KKR & Co. Inc. (KKR) reported that its third quarter net income to stockholders increased to $859.9 million from $600.6 million, last year. Earnings per share was $0.90 compared to $0.64. Fee Related Earnings was $1.0 billion or $1.15 per share, up 3%. Total Operating Earnings was $1.4 billion or $1.55 per share, up 12%. Adjusted net income was $1.3 billion or $1.41 per share, up 8% year-over-year. Third quarter total revenues were $5.53 billion compared to $4.79 billion, a year ago. Asset Management and S ...

Core Insights - KKR reported an increase in third-quarter revenue and profit, driven by growth in its insurance business, which compensated for declines in its asset management sector [1] Group 1: Financial Performance - The growth in KKR's insurance business was significant enough to offset the downturn in its asset management business [1] - The overall financial results indicate a positive trend for KKR despite challenges in certain areas [1]

KKR reported a rise in third-quarter profit that beat Wall Street's expectations on Friday, boosted by strong fundraising, particularly in its insurance unit and credit. ...

Financial Performance - KKR reported a GAAP net income of $0.9 billion for Q3 2025, with a year-to-date total of $1.1 billion[22]. - Total revenues for Q3 2025 were reported at $13.73 billion, a decrease from $18.62 billion in the same quarter last year[137]. - Total expenses for Q3 2025 were $13.60 billion, down from $18.01 billion year-over-year[137]. - Net Income attributable to KKR Common Stockholders was $600,550, compared to $859,927 in the previous quarter, reflecting a decline of approximately 30%[141]. - Total Operating Earnings reached $1,246,021, down from $1,395,252 in the previous quarter[142]. - Adjusted Net Income for the quarter was $1,181,503, compared to $1,273,602 in the previous quarter, indicating a decrease of about 7.2%[143]. - Total GAAP Revenues for the quarter were $4,791,696, an increase from $5,525,975 in the previous quarter[144]. - Fee Related Earnings amounted to $1,000,673, slightly down from $1,032,936 in the previous quarter[142]. - Total Segment Earnings for the quarter were $1,564,454, compared to $1,701,549 in the previous quarter, showing a decline of approximately 8%[143]. Assets Under Management (AUM) - KKR's Assets Under Management (AUM) grew to $723 billion, a 16% increase year-over-year, with Fee Paying Assets Under Management (FPAUM) also up 16% to $585 billion[25]. - Assets Under Management (AUM) reached $723.19 billion as of September 30, 2025, with new capital raised of $42.614 billion during the quarter[106]. - 52% of AUM is classified as perpetual capital or long-dated strategic investor partnerships[102]. - Fee Paying AUM increased to $585.045 billion, with new capital raised of $35.743 billion in the three months ended September 30, 2025[109]. - Performance Fee Eligible AUM reached $428 billion, up 15% year-over-year, indicating strong growth in performance fee potential[52]. Capital Raising and Investment Activity - New capital raised in Q3 2025 was $43 billion, the highest quarterly figure in over four years, contributing to a total of $128 billion raised in the LTM[9][25]. - Capital invested during Q3 2025 was $26 billion, marking the most active investment quarter in KKR's history, with LTM capital invested totaling $85 billion[25]. - Capital invested in private equity was $6 billion in the quarter and $15 billion year-to-date, primarily driven by traditional private equity in Asia and the Americas[58]. - Capital invested in real assets was $9 billion in the quarter and $19 billion year-to-date, mainly in infrastructure in the U.S. and Europe[62]. - Capital invested in credit strategies was $11 billion in the quarter and $28 billion year-to-date, with significant activity in high-grade asset-based finance and direct lending[67]. Earnings and Dividends - KKR declared a regular dividend of $0.185 per share of common stock for the quarter[25]. - Adjusted Net Income (ANI) for Q3 2025 was $1.3 billion, up 8% year-over-year, with LTM ANI at $4.6 billion, up 17% year-over-year[25]. - Management Fees rose by 16% to $3.9 billion in the last twelve months, driven by an increase in Fee Paying AUM[39]. - Total Operating Earnings increased by 15% year-over-year, primarily driven by growth in Fee Related Earnings[32]. Strategic Acquisitions and Investments - The strategic acquisition of HealthCare Royalty Partners was completed on July 30, 2025, enhancing KKR's portfolio in the biopharma sector[25][26]. - KKR secured a $2 billion investment from Japan Post Insurance in a new vehicle sponsored by Global Atlantic, aimed at expanding insurance and strategic activities[26]. Financial Position and Debt - The company reported a beginning balance of $141.222 billion in Private Equity for the three months ended September 30, 2025[109]. - The company reported net cash and investments of $6.87 billion, with outstanding debt at par totaling $9.65 billion[120]. - The average maturity of debt is approximately 16 years with an after-tax weighted average fixed coupon of 3%[123]. - KKR issued $900 million of 5.100% senior notes due 2035 and repaid $500 million of 5.500% KFM senior notes during the third quarter[129]. Market and Operational Outlook - The company faces various risks, including market volatility, geopolitical developments, and intense competition in the investment management and insurance industries[199]. - KKR's ability to raise additional capital and manage liquidity is crucial for future growth and operational stability[199]. - The integration of Global Atlantic is a key focus, with expectations for achieving intended benefits and operational synergies[200]. - KKR's forward-looking statements include expectations for growth in Assets Under Management (AUM) and the potential for future business expansion[192]. Non-GAAP Measures and Performance Assessment - The company emphasizes the importance of non-GAAP measures for assessing overall performance, with adjusted net income reflecting earnings available for distribution to equity holders[171]. - KKR's Total Segment Earnings excludes equity-based compensation charges, amortization of acquired intangibles, and transaction-related items, providing a clearer view of operational performance[176]. - KKR's Total Operating Earnings combines Fee Related Earnings, Insurance Operating Earnings, and Strategic Holdings Operating Earnings, offering insight into recurring profitability[178].

Core Insights - KKR & Co. Inc. reported its third quarter 2025 results, which are available on its Investor Center website [1] - A conference call to discuss the financial results is scheduled for November 7, 2025, at 9:00 a.m. ET, with access details provided [2][6] Company Overview - KKR is a leading global investment firm that specializes in alternative asset management, capital markets, and insurance solutions, aiming to generate attractive investment returns through a disciplined approach [3] - KKR sponsors investment funds that focus on private equity, credit, and real assets, and has strategic partners managing hedge funds [3] Recent Developments - KKR launched Galaxy Container Solutions, a global marine container leasing and financing platform, with a commitment of $500 million from KKR-managed credit funds [7] - KKR completed the acquisition of OSTTRA, a provider of post-trade solutions for the global OTC market, from S&P Global and CME Group, with a total enterprise value of $3.1 billion [8]

Core Viewpoint - KKR & Co and Singapore Telecommunications are in advanced negotiations to acquire over 80% of ST Telemedia Global Data Centres, aiming for full ownership for more than S$5 billion (approximately $3.9 billion) [1] Group 1 - The acquisition would significantly enhance KKR & Co's and Singapore Telecommunications' presence in the data center sector [1] - The deal reflects the growing demand for data center services amid increasing digitalization and cloud computing trends [1] - This transaction is part of a broader trend of consolidation in the data center industry as companies seek to scale operations and improve service offerings [1]

Earnings Reports Overview - A busy earnings week begins on Wednesday with notable companies such as Novo Nordisk A/S and McDonald's Corporation reporting pre-market [1] - Technology and semiconductor companies including Applovin Corporation, QUALCOMM Incorporated, and Arm Holdings plc are scheduled to report after market close on the same day [1] - Thursday will feature earnings from AstraZeneca PLC and ConocoPhillips pre-market, while Friday will highlight reports from Constellation Energy Corporation, KKR & Co. Inc., and Enbridge Inc, focusing on utilities and financial sectors [1] - The following Monday and Tuesday are expected to have fewer major market movers, indicating a potential slowdown in earnings announcements [1]

Group 1 - KKR & Co is enhancing its Indian insurance division while expanding in private equity, infrastructure, and credit across India [1][2] - The insurance operations are managed by Global Atlantic Financial Group, fully acquired by KKR in January 2024 [1] - KKR's insurance division made its first investment in India in June, providing $600 million in financing to Manipal Group [2] Group 2 - KKR's insurance business is also expanding in Japan and Europe, with adjusted investible assets of $197 million as of September [3] - KKR has committed $9 billion in equity investments in India since 2020, focusing on private equity and infrastructure [4] - The credit division is identified as KKR's fastest-evolving business line, with India and Japan showing the strongest performance among Asian markets [4] Group 3 - KKR manages approximately $685 billion in assets globally, with credit operations accounting for $250 billion to $300 billion [5] - The Indian business is expected to increasingly align with KKR's global profile over time [5] - KKR aims to invest between $90 billion and $100 billion globally this year [4]

Core Viewpoint - Investors are comparing Patria Investments (PAX) and KKR & Co. Inc. (KKR) to determine which stock offers better value for investment at the current time [1] Group 1: Zacks Rank and Earnings Outlook - Patria Investments has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while KKR has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, suggesting that PAX is likely experiencing a more favorable earnings outlook than KKR [3] Group 2: Valuation Metrics - PAX has a forward P/E ratio of 12.00, significantly lower than KKR's forward P/E of 23.03, indicating that PAX may be undervalued [5] - The PEG ratio for PAX is 0.81, while KKR's PEG ratio is 1.17, suggesting that PAX offers better value relative to its expected earnings growth [5] - PAX's P/B ratio is 1.5 compared to KKR's P/B of 1.58, further supporting the argument that PAX is a more attractive investment option based on valuation metrics [6] Group 3: Overall Value Assessment - Based on various valuation metrics, PAX holds a Value grade of A, while KKR has a Value grade of D, indicating that PAX is currently the superior value option [6]

Core Insights - KKR&Co's co-CEO Joe Bae announced that half of the private equity capital returned to investors this year will come from Asia, indicating a strong recovery in private equity exit activities in the region [1] - Bae emphasized that this year will be significant for KKR's liquidity business in Asia, reflecting the development of capital markets in the region [1] - KKR's Asian private equity business is currently the fastest-growing segment, presenting unique opportunities in the current environment [1] - KKR's total returns from private equity investments in Asia have exceeded $7.3 billion this year [1] Investment Activities - KKR's exit projects in Asia this year include the sale of Japanese supermarket chain Seiyu for $2.55 billion, the sale of a controlling stake in Indian JB Chemicals & Pharmaceuticals for approximately $1.4 billion, and a partial sale of its stake in South Korean shipbuilding group HD Hyundai Heavy Industries [2] - These transactions have yielded substantial returns on KKR's initial investments [2]