KKR is aiming to capitalise on volatility stemming from renewed trade tensions tied to former President Donald Trump’s tariff policies, using current market dislocations to identify compelling investment opportunities across asset classes, according to a report by Bloomberg.
The report quotes Co-CEO Scott Nuttall as saying on the firm’s Q1 earnings call that: “Periods like this can present highly attractive entry points. With $116bn in dry powder, we are well-positioned to invest when others retreat.”
Despite heightened market uncertainty, KKR executives reaffirmed the firm’s long-term strategic and growth targets, highlighting a robust pipeline of capital deployment. CFO Robert Lewin noted that roughly 90% of KKR’s private equity AUM remains largely insulated from direct tariff exposure.
Over the past month, the firm committed more than $10bn to new investments, including $7bn in private equity and $3bn in private credit. Executives also addressed investor concerns over the macroeconomic implications of tariff-related market turbulence, particularly the potential for recessionary pressures in the US.
Shares of KKR rose 2% in early trading Thursday, trimming year-to-date losses to 21%.
In its Q1 results, KKR reported adjusted net income of $1bn, or $1.15 per share, surpassing analyst expectations of $1.13. The earnings beat was underpinned by growth in both fee-related and investment income.
The firm deployed $19bn across its private markets strategies during the first quarter and has an additional $13bn in signed but not yet closed transactions. Fundraising momentum remains strong, with total assets under management reaching $664bn — a 15% year-on-year increase.
Credit strategies led capital formation in Q1. KKR also disclosed it has raised $14bn for its flagship North America private equity fund and now manages $21bn across its K-Series platform targeting high-net-worth investors.
Operating earnings rose 16% year-over-year to $1.1bn, reflecting the ongoing shift toward recurring fee income and stable contributions from its Global Atlantic insurance unit and Strategic Holdings platform.
Strategic Holdings, which KKR is positioning as a long-duration capital vehicle akin to a “mini Berkshire Hathaway,” generated $31.5m in dividend income from core holdings during the quarter. Meanwhile, Global Atlantic reported a 5.1% decline in earnings to $258.8m due to higher funding costs, consistent with earlier guidance. The insurance unit ended March with $197bn in AUM.
