KKR Announces Intra-Quarter Monetization Activity Update for the Second Quarter

Rhea-AI Summary

KKR announced a monetization update for Q2 2024, reporting over $500 million in total realized performance and investment income from April 1 to June 20. The income comprises approximately 80% realized performance income and 20% realized investment income. These figures stem from secondary sales, strategic transactions, dividends, and interest income. However, this estimate does not predict total income for the quarter ending June 30, 2024, and may change with additional gains or losses.

Positive

• KKR reported over $500 million in realized performance and investment income in Q2 2024.
• Approximately 80% of the income stems from realized performance income, indicating strong performance-driven returns.
• The income also includes realized incentive fees expected by June 30, 2024.

Negative

• The $500 million figure does not represent total income for the quarter and may vary with further gains or losses.

Insights

Financial Analyst

KKR's monetization activity update for the second quarter provides an early glimpse into their financial performance. The firm has reported a total realized performance income and realized investment income exceeding $500 million. This is significant as it reflects the firm’s ability to generate substantial income from its investments and incentive fees within a relatively short period.

From a retail investor's perspective, this news is notable because it signals KKR’s effectiveness in managing and monetizing its portfolio. The breakdown, with 80% of the income coming from realized performance income and 20% from realized investment income, highlights the firm’s strong performance-driven earnings.

The update, however, is cautious by emphasizing that these figures do not represent total revenues for the full quarter, nor predict full-year results. Investors should recognize that while the numbers are impressive, the information is partial and forward-looking statements always carry uncertainty.

Additionally, the sources of this income—secondary sales, strategic transactions, dividends and interest income—indicate a diversified income stream, which can be seen as a positive sign of risk management and strategic planning.

Short-term impact: This update may boost investor confidence in the near term, supporting stock prices.

Long-term impact: If KKR continues this performance, it could lead to robust financial health and potentially higher dividends or share buybacks.

Market Research Analyst

KKR’s intra-quarter update provides insights into its operational efficiency and market strategy. Realized performance income and investment income over $500 million showcases a proactive approach to asset monetization. For investors, understanding the breakdown of income sources is crucial.

The 80% realized performance income, likely from incentive fees and asset sales, suggests strong operational success and effective asset management. Meanwhile, the 20% realized investment income from dividends and interest reflects a stable, albeit smaller, revenue stream from their holdings.

This balance between performance income and stable investment income is important. It shows KKR’s ability to leverage both active management strategies and stable returns from longer-term investments. This dual approach can reduce overall volatility and enhance return consistency, which is appealing to investors looking for both growth and stability in their portfolios.

Short-term impact: Investors may see this as a positive indication of KKR's strategy, potentially influencing market sentiment favorably.

Long-term impact: Continued success in these areas could establish a strong track record, benefiting investor trust and long-term stock performance.

NEW YORK--(BUSINESS WIRE)-- KKR today announced a monetization activity update for the period from April 1, 2024 to June 20, 2024. Based on information available to us as of today, with respect to the period through June 20, 2024, KKR has earned total realized performance income, including realized incentive fees, and total realized investment income in excess of $500 million. This amount includes incentive fees that are expected to be realized at June 30, 2024. Our monetization activity quarter-to-date is made up of approximately 80% realized performance income and approximately 20% realized investment income. This activity is driven by a combination of secondary sales and strategic transactions that have closed quarter-to-date, as well as dividends and interest income.

The estimate disclosed above is not intended to predict or represent total realized performance income, total realized investment income or total revenues for the full quarter ending June 30, 2024, because it does not include the results or impact of any other sources of income, including fee income, or expenses, and we may realize further gains or losses relating to total realized performance income and total realized investment income after the date of this press release. This estimate is also not necessarily indicative of the results that may be expected for any other period, including the entire year ending December 31, 2024.

About KKR

KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group’s website at www.globalatlantic.com.

Forward-Looking Statements

This press release may contain forward-looking statements, including estimated operating results from certain monetization activities. Words such as “expect,” “estimate,” “will,” “may” and “believe” or similar expressions may identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results to differ materially from those included in these forward-looking statements, and investors should not place undue reliance on such statements. These forward-looking statements speak only as of the date of this press release, and we do not undertake any obligation to update or revise any of the forward-looking statements to reflect future events or circumstances, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240620957853/en/

Investor Relations:

Craig Larson

1-877-610-4910 (U.S.) / 212-230-9410

investor-relations@kkr.com

Media:

Kristi Huller, Miles Radcliffe-Trenner or Julia Kosygina

1-212-750-8300

media@kkr.com

Source: KKR

FAQ

What is KKR's monetization activity update for Q2 2024?

KKR reported over $500 million in total realized performance and investment income from April 1 to June 20, 2024.

How much of KKR's Q2 2024 income is from performance income?

Approximately 80% of KKR's Q2 2024 income is from realized performance income.

What factors contributed to KKR's Q2 2024 income?

KKR's Q2 2024 income was driven by secondary sales, strategic transactions, dividends, and interest income.

Is KKR's $500 million income estimate for Q2 2024 final?

No, the $500 million estimate is not final and may change with further gains or losses.

What portion of KKR's Q2 2024 income is from investment income?

Approximately 20% of KKR's Q2 2024 income is from realized investment income.