KKR(US:KKR)2025-11-07 11:50Financial Performance - KKR reported a GAAP net income of $0.9 billion for Q3 2025, with a year-to-date total of $1.1 billion[22]. - Total revenues for Q3 2025 were reported at $13.73 billion, a decrease from $18.62 billion in the same quarter last year[137]. - Total expenses for Q3 2025 were $13.60 billion, down from $18.01 billion year-over-year[137]. - Net Income attributable to KKR Common Stockholders was $600,550, compared to $859,927 in the previous quarter, reflecting a decline of approximately 30%[141]. - Total Operating Earnings reached $1,246,021, down from $1,395,252 in the previous quarter[142]. - Adjusted Net Income for the quarter was $1,181,503, compared to $1,273,602 in the previous quarter, indicating a decrease of about 7.2%[143]. - Total GAAP Revenues for the quarter were $4,791,696, an increase from $5,525,975 in the previous quarter[144]. - Fee Related Earnings amounted to $1,000,673, slightly down from $1,032,936 in the previous quarter[142]. - Total Segment Earnings for the quarter were $1,564,454, compared to $1,701,549 in the previous quarter, showing a decline of approximately 8%[143]. Assets Under Management (AUM) - KKR's Assets Under Management (AUM) grew to $723 billion, a 16% increase year-over-year, with Fee Paying Assets Under Management (FPAUM) also up 16% to $585 billion[25]. - Assets Under Management (AUM) reached $723.19 billion as of September 30, 2025, with new capital raised of $42.614 billion during the quarter[106]. - 52% of AUM is classified as perpetual capital or long-dated strategic investor partnerships[102]. - Fee Paying AUM increased to $585.045 billion, with new capital raised of $35.743 billion in the three months ended September 30, 2025[109]. - Performance Fee Eligible AUM reached $428 billion, up 15% year-over-year, indicating strong growth in performance fee potential[52]. Capital Raising and Investment Activity - New capital raised in Q3 2025 was $43 billion, the highest quarterly figure in over four years, contributing to a total of $128 billion raised in the LTM[9][25]. - Capital invested during Q3 2025 was $26 billion, marking the most active investment quarter in KKR's history, with LTM capital invested totaling $85 billion[25]. - Capital invested in private equity was $6 billion in the quarter and $15 billion year-to-date, primarily driven by traditional private equity in Asia and the Americas[58]. - Capital invested in real assets was $9 billion in the quarter and $19 billion year-to-date, mainly in infrastructure in the U.S. and Europe[62]. - Capital invested in credit strategies was $11 billion in the quarter and $28 billion year-to-date, with significant activity in high-grade asset-based finance and direct lending[67]. Earnings and Dividends - KKR declared a regular dividend of $0.185 per share of common stock for the quarter[25]. - Adjusted Net Income (ANI) for Q3 2025 was $1.3 billion, up 8% year-over-year, with LTM ANI at $4.6 billion, up 17% year-over-year[25]. - Management Fees rose by 16% to $3.9 billion in the last twelve months, driven by an increase in Fee Paying AUM[39]. - Total Operating Earnings increased by 15% year-over-year, primarily driven by growth in Fee Related Earnings[32]. Strategic Acquisitions and Investments - The strategic acquisition of HealthCare Royalty Partners was completed on July 30, 2025, enhancing KKR's portfolio in the biopharma sector[25][26]. - KKR secured a $2 billion investment from Japan Post Insurance in a new vehicle sponsored by Global Atlantic, aimed at expanding insurance and strategic activities[26]. Financial Position and Debt - The company reported a beginning balance of $141.222 billion in Private Equity for the three months ended September 30, 2025[109]. - The company reported net cash and investments of $6.87 billion, with outstanding debt at par totaling $9.65 billion[120]. - The average maturity of debt is approximately 16 years with an after-tax weighted average fixed coupon of 3%[123]. - KKR issued $900 million of 5.100% senior notes due 2035 and repaid $500 million of 5.500% KFM senior notes during the third quarter[129]. Market and Operational Outlook - The company faces various risks, including market volatility, geopolitical developments, and intense competition in the investment management and insurance industries[199]. - KKR's ability to raise additional capital and manage liquidity is crucial for future growth and operational stability[199]. - The integration of Global Atlantic is a key focus, with expectations for achieving intended benefits and operational synergies[200]. - KKR's forward-looking statements include expectations for growth in Assets Under Management (AUM) and the potential for future business expansion[192]. Non-GAAP Measures and Performance Assessment - The company emphasizes the importance of non-GAAP measures for assessing overall performance, with adjusted net income reflecting earnings available for distribution to equity holders[171]. - KKR's Total Segment Earnings excludes equity-based compensation charges, amortization of acquired intangibles, and transaction-related items, providing a clearer view of operational performance[176]. - KKR's Total Operating Earnings combines Fee Related Earnings, Insurance Operating Earnings, and Strategic Holdings Operating Earnings, offering insight into recurring profitability[178].