KKR reported 18% growth in management fees to $738.2
million, up from $624.9 million a year earlier as the firm
accumulated more assets. KKR's earnings from investing the
assets of its insurance franchise, annuities provider Global
Atlantic, rose 43% to $205.1 million.
For its quarterly fund performance, KKR said its private
equity portfolio gained 2%, infrastructure funds added 7%,
leveraged credit funds grew 4%, while opportunistic real estate
funds fell 3%. In comparison, the private equity funds of
Blackstone and Carlyle appreciated by 2.8% and 1%, respectively.
Under generally accepted accounting principles, KKR posted
net income of $322.7 million in the first quarter due to strong
growth in revenue from its insurance and asset management
businesses. That compared with a net loss of about $10 million
in the same quarter a year earlier.
KKR raised $12 billion of new capital and made $10 billion
of new investments in the first quarter. It declared a dividend
of 16.5 cents per share.
(Reporting by Chibuike Oguh in New York; Editing by Jacqueline
Wong)
By Chibuike Oguh
NEW YORK, May 8 (Reuters) - KKR & Co Inc said on
Monday its after-tax distributable earnings fell 26%
year-on-year in the first quarter due to a sharp drop in asset
sales from its private equity portfolio and lower transaction
fees.
KKR and other private equity firms cashed out on fewer
investments during the quarter as inflation, higher interest
rates, geopolitical tensions and financial market volatility
weighed on dealmaking.
After-tax distributable earnings, which represents the cash
available for paying dividends to shareholders, fell to $719.3
million, down from $974 million posted a year. That translated
to after-tax distributable earnings of 81 cents per share, which
exceeded the average analyst estimate of 74 cents per share,
according to Refinitiv data.
KKR said its profit from asset sales fell 70% to $172.7
million. That result was in line with its peers, Blackstone Inc and Carlyle Group Inc , which also reported slower
asset divestments in the first quarter.
Transaction fees from KKR's capital markets division slumped
by more than 60% to $102 million because of fewer deals across
its portfolio companies.
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