KKR & Co., Inc. (NYSE:KKR) Q1 2022 Earnings Conference Call May 3, 2022 10:00 AM ET Company Participants Craig Larson - IR Scott Nuttall - Co-CEO Robert Lewin - CFO Conference Call Participants Alex Blostein - Goldman Sachs Michael Cyprys - Morgan Stanley Glenn Schorr - Evercore ISI Bill Katz - Citigroup Brian Mckenna - JMP Securities Patrick Davitt - Autonomous Research Craig Siegenthaler - Bank of America Merrill Lynch Brian Bedell - Deutsche Bank Rufus Hone - BMO Capital Markets Chris Kotowski - Oppenhei ...

Investment Overview - KKR has completed over 650 private equity investments with a total transaction value exceeding $675 billion as of December 31, 2021[22]. - Approximately 90% of KKR's assets under management (AUM) consists of capital that is not subject to redemption for at least 8 years from inception, referred to as perpetual capital[30]. - KKR and its employees have approximately $26.9 billion invested in or committed to its own funds and portfolio companies, including $11.1 billion funded from its balance sheet[31]. - The firm aims to generate attractive investment returns through a patient and disciplined investment approach, employing world-class people[21]. - KKR's balance sheet serves as a significant source of capital for business growth and expansion, aligning interests with fund investors[22]. - The firm operates in two segments: asset management and insurance, with the latter beginning in the first quarter of 2021[27]. - The company focuses on long-term appreciation through controlling ownership or strategic minority positions in companies[32]. - The firm has expanded its investment strategies from traditional private equity to include leveraged credit, infrastructure, energy, and real estate[22]. Assets Under Management (AUM) - As of December 31, 2021, the Private Markets business line had $257.0 billion in Assets Under Management (AUM)[32]. - The AUM consisted of $153.3 billion in private equity, $83.3 billion in real assets, and $20.4 billion in other related strategies[32]. - The growth in AUM from 2005 to 2021 shows a significant increase from $19.7 billion to $257.0 billion[35]. - The AUM growth chart indicates a steady increase over the years, highlighting the company's expanding market presence[34]. - The definition of AUM was amended in 2015 to include KKR's pro rata portion of AUM managed by strategic partners and capital commitments eligible for fees or carried interest[36]. Investment Performance - From inception in 1976 to December 31, 2021, the investment funds generated a cumulative gross IRR of 25.6%[41]. - The S&P 500 Index achieved a gross IRR of 12.1% over the same period, while the MSCI World Index achieved 9.5%[41]. - Total investments amount to $221.029 billion, with a gross IRR of 25.6% and a net IRR of 18.9%[42]. - Legacy funds have a total invested capital of $16.475 billion, generating a total value of $50.269 billion, resulting in a gross IRR of 26.1%[42]. - The 1984 Fund has a commitment of $1 billion and a total value of $5.964 billion, achieving a gross IRR of 34.5%[42]. - The 1996 Fund shows a commitment of $6.012 billion with a total value of $12.477 billion, yielding a gross IRR of 18.0%[42]. - The Americas Fund XII has a commitment of $13.5 billion, with a total value of $30.784 billion, reflecting a gross IRR of 50.1%[42]. Private Equity Funds - KKR's private equity funds typically have a finite life of 10 to 12 years, with investment periods lasting up to six years[59]. - The general partner of KKR's private equity funds is entitled to a carried interest of 20% of net profits realized by limited partners, subject to a performance hurdle of 7% compounded annually[60]. - KKR has raised over 30 private equity funds, leveraging a global network and industry knowledge to attract world-class management teams[44]. - KKR's core investments strategy targets lower-risk investments with longer holding periods, focusing on stability and lower leverage compared to traditional private equity investments[47]. Global Atlantic Overview - Global Atlantic, acquired on February 1, 2021, serves approximately three million policyholders and offers a range of retirement and life insurance products[23]. - KKR owns a 61.5% economic interest in Global Atlantic, which operates as a separate business with its existing brands and management team[117]. - Global Atlantic generated $7.5 billion in sales for the year ended December 31, 2021, with total retirement products sales amounting to $7,267 million[120][130]. - Global Atlantic's investment portfolio as of December 31, 2021, had a carrying value of $125.7 billion, with fixed maturity securities making up 56.1% of the total[143]. Risk Factors - The company warns that difficult market conditions could negatively impact net income and cash flow[41]. - The report includes risk factors related to business and asset management that could affect financial prospects[41]. - Market conditions may lead to declines in equity, debt, and commodity markets, potentially causing write-downs of investments to as low as 67% of original cost during downturns[211]. - Unfavorable market conditions may reduce opportunities for the company and its funds to make and exit investments, leading to lower-than-expected returns[212]. - Changes in tax laws and regulatory restrictions may hinder the ability to find suitable investments or secure financing on attractive terms[212]. Regulatory Environment - Global Atlantic's U.S. insurance subsidiaries are regulated under U.S. federal and state laws, with primary regulators located in their state of domicile[183]. - The subsidiaries must prepare financial statements on regulatory capital in accordance with statutory financial accounting and report on risk management and corporate governance[184]. - The Bermuda Monetary Authority regulates Global Atlantic's subsidiaries in Bermuda, imposing solvency, capital, and liquidity standards[194]. - The company faces risks from difficult market conditions, which can adversely affect investment values and capital raising abilities[209].

KKR & Co, Inc. (NYSE:KKR) Q4 2021 Earnings Conference Call February 8, 2022 10:00 AM ET Company Participants Craig Larson - Partner and Head, IR Robert Lewin - CFO Scott Nuttall - Co-CEO & Director Conference Call Participants Alexander Blostein - Goldman Sachs Group Robert Lee - KBW William Katz - Citigroup Glenn Schorr - Evercore ISI Gerald O'Hara - Jefferies Craig Siegenthaler - Bank of America Merrill Lynch Brian Mckenna - JMP Securities Brian Bedell - Deutsche Bank Michael Cyprys - Morgan Stanley Finia ...

KKR & Co, Inc. (NYSE:KKR) Q3 2021 Earnings Conference Call November 2, 2021 10:00 AM ET Company Participants Craig Larson - Partner and Head, IR Robert Lewin - CFO Scott Nuttall - Co-CEO & Director Conference Call Participants Alexander Blostein - Goldman Sachs Group William Katz - Citigroup Glenn Schorr - Evercore ISI Robert Lee - KBW Brian Bedell - Deutsche Bank Gerald O'Hara - Jefferies Brian Mckenna - JMP Securities Michael Cyprys - Morgan Stanley Operator Ladies and gentlemen, thank you for standing by ...

Financial Data and Key Metrics Changes - The quarter reported record fundraising, deployment, and monetization activity, with fee-related earnings per share at $0.53 and after-tax distributable earnings per share at $1.05, both record figures for the company [3][14] - Management fees increased over 40% year-over-year to $480 million, contributing to a 68% increase in fee-related earnings [3][11] - Assets under management (AUM) reached $429 billion, up over 90% year-over-year and up 17% since the last quarter [4][10] - Book value per share is now $27.03, with net cash and investments per share increasing to $17 from $12 a year ago [4][15] Business Line Data and Key Metrics Changes - Fundraising highlights include $59 billion of new capital raised, with significant contributions from North America Private Equity, Global Infrastructure, and Core Private Equity strategies [5][6] - Infrastructure AUM increased to $38 billion from $14.5 billion a year ago, while Core Private Equity AUM rose to $28 billion from $12 billion [7][10] - Real estate AUM grew to $32 billion from $11 billion a year ago, indicating strong growth across various strategies [10] Market Data and Key Metrics Changes - Perpetual capital now constitutes 30% of AUM, with a new multi-asset class partnership bringing that figure to 43% [9] - The company raised $5 billion in its open-ended core infrastructure strategy, bringing AUM in that area to $7 billion [8] Company Strategy and Development Direction - The company is focused on expanding its product offerings, particularly in the retail market, and has seen significant engagement in private wealth and retail channels [18][34] - The firm is at an inflection point with multiple growth opportunities across strategies and geographies, aiming to continue growing AUM, revenues, and profits [19][20] - The integration of Global Atlantic is proceeding well, with expectations for continued organic growth alongside new blocks [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in exceeding previous fundraising expectations and highlighted the quality of capital raised, with 98% having a contractual life of over eight years [17][24] - The firm anticipates a robust fundraising pipeline over the next 12 months, with a focus on innovative strategies to scale businesses efficiently [10][20] Other Important Information - The company reported a total realization activity of just under $1 billion for the quarter, with diversified performance across multiple funds and geographies [13][16] - The firm has $21 billion of cash and investments on its balance sheet, providing a strong foundation for future growth [9] Q&A Session Summary Question: Update on fundraising and management fees - Management noted that the fundraising exceeded expectations and they feel optimistic about achieving the $100 billion target over the next couple of years [22][24] Question: Overlap between core PE and opportunistic funds - Management indicated that there is limited overlap between core and opportunistic funds, allowing for an expanded investor base [25][28] Question: Future FRE margin and dividend policy - Management expects to see margin expansion over time, aiming for mid-60s margins, and plans to evaluate dividend policy annually with expectations for modest increases [72][74] Question: Regular flow from Global Atlantic - Management estimated an annual flow of $8 billion to $10 billion from Global Atlantic, excluding block activity, with additional growth opportunities in institutional business [63][66] Question: Deployment and realizations off the balance sheet - Deployment was $800 million off the balance sheet, with realizations at approximately $900 million for the quarter [76][77]

KKR & Co. Inc. (NYSE:KKR) Q1 2021 Earnings Conference Call May 4, 2021 10:00 AM ET Company Participants Craig Larson - Head, Investor Relations Scott Nuttall - Co-President and Co-COO Rob Lewin - Chief Financial Officer Conference Call Participants Glenn Schorr - Evercore ISI Alex Blostein - Goldman Sachs Craig Siegenthaler - Credit Suisse Devin Ryan - JMP Securities Mike Carrier - Bank of America Chris Harris - Wells Fargo Gerry O’Hara - Jefferies Michael Cyprus - Morgan Stanley Robert Lee - KBW Operator L ...