US private equity firm KKR has released its second quarter financial results showing 5 per cent higher earnings for the first six months of 2020 compared to the first six months of 2019.
The firm’s private equity funds increased 11 per cent in the second quarter, while its global infrastructure and real estate funds increased by 7 per cent and 2 per cent.
New capital raised in the quarter totalled USD16 billion – a record quarterly figure for KKR – driven by fundraising across its Asia Private Equity, Asia Infrastructure, Core Plus Real Estate and Dislocation strategies, according to the firm.
The New York-based firm also revealed its net income rose 36 per cent year-on-year to USD 698.6 million in the second quarter, due to the appreciation of its funds. In the beginning of July, KKR announced that it is acquiring Global Atlantic Financial Group Limited, a retirement and life insurance company.
The private equity giant stated that “despite volatility experienced across global markets year-to-date, after-tax distributable earnings per adjusted share of USD 0.80 for the first six months of 2020 are 5 per cent higher compared to the first six months of 2019.”
“Our year-to-date results demonstrate the resiliency of KKR’s model with growth seen across our key financial metrics despite broad market volatility,” said Henry R Kravis and George R Roberts, co-chairmen and co-chief executive officers of KKR.
“We continued to scale our businesses organically, raising a record amount of capital in the second quarter, while finding opportunities to invest globally on behalf of our limited partners. These strong fundamentals, coupled with our recently announced agreement to acquire Global Atlantic, position us well for future growth,” they added in a statement.
KKR’s assets under management and fee paying assets were USD 222 billion and USD 160 billion, up 8 percent and 6 percent, over the last 12 months.
