KKR(KKR) - 2025 Q2 - Quarterly Results

Report Overview Press Release and Company Information KKR released Q2 2025 earnings on July 31, 2025, and announced a conference call to discuss results, highlighting over 25% growth in FRE, TOE, and ANI over the past 12 months as a leading global investment firm - KKR is a leading global investment firm providing alternative asset management, capital markets, and insurance solutions[8] - The company achieved over 25% growth in Fee Related Earnings, Total Operating Earnings, and Adjusted Net Income over the past 12 months[9] Legal Disclosures and Non-GAAP Measures This report contains forward-looking statements subject to risks and uncertainties, and uses non-GAAP measures like ANI, TOE, and FRE to supplement GAAP results for overall business performance evaluation - The report contains forward-looking statements, and actual results may differ materially from expectations; past performance is not indicative of future results[15] - Non-GAAP measures such as Adjusted Net Income (ANI), Total Operating Earnings (TOE), and Fee Related Earnings (FRE) are used to supplement GAAP financial performance and assess overall business performance[16] Financial Results GAAP Results KKR reported GAAP net income attributable to common stockholders of $0.5 billion for Q2 2025 and $0.3 billion year-to-date, with total revenues of $5.089 billion and total expenses of $4.746 billion 2025 Q2 GAAP Key Financial Data | ($ in thousands, except per share data) | 2Q'24 | 2Q'25 | 2Q'24 YTD | 2Q'25 YTD | | :------------------------------------ | :---- | :---- | :-------- | :-------- | | Revenues | | | | | | Asset Management and Strategic Holdings | 1,560,449 | 1,835,166 | 3,516,917 | 3,881,081 | | Insurance | 2,611,461 | 3,253,677 | 10,311,731 | 4,317,945 | | Total Revenues | 4,171,910 | 5,088,843 | 13,828,648 | 8,199,026 | | Expenses | | | | | | Asset Management and Strategic Holdings | 1,222,960 | 1,436,234 | 2,840,929 | 3,104,134 | | Insurance | 2,723,369 | 3,310,210 | 10,418,344 | 5,473,265 | | Total Expenses | 3,946,329 | 4,746,444 | 13,259,273 | 8,577,399 | | Net Income (Loss) - KKR Common Stockholders | 667,926 | 472,387 | 1,350,140 | 286,463 | | Basic EPS | 0.75 | 0.53 | 1.52 | 0.31 | | Diluted EPS | 0.72 | 0.50 | 1.45 | 0.29 | - GAAP net income attributable to KKR & Co. Inc. common stockholders was $0.5 billion for the second quarter and $0.3 billion year-to-date[22] Key Highlights KKR's Q2 2025 saw FRE of $887 million (+17% YoY), TOE of $1.2 billion (+14% YoY), and ANI of $1.1 billion (+9% YoY), with AUM and FPAUM both growing 14% to $686 billion and $556 billion respectively 2025 Q2 Key Financial and Capital Metrics | Financial Measures | 2Q'25 | YoY Change | | :----------------- | :---- | :--------- | | Fee Related Earnings (FRE) | $887 million | +17% | | Total Operating Earnings (TOE) | $1.2 billion | +14% | | Adjusted Net Income (ANI) | $1.1 billion | +9% | | Assets Under Management (AUM) | $686 billion | +14% | | Fee Paying AUM (FPAUM) | $556 billion | +14% | | New Capital Raised | $28 billion | - | | Capital Invested | $18 billion | - | | Regular dividend | $0.185 per share | - | - Strategic acquisition of HealthCare Royalty Partners completed at quarter-end, adding approximately $3 billion in AUM and enhancing biopharmaceutical royalty and credit investment capabilities[26] Segment Earnings KKR's total segment earnings reached $1.434 billion in Q2 2025, an 11.16% year-over-year increase, driven by Fee Related Earnings, Insurance Operating Earnings, and Strategic Holdings Operating Earnings 2025 Q2 Segment Earnings Overview | ($ in thousands, except per share data) | 2Q'24 | 2Q'25 | 2Q'24 YTD | 2Q'25 YTD | | :------------------------------------ | :---- | :---- | :-------- | :-------- | | Management Fees | 847,307 | 995,763 | 1,662,634 | 1,913,097 | | Fee Related Earnings | 755,397 | 886,754 | 1,424,138 | 1,709,357 | | Insurance Operating Earnings | 253,213 | 277,932 | 526,053 | 536,704 | | Strategic Holdings Operating Earnings | 40,852 | 29,121 | 61,572 | 60,607 | | Total Operating Earnings | 1,049,462 | 1,193,807 | 2,011,763 | 2,306,668 | | Total Investing Earnings | 240,603 | 240,212 | 433,143 | 513,464 | | Total Segment Earnings | 1,290,065 | 1,434,019 | 2,444,906 | 2,820,132 | | Adjusted Net Income | 971,869 | 1,063,350 | 1,835,614 | 2,097,338 | | FRE per Adjusted Share | 0.84 | 0.98 | 1.60 | 1.90 | Total Operating Earnings Overview Total Operating Earnings (TOE), representing the more persistent and recurring portion of KKR's total segment earnings, grew 26% over the past 12 months, primarily driven by Fee Related Earnings - Total Operating Earnings (TOE) represent the more persistent and recurring portion of KKR's total segment earnings, growing 26% over the past 12 months[32] - TOE growth was primarily driven by Fee Related Earnings, with Strategic Holdings Operating Earnings expected to contribute more significantly in the future[32] Segment Performance Asset Management Segment The Asset Management segment showed strong performance in Q2 2025 with Fee Related Earnings of $887 million (+17% YoY), AUM of $686 billion, and FPAUM of $556 billion, both up 14% YoY 2025 Q2 Asset Management Segment Key Financial and Capital Metrics | ($ in thousands, except per share data) | 2Q'24 | 2Q'25 | 2Q'24 YTD | 2Q'25 YTD | | :------------------------------------ | :---- | :---- | :-------- | :-------- | | Management Fees | 847,307 | 995,763 | 1,662,634 | 1,913,097 | | Fee Related Earnings | 755,397 | 886,754 | 1,424,138 | 1,709,357 | | Total Investing Earnings | 240,603 | 240,212 | 433,143 | 513,464 | | Asset Management Segment Earnings | 996,000 | 1,126,966 | 1,857,281 | 2,222,821 | | FRE per Adjusted Share | 0.84 | 0.98 | 1.60 | 1.90 | | Total Asset Management Segment Revenues | 1,728,165 | 1,856,597 | 3,120,975 | 3,622,594 | | Assets Under Management | 601,341,000 | 685,806,000 | 601,341,000 | 685,806,000 | | Fee Paying Assets Under Management | 487,320,000 | 556,247,000 | 487,320,000 | 556,247,000 | | New Capital Raised (AUM) | 32,432,000 | 27,986,000 | 63,038,000 | 58,526,000 | | Capital Invested | 22,733,000 | 17,701,000 | 36,837,000 | 36,675,000 | | Uncalled Commitments | 107,707,000 | 115,145,000 | 107,707,000 | 115,145,000 | - Management fees grew 16% over the past 12 months to $3.7 billion, primarily driven by organic growth in Fee Paying Assets Under Management (FPAUM)[39] - Perpetual Capital reached $289 billion, a 16% year-over-year increase, accounting for 42% of AUM and 50% of FPAUM, driven by organic growth in Global Atlantic and inflows into K-Series Private Equity and Infrastructure vehicles[47] - Uncalled commitments totaled $115 billion, diversified across various investment strategies[53] 2025 Q2 Fund Investment Performance (Gross Return) | Gross Return | 2Q'25 | LTM | | :------------- | :---- | :-- | | Private Equity | | | | Traditional Private Equity Portfolio | 5% | 13% | | Real Assets | | | | Infrastructure Portfolio | 3% | 14% | | Opportunistic Real Estate Portfolio | 3% | 7% | | Credit | | | | Leveraged Credit Composite | 2% | 7% | | Alternative Credit Composite | 1% | 9% | Private Equity Private Equity AUM increased 16% to $215 billion, with $5 billion in new capital raised and $5 billion invested in Q2 2025, and traditional private equity portfolio appreciating 13% over the last 12 months 2025 Q2 Private Equity Segment Key Metrics | ($ in thousands) | 2Q'24 | 2Q'25 | 2Q'24 YTD | 2Q'25 YTD | | :--------------- | :---- | :---- | :-------- | :-------- | | Management Fees | 350,650 | 372,094 | 693,135 | 706,886 | | Realized Performance Income | 327,943 | 355,492 | 593,240 | 689,552 | | Assets Under Management | 185,265,000 | 214,576,000 | 185,265,000 | 214,576,000 | | Fee Paying Assets Under Management | 118,240,000 | 141,222,000 | 118,240,000 | 141,222,000 | | New Capital Raised (AUM) | 2,071,000 | 5,497,000 | 5,661,000 | 16,486,000 | | Capital Invested | 2,578,000 | 4,898,000 | 3,728,000 | 9,216,000 | | Uncalled Commitments | 54,925,000 | 55,194,000 | 54,925,000 | 55,194,000 | - Private Equity AUM increased 16% year-over-year to $215 billion, with $5 billion in new capital raised this quarter, primarily from North America Fund XIV and K-Series PE[59] - $5 billion in capital was invested this quarter, primarily driven by traditional private equity in the US and Europe, as well as technology and healthcare growth sectors[59] - The traditional private equity portfolio appreciated 13% over the past 12 months[59] Real Assets Real Assets AUM grew 18% to $179 billion, with $8 billion in new capital raised and $4 billion invested in Q2 2025, and infrastructure portfolio appreciating 14% over the last 12 months 2025 Q2 Real Assets Segment Key Metrics | ($ in thousands) | 2Q'24 | 2Q'25 | 2Q'24 YTD | 2Q'25 YTD | | :--------------- | :---- | :---- | :-------- | :-------- | | Management Fees | 230,085 | 310,394 | 450,172 | 590,972 | | Realized Performance Income | 124,342 | 27,404 | 124,966 | 36,771 | | Assets Under Management | 151,549,000 | 179,447,000 | 151,549,000 | 179,447,000 | | Fee Paying Assets Under Management | 126,574,000 | 150,497,000 | 126,574,000 | 150,497,000 | | New Capital Raised (AUM) | 18,023,000 | 8,239,000 | 23,881,000 | 13,461,000 | | Capital Invested | 8,245,000 | 4,286,000 | 13,701,000 | 9,846,000 | | Uncalled Commitments | 33,106,000 | 33,924,000 | 33,106,000 | 33,924,000 | - Real Assets AUM increased 18% year-over-year to $179 billion, with $8 billion in new capital raised this quarter, primarily from global infrastructure and K-Series infrastructure[63] - $4 billion in capital was invested this quarter, primarily driven by US core infrastructure, European climate transition, and diversified real estate credit and equity opportunities[63] - The infrastructure portfolio appreciated 14% over the past 12 months, and the opportunistic real estate portfolio appreciated 7%[63] Credit and Liquid Strategies Credit and Liquid Strategies AUM increased 10% to $292 billion, with $14 billion in new capital raised and $9 billion invested in Q2 2025, and leveraged credit portfolio appreciating 7% over the last 12 months 2025 Q2 Credit and Liquid Strategies Segment Key Metrics | ($ in thousands) | 2Q'24 | 2Q'25 | 2Q'24 YTD | 2Q'25 YTD | | :--------------- | :---- | :---- | :-------- | :-------- | | Management Fees | 266,572 | 313,275 | 519,327 | 615,239 | | Realized Performance Income | 30,024 | 35,954 | 35,648 | 40,447 | | Assets Under Management | 264,527,000 | 291,783,000 | 264,527,000 | 291,783,000 | | Fee Paying Assets Under Management | 242,506,000 | 264,528,000 | 242,506,000 | 264,528,000 | | New Capital Raised (AUM) | 12,338,000 | 14,250,000 | 33,496,000 | 28,579,000 | | Capital Invested | 11,910,000 | 8,517,000 | 19,408,000 | 17,613,000 | | Uncalled Commitments | 19,676,000 | 26,027,000 | 19,676,000 | 26,027,000 | - Credit and Liquid Strategies AUM increased 10% year-over-year to $292 billion, with $14 billion in new capital raised this quarter, primarily from Global Atlantic inflows, CLO issuances, asset-backed finance, and K-Series credit[68] - AUM composition includes $134 billion leveraged credit, $75 billion asset-backed finance, and $45 billion direct lending[68] - $9 billion in capital was invested this quarter, primarily active in direct lending and highly-rated asset-backed finance[68] - The leveraged credit portfolio appreciated 7% over the past 12 months, and the alternative credit portfolio appreciated 9%[68] Capital Markets and Principal Activities Capital Markets transaction fees totaled $200 million in Q2 2025, with realized investment income of $154 million, and unrealized embedded gains on the balance sheet totaling $2.8 billion at quarter-end 2025 Q2 Capital Markets Transaction Fees | ($ in thousands) | 2Q'24 | 2Q'25 | 2Q'24 YTD | 2Q'25 YTD | | :--------------- | :---- | :---- | :-------- | :-------- | | Transaction Fees | 192,100 | 199,568 | 307,818 | 428,912 | - Transaction fees totaled $200 million this quarter, with approximately half from Europe, primarily contributed by infrastructure, private equity, and third-party fees, and approximately 80% from debt products[75] 2025 Q2 Principal Activities Realized Investment Income | ($ in thousands) | 2Q'24 | 2Q'25 | 2Q'24 YTD | 2Q'25 YTD | | :--------------- | :---- | :---- | :-------- | :-------- | | Realized Investment Income | 138,546 | 153,998 | 273,299 | 371,955 | - Realized investment income was $154 million this quarter, with balance sheet investments appreciating 1% this quarter and 5% over the past 12 months[76] - Unrealized embedded gains on the balance sheet totaled $2.8 billion at quarter-end[76] Insurance Segment The Insurance segment generated $278 million in operating earnings in Q2 2025, with net investment income of $1.8 billion, and Global Atlantic's AUM totaling $201 billion, including $149 billion in credit AUM 2025 Q2 Insurance Segment Key Financial Metrics | ($ in thousands) | 2Q'24 | 2Q'25 | 2Q'24 YTD | 2Q'25 YTD | | :--------------- | :---- | :---- | :-------- | :-------- | | Net Investment Income | 1,538,046 | 1,788,525 | 3,024,465 | 3,517,868 | | Net Cost of Insurance | (1,070,616) | (1,277,381) | (2,073,943) | (2,518,603) | | General, Administrative and Other | (214,217) | (233,212) | (424,469) | (462,561) | | Insurance Operating Earnings | 253,213 | 277,932 | 526,053 | 536,704 | | Global Atlantic Book Value | 8,317,285 | 9,565,438 | 8,317,285 | 9,565,438 | - Net investment income was $1.8 billion, primarily reflecting portfolio growth due to net inflows and higher average portfolio yields[82] - Global Atlantic AUM totaled $201 billion, of which $149 billion is credit AUM[82] - Post-quarter, Japan Post Insurance announced a $2 billion investment in a new Global Atlantic sponsored vehicle[82] Strategic Holdings Segment Strategic Holdings segment earnings are primarily driven by dividends from core private equity businesses, with KKR expecting operating earnings to exceed $350 million by 2026, $700 million by 2028, and $1.1 billion by 2030 2025 Q2 Strategic Holdings Segment Earnings | ($ in thousands) | 2Q'24 | 2Q'25 | 2Q'24 YTD | 2Q'25 YTD | | :--------------- | :---- | :---- | :-------- | :-------- | | Dividends, Net | 40,852 | 29,121 | 61,572 | 60,607 | | Strategic Holdings Operating Earnings | 40,852 | 29,121 | 61,572 | 60,607 | | Net Realized Investment Income | - | - | - | - | | Strategic Holdings Segment Earnings | 40,852 | 29,121 | 61,572 | 60,607 | LTM Adjusted EBITDA by Geography and Industry (KKR's Share) | LTM Adjusted EBITDA by Geography (KKR's Share) | Percentage | | :--------------------------------------------- | :--------- | | Americas | 70% | | Europe | 25% | | Asia Pacific | 5% | | LTM Adjusted EBITDA by Industry (KKR's Share) | Percentage | | TMT | 36% | | Consumer | 28% | | Health Care | 14% | | Business Services | 13% | | Infrastructure | 9% | - KKR expects Strategic Holdings Operating Earnings to exceed $350 million by 2026, $700 million by 2028, and $1.1 billion by 2030[90] Supplemental Information Duration of Capital KKR's AUM demonstrates long-term stability, with 52% in perpetual capital or long-dated strategic investor partnerships, and 93% having an initial term of at least 8 years - 52% of AUM is perpetual capital or long-dated strategic investor partnerships, and 93% of AUM is perpetual capital or has an initial term of at least 8 years[98] Perpetual Capital and Long-Dated Strategic Investor Partnerships Growth | ($ in billions) | 2Q'24 | 2Q'25 | | :-------------- | :---- | :---- | | Perpetual Capital | $250 | $289 | | Long-Dated Strategic Investor Partnerships | $65 | $68 | | Total Strategic & Perpetual Capital | $315 | $357 | AUM and FPAUM Rollforward As of June 30, 2025, KKR's total AUM reached $685.806 billion, with $27.986 billion in new capital raised and $11.148 billion from value changes this quarter 2025 Q2 AUM Rollforward | ($ in millions) | Private Equity | Real Assets | Credit and Liquid Strategies | Total | | :-------------- | :------------- | :---------- | :--------------------------- | :---- | | Beginning Balance | 209,395 | 171,281 | 283,643 | 664,319 | | New Capital Raised | 5,497 | 8,239 | 14,250 | 27,986 | | Distributions and Other | (5,732) | (3,298) | (8,617) | (17,647) | | Change in Value | 5,416 | 3,225 | 2,507 | 11,148 | | Ending Balance | 214,576 | 179,447 | 291,783 | 685,806 | 2025 Q2 FPAUM Rollforward | ($ in millions) | Private Equity | Real Assets | Credit and Liquid Strategies | Total | | :-------------- | :------------- | :---------- | :--------------------------- | :---- | | Beginning Balance | 124,050 | 144,033 | 257,962 | 526,045 | | New Capital Raised | 18,691 | 7,382 | 12,733 | 38,806 | | Distributions and Other | (2,516) | (2,802) | (8,547) | (13,865) | | Change in Value | 997 | 1,884 | 2,380 | 5,261 | | Ending Balance | 141,222 | 150,497 | 264,528 | 556,247 | Investment Vehicle Summary KKR's investment vehicles span private equity, real assets, and credit and liquid strategies, with total committed capital of $220.582 billion for private equity, $105.935 billion for real assets, and $45.238 billion for credit and liquid strategies Private Equity Business Line Investment Vehicle Summary | ($ in millions) | Commitment | Uncalled Commitments | Invested | Realized | Remaining Cost | Remaining Fair Value | | :-------------- | :--------- | :------------------- | :------- | :------- | :------------- | :------------------- | | Total Private Equity | 220,582 | 55,132 | 173,061 | 163,156 | 100,866 | 151,443 | Real Assets Business Line Investment Vehicle Summary | ($ in millions) | Commitment | Uncalled Commitments | Invested | Realized | Remaining Cost | Remaining Fair Value | | :-------------- | :--------- | :------------------- | :------- | :------- | :------------- | :------------------- | | Total Real Assets | 105,935 | 33,275 | 74,879 | 28,321 | 59,324 | 70,602 | Credit and Liquid Strategies Business Line Investment Vehicle Summary | ($ in millions) | Commitment | Uncalled Commitments | Invested | Realized | Remaining Cost | Remaining Fair Value | | :-------------- | :--------- | :------------------- | :------- | :------- | :------------- | :------------------- | | Total Credit and Liquid Strategies | 45,238 | 16,166 | 29,314 | 20,247 | 13,880 | 15,951 | Performance Fee Eligible AUM | ($ in millions) | Uncalled Commitments | Remaining Fair Value | Total | | :-------------- | :------------------- | :------------------- | :---- | | Carried Interest Eligible | 104,573 | 237,996 | 342,569 | | Incentive Fee Eligible | - | 68,450 | 68,450 | | Total Performance Fee Eligible | 104,573 | 306,446 | 411,019 | Strong Financial Profile KKR maintains a robust financial profile with $7.084 billion in cash and short-term investments, $9.360 billion in asset management segment investments, and $7.138 billion in net cash and investments as of Q2 2025 2025 Q2 Asset Management Segment Cash and Investments | ($ in millions) | 2Q'25 | | :-------------- | :---- | | Cash and Short-term Investments | 7,084 | | Investments - Asset Management Segment | 9,360 | | Cash and Investments | 16,444 | | Outstanding Debt (at par) | 9,306 | | Net Cash and Investments | 7,138 | - KKR & Co. Inc. is rated 'A' by S&P and Fitch, with an average debt maturity of approximately 16 years and an after-tax weighted average fixed coupon rate of 3%[117] - Debt capacity includes a $2.75 billion undrawn revolving credit facility[117] - Unrealized embedded gains totaled $2.8 billion, and gross unrealized performance income totaled $9.2 billion[117] Asset Management Investment Holdings by Asset Class (Fair Value) | Asset Class | Percentage | | :---------- | :--------- | | Traditional Private Equity | 36% | | Real Estate | 15% | | Leveraged Credit | 12% | | Growth Equity | 9% | | Alternative Credit | 8% | | Energy | 6% | | Infrastructure | 5% | | Other | 9% | Dividends and Corporate Information KKR declared a Q2 2025 common stock dividend of $0.185 per share and a Series D mandatory convertible preferred stock dividend of $0.78125 per share, and issued $590 million in 6.875% subordinated notes - The Q2 2025 common stock dividend is $0.185 per share, payable on August 26, 2025[121] - The Series D mandatory convertible preferred stock dividend is $0.78125 per share, payable on September 1, 2025[122] - $590 million of 6.875% subordinated notes due 2065 were issued in the second quarter[123] Stock Summary From December 31, 2024, to July 25, 2025, KKR repurchased 1 million shares for $110 million at an average cost of $114.90 per share, with total adjusted shares at 900,511,953 as of Q2 2025 - From December 31, 2024, to July 25, 2025, KKR repurchased 1 million shares for $110 million at an average cost of $114.90 per share under its share repurchase program[125] Share Repurchase Activity and Adjusted Shares | (Amounts in millions, except per share amounts) | Inception to Date | | :-------------------------------------------- | :---------------- | | Open Market Share Repurchases | 67.4 | | Reduction of Shares for Retired Equity Awards | 26.6 | | Total Repurchased Shares and Retired Equity Awards | 94.0 | | Total Capital Used | $2,746 | | Average Price Paid Per Share | $29.20 | | Remaining Availability under Share Repurchase Plan | $459 | | Adjusted Shares | 4Q'24 | 2Q'25 | | :-------------------------------------------- | :---- | :---- | | Common Stock Outstanding | 888,232,174 | 890,938,778 | | Exchangeable Securities | 7,557,791 | 9,573,175 | | Adjusted Shares | 895,789,965 | 900,511,953 | Appendix GAAP Condensed Consolidated Income Statement The appendix provides an unaudited GAAP condensed consolidated income statement for Q2 2025 and YTD, showing total revenues of $5.089 billion and net income attributable to KKR common stockholders of $472 million 2025 Q2 GAAP Condensed Consolidated Income Statement | ($ in thousands) | 2Q'24 | 2Q'25 | 2Q'24 YTD | 2Q'25 YTD | | :--------------- | :---- | :---- | :-------- | :-------- | | Revenues | | | | | | Asset Management and Strategic Holdings | 1,560,449 | 1,835,166 | 3,516,917 | 3,881,081 | | Insurance | 2,611,461 | 3,253,677 | 10,311,731 | 4,317,945 | | Total Revenues | 4,171,910 | 5,088,843 | 13,828,648 | 8,199,026 | | Expenses | | | | | | Asset Management and Strategic Holdings | 1,222,960 | 1,436,234 | 2,840,929 | 3,104,134 | | Insurance | 2,723,369 | 3,310,210 | 10,418,344 | 5,473,265 | | Total Expenses | 3,946,329 | 4,746,444 | 13,259,273 | 8,577,399 | | Net Income (Loss) - KKR Common Stockholders | 667,926 | 472,387 | 1,350,140 | 286,463 | Reconciliation of GAAP to Non-GAAP Measures This section details reconciliations between GAAP and non-GAAP measures, including shares, ANI, total segment earnings, TOE, FRE, adjusted EBITDA, total asset management segment revenues, Global Atlantic book value, cash, investments, and debt GAAP to Non-GAAP Shares Reconciliation (Unaudited) | | 2Q'24 | 3Q'24 | 4Q'24 | 1Q'25 | 2Q'25 | | :------------------------------------------ | :---- | :---- | :---- | :---- | :---- | | GAAP Shares of Common Stock Outstanding | 887,439,098 | 887,448,993 | 888,232,174 | 888,250,332 | 890,938,778 | | Adjustments: | | | | | | | Exchangeable Securities | 7,005,071 | 6,996,738 | 7,557,791 | 8,208,839 | 9,573,175 | | Adjusted Shares | 894,444,169 | 894,445,731 | 895,789,965 | 896,459,171 | 900,511,953 | GAAP Net Income to Adjusted Net Income Reconciliation | ($ in thousands) | 2Q'24 | 2Q'25 | 2Q'24 YTD | 2Q'25 YTD | | :--------------- | :---- | :---- | :-------- | :-------- | | Net Income (Loss) - KKR Common Stockholders | 667,926 | 472,387 | 1,350,140 | 286,463 | | Income (Loss) Before Tax (GAAP) | 1,210,205 | 1,528,768 | 2,573,256 | 2,299,835 | | Adjusted Net Income | 971,869 | 1,063,350 | 1,835,614 | 2,097,338 | | Total Segment Earnings | 1,290,065 | 1,434,019 | 2,444,906 | 2,820,132 | | Total Operating Earnings | 1,049,462 | 1,193,807 | 2,011,763 | 2,306,668 | | Fee Related Earnings | 755,397 | 886,754 | 1,424,138 | 1,709,357 | GAAP Total Revenues to Total Asset Management Segment Revenues Reconciliation | ($ in thousands) | 2Q'24 | 2Q'25 | 2Q'24 YTD | 2Q'25 YTD | | :--------------- | :---- | :---- | :-------- | :-------- | | Total GAAP Revenues | 4,171,910 | 5,088,843 | 13,828,648 | 8,199,026 | | Insurance GAAP Revenues | (2,611,461) | (3,253,677) | (10,311,731) | (4,317,945) | | Total Asset Management Segment Revenues | 1,728,165 | 1,856,597 | 3,120,975 | 3,622,594 | Global Atlantic Book Value, Cash, Investments, and Debt Reconciliation | ($ in thousands) | 2Q'25 | | :--------------- | :---- | | Global Atlantic Book Value | 9,565,438 | | Cash and Short-term Investments | 7,083,841 | | Investments - Asset Management Segment | 9,360,072 | | Outstanding Debt (at par) | 9,306,000 | Important Information - Endnotes The endnotes provide detailed explanations for specific terms, data sources, and calculation methodologies used in the report, including definitions for perpetual capital, AUM/FPAUM changes, fund investment performance, and insurance/strategic holdings segment metrics - Perpetual Capital refers to components of AUM with an indefinite term, without a preset requirement to return invested capital to investors, though it may decrease or terminate due to valuation changes, investor withdrawals, or termination of management agreements[145] - Changes in Assets Under Management (AUM) and Fee Paying Assets Under Management (FPAUM) include redemptions by fund investors and net changes in certain fund fee bases[158][159] - Traditional Private Equity Portfolio excludes investments in growth equity or core private equity funds; Infrastructure Portfolio excludes investments in core infrastructure funds or global climate funds[147][150] Important Information - Non-GAAP and Other Measures This section defines KKR's non-GAAP and operational performance measures, such as ANI, total segment earnings, TOE, FRE, insurance operating earnings, strategic holdings operating earnings, total investing earnings, and total asset management segment revenues - Adjusted Net Income (ANI) is a measure of KKR's profitability, used to assess business operating performance and measure earnings potentially distributable to equity holders or reinvested[164] - Total Operating Earnings (TOE) is the sum of Fee Related Earnings, Insurance Operating Earnings, and Strategic Holdings Operating Earnings, representing the most recurring forms of earnings across KKR's segments[169] - Definitions and calculation methodologies for Assets Under Management (AUM) and Fee Paying Assets Under Management (FPAUM), along with the meaning of uncalled commitments, aim to provide insight into KKR's capital raising and deployment activities[173][174] Important Information - Other Legal Disclosures This section covers KKR website information, entity liability, disclaimers against investment advice, past performance warnings, and detailed risk factors for forward-looking statements, emphasizing potential material differences from expectations - The KKR website serves as a channel for important company information, but website content does not constitute part of the report[177] - Past performance does not guarantee future results, and investment return information is solely for illustrating KKR's investment experience and strategies[181] - Forward-looking statements involve expectations regarding future business growth, financial condition, non-GAAP metrics, future performance of the Strategic Holdings segment, and other strategic initiatives, but are subject to various risks and uncertainties that may cause actual results to differ materially from expectations[183][186][190]