KKR & Co Reports Strong Q3 2024 Results

By Echo Wang

NEW YORK (Reuters) – Alternative fund manager KKR & Co (NYSE:KKR) reported a 58% jump in adjusted net income for the third quarter of 2024, driven by record fee-related income and earnings from its insurance business.

The New York-based firm announced on Thursday that adjusted net income (ANI) rose to $1.2 billion in the July-September quarter, equating to $1.38 per adjusted share. This was ahead of the average analyst estimate of $1.21, according to LSEG data.

KKR achieved record fee-related earnings of $1 billion, a 79% increase from the previous year. This growth stemmed from fees generated by managing $624 billion in total assets, reflecting an 18% year-over-year growth, alongside transaction fees from its capital markets business.

For the quarter, KKR recorded total operating earnings of $1.3 billion, up 71% year-over-year. This figure includes fee-related earnings from its asset management business, returns from long-term private equity holdings, and profits from its Global Atlantic insurance division.

The firm’s fee-paying assets under management (AUM) rose by 19% to $506 billion.

KKR raised $24 billion in new capital during the quarter, an increase from $14 billion in the same quarter last year.

Its private equity portfolio appreciated by 5%, infrastructure funds gained 6%, and opportunistic real estate funds rose 2%.

KKR also deployed $24 billion in investments, an increase from $9 billion one year ago, and declared a quarterly dividend of 17.5 cents.

Additionally, KKR announced several deals in recent months, including the acquisition of Varsity Brands, a manufacturer of sports uniforms and school yearbooks, for about $4.75 billion, with completion in August. It also reached an agreement to take Instructure Holdings, an education software platform, private for $4.8 billion. KKR further offloaded half of its position in Kokusai Electric.