.

Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties, or Global Atlantic may have the right to put or sell the obligations back to the issuers.

The maturity distribution for AFS fixed maturity securities is as follows:


As of March 31, 2022	Cost or amortized cost (net of allowance)		Fair value
Due in one year or less	$	850,975	$	844,911
Due after one year through five years	8,531,656		8,218,579
Due after five years through ten years	9,999,591		9,505,003
Due after ten years	27,012,765		23,655,308
Subtotal	46,394,987		42,223,801
RMBS	7,327,169		7,163,342
CMBS	6,615,762		6,330,061
CBOs	3,068,289		2,984,007
CLOs	2,681,614		2,642,954
All other structured securities	2,957,564		2,899,532
Total AFS fixed maturity securities	$	69,045,385	$	64,243,697


As of December 31, 2021	Cost or amortized cost (net of allowance)		Fair value
Due in one year or less	$	871,340	$	869,287
Due after one year through five years	9,256,449		9,171,707
Due after five years through ten years	11,460,032		11,350,091
Due after ten years	25,750,493		25,435,546
Subtotal	47,338,314		46,826,631
RMBS	7,652,055		7,665,358
CMBS	5,952,374		5,912,183
CBOs	3,089,460		3,068,856
CLOs	2,984,459		2,985,237
All other structured securities	2,414,701		2,412,621
Total AFS fixed maturity securities	$	69,431,363	$	68,870,886

Purchased credit deteriorated securities

Certain securities purchased by Global Atlantic were assessed at acquisition as having experienced a more-than-insignificant deterioration in credit quality since their origination. These securities are identified as PCD, and a reconciliation of the difference between the purchase price and the par value of these PCD securities is below:


	Three Months Ended March 31,
	2022		2021
Purchase price of PCD securities acquired during the current period	$	5,185	$	1,591,176
Allowance for credit losses at acquisition	140		121,117
Discount (premium) attributable to other factors	1,207		277,480
Par value	$	6,532	$	1,989,773

Securities in a continuous unrealized loss position

The following tables provide information about AFS fixed maturity securities that have been continuously in an unrealized loss position:


	Less than 12 months				12 months or more				Total
As of March 31, 2022	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
AFS fixed maturity securities portfolio by type:
U.S. government and agencies	$	296,069	$	(29,763)	$	92,301	$	(7,668)	$	388,370	$	(37,431)
U.S. state, municipal and political subdivisions	4,312,737		(512,738)		252,147		(33,533)		4,564,884		(546,271)
Corporate	27,551,887		(3,022,312)		4,842,176		(612,264)		32,394,063		(3,634,576)
RMBS	3,997,811		(160,389)		845,265		(75,162)		4,843,076		(235,551)
CBOs	2,209,873		(65,789)		507,754		(21,300)		2,717,627		(87,089)
CMBS	5,668,051		(273,082)		202,155		(16,298)		5,870,206		(289,380)
CLOs	2,259,867		(39,213)		26,875		(456)		2,286,742		(39,669)
All other structured securities	1,801,889		(68,226)		187,510		(9,773)		1,989,399		(77,999)
Total AFS fixed maturity securities in a continuous loss position	$	48,098,184	$	(4,171,512)	$	6,956,183	$	(776,454)	$	55,054,367	$	(4,947,966)


	Less than 12 months				12 months or more				Total
As of December 31, 2021	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
AFS fixed maturity securities portfolio by type:
U.S. government and agencies	$	311,096	$	(4,768)	$	—	$	—	$	311,096	$	(4,768)
U.S. state, municipal and political subdivisions	2,802,309		(55,240)		—		—		2,802,309		(55,240)
Corporate	30,385,514		(688,648)		—		—		30,385,514		(688,648)
RMBS	3,196,876		(113,359)		—		—		3,196,876		(113,359)
CBOs	2,152,790		(27,466)		—		—		2,152,790		(27,466)
CMBS	3,405,774		(56,523)		—		—		3,405,774		(56,523)
CLOs	1,172,330		(5,776)		—		—		1,172,330		(5,776)
All other structured securities	1,348,356		(22,070)		—		—		1,348,356		(22,070)
Total AFS fixed maturity securities in a continuous loss position	$	44,775,045	$	(973,850)	$	—	$	—	$	44,775,045	$	(973,850)

Unrealized gains and losses can be created by changing interest rates or several other factors, including changing credit spreads. Global Atlantic had gross unrealized losses on below investment grade AFS fixed maturity securities of $219.4 million and $77.0 million as of March 31, 2022 and December 31, 2021, respectively. The single largest unrealized loss on AFS fixed maturity securities was $27.2 million and $7.3 million as of March 31, 2022 and December 31, 2021, respectively. Global Atlantic had 5,729 and 4,370 securities in an unrealized loss position as of March 31, 2022 and December 31, 2021, respectively.

As of March 31, 2022, AFS fixed maturity securities in an unrealized loss position for 12 months or more consisted of 814 debt securities. These debt securities primarily relate to Corporate, RMBS, and U.S. state, municipal and political subdivisions fixed maturity securities, which have depressed values due primarily to an increase in interest rates since the purchase of these securities. Unrealized losses were not recognized in net income on these debt securities since Global Atlantic neither intends to sell the securities nor does it believe that it is more likely than not that it will be required to sell these securities before recovery of their cost or amortized cost basis. For securities with significant declines in value, individual security level analysis was performed utilizing underlying collateral default expectations, market data and industry analyst reports.

Mortgage and other loan receivables

Mortgage and other loan receivables consist of the following:


	March 31, 2022		December 31, 2021
Commercial mortgage loans(1)	$	15,489,750	$	13,824,772
Residential mortgage loans(1)	9,704,021		8,724,904
Consumer loans	6,137,735		5,617,925
Other loan receivables(2)(3)	645,341		1,083,235
Total mortgage and other loan receivables	31,976,847		29,250,836
Allowance for credit losses(4)	(400,162)		(374,077)
Total mortgage and other loan receivables, net of allowance for loan losses	$	31,576,685	$	28,876,759

(1) Includes $980.1 million and $805.4 million of loans carried at fair value using the fair value option as of March 31, 2022 and December 31, 2021, respectively. The fair value option was elected for these loans for asset-liability matching purposes. These loans had unpaid principal balances of $989.8 million and $794.1 million as of March 31, 2022 and December 31, 2021, respectively.

(2) As of March 31, 2022 and December 31, 2021, other loan receivables consisted primarily of loans collateralized by aircraft of $410.8 million and $850.1 million, respectively.

(3) Includes $28.2 million and $27.3 million of related party loans carried at fair value using the fair value option as of March 31, 2022 and December 31, 2021, respectively. These loans had unpaid principal balances of $28.2 million and $27.3 million as of March 31, 2022 and December 31, 2021, respectively.

(4) Includes credit loss allowances on purchase-credit deteriorated mortgage and other loan receivables of $(85.1) million and $(77.9) million as of March 31, 2022 and December 31, 2021, respectively.

The maturity distribution for residential and commercial mortgage loans was as follows as of March 31, 2022:


Years	Residential		Commercial		Total mortgage loans
Remainder of 2022	$	299,047	$	1,000,106	$	1,299,153
2023	127,475		1,193,881		1,321,356
2024	832,243		1,710,830		2,543,073
2025	17,770		1,262,962		1,280,732
2026	699,076		3,086,745		3,785,821
2027	118,413		2,571,094		2,689,507
2028 and thereafter	7,609,997		4,664,132		12,274,129
Total	$	9,704,021	$	15,489,750	$	25,193,771

Actual maturities could differ from contractual maturities, because borrowers may have the right to prepay (with or without prepayment penalties) and loans may be refinanced.

Global Atlantic diversifies its mortgage loan portfolio by both geographic region and property type to reduce concentration risk. The following tables present the mortgage loans by geographic region and property type:


Mortgage loans - carrying value by geographic region	March 31, 2022		December 31, 2021
Pacific	$	7,313,819	$	6,675,064
West South Central	2,957,751		2,675,890
South Atlantic	6,057,624		4,996,043
Middle Atlantic	3,377,082		3,142,973
East North Central	1,143,793		590,911
Mountain	2,257,201		1,957,099
New England	1,114,162		1,099,157
East South Central	577,278		1,035,764
West North Central	335,757		350,546
Other regions	59,304		26,229
Total by geographic region	$	25,193,771	$	22,549,676


Mortgage loans - carrying value by property type	March 31, 2022		December 31, 2021
Residential	$	9,704,021	$	8,724,904
Office building	4,570,721		4,185,146
Apartment	7,240,838		6,194,819
Industrial	2,002,947		1,981,713
Retail	723,329		780,071
Other property types	753,879		483,560
Warehouse	198,036		199,463
Total by property type	$	25,193,771	$	22,549,676

As of March 31, 2022 and December 31, 2021, Global Atlantic had $213.1 million and $202.7 million of mortgage loans that were 90 days or more past due or in the process of foreclosure, respectively. Global Atlantic ceases accrual of interest on loans that are more than 90 days past due and recognizes income as cash is received. As of March 31, 2022 and December 31, 2021, there were $213.1 million and $202.7 million of mortgage loans that were non-income producing, respectively.

As of March 31, 2022 and December 31, 2021, less than 1% and 1% of residential mortgage loans have been granted forbearance due to COVID-19, respectively. This forbearance, which generally involves a 3-month period in which payments are not required (though must subsequently be made up), is not considered to result in troubled debt restructurings for the three months ended March 31, 2022 and 2021. Interest continues to accrue on loans in temporary forbearance.

As of March 31, 2022 and December 31, 2021, Global Atlantic had $6.1 million and $5.1 million of consumer loans that were delinquent by more than 120 days or in default, respectively.

Purchased credit deteriorated loans

Certain residential mortgage loans purchased by Global Atlantic were assessed at acquisition as having experienced a more-than-insignificant deterioration in credit quality since their origination. These loans are identified as PCD, and a reconciliation of the difference between the purchase price and the par value of these PCD loans is below. There were no PCD loans purchased during the three months ended March 31, 2022:


	Three Months Ended March 31,
	March 31, 2021
Purchase price of PCD loans acquired during the current period	$	3,694,867
Allowance for credit losses at acquisition	120,259
Discount (premium) attributable to other factors	(146,694)
Par value	$	3,668,432

Credit quality indicators

Mortgage and loan receivable performance status

The following table represents the portfolio of mortgage and loan receivables by origination year and performance status:


	As of March 31, 2022
Performance status	2022		2021		2020		2019		2018		Prior		Total
Commercial mortgage loans
Current	$	1,868,657	$	6,951,312	$	948,847	$	1,751,631	$	1,305,089	$	2,664,214	$	15,489,750
30 to 59 days past due	—		—		—		—		—		—		—
60 to 89 days past due	—		—		—		—		—		—		—
Over 90 days past due	—		—		—		—		—		—		—
Total commercial mortgage loans	$	1,868,657	$	6,951,312	$	948,847	$	1,751,631	$	1,305,089	$	2,664,214	$	15,489,750
Residential mortgage loans
Current	$	219,133	$	5,336,585	$	1,686,516	$	357,644	$	22,359	$	1,621,706	$	9,243,943
30 to 59 days past due	—		74,146		12,931		13,197		1,025		90,602		191,901
60 to 89 days past due	—		20,935		2,507		1,294		544		29,774		55,054
Over 90 days past due	—		11,221		16,696		15,554		2,737		166,915		213,123
Total residential mortgage loans	$	219,133	$	5,442,887	$	1,718,650	$	387,689	$	26,665	$	1,908,997	$	9,704,021






Total mortgage loans	$	2,087,790	$	12,394,199	$	2,667,497	$	2,139,320	$	1,331,754	$	4,573,211	$	25,193,771


	As of December 31, 2021
Performance status	2021		2020		2019		2018		2017		Prior		Total
Commercial mortgage loans
Current	$	6,831,655	$	976,369	$	1,883,908	$	1,373,865	$	817,954	$	1,941,021	$	13,824,772
30 to 59 days past due	—		—		—		—		—		—		—
60 to 89 days past due	—		—		—		—		—		—		—
Over 90 days past due	—		—		—		—		—		—		—
Total commercial mortgage loans	$	6,831,655	$	976,369	$	1,883,908	$	1,373,865	$	817,954	$	1,941,021	$	13,824,772
Residential mortgage loans
Current	$	4,505,537	$	1,576,342	$	393,153	$	123,995	$	65,070	$	1,711,156	$	8,375,253
30 to 59 days past due	24,955		6,028		5,818		1,155		739		75,104		113,799
60 to 89 days past due	4,247		1,243		607		—		—		27,028		33,125
Over 90 days past due	5,305		14,272		21,985		2,686		—		158,479		202,727
Total residential mortgage loans	$	4,540,044	$	1,597,885	$	421,563	$	127,836	$	65,809	$	1,971,767	$	8,724,904






Total mortgage loans	$	11,371,699	$	2,574,254	$	2,305,471	$	1,501,701	$	883,763	$	3,912,788	$	22,549,676

The following table represents the portfolio of consumer loan receivables by performance status:


Performance status	March 31, 2022		December 31, 2021
Consumer loans
Current	$	6,043,214	$	5,556,923
30 to 59 days past due	54,012		34,048
60 to 89 days past due	23,937		16,817
Over 90 days past due	16,572		10,137
Total consumer loans	$	6,137,735	$	5,617,925

Loan-to-value ratio on mortgage loans

The loan-to-value ratio is expressed as a percentage of the current amount of the loan relative to the value of the underlying collateral. The following table summarizes the loan-to-value ratios for commercial mortgage loans as of March 31, 2022 and December 31, 2021:


Loan-to-value as of March 31, 2022, by year of origination	Carrying value loan-to-value 70% and less		Carrying value loan-to-value 71% - 90%		Carrying value loan-to-value over 90%		Total carrying value
2022	$	1,716,958	$	151,699	$	—	$	1,868,657
2021	4,965,273		1,986,039		—		6,951,312
2020	788,984		124,861		35,002		948,847
2019	1,615,931		135,700		—		1,751,631
2018	1,256,207		48,882		—		1,305,089
2017	767,459		44,829		—		812,288
Prior	1,848,431		3,495		—		1,851,926
Total commercial mortgage loans	$	12,959,243	$	2,495,505	$	35,002	$	15,489,750


Loan-to-value as of December 31, 2021, by year of origination	Carrying value loan-to-value 70% and less		Carrying value loan-to-value 71% - 90%		Carrying value loan-to-value over 90%		Total carrying value
2021	$	4,910,170	$	1,921,485	$	—	$	6,831,655
2020	819,406		121,997		34,966		976,369
2019	1,747,656		136,252		—		1,883,908
2018	1,324,807		49,058		—		1,373,865
2017	772,989		44,965		—		817,954
2016	425,926		2,440		—		428,366
Prior	1,497,503		15,152		—		1,512,655
Total commercial mortgage loans	$	11,498,457	$	2,291,349	$	34,966	$	13,824,772

Changing economic conditions affect the valuation of commercial mortgage loans. Changing vacancies and rents are incorporated into the discounted cash flow analysis that Global Atlantic performs for monitored loans and may contribute to the establishment of (or increase or decrease in) a commercial mortgage loan valuation allowance for credit losses. In addition, Global Atlantic continuously monitors its commercial mortgage loan portfolio to identify risk. Areas of emphasis are properties that have exposure to specific geographic events, or have deteriorating credit.

The weighted average loan-to-value ratio for the residential mortgage loans was 66% and 68% as of March 31, 2022 and December 31, 2021, respectively.

Other investments

Other investments consist of the following:


	March 31, 2022		December 31, 2021
Investments in real estate(1)	$	3,564,803	$	1,564,853
Investments in renewable energy(2)	3,510,579		3,573,811
Investments in transportation and other leased assets(3)	2,638,884		2,663,759
Other investment partnerships	250,796		234,301
FHLB common stock and other investments	185,013		171,842
Total other investments	$	10,150,075	$	8,208,566

(1) Investments in real estate are held in consolidated investment companies that use fair value accounting.

(2) Net of accumulated depreciation attributed to consolidated renewable energy assets of $177.9 million and $156.8 million as of March 31, 2022 and December 31, 2021, respectively.

(3) Net of accumulated depreciation of $137.5 million and $105.1 million as of March 31, 2022 and December 31, 2021, respectively.

The total amount of other investments accounted for using the equity method of accounting was $1.2 billion as of both March 31, 2022 and December 31, 2021. Global Atlantic's maximum exposure to loss related to these equity method investments is limited to the carrying value of these investments plus unfunded commitments of $20.5 million and $22.4 million as of March 31, 2022 and December 31, 2021, respectively.

In addition, Global Atlantic has investments that would otherwise require the equity method of accounting for which the fair value option has been elected. The carrying amount of these investments was $174.9 million and $147.8 million as of March 31, 2022 and December 31, 2021, respectively.

Funding agreements

Certain Global Atlantic subsidiaries are members of regional banks in the Federal Home Loan Bank ("FHLB") system. These subsidiaries have also entered into funding agreements with their respective FHLB. The funding agreements are issued in exchange for cash. The funding agreements require that Global Atlantic pledge eligible assets, such as commercial mortgage loans, as collateral. With respect to certain classes of eligible assets, the FHLB holds the pledged eligible assets in custody at the respective FHLB. The liabilities for the funding agreements are included in policy liabilities in the consolidated statements of financial condition.

Information related to the FHLB investment and funding agreements as of March 31, 2022 and December 31, 2021 is as follows:


	Investment in common stock				Funding agreements issued to FHLB member banks				Collateral
	March 31, 2022		December 31, 2021		March 31, 2022		December 31, 2021		March 31, 2022		December 31, 2021
FHLB Indianapolis	$	80,640	$	80,640	$	1,616,408	$	1,619,765	$	2,584,557	$	2,577,698
FHLB Des Moines	34,600		34,600		620,901		620,006		1,036,313		1,004,530
FHLB Boston	22,520		22,520		325,375		326,639		482,410		553,384
Total	$	137,760	$	137,760	$	2,562,684	$	2,566,410	$	4,103,280	$	4,135,612

In addition, in January 2021, Global Atlantic launched an inaugural funding agreement backed note ("FABN") program, through which GA Global Funding Trust, a special purpose statutory trust, was established to offer its senior secured medium-term notes. Net proceeds from each sale of the aforementioned notes are used to purchase one or more funding agreements from Forethought Life Insurance Company, an insurance subsidiary of Global Atlantic. As of March 31, 2022 and December 31, 2021, Global Atlantic had $4.6 billion and $3.5 billion of such funding agreements outstanding, with $5.4 billion and $6.5 billion of remaining capacity under the program, respectively. Subsequent to quarter-end, in April 2022, Global Atlantic issued an additional $900 million of funding agreements in connection with the program.

Repurchase agreement transactions

As of March 31, 2022 and December 31, 2021, Global Atlantic participated in third-party repurchase agreements with a notional value of $810.5 million and $300.4 million, respectively. As collateral for these transactions, as of March 31, 2022 and December 31, 2021, Global Atlantic posted fixed maturity securities with a fair value and amortized cost of $829.0 million and $915.0 million, and $313.0 million and $317.0 million, respectively, which are included in Insurance - Investments in the consolidated statements of financial condition.

The fair value of securities pledged for repurchase agreements by class of collateral and remaining contractual maturity as of March 31, 2022 and December 31, 2021 is presented in the following tables:


As of March 31, 2022	Overnight		<30 Days		30 - 90 Days		> 90 Days		Total
Corporate Securities	$	—	$	519,752	$	—	$	309,292	$	829,044
Total borrowing	$	—	$	519,752	$	—	$	309,292	$	829,044


As of December 31, 2021	Overnight		<30 Days		30 - 90 Days		> 90 Days		Total
Corporate Securities	$	—	$	—	$	—	$	312,965	$	312,965
Total borrowing	$	—	$	—	$	—	$	312,965	$	312,965

Other

As of March 31, 2022 and December 31, 2021, the cost or amortized cost and fair value of the assets on deposit with various state and governmental authorities was $184.0 million and $165.6 million, and $182.6 million and $180.8 million, respectively.

9. DERIVATIVES

Asset Management

KKR and certain of its consolidated funds have entered into derivative transactions as part of their overall risk management for the asset management business and investment strategies. These derivative contracts are not designated as hedging instruments for accounting purposes. Such contracts may include forward, swap and option contracts related to foreign currencies and interest rates to manage foreign exchange risk and interest rate risk arising from certain assets and liabilities. All derivatives are recognized in Other Assets or Accrued Expenses and Other Liabilities and are presented on a gross basis in the consolidated statements of financial condition and measured at fair value with changes in fair value recorded in Net Gains (Losses) from Investment Activities in the accompanying consolidated statements of operations. KKR's derivative financial instruments contain credit risk to the extent that its counterparties may be unable to meet the terms of the agreements. KKR attempts to reduce this risk by limiting its counterparties to major financial institutions with strong credit ratings.

Insurance

Global Atlantic holds derivative instruments that are primarily used in its hedge program. Global Atlantic has established a hedge program that seeks to mitigate economic impacts primarily from interest rate and equity price movements, while taking into consideration accounting and capital impacts.

Global Atlantic hedges interest rate and equity market risks associated with its insurance liabilities including fixed-indexed annuities, indexed universal life policies, variable annuity policies and variable universal life policies, among others. For fixed-indexed annuities and indexed universal life policies, Global Atlantic generally seeks to use static hedges to offset the exposure primarily created by changes in its embedded derivative balances. Global Atlantic generally purchases options which replicate the crediting rate strategies, often in the form of call spreads. Call spreads are the purchase of a call option matched by the sale of a different call option. For variable annuities and variable universal life policies, Global Atlantic generally seeks to dynamically hedge its exposure to changes in the value of the guarantee it provides to policyholders. Doing so requires the active trading of several financial instruments to respond to changes in market conditions. In addition, Global Atlantic enters into inflation swaps to manage inflation risk associated with inflation-indexed preneed policies.

In the context of specific reinsurance transactions in the institutional channel or acquisitions, Global Atlantic may also enter into hedges which are designed to limit short-term market risks to the economic value of the target assets. From time to time, Global Atlantic also enters into hedges designed to mitigate interest rate and credit risk in investment income, interest expense, and fair value of assets and liabilities. In addition, Global Atlantic enters into currency swaps and forwards to manage any foreign exchange rate risks that may arise from investments denominated in foreign currencies.

Global Atlantic attempts to mitigate the risk of loss due to ineffectiveness under these derivative investments through a regular monitoring process which evaluates the program’s effectiveness. Global Atlantic is exposed to risk of loss in the event of non-performance by the counterparties and, accordingly, all option contracts are purchased from counterparties that have been evaluated for creditworthiness. All of these counterparties are nationally recognized financial institutions with a Moody’s or S&P investment-grade credit rating. Global Atlantic monitors its derivative activities by reviewing portfolio activities and risk levels. Global Atlantic also oversees all derivative transactions to ensure that the types of transactions entered into and the results obtained from those transactions are consistent with both Global Atlantic's risk management strategy and its policies and procedures.

The restricted cash which was held in connection with open derivative transactions with exchange brokers was $363.7 million and $151.1 million as of March 31, 2022 and December 31, 2021, respectively.

Global Atlantic also has embedded derivatives related to reinsurance contracts that are accounted for on a modified coinsurance and funds withheld basis. An embedded derivative exists because the arrangement exposes the reinsurer to third-party credit risk. These embedded derivatives are included in funds withheld receivable at interest in the consolidated balance sheets.

Derivatives designated as accounting hedges

Where Global Atlantic has derivative instruments that are designated and qualify as accounting hedges, these derivative instruments receive hedge accounting.

Global Atlantic has designated interest rate swaps to hedge the interest rate risk associated with the $500 million senior unsecured notes due 2029, $650 million senior unsecured notes due 2031, FHLB and FABN funding agreement liabilities in fair value hedges. The 2029 Senior Notes and 2031 Senior Notes are reported in debt and FHLB and FABN funding agreement liabilities are reported in policy liabilities in the consolidated statements of financial condition and are hedged through their respective maturities. These hedges qualify for the shortcut method of assessing hedge effectiveness.

The following table represents the gains (losses) recognized on derivative instruments and related hedged items in fair value hedging relationship:


Three Months Ended March 31, 2022	Derivatives		Hedged items		Net
2029 Senior Notes	$	(29,121)	$	29,121	$	—
2031 Senior Notes	(41,439)		41,439		—
FHLB funding agreement liabilities	(18,791)		18,791		—
FABN liabilities	(102,583)		102,583		—


Three Months Ended March 31, 2021	Derivatives		Hedged items		Net
2029 Senior Notes	$	(26,379)	$	26,379	$	—
FHLB funding agreement liabilities	(5,325)		5,325		—

The following table represents the carrying values and fair value adjustments for the hedged items:


	As of March 31, 2022				As of December 31, 2021
	Carrying value		Fair value of hedge adjustments		Carrying value		Fair value of hedge adjustments
2029 Senior Notes	$	436,868	$	(29,121)	$	473,890	$	(18,808)
2031 Senior Notes	608,561		(41,439)		644,439		(5,561)
FHLB funding agreement liabilities	1,038,085		(18,791)		1,070,770		(16,092)
FABN liabilities	3,921,609		(102,583)		—		—

Global Atlantic has designated bond forwards to hedge the interest rate risk associated with the planned purchase of AFS debt securities in cash flow hedges. Regression analysis is used to assess the effectiveness of these hedges. As of March 31, 2022 and December 31, 2021, there was a cumulative (loss) gain of $(48.1) million and $9.4 million on the bond forwards recorded in accumulated other comprehensive (loss) income, respectively. Amounts deferred in accumulated other comprehensive (loss) income are reclassified to net investment income following the qualifying purchases of AFS securities, as an adjustment to the yield earned over the life of the purchased securities, using the effective interest method. These arrangements are hedging purchases from July 2021 through January 2027 and are expected to affect earnings until 2051. There were $2.9 million of securities purchased for the three months ended March 31, 2022. Global Atlantic estimates that the amount of gains/losses in accumulated other comprehensive (loss) income to be reclassified into earnings in the next 12 months will not be material.

Global Atlantic has designated foreign exchange forward purchase contracts ("FX forwards") to hedge the foreign currency risk associated with foreign currency-denominated bonds in fair value hedges. These foreign currency-denominated bonds are accounted for as AFS fixed maturity securities. Changes in the fair value of the hedged AFS fixed maturity securities due to changes in spot exchange rates are reclassified from AOCI to earnings, which offsets the earnings impact of the spot changes of the FX forwards. The effectiveness of these hedges is assessed using the spot method. Changes in the fair value of the FX forwards related to changes in the spot-forward difference are excluded from the assessment of hedge effectiveness and are deferred in AOCI and recognized in earnings using a systematic and rational method over the life of the FX forwards.

The following table represents the gains (losses) related to the FX forwards hedging instruments:


	Three Months Ended March 31,
	2022		2021
Net investment-related gains (losses)	$	40,742	$	2,825
AOCI	18,318		165
Amortization - excluded component	3,544		(839)

The fair value and notional value of the derivative assets and liabilities were as follows:


As of March 31, 2022	Notional Value		Derivative Assets		Derivative Liabilities
Asset Management
Foreign Exchange Contracts and Options	$	5,891,394,106	$	367,079	$	239,875
Other Derivatives	98,851,905		5,294		28,077
Total Asset Management			372,373		267,952







Insurance
Equity market contracts	$	129,988,065	$	931,021	$	181,694
Interest rate contracts	11,794,558		297,358		509,816
Foreign currency contracts	2,209,118		47,866		20,988
Credit risk contracts	113,133		—		1,360
Impact of netting(1)			(251,656)		(251,656)
Fair value included within derivative assets and derivative liabilities			1,024,589		462,202
Embedded derivative – indexed universal life products			—		512,015
Embedded derivative – annuity products			—		1,777,832
Fair value included within policy liabilities			—		2,289,847
Embedded derivative – funds withheld at interest			8,196		(1,219,491)
Total Insurance			1,032,785		1,532,558

Fair value included within total assets and liabilities			$	1,405,158	$	1,800,510

(1) Represents netting of derivative exposures covered by qualifying master netting agreements.


As of December 31, 2021	Notional Value		Derivative Assets		Derivative Liabilities
Asset Management
Foreign Exchange Contracts and Options	$	12,822,521	$	590,637	$	319,511
Other Derivatives	505,725		491		45,003
Total Asset Management			591,128		364,514

Insurance
Equity market contracts	$	31,294,053	$	1,216,843	$	186,754
Interest rate contracts	16,692,035		198,658		101,245
Foreign currency contracts	1,517,434		32,464		7,639
Credit risk contracts	107,754		—		1,540
Impact of netting(1)			(152,015)		(152,015)
Fair value included within derivative assets and derivative liabilities			1,295,950		145,163
Embedded derivative – indexed universal life products			—		557,276
Embedded derivative – annuity products			—		1,983,949
Fair value included within policy liabilities			—		2,541,225
Embedded derivative – funds withheld at interest			31,740		(49,491)
Total Insurance			1,327,690		2,636,897

Fair value included within total assets and liabilities			$	1,918,818	$	3,001,411

(1) Represents netting of derivative exposures covered by qualifying master netting agreements.

The amounts of derivative gains and losses recognized are reported in the consolidated statements of operations as follows:


Derivative contracts not designated as hedges	Three Months Ended March 31,
		2022		2021
Asset Management
Net Gains (Losses) from Investment Activities:
Foreign Exchange Contracts and Options		$	(56,117)	$	9,549
Other Derivatives		8,132		(1,187)
Total included in Net Gains (Losses) from Investment Activities		$	(47,985)	$	8,362

Insurance
Net investment-related gains (losses):
Funds withheld receivable embedded derivatives		$	(33,980)	$	55,883
Funds withheld payable embedded derivatives		1,180,435		313,230
Equity index options		(223,366)		104,021
Equity future contracts		79,796		(69,583)
Interest rate contracts		(150,176)		(256,793)
Credit risk contracts		(1,532)		(36)

Total included in net investment-related gains (losses)		$	851,177	$	146,722


Derivative contracts designated as hedges	Three Months Ended March 31,
		2022		2021
Insurance
Revenues:
Foreign currency forwards		$	8,557	$	1,810
Total included in net investment-related gains (losses)		$	8,557	$	1,810
Policy benefits and claims:
Interest rate swap		$	(129,931)	$	(8,403)
Total included in policy benefits and claims		$	(129,931)	$	(8,403)
Interest expense:
Interest rate swap		$	(70,561)	$	(24,776)
Total included in interest expense		$	(70,561)	$	(24,776)

The amount of Global Atlantic's net derivative assets and liabilities after consideration of collateral received or pledged were as follows:


As of March 31, 2022	Gross amount recognized		Gross amounts offset in the statement of financial position(1)		Net amounts presented in the statement of financial condition		Collateral (received) / pledged		Net amount after collateral
Derivative assets (excluding embedded derivatives)	$	1,276,245	$	(251,656)	$	1,024,589	$	(894,687)	$	129,902
Derivative liabilities (excluding embedded derivatives)	$	713,858	$	(251,656)	$	462,202	$	79,070	$	383,132

(1) Represents netting of derivative exposures covered by qualifying master netting agreements.


As of December 31, 2021	Gross amount recognized		Gross amounts offset in the statement of financial position(1)		Net amounts presented in the statement of financial condition		Collateral (received) / pledged		Net amount after collateral
Derivative assets (excluding embedded derivatives)	$	1,447,965	$	(152,015)	$	1,295,950	$	(1,086,061)	$	209,889
Derivative liabilities (excluding embedded derivatives)	$	297,178	$	(152,015)	$	145,163	$	49,860	$	95,303

(1) Represents netting of derivative exposures covered by qualifying master netting agreements.

10. 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, 2022
	Level I		Level II		Level III			Total
Asset Management
Private Equity	$	1,906,139	$	275,759	$	23,999,016		$	26,180,914
Credit	—		1,506,877		5,314,853			6,821,730
Investments of Consolidated CFEs	—		22,014,866		—			22,014,866
Real Assets	—		1,496,708		13,292,123			14,788,831
Equity Method - Other	492,913		29,985		984,904			1,507,802
Other Investments	898,329		9,087		3,134,926			4,042,342
Total Investments	3,297,381		25,333,282		46,725,822			75,356,485

Foreign Exchange Contracts and Options	—		367,079		—			367,079
Other Derivatives	547		4,042		705		(1)	5,294
Total Assets at Fair Value - Asset Management	$	3,297,928	$	25,704,403	$	46,726,527		$	75,728,858












Insurance
AFS fixed maturity securities:
U.S. government and agencies	$	301,899	$	189,275	$	—		$	491,174
U.S. state, municipal and political subdivisions	—		4,786,996		—			4,786,996
Corporate	—		28,975,437		7,970,195			36,945,632
Structured securities	—		20,637,356		1,382,539			22,019,895
Total AFS fixed maturity securities	301,899		54,589,064		9,352,734			64,243,697
Trading fixed maturity securities:
U.S. government and agencies	233,754		158,440		—			392,194
U.S. state, municipal and political subdivisions	—		857,021		—			857,021
Corporate	—		7,582,756		705,685			8,288,441
Structured securities	—		2,893,125		630,579			3,523,704
Total trading fixed maturity securities	233,754		11,491,342		1,336,264			13,061,360
Equity securities	5,854		—		32,937			38,791
Mortgage and other loan receivables(2)	—		—		1,007,906			1,007,906
Other investments(3)	—		—		3,620,186			3,620,186
Funds withheld receivable at interest	—		—		8,196			8,196
Reinsurance recoverable	—		—		1,231,957			1,231,957
Derivative assets:
Equity market contracts	57,568		873,453		—			931,021
Interest rate contracts	38,903		258,455		—			297,358

Foreign currency contracts	—		47,866		—			47,866
Impact of netting(4)	(38,609)		(213,047)		—			(251,656)
Total derivative assets	57,862		966,727		—			1,024,589
Separate account assets	5,069,742		—		—			5,069,742
Total Assets at Fair Value - Insurance	$	5,669,111	$	67,047,133	$	16,590,180		$	89,306,424


Total Assets at Fair Value	$	8,967,039	$	92,751,536	$	63,316,707		$	165,035,282


	December 31, 2021
	Level I		Level II		Level III			Total
Asset Management
Private Equity	$	2,044,380	$	318,736	$	23,322,634		$	25,685,750
Credit	—		2,122,912		5,826,661			7,949,573
Investments of Consolidated CFEs	—		22,076,809		—			22,076,809
Real Assets	—		1,111,219		11,389,530			12,500,749
Equity Method - Other	482,061		105,647		1,013,807			1,601,515
Other Investments	759,002		146,081		3,240,013			4,145,096
Total Investments	3,285,443		25,881,404		44,792,645			73,959,492

Foreign Exchange Contracts and Options	—		590,637		—			590,637
Other Derivatives	—		12		479		(1)	491
Total Assets at Fair Value - Asset Management	$	3,285,443	$	26,472,053	$	44,793,124		$	74,550,620

Insurance
AFS fixed maturity securities:
U.S. government and agencies	$	500,325	$	284,222	$	—		$	784,547
U.S. state, municipal and political subdivisions	—		5,109,697		—			5,109,697
Corporate	—		33,281,727		7,650,660			40,932,387
Structured securities	—		21,215,854		828,401			22,044,255
Total AFS fixed maturity securities	500,325		59,891,500		8,479,061			68,870,886
Trading fixed maturity securities:
U.S. government and agencies	371,366		252,266		—			623,632
U.S. state, municipal and political subdivisions	—		879,463		—			879,463
Corporate	—		8,486,922		565,025			9,051,947
Structured securities	—		2,779,757		418,774			3,198,531
Total trading fixed maturity securities	371,366		12,398,408		983,799			13,753,573
Equity securities	256,196		—		32,937			289,133
Mortgage and other loan receivables(2)	—		—		832,674			832,674
Other investments(3)	—		—		1,603,345			1,603,345
Funds withheld receivable at interest	—		—		31,740			31,740
Reinsurance recoverable	—		—		1,293,791			1,293,791
Derivative assets:
Equity market contracts	66,510		1,150,333		—			1,216,843
Interest rate contracts	44,472		154,186		—			198,658

Foreign currency contracts	—		32,464		—			32,464
Impact of netting(4)	(25,588)		(126,427)		—			(152,015)
Total derivative assets	85,394		1,210,556		—			1,295,950
Separate account assets	5,586,428		—		—			5,586,428
Total Assets at Fair Value - Insurance	$	6,799,709	$	73,500,464	$	13,257,347		$	93,557,520

Total Assets at Fair Value	$	10,085,152	$	99,972,517	$	58,050,471		$	168,108,140

(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.

(2)Includes related party balance of $28.2 million and $27.3 million in Level III for mortgage and other loan receivables as of March 31, 2022 and December 31, 2021, respectively.

(3)Other investments excluded from the fair value hierarchy include certain real estate and private equity funds for which fair value is measured at net asset value per share as a practical expedient. As of March 31, 2022 and December 31, 2021, the fair value of these investments was $135.9 million and $108.7 million, respectively.

(4)Represents netting of derivative exposures covered by qualifying master netting agreements.

Liabilities, at fair value:


	March 31, 2022
	Level I		Level II		Level III			Total
Asset Management
Securities Sold Short	$	136,128	$	—	$	—		$	136,128
Foreign Exchange Contracts and Options	—		239,875		—			239,875
Unfunded Revolver Commitments	—		—		64,556		(1)	64,556
Other Derivatives	—		28,077		—			28,077
Debt Obligations of Consolidated CFEs	—		21,213,206		—			21,213,206
Total Liabilities at Fair Value - Asset Management	$	136,128	$	21,481,158	$	64,556		$	21,681,842








Insurance
Policy liabilities	$	—	$	—	$	466,408		$	466,408
Closed block policy liabilities	—		—		1,269,991			1,269,991
Funds withheld payable at interest	—		—		(1,219,491)			(1,219,491)
Derivative instruments payable:
Equity market contracts	63,886		117,808		—			181,694
Interest rate contracts	72,352		437,464		—			509,816
Foreign currency contracts	—		20,988		—			20,988
Credit contracts	—		1,360		—			1,360
Impact of netting(2)	(38,609)		(213,047)		—			(251,656)
Total derivative instruments payable	97,629		364,573		—			462,202

Embedded derivative – indexed universal life products	—		—		512,015			512,015
Embedded derivative – annuity products	—		—		1,777,832			1,777,832
Total Liabilities at Fair Value - Insurance	$	97,629	$	364,573	$	2,806,755		$	3,268,957

Total Liabilities at Fair Value	$	233,757	$	21,845,731	$	2,871,311		$	24,950,799


	December 31, 2021
	Level I		Level II		Level III			Total
Asset Management
Securities Sold Short	$	249,383	$	—	$	—		$	249,383
Foreign Exchange Contracts and Options	—		319,511		—			319,511
Unfunded Revolver Commitments	—		—		64,276		(1)	64,276
Other Derivatives	—		45,003		—			45,003
Debt Obligations of Consolidated CFEs	—		21,271,084		—			21,271,084
Total Liabilities at Fair Value - Asset Management	$	249,383	$	21,635,598	$	64,276		$	21,949,257

Insurance
Policy liabilities	$	—	$	—	$	519,454		$	519,454
Closed block policy liabilities	—		—		1,350,224			1,350,224
Funds withheld payable at interest	—		—		(49,491)			(49,491)
Derivative instruments payable:
Equity market contracts	33,933		152,821		—			186,754
Interest rate contracts	14,009		87,236		—			101,245
Foreign currency contracts	—		7,639		—			7,639
Credit contracts	—		1,540		—			1,540
Impact of netting(2)	(25,588)		(126,427)		—			(152,015)
Total derivative instruments payable	22,354		122,809		—			145,163

Embedded derivative – indexed universal life products	—		—		557,276			557,276
Embedded derivative – annuity products	—		—		1,983,949			1,983,949
Total Liabilities at Fair Value - Insurance	$	22,354	$	122,809	$	4,361,412		$	4,506,575

Total Liabilities at Fair Value	$	271,737	$	21,758,407	$	4,425,688		$	26,455,832

(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)Represents netting of derivative exposures covered by qualifying master netting agreement.

The following tables summarize changes in assets and liabilities 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, 2022 and 2021, respectively. For certain insurance disclosures, the beginning of the period represents balances as of the GA Acquisition Date.



































	Three Months Ended March 31, 2022
	Balance, Beg. of Period		Transfers In / (Out) - Changes in Consolidation		Transfers In		Transfers Out		Net Purchases/Issuances/Sales/Settlements		Net Unrealized and Realized Gains (Losses)		Change in OCI		Balance, End of Period		Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date		Changes in Net Unrealized Gains (Losses) Included in OCI related to Level III Assets and Liabilities still held as of the Reporting Date
Assets
Asset Management
Private Equity	$	23,322,634	$	—	$	—	$	(138,220)	$	680,792	$	133,810	$	—	$	23,999,016	$	18,304	$	—
Credit	5,826,661		—		—		—		(383,841)		(126,598)		(1,369)		5,314,853		(58,683)		(1,369)
Real Assets	11,389,530		—		—		—		1,008,641		893,952		—		13,292,123		864,586		—
Equity Method - Other	1,013,807		—		—		—		40,182		(69,085)		—		984,904		(71,310)		—
Other Investments	3,240,013		—		—		—		(86,258)		(18,829)		—		3,134,926		(14,995)		—
Other Derivatives	479		—		—		—		11,284		(11,058)		—		705		(11,058)		—
Total Assets - Asset Management	44,793,124		—		—		(138,220)		1,270,800		802,192		(1,369)		46,726,527		726,844		(1,369)

Insurance
AFS fixed maturity securities:

Corporate fixed maturity securities	7,650,660		—		—		—		391,605		1,275		(73,345)		7,970,195		—		(46,123)
Structured securities	828,401		—		343,338		—		228,734		(3,409)		(14,525)		1,382,539		—		(20,703)
Total AFS fixed maturity securities	8,479,061		—		343,338		—		620,339		(2,134)		(87,870)		9,352,734		—		(66,826)
Trading fixed maturity securities:


Corporate fixed maturity securities	565,025		—		—		(31,407)		182,432		(10,365)		—		705,685		(11,116)		—
Structured securities	418,774		—		98,307		(21,745)		144,203		(8,960)		—		630,579		(10,412)		—
Total trading fixed maturity securities	983,799		—		98,307		(53,152)		326,635		(19,325)		—		1,336,264		(21,528)		—
Equity securities	32,937		—		—		—		—		—		—		32,937		20,292		—
Mortgage and other loan receivables	832,674		—		—		—		203,197		(27,965)		—		1,007,906		(9,559)		—
Other investments	1,603,345		—		—		—		1,920,480		96,361		—		3,620,186		108,587		—
Funds withheld receivable at interest	31,740		—		—		—		10,435		(33,979)		—		8,196		—		—
Reinsurance recoverable	1,293,791		—		—		—		(14,375)		(47,459)		—		1,231,957		—		—
Total Assets - Insurance	13,257,347		—		441,645		(53,152)		3,066,711		(34,501)		(87,870)		16,590,180		97,792		(66,826)

Total	$	58,050,471	$	—	$	441,645	$	(191,372)	$	4,337,511	$	767,691	$	(89,239)	$	63,316,707	$	824,636	$	(68,195)


































	Three Months Ended March 31, 2021
	Balance, Beg. of Period		Transfers In / (Out) - Changes in Consolidation		Transfers In		Transfers Out		Net Purchases/Issuances/Sales/Settlements		Net Unrealized and Realized Gains (Losses)		Change in OCI		Balance, End of Period		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		Changes in Net Unrealized Gains (Losses) Included in OCI related to Level III Assets and Liabilities still held as of the Reporting Date
Assets
Asset Management
Private Equity	$	15,234,904	$	—	$	—	$	—	$	130,309	$	1,698,596	$	—	$	17,063,809	$	1,622,804	$	—
Credit	9,172,848		(1,021)		86,135		—		92,140		33,640		2,139		9,385,881		61,774		2,139
Real Assets	5,924,575		—		—		—		696,345		258,297		—		6,879,217		231,898		—
Equity Method - Other	1,014,378		—		—		—		(153,840)		181,242		—		1,041,780		180,258		—
Other Investments	2,341,981		(2,879)		—		(105,644)		63,054		176,853		—		2,473,365		214,879		—
Other Derivatives	6,668		—		—		—		3,574		(6,841)		—		3,401		(6,841)		—
Total Assets - Asset Management	33,695,354		(3,900)		86,135		(105,644)		831,582		2,341,787		2,139		36,847,453		2,304,772		2,139

Insurance
AFS fixed maturity securities:

Corporate fixed maturity securities	3,519,368		—		—		—		244,578		—		(24,416)		3,739,530		—		(22,210)
Structured securities	197,983		—		—		—		(1,692)		—		(3,185)		193,106		—		474
Total AFS fixed maturity securities	3,717,351		—		—		—		242,886		—		(27,601)		3,932,636		—		(21,736)
Trading fixed maturity securities:


Corporate fixed maturity securities	674,380		—		—		—		55,699		(4,001)		—		726,078		(3,600)		—
Structured securities	14,661		—		—		—		8,055		(183)		—		22,533		(222)		—
Total trading fixed maturity securities	689,041		—		—		—		63,754		(4,184)		—		748,611		(3,822)		—
Equity securities	66,660		—		—		—		—		3,325		—		69,985		3,325		—
Mortgage and other loan receivables	929,855		—		—		—		247,719		5,500		—		1,183,074		6,322		—
Other investments	443,824		—		—		—		—		1,058		—		444,882		6,092		—
Funds withheld receivable at interest	—		—		—		—		334		55,549		—		55,883		—		—
Reinsurance recoverable	—		—		—		—		—		1,317,962		—		1,317,962		—		—
Total Assets - Insurance	5,846,731		—		—		—		554,693		1,379,210		(27,601)		7,753,033		11,917		(21,736)

Total	$	39,542,085	$	(3,900)	$	86,135	$	(105,644)	$	1,386,275	$	3,720,997	$	(25,462)	$	44,600,486	$	2,316,689	$	(19,597)


	Three Months Ended March 31, 2022
		Purchases		Issuances		Sales		Settlements		Net Purchases/ Issuances/ Sales/ Settlements
Assets
Asset Management
Private Equity		$	904,261	$	—	$	(223,469)	$	—	$	680,792
Credit		519,351		—		(885,330)		(17,862)		(383,841)
Real Assets		1,510,787		—		(502,146)		—		1,008,641
Equity Method - Other		41,819		—		(1,637)		—		40,182
Other Investments		161,876		—		(248,134)		—		(86,258)
Other Derivatives		11,284		—		—		—		11,284
Total Assets - Asset Management		3,149,378		—		(1,860,716)		(17,862)		1,270,800

Insurance
AFS fixed maturity securities:

Corporate fixed maturity securities		924,672		—		(58,392)		(474,675)		391,605
Structured securities		231,916		—		—		(3,182)		228,734
Total AFS fixed maturity securities		1,156,588		—		(58,392)		(477,857)		620,339
Trading fixed maturity securities:


Corporate fixed maturity securities		189,017		—		—		(6,585)		182,432
Structured securities		155,253		—		—		(11,050)		144,203
Total trading fixed maturity securities		344,270		—		—		(17,635)		326,635

Mortgage and other loan receivables		220,225		—		—		(17,028)		203,197
Other investments		1,920,480		—		—		—		1,920,480
Funds withheld receivable at interest		—		10,435		—		—		10,435
Reinsurance recoverable		—		—		—		(14,375)		(14,375)
Total Assets - Insurance		3,641,563		10,435		(58,392)		(526,895)		3,066,711

Total		$	6,790,941	$	10,435	$	(1,919,108)	$	(544,757)	$	4,337,511


	Three Months Ended March 31, 2021
		Purchases		Issuances		Sales		Settlements		Net Purchases/ Issuances/ Sales/ Settlements
Assets
Asset Management
Private Equity		$	221,344	$	—	$	(91,035)	$	—	$	130,309
Credit		1,120,791		—		(1,028,651)		—		92,140
Real Assets		924,320		—		(227,975)		—		696,345
Equity Method - Other		144		—		(153,984)		—		(153,840)
Other Investments		89,502		—		(26,448)		—		63,054
Other Derivatives		3,574		—		—		—		3,574
Total Assets - Asset Management		2,359,675		—		(1,528,093)		—		831,582

Insurance
AFS fixed maturity securities:

Corporate fixed maturity securities		287,638		—		(3,299)		(39,761)		244,578
Structured securities		10		—		—		(1,702)		(1,692)
Total AFS fixed maturity securities		287,648		—		(3,299)		(41,463)		242,886
Trading fixed maturity securities:


Corporate fixed maturity securities		57,451		—		—		(1,752)		55,699
Structured securities		8,110		—		—		(55)		8,055
Total trading fixed maturity securities		65,561		—		—		(1,807)		63,754

Mortgage and other loan receivables		254,995		—		(5,076)		(2,200)		247,719

Funds withheld receivable at interest		—		334		—		—		334

Total Assets - Insurance		608,204		334		(8,375)		(45,470)		554,693

Total		$	2,967,879	$	334	$	(1,536,468)	$	(45,470)	$	1,386,275


	Three Months Ended March 31, 2022
	Balance, Beg. of Period		Transfers In / (Out) - Changes in Consolidation		Transfers In		Transfers Out		Net Purchases/Sales/Settlements/Issuances		Net Unrealized and Realized Gains (Losses)		Change in OCI		Balance, End of Period		Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date
Liabilities
Asset Management
Unfunded Revolver Commitments	$	64,276	$	—	$	—	$	—	$	—	$	280	$	—	$	64,556	$	280
Total Liabilities - Asset Management	64,276		—		—		—		—		280		—		64,556		280

Insurance
Policy liabilities	519,454		—		—		—		—		(53,046)		—		466,408		—
Closed block policy liabilities	1,350,224		—		—		—		(81,101)		(2,992)		3,860		1,269,991		—
Funds withheld payable at interest	(49,491)		—		—		—		10,435		(1,180,435)		—		(1,219,491)		—

Embedded derivative – indexed universal life products	557,276		—		—		—		3,302		(48,563)		—		512,015		—
Embedded derivative – annuity products	1,983,949		—		—		—		107,302		(313,419)		—		1,777,832		—
Total Liabilities - Insurance	4,361,412		—		—		—		39,938		(1,598,455)		3,860		2,806,755		—

Total	$	4,425,688	$	—	$	—	$	—	$	39,938	$	(1,598,175)	$	3,860	$	2,871,311	$	280



	Three Months Ended March 31, 2021
	Balance, Beg. of Period		Transfers In / (Out) - Changes in Consolidation		Transfers In		Transfers Out		Net Purchases/Sales/Settlements/Issuances		Net Unrealized and Realized Gains (Losses)		Change in OCI		Balance, End of Period		Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date
Liabilities
Asset Management
Unfunded Revolver Commitments	$	46,340	$	—	$	—	$	—	$	1,167	$	(11,870)	$	—	$	35,637	$	(11,870)
Total Liabilities - Asset Management	$	46,340	$	—	$	—	$	—	$	1,167	$	(11,870)	$	—	$	35,637	$	(11,870)

Insurance
Policy liabilities	637,800		—		—		—		—		(72,158)		—		565,642		—
Closed block policy liabilities	1,395,746		—		—		—		—		(25,982)		(2,885)		1,366,879		—
Funds withheld payable at interest	59,230		—		—		—		—		(372,460)		—		(313,230)		—

Embedded derivative – indexed universal life products	386,746		—		—		—		(931)		48,427		—		434,242		—
Embedded derivative – annuity products	1,024,601		—		—		—		44,809		(84,500)		—		984,910		—
Total Liabilities - Insurance	3,504,123		—		—		—		43,878		(506,673)		(2,885)		3,038,443		—

Total	3,550,463		—		—		—		45,045		(518,543)		(2,885)		3,074,080		(11,870)


	Three Months Ended March 31, 2022
		Issuances		Settlements		Net Purchases/Issuances/Sales/Settlements
Liabilities
Asset Management
Unfunded Revolver Commitments		$	—	$	—	$	—
Total Liabilities - Asset Management		—		—		—

Insurance

Closed block policy liabilities		—		(81,101)		(81,101)
Funds withheld payable at interest		10,435		—		10,435

Embedded derivative – indexed universal life products		8,985		(5,683)		3,302
Embedded derivative – annuity products		107,302		—		107,302
Total Liabilities - Insurance		126,722		(86,784)		39,938

Total		$	126,722	$	(86,784)	$	39,938


	Three Months Ended March 31, 2021
	Issuances		Settlements		Net Issuances/Settlements
Liabilities
Asset Management
Unfunded Revolver Commitments	$	1,167	$	—	$	1,167
Total Liabilities - Asset Management	1,167		—		1,167

Insurance




Embedded derivative – indexed universal life products	5,607		(6,538)		(931)
Embedded derivative – annuity products	44,809		—		44,809
Total Liabilities - Insurance	50,416		(6,538)		43,878

Total	$	51,583	$	(6,538)	$	45,045

Total realized and unrealized gains and losses recorded for Asset Management - Level III assets and liabilities are reported in Net Gains (Losses) from Investment Activities in the accompanying consolidated statements of operations while Insurance - Level III assets and liabilities are reported in Net Investment Gains and Policy Benefits and Claims in the accompanying consolidated statements of operations.

The following table presents additional information about valuation methodologies and significant unobservable inputs used for financial assets and liabilities that are measured and reported at fair value and categorized within Level III as of March 31, 2022. Because input information includes only those items for which information is reasonably available, balances shown below may not equal total amounts reported for such Level III assets and liabilities:


Level III Assets	Fair Value March 31, 2022		Valuation Methodologies		Unobservable Input(s) (1)		Weighted Average (2)		Range		Impact to Valuation from an Increase in Input (3)

ASSET MANAGEMENT

Private Equity	$	23,999,016

Private Equity	$	21,320,867	Inputs to market comparables, discounted cash flow and transaction price		Illiquidity Discount		6.7%		5.0% - 15.0%		Decrease
				Weight Ascribed to Market Comparables		29.1%		0.0% - 100.0%		(4)
				Weight Ascribed to Discounted Cash Flow		65.4%		0.0% - 100.0%		(5)
				Weight Ascribed to Transaction Price		5.5%		0.0% - 100.0%		(6)
			Market comparables		Enterprise Value/LTM EBITDA Multiple		17.3x		8.2x - 31.2x		Increase
				Enterprise Value/Forward EBITDA Multiple		15.1x		6.4x - 23.8x		Increase
			Discounted cash flow		Weighted Average Cost of Capital		9.2%		4.6% - 14.6%		Decrease
				Enterprise Value/LTM EBITDA Exit Multiple		14.3x		6.0x - 20.0x		Increase





































Growth Equity	$	2,678,149	Inputs to market comparables, discounted cash flow and milestones		Illiquidity Discount		8.6%		5.0% - 20.0%		Decrease
				Weight Ascribed to Market Comparables		37.6%		0.0% - 100.0%		(4)
				Weight Ascribed to Discounted Cash Flow		2.1%		0.0% - 50.0%		(5)
				Weight Ascribed to Milestones		60.3%		0.0% - 100.0%		(6)
			Scenario Weighting		Base		76.1%		70.0% - 80.0%		Increase
				Downside		4.9%		0.0% - 10.0%		Decrease
				Upside		19.0%		10.0% - 25.0%		Increase

Credit	$	5,314,853	Yield Analysis		Yield		8.8%		5.0% - 40.6%		Decrease
				Net Leverage		6.1x		0.3x - 33.6x		Decrease
				EBITDA Multiple		13.8x		0.7x - 33.0x		Increase




Real Assets	$	13,292,123

Energy	$	1,434,690	Inputs to market comparables and discounted cash flow		Weight Ascribed to Market Comparables		29.0%		0.0% - 50.0%		(4)
				Weight Ascribed to Discounted Cash Flow		71.0%		50.0% - 100.0%		(5)
			Market comparables		Enterprise Value/LTM EBITDA Multiple		5.7x		5.7x - 5.7x		Increase
				Enterprise Value/Forward EBITDA Multiple		5.9x		4.5x - 8.8x		Increase
			Discounted cash flow		Weighted Average Cost of Capital		12.8%		10.1% - 15.4%		Decrease
					Average Price Per BOE (8)		$48.63		$44.38 - $58.31		Increase


Level III Assets	Fair Value March 31, 2022			Valuation Methodologies		Unobservable Input(s) (1)		Weighted Average (2)		Range		Impact to Valuation from an Increase in Input (3)

Infrastructure	$	3,880,965		Inputs to market comparables, discounted cash flow and transaction price		Illiquidity Discount		5.0%		5.0% - 5.0%		Decrease
					Weight Ascribed to Market Comparables		1.7%		0.0% - 25.0%		(4)
					Weight Ascribed to Discounted Cash Flow		69.7%		0.0% - 100.0%		(5)
					Weight Ascribed to Transaction Price		28.6%		0.0% - 100.0%		(6)
				Market comparables		Enterprise Value/Forward EBITDA Multiple		11.4x		11.4x - 11.4x		Increase
				Discounted cash flow		Weighted Average Cost of Capital		6.7%		4.7% - 8.5%		Decrease
					Enterprise Value/LTM EBITDA Exit Multiple		12.1x		10.0x - 13.0x		Increase

Real Estate	$	7,976,468		Inputs to direct income capitalization, discounted cash flow and transaction price		Weight Ascribed to Direct Income Capitalization		18.4%		0.0% - 100.0%		(7)
					Weight Ascribed to Discounted Cash Flow		72.4%		0.0% - 100.0%		(5)
					Weight Ascribed to Transaction Price		9.2%		0.0% - 100.0%		(6)
				Direct income capitalization		Current Capitalization Rate		5.1%		3.6% - 7.4%		Decrease
				Discounted cash flow		Unlevered Discount Rate		6.2%		3.8% - 18.0%		Decrease

Equity Method - Other	$	984,904		Inputs to market comparables, discounted cash flow and transaction price		Illiquidity Discount		7.5%		5.0% - 10.0%		Decrease
				Weight Ascribed to Market Comparables		38.8%		0.0% - 100.0%		(4)
					Weight Ascribed to Discounted Cash Flow		26.7%		0.0% - 100.0%		(5)
					Weight Ascribed to Transaction Price		34.6%		0.0% - 100.0%		(6)
				Market comparables		Enterprise Value/LTM EBITDA Multiple		11.9x		5.7x - 18.1x		Increase
					Enterprise Value/Forward EBITDA Multiple		12.0x		4.5x - 18.5x		Increase
				Discounted cash flow		Weighted Average Cost of Capital		10.2%		6.0% - 17.0%		Decrease
					Enterprise Value/LTM EBITDA Exit Multiple		9.9x		6.0x - 15.0x		Increase

Other Investments	$	3,134,926	(9)	Inputs to market comparables, discounted cash flow and transaction price		Illiquidity Discount		11.1%		10.0% - 20.0%		Decrease
				Weight Ascribed to Market Comparables		22.9%		0.0% - 100.0%		(4)
					Weight Ascribed to Discounted Cash Flow		58.5%		0.0% - 100.0%		(5)
					Weight Ascribed to Transaction Price		18.6%		0.0% - 100.0%		(6)
				Market comparables		Enterprise Value/LTM EBITDA Multiple		12.0x		0.8x - 25.0x		Increase
					Enterprise Value/Forward EBITDA Multiple		11.2x		0.7x - 22.9x		Increase
				Discounted cash flow		Weighted Average Cost of Capital		14.4%		6.5% - 100.0%		Decrease
					Enterprise Value/LTM EBITDA Exit Multiple		10.4x		5.5x - 23.1x		Increase




INSURANCE

Corporate fixed maturity securities	$	1,620,204		Discounted cash flow		Discount Spread		2.01%		—% - 4.91%		Decrease

Structured securities	$	134,475		Discounted cash flow		Discount Spread		3.00%		2.50% - 5.75%		Decrease
						Constant Prepayment Rate		7.31%		5.00% - 15.00%		Increase/Decrease
						Constant Default Rate		1.17%		1.00% - 2.50%		Decrease
						Loss Severity				100%		Decrease

Other investments	$	1,445,961		Direct capitalization		Current Capitalization Rate		5.36%		5.11% - 5.61%		Decrease
					Vacancy rate				5.00%		Decrease
				Discounted cash flow		Yield				8.00%		Decrease
						Rate		5.12%		5.00% - 5.25%		Decrease
						Terminal capitalization rate		3.97%		3.70% - 4.25%		Decrease


Level III Assets	Fair Value March 31, 2022		Valuation Methodologies		Unobservable Input(s) (1)		Weighted Average (2)		Range		Impact to Valuation from an Increase in Input (3)


Funds withheld receivable at interest	$	8,196	Discounted cash flow		Duration/Weighted Average Life		9.56 years		0.0 years - 22.6 years		Increase
				Contractholder Persistency		6.39%		3.50% - 17.20%		Increase
				Nonperformance Risk				0.51% - 1.56%		Decrease

Reinsurance recoverable	$	1,231,957	Present value of expenses paid from the open block plus the cost of capital held in support of the liabilities.		Expense assumption				The average expense assumption is between $5.26 and $78.00 per policy, increased by inflation.		Increase
			Unobservable inputs are a market participant’s view of the expenses, a risk margin on the uncertainty of the level of expenses and a cost of capital on the capital held in support of the liabilities.		Expense risk margin				9.42%		Decrease
					Cost of capital				3.69% - 13.85%		Increase
			Discounted cash flow		Mortality Rate				5.46%		Increase
				Surrender Rate				2.01%		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. KKR 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 87% liquids and 13% natural gas.

(9)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.


Level III Liabilities	Fair Value March 31, 2022			Valuation Methodologies		Unobservable Input(s) (1)	Weighted Average (2)		Range		Impact to Valuation from an Increase in Input (3)

ASSET MANAGEMENT

Unfunded Revolver Commitments	$	64,556		Yield Analysis		Yield	5.8%		3.7% - 7.4%		Decrease



INSURANCE

Policy liabilities	$	466,408		Present value of best estimate liability cash flows. Unobservable inputs include a market participant view of the risk margin included in the discount rate which reflects the variability of the cash flows.		Risk Margin Rate			0.51% - 1.82%		Decrease
			Policyholder behavior is also a significant unobservable input, including surrender and mortality.		Surrender Rate			3.61% - 6.45%		Increase
					Mortality Rate			3.65% - 8.59%		Increase

Closed block policy liabilities	$	1,269,991		Present value of expenses paid from the open block plus the cost of capital held in support of the liabilities.		Expense assumption			The average expense assumption is between $5.26 and $78.00 per policy, increased by inflation.		Increase
			Nonperformance Risk					0.51% - 1.56%		Decrease
			Unobservable inputs are a market participant’s view of the expenses, a risk margin on the uncertainty of the level of expenses and a cost of capital on the capital held in support of the liabilities.		Expense Risk Margin			9.42%		Decrease
					Cost of Capital			3.69% - 13.85%		Increase
			Discounted cash flow		Mortality Rate			5.46%		Increase
					Surrender Rate			2.01%		Increase

Funds withheld payable at interest	$	(1,219,491)		Discounted cash flow		Duration/Weighted Average Life	9.6 years		0.0 years - 18.9 years		Decrease
				Contractholder Persistency		6.39%	3.50% - 17.20%		Decrease
						Nonperformance Risk			0.51% - 1.56%		Decrease

Embedded derivative – indexed universal life products	$	512,015		Policy persistency is a significant unobservable input.		Lapse Rate			3.86%		Decrease
					Mortality Rate			0.71%		Decrease
			Future costs for options used to hedge the contract obligations		Option Budge Assumption			3.58%		Increase
					Nonperformance Risk			0.51% - 1.56%		Decrease


Level III Liabilities	Fair Value March 31, 2022			Valuation Methodologies		Unobservable Input(s) (1)		Weighted Average (2)		Range		Impact to Valuation from an Increase in Input (3)

Embedded derivative – annuity products	$	1,777,832		Policyholder behavior is a significant unobservable input, including utilization and lapse.		Utilization:
					Fixed-indexed annuity		3.87%				Decrease
					Variable annuity		4.21%		2.32% - 35.02%		Decrease
					Surrender Rate:
					Fixed-indexed annuity		10.67%				Decrease
					Variable annuity				4.09% - 39.60%		Decrease
					Mortality Rate:
					Fixed-indexed annuity		1.99%				Decrease
					Variable annuity				1.36% - 7.38%		Decrease
			Future costs for options used to hedge the contract obligations		Option Budge Assumption:
					Retail RIA		1.60%				Increase
					Fixed-indexed annuity		2.01%				Increase
					Variable annuity		n/a
					Nonperformance Risk				0.51% - 1.56%		Decrease

(2)Inputs were weighted based on the fair value of the investments included in the range.

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.

Financial Instruments Not Carried At Fair Value

Asset management financial instruments are primarily measured at fair value on a recurring basis, except as disclosed in Note 17 "Debt Obligations."

The following tables present carrying amounts and fair values of Global Atlantic’s financial instruments which are not carried at fair value as of March 31, 2022 and December 31, 2021:


			Fair Value Hierarchy
As of March 31, 2022	Carrying Value		Level I		Level II		Level III		Fair Value
($ in thousands)
Financial assets:
Insurance
Mortgage and other loan receivables	$	30,568,779	$	—	$	—	$	30,759,101	$	30,759,101
Policy loans	762,460		—		—		759,299		759,299
FHLB common stock and other investments	185,013		—		—		185,013		185,013
Funds withheld receivables at interest	2,958,607		—		2,958,607		—		2,958,607
Cash and cash equivalents	4,590,032		4,590,032		—		—		4,590,032
Restricted cash and cash equivalents	523,503		523,503		—		—		523,503
Total financial assets	$	39,588,394	$	5,113,535	$	2,958,607	$	31,703,413	$	39,775,555
Financial liabilities:
Insurance
Other contractholder deposit funds	$	34,823,758	$	—	$	32,804,568	$	—	$	32,804,568
Supplementary contracts without life contingencies	11,765		—		—		11,959		11,959
Funding agreements	2,562,684		—		—		2,515,380		2,515,380
Funds withheld payables at interest	23,001,222		—		23,001,222		—		23,001,222
Debt obligations	2,029,769		—		—		1,923,154		1,923,154
Securities sold under agreements to repurchase	810,535		—		810,535		—		810,535
Total financial liabilities	$	63,239,733	$	—	$	56,616,325	$	4,450,493	$	61,066,818


			Fair Value Hierarchy
As of December 31, 2021	Carrying Value		Level I		Level II		Level III		Fair Value
($ in thousands)
Financial assets:
Insurance
Mortgage and other loan receivables	$	28,044,085	$	—	$	—	$	28,645,675	$	28,645,675
Policy loans	765,310		—		—		754,530		754,530
FHLB common stock and other investments	171,842		—		—		171,842		171,842
Funds withheld receivables at interest	2,967,708		—		2,967,708		—		2,967,708
Cash and cash equivalents	3,391,934		3,391,934		—		—		3,391,934
Restricted cash and cash equivalents	300,404		300,404		—		—		300,404
Total financial assets	$	35,641,283	$	3,692,338	$	2,967,708	$	29,572,047	$	36,232,093
Financial liabilities:
Insurance
Other contractholder deposit funds	$	30,295,965	$	—	$	28,419,520	$	—	$	28,419,520
Supplementary contracts without life contingencies	31,118		—		—		31,311		31,311
Funding agreements	2,566,410		—		—		2,549,494		2,549,494
Funds withheld payables at interest	23,509,744		—		23,509,744		—		23,509,744
Debt obligations	1,908,006		—		—		1,953,631		1,953,631
Securities sold under agreements to repurchase	300,446		—		300,446		—		300,446
Total financial liabilities	$	58,611,689	$	—	$	52,229,710	$	4,534,436	$	56,764,146

11. FAIR VALUE OPTION

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


	March 31, 2022		December 31, 2021
Assets

Asset Management
Credit	$	696,906	$	2,019,229
Investments of Consolidated CFEs	22,014,866		22,076,809
Real Assets	207,543		182,858
Equity Method - Other	1,507,802		1,601,515
Other Investments	169,492		197,675
Total Asset Management	$	24,596,609	$	26,078,086
Insurance
Mortgage and other loan receivables	$	1,007,906	$	832,674

Other investments	174,875		147,811
Reinsurance recoverable	1,231,957		1,293,791
Total Insurance	$	2,414,738	$	2,274,276

Total Assets	$	27,011,347	$	28,352,362

Liabilities
Asset Management
Debt Obligations of Consolidated CFEs	$	21,213,206	$	21,271,084
Total Asset Management	$	21,213,206	$	21,271,084
Insurance
Policy liabilities	$	1,736,399	$	1,869,678


Total Insurance	$	1,736,399	$	1,869,678

Total Liabilities	$	22,949,605	$	23,140,762

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


	Three Months Ended March 31, 2022
		Net Realized Gains (Losses)		Net Unrealized Gains (Losses)		Total
Assets

Asset Management
Credit		$	(37,515)	$	(15,834)	$	(53,349)
Investments of Consolidated CFEs		2,949		(269,548)		(266,599)
Real Assets		85		24,685		24,770
Equity Method - Other		(16,333)		(45,468)		(61,801)
Other Investments		6,308		(7,685)		(1,377)
Total Asset Management		$	(44,506)	$	(313,850)	$	(358,356)
Insurance
Mortgage and other loan receivables		—		(27,015)		(27,015)

Other investments		—		27,737		27,737

Total Insurance		$	—	$	722	$	722

Total Assets		$	(44,506)	$	(313,128)	$	(357,634)

Liabilities
Asset Management
Debt Obligations of Consolidated CFEs		(785)		226,058		225,273
Total Asset Management		$	(785)	$	226,058	$	225,273
Insurance
Policy liabilities		—		42,419		42,419


Total Insurance		$	—	$	42,419	$	42,419

Total Liabilities		$	(785)	$	268,477	$	267,692

	Three Months Ended March 31, 2021
		Net Realized Gains (Losses)		Net Unrealized Gains (Losses)		Total
Assets
Asset Management
Credit		$	(15,689)	$	(18,745)	$	(34,434)
Investments of Consolidated CFEs		(2,628)		128,143		125,515
Real Assets		47		727		774
Equity Method - Other		984		229,081		230,065
Other Investments		5,050		7,004		12,054
Total Asset Management		$	(12,236)	$	346,210	$	333,974
Insurance
Mortgage and other loan receivables		—		7,561		7,561
Other investments		—		3,866		3,866
Total Insurance		—		11,427		11,427

Total Assets		$	(12,236)	$	357,637	$	345,401

Liabilities
Asset Management
Debt Obligations of Consolidated CFEs		$	(2,048)	$	(44,096)	$	(46,144)
Total Asset Management		$	(2,048)	$	(44,096)	$	(46,144)
Insurance
Policy liabilities		$	—	$	(65,834)	$	(65,834)
Total Insurance		$	—	$	(65,834)	$	(65,834)

Total Liabilities		$	(2,048)	$	(109,930)	$	(111,978)

12. INSURANCE INTANGIBLES, UNEARNED REVENUE RESERVES AND UNEARNED FRONT-END LOADS

The following reflects the changes to the deferred policy acquisition costs ("DAC") asset:


	Three Months Ended March 31,
	2022		2021
Balance, as of beginning of period	$	447,886	$	—

Deferrals	114,935		76,694
Amortized to expense during the period(1)	(9,343)		798
Adjustment for unrealized investment-related losses (gains) during the period	(14,313)		—
Balance, as of end of period	$	539,165	$	77,492

(1) These amounts are reported within amortization of policy acquisition costs in the consolidated statements of operations.

The following reflects the changes to the value of business acquired ("VOBA") asset:


	Three Months Ended March 31,
	2022		2021
Balance, as of beginning of period	$	959,263	$	1,024,520
Amortized to expense during the period(1)	(17,144)		(12,182)

Balance, as of end of period	$	942,119	$	1,012,338

(1) These amounts are reported within amortization of policy acquisition costs in the consolidated statements of operations.

The following reflects the changes to the negative VOBA liability:


	Three Months Ended March 31,
	2022		2021
Balance, as of beginning of period	$	1,118,716	$	1,273,414
Amortized to expense during the period(1)	(34,220)		(31,862)
Balance, as of end of period	$	1,084,496	$	1,241,552

(1) These amounts are reported within amortization of policy acquisition costs in the consolidated statements of operations.

The following reflects the changes to the unearned revenue reserve ("URR") and unearned front-end load ("UFEL):


	Three Months Ended March 31,
	2022		2021
Balance, as of beginning of period	$	33,603	$	—
Deferrals	16,686		9,575
Amortized to revenue during the period(1)	(5,934)		(2,013)
Adjustment for unrealized investment-related gains during the period	(40,577)		—
Balance, as of end of period	$	3,778	$	7,562

(1) These amounts are reported within policy fees in the consolidated statements of operations.

13. REINSURANCE

Global Atlantic maintains a number of reinsurance treaties with third parties whereby Global Atlantic assumes fixed annuity, variable annuity, payout annuity, universal life, variable universal life and term life insurance policies on a coinsurance, modified coinsurance and funds withheld basis. Global Atlantic also maintains other reinsurance treaties including the cession of certain fixed annuity, variable annuity, payout annuity, universal life policies, individual disability income policies and discontinued accident and health insurance.

The effects of all reinsurance agreements on the consolidated statement of financial condition were as follows:


	March 31, 2022		December 31, 2021
Policy liabilities:
Direct	$	68,444,765	$	67,131,818
Assumed	62,631,922		59,388,226
Total policy liabilities	131,076,687		126,520,044
Ceded(1)	(24,625,159)		(25,035,228)
Net policy liabilities	$	106,451,528	$	101,484,816

(1)Reported within reinsurance recoverable within the consolidated statement of financial condition.

A key credit quality indicator is a counterparty’s A.M. Best financial strength rating. A.M. Best ratings are an independent opinion of a reinsurer’s ability to meet ongoing obligations to policyholders. Global Atlantic mitigates counterparty credit risk by requiring collateral and credit enhancements in various forms including engaging in funds withheld at interest and modified coinsurance transactions. The following shows the amortized cost basis of Global Atlantic’s reinsurance recoverable and funds withheld receivable at interest by credit quality indicator and any associated credit enhancements Global Atlantic has obtained to mitigate counterparty credit risk:


	As of March 31, 2022						As of December 31, 2021
A.M. Best Rating(1)	Reinsurance recoverable and funds withheld receivable at interest(2)		Credit enhancements(3)		Net reinsurance credit exposure(4)		Reinsurance recoverable and funds withheld receivable at interest(2)		Credit enhancements(3)		Net reinsurance credit exposure(4)
A++	$	8,810	$	—	$	8,810	$	7,911	$	—	$	7,911
A+	1,977,750		—		1,977,750		1,989,426		—		1,989,426
A	2,571,414		—		2,571,414		2,652,286		—		2,652,286
A-	5,587,142		4,822,173		764,969		5,645,633		5,166,559		479,074
B++	37,176		—		37,176		33,410		—		33,410
B+	1,564		—		1,564		1,122		—		1,122
B	9,290		—		9,290		9,227		—		9,227
B-	1,850		—		1,850		1,274		—		1,274
Not rated(5)	17,430,904		16,959,558		471,346		17,698,613		18,323,795		—
Total	$	27,625,900	$	21,781,731	$	5,844,169	$	28,038,902	$	23,490,354	$	5,173,730

(1)Ratings are periodically updated (at least annually) as A.M. Best issues new ratings.

(2)At amortized cost, excluding any associated embedded derivative assets and liabilities.

(3)Includes funds withheld payable at interest and deferred intangible reinsurance assets and liabilities.

(4)Includes credit loss allowance of $28.1 million and $8.4 million as of March 31, 2022 and December 31, 2021, respectively, held against reinsurance recoverable.

(5)Includes $17.4 billion and $17.7 billion as of March 31, 2022 and December 31, 2021, respectively, associated with cessions to Ivy Re Limited, a Bermuda insurance company and a subsidiary of an investment vehicle that participates in qualifying reinsurance transactions sourced by Global Atlantic.

As of both March 31, 2022 and December 31, 2021, Global Atlantic had $3.0 billion of funds withheld receivable at interest, with six counterparties related to modified coinsurance and funds withheld contracts. The assets supporting these receivables were held in trusts and not part of the respective counterparty’s general accounts.

The effects of reinsurance on the consolidated statements of operations were as follows:


	Three Months Ended March 31,
		2022		2021
Premiums:
Direct		$	36,573	$	14,175
Assumed(1)		401,515		1,280,753
Ceded		(65,944)		(118,786)
Net premiums		$	372,144	$	1,176,142

(1)Includes related party activity of $2.7 million for the three months ended March 31, 2021.


	Three Months Ended March 31,
		2022		2021
Policy fees:
Direct		$	240,991	$	148,999
Assumed(1)		77,778		52,955
Ceded		(333)		(271)
Net policy fees		$	318,436	$	201,683

(1)Includes related party activity of $2.1 million for the three months ended March 31, 2021.


	Three Months Ended March 31,
		2022		2021
Policy benefits and claims:
Direct		$	235,604	$	182,801
Assumed(1)		604,233		1,467,127
Ceded		(113,777)		(164,610)
Net policy benefits and claims		$	726,060	$	1,485,318

(1)Includes related party activity of $22.5 million for the three months ended March 31, 2021.

Global Atlantic holds collateral for and provides collateral to our reinsurance clients. Global Atlantic held $22.9 billion and $23.4 billion of collateral on behalf of our reinsurers as of March 31, 2022 and December 31, 2021, respectively. As of March 31, 2022 and December 31, 2021, reinsurers held collateral of $1.4 billion and $1.3 billion on behalf of Global Atlantic, respectively. A significant portion of the collateral that Global Atlantic provides to its reinsurance clients is provided in the form of assets held in a trust for the benefit of the counterparty. As of March 31, 2022 and December 31, 2021, these trusts held in excess of the $58.6 billion and $55.2 billion of assets it is required to hold in order to support reserves of $59.0 billion and $55.8 billion, respectively. Of the cash held in trust, Global Atlantic classified $159.7 million and $149.3 million as restricted as of March 31, 2022 and December 31, 2021, respectively.

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

For the three months ended March 31, 2022 and 2021, basic and diluted Net Income (Loss) attributable to KKR & Co. Inc. per share of common stock were calculated as follows:


	Three Months Ended March 31,
		2022		2021



Net Income (Loss) Available to KKR & Co. Inc. Common Stockholders - Basic		$	(73,770)	$	1,644,245
(+) Series C Mandatory Convertible Preferred Dividend (if dilutive) (1)		—		17,250
Net Income (Loss) Available to KKR & Co. Inc. Common Stockholders - Diluted		$	(73,770)	$	1,661,495


Basic Net Income (Loss) Per Share of Common Stock
Weighted Average Shares of Common Stock Outstanding - Basic	592,202,835		576,727,967
Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Common Stock - Basic	$	(0.12)	$	2.85


Diluted Net Income (Loss) Per Share of Common Stock
Weighted Average Shares of Common Stock Outstanding - Basic	592,202,835		576,727,967
Incremental Common Shares:
Assumed vesting of dilutive equity awards (2)	—		17,337,924
Assumed conversion of Series C Mandatory Convertible Preferred Stock (1)	—		26,822,600
Weighted Average Shares of Common Stock Outstanding - Diluted	592,202,835		620,888,491
Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Common Stock - Diluted	$	(0.12)	$	2.68

(1) For the three months ended March 31, 2022 the impact of Series C Mandatory Convertible Preferred Stock is excluded from the calculation of Diluted Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Common Stock because inclusion of such shares would be anti-dilutive having the effect of decreasing the loss per share of common stock. For the three months ended March 31, 2021, the impact of Series C Mandatory Convertible Preferred Stock calculated under the if-converted method was dilutive, and as such (i) 26.8 million shares of common stock (assuming a conversion ratio based on the average volume weighted average price per share of common stock over each reporting period) were included in the Weighted Average Shares of Common Stock Outstanding - Diluted and (ii) $17.3 million of Series C Mandatory Convertible Preferred dividends were added back to Net Income (Loss) Available to KKR & Co. Inc. Common Stockholders - Diluted.

(2) For the three months ended March 31, 2021, Weighted Average Shares of Common Stock Outstanding – Diluted includes unvested equity awards, including certain equity awards that have met their market price-based vesting condition but have not satisfied their service-based vesting condition, which have been granted under the Equity Incentive Plans. Vesting of these equity awards dilute equityholders of KKR Group Partnership, including KKR & Co. Inc. and KKR Holdings pro rata in accordance with their respective ownership interests in KKR Group Partnership. For the three months ended March 31, 2022, all unvested shares of common stock are excluded from the calculation of Diluted Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Common Stock because inclusion of such unvested shares of common stock would be anti-dilutive having the effect of decreasing the loss per share of common stock.

The adoption of ASU 2020-06 in 2022 did not result in a material impact to the calculation of the Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Common Stock – Diluted. For three months ended March 31, 2021 the Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Common Stock – Diluted was unchanged by the adoption of ASU 2020-06, and there was no impact to previously reported amounts.

KKR Holdings Units

For the three months ended March 31, 2022 and 2021 KKR Holdings units have been excluded from the calculation of Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Common Stock - Diluted since the exchange of these units would not dilute KKR & Co. Inc.'s ownership interests in KKR Group Partnership.


	Three Months Ended March 31,
		2022	2021
Weighted Average KKR Holdings Units		258,726,163	274,748,078

Market Condition Awards

For the three months ended March 31, 2022 and 2021, 17.0 million and 15.3 million, respectively, of unvested equity awards that are subject to market price based and service-based vesting conditions were excluded from the calculation of Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Common Stock - Diluted since the market price based vesting condition was not satisfied. See Note 19 "Equity Based Compensation."

15. OTHER ASSETS AND ACCRUED EXPENSES AND OTHER LIABILITIES

Other Assets consist of the following:


	March 31, 2022		December 31, 2021
Asset Management
Unsettled Investment Sales (1)	$	200,402	$	182,267
Receivables	82,966		81,133
Due from Broker (2)	28,899		365,053
Deferred Tax Assets, net (See Note 18)	95,533		85,770
Interest Receivable	147,124		144,221
Fixed Assets, net (3)	819,069		820,143
Foreign Exchange Contracts and Options (4)	367,079		590,637

Goodwill (5)	83,500		83,500
Derivative Assets	5,294		491

Prepaid Taxes	65,692		93,296
Prepaid Expenses	37,127		29,290
Operating Lease Right of Use Assets (6)	220,458		228,363
Deferred Financing Costs	15,989		17,953

Other	238,582		164,196
Total Asset Management	$	2,407,714	$	2,886,313
Insurance
Unsettled Investment Sales(1)	$	1,613,094	$	941,427
Deferred Tax Assets, net	1,536,986		755,876
Derivative Assets	1,024,589		1,295,950
Accrued Investment Income	898,120		817,486
Goodwill (8)	501,496		501,496
Intangible Assets and Deferred Sales Inducements(7)	289,412		293,824
Operating Lease Right of Use Assets(6)	171,344		160,888
Premiums and Other Account Receivables	117,997		86,524
Other	96,576		96,093
Current Income Tax Recoverable	53,161		103,954
Total Insurance	$	6,302,775	$	5,053,518

Total Other Assets	$	8,710,489	$	7,939,831

(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)Net of accumulated depreciation and amortization of $153.5 million and $141.6 million as of March 31, 2022 and December 31, 2021, respectively. Depreciation and amortization expense of $12.7 million and $11.0 million for the three months ended March 31, 2022 and 2021, respectively, are included in General, Administrative and Other in the accompanying consolidated statements of operations.

(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 5 "Net Gains (Losses) from Investment Activities - Asset Management" for the net changes in fair value associated with these instruments.

(5)As of March 31, 2022, the carrying value of goodwill is recorded and assessed for impairment at the reporting unit.

(6)For Asset Management, non-cancelable operating leases consist of leases for office space in North America, Europe, Asia and Australia. KKR is the lessee under the terms of the operating leases. The operating lease cost was $12.2 million and $11.5 million for the three months ended March 31, 2022 and 2021, respectively. For Insurance, non-cancelable operating leases consist of leases for office space and land in the U.S. For the three months ended March 31, 2022 and 2021, the operating lease cost was $5.9 million and $2.6 million, respectively. Insurance lease right-of-use assets are reported net of $22.2 million and $22.7 million in deferred rent and lease incentives as of March 31, 2022 and December 31, 2021, respectively. The weighted average remaining lease term was 26.9 years and 27.9 years as of March 31, 2022 and December 31, 2021, respectively.

(7)The definite life intangible assets are amortized by using the straight-line method over the useful life of the assets which is an average of 16 years. The indefinite life intangible assets are not subject to amortization. The amortization expense of definite life intangible assets was $4.4 million and $2.5 million for the three months ended March 31, 2022 and 2021, respectively.

(8)The amounts include approximately $4.5 million of goodwill related to an immaterial acquisition of a residential mortgage platform, which Global Atlantic acquired in October 2021 for a purchase price consideration of $4.6 million.

Accrued Expenses and Other Liabilities consist of the following:


	March 31, 2022		December 31, 2021
Asset Management
Amounts Payable to Carry Pool (1)	$	3,138,465	$	3,650,312
Unsettled Investment Purchases (2)	1,138,357		1,315,163
Securities Sold Short (3)	136,128		249,383
Derivative Liabilities	28,077		45,003
Accrued Compensation and Benefits	438,550		210,789
Interest Payable	161,358		162,801
Foreign Exchange Contracts and Options (4)	239,875		319,511
Accounts Payable and Accrued Expenses	170,398		187,564
Taxes Payable	104,796		42,745
Uncertain Tax Positions	54,975		78,226
Unfunded Revolver Commitments	64,556		64,276
Operating Lease Liabilities (5)	223,652		230,995


Deferred Tax Liabilities, net (See Note 18)	791,575		900,436
Other Liabilities	551,024		439,693
Total Asset Management	$	7,241,786	$	7,896,897

Insurance
Unsettled Investment Purchases(2)	$	1,138,365	$	395,722
Collateral on Derivative Instruments	894,687		1,086,061
Accrued Expenses	753,160		747,237
Securities Sold Under Agreements to Repurchase	810,535		300,446
Derivative Liabilities	462,202		145,163
Accrued Employee Related Expenses	248,861		280,668
Operating Lease Liabilities(5)	190,855		180,574
Tax Payable to Former Parent Company	64,886		74,423
Interest Payable	32,353		12,930
Accounts and Commissions Payable	15,196		26,054
Other Tax Related Liabilities	4,741		14,288

Total Insurance	$	4,615,841	$	3,263,566

Total Accrued Expenses and Other Liabilities	$	11,857,627	$	11,160,463

(1)Represents the amount of carried interest payable to current and former KKR employees arising from KKR's investment 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 5 "Net Gains (Losses) from Investment Activities - Asset Management" for the net changes in fair value associated with these instruments.

(5)For Asset Management, operating leases have remaining lease terms that range from approximately 1 year to 14 years, some of which include options to extend the leases for up to 3 years. The weighted average remaining lease terms were 9.4 years and 9.5 years as of March 31, 2022 and December 31, 2021, respectively. The weighted average discount rates were 1.2% and 1.2% as of March 31, 2022 and December 31, 2021, respectively. For Insurance, operating leases for office space have remaining lease terms that range from approximately 1 year to 12 years, some of which include options to extend the leases for up to 10 years. The weighted average remaining lease terms was 7.6 years and 7.8 years as of March 31, 2022 and December 31, 2021, respectively. The weighted average discount rate was 2.9% as of both March 31, 2022 and December 31, 2021.

16. VARIABLE INTEREST ENTITIES

Consolidated VIEs

KKR consolidates certain variable interest entities ("VIEs") in which it is determined that KKR is the primary beneficiary. The consolidated VIEs are predominately CLOs and certain investment funds sponsored by KKR. 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 income. KKR's investment strategies differ for these VIEs; however, the fundamental risks have similar characteristics, including loss of invested capital and loss of management and performance income. 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. Furthermore, KKR consolidates certain VIEs, which are formed by Global Atlantic to hold investments, including investments in transportation, renewable energy, consumer and other loans and fixed maturity securities.

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 as well as certain investment partnerships where Global Atlantic retains an economic interest. 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 income. 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, 2022, KKR's commitments to these unconsolidated investment funds were $4.9 billion. KKR has not provided any financial support other than its obligated amount as of March 31, 2022. Additionally, Global Atlantic also has unfunded commitments of $23.7 million in relation to other limited partnership interests as of March 31, 2022.

As of March 31, 2022 and December 31, 2021, 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, 2022		December 31, 2021
Investments - Asset Management	$	10,254,226	$	11,539,945
Due from (to) Affiliates, net	1,027,639		1,046,210
Maximum Exposure to Loss - Asset Management	$	11,281,865	$	12,586,155

Other Investment in Partnership - Insurance	$	204,984	$	190,106
Investment in Renewable Partnerships - Insurance	30,194		30,760
Maximum Exposure to Loss- Insurance	$	235,178	$	220,866

Total Maximum Exposure to Loss	$	11,517,043	$	12,807,021

17. DEBT OBLIGATIONS

Asset Management Debt Obligations

In Asset Management, 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, a KKR subsidiary ("KFN"), which are non-recourse to KKR beyond the assets of KFN.

Certain of KKR's consolidated investment funds have entered into financing arrangements with financial institutions, generally to provide liquidity to such investment funds. These financing arrangements are generally not direct obligations of the general partners of KKR's investment funds (beyond KKR's capital interest) or its management companies. Such borrowings have varying maturities and bear interest at floating rates. Borrowings are generally secured by the investment purchased with the proceeds of the borrowing and/or the uncalled capital commitment of each respective fund. When an investment vehicle borrows, the proceeds are available only for use by that investment vehicle and are not available for the benefit of other investment vehicles or KKR. Collateral within each investment vehicle is also available only against borrowings by that investment vehicle and not against the borrowings of other investment vehicles or KKR.

In certain other cases, investments and other assets held directly by majority-owned consolidated investment vehicles have been funded with borrowings that are collateralized by the investments and assets they own. These borrowings are non-recourse to KKR beyond the investments or assets serving as collateral or the capital that KKR has committed to fund such investment vehicles. Such borrowings have varying maturities and generally bear interest at fixed rates.

In addition, consolidated CFEs issue debt securities to third-party investors which are collateralized by assets held by the CFE. 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 Asset Management debt obligations consisted of the following:


		March 31, 2022						December 31, 2021
		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		728,493		—		—		728,799		—		—
KCM 364-Day Revolving Credit Agreement		750,000		—		—		750,000		—		—
Notes Issued: (1)
KKR ¥25 billion (or $205.0 million) 0.509% Notes Due 2023	(4)	—		204,706		204,479		—		216,881		216,818
KKR ¥5 billion (or $41.0 million) 0.764% Notes Due 2025	(4)	—		40,661		40,881		—		43,082		43,452
KKR €650 million (or $723.8 million) 1.625% Notes Due 2029	(5)	—		717,092		703,183		—		729,048		776,926
KKR $750 million 3.750% Notes Due 2029	(4)	—		743,555		766,035		—		743,333		825,540
KKR ¥10.3 billion (or $84.5 million) 1.595% Notes Due 2038	(4)	—		83,473		83,191		—		88,505		92,198
KKR $500 million 5.500% Notes Due 2043 (6)	(4)	—		491,451		567,543		—		491,153		661,351
KKR $1 billion 5.125% Notes Due 2044 (6)	(4)	—		956,647		1,074,160		—		951,462		1,237,888
KKR $500 million 3.625% Notes Due 2050	(4)	—		492,553		447,275		—		492,486		535,550
KKR $750 million 3.500% Notes Due 2050 (6)	(4)	—		736,056		658,983		—		735,905		784,650
KKR $750 million 3.250% Notes Due 2051	(4)	—		739,569		629,693		—		739,481		747,900
KKR $500 million 4.625% Notes Due 2061	(5)	—		486,133		439,000		—		486,044		523,200
KFN $500 million 5.500% Notes Due 2032	(2)	—		495,147		466,871		—		495,025		487,779
KFN $120 million 5.200% Notes Due 2033	(2)	—		118,683		108,766		—		118,654		115,535
KFN $70 million 5.400% Notes Due 2033	(2)	—		68,980		64,437		—		68,957		68,532
KFN Issued Junior Subordinated Notes (3)	(2)	—		236,467		186,989		—		236,138		178,335
		2,478,493		6,611,173		6,441,486		2,478,799		6,636,154		7,295,654

Other Debt Obligations(6)		5,685,293		29,501,699		29,501,699		4,941,755		30,033,601		30,033,601



		$	8,163,786	$	36,112,872	$	35,943,185	$	7,420,554	$	36,669,755	$	37,329,255

(1)Borrowing outstanding includes: (i) unamortized note discount (net of premium), as applicable and (ii) unamortized debt issuance costs, as applicable. Financing costs related to the issuance of the notes have been deducted from the note liability and are being amortized over the life of the notes.

(2)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.

(3)KKR consolidates KFN and reports KFN's outstanding $258.5 million aggregate principal amount of junior subordinated notes. The weighted average interest rate is 2.6% and 2.6% and the weighted average years to maturity is 14.5 years and 14.8 years as of March 31, 2022 and December 31, 2021, respectively.

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

(5)The notes are classified as Level I within the fair value hierarchy and fair value is determined by quoted prices in active markets since the debt is publicly listed.

(6)As of March 31, 2022 and December 31, 2021, the borrowing outstanding reflects the elimination for the portion of these debt obligations that are held by Global Atlantic.

Asset Management Revolving Credit Facilities

KCM Short-Term Credit Agreement

On April 8, 2022, KKR Capital Markets Holdings L.P. and certain other capital markets subsidiaries (the "KCM Borrowers") entered into a 364-day revolving credit agreement (the "KCM Short-Term Credit Agreement”) with Mizuho Bank, Ltd., as administrative agent, and one or more lenders party thereto. The KCM Short-Term Credit Agreement replaces the prior 364-day revolving credit agreement, dated as of April 9, 2021, between the KCM Borrowers and the administrative agent, and one or more lenders party to the KCM Short-Term Agreement, which was terminated according to its terms on April 8, 2022. The KCM Short-Term Credit Agreement provides for revolving borrowings up to $750 million, expires on April 7, 2023, and ranks pari passu with the existing $750 million revolving credit facility provided by them for KKR's capital markets business (the "KCM Credit Agreement").

If a borrowing is made under the KCM Short-Term Credit Agreement, the interest rate will vary depending on the type of drawdown requested. If the borrowing is (i) denominated in U.S. dollars and a term rate, it will be based on the term Secured Overnight Financing Rate (SOFR), (ii) denominated in euros, it will be based on EURIBOR and (iii) denominated in pounds sterling, it will be based on the Sterling Overnight Interbank Average Rate (SONIA), in each case, plus the applicable margin which ranges initially between 1.50% and 2.75%, depending on the duration of the loan. If the borrowing is an ABR Loan, it will be based on the greater of (i) the federal funds rate plus 0.50% and (ii) term SOFR for one-month tenor plus 1.00%, in each case, plus the applicable margin which ranges initially between 0.50% and 1.75% depending on the amount and nature of the loan. Borrowings under the KCM Short-Term Credit Agreement may only be used to facilitate the settlement of debt transactions syndicated by KKR's capital markets business. Obligations under the KCM Short-Term Credit Agreement are limited to the KCM Borrowers, which are solely entities involved in KKR's capital markets business, and liabilities under the KCM Short-Term Credit Agreement are non-recourse to other parts of KKR.

The KCM Short-Term Credit Agreement contains customary representations and warranties, events of default, and affirmative and negative covenants, including a financial covenant providing for a maximum debt to equity ratio for the KCM Borrowers. The KCM Borrowers' obligations under the KCM Short-Term Credit Agreement are secured by certain assets of the KCM Borrowers, including a pledge of equity interests of certain subsidiaries of the KCM Borrowers.

Other Asset Management Debt Obligations

As of March 31, 2022, other debt obligations consisted of the following:


	Financing Available		Borrowing Outstanding		Fair Value		Weighted Average Interest Rate	Weighted Average Remaining Maturity in Years
Financing Facilities of Consolidated Funds and Other (1)	$	5,685,293	$	8,288,493	$	8,288,493	3.5%	4.4
Debt Obligations of Consolidated CLOs	—		21,213,206		21,213,206		(2)	10.5
	$	5,685,293	$	29,501,699	$	29,501,699

(1)Includes borrowings collateralized by fund investments, fund co-investments and other assets held by levered investment vehicles of $2.0 billion.

(2)The senior notes of the consolidated CLOs had a weighted average interest rate of 1.9%. The subordinated notes of the consolidated CLOs 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 CLOs are collateralized by assets held by each respective CLO vehicle and assets of one CLO vehicle may not be used to satisfy the liabilities of another. As of March 31, 2022, the fair value of the consolidated CLO assets was $23.0 billion. This collateral consisted of Cash and Cash Equivalents, Investments, and Other Assets.

Insurance Debt Obligations

Global Atlantic's debt obligations consisted of the following:


	March 31, 2022						December 31, 2021
	Financing Available		Borrowing Outstanding		Fair Value(2)		Financing Available		Borrowing Outstanding		Fair Value(2)
Revolving Credit Facilities:
Global Atlantic revolving credit facility, due August 2026	$	800,000	$	200,000	$	200,000	$	1,000,000	$	—	$	—
Notes Issued and Others:
Global Atlantic senior notes, due October 2029			500,000		500,100				500,000		539,350
Global Atlantic senior notes, due June 2031			650,000		582,660				650,000		644,800
Global Atlantic subordinated debentures, due October 2051			750,000		710,625				750,000		761,475
			2,100,000		$	1,993,385			1,900,000		$	1,945,625
Purchase accounting adjustments(1)			45,618						51,050
Debt issuance costs, net of accumulated amortization			(18,413)						(18,675)
Fair value loss (gain) of hedged debt obligations, recognized in earnings			(97,436)						(24,369)
			$	2,029,769					$	1,908,006

(1)The amortization of the purchase accounting adjustments was $5.4 million and $2.0 million for the three months ended March 31, 2022 and 2021, respectively.

(2)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.

Debt Covenants

Borrowings of KKR (including Global Atlantic) 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, 2022. KKR (including Global Atlantic) was in compliance with such debt covenants in all material respects as of March 31, 2022.

18. INCOME TAXES

KKR & Co. Inc. is a domestic corporation for U.S. federal income tax purposes and is subject to U.S. federal, state and local income taxes at the entity level on its share of taxable income. In addition, KKR Group Partnership and certain of its subsidiaries operate as partnerships for U.S. federal tax purposes but as taxable entities for certain state, local or non-U.S. tax purposes. Moreover, certain corporate subsidiaries of KKR, including certain Global Atlantic subsidiaries, are domestic corporations for U.S. federal income tax purposes and are subject to U.S. federal, state, and local income taxes. Income taxes reported in these consolidated financial statements include the taxes described in this paragraph.

The effective tax rates were (0.3)% and 10.1% for the three months ended March 31, 2022 and 2021. The effective tax rate differs from the statutory rate primarily because 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's principals or by third parties.

Future realization of deferred tax assets is dependent on KKR generating sufficient taxable income before the tax benefits are expected to expire. KKR considers projections of taxable income in evaluating its ability to utilize those deferred tax assets. In projecting its taxable income, KKR begins with historical results and incorporates assumptions concerning the amount and timing of future pretax operating income. Those assumptions require significant judgment and are consistent with the plans and estimates that KKR uses to manage its business. As of March 31, 2022, $22.2 million of deferred tax assets are not considered to be more likely than not to be realized prior to the expiration of the related loss carryforwards. For that portion of the total deferred tax asset, a valuation allowance has been recorded.

During the three months ended March 31, 2022, there was a decrease of $21.2 million to KKR’s uncertain tax positions primarily due to the settlement of state tax audits conducted for the years ended 2010 through 2014.

19. EQUITY BASED COMPENSATION

Asset Management

KKR Equity Incentive Plan Awards

For the three months ended March 31, 2022 and 2021 KKR recorded equity based compensation expense of $115.1 million and $64.5 million, respectively. For the three months ended March 31, 2022 and 2021, $2.1 million and $0.2 million of equity based compensation related to our insurance business, respectively.

Under KKR's Equity Incentive Plans, KKR is permitted to grant equity awards representing ownership interests in KKR & Co. Inc. common stock. On March 29, 2019, the 2019 Equity Incentive Plan became effective. Following the effectiveness of the 2019 Equity Incentive Plan, KKR no longer makes further grants under the 2010 Equity Incentive Plan, and the 2019 Equity Incentive Plan became KKR's only plan for providing new equity-based awards by KKR & Co. Inc. 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. The total number of equity awards representing shares of common stock that may be issued under the 2019 Equity Incentive Plan is equivalent to 15% of the aggregate number of the shares of 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. As of March 31, 2022, 72,237,327 shares may be issued under the 2019 Equity Incentive Plan. Equity awards granted pursuant to the Equity Plans generally consist of (i) restricted stock units ("RSUs") that convert to shares of common stock of KKR & Co. Inc. (or cash equivalent) upon vesting and (ii) restricted holdings units ("RHUs") through KKR Holdings II L.P. that are exchangeable into shares of common stock of KKR & Co. Inc. upon vesting and certain other conditions. 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 KKR Group Partnership.

Service-Vesting Awards

Under the Equity Incentive Plans, KKR grants RSUs and RHUs that are subject to service-based vesting, typically over a three to five-year period from the date of grant (referred to hereafter as "Service-Vesting Awards"). In certain cases, these Service-Vesting Awards may have a percentage of the award that vests immediately upon grant. Additionally, some but not all Service-Vesting 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, some but not all of these awards are also subject to minimum retained ownership rules requiring the award recipient to continuously hold shares of common stock equivalents equal to at least 15% of their cumulatively vested awards that have or had the minimum retained ownership requirement. Holders of the Service-Vesting Awards do not participate in dividends until such awards have met their vesting requirements.

Expense associated with the vesting of these Service-Vesting Awards is based on the closing price of KKR & Co. Inc. common stock on the date of grant, discounted for the lack of participation rights in the expected dividends on unvested equity awards. 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.

As of March 31, 2022, there was approximately $576.0 million of total estimated unrecognized expense related to unvested Service-Vesting Awards, which is expected to be recognized over the weighted average remaining requisite service period of 1.7 years.

A summary of the status of unvested Service-Vesting Awards granted under the Equity Incentive Plans from January 1, 2022 through March 31, 2022 is presented below:


	Shares	Weighted Average Grant Date Fair Value
Balance, January 1, 2022	19,307,041	$	41.21
Granted	442,156	65.26
Vested	(22,436)	29.05
Forfeitures	(101,404)	35.66
Balance, March 31, 2022	19,625,357	$	41.79

Market Condition Awards

Under the Equity Incentive Plans, KKR also grants RSUs and RHUs that are subject to both a service-based vesting condition and a market price based vesting condition (referred to hereafter as "Market Condition Awards") for certain employees (other than the Co-CEO Awards discussed below). The number of Market Condition Awards that will vest depend upon (i) the market price of KKR common stock reaching certain price targets that range from $45.00 to $140.00 and (ii) the employee being employed by KKR on a certain date, which typically is five and a half years from the date of grant (with exceptions for involuntary termination without cause, death and permanent disability). The market price vesting condition is met when the average closing price of KKR common stock during 20 consecutive trading days meets or exceeds the stock price targets. Holders of the Market Condition Awards do not participate in dividends until such awards have met both their service-based and market price based vesting requirements. Additionally, these awards are subject to additional transfer restrictions and minimum retained ownership requirements after vesting.

Due to the existence of the service requirement, the vesting period for these Market Condition Awards is explicit, and as such, compensation expense will be recognized on (i) a straight-line basis over the period from the date of grant through the date the award recipient is required to be employed by KKR and (ii) assumes a forfeiture rate of up to 7% annually based upon expected turnover. The fair value of the awards granted are based on a Monte-Carlo simulation valuation model. 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 all of their vesting requirements.

Below is a summary of the grant date fair value based on the Monte Carlo simulation valuation model and the significant assumptions used to estimate the grant date fair value of these Market Condition Awards:


	Weighted Average	Range
Grant Date Fair Value	$25.70	$19.87 - $66.80
Closing KKR share price as of valuation date	$42.99	$37.93 - $76.31
Risk Free Rate	0.53%	0.41% - 1.40%
Volatility	28.07%	28.00% - 30.00%
Dividend Yield	1.41%	0.76% - 1.53%
Expected Cost of Equity	10.59%	9.13% - 10.76%

As of March 31, 2022, there was approximately $374.7 million of total estimated unrecognized expense related to these unvested Market Condition Awards, which is expected to be recognized over the weighted average remaining requisite service period of 4.2 years.

A summary of the status of unvested Market Condition Awards granted under the Equity Incentive Plans from January 1, 2022 through March 31, 2022 is presented below:


	Shares	Weighted Average Grant Date Fair Value
Balance, January 1, 2022	21,370,847	$	25.03
Granted	350,000	66.80
Vested	—	—
Forfeitures	—	—
Balance, March 31, 2022	21,720,847	$	25.70

As of March 31, 2022, 19.7 million of these Market Condition awards have met their market price based vesting condition.

Co-CEO Awards

On December 9, 2021, the Board of Directors approved grants of 7.5 million RHUs to each of KKR’s Co-Chief Executive Officers that are subject to both a service-based vesting condition and a market price based vesting condition (referred to hereafter as "Co-CEOs Awards"). For both Co-Chief Executive Officers, 20% of the Co-CEOs Awards are eligible to vest at each of the following KKR common stock prices targets: $95.80, $105.80, $115.80, $125.80 and $135.80. The market price based vesting condition is met when the average closing price of KKR common stock during 20 consecutive trading days meets or exceeds the stock price targets. In addition to the market price based vesting conditions, in order for the Co-CEOs Awards to vest, the Co-Chief Executive Officer is required to be employed by KKR on December 31, 2026 (with exceptions for involuntary termination without cause, death and permanent disability).

These awards will be automatically canceled and forfeited upon the earlier of the Co-Chief Executive Officer’s termination of service (except for involuntary termination without cause, death or permanent disability) or the failure to meet the market price based vesting condition by December 31, 2028 (for which continued service is required if the market price vesting condition is met after December 31, 2026). Co-CEO Awards do not participate in dividends until such awards have met both their service-based and market price based vesting requirements. Additionally, these awards are subject to additional transfer restrictions and minimum retained ownership requirements after vesting.

Due to the existence of the service requirement, the vesting period for these Co-CEO Awards is explicit, and as such, compensation expense will be recognized on a straight-line basis over the period from the date of grant through December 31, 2026 given the derived service period is less than the explicit service period. The fair value of the awards granted are based on a Monte-Carlo simulation valuation model. In addition, the grant date fair value assumes that these Co-CEO Awards will not participate in dividends until such awards have met all of their vesting requirements.

Below is a summary of the grant date fair value based on the Monte Carlo simulation valuation model and the significant assumptions used to estimate the grant date fair value of these Co-CEO Awards:


Grant Date Fair Value						$48.91
Closing KKR share price as of valuation date						$75.76
Risk Free Rate						1.42%
Volatility						28.0%
Dividend Yield						0.77%
Expected Cost of Equity						9.36%

As of March 31, 2022, there was approximately $689.2 million of total estimated unrecognized expense related to these unvested Co-CEO Awards, which is expected to be recognized ratably from April 1, 2022 to December 31, 2026. As of March 31, 2022, none of these Co-CEO awards have met their market price based vesting condition.

KKR Holdings Awards

For the three months ended March 31, 2022 and 2021, KKR recorded equity based compensation expense of $19.8 million and $16.4 million, respectively.

KKR Holdings units are exchangeable for KKR Group Partnership Units and allow for their exchange into common stock of KKR & Co. Inc. on a one-for-one basis. As of March 31, 2022 and 2021, KKR Holdings owned approximately 30.4% or 258,726,163 units and 32.1% or 273,367,712 units, respectively, of outstanding KKR Group Partnership Units. In the past, awards of KKR Holdings units generally had service-based vesting, typically over a three to five-year period from the date of grant, although some historical awards had a percentage of the award vested immediately upon grant. These awards also generally had transfer restrictions which last or had lasted 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. 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. As of March 31, 2022, all of the KKR Holdings units (except for less than 0.5% of the outstanding KKR Holdings units) have been granted, and certain Holdings units remain subject to vesting. All of these KKR Holdings units represent KKR Group Partnership units that are already outstanding, and therefore their vesting and allocations as described above do not represent any incremental dilution to KKR.

On October 8, 2021, as part of the transactions contemplated by the Reorganization, of the 3.3 million outstanding KKR Holdings units that remained unallocated as of September 30, 2021, KKR Holdings allocated 1,150,000 KKR Holdings units to each of KKR’s Co-CEOs, of which 70% vested immediately, on October 8, 2021, and the remaining 30% are subject to forfeiture if such Co-CEO is not employed by KKR on October 1, 2022 (except in the case of death or permanent disability). These KKR Holdings units (or shares of common stock to be received in respect thereof) are subject to customary one- and two-year transfer restrictions that will apply, as applicable, until October 1, 2023 and October 1, 2024. In addition, the legal vesting and delivery of certain awards of KKR Holdings units held by Messrs. Kravis, Roberts, Bae and Nuttall will be accelerated as part of the transactions contemplated by the Reorganization Agreement.

The fair value of awards granted out of KKR Holdings is generally based on the closing price of KKR & Co. Inc. 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. 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. 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. common stock on a one-for-one basis.

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, 2022, there was approximately $40.0 million of estimated unrecognized expense, which is expected to be recognized ratably from April 1, 2022 to October 1, 2022.

A summary of the status of unvested awards granted under the KKR Holdings Plan from January 1, 2022 through March 31, 2022 is presented below:


	Units	Weighted Average Grant Date Fair Value
Balance, January 1, 2022	4,600,000	$	21.88
Granted	—	—
Vested	—	—
Forfeitures	—	—
Balance, March 31, 2022	4,600,000	$	21.88

Insurance

Global Atlantic recognized $20.6 million and $7.4 million of expense related equity-based compensation and long-term incentive awards for the three months ended March 31, 2022 and 2021, respectively.

No equity-based compensation costs were capitalized during the three months ended March 31, 2022 and 2021, respectively.

Equity Classified Awards - KKR Equity Incentive Plan Awards

On February 1, 2021, in connection with the GA Acquisition, employees of Global Atlantic were awarded a one-time grant of RSUs under the 2019 Equity Incentive Plan. These awards (i) are subject to service-based vesting conditions and (ii) expense associated with the vesting of these awards is based on the closing price of KKR & Co. Inc. common stock on the date of grant, consistent with other awards granted under the 2019 Equity Incentive Plan as described above.

On July 1, 2021, a grant of a Market Condition Award was made under the 2019 Equity Incentive Plan. This award is subject to meeting certain market price based vesting conditions of KKR common stock but has no service vesting condition. Expense associated with the grant date fair value of this award of $10.5 million was fully recognized in the three months ended September 30, 2021.

Global Atlantic recognized $2.1 million and $0.2 million of total equity-based compensation expense for the three months ended March 31, 2022 and 2021 associated with these awards, respectively.

Liability Classified Awards - Book Value Awards

On February 1, 2021, Global Atlantic adopted the Global Atlantic Financial Company Book Value Award Plan ("GA Book Value Plan") to enhance the ability of Global Atlantic to attract, motivate and retain its employees and to promote the success of the Global Atlantic business.

The GA Book Value Plan authorizes the grant of cash-settled awards ("book value awards") representing the right to receive one or more payments upon vesting equal to the product of an initial dollar value set by the award multiplied by a pre-determined formula as of each applicable vesting date. The predetermined formula is equal to the quotient determined by dividing the book value of one share of TGAFG on the applicable vesting date by the book value of a share on the original grant date, subject to adjustments. Book value awards generally vest in three equal, annual installments, subject to continued employment.

On February 1, 2021, under the terms of the GA Merger Agreement and in accordance with applicable plan documentation, former Global Atlantic restricted share awards that were unvested immediately prior to the closing of the GA Acquisition converted into the right to receive a number of book value awards under the GA Book Value Plan having the same value and the same vesting schedule as the former Global Atlantic restricted share awards immediately prior to the closing of the GA Acquisition.

An aggregate of 3,020,017 unvested former Global Atlantic restricted share awards having a fair value of $29.47 per share were converted to book value awards at an aggregate grant-date value of $89.0 million. On February 28, 2021, book value awards having an aggregate value of approximately $28.0 million vested as set forth in the former Global Atlantic grant agreements and resulted in a cash payment of $17.0 million to participants, net of applicable tax withholding.

Also in connection with the GA Acquisition, on February 1, 2021, Global Atlantic employees were issued a one-time grant of book value awards having an aggregate initial value of $23.0 million. These one-time book value awards vest over five (5) years, with the first 25% vesting on April 1, 2023 and the remainder vesting 25% annually on April 1 each subsequent year until fully vested, subject to continued employment. Global Atlantic is recording compensation expense over the vesting schedule of the awards, net of an estimated forfeiture rate of 4%.

On March 1, 2021, pursuant to the GA Book Value Plan, book value awards having an aggregate initial value of approximately $32 million were granted. Such book value awards generally vest annually over three years in equal increments, subject to continued employment. Global Atlantic is recording compensation expense over the vesting schedule of the awards, net of an estimated forfeiture rate of 4%.

Global Atlantic began recognizing long-term incentive expense for the book value awards described above at the grant dates, based on their initial value, net of a 4% estimated forfeiture rate. Global Atlantic adjusts expense periodically for changes in book value until the awards are settled or forfeited. Expense recognized on forfeited awards is reversed in the period of forfeiture. The table below presents the activity related to book value awards for the three months ended March 31, 2022 and 2021:


	Three Months Ended March 31,
	2022		2021
Outstanding amount as of beginning of period	$	145,000	$	—
Pre-acquisition awards converted to book-value awards on February 1, 2021	—		89,000
Granted	20,205		53,969
Forfeited	(874)		(957)

Vested and issued	(39,029)		(30,280)

Outstanding amount as of end of period	$	125,302	$	111,732

Global Atlantic recognized $18.5 million and $7.2 million of compensation expense for the three months ended March 31, 2022 and 2021 associated with these awards, respectively. As of March 31, 2022 and December 31, 2021, the remaining unamortized compensation expenses of $108.1 million and $99.6 million are expected to be recognized over a remaining average period of 2.65 years and 2.67 years, respectively.

GA Equity Incentive Plan Awards

On June 24, 2021, Global Atlantic issued 1,000 non-voting incentive shares to a Bermuda exempted partnership owned by certain Global Atlantic employees, who are eligible to receive incentive units under Global Atlantic's Senior Management Equity Incentive Plan ("GA Equity Incentive Plan"). These incentive units represent an interest in the receipt of certain amounts based on Global Atlantic's book value, market value, and AUM, in each case as derived in part from the value of TGAFG’s fully-diluted equity shares.

On June 24, 2021, Global Atlantic granted approximately 808 incentive units under the GA Equity Incentive Plan. The book value component of the incentive units vests 20% per year on the anniversary of the GA Acquisition Date, as long as the grantee remains then employed, and will be settled in cash. The market value and AUM components of the incentive units cliff vest upon the earlier to occur of (i) the fifth anniversary of the GA Acquisition Date, or (ii) a change of control, and will be settled in a variable number of TGAFG’s non-voting common shares. TGAFG shares issued under the AUM component of the Plan are exchangeable for shares of KKR. Except in the event of termination due to death or disability, generally, unvested market value and AUM amounts are forfeited upon a termination of employment.

The GA Equity Incentive Plan is accounted for as a hybrid compensation plan, consisting of one component most closely aligned with a profit-sharing plan under ASC 710, Compensation - General, as well as other components within scope of ASC 718, Compensation - Stock Compensation, in all cases with obligations liability-classified. Accordingly, with regard to awards within scope of ASC 710, Global Atlantic records expense based on payouts deemed to be probable and reasonably estimable based on the book value growth of Global Atlantic at the grant date and at each reporting period. For award components subject to liability-classification under ASC 718, Global Atlantic records expense, net of a 0% estimated forfeiture rate, based on the fair value of awards granted, with periodic adjustments to expense for changes in fair value, over the requisite 5-year service period.

The aggregate value of the GA Equity Incentive Plan awards at the initial date of grant was $197 million, based on the intrinsic value of the book value component at the date of grant ($5 million) and the fair value of the market value and AUM components at the date of grant ($192 million, collectively), based on the projected growth in value of each component over the 5-year vesting schedule and applying a forfeiture rate of 0%. Expense will be remeasured at each reporting period and adjusted as needed until the awards are forfeited or settled.

During the three months ended March 31, 2022, no incentive units were granted to employees and approximately 8 incentive units were forfeited. As of March 31, 2022 and December 31, 2021, there were approximately 823 and 831 incentive units outstanding under the Plan, respectively.

Global Atlantic recorded compensation expense of $17.3 million for the three months ended March 31, 2022 related to the GA Units granted under the GA Equity Incentive Plan, with a corresponding offset to other liabilities. As of March 31, 2022 and December 31, 2021, there was approximately $97.8 million and $104.1 million of unrecognized expense related to the GA Units granted under the GA Equity Incentive Plan with a weighted average service period remaining of 3.84 years and 4.09 years, respectively.

20. RELATED PARTY TRANSACTIONS

Due from Affiliates consists of:


	March 31, 2022		December 31, 2021
Amounts due from portfolio companies	$	188,394	$	114,514
Amounts due from unconsolidated investment funds	1,089,180		1,109,769

Due from Affiliates	$	1,277,574	$	1,224,283

Due to Affiliates consists of:


	March 31, 2022		December 31, 2021
Amounts due to KKR Holdings - tax receivable agreement	$	396,127	$	399,163
Amounts due to unconsolidated investment funds	61,541		63,559

Due to Affiliates	$	457,668	$	462,722

21. SEGMENT REPORTING

KKR operates through two reportable segments which are presented below and reflect how its chief operating decision-makers allocate resources and assess performance:

Asset Management - the asset management business offers a broad range of investment management services to investment funds, vehicles and accounts (including Global Atlantic) and provides capital markets services to portfolio companies and third parties. This reportable segment also reflects how its business lines operate collaboratively with predominantly a single expense pool.
Insurance - the insurance business is operated by Global Atlantic, which is a leading U.S. retirement and life insurance company that provides a broad suite of protection, legacy and savings products and reinsurance solutions to clients across individual and institutional markets. Global Atlantic primarily generates income by earning a spread between its investment income and the cost of policyholder benefits.

KKR’s segment profitability measure used to make operating decisions and assess performance across KKR’s reportable segments is presented prior to giving effect to the allocation of income (loss) among KKR & Co. Inc., KKR Holdings and holders of other exchangeable securities, and the consolidation of the investment funds, vehicles and accounts that KKR advises, manages or sponsors (including CFEs). KKR's segment profitability measure excludes: (i) equity-based compensation charges, (ii) amortization of acquired intangibles, (iii) strategic transaction-related charges and (iv) non-recurring items, if any. Strategic transaction-related items arise from corporate actions and consist primarily of (i) impairments, (ii) non-monetary gains or losses on divestitures, (iii) transaction costs from strategic acquisitions, and (iv) depreciation on real estate that KKR owns and occupies. Inter-segment transactions are not eliminated from segment results when management considers those transactions in assessing the results of the respective segments. These transactions include (i) management fees earned by KKR as the investment adviser for Global Atlantic insurance companies and (ii) interest income and expense based on lending arrangements where one or more KKR subsidiaries borrow from a Global Atlantic insurance subsidiary. Inter-segment transactions are recorded by each segment based on the definitive documents that contain arms' length terms and comply with applicable regulatory requirements. Segment operating earnings for the Asset Management and Insurance segments is further defined as follows:

Asset Management Segment Operating Earnings is the profitability measure used to make operating decisions and to assess the performance of the Asset Management segment and is comprised of: (i) Fee Related Earnings, (ii) Realized Performance Income, (iii) Realized Performance Income Compensation, (iv) Realized Investment Income, and (v) Realized Investment Income Compensation. Asset Management Segment Operating Earnings excludes (i) unrealized carried interest, (ii) net unrealized gains (losses) on investments, and (iii) related unrealized performance income compensation. Management fees earned by KKR as the adviser, manager, or sponsor for its investment funds, vehicles and accounts, including its Global Atlantic insurance companies are included in Asset Management Segment Operating Earnings.
Insurance Segment Operating Earnings is the profitability measure used to make operating decisions and to assess the performance of the Insurance segment and is comprised of: (i) Net Investment Income, (ii) Net Cost of Insurance, (iii) General, Administrative, and Other Expenses, (iv) Income Taxes, and (v) Net Income Attributable to Noncontrolling Interests. The non-operating adjustments made to derive Insurance Segment Operating Earnings eliminate the impact of: (i) realized (gains) losses related to asset/liability matching investments strategies, (ii) unrealized investment (gains) losses, (iii) changes in the fair value of derivatives, embedded derivatives, and fair value liabilities for fixed-indexed annuities, indexed universal life contracts and variable annuities, and (iv) the associated income tax effects of all exclusions from Insurance Segment Operating Earnings except for equity-based compensation expense. Insurance Segment Operating Earnings includes (i) realized gains and losses not related to asset/liability matching investments strategies and (ii) the investment management fee expenses that are earned by KKR as the investment adviser of the Global Atlantic insurance companies.

Segment Presentation

The following tables set forth information regarding KKR's segment results:


	Three Months Ended March 31,
	2022		2021
Asset Management
Management Fees (1)	$	624,928	$	439,740
Transaction and Monitoring Fees, Net	306,038		135,677
Fee Related Performance Revenues	12,051		10,296
Fee Related Compensation	(212,220)		(131,785)
Other Operating Expenses	(125,875)		(90,161)
Fee Related Earnings	604,922		363,767
Realized Performance Income	609,207		171,309
Realized Performance Income Compensation	(383,635)		(109,986)
Realized Investment Income (2)	349,354		461,273
Realized Investment Income Compensation	(52,403)		(69,191)
Asset Management Segment Operating Earnings	1,127,445		817,172

Insurance
Net Investment Income (1) (2)	862,414		445,898
Net Cost of Insurance	(493,649)		(250,219)
General, Administrative and Other	(146,002)		(75,489)
Pre-tax Insurance Operating Earnings	222,763		120,190
Income Taxes	(34,106)		(16,626)
Net Income Attributable to Noncontrolling Interest	(72,669)		(40,299)
Insurance Segment Operating Earnings	115,988		63,265

Total Segment Operating Earnings	$	1,243,433	$	880,437

(1) Includes intersegment management fees of $59.0 million and $22.9 million for the three months ended March 31, 2022 and 2021, respectively.
(2) Includes intersegment interest expense and income of $25.8 million for the three months ended March 31, 2022.

	As of
	March 31, 2022		March 31, 2021
Segment Assets:
Asset Management	$	31,921,809	$	28,247,535
Insurance	167,492,964		131,350,085
Total Segment Assets	$	199,414,773	$	159,597,620

	Three Months Ended March 31,
Noncash expenses excluded from Segment Operating Earnings	2022		2021
Equity Based Compensation and Other
Asset Management	$	113,064	$	64,317
Insurance	31,711		7,411
Total Non-cash expenses	$	144,775	$	71,728

Reconciliations of Total Segment Amounts

The following tables reconcile the Segment Revenues, Segment Operating Earnings, and Segment Assets to their equivalent GAAP measure:


	Three Months Ended March 31,
	2022		2021

Total GAAP Revenues	$	1,004,017	$	4,563,006
Impact of Consolidation and Other	213,400		123,448
Asset Management Adjustments:
Capital Allocation-Based Income (GAAP)	945,743		(2,684,647)
Realized Carried Interest	579,767		165,142
Realized Investment Income	349,354		461,273
Capstone Fees	(15,485)		(20,080)
Expense Reimbursements	(41,303)		(27,729)
Insurance Adjustments:
Net Premiums	(372,144)		(1,176,142)
Policy Fees	(318,436)		(201,683)
Other Income	(34,744)		(18,144)
Investment Gains and Losses	167,102		259,168
Derivative Gains and Losses	286,721		220,581
Total Segment Revenues (1)	$	2,763,992	$	1,664,193

(1)Total Segment Revenues is comprised of (i) Management Fees, (ii) Transaction and Monitoring Fees, Net, (iii) Fee Related Performance Revenues, (iv) Realized Performance Income, (v) Realized Investment Income, and (vi) Net Investment Income.


	Three Months Ended March 31,
	2022		2021

Income (Loss) Before Tax (GAAP)	$	1,099,436	$	4,354,106
Impact of Consolidation and Other	(1,232,320)		(1,375,375)
Interest Expense	69,460		57,545
Equity-based compensation - KKR Holdings	19,821		16,434
Asset Management Adjustments:
Unrealized Carried Interest	1,290,033		(2,109,018)
Net Unrealized (Gains) Losses	322,269		(1,316,644)
Unrealized Carried Interest Compensation (Carry Pool)	(513,987)		896,907
Strategic Corporate Transaction-Related Charges	19,898		4,875
Equity-based compensation	55,111		49,761
Equity-based compensation - Performance based	57,953		14,556
Insurance Adjustments:
Net (Gains) Losses from Investments and Derivatives	48,735		289,235
Strategic Corporate Transaction-Related Charges	5,007		4,819
Equity-based and Other Compensation	31,711		7,411
Amortization of Acquired Intangibles	4,412		2,451
Income Taxes	(34,106)		(16,626)
Total Segment Operating Earnings	$	1,243,433	$	880,437


	As of
	March 31, 2022		March 31, 2021
Total GAAP Assets	$	266,290,981	$	216,445,114
Impact of Consolidation and Reclassifications	(63,737,743)		(54,032,166)
Carry Pool Reclassifications	(3,138,465)		(2,815,328)

Total Segment Assets	$	199,414,773	$	159,597,620

22. EQUITY

Stockholders' Equity

Common Stock

The common stock of KKR & Co. Inc. is entitled to vote as provided by its certificate of incorporation, Delaware General Corporation Law and the rules of the NYSE. Subject to preferences that apply to shares of Series C Mandatory Convertible Preferred Stock and any other shares of preferred stock outstanding at the time on which dividends are payable, the holders of common stock are entitled to receive dividends out of funds legally available if the board of directors, in its discretion, determines to declare dividends and then only at the times and in the amounts that the board of directors may determine. The common stock is not entitled to preemptive rights and is not subject to conversion, redemption or sinking fund provisions.

Series I and Series II Preferred Stock

Except for any distribution required by Delaware law to be made upon a dissolution event, the holders of Series I preferred stock and Series II preferred stock do not have any economic rights to receive dividends. Series I preferred stock is entitled to vote on various matters that may be submitted to vote of the stockholders and the other matters as set forth in the certificate of incorporation. For matters on which common stock is entitled to vote, so long as the ratio at which KKR Group Partnership Units are exchangeable for shares of common stock remains on a one-for-one basis, Series II preferred stock will vote together with common stock as a single class and on an equivalent basis, except Series II preferred stock will vote separately as a class on any amendment to the certificate of incorporation that changes certain terms, rights or preferences of Series II preferred stock. Upon a dissolution event, each holder of Series I preferred stock will be entitled to a payment equal to $0.01 per share of Series I preferred stock and each holder of Series II preferred stock will be entitled to a payment equal to $0.000000001 per share of Series II preferred stock.

The Series II preferred stock will become eliminated upon the closing of the merger transactions contemplated by the Reorganization Agreement, subject to the satisfaction of the conditions to closing. The Series I preferred stock will become eliminated upon the closing of the transactions contemplated to occur on the Sunset Date (as defined in the Reorganization Agreement), which is scheduled to occur not later than December 31, 2026, subject to the closing of the prior merger transactions and the satisfaction of any other conditions to closing.

Series C Mandatory Convertible Preferred Stock

On August 14, 2020, KKR & Co. Inc. issued 23,000,000 shares, or $1.15 billion aggregate liquidation preference, of its 6.00% Series C Mandatory Convertible Preferred Stock (the "Series C Mandatory Convertible Preferred Stock").

Unless converted or redeemed earlier in accordance with the terms of the Series C Mandatory Convertible Preferred Stock, each share of Series C Mandatory Convertible Preferred Stock will automatically convert on the mandatory conversion date, which is expected to be September 15, 2023, into between 1.1662 shares and 1.4285 shares of common stock, in each case, subject to customary anti-dilution adjustments described in the certificate of designations related to the Series C Mandatory Convertible Preferred Stock. The number of shares of common stock issuable upon conversion will be determined based on the average volume weighted average price per share of common stock over the 20 consecutive trading day period beginning on, and including, the 21st scheduled trading day immediately prior to September 15, 2023.

Dividends on the Series C Mandatory Convertible Preferred Stock will be payable on a cumulative basis when, as and if declared by our board of directors, or an authorized committee thereof, at an annual rate of 6.00% on the liquidation preference of $50.00 per share of Series C Mandatory Convertible Preferred Stock, and may be paid in cash or, subject to certain limitations, in shares of common stock or, subject to certain limitations, any combination of cash and shares of common stock. If declared, dividends on the Series C Mandatory Convertible Preferred Stock will be payable quarterly on March 15, June 15, September 15 and December 15 of each year to, and including, September 15, 2023, commencing on December 15, 2020.

Upon KKR & Co. Inc.’s voluntary or involuntary liquidation, winding-up or dissolution, each holder of the Series C Mandatory Convertible Preferred Stock would be entitled to receive a liquidation preference in the amount of $50.00 per share of Series C Mandatory Convertible Preferred Stock, plus an amount equal to accumulated and unpaid dividends on such shares, whether or not declared, to, but excluding, the date fixed for liquidation, winding-up or dissolution, to be paid out of KKR & Co. Inc.’s assets legally available for distribution to its stockholders after satisfaction of debt and other liabilities owed to KKR & Co. Inc.’s creditors and holders of shares of its stock ranking senior to the Series C Mandatory Convertible Preferred Stock and before any payment or distribution is made to holders of any stock ranking junior to the Series C Mandatory Convertible Preferred Stock, including, without limitation, common stock.

In connection with the issuance of the Series C Mandatory Convertible Preferred Stock, the limited partnership agreement of KKR Group Partnership was amended to provide for preferred units with economic terms designed to mirror those of the Series C Mandatory Convertible Preferred Stock.

Share Repurchase Program

Under KKR's repurchase program, shares of 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. In addition to the repurchases of common stock, 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 granted pursuant to our Equity Incentive Plans representing the right to receive common stock. 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 or retire any specific number of shares of common stock or equity awards, respectively, and the program may be suspended, extended, modified or discontinued at any time. As of April 29, 2022, the remaining amount available under the repurchase program was approximately $108 million.

The following table presents KKR & Co. Inc. common stock that has been repurchased or equity awards retired under the repurchase program:


	Three Months Ended March 31,
		2022	2021
Shares of common stock repurchased		5,191,174	1,501,558
Equity awards for common stock retired		—	1,325,853

Noncontrolling Interests

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

Noncontrolling Interests in Consolidated Entities and Other

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 current 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;

(v)third parties in KKR's Capital Markets business line;

(vi)holders of other exchangeable securities, which consist of vested restricted holdings units granted under the 2019 Equity Plan that are exchangeable into shares of common stock of KKR & Co. Inc.; and

(vii)third parties in KKR's insurance business including GA Rollover Investors, GA Co-Investors and third party investors in Global Atlantic's consolidated renewable energy entities and certain other entities.

Noncontrolling Interests held by KKR Holdings

Noncontrolling interests held by KKR Holdings consist of economic interests held by principals indirectly in 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 tables present the calculation of total noncontrolling interests:


	Three Months Ended March 31, 2022
	Noncontrolling Interests in Consolidated Entities and Other		Noncontrolling Interests Held by KKR Holdings		Total Noncontrolling Interests
Balance at the beginning of the period	$	32,043,699	$	8,430,866	$	40,474,565
Net income (loss) attributable to noncontrolling interests (1)	1,206,337		(47,152)		1,159,185
Other comprehensive income (loss), net of tax (2)	(1,291,083)		(629,986)		(1,921,069)

Equity-based and other non-cash compensation	63,571		19,821		83,392
Capital contributions	3,579,591		—		3,579,591
Capital distributions	(1,831,897)		(41,976)		(1,873,873)


Balance at the end of the period	$	33,770,218	$	7,731,573	$	41,501,791


	Three Months Ended March 31, 2021
	Noncontrolling Interests in Consolidated Entities and Other		Noncontrolling Interests Held by KKR Holdings		Total Noncontrolling Interests
Balance at the beginning of the period	$	20,570,716	$	6,512,382	$	27,083,098
Net income (loss) attributable to noncontrolling interests (1)	1,241,877		1,003,654		2,245,531
Other comprehensive income (loss), net of tax (2)	(581,154)		(298,234)		(879,388)
Exchange of KKR Holdings Units to Common Stock (3)	—		(56,903)		(56,903)
Equity-based and other non-cash compensation	19,882		16,434		36,316
Capital contributions	4,009,967		25		4,009,992
Capital distributions	(987,066)		(40,768)		(1,027,834)
Impact of Acquisition (4)	190,405		—		190,405
Changes in consolidation	(66,488)		—		(66,488)
Balance at the end of the period	$	24,398,139	$	7,136,590	$	31,534,729

(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. common stock. The exchange agreement with KKR Holdings provides for the exchange of KKR Group Partnership Units held by KKR Holdings for KKR & Co. Inc. common stock.

(4)Represents other noncontrolling interests at the GA Acquisition Date.

Net income (loss) attributable to each of KKR & Co. Inc. common stockholders, KKR Holdings and holders of other exchangeable securities, 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 them. However, primarily because of the (i) contribution of certain expenses borne entirely by KKR Holdings and holders of other exchangeable securities, (ii) the periodic exchange of KKR Holdings units and other exchangeable securities for KR & Co. Inc. 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,
		2022		2021
Net income (loss)		$	1,102,602	$	3,915,367
(-) Net income (loss) attributable to Redeemable Noncontrolling Interests		(63)		—
(-) Net income (loss) attributable to Noncontrolling Interests in consolidated entities and other		1,206,337		1,241,877
(-) Series A and B Preferred Stock Dividends		—		8,341
(-) Series C Mandatory Convertible Preferred Stock Dividends		17,250		17,250
(+) Income tax expense (benefit) attributable to KKR & Co. Inc.		(34,144)		462,930

Net income (loss) attributable to KKR & Co. Inc. Common Stockholders and KKR Holdings		$	(155,066)	$	3,110,829

Net income (loss) attributable to Noncontrolling Interests held by KKR Holdings		$	(47,152)	$	1,003,654

23. REDEEMABLE NONCONTROLLING INTERESTS

Global Atlantic has redeemable non-controlling interests related to renewable energy entities of approximately $81.8 million and $82.5 million as of March 31, 2022 and December 31, 2021 as determined by the hypothetical liquidation book value ("HLBV") method, respectively. The estimated redemption value of redeemable non-controlling interests is calculated as the discounted cash flows subsequent to the expected flip date of the respective renewable energy entity. The flip date represents the date at which the allocation of income and cash flows among the investors in the entity is adjusted, pursuant to the redeemable non-controlling interest investors having achieved an agreed-upon return. The flip date of renewable energy partnerships determines when the redeemable non-controlling interests are eligible to be redeemed. Eligible redemption dates range from 2022 to 2027. For the redeemable non-controlling interests outstanding as of both March 31, 2022 and December 31, 2021, the estimated redemption value that would be due at the respective redemption dates is $5.3 million.

24. COMMITMENTS AND CONTINGENCIES

Funding Commitments and Others

As of March 31, 2022, KKR had unfunded commitments consisting of $11.3 billion to its investment funds and vehicles. KKR has also agreed for certain of its investment vehicles to fund or otherwise be liable for a portion of their investment losses (up to a maximum of approximately $116 million) and/or to provide them with liquidity upon certain termination events (the maximum amount of which is unknown until the scheduled termination date of the investment vehicle).

In addition to these uncalled commitments and funding obligations to KKR's investment funds and vehicles, KKR has entered into contractual commitments primarily with respect to underwriting transactions, debt financing, revolving credit facilities, and syndications in KKR's Capital Markets business line. As of March 31, 2022, these commitments amounted to $1.5 billion. 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. KKR's capital markets business has arrangements with third parties, which reduce its risk when underwriting certain debt transactions, and thus our unfunded commitments as of March 31, 2022 have been reduced to reflect the amount to be funded by such third parties. 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.

Global Atlantic has commitments to purchase or fund investments of $2.6 billion and $2.0 billion as of March 31, 2022 and December 31, 2021, respectively. These commitments include those related to commercial mortgage loans, other lending facilities and other investments. For those commitments that represent a contractual obligation to extend credit, Global Atlantic has recorded a liability of $14.9 million for current expected credit losses as of March 31, 2022.

In addition, Global Atlantic has entered into certain forward flow agreements to purchase loans. Global Atlantic's obligations under these agreements are subject to change, curtailment, and cancellation based on various provisions including repricing mechanics, due diligence reviews, and performance or pool quality, among other factors.

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.

Global Atlantic also enters into land leases for its consolidated investments in renewable energy.

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, 2022, approximately $400 million of carried interest was subject to this clawback obligation, assuming that all applicable carry-paying funds and their alternative investment vehicles were liquidated at their March 31, 2022 fair values. Although KKR would be required to remit the entire amount to fund investors that are entitled to receive the clawback payment, KKR would be entitled to seek reimbursement of approximately $160 million of that amount from KKR Associates Holdings L.P., which is not a KKR subsidiary. As of March 31, 2022, KKR Associates Holdings L.P. had access to cash reserves sufficient to reimburse the full $160 million that would be due to KKR. If the investments in all carrying-paying funds were to be liquidated at zero value the clawback obligation would have been approximately $2.7 billion, and KKR would be entitled to seek reimbursement of approximately $1.1 billion of that amount from KKR Associates Holdings L.P. KKR will acquire control of KKR Associates Holdings L.P. when a subsidiary of KKR becomes its general partner upon the closing of the transactions contemplated to occur on the Sunset Date (as defined in the Reorganization Agreement), which is scheduled to occur not later than December 31, 2026, subject to the closing of the mergers contemplated by the Reorganization Agreement and the satisfaction of the other conditions to closing.

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, KKR (including KFN) and certain of KKR's investment funds have provided and provide certain indemnities relating to environmental and other matters and have provided and provide non-recourse carve-out guarantees for fraud, willful misconduct and other customary wrongful acts, each in connection with the financing of KKR's corporate real estate and certain real estate investments and for certain investment vehicles that KKR manages. 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.

KKR provides 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. KKR also (i) provides credit support regarding repayment and funding 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 in an investment vehicle that includes third party investors and invests in KKR funds and alongside KKR funds and (ii) provides credit support to a hedge fund partnership. KKR is not a guarantor for any borrowings, credit facilities or debt securities of its Indian debt financing company.

KKR may also 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.

The Global Atlantic business was formerly owned by The Goldman Sachs Group, Inc. (together with its subsidiaries, "Goldman Sachs"). In connection with the separation of Global Atlantic from Goldman Sachs in 2013, Global Atlantic entered into a tax benefit payment agreement with Goldman Sachs. Under the tax benefit payment agreement, Global Atlantic (Fin) Company ("GA FinCo") is obligated to make annual payments out of available cash, guaranteed by Global Atlantic Financial Group Limited ("GAFG"), to Goldman Sachs over an approximately 25-year period totaling $214 million. As of March 31,

2022, the present value of the remaining amount to be paid is $64.9 million. Although these payments are subordinated and deferrable, deferral of these payments would result in restrictions on distributions by GA FinCo and GAFG.

In lieu of funding certain investments in loan facilities to third party borrowers in cash, Global Atlantic has arranged or participated in letters of credit issued by third-party banks on behalf of the borrowers in the amount of $39.7 million, as of March 31, 2022, with expiration dates between October 2022 to December 2024. Global Atlantic has available lines of credit that would allow for additional letters of credit to be issued on behalf of certain borrowers, up to $225.3 million, as of March 31, 2022. For accounting purposes, these letters of credit are considered guarantees of certain obligations of the borrowers. If a letter of credit were to be drawn, Global Atlantic would be obligated to repay the issuing third-party bank, and Global Atlantic would recognize a loan receivable from the borrowers on the consolidated statements of financial condition. Global Atlantic monitors the likelihood of these letters of credit being drawn, and any related contingent obligation. As of both March 31, 2022 and December 31, 2021, the expected credit loss on the contingent liability associated with these letters of credit was not material.

Litigation

From time to time, KKR (including Global Atlantic) is involved in various legal proceedings, lawsuits, arbitration and claims incidental to the conduct of KKR's businesses. KKR's asset management and insurance businesses are also subject to extensive regulation, which may result in regulatory proceedings against them.

In December 2017, KKR & Co. L.P. (which is now KKR & Co. Inc.) and its then Co-Chief Executive Officers were named as defendants in a lawsuit filed 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. KKR and other defendants’ motions to dismiss were 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 motions to dismiss the case for lack of standing. The decision of the Court of Appeals was appealed by plaintiffs to the Supreme Court of Kentucky. On July 9, 2020, the Supreme Court of Kentucky reversed the trial court's order and remanded the case to the trial court with direction to dismiss the complaint for lack of constitutional standing. On July 20, 2020, the Office of the Attorney General, on behalf of the Commonwealth of Kentucky, filed a motion to intervene as a plaintiff in the lawsuit and on July 21, 2020 filed a new lawsuit in the same Kentucky trial court making essentially the same allegations against the defendants, including KKR & Co. Inc. and Messrs. Kravis and Roberts. On July 29, 2020, certain private plaintiffs in the original lawsuit filed a motion to further amend their original complaint and to add new plaintiffs. On July 30, 2020, KKR and other defendants filed objections to the Attorney General’s motion to intervene. On December 28, 2020, the trial court dismissed the complaint filed by the original plaintiffs and denied their motion to amend their original complaint and add new plaintiffs, but granted the Office of the Attorney General’s motion to intervene. In January 2021, some of the attorneys for the private plaintiffs in the original lawsuit filed a new lawsuit, and a motion to intervene in the original lawsuit, on behalf of a new set of plaintiffs, who claim to be "Tier 3" members of Kentucky Retirement Systems, alleging substantially the same allegations as in the original lawsuit. The motion to intervene in the original lawsuit was denied. These "Tier 3" plaintiffs appealed the denial of their motion to intervene but then voluntarily dismissed their appeal on January 31, 2022. In addition, the Kentucky Retirement Systems had commissioned an investigation into certain matters alleged in the Attorney General's complaint. The trial court ordered that this investigation be completed by May 17, 2021, and the Attorney General was permitted to amend its complaint after reviewing the investigation's report within ten days of the Attorney General's receipt of it. On May 24, 2021, the Attorney General filed a First Amended Complaint on behalf of the Commonwealth of Kentucky. This complaint continues to name KKR & Co. L.P. and its then Co-Chief Executive Officers, as defendants, and makes similar allegations against them. KKR and the other defendants moved to dismiss the First Amended Complaint on July 30, 2021. The court held oral argument on these motions to dismiss on December 14, 2021. On July 9, 2021, the individual plaintiffs served an amended complaint, which purports to assert, on behalf of a class of beneficiaries of Kentucky Retirement Systems, direct claims for breach of fiduciary duty and civil violations under the Racketeer Influenced and Corrupt Organizations Act ("RICO"). This complaint was removed to the U.S. District Court for the Eastern District of Kentucky, which has entered an order staying this case until the completion of the Attorney General’s lawsuit on behalf of the Commonwealth. On August 20, 2021, the same and other individual plaintiffs filed a second complaint in Kentucky state court, purportedly on behalf of Kentucky Retirement Systems' funds, alleging the same claims against KKR & Co. Inc. and Messrs. Kravis and Roberts as in the July 9th amended complaint but without the RICO or class action allegations. KKR and the other defendants have moved to dismiss the August 20th complaint. On March 24, 2022, in a separate declaratory judgment action brought by the Commonwealth of Kentucky regarding the enforceability of certain indemnification provisions available to KKR & Co. Inc. and Prisma Capital Partners LP, the Kentucky state court found that it has personal jurisdiction over KKR & Co. Inc., and this finding is currently being appealed by KKR.

KKR (including Global Atlantic) 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, U.S. state attorney generals, Financial Industry Regulatory Authority ("FINRA"), the U.K. Financial Conduct Authority, Central Bank of Ireland, Monetary Authority of Singapore, U.S. state insurance regulatory authorities, and the Bermuda Monetary 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 (including Global Atlantic) is and can be both the defendant and the plaintiff in numerous lawsuits with respect to acquisitions, bankruptcy, insolvency and other events. Such lawsuits may involve claims that adversely affect the value of certain investments owned by KKR's funds and Global Atlantic's insurance companies.

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. KKR has included in its financial statements the reserve for regulatory, litigation and related matters that Global Atlantic includes in its financial statements, including with respect to matters arising from the conversion of life insurance policies from systems previously managed by Athene Holdings Limited to the platform of one of Global Atlantic's third party service providers, Alliance-One, a subsidiary of DXC Technology Company.

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. 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.

Other Financing Arrangements

Global Atlantic has financing arrangements with unaffiliated third parties to support the reserves of its affiliated captive reinsurers. Total fees expensed associated with these financing arrangements were $4.5 million and $4.0 million for the three months ended March 31, 2022 and 2021, respectively, and are included in insurance expenses in the consolidated statements of operations. As of both March 31, 2022 and December 31, 2021, the total capacity of the financing arrangements with third parties was $2.0 billion.

Other than the matters disclosed above, there were no outstanding or unpaid balances from the financing arrangements with unaffiliated third parties as of both March 31, 2022 and December 31, 2021.

25. SUBSEQUENT EVENTS

Common Stock Dividend

A dividend of $0.155 per share of common stock of KKR & Co. Inc. has been declared and was announced on May 3, 2022. This dividend will be paid on May 31, 2022 to common stockholders of record as of the close of business on May 16, 2022. KKR Holdings will receive its pro rata share of the distribution from KKR Group Partnership.

Preferred Stock Dividends

A dividend of $0.75 per share of Series C Mandatory Convertible Preferred Stock has been declared and was announced on May 3, 2022 and set aside for payment. This dividend will be paid on June 15, 2022 to holders of record of Series C Mandatory Convertible Preferred Stock as of the close of business on June 1, 2022.

Yen Senior Notes

On April 26, 2022, KKR Group Finance Co. XI LLC, an indirect subsidiary of KKR & Co. Inc., completed the offering of (i) ¥36.4 billion aggregate principal amount of its 1.054% Senior Notes due 2027 (the “2027 Yen Notes”), (ii) ¥4.9 billion aggregate principal amount of its 1.244% Senior Notes due 2029 (the “2029 Yen Notes”), (iii) ¥6.2 billion aggregate principal amount of its 1.437% Senior Notes due 2032 (the “2032 Yen Notes”), (iv) ¥7.5 billion aggregate principal amount of its 1.553% Senior Notes due 2034 (the “2034 Yen Notes”), and (v) ¥5.5 billion aggregate principal amount of its 1.795% Senior Notes due 2037 (the “2037 Yen Notes” and, together with the 2027 Yen Notes, the 2029 Yen Notes, the 2032 Yen Notes and the 2034 Yen Notes, the “Yen Notes”). The Yen Notes are guaranteed by KKR & Co. Inc. and KKR Group Partnership. The Yen Notes were issued pursuant to an indenture, dated April 26, 2022, as supplemented by a first supplemental indenture, dated April 26, 2022.

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