Kkr & Co Inc Stock Price, News & Analysis

KKR has appointed Tim Lawler as an Executive Advisor, enhancing its talent management capabilities within the health care sector. Mr. Lawler, a seasoned private equity professional with over 20 years of experience, will collaborate with the KKR Americas Health Care team to build long-lasting relationships with top executives. His track record includes leadership roles at Waud Capital Partners and Highland Capital Management. KKR has invested approximately $19 billion in health care over the last 25 years, and Lawler aims to further attract high-caliber talent to the firm, positioning KKR as a premier partner for health care leaders.

The Board of Trustees of KKR Income Opportunities Fund (NYSE: KIO) has approved a Rights Offering for shareholders to subscribe for additional shares, with a record date set for January 23, 2023. Each existing shareholder will receive one transferable right for each share held, allowing them to purchase one new share for every three rights at a price linked to market performance. The Fund will also increase its monthly distributions from $0.1050 to $0.1215 per share starting March 31, 2023, reflecting a 15.71% increase.

KKR has announced a further $1.15 billion investment to expand its portfolio of leased commercial aircraft in partnership with Altavair, bringing total commitments to $1.7 billion since 2018. This expansion will enhance their ability to support the fleet needs of airlines globally, as demand for aircraft leasing grows. KKR's aviation investments since 2015 have reached approximately $8.3 billion. The partnership has successfully acquired over 90 aircraft, with 75% leased to tier-one airlines.

KKR has announced a new investment in South Korean energy company SK E&S, acquiring newly issued redeemable convertible preferred shares (RCPS). This marks KKR's second investment in SK E&S since November 2021, aimed at supporting the company’s transformation into a global clean energy solutions provider. SK E&S plans to utilize this capital to improve liquidity and capture post-pandemic opportunities in the energy sector. With over US$15 billion in global investments in renewables since 2011, KKR underlines its commitment to the clean energy market.

KKR has reported a strong monetization activity update for the period from October 1, 2022 to December 20, 2022, achieving over $500 million in total realized performance income, driven by strategic sales and investments. The income breakdown includes approximately 30% from gross realized carried interest, 25% from realized incentive fees, and 45% from realized investment income. Notably, this estimate does not predict total revenues for the quarter ending December 31, 2022 as it excludes other income and expenses.

KKR has signed definitive agreements to acquire all shares of Bushu Pharmaceuticals from BPEA EQT. This strategic move aims to enhance Bushu Pharma's growth as a leading contract development and manufacturing organization (CDMO) in Japan and globally. Founded in 1998, Bushu Pharma specializes in producing high-quality pharmaceuticals, including oral solid dosages and injectables. KKR plans to work with Bushu Pharma’s management to expand into new segments, invest in capacity, and improve quality control. The transaction is expected to finalize in Q1 2023, pending approvals.

KKR has released its 2023 Global Macro Outlook, authored by CIO Henry McVey, emphasizing a simpler investment strategy amidst ongoing inflation concerns. Key insights include expectations of earnings declines in 2023 with only modest recovery in 2024, persistent labor shortages, and pressure on U.S. housing prices. The report advocates for investments in real assets and simple credit, citing a structural labor market issue and shifting inflation dynamics. The outlook suggests a selective approach to investments over the next 12 to 18 months.

KKR Real Estate Select Trust Inc. (KREST) has acquired a portfolio of 39 newly built multifamily properties in Tokyo, Japan. This investment, part of KREST’s stabilized real estate strategy, is expected to generate stable cash flows due to a master lease with a leading property manager ensuring 100% occupancy. With KKR managing approximately US$64 billion in assets globally, this acquisition highlights KREST's focus on high-quality, income-producing real estate in a strong market. KREST aims for attractive current income and long-term capital appreciation.

KKR has released a new macro report titled Regime Change: The Benefits of Private Credit in the ‘Traditional’ Portfolio, emphasizing a shift in portfolio construction strategies. The report suggests reallocating from traditional 60/40 models to a more diversified 40/30/30 structure that includes Private Credit, Infrastructure, and Real Estate. Factors such as the pullback of traditional lenders and improved lending terms make Private Credit an attractive option for investors. The report calls for a rethinking of asset allocation approaches in this evolving economic landscape.