KKR & Co reported increased third-quarter earnings, and a share of profits that could return more than double to shareholders.
The private-equity firm reported net income of $1.13 billion, or $1.80 per share, for the quarter ended September 30 a year ago, up from $1.06 billion, or $1.79 per share.
Helping drive leverage across KKR’s private-equity portfolio, including an 11% gain in its flagship funds. Both figures easily surpassed the S&P 500’s 0.2% gain during this period.
KKR’s distributable earnings, a closely watched measure of cash that can be returned to shareholders, came in at $925.1 million, or $1.05 per share. That compares to $452.8 million, or 53 cents per share, in the same period a year ago. The per-share figure for the firm’s highest distributable earnings on record coincided with the second quarter of this year.
During the quarter, KKR acquired vitamin-maker Bountiful Company, Ingersoll-Rand Inc. and Academy Sports & Outdoors Inc., among others.
The stock of KKR, along with its publicly traded peers, has gained momentum this year. Including dividends, the firm’s shares had climbed 97% year after Monday’s close, compared to an overall 26% return for the S&P 500, according to Fact Set.
The firm reported earnings-related earnings of $529.6 million, or 60 cents per share, versus record fees of $324 million, or 38 cents per share, a year ago. Driving that was $28 billion of fundraising during the third quarter, more than 90% of which came from non-private equity businesses such as credit and real estate.
KKR’s chief financial officer, Robert Levine, told The Wall Street Journal, “It was really broad-based. We believe there is a gap in our investment performance and our fundraising success largely follows that.” Is.”
He said KKR has raised $100 billion since the beginning of the year, about half of which came from businesses that the firm did not have five years ago.
Assets under management were $459.08 billion, up 7% from the second quarter and 96% year over year. In February KKR closed a deal to buy a majority stake in insurance company Global Atlantic Financial Group Ltd, adding about $90 billion to its assets under management.
In October, KKR co-CEOs Henry Kravis and George Roberts formally handed over the reins to Scott Nuttall and Joe Bay. M/s Kravis and Roberts, two pioneers of the private-equity industry, will continue to serve as co-executive chairman.
This story has been published without modification to the text from a wire agency feed
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