Who reported? KKR & Co. Inc. (NYSE: KKR) released its first quarter 2025 financial results on May 1, 2025. This report comes amid a historically volatile economic environment, yet KKR’s diversified and durable business model continues to demonstrate resilience and growth.
What were the highlights? KKR’s first quarter 2025 results underscore strong financial performance metrics with quantitative data affirming the firm’s strategic positioning:
Revenues totaled \(3.11 billion for the quarter, marking a significant portfolio diversification. Total revenues for the last twelve months (LTM) stood at \)15.33 billion.
Fee Related Earnings (FRE) grew 23% year-over-year to \(823 million in the quarter and 37% to \)3.4 billion on an LTM basis.
Total Operating Earnings (TOE) increased by 16% year-over-year to \(1.1 billion for the quarter and surged 32% to \)4.5 billion over the LTM.
Adjusted Net Income (ANI) for the quarter rose 20% year-over-year to \(1.0 billion, with a 37% increase to \)4.4 billion for the LTM.
Assets Under Management (AUM) reached $664 billion, a 15% increase year-over-year.
Fee-Paying Assets Under Management (FPAUM) achieved $526 billion, up 12% year-over-year.
New capital raised amounted to \(31 billion for the quarter and \)114 billion for the LTM, with \(19 billion capital invested during the quarter and \)88 billion in the LTM.
When and where was this disclosed? The earnings release was announced on May 1, 2025. The live conference call was held on May 1, 2025, at 9:00 a.m. ET with access available via phone and online streaming through KKR’s investor relations website (https://ir.kkr.com/events-presentations/).
Why is this important? KKR’s strong first quarter results emphasize the strength of its business model in navigating economic uncertainty and volatility. The firm’s $116 billion of dry powder (uncalled capital) positions it to capitalize on attractive investment opportunities globally. This liquidity combined with sophisticated investment capabilities and a collaborative culture bolsters its competitive position.
Where does this fit in KKR’s business strategy? The substantial growth in fee-related earnings highlights KKR’s focus on stable, recurring revenue streams. Investments have been active across private equity, real assets, and credit and liquid strategies. Strategic moves such as launching public-private fixed income solutions and expanding K-Series AUM from \(8 billion to \)21 billion in one year underpin KKR’s innovation in providing alternative investment solutions to a broader investor base.
Financial Impact and Forward-Looking Insights: - KKR’s TOE increased 32% YoY, primarily driven by the growth in fee-related earnings, indicating the operational efficiency in managing its fees and performance revenues. - The strategic holdings segment is expected to grow its operating earnings from over \(350 million in 2026 to over \)1.1 billion by 2030, reflecting KKR’s forward-looking growth ambitions. - The issuance of $2.6 billion in 6.25% Series D Mandatory Convertible Preferred Stock in March 2025 is a strategic capital move to support future growth initiatives.
The insurance segment under Global Atlantic showed growth in net investment income to $1.7 billion, fueled by higher portfolio yields and net inflows despite the general insurance operating earnings being slightly down due to increased funding costs.
What did KKR’s management say previously? In prior earnings calls, KKR emphasized the resilience of their diversified global footprint, effective operational capabilities, and readiness to seize market volatility opportunities. The current 8-K’s highlighted results confirm these strategic themes.
This KKR Q1 2025 report provides compelling proof points of KKR’s agility and strategic positioning in a complex economic landscape, bolstered by strong financial fundamentals and a forward-looking growth orientation.
For complete details and to review the original report, please visit KKR’s SEC filing: https://sec.gov/Archives/edgar/data/1404912/000140491225000019/q125earningsrelease_vg.htm
Tags: KKR Financial Results, Assets Under Management, Fee Related Earnings, Strategic Holdings Growth, Alternative Asset Management