Alternative fund manager KKR & Co reported a 58% jump in adjusted net income for the third quarter of 2024, driven by record fee-related income, as well as earnings from its insurance business.
The New York-based firm said on Thursday adjusted net income (ANI) rose to $1.2 billion in the July-September quarter, or $1.38 per adjusted share. That was ahead of the average analyst estimate of $1.21, according to LSEG data.
KKR achieved its highest-ever fee-related earnings of $1 billion, up 79% from the previous year. This growth was driven by fees generated from managing $624 billion in total assets, an 18% increase year-over-year, along with transaction fees from its capital markets business.
For the quarter, KKR reported a record total operating earnings of $1.3 billion, a 71% year-over-year increase. This metric includes fee-related earnings from its asset management business, returns from long-term private equity holdings, and profits from its Global Atlantic insurance division.
The firm’s fee-paying assets under management (AUM) rose by 19% to $506 billion.
KKR raised $24 billion in new capital during the quarter, up from $14 billion same quarter last year.
Its private equity portfolio appreciated by 5% in the quarter, infrastructure funds gained 6% and opportunistic real estate funds rose 2%.
It also deployed $24 billion in investments, up from $9 billion one year ago, and declared a quarterly dividend of 17.5 cents.
KKR announced a series of deals in the last few months, including the acquisition of Varsity Brands, a maker of sports uniforms and school yearbooks, for about $4.75 billion, with the deal closing in August.
It reached a deal to take education software platform Instructure Holdings private for $4.8 billion. KKR also offloaded half of its position in Kokusai Electric.
