KKR believes it is well positioned to capitalise on market volatility linked to artificial intelligence, as fears around AI-led disruption continue to weigh on valuations, according to a report by Reuters.
Speaking on a conference call, Co-Chief Executive Scott Nuttall said KKR has spent the past two years assessing whether AI represents an opportunity or a risk across its portfolio. He added that the firm’s $118bn of available capital significantly outweighs any exposure linked to AI-related uncertainty, creating scope to invest during periods of dislocation.
Around 7% of KKR’s portfolio is invested in software assets, while the firm holds more than 200 equity investments globally that Nuttall says can be used to test how AI can drive efficiency and growth across sectors.
For the fourth quarter, the firm reported higher management fees from new capital deployment but weaker income from transactions and asset sales. Total investing earnings fell nearly 79% to $84.8m, while a charge linked to an underperforming Asia-focused fund weighed on results. Adjusted net income came in at $1bn, or $1.12 per share, compared with analyst expectations of $1.16 per share.
KKR shares fell around 5% following the results, extending a decline that has seen the firm’s market capitalisation fall by more than 33% over the past year.
