KKR(KKR)2024-10-24 10:49Financial Performance - KKR reported GAAP Net Income of 1.5 billion in Q3 2023, and 4.79 billion, up 44% from 1.2 billion in Q3 2024, reflecting a 53% increase year-over-year[9]. - Total Operating Earnings (TOE) for Q3 2024 were 767 million in Q3 2023[10]. - KKR's total segment earnings for Q3 2024 were 1.07 billion in Q3 2023[10]. - KKR's share of adjusted revenues from 18 businesses was 654.6 million for Q3 2024, down from 1,235,503, up from 1,315,021, a significant increase from 2,004,690 for Q3'24, compared to 624 billion, an 18% increase from the previous year[9]. - Assets Under Management (AUM) reached 24 billion of organic new capital raised in the quarter[17]. - Fee Paying AUM increased to 25 billion of organic new capital raised in the last twelve months[17]. - Global Atlantic's assets under management (AUM) totaled 140 billion in credit AUM[31]. - Total assets under management reached 107.6 billion in uncalled commitments[44]. Capital Raising and Investments - New Capital Raised in Q3 2024 was 118 billion year-to-date[9]. - New capital raised in the Private Equity segment was 190 billion, a 10% year-over-year growth[21]. - The Real Assets segment saw AUM increase by 31% year-over-year to 34 billion raised year-to-date[22]. - Capital invested in the Credit and Liquid Strategies segment was 271 billion, an 18% year-over-year growth[23]. - Total Private Equity commitments amount to 21,689 million invested and 0.175 per share of common stock was declared for Q3 2024[9]. - Fee Related Earnings (FRE) reached 3.1 billion[9]. - Fee Related Earnings per Adjusted Share rose to 0.63 in 3Q'23[12]. - KKR's investment in asset management segment generated $1.1 billion in fees and other income for Q3 2024[52]. Strategic Developments - KKR increased its ownership in Global Atlantic to 100% at the beginning of 2024, enhancing its financial results[11]. - The company is focused on expanding its market presence through strategic partnerships and acquisitions, including the acquisition of Global Atlantic[76]. - The firm believes that providing non-GAAP measures is helpful for stockholders in assessing overall business performance[67]. Risks and Challenges - KKR's future performance is subject to various risks and uncertainties, which could cause actual results to differ from forward-looking statements[76]. - The company reported high variability in earnings and cash flow, with potential impacts from geopolitical developments and market conditions[79]. - KKR's investment activities are subject to risks such as historical returns not being indicative of future results and dependence on significant leverage in investments[79]. - The company may experience challenges in recruiting and retaining key personnel, which is critical for executing growth strategies[79]. Non-GAAP Measures - KKR's adjusted revenue and adjusted EBITDA are used to monitor the operating performance of the businesses, reflecting a steady state growth profile of the underlying portfolio[65]. - KKR's non-GAAP measures, including adjusted net income and total segment earnings, are presented to provide a clearer view of operational performance without the impact of non-operating items[67]. - Total Segment Earnings excludes equity-based compensation, amortization of acquired intangibles, and transaction-related items, providing a supplemental measure of operating performance[69].