KKR(KKR)2025-05-01 13:00Financial Data and Key Metrics Changes - Fee related earnings per share increased to 1.24 per share, up 16% year over year [4] - Adjusted net income reached 917 million, up 13% year over year, driven by fundraising and deployment activities [5] - Total fee related revenues amounted to 259 million, in line with expectations [26] - Strategic holdings operating earnings were 348 million, and realized investment income was 566 million in monetization activity, up nearly 40% year over year [10] - The private equity portfolio increased by 4% in the quarter and 11% over the last twelve months [10] Market Data and Key Metrics Changes - The company raised 22 billion, compared to 117 billion, with asset-based finance growing between 35% and 40% year over year [71] Company Strategy and Development Direction - The company aims to leverage its diversified business model to source attractive investment opportunities globally [13] - Focus on capital raising efforts remains strong, with no changes to targets despite market volatility [21] - The strategic holdings segment is viewed as a differentiator, with ongoing acquisitions to enhance the portfolio [8] - The company is committed to evolving its insurance strategy to include longer-duration assets, aiming for a pretax ROE of over 20% [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating current market volatility, emphasizing the importance of a global and diversified approach [34] - The company anticipates continued investment opportunities despite potential delays in some sale processes [36] - There is optimism regarding monetization activity, with a record gross unrealized performance income of 0.74 per share on an annualized basis, marking the sixth consecutive year of dividend increases [12] - The firm has 116 billion of committed but uncalled capital, providing stability and visibility for future management fees [30] Q&A Session Summary Question: Impact of the emerging trade war on Asia business - Management indicated no change to strategy, emphasizing lessons learned from past experiences with tariffs and supply chain issues [45] Question: Resilience of private wealth flows - Management noted that strong relative performance and low adoption rates could drive future growth in private wealth [49] Question: Why not increase share buybacks given stock performance? - Management reiterated a consistent capital allocation strategy focused on maximizing long-term earnings per share and quality of earnings [61] Question: Update on asset-backed finance platform - Management highlighted significant growth in asset-based finance, with a healthy deployment of over 4 billion in Q1 [74] Question: Expectations for flagship fundraising in 2025 - Management expects a barbell approach to fundraising, with significant capital coming in at initial and final closes [107]