KKR News: Latest Updates and Developments
Private equity firm KKR has been making headlines recently with its latest financial results and board appointments. KKR, founded in 1976 by George Roberts and Henry Kravis, is a leading global investment firm that offers alternative asset management, capital markets, and insurance solutions.
In August 2023, KKR reported a milder-than-expected 23% drop in Q2 earnings.
The private equity firm's second-quarter after-tax distributable earnings fell year-on-year as growth in management and performance fees slowed.
Despite the drop in earnings, KKR's CEO, Henry Kravis, remained confident about the company's future prospects, stating that KKR is well-positioned to capitalize on opportunities in the current market.
Most recently, KKR announced the appointment of Kimberly A. Ross as a new independent director. Ross, who has extensive experience in finance and accounting, will bring valuable expertise to KKR's board. Her appointment is part of KKR's ongoing efforts to enhance its corporate governance and strengthen its leadership team.
KKR's Financial Overview
Assets Under Management
KKR & Co. Inc. (KKR) is a leading global investment firm with a diverse range of investment strategies and asset classes.
As of September 28, 2023, KKR had total assets under management (AUM) of $429 billion.
This includes a mix of private equity, real estate, infrastructure, credit, and hedge fund investments.
The company's AUM has steadily grown over the years, from $66 billion in 2012 to $429 billion in 2023. KKR's strong performance has attracted a diverse range of investors, including pension funds, sovereign wealth funds, and high net worth individuals.
KKR's distributable earnings (DE) are a key measure of the company's financial performance. DE represents the portion of earnings that can be paid out to shareholders as dividends. KKR's DE is calculated after taking into account all expenses, including management fees and performance fees.
In the first quarter of 2023, KKR reported after-tax DE of $647 million, or $0.77 per share. This was an increase from the previous year's first quarter after-tax DE of $415 million, or $0.49 per share. The increase was driven by strong performance across KKR's investment strategies, particularly in private equity and real estate.
KKR's DE has been consistently strong over the years, reflecting the company's ability to generate attractive returns for its investors. In 2014, KKR reported after-tax DE of $1.4 billion, or $2.48 per share. This was a significant increase from the previous year's after-tax DE of $987 million, or $1.74 per share.
Overall, KKR's financial performance has been strong, driven by its diverse range of investment strategies and its ability to generate attractive returns for its investors. However, the company is not immune to external factors such as interest rates and market volatility, which can impact its performance.
KKR's financial performance has been compared to other private equity firms such as Carlyle Group Inc. and Apollo Global Management Inc. KKR's shares are publicly traded on the New York Stock Exchange (NYSE), and the company has attracted investors from around the world.
Chibuike Oguh, a finance professor at New York University, has commented on KKR's strong performance and its ability to generate attractive returns for its investors. Edinburgh Napier University has also highlighted KKR's success in growing its AUM and expanding its business into new areas.
The global economy and factors such as gold prices and business trends can also impact KKR's financial performance. KKR has continued to adapt to changing market conditions, and its strong financial position has enabled it to pursue new investment opportunities and expand its business.
KKR has been actively acquiring companies across various sectors to expand its portfolio and increase its market share. Here are some of KKR's recent acquisitions:
Simon & Schuster
In August 2023, KKR acquired Simon & Schuster, a publishing house, from Paramount for $1.62 billion. The acquisition is part of KKR's strategy to invest in media and entertainment companies.
Singtel's Data Centre Business
In September 2023, KKR invested S$1.1 billion for a 20% stake in Singtel's regional data centre business. KKR has the option to increase its stake to 25% by 2027. This investment puts the enterprise value of Singtel's overall regional data centre business at S$5.5 billion.
In addition to the above acquisitions, KKR has made several other acquisitions in recent years. These include:
The acquisition of a majority stake in Hyperoptic, a UK-based fibre broadband provider, in 2022.
The acquisition of a majority stake in OverDrive, a digital reading platform, in 2021.
The acquisition of a majority stake in Burning Glass Technologies, a labour market analytics company, in 2021.
These acquisitions demonstrate KKR's commitment to expanding its portfolio and investing in companies with growth potential.