KKR & CO. L.P. (KKR, Financial) filed Quarterly Report for the period ended 2011-09-30.
Kkr & Co. L.p. has a market cap of $3.05 billion; its shares were traded at around $13.67 with a P/E ratio of 9.6 and P/S ratio of 7. The dividend yield of Kkr & Co. L.p. stocks is 3.2%.
Fees were $514.3 million for the nine months ended September 30, 2011, an increase of $225.2 million, compared to $289.1 million for the nine months ended September 30, 2010. The net increase was primarily due to (i) a net increase in gross monitoring fees of $126.8 million, (ii) an increase in gross transaction fees of $87.2 million and (iii) an increase in management fees of $11.5 million. The increase in gross monitoring fees was primarily the result of $76.6 million of fees received from the termination of monitoring fee arrangements in connection with the IPOs or sales of three portfolio companies, HCA, Inc. (NYSE: HCA), The Nielsen Company B.V. (NYSE: NLSN) and Seven Media Group (ASX: SWM) as well as $38.6 million of consulting fees earned by an entity that was not consolidated prior to 2011. Termination payments may occur in the future; however, they are infrequent in nature and are generally correlated with initial public offerings or other sales activity in our private equity portfolio. The increase in gross transaction fees of $87.2 million primarily reflects an
Fees were $457.0 million for the nine months ended September 30, 2011, an increase of $70.5 million, compared to fees of $386.5 million for the nine months ended September 30, 2010. The net increase was primarily due to (i) a net increase in gross monitoring fees of $77.1 million; (ii) an increase in gross transaction fees of $36.4 million and (iii) an increase in management fees of $30.1 million. The increase in gross monitoring fees was the result of $76.6 million of fees received from the termination of monitoring fee arrangements in connection with the IPOs or sales of three portfolio companies, HCA, Inc., The Nielsen Company B.V., and Seven Media Group which impacted fees by $39.7 million net of associated fee credits. These types of termination payments may occur in the future; however, they are infrequent in nature and are generally correlated with an initial public offering or other sale activity in our private equity portfolio. The increase in gross transaction fees of $36.4 million primarily reflects an increase in both the number and size of fee-generating investments. The increase in management fees of $30.1 million resulted primarily from an increase in fee paying capital at our private equity funds. These increases were partially offset by an increase in credits earned by limited partners under fee sharing arrangements in our private equity funds due primarily to the increased gross transaction and monitoring fees.
Our net cash provided by (used in) operating activities was $0.9 billion and $1.2 billion during the nine months ended September 30, 2011 and 2010, respectively. These amounts primarily included: (i) proceeds from sales of investments net of purchases of investments by our funds of $0.3 billion and $0.6 billion during the nine months ended September 30, 2011 and 2010, respectively; (ii) net realized gains (losses) on investments of $2.9 billion and $1.5 billion during the nine months ended September 30, 2011 and 2010, respectively; and (iii) change in unrealized losses on investments of $(2.4) billion and $3.3 billion during the nine months ended September 30, 2011 and 2010, respectively. These amounts are reflected as operating activities in accordance with investment company accounting.
KKRs private equity funds require the management company to refund up to 20% of any cash management fees earned from limited partners in the event that the funds recognize a carried interest. At such time as the fund recognizes a carried interest in an amount sufficient to cover 20% of the cash management fees earned or a portion thereof, a liability to the funds limited partners is recorded and revenue is reduced for the amount of the carried interest recognized, not to exceed 20% of the cash management fees earned. As of September 30, 2011, the amount subject to refund for which no liability has been recorded approximates $81.2 million as a result of certain funds not yet recognizing sufficient carried interests. The refunds to the limited partners are paid, and the liabilities relieved, at such time that the underlying investments are sold and the associated carried interests are realized. In the event that a funds carried interest is not sufficient to cover all or a portion of the amount that represents 20% of the cash management fees earned, these fees would not be returned to the funds limited partners, in accordance with the respective fund agreements.
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Kkr & Co. L.p. has a market cap of $3.05 billion; its shares were traded at around $13.67 with a P/E ratio of 9.6 and P/S ratio of 7. The dividend yield of Kkr & Co. L.p. stocks is 3.2%.
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With respect to KKRs active and future funds and co-investment vehicles that provide for carried interest, KKR will allocate to its principals and other professionals a portion of the carried interest earned in relation to these funds as part of its carry pool. KKR currently allocates approximately 40% of the carry it earns from these funds and vehicles to its carry pool. These amounts are accounted for as compensatory profit-sharing arrangements in conjunction with the related carried interest income and recorded as an expense in the condensed consolidated statements of operations. For the three months ended September 30, 2011 and 2010, KKR recorded carry pool allocation expense (benefit) of $(151.2) million and $91.2 million, respectively. For the nine months ended September 30, 2011 and 2010, KKR recorded carry pool allocation expense of $67.9 million and $286.6 million, respectively. To the extent previously recorded carried interest is adjusted to reflect decreases in the underlying funds valuations at period end, related profit sharing amounts previously accrued are adjusted and reflected as a benefit to current period expense.Fees were $514.3 million for the nine months ended September 30, 2011, an increase of $225.2 million, compared to $289.1 million for the nine months ended September 30, 2010. The net increase was primarily due to (i) a net increase in gross monitoring fees of $126.8 million, (ii) an increase in gross transaction fees of $87.2 million and (iii) an increase in management fees of $11.5 million. The increase in gross monitoring fees was primarily the result of $76.6 million of fees received from the termination of monitoring fee arrangements in connection with the IPOs or sales of three portfolio companies, HCA, Inc. (NYSE: HCA), The Nielsen Company B.V. (NYSE: NLSN) and Seven Media Group (ASX: SWM) as well as $38.6 million of consulting fees earned by an entity that was not consolidated prior to 2011. Termination payments may occur in the future; however, they are infrequent in nature and are generally correlated with initial public offerings or other sales activity in our private equity portfolio. The increase in gross transaction fees of $87.2 million primarily reflects an
Fees were $457.0 million for the nine months ended September 30, 2011, an increase of $70.5 million, compared to fees of $386.5 million for the nine months ended September 30, 2010. The net increase was primarily due to (i) a net increase in gross monitoring fees of $77.1 million; (ii) an increase in gross transaction fees of $36.4 million and (iii) an increase in management fees of $30.1 million. The increase in gross monitoring fees was the result of $76.6 million of fees received from the termination of monitoring fee arrangements in connection with the IPOs or sales of three portfolio companies, HCA, Inc., The Nielsen Company B.V., and Seven Media Group which impacted fees by $39.7 million net of associated fee credits. These types of termination payments may occur in the future; however, they are infrequent in nature and are generally correlated with an initial public offering or other sale activity in our private equity portfolio. The increase in gross transaction fees of $36.4 million primarily reflects an increase in both the number and size of fee-generating investments. The increase in management fees of $30.1 million resulted primarily from an increase in fee paying capital at our private equity funds. These increases were partially offset by an increase in credits earned by limited partners under fee sharing arrangements in our private equity funds due primarily to the increased gross transaction and monitoring fees.
Our net cash provided by (used in) operating activities was $0.9 billion and $1.2 billion during the nine months ended September 30, 2011 and 2010, respectively. These amounts primarily included: (i) proceeds from sales of investments net of purchases of investments by our funds of $0.3 billion and $0.6 billion during the nine months ended September 30, 2011 and 2010, respectively; (ii) net realized gains (losses) on investments of $2.9 billion and $1.5 billion during the nine months ended September 30, 2011 and 2010, respectively; and (iii) change in unrealized losses on investments of $(2.4) billion and $3.3 billion during the nine months ended September 30, 2011 and 2010, respectively. These amounts are reflected as operating activities in accordance with investment company accounting.
KKRs private equity funds require the management company to refund up to 20% of any cash management fees earned from limited partners in the event that the funds recognize a carried interest. At such time as the fund recognizes a carried interest in an amount sufficient to cover 20% of the cash management fees earned or a portion thereof, a liability to the funds limited partners is recorded and revenue is reduced for the amount of the carried interest recognized, not to exceed 20% of the cash management fees earned. As of September 30, 2011, the amount subject to refund for which no liability has been recorded approximates $81.2 million as a result of certain funds not yet recognizing sufficient carried interests. The refunds to the limited partners are paid, and the liabilities relieved, at such time that the underlying investments are sold and the associated carried interests are realized. In the event that a funds carried interest is not sufficient to cover all or a portion of the amount that represents 20% of the cash management fees earned, these fees would not be returned to the funds limited partners, in accordance with the respective fund agreements.
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