KKR Q4 Earnings Beat on Higher Revenues & AUM, Expenses Rise Y/Y

Core Insights - KKR reported fourth-quarter 2024 adjusted net income per share of $1.32, exceeding the Zacks Consensus Estimate of $1.27, and up from $1 in the prior-year quarter [1] - For the full year 2024, adjusted net income per share was $3.46, missing the Zacks Consensus Estimate of $3.54, and down from $4.14 in the previous year [2] Financial Performance - Net income attributable to the company (GAAP basis) for the fourth quarter was $1.12 billion, an increase of 8.2% year over year [3] - For 2024, net income attributable to the company (GAAP basis) was $3.08 billion, reflecting a decline of 16.4% year over year [3] - Total segment revenues for the fourth quarter reached $1.26 billion, up 17% year over year, surpassing the Zacks Consensus Estimate of $1.23 billion [4] - Full-year revenues were $4.8 billion, a 23.9% increase year over year, beating the Zacks Consensus Estimate of $4.74 billion [4] - Total segment expenses rose 3.7% year over year to $412 million [4] Assets Under Management (AUM) - As of December 31, 2024, total AUM grew 15.3% year over year to $637.6 billion, with fee-paying AUM at $512 billion, a 14.7% increase from the previous year [5] Earnings Growth - Total operating earnings increased by 19.5% year over year to $1.1 billion, driven by growth in fee-related earnings [6] - Fee-related earnings were $843 million, up 24.8% year over year, primarily due to growth in management fees and capital markets transaction fees [6] Strategic Outlook - KKR is expected to continue leveraging lucrative investment opportunities supported by its efficient fund-raising capabilities [7] - The significant growth in fee-related earnings and total operating earnings is enhancing the company's financial position, although elevated expenses are anticipated due to global expansion [7]