[Report Overview](index=1&type=section&id=Report%20Overview) [Press Release and Company Information](index=3&type=section&id=Press%20Release%20and%20Company%20Information) 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](index=8&type=chunk) - The company achieved over **25% growth** in Fee Related Earnings, Total Operating Earnings, and Adjusted Net Income over the past 12 months[9](index=9&type=chunk) [Legal Disclosures and Non-GAAP Measures](index=5&type=section&id=Legal%20Disclosures%20and%20Non-GAAP%20Measures) 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](index=15&type=chunk) - 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](index=16&type=chunk) [Financial Results](index=7&type=section&id=Financial%20Results) [GAAP Results](index=9&type=section&id=GAAP%20Results) 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](index=22&type=chunk) [Key Highlights](index=11&type=section&id=Key%20Highlights) 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](index=26&type=chunk) [Segment Earnings](index=13&type=section&id=Segment%20Earnings) 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](index=15&type=section&id=Total%20Operating%20Earnings%20Overview) 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](index=32&type=chunk) - TOE growth was primarily driven by Fee Related Earnings, with Strategic Holdings Operating Earnings expected to contribute more significantly in the future[32](index=32&type=chunk) [Segment Performance](index=17&type=section&id=Segment%20Performance) [Asset Management Segment](index=19&type=section&id=Asset%20Management%20Segment) 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](index=39&type=chunk) - 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](index=47&type=chunk) - Uncalled commitments totaled **$115 billion**, diversified across various investment strategies[53](index=53&type=chunk) 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](index=29&type=section&id=Private%20Equity) 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](index=59&type=chunk) - **$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](index=59&type=chunk) - The traditional private equity portfolio appreciated **13%** over the past 12 months[59](index=59&type=chunk) [Real Assets](index=31&type=section&id=Real%20Assets) 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](index=63&type=chunk) - **$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](index=63&type=chunk) - The infrastructure portfolio appreciated **14%** over the past 12 months, and the opportunistic real estate portfolio appreciated **7%**[63](index=63&type=chunk) [Credit and Liquid Strategies](index=33&type=section&id=Credit%20and%20Liquid%20Strategies) 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](index=68&type=chunk) - AUM composition includes **$134 billion** leveraged credit, **$75 billion** asset-backed finance, and **$45 billion** direct lending[68](index=68&type=chunk) - **$9 billion** in capital was invested this quarter, primarily active in direct lending and highly-rated asset-backed finance[68](index=68&type=chunk) - The leveraged credit portfolio appreciated **7%** over the past 12 months, and the alternative credit portfolio appreciated **9%**[68](index=68&type=chunk) [Capital Markets and Principal Activities](index=35&type=section&id=Capital%20Markets%20and%20Principal%20Activities) 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 **$200 million** this quarter, with approximately half from Europe, primarily contributed by infrastructure, private equity, and third-party fees, and approximately **80%** from debt products[75](index=75&type=chunk) 2025 Q2 Principal Activities Realized Investment Income | ($ 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](index=76&type=chunk) - Unrealized embedded gains on the balance sheet totaled **$2.8 billion** at quarter-end[76](index=76&type=chunk) [Insurance Segment](index=39&type=section&id=Insurance%20Segment) 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](index=82&type=chunk) - Global Atlantic AUM totaled **$201 billion**, of which **$149 billion** is credit AUM[82](index=82&type=chunk) - Post-quarter, Japan Post Insurance announced a **$2 billion** investment in a new Global Atlantic sponsored vehicle[82](index=82&type=chunk) [Strategic Holdings Segment](index=43&type=section&id=Strategic%20Holdings%20Segment) 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 **$1.1 billion** by 2030[90](index=90&type=chunk) [Supplemental Information](index=45&type=section&id=Supplemental%20Information) [Duration of Capital](index=47&type=section&id=Duration%20of%20Capital) KKR's AUM demonstrates long-term stability, with 52% in perpetual capital or long-dated strategic investor partnerships, and 93% having an initial term of at least 8 years - **52% of AUM** is perpetual capital or long-dated strategic investor partnerships, and **93% of AUM** is perpetual capital or has an initial term of at least 8 years[98](index=98&type=chunk) Perpetual Capital and Long-Dated Strategic Investor Partnerships Growth | ($ 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](index=49&type=section&id=AUM%20and%20FPAUM%20Rollforward) 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](index=53&type=section&id=Investment%20Vehicle%20Summary) 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](index=59&type=section&id=Strong%20Financial%20Profile) 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](index=117&type=chunk) - Debt capacity includes a **$2.75 billion** undrawn revolving credit facility[117](index=117&type=chunk) - Unrealized embedded gains totaled **$2.8 billion**, and gross unrealized performance income totaled **$9.2 billion**[117](index=117&type=chunk) 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](index=61&type=section&id=Dividends%20and%20Corporate%20Information) 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](index=121&type=chunk) - The Series D mandatory convertible preferred stock dividend is **$0.78125 per share**, payable on September 1, 2025[122](index=122&type=chunk) - **$590 million** of 6.875% subordinated notes due 2065 were issued in the second quarter[123](index=123&type=chunk) [Stock Summary](index=63&type=section&id=Stock%20Summary) 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](index=125&type=chunk) 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](index=65&type=section&id=Appendix) [GAAP Condensed Consolidated Income Statement](index=67&type=section&id=GAAP%20Condensed%20Consolidated%20Income%20Statement) 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](index=69&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) 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](index=77&type=section&id=Important%20Information%20-%20Endnotes) 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](index=145&type=chunk) - 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](index=158&type=chunk)[159](index=159&type=chunk) - 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](index=147&type=chunk)[150](index=150&type=chunk) [Important Information - Non-GAAP and Other Measures](index=81&type=section&id=Important%20Information%20-%20Non-GAAP%20and%20Other%20Measures) 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](index=164&type=chunk) - 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](index=169&type=chunk) - 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](index=173&type=chunk)[174](index=174&type=chunk) [Important Information - Other Legal Disclosures](index=87&type=section&id=Important%20Information%20-%20Other%20Legal%20Disclosures) 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](index=177&type=chunk) - Past performance does not guarantee future results, and investment return information is solely for illustrating KKR's investment experience and strategies[181](index=181&type=chunk) - 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](index=183&type=chunk)[186](index=186&type=chunk)[190](index=190&type=chunk)

Core Viewpoint - Starbucks China has experienced a performance rebound, with Q3 FY2025 showing an 8% year-on-year revenue growth to $790 million and a 2% increase in same-store sales, marking a significant recovery from a previous 14% decline in Q3 FY2024 [1][4]. Group 1: Same-Store Sales and Revenue Growth - Same-store sales in Starbucks China have returned to growth after four consecutive quarters of decline, with a 2% year-on-year increase in the latest quarter [2][4]. - The growth is attributed to a 6% increase in same-store transaction volume, despite a 4% decline in same-store average ticket price [5][6]. - Product innovation, integrated marketing activities, and the expansion of delivery services have been key drivers of this growth [6][8]. Group 2: Market Expansion and Store Strategy - As of Q3 FY2025, Starbucks China has a total of 7,828 stores, with a net increase of 522 stores year-on-year, including 70 new stores in the latest quarter [9][10]. - The company has focused on expanding into lower-tier cities, with 50% of new stores in FY2024 located in third-tier cities and below [10][11]. - Localized strategies, such as introducing region-specific products and culturally themed store designs, have enhanced customer engagement and sales performance in new markets [11][13]. Group 3: Capital Movements and Partnership Strategy - Starbucks China is actively seeking strategic partners, with over 20 potential partners expressing interest in acquiring a stake in the business [14][15]. - The company aims to retain a significant equity stake, potentially around 30%, while looking for partners that share its mission and can operate efficiently in the local market [14][15]. - Notable potential partners include Hillhouse Capital, KKR, and Meituan, all of which have experience in the food and beverage sector [14][15]. Group 4: Competitive Landscape and Challenges - Despite the positive financial results, Starbucks China faces challenges from a competitive market, with local brands aggressively expanding and driving prices down [17][19]. - Competitors like Luckin Coffee and others are rapidly increasing their store counts, intensifying the competition in both lower-tier and higher-tier markets [18][19]. - The company must navigate these pressures while maintaining its brand positioning and adapting to market pricing dynamics [19].

Core Insights - Danaher Corporation is recognized as a "king of mergers and acquisitions" with a remarkable track record of 400 acquisitions over 40 years, yielding an 1800-fold return on investment [1][12][23] - The company has evolved from a real estate trust to a diversified global leader, focusing primarily on the healthcare sector, with a market capitalization exceeding $200 billion [6][27][31] Group 1: Company Overview - Danaher was founded in 1984 by Steven and Mitchell Rales, originally as a real estate trust, and has since transformed into a major player in various industries, including healthcare and life sciences [6][24] - The company maintains a low profile but owns well-known brands such as Leica Microsystems and Pantone, and has been a key supplier of purification equipment during the COVID-19 pandemic [6][7] Group 2: Financial Performance - Danaher has outperformed Berkshire Hathaway in stock price performance over the past 40 years, achieving an average annual compound return of 22% from 1984 to 2019, significantly surpassing the S&P 500 index [9][10][12] - The company reported nearly 100,000% total shareholder return since its inception, while the S&P 500 returned just over 4,000% during the same period [9][10] Group 3: M&A Strategy - Danaher has completed approximately 400 acquisitions, investing around $90 billion, and has created significant shareholder value through these transactions, with an estimated total value of $250 billion when including spun-off companies [12][13] - The company’s approach to mergers not only increases size but also enhances operational efficiency, allowing it to find multiple growth avenues [13][24] Group 4: Management and Operational Excellence - Danaher employs a unique management system known as DBS (Danaher Business System), which has proven effective in integrating acquired companies and improving their operational performance [15][17] - The company’s operational metrics have shown consistent improvement, with revenue growing from under $1 billion in 1990 to approximately $31.5 billion in 2022, reflecting a compound annual growth rate of about 12% [28][29] Group 5: Leadership Development - Danaher is recognized as a breeding ground for CEOs, having successfully transitioned through multiple leadership changes while maintaining strong performance [19][20] - The company has produced numerous executives who have gone on to lead other major firms, demonstrating its influence in the corporate leadership landscape [20][21]

Core Viewpoint - Starbucks reported a total net revenue of approximately $9.456 billion for the reporting period, representing a year-on-year growth of 3.8%, while net profit attributable to shareholders fell by 47.1% to $558 million [1]. Financial Performance - Global comparable store sales decreased by 2%, and the global operating margin was 10.1% [1]. - In the Chinese market, same-store sales grew by 2%, with transaction volume increasing by 6%, but the average transaction value declined by 4% [3]. Strategic Moves in China - Starbucks is seeking strategic partners to sell part of its stake in the Chinese market, aiming to retain a significant portion of ownership [2][3]. - The valuation of Starbucks' Chinese business is reported to be as high as $10 billion, attracting nearly 30 private equity firms [3]. - Potential buyers include major domestic players and well-known investment firms, with Starbucks emphasizing the need for partners who can provide resources or expertise for growth in China [3]. Market Challenges - Starbucks faces increasing competition from local coffee brands like Luckin Coffee and Koolearn, which have surpassed Starbucks in revenue and store count [3]. - The coffee market in China is experiencing rapid growth, with a significant increase in per capita coffee consumption [3]. Changes in Business Strategy - Starbucks has increased its marketing efforts, including collaborations with popular brands and a price reduction on several key products, marking the first official price cut in 25 years [10]. - The company is also enhancing its "third space" concept by introducing free study rooms in some locations, aiming to differentiate itself from competitors [10]. - Starbucks is undergoing self-transformation to adapt to the evolving consumer preferences and competitive landscape in the Chinese coffee market [10]. Store Expansion - As of the end of the third quarter, Starbucks operated 7,828 stores in China, making it the third-largest brand in terms of store count in the Chinese coffee market, with 70 new stores opened in the quarter [8].

Financial Data and Key Metrics Changes - Consolidated revenue for Q2 decreased by 19%, primarily due to a planned reduction in motorcycle shipments and soft demand [10][26] - Consolidated operating income was $112 million, reflecting a 69% decline at HDMC [27] - Earnings per share for Q2 was $0.88, with global retail sales down 15% year over year [27][28] - Cash and cash equivalents at the end of Q2 were $1.6 billion, down $261 million from the previous year [47][48] Business Line Data and Key Metrics Changes - HDMC revenue decreased by 23% in Q2, driven by a 28% decline in motorcycle shipments [34] - HDFS revenue was $257 million, a decrease of 2%, while operating income was $70 million, also down 2% [43][44] - LiveWire reported an operating loss of $19 million, an improvement from a $28 million loss in the prior year [46] Market Data and Key Metrics Changes - North American retail sales were down 17%, while international markets saw a 12% decline [27][28] - In Asia Pacific, retail sales decreased by 21% due to intense competition [31] - The U.S. cruiser category experienced a 6% volume growth, increasing market share to 53% [32] Company Strategy and Development Direction - The company entered strategic partnerships with KKR and PIMCO for HDFS, enhancing flexibility and reducing overall leverage [4][6] - Plans to reduce debt by $450 million and accelerate a $1 billion share buyback program [9][50] - Introduction of new entry-level products and a small displacement motorcycle targeting a price below $6,000 [20][19] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing economic uncertainty and elevated interest rates impacting customer purchasing behavior [10][11] - There is cautious optimism regarding future trade agreements that may mitigate operational impacts [14] - Management expects a significant improvement in retail performance in July, with positive trends anticipated for the remainder of the year [67][68] Other Important Information - The company plans to implement a new efficiency program leveraging technology, including AI, to drive cost savings [11] - The global tariff environment remains uncertain, with an estimated full-year impact from tariffs projected between $50 million and $85 million [42] Q&A Session Summary Question: What are the components used to calculate the 1.75 times book value marker for the HDFS transaction? - The calculation is based on the proceeds from KKR and PIMCO's equity investment relative to the post-transaction book value of HDFS [52][54] Question: What is driving the underlying profitability of HDFS, and what is the normalized profitability expected in 2026? - The profitability has improved due to stabilization in used values and better repossession rates, with normalized earnings expected to be around $240 million to $250 million annually [56][65] Question: How does the company feel about current dealer inventories and the target for year-end? - The company expects a significant reduction in dealer inventory, targeting a double-digit decline by year-end [73] Question: Why was the 4.9% equity sale the right level, and are there any tax ramifications? - The 4.9% limit is due to regulatory requirements from the FDIC, and the $1.25 billion figure is a pretax amount [78][82] Question: Is there any guarantee of growth in retail sales or receivables associated with the HDFS transaction? - There are no guarantees regarding growth rates or loss levels associated with the transaction [89]

Q2 2025 Performance - Harley-Davidson diluted EPS was $0.88[6] - HDMC operating income margin was 5.9%[6] - HDMC revenue decreased by 23% year-over-year[6] - Global motorcycle shipments decreased by 28%, primarily due to planned dealer inventory reduction[6] - Global motorcycle retail sales decreased by 15% year-over-year[6] - Global dealer inventories decreased by 28% compared to Q2 '24[6, 21] - The cost of new or increased tariffs implemented in '25 was $13 million in Q2 '25[6] - HDFS operating income margin was 27.1%[6] HDFS Transaction - Strategic partners valued the HDFS business at approximately 1.75x post-transaction book value[7, 11, 14] - HDFS agreed to sell a 4.9% common equity interest to investment vehicles managed by KKR and PIMCO[7] - HDFS will sell approximately two-thirds of HDFS future retail loan originations at a premium on an annual basis for five years[7, 14, 55, 58] - The transaction unlocks $1.25 billion in discretionary cash, representing approximately 40% of current Harley-Davidson market capitalization[7] - HDFS agreed to sell over $5 billion of existing gross consumer retail loan receivables and residual interests in securitized consumer loan receivables at a premium[7, 14, 55] - HDFS expects to use a portion of the proceeds to reduce indebtedness to optimize its post-transaction capital structure[7] Financial Outlook & Capital Allocation - HDFS transaction is expected to generate ~$1B of available cash and allow for ~$1.25B distribution to H-D from HDFS[14, 67] - The company intends to use available cash for share buyback of $500M, HDI debt reduction of $450M and reinvestment in HDMC[14, 66]

Exclusive: KKR is set to acquire a majority stake in HealthCare Royalty Partners, pushing the investment firm further into the healthcare industry https://t.co/CPp4UB0YGi ...

Fundraising - KKR 为资产支持融资募集了约 65 亿美元资金 [1] - 这是该公司迄今为止规模最大的信贷融资 [1]

A KKR unit is raising $2 billion from one of Japan’s largest life insurers, as the industry seeks to boost returns through new types of investment https://t.co/0T5ojZU0uP ...

A firm backed by KKR has bought Gulf Capital PJSC’s stake in its Middle Eastern fertility business, underscoring the rising demand for specialty medical services in the region https://t.co/TKUIgOofgp ...