Key Takeaways
- • KKR reported adjusted EPS of $1.78 for the third quarter, beating analysts' expectations of $1.59, with fee-related earnings up 27% year over year to $1.3 billion.
- • Assets under management grew 11% year over year to $804 billion, with fee-paying AUM up 11% to $648 billion.
- • KKR raised $25 billion in new capital during the quarter and $116 billion over the trailing 12 months, and expects to return more than $40 billion to clients in 2026.
- • The firm authorized an additional $500 million in share repurchases on Nov. 6 and declared a quarterly dividend of 19.5 cents per share.
- • KKR expects the USI Insurance Services sale to close in the fourth quarter, contributing approximately $2 billion in adjusted net income.
Summary
KKR & Co. Inc. reported better-than-expected third-quarter results, with adjusted earnings of $1.78 per share against analysts' expectations of $1.59, according to the company's earnings release as reported by TradingView. Total asset management segment revenue reached $2.608 billion, slightly above estimates of $2.596 billion. Fee-related earnings climbed 27% to $1.3 billion, or $1.42 per adjusted share, and total operating earnings rose 25% to $1.7 billion, or $1.88 per adjusted share. Insurance operating earnings totaled $230 million, including a $26 million charge tied to Global Atlantic's annual actuarial review; excluding the charge, earnings would have reached $257 million.
Co-CEOs Joseph Y. Bae and Scott C. Nuttall said the firm posted record fee-related earnings, total operating earnings, and adjusted net income per share for the second straight quarter, both quarterly and over the trailing 12 months. They highlighted record investment monetizations and capital distributions to clients, and said KKR expects to return more than $40 billion to clients in 2026, surpassing its previous annual record by more than 50%.
Assets under management grew 11% year over year to $804 billion, while fee-paying AUM rose 11% to $648 billion. KKR raised $25 billion in new capital during the quarter and $116 billion over the past 12 months, and invested $20 billion in the quarter and $98 billion over the past year. Private equity AUM climbed 15% to $256 billion, with $4 billion raised and $3 billion invested in the quarter. Credit and liquid strategies AUM rose 7% to $337 billion, with $14 billion raised and $8 billion invested, primarily in asset-based finance. Real assets AUM grew 14% to $212 billion, with $7 billion raised and $8 billion invested. The Global Infrastructure V fund held its final close in August with $19.2 billion in commitments, the largest infrastructure fund the company has raised to date.
Between June 30 and Nov. 4, KKR repurchased 6.2 million shares for $567 million at an average price of $92 per share. On Nov. 6, the company authorized an additional $500 million for buybacks and declared a quarterly dividend of 19.5 cents per common share. KKR also expects to complete the sale of USI Insurance Services, its first core private equity investment, in the fourth quarter. Subject to closing, the company expects approximately $2 billion in adjusted net income, or more than $2 per adjusted share, from the transaction. KKR shares were up 1.80% at $98.28 at the time of publication on Monday, according to Benzinga Pro data.
Co-CEOs Joseph Y. Bae and Scott C. Nuttall said the firm posted record fee-related earnings, total operating earnings, and adjusted net income per share for the second straight quarter, both quarterly and over the trailing 12 months. They highlighted record investment monetizations and capital distributions to clients, and said KKR expects to return more than $40 billion to clients in 2026, surpassing its previous annual record by more than 50%.
Assets under management grew 11% year over year to $804 billion, while fee-paying AUM rose 11% to $648 billion. KKR raised $25 billion in new capital during the quarter and $116 billion over the past 12 months, and invested $20 billion in the quarter and $98 billion over the past year. Private equity AUM climbed 15% to $256 billion, with $4 billion raised and $3 billion invested in the quarter. Credit and liquid strategies AUM rose 7% to $337 billion, with $14 billion raised and $8 billion invested, primarily in asset-based finance. Real assets AUM grew 14% to $212 billion, with $7 billion raised and $8 billion invested. The Global Infrastructure V fund held its final close in August with $19.2 billion in commitments, the largest infrastructure fund the company has raised to date.
Between June 30 and Nov. 4, KKR repurchased 6.2 million shares for $567 million at an average price of $92 per share. On Nov. 6, the company authorized an additional $500 million for buybacks and declared a quarterly dividend of 19.5 cents per common share. KKR also expects to complete the sale of USI Insurance Services, its first core private equity investment, in the fourth quarter. Subject to closing, the company expects approximately $2 billion in adjusted net income, or more than $2 per adjusted share, from the transaction. KKR shares were up 1.80% at $98.28 at the time of publication on Monday, according to Benzinga Pro data.
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