KKR & Co Inc Reports 20% Jump in Q1 Adjusted Net Income

KKR & Co Inc reported a 20% increase in its first-quarter adjusted net income to $863.7 million, propelled by robust management and transaction fees as well as earnings from its annuities business. The company's fee-related earnings grew 22% to $668.7 million, supported by income from managing $578 billion in total assets and transaction fees. Earnings from investing the capital of its annuities business Global Atlantic rose by 33% to $273 million.

KKR's private equity portfolio appreciated by 5% during the quarter, while its opportunistic real estate funds gained 1% and leveraged credit funds added 3%. The company raised $31 billion of new capital, invested $14 billion, and retained $98 billion of unspent capital. KKR's net income under generally accepted accounting principles more than doubled to $682.2 million, or $0.74 per share, compared to $322.74 million, or $0.36 per share, in the same quarter last year.

Why this matters: KKR's strong financial performance highlights the resilience and growth potential of the alternative asset management industry, even amidst economic uncertainties. The company's ability to generate substantial fees and deliver solid returns across its diverse investment portfolios underscores its position as a leading global investment firm.

Excluding items, KKR reported adjusted earnings of $0.97 per share, surpassing the average analyst estimate of $0.96 per share. The company's revenue for the quarter rose 208.6% to $9.66 billion from $3.13 billion in the previous year. KKR also declared a quarterly dividend of 17.5 cents per share.

"Our first quarter results reflect the strength of our business model and the value we deliver to our clients and shareholders," said KKR Co-Chief Executive Officers Joseph Bae and Scott Nuttall in a statement. "We continue to see attractive opportunities to deploy capital across our platforms and deliver differentiated returns."

Key Takeaways

• KKR reported 20% increase in Q1 adjusted net income to $863.7M
• Fee-related earnings grew 22% to $668.7M, assets under management $578B
• Annuities business earnings rose 33% to $273M, private equity portfolio up 5%
• KKR raised $31B in new capital, invested $14B, retained $98B unspent
• Q1 net income more than doubled to $682.2M, or $0.74 per share