KKR profits soar 58% as fees hit record
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The news: KKR posted a 58% rise in Q3 adjusted net income to USD1.2 billion ($1.80 billion) surpassing Wall Street expectations.
The numbers: The surge was fuelled by record fee-related income of USD1 billion, up 79%, driven by a USD24 billion capital raise and strong performance from its capital markets and insurance units.
The firm’s assets under management climbed 18% to USD624 billion, while operating earnings hit a record USD1.3 billion.
KKR’s private equity portfolio rose 5%, infrastructure funds gained 6%, and opportunistic real estate funds increased 2%.
Meanwhile, KKR agreed to buy a 25% stake in Eni’s biofuel arm Enilive for €2.94 billion, advancing its European energy strategy.
The context: As demand for alternative investments grows, KKR’s performance has outpaced rivals, leveraging its diversified portfolio and expanding transaction fee-related income from arranging financings, particularly in infrastructure and debt products.
What they said: “Activity levels across the firm remain high as we experience a continued acceleration across our key operating metrics and financial results,” said co-chief executive officers Joseph Bae and Scott Nuttall in a statement.
“This was a strong quarter for KKR reflecting a return to a more normalized operating environment. Adjusted net income grew more than 50% year-over-year alongside record fee related earnings and total operating earnings.”
The source: KKR release
