A steep decline in asset sales from its private equity portfolio, coupled with lower transaction fees, saw KKR & Co Inc’s after-tax distributable earnings fall 26% year-on-year in the first quarter of 2023, according to a report by Reuters.
With higher interest rates, ongoing geopolitical tensions, and market volatility all negatively impacting deal-making, KKR along with other including private equity firms including Bain Capital, Blackstone Inc, and Carlyle Group Inc, exited fewer investments during the first three months of the year, with the firm’s after-tax distributable earnings – the cash available for paying dividends to shareholders – falling to $719.3 million, from $974 million in the same period last year.
According to data from Refinitiv though, that translated to after-tax distributable earnings of 81 cents per share, exceeding the average analyst estimate of 74 cents per share.
KKR said its profit from asset sales fell 70% to $172.7 million. Transaction fees from the firm’s capital markets division meanwhile, fell by more than 60% to $102 million because of fewer deals across its portfolio companies.
In terms of fund performance, KKR a 2% gain for its PE portfolio, a 7% increase for its infrastructure funds, while leveraged credit funds grew 4%, and opportunistic real estate funds fell 3%.
