Latest KKR Earnings Report Q4 2024

Company Overview

KKR & Co. Inc. (NYSE: KKR) is a leading global investment firm founded in 1976 by Jerome Kohlberg Jr., Henry Kravis, and George R. Roberts. Headquartered in New York City, KKR specializes in private equity, energy, infrastructure, real estate, and credit strategies, managing assets across multiple industries and geographies. As of December 31, 2023, the firm reported assets under management (AUM) of approximately $553 billion. In recent developments, KKR has been actively expanding its investment portfolio. Notably, in October 2023, the firm secured a minority stake in Catalio Capital Management, a venture capital and medical investment funds manager. In November 2023, KKR acquired Potter Global Technologies from Gryphon Investors, further diversifying its holdings. Additionally, in January 2023, KKR invested 700 billion won in private equity bonds issued by Taeyoung Group's holding company, TY Holdings.

Latest KK Earnings Comparison (Q4 2024)

Historical KKR Earnings Data

KKR Earnings Call Summary Q4 2024

Highlights

• Record Financial Performance:

  • Fee-related earnings (FRE) per share of $0.94 (+24% YoY), second highest in history.

  • Adjusted net income (ANI) per share of $1.32 (+32% YoY).

  • Full-year FRE of $3.66 (+37% YoY) and ANI of $4.70 (+38% YoY), both record annual figures.

• Strong Capital Raising & Deployment:

  • $27B raised in Q4, leading to $114B in total 2024 fundraising, second-best year in history.

  • $84B deployed in 2024, up from $44B in 2023, driven by credit and infrastructure investments.

• Expanding Wealth Management Presence:

  • KKR's K-Series AUM reached $18B, more than doubling from $7B in 2023.

  • Upcoming hybrid credit products in partnership with Capital Group to target mass affluent investors.

• Insurance & Global Atlantic Integration:

  • Fully integrated Global Atlantic (GA), enabling more private market investment opportunities.

  • Longer-duration insurance liabilities and increased private market allocations for enhanced returns.

• Strategic Holdings Expansion:

  • Increased stakes in three existing portfolio companies, investing $1.1B from KKR balance sheet.

  • Revised Strategic Holdings earnings guidance to $1.1B+ in 2030, reflecting higher expected dividends.

• Raised Dividend & Shareholder Returns:

  • Annual dividend increased from $0.70 to $0.74 per share.

  • Continued capital allocation strategy focused on M&A, organic growth, and shareholder returns.

Risks

Despite strong performance, KKR faces several key challenges:

1. Macroeconomic & Interest Rate Sensitivity:

   • Tighter monetary policy or slowing economic growth could impact M&A activity and fundraising.

2. Private Equity Monetization Timing:

   • Delayed exits in certain geographies or sectors could push cash realizations further into 2025-2026.

3. Regulatory & Compliance Uncertainty:

   • Potential changes in private market fund structures and insurance regulations could affect growth plans.

4. Market Competition:

   • Growing competition from Blackstone, Apollo, and Carlyle in private credit and alternatives.

5. Strategic Holdings Execution Risk:

   • Successfully scaling newly acquired stakes and ensuring dividend compounding will take time.

Opportunities

KKR is well-positioned for long-term growth across multiple areas:

1. Private Credit & Asset-Based Finance (ABF) Growth:

   • ABF AUM grew 40% YoY to $70B, targeting $9T+ total addressable market.

2. Wealth Management & Capital Group Partnership:

   • Hybrid credit products launching in H1 2025, expanding into mass affluent market.

3. Infrastructure & Energy Transition Investments:

   • $50B in data center and infrastructure investments, benefiting from rising AI and cloud computing demand.

4. Public-to-Private & Corporate Carve-Outs:

   • Increased M&A pipeline for public-to-private transactions, particularly in Japan, Europe, and North America.

5. Monetization & Realization Upside:

   • 2025 exits expected to outpace 2024, with $400M+ in announced realized earnings for Q1.

Outlook

• Sustained Fundraising Momentum:

  • 2025 expected to exceed $100B+ in new fundraising, driven by flagship private equity & real asset funds.

• Higher Monetization Activity:

  • More M&A exits and IPOs expected in 2025, with longer-term exits in 2026-2027.

• Expanding Insurance & Strategic Holdings Earnings:

  • Further insurance growth with GA integration, targeting higher long-term ROEs.

  • Strategic Holdings earnings expected to compound, reaching $1.1B+ by 2030.

The information is provided for educational purposes only and does not constitute financial advice or recommendation and should not be considered as such. Do your own research.