Group 1 - KKR-backed Musinsa is considering an IPO with a potential valuation of approximately 10 trillion KRW (about 7.2 billion USD) [1] - Musinsa operates two major online fashion platforms in South Korea, "Musinsa" for the general public and "29cm" focused on female users, with monthly active users of approximately 7 million and 3 million respectively [1] - The global platform launched in 2022 has seen a remarkable annual transaction growth rate of 260%, with monthly active users exceeding 3 million as of April 2025 [1] Group 2 - Musinsa is projected to achieve a 25% sales growth in 2024, reaching 1.2 trillion KRW, and is expected to turn a profit with an operating profit of 102.8 billion KRW [2] - The positive momentum is expected to continue into the first quarter of 2025, with an operating profit of 17.6 billion KRW reported [2] - The earliest potential listing for Musinsa could occur in 2026, either in South Korea or the United States [2]

Core Viewpoint - KKR has successfully launched its first onshore RMB fund in Shanghai, marking a significant milestone in its commitment to the Chinese market and reflecting the growing interest of foreign capital in Chinese assets [3][4][7]. Fund Details - The fund, named Kaide Shipu (Shanghai) Private Investment Fund Partnership (Limited Partnership), was established in June 2025 and registered in Shanghai's Pudong district, focusing on equity investments in RMB [5][6]. - The fund management is handled by Kaide Private Fund Management (Shanghai) Co., Ltd., backed by KKR, with notable limited partners including Ping An Capital and the TPC family office from Singapore [6][7]. Market Context - The A-share market has recently surpassed a total market capitalization of 100 trillion yuan for the first time, indicating a robust market environment that is attracting foreign investment [3][14]. - There is a notable influx of foreign private equity firms establishing operations in China, with several new fund management companies registered in 2023, highlighting the increasing appeal of the Chinese market [13]. KKR's Investment Strategy - KKR's investment strategy focuses on mature industries with stable competitive landscapes, aiming for companies with strong pricing power and potential for operational efficiency improvements [10]. - Despite a decrease in the number of investments in recent years due to pricing discrepancies between buyers and sellers, KKR believes that there are more acquisition opportunities now than in the past [10]. Recent Acquisitions - KKR is actively pursuing acquisitions in China, including the recent approval for the acquisition of shares in Yuanjing International, associated with the popular Da Yao soda brand [10][11]. - The firm is also competing in the bidding for Starbucks' business in China, indicating its aggressive stance in the market [10]. Foreign Investment Sentiment - There is a growing recognition among global investors that the best assets are in China, with a significant increase in interest in Chinese technology companies and innovative pharmaceuticals [14][15]. - The sentiment reflects a broader trend of foreign capital seeking to capitalize on China's vast consumer market and supply chain capabilities [15].

Group 1 - KKR's first onshore RMB fund has been officially established in Shanghai's Lingang New Area, marking a significant milestone for foreign institutions accelerating their investment in RMB funds [1][2] - The fund has a current scale of approximately 400 million RMB, with a diverse lineup of limited partners including major domestic institutions and international asset management giants [2] - Lingang is emerging as a key hub for foreign institutions to engage deeply in China's capital market, leveraging its advantages in openness, systems, and policies [2] Group 2 - KKR, founded in 1976, is a leading global investment firm with an asset management scale of about 686 billion USD as of June 30, 2025 [2] - The establishment of RMB funds by foreign entities like KKR is expected to facilitate the connection between global capital and China's economic and industrial upgrade needs [2]

Core Insights - Soros Fund Management has completely exited positions in AstraZeneca and JPMorgan Chase during the second quarter, indicating a strategic shift in investment focus [1] - The fund has increased its holdings in Nvidia, Snowflake, and KKR, suggesting a bullish outlook on these technology and investment firms [1] - There has been a reduction in positions in Alphabet (Google) and Goldman Sachs, reflecting a cautious approach towards these companies [1] Company Summaries - **AstraZeneca**: Soros Fund Management has fully liquidated its investment in AstraZeneca, signaling a potential reevaluation of the pharmaceutical sector [1] - **JPMorgan Chase**: The complete exit from JPMorgan Chase indicates a significant change in the fund's banking sector strategy [1] - **Nvidia**: Increased investment in Nvidia highlights confidence in the company's growth prospects, particularly in the semiconductor and AI sectors [1] - **Snowflake**: The decision to boost holdings in Snowflake suggests optimism regarding its cloud data platform and market position [1] - **KKR**: The increase in KKR shares indicates a positive outlook on private equity and alternative investment strategies [1] - **Alphabet (Google)**: The reduction in Alphabet shares may reflect concerns over regulatory pressures and market competition [1] - **Goldman Sachs**: A decrease in Goldman Sachs holdings suggests a cautious stance on investment banking and financial services [1]

Core Insights - KKR & Co. Inc. has shown strong performance over the past year, with a gain of over 30% [1] - The company's growth has been supported by rising market levels, which have positively impacted its assets under management (AUM) [1] - Recent regulatory actions have increased optimism regarding potential fund flows, contributing to the rise in share prices [1] Company Performance - KKR's stock performance reflects a significant increase, attributed to favorable market conditions [1] - The increase in AUM is a direct result of the overall market uptrend, enhancing the company's financial standing [1] Market Sentiment - Regulatory developments have fostered a more positive outlook for the company, suggesting potential for increased investment inflows [1]

Core Viewpoint - Spectris plc reported a robust performance in the first half of 2025, with growth in orders and sales, alongside significant cost savings from efficiency initiatives. The board has recommended shareholders accept KKR's acquisition offer of £41.75 per share, which includes a declared interim dividend of 28 pence [1][3][20]. Financial and Operational Summary - Orders increased by 5% year-on-year, with a notable 15% growth in the second quarter [2][3]. - Sales grew by 8% year-on-year, with a 20% increase in the second quarter [3]. - Cost savings from the efficiency program exceeded £10 million in the first half, with expectations to surpass £30 million for the full year [3][6]. - Adjusted operating profit stood at £65.6 million, flat compared to the previous year, while statutory operating profit was £24.8 million, a 3% increase [3][27]. - Net debt was reported at £546 million, with a target leverage ratio of 1 to 2 times by the end of 2025 [3][6]. Acquisition Progress - KKR's acquisition proposal timeline includes: - June 5, 2025: KKR's initial proposal was rejected by the board [8]. - June 9, 2025: Advent made a conditional cash offer of £37.63 per share [9]. - June 23, 2025: Advent's offer was accepted, initiating exclusive due diligence [10]. - July 2, 2025: KKR submitted a revised offer of £40.00 per share [14]. - August 5, 2025: KKR's final offer of £41.75 per share was made, which the board recommended [18][20]. - Shareholder vote scheduled for August 27, 2025, with expected completion of the transaction in Q1 2026 [21][22]. Strategic Developments - The CEO highlighted the successful strategic transformation since 2018, focusing on high-growth, high-margin business segments [5][24]. - The efficiency program is on track to deliver over £30 million in cost savings, with two-thirds expected in the second half of 2025 [6][26]. - The integration of recent acquisitions is yielding significant synergies, enhancing revenue potential and operational efficiency [26][50]. Financial Performance Breakdown - Total orders for the first half reached £646.3 million, with a 5% year-on-year increase [28]. - Sales for the first half were £636.1 million, reflecting an 8% increase [27][28]. - The adjusted operating margin was 10.3%, with a cash conversion rate of 126% [27][47]. - The performance varied by sector, with strong growth in academic and materials sectors, while automotive and semiconductor sectors faced declines [29][30][42]. Regional and Sector Analysis - Orders in Europe and North America decreased, but growth in Asia partially offset this decline [31]. - Sales performance showed slight growth in Europe and Asia, while North America experienced a minor decline [32][34]. - The Spectris Scientific segment saw a 17% increase in orders and a 21% increase in sales, while the Spectris Dynamics segment experienced a 3% decline in orders [36][42].

[PART I — FINANCIAL INFORMATION](index=6&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) This section details KKR's financial performance, condition, and management's analysis for the period ended June 30, 2025 [Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) KKR's unaudited condensed consolidated financial statements as of June 30, 2025, reflect significant asset growth and increased revenues, presented with a two-tiered approach for clarity - KKR presents its financial statements using a two-tiered approach, separating the Insurance operations (Global Atlantic) from the Asset Management and Strategic Holdings businesses. This is done to provide a more informative view, given the distinct characteristics and significance of each business, particularly the policy liabilities of the insurance segment[58](index=58&type=chunk) [Condensed Consolidated Statements of Financial Condition](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Condition) The statements detail KKR's assets, liabilities, and equity, showing significant growth in total assets driven by both Asset Management and Insurance segments Condensed Consolidated Statements of Financial Condition (Unaudited) | Key Metrics | June 30, 2025 (In Thousands) | December 31, 2024 (In Thousands) | | :--- | :--- | :--- | | **Total Assets** | **$380,867,573** | **$360,099,411** | | *Asset Management and Strategic Holdings Assets* | $134,252,009 | $122,517,378 | | *Insurance Assets* | $246,615,564 | $237,582,033 | | **Total Liabilities** | **$309,899,128** | **$298,114,719** | | *Asset Management and Strategic Holdings Liabilities* | $61,510,960 | $57,906,939 | | *Insurance Liabilities* | $248,388,168 | $240,207,780 | | **Total KKR & Co. Inc. Stockholders' Equity** | **$28,219,229** | **$23,651,568** | | **Total Equity** | **$68,974,847** | **$60,399,515** | - Total assets of consolidated Variable Interest Entities (VIEs) were **$131.8 billion** as of June 30, 2025, up from **$122.4 billion** at December 31, 2024. These VIEs primarily consist of collateralized financing entities (CFEs), certain investment funds, and VIEs formed by Global Atlantic. The assets and liabilities of these VIEs are generally non-recourse to other KKR entities[29](index=29&type=chunk)[30](index=30&type=chunk)[32](index=32&type=chunk) [Condensed Consolidated Statements of Operations](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The statements present KKR's revenues, expenses, and net income for the three and six months ended June 30, 2025, highlighting growth in total revenues Condensed Consolidated Statements of Operations (Unaudited) | (In Thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | **$5,088,843** | **$4,171,910** | **$8,199,026** | **$13,828,648** | | *Asset Management & Strategic Holdings* | $1,835,166 | $1,560,449 | $3,881,081 | $3,516,917 | | *Insurance* | $3,253,677 | $2,611,461 | $4,317,945 | $10,311,731 | | **Total Expenses** | **$4,746,444** | **$3,946,329** | **$8,577,399** | **$13,259,273** | | **Income (Loss) Before Taxes** | **$1,528,768** | **$1,210,205** | **$2,299,835** | **$2,573,256** | | **Net Income (Loss)** | **$1,354,464** | **$993,236** | **$2,038,962** | **$2,087,086** | | **Net Income (Loss) Attributable to KKR & Co. Inc. Common Stockholders** | **$472,387** | **$667,926** | **$286,463** | **$1,350,140** | | **Diluted EPS** | **$0.50** | **$0.72** | **$0.29** | **$1.45** | [Notes to Financial Statements (Unaudited)](index=19&type=section&id=Notes%20to%20Financial%20Statements%20(Unaudited)) This section provides detailed disclosures and explanations supporting the condensed consolidated financial statements [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=118&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management provides an in-depth analysis of KKR's financial condition and operating results across its segments, highlighting key performance drivers and the prevailing business environment - KKR operates through three reportable segments: Asset Management, Insurance (Global Atlantic), and Strategic Holdings. The chief operating decision-makers use segment earnings to allocate resources and assess performance[287](index=287&type=chunk)[289](index=289&type=chunk) Total Segment Earnings Summary | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Asset Management Segment Earnings | $1,126,966 | $996,000 | | Insurance Operating Earnings | $277,932 | $253,213 | | Strategic Holdings Segment Earnings | $29,121 | $40,852 | | **Total Segment Earnings** | **$1,434,019** | **$1,290,065** | [Business Environment](index=133&type=section&id=Business%20Environment) This section describes the macroeconomic conditions and market trends influencing KKR's operations during the second quarter of 2025 - In Q2 2025, the U.S. economy expanded with real GDP growth of **3.0%**, while inflation remained persistent. The Federal Reserve held the federal funds rate target at **4.25% to 4.50%**. The Eurozone saw moderate GDP growth, and the European Central Bank lowered its deposit rate to **2.0%**[421](index=421&type=chunk)[422](index=422&type=chunk)[426](index=426&type=chunk) - Global equity markets showed positive returns in Q2 2025, with the S&P 500 up **10.9%** and the MSCI World Index up **11.6%**. Market volatility, as measured by the VIX, decreased from **22.3 to 16.7** during the quarter[425](index=425&type=chunk) - Elevated market volatility and uncertainty continued, driven by geopolitical and global trade concerns, including the imposition of tariffs by the United States and retaliation from trading partners since April 2025[425](index=425&type=chunk) [Analysis of Segment Operating Results](index=160&type=section&id=Analysis%20of%20Segment%20Operating%20Results) This section details the operating performance of KKR's Asset Management, Insurance, and Strategic Holdings segments for the quarter Asset Management Segment Operating Results (Q2) | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Fee Related Earnings | $886,754 | $755,397 | | Realized Performance Income | $418,850 | $482,309 | | Realized Investment Income | $153,998 | $138,546 | | **Asset Management Segment Earnings** | **$1,126,966** | **$996,000** | Insurance Segment Operating Results (Q2) | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net Investment Income | $1,788,525 | $1,538,046 | | Net Cost of Insurance | ($1,277,381) | ($1,070,616) | | **Insurance Operating Earnings** | **$277,932** | **$253,213** | Strategic Holdings Segment Operating Results (Q2) | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Dividends, Net | $29,121 | $40,852 | | **Strategic Holdings Segment Earnings** | **$29,121** | **$40,852** | [Analysis of Non-GAAP Performance Measures](index=172&type=section&id=Analysis%20of%20Non-GAAP%20Performance%20Measures) This section provides an analysis of KKR's non-GAAP financial measures, including Total Segment Earnings and Adjusted Net Income, to assess underlying business performance Non-GAAP Performance Measures (Q2) | (In thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total Operating Earnings | $1,193,807 | $1,049,462 | | Total Investing Earnings | $240,212 | $240,603 | | **Total Segment Earnings** | **$1,434,019** | **$1,290,065** | | **Adjusted Net Income (ANI)** | **$1,063,350** | **$971,869** | - Total Operating Earnings increased by **$144.3 million** YoY for Q2 2025, driven by higher Fee Related Earnings and Insurance Operating Earnings[619](index=619&type=chunk)[620](index=620&type=chunk) - Adjusted Net Income (ANI) increased to **$1.06 billion** in Q2 2025 from **$972 million** in Q2 2024, primarily due to higher total segment earnings[619](index=619&type=chunk)[623](index=623&type=chunk) [Liquidity and Capital Resources](index=192&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses KKR's sources and uses of liquidity, capital structure, and financial flexibility - KKR's primary sources of liquidity include operating activities, realizations on carried interest and investments, cash inflows from its insurance business, and borrowings under various credit facilities and debt offerings[725](index=725&type=chunk) - As of June 30, 2025, KKR had unfunded commitments of **$10.5 billion** to its investment funds and vehicles, and **$0.3 billion** in capital markets commitments[313](index=313&type=chunk)[314](index=314&type=chunk) - A dividend of **$0.185 per common share** was declared for Q2 2025. As of July 25, 2025, approximately **$459 million** remained available under the company's share repurchase program[344](index=344&type=chunk)[305](index=305&type=chunk) - As of June 30, 2025, approximately **$521 million** of carried interest was subject to clawback obligations, assuming all applicable funds were liquidated at their current fair values[320](index=320&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=198&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes to its market risks during the second quarter of 2025, referring to its Annual Report for comprehensive details - There were no material changes to KKR's market risks during the three months ended June 30, 2025[825](index=825&type=chunk) [Controls and Procedures](index=198&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - Management concluded that as of June 30, 2025, the company's disclosure controls and procedures were effective at a reasonable assurance level[827](index=827&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[828](index=828&type=chunk) [PART II — OTHER INFORMATION](index=199&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) This section provides additional information including legal proceedings, risk factors, equity sales, and exhibits [Legal Proceedings](index=199&type=section&id=Item%201.%20Legal%20Proceedings) KKR is involved in various legal proceedings incidental to its business, with detailed information provided in the notes to financial statements - The company refers to Note 24 "Commitments and Contingencies" for a detailed discussion of its legal proceedings[830](index=830&type=chunk) [Risk Factors](index=199&type=section&id=Item%201A.%20Risk%20Factors) The company reports no material changes to its risk factors beyond those discussed in the Business Environment section of the MD&A - There were no material changes to the risk factors disclosed in the company's Annual Report, aside from those discussed in the Business Environment section[831](index=831&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=199&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details KKR's share repurchase activities and the status of its equity award retirements and repurchase program during the quarter Share Repurchases in Q2 2025 | Period | Total Shares Purchased | Average Price Paid Per Share ($) | | :--- | :--- | :--- | | April 2025 | 36,411 | $92.32 | | May 2025 | — | $— | | June 2025 | — | $— | | **Total Q2 2025** | **36,411** | **$92.32** | - The share repurchase program was automatically increased by **$500 million** during Q2 2025 after the remaining available amount fell below the **$50 million** threshold. As of July 25, 2025, approximately **$459 million** remained available for repurchases[833](index=833&type=chunk)[835](index=835&type=chunk) [Defaults Upon Senior Securities](index=200&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) Not applicable [Mine Safety Disclosures](index=200&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Not applicable [Other Information](index=200&type=section&id=Item%205.%20Other%20Information) Not applicable [Exhibits](index=200&type=section&id=Item%206.%20Exhibits) This section provides a comprehensive list of all exhibits filed as part of the report, including key corporate and financial documents - The report includes exhibits such as the Indenture for the **6.875% Subordinated Notes due 2065**, CEO and CFO certifications pursuant to Sarbanes-Oxley Sections 302 and 906, and interactive data files (XBRL)[839](index=839&type=chunk)

Group 1 - The U.S. President Donald Trump is set to sign an executive order allowing private equity, cryptocurrencies, and other alternative assets to be included in 401(k) retirement plans [1] - The order will instruct the U.S. Department of Labor to reassess guidelines regarding alternative asset investments in retirement plans [1] - The Labor Secretary Lori Chavez-DeRemer will coordinate with the SEC, Treasury, and other federal regulators to determine if rule modifications are necessary [1] Group 2 - The executive order aims to alleviate concerns among plan managers about offering illiquid and complex financial products to retirement plan participants [1] - Currently, most fixed contribution plans primarily consist of stocks and bonds [1] - Asset management firms view the new regulations for 401(k) plans as a growth opportunity, especially since many institutional investors have reached their private equity investment limits [1] Group 3 - Companies that may benefit from the new 401(k) regulations include Blackstone (BX.US), KKR (KKR.US), Apollo Global Management (APO.US), and BlackRock (BLK.US) [1]

Group 1 - KKR is acquiring UK instrument giant Spectris for £4.2 billion, with a total enterprise value of £4.8 billion (approximately $6.4 billion) [1] - Spectris accepted KKR's offer of £41.75 per share, withdrawing support for Advent's previous offer of £41 per share [1] - Following the announcement, Spectris's stock rose by 1.7% in early trading [1] Group 2 - The acquisition battle for Spectris reflects a broader trend of increasing merger and acquisition activity in the European market, signaling positive changes [3] - The competition between private equity firms for Spectris has been ongoing for over a month, starting with Advent's initial bid in June [4] - The interest in high-quality UK assets is driven by relatively low valuation levels and a stable market environment, attracting international buyers [4] Group 3 - Despite challenges from U.S. tariff policies earlier in the year, the pace of acquisitions for UK companies has noticeably accelerated [4] - According to Dealogic, the global M&A market has rebounded strongly, with total transaction value reaching $2.6 trillion in the first seven months of the year, the highest since the peak during the pandemic in 2021 [4]

Group 1 - KKR has announced a long-term strategic partnership with Harley-Davidson's financial services company, HDFS, with a transaction value of $5 billion (approximately 36 billion RMB) [1] - Harley-Davidson has faced declining sales among younger consumers, prompting the company to sell its financial services division [5][6] - The sale of HDFS is part of Harley-Davidson's strategy to reduce its financial burden amid a significant drop in motorcycle sales and revenue [5][6] Group 2 - KKR's recent financial performance shows a 17% increase in management fee income to $887 million, with adjusted net income reaching $1.1 billion [8] - KKR raised $28 billion (over 200 billion RMB) in the last three months, increasing its total assets under management to $686 billion [8] - KKR's investment strategy remains active, with significant capital allocated to various sectors, including a focus on the Asian market [9][10]