KKR & Co. Inc. (KKR) Bundle
A Brief History of KKR
As of 2024, KKR & Co. Inc. continues to be a significant player in the global investment landscape, primarily focusing on private equity, credit, and real assets. The company's financial performance has shown resilience and growth amidst various market conditions, with substantial increases in assets under management (AUM) across its business lines.
Financial Performance Overview
For the nine months ended September 30, 2024, KKR reported total revenues of $18.62 billion, a notable increase from $10.07 billion in the same period of the previous year. The net income attributable to KKR & Co. Inc. was $1.95 billion, compared to $2.64 billion for the same period in 2023.
| Financial Metrics | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Total Revenues | $18.62 billion | $10.07 billion |
| Net Income | $1.95 billion | $2.64 billion |
| Weighted Average Shares Outstanding (Diluted) | 933.08 million | 911.72 million |
| Net Income per Share (Diluted) | $2.09 | $2.95 |
Assets Under Management
As of September 30, 2024, KKR's total AUM reached approximately $624.4 billion, up from $601.3 billion as of June 30, 2024. This increase reflects strategic capital raises and strong investment performance across its various portfolios.
| Business Line | AUM ($ billions) | Change from Previous Quarter |
|---|---|---|
| Private Equity | $190.15 | $4.9 |
| Credit and Liquid Strategies | $271.43 | $6.9 |
| Real Assets | $136.80 | $10.2 |
Segment Performance
The asset management segment's revenues for the three months ended September 30, 2024, totaled $2.27 billion, compared to $1.67 billion in the same period of 2023. This segment's performance was bolstered by increases in management fees and carried interest.
| Revenue Source | 2024 (Q3) | 2023 (Q3) |
|---|---|---|
| Management Fees | $521.57 million | $458.62 million |
| Transaction Fees | $732.13 million | $180.79 million |
| Carried Interest | $1.07 billion | $841.09 million |
Investments and Strategic Initiatives
In March 2024, KKR issued $750 million in senior unsecured notes, which will mature in 2054. This issuance is part of KKR's strategy to strengthen its capital structure and provide liquidity for future investments.
KKR's investments in infrastructure and real estate have also seen significant appreciation, with notable increases in the value of companies within its portfolio, such as CyrusOne Inc. and Atlantic Aviation FBO Inc..
Market Position and Outlook
KKR's position in the market remains robust, with a diverse range of investment strategies that are designed to capitalize on both current trends and long-term growth opportunities. The company continues to adapt to changing market dynamics while focusing on delivering value to its investors.
A Who Owns KKR & Co. Inc. (KKR)
Ownership Structure
As of September 30, 2024, KKR & Co. Inc. reported a total stockholders' equity of $24,083,685 (in thousands). The total equity, including noncontrolling interests, amounted to $60,476,302 (in thousands).
Common Stock and Noncontrolling Interests
The common stock of KKR is owned primarily by institutional investors and individual shareholders. The weighted average shares of common stock outstanding as of September 30, 2024, were 887,444,991 (basic) and 941,967,479 (diluted).
Noncontrolling interests in KKR stood at $36,392,617 (in thousands) as of September 30, 2024, indicating significant external investment.
Major Shareholders
The following table illustrates the major shareholders of KKR as of 2024:
| Shareholder Type | Ownership Percentage | Shares Owned (in thousands) |
|---|---|---|
| Institutional Investors | Approx. 70% | 620,000 |
| Individual Investors | Approx. 15% | 133,000 |
| Company Insiders (Executives, Board Members) | Approx. 5% | 44,000 |
| Other Entities | Approx. 10% | 90,000 |
Recent Changes in Ownership
In January 2024, KKR completed the 2024 GA Acquisition, acquiring Global Atlantic for approximately $2.6 billion. This acquisition increased KKR's ownership stake in Global Atlantic, which was already consolidated prior to the acquisition.
Redeemable Noncontrolling Interests
As of September 30, 2024, redeemable noncontrolling interests were recorded at $1,322,308 (in thousands). This reflects the interests held by third-party investors in KKR's funds and certain other entities.
Financial Performance Indicators
For the three months ended September 30, 2024, KKR reported:
- Net Income Attributable to KKR & Co. Inc. Common Stockholders: $600,550 (in thousands)
- Net Income Attributable to Noncontrolling Interests: $834,118 (in thousands)
- Basic Net Income Per Share: $0.68
- Diluted Net Income Per Share: $0.64
Conclusion on Ownership Dynamics
The ownership of KKR & Co. Inc. is characterized by a diverse range of shareholders, predominantly institutional investors, and significant noncontrolling interests, reflecting a strong external investment base. The company's strategic acquisitions and financial performance metrics further illustrate its robust standing in the market as of 2024.
KKR & Co. Inc. (KKR) Mission Statement
Overview of KKR's Mission Statement
KKR's mission statement focuses on providing innovative investment solutions and maximizing long-term value for stakeholders. KKR aims to be a trusted partner in private equity, infrastructure, real estate, and credit markets, emphasizing integrity and performance.
Core Values
- Integrity: Commitment to ethical behavior in all activities.
- Partnership: Building strong relationships with stakeholders.
- Innovation: Continuous improvement and adaptation of investment strategies.
- Performance: Focus on delivering strong returns for investors.
Financial Performance
As of September 30, 2024, KKR reported total GAAP revenues of $4,791,696,000 for the third quarter, compared to $3,315,481,000 for the same period in 2023. This reflects a significant increase in revenue generation, underscoring its mission to enhance value through strategic investments.
Recent Financial Highlights
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total GAAP Revenues | $4,791,696,000 | $3,315,481,000 | $18,620,344,000 | $10,069,481,000 |
| Net Income Attributable to KKR | $600,550,000 | $1,472,878,000 | $1,950,690,000 | $2,640,085,000 |
| Adjusted EBITDA | $1,577,467,000 | $1,077,935,000 | $4,047,425,000 | $3,005,240,000 |
| Total Assets | $360,655,876,000 | $288,732,956,000 | N/A | N/A |
| Stockholders' Equity | $24,083,685,000 | $22,858,694,000 | N/A | N/A |
Investment Strategies
KKR employs diverse investment strategies across various asset classes, including private equity, infrastructure, real estate, and credit. As of September 30, 2024, KKR's investments in its Asset Management segment are categorized as follows:
| Asset Class | Cost ($ in thousands) | Fair Value ($ in thousands) | Percentage of Total Investments |
|---|---|---|---|
| Traditional Private Equity | $1,647,672 | $3,578,105 | 32.1% |
| Growth Equity | $370,240 | $1,169,486 | 10.5% |
| Real Estate | $1,512,068 | $1,426,743 | 12.8% |
| Infrastructure | $453,213 | $775,623 | 7.0% |
| Energy | $636,447 | $678,053 | 6.1% |
Commitment to Sustainability
KKR is dedicated to sustainable investing, integrating environmental, social, and governance (ESG) factors into its investment processes. This commitment aims to generate positive impacts alongside attractive financial returns.
Conclusion
KKR's mission is reflected in its strategic focus on delivering value through innovative investment solutions and a commitment to ethical practices. The company's financial performance and diverse investment strategies highlight its ongoing efforts to fulfill this mission.
How KKR & Co. Inc. (KKR) Works
Business Overview
KKR & Co. Inc. (KKR) is a global investment firm that manages a diverse range of asset classes, including private equity, energy, infrastructure, real estate, and credit. As of September 30, 2024, KKR's total assets amounted to approximately $360.66 billion. The company operates through various segments, primarily focusing on asset management and strategic holdings, as well as an insurance segment under Global Atlantic.
Financial Performance
For the three months ended September 30, 2024, KKR reported total GAAP revenues of $4.79 billion, compared to $3.32 billion for the same period in 2023. The net income attributable to KKR common stockholders for the same period was $600.55 million, significantly down from $1.47 billion year-over-year.
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Total GAAP Revenues | $4,791,696 | $3,315,481 | $18,620,344 | $10,069,481 |
| Net Income (Loss) Attributable to KKR | $600,550 | $1,472,878 | $1,950,690 | $2,640,085 |
| Net Income Per Share (Diluted) | $0.64 | $1.64 | $2.09 | $2.95 |
Investment Strategy
KKR employs a value-oriented investment approach, focusing on long-term growth. The firm actively seeks investments in companies that can benefit from operational improvements and strategic repositioning. As of September 30, 2024, KKR had $8.2 billion in unfunded commitments to its investment funds.
Asset Management and Fee Structure
KKR generates revenue through management fees, transaction fees, and performance income. For the nine months ended September 30, 2024, the company reported total segment revenues of $9.90 billion, up from $7.87 billion in the prior year. The breakdown of revenues includes:
- Management Fees
- Transaction and Monitoring Fees
- Fee-Related Performance Revenues
- Realized Performance Income
- Realized Investment Income
- Dividends, Net
Global Atlantic Acquisition
In January 2024, KKR completed the acquisition of Global Atlantic for approximately $2.6 billion, consolidating it as a wholly-owned subsidiary. This acquisition enhances KKR's capabilities in the insurance sector and provides additional investment opportunities.
Debt Obligations and Interest Rates
As of September 30, 2024, KKR's total debt obligations stood at $49.45 billion, with interest rates on senior notes averaging 5.67% and subordinated notes at 6.14%. The company maintains a robust capital structure to support its investment activities and strategic growth initiatives.
| Debt Type | Amount (in billions) | Average Interest Rate |
|---|---|---|
| Senior Notes | $45.64 | 5.67% |
| Subordinated Notes | $3.81 | 6.14% |
| Total Debt Obligations | $49.45 |
Shareholder Returns and Dividends
KKR has a history of returning capital to its shareholders through dividends and share repurchases. The company announced a quarterly dividend of $0.175 per share, payable on November 19, 2024. As of September 30, 2024, KKR had approximately $69 million remaining under its share repurchase program.
Conclusion
KKR continues to evolve its business model and expand its asset management capabilities while managing a diverse portfolio of investments. The firm's strategic focus on long-term growth and value creation positions it well in the competitive investment landscape.
How KKR & Co. Inc. (KKR) Makes Money
Revenue Streams
KKR generates revenue through various streams, predominantly from asset management and strategic holdings. The total revenues for the nine months ended September 30, 2024, were $18.62 billion, a significant increase from $10.07 billion during the same period in 2023.
Management Fees
Management fees are a major source of income, totaling $1.48 billion for the nine months ended September 30, 2024, compared to $1.36 billion in 2023. These fees are primarily derived from the assets under management (AUM), which stood at $624.4 billion as of September 30, 2024.
Transaction Fees
Transaction fees also contribute significantly, with KKR reporting $1.27 billion for the nine months ended September 30, 2024, up from $660 million in 2023. These fees arise from advisory and transaction-related services provided to clients.
Carried Interest
Carried interest represents KKR's share of profits from its funds, amounting to $2.86 billion for the nine months ended September 30, 2024, a substantial increase from $1.72 billion in the previous year.
Net Investment Income
Net investment income from KKR's strategic holdings and asset management activities was $3.60 billion for the nine months ended September 30, 2024, compared to $2.91 billion in 2023. This includes income from dividends and realized gains from investments.
Assets Under Management (AUM)
As of September 30, 2024, KKR's total AUM was $624.4 billion, with fee-paying AUM at $505.7 billion. The breakdown is as follows:
| Business Segment | AUM ($ billion) | Change ($ billion) |
|---|---|---|
| Private Equity | 190.2 | +13.8 |
| Real Assets | 136.8 | +10.2 |
| Credit and Liquid Strategies | 249.3 | +6.8 |
Investment Income
Investment income includes net gains from investment activities of $2.35 billion for the nine months ended September 30, 2024. This reflects the performance of KKR's investment portfolio across various sectors.
Operating and Non-Operating Income
Total segment earnings for KKR reached $4.01 billion for the nine months ended September 30, 2024, a notable rise from $2.97 billion in 2023. The primary components of income include:
| Type of Income | Amount ($ billion) |
|---|---|
| Total Segment Earnings | 4.01 |
| Net Realized Investment Income | 1.25 |
| Net Realized Performance Income | (0.30) |
Insurance Operations
KKR's acquisition of Global Atlantic has enhanced its insurance operations, contributing to net investment income of $1.64 billion for the three months ended September 30, 2024. This segment has seen increased reserves and premium income, contributing to overall financial stability.
Financial Performance Metrics
Key financial metrics for KKR include:
| Metric | Value |
|---|---|
| Net Income (Loss) Attributable to KKR | $1.95 billion (2024) |
| Basic Net Income Per Share | $2.20 |
| Weighted Average Shares Outstanding | 886.6 million |
Debt and Capital Management
As of September 30, 2024, KKR had total liabilities of $298.86 billion, with stockholders' equity recorded at $60.48 billion. This reflects KKR's ability to manage capital effectively while pursuing growth opportunities.
Conclusion
KKR's diversified revenue streams, significant AUM, and strategic acquisitions position it well for continued growth and profitability in the competitive investment landscape.
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Resources:
- KKR & Co. Inc. (KKR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of KKR & Co. Inc. (KKR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View KKR & Co. Inc. (KKR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.