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KKR targeting $1tn AUM in next five years

KKR & Co has set its sights on increasing AUM at the private investment firm to at least $1tn in the next five years, and has laid out a plan to scale its core businesses to reach the target, according to a report by Bloomberg.

The report cites an investor presentation on Wednesday as revealing that the firm intends to build on its existing asset management, insurance and strategic holdings units, and is also seeking to generate annual adjusted net income of more than $15 a share within a decade.

The firm expects to generate more than $1bn in annual operating earnings at its strategic holdings unit — which holds long-term private equity investments — by 2030, and anticipates doubling assets under management at its Global Atlantic insurance business.

“We’re just getting started,” KKR Co-Chief Executive Officer Scott Nuttall said in a presentation at the firm’s investor day. “Despite all the growth, we have a lot of runway ahead of us.”

Founded as a private equity business in 1976 by Henry Kravis, Jerome Kohlberg and George Roberts, KKR has grown into an alternative-asset management giant active across buyouts, credit, infrastructure, real estate and insurance. The firm oversaw $553bn of assets at the end of last year, when it posted adjusted net income of $3.42 a share.

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