KKR Announces Intra-Quarter Monetization Activity Update for the First Quarter

Rhea-AI Summary

KKR announces monetization activity update, reporting over $350 million in total realized performance and investment income for the period from January 1, 2024, to March 21, 2024.

Financial Analyst

KKR's announcement of a substantial sum in realized performance income and realized investment income is indicative of a robust monetization strategy for the first quarter of 2024. The composition of 70% performance income suggests a strong alignment with the company's investment outcomes, which is a positive signal for investors looking for performance-based returns. The 30% from investment income, likely including dividends and interest, reflects a diversified income stream, which could mitigate risk for shareholders.

The disclosure of secondary sales and strategic transactions as primary drivers provides insight into KKR's active management approach. However, investors should note that these figures are not final and do not account for total revenues or potential expenses that could affect net income. The caution against using these preliminary figures as a predictor for the full quarter or the year-end results is a reminder of the inherent uncertainties in the investment business.

Market Research Analyst

The update from KKR sheds light on the company's interim financial health and could influence market sentiment. The emphasis on a mix of secondary sales and strategic transactions suggests KKR is leveraging its assets and partnerships effectively. Despite the positive news, stakeholders should consider the broader economic context, including market volatility and interest rates, which could impact the valuation of KKR's portfolio and the sustainability of dividend and interest income.

Furthermore, the lack of full-quarter data and the exclusion of other income sources and expenses in the announcement should prompt a cautious interpretation. Market analysts would recommend a holistic view, taking into account KKR's historical performance, industry trends and the performance of comparable firms to contextualize these preliminary figures.

Economist

The financial update from KKR provides an early indication of economic activity within the private equity sector. The significant amount of realized income points to active markets and possibly favorable exit conditions for investments. This could reflect broader economic trends, such as market liquidity and investor confidence, which are essential for such transactions.

However, the reliance on secondary sales and strategic transactions could be influenced by macroeconomic factors, including regulatory changes or shifts in investor sentiment. While the present data is promising, it is important to analyze subsequent reports for a fuller picture of the economic impact. An economist would also consider the potential implications of this performance on employment, market competition and the overall health of the sectors in which KKR is invested.

NEW YORK--(BUSINESS WIRE)-- KKR today announced a monetization activity update for the period from January 1, 2024 to March 21, 2024. Based on information available to us as of today, with respect to the period through March 21, 2024, KKR has earned total realized performance income, including realized incentive fees, and total realized investment income in excess of $350 million. Our monetization activity quarter-to-date is made up of approximately 70% realized performance income and approximately 30% realized investment income. This activity is driven primarily by a secondary sale and strategic transactions that have closed quarter-to-date, as well as certain dividend and interest income from KKR’s balance sheet portfolio.

The estimate disclosed above is not intended to predict or represent total realized performance income, total realized investment income or total revenues for the full quarter ending March 31, 2024, because it does not include the results or impact of any other sources of income, including fee income, or expenses, and we may realize further gains or losses relating to total realized performance income and total realized investment income after the date of this press release. This estimate is also not necessarily indicative of the results that may be expected for any other period, including the entire year ending December 31, 2024.

About KKR

KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group’s website at www.globalatlantic.com.

Forward-Looking Statements

This press release may contain forward-looking statements, including estimated operating results from certain monetization activities. Words such as “expect,” estimate,” “will,” “may” and “believe” or similar expressions may identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results to differ materially from those included in these forward-looking statements, and investors should not place undue reliance on such statements. These forward-looking statements speak only as of the date of this press release, and we do not undertake any obligation to update or revise any of the forward-looking statements to reflect future events or circumstances, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240321804053/en/

Investor Relations:

Craig Larson

1-877-610-4910 (U.S.) / 212-230-9410

investor-relations@kkr.com

Media:

Kristi Huller, Miles Radcliffe-Trenner or Julia Kosygina

1-212-750-8300

media@kkr.com

Source: KKR

What is KKR's total realized performance and investment income for the period from January 1, 2024, to March 21, 2024?

KKR has reported total realized performance and investment income in excess of $350 million for the period from January 1, 2024, to March 21, 2024.

What percentage of KKR's monetization activity quarter-to-date is realized performance income?

Approximately 70% of KKR's monetization activity quarter-to-date is realized performance income.

What type of transactions primarily drove KKR's monetization activity quarter-to-date?

The monetization activity quarter-to-date for KKR was primarily driven by a secondary sale and strategic transactions that have closed, as well as dividend and interest income from KKR's balance sheet portfolio.

Is the estimate disclosed by KKR intended to predict total revenues for the full quarter ending March 31, 2024?

No, the estimate disclosed by KKR is not intended to predict or represent total revenues for the full quarter ending March 31, 2024, as it does not include the results of other sources of income or expenses.

Is the estimate disclosed by KKR indicative of the results that may be expected for the entire year ending December 31, 2024?

No, the estimate disclosed by KKR is not necessarily indicative of the results that may be expected for the entire year ending December 31, 2024.