KKR Reports 20% Increase In Earnings Driven By Management Fees

Private equity firm KKR & Co. Inc. has announced a significant 20% year-on-year increase in its first-quarter adjusted net income, fueled by robust management and transaction fees, as well as earnings from its annuities business, as reported by Chibuike Oguh for Reuters.

KR's earnings from investing the capital of its annuities business Global Atlantic surged by 33% to $273 million during the quarter. I Photo: KKR X

KKR's adjusted net income soared to $863.7 million, up from $719.3 million recorded in the same period the previous year. This translated to an adjusted net income per share of 97 cents, slightly surpassing the average analyst estimate of 96 cents based on LSEG data.

Fee-related earnings also experienced a notable 22% surge, reaching $668.7 million.

This increase was propelled by the income generated from managing $578 billion worth of total assets, coupled with transaction fees earned from arranging financing for its own deals.

Additionally, KKR's earnings from investing the capital of its annuities business Global Atlantic surged by 33% to $273 million during the quarter.

One significant milestone during the quarter was the completion of a $2.7 billion deal to acquire the remaining 37% stake in Global Atlantic that KKR did not already own.

The strong performance reported by KKR underscores its robust business model and effective management strategies, positioning the firm for continued growth and success in the competitive private equity landscape.