KKR(US:KKR)2025-05-01 10:50Financial Performance - KKR reported a GAAP net income attributable to common stockholders of $(0.2) billion for Q1 2025, compared to $2.2 billion in the last twelve months (LTM) [22]. - Total revenues for Q1 2025 were $15.3 billion, a decrease from $21.0 billion in the LTM, with asset management and strategic holdings revenues at $7.3 billion [23]. - Total Operating Earnings (TOE) for Q1 2025 were $1.1 billion, a 16% increase year-over-year, with LTM TOE at $4.5 billion, up 32% year-over-year [25]. - Adjusted Net Income for 1Q'25 was $4,372.5 million, compared to $3,184.6 million in 1Q'24 [28]. - KKR's adjusted net income for 1Q'25 was $1,033,988, up from $863,745 in 1Q'24, showing an increase of approximately 19.7% [134]. - KKR's net income attributable to KKR common stockholders for 1Q'25 was $(185,924), compared to $682,214 in 1Q'24, indicating a significant loss [131]. - Total expenses for 1Q'25 were $15,503,871, compared to $18,811,466 in 1Q'24, reflecting a decrease of about 17.3% [130]. - The company reported net investment income of $6,837,986 for 1Q'25, an increase from $5,734,107 in 1Q'24, representing a growth of about 19.3% [130]. Revenue and Earnings Growth - Fee Related Earnings (FRE) for Q1 2025 were $823 million, up 23% year-over-year, with LTM FRE at $3.4 billion, up 37% year-over-year [25]. - Total Segment Earnings for 1Q'25 were $5,740.8 million, compared to $4,329.9 million in 1Q'24 [28]. - Fee Related Earnings reached $3,421.7 million for the last twelve months (LTM), up from $2,503.9 million in the previous LTM [36]. - Management Fees increased by 15% to $3,563.4 million in the LTM, supported by an increase in Fee Paying AUM [39]. - Total Asset Management Segment Revenues for the last twelve months (LTM) were $7,495,227, showing a significant increase from $5,676,328 [138]. Assets Under Management (AUM) - Assets Under Management (AUM) reached $664 billion, reflecting a 15% increase year-over-year, while Fee Paying Assets Under Management (FPAUM) were $526 billion, up 12% year-over-year [25]. - Performance Fee Eligible AUM increased by 16% year-over-year to $398 billion [52]. - Total AUM increased from $637.6 billion to $664.3 billion over the three months ended March 31, 2025, a growth of approximately 4.2% [101]. - The change in value for total AUM was $9.16 billion, driven by positive market performance across various asset classes [101]. - KKR's Assets Under Management (AUM) includes the fair value of investments, uncalled capital commitments, and the asset value of Global Atlantic insurance companies, totaling significant capital raising activities [172]. Capital Raising and Investments - KKR raised $31 billion in new capital during Q1 2025 and $114 billion in the LTM, with $19 billion capital invested in Q1 and $88 billion in the LTM [25]. - New Capital Raised in the quarter was $30.6 billion, contributing to a total of $113.6 billion in the LTM [37]. - The company raised $97.24 billion in new capital over the twelve months ended March 31, 2025, showcasing strong investor interest [104]. - KKR's capital allocation-based income for 1Q'25 was $3,454,447, down from $3,657,361 in 1Q'24, a decrease of approximately 5.6% [130]. - The company reported $10.8 billion in Uncalled Commitments across various investment strategies, indicating strong future investment potential [145]. Dividends and Share Repurchase - A regular dividend of $0.185 per share was declared for the quarter, representing a 6% increase on an annualized basis from the 2024 dividend [26]. - The company declared a dividend of $0.185 per share of common stock for Q1 2025, payable on May 27, 2025 [122]. - The share repurchase plan was increased by $500 million, with $462 million remaining available as of April 25, 2025 [127]. - The average price paid per share for share repurchases was $114.91, with a total of $107 million used to repurchase 0.9 million shares from December 31, 2024, to April 25, 2025 [125]. Strategic Initiatives and Future Outlook - KKR launched its first two public-private fixed income solutions for individual investors in April 2025, with plans for additional equity-oriented strategies in 2026 [25]. - Strategic Holdings Segment Earnings are expected to exceed $350 million by 2026, $700 million by 2028, and $1.1 billion by 2030, driven by strong operating performance and recent acquisitions [89]. - The company is focused on expanding into new investment strategies and geographic markets to enhance growth opportunities [189]. - KKR's Strategic Holdings segment is expected to contribute to future growth, with anticipated dividend payments from its companies [182]. Risks and Challenges - The company faces various risks, including market volatility, competition, and regulatory changes that could impact its business operations [188]. - KKR's ability to successfully integrate Global Atlantic and achieve its growth strategies is crucial for future performance [188]. - The company acknowledges that actual results may differ materially from forward-looking statements due to numerous uncertainties [185]. - KKR's reliance on third-party service providers and the potential impact of cybersecurity risks are significant concerns [189].