KKR & Co reported robust third-quarter earnings on Thursday, driven by record transaction fees in its capital markets division, surpassing Wall Street expectations, with net income increasing by 58% to $1.24 billion, or $1.38 per share ahead of analyst forecasts $1.20, according to a report by Bloomberg.
KKR’s stock rose by 2.5% to $142 in pre-market trading on the news.
The firm’s fee-related earnings meanwhile, surged 79% to a historic $1bn, buoyed by rising management fees and strong activity in financing arrangements for companies.
In a joint-statement Co-CEOs Joe Bae and Scott Nuttall highlighted the firm’s performance, noting that “activity levels across the firm remain high” as key metrics continue to improve.
Assets under management climbed 18% from last year to $624bn, with notable contributions from sectors including private equity, credit, infrastructure, and real estate. KKR’s capital markets division generated $424m in financing fees, with nearly half coming from infrastructure and debt products.
Other key figures included total operating earnings of $1.3bn, which encompasses earnings from long-term private equity, fee-related income, and profits from KKR’s insurance arm, Global Atlantic. Global Atlantic alone saw a 46% profit rise to $307.5m, following KKR’s acquisition of 100% ownership in the first quarter.
The firm’s shares have outperformed competitors so far in 2024, with a 68% increase year-to-date, exceeding returns from major peers like Apollo Global Management, Blackstone, and Carlyle Group.
