KKR Q3 earnings rise to $1.19 a share as revenue falls
Common-stockholder earnings and operating cash flow increased year over year even as third-quarter revenue and consolidated net income were lower.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
10-Q
KKR & Co. Inc. (KKR) reported third-quarter 2026 total revenue of $4.564 billion, compared with $5.526 billion a year earlier. Net income attributable to KKR common stockholders rose to $1.121 billion from $859.9 million, and diluted earnings per share increased to $1.19 from $0.90. Consolidated net income, including noncontrolling interests, was $1.238 billion versus $1.840 billion.
For the nine months ended September 30, 2026, revenue was $14.608 billion versus $13.725 billion, and common-stockholder net income was $2.146 billion versus $1.146 billion. Operating cash flow was $7.143 billion, compared with $5.378 billion. At September 30, total assets were $415.723 billion and total liabilities were $335.722 billion.
KKR completed its acquisition of 100% of Arctos Management Company, LLC on May 4, 2026. Under the reorganization agreement, governance changes—including one vote per common share and KKR’s acquisition of control of the carry pool—take effect on the Sunset Date, no later than December 31, 2026, subject to the agreement’s earlier-date provisions.
2 points · 0 major0 major · 1 point
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointCommon-stockholder net income reached $1.121 billion, versus $859.9 million.
- Moderate pointNine-month operating cash flow was $7.143 billion, versus $5.378 billion.
Negative
- Moderate pointQuarterly revenue fell to $4.564 billion, from $5.526 billion a year earlier.
Filing Explained
The 10-Q says the governance changes are unconditional commitments: on the Sunset Date, KKR Management’s control ends, each common share gets one vote, and KKR takes control of the carry pool; that date is the earlier of December 31, 2026, six months after both co-founders die or become permanently disabled, or an earlier date KKR Management consents to.
Key Figures
Total revenue: $4.564 billion
Net income attributable to KKR & Co. Inc. common stockholders: $1.121 billion
Diluted earnings per share: $1.19
+3 more
6 metrics
Total revenue
$4.564 billion
Three months ended September 30, 2026; $5.526 billion in 2025
Net income attributable to KKR & Co. Inc. common stockholders
$1.121 billion
Three months ended September 30, 2026; $859.9 million in 2025
Diluted earnings per share
$1.19
Three months ended September 30, 2026; $0.90 in 2025
Net income
$1.238 billion
Three months ended September 30, 2026; $1.840 billion in 2025
Net cash provided by operating activities
$7.143 billion
Nine months ended September 30, 2026; $5.378 billion in 2025
Total assets
$415.723 billion
As of September 30, 2026
Key Terms
collateralized loan obligations, variable interest entities, market risk benefit liabilities, capital allocation-based income
4 terms
collateralized loan obligations financial
"including collateralized loan obligations (“CLOs”)"
A collateralized loan obligation is a financial product that pools many corporate loans and repackages them into slices sold to investors, with some slices offering steady, lower returns and others offering higher returns but more risk. Like splitting a pizza into pieces for different tastes, CLOs let investors pick their preferred risk level and help banks fund lending, so changes in CLO performance influence credit availability and can move markets.
variable interest entities financial
"consolidated variable interest entities (“VIEs”)"
A variable interest entity (VIE) is a business that a company controls through contracts or special arrangements instead of owning a majority of its shares, like steering a puppet without holding its ticket. Investors care because these arrangements can hide who really bears the financial risks and rewards, affect how assets and liabilities appear on financial statements, and create extra legal or enforcement uncertainty that can change the value and risk of an investment.
market risk benefit liabilities financial
"market risk benefit liabilities: $ 1,311,892"
capital allocation-based income financial
"Total Capital Allocation-Based Income (Loss)"
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What was KKR’s Q3 2026 revenue?
KKR reported $4.564 billion in total revenue for the three months ended September 30, 2026, compared with $5.526 billion for the same period in 2025.
How much did KKR earn in Q3 2026?
Net income attributable to KKR common stockholders was $1.121 billion for the three months ended September 30, 2026, compared with $859.9 million a year earlier. Diluted earnings per share were $1.19 versus $0.90.
When do KKR’s planned governance changes take effect?
The changes take effect on the Sunset Date, which will be no later than December 31, 2026. The date may be earlier under the agreement’s provisions concerning the Co-Founders or with KKR Management LLP’s consent.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. |
For the quarterly period ended September 30, 2026
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. |
For the Transition period from to .
Commission File Number 001-34820
(Exact name of Registrant as specified in its charter)
(State or other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification Number) |
Telephone: (212 ) 750-8300
(Address, zip code, and telephone number, including
area code, of registrant's principal executive office.)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading symbol(s) | Name of each exchange on which registered |
4.625% Subordinated Notes due 2061 of KKR Group Finance Co. IX LLC | ||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of
Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an
emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company"
in Rule 12b-2 of the Exchange Act.
☒ | Accelerated filer | ☐ | ||
Non-accelerated filer | ☐ | Smaller reporting company | ||
Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any
new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of November 6, 2026, there were 892,139,534 shares of common stock of the registrant outstanding.
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KKR & CO. INC.
FORM 10-Q
For the Quarterly Period Ended September 30, 2026
TABLE OF CONTENTS
Page | ||
PART I — FINANCIAL INFORMATION | ||
Item 1. | Financial Statements | |
Condensed Consolidated Financial Statements (Unaudited) | ||
Condensed Consolidated Statements of Financial Condition (Unaudited) as of September 30, 2026 and December 31, 2025 | 6 | |
Condensed Consolidated Statements of Operations (Unaudited) for the Three and Nine Months Ended September 30, 2026 and 2025 | 10 | |
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) for the Three and Nine Months Ended September 30, 2026 and 2025 | 12 | |
Condensed Consolidated Statements of Changes in Equity (Unaudited) for the Three and Nine Months Ended September 30, 2026 and 2025 | 13 | |
Condensed Consolidated Statements of Cash Flows (Unaudited) for the Nine Months Ended September 30, 2026 and 2025 | 15 | |
Notes to Financial Statements (Unaudited) | 18 | |
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | 104 |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 186 |
Item 4. | Controls and Procedures | 186 |
PART II — OTHER INFORMATION | ||
Item 1. | Legal Proceedings | 187 |
Item 1A. | Risk Factors | 187 |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 187 |
Item 3. | Defaults Upon Senior Securities | 188 |
Item 4. | Mine Safety Disclosures | 188 |
Item 5. | Other Information | 188 |
Item 6. | Exhibits | 189 |
SIGNATURES | 190 | |
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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as
amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"),
which reflect our current views with respect to, among other things, our operations and financial performance. You can
identify these forward-looking statements by the use of words such as “outlook,“ “believe,“ “think,“ “expect,“ “potential,“
“continue,“ “may,“ “should,“ “seek,“ “approximately,“ “predict,“ “intend,“ “will,“ “plan,“ “estimate,“ “anticipate,“ “visibility,”
“positioned,” “path to,” “conviction,” the negative version of these words, other comparable words or other statements that
do not relate strictly to historical or factual matters. Without limiting the foregoing, forward-looking statements may include
statements regarding KKR’s business, financial condition, liquidity and results of operations, including capital invested,
uncalled commitments, cash and short-term investments, and levels of indebtedness; the potential for future business
growth; outstanding shares of common stock of KKR & Co. Inc. and its capital structure; non-GAAP and segment measures and
performance metrics, including assets under management (“AUM”), fee paying assets under management (“FPAUM”),
Adjusted Net Income, Total Operating Earnings, Total Segment Earnings, Fee Related Earnings (“FRE”), Insurance Operating
Earnings, Strategic Holdings Operating Earnings, and Total Investing Earnings; the declaration and payment of dividends on
capital stock of KKR & Co. Inc.; the timing, manner and volume of repurchase of shares of common stock of KKR & Co. Inc.; our
statements regarding the potential of, and future financial results from, KKR’s Strategic Holdings segment, including
expectations about dividend payments and earnings from companies and businesses in the Strategic Holdings segment in the
future, the future growth of such companies and businesses, and the potential for compounding earnings over a longer period
of time from such segment; KKR’s ability to grow its AUM, to deploy capital, to realize unrealized investment appreciation,
and the time period over which such events may occur; KKR’s ability to manage the investments in and operations of acquired
companies and businesses; the effects of any transactional activity on KKR’s operating results, including pending sales of
investments; expansion and growth opportunities and other synergies resulting from acquisitions of companies, including the
acquisition of Arctos Partners and businesses in our Strategic Holdings segment, internal reorganizations or strategic
partnerships with third parties; the timing and expected impact to our business of any new investment fund, vehicle or
product launches; the timing and completion of certain transactions contemplated by the Reorganization Agreement entered
into on October 8, 2021 by KKR & Co. Inc.; the implementation or execution of, or results from, any strategic initiatives,
including efforts to distribute financial products to individual investors; the modification of our compensation framework
announced on November 29, 2023, which decreased the targeted percentage of compensation from fee related revenues and
increased the targeted percentage from realized carried interest and certain incentive fees; and our insurance business's
strategic initiatives to invest more into non-yielding or lower-yield asset classes like private equity and real assets, expand
outside the United States, and raise more third-party co-investment insurance capital. Forward-looking statements are
subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes
or results to differ materially from those indicated in these statements or cause the anticipated benefits and synergies from
transactions to not be realized. We believe these factors include those described in the section entitled “Risk Factors“ in our
Annual Report on Form 10-K for the year ended December 31, 2025 (our “Annual Report“). These factors should be read in
conjunction with the other cautionary statements that are included in this report and in our other filings with the U.S.
Securities and Exchange Commission (“SEC“). We do not undertake any obligation to publicly update or revise any forward-
looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
CERTAIN TERMS USED IN THIS REPORT
In this report, references to “KKR,” “we,” “us,” and “our” refer to KKR & Co. Inc. and its subsidiaries, including The Global
Atlantic Financial Group LLC (”GAFG” and, together with its insurance companies and other subsidiaries, “Global Atlantic”),
unless the context requires otherwise.
References to the “Series I preferred stockholder” or “KKR Management” are to KKR Management LLP, the holder of the
sole outstanding share of our Series I preferred stock. KKR Management is owned by our senior employees, including Mr.
Henry Kravis and Mr. George Roberts (our “Co-Founders”). References to “carry pool participants” are to our current and
former employees who hold interests in our “carry pool,” which refers to the carried interest generated by KKR’s business that
is allocated to KKR Associates Holdings L.P. (“Associates Holdings”), in which carry pool participants are limited partners.
Associates Holdings is currently not a subsidiary of KKR & Co. Inc.
KKR Group Partnership L.P. (“KKR Group Partnership”) is the intermediate holding company that owns the entirety of
KKR’s business. Unless otherwise indicated, references to equity interests in KKR’s business, or to percentage interests in
KKR’s business, reflect the aggregate equity interests in KKR Group Partnership, and are net of amounts that have been
allocated to carry pool participants and any other holders of minority interests in KKR Group Partnership. References to a
4
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“KKR Group Partnership Unit” refer to one Class A partner interest in KKR Group Partnership for periods on and after January
1, 2020. “Exchangeable securities” refers to securities that have the right to acquire KKR Group Partnership Units and to
exchange them for our shares of common stock. As of the date of this report, our only outstanding exchangeable securities
are (i) restricted holdings units issued through KKR Holdings II L.P. (“KKR Holdings II”), which are issued under the Amended
and Restated KKR & Co. Inc. 2019 Equity Incentive Plan (the “2019 Equity Incentive Plan”), and (ii) restricted holdings units
issued through KKR Holdings III L.P. (“KKR Holdings III”), which are not issued under the 2019 Equity Incentive Plan. In the
future, we may issue securities other than restricted holdings units that may constitute exchangeable securities.
On October 8, 2021, KKR entered into a Reorganization Agreement (the “Reorganization Agreement”) with KKR Holdings
L.P. (“KKR Holdings”), KKR Management, Associates Holdings, and the other parties thereto. Pursuant to the Reorganization
Agreement, the parties agreed to undertake a series of integrated transactions to effect a number of transformative structural
and governance changes, including (a) the acquisition by KKR of KKR Holdings and all of the KKR Group Partnership Units held
by it (which as noted below was completed), (b) the future elimination of voting control by KKR Management and the Series I
preferred stock held by it, (c) the future establishment of voting rights for all common stock on a one vote per share basis,
including with respect to the election of directors, and (d) the future control of the carry pool by KKR. On May 31, 2022, KKR
completed the acquisition of KKR Holdings and the 258.3 million KKR Group Partnership Units held by it, and in exchange KKR
issued and delivered 266.8 million shares of common stock to the limited partners of KKR Holdings. On the “Sunset
Date” (which will occur no later than December 31, 2026), KKR will cancel the Series I preferred stock, establish voting rights
for all common stock on a one vote per share basis, and acquire control of the carry pool. For more information about the
Reorganization Agreement, see Note 1 “Organization” in our financial statements included in this report.
KKR’s asset management business is conducted by Kohlberg Kravis Roberts & Co. L.P. and various other subsidiaries of
KKR & Co. Inc. other than Global Atlantic. KKR’s insurance business is operated by Global Atlantic, in which KKR acquired a
majority controlling interest on February 1, 2021 and of which KKR acquired all the remaining equity interests in Global
Atlantic on January 2, 2024 (the “2024 GA Acquisition”). KJR Management (“KJRM”) is a Japanese real estate asset manager,
which KKR acquired on April 28, 2022.
References to our “funds,” “vehicles,” or “investment vehicles” refer to a wide array of investment funds, vehicles, and
accounts that are advised, managed, or sponsored by one or more subsidiaries of KKR, including collateralized loan obligations
(“CLOs”), certain operating companies, and business development companies (each, a “BDC”), unless the context requires
otherwise. These references do not include the investment funds, vehicles, or accounts of any hedge fund partnership or any
other third-party asset manager with which we have formed a strategic partnership or have acquired a minority ownership
interest. Unless the context requires otherwise, references to “fund investors” or “investors in our investment vehicles” refers
to the third-party investors in these funds and investment vehicles. References to “strategic investor partnerships” refers to
separately managed accounts with certain investors, which typically have investment periods longer than our traditional
funds and typically provide for investments across different investment strategies. References to “hedge fund partnerships”
refers to strategic partnerships with third-party hedge fund managers in which KKR owns a minority stake.
Unless otherwise indicated, references in this report to our outstanding common stock on a fully exchanged and diluted
basis reflect (i) actual shares of common stock outstanding, (ii) shares of common stock issuable pursuant to equity grants
actually granted pursuant to the 2019 Equity Incentive Plan, and (iii) shares of common stock issuable from exchangeable
securities, including vested partnership interests in KKR Holdings III. Our outstanding common stock on a fully exchanged and
diluted basis does not include shares of common stock available for issuance pursuant to the 2019 Equity Incentive Plan for
which equity grants have not yet been granted or any shares of common stock into which all outstanding shares of Series D
Mandatory Convertible Preferred Stock are convertible.
In this report, the term “GAAP” refers to accounting principles generally accepted in the United States of America. We
disclose certain financial measures in this report that are calculated and presented using methodologies other than in
accordance with GAAP, including Adjusted Net Income, Total Asset Management Segment Revenues, Total Segment Earnings,
Total Investing Earnings, Total Operating Earnings, FRE, and Strategic Holdings Operating Earnings. We believe that providing
these performance measures on a supplemental basis to our GAAP results is helpful to stockholders in assessing the overall
performance of KKR's businesses. These non-GAAP financial measures should not be considered as a substitute for similar
financial measures calculated in accordance with GAAP. We caution readers that these non-GAAP financial measures may
differ from the calculations of other investment managers, and as a result, may not be comparable to similar measures
presented by other investment managers. Reconciliations of these non-GAAP financial measures to the most directly
comparable financial measures calculated and presented in accordance with GAAP, where applicable, are included under
“Management's Discussion and Analysis of Financial Condition and Results of Operations—Segment Balance Sheet Measures
—Reconciliations to GAAP Measures.” This report also uses the terms AUM, FPAUM, and capital invested. You should note
that our calculations of these and other operating metrics may differ from the calculations of other investment managers and,
5
Table of Contents
as a result, may not be comparable to similar metrics presented by other investment managers. These non-GAAP and
operating metrics are defined in the section “Management's Discussion and Analysis of Financial Condition and Results of
Operations—Key Segment and Non-GAAP Performance Measures—Other Terms and Capital Metrics.”
The use of any defined term in this report to mean more than one entity, person, security, or other item collectively is
solely for convenience of reference and in no way implies that such entities, persons, securities, or other items are one
indistinguishable group. For example, notwithstanding the use of the defined terms “KKR,” “we” and “our” in this report to
refer to KKR & Co. Inc. and its subsidiaries, each subsidiary of KKR & Co. Inc. is a standalone legal entity that is separate and
distinct from KKR & Co. Inc. and any of its other subsidiaries. Any KKR entity (including any Global Atlantic entity) referenced
herein is responsible for its own financial, contractual, and legal obligations. Additionally, references to “including“ are for the
purpose of illustration and shall be read to mean “including without limitation“ unless the context explicitly requires
otherwise.
6
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PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
KKR & CO. INC. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED) | |||
(Amounts in Thousands, Except Share and Per Share Data) | |||
September 30, 2026 | December 31, 2025 | ||
Assets | |||
Asset Management and Strategic Holdings | |||
Cash and Cash Equivalents | $ | $ | |
Restricted Cash and Cash Equivalents | |||
Investments | |||
Due from Affiliates | |||
Other Assets | |||
Insurance | |||
Cash and Cash Equivalents | $ | $ | |
Restricted Cash and Cash Equivalents | |||
Investments | |||
Reinsurance Recoverable | |||
Insurance Intangible Assets | |||
Other Assets | |||
Separate Account Assets | |||
Total Assets | $ | $ | |
Liabilities and Equity | |||
Asset Management and Strategic Holdings | |||
Debt Obligations | $ | $ | |
Due to Affiliates | |||
Accrued Expenses and Other Liabilities | |||
Insurance | |||
Policy Liabilities (market risk benefit liabilities: $ September 30, 2026 and December 31, 2025, respectively.) | $ | $ | |
Debt Obligations | |||
Funds Withheld Payable at Interest | |||
Accrued Expenses and Other Liabilities | |||
Reinsurance Liabilities | |||
Separate Account Liabilities | |||
Total Liabilities | |||
Commitments and Contingencies (See Note 24) | |||
Redeemable noncontrolling interests (See Note 23) | |||
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KKR & CO. INC. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED) (CONTINUED) | |||
(Amounts in Thousands, Except Share and Per Share Data) | |||
September 30, 2026 | December 31, 2025 | ||
Stockholders' Equity | |||
Series D Mandatory Convertible Preferred Stock, $ issued and outstanding as of September 30, 2026 and December 31, 2025. | |||
Series I Preferred Stock, $ outstanding as of September 30, 2026 and December 31, 2025. | |||
Common Stock, $ 2025, respectively. | |||
Additional Paid-In Capital | |||
Retained Earnings | |||
Accumulated Other Comprehensive Income (Loss) | ( | ( | |
Total KKR & Co. Inc. Stockholders' Equity | |||
Noncontrolling Interests (See Note 22) | |||
Total Equity | |||
Total Liabilities and Equity | $ | $ | |
See notes to financial statements.
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KKR & CO. INC.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(UNAUDITED) (CONTINUED)
(Amounts in Thousands)
The following presents the portion of the consolidated balances provided in the consolidated statements of financial
condition attributable to consolidated variable interest entities (“VIEs“). As of September 30, 2026 and December 31, 2025,
KKR's consolidated VIEs consist primarily of (i) certain collateralized financing entities (“CFEs“) including those CFEs holding
collateralized loan obligations (“CLOs“), (ii) certain investment funds, and (iii) certain VIEs formed by Global Atlantic. The
noteholders, creditors, and equity holders of these VIEs have no recourse to the assets of any other KKR entity.
With respect to consolidated CFEs and certain investment funds, the following assets may only be used to settle
obligations of these consolidated VIEs and the following liabilities are only the obligations of these consolidated VIEs and not
generally to KKR. Additionally, KKR has no right to the benefits from, nor does KKR bear the risks associated with, the assets
held by these VIEs beyond KKR's beneficial interest therein and any income generated from the VIEs. There are neither explicit
arrangements nor does KKR hold implicit variable interests that would require KKR to provide any material ongoing financial
support to the consolidated VIEs, beyond amounts previously committed to them, if any.
With respect to certain other VIEs consolidated by Global Atlantic, Global Atlantic has formed certain VIEs to either (i)
hold investments, including fixed maturity securities, consumer and other loans, renewable energy, transportation, and real
estate, or (ii) to conduct certain reinsurance activities with third party commitments. These VIEs issue beneficial interests
primarily to Global Atlantic’s insurance companies.
September 30, 2026 | |||||||
Consolidated CFEs | Consolidated Funds and Other Investment Vehicles | Other VIEs | Total | ||||
Assets | |||||||
Asset Management and Strategic Holdings | |||||||
Cash and Cash Equivalents | $ | $ | $ | $ | |||
Restricted Cash and Cash Equivalents | |||||||
Investments | |||||||
Other Assets | |||||||
Insurance | |||||||
Cash and Cash Equivalents | |||||||
Investments | |||||||
Other Assets | |||||||
Total Assets | $ | $ | $ | $ | |||
Liabilities | |||||||
Asset Management and Strategic Holdings | |||||||
Debt Obligations | $ | $ | $ | $ | |||
Accrued Expenses and Other Liabilities | |||||||
Insurance | |||||||
Debt Obligations | |||||||
Accrued Expenses and Other Liabilities | |||||||
Total Liabilities | $ | $ | $ | $ | |||
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KKR & CO. INC.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(UNAUDITED) (CONTINUED)
(Amounts in Thousands)
December 31, 2025 | |||||||
Consolidated CFEs | Consolidated Funds and Other Investment Vehicles | Other VIEs | Total | ||||
Assets | |||||||
Asset Management and Strategic Holdings | |||||||
Cash and Cash Equivalents | $ | $ | $ | $ | |||
Restricted Cash and Cash Equivalents | |||||||
Investments | |||||||
Other Assets | |||||||
Insurance | |||||||
Cash and Cash Equivalents | |||||||
Investments | |||||||
Other Assets | |||||||
Total Assets | $ | $ | $ | $ | |||
Liabilities | |||||||
Asset Management and Strategic Holdings | |||||||
Debt Obligations | $ | $ | $ | $ | |||
Accrued Expenses and Other Liabilities | |||||||
Insurance | |||||||
Debt Obligations | |||||||
Accrued Expenses and Other Liabilities | |||||||
Total Liabilities | $ | $ | $ | $ | |||
See notes to financial statements.
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KKR & CO. INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||
(Amounts in Thousands, Except Share and Per Share Data) | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Revenues | |||||||
Asset Management and Strategic Holdings | |||||||
Fees and Other | $ | $ | $ | $ | |||
Capital Allocation-Based Income (Loss) | |||||||
Insurance | |||||||
Net Premiums | |||||||
Policy Fees | |||||||
Net Investment Income | |||||||
Net Investment-Related Gains (Losses) | ( | ( | ( | ||||
Other Income | |||||||
Total Revenues | |||||||
Expenses | |||||||
Asset Management and Strategic Holdings | |||||||
Compensation and Benefits | |||||||
Occupancy and Related Charges | |||||||
General, Administrative and Other | |||||||
Insurance | |||||||
Net Policy Benefits and Claims (including market risk benefit (gain) loss of $( $ 30, 2026 and 2025, respectively; remeasurement (gain) loss on policy liabilities: $( and $( September 30, 2026 and 2025, respectively.) | |||||||
Amortization of Policy Acquisition Costs | |||||||
Interest Expense | |||||||
Policy and Other Operating Expense | |||||||
Total Expenses | |||||||
Investment Income (Loss) - Asset Management and Strategic Holdings | |||||||
Net Gains (Losses) from Investment Activities | ( | ||||||
Dividend Income | |||||||
Interest Income | |||||||
Interest Expense | ( | ( | ( | ( | |||
Total Investment Income (Loss) | |||||||
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KKR & CO. INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||
(Amounts in Thousands, Except Share and Per Share Data) | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Income (Loss) Before Taxes | |||||||
Income Tax Expense (Benefit) | |||||||
Net Income (Loss) | |||||||
Net Income (Loss) Attributable to Redeemable Noncontrolling Interests | |||||||
Net Income (Loss) Attributable to Noncontrolling Interests | |||||||
Net Income (Loss) Attributable to KKR & Co. Inc. | |||||||
Series D Mandatory Convertible Preferred Stock Dividends | |||||||
Net Income (Loss) Attributable to KKR & Co. Inc. Common Stockholders | $ | $ | $ | $ | |||
Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Common Stock | |||||||
Basic | $ | $ | $ | $ | |||
Diluted | $ | $ | $ | $ | |||
Weighted Average Shares of Common Stock Outstanding | |||||||
Basic | |||||||
Diluted | |||||||
See notes to financial statements.
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KKR & CO. INC. | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) | |||||||
(Amounts in Thousands) | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Net Income (Loss) | $ | $ | $ | $ | |||
Other Comprehensive Income (Loss), Net of Tax: | |||||||
Unrealized Gains (Losses) on Available-For-Sale Securities and Other | ( | ( | |||||
Net effect of changes in discount rates and instrument- specific credit risk on policy liabilities | ( | ( | |||||
Foreign Currency Translation Adjustments | ( | ( | |||||
Comprehensive Income (Loss) | ( | ||||||
Comprehensive Income (Loss) Attributable to Redeemable Noncontrolling Interests | |||||||
Comprehensive Income (Loss) Attributable to Noncontrolling Interests | |||||||
Comprehensive Income (Loss) Attributable to KKR & Co. Inc. | $( | $ | $ | $ | |||
See notes to financial statements.
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KKR & CO. INC. | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED) | |||||||
(Amounts in Thousands, Except Share and Per Share Data) | |||||||
Three Months Ended September 30, 2026 | Nine Months Ended September 30, 2026 | ||||||
Amounts | Shares | Amounts | Shares | ||||
Series D Mandatory Convertible Preferred Stock | |||||||
Beginning of Period | $ | $ | |||||
End of Period | |||||||
Series I Preferred Stock | |||||||
Beginning of Period | — | — | |||||
End of Period | — | — | |||||
Common Stock | |||||||
Beginning of Period | |||||||
Net Delivery of Common Stock (Equity Incentive Plan) | — | — | |||||
Repurchases of Common Stock | ( | ( | ( | ( | |||
Exchange of KKR Restricted Holdings Units | |||||||
Private Placement Share Issuance | — | — | — | ||||
Impact of Acquisition - Arctos (See Note 25) | |||||||
End of Period | |||||||
Additional Paid-In Capital | |||||||
Beginning of Period | |||||||
Net Delivery of Common Stock (Equity Incentive Plan) | ( | ( | |||||
Repurchases of Common Stock | ( | ( | |||||
Equity-Based Compensation (Non-Cash Contribution) | |||||||
Impact of Acquisition - Arctos (See Note 25) | |||||||
Change in KKR & Co. Inc.'s Ownership Interest (See Note 22) | ( | ||||||
Tax Effects of Changes in Ownership and Other | ( | ||||||
End of Period | |||||||
Retained Earnings | |||||||
Beginning of Period | |||||||
Net Income (Loss) Attributable to KKR & Co. Inc. | |||||||
Series D Mandatory Convertible Preferred Stock Dividends ($ | ( | ( | |||||
Common Stock Dividends ($ | ( | ( | |||||
End of Period | |||||||
Accumulated Other Comprehensive Income (Loss) (net of tax) | |||||||
Beginning of Period | ( | ( | |||||
Other Comprehensive Income (Loss) | ( | ( | |||||
Change in KKR & Co. Inc.'s Ownership Interest (See Note 22) | |||||||
End of Period | ( | ( | |||||
Total KKR & Co. Inc. Stockholders' Equity | |||||||
Noncontrolling Interests (See Note 22) | |||||||
Total Equity | $ | $ | |||||
Redeemable Noncontrolling Interests (See Note 23) | $ | $ | |||||
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KKR & CO. INC. | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (CONTINUED) | |||||||
(Amounts in Thousands, Except Share and Per Share Data) | |||||||
Three Months Ended September 30, 2025 | Nine Months Ended September 30, 2025 | ||||||
Amounts | Shares | Amounts | Shares | ||||
Series D Mandatory Convertible Preferred Stock | |||||||
Beginning of Period | $ | $ | |||||
Issuance of Series D Mandatory Convertible Preferred Stock | — | — | |||||
End of Period | |||||||
Series I Preferred Stock | |||||||
Beginning of Period | |||||||
End of Period | |||||||
Common Stock | |||||||
Beginning of Period | |||||||
Net Delivery of Common Stock (Equity Incentive Plan) | |||||||
Repurchases of Common Stock | — | — | — | ( | |||
Clawback of Transfer Restricted Shares | — | ( | — | ( | |||
Exchange of KKR Restricted Holdings Units | |||||||
Private Placement Share Issuance | — | — | — | ||||
End of Period | |||||||
Additional Paid-In Capital | |||||||
Beginning of Period | |||||||
Net Delivery of Common Stock (Equity Incentive Plan) | ( | ( | |||||
Repurchases of Common Stock | ( | ||||||
Equity-Based Compensation (Non-Cash Contribution) | |||||||
Change in KKR & Co. Inc.'s Ownership Interest (See Note 22) | |||||||
Tax Effects of Changes in Ownership and Other | |||||||
End of Period | |||||||
Retained Earnings | |||||||
Beginning of Period | |||||||
Net Income (Loss) Attributable to KKR & Co. Inc. | |||||||
Series D Mandatory Convertible Preferred Stock Dividends ($ $ | ( | ( | |||||
Common Stock Dividends ($ | ( | ( | |||||
End of Period | |||||||
Accumulated Other Comprehensive Income (Loss) (net of tax) | |||||||
Beginning of Period | ( | ( | |||||
Other Comprehensive Income (Loss) | |||||||
Change in KKR & Co. Inc.'s Ownership Interest (See Note 22) | ( | ||||||
End of Period | ( | ( | |||||
Total KKR & Co. Inc. Stockholders' Equity | |||||||
Noncontrolling Interests (See Note 22) | |||||||
Total Equity | $ | $ | |||||
Redeemable Noncontrolling Interests (See Note 23) | $ | $ | |||||
See notes to financial statements.
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KKR & CO. INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | |||
(Amounts in Thousands) | |||
Nine Months Ended September 30, | |||
2026 | 2025 | ||
Operating Activities | |||
Net Income (Loss) | $ | $ | |
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided (Used) by Operating Activities: | |||
Equity-Based Compensation | |||
Net Realized (Gains) Losses – Asset Management and Strategic Holdings | ( | ( | |
Change in Unrealized (Gains) Losses – Asset Management and Strategic Holdings | ( | ||
Capital Allocation-Based (Income) Loss – Asset Management and Strategic Holdings | ( | ( | |
Net Investment and Policy Liability-Related (Gains) Losses – Insurance | |||
Net Accretion and Amortization | ( | ( | |
Interest Credited to Policyholder Account Balances (net of Policy Fees) – Insurance | |||
Other Non-Cash Amounts | |||
Cash Flows Due to Changes in Operating Assets and Liabilities: | |||
Reinsurance Transactions and Acquisitions, Net of Cash Provided – Insurance | |||
Change in Premiums, Notes Receivable and Reinsurance Recoverable, Net of Reinsurance Premiums Payable – Insurance | ( | ||
Change in Deferred Policy Acquisition Costs – Insurance | ( | ( | |
Change in Policy Liabilities and Accruals, Net – Insurance | |||
Change in Consolidation | ( | ( | |
Change in Due from / to Affiliates | ( | ( | |
Change in Other Assets | ( | ( | |
Change in Accrued Expenses and Other Liabilities | |||
Investments Purchased – Asset Management and Strategic Holdings | ( | ( | |
Proceeds from Investments – Asset Management and Strategic Holdings | |||
Net Cash Provided (Used) by Operating Activities | |||
Investing Activities | |||
Acquisitions, Net | ( | ( | |
Purchases of Fixed Assets | ( | ( | |
Investments Purchased – Insurance | ( | ( | |
Proceeds from Investments – Insurance | |||
Other Investing Activities, Net | |||
Net Cash Provided (Used) by Investing Activities | ( | ||
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KKR & CO. INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (CONTINUED) | |||
(Amounts in Thousands) | |||
Nine Months Ended September 30, | |||
2026 | 2025 | ||
Financing Activities | |||
Series D Mandatory Convertible Preferred Stock Dividends | ( | ( | |
Common Stock Dividends | ( | ( | |
Distributions to Redeemable Noncontrolling Interests | ( | ( | |
Contributions from Redeemable Noncontrolling Interests | |||
Distributions to Noncontrolling Interests | ( | ( | |
Contributions from Noncontrolling Interests | |||
Issuance of Series D Mandatory Convertible Preferred Stock (net of issuance costs) | |||
Net Delivery of Common Stock (Equity Incentive Plan) | ( | ( | |
Repurchases of Common Stock | ( | ( | |
Proceeds from Debt Obligations | |||
Repayment of Debt Obligations | ( | ( | |
Financing Costs Paid | ( | ( | |
Additions to Contractholder Deposit Funds – Insurance | |||
Withdrawals from Contractholder Deposit Funds – Insurance | ( | ( | |
Reinsurance Transactions, Net of Cash Provided – Insurance | |||
Other Financing Activity, Net | ( | ||
Net Cash Provided (Used) by Financing Activities | ( | ||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | ( | ||
Net Increase/(Decrease) in Cash, Cash Equivalents and Restricted Cash | $ | $ | |
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | |||
Cash, Cash Equivalents and Restricted Cash, End of Period | $ | $ | |
Cash, Cash Equivalents and Restricted Cash are comprised of the following: | |||
Beginning of the Period | |||
Asset Management and Strategic Holdings | |||
Cash and Cash Equivalents | $ | $ | |
Restricted Cash and Cash Equivalents | |||
Total Asset Management and Strategic Holdings | |||
Insurance | |||
Cash and Cash Equivalents | $ | $ | |
Restricted Cash and Cash Equivalents | |||
Total Insurance | |||
Cash, Cash Equivalents and Restricted Cash, Beginning of Period | $ | $ | |
End of the Period | |||
Asset Management and Strategic Holdings | |||
Cash and Cash Equivalents | $ | $ | |
Restricted Cash and Cash Equivalents | |||
Total Asset Management and Strategic Holdings | |||
Insurance | |||
Cash and Cash Equivalents | $ | $ | |
Restricted Cash and Cash Equivalents | |||
Total Insurance | |||
Cash, Cash Equivalents and Restricted Cash, End of Period | $ | $ | |
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KKR & CO. INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(CONTINUED)
(Amounts in Thousands)
Nine Months Ended September 30, | |||
2026 | 2025 | ||
Supplemental Disclosures of Cash Flow Information | |||
Payments for Interest | $ | $ | |
Payments for Income Taxes, Net of Refunds | $ | $ | |
Payments for Operating Lease Liabilities | $ | $ | |
Supplemental Disclosures of Non-Cash Investing and Financing Activities | |||
Non-Cash Contribution from Noncontrolling Interests | $ | $ | |
Non-Cash Distribution to Noncontrolling Interests | $( | $ | |
Non-Cash Distribution to Redeemable Noncontrolling Interests | $( | $( | |
Non-Cash Repayment of Debt Obligations | $ | $( | |
Debt Obligations – Net Gains (Losses), Translation and Other | $ | $( | |
Non-Cash Consideration for Arctos Acquisition | $ | $ | |
Contractholder Deposit Funds Acquired through Reinsurance Agreements | $ | $ | |
Change in Consolidation | |||
Investments – Asset Management and Strategic Holdings | $( | $ | |
Other Assets | $( | $( | |
Debt Obligations | $( | $ | |
Accrued Expenses and Other Liabilities | $( | $( | |
Noncontrolling Interests | $( | $ | |
Redeemable Noncontrolling Interests | $( | $ | |
See notes to financial statements.
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KKR & CO. INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(All Amounts in Thousands, Except Share and Per Share Data, and Except Where Noted)
1. ORGANIZATION
KKR & Co. Inc. (NYSE: KKR), through its subsidiaries (collectively, “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 The Global Atlantic Financial Group LLC (“TGAFG“ and, together with its insurance
companies and other subsidiaries, “Global Atlantic“).
KKR & Co. Inc. is the parent company of KKR Group Co. Inc., which in turn owns KKR Group Holdings Corp., which is the
general partner of KKR Group Partnership L.P. (“KKR Group Partnership“). KKR & Co. Inc. both indirectly controls KKR Group
Partnership and indirectly holds Class A partner interests in KKR Group Partnership (“KKR Group Partnership Units“)
representing economic interests in KKR's business. As of September 30, 2026, KKR & Co. Inc. held indirectly approximately
through restricted holdings units representing an ownership interest in KKR Group Partnership Units, which may be
exchanged for shares of common stock of KKR & Co. Inc. (“exchangeable securities“). As limited partner interests, these KKR
Group Partnership Units are non-voting and do not entitle anyone other than KKR to manage its business and affairs. KKR
Group Partnership also has outstanding limited partner interests that provide for a carry pool provided by KKR Associates
Holdings L.P. (“Associates Holdings“) and outstanding preferred units with economic terms that mirror the KKR & Co. Inc.
In this report, references to “KKR,“ refer to KKR & Co. Inc. and its subsidiaries, including Global Atlantic, unless the context
requires otherwise, especially in sections where “KKR“ is intended to refer to the asset management and strategic holdings
businesses only. References to our “funds,“ “vehicles“ or “investment vehicles“ refer to a wide array of investment funds,
vehicles, and accounts that are advised, managed or sponsored by one or more subsidiaries of KKR, including collateralized
loan obligations (“CLOs“), certain operating companies and business development companies (“BDCs“), unless the context
requires otherwise.
Reorganization Agreement
On October 8, 2021, KKR entered into a Reorganization Agreement (the “Reorganization Agreement“) with KKR Holdings
L.P. (“KKR Holdings“), KKR Management LLP (which holds the sole outstanding share of Series I preferred stock), Associates
Holdings, and the other parties thereto. Pursuant to the Reorganization Agreement, the parties agreed to undertake a series
of integrated transactions to effect a number of transformative structural and governance changes, some of which were
completed on May 31, 2022, and other changes to be completed in the future. On May 31, 2022, KKR completed the merger
transactions (“Reorganization Mergers“) contemplated by the Reorganization Agreement pursuant to which KKR acquired KKR
Holdings (which changed its name to KKR Group Holdings L.P.) and all of the KKR Group Partnership Units held by it.
Pursuant to the Reorganization Agreement, the following transactions will occur in the future on the Sunset Date (as
defined below):
i.the control of KKR & Co. Inc. by KKR Management LLP and the Series I Preferred Stock held by it will be eliminated,
ii.the voting rights for all common stock of KKR & Co. Inc., including with respect to the election of directors, will be
established on a one vote per share basis, and
iii.KKR will acquire control of Associates Holdings, the entity providing for the allocation of carry proceeds to KKR
employees, also known as the carry pool.
The “Sunset Date” will be the earlier of (i) December 31, 2026 and (ii) the six-month anniversary of the first date on which
the death or permanent disability of both Mr. Henry Kravis and Mr. George Roberts (collectively, “Co-Founders“) has occurred
(or any earlier date consented to by KKR Management LLP in its sole discretion). In addition, KKR Management LLP agreed not
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to transfer its ownership of the sole share of Series I Preferred Stock, and, the changes to occur effective on the Sunset Date
are unconditional commitments of the parties to the Reorganization Agreement.
Acquisition of Arctos
On May 4, 2026, KKR completed the previously announced acquisition of 100 % of Arctos Management Company, LLC
(“Arctos”, and the acquisition, the “Arctos Acquisition”), an investment firm that provides strategic growth capital and
liquidity solutions to sports franchises and fund sponsors. See Note 25 “Acquisition” and Note 19 “Equity-based
Compensation” in our financial statements for further details on the transaction.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying unaudited financial statements of KKR & Co. Inc. have been prepared in accordance with accounting
principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions
to this Quarterly Report on Form 10-Q. The condensed consolidated financial statements (referred to hereafter as the
"financial statements"), including these notes, are unaudited and exclude some of the disclosures required in annual financial
statements. Management believes it has made all necessary adjustments (consisting of only normal recurring items) such that
the financial statements are presented fairly and that estimates made in preparing the financial statements are reasonable
and prudent. The operating results presented for interim periods are not necessarily indicative of the results that may be
expected for any other interim period or for the entire year. The consolidated balance sheet data as of December 31, 2025
were derived from audited financial statements included in KKR & Co. Inc.'s Annual Report on Form 10-K for the fiscal year
ended December 31, 2025 filed with the U.S. Securities and Exchange Commission (“SEC“) on February 27, 2026 (our “Annual
Report”), and the financial statements should be read in conjunction with the audited financial statements included therein.
Additionally, in the accompanying financial statements, the condensed consolidated statements of financial condition are
referred to hereafter as the “consolidated statements of financial condition”; the condensed consolidated statements of
operations are referred to hereafter as the “consolidated statements of operations”; the condensed consolidated statements
of comprehensive income (loss) are referred to hereafter as the "consolidated statements of comprehensive income (loss)”;
the condensed consolidated statements of changes in equity are referred to hereafter as the “consolidated statements of
changes in equity”; and the condensed consolidated statements of cash flows are referred to hereafter as the “consolidated
statements of cash flows."
KKR consolidates the financial results of KKR Group Partnership and its consolidated entities, which include the accounts
of KKR's investment management and capital markets companies, the general partners of certain unconsolidated investment
funds, general partners of consolidated investment funds and their respective consolidated investment funds, Global
Atlantic’s insurance companies and certain other entities including CFEs.
The presentations in the consolidated statement of financial condition and consolidated statement of operations reflect
the significant industry diversification of KKR by its acquisition of Global Atlantic. Global Atlantic operates an insurance
business, and KKR operates an asset management business, which manages the operations of the Strategic Holdings segment
(see Note 21 “Segment Reporting” of our financial statements), each of which possess distinct characteristics. As a result, KKR
developed a two-tiered approach for the financial statements presentation, where Global Atlantic's insurance operations are
presented separately from KKR's asset management business. KKR believes that these separate presentations provide a more
informative view of the consolidated financial position and results of operations than traditional aggregated presentations
and that reporting Global Atlantic’s insurance operations separately is appropriate given, among other factors, the relative
significance of Global Atlantic’s policy liabilities, which are only obligations of the insurance companies that issued or assumed
them. If a traditional aggregate presentation were to be used, KKR would expect to eliminate or combine several identical or
similar captions, which would condense the presentations, but would also reduce the level of information presented. KKR also
believes that using a traditional aggregate presentation would result in no new line items compared to the two-tier
presentation included in the financial statements in this report.
In the ordinary course of business, KKR’s Asset Management business, Strategic Holdings business and Insurance business
enter into transactions with each other, which may include transactions pursuant to their investment management
agreements and certain financing arrangements. The borrowings from these financing arrangements are non-recourse to KKR
beyond the assets designated to support such borrowings. All of the investment management and financing arrangements
amongst KKR segments are eliminated in consolidation.
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All intercompany transactions and balances have been eliminated. When the Insurance business makes an investment in
an entity consolidated by the Asset Management business, the investment is eliminated from the investment balance in the
Insurance tier in the presentation of the consolidated financial statements.
Certain prior period amounts in the accompanying notes have been reclassified to conform to the current period’s
presentation, including the realignment of prior period investment categories to the current year investment category
presentation within Notes 4, 7, 9, and 10. In addition, the equity-based compensation expense was previously presented by
segment, and in the current period, the expense is presented by grant category, within Note 19.
For a detailed discussion about KKR’s significant accounting policies and for further information on accounting updates
adopted in the prior year, see Note 2 to the financial statements in the Annual Report. Other than the items listed below,
during the nine months ended September 30, 2026, there were no significant updates to KKR’s significant accounting policies.
Effective beginning in the first quarter of 2026, the Company changed the presentation of certain operating expenses in
its consolidated statements of operations. Amounts previously presented separately as “Insurance Expenses” and “General,
Administrative and Other” are now presented in a single line item, “Policy and Other Operating Expense”. Prior-period
amounts have been reclassified to conform to the current-period presentation. This change in presentation had no impact on
Goodwill
Goodwill represents the excess of acquisition cost over the fair value of net tangible and intangible assets acquired in
connection with an acquisition. Goodwill is assessed for impairment annually in the third quarter of each fiscal year or more
frequently if circumstances indicate impairment may have occurred. Goodwill and Intangible Assets are recorded in Other
Assets in the accompanying consolidated statements of financial condition.
In accordance with GAAP, KKR has the option to either (i) perform a quantitative impairment test or (ii) first perform a
qualitative assessment (commonly known as "step zero") to determine whether it is more likely than not that the fair value of
a reporting unit is less than its carrying amount, in which case the quantitative test would then be performed. When
performing a quantitative impairment test, KKR compares the fair value of a reporting unit with its carrying amount, including
goodwill. If the fair value of the reporting unit is less than its carrying amount, the goodwill impairment loss is equal to the
excess of the carrying value over the fair value, limited to the carrying amount of goodwill allocated to that reporting unit. The
estimated fair values of the reporting units are derived based on valuation techniques KKR believes market participants would
use for each respective reporting unit. The estimated fair values are generally determined by utilizing a discounted cash flow
methodology and methodologies that incorporate market multiples of certain comparable companies.
KKR tests goodwill for impairment at the reporting unit level on an annual basis, or, when an event occurs or
circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount.
Goodwill was reallocated from the asset management reporting unit to the strategic holdings reporting unit in connection
with the creation of strategic holdings as a separate reporting unit. Goodwill recorded as a result of the acquisition of Global
Atlantic has been allocated to the insurance reporting unit, and goodwill recorded as a result of the acquisitions of KJRM,
Healthcare Royalty Management, LLC, Altavair, and Arctos has been allocated to the asset management reporting unit.
In the third quarter of 2026, KKR performed its annual impairment analysis for the goodwill recorded at the asset
management, strategic holdings and insurance reporting units. KKR elected to perform step zero for purposes of this analysis.
Factors considered in the qualitative assessment of goodwill at each reporting unit included macroeconomic conditions,
industry and market considerations, cost factors, current and projected financial performance, changes in management or
strategy, and market capitalization. Based on this assessment, no goodwill impairment charges were recorded.
Indefinite-lived intangible assets
With respect to its indefinite-lived intangible assets, KKR has the option to either (i) perform a quantitative impairment
test or (ii) first perform a qualitative assessment to determine whether it is more likely than not that the fair value of each
intangible asset is less than its carrying amount, in which case, the quantitative test would be performed.
In the third quarter of 2026, KKR performed its annual impairment analysis on its investment management contracts
recorded at its asset management business and on its insurance licenses in its insurance business, which were determined to
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have indefinite useful lives and are not subject to amortization. KKR elected to perform a qualitative assessment for the
purposes of this analysis. Factors considered in the qualitative assessment included macroeconomic conditions, industry and
market considerations, cost factors, and current and projected financial performance, and legal, regulatory, contractual,
political, and business factors. Based upon this assessment, no impairment charges were recorded.
Finite-lived intangible assets
With respect to its finite-lived intangible assets, KKR performs a two-step test to assess whether events or circumstances
indicate that the carrying amount of an asset is not recoverable. If such events or circumstances are present, an impairment
loss is then recognized as the amount by which the carrying value of the asset exceeds its fair value.
In the third quarter of 2026, KKR performed an impairment assessment of the finite-lived intangible assets in its insurance
business by evaluating current events and circumstances, including market prices, expected use and useful lives of the assets,
changes in legal factors or business climate, cost factors, and operating or cash flows. Based on this assessment, no
impairment charges were recorded.
The preparation of the financial statements in conformity with GAAP requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities, the recognition and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts of revenues, expenses, investment income (loss)
and income taxes during the reporting periods. Such estimates include but are not limited to (i) the valuation of investments
and financial instruments, (ii) the determination of the income tax provision, (iii) the impairment of goodwill and intangible
assets, (iv) the impairment of available-for-sale investments, (v) the valuation of insurance policy liabilities, including market
risk benefits, (vi) the valuation of embedded derivatives in policy liabilities and funds withheld, and (vii) the determination of
the allowance for loan losses.
Certain events particular to each industry and country or region in which the portfolio companies conduct their
operations, as well as general market, economic, political, geopolitical (including uncertainties resulting from changes to U.S.
and global tariff policies, escalating trade tensions, and impacts from the recent conflicts in the Middle East), and regulatory
conditions, and natural disasters and catastrophes, including public health crises, may have a significant negative impact on
KKR’s investments and profitability. Such events are beyond KKR’s control, and the likelihood that they may occur and the
effect on KKR's use of estimates cannot be predicted. Actual results could differ from those estimates, and such differences
Measurement of Credit Losses for Accounts Receivable and Contract Assets
In July 2025, the FASB issued ASU 2025–05, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit
Losses for Accounts Receivable and Contract Assets” (“ASU 2025–05”). ASU 2025–05 simplifies the application of the current
expected credit loss model for current accounts receivable and current contract assets under ASC 606. KKR adopted this
accounting standard effective for the year ended December 31, 2026, and its adoption did not have a material impact on
KKR’s consolidated financial statements.
Future Application of Accounting Standards
Expense Disaggregation Disclosures
In November 2024, the FASB issued ASU 2024–03, “Income Statement—Reporting Comprehensive Income—Expense
Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses” (“ASU 2024–03”). ASU 2024–03
requires a public business entity to provide disaggregated disclosures of certain categories of expenses on an annual and
interim basis including employee compensation, depreciation, and intangible asset amortization for each income statement
expense line item that contains those expenses. The update will be effective for annual periods beginning after December 15,
2026 and interim periods beginning after December 15, 2027. KKR is currently evaluating the impact of adopting this guidance
on its consolidated financial statements and disclosures.
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Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity
In May 2025, the FASB issued ASU 2025–03, “Business Combinations (Topic 805) and Consolidation (Topic 810):
Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity” (“ASU 2025–03”). ASU 2025–03 requires
an entity involved in an acquisition transaction effected primarily by exchanging equity interests when the legal acquiree is a
variable interest entity (“VIE”) that meets the definition of a business to consider certain factors to determine which entity is
the accounting acquirer. The update will be effective for annual periods and interim periods in annual reporting periods
beginning after December 15, 2026. KKR does not expect the adoption to have a material impact on its consolidated financial
statements or disclosures.
Targeted Improvements to the Accounting for Internal-Use Software
In September 2025, the FASB issued ASU 2025–06, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic
350-40): Targeted Improvements to the Accounting for Internal-Use Software” (“ASU 2025–06”). ASU 2025–06 eliminates
accounting consideration of software project development stages; requires capitalizing software costs when (i) management
has authorized and committed to funding the project and (ii) it is ‘probable’ the project will be completed and the software
used to perform its intended function (the ‘probable-to-complete’ threshold). ASU 2025–06 also enhances the guidance
around the ‘probable-to-complete’ threshold. The update will be effective for annual periods and interim periods in annual
reporting periods beginning after December 15, 2027. KKR is currently evaluating the impact of adopting this guidance on its
consolidated financial statements and disclosures.
Financial Instruments—Credit Losses (Topic 326): Purchased Loans
In November 2025, the FASB issued ASU 2025-08, Financial Instruments - Credit Losses (Topic 326) - Purchased Loans.
ASU 2025-08 expands the population of purchased financial assets subject to the gross-up approach in Topic 326. As a result
of this update, loans (excluding credit cards) acquired without credit deterioration and deemed “seasoned” as defined in the
ASU will follow the gross-up approach at acquisition and the initial allowance for credit losses is added to the purchase price
to determine the amortized cost basis of the loans. The update is effective for fiscal years beginning after December 15, 2026,
including interim periods within those fiscal years, and is to be applied prospectively to loans acquired on or after adoption;
early adoption is permitted. KKR is currently evaluating the impact of adopting this guidance on its consolidated financial
statements and disclosures.
Initial Measurement of Paid-in-Kind Dividends on Equity-Classified Preferred Stock
In April 2026, the FASB issued ASU 2026-01, “Equity: Measurement of Paid-in-Kind Dividends on Equity-Classified
Preferred Stock (Topic 505)” (“ASU 2026-01”), which requires that an issuer initially measure paid-in-kind (“PIK”) dividends on
equity-classified preferred stock on the basis of the PIK dividend rate stated in the preferred stock agreement. The
amendments in ASU 2026-01 are effective for annual and interim reporting periods beginning after December 15, 2026. KKR is
currently evaluating the impact of this guidance on its consolidated financial statements and disclosures.
Investment Companies with Equity Securities Subject to Contractual Sale Restrictions
In September 2026, the FASB issued ASU 2026–03, “Fair Value Measurement (Topic 820): Investment Companies with
Equity Securities Subject to Contractual Sale Restrictions” (“ASU 2026–03”). ASU 2026–03 requires investment companies
within the scope of Topic 946 to consider contractual restrictions on the sale of equity securities in the fair value
measurement of those securities and to disclose the amount of the discount attributable to such contractual sale restrictions.
The update will be effective for annual periods beginning after December 15, 2027 and interim periods beginning after
December 15, 2027. KKR is currently evaluating the impact of adopting this guidance on its consolidated financial statements
and disclosures.
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3. REVENUES – ASSET MANAGEMENT AND STRATEGIC HOLDINGS
Holdings revenues consisted of the following:
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Management Fees | $ | $ | $ | $ | |||
Fee Credits | ( | ( | ( | ( | |||
Transaction Fees | |||||||
Monitoring Fees | |||||||
Incentive Fees | |||||||
Expense Reimbursements | |||||||
Consulting Fees | |||||||
Total Fees and Other | |||||||
Carried Interest | |||||||
General Partner Capital Interest | |||||||
Total Capital Allocation-Based Income (Loss) | |||||||
Total Revenues | $ | $ | $ | $ | |||
4. NET GAINS (LOSSES) FROM INVESTMENT ACTIVITIES – ASSET MANAGEMENT AND
STRATEGIC HOLDINGS
Net Gains (Losses) from Investment Activities in the consolidated statements of operations consist primarily of the
realized and unrealized gains and losses on investments (including foreign exchange gains and losses attributable to foreign
denominated investments and related activities), derivatives, and debt obligations, including those for which the fair value
option has been elected. Unrealized gains or losses result from changes in the fair value of these investments, derivatives, and
debt obligations during a period. Upon disposition of an investment, derivative, or debt obligation, previously recognized
unrealized gains or losses are reversed and an offsetting realized gain or loss is recognized in the current period.
Three Months Ended September 30, 2026 | Three Months Ended September 30, 2025 | ||||||||||
Net Realized Gains (Losses) | Net Unrealized Gains (Losses) | Total | Net Realized Gains (Losses) | Net Unrealized Gains (Losses) | Total | ||||||
Private Equity (1) | $ | $( | $ | $ | $ | $ | |||||
Credit (1) | ( | ( | ( | ||||||||
Investments of Consolidated CFEs (1) | ( | ( | ( | ( | |||||||
Real Assets (1) | ( | ||||||||||
Other Investments (1) | ( | ( | ( | ||||||||
Foreign Exchange Forward Contracts and Options (2) | ( | ( | ( | ||||||||
Securities Sold Short (2) | ( | ( | ( | ( | |||||||
Other Derivatives (2) | ( | ( | ( | ( | ( | ( | |||||
Debt Obligations and Other (3) | ( | ( | ( | ||||||||
Net Gains (Losses) From Investment Activities (4) | $ | $( | $( | $ | $ | $ | |||||
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Nine Months Ended September 30, 2026 | Nine Months Ended September 30, 2025 | ||||||||||
Net Realized Gains (Losses) | Net Unrealized Gains (Losses) | Total | Net Realized Gains (Losses) | Net Unrealized Gains (Losses) | Total | ||||||
Private Equity (1) | $ | $( | $ | $ | $ | $ | |||||
Credit (1) | ( | ( | ( | ( | |||||||
Investments of Consolidated CFEs (1) | ( | ( | ( | ( | ( | ( | |||||
Real Assets (1) | ( | ||||||||||
Other Investments (1) | ( | ( | ( | ||||||||
Foreign Exchange Forward Contracts and Options (2) | ( | ( | ( | ||||||||
Securities Sold Short (2) | ( | ( | ( | ( | ( | ||||||
Other Derivatives (2) | ( | ( | ( | ( | ( | ( | |||||
Debt Obligations and Other (3) | |||||||||||
Net Gains (Losses) From Investment Activities (4) | $ | $( | $ | $ | $ | $ | |||||
(1)See Note 7 “Investments.”
(2)See Note 8 “Derivatives” and Note 14 “Other Assets and Accrued Expenses and Other Liabilities.”
(3)See Note 16 “Debt Obligations.”
(4)For the three and nine months ended September 30, 2026 and 2025, net gains (losses) from Equity Method investments were $(32.5 ) million and $221.5
million, respectively, and $382.8 million and $805.3 million, respectively.
5. NET INVESTMENT INCOME – INSURANCE
Net investment income for our Insurance segment is comprised primarily of (i) interest income, including amortization of
premiums and accretion of discounts, (ii) dividend income from common and preferred stock, (iii) earnings from investments
accounted for under equity method accounting, and (iv) lease income on real assets.
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Fixed Maturity Securities | $ | $ | $ | $ | |||
Mortgage and Other Loan Receivables | |||||||
Real Assets | |||||||
Short-Term and Other Investment Income | |||||||
Income Assumed from Funds Withheld Receivable at Interest | |||||||
Policy Loans | |||||||
Income Ceded to Funds Withheld Payable at Interest | ( | ( | ( | ( | |||
Total Investment Income (Losses) | |||||||
Less Investment Expenses: | |||||||
Investment Management and Administration | |||||||
Real Asset Depreciation and Maintenance | |||||||
Interest Expense on Derivative Collateral and Repurchase Agreements | |||||||
Net Investment Income | $ | $ | $ | $ | |||
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6. NET INVESTMENT-RELATED GAINS (LOSSES) – INSURANCE
Net investment-related gains (losses) from insurance operations primarily consist of (i) realized gains (losses) from the
disposal of investments, (ii) unrealized gains (losses) from investments held for trading, equity securities, real estate
investments accounted for under investment company accounting, and investments with fair value remeasurements
recognized in earnings as a result of the election of a fair-value option, (iii) unrealized gains (losses) on funds withheld
receivable and payable at interest, (iv) unrealized gains (losses) from derivatives (excluding certain derivatives designated as
hedge accounting instruments), and (v) allowances for credit losses, and other impairments of investments.
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Realized Gains (Losses) on Available-For-Sale Fixed Maturity Securities | $( | $( | $( | $( | |||
(Addition To) Release of Credit Loss Allowances on Available-For- Sale Securities | ( | ( | ( | ( | |||
(Addition To) Release of Credit Loss Allowances on Mortgage and Other Loan Receivables | ( | ( | ( | ( | |||
(Addition To) Release of Credit Loss Allowances on Unfunded Commitments | ( | ( | |||||
Impairment of Available-for-Sale Fixed Maturity Securities Due to Intent to Sell | ( | ||||||
Unrealized Gains (Losses) on Fixed Maturity Securities Classified as Trading | ( | ( | |||||
Unrealized Gains (Losses) on Other Investments Recognized Under the Fair-Value Option and Equity Investments | ( | ( | |||||
Unrealized Gains (Losses) on Real Assets | |||||||
Realized Gains (Losses) on Real Assets | ( | ( | |||||
Net Gains (Losses) on Derivative Instruments | ( | ||||||
Realized Gains (Losses) on Funds Withheld at Interest Payable Portfolio | ( | ||||||
Realized Gains (Losses) on Funds Withheld at Interest Receivable Portfolio | ( | ( | ( | ( | |||
Foreign Exchange Gains (Losses) on Non-USD Denominated Investments | ( | ( | |||||
Other Realized Gains (Losses) | ( | ||||||
Net Investment-Related Gains (Losses) | $( | $ | $( | $( | |||
Allowance for Credit Losses
Available-For-Sale Fixed Maturity Securities
Global Atlantic:
Three Months Ended September 30, 2026 | Three Months Ended September 30, 2025 | ||||||||||
Corporate | Structured | Total | Corporate | Structured | Total | ||||||
Balance, as of Beginning of Period | $ | $ | $ | $ | $ | $ | |||||
Initial Credit Loss Allowance Recognized on Securities with No Previously Recognized Allowance | |||||||||||
Accretion of Initial Credit Loss Allowance on PCD Securities | |||||||||||
Reductions Due to Sales (or Maturities, Pay Downs or Prepayments) During the Period of Securities with a Previously Recognized Credit Loss Allowance | ( | ( | ( | ( | ( | ( | |||||
Net Additions / Reductions for Securities with a Previously Recognized Credit Loss Allowance | ( | ( | |||||||||
Balances Charged Off | ( | ( | ( | ( | |||||||
Balance, as of End of Period | $ | $ | $ | $ | $ | $ | |||||
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Nine Months Ended September 30, 2026 | Nine Months Ended September 30, 2025 | ||||||||||
Corporate | Structured | Total | Corporate | Structured | Total | ||||||
Balance, as of Beginning of Period | $ | $ | $ | $ | $ | $ | |||||
Initial Credit Loss Allowance Recognized on Securities with No Previously Recognized Allowance | |||||||||||
Accretion of Initial Credit Loss Allowance on PCD Securities | |||||||||||
Reductions Due to Sales (or Maturities, Pay Downs or Prepayments) During the Period of Securities with a Previously Recognized Credit Loss Allowance | ( | ( | ( | ( | ( | ( | |||||
Net Additions / Reductions for Securities with a Previously Recognized Credit Loss Allowance | ( | ||||||||||
Balances Charged Off | ( | ( | ( | ( | |||||||
Balance, as of End of Period | $ | $ | $ | $ | $ | $ | |||||
summarized below:
Three Months Ended September 30, 2026 | Three Months Ended September 30, 2025 | ||||||||||||||
Commercial Mortgage Loans | Residential Mortgage Loans | Consumer and Other Loan Receivables | Total | Commercial Mortgage Loans | Residential Mortgage Loans | Consumer and Other Loan Receivables | Total | ||||||||
Balance, as of Beginning of Period | $ | $ | $ | $ | $ | $ | $ | $ | |||||||
Net Provision (Release) | |||||||||||||||
Charge-Offs | ( | ( | ( | ( | ( | ( | ( | ( | |||||||
Recoveries of Amounts Previously Charged-Off | |||||||||||||||
Balance, as of End of Period | $ | $ | $ | $ | $ | $ | $ | $ | |||||||
Nine Months Ended September 30, 2026 | Nine Months Ended September 30, 2025 | ||||||||||||||
Commercial Mortgage Loans | Residential Mortgage Loans | Consumer and Other Loan Receivables | Total | Commercial Mortgage Loans | Residential Mortgage Loans | Consumer and Other Loan Receivables | Total | ||||||||
Balance, as of Beginning of Period | $ | $ | $ | $ | $ | $ | $ | $ | |||||||
Net Provision (Release) | ( | ||||||||||||||
Charge-Offs | ( | ( | ( | ( | ( | ( | ( | ( | |||||||
Recoveries of Amounts Previously Charged-Off | |||||||||||||||
Balance, as of End of Period | $ | $ | $ | $ | $ | $ | $ | $ | |||||||
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maturity securities were as follows:
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
AFS Fixed Maturity Securities: | |||||||
Proceeds from Voluntary Sales | $ | $ | $ | $ | |||
Gross Gains | $ | $ | $ | $ | |||
Gross Losses | $( | $( | $( | $( | |||
7. INVESTMENTS
September 30, 2026 | December 31, 2025 | ||
Asset Management and Strategic Holdings | |||
Private Equity (1) | $ | $ | |
Credit | |||
Investments of Consolidated CFEs | |||
Real Assets | |||
Equity Method - Capital Allocation-Based Income | |||
Other Investments | |||
Investments – Asset Management and Strategic Holdings (2) | $ | $ | |
Insurance | |||
Fixed Maturity Securities, Available-For-Sale (3) | $ | $ | |
Mortgage and Other Loan Receivables | |||
Fixed Maturity Securities, Trading (4) | |||
Real Assets (5)(6) | |||
Other Investments (6)(7) | |||
Funds Withheld Receivable at Interest | |||
Policy Loans | |||
Investments – Insurance (8) | $ | $ | |
Total Investments | $ | $ |
(1)On August 31, 2026, KKR announced a definitive agreement under which it will sell its interest in USI Insurance Services LLC, subject to certain closing
conditions.
(2)As of September 30, 2026, and December 31, 2025, investments of $10.0 billion and $11.5 billion were accounted for using the equity method of
accounting within the asset classes Private Equity, Credit, Real Assets, and Other.
(3)Amortized cost of $99.2 billion and $96.7 billion, net of credit loss allowances of $285.1 million and $288.7 million as of September 30, 2026, and
December 31, 2025, respectively.
(4)Amortized cost of $29.6 billion and $27.2 billion as of September 30, 2026, and December 31, 2025, respectively. Trading fixed maturity securities are
primarily held to back funds withheld payable at interest. The investment performance on these investments is ceded to third-party reinsurers.
(5)Net of accumulated depreciation of $833.9 million and $782.2 million as of September 30, 2026, and December 31, 2025, respectively.
(6)Real assets of $1.0 billion and $1.1 billion as of September 30, 2026 and December 31, 2025, respectively, and other investments of $787.4 million and
$855.0 million as of September 30, 2026, and December 31, 2025, respectively, are accounted for using the equity method of accounting. In addition,
Global Atlantic has investments that would otherwise require the equity method of accounting for which the fair value option has been elected. The
carrying amount of real assets and other investments for which the fair value option has been elected was $867.2 million and $615.9 million, respectively,
as of September 30, 2026, and the carrying amount of these investments was $730.7 million and $436.3 million, respectively, as of December 31, 2025.
Global Atlantic's maximum exposure to loss related to equity method investments, including those for which fair value has been elected, is limited to the
carrying value of these investments plus unfunded commitments of $401.7 million and $447.2 million as of September 30, 2026, and December 31, 2025,
respectively. Real assets includes $3.2 billion of certain investments held for sale as of September 30, 2026; the estimated fair value of these assets, less
costs to sell, exceeds their carrying value.
(7)Other investments include equity securities, limited partnership interests, investments in FHLB common stock, and other interests.
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(8)From time to time, Global Atlantic makes investments with counterparties that are managed by or are affiliates of KKR. As of September 30, 2026, and
December 31, 2025, the carrying value reflects the elimination for the portion of applicable investments that are held in Asset Management and Strategic
As of September 30, 2026, and December 31, 2025, there were no investments which represented greater than 5
total investments.
Fixed Maturity Securities
Cost or Amortized Cost | Allowance for Credit Losses (1)(2) | Gross Unrealized | Fair Value | ||||||
As of September 30, 2026 | Gains | Losses | |||||||
AFS Fixed Maturity Securities Portfolio by Type: | |||||||||
U.S. Government and Agencies | $ | $ | $ | $( | $ | ||||
U.S. State, Municipal and Political Subdivisions | ( | ||||||||
Corporate | ( | ( | |||||||
Residential Mortgage-Backed Securities, or “RMBS” | ( | ( | |||||||
Commercial Mortgage-Backed Securities, or “CMBS” | ( | ( | |||||||
CLOs | ( | ( | |||||||
Asset-Backed Securities, or “ABSs” | ( | ( | |||||||
Total AFS Fixed Maturity Securities | $ | $( | $ | $( | $ | ||||
(1)Represents the cumulative amount of credit impairments that have been recognized in the consolidated statements of operations (as net investment
gains (losses)) or that were recognized as a gross-up of the purchase price of PCD securities. Amount excludes unrealized losses related to non-credit
impairment.
(2)Includes credit loss allowances on purchase-credit deteriorated fixed maturity securities of $(6.1 ) million.
Cost or Amortized Cost | Allowance for Credit Losses (1)(2) | Gross Unrealized | Fair Value | ||||||
As of December 31, 2025 | Gains | Losses | |||||||
AFS Fixed Maturity Securities Portfolio by Type: | |||||||||
U.S. Government and Agencies | $ | $ | $ | $( | $ | ||||
U.S. State, Municipal and Political Subdivisions | ( | ||||||||
Corporate | ( | ( | |||||||
RMBS | ( | ( | |||||||
CMBS | ( | ( | |||||||
CLOs | ( | ( | |||||||
ABSs | ( | ( | |||||||
Total AFS Fixed Maturity Securities | $ | $( | $ | $( | $ | ||||
(1)Represents the cumulative amount of credit impairments that have been recognized in the consolidated statements of operations (as net investment
gains (losses)) or that were recognized as a gross-up of the purchase price of PCD securities. Amount excludes unrealized losses related to non-credit
impairment.
(2)Includes credit loss allowances on purchase-credit deteriorated fixed maturity securities of $(5.8 ) million.
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As of September 30, 2026 | Cost or Amortized Cost (Net of Allowance) | Fair Value | |
Due in One Year or Less | $ | $ | |
Due After One Year Through Five Years | |||
Due After Five Years Through Ten Years | |||
Due After Ten Years | |||
Subtotal | |||
RMBS | |||
CMBS | |||
CLOs | |||
ABSs and other structured securities | |||
Total AFS Fixed Maturity Securities | $ | $ |
Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay
obligations with or without call or prepayment penalties, or Global Atlantic may have the right to put or sell the obligations
back to the issuers. Structured securities are shown separately as they have periodic payments and are not due at a single
maturity.
Securities in a Continuous Unrealized Loss Position
loss position:
Less Than 12 Months | 12 Months or More | Total | ||||||||||
As of September 30, 2026 | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||
AFS Fixed Maturity Securities Portfolio by Type: | ||||||||||||
U.S. Government and Agencies | $ | $( | $ | $( | $ | $( | ||||||
U.S. State, Municipal and Political Subdivisions | ( | ( | ( | |||||||||
Corporate | ( | ( | ( | |||||||||
RMBS | ( | ( | ( | |||||||||
CMBS | ( | ( | ( | |||||||||
CLOs | ( | ( | ( | |||||||||
ABSs | ( | ( | ( | |||||||||
Total AFS Fixed Maturity Securities in a Continuous Loss Position | $ | $( | $ | $( | $ | $( | ||||||
Less Than 12 Months | 12 Months or More | Total | ||||||||||
As of December 31, 2025 | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||
AFS Fixed Maturity Securities Portfolio by Type: | ||||||||||||
U.S. Government and Agencies | $ | $( | $ | $( | $ | $( | ||||||
U.S. State, Municipal and Political Subdivisions | ( | ( | ( | |||||||||
Corporate | ( | ( | ( | |||||||||
RMBS | ( | ( | ( | |||||||||
CMBS | ( | ( | ( | |||||||||
CLOs | ( | ( | ( | |||||||||
ABSs | ( | ( | ( | |||||||||
Total AFS Fixed Maturity Securities in a Continuous Loss Position | $ | $( | $ | $( | $ | $( | ||||||
Unrealized gains and losses can be created by changing interest rates or several other factors, including changing credit
spreads. Global Atlantic had gross unrealized losses on below investment grade AFS fixed maturity securities of $277.8 million
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and $279.7 million as of September 30, 2026, and December 31, 2025, respectively. The single largest unrealized loss on AFS
fixed maturity securities was $79.7 million and $43.8 million as of September 30, 2026, and December 31, 2025, respectively.
Global Atlantic had 6,696 and 4,294 securities in an unrealized loss position as of September 30, 2026, and December 31,
2025, respectively.
As of September 30, 2026, AFS fixed maturity securities in an unrealized loss position for 12 months or more consisted of
allowance for credit losses had a fair value and gross unrealized losses of $1.1 billion and $130.8 million, respectively, as of
September 30, 2026. These fixed maturity securities primarily relate to Corporate, RMBS, and U.S. state, municipal and
political subdivisions fixed maturity securities, which have depressed values due primarily to an increase in interest rates since
the purchase of these securities. Unrealized losses were not recognized in net income on these fixed maturity securities since
Global Atlantic neither intends to sell the securities nor does it believe that it is more likely than not that it will be required to
sell these securities before recovery of their cost or amortized cost basis. For securities with significant declines in value,
individual security level analysis was performed utilizing underlying collateral default expectations, market data, and industry
analyst reports.
Mortgage and Other Loan Receivables
September 30, 2026 | December 31, 2025 | ||
Commercial Mortgage Loans | $ | $ | |
Residential Mortgage Loans | |||
Consumer Loans | |||
Other Loan Receivables(1) | |||
Total Mortgage and Other Loan Receivables(2) | $ | $ | |
Allowance for Credit Losses(3) | ( | ( | |
Total Mortgage and Other Loan Receivables, Net of Allowance for Credit Losses | $ | $ |
(1)As of September 30, 2026, other loan receivables consisted primarily of business loans, renewable energy development loans, warehouse facility loans
backed by agricultural mortgages, and loans collateralized by aircraft of $320.3 million, $205.6 million, $139.6 million, and $108.5 million, respectively. As
of December 31, 2025, other loan receivables consisted primarily of business loans, warehouse facility loans backed by agricultural mortgages, renewable
energy development loans, loans collateralized by aircraft, and loans collateralized by residential mortgages, of $415.6 million, $368.5 million, $347.2
million, $245.7 million, and $200.2 million, respectively.
(2)Includes $12.6 billion and $11.2 billion of loans carried at fair value using the fair value option as of September 30, 2026, and December 31, 2025,
respectively. These loans had unpaid principal balances of $13.0 billion and $11.3 billion as of September 30, 2026, and December 31, 2025, respectively.
(3)Includes credit loss allowances on purchase-credit deteriorated mortgage and other loan receivables of $(34.3 ) million and $(41.6 ) million as of
September 30, 2026, and December 31, 2025, respectively.
Years | Residential | Commercial | Total Mortgage Loans | ||
Remainder of 2026 | $ | $ | $ | ||
2027 | |||||
2028 | |||||
2029 | |||||
2030 | |||||
2031 | |||||
Thereafter | |||||
Total | $ | $ | $ |
Actual maturities could differ from contractual maturities because borrowers may have the right to prepay (with or
without prepayment penalties) and loans may be refinanced.
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Global Atlantic diversifies its mortgage loan portfolio by both geographic region and property type to reduce
concentration risk. The following tables present the mortgage loans by geographic region and property type:
Mortgage Loans – Carrying Value by Geographic Region | September 30, 2026 | December 31, 2025 | |||||
South Atlantic | $ | $ | |||||
Pacific | |||||||
Middle Atlantic | |||||||
West South Central | |||||||
Mountain | |||||||
New England | |||||||
East North Central | |||||||
East South Central | |||||||
West North Central | |||||||
International | |||||||
Other Regions | |||||||
Total by Geographic Region | $ | $ | |||||
Mortgage Loans – Carrying Value by Property Type | September 30, 2026 | December 31, 2025 | |||||
Residential | $ | $ | |||||
Multi-Family | |||||||
Industrial | |||||||
Office Building | |||||||
Other Property Types | |||||||
Retail | |||||||
Warehouse | |||||||
Total by Property Type | $ | $ | |||||
As of September 30, 2026, and December 31, 2025, Global Atlantic had $695.6 million and $318.4 million of mortgage
loans that were 90 days or more past due or are in the process of foreclosure, respectively, and have been classified as non-
income producing (i.e., in a non-accrual status). Global Atlantic ceases accrual of interest on loans that are more than 90 days
past due or are in the process of foreclosure and recognizes income as cash is received.
Credit Quality Indicators
Mortgage and Consumer Loan Receivable Performance Status
performance status as of September 30, 2026, and December 31, 2025:
By Year of Origination | ||||||||||||||
Performance Status as of September 30, 2026 | 2026 | 2025 | 2024 | 2023 | 2022 | Prior | Total | |||||||
Commercial Mortgage Loans | ||||||||||||||
Gross Charge-Offs for the Nine Months Ended September 30, 2026 | $ | $ | $ | $ | $ | $( | $( | |||||||
Current | $ | $ | $ | $ | $ | $ | $ | |||||||
30 to 59 Days Past Due | ||||||||||||||
60 to 89 Days Past Due | ||||||||||||||
90 Days or More Past Due or in Process of Foreclosure | ||||||||||||||
Total Commercial Mortgage Loans | $ | $ | $ | $ | $ | $ | $ | |||||||
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By Year of Origination | ||||||||||||||
Performance Status as of September 30, 2026 | 2026 | 2025 | 2024 | 2023 | 2022 | Prior | Total | |||||||
Residential Mortgage Loans | ||||||||||||||
Gross Charge-Offs for the Nine Months Ended September 30, 2026 | $ | $( | $( | $( | $( | $( | $( | |||||||
Current | $ | $ | $ | $ | $ | $ | $ | |||||||
30 to 59 Days Past Due | ||||||||||||||
60 to 89 Days Past Due | ||||||||||||||
90 Days or More Past Due or in Process of Foreclosure | ||||||||||||||
Total Residential Mortgage Loans | $ | $ | $ | $ | $ | $ | $ | |||||||
Consumer Loans | ||||||||||||||
Gross Charge-Offs for the Nine Months Ended September 30, 2026 | $ | $( | $( | $( | $( | $( | $( | |||||||
Current | $ | $ | $ | $ | $ | $ | $ | |||||||
30 to 59 Days Past Due | ||||||||||||||
60 to 89 Days Past Due | ||||||||||||||
90 Days or More Past Due or in Process of Foreclosure | ||||||||||||||
Total Consumer Loans | $ | $ | $ | $ | $ | $ | $ | |||||||
Total Mortgage and Consumer Loan Receivables | $ | $ | $ | $ | $ | $ | $ | |||||||
By Year of Origination | ||||||||||||||
Performance Status as of December 31, 2025 | 2025 | 2024 | 2023 | 2022 | 2021 | Prior | Total | |||||||
Commercial Mortgage Loans | ||||||||||||||
Gross Charge-Offs for the Twelve Months Ended December 31, 2025 | $ | $ | $ | $ | $( | $( | $( | |||||||
Current | $ | $ | $ | $ | $ | $ | $ | |||||||
30 to 59 Days Past Due | ||||||||||||||
60 to 89 Days Past Due | ||||||||||||||
90 Days or More Past Due or in Process of Foreclosure | ||||||||||||||
Total Commercial Mortgage Loans | $ | $ | $ | $ | $ | $ | $ | |||||||
Residential Mortgage Loans | ||||||||||||||
Gross Charge-Offs for the Twelve Months Ended December 31, 2025 | $ | $( | $( | $( | $( | $( | $( | |||||||
Current | $ | $ | $ | $ | $ | $ | $ | |||||||
30 to 59 Days Past Due | ||||||||||||||
60 to 89 Days Past Due | ||||||||||||||
90 Days or More Past Due or in Process of Foreclosure | ||||||||||||||
Total Residential Mortgage Loans | $ | $ | $ | $ | $ | $ | $ | |||||||
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By Year of Origination | ||||||||||||||
Performance Status as of December 31, 2025 | 2025 | 2024 | 2023 | 2022 | 2021 | Prior | Total | |||||||
Consumer Loans | ||||||||||||||
Gross Charge-Offs for the Twelve Months Ended December 31, 2025 | $( | $( | $( | $( | $( | $( | $( | |||||||
Current | $ | $ | $ | $ | $ | $ | $ | |||||||
30 to 59 Days Past Due | ||||||||||||||
60 to 89 Days Past Due | ||||||||||||||
90 Days or More Past Due or in Process of Foreclosure | ||||||||||||||
Total Consumer Loans | $ | $ | $ | $ | $ | $ | $ | |||||||
Total Mortgage and Consumer Loan Receivables | $ | $ | $ | $ | $ | $ | $ | |||||||
Loan-to-Value Ratio on Mortgage Loans
The loan-to-value ratio is expressed as a percentage of the current amount of the loan relative to the value of the
underlying collateral. The following table summarizes Global Atlantic's loan-to-value ratios for its commercial mortgage loans
as of September 30, 2026, and December 31, 2025:
Loan-to-Value as of September 30, 2026, by Year of Origination | Carrying Value Loan-to-Value 70% and Less | Carrying Value Loan-to-Value 71% - 90% | Carrying Value Loan-to-Value Over 90% | Total Carrying Value | ||||
2026 | $ | $ | $ | $ | ||||
2025 | ||||||||
2024 | ||||||||
2023 | ||||||||
2022 | ||||||||
2021 | ||||||||
Prior | ||||||||
Total Commercial Mortgage Loans | $ | $ | $ | $ |
Loan-to-Value as of December 31, 2025, by Year of Origination | Carrying Value Loan-to-Value 70% and Less | Carrying Value Loan-to-Value 71% - 90% | Carrying Value Loan-to-Value Over 90% | Total Carrying Value | ||||
2025 | $ | $ | $ | $ | ||||
2024 | ||||||||
2023 | ||||||||
2022 | ||||||||
2021 | ||||||||
2020 | ||||||||
Prior | ||||||||
Total Commercial Mortgage Loans | $ | $ | $ | $ |
Changing economic conditions and updated assumptions affect Global Atlantic's assessment of the collectibility of
commercial mortgage loans. Changing vacancies and rents are incorporated into the analysis that Global Atlantic performs to
measure the allowance for credit losses. In addition, Global Atlantic continuously monitors its commercial mortgage loan
portfolio to identify risk. Areas of emphasis are properties that have exposure to specific geographic events or have
deteriorating credit.
The weighted average loan-to-value ratio for Global Atlantic's residential mortgage loans was 62 % and 64 % as of
September 30, 2026, and December 31, 2025, respectively.
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Loan Modifications
Global Atlantic may modify the terms of a loan when the borrower is experiencing financial difficulties, as a means to
optimize recovery of amounts due on the loan. Modifications may involve temporary relief, such as payment forbearance for
a short period of time (where interest continues to accrue) or may involve more substantive changes to a loan. Changes to the
terms of a loan, pursuant to a modification agreement, are factored into the analysis of the loan’s expected credit losses,
under the allowance model applicable to the loan.
For commercial mortgage loans, modifications for borrowers experiencing financial difficulty are tailored for individual
loans and may include interest rate relief, maturity extensions or, less frequently, principal forgiveness. For both residential
mortgage loans and consumer loans, the most common modifications for borrowers experiencing financial difficulty, aside
from insignificant delays in payment, typically involve deferral of missed payments to the end of the loan term, interest rate
relief, or maturity extensions.
modifications have been granted during the nine months ended September 30, 2026 and 2025:
Nine Months Ended September 30, 2026 by Loan Type | Deferral of Amounts Due | Interest Rate Relief | Maturity Extension | Combination(1) | Total | Percentage of Total Carrying Value Outstanding | |||||
Commercial Mortgage Loans | $ | $ | $ | $ | $ | ||||||
Residential Mortgage Loans | |||||||||||
Consumer Loans | |||||||||||
Total(2) | $ | $ | $ | $ | $ |
(1)Includes modifications involving a combination of deferral of amounts due, interest rate relief, or maturity extension.
(2)Excludes loans that were modified during the year, but were repaid in full by year end.
Nine Months Ended September 30, 2025 by Loan Type | Deferral of Amounts Due | Interest Rate Relief | Maturity Extension | Combination(1) | Total | Percentage of Total Carrying Value Outstanding | |||||
Commercial Mortgage Loans | $ | $ | $ | $ | $ | ||||||
Residential Mortgage Loans | |||||||||||
Consumer Loans | |||||||||||
Total(2) | $ | $ | $ | $ | $ |
(1)Includes modifications involving a combination of deferral of amounts due, interest rate relief, or maturity extension.
(2)Excludes loans that were modified during the year, but were repaid in full by year end.
All of the commercial mortgage loans that had a combination of modifications had both interest rate relief and maturity
extensions. For commercial mortgage loans granted interest rate relief, this relief may involve a change from a floating rate to
fixed, a decrease in fixed rate, or a decrease in spread. Interest rate relief provided during the nine months ended
September 30, 2026 and 2025, was at a weighted average rate of 7.7 % and 4.2 %, respectively. The maturity extensions for
commercial mortgage loans added a weighted-average of 1.3 years and 1.9 years to the life of the loans, for the nine months
ended September 30, 2026 and 2025, respectively. As of September 30, 2026, Global Atlantic has commitments to lend
additional funds of $84.1 million for the modified commercial mortgage loans disclosed above.
2026:
Performance Status as of September 30, 2026 by Loan Type | Current | 30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More Past Due or in Process of Foreclosure | Total | ||||
Commercial Mortgage Loans | $ | $ | $ | $ | $ | ||||
Residential Mortgage Loans | |||||||||
Consumer Loans | |||||||||
Total(1) | $ | $ | $— | $ | 0 | $ | $ |
(1)Loans may have been modified more than once during the twelve months period; in this circumstance, the loan is only included once in this table.
Modified loans that were subsequently repaid are excluded.
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Repurchase Agreement Transactions
As of September 30, 2026, and December 31, 2025, Global Atlantic participated in repurchase agreements with a notional
value of $589.4 million and $663.8 million, respectively. As collateral for these transactions, Global Atlantic typically posts AFS
fixed maturity securities and/or mortgage and other loan receivables, which are included in Insurance – Investments in the
consolidated statements of financial condition. The gross obligation for repurchase agreements is reported in Other Liabilities
in the consolidated statements of financial condition.
of the repurchase agreements as of September 30, 2026, and December 31, 2025 is presented in the following tables:
As of September 30, 2026 | Overnight | <30 Days | 30 - 90 Days | > 90 Days | Total | ||||
Residential Mortgage Loans | $ | $ | $ | $ | $ | ||||
Total Assets Pledged | $ | $ | $ | $ | $ |
As of December 31, 2025 | Overnight | <30 Days | 30 - 90 Days | > 90 Days | Total | ||||
Residential Mortgage Loans | $ | $ | $ | $ | $ | ||||
Total Assets Pledged | $ | $ | $ | $ | $ |
Other Pledges and Restrictions
Certain Global Atlantic subsidiaries are members of regional banks in the Federal Home Loan Banks (“FHLB”) system and
such membership requires the members to own stock in these FHLBs. Global Atlantic owns an aggregate of $153.9 million and
$122.0 million (accounted for at cost basis) of stock in FHLBs as of September 30, 2026, and December 31, 2025, respectively.
In addition, Global Atlantic insurance company subsidiaries have entered into funding agreements with the FHLB, which
require that Global Atlantic pledge eligible assets, such as fixed maturity securities and mortgage loans, as collateral. Assets
pledged as collateral for these funding agreements had a carrying value of $9.6 billion and $7.1 billion as of September 30,
2026, and December 31, 2025, respectively.
The capital stock of one of Global Atlantic’s equity method investments has been pledged as collateral security for the
due payment and performance of the debt obligations of the investee. Global Atlantic’s investment subject to this pledge had
a carrying value of $829.7 million and $873.6 million as of September 30, 2026, and December 31, 2025, respectively.
Insurance – Statutory Deposits
As of September 30, 2026, and December 31, 2025, the carrying value of the assets on deposit with various state and U.S.
governmental authorities were $134.4 million and $145.1 million, respectively.
8. DERIVATIVES
Asset Management and Strategic Holdings
KKR and certain of its consolidated funds have entered into derivative transactions as part of the overall risk management
for their investment strategies. These derivative contracts are not designated as hedging instruments for accounting
purposes. Such contracts may include forward, swap, and option contracts related to foreign currencies and interest rates to
manage foreign exchange risk and interest rate risk arising from certain assets and liabilities. All derivatives are recognized in
Other Assets or Accrued Expenses and Other Liabilities and are presented on a gross basis in the consolidated statements of
financial condition and measured at fair value with changes in fair value recorded in Net Gains (Losses) from Investment
Activities in the accompanying consolidated statements of operations. KKR's derivative financial instruments contain credit
risk to the extent that its counterparties may be unable to meet the terms of the agreements. KKR attempts to reduce this risk
by limiting its counterparties to major financial institutions with strong credit ratings.
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Insurance
Global Atlantic holds derivative instruments that are primarily used in its hedge program. Global Atlantic has established
a hedge program that seeks to mitigate economic impacts primarily from interest rate and equity price movements, while
taking into consideration accounting and capital impacts.
Global Atlantic hedges interest rate and equity market risks associated with its insurance liabilities, including fixed-
indexed annuities, indexed universal life policies, variable annuity policies, and variable universal life policies, among others.
For fixed-indexed annuities and indexed universal life policies, Global Atlantic generally seeks to use static hedges to offset
the exposure primarily created by changes in its embedded derivative balances. Global Atlantic generally purchases options
which replicate the crediting rate strategies, often in the form of call spreads. Call spreads are the purchase of a call option
matched by the sale of a different call option. For variable annuities and variable universal life policies, Global Atlantic
generally seeks to dynamically hedge its exposure to changes in the value of the guarantee it provides to policyholders. Doing
so requires the active trading of several financial instruments to respond to changes in market conditions. In addition, Global
Atlantic enters into inflation swaps to manage inflation risk associated with inflation-indexed preneed policies.
In the context of specific reinsurance transactions in the institutional channel or acquisitions, Global Atlantic may also
enter into hedges which are designed to limit short-term market risks to the economic value of the target assets. From time to
time, Global Atlantic also enters into hedges designed to mitigate interest rate and credit risk in investment income, interest
expense, and fair value of assets and liabilities. In addition, Global Atlantic enters into currency swaps and forwards to
manage any foreign exchange rate risks that may arise from investments and policy liabilities denominated in foreign
currencies.
Global Atlantic attempts to mitigate the risk of loss due to ineffectiveness under these derivative investments through a
regular monitoring process which evaluates the program’s effectiveness. Global Atlantic monitors its derivative activities by
reviewing portfolio activities and risk levels. Global Atlantic also oversees all derivative transactions to ensure that the types
of transactions entered into and the results obtained from those transactions are consistent with both Global Atlantic's risk
management strategy and its policies and procedures.
The restricted cash which was held in connection with open derivative transactions with exchange brokers was $31.1
million and $49.9 million as of September 30, 2026, and December 31, 2025, respectively.
Global Atlantic also has embedded derivatives related to reinsurance contracts that are accounted for on a modified
coinsurance and funds withheld basis. An embedded derivative exists because the arrangement exposes the reinsurer to
third-party credit risk. These embedded derivatives are included in funds withheld receivable and payable at interest in the
consolidated statements of financial condition.
Credit Risk
Global Atlantic may be exposed to credit-related losses in the event of nonperformance by its counterparties to
derivatives. Generally, the current credit exposure of Global Atlantic’s derivatives is limited to the positive fair value of
derivatives less any collateral received from the counterparty.
Global Atlantic manages the credit risk on its derivatives by entering into derivative transactions with highly rated
financial institutions and other creditworthy counterparties and, where feasible, by trading through central clearing
counterparties. Global Atlantic further manages its credit risk on derivatives via the use of master netting agreements, which
require the daily posting of collateral by the party in a liability position. Counterparty credit exposure and collateral values are
monitored regularly and measured against counterparty exposure limits. The provisions of derivative transactions may allow
for the termination and settlement of a transaction if there is a downgrade to Global Atlantic’s financial strength ratings
below a specified level.
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As of September 30, 2026 | A s o f | Notional Value | Derivative Assets | Derivative Liabilities | ||
Asset Management and Strategic Holdings | ||||||
Foreign Exchange Contracts and Options | $ | $ | $ | |||
Other Derivatives | ||||||
Total Asset Management and Strategic Holdings | $ | $ | $ | |||
Insurance | ||||||
Derivatives Designated as Hedge Accounting Instruments: | ||||||
Interest Rate Contracts | $ | $ | $ | |||
Foreign Currency Contracts | ||||||
Total Derivatives Designated as Hedge Accounting Instruments | $ | $ | $ | |||
Derivatives Not Designated as Hedge Accounting Instruments: | ||||||
Equity Market Contracts | $ | $ | $ | |||
Interest Rate Contracts | ||||||
Foreign Currency Contracts | ||||||
Other Contracts | ||||||
Total Derivatives Not Designated as Hedge Accounting Instruments | $ | $ | $ | |||
Counterparty Netting(2) | — | ( | ( | |||
Cash Collateral | — | ( | ( | |||
Total Insurance(1) | $ | $ | $ | |||
Fair Value Included Within Total Assets and Liabilities | $ | $ | $ |
(1)Excludes embedded derivatives. The fair value of these embedded derivatives related to assets was $72.8 million and the fair value of these embedded
derivatives related to liabilities was $4.6 billion as of September 30, 2026.
(2)Represents netting of derivative exposures covered by qualifying master netting agreements.
As of December 31, 2025 | Notional Value | Derivative Assets | Derivative Liabilities | |||
Asset Management and Strategic Holdings | ||||||
Foreign Exchange Contracts and Options | $ | $ | $ | |||
Other Derivatives | ||||||
Total Asset Management and Strategic Holdings | $ | $ | $ | |||
Insurance | ||||||
Derivatives Designated as Hedge Accounting Instruments: | ||||||
Interest Rate Contracts | $ | $ | $ | |||
Foreign Currency Contracts | ||||||
Total Derivatives Designated as Hedge Accounting Instruments | $ | $ | $ | |||
Derivatives Not Designated as Hedge Accounting Instruments: | ||||||
Equity Market Contracts | $ | $ | $ | |||
Interest Rate Contracts | ||||||
Foreign Currency Contracts | ||||||
Other Contracts | ||||||
Total Derivatives Not Designated as Hedge Accounting Instruments | ||||||
Counterparty Netting(2) | — | ( | ( | |||
Cash Collateral | — | ( | ( | |||
Total Insurance(1) | $ | $ | $ | |||
Fair Value Included Within Total Assets and Liabilities | $ | $ | $ |
(1)Excludes embedded derivatives. The fair value of these embedded derivatives related to assets was $78.9 million and the fair value of these embedded
derivatives related to liabilities was $5.6 billion as of December 31, 2025.
(2)Represents netting of derivative exposures covered by qualifying master netting agreements.
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Derivatives Designated as Accounting Hedges
Where Global Atlantic has derivative instruments that are designated and qualify as accounting hedges, these derivative
instruments receive hedge accounting.
Fair Value Hedges
Global Atlantic has designated foreign exchange derivative contracts, including forwards and swaps, to hedge the foreign
currency risk associated with foreign currency-denominated bonds in fair value hedges. These foreign currency-denominated
bonds are accounted for as AFS fixed maturity securities. Changes in the fair value of the hedged AFS fixed maturity securities
due to changes in spot exchange rates are reclassified from AOCI to earnings, which offsets the earnings impact of the spot
changes of the foreign exchange derivative contracts, both of which are recognized within investment-related gains (losses).
The effectiveness of these hedges is assessed using the spot method. Changes in the fair value of the foreign exchange
derivative contracts related to changes in the spot-forward difference are excluded from the assessment of hedge
effectiveness and are deferred in AOCI and recognized in earnings using a systematic and rational method over the life of the
foreign exchange derivative contracts. The amortized cost of the AFS fixed maturity securities in qualifying foreign exchange
fair value hedges was $6.3 billion and $3.7 billion as of September 30, 2026, and December 31, 2025, respectively.
Global Atlantic has designated foreign exchange swaps to hedge the foreign currency risk associated with certain policy
liabilities in fair value hedges. Changes in the fair value of the hedged policy liabilities due to changes in spot exchange rates
are recognized in earnings and are offset by the earnings impact of the spot changes of the foreign exchange swaps, both of
which are recognized within net policy benefits and claims. The effectiveness of these hedges is assessed using the spot
method. Changes in the fair value of the foreign exchange swaps related to changes in the spot-forward difference are
excluded from the assessment of hedge effectiveness and are deferred in AOCI and recognized in earnings using a systematic
and rational method over the life of the foreign exchange swaps. The carrying value of the policy liabilities in qualifying foreign
exchange fair value hedges was $1.6 billion and nil as of September 30, 2026, and December 31, 2025, respectively.
Global Atlantic has designated interest rate swaps to hedge the interest rate risk associated with certain debt and policy
liabilities. These fair value hedges generally qualify for the shortcut method of assessing hedge effectiveness. The following
table presents the financial statement classification, carrying amount, and cumulative fair value hedging adjustments for
qualifying hedged debt and policy liabilities:
As of September 30, 2026 | As of December 31, 2025 | ||||||
Carrying Amount of Hedged Liabilities | Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Liabilities(1) | Carrying Amount of Hedged Liabilities | Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Liabilities(1) | ||||
Debt | $ | $( | $ | $( | |||
Policy Liabilities | ( | ( | |||||
(1)Includes $128.5 million and $154.6 million of hedging adjustments on discontinued hedging relationships as of September 30, 2026, and December 31,
2025, respectively.
Cash Flow Hedges
Global Atlantic has designated bond forwards to hedge the interest rate risk associated with the planned purchase of AFS
fixed maturity securities in cash flow hedges. These arrangements are hedging purchases through December 2036, and are
expected to affect earnings until 2057. Regression analysis is used to assess the effectiveness of these hedges.
As of September 30, 2026, and December 31, 2025, there was a cumulative gain (loss) of $(245.7 ) million and $(213.9 )
million, respectively, on the currently designated bond forwards recorded in accumulated other comprehensive income (loss).
Amounts deferred in accumulated other comprehensive income (loss) are reclassified to net investment income following the
qualifying purchases of AFS securities, as an adjustment to the yield earned over the life of the purchased securities, using the
effective interest method.
Global Atlantic has designated interest rate swaps to hedge the interest rate risk associated with floating rate
investments, including AFS fixed maturity securities and commercial mortgage loans. Regression analysis is used to assess the
effectiveness of these hedges.
As of September 30, 2026, and December 31, 2025, there was a cumulative gain (loss) of $(74.3 ) million and $(22.3 )
million on the currently designated interest rate swaps recorded in accumulated other comprehensive income (loss),
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respectively. Amounts deferred in accumulated other comprehensive gain (loss) are reclassified to net investment income in
the same period during which the hedged investments affect earnings.
Global Atlantic has designated foreign exchange swaps to hedge the foreign exchange risk associated with certain policy
liabilities in cash flow hedges. The critical terms of the swaps match those of the hedged liabilities, such that the respective
hedging relationship is expected to be perfectly effective (pursuant to ASC 815-20-25-84).
As of September 30, 2026, there was a cumulative gain (loss) of $38.4 million on the currently designated foreign
exchange swaps recorded in accumulated other comprehensive loss. Amounts deferred in accumulated other comprehensive
loss are reclassified to net policy benefits and claims in the same period during which the hedged policy liabilities affect
earnings due to changes in spot foreign exchange rates. The amount reclassified from accumulated other comprehensive loss
for the swap designated in the hedge comprises changes in its fair value due to changes in spot exchange rates and an
allocated portion of its initial spot-forward difference.
For all cash flow hedges, Global Atlantic estimates that the amount of gains/losses in accumulated other comprehensive
income (loss) to be reclassified into earnings in the next 12 months will not be material.
Net Investment Hedges
Global Atlantic has designated cross currency swaps to hedge the foreign currency risk associated with certain foreign
currency-denominated equity method investments in net investment hedges. The effectiveness of these hedges is assessed
based on changes in spot rates.
Changes in the fair value of the swaps are recognized in other comprehensive income, consistent with the translation
adjustment for the hedged investment. The component comprising the difference between forward rates and spot rates is
amortized to net investment income over the life of the swaps. As of September 30, 2026, and December 31, 2025, the
cumulative foreign currency translation gain (loss) recorded in accumulated other comprehensive income related to net
investment hedges was $(13.6 ) million and $(14.1 ) million, respectively.
Derivative Results
instruments and related hedged items, where applicable. None of the Asset Management and Strategic Holdings derivatives
are designated as hedge accounting instruments. The table below includes only derivatives held by Global Atlantic.
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Three Months Ended September 30, 2026 | |||||||||
Net Investment- Related Gains (Losses) | Net Investment Income | Net Policy Benefits and Claims | Interest Expense | Change in AOCI | |||||
Derivatives Designated as Hedge Accounting Instruments: | |||||||||
Fair Value Hedges | |||||||||
Gains (Losses) on Derivatives Designated as Hedge Instruments: | |||||||||
Interest Rate Contracts | $— | $— | $( | $( | $— | ||||
Foreign Currency Contracts | ( | — | ( | ||||||
Total Gains (Losses) on Derivatives Designated as Hedge Instruments | $ | $ | $( | $( | $( | ||||
Gains (Losses) on Hedged Items: | |||||||||
Interest Rate Contracts | $— | $— | $ | $ | $— | ||||
Foreign Currency Contracts | ( | — | — | — | |||||
Total Gains (Losses) on Hedged Items | $( | $— | $ | $ | $— | ||||
Amortization for Gains (Losses) Excluded from Assessment of Effectiveness: | |||||||||
Foreign Currency Contracts | $ | $— | $— | $— | $— | ||||
Total Amortization for Gains (Losses) Excluded from Assessment of Effectiveness | $ | $— | $— | $— | $— | ||||
Total Gains (Losses) on Fair Value Hedges, Net of Hedged Items | $( | $ | $— | $— | $( | ||||
Cash Flow Hedges | |||||||||
Foreign Currency Contracts | $— | $— | $( | $— | $ | ||||
Interest Rate Contracts | ( | — | — | ( | |||||
Total Gains (Losses) on Cash Flow Hedges | $ | $( | $( | $— | $( | ||||
Net Investment Hedges | |||||||||
Gains (Losses) on Derivatives Designated as Hedge Instruments | $ | $ | $— | $— | $( | ||||
Total Gains (Losses) on Net Investment Hedges | $ | $ | $— | $— | $( | ||||
Derivatives Not Designated as Hedge Accounting Instruments: | |||||||||
Insurance | |||||||||
Embedded Derivatives – Funds Withheld Receivable | $( | $— | $— | $— | $— | ||||
Embedded Derivatives – Funds Withheld Payable | — | — | — | — | |||||
Equity Index Options | — | — | — | — | |||||
Equity Futures Contracts | — | — | — | — | |||||
Interest Rate Contracts | ( | — | — | — | — | ||||
Foreign Exchange and Other Derivative Contracts | ( | — | — | — | — | ||||
Total Gains (Losses) on Derivatives Not Designated as Hedge Accounting Instruments from Insurance Activities | $ | $— | $— | $— | $— | ||||
Total | $ | $ | $( | $— | $( | ||||
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Three Months Ended September 30, 2025 | |||||||||
Net Investment- Related Gains (Losses) | Net Investment Income | Net Policy Benefits and Claims | Interest Expense | Change in AOCI | |||||
Derivatives Designated as Hedge Accounting Instruments: | |||||||||
Fair Value Hedges | |||||||||
Gains (Losses) on Derivatives Designated as Hedge Instruments: | |||||||||
Interest Rate Contracts | $— | $— | $( | $( | $— | ||||
Foreign Currency Contracts | — | ||||||||
Total Gains (Losses) on Derivatives Designated as Hedge Instruments | $ | $ | $( | $( | $ | ||||
Gains (Losses) on Hedged Items: | |||||||||
Interest Rate Contracts | $— | $— | $ | $ | $— | ||||
Foreign Currency Contracts | ( | — | — | — | |||||
Total Gains (Losses) on Hedged Items | $( | $— | $ | $ | $— | ||||
Amortization for Gains (Losses) Excluded from Assessment of Effectiveness: | |||||||||
Foreign Currency Contracts | $ | $— | $— | $— | $— | ||||
Total Amortization for Gains (Losses) Excluded from Assessment of Effectiveness | $ | $— | $— | $— | $— | ||||
Total Gains (Losses) on Fair Value Hedges, Net of Hedged Items | $ | $ | $— | $— | $ | ||||
Cash Flow Hedges | |||||||||
Foreign Currency Contracts | $— | $— | $( | $— | $ | ||||
Interest Rate Contracts | $ | $( | $— | $— | $ | ||||
Total Gains (Losses) on Cash Flow Hedges | $ | $( | $( | $— | $ | ||||
Net Investment Hedges | |||||||||
Gains (Losses) on Derivatives Designated as Hedge Instruments | $ | $ | $— | $— | $ | ||||
Total Gains (Losses) on Net Investment Hedges | $ | $ | $— | $— | $ | ||||
Derivatives Not Designated as Hedge Accounting Instruments: | |||||||||
Insurance | |||||||||
Embedded Derivatives – Funds Withheld Receivable | $( | $— | $— | $— | $— | ||||
Embedded Derivatives – Funds Withheld Payable | ( | — | — | — | — | ||||
Equity Index Options | — | — | — | — | |||||
Equity Futures Contracts | ( | — | — | — | — | ||||
Interest Rate Contracts | — | — | — | — | |||||
Foreign Exchange and Other Derivative Contracts | — | — | — | — | |||||
Total Gains (Losses) on Derivatives Not Designated as Hedge Accounting Instruments from Insurance Activities | $ | $— | $— | $— | $— | ||||
Total | $ | $( | $( | $— | $ | ||||
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Nine Months Ended September 30, 2026 | |||||||||
Net Investment- Related Gains (Losses) | Net Investment Income | Net Policy Benefits and Claims | Interest Expense | Change in AOCI | |||||
Derivatives Designated as Hedge Accounting Instruments: | |||||||||
Fair Value Hedges | |||||||||
Gains (Losses) on Derivatives Designated as Hedge Instruments: | |||||||||
Interest Rate Contracts | $— | $— | $( | $( | $— | ||||
Foreign Currency Contracts | ( | — | ( | ||||||
Total Gains (Losses) on Derivatives Designated as Hedge Instruments | $ | $ | $( | $( | $( | ||||
Gains (Losses) on Hedged Items: | |||||||||
Interest Rate Contracts | $— | $— | $ | $ | $— | ||||
Foreign Currency Contracts | ( | — | — | — | |||||
Total Gains (Losses) on Hedged Items | $( | $— | $ | $ | $— | ||||
Amortization for Gains (Losses) Excluded from Assessment of Effectiveness: | |||||||||
Foreign Currency Contracts | $ | $— | $— | $— | $— | ||||
Total Amortization for Gains (Losses) Excluded from Assessment of Effectiveness | $ | $— | $— | $— | $— | ||||
Total Gains (Losses) on Fair Value Hedges, Net of Hedged Items | $ | $ | $— | $— | $( | ||||
Cash Flow Hedges | |||||||||
Foreign Currency Contracts | $— | $— | $( | $— | $ | ||||
Interest Rate Contracts | ( | — | — | ( | |||||
Total Gains (Losses) on Cash Flow Hedges | $ | $( | $( | $— | $( | ||||
Net Investment Hedges | |||||||||
Gains (Losses) on Derivatives Designated as Hedge Instruments | $ | $ | $— | $— | $ | ||||
Total Gains (Losses) on Net Investment Hedges | $ | $ | $— | $— | $ | ||||
Derivatives Not Designated as Hedge Accounting Instruments: | |||||||||
Insurance | |||||||||
Embedded Derivatives – Funds Withheld Receivable | $( | $— | $— | $— | $— | ||||
Embedded Derivatives – Funds Withheld Payable | — | — | — | — | |||||
Equity Index Options | — | — | — | — | |||||
Equity Futures Contracts | ( | — | — | — | — | ||||
Interest Rate Contracts | ( | — | — | — | — | ||||
Foreign Exchange and Other Derivative Contracts | — | — | — | — | |||||
Total Gains (Losses) on Derivatives Not Designated as Hedge Accounting Instruments from Insurance Activities | $ | $— | $— | $— | $— | ||||
Total | $ | $ | $( | $— | $( | ||||
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Nine Months Ended September 30, 2025 | |||||||||
Net Investment- Related Gains (Losses) | Net Investment Income | Net Policy Benefits and Claims | Interest Expense | Change in AOCI | |||||
Derivatives Designated as Hedge Accounting Instruments: | |||||||||
Fair Value Hedges | |||||||||
Gains (Losses) on Derivatives Designated as Hedge Instruments: | |||||||||
Interest Rate Contracts | $— | $— | $ | $ | $— | ||||
Foreign Currency Contracts | ( | — | — | ||||||
Total Gains (Losses) on Derivatives Designated as Hedge Instruments | $( | $ | $ | $ | $ | ||||
Gains (Losses) on Hedged Items: | |||||||||
Interest Rate Contracts | $— | $— | $( | $( | $— | ||||
Foreign Currency Contracts | — | — | — | — | |||||
Total Gains (Losses) on Hedged Items | $ | $— | $( | $( | $— | ||||
Amortization for Gains (Losses) Excluded from Assessment of Effectiveness: | |||||||||
Foreign Currency Contracts | $ | $— | $— | $— | $— | ||||
Total Amortization for Gains (Losses) Excluded from Assessment of Effectiveness | $ | $— | $— | $— | $— | ||||
Total Gains (Losses) on Fair Value Hedges, Net of Hedged Items | $ | $ | $— | $— | $ | ||||
Cash Flow Hedges | |||||||||
Foreign Currency Contracts | $— | $— | $( | $— | $( | ||||
Interest Rate Contracts | $ | $( | $— | $— | $ | ||||
Total Gains (Losses) on Cash Flow Hedges | $ | $( | $( | $— | $ | ||||
Net Investment Hedges | |||||||||
Gains (Losses) on Derivatives Designated as Hedge Instruments | $ | $ | $— | $— | $ | ||||
Total Gains (Losses) on Net Investment Hedges | $ | $ | $— | $— | $ | ||||
Derivatives Not Designated as Hedge Accounting Instruments: | |||||||||
Insurance | |||||||||
Embedded Derivatives – Funds Withheld Receivable | $( | $— | $— | $— | $— | ||||
Embedded Derivatives – Funds Withheld Payable | ( | — | — | — | — | ||||
Equity Index Options | — | — | — | — | |||||
Equity Futures Contracts | ( | — | — | — | — | ||||
Interest Rate Contracts | — | — | — | — | |||||
Foreign Exchange and Other Derivative Contracts | ( | — | — | — | — | ||||
Total Gains (Losses) on Derivatives Not Designated as Hedge Accounting Instruments from Insurance Activities | $( | $— | $— | $— | $— | ||||
Total | $( | $ | $( | $— | $ | ||||
were as follows:
As of September 30, 2026 | Gross Amount Recognized | Gross Amounts Offset in the Statements of Financial Condition(1) | Net Amounts Presented in the Statements of Financial Condition | Collateral (Received) / Pledged | Net Amount After Collateral | ||||
Derivative Assets (Excluding Embedded Derivatives) | $ | $( | $ | $( | $( | ||||
Derivative Liabilities (Excluding Embedded Derivatives) | $ | $( | $ | $ | $( |
(1)Represents netting of derivative exposures covered by qualifying master netting agreements.
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As of December 31, 2025 | Gross Amount Recognized | Gross Amounts Offset in the Statements of Financial Condition(1) | Net Amounts Presented in the Statements of Financial Condition | Collateral (Received) / Pledged | Net Amount After Collateral | ||||
Derivative Assets (Excluding Embedded Derivatives) | $ | $( | $ | $( | $( | ||||
Derivative Liabilities (Excluding Embedded Derivatives) | $ | $( | $ | $ | $( |
(1)Represents netting of derivative exposures covered by qualifying master netting agreements.
9. FAIR VALUE MEASUREMENTS
hierarchy. Investments classified as Equity Method – Other, for which the fair value option has not been elected, and Equity
Method – Capital Allocation-Based Income have been excluded from the tables below.
Assets, at fair value:
September 30, 2026 | |||||||
Level I | Level II | Level III | Total | ||||
Asset Management and Strategic Holdings | |||||||
Private Equity | $ | $ | $ | $ | |||
Credit | |||||||
Investments of Consolidated CFEs | |||||||
Real Assets | |||||||
Other Investments | |||||||
Total Investments (2)(3) | $ | $ | $ | $ | |||
Foreign Exchange Contracts and Options | |||||||
Other Derivatives | |||||||
Total Assets at Fair Value – Asset Management and Strategic Holdings | $ | $ | $ | $ | |||
Insurance | |||||||
AFS Fixed Maturity Securities: | |||||||
U.S. Government and Agencies | $ | $ | $ | $ | |||
U.S. State, Municipal and Political Subdivisions | |||||||
Corporate | |||||||
Structured Securities | |||||||
Total AFS Fixed Maturity Securities | $ | $ | $ | $ | |||
Trading Fixed Maturity Securities | $ | $ | $ | $ | |||
Mortgage and Other Loan Receivables | |||||||
Real Assets | (1) | ||||||
Other Investments | (1) | ||||||
Funds Withheld Receivable at Interest | |||||||
Reinsurance Recoverable | |||||||
Derivative Assets (4) | |||||||
Separate Account Assets | |||||||
Total Assets at Fair Value – Insurance | $ | $ | $ | $ | |||
Total Assets at Fair Value | $ | $ | $ | $ | |||
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December 31, 2025 | |||||||
Level I | Level II | Level III | Total | ||||
Asset Management and Strategic Holdings | |||||||
Private Equity | $ | $ | $ | $ | |||
Credit | |||||||
Investments of Consolidated CFEs | |||||||
Real Assets | |||||||
Other Investments | |||||||
Total Investments (2)(3) | $ | $ | $ | $ | |||
Foreign Exchange Contracts and Options | |||||||
Other Derivatives | |||||||
Total Assets at Fair Value – Asset Management and Strategic Holdings | $ | $ | $ | $ | |||
Insurance | |||||||
AFS Fixed Maturity Securities: | |||||||
U.S. Government and Agencies | $ | $ | $ | $ | |||
U.S. State, Municipal and Political Subdivisions | |||||||
Corporate | |||||||
Structured Securities | |||||||
Total AFS Fixed Maturity Securities | $ | $ | $ | $ | |||
Trading Fixed Maturity Securities | $ | $ | $ | $ | |||
Mortgage and Other Loan Receivables | |||||||
Real Assets | (1) | ||||||
Other Investments | (1) | ||||||
Funds Withheld Receivable at Interest | |||||||
Reinsurance Recoverable | |||||||
Derivative Assets (4) | |||||||
Separate Account Assets | |||||||
Total Assets at Fair Value – Insurance | $ | $ | $ | $ | |||
Total Assets at Fair Value | $ | $ | $ | $ | |||
(1)Real assets and other investments excluded from the fair value hierarchy table include certain funds for which fair value is measured at net asset value per
share as a practical expedient. As of September 30, 2026, and December 31, 2025, the fair value of these real assets were $16.9 million and $25.3 million,
respectively, and other investments were $289.7 million and $334.7 million, respectively. These fund investments have strategies primarily focused on
real assets (primarily real estate) or other investments and are subject to certain restrictions on redemption. As of both September 30, 2026, and
December 31, 2025, there were $1.3
2025, there were $1.3 million and $5.0 million associated with these other investments, respectively.
(2)Certain investments that are measured at fair value using NAV as a practical expedient under ASC 820 have not been categorized in the fair value
hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the
Consolidated Statements of Financial Condition. As of September 30, 2026, and December 31, 2025, the fair value of these assets is $3.4 billion and $0.4
billion, respectively.
(3)As of September 30, 2026, and December 31, 2025, the fair value of Equity Method investments is $1.0 billion and $2.3 billion, respectively.
(4)Represented net of derivative exposures covered by qualifying master netting agreements.
Liabilities, at fair value:
September 30, 2026 | |||||||
Level I | Level II | Level III | Total | ||||
Asset Management and Strategic Holdings | |||||||
Securities Sold Short | $ | $ | $ | $ | |||
Foreign Exchange Contracts and Options | |||||||
Unfunded Revolver Commitments | (1) | ||||||
Other Derivatives | |||||||
Debt Obligations of Consolidated CFEs | |||||||
Total Liabilities at Fair Value – Asset Management and Strategic Holdings | $ | $ | $ | $ | |||
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September 30, 2026 | |||||||
Level I | Level II | Level III | Total | ||||
Insurance | |||||||
Policy Liabilities (Including Market Risk Benefits) | $ | $ | $ | (3) | $ | ||
Closed Block Policy Liabilities | |||||||
Funds Withheld Payable at Interest | ( | ( | |||||
Other Contracts | |||||||
Derivative Instruments Payable (2) | |||||||
Reinsurance liabilities | |||||||
Embedded Derivative – Interest-Sensitive Life Products | |||||||
Embedded Derivative – Annuity Products | |||||||
Total Liabilities at Fair Value – Insurance | $ | $ | $ | $ | |||
Total Liabilities at Fair Value | $ | $ | $ | $ | |||
December 31, 2025 | |||||||
Level I | Level II | Level III | Total | ||||
Asset Management and Strategic Holdings | |||||||
Securities Sold Short | $ | $ | $ | $ | |||
Foreign Exchange Contracts and Options | |||||||
Unfunded Revolver Commitments | (1) | ||||||
Debt Obligations of Consolidated CFEs | |||||||
Total Liabilities at Fair Value – Asset Management and Strategic Holdings | $ | $ | $ | $ | |||
Insurance | |||||||
Policy Liabilities (Including Market Risk Benefits) | $ | $ | $ | (3) | $ | ||
Closed Block Policy Liabilities | |||||||
Funds Withheld Payable at Interest | ( | ( | |||||
Derivative Instruments Payable (2) | |||||||
Embedded Derivative – Interest-Sensitive Life Products | |||||||
Embedded Derivative – Annuity Products | |||||||
Total Liabilities at Fair Value – Insurance | $ | $ | $ | $ | |||
Total Liabilities at Fair Value | $ | $ | $ | $ | |||
(1)These unfunded revolver commitments are valued using the same valuation methodologies as KKR's Level III credit investments.
(2)Represented net of derivative exposures covered by qualifying master netting agreements.
(3)Includes market risk benefit of $1.3
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inputs have been used to determine fair value for the three and nine months ended September 30, 2026 and 2025,
respectively.
Three Months Ended September 30, 2026 | ||||||||||
Balance, Beg. of Period | Transfers In / (Out) - Changes in Consolidation | Transfers In | Transfers Out | Net Purchases/ Issuances/ Sales/ Settlements | Net Unrealized and Realized Gains (Losses) | Change in OCI | Balance, End of Period | Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date | Changes in Net Unrealized Gains (Losses) Included in OCI related to Level III Assets and Liabilities still held as of the Reporting Date | |
Assets | ||||||||||
Asset Management and Strategic Holdings | ||||||||||
Private Equity | $ | $ | $ | $ | $( | $ | $ | $ | $ | $ |
Credit | ( | ( | ( | |||||||
Real Assets | ||||||||||
Other Investments | ( | ( | ||||||||
Total Assets – Asset Management and Strategic Holdings (1) | $ | $ | $ | $( | $ | $ | $ | $ | $ | $ |
Insurance | ||||||||||
AFS Fixed Maturity Securities: | ||||||||||
Corporate Fixed Maturity Securities | $ | $ | $ | $ | $ | $( | $( | $ | $ | $( |
Structured Securities | ( | ( | ( | |||||||
Total AFS Fixed Maturity Securities | $ | $ | $ | $ | $ | $( | $( | $ | $ | $( |
Trading Fixed Maturity Securities | ( | ( | ||||||||
Mortgage and Other Loan Receivables | ( | ( | ||||||||
Real Assets | ( | ( | ||||||||
Other Investments | ( | ( | ||||||||
Funds Withheld Receivable at Interest | ( | |||||||||
Reinsurance Recoverable | ( | |||||||||
Total Assets – Insurance | $ | $ | $ | $( | $ | $( | $( | $ | $( | $( |
Total | $ | $ | $ | $( | $ | $ | $( | $ | $ | $( |
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Nine Months Ended September 30, 2026 | ||||||||||
Balance, Beg. of Period | Transfers In / (Out) - Changes in Consolidation | Transfers In | Transfers Out | Net Purchases/ Issuances/ Sales/ Settlements | Net Unrealized and Realized Gains (Losses) | Change in OCI | Balance, End of Period | Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date | Changes in Net Unrealized Gains (Losses) Included in OCI related to Level III Assets and Liabilities still held as of the Reporting Date | |
Assets | ||||||||||
Asset Management and Strategic Holdings | ||||||||||
Private Equity | $ | $ | $ | $( | $( | $( | $ | $ | $( | $ |
Credit | ( | ( | ( | ( | ||||||
Real Assets | ||||||||||
Other Investments | ( | ( | ( | |||||||
Total Assets – Asset Management and Strategic Holdings (1) | $ | $( | $ | $( | $ | $( | $ | $ | $( | $ |
Insurance | ||||||||||
AFS Fixed Maturity Securities: | ||||||||||
Corporate Fixed Maturity Securities | $ | $ | $ | $( | $( | $( | $ | $ | $( | |
Structured Securities | ( | ( | ||||||||
Total AFS Fixed Maturity Securities | $ | $ | $ | $( | $ | $( | $( | $ | $ | $( |
Trading Fixed Maturity Securities | ( | ( | ||||||||
Mortgage and Other Loan Receivables | ( | ( | ||||||||
Real Assets | ||||||||||
Other Investments | ( | ( | ||||||||
Funds Withheld Receivable at Interest | ( | |||||||||
Reinsurance Recoverable | ( | ( | ||||||||
Total Assets – Insurance | $ | $ | $ | $( | $ | $( | $( | $ | $( | $( |
Total | $ | $( | $ | $( | $ | $( | $( | $ | $( | $( |
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Three Months Ended September 30, 2025 | ||||||||||
Balance, Beg. of Period | Transfers In / (Out) - Changes in Consolidation | Transfers In | Transfers Out | Net Purchases/ Issuances/ Sales/ Settlements | Net Unrealized and Realized Gains (Losses) | Change in OCI | Balance, End of Period | Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date | Changes in Net Unrealized Gains (Losses) Included in OCI related to Level III Assets and Liabilities still held as of the Reporting Date | |
Assets | ||||||||||
Asset Management and Strategic Holdings | ||||||||||
Private Equity | $ | $ | $ | $( | $ | $ | $ | $ | $ | $ |
Credit | ( | ( | ( | |||||||
Real Assets | ( | ( | ||||||||
Other Investments | ||||||||||
Total Assets - Asset Management and Strategic Holdings | $ | $ | $ | $( | $ | $ | $ | $ | $ | $ |
Insurance | ||||||||||
AFS Fixed Maturity Securities: | ||||||||||
Corporate Fixed Maturity Securities | $ | $ | $ | $( | $ | $( | $ | $ | $ | $ |
Structured Securities | ( | |||||||||
Total AFS Fixed Maturity Securities | $ | $ | $ | $( | $ | $( | $ | $ | $ | $ |
Trading Fixed Maturity Securities | $ | $ | $ | $( | $ | $ | $ | $ | $ | $ |
Mortgage and Other Loan Receivables | ||||||||||
Real Assets | ||||||||||
Other Investments | ||||||||||
Funds Withheld Receivable at Interest | ( | |||||||||
Reinsurance Recoverable | ||||||||||
Total Assets - Insurance | $ | $ | $ | $( | $ | $ | $ | $ | $ | $ |
Total | $ | $ | $ | $( | $ | $ | $ | $ | $ | $ |
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Nine Months Ended September 30, 2025 | ||||||||||
Balance, Beg. of Period | Transfers In / (Out) - Changes in Consolidation | Transfers In | Transfers Out | Net Purchases/ Issuances/ Sales/ Settlements | Net Unrealized and Realized Gains (Losses) | Change in OCI | Balance, End of Period | Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date | Changes in Net Unrealized Gains (Losses) Included in OCI related to Level III Assets and Liabilities still held as of the Reporting Date | |
Assets | ||||||||||
Asset Management and Strategic Holdings | ||||||||||
Private Equity | $ | $ | $ | $( | $ | $ | $ | $ | $ | $ |
Credit | ( | |||||||||
Real Assets | ||||||||||
Other Investments | ( | |||||||||
Total Assets - Asset Management and Strategic Holdings | $ | $ | $ | $( | $ | $ | $ | $ | $ | $ |
Insurance | ||||||||||
AFS Fixed Maturity Securities: | ||||||||||
Corporate Fixed Maturity Securities | $ | $ | $ | $( | $ | $ | $ | $ | $ | $ |
Structured Securities | ( | |||||||||
Total AFS Fixed Maturity Securities | $ | $ | $ | $( | $ | $ | $ | $ | $ | $ |
Trading Fixed Maturity Securities | ( | ( | ( | |||||||
Mortgage and Other Loan Receivables | ||||||||||
Real Assets | ||||||||||
Other Investments | ||||||||||
Funds Withheld Receivable at Interest | ( | |||||||||
Reinsurance Recoverable | ( | |||||||||
Total Assets - Insurance | $ | $ | $ | $( | $ | $ | $ | $ | $ | $ |
Total | $ | $ | $ | $( | $ | $ | $ | $ | $ | $ |
(1)As of September 30, 2026, and December 31, 2025, the fair value of Equity Method investments is $0.9 billion and $2.1 billion, respectively.
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Table of Contents
Three Months Ended September 30, 2026 | Three Months Ended September 30, 2025 | ||||||||||
Purchases | Issuances | Sales | Settlements | Net Purchases/ Issuances/ Sales/ Settlements | Purchases | Issuances | Sales | Settlements | Net Purchases/ Issuances/ Sales/ Settlements | ||
Assets | |||||||||||
Asset Management and Strategic Holdings | |||||||||||
Private Equity | $ | $ | $( | $ | $( | $ | $ | $( | $ | $ | |
Credit | ( | ( | ( | ( | |||||||
Real Assets | ( | ( | ( | ||||||||
Other Investments | ( | ( | ( | ( | ( | ||||||
Total Assets – Asset Management and Strategic Holdings | $ | $ | $( | $( | $ | $ | $ | $( | $( | $ | |
Insurance | |||||||||||
AFS Fixed Maturity Securities: | |||||||||||
Corporate Fixed Maturity Securities | $ | $ | $( | $( | $ | $ | $ | $( | $( | $ | |
Structured Securities | ( | ( | ( | ( | |||||||
Total AFS Fixed Maturity Securities | $ | $ | $( | $( | $ | $ | $ | $( | $( | $ | |
Trading Fixed Maturity Securities | ( | ( | $ | $ | $( | $( | $ | ||||
Mortgage and Other Loan Receivables | ( | ( | ( | ( | |||||||
Real Assets | ( | ( | ( | ||||||||
Other Investments | ( | ( | |||||||||
Reinsurance Recoverable | |||||||||||
Total Assets – Insurance | $ | $ | $( | $( | $ | $ | $ | $( | $( | $ | |
Total | $ | $ | $( | $( | $ | $ | $ | $( | $( | $ | |
Nine Months Ended September 30, 2026 | Nine Months Ended September 30, 2025 | ||||||||||
Purchases | Issuances | Sales | Settlements | Net Purchases/ Issuances/ Sales/ Settlements | Purchases | Issuances | Sales | Settlements | Net Purchases/ Issuances/ Sales/ Settlements | ||
Assets | |||||||||||
Asset Management and Strategic Holdings | |||||||||||
Private Equity | $ | $ | $( | $ | $( | $ | $ | $( | $ | $ | |
Credit | ( | ( | ( | ( | |||||||
Real Assets | ( | ( | ( | ||||||||
Other Investments | ( | ( | ( | ( | ( | ||||||
Total Assets – Asset Management and Strategic Holdings | $ | $ | $( | $( | $ | $ | $ | $( | $( | $ | |
Insurance | |||||||||||
AFS Fixed Maturity Securities: | |||||||||||
Corporate Fixed Maturity Securities | $ | $ | $( | $( | $ | $ | $ | $( | $( | $ | |
Structured Securities | ( | ( | ( | ( | |||||||
Total AFS Fixed Maturity Securities | $ | $ | $( | $( | $ | $ | $ | $( | $( | $ | |
Trading Fixed Maturity Securities | ( | ( | $ | $ | $( | $( | $ | ||||
Mortgage and Other Loan Receivables | ( | ( | ( | ( | |||||||
Real Assets | ( | ( | ( | ||||||||
Other Investments | ( | ( | ( | ||||||||
Reinsurance Recoverable | ( | ( | ( | ( | |||||||
Total Assets – Insurance | $ | $ | $( | $( | $ | $ | $ | $( | $( | $ | |
Total | $ | $ | $( | $( | $ | $ | $ | $( | $( | $ | |
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Three Months Ended September 30, 2026 | |||||||||
Balance, Beg. of Period | Transfers In / (Out) – Changes in Consolidation | Transfers In | Transfers Out | Net Purchases/ Sales/ Settlements/ Issuances | Net Unrealized and Realized Gains (Losses) | Change in OCI | Balance, End of Period | Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date | |
Liabilities | |||||||||
Asset Management and Strategic Holdings | |||||||||
Unfunded Revolver Commitments | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Total Liabilities – Asset Management and Strategic Holdings | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Insurance | |||||||||
Policy Liabilities | $ | $ | $ | $ | $ | $( | $( | $ | $ |
Closed Block Policy Liabilities | ( | ( | ( | ||||||
Funds Withheld Payable at Interest | ( | ( | ( | ||||||
Embedded Derivative – Interest- Sensitive Life Products | ( | ||||||||
Embedded Derivative – Annuity Products | ( | ||||||||
Total Liabilities – Insurance | $ | $ | $ | $ | $ | $( | $( | $ | $ |
Total | $ | $ | $ | $ | $ | $( | $( | $ | $ |
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Nine Months Ended September 30, 2026 | |||||||||
Balance, Beg. of Period | Transfers In / (Out) - Changes in Consolidation | Transfers In | Transfers Out | Net Purchases/ Sales/ Settlements/ Issuances | Net Unrealized and Realized Gains (Losses) | Change in OCI | Balance, End of Period | Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date | |
Liabilities | |||||||||
Asset Management and Strategic Holdings | |||||||||
Unfunded Revolver Commitments | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Total Liabilities – Asset Management and Strategic Holdings | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Insurance | |||||||||
Policy Liabilities | $ | $ | $ | $ | $ | $( | $( | $ | $ |
Closed Block Policy Liabilities | ( | ( | ( | ||||||
Funds Withheld Payable at Interest | ( | ( | ( | ||||||
Embedded Derivative – Interest- Sensitive Life Products | ( | ||||||||
Embedded Derivative – Annuity Products | |||||||||
Total Liabilities – Insurance | $ | $ | $ | $ | $ | $( | $( | $ | $ |
Total | $ | $ | $ | $ | $ | $( | $( | $ | $ |
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Three Months Ended September 30, 2025 | |||||||||
Balance, Beg. of Period | Transfers In / (Out) - Changes in Consolidation | Transfers In | Transfers Out | Net Purchases/ Sales/ Settlements/ Issuances | Net Unrealized and Realized Gains (Losses) | Change in OCI | Balance, End of Period | Changes in Net Unrealized Gains (Losses) Included in Earnings related to Level III Assets and Liabilities still held as of the Reporting Date | |
Liabilities | |||||||||
Asset Management and Strategic Holdings | |||||||||
Unfunded Revolver Commitments | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Total Liabilities - Asset Management and Strategic Holdings | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Insurance | |||||||||
Policy Liabilities | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Closed Block Policy Liabilities | ( | ( | |||||||
Funds Withheld Payable at Interest | ( | ( | |||||||
Embedded Derivative – Interest- Sensitive Life Products | ( | ||||||||
Embedded Derivative – Annuity Products | |||||||||
Total Liabilities - Insurance | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ |
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Nine Months Ended September 30, 2025 | |||||||||
Balance, Beg. Of Period | Transfers In / (Out) - Changes In Consolidation | Transfers In | Transfers Out | Net Purchases/ sales/ settlements/ issuances | Net Unrealized And Realized Gains (Losses) | Change in OCI | Balance, End Of Period | Changes In Net Unrealized Gains (Losses) Included In Earnings Related To Level Iii Assets And Liabilities Still Held As Of The Reporting Date | |
Liabilities | |||||||||
Asset Management and Strategic Holdings | |||||||||
Unfunded Revolver Commitments | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Total Liabilities - Asset Management and Strategic Holdings | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Insurance | |||||||||
Policy Liabilities | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Closed Block Policy Liabilities | ( | ( | |||||||
Funds Withheld Payable at Interest | ( | ( | |||||||
Embedded Derivative – Interest- Sensitive Life Products | ( | ||||||||
Embedded Derivative – Annuity Products | |||||||||
Total Liabilities - Insurance | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Total | $ | $ | $ | $ | $ | $ | $ | $ | $ |
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Three Months Ended September 30, 2026 | Three Months Ended September 30, 2025 | ||||||
Issuances | Settlements | Net Issuances/ Settlements | Issuances | Settlements | Net Issuances/ settlements | ||
Liabilities | |||||||
Asset Management and Strategic Holdings | |||||||
Unfunded Revolver Commitments | $ | $ | $ | $ | $ | $ | |
Total Liabilities – Asset Management and Strategic Holdings | $ | $ | $ | $ | $ | $ | |
Insurance | |||||||
Policy Liabilities | $ | $( | $ | $ | $( | $ | |
Closed Block Policy Liabilities | ( | ( | |||||
Embedded Derivative – Interest-Sensitive Life Products | ( | ( | ( | ( | |||
Embedded Derivative – Annuity Products | ( | ( | |||||
Total Liabilities – Insurance | $ | $( | $ | $ | $( | $ | |
Total | $ | $( | $ | $ | $( | $ | |
Nine Months Ended September 30, 2026 | Nine Months Ended September 30, 2025 | ||||||
Issuances | Settlements | Net Issuances/ Settlements | Issuances | Settlements | Net Issuances/ Settlements | ||
Liabilities | |||||||
Asset Management and Strategic Holdings | |||||||
Unfunded Revolver Commitments | $ | $ | $ | $ | $ | $ | |
Total Liabilities – Asset Management and Strategic Holdings | $ | $ | $ | $ | $ | $ | |
Insurance | |||||||
Policy Liabilities | $ | $( | $ | $ | $( | $ | |
Closed Block Policy Liabilities | ( | ( | |||||
Embedded Derivative – Interest-Sensitive Life Products | ( | ( | ( | ( | |||
Embedded Derivative – Annuity Products | ( | ( | |||||
Total Liabilities – Insurance | $ | $( | $ | $ | $( | $ | |
Total | $ | $( | $ | $ | $( | $ | |
Total realized and unrealized gains and losses recorded for Asset Management and Strategic Holdings – Level III assets
and liabilities are reported in Net Gains (Losses) from Investment Activities in the accompanying consolidated statements of
operations while Insurance – Level III assets and liabilities are reported in Net Investment Gains and Policy Benefits and Claims
in the accompanying consolidated statements of operations.
used for the consolidated financial assets and liabilities that are measured and reported at fair value and categorized within
Level III as of September 30, 2026. Because input information includes only those items for which information is reasonably
available, balances shown below may not equal total amounts reported for such Level III assets and liabilities:
Level III Assets | Fair Value September 30, 2026 | Valuation Methodologies & Inputs | Unobservable Input(s) (1) | Weighted Average (2) | Range | Impact To Valuation From An Increase In Input (3) | ||||||
ASSET MANAGEMENT AND STRATEGIC HOLDINGS | ||||||||||||
Private Equity | $ | Inputs to market comparables, discounted cash flow and transaction price | Weight Ascribed to Market Comparables | (4) | ||||||||
Weight Ascribed to Discounted Cash Flow | (5) | |||||||||||
Weight Ascribed to Transaction Price/Other | (6) | |||||||||||
Market comparables | Enterprise Value/LTM EBITDA Multiple | Increase | ||||||||||
Enterprise Value/Forward EBITDA Multiple | Increase | |||||||||||
Discounted cash flow | Discount Rate | Decrease | ||||||||||
Enterprise Value/EBITDA Exit Multiple | Increase | |||||||||||
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Credit | $ | Yield Analysis | Yield | Decrease | ||||||||
Net Leverage | Decrease | |||||||||||
EBITDA Multiple | Increase | |||||||||||
Real Assets | $ | |||||||||||
Inputs to market comparables, discounted cash flow, direct income capitalization and transaction price | Weight Ascribed to Direct Income Capitalization | (7) | ||||||||||
Weight Ascribed to Discounted Cash Flow | (5) | |||||||||||
Weight Ascribed to Market Comparables/ Other | (4) (6) | |||||||||||
Market comparables | Enterprise Value/LTM EBITDA Multiple | Increase | ||||||||||
Enterprise Value/Forward EBITDA Multiple | Increase | |||||||||||
Direct income capitalization | Current Capitalization Rate | Decrease | ||||||||||
Discounted cash flow | Exit Capitalization Rate | Decrease | ||||||||||
Unlevered Discount Rate | Decrease | |||||||||||
Discount rate | Decrease | |||||||||||
Enterprise Value/EBITDA Exit Multiple | Increase | |||||||||||
Other Investments | $ | (8) | Inputs to market comparables, discounted cash flow and transaction price | Weight Ascribed to Market Comparables | (4) | |||||||
Weight Ascribed to Discounted Cash Flow | (5) | |||||||||||
Weight Ascribed to Transaction Price | (6) | |||||||||||
Market comparables | Enterprise Value/LTM EBITDA Multiple | Increase | ||||||||||
Enterprise Value/Forward EBITDA Multiple | Increase | |||||||||||
Discounted cash flow | Discount Rate | Decrease | ||||||||||
Enterprise Value/EBITDA Exit Multiple | Increase | |||||||||||
INSURANCE(9) | ||||||||||||
Corporate Fixed Maturity Securities | $ | Discounted cash flow | Discount Spread | Decrease | ||||||||
Structured Securities | $ | Discounted cash flow | Discount Spread | Decrease | ||||||||
Mortgage and Other Loan Receivables | $ | Discounted cash flow | Discount Spread | Decrease | ||||||||
Real Assets | $ | Discounted cash flow | Discount Rate | Decrease | ||||||||
Terminal Capitalization Rate | Decrease | |||||||||||
Reinsurance Recoverable | $ | Present value of expenses paid from the open block plus the cost of capital held in support of the liabilities. | Expense Assumption | $ | The average expense assumption is between $ $ increased by inflation. The annual inflation rate was increased by | Increase | ||||||
Unobservable inputs are a market participant’s view of the expenses, a risk margin on the uncertainty of the level of expenses and a cost of capital on the capital held in support of the liabilities. | Expense Risk Margin | Decrease | ||||||||||
Cost of Capital | Increase | |||||||||||
Discounted cash flow | Mortality Rate | Increase | ||||||||||
Surrender Rate | Increase |
(1)In determining certain of these inputs, management evaluates a variety of factors including economic conditions, industry and market developments,
market valuations of comparable companies and company specific developments including exit strategies and realization opportunities. KKR has
determined that market participants would take these inputs into account when valuing the investments and debt obligations. “LTM” means last twelve
months, and “EBITDA” means earnings before interest, taxes, depreciation, and amortization.
(2)Inputs were weighted based on the fair value of the investments included in the range.
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(3)Unless otherwise noted, this column represents the directional change in the fair value of the Level III investments that would result from an increase to
the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect. Significant increases and decreases in these
inputs in isolation could result in significantly higher or lower fair value measurements.
(4)The directional change from an increase in the weight ascribed to the market comparables approach would increase the fair value of the Level III
investments if the market comparables approach results in a higher valuation than the discounted cash flow approach and transaction price. The opposite
would be true if the market comparables approach results in a lower valuation than the discounted cash flow approach and transaction price.
(5)The directional change from an increase in the weight ascribed to the discounted cash flow approach would increase the fair value of the Level III
investments if the discounted cash flow approach results in a higher valuation than the market comparables approach, transaction price and direct
income capitalization approach. The opposite would be true if the discounted cash flow approach results in a lower valuation than the market
comparables approach, transaction price and direct income capitalization approach.
(6)The directional change from an increase in the weight ascribed to the transaction price or milestones would increase the fair value of the Level III
investments if the transaction price or milestones results in a higher valuation than the market comparables and discounted cash flow approach. The
opposite would be true if the transaction price or milestones results in a lower valuation than the market comparables approach and discounted cash flow
approach.
(7)The directional change from an increase in the weight ascribed to the direct income capitalization approach would increase the fair value of the Level III
investments if the direct income capitalization approach results in a higher valuation than the discounted cash flow approach. The opposite would be true
if the direct income capitalization approach results in a lower valuation than the discounted cash flow approach.
(8)Consists primarily of investments in common stock, preferred stock, warrants and options of companies that are not private equity, real assets, credit,
equity method - other, or investments of consolidated CFEs.
(9)The funds withheld receivable at interest has been excluded from the above table. As discussed in Note 12 – Reinsurance, the funds withheld receivable
at interest is created through funds withheld contracts. The assets supporting these receivables were held in trusts for the benefit of Global Atlantic.
Accordingly, the unobservable inputs utilized in the valuation of the embedded derivative are a component of the invested assets supporting the funds
withheld reinsurance agreements.
Level III Liabilities | Fair Value September 30, 2026 | Valuation Methodologies | Unobservable Input(s) (1) | Weighted Average (2) | Range | Impact To Valuation From An Increase In Input (3) | ||||||
ASSET MANAGEMENT AND STRATEGIC HOLDINGS | ||||||||||||
Unfunded Revolver Commitments | $ | Yield Analysis | Discount Rate | Decrease | ||||||||
INSURANCE(4) | ||||||||||||
Policy Liabilities | $ | Policy liabilities under fair value option: | ||||||||||
Present value of best estimate liability cash flows. Unobservable inputs include a market participant view of the risk margin included in the discount rate which reflects the variability of the cash flows. | Risk Margin Rate | Decrease | ||||||||||
Policyholder behavior is also a significant unobservable input, including lapse, surrender and mortality. | Surrender Rate | Decrease | ||||||||||
Mortality Rate | Increase | |||||||||||
Market risk benefit: | ||||||||||||
Fair value using a non-option and option valuation approach | Instrument-specific Credit Risk (10 and 30 Year) | Decrease | ||||||||||
Policyholder behavior is also a significant unobservable input, including lapse, surrender, and mortality. | Mortality Rate | Decrease | ||||||||||
Surrender Rate | Decrease | |||||||||||
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Level III Liabilities | Fair Value September 30, 2026 | Valuation Methodologies | Unobservable Input(s) (1) | Weighted Average (2) | Range | Impact To Valuation From An Increase In Input (3) | ||||||
Closed Block Policy Liabilities | $ | Present value of expenses paid from the open block plus the cost of capital held in support of the liabilities. | Expense Assumption | $ | The average expense assumption is between $ $ increased by inflation. The annual inflation rate was increased by | Increase | ||||||
Instrument-Specific Credit Risk | Decrease | |||||||||||
Unobservable inputs are a market participant’s view of the expenses, a risk margin on the uncertainty of the level of expenses and a cost of capital on the capital held in support of the liabilities. | Expense Risk Margin | Decrease | ||||||||||
Cost of Capital | Increase | |||||||||||
Discounted cash flow | Mortality Rate | Increase | ||||||||||
Surrender Rate | Increase | |||||||||||
Embedded Derivative – Interest-Sensitive Life Products | $ | Policy persistency is a significant unobservable input. | Lapse Rate | Decrease | ||||||||
Mortality Rate | Decrease | |||||||||||
Future costs for options used to hedge the contract obligations | Option Budget Assumption | Increase | ||||||||||
Instrument-Specific Credit Risk | Decrease | |||||||||||
Embedded Derivative – Annuity Products | $ | Policyholder behavior is a significant unobservable input, including utilization and lapse. | Utilization: | |||||||||
Fixed-Indexed Annuity | Increase | |||||||||||
Surrender Rate: | ||||||||||||
Retail FIA | Increase | |||||||||||
Institutional FIA | Decrease | |||||||||||
Mortality Rate: | ||||||||||||
Retail FIA | Decrease | |||||||||||
Institutional FIA | Decrease | |||||||||||
Future costs for options used to hedge the contract obligations | Option Budget Assumption: | |||||||||||
Retail FIA | Increase | |||||||||||
Institutional FIA | Increase | |||||||||||
Instrument-Specific Credit Risk | Decrease |
(1)In determining certain of these inputs, management evaluates a variety of factors including economic conditions, industry and market developments,
market valuations of comparable companies and company specific developments including exit strategies and realization opportunities. KKR has
determined that market participants would likely take these inputs into account when valuing the investments and debt obligations. “LTM” means last
twelve months, and “EBITDA” means earnings before interest, taxes, depreciation and amortization.
(2)Inputs were weighted based on the fair value of the investments included in the range.
(3)Unless otherwise noted, this column represents the directional change in the fair value of the Level III investments that would result from an increase to
the corresponding unobservable input. A decrease to the unobservable input would have the opposite effect. Significant increases and decreases in these
inputs in isolation could result in significantly higher or lower fair value measurements.
(4)The fair value of the embedded derivative component of the funds withheld payable at interest has been excluded from the above table. The investments
supporting the funds withheld payable at interest balance are held in a trust by Global Atlantic. Accordingly, the unobservable inputs utilized in the
valuation of the embedded derivative are a component of the investments supporting the reinsurance cession agreements.
In the table above, certain private equity investments may be valued at cost for a period of time after an acquisition as
the best indicator of fair value. In addition, certain valuations of private equity investments may be entirely or partially
derived by reference to observable valuation measures for a pending or consummated transaction.
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The various unobservable inputs used to determine the Level III valuations may have similar or diverging impacts on
valuation. Significant increases and decreases in these inputs in isolation and interrelationships between those inputs could
result in significantly higher or lower fair value measurements as noted in the table above.
Financial Instruments Not Carried At Fair Value
Asset Management and Strategic Holdings financial instruments are primarily measured at fair value on a recurring basis,
except as disclosed in Note 16 “Debt Obligations.”
not carried at fair value as of September 30, 2026, and December 31, 2025:
Fair Value Hierarchy | |||||||||
As of September 30, 2026 | Carrying Value | Level I | Level II | Level III | Fair Value | ||||
($ in thousands) | |||||||||
Financial Assets: | |||||||||
Insurance | |||||||||
Mortgage and Other Loan Receivables | $ | $ | $ | $ | $ | ||||
Policy Loans | |||||||||
FHLB Common Stock and Other Investments | |||||||||
Funds Withheld Receivables at Interest | |||||||||
Cash and Cash Equivalents | |||||||||
Restricted Cash and Cash Equivalents | |||||||||
Total Financial Assets | $ | $ | $ | $ | $ | ||||
Financial Liabilities: | |||||||||
Insurance | |||||||||
Policy Liabilities – Policyholder Account Balances | $ | $ | $ | $ | $ | ||||
Funds Withheld Payables at Interest | |||||||||
Debt Obligations | |||||||||
Securities Sold Under Agreements to Repurchase | |||||||||
Total Financial Liabilities | $ | $ | $ | $ | $— | $ | |||
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Fair Value Hierarchy | |||||||||
As of December 31, 2025 | Carrying Value | Level I | Level II | Level III | Fair Value | ||||
($ in thousands) | |||||||||
Financial Assets: | |||||||||
Insurance | |||||||||
Mortgage and Other Loan Receivables | $ | $ | $ | $ | $ | ||||
Policy Loans | |||||||||
FHLB Common Stock and Other Investments | |||||||||
Funds Withheld Receivables at Interest | |||||||||
Cash and Cash Equivalents | |||||||||
Restricted Cash and Cash Equivalents | |||||||||
Total Financial Assets | $ | $ | $ | $ | $ | ||||
Financial Liabilities: | |||||||||
Insurance | |||||||||
Policy Liabilities – Policyholder Account Balances | $ | $ | $ | $ | $ | ||||
Funds Withheld Payables at Interest | |||||||||
Debt Obligations | |||||||||
Securities Sold Under Agreements to Repurchase | |||||||||
Total Financial Liabilities | $ | $ | $ | $ | $ | ||||
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10. FAIR VALUE OPTION
September 30, 2026 | December 31, 2025 | ||
Assets | |||
Asset Management and Strategic Holdings | |||
Credit | $ | $ | |
Investments of Consolidated CFEs | |||
Real Assets | |||
Private Equity | |||
Other Investments | |||
Total Asset Management and Strategic Holdings (1) | $ | $ | |
Insurance | |||
Fixed Maturity Securities | $ | $ | |
Mortgage and Other Loan Receivables | |||
Real Assets | |||
Other Investments | |||
Reinsurance Recoverable | |||
Total Insurance | $ | $ | |
Total Assets | $ | $ | |
Liabilities | |||
Asset Management and Strategic Holdings | |||
Debt Obligations of Consolidated CFEs | $ | $ | |
Total Asset Management and Strategic Holdings | $ | $ | |
Insurance | |||
Policy Liabilities | $ | $ | |
Total Insurance | $ | $ | |
Total Liabilities | $ | $ |
(1)As of September 30, 2026, and December 31, 2025, the fair value of Equity Method investments was $1.2 billion and $1.3 billion, respectively.
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value option was elected:
Three Months Ended September 30, 2026 | Three Months Ended September 30, 2025 | |||||||||||
Net Realized Gains (Losses) | Net Unrealized Gains (Losses) | Total | Net Realized Gains (Losses) | Net Unrealized Gains (Losses) | Total | |||||||
Assets (1) | ||||||||||||
Asset Management and Strategic Holdings | ||||||||||||
Credit | $( | $ | $( | $ | $ | $ | ||||||
Investments of Consolidated CFEs | ( | ( | ( | ( | ||||||||
Real Assets | ( | ( | ( | |||||||||
Private Equity | ( | ( | ( | ( | ( | |||||||
Other Investments | ( | |||||||||||
Total Asset Management and Strategic Holdings | $( | $ | $ | $( | $( | $( | ||||||
Insurance | ||||||||||||
Fixed Maturity Securities | $ | $ | $ | $ | $( | $( | ||||||
Mortgage and Other Loan Receivables | $ | $( | $( | $ | $ | $ | ||||||
Real Assets | ( | ( | ||||||||||
Other Investments | ( | ( | ( | ( | ||||||||
Total Insurance | $ | 0 | $( | 0 | $( | $ | $ | $ | ||||
Total Assets | $( | 0 | $ | $( | $( | $( | $( | |||||
Liabilities | ||||||||||||
Asset Management and Strategic Holdings | ||||||||||||
Debt Obligations of Consolidated CFEs | $( | $( | $( | $( | $ | $ | ||||||
Total Asset Management and Strategic Holdings | $( | $( | $( | $( | $ | $ | ||||||
Insurance | ||||||||||||
Policy Liabilities | $ | $ | $ | $ | $ | $ | ||||||
Total Insurance | $ | $ | $ | $ | $ | $ | ||||||
Total Liabilities | $( | $( | $( | $( | $ | $ | ||||||
Nine Months Ended September 30, 2026 | Nine Months Ended September 30, 2025 | |||||||||||
Net Realized Gains (Losses) | Net Unrealized Gains (Losses) | Total | Net Realized Gains (Losses) | Net Unrealized Gains (Losses) | Total | |||||||
Assets (1) | ||||||||||||
Asset Management and Strategic Holdings | ||||||||||||
Credit | $( | 0 | $( | $( | $ | $ | $ | |||||
Investments of Consolidated CFEs | ( | ( | ( | ( | ( | ( | ||||||
Real Assets | ( | ( | ( | |||||||||
Private Equity | ( | ( | ( | |||||||||
Other Investments | ( | ( | ( | ( | ||||||||
Total Asset Management and Strategic Holdings | $( | $( | $( | $( | $( | $( | ||||||
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Nine Months Ended September 30, 2026 | Nine Months Ended September 30, 2025 | |||||||||||
Net Realized Gains (Losses) | Net Unrealized Gains (Losses) | Total | Net Realized Gains (Losses) | Net Unrealized Gains (Losses) | Total | |||||||
Insurance | ||||||||||||
Fixed Maturity Securities | $( | $ | $ | $ | $( | $( | ||||||
Mortgage and Other Loan Receivables | ( | ( | ||||||||||
Real Assets | ( | ( | ||||||||||
Other Investments | ( | ( | ( | ( | ( | |||||||
Total Insurance | $( | $( | $( | $ | $( | $( | ||||||
Total Assets | $( | $( | $( | $( | $( | $( | ||||||
Liabilities | ||||||||||||
Asset Management and Strategic Holdings | ||||||||||||
Debt Obligations of Consolidated CFEs | $( | $ | $ | $( | $ | $ | ||||||
Total Asset Management and Strategic Holdings | $( | $ | $ | $( | $ | $ | ||||||
Insurance | ||||||||||||
Policy Liabilities | $ | $ | $ | $ | $ | $ | ||||||
Total Insurance | $ | $ | $ | $ | $ | $ | ||||||
Total Liabilities | $( | $ | $ | $( | $ | $ | ||||||
(1)As of September 30, 2026, and December 31, 2025, the net gains (losses) of Equity Method investments was $(26.2 ) million and $41.7 million,
respectively.
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11. INSURANCE INTANGIBLE ASSETS AND LIABILITIES
the consolidated statements of financial condition as of September 30, 2026, and December 31, 2025:
September 30, | December 31, | ||
2026 | 2025 | ||
Deferred Acquisition Costs, or “DAC” | $ | $ | |
Value of Business Acquired | |||
Cost-of-Reinsurance Intangibles | |||
Deferred Sales Inducements | |||
Total Insurance Intangible Assets | $ | $ |
Deferred Acquisition Costs
September 30, 2026 and 2025:
Nine Months Ended September 30, 2026 | |||||||||
Fixed Rate Annuities | Fixed Indexed Annuities | Interest Sensitive Life | Other | Total | |||||
Balance, as of the Beginning of the Period | $ | $ | $ | $ | $ | ||||
Capitalizations | |||||||||
Amortization Expense | ( | ( | ( | ( | ( | ||||
Balance, as of the End of the Period | $ | $ | $ | $ | $ | ||||
Nine Months Ended September 30, 2025 | |||||||||
Fixed Rate Annuities | Fixed Indexed Annuities | Interest Sensitive Life | Other | Total | |||||
Balance, as of the Beginning of the Period | $ | $ | $ | $ | $ | ||||
Capitalizations | |||||||||
Amortization Expense | ( | ( | ( | ( | ( | ||||
Balance, as of the End of the Period | $ | $ | $ | $ | $ | ||||
Value of Business Acquired
months ended September 30, 2026 and 2025:
Nine Months Ended September 30, 2026 | |||||||||||
Fixed Rate Annuities | Fixed Indexed Annuities | Interest Sensitive Life | Variable Annuities | Other | Total | ||||||
Balance, as of the Beginning of the Period | $ | $ | $ | $ | $ | $ | |||||
Amortization Expense | ( | ( | ( | ( | ( | ( | |||||
Balance, as of the End of the Period | $ | $ | $ | $ | $ | $ | |||||
Nine Months Ended September 30, 2025 | |||||||||||
Fixed Rate Annuities | Fixed Indexed Annuities | Interest Sensitive Life | Variable Annuities | Other | Total | ||||||
Balance, as of the Beginning of the Period | $ | $ | $ | $ | $ | $ | |||||
Amortization Expense | ( | ( | ( | ( | ( | ( | |||||
Balance, as of the End of the Period | $ | $ | $ | $ | $ | $ | |||||
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The following tables reflect the negative value of business acquired, or “negative VOBA” liability roll-forward by product
category for the nine months ended September 30, 2026 and 2025:
Nine Months Ended September 30, 2026 | |||||||||||
Fixed Rate Annuities | Fixed Indexed Annuities | Interest Sensitive Life | Variable Annuities | Other | Total | ||||||
Balance, as of the Beginning of the Period | $ | $ | $ | $ | $ | $ | |||||
Amortization Expense | ( | ( | ( | ( | ( | ( | |||||
Balance, as of the End of the Period | $ | $ | $ | $ | $ | $ | |||||
Nine Months Ended September 30, 2025 | |||||||||||
Fixed Rate Annuities | Fixed Indexed Annuities | Interest Sensitive Life | Variable Annuities | Other | Total | ||||||
Balance, as of the Beginning of the Period | $ | $ | $ | $ | $ | $ | |||||
Amortization Expense | ( | ( | ( | ( | ( | ( | |||||
Balance, as of the End of the Period | $ | $ | $ | $ | $ | $ | |||||
Deferred Sales Inducements
September 30, 2026:
Nine Months Ended September 30, 2026 | |
Fixed Indexed Annuities | |
Balance, as of the Beginning of the Period | $ |
Capitalizations | |
Amortization Expense | ( |
Balance, as of the End of the Period | $ |
Unearned Revenue Reserves and Unearned Front-End Loads
category for the nine months ended September 30, 2026 and 2025:
Nine Months Ended September 30, | |||
2026 | 2025 | ||
Preneed | |||
Balance, as of the Beginning of the Period | $ | $ | |
Deferral | |||
Amortized to Income during the Period | ( | ( | |
Balance, as of the End of the Period | $ | $ | |
Significant inputs, judgments, assumptions for DAC and related amortization amounts
Global Atlantic considers surrender rates, mortality rates, and other relevant policy decrements in determining the
expected life of the contract; Global Atlantic reviews these assumptions at least annually, and more frequently if necessary.
As a part of Global Atlantic's annual assumption review for the nine months ended September 30, 2026 and 2025, Global
Atlantic concluded that there was no material change in relevant inputs, judgments, or assumptions requiring an update of
the amortization rate for DAC and related amortization amounts based on review of actual experience.
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12. REINSURANCE
Global Atlantic maintains a number of reinsurance treaties with third parties whereby Global Atlantic assumes annuity
and life policies on a coinsurance, modified coinsurance or funds withheld basis. Global Atlantic also maintains other
reinsurance treaties including the cession of certain annuity, life and health policies.
September 30, 2026 | December 31, 2025 | ||
Policy Liabilities: | |||
Direct | $ | $ | |
Assumed | |||
Total Policy Liabilities | |||
Ceded(1) | ( | ( | |
Net Policy Liabilities | $ | $ |
(1)Reported within reinsurance recoverable within the consolidated statements of financial condition.
A key credit quality indicator is a counterparty’s A.M. Best financial strength rating. A.M. Best ratings are an independent
opinion of a reinsurer’s ability to meet ongoing obligations to policyholders. Global Atlantic mitigates counterparty credit risk
by requiring collateral and credit enhancements in various forms including engaging in funds withheld at interest and
modified coinsurance transactions. The following shows the amortized cost basis of Global Atlantic’s reinsurance recoverable
and funds withheld receivable at interest by credit quality indicator and any associated credit enhancements Global Atlantic
has obtained to mitigate counterparty credit risk:
As of September 30, 2026 | As of December 31, 2025 | ||||||||||
A.M. Best Rating(1) | Reinsurance Recoverable and Funds Withheld Receivable at Interest | Credit Enhancements(2) | Net Reinsurance Credit Exposure(3) | Reinsurance Recoverable and Funds Withheld Receivable at Interest | Credit Enhancements(2) | Net Reinsurance Credit Exposure(3) | |||||
A++ | $ | $ | $ | $ | $ | $ | |||||
A+ | |||||||||||
A | |||||||||||
A- | |||||||||||
B++ | |||||||||||
Not Rated or Private Rating(4) | |||||||||||
Total | $ | $ | $ | $ | $ | $ | |||||
(1)Ratings are periodically updated (at least annually) as A.M. Best issues new ratings.
(2)Credit enhancements primarily include funds withheld payable at interest.
(3)Includes credit loss allowance of $23.0 million and $25.6 million as of September 30, 2026, and December 31, 2025, respectively, held against reinsurance
recoverable and funds withheld receivable at interest.
(4)Includes $45.9 billion and $43.0 billion as of September 30, 2026, and December 31, 2025, respectively, associated with cessions to certain sponsored
investment vehicles that participate in qualifying institutional and individual market activities sourced by Global Atlantic.
As of September 30, 2026, and December 31, 2025, Global Atlantic had $2.2 billion and $2.3 billion, respectively, of funds
withheld receivable at interest with six
assets supporting the funds withheld receivable at interest balance are held in trusts for the benefit of Global Atlantic.
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Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Net Premiums: | |||||||
Direct | $ | $ | $ | $ | |||
Assumed | |||||||
Ceded | ( | ( | ( | ( | |||
Net Premiums | $ | $ | $ | $ | |||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Policy Fees: | |||||||
Direct | $ | $ | $ | $ | |||
Assumed | |||||||
Ceded | ( | ( | ( | ( | |||
Net Policy Fees | $ | $ | $ | $ | |||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Net Policy Benefits and Claims: | |||||||
Direct | $ | $ | $ | $ | |||
Assumed | |||||||
Ceded | ( | ( | ( | ( | |||
Net Policy Benefits and Claims | $ | $ | $ | $ | |||
Global Atlantic holds collateral for, and provides collateral to, its reinsurance clients. Global Atlantic held $52.6 billion and
$49.0 billion, respectively, of collateral in the form of funds withheld payable at interest on behalf of its reinsurers as of
September 30, 2026, and December 31, 2025. As of September 30, 2026, and December 31, 2025, reinsurers held collateral of
$1.0 billion and $1.1 billion on behalf of Global Atlantic, respectively. A significant portion of the collateral that Global Atlantic
provides to its reinsurance clients is provided in the form of assets held in a trust for the benefit of the counterparty. As of
September 30, 2026, and December 31, 2025, these trusts held in excess of the $106.4 billion and $107.3 billion of assets they
are required to hold in order to support reserves of $101.2 billion and $104.1 billion, respectively. Of the cash held in trust,
Global Atlantic classified $94.7 million and $139.1 million as restricted as of September 30, 2026, and December 31, 2025,
respectively.
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13. NET INCOME (LOSS) ATTRIBUTABLE TO KKR & CO. INC. PER SHARE OF COMMON
STOCK
KKR & Co. Inc. per share of common stock were calculated as follows:
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
2026 | 2025 | 2026 | 2025 | |||||
Net Income (Loss) Attributable to KKR & Co. Inc. Common Stockholders | $ | $ | $ | $ | ||||
(-) Accumulated Series D Mandatory Convertible Preferred Dividend (1) | ||||||||
Net Income (Loss) Available to KKR & Co. Inc. Common Stockholders – Basic | $ | $ | $ | $ | ||||
(+) Series D Mandatory Convertible Preferred Dividend (if dilutive) (2) | ||||||||
Net Income (Loss) Available to KKR & Co. Inc. Common Stockholders – Diluted | $ | $ | $ | $ | ||||
Basic Net Income (Loss) Per Share of Common Stock | ||||||||
Weighted Average Shares of Common Stock Outstanding – Basic | ||||||||
Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Common Stock – Basic | $ | $ | $ | $ | ||||
Diluted Net Income (Loss) Per Share of Common Stock | ||||||||
Weighted Average Shares of Common Stock Outstanding – Basic | ||||||||
Incremental Common Shares: | ||||||||
Assumed vesting of dilutive equity grants (3) | ||||||||
Assumed conversion of Series D Mandatory Convertible Preferred Stock (2) | ||||||||
Weighted Average Shares of Common Stock Outstanding – Diluted | ||||||||
Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Common Stock – Diluted | $ | $ | $ | $ | ||||
(1)For the nine months ended September 30, 2025, Net Income (Loss) Available to KKR & Co. Inc. Common Stockholders – Basic reflects the accumulated
undeclared dividends on Series D Mandatory Convertible Preferred Stock of $13.5 million.
(2)For the three and nine months ended September 30, 2026 and 2025, the impact of Series D Mandatory Convertible Preferred Stock calculated under the
if-converted method was not dilutive.
(3)For the three and nine months ended September 30, 2026 and 2025, Weighted Average Shares of Common Stock Outstanding – Diluted includes
unvested equity grants, including certain equity grants that have met their market price-based vesting condition but have not satisfied their service-based
vesting condition. Vesting of these equity awards dilute equity holders of KKR Group Partnership, including KKR & Co. Inc. and holders of exchangeable
securities pro rata in accordance with their respective ownership interests in KKR Group Partnership.
Exchangeable Securities
19 “Equity-based Compensation”) have been excluded from the calculation of Net Income (Loss) Attributable to KKR & Co. Inc.
Per Share of Common Stock – Diluted since the exchange of these units would not dilute KKR & Co. Inc.’s ownership interests
in KKR Group Partnership. See Note 1 “Organization” in our financial statements.
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Weighted Average Vested Restricted Holdings Units | |||||||
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Market-Condition and Performance-Condition Grants
KKR also grants restricted stock units and restricted holdings units that are subject to either (i) both a service-based
vesting condition and a market-price based vesting condition (referred to hereafter as “Market-Condition Grants”), or (ii) both
a service-based vesting condition and certain performance-based conditions (referred to hereafter as “Performance-Condition
Grants”). For the three and nine months ended September 30, 2026, 29.9 million and 19.3 million, respectively, of unvested
Market-Condition Grants, and 2.0 million and 1.6 million, respectively, of unvested Performance-Condition Grants, were
excluded from the calculation of Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Common Stock – Diluted
because the applicable market-price and performance-based vesting conditions were not satisfied.
14. OTHER ASSETS AND ACCRUED EXPENSES AND OTHER LIABILITIES
September 30, 2026 | December 31, 2025 | ||
Asset Management and Strategic Holdings | |||
Unsettled Investment Sales (1) | $ | $ | |
Receivables | |||
Due from Broker (2) | |||
Deferred Tax Assets, net | |||
Interest Receivable | |||
Fixed Assets, net (3) | |||
Foreign Exchange Contracts and Options (4) | |||
Goodwill (5)(6) | |||
Intangible Assets (6)(7) | |||
Derivative Assets | |||
Prepaid Taxes | |||
Prepaid Expenses | |||
Operating Lease Right of Use Assets (8) | |||
Deferred Financing Costs | |||
Other | |||
Total Asset Management and Strategic Holdings | $ | $ | |
Insurance | |||
Deferred Tax Assets, net | $ | $ | |
Accrued Investment Income | |||
Goodwill | |||
Intangible Assets (9) | |||
Premiums and Other Account Receivables | |||
Other | |||
Derivative Assets | |||
Operating Lease Right of Use Assets (8) | |||
Market Risk Benefit Assets | |||
Unsettled Investment Sales(1) and Derivative Collateral Receivables | |||
Total Insurance | $ | $ | |
Total Other Assets | $ | $ |
(1)Primarily includes amounts due from third parties for investments sold for which cash settlement has not yet occurred.
(2)Represents amounts held at clearing brokers resulting from securities transactions.
(3)Net of accumulated depreciation and amortization of $452.9 million and $383.1 million as of September 30, 2026, and December 31, 2025, respectively.
Depreciation and amortization expense of $23.7 million and $22.1 million for the three months ended September 30, 2026, and 2025, respectively, and
$68.4 million and $60.3 million, for the nine months ended September 30, 2026 and 2025, respectively, are included in General, Administrative and Other
in the accompanying consolidated statements of operations. Additionally, KKR’s fixed assets are predominantly located in the United States.
(4)Represents derivative financial instruments used to manage foreign exchange risk arising from certain foreign currency denominated investments. Such
instruments are measured at fair value with changes in fair value recorded in Net Gains (Losses) from Investment Activities in the accompanying
consolidated statements of operations. See Note 4 “Net Gains (Losses) from Investment Activities – Asset Management and Strategic Holdings” in our
financial statements for the net changes in fair value associated with these instruments.
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(5)As of September 30, 2026, the carrying value of goodwill is recorded and assessed for impairment at the reporting unit.
(6)See Note 25 “Acquisition” for additional information relating to goodwill and intangibles recognized related to the Arctos Acquisition. On January 2, 2026,
KKR acquired control of an aviation finance business, Altavair, and recognized goodwill of $167 million allocated to the Asset Management segment,
intangible assets of $46 million, and redeemable noncontrolling interests of $60 million. In July 2025, KKR acquired HealthCare Royalty Management, LLC
and recognized goodwill of $8.6 million allocated to the Asset Management segment, intangible assets of $141.6 million, and noncontrolling interests of
$28.3 million.
(7)For Asset Management, the carrying amount of indefinite-lived intangible assets was approximately $1.6 billion as of September 30, 2026, and the
remaining useful lives of finite-lived intangible assets ranged from 6 to 15 years.
(8)For Asset Management, non-cancelable operating leases consist of leases for office space in North America, Europe, Asia, and Australia. KKR is the lessee
under the terms of the operating leases. The operating lease cost was $25.6 million and $21.5 million for the three months ended September 30, 2026
and 2025, respectively, and $81.9 million and $75.1 million for the nine months ended September 30, 2026 and 2025, respectively. For Insurance, non-
cancelable operating leases consist of leases for office space and land in North America. For the three months ended September 30, 2026 and 2025, the
operating lease cost was $6.5 million and $4.6 million, respectively, and for the nine months ended September 30, 2026 and 2025, the operating lease
cost was $13.0 million and $14.7 million, respectively.
(9)The definite life intangible assets are amortized using the straight-line method over the useful life of the assets which is an average of 8.0 years. The
indefinite life intangible assets are not subject to amortization. The amortization expense of definite life intangible assets was $4.4 million and $4.7 million
for the three months ended September 30, 2026 and 2025, respectively, and $23.0 million and $14.1 million for the nine months ended September 30,
2026 and 2025, respectively.
September 30, 2026 | December 31, 2025 | ||
Asset Management and Strategic Holdings | |||
Amounts Payable to Carry Pool (1) | $ | $ | |
Unsettled Investment Purchases (2) | |||
Securities Sold Short (3) | |||
Derivative Liabilities | |||
Accrued Compensation and Benefits | |||
Interest Payable | |||
Foreign Exchange Contracts and Options (4) | |||
Accounts Payable and Accrued Expenses | |||
Taxes Payable | |||
Uncertain Tax Positions | |||
Unfunded Revolver Commitments | |||
Operating Lease Liabilities (5) | |||
Deferred Tax Liabilities, net | |||
Other Liabilities | |||
Total Asset Management and Strategic Holdings | $ | $ | |
Insurance | |||
Unsettled Investment Purchases(2) and Derivative Collateral Liabilities | $ | $ | |
Accrued Expenses | |||
Derivative Liabilities | |||
Securities Sold Under Agreements to Repurchase | |||
Insurance Operations Balances in Course of Settlement | |||
Operating Lease Liabilities (5) | |||
Accrued Employee Related Expenses | |||
Interest Payable | |||
Tax Payable to Former Parent Company | |||
Other Tax Related Liabilities | |||
Accounts and Commissions Payable | |||
Current Income Tax Payable | |||
Total Insurance | $ | $ | |
Total Accrued Expenses and Other Liabilities | $ | $ |
(1)Represents the amount of carried interest payable to current and former KKR employees arising from KKR's investment funds and co-investment vehicles
that provide for carried interest.
(2)Primarily includes amounts owed to third parties for investment purchases for which cash settlement has not yet occurred.
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(3)Represents the obligations of KKR to deliver a specified security at a future point in time. Such securities are measured at fair value with changes in fair
value recorded in Net Gains (Losses) from Investment Activities in the accompanying consolidated statements of operations. See Note 4 “Net Gains
(Losses) from Investment Activities – Asset Management and Strategic Holdings” in our financial statements for the net changes in fair value associated
with these instruments.
(4)Represents derivative financial instruments used to manage foreign exchange risk arising from certain foreign currency denominated investments. Such
instruments are measured at fair value with changes in fair value recorded in Net Gains (Losses) from Investment Activities in the accompanying
consolidated statements of operations. See Note 4 “Net Gains (Losses) from Investment Activities – Asset Management and Strategic Holdings” in our
financial statements for the net changes in fair value associated with these instruments.
(5)For Asset Management, operating leases for office space have remaining lease terms that range from approximately 1 year to 16 years, some of which
include options to extend the leases from 2 years to 10 years. The weighted average remaining lease terms were 11.8 years and 12.7 years as of
September 30, 2026, and December 31, 2025, respectively. The weighted average discount rates were 3.7 % and 3.8 % as of September 30, 2026, and
December 31, 2025, respectively. For Insurance, operating leases for office space have remaining lease terms that range from approximately 4 months to
as of September 30, 2026, and December 31, 2025, respectively. The weighted average discount rates were 5.1 % and 3.8 % as of September 30, 2026 and
December 31, 2025, respectively. The weighted average remaining lease terms for land were 39.9 years and 42.0 years as of September 30, 2026, and
December 31, 2025, respectively. For Asset Management and Strategic Holdings and Insurance, non-cash right of use assets obtained in exchange for new
operating lease liabilities were $24.9 million and $46.0 million for the three and nine months ended September 30, 2026, respectively. For Asset
Management, Strategic Holdings and Insurance, non-cash right of use assets obtained in exchange for new operating lease liabilities were $68.8 million
15. VARIABLE INTEREST ENTITIES
Consolidated VIEs
KKR consolidates certain VIEs in which it is determined that KKR is the primary beneficiary. The consolidated VIEs are
predominately CLOs and certain investment funds sponsored by KKR. The primary purpose of these VIEs is to provide strategy
specific investment opportunities to earn investment gains, current income or both in exchange for management fees and
performance income. KKR's investment strategies differ for these VIEs; however, the fundamental risks have similar
characteristics, including loss of invested capital and loss of management fees and performance income. KKR does not provide
performance guarantees and has no other financial obligation to provide funding to these consolidated VIEs, beyond amounts
previously committed, if any. Furthermore, KKR consolidates certain VIEs that are formed by Global Atlantic to either (i) hold
investments, including fixed maturity securities, consumer and other loans, renewable energy, transportation and real estate,
or (ii) to conduct certain reinsurance activities with third party commitments.
Unconsolidated VIEs
KKR holds variable interests in certain VIEs which are not consolidated as it has been determined that KKR is not the
primary beneficiary. VIEs that are not consolidated predominantly include certain investment funds sponsored by KKR as well
as certain investment partnerships where Global Atlantic retains an economic interest. KKR's investment strategies differ by
investment fund; however, the fundamental risks have similar characteristics, including loss of invested capital and loss of
management fees and performance income. KKR's maximum exposure to loss as a result of its investments in the
unconsolidated investment funds is the carrying value of such investments, including KKR's capital interest and any unrealized
carried interest. Accordingly, disaggregation of KKR's involvement by type of unconsolidated investment fund would not
provide more useful information. For these unconsolidated investment funds in which KKR is the sponsor, KKR may have an
obligation as general partner to provide commitments to such investment funds. As of September 30, 2026, KKR's
commitments to these unconsolidated investment funds were $2.2 billion. KKR generally has not provided any financial
support other than its obligated amount as of September 30, 2026. Additionally, Global Atlantic has unfunded commitments
of $401.7 million as of September 30, 2026.
and noncontrolling interests, if any, for those VIEs in which KKR is determined not to be the primary beneficiary but in which it
has a variable interest is as follows:
September 30, 2026 | December 31, 2025 | ||
Asset Management and Strategic Holdings | |||
Investments | $ | $ | |
Due from (to) Affiliates, net | |||
Maximum Exposure to Loss | $ | $ | |
Insurance | |||
Real Assets | $ | $ |
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September 30, 2026 | December 31, 2025 | ||
Other Investments | |||
Maximum Exposure to Loss | $ | $ | |
Total Maximum Exposure to Loss | $ | $ |
16. DEBT OBLIGATIONS
KKR enters into credit agreements and issues debt for its general operating and investment purposes.
September 30, 2026 | December 31, 2025 | |||||||||
By remaining maturity at period end date | Financing Available | Principal | Carrying Value | Fair Value | Financing Available | Principal | Carrying Value | Fair Value | ||
Revolving Credit Facilities: (1) | ||||||||||
Under 1 Year | $ | $— | $— | $— | $ | $— | $— | $— | ||
1-5 Years | — | — | — | — | — | — | ||||
After 5 Years | — | — | — | — | — | — | ||||
Subtotal | — | — | — | — | — | — | ||||
KKR USD Senior Notes: (2)(3)(5)(7) | ||||||||||
Under 1 Year | — | — | ||||||||
1-5 Years | — | — | ||||||||
After 5 Years | — | — | ||||||||
Subtotal | — | — | ||||||||
KKR Yen Senior Notes: (2)(3)(5) | ||||||||||
Under 1 Year | — | — | ||||||||
1-5 Years | — | — | ||||||||
After 5 Years | — | — | ||||||||
Subtotal | — | — | ||||||||
KKR Euro Senior Notes: (2)(3)(5) | ||||||||||
Under 1 Year | — | — | ||||||||
1-5 Years | — | — | ||||||||
After 5 Years | — | — | ||||||||
Subtotal | — | — | ||||||||
KKR Subordinated Notes: (2)(3)(6) | ||||||||||
Under 1 Year | — | — | ||||||||
1-5 Years | — | — | ||||||||
After 5 Years | — | — | ||||||||
Subtotal | — | — | ||||||||
KFN USD Senior Notes: (2)(3)(4) | ||||||||||
Under 1 Year | — | — | ||||||||
1-5 Years | — | — | ||||||||
After 5 Years | — | — | ||||||||
Subtotal | — | — | ||||||||
Total KKR & KFN Notes | ||||||||||
Other Debt Obligations: (1)(2)(7) | ||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | ||
(1)Financing available is reduced by the dollar amounts specified in any issued letters of credit.
(2)Carrying value includes: (i) unamortized note discount (net of premium), as applicable and (ii) unamortized debt issuance costs, as applicable. Financing
costs related to the issuance of the notes have been deducted from the note liability and are being amortized over the life of the notes.
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(3)Interest rates of the notes are fixed and the weighted average interest rates are the following:
September 30, 2026 | December 31, 2025 | |
KKR USD Senior Notes | ||
KKR Yen Senior Notes | ||
KKR Euro Senior Notes | ||
KKR Subordinated Notes | ||
KFN USD Senior Notes |
(4)These debt obligations are classified as Level III within the fair value hierarchy and valued using the same valuation methodologies as KKR's Level III credit
investments.
(5)The notes are classified as Level II within the fair value hierarchy and fair value is determined by third party broker quotes.
(6)The notes are classified as Level I within the fair value hierarchy and fair value is determined by quoted prices in active markets since the debt is publicly
listed.
(7)As of September 30, 2026, and December 31, 2025, the principal value, carrying value and fair value reflects the elimination for the portion of applicable
debt obligations that are held by Global Atlantic.
Fourth Amended & Restated Credit Agreement
On July 30, 2026, KKR Group Partnership L.P. and Kohlberg Kravis Roberts & Co. L.P. (collectively, the “Borrowers”),
entered into a Fourth Amended and Restated Credit Agreement (the “Corporate Credit Agreement”) by and among the
Borrowers, the guarantors from time to time party thereto (together with the Borrowers, the “Loan Parties”), the lending
institutions from time to time party thereto, and HSBC Bank USA, National Association, as administrative agent, which amends
and restates in its entirety the Third Amended and Restated Credit Agreement, dated as of July 3, 2024, by and among the
Loan Parties, the lending institutions from time to time party thereto and the administrative agent.
The Corporate Credit Agreement provides the Borrowers with a senior unsecured multicurrency revolving credit facility
(the “Corporate Credit Facility”) in an aggregate principal amount of $3.0 billion, with the option to request an increase in the
facility amount of up to an additional $750 million, subject to certain conditions, including the consent of the lenders. The
Corporate Credit Facility is a five-year facility, scheduled to mature on July 30, 2031, with the Borrowers’ option to request an
extension of the maturity date, subject to the consent of the lenders, and the Borrowers may prepay, terminate or reduce the
commitments under the Corporate Credit Facility at any time without penalty. Borrowings under the Corporate Credit Facility
are available for general corporate purposes and available in U.S. dollars and other currencies. Interest on borrowings in U.S.
dollars under the Corporate Credit Facility will be based on either term Secured Overnight Financing Rate (SOFR) or alternate
base rate, with the applicable margin per annum based on a corporate ratings-based grid ranging from 57.5 basis points to
rate per annum also based on a corporate ratings-based grid ranging from 5 basis points to 12.25 basis points. Borrowings
under the Corporate Credit Facility are guaranteed by KKR & Co. Inc.
Certain other terms of the Corporate Credit Agreement include: (i) financial covenants that require KKR to maintain a
maximum leverage ratio (excluding the indebtedness of The Global Atlantic Financial Group LLC and its subsidiaries) of not
greater than 4.0 x covenant EBITDA and to maintain at least $195 billion in fee paying assets under management; (ii)
customary affirmative covenants and certain negative covenants, including a limitation on the ability of the Loan Parties to,
among other things, pledge the stock of their subsidiaries; and (iii) customary events of default, upon the occurrence of which
the lenders will have the ability to accelerate all outstanding loans thereunder and terminate the commitments.
KCM 364-Day Revolving Credit Facility
On March 27, 2026, KKR Capital Markets Holdings L.P. and certain other capital markets subsidiaries (the “KCM
Borrowers”) replaced their existing 364-day revolving credit agreement with a new 364-day revolving credit agreement (the
“KCM 364-Day Revolving Credit Facility”) with Mizuho Bank, Ltd., as administrative agent, and one or more lenders party
thereto. The KCM 364-Day Revolving Credit Facility replaced the prior 364-day revolving credit facility, dated as of April 2,
2025, between the KCM Borrowers and the administrative agent, and one or more lenders party to the prior facility, which
was terminated according to its terms on March 27, 2026. The KCM 364-Day Revolving Credit Facility provides for revolving
borrowings up to $750 million, expires on March 26, 2027, and ranks pari passu with the existing $750 million 5-year revolving
credit facility provided by them for KKR's capital markets business (the “KCM Five-Year Revolving Credit Facility”). If a
borrowing is made under the KCM 364-Day Revolving Credit Agreement, the interest rate will vary depending on the type of
drawdown requested. As with the KCM Five-Year Revolving Credit Facility, borrowings under the KCM 364-Day Revolving
Credit Facility may only be used for KKR’s capital markets business. This facility’s only obligors are entities involved in KKR’s
capital markets business, and its liabilities are non-recourse to other parts of KKR’s business. The KCM 364-Day Revolving
Credit Facility contains customary representations and warranties, events of default, and affirmative and negative covenants,
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including a financial covenant providing for a maximum debt to equity ratio for the KCM Borrowers, which are substantially
similar to those found in the KCM Five-Year Revolving Credit Facility. The KCM Borrowers' obligations under the KCM 364-Day
Revolving Credit Facility are secured by certain assets of the KCM Borrowers, including a pledge of equity interests of certain
subsidiaries of the KCM Borrowers.
Other Asset Management and Strategic Holdings Debt Obligations
Certain of KKR's consolidated investment funds have entered into financing arrangements with financial institutions,
generally to provide liquidity to such investment funds. These financing arrangements are generally not direct obligations of
the general partners of KKR's investment funds (beyond KKR's capital interest) or its management companies. Such
borrowings have varying maturities and bear interest at floating rates. Borrowings are generally secured by the investment
purchased with the proceeds of the borrowing and/or the uncalled capital commitment of each respective fund. When an
investment vehicle borrows, the proceeds are available only for use by that investment vehicle and are not available for the
benefit of other investment vehicles or KKR. Collateral within each investment vehicle is also available only against borrowings
by that investment vehicle and not against the borrowings of other investment vehicles or KKR.
In certain other cases, investments and other assets held directly by majority-owned consolidated levered investment
vehicles and other entities have been funded with borrowings that are collateralized by the investments and assets they own.
These borrowings are non-recourse to KKR beyond the investments or assets serving as collateral or the capital that KKR has
committed to fund such investment vehicles. Such borrowings have varying maturities and generally bear interest at fixed
rates.
In addition, consolidated CFEs issue debt securities to third-party investors which are collateralized by assets held by the
CFE. Debt securities issued by CFEs are supported solely by the assets held at the CFEs and are not collateralized by assets of
any other KKR entity. CFEs also may have warehouse facilities with banks to provide liquidity to the CFE. The CFE's debt
obligations are non-recourse to KKR beyond the assets of the CFE.
Financing Available | Principal | Carrying Value(1) | Fair Value | Weighted Average Interest Rate | Weighted Average Remaining Maturity in Years | ||||||
Financing Facilities of Consolidated Funds and Other | $ | $ | $ | $ | |||||||
Debt Obligations of Consolidated CFEs | (2) | ||||||||||
$ | $ | $ | $ |
(1)Includes borrowings collateralized by fund investments, fund co-investments, and other assets held by levered investment vehicles of $4.2 billion.
(2)The senior notes of the consolidated CFEs had a weighted average interest rate of 4.86 %. The subordinated notes of the consolidated CLOs do not have
contractual interest rates but instead receive a pro rata amount of the net distributions from the excess cash flows of the respective CLO vehicle.
Accordingly, weighted average borrowing rates for the subordinated notes are based on cash distributions during the period, if any.
Debt obligations of consolidated CLOs are collateralized by assets held by each respective CLO vehicle and assets of one
CLO vehicle may not be used to satisfy the liabilities of another. As of September 30, 2026, the fair value of the consolidated
CLO assets was $33.8 billion. This collateral consisted of Cash and Cash Equivalents, Investments, and Other Assets.
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September 30, 2026 | December 31, 2025 | |||||||||
By remaining maturity at period end date | Financing Available | Principal | Carrying Value(1) | Fair Value(2) | Financing Available | Principal | Carrying Value(1) | Fair Value(2) | ||
Revolving Credit Facilities: | ||||||||||
Under 1 Year | $ | $ | $ | $ | $ | $ | $ | $ | ||
1-5 Years | ||||||||||
After 5 Years | ||||||||||
Subtotal | ||||||||||
Senior Notes: (4) | ||||||||||
Under 1 Year | — | — | ||||||||
1-5 Years | — | — | ||||||||
After 5 Years | — | — | ||||||||
Subtotal | — | — | ||||||||
Subordinated Notes: (4) | ||||||||||
Under 1 Year | — | — | ||||||||
1-5 Years | — | — | ||||||||
After 5 Years | — | — | ||||||||
Subtotal | — | — | ||||||||
Debt Obligations of Consolidated Special Purpose Vehicles(3) | ||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | ||
(1)Carrying value of debt as of September 30, 2026, and December 31, 2025, includes purchase accounting adjustments of $21.6 million and $26.9 million,
respectively, net debt issuance costs of $(55.3 ) million and $(54.2 ) million, respectively, and cumulative fair value loss on hedged debt obligations of
$(269.0 ) million and $(123.5 ) million, respectively. The amortization of the purchase accounting adjustments was $1.8
ended September 30, 2026 and 2025, and $5.3
(2)These debt obligations are classified as Level III within the fair value hierarchy and valued using the same valuation methodologies as KKR's Level III credit
investments.
(3)These debt obligations primarily include debt obligations of consolidated co-investment vehicles that are not guaranteed by KKR or Global Atlantic.
(4)Interest rates of the notes are fixed and the weighted average interest rates are the following:
September 30, 2026 | December 31, 2025 | |
Senior Notes | ||
Subordinated Notes |
Global Atlantic Insurance Operating Company Revolving Credit Facility
On January 16, 2026, Global Atlantic Limited (Delaware) and GA FinCo (together, the “GA Guarantors”) and certain direct
and indirect insurance company subsidiaries of the Guarantors (such insurance company subsidiaries, the “GA OpCo
Borrowers”, and together with the Guarantors, the “GA OpCo Credit Parties”) entered into a credit agreement (the “GA OpCo
Credit Agreement”) with Wells Fargo Bank, N.A., as administrative agent (the “GA Administrative Agent”) and other lenders
from time to time party thereto.
The GA OpCo Credit Agreement provides the GA OpCo Borrowers with an unsecured revolving credit facility (the “GA
OpCo Credit Facility”) in an aggregate principal amount of $3.0 billion as of January 16, 2026, with the option to request an
increase in the facility amount of up to an additional $500 million, for an aggregate principal amount of $3.5 billion, subject to
certain conditions, including obtaining new or increased commitments from new or existing lenders. The GA OpCo Credit
Facility is a 364-day facility, scheduled to mature on January 15, 2027, which may from time to time be extended for
additional 364-day periods at the GA OpCo Borrowers’ option, subject to the consent of the applicable lenders, and the GA
OpCo Borrowers may prepay, terminate or reduce the commitments under the GA OpCo Credit Facility at any time without
penalty. Borrowings under the GA OpCo Credit Facility are available for general corporate purposes including working capital.
Interest on borrowings under the GA OpCo Credit Facility will be based on either (i) the term Secured Overnight Financing
Rate (SOFR), plus a margin based on a corporate ratings-based grid ranging from 1.10 % to 1.375 %, or (ii) an alternate base
rate, plus a margin based on a corporate ratings-based grid ranging from 0.10 % to 0.375 %.
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Certain other terms of the GA OpCo Credit Agreement include: (i) financial covenants that require GALD and certain of its
consolidated subsidiaries not to exceed a specified debt-to-total-capitalization ratio and to satisfy a net worth threshold; (ii)
customary representations, affirmative covenants and certain negative covenants; and (iii) customary events of default, upon
the occurrence of which the lenders will have the ability to accelerate all outstanding loans under the GA OpCo Credit Facility
and terminate the commitments.
Debt Covenants
Borrowings of KKR (including Global Atlantic) contain various debt covenants. These covenants do not, in management's
opinion, materially restrict KKR's operating business or investment strategies as of September 30, 2026. KKR (including Global
Atlantic) was in compliance with such debt covenants in all material respects as of September 30, 2026.
17. POLICY LIABILITIES
consolidated statements of financial condition as of September 30, 2026, and December 31, 2025:
September 30, 2026 | December 31, 2025 | ||
Policyholders’ Account Balances | $ | $ | |
Liability for Future Policy Benefits | |||
Additional Liability for Annuitization, Death, or Other Insurance Benefits | |||
Market Risk Benefit Liability | |||
Other Policy-Related Liabilities(1) | |||
Total Policy Liabilities | $ | $ |
(1)Other policy-related liabilities as of September 30, 2026, and December 31, 2025 primarily consist of embedded derivatives associated with
contractholder deposit funds ($8.5 billion and $7.8 billion, respectively), cost-of-reinsurance liabilities ($3.0 billion and $3.1 billion, respectively), policy
liabilities accounted under a fair value option ($1.0 billion and $1.1 billion, respectively), negative VOBA ($625.3 million and $678.4 million, respectively)
and outstanding claims ($341.0 million and $355.8 million, respectively).
Policyholders’ Account Balances
and 2025, and the policyholders’ account balances weighted average interest rates, net amount at risk, and cash surrender
value as of those dates:
Nine Months Ended September 30, 2026 | |||||||||||
Fixed Rate Annuities | Fixed Indexed Annuities | Interest Sensitive Life | Funding Agreements | Other(1) | Total | ||||||
Balance as of Beginning of Period | $ | $ | $ | $ | $ | $ | |||||
Issuances and Premiums Received | |||||||||||
Benefit Payments, Surrenders, and Withdrawals | ( | ( | ( | ( | ( | ( | |||||
Interest(2) | |||||||||||
Other Activity(3) | ( | ( | ( | ( | |||||||
Balance as of End of Period | $ | $ | $ | $ | $ | $ | |||||
Less: Reinsurance Recoverable | ( | ( | ( | ( | ( | ( | |||||
Balance as of End of Period, Net of Reinsurance Recoverable | $ | $ | $ | $ | $ | $ | |||||
Average Interest Rate | |||||||||||
Net Amount at Risk, Gross of Reinsurance(4) | $ | $ | $ | $ | $ | $ | |||||
Cash Surrender Value(5) | $ | $ | $ | $ | $ | $ | |||||
(1)“Other” consists of activity related to payout annuities without life contingencies, preneed, variable annuities, and life products.
(2)Interest includes interest credited to policyholders’ account values, and interest accreted in other components of the policyholder account balance,
including investment-type contract values, host amounts for contractholder deposits with embedded derivatives, funding agreements, and other
associated reserves.
(3) “Other activity” includes policy charges, fees and commissions, transfers, assumption changes, fair value changes, and the impact of hedge fair value
adjustments.
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(4)Net amount at risk represents the difference between the face value of the insurance policy and the reserve accumulated under that same policy.
(5)Cash surrender values are reported net of any applicable surrender charges, net of reinsurance.
Nine Months Ended September 30, 2025 | |||||||||||
Fixed Rate Annuities | Fixed Indexed Annuities | Interest Sensitive Life | Funding Agreements | Other(1) | Total | ||||||
Balance as of Beginning of Period | $ | $ | $ | $ | $ | $ | |||||
Issuances and Premiums Received | |||||||||||
Benefit Payments, Surrenders, and Withdrawals | ( | ( | ( | ( | ( | ( | |||||
Interest(2) | |||||||||||
Other Activity(3) | ( | ( | ( | ||||||||
Balance as of End of Period | $ | $ | $ | $ | $ | $ | |||||
Less: Reinsurance Recoverable | ( | ( | ( | ( | ( | ||||||
Balance as of End of Period, Net of Reinsurance Recoverable | $ | $ | $ | $ | $ | $ | |||||
Average Interest Rate | |||||||||||
Net Amount at Risk, Gross of Reinsurance(4) | $ | $ | $ | $ | $ | $ | |||||
Cash Surrender Value(5) | $ | $ | $ | $ | $ | $ | |||||
(1)“Other” consists of activity related to payout annuities without life contingencies, preneed, variable annuities, and life products.
(2)Interest includes interest credited to policyholders’ account values, and interest accreted in other components of the policyholder account balance,
including investment-type contract values, host amounts for contractholder deposits with embedded derivatives, funding agreements, and other
associated reserves.
(3)“Other activity” includes policy charges, fees and commissions, transfers, assumption changes, fair value changes, and the impact of hedge fair value
adjustments.
(4)Net amount at risk represents the difference between the face value of the insurance policy and the reserve accumulated under that same policy.
(5)Cash surrender values are reported net of any applicable surrender charges, net of reinsurance.
differences, in basis points, between rates being credited to policyholders and the respective guaranteed minimums. Account
values, as disclosed below, differ from policyholder account balances as they exclude balances associated with index credits,
contractholder deposit fund host balances, funding agreements, and other associated reserves. In addition, policyholder
account balances include discounts and premiums on assumed business which are not reflected in account values.
As of September 30, 2026 | |||||||||||
Account Values with Adjustable Crediting Rates Subject to Guaranteed Minimums: | |||||||||||
Range of Guaranteed Minimum Crediting Rates: | At Guaranteed Minimum | 1 - 49 Above Guaranteed Minimum | 50 - 99 Above Guaranteed Minimum | 100 - 150 Above Guaranteed Minimum | Greater Than 150 bps Above Guaranteed Minimum | Total | |||||
Less Than | $ | $ | $ | $ | $ | $ | |||||
Greater Than | |||||||||||
Total | $ | $ | $ | $ | $ | $ | |||||
Percentage of Total | |||||||||||
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As of December 31, 2025 | |||||||||||
Account Values with Adjustable Crediting Rates Subject to Guaranteed Minimums: | |||||||||||
Range of Guaranteed Minimum Crediting Rates: | At Guaranteed Minimum | 1 - 49 Above Guaranteed Minimum | 50 - 99 Above Guaranteed Minimum | 100 - 150 Above Guaranteed Minimum | Greater Than 150 bps Above Guaranteed Minimum | Total | |||||
Less Than | $ | $ | $ | $ | $ | $ | |||||
Greater Than | |||||||||||
Total | $ | $ | $ | $ | $ | $ | |||||
Percentage of Total | |||||||||||
Liability for Future Policy Benefits
limited-payment contracts for the nine months ended September 30, 2026 and 2025:
Nine Months Ended | ||||||||||||
September 30, 2026 | September 30, 2025 | |||||||||||
Payout Annuities(1) | Other(2) | Total | Payout Annuities(1) | Other(2) | Total | |||||||
Present Value of Expected Net Premiums | ||||||||||||
Balance as of Beginning of Period | $ | $( | $( | $ | $( | $( | ||||||
Balance at Original Discount Rate | $ | $( | $( | $ | $( | $( | ||||||
Effect of Changes in Cash Flow Assumptions | ||||||||||||
Effect of Actual Variances from Expected Experience | ( | ( | ||||||||||
Adjusted Beginning of Period Balance | ( | ( | ( | ( | ||||||||
Issuances | ( | ( | ( | ( | ||||||||
Interest | ( | ( | ( | ( | ||||||||
Net Premiums Collected | ||||||||||||
Ending Balance at Original Discount Rate | ( | ( | ( | ( | ||||||||
Effect of Changes in Discount Rate Assumptions | ||||||||||||
Balance as of End of Period | $ | $( | $( | $ | $( | $( | ||||||
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Nine Months Ended | ||||||||||||
September 30, 2026 | September 30, 2025 | |||||||||||
Payout Annuities(1) | Other(2) | Total | Payout Annuities(1) | Other(2) | Total | |||||||
Present Value of Expected Future Policy Benefits | ||||||||||||
Balance as of Beginning of Period | $ | $ | $ | $ | $ | $ | ||||||
Balance at Original Discount Rate | $ | $ | $ | $ | $ | $ | ||||||
Effect of Changes in Cash Flow Assumptions | ( | ( | ( | ( | ||||||||
Effect of Actual Variances from Expected Experience | ( | ( | ||||||||||
Adjusted Beginning of Period Balance | ||||||||||||
Issuances | ||||||||||||
Interest | ||||||||||||
Benefit Payments | ( | ( | ( | ( | ( | ( | ||||||
Ending Balance at Original Discount Rate | ||||||||||||
Effect of Changes in Discount Rate Assumptions | ( | ( | ( | ( | ( | |||||||
Balance as of End of Period | ||||||||||||
Net Liability for Future Policy Benefits | ||||||||||||
Less: Reinsurance Recoverable(3) | ( | ( | ( | ( | ( | ( | ||||||
Net Liability for Future Policy Benefits, Net of Reinsurance Recoverables | $ | $ | $ | $ | $ | $ | ||||||
(1)Payout annuities generally only have a single premium received at contract inception. As a result, the liability for future policy benefits generally would
not reflect a present value for future premiums for payout annuities.
(2)“Other” consists of activity related to long-term care insurance, variable annuities, traditional life insurance, preneed insurance, and fixed-rate annuity
products. Mortality and morbidity risks associated with the long-term care insurance have been ceded to a third-party reinsurer.
(3)Reinsurance recoverables associated with the liability for future policy benefits is net of the effect of changes in discount rate assumptions of
$(888.6 ) million and $444.0 million for the nine months ended September 30, 2026 and 2025, respectively.
The following table summarizes the amount of gross premiums related to traditional and limited-payment contracts
recognized in the consolidated statements of operations for the nine months ended September 30, 2026 and 2025:
Gross Premiums | |||
Nine Months Ended September 30, | |||
2026 | 2025 | ||
Payout Annuities | $ | $ | |
Other | |||
Total Products | $ | $ | |
The following table reflects the weighted-average duration and weighted-average interest rates of the future policy
benefit liability as of September 30, 2026, and December 31, 2025:
As of September 30, 2026 | |||
Payout Annuities | Other | ||
Weighted-Average Interest Rates, Original Discount Rate | |||
Weighted-Average Interest Rates, Current Discount Rate | |||
Weighted-Average Liability Duration (Years, Current Rates) | |||
As of December 31, 2025 | |||
Payout Annuities | Other | ||
Weighted-Average Interest Rates, Original Discount Rate | |||
Weighted-Average Interest Rates, Current Discount Rate | |||
Weighted-Average Liability Duration (Years, Current Rates) | |||
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The following reflects the undiscounted ending balance of expected future gross premiums and expected future benefits
and payments for traditional and limited-payment contracts, as of September 30, 2026, and December 31, 2025:
As of September 30, 2026 | ||||
Payout Annuities | Other | |||
Expected Future Benefit Payments, Undiscounted | $ | $ | ||
Expected Future Benefit Payments, Discounted (Original Discount Rate) | ||||
Expected Future Benefit Payments, Discounted (Current Discount Rate) | ||||
Expected Future Gross Premiums, Undiscounted | ||||
Expected Future Gross Premiums, Discounted (Original Discount Rate) | ||||
Expected Future Gross Premiums, Discounted (Current Discount Rate) | ||||
As of December 31, 2025 | ||||
Payout Annuities | Other | |||
Expected Future Benefit Payments, Undiscounted | $ | $ | ||
Expected Future Benefit Payments, Discounted (Original Discount Rate) | ||||
Expected Future Benefit Payments, Discounted (Current Discount Rate) | ||||
Expected Future Gross Premiums, Undiscounted | ||||
Expected Future Gross Premiums, Discounted (Original Discount Rate) | ||||
Expected Future Gross Premiums, Discounted (Current Discount Rate) | ||||
For the nine months ended September 30, 2026 and 2025, Global Atlantic recognized $1.3 billion and $(494.7 ) million in
other comprehensive income (loss) (gross of the impact of reinsurance), respectively, due to changes in the future policy
benefits estimate from updating discount rates. During the nine months ended September 30, 2026 and 2025, there were no
changes to the methods used to determine the discount rates.
Significant Inputs, Judgments, and Assumptions used in Measuring Future Policyholder Benefits
Significant policyholder behavior and other assumption inputs to the calculation of the liability for future policy benefits
include discount rates, mortality and, for life insurance, lapse rates. Global Atlantic reviews its assumptions at least annually,
and more frequently if necessary. Accordingly, as part of the annual assumption review, assumptions were revised to reflect
lower expected mortality on certain preneed products and higher expected surrenders on certain whole life products, offset
in part by higher expected mortality on pension risk transfer products and certain immediate annuities, which resulted in a
$6.9 million increase to net income before taxes. During the nine months ended September 30, 2025 assumptions were
revised for an increase in expected mortality on certain payout annuities and pension risk transfer products, which resulted in
a $33.7 million increase to net income before taxes.
Additional Liability for Annuitization, Death, or Other Insurance Benefits
nine months ended September 30, 2026 and 2025:
Nine Months Ended September 30, | |||
2026 | 2025 | ||
Balance as of Beginning of Period | $ | $ | |
Effect of Changes in Cash Flow Assumptions | ( | ||
Effect of Changes in Experience | ( | ( | |
Adjusted Balance as of Beginning of Period | |||
Issuances | |||
Assessments | |||
Benefits Paid | ( | ( | |
Interest | |||
Balance as of End of Period | |||
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Less: Impact of Unrealized Investment Gains and Losses | |||
Less: Reinsurance Recoverable, End of Period | |||
Balance, End of Period, Net of Reinsurance Recoverable and Impact of Unrealized Investment Gains and Losses | $ | $ |
The additional liability for annuitization, death, or other insurance benefits relates primarily to secondary guarantees on
certain interest-sensitive life products, and preneed insurance.
other insurance benefits in the consolidated statements of operations for the nine months ended September 30, 2026 and
2025:
Gross Assessments | |||
Nine Months Ended September 30, | |||
2026 | 2025 | ||
Total Amount Recognized Within Revenue in the Consolidated Statements of Operations | $ | $ | |
The following reflects the weighted average duration and weighted average interest rate for the additional liability for
annuitization, death, or other insurance benefits as of September 30, 2026, and December 31, 2025:
As of | |||
September 30, 2026 | December 31, 2025 | ||
Weighted-Average Interest, Current Discount Rate | |||
Weighted-Average Liability Duration (Years) | |||
Significant Inputs, Judgments, and Assumptions used in Measuring the Additional Liabilities for Annuitization, Death, or Other
Insurance Benefits
Significant policyholder behavior assumption inputs to the calculation of the additional liability for annuitization, death,
or other insurance benefits include mortality, lapse rates, investment yields and interest margin. Global Atlantic reviews its
assumptions at least annually, and more frequently if necessary. Accordingly, as part of the annual assumption review,
assumptions for net lower mortality were updated, which resulted in a $11.6 million increase to net income before taxes.
During the nine months ended September 30, 2025, assumptions for higher mortality, lapse rates, and investment yields were
Market Risk Benefits
Nine Months Ended | ||||||||||||
September 30, 2026 | September 30, 2025 | |||||||||||
Fixed-Indexed Annuity | Variable- and Other Annuities | Total | Fixed-Indexed Annuity | Variable- and Other Annuities | Total | |||||||
Balance as of Beginning of Period | $ | $ | $ | $ | $ | $ | ||||||
Balance as of Beginning of Period, Before Impact of Changes in Instrument-Specific Credit Risk | $ | $ | $ | $ | $ | $ | ||||||
Issuances | ( | |||||||||||
Interest | ||||||||||||
Attributed Fees Collected | ||||||||||||
Benefit Payments | ( | ( | ( | ( | ( | ( | ||||||
Effect of Changes in Interest Rates | ( | ( | ( | |||||||||
Effect of Changes in Equity Markets | ( | ( | ( | ( | ( | ( | ||||||
Effect of Actual Experience Different from Assumptions | ( | ( | ||||||||||
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Nine Months Ended | ||||||||||||
September 30, 2026 | September 30, 2025 | |||||||||||
Fixed-Indexed Annuity | Variable- and Other Annuities | Total | Fixed-Indexed Annuity | Variable- and Other Annuities | Total | |||||||
Effect of Changes in Other Future Expected Assumptions | ( | |||||||||||
Balance as of End of Period Before Impact of Changes in Instrument-Specific Credit Risk | ||||||||||||
Effect of Changes in Instrument-Specific Credit Risk | ||||||||||||
Balance as of End of Period | ||||||||||||
Less: Reinsurance Recoverable as of the End of the Period | ( | ( | ( | ( | ( | |||||||
Balance as of End of Period, Net of Reinsurance Recoverable | $ | $ | $ | $ | $ | $ | ||||||
Net Amount at Risk | $ | $ | $ | $ | $ | $ | ||||||
Weighted-average Attained Age of Contract holders (Years) | ||||||||||||
The following reflects the reconciliation of the market risk benefits reflected in the preceding table to the amounts
reported in an asset and liability position, respectively, in the consolidated statements of financial condition as of
September 30, 2026, and December 31, 2025:
As of September 30, 2026 | As of December 31, 2025 | |||||||||||
Asset | Liability | Net | Asset | Liability | Net | |||||||
Fixed-Indexed Annuities | $ | $ | $( | $ | $ | $( | ||||||
Variable- and Other Annuities | ( | ( | ||||||||||
Total | $ | $ | $( | $ | $ | $( | ||||||
Significant Inputs, Judgments, and Assumptions Used in Measuring Market Risk Benefits
Significant policyholder behavior and other assumption inputs to the calculation of the market risk benefits include
interest rates, instrument-specific credit risk, mortality rates, surrender rates, and utilization rates. Global Atlantic reviews its
assumptions at least annually, and more frequently if necessary. Accordingly, as part of the annual assumption review,
assumptions were updated for lower expected mortality on retail fixed-indexed annuities, and lower expected surrenders on
variable annuities, offset in part by a higher dynamic lapse assumption on fixed-indexed annuities, which resulted in a $42.1
million decrease to net income before taxes. During the nine months ended September 30, 2025, assumptions were updated
for higher expected morbidity for certain long-term care related benefit riders, offset in part by an increase in expected fixed-
indexed annuity activations, which resulted in a $4.8 million decrease to net income before taxes.
Separate Account Liabilities
Separate account assets and liabilities consist of investment accounts established and maintained by Global Atlantic for
certain variable annuity and interest-sensitive life insurance contracts. Some of these contracts include minimum guarantees
such as GMDBs and GMWBs that guarantee a minimum payment to the policyholder.
The assets that support these variable annuity and interest-sensitive life insurance contracts are measured at fair value
and are reported as separate account assets on the consolidated statements of financial condition. An equivalent amount is
reported as separate account liabilities. Market risk benefit assets and liabilities for minimum guarantees are valued and
presented separately from separate account assets and separate account liabilities. For more information on market risk
benefits see “—Market risk benefits” in this footnote. Policy charges assessed against the policyholders for mortality,
administration and other services are included in “Policy fees” in the consolidated statements of operations.
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Nine Months Ended | ||||||||||||
September 30, 2026 | September 30, 2025 | |||||||||||
Variable Annuities | Interest- Sensitive Life | Total | Variable Annuities | Interest- Sensitive Life | Total | |||||||
Balance as of Beginning of Period | $ | $ | $ | $ | $ | $ | ||||||
Premiums and Deposits | ||||||||||||
Surrenders, Withdrawals and Benefit Payments | ( | ( | ( | ( | ( | ( | ||||||
Investment Performance | ||||||||||||
Other | ( | ( | ( | ( | ( | ( | ||||||
Balance as of End of Period | $ | $ | $ | $ | $ | $ | ||||||
Cash Surrender Value as of End of Period(1) | $ | $ | $ | $ | $ | $ | ||||||
(1)Cash surrender value attributed to the separate accounts does not reflect the impact of surrender charges; surrender charges are attributed to
policyholder account balances recorded in the general account.
accounts:
September 30, 2026 | December 31, 2025 | ||
Asset Type: | |||
Managed Volatility Equity/Fixed Income Blended Fund | $ | $ | |
Equity | |||
Fixed Income | |||
Money Market | |||
Alternative | |||
Total Assets Supporting Separate Account Liabilities | $ | $ |
18. INCOME TAXES
KKR & Co. Inc. is a domestic corporation for U.S. federal income tax purposes and is subject to U.S. federal, state and local
income taxes at the corporate level on its share of taxable income. In addition, KKR Group Partnership and certain of its
subsidiaries operate as partnerships for U.S. federal tax purposes but as taxable entities for certain state, local or non-U.S. tax
purposes. Moreover, certain corporate subsidiaries of KKR, including certain subsidiaries of Global Atlantic, are domestic
corporations for U.S. federal income tax purposes and are subject to U.S. federal, state, and local income taxes.
For the three months ended September 30, 2026 and 2025, the effective tax rates for KKR & Co. Inc. were 18.0 % and
ended September 30, 2026 and 2025 primarily due to the portion of the reported net income (loss) before taxes not being
attributable to KKR but rather being attributable to (i) third-party limited partner interests in consolidated investment funds
which are not subject to taxes that are payable by KKR & Co. Inc. and its subsidiaries and (ii) exchangeable securities
representing ownership interests in KKR Group Partnership until they are exchanged for common stock of KKR & Co. Inc.
Each reporting period, KKR assesses available positive and negative evidence to estimate whether sufficient future
taxable income will be generated to realize existing deferred tax assets. There were no changes in the assessment of the
realizability of its deferred tax assets during the nine months ended September 30, 2026. It is reasonably possible that
prolonged market volatility may negatively affect Global Atlantic's operating results and its ability to realize its tax planning
strategies and may warrant the establishment of a valuation allowance on a portion of its deferred tax assets within the next
12 months.
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19. EQUITY-BASED COMPENSATION
ended September 30, 2026 and 2025, respectively:
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Service-Vesting | |||||||
Market-Condition | |||||||
Performance-Condition | |||||||
Total (1) | $ | ||||||
(1)For the three and nine months ended September 30, 2026, KKR recorded acquisition-related stock consideration of $44.6 million and $82.8 million,
respectively.
Under KKR's equity incentive plan, KKR is permitted to grant equity awards representing ownership interests in
KKR & Co. Inc. common stock. On March 29, 2019, the Amended and Restated KKR & Co. Inc. 2019 Equity Incentive Plan (the
“2019 Equity Incentive Plan”) became effective. Following the effectiveness of the 2019 Equity Incentive Plan, KKR no longer
makes further grants under the Amended and Restated KKR & Co. Inc. 2010 Equity Incentive Plan, and the 2019 Equity
Incentive Plan became KKR's only plan for providing new equity awards by KKR & Co. Inc. The total number of equity awards
representing shares of common stock that may be issued under the 2019 Equity Incentive Plan is equivalent to 15 % of the
aggregate number of the shares of common stock and KKR Group Partnership Units (excluding KKR Group Partnership Units
held by KKR & Co. Inc. or its wholly-owned subsidiaries), subject to annual adjustment. As of September 30, 2026, 27,896,645
shares may be issued under the 2019 Equity Incentive Plan. KKR has also issued equity grants in the form of restricted
holdings units through KKR Holdings III L.P. (“KKR Holdings III”), which are not issued under the 2019 Equity Incentive Plan and
are currently held by certain current and former KKR employees. Equity grants generally consist of (i) restricted stock units
that convert into shares of common stock of KKR & Co. Inc. (or cash equivalent) upon vesting and (ii) restricted holdings units
that are exchangeable into shares of common stock of KKR & Co. Inc. upon vesting and certain other conditions, including
those described below.
In April 2026, KKR granted equity awards under the 2019 Equity Incentive Plan representing approximately 29 million
shares of common stock, which awards are subject to market price and cliff service vesting conditions based on average prices
of common stock ranging from $150 to $250 and the recipient’s continued service through May 1, 2031, subject to certain
exceptions (including if the market price conditions are satisfied between May 1, 2031, and May 1, 2033, with continued
service through such date). Additionally, in April 2026, KKR granted equity awards under the 2019 Equity Incentive Plan
representing approximately 2 million shares of common stock, which are subject to time-based vesting conditions based on
the recipient’s continued service for five years , subject to certain exceptions. These grants also have transfer restrictions
ranging from 1 to 5 years following vesting.
Equity Granted In Connection with Arctos Acquisition
In connection with the Arctos Acquisition (as defined in Note 25 “Acquisition” below), KKR granted equity to certain
sellers of Arctos that is subject to continued service following the closing of the acquisition. Because these equity grants
require post-combination service they are accounted for as post-combination compensation expense. These equity grants
included restricted holdings units issued by KKR Holdings III and restricted stock units. The restricted stock units were issued
under the 2019 Equity Incentive Plan.
KKR also committed to grant equity in the form of restricted holdings units under the 2019 Equity Incentive Plan but has
not yet identified the specific recipients (the “Unallocated Units”). Because a grant date has not been established for these
Unallocated Units, no grant-date fair value has been determined and no compensation expense has yet been recognized. KKR
is required to allocate these Unallocated Units no later than December 31, 2028.
The granted equity and Unallocated Units include 5.6 million Service-Vesting Grants (as defined below) and 1.8 million
Market-Condition Grants (as defined above), respectively. A portion of the Service-Vesting Grants vest each year through
2033, while the Market-Condition Grants vest on December 31, 2030, conditioned on achieving specified KKR stock price
targets ranging from $150 to $225 by, and continued service through, such date, subject to certain extensions with respect to
the continued service condition.
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In addition, KKR has committed to pay up to $150 million in restricted holdings units, subject to both continued service
and the achievement of certain management fee revenue targets measured through December 31, 2028, subject to certain
exceptions. Because these Performance-Condition Grants (as defined above) will be settled in a variable number of KKR
restricted holdings units determined by reference to the price of KKR's common stock at settlement, the units are liability-
classified. The associated liability is measured at fair value and remeasured at each reporting period until settlement, with
changes in fair value recognized in compensation expense over the requisite service period.
Please see additional information on Service-Vesting, Market-Condition and Performance-Condition Grants below.
Service-Vesting Grants
KKR grants restricted stock units and restricted holdings units that are subject to service-based vesting, typically over a
three to five-year period from the date of grant (referred to hereafter as “Service-Vesting Grants”). In certain cases, these
Service-Vesting Grants may have a percentage that vests immediately upon grant, and certain Service-Vesting Grants may
have vesting periods longer than five years . Additionally, some but not all Service-Vesting Grants are subject to transfer
restrictions and/or minimum retained ownership requirements. Generally, the transfer restriction period, if applicable, lasts
for (i) one year with respect to one-half of the grants vesting on any vesting date and (ii) two years with respect to the other
one-half of the grants vesting on such vesting date. While providing services to KKR, some but not all of these grants are also
subject to minimum retained ownership rules requiring the award recipient to continuously hold shares of common stock
equivalents equal to at least 15 % of their cumulatively vested grants that have or had the minimum retained ownership
requirement. Holders of the Service-Vesting Grants do not participate in dividends until such grants have met their vesting
requirements.
Expense associated with the vesting of these Service-Vesting Grants is based on the closing price of KKR & Co. Inc.
common stock on the date of grant, discounted for the lack of participation rights in the expected dividends on unvested
equity grants. Expense is recognized on a straight line basis over the life of the grant and assumes a forfeiture rate of up to 7 %
annually based upon expected turnover by class of recipient.
As of September 30, 2026, there was approximately $1.0 billion of total estimated unrecognized expense related to
unvested Service-Vesting Grants, which is expected to be recognized over the weighted average remaining requisite service
period of 2.7 years.
presented below:
Shares | Weighted Average Grant Date Fair Value | ||
Balance, January 1, 2026 | $ | ||
Granted(1) | |||
Vested | ( | ||
Forfeitures | ( | ||
Balance, September 30, 2026 | $ |
(1)Includes 4.2 million acquisition-related share grants.
Market-Condition Grants
KKR also grants restricted stock units and restricted holdings units that are subject to both a service-based vesting
condition and a market price-based vesting condition. The following is a discussion of the Market-Condition Grants, excluding
the Co-CEO Awards (as defined and discussed below).
The number of Market-Condition Grants (other than the Co-CEO awards described below) that will vest depend upon (i)
the market price of KKR common stock reaching certain price targets that range from $65.00 to $250.00 and (ii) the employee
being employed by KKR on a certain date, which typically ranges from five to six years from the date of grant (with exceptions
for involuntary termination without cause, death and permanent disability). The market price vesting condition is met when
the average closing price of KKR common stock during 20 consecutive trading days meets or exceeds the stock price targets.
Holders of the Market-Condition Grants do not participate in dividends until such units have met both their service-based and
market price-based vesting requirements. Additionally, these grants are subject to additional transfer restrictions and
minimum retained ownership requirements after vesting.
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Due to the existence of the service requirement, the vesting period for these Market-Condition Grants (other than the
Co-CEO awards) is explicit, and as such, compensation expense will be recognized on (i) a straight-line basis over the period
from the date of grant through the date the award recipient is required to be employed by KKR and (ii) assumes a forfeiture
rate of up to 7 % annually based upon expected turnover. The fair value of the awards granted is based on a Monte Carlo
simulation valuation model. In addition, the grant date fair value assumes that holders of the Market-Condition Grants will
not participate in dividends until such units have met all of their vesting requirements.
assumptions used to estimate the grant date fair value of these Market-Condition Grants:
Weighted Average | Range | ||
Grant Date Fair Value | $ | $ | |
Closing KKR share price as of valuation date | $ | $ | |
Risk Free Rate | |||
Volatility | |||
Dividend Yield | |||
Expected Cost of Equity |
As of September 30, 2026, there was approximately $1.3 billion of total estimated unrecognized expense related to these
unvested Market-Condition Grants, which is expected to be recognized over the weighted average remaining requisite service
period of approximately 3.5 years.
presented below:
Shares | Weighted Average Grant Date Fair Value | ||
Balance, January 1, 2026 | $ | ||
Granted(1) | |||
Vested | ( | ||
Forfeitures | ( | ||
Balance, September 30, 2026 | $ |
(1)29.9 million shares granted, which includes 1.4 million acquisition-related grants, have stock price targets that range from $150.00 to $250.00 .
As of September 30, 2026, 18 million of these Market-Condition Grants have met their market price-based vesting
condition. These Market-Condition Grants remain unvested until their service conditions (as described above) are satisfied.
Performance-Condition Grants
KKR also grants restricted stock units and restricted holdings units subject to both performance and service-based vesting
conditions. The performance-based vesting conditions are primarily based on the achievement of certain business and
operating targets. Compensation expense is recognized over the performance period based upon the probable outcome of
the performance condition. The Performance-Condition Grants are liability-classified since the number of shares that may vest
is variable, and therefore, the fair value of these grants is remeasured each reporting period. As of September 30, 2026, none
of the performance-based conditions have been met.
As of September 30, 2026, there was approximately $170.0 million of total estimated unrecognized expense related to
these unvested Performance-Condition Grants, which is expected to be recognized over the weighted average remaining
requisite service period of approximately 4.3 years. Additionally, these grants are subject to additional transfer restrictions
and minimum retained ownership requirements after vesting.
Co-CEO Awards
On December 9, 2021, the Board of Directors approved grants of 7.5 million restricted holdings units to each of KKR’s Co-
Chief Executive Officers that are subject to both a service-based vesting condition and a market price-based vesting condition
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(referred to hereafter as “Co-CEO Awards”). For both Co-Chief Executive Officers, 20
vest at each of the following KKR common stock price targets: $95.80 , $105.80 , $115.80 , $125.80 and $135.80 . The market
price-based vesting condition is met when the average closing price of KKR common stock during 20 consecutive trading days
meets or exceeds the stock price targets. In addition to the market price-based vesting conditions, in order for the award to
vest, the Co-Chief Executive Officer is required to be employed by KKR on December 31, 2026 (with exceptions for involuntary
termination without cause, death and permanent disability).
These awards will be automatically canceled and forfeited upon the earlier of a Co-Chief Executive Officer’s termination
of service (except for involuntary termination without cause, death or permanent disability) or the failure to meet the market
price-based vesting condition by December 31, 2028 (for which continued service is required if the market price vesting
condition is met after December 31, 2026). Co-CEO Awards do not participate in dividends until such awards have met both
their service-based and market price-based vesting requirements. Additionally, these awards are subject to additional transfer
restrictions and minimum retained ownership requirements after vesting.
Due to the existence of the service requirement, the vesting period for these Co-CEO Awards is explicit, and as such,
compensation expense will be recognized on a straight-line basis over the period from the date of grant through December
31, 2026 given the derived service period is less than the explicit service period. The fair value of the awards granted is based
on a Monte Carlo simulation valuation model. In addition, the grant date fair value assumes that these Co-CEO Awards will
not participate in dividends until such awards have met all of their vesting requirements.
assumptions used to estimate the grant date fair value of these Co-CEO Awards:
Grant Date Fair Value | $ |
Closing KKR share price as of valuation date | $ |
Risk Free Rate | |
Volatility | |
Dividend Yield | |
Expected Cost of Equity |
As of September 30, 2026, there was approximately $37 million of total estimated unrecognized expense related to these
unvested Co-CEO Awards, which is expected to be recognized ratably from October 1, 2026, to December 31, 2026. As of
September 30, 2026, all Co-CEO Awards have met their market price-based vesting condition. The Co-CEO Awards remain
unvested until their service conditions (as described above) are satisfied.
20. RELATED PARTY TRANSACTIONS
September 30, 2026 | December 31, 2025 | ||
Amounts Due From Unconsolidated Investment Funds | $ | $ | |
Amounts Due From Portfolio Companies | |||
Due From Affiliates | $ | $ |
Due to Affiliates consists of:
September 30, 2026 | December 31, 2025 | ||
Amounts Due to Current and Former Employees Under the Tax Receivable Agreement | $ | $ | |
Amounts Due to Unconsolidated Investment Funds | |||
Due to Affiliates | $ | $ |
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21. SEGMENT REPORTING
KKR operates through three
makers, who are the Co-Chief Executive Officers, allocate resources and assess performance:
•Asset Management – The asset management business offers a broad range of investment management services to
investment funds, vehicles and accounts (including the Insurance and Strategic Holdings segments) and provides
capital markets services to portfolio companies and third parties. This reportable segment also reflects how its
business lines operate collaboratively with predominantly a single expense pool.
•Insurance – The insurance business is operated by Global Atlantic, which is a leading U.S. retirement and life
insurance company that provides a broad suite of protection, legacy and savings products and reinsurance solutions
to clients across individual and institutional markets. Global Atlantic primarily generates income by earning a spread
between its investment income and the cost of policyholder benefits.
•Strategic Holdings – The strategic holdings business acquires and manages interests in operating companies that are
owned by KKR. This segment primarily generates income from dividends from these businesses. Dividends are
presented net of management fees paid to the Asset Management segment. If KKR were to sell a portion or all of a
business reported in Strategic Holdings, the realized gain or loss would be presented as realized investment income,
net of a performance fee paid to the Asset Management segment.
KKR’s segment profitability measures used to make operating decisions and assess performance across KKR’s reportable
segments are presented prior to giving effect to the allocation of income (loss) among KKR & Co. Inc. and holders of any
exchangeable securities, and the consolidation of the investment funds, vehicles and accounts that KKR advises, manages or
sponsors (including CFEs). For each segment, the chief operating decision makers use the key measure of segment earnings to
allocate resources to that segment in the annual budget and forecasting process. KKR's segment profitability measures
excludes: (i) equity-based compensation charges, (ii) amortization of acquired intangibles, and (iii) transaction-related and
non-operating items, if any. Transaction-related and non-operating items arise from corporate actions, which consist of: (i)
impairments, (ii) transaction costs from acquisitions, including any acquisition-related stock consideration, (iii) depreciation on
real estate that KKR owns and occupies, (iv) contingent liabilities, net of any recoveries, (v) certain integration, restructuring,
and other non-operating expenses, and (vi) other gains or charges that affect period-to-period comparability and are not
reflective of KKR's ongoing operational performance.
Inter-segment transactions are not eliminated from segment results when management considers those transactions in
assessing the results of the respective segments. These transactions include (i) management fees earned by the Asset
Management segment as the investment adviser for Global Atlantic’s insurance companies, (ii) management and performance
fees earned by the Asset Management segment from the Strategic Holdings segment, and (iii) interest income and expense
based on lending arrangements where the Asset Management segment borrows from the Insurance segment. All these inter-
segment transactions are recorded by each segment based on the applicable governing agreements. Additionally, due to the
integrated nature of our segment operations and as part of our strategic capital allocation decisions, inter-segment asset
transfers have and may continue to occur. In these cases in segment reporting, the assets are transferred at their fair value,
and no gain or loss is recognized at the time of transfer. Earnings are recognized upon realization events and transactions with
third parties. Total Segment Earnings represents the total segment earnings of KKR’s Asset Management, Insurance, and
Strategic Holdings segments:
•Asset Management Segment Earnings is the segment profitability measure used to make operating decisions and to
assess the performance of the Asset Management segment. This measure is presented before income taxes and is
comprised of: (i) Fee Related Earnings, (ii) Realized Performance Income, (iii) Realized Performance Income
Compensation, (iv) Realized Investment Income, and (v) Realized Investment Income Compensation. Asset
Management Segment Earnings excludes the impact of: (i) unrealized gains (losses) on investments, (ii) unrealized
carried interest, and (iii) unrealized carried interest compensation. Management fees earned by KKR as the adviser,
manager or sponsor for its investment funds, vehicles and accounts, including its Global Atlantic insurance companies
and Strategic Holdings segment, are included in Asset Management Segment Earnings.
•Insurance Operating Earnings is the segment profitability measure used to make operating decisions and to assess
the performance of the Insurance segment. This measure is presented before income taxes and is comprised of: (i)
Net Investment Income, (ii) Net Cost of Insurance, and (iii) General, Administrative, and Other Expenses. Insurance
Operating Earnings excludes the impact of: (i) investment gains (losses) which include realized gains (losses) related
to asset/liability matching investment strategies and unrealized investment gains (losses) and (ii) non-operating
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changes in policy liabilities and derivatives which includes (a) changes in the fair value of market risk benefits and
other policy liabilities measured at fair value and related benefit payments, (b) fees attributed to guaranteed
benefits, (c) derivatives used to manage the risks associated with policy liabilities, and (d) losses at contract issuance
on payout annuities. Insurance Operating Earnings includes (i) realized gains and losses not related to asset/liability
matching investment strategies and (ii) the investment management costs that are earned by our Asset Management
segment as the investment adviser of the Global Atlantic insurance companies.
•Strategic Holdings Segment Earnings is the segment profitability measure used to make operating decisions and to
assess the performance of the Strategic Holdings segment. This measure is presented before income taxes and is
comprised of: Dividends, Net and Net Realized Investment Income. Strategic Holdings Segment Earnings excludes the
impact of unrealized gains (losses) on investments. Strategic Holdings Segment Earnings includes management fees
and performance fee expenses that are earned by the Asset Management segment.
KKR disclosed all the segment expenses under the significant expense principle for each reportable segment. There are no
expenses to be disclosed in the other segment category, because segment revenues minus segment expenses equals the
segment measure of profit of each reportable segment.
Effective beginning in the first quarter of 2026, the information regularly provided to KKR’s chief operating decision
makers for the Insurance Segment was changed to reclassify certain operating expenses from “General, Administrative and
Other” to “Net Cost of Insurance.” Prior period segment information has been recast to conform to the current period
presentation. This reclassification had no impact on Insurance Operating Earnings.
Effective beginning in the second quarter of 2026, KKR has reported realized performance fees from its K-Series Private
Equity vehicles in Fee Related Performance Revenues. Historically, these realized performance fees were included within
Realized Performance Income. For the three and nine months ended September 30, 2026, performance revenues from its K-
Series Private Equity vehicles of approximately $220 million and $380 million were reported in fee related performance
revenues in fee related earnings, respectively. For the three and nine months ended September 30, 2025, performance
revenues from its K-Series Private Equity vehicles of approximately $150 million and $230 million were reported in net
realized performance income, respectively. This change in classification reflects how KKR’s chief operating decision makers
currently manage the business and aligns KKR's presentation with the prevailing classification disclosed by other publicly listed
alternative asset managers. KKR has not recast prior-period amounts, as the impact of the reclassification is not material to
previously reported results. Additionally, the change in classification had no impact on total segment revenues, total segment
earnings, or consolidated net income.
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Segment Presentation
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Asset Management | |||||||
Management Fees (1)(2) | $ | $ | $ | $ | |||
Transaction and Monitoring Fees, Net | |||||||
Fee Related Performance Revenues | |||||||
Fee Related Compensation | ( | ( | ( | ( | |||
Other Operating Expenses | ( | ( | ( | ( | |||
Fee Related Earnings | |||||||
Realized Performance Income | |||||||
Realized Performance Income Compensation | ( | ( | ( | ( | |||
Realized Investment Income (3) | |||||||
Realized Investment Income Compensation | ( | ( | ( | ( | |||
Asset Management Segment Earnings | $ | $ | $ | $ | |||
Insurance | |||||||
Net Investment Income (1) (4) | $ | $ | $ | $ | |||
Net Cost of Insurance | ( | ( | ( | ( | |||
General, Administrative and Other | ( | ( | ( | ( | |||
Insurance Operating Earnings | $ | $ | $ | $ | |||
Strategic Holdings | |||||||
Dividends, Net (2) | $ | $ | $ | $ | |||
Strategic Holdings Operating Earnings | |||||||
Net Realized Investment Income(3) | |||||||
Strategic Holdings Segment Earnings | $ | $ | $ | $ | |||
Total Segment Earnings | $ | $ | $ | $ | |||
(1)Includes intersegment management fees of $172.0 million and $170.2 million earned by the Asset Management segment from the Insurance segment for
the three months ended September 30, 2026 and 2025, respectively, and $522.9 million and $495.4 million for the nine months ended September 30,
2026 and 2025, respectively.
(2)Includes intersegment management fees of $10.9 million and $9.9 million earned by the Asset Management segment from the Strategic Holdings
segment for the three months ended September 30, 2026 and 2025, respectively, and $32.8 million and $27.1 million for the nine months ended
September 30, 2026 and 2025, respectively.
(3)Includes intersegment performance fees of $12.6 million and $17.9 million earned by the Asset Management segment from the Strategic Holdings
segment for the three and nine months ended September 30, 2026, respectively. There were $12.3
and nine months ended September 30, 2025.
(4)Includes intersegment interest expense of $5.2 million and $6.6 million for the three months ended September 30, 2026 and 2025, respectively, and
$14.3 million and $14.3 million for the nine months ended September 30, 2026 and 2025, respectively.
As of September 30, | ||||
2026 | 2025 | |||
Segment Assets: | ||||
Asset Management | $ | $ | ||
Insurance | ||||
Strategic Holdings | ||||
Total Segment Assets | $ | $ | ||
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Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
Non-Cash Expenses Excluded from Segment Earnings | 2026 | 2025 | 2026 | 2025 | |||
Equity Based Compensation | |||||||
Asset Management (1) | $ | $ | $ | $ | |||
Insurance | |||||||
Total Non-Cash Expenses | $ | $ | $ | $ | |||
(1)For the three and nine months ended September 30, 2026, KKR recorded acquisition-related stock consideration of $44.6 million and $82.8 million,
respectively.
Reconciliations of Total Segment Amounts
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Total GAAP Revenues | $ | $ | $ | $ | |||
Impact of Consolidation and Other | |||||||
Asset Management Adjustments: | |||||||
Capital Allocation-Based Income (Loss) (GAAP) | ( | ( | ( | ( | |||
Realized Carried Interest (Performance Income) | |||||||
Realized Investment Income | |||||||
Capstone Fees | ( | ( | ( | ( | |||
Expense Reimbursements | ( | ( | ( | ( | |||
Strategic Holdings Adjustments: | |||||||
Realized Investment Income and Dividends | |||||||
Insurance Adjustments: | |||||||
Net Premiums | ( | ( | ( | ( | |||
Policy Fees | ( | ( | ( | ( | |||
Other Income | ( | ( | ( | ( | |||
(Gains) Losses from Investments | |||||||
Non-Operating Changes in Policy Liabilities and Derivatives | ( | ( | ( | ||||
Total Segment Revenues (1) | $ | $ | $ | $ | |||
(1)Total Segment Revenues is comprised of (i) Management Fees, (ii) Transaction and Monitoring Fees, Net, (iii) Fee Related Performance Revenues, (iv)
Realized Performance Income, (v) Realized Investment Income, (vi) Net Investment Income, and (vii) Dividends, Net.
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Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Total GAAP Expenses | $ | $ | $ | $ | |||
Impact of Consolidation and Other | ( | ( | ( | ||||
Asset Management Adjustments: | |||||||
Equity-based Compensation | ( | ( | ( | ( | |||
Unrealized Carried Interest Compensation | ( | ||||||
Amortization of Intangibles | ( | ( | ( | ( | |||
Transaction-related and Non-operating Items | ( | ( | ( | ( | |||
Expense Reimbursements | ( | ( | ( | ( | |||
Capstone Expenses | ( | ( | ( | ( | |||
Insurance Adjustments: | |||||||
Net Premiums | ( | ( | ( | ( | |||
Policy Fees | ( | ( | ( | ( | |||
Other Income | ( | ( | ( | ( | |||
Non-Operating Changes in Policy Liabilities | ( | ( | ( | ||||
Equity-Based Compensation | ( | ( | ( | ( | |||
Amortization of Intangibles | ( | ( | ( | ( | |||
Transaction-Related and Non-Operating Items | ( | ( | ( | ( | |||
Total Segment Expenses (1) | $ | $ | $ | $ | |||
(1)Total Segment Expenses is comprised of (i) Fee Related Compensation, (ii) Realized Performance Income Compensation, (iii) Realized Investment Income
Compensation, (iv) Net Cost of Insurance, (v) General, Administrative and Other, and (vi) Other Operating Expenses.
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Income (Loss) Before Tax (GAAP) | $ | $ | $ | $ | |||
Impact of Consolidation and Other | ( | ( | ( | ||||
Interest Expense, Net | |||||||
Asset Management Adjustments: | |||||||
Unrealized (Gains) Losses | ( | ||||||
Unrealized Carried Interest | ( | ||||||
Unrealized Carried Interest Compensation | ( | ( | ( | ||||
Transaction-related and Non-operating Items(1) | |||||||
Equity-based Compensation – Time based | |||||||
Equity-based Compensation – Market Condition | |||||||
Amortization of Acquired Intangibles | |||||||
Strategic Holdings Adjustments: | |||||||
Unrealized (Gains) Losses | ( | ( | ( | ( | |||
Insurance Adjustments: | |||||||
(Gains) Losses from Investments | |||||||
Non-Operating Changes in Policy Liabilities and Derivatives | ( | ( | |||||
Transaction-Related and Non-Operating Items(1) | |||||||
Equity-Based Compensation | |||||||
Amortization of Acquired Intangibles | |||||||
Total Segment Earnings | $ | $ | $ | $ | |||
(1)For the three and nine months ended September 30, 2026, Transaction-related and Other Non-operating items include (i) $185 262
related to transaction-related costs and other corporate actions, respectively, which in both periods include a $230
one of our asset management partnerships, accounted for under the equity method of accounting, partially offset by $75
a contingent reserve, (ii) $14 million and $38 million of costs associated with certain integration and restructuring initiatives across our Asset
Management and Insurance businesses, respectively, and (iii) $47 million and $87 million of acquisition-related stock consideration and other,
respectively.
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As of | |||
September 30, 2026 | September 30, 2025 | ||
Total GAAP Assets | $ | $ | |
Impact of Consolidation and Reclassifications | ( | ( | |
Carry Pool Reclassifications | ( | ( | |
Total Segment Assets | $ | $ | |
22. EQUITY
Stockholders' Equity
Common Stock
The common stock of KKR & Co. Inc. is entitled to vote as provided by its certificate of incorporation, Delaware General
Corporation Law and the rules of the New York Stock Exchange (“NYSE”). Subject to preferences that apply to any shares of
preferred stock outstanding at the time on which dividends are payable, the holders of common stock are entitled to receive
dividends out of funds legally available if the Board of Directors, in its discretion, determines to declare dividends and then
only at the times and in the amounts that the Board of Directors may determine. The common stock is not entitled to
preemptive rights and is not subject to conversion, redemption or sinking fund provisions.
Series I Preferred Stock
Except for any distribution required by Delaware law to be made upon a dissolution event, the holders of Series I
preferred stock do not have any economic rights to receive dividends. Series I preferred stock is entitled to vote on various
matters that may be submitted to vote of the stockholders and the other matters as set forth in the certificate of
incorporation. Upon a dissolution event, each holder of Series I preferred stock will be entitled to a payment equal to $0.01
per share of Series I preferred stock. The Series I preferred stock will be eliminated on the Sunset Date (as defined in Note 1
“Organization”), which is scheduled to occur not later than December 31, 2026.
Series D Mandatory Convertible Preferred Stock
On March 7, 2025, KKR & Co. Inc. issued 51,750,000 shares, or $2.59 billion aggregate liquidation preference, of Series D
Mandatory Convertible Preferred Stock.
Subject to certain exceptions, so long as any share of Series D Mandatory Convertible Preferred Stock remains
outstanding, no dividend or distributions will be declared or paid on shares of KKR & Co. Inc.’s common stock, par value $0.01
per share, or any other class or series of stock ranking junior to the Series D Mandatory Convertible Preferred Stock, and no
common stock or any other class or series of stock ranking junior to the Series D Mandatory Convertible Preferred Stock will
be purchased, redeemed, or otherwise acquired for consideration by KKR & Co. Inc. or any of its subsidiaries unless, in each
case, all accumulated and unpaid dividends for all preceding dividend periods have been declared and paid in cash, shares of
common stock or a combination thereof, or a sufficient sum of cash or number of shares of common stock has been set aside
for the payment of such dividends, on all outstanding shares of Series D Mandatory Convertible Preferred Stock. In addition,
when dividends on shares of the Series D Mandatory Convertible Preferred Stock (i) have not been declared and paid in full on
any dividend payment date (or, in the case of any parity stock having dividend payment dates different from such dividend
payment dates on a dividend payment date falling within a regular dividend period related to such dividend payment date), or
(ii) have been declared but a sum of cash or number of shares of Common Stock sufficient for payment thereof has not been
set aside for the benefit of the holders thereof on the applicable regular record date, no dividends may be declared or paid on
any parity stock unless dividends are declared on the shares of Series D Mandatory Convertible Preferred Stock such that the
respective amounts of such dividends declared on the shares of Series D Mandatory Convertible Preferred Stock and such
shares of parity stock shall be allocated pro rata among the holders of the shares of Series D Mandatory Convertible Preferred
Stock and the holders of any shares of parity stock then outstanding.
Unless converted earlier, each share of the Series D Mandatory Convertible Preferred Stock will automatically convert on
the mandatory conversion date, which is expected to be March 1, 2028, into between 0.3312 shares and 0.4140 shares of
common stock, in each case, subject to customary anti-dilution adjustments described in the certificate of designations
setting forth the terms of the Series D Mandatory Convertible Preferred Stock. The number of shares of common stock
issuable upon conversion will be determined based on the average volume weighted average price per share of common
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stock over the 20 consecutive trading day period beginning on, and including, the 21 st scheduled trading day immediately
prior to March 1, 2028.
Dividends on the Series D Mandatory Convertible Preferred Stock will be payable on a cumulative basis when, as and if
declared by KKR & Co. Inc.’s board of directors, or an authorized committee thereof (which will be influenced by receipt of
distributions from KKR Group Partnership in respect of our Series D mirrored preferred units that we hold in KKR Group
Partnership) at an annual rate of 6.25 % on the liquidation preference of $50.00 per share of Series D Mandatory Convertible
Preferred Stock, and may be paid in cash or, subject to certain limitations, in shares of common stock or, subject to certain
limitations, any combination of cash and shares of common stock.
If declared, dividends on the Series D Mandatory Convertible Preferred Stock will be payable quarterly on March 1, June
1, September 1 and December 1 of each year to, and including, March 1, 2028, commencing on June 1, 2025.
Upon KKR & Co. Inc.’s voluntary or involuntary liquidation, winding-up or dissolution, each holder of the Series D
Mandatory Convertible Preferred Stock will be entitled to receive a liquidation preference in the amount of $50.00 per share
of Series D Mandatory Convertible Preferred Stock, plus an amount equal to accumulated and unpaid dividends on such
shares, whether or not declared, to, but excluding, the date fixed for liquidation, winding-up or dissolution, such amount to be
paid out of KKR & Co. Inc.’s assets legally available for distribution to its stockholders after satisfaction of debt and other
liabilities owed to KKR & Co. Inc.’s creditors and holders of shares of its stock ranking senior to the Series D Mandatory
Convertible Preferred Stock and before any payment or distribution is made to holders of any stock ranking junior to the
Series D Mandatory Convertible Preferred Stock, including, without limitation, Common Stock.
Share Repurchase Program
Under KKR's repurchase program, shares of common stock of KKR & Co. Inc. may be repurchased from time to time in
open market transactions, in privately negotiated transactions or otherwise. The timing, manner, price and amount of any
repurchases will be determined by KKR in its discretion and will depend on a variety of factors, including legal requirements,
price and economic and market conditions. In addition to the repurchases of common stock, the repurchase program will be
used for the retirement (by the payment of tax withholding amounts upon net settlement or cash settlement) of equity grants
pursuant to our 2019 Equity Incentive Plan representing the right to receive common stock. KKR expects that the program will
be in effect until the maximum approved dollar amount has been used. The program does not require KKR to repurchase or
retire any specific number of shares of common stock or equity grants, respectively, and the program may be suspended,
extended, modified or discontinued at any time. In March 2026, the share repurchase program was amended such that when
the remaining available amount under the share repurchase program becomes $50 million or less (the “Share Repurchase
Program Increase Threshold”), the total available amount under the share repurchase program will automatically increase by
an additional $500 million to the then remaining available amount. The Share Repurchase Program Increase Threshold was
reached during the three months ended September 30, 2026, and an additional $500 million was added to the then remaining
available amount. Following this increase, a total of $516 million was used to repurchase or retire shares of common stock or
equity grants, and there was approximately $33 million remaining under the program as of November 4, 2026. On November
6, 2026, the share repurchase program was further amended such that the total available amount under the share repurchase
program automatically increased by an additional $500 million to the then remaining available amount. Any additional
increases to the total available amount would require a separate approval by the Board of Directors of KKR & Co. Inc. The
repurchase program does not have an expiration date.
retired under the repurchase program:
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Shares of common stock repurchased | |||||||
Equity grants for common stock retired | |||||||
Change in KKR & Co. Inc.'s Ownership Interest
Vesting of restricted holdings units results in a change in ownership in KKR Group Partnership, while KKR retains a
controlling interest, and is accounted for as an equity transaction between the controlling and noncontrolling interests.
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Noncontrolling Interests
Noncontrolling interests in consolidated entities represent the non-redeemable ownership interests in KKR that are held
primarily by:
(i)third party fund investors in KKR's consolidated funds and certain other entities;
(ii)third parties in KKR's Capital Markets business line;
(iii)certain current and former employees who hold exchangeable securities; and
(iv)third-party investors in certain of Global Atlantic's consolidated entities.
Three Months Ended September 30, | |||
2026 | 2025 | ||
Balance at the beginning of the period | $ | $ | |
Net Income (Loss) Attributable to Noncontrolling Interests | |||
Other Comprehensive Income (Loss), net of tax | ( | ||
Equity-Based Compensation (Non-Cash Contribution) | |||
Change in KKR & Co. Inc.'s Ownership Interest | ( | ( | |
Capital Contributions | |||
Capital Distributions | ( | ( | |
Changes in Consolidation | |||
Impact of Acquisition – HealthCare Royalty Management, LLC (1) | |||
Balance at the end of the period | $ | $ | |
Nine Months Ended September 30, | |||
2026 | 2025 | ||
Balance at the beginning of the period | $ | $ | |
Net Income (Loss) Attributable to Noncontrolling Interests | |||
Other Comprehensive Income (Loss), net of tax | ( | ||
Equity-Based Compensation (Non-Cash Contribution) | |||
Impact of Acquisition – Arctos (See Note 25) | |||
Change in KKR & Co. Inc.'s Ownership Interest | ( | ||
Capital Contributions | |||
Capital Distributions | ( | ( | |
Changes in Consolidation | ( | ||
Impact of Acquisition – HealthCare Royalty Management, LLC (1) | |||
Balance at the end of the period | $ | $ | |
(1)Represents noncontrolling interests in HealthCare Royalty Management, LLC as of the acquisition date.
23. REDEEMABLE NONCONTROLLING INTERESTS
Redeemable noncontrolling interests primarily represents noncontrolling interests of certain KKR investment funds and
vehicles that are subject to periodic redemption by fund investors following the expiration of a specified period of time, or
may be withdrawn subject to a redemption fee during the period when capital may not be otherwise withdrawn.
Consolidated fund investor's interests subject to redemption as described above are presented as Redeemable Noncontrolling
Interests in the accompanying consolidated statements of financial condition and presented as Net Income (Loss) Attributable
to Redeemable Noncontrolling Interests in the accompanying consolidated statements of operations. When redeemable
amounts become legally payable to fund investors, they are classified as a liability and included in Accounts Payable, Accrued
Expenses, and Other Liabilities in the accompanying consolidated statements of financial condition.
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Three Months Ended September 30, | |||
2026 | 2025 | ||
Balance at the beginning of the period | $ | $ | |
Net Income (Loss) Attributable to Redeemable Noncontrolling Interests | |||
Capital Contributions | |||
Capital Distributions | ( | ( | |
Balance at the end of the period | $ | $ | |
Nine Months Ended September 30, | |||
2026 | 2025 | ||
Balance at the beginning of the period | $ | $ | |
Net Income (Loss) Attributable to Redeemable Noncontrolling Interests | |||
Capital Contributions | |||
Capital Distributions | ( | ( | |
Changes in Consolidation | ( | ||
Impact of Acquisition – Altavair (See Note 14) | |||
Balance at the end of the period | $ | $ | |
24. COMMITMENTS AND CONTINGENCIES
As of September 30, 2026, KKR had unfunded commitments consisting of $10.8 billion to its investment funds and
vehicles. These unfunded commitments also include funding requirements to levered investment vehicles and structured
transactions to fund or otherwise be liable for a portion of the vehicle's investment losses and/or to provide the vehicle with
liquidity upon certain termination events.
In addition to these uncalled commitments and funding obligations to KKR's investment funds and vehicles, KKR has
entered into contractual commitments primarily with respect to underwriting transactions, debt financing, revolving credit
facilities, and syndications in KKR's Capital Markets business line. As of September 30, 2026, these capital markets
commitments amounted to $1.3 billion. Whether these amounts are actually funded, in whole or in part, depends on the
contractual terms of such capital markets commitments, including the satisfaction or waiver of any conditions to closing or
funding. KKR's capital markets business has arrangements with third parties, which are expected to reduce KKR's risk under
certain circumstances when underwriting certain debt transactions. As a result, our unfunded capital markets commitments
as of September 30, 2026, have been reduced to reflect the amount expected to be funded by such third parties. As of
September 30, 2026, KKR's capital markets business line has entered into such arrangements representing a total notional
amount of $7.0 billion.
Global Atlantic has commitments to purchase or fund investments of $11.1 billion as of September 30, 2026. These
commitments include those related to mortgage loans, other lending facilities, and real assets. For those commitments that
represent a contractual obligation to extend credit, Global Atlantic has recorded a liability of $18.4 million for current
expected credit losses as of September 30, 2026.
In addition, Global Atlantic has entered into agreements to purchase loans. Global Atlantic's obligations under these
agreements are subject to change, curtailment, and cancellation based on various provisions including repricing mechanics,
due diligence reviews, and performance or pool quality, among other factors.
Global Atlantic has certain contingent funding obligations related to development-stage renewable energy projects in the
amount of $322.2 million as of September 30, 2026, with expiration dates occurring between March 2027 and September
2027. For accounting purposes, these contingent funding obligations are considered guarantees of the obligations of the
development-stage renewable energy projects.
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KKR's non-cancelable operating leases consist of leases of office space around the world. There are no material rent
holidays, contingent rent, rent concessions, or leasehold improvement incentives associated with any of these property
leases. In addition to base rentals, certain lease agreements are subject to escalation provisions and rent expense is
recognized on a straight‑line basis over the term of the lease agreement. Global Atlantic also enters into land leases for its
consolidated investments in renewable energy.
The partnership documents governing KKR's carry-paying investment funds and vehicles generally include a “clawback”
provision that, if triggered, may give rise to a contingent obligation requiring the general partner to return amounts to the
fund for distribution to the fund investors at the end of the life of the fund. Under a clawback obligation, upon the liquidation
of a fund, the general partner is required to return, typically on an after-tax basis, previously distributed carry to the extent
that, due to the diminished performance of later investments, the aggregate amount of carry distributions received by the
general partner during the term of the fund exceed the amount to which the general partner was ultimately entitled,
including the effects of any performance thresholds. KKR has guaranteed its general partners' clawback obligations.
As of September 30, 2026, approximately $196 million of carried interest was subject to this clawback obligation,
assuming that all applicable carry-paying investment funds were liquidated at their September 30, 2026 fair values. Although
KKR would be required to remit the entire amount to fund investors that are entitled to receive the clawback payment, KKR
would be entitled to seek reimbursement of approximately $86 million of that amount from Associates Holdings, which is not
a KKR subsidiary. As of September 30, 2026, Associates Holdings had access to cash reserves sufficient to reimburse the full
$86 million that would be due to KKR. If the investments in all carry-paying funds were to be liquidated at zero value, a
possibility that management views to be remote, the clawback obligation would have been approximately $5.4 billion as of
September 30, 2026. KKR will acquire control of Associates Holdings when KKR acquires its general partner upon the closing of
the transactions contemplated to occur on the Sunset Date (as defined in Note 1 “Organization”), which will occur not later
than December 31, 2026.
Carried interest is recognized in the consolidated statements of operations based on the contractual conditions set forth
in the agreements governing the fund as if the fund were terminated and liquidated at the reporting date and the fund's
investments were realized at the then estimated fair values. Amounts earned pursuant to carried interest are earned by the
general partner of those funds to the extent that cumulative investment returns are positive and where applicable, preferred
return thresholds have been met. If these investment amounts earned decrease or turn negative in subsequent periods,
recognized carried interest will be reversed and to the extent that the aggregate amount of carry distributions received by the
general partner during the term of the fund exceed the amount to which the general partner was ultimately entitled, and a
clawback obligation would be recorded. For funds that are consolidated, this clawback obligation, if any, is reflected as an
increase in noncontrolling interests in the consolidated statements of financial condition. For funds that are not consolidated,
this clawback obligation, if any, is reflected as a reduction of KKR's investment balance as this is where carried interest is
initially recorded.
Indemnifications and Other Guarantees
KKR may incur contingent liabilities for claims that may be made against it in the future. KKR enters into contracts that
contain a variety of representations, warranties and covenants, including indemnifications. KKR and certain of KKR's
consolidated investment funds have provided, and are expected to continue to provide, certain credit support, such as
indemnities and guarantees relating to a variety of matters, including (i) guarantees of KKR’s corporate debt obligations and
other capital obligations, (ii) non-recourse carve-out guarantees for fraud, willful misconduct and other wrongful acts,
including in connection with the financing of KKR's corporate real estate, (iii) in connection with certain investment vehicles
sponsored or managed by KKR, and (iv) certain other guarantees arising from the investment activities of KKR and its
investment vehicles.
The types of credit support provided by KKR include providing guarantees or other credit support:
i.in connection with its subsidiaries' funding obligations to certain investment vehicles that KKR manages or
sponsors,
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ii.in connection with repayment and funding obligations to third-party lenders on behalf of certain employees,
excluding its executive officers, in connection with their personal investments in KKR investment funds and a
levered multi-asset investment vehicle, and
iii.in connection with certain of investment vehicles’ obligations to fund or otherwise be liable for a portion of
their investment losses, including the obligation to provide these investment vehicles with liquidity upon
certain termination events.
KKR may also become liable for certain amounts payable to sellers of businesses or assets if a transaction does not close,
subject to certain conditions, if any, specified in the acquisition agreements for such businesses or assets.
Unless otherwise stated above, KKR's maximum exposure under the arrangements described under this section “—
Indemnifications and Other Guarantees” are currently unknown as there are no stated or notional amounts included in these
arrangements and KKR's liabilities for these matters would require a claim to be made against KKR in the future.
Legal Proceedings
From time to time, KKR is involved in various legal proceedings, requests for information, lawsuits, arbitration, and claims
incidental to the conduct of KKR's businesses. KKR's businesses are also subject to extensive regulation, which may result in
regulatory or other legal proceedings against them. Moreover, in the ordinary course of business, KKR is and can be the
defendant or the plaintiff in numerous lawsuits with respect to acquisitions, bankruptcy, insolvency and other events. Such
lawsuits may involve claims, or may be resolved on terms, that adversely affect the value of certain investments owned by
KKR's funds and Global Atlantic's insurance companies.
Kentucky Matter
In December 2017, KKR & Co. L.P. (which is now KKR Group Co. Inc.) and its then Co-Chief Executive Officers, Henry Kravis
and George Roberts, were named as defendants in a lawsuit filed in Kentucky state court (the “2017 Action”) alleging, among
other things, the violation of fiduciary and other duties in connection with certain separately managed accounts that Prisma
Capital Partners LP, a former subsidiary of KKR, manages for the Kentucky Retirement Systems. Also named as defendants in
the lawsuit are certain current and former trustees and officers of the Kentucky Retirement Systems, Prisma Capital Partners
LP, and various other service providers to the Kentucky Retirement Systems and their related persons. The 2017 Action was
dismissed at the direction of the Supreme Court of Kentucky for lack of Kentucky constitutional standing. This dismissal
became final on February 16, 2024.
On July 21, 2020, the Office of the Attorney General, on behalf of the Commonwealth of Kentucky (the “Kentucky AG”),
filed a new lawsuit in the same Kentucky state court (the “2020 AG Action”) making essentially the same allegations as those
raised in the 2017 Action, including against what was then KKR & Co. Inc. (now KKR Group Co. Inc.) and Messrs. Kravis and
Roberts. On May 1, 2024, the trial court denied motions to dismiss the 2020 AG Action filed by KKR & Co. Inc. and Messrs.
Kravis and Roberts.
On April 8, 2024, after receiving permission from the Kentucky trial court in the 2020 AG Action, the Kentucky AG
amended its complaint in the 2020 AG Action to add a claim for breach of contract. The Kentucky AG also filed an action (the
“2024 AG Action”) substantially identical to the 2020 AG Action, including the new claim for breach of contract. On April 23,
2024, KKR & Co. Inc., Messrs. Kravis and Roberts and other defendants moved to strike the Kentucky AG's amended complaint
in the 2020 AG Action, to stay consideration of the breach of contract claim and the 2024 AG Action until after the trial court's
ruling on the motions to dismiss the 2020 AG Action, and to deny a motion by the Kentucky AG to consolidate the 2020 AG
Action and the 2024 AG Action. These motions were denied, and the trial court consolidated the 2020 AG Action with the
2024 AG Action. On June 17, 2024, KKR & Co. Inc., Messrs. Kravis and Roberts and other defendants filed new motions to
dismiss the consolidated 2020 AG Action and 2024 AG Action.
In January 2021, some of the attorneys for the plaintiffs in the 2017 Action filed a new lawsuit on behalf of a new set of
plaintiffs, who claim to be “Tier 3” members of Kentucky Retirement Systems (the “Tier 3 Plaintiffs”), alleging substantially the
same allegations as in the 2017 Action. On July 9, 2021, the Tier 3 Plaintiffs served an amended complaint, which purports to
assert, on behalf of a class of beneficiaries of Kentucky Retirement Systems, direct claims for breach of fiduciary duty and civil
violations under the Racketeer Influenced and Corrupt Organizations Act (“RICO”). This complaint was removed to the U.S.
District Court for the Eastern District of Kentucky, which has entered an order staying this case until the completion of the
2020 AG Action. On August 20, 2021, the Tier 3 Plaintiffs and other individual plaintiffs filed a second complaint in Kentucky
state court (the “Second Tier 3 Action”), purportedly on behalf of Kentucky Retirement Systems’ funds, alleging the same
claims against what was then KKR & Co. Inc. (now KKR Group Co. Inc.) and Messrs. Kravis and Roberts as in the July 9th
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amended complaint but without the RICO or class action allegations. On May 1, 2024, the trial court denied motions to
dismiss the Second Tier 3 Action filed by KKR & Co. Inc. and Messrs. Kravis and Roberts. On July 3, 2024, KKR & Co. Inc.,
Messrs. Kravis and Roberts and other defendants filed a writ of prohibition asking the Kentucky Court of Appeals to order the
trial court to dismiss the Second Tier 3 Action. On November 12, 2024, the Court of Appeals denied the request for a writ of
prohibition. Defendants have appealed that denial by petitioning the Kentucky Supreme Court for a writ of prohibition. The
Second Tier 3 Action is stayed pending the outcome of this petition.
On March 24, 2022, in a separate declaratory judgment action brought by the Commonwealth of Kentucky regarding the
enforceability of certain indemnification provisions available to what was then KKR & Co. Inc. (now KKR Group Co. Inc.) and
Prisma Capital Partners LP, the Kentucky state court concluded that it has personal jurisdiction over KKR & Co. Inc. in that
action, and that the indemnification provisions violated the Kentucky Constitution and were therefore unenforceable. On
December 1, 2023, the Kentucky Court of Appeals reversed the trial court’s summary judgment on the issue of personal
jurisdiction over KKR & Co. Inc., but affirmed the trial court’s rulings that the indemnification provisions violated the Kentucky
Constitution and were unenforceable. On February 5, 2024, the Kentucky Court of Appeals denied the petitions of KKR & Co.
Inc. and others for rehearing. On April 8, 2024, KKR & Co. Inc. and other defendants in the declaratory judgment case filed
motions with the Supreme Court of Kentucky for discretionary review of the Court of Appeals' December 1, 2023 decision. On
August 14, 2024, the Kentucky Supreme Court granted discretionary review in the Kentucky AG’s declaratory judgment case of
both personal jurisdiction over KKR & Co. Inc. and the enforceability and constitutionality of the indemnification provisions
and, on September 22, 2025, opening briefs were filed by KKR & Co. Inc. and other defendants. The Commonwealth of
Kentucky filed its response briefs on November 21, 2025, and KKR & Co. Inc. and other defendants filed their reply briefs on
December 15, 2025. The Kentucky Supreme Court heard oral arguments on June 17, 2026.
On January 8, 2025, KKR, Messrs. Kravis and Roberts, Prisma Capital Partners L.P., and certain other defendants entered
into an agreement with the Commonwealth of Kentucky, Kentucky Public Pensions Authority, County Employees Retirement
System and Kentucky Retirement Systems (the “KPPA Entities”) to settle the 2020 AG Action and the 2024 AG Action. On May
12, 2025, the Kentucky trial court entered an order declining to enter the parties’ jointly proposed order approving the
settlement. Because the receipt of the court’s approval was a contractual condition to the settlement becoming final, the
settlement agreement terminated. KKR, Messrs. Kravis and Roberts, Prisma Capital Partners L.P., and the other defendants
that were party to the settlement agreement continue to deny any liability, wrongdoing, or damage, maintain that the
settlement was not an admission of any fault, liability, wrongdoing or damage, and maintain that they entered into the
settlement solely to avoid further legal expense, inconvenience, and the distraction of burdensome and protracted litigation.
KKR intends to continue to vigorously defend against all claims against KKR and Messrs. Kravis and Roberts.
On November 19, 2025, the Kentucky Public Pensions Authority (“KPPA”) filed a motion to intervene in the consolidated
2020 AG Action and 2024 AG Action to assert claims against KKR & Co. Inc., Prisma Capital Partners LP, and Prisma Capital
Partners LLC. On December 8, 2025, the court entered an agreed order tendered by the parties granting KPPA’s motion to
intervene and ordering that all briefing and deadlines relating to KPPA’s intervening complaint are stayed pending decision by
the Kentucky Supreme Court in the appeals arising out of the Kentucky AG’s declaratory judgment action.
Shareholder Derivative Litigation
On July 30, 2024, a shareholder derivative complaint was filed in Delaware Chancery Court and was subsequently
amended on August 7, 2024 (first amended complaint) and further amended on August 19, 2025 (second amended
complaint). The operative second amended complaint claims, among other matters, that the Co-Founders and various current
and former executive officers and directors of KKR & Co. Inc. breached fiduciary duties and wasted corporate assets in
connection with transactions contemplated by the Reorganization Agreement pursuant to which, among other things, the Co-
Founders, certain current and former executive officers, and other senior executives of KKR received common stock from KKR.
The suit seeks to recover on behalf of KKR & Co. Inc. a cancellation of shares issued in the reorganization, monetary damages,
injunctive relief, restitution, and other remedies. KKR & Co. Inc. and other defendants filed a motion to dismiss the operative
second amended complaint on October 6, 2025. On December 18, 2025, plaintiffs filed their opposition to the motion to
dismiss the second amended complaint. Defendants filed their response on February 13, 2026.
Regulatory Matters
KKR currently is, and expects to continue to become from time to time, subject to various examinations, inquiries and
investigations by various U.S. and non-U.S. governmental and regulatory agencies. Such examinations, inquiries and
investigations may result in the commencement of civil, criminal or administrative proceedings, or the imposition of fines,
penalties, or other remedies, against KKR and its personnel. KKR is subject to periodic examinations of its regulated businesses
by various U.S. and non-U.S. governmental and regulatory agencies, including but not limited to the Securities and Exchange
Commission (“SEC”), Financial Industry Regulatory Authority (“FINRA”), the U.K. Financial Conduct Authority, Central Bank of
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Ireland, Monetary Authority of Singapore, U.S. state insurance regulatory authorities, and the Bermuda Monetary Authority.
KKR may also become subject to civil, criminal, administrative, or other inquiries or investigations (through a request for
information, civil investigative demand, subpoena or otherwise) by any of the foregoing governmental and regulatory
agencies as well as by any other U.S. or non-U.S. governmental or regulatory agency, including but not limited to the SEC, U.S.
Department of Justice (“DOJ”), U.S. state attorney generals, and similar non-U.S. governmental or regulatory agencies.
Since 2022, as previously disclosed, KKR has been subject to investigations by the Antitrust Division of the DOJ related to
the accuracy and completeness of certain filings made by KKR pursuant to the premerger notification requirements under the
Hart‐Scott‐Rodino Act of 1976 (“HSR”) for certain transactions in 2021 and 2022. On January 14, 2025, the DOJ filed a civil
antitrust complaint (the “DOJ Complaint”) in the U.S. District Court for the Southern District of New York against KKR and
various KKR-sponsored investment entities (the “KKR Defendants”) alleging violations of the HSR Act. The DOJ Complaint
requests various relief for the alleged violations of the HSR Act by the KKR Defendants, including civil penalties in an amount
to be determined and various equitable relief, including potential disgorgement and injunctive relief against future violations
of the HSR Act. On January 14, 2025, KKR filed a complaint (the “KKR Complaint”) in the U.S. District Court for the District of
Columbia against Doha Mekki in her official capacity as Acting Assistant Attorney General of the United States for the
Antitrust Division, the DOJ, the Federal Trade Commission (“FTC”), and the United States of America pertaining to the HSR-
related investigations conducted by the DOJ. On January 16, 2025, KKR voluntarily dismissed the KKR Complaint filed in the
U.S. District Court for the District of Columbia and re-filed it in the U.S. District Court for the Southern District of New York as
related to the DOJ Complaint. The KKR Complaint requests various forms of relief, including declaratory judgments that: (i)
KKR did not violate the HSR Act; (ii) the DOJ’s and FTC’s interpretations of the HSR Act are unconstitutionally vague; and (iii)
the DOJ seeks an excessive fine in violation of the U.S. Constitution. KKR filed a motion to dismiss the DOJ Complaint on April
17, 2025. The DOJ filed its motion to dismiss the KKR Complaint on April 23, 2025, and KKR and the DOJ agreed to dismiss one
count of the KKR Complaint and to stay the rest of the DOJ’s motion to dismiss pending resolution of KKR’s motion to dismiss
the DOJ Complaint. On August 26, 2026, KKR entered into a Stipulation and Order (the “Stipulation”) with the DOJ to resolve
the DOJ Complaint. Pursuant to the Stipulation and contingent on a proposed final judgment becoming effective, the DOJ
would release all defendants from claims made in the DOJ Complaint, and KKR would pay civil penalties of $250.0 million to
the DOJ (which amount will be reimbursed by outside law firms). Additionally, the DOJ notified KKR that it has terminated all
of its related investigations against KKR and its affiliates. The Stipulation and a proposed final judgment were filed with the
U.S. District Court for the Southern District of New York on August 26, 2026. The proposed final judgment is subject to judicial
approval under the Antitrust Procedures and Penalties Act, 15 U.S.C. § 16, for the limited purpose of determining whether the
proposed final judgment is in the public interest. In addition, KKR is currently, and may from time to time become, subject to
other investigations by the Antitrust Division of the DOJ and other U.S. or non-U.S. governmental authorities related to
antitrust matters.
On October 19, 2026, the European Commission (the “EC”) delivered to KKR a Statement of Objections taking the
preliminary view that, in connection with the EC’s 2024 clearance of the acquisition of control of FiberCop by investment
vehicles managed by KKR, KKR submitted incorrect and/or misleading information concerning certain of FiberCop’s pre-
existing long-term agreements for the provision of wholesale access services to various Italian mobile telecommunications
operators. The delivery of the Statement of Objections does not prejudge the final outcome of the investigation, and KKR
strongly contests the EC’s preliminary findings. There can be no certainty as to the final outcome of the investigation, which
could result in the EC imposing a fine on KKR or revoking the 2024 clearance decision.
Loss Contingencies
KKR establishes an accrued liability for legal or regulatory proceedings only when those matters present loss
contingencies that are both probable and reasonably estimable. KKR includes in its financial statements the amount of any
reserve for regulatory, litigation and related matters that Global Atlantic includes in its financial statements. No loss
contingency is recorded for matters where such losses are either not probable or reasonably estimable (or both) at the time
of determination. Such matters also have the possibility of resulting in losses in excess of any amounts accrued. To the extent
KKR can in any particular period estimate an aggregate range of reasonably possible losses, these decisions involve significant
judgment given that it is inherently difficult to determine whether any loss for a matter is probable or even possible or to
estimate the amount of any loss in many legal, governmental and regulatory matters.
Estimating an accrued liability or a reasonably possible loss involves significant judgment due to many uncertainties,
including among others: (i) the proceeding may be in early stages; (ii) damages sought may be unspecified, unsupportable,
unexplained or uncertain; (iii) discovery may not have been started or is incomplete; (iv) there may be uncertainty as to the
outcome of pending appeals or motions; (v) there may be significant factual issues to be resolved; (vi) there may be novel
legal issues or unsettled legal theories to be presented or a large number of parties; or (vii) the proceeding relates to a
regulatory examination, inquiry, or investigation. It is not possible to predict the ultimate outcome of all pending litigations,
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arbitrations, claims, and governmental or regulatory examinations, inquiries, investigations and proceedings, and some of the
matters discussed above seek or may seek potentially large or indeterminate relief. Consequently, management is unable as
of the date of filing of this report to estimate an amount or range of reasonably possible losses related to matters pending
against KKR. In addition, any amounts accrued as loss contingencies or disclosed as reasonably possible losses may be, in part
or in whole, subject to insurance or other payments such as contributions and indemnity, which may reduce any ultimate loss.
As of the date of filing this report, management does not believe, based on currently available information, that the
outcomes of the matters pending against KKR will have a material adverse effect upon its financial statements. However,
given the potentially large and/or indeterminate relief sought or that may be sought in certain of these matters and the
inherent unpredictability of litigations, arbitrations, claims, and governmental or regulatory examinations, inquiries,
investigations and proceedings, it is possible that an adverse outcome in certain matters could have a material adverse effect
on KKR's financial results in any future period. In addition, there can be no assurance that material losses will not be incurred
from claims that have not yet been asserted or those where potential losses have not yet been determined to be probable or
possible and reasonably estimable.
Other Financing Arrangements
Global Atlantic has financing arrangements with unaffiliated third parties to support the reserves of its affiliated special
purpose reinsurers. Total fees associated with these financing arrangements were $4.7 million and $4.3 million for the three
months ended September 30, 2026 and 2025, respectively, and $14.0 million and $13.4 million for the nine months ended
September 30, 2026 and 2025, respectively, and are included in policy and other operating expenses in the consolidated
statements of operations. As of both September 30, 2026, and December 31, 2025, the total capacity of the financing
arrangements with third parties was $2.6
Other than the matters disclosed above, there were no outstanding or unpaid balances from the financing arrangements
with unaffiliated third parties as of both September 30, 2026, and December 31, 2025.
25. ACQUISITION
Acquisition of Arctos
On May 4, 2026, KKR completed the Arctos Acquisition, which was announced on February 4, 2026. Arctos is an
investment firm that provides strategic growth capital and liquidity solutions to sports franchises and to private investment
fund sponsors.
Under the transaction agreement, KKR agreed to pay (i) $1.4 billion in initial consideration to acquire 100 % of the equity
interests of Arctos, consisting of cash and equity securities of KKR, and (ii) up to $550 million of additional equity securities
based on KKR's share price and Arctos-specific performance targets. The number of shares and units issuable in connection
with the initial equity consideration was calculated using a contractual reference price of $130.62 per share of common stock
of KKR & Co. Inc. This reference price was a contractual term used solely to determine the number of shares and units issuable
under the transaction agreement and does not represent the accounting value of the consideration transferred.
KKR accounted for the Arctos Acquisition as a business combination under FASB Accounting Standards Codification Topic
805, Business Combinations (“Topic 805”), which requires the consideration transferred to be measured at acquisition-date
fair value. The consideration transferred under Topic 805 differs from the contractual terms described above for two reasons.
First, the equity securities issued as consideration for purposes of Topic 805 were measured at their fair value on the May 4,
2026 acquisition date, on which the closing price per share of common stock of KKR & Co. Inc. was $103.33 . Second, the
equity that is contingent on continued service is recognized and reported as a post-combination compensation expense over
the requisite service period. See Note 19 “Equity-based Compensation” for additional information regarding these equity
grants.
After giving effect to these adjustments, total consideration transferred, measured in accordance with Topic 805, was
$560 million, consisting of $253 million in cash (including $100 million of deferred cash consideration), $160 million in shares
of KKR & Co. Inc. common stock, and $147 million of securities exchangeable into shares of KKR & Co. Inc. common stock.
The fair value of assets acquired and liabilities assumed represents a provisional value, because the Company's evaluation
of the facts and circumstances of the Arctos Acquisition is ongoing. Pursuant to Topic 805, the financial statements will not be
retrospectively adjusted for changes to the provisional values of assets acquired and liabilities assumed that occur in
subsequent periods. Rather, KKR will recognize any adjustments as it obtains information that was not available as of the
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completion of this preliminary fair value calculation. KKR will also record, in the same period as the financial statement effect
on earnings, any changes in depreciation, amortization, or other income effects resulting from a change to the provisional
amounts, calculated as if the accounting had been completed at the acquisition date. KKR expects to finalize the purchase
price allocation as soon as practicable, but no later than one year from the acquisition date of May 4, 2026.
KKR allocated a provisional amount of $331 million to the fair value of identifiable intangible assets acquired in the Arctos
Acquisition, consisting of $310 million of investment management contracts and $21 million of investor relationships.
Intangible assets are based on third-party valuations. The investment management contracts were valued using the excess
earnings method, which derives value from the present value of the cash flows attributable to the investment management
contracts, less returns for contributory assets. The carried interest acquired by KKR was valued based on the present value of
the net carried interest expected to be received. Investor relationships were valued using the excess earnings method. The
significant assumptions used in the valuation of the intangible assets acquired were unobservable and include (i) assets'
estimated useful lives, (ii) projected assets under management, (iii) projected revenue growth rates, (iv) projected carried
interest, and (v) discount rates. The carrying value of goodwill associated with the Arctos Acquisition was $162 million as of
the acquisition date and has been allocated entirely to the Asset Management segment. The goodwill recorded is not
expected to be deductible for tax purposes and includes benefits anticipated as a result of synergies from combining KKR’s
and Arctos' businesses.
Revenues and earnings attributable to Arctos following the completion of the Arctos Acquisition were determined to be
immaterial for the three and nine months ended September 30, 2026. As a result, pro forma results of operations are not
presented because they would not be materially different.
26. SUBSEQUENT EVENTS
Dividends
A dividend of $0.195 per share of common stock of KKR & Co. Inc. has been declared and was announced on November 9,
2026. This dividend will be paid on December 3, 2026 to common stockholders of record as of the close of business on
November 19, 2026.
A dividend of $0.78125 per share of Series D Mandatory Convertible Preferred Stock has been declared and was
announced on November 9, 2026 and set aside for payment. This dividend will be paid on December 1, 2026 to holders of
record of Series D Mandatory Convertible Preferred Stock as of the close of business on November 15, 2026.
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following discussion and analysis should be read in conjunction with the unaudited condensed consolidated financial
statements of KKR & Co. Inc., together with its consolidated subsidiaries, and the related notes included elsewhere in this
report and our Annual Report, including the audited consolidated financial statements and the related notes and
"Management's Discussion and Analysis of Financial Condition and Results of Operations" and “Business” section contained
therein. In addition, this discussion and analysis contains forward-looking statements and involves numerous risks and
uncertainties, including those described under “Cautionary Note Regarding Forward-looking Statements” and “Business
Environment” in this report and our Annual Report and “Risk Factors” in our Annual Report, and our other filings with the SEC.
Actual results may differ materially from those contained in any forward-looking statements.
The unaudited condensed consolidated financial statements and the related notes included elsewhere in this report are
hereafter referred to as the “financial statements.” Additionally, the condensed consolidated statements of financial condition
are referred to herein as the “consolidated statements of financial condition”; the condensed consolidated statements of
operations are referred to herein as the “consolidated statements of operations”; the condensed consolidated statements of
comprehensive income (loss) are referred to herein as the “consolidated statements of comprehensive income (loss)”; the
condensed consolidated statements of changes in equity are referred to herein as the “consolidated statements of changes in
equity”; and the condensed consolidated statements of cash flows are referred to herein as the “consolidated statements of
cash flows.”
Overview
KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance
solutions. We aim to generate attractive investment returns by following a patient and disciplined investment approach,
employing world-class people, and supporting growth in our portfolio companies and communities.
Founded in 1976, KKR pioneered the leveraged buyout strategy and has been a leader of the private equity industry for
five decades. Since the inception of our firm, we have expanded our investment strategies and product offerings from
traditional private equity to other alternative asset classes such as leveraged credit, alternative credit, infrastructure, real
estate, energy, growth equity, and core private equity. Over the same period, we scaled from being a U.S.-focused firm to a
global operation with 37 offices around the world as of September 30, 2026. Our business further expanded with the
acquisition of Global Atlantic in 2021, which today conducts our insurance business providing retirement and life insurance
solutions. As of September 30, 2026, we managed $804 billion of assets under management, of which $223 billion comes
from Global Atlantic.
Our three reporting segments align with the KKR business model:
Our business model of (i) Asset Management, (ii) Insurance, and (iii) Strategic Holdings corresponds to our three reporting
segments. We have purposely created a business model that we believe enables us to grow long-term, durable, recurring
earnings with a focus on large addressable markets where we can be an industry leader. Importantly, these pieces were built
to leverage our core strengths as a firm: investing acumen, capital allocation expertise and our collaborative culture.
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Business Segments
Asset Management
In Asset Management, we have five business lines: (i) Private Equity, (ii) Real Assets, (iii) Credit and Liquid Strategies, (iv)
Capital Markets, and (v) Principal Activities.
Our Assets Under Management have grown and diversified in the last 15 years across Private Equity, Real Assets, and
Credit and Liquid Strategies as illustrated on the following chart. KKR has evolved from a relatively US-centric and traditional
private equity firm to a global alternative asset manager. As of December 31, 2010, our traditional Private Equity strategy
represented over 70% of our total AUM. As of September 30, 2026, traditional Private Equity was less than 25% of our total
AUM.
Assets Under Management ($ in billions):
Liquid Strategies
Alternative Credit(3)
Credit and Liquid
Strategies(2)
$337
+18%
CAGR
Leveraged Credit(4)
Real Estate
Real Assets(1)(2)
$212
Infrastructure &
Energy
Growth Equity
Core Private Equity
Private Equity(2)
$256
Traditional Private
Equity
(1)Real estate credit lends across the risk return spectrum of investments secured by or relating to real property, including senior mortgage loans, mezzanine
loans and mortgage-backed securities in North America and Europe. As of September 30, 2026, real estate credit AUM totals $42 billion. Real estate
equity seeks core, core+ and opportunistic real estate investment opportunities by geography: North America, Europe and Asia Pacific. As of
September 30, 2026, real estate equity AUM totals $42 billion. This includes $12 billion from the management of two publicly listed Japanese REITs
through our subsidiary, KJRM.
(2)The K-Series suite of vehicles are offered through various distribution channels to investors in the U.S. and other jurisdictions around the world. We have
K-Series vehicles that operate or invest in private equity companies, infrastructure assets, credit investments, and real estate. As of September 30, 2026,
total K-Series AUM was $45 billion, which has grown significantly over the past three years.
(3)Our alternative credit strategy principally invests in debt and other investments that are privately originated and negotiated. Alternative credit includes
our private credit strategy and Strategic Investments Group (“SIG”) strategy. Our private credit strategy consists of (i) asset-based finance (“ABF”), which is
financing secured by cash flows from financial assets, contractual payments, or hard assets with counterparties like banks, specialty finance companies
and corporate businesses, and (ii) corporate private credit, which is a credit investment where we have privately originated and negotiated the terms of
the debt instrument directly with a corporate borrower. As of September 30, 2026, private credit AUM totals $139 billion, which is comprised of (i) $91
billion of ABF of which $69 billion is high grade ABF and (ii) $49 billion of corporate private credit. Our references to “high grade ABF” generally refers to
credit investments that were rated investment grade (BBB- or better) or have a risk profile of an investment grade rating in our determination.
(4)Our leveraged credit strategy principally invests in the debt of a corporate borrower that we acquired through a syndicated offering arranged by a third
party or traded through a secondary market transaction. As a result, corporate credit investments in our Leveraged Credit strategy generally trade in
secondary markets and are more liquid than our corporate private credit investments. Leveraged credit includes investment portfolios made in KKR’s
collateralized loan obligations and U.S. and European leveraged credit strategies including leveraged loans and high-yield bonds.
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As an asset management firm, we earn recurring management fees and fee-related performance revenues for providing
investment management services and expertise to our institutional and individual investors who entrust us with their capital.
The amount of fees we charge for managing these assets depends on the underlying investment strategy, liquidity profile, and
ultimately our ability to generate attractive investment returns for our clients.
We earn transaction fees for providing capital markets services as a broker-dealer, and we also earn transaction and
monitoring fees as part of the management of our portfolio companies.
Carried interest that we receive from our investment vehicles entitles us to a specified percentage of investment gains
that are generated on third-party capital that is invested. We earn investment income by investing our own capital alongside
investors in our funds and other investment vehicles and from other assets we own on our balance sheet.
Operating expenses, which include occupancy expenses and other typical operating expenses, are shared across a single
expense pool given the collaborative nature of our five business lines within Asset Management.
Insurance
Our insurance business operates under the Global Atlantic brand. Global Atlantic is a leading retirement and life
insurance company, with an over 20-year track record of providing a broad suite of protection, legacy, and savings products to
customers and reinsurance solutions to clients across individual and institutional markets.
Global Atlantic primarily generates income by earning a spread between the investment income generated from
originated assets and the required cost of benefits payable to policyholders. Global Atlantic also earns fees paid by
policyholders on certain types of insurance contracts and fees paid by third-party investors, which are reported in our asset
management segment. As of September 30, 2026, Global Atlantic serves approximately 4 million policyholders.
The following table represents Global Atlantic’s new business volumes by business and product for the three and nine
months ended September 30, 2026 and 2025.
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
($ in millions) | 2025 | 2026 | 2025 | 2026 | ||||
Individual Channel (1): | ||||||||
Retirement Products | $3,285 | $3,059 | $9,937 | $6,943 | ||||
Preneed Life | 296 | 324 | 837 | 943 | ||||
Institutional Channel(2)(3) | $7,779 | $3,658 | $15,262 | $6,775 | ||||
(1)New business volumes in individual markets are referred to as sales. In Global Atlantic's individual market channel, sales of annuities include all money
paid into new and existing contracts. Individual market channel sales for preneed life are based on the face amount of insurance and do not include the
recurring premiums that policyholders may pay over time.
(2)Block reinsurance transactions may be episodic and volumes may fluctuate. Similarly, funding agreements issued in the FABN program are subject to
capital markets conditions and volumes may fluctuate. Flow and pension risk transfer new business volumes typically occur throughout the year. See “—
Risks Related to Our Business—Parts of our earnings and cash flow are highly variable due to the nature of our business” in our Annual Report.
(3)New business volumes from Global Atlantic’s institutional market channel are based on the assets assumed, net of any ceding commission, and are gross
of any retrocessions to investment vehicles that participate in qualifying reinsurance transactions sourced by Global Atlantic and to other third party
reinsurers.
Strategic Holdings
Our Strategic Holdings segment, which we started reporting in the first quarter of 2024, acquires and manages interests
in operating companies that are owned by the firm. Today, those companies primarily consist of our participation in our core
private equity strategy. We have acquired, and in the future we expect to continue to acquire, other long-term assets outside
of, and in addition to, our participation in our core private equity strategy. Strategic Holdings is not limited to acquiring
companies in specific industries. We intend to hold the companies in our Strategic Holdings segment over a longer period of
time, and we believe most of these companies generally have a lower risk profile than would be typical for an investment
through our traditional private equity strategy. We currently expect our Strategic Holdings segment primarily to generate
income from the receipt of dividends from our ownership stakes in these businesses and, upon the sale of any ownership
stake, realized investment income from such sale. As of September 30, 2026, our Strategic Holdings segment consisted of our
ownership stakes in 19 companies.
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The fees and carried interest paid by the third party investors in our core private equity funds continue to be reported in
our Asset Management segment and are not reported in our Strategic Holdings segment. Our Asset Management segment
charges our Strategic Holdings segment a quarterly management fee. Additionally, our Asset Management segment charges a
performance fee from the sale of our interests in the companies included in our Strategic Holdings segment. The management
and performance fees are charged in order to represent the cost of providing advisory services by our Asset Management
segment rather than determining the allocable costs borne by our Asset Management segment to support our Strategic
Holdings segment.
Based on information made available to management as of September 30, 2026, the following represents KKR’s pro-rata
portion of LTM Adjusted EBITDA(1) of operating companies in Strategic Holdings as of June 30, 2026:
By Geography | By Industry |
Based on information made available to management as of September 30, 2026, the following represents KKR’s pro-rata
portion of LTM Adjusted Revenue(1) and LTM Adjusted EBITDA(1) of operating companies in Strategic Holdings as of June 30,
2026:
Adjusted Revenue(1) | Adjusted EBITDA(1) | |
$4.5 billion | $1.1 billion |
(1)Represents the measure(s) management currently uses to monitor the operating performance of the businesses that are carried on a fair value basis with
dividends recognized in Strategic Holdings Operating Earnings.
Business Environment
Our asset management, insurance, and strategic holdings segments are affected by the various market and economic
conditions of the various countries and regions in which we operate. Market and economic conditions are expected to
continue to have a substantial impact on our financial condition, results of operations, and our business in various ways that
we are unable to control, including our ability to make new investments, the valuations of the investments we manage, the
amount of investment proceeds we realize when we exit our investments, the timing for such realization activity, our ability to
fundraise or to sell our various investment and insurance products and services, and the level of our capital markets activities,
as discussed in the “Risk Factors” section of our Annual Report.
The United States, during the three months ended September 30, 2026, continued to experience economic growth,
despite facing certain headwinds, including with inflation remaining above the U.S. Federal Reserve Board’s 2.0% target rate
and with costs-of-living continuing to pressure many U.S. households. During the three months ended September 30, 2026,
the U.S. Federal Reserve Board raised the federal funds rate to 3.875%.
Real gross domestic product (“GDP”) growth in the Eurozone during the three months ended September 30, 2026
remained subdued. In Europe during the three months ended September 30, 2026, the European Central Bank raised the
deposit rate to 2.5% as Eurozone core inflation remained above the European Central Bank’s 2.0% inflation target.
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In Asia, Japan’s economy continued to recover moderately in the third quarter of 2026, with industrial production and
private investment increasing, although consumption slowed notably. During the three months ended September 30, 2026,
the Bank of Japan raised its policy rate to 1.25%. In China, the economy grew during the three months ended September 30,
2026, but continued to face headwinds, including weak domestic demand and ongoing contraction in the property sector.
Several key economic indicators in the United States and in other countries and regions in which we operate include:
•GDP. In the United States, real GDP expanded at an annualized rate of 3.4% for the three months ended September
30, 2026, compared to an annualized expansion of 2.2% for the three months ended June 30, 2026. Eurozone real
GDP expanded at an annualized rate of 1.6% for the three months ended September 30, 2026, compared to an
annualized growth of 2.4% for the three months ended June 30, 2026. In Japan, real GDP is expected to have
expanded by 1.0% for the three months ended September 30, 2026, down from a 1.4% annualized expansion for the
three months ended June 30, 2026. Real GDP in China expanded at a 4.8% annualized rate for the three months
ended September 30, 2026, up from annualized growth of 3.6% reported for the three months ended June 30, 2026.
•Interest Rates. The target federal funds rate set by the U.S. Federal Reserve Board was 3.875% as of September 30,
2026, up from 3.625% as of June 30, 2026. The benchmark short-term interest rate set by the European Central Bank
was 2.50% as of September 30, 2026, up from 2.25% as of June 30, 2026. The benchmark short-term interest rate set
by the Bank of Japan was 1.25% as of September 30, 2026, up from 1.00% as of June 30, 2026. The benchmark
interest rate set by The People’s Bank of China was 3.0% as of September 30, 2026, unchanged from 3.0% as of June
30, 2026.
•Inflation. The U.S. core consumer price index rose 2.6% on a year-over-year basis as of September 30, 2026, the
same change as the 2.6% increase on a year-over-year basis as of June 30, 2026. Eurozone core inflation was
estimated to have increased 2.5% on a year-over-year basis as of September 30, 2026, up from 2.4% on a year-over-
year basis as of June 30, 2026. In Japan, core inflation rose 2.2% on a year-over-year basis as of September 30, 2026,
up from 1.2% on a year-over-year basis as of June 30, 2026. Core inflation in China was 1.0% on a year-over-year
basis as of September 30, 2026, unchanged from 1.0% as of June 30, 2026.
•Unemployment. The U.S. unemployment rate was 4.2% as of September 30, 2026, unchanged from June 30, 2026.
Eurozone unemployment was 6.4% as of September 30, 2026, unchanged from June 30, 2026. The unemployment
rate in Japan was 2.5% as of September 30, 2026, unchanged from June 30, 2026. The unemployment rate in China
was 5.2% as of September 30, 2026, up from 5.0% as of June 30, 2026.
Several key financial market indicators in the United States and in other countries and regions in which we operate
include:
•Equity Markets. For the three months ended September 30, 2026, the S&P 500 was up 2.30%, the MSCI Europe Index
was down 1.60%, the MSCI Asia Pacific Index was up 1.80% and the MSCI World Index was up 2.0% in U.S. dollar
terms, on a total return basis including dividends. Equity market volatility as evidenced by the Chicago Board Options
Exchange Market Volatility Index (VIX), a measure of volatility, ended at 16.3 as of September 30, 2026, decreasing
from 16.5 as of June 30, 2026.
•Credit Markets. During the three months ended September 30, 2026, U.S. investment grade corporate bond spreads
(BofA Merrill Lynch US Corporate Index) widened by 8 basis points. The non-investment grade credit indices were
mixed during the three months ended September 30, 2026, with the S&P/LSTA Leveraged Loan Index up 1.90% and
the BofAML HY Master II Index down 1.80%. During the three months ended September 30, 2026, the 10-year
government bond yields rose 82 basis points in the United States, rose 73 basis points in Germany, rose 38 basis
points in Japan, rose 67 basis points in the UK, and fell 5 basis points in China.
•Commodity Markets. During the three months ended September 30, 2026, the 3-year forward price of WTI crude oil
increased approximately 3.9%, and the 3-year forward price of natural gas increased from approximately $3.38 per
MMBtu as of June 30, 2026 to $3.61 per MMBtu as of September 30, 2026. The Japan spot LNG import price
increased to approximately $21.30 per MMBtu as of September 30, 2026, from approximately $17.63 per MMBtu as
of June 30, 2026.
•Foreign Exchange Rates. For the three months ended September 30, 2026, the euro fell 0.8%, the British pound rose
0.02%, the Japanese yen rose 3.3%, and the Chinese renminbi rose 1.2%, respectively, relative to the U.S. dollar.
The United States and countries around the world have experienced elevated levels of market volatility and uncertainty
driven by, among other things, geopolitical and global trade concerns, including the imposition of tariffs and threats of tariffs
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and impacts from the conflicts in the Middle East. This volatility and uncertainty add to the various risks and uncertainties in
the business environment in which we operate and may have various impacts, including on the valuations of certain of our
investment vehicles' investments, the pace and volume of our capital market transactions, deployments, and realizations, and
our fundraising activities.
Other Trends, Uncertainties and Risks Related to Our Business
Please refer to the “Risk Factors” section of our Annual Report for important additional detail regarding risks,
uncertainties, and other conditions that could have a material favorable or unfavorable impact on our businesses, including
the impact of market and economic conditions on valuations of investments and the impact of competition we face. These
risks, uncertainties, and other conditions should be read in conjunction with this Business Environment section and the entire
Risk Factor section of our Annual Report. In particular, see “Risk Factors—Risks Related to Our Business—Global, regional and
local events outside of our control, including geopolitical events and natural disasters, could materially and adversely impact
KKR”, “Risk Factors—Risks Related to Our Business—We operate in a highly competitive industry,” “Risk Factors—Risks
Related to Our Investment Activities—Various conditions and events outside of our control that are difficult to quantify or
predict may have a significant impact on the valuation of our investments”, and “Risk Factors—Risks Related to Our Insurance
Activities—We operate in a highly competitive industry.”
Basis of Accounting and Key Financial Measures under GAAP
We manage our business using certain financial measures and key operating metrics since we believe these metrics
measure the productivity of our operating activities. We prepare our consolidated financial statements in accordance with
accounting principles generally accepted in the United States of America (“GAAP”). See Note 2 “Summary of Significant
Accounting Policies” in our financial statements and “—Critical Accounting Policies and Estimates” contained in this section
below. Our key Segment and non-GAAP financial measures and operating metrics are discussed below.
Key Segment and Non-GAAP Performance Measures
The following key segment and non-GAAP performance measures are used by management in making operational and
resource deployment decisions as well as assessing the performance of KKR's business. They include certain financial
measures that are calculated and presented using methodologies other than in accordance with GAAP. These performance
measures as described below are presented prior to giving effect to the allocation of income (loss) between KKR & Co. Inc.
and holders of exchangeable securities and as such represent the entire KKR business in total. In addition, these performance
measures are presented without giving effect to the consolidation of certain investment funds and collateralized financing
entities (“CFEs”) that KKR manages.
We believe that providing these segment and non-GAAP performance measures on a supplemental basis to our GAAP
results is helpful to stockholders in assessing the overall performance of KKR's business. These non-GAAP measures should
not be considered as a substitute for financial measures calculated in accordance with GAAP. Reconciliations of these non-
GAAP measures to the most directly comparable financial measures calculated and presented in accordance with GAAP,
where applicable, are included under “—Segment Balance Sheet Measures—Reconciliations to GAAP Measures.”
Adjusted Net Income
Adjusted Net Income (“ANI”) is a performance measure of KKR’s earnings, which is derived from KKR’s reported segment
results. ANI is used to assess the performance of KKR’s business operations and measures the earnings potentially available
for distribution to its equity holders or reinvestment into its business. ANI is equal to Total Segment Earnings less Interest
Expense, Net and Other and Income Taxes on Adjusted Earnings. Interest Expense, Net and Other includes (i) interest expense
on debt obligations not attributable to any particular segment and (ii) cumulative dividend expense on the Series D
Mandatory Convertible Preferred Stock, net of interest income earned on cash and short-term investments. Income Taxes on
Adjusted Earnings represents the amount of income taxes that would be paid assuming that all adjusted earnings were
allocated to KKR & Co. Inc. and taxed at the same effective rate, which assumes that all securities exchangeable into shares of
common stock of KKR & Co. Inc. were exchanged. The economic assumptions and methodologies that impact Income taxes on
Adjusted Earnings are similar to those used in calculating the current income tax provision under U.S. GAAP. Equity based
compensation expense is excluded from ANI, because (i) KKR believes that the cost of equity grants to employees does not
contribute to the earnings potentially available for distributions to its equity holders or reinvestment into its business and (ii)
excluding this expense makes KKR’s reporting metric more comparable to the corresponding metric presented by other
publicly traded companies in KKR’s industry, which KKR believes enhances an investor’s ability to compare KKR’s performance
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to these other companies. Income Taxes on Adjusted Earnings includes the benefit of tax deductions arising from equity-
based compensation, which reduces Income Taxes on Adjusted Earnings during the period. If tax deductions from equity-
based compensation were to be excluded from Income Taxes on Adjusted Earnings, KKR’s ANI would be lower and KKR’s
effective tax rate would appear to be higher, even though a lower amount of income taxes would have actually been paid or
payable during the period. KKR separately discloses the amount of tax deduction from equity-based compensation for the
period reported and the effect of its inclusion in ANI for the period. KKR makes these adjustments when calculating ANI in
order to more accurately reflect the net realized earnings that are expected to be or become available for distribution to
KKR’s equity holders or reinvestment into KKR’s business. However, ANI does not represent and is not used to calculate actual
dividends under KKR’s dividend policy, which is a fixed amount per period, and ANI should not be viewed as a measure of
KKR’s liquidity.
Total Segment Earnings
Total Segment Earnings is a performance measure that KKR believes is useful to stockholders as it provides a
supplemental measure of our operating performance without taking into account items that KKR does not believe arise from
or relate directly to KKR's operations. Total Segment Earnings excludes: (i) equity-based compensation charges, (ii)
amortization of acquired intangibles, and (iii) transaction-related and non-operating items, if any. Transaction-related and
non-operating items primarily arise from corporate actions, which consist of: (i) impairments, (ii) transaction costs from
acquisitions, including any acquisition-related stock consideration, (iii) depreciation on real estate that KKR owns and
occupies, (iv) contingent liabilities, net of any recoveries, (v) certain integration, restructuring, and other non-operating
expenses, and (vi) other gains or charges that affect period-to-period comparability and are not reflective of KKR's ongoing
operational performance. Inter-segment transactions are not eliminated from segment results when management considers
those transactions in assessing the results of the respective segments. These transactions include (i) management fees earned
by our Asset Management segment as the investment adviser for Global Atlantic insurance companies, (ii) management and
performance fees earned by our Asset Management segment for acquiring and managing the companies included in our
Strategic Holdings segment, and (iii) interest income and expense based on lending arrangements where our Asset
Management segment borrows from our Insurance segment. All these inter-segment transactions are recorded by each
segment based on the applicable governing agreements. Additionally, due to the integrated nature of our segment operations
and as part of our strategic capital allocation decisions, inter-segment asset transfers have and may continue to occur. In
these cases in segment reporting, the assets are transferred at their fair value, and no realization is recognized at the time of
transfer. Earnings are recognized upon realization events and transactions with third parties. Total Segment Earnings
represents the total segment earnings of KKR’s Asset Management, Insurance and Strategic Holdings segments.
Asset Management Segment Earnings
Asset management segment earnings is the segment profitability measure used to make operating decisions and to
assess the performance of the Asset Management segment. This measure is presented before income taxes and is comprised
of: (i) Fee Related Earnings, (ii) Realized Performance Income, (iii) Realized Performance Income Compensation, (iv) Realized
Investment Income, and (v) Realized Investment Income Compensation. Asset Management Segment Earnings excludes the
impact of: (i) unrealized gains (losses) on investments, (ii) unrealized carried interest, and (iii) unrealized carried interest
compensation. Management fees earned by KKR as the adviser, manager or sponsor for its investment funds, vehicles and
accounts, including its Global Atlantic insurance companies and Strategic Holdings segment, are included in Asset
Management Segment Earnings.
Insurance Operating Earnings
Insurance Operating Earnings is the segment profitability measure used to make operating decisions and to assess the
performance of the Insurance segment. This measure is presented before income taxes and is comprised of: (i) Net
Investment Income, (ii) Net Cost of Insurance, and (iii) General, Administrative, and Other Expenses. Insurance Operating
Earnings excludes the impact of: (i) investment gains (losses) which include realized gains (losses) related to asset/liability
matching investment strategies and unrealized investment gains (losses) and (ii) non-operating changes in policy liabilities and
derivatives which includes (a) changes in the fair value of market risk benefits and other policy liabilities measured at fair
value and related benefit payments, (b) fees attributed to guaranteed benefits, (c) derivatives used to manage the risks
associated with policy liabilities, and (d) losses at contract issuance on payout annuities. Insurance Operating Earnings
includes (i) realized gains and losses not related to asset/liability matching investment strategies and (ii) the investment
management costs that are earned by our Asset Management segment as the investment adviser of the Global Atlantic
insurance companies.
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Strategic Holdings Segment Earnings
Strategic Holdings Segment Earnings is the segment profitability measure used to make operating decisions and to assess
the performance of the Strategic Holdings segment. This measure is presented before income taxes and is comprised of:
Dividends, Net and Net Realized Investment Income. Strategic Holdings Segment Earnings excludes the impact of unrealized
gains (losses) on investments. Strategic Holdings Segment Earnings includes management fees and performance fee expenses
that are earned by the Asset Management segment.
Fee Related Earnings
Fee related earnings is a performance measure used to assess the Asset Management segment’s generation of earnings
from revenues that are measured and received on a more recurring basis as compared to KKR’s investing earnings. KKR
believes this measure is useful to stockholders as it provides additional insight into the profitability of our fee generating asset
management and capital markets businesses. FRE equals (i) Management Fees, including fees paid by the Insurance and
Strategic Holdings segments to the Asset Management segment and fees paid by Ivy vehicles and other reinsurance vehicles,
(ii) Transaction and Monitoring Fees, Net and (iii) Fee Related Performance Revenues, less (x) Fee Related Compensation, and
(y) Other Operating Expenses.
Fee Related Performance Revenues refers to the realized portion of performance fees from certain AUM that has an
indefinite term and for which there is no immediate requirement to return invested capital to investors upon the realization
of investments. Fee related performance revenues consists of performance fees (i) expected to be received from our
investment funds, vehicles and accounts on a recurring basis, and (ii) that are not dependent on a realization event involving
investments held by the investment fund, vehicle or account.
Fee Related Compensation refers to the compensation expense, excluding equity-based compensation, paid from (i)
Management Fees, (ii) Transaction and Monitoring Fees, Net, and (iii) Fee Related Performance Revenues.
Other Operating Expenses represents the sum of (i) occupancy and related charges and (ii) other operating expenses.
Strategic Holdings Operating Earnings
Strategic Holdings Operating Earnings is a performance measure used to assess the firm’s earnings from companies and
businesses reported through its Strategic Holdings segment. Strategic Holdings Operating Earnings currently consists of
earnings derived from dividends that the firm receives from businesses acquired through the firm’s participation in our core
private equity strategy. Strategic Holdings Operating Earnings currently equals dividends less management fees that are
earned by our Asset Management segment. This measure is used by management to assess the Strategic Holdings segment’s
generation of earnings from revenues that are measured and received on a more recurring basis than, and are not dependent
on, realizations from investment activities.
Total Operating Earnings
Total Operating Earnings is a performance measure that represents the sum of (i) FRE, (ii) Insurance Operating Earnings,
and (iii) Strategic Holdings Operating Earnings. KKR believes this measure is useful to stockholders as it provides additional
insight into the profitability of the most recurring forms of earnings from each of KKR’s segments as compared to investing
earnings.
Total Investing Earnings
Total Investing Earnings is a performance measure that represents the sum of (i) Net Realized Performance Income and
(ii) Net Realized Investment Income. KKR believes this measure is useful to stockholders as it provides additional insight into
the earnings of KKR’s segments from the realization of investments.
Total Asset Management Segment Revenues
Total Asset Management Segment Revenues is a performance measure that represents the realized revenues of the Asset
Management segment (which excludes unrealized carried interest and unrealized gains (losses) on investments) and is the
sum of (i) Management Fees, (ii) Transaction and Monitoring Fees, Net, (iii) Fee Related Performance Revenues, (iv) Realized
Performance Income, and (v) Realized Investment Income. Asset Management Segment Revenues excludes Realized
Investment Income earned based on the performance of businesses presented in the Strategic Holdings segment. KKR
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believes that this performance measure is useful to stockholders as it provides additional insight into all forms of realized
revenues generated by our Asset Management segment.
Key Operating and Capital Metrics
Assets Under Management
Assets under management represent the assets managed (including core private equity), advised or sponsored by KKR
from which KKR is entitled to receive management fees or performance income (currently or upon a future event), general
partner capital, and assets managed, advised or sponsored by our strategic BDC partnership and the hedge fund and other
managers in which KKR holds an ownership interest. We believe this measure is useful to stockholders as it provides
additional insight into the capital raising activities of KKR and its hedge fund and other managers and the overall activity in
their investment funds and other managed or sponsored capital. KKR calculates the amount of AUM as of any date as the sum
of: (i) the fair value of the investments of KKR's investment funds and certain co-investment vehicles; (ii) uncalled capital
commitments from these funds, including uncalled capital commitments from which KKR is currently not earning
management fees or performance income; (iii) the asset value of the Global Atlantic insurance companies; (iv) the par value of
outstanding CLOs; (v) KKR's pro rata portion of the AUM of hedge fund and other managers in which KKR holds an ownership
interest; (vi) all of the AUM of KKR's strategic BDC partnership; (vii) the acquisition cost of invested assets of certain non-US
real estate investment trusts and (viii) the value of other assets managed or sponsored by KKR. The pro rata portion of the
AUM of hedge fund and other managers is calculated based on KKR’s percentage ownership interest in such entities
multiplied by such entity’s respective AUM. KKR's definition of AUM (i) is not based on any definition of AUM that may be set
forth in the governing documents of the investment funds, vehicles, accounts or other entities whose capital is included in this
definition, (ii) includes assets for which KKR does not act as an investment adviser, and (iii) is not calculated pursuant to any
regulatory definitions.
Capital Invested
Capital invested is the aggregate amount of capital invested by (i) KKR’s investment funds (including core private equity)
and Global Atlantic insurance companies, (ii) KKR's Principal Activities business line as a co-investment, if any, alongside KKR’s
investment funds, and (iii) KKR's Principal Activities business line in connection with a syndication transaction conducted by
KKR's Capital Markets business line, if any. Capital invested is used as a measure of investment activity at KKR during a given
period. We believe this measure is useful to stockholders as it provides a measure of capital deployment across KKR’s business
lines. Capital invested includes investments made using investment financing arrangements like credit facilities, as applicable.
Capital invested excludes (i) investments in certain leveraged credit strategies, (ii) capital invested by KKR’s Principal Activities
business line that is not a co-investment alongside KKR’s investment funds, and (iii) capital invested by KKR’s Principal
Activities business line that is not invested in connection with a syndication transaction by KKR’s Capital Markets business line.
Capital syndicated by KKR's Capital Markets business line to third parties other than KKR’s investment funds or Principal
Activities business line is not included in capital invested.
Fee Paying AUM
Fee paying AUM represents only the AUM from which KKR is entitled to receive management fees. We believe this
measure is useful to stockholders as it provides additional insight into the capital base upon which KKR earns management
fees. FPAUM is the sum of all of the individual fee bases that are used to calculate management fees and differs from AUM in
the following respects: (i) assets and commitments from which KKR is not entitled to receive a management fee are excluded
(e.g., assets and commitments with respect to which it is entitled to receive only performance income or is otherwise not
currently entitled to receive a management fee) and (ii) certain assets, primarily in its private equity funds, are reflected based
on capital commitments and invested capital as opposed to fair value because fees are not impacted by changes in the fair
value of underlying investments.
Uncalled Commitments
Uncalled commitments is the aggregate amount of unfunded capital commitments that KKR’s investment funds and
carry-paying co-investment vehicles (including core private equity) have received from fund investors to contribute capital to
fund future investments, and the amount of uncalled commitments is not reduced by capital invested using borrowings under
an investment fund’s subscription facility until capital is called from our fund investors. We believe this measure is useful to
stockholders as it provides additional insight into the amount of capital that is available to KKR’s investment funds and carry
paying co-investment vehicles to make future investments. Uncalled commitments are not reduced for investments
completed using fund-level investment financing arrangements or investments we have committed to make but remain
unfunded at the reporting date.
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Consolidated Results of Operations (GAAP Basis - Unaudited)
The following is a discussion of our consolidated results of operations on a GAAP basis for the three months ended
September 30, 2026 and 2025. You should read this discussion in conjunction with the financial statements and related notes
included elsewhere in this report. For a more detailed discussion of the factors that affected our segment results in these
periods, see “—Analysis of Segment Operating Results.” See “Risk Factors” in our Annual Report and “—Business
Environment” in this report for more information about risks, uncertainties, and other market and economic conditions that
may impact our business, financial performance, operating results and valuations.
Effective beginning in the first quarter of 2026, KKR has modified the presentation of certain operating expenses in its
consolidated statements of operations. Amounts previously presented separately as “Insurance Expenses” and “General,
Administrative and Other” are now presented in a single line item, “Policy and Other Operating Expense”. Prior-period
amounts have been reclassified to conform to the current-period presentation. This change in presentation had no impact on
previously reported consolidated total expenses, income before taxes, and net income attributable to KKR.
Three Months Ended | |||||
($ in thousands) | September 30, 2026 | September 30, 2025 | Change | ||
Revenues | |||||
Asset Management and Strategic Holdings | |||||
Fees and Other | $1,185,866 | $1,105,238 | $80,628 | ||
Capital Allocation-Based Income (Loss) | 575,919 | 638,764 | (62,845) | ||
1,761,785 | 1,744,002 | 17,783 | |||
Insurance | |||||
Net Premiums | 651,204 | 1,059,610 | (408,406) | ||
Policy Fees | 339,722 | 339,735 | (13) | ||
Net Investment Income | 2,074,141 | 1,969,779 | 104,362 | ||
Net Investment-Related Gains (Losses) | (323,495) | 351,800 | (675,295) | ||
Other Income | 60,322 | 61,049 | (727) | ||
2,801,894 | 3,781,973 | (980,079) | |||
Total Revenues | 4,563,679 | 5,525,975 | (962,296) | ||
Expenses | |||||
Asset Management and Strategic Holdings | |||||
Compensation and Benefits | 754,198 | 954,983 | (200,785) | ||
Occupancy and Related Charges | 35,814 | 30,597 | 5,217 | ||
General, Administrative and Other | 315,575 | 414,891 | (99,316) | ||
1,105,587 | 1,400,471 | (294,884) | |||
Insurance | |||||
Net Policy Benefits and Claims (including market risk benefit (gain) loss of $(125,910) and $34,370, respectively; remeasurement (gain) loss on policy liabilities: $(30,983) and $(106,152), respectively.) | 2,123,867 | 3,075,361 | (951,494) | ||
Amortization of Policy Acquisition Costs | 69,356 | 86,962 | (17,606) | ||
Interest Expense | 76,391 | 72,064 | 4,327 | ||
Policy and Other Operating Expense | 341,789 | 389,413 | (47,624) | ||
2,611,403 | 3,623,800 | (1,012,397) | |||
Total Expenses | 3,716,990 | 5,024,271 | (1,307,281) | ||
Investment Income (Loss) - Asset Management and Strategic Holdings | |||||
Net Gains (Losses) from Investment Activities | (229,379) | 1,197,827 | (1,427,206) | ||
Dividend Income | 781,833 | 416,233 | 365,600 | ||
Interest Income | 749,092 | 806,711 | (57,619) | ||
Interest Expense | (637,783) | (722,914) | 85,131 | ||
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Three Months Ended | |||||
($ in thousands) | September 30, 2026 | September 30, 2025 | Change | ||
Total Investment Income (Loss) | 663,763 | 1,697,857 | (1,034,094) | ||
Income (Loss) Before Taxes | 1,510,452 | 2,199,561 | (689,109) | ||
Income Tax Expense (Benefit) | 272,543 | 359,739 | (87,196) | ||
Net Income (Loss) | 1,237,909 | 1,839,822 | (601,913) | ||
Net Income (Loss) Attributable to Redeemable Noncontrolling Interests | 4,091 | 34,058 | (29,967) | ||
Net Income (Loss) Attributable to Noncontrolling Interests | 72,212 | 905,407 | (833,195) | ||
Net Income (Loss) Attributable to KKR & Co. Inc. | 1,161,606 | 900,357 | 261,249 | ||
Series D Mandatory Convertible Preferred Stock Dividends | 40,430 | 40,430 | — | ||
Net Income (Loss) Attributable to KKR & Co. Inc. Common Stockholders | $1,121,176 | $859,927 | $261,249 | ||
Consolidated Results of Operations (GAAP Basis - Unaudited) - Asset Management and
Strategic Holdings
Revenues
For the three months ended September 30, 2026 and 2025, revenues consisted of the following:
Three Months Ended | |||||
($ in thousands) | September 30, 2026 | September 30, 2025 | Change | ||
Management Fees | $780,825 | $668,524 | $112,301 | ||
Fee Credits | (121,892) | (211,382) | 89,490 | ||
Transaction Fees | 372,164 | 516,783 | (144,619) | ||
Monitoring Fees | 57,028 | 55,601 | 1,427 | ||
Incentive Fees | 4,524 | 1,597 | 2,927 | ||
Expense Reimbursements | 57,962 | 46,788 | 11,174 | ||
Consulting Fees | 35,255 | 27,327 | 7,928 | ||
Total Fees and Other | 1,185,866 | 1,105,238 | 80,628 | ||
Carried Interest | 552,084 | 621,925 | (69,841) | ||
General Partner Capital Interest | 23,835 | 16,839 | 6,996 | ||
Total Capital Allocation-Based Income (Loss) | 575,919 | 638,764 | (62,845) | ||
Total Revenues | $1,761,785 | $1,744,002 | $17,783 | ||
Fees and Other
Total Fees and Other for the three months ended September 30, 2026, increased compared to the three months ended
September 30, 2025, primarily as a result of an increase in management fees and a decrease in fee credits, which were
partially offset by a decrease in transaction fees.
For a more detailed discussion of the factors that affected our transaction fees during the period, see “—Analysis of Asset
Management Segment Operating Results.”
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The increase in management fees was primarily attributable to (i) management fees earned on new capital raised and net
asset appreciation over the past twelve months from our private equity and infrastructure K-Series vehicles, (ii) management
fees contributed by Arctos funds following the acquisition of Arctos during the second quarter of 2026, and (iii) management
fees earned from Asia Pacific Infrastructure Investors III and Asian Fund V, primarily due to management fees commencing
subsequent to the third quarter of 2025. The increase was partially offset by (i) a decrease in management fees earned from
Asian Fund IV as a result of entering its post-investment period in the second quarter of 2026, and now paying fees based on
invested capital rather than committed capital and at a lower fee rate and (ii) a lower level of management fees earned from
Global Infrastructure Investors V, primarily due to a higher level of management fees earned on new capital raised in the prior
period that was retroactive to the start of the fund’s investment period.
Management fees due from consolidated investment funds and other investment vehicles are eliminated upon
consolidation under GAAP. However, because these amounts are funded by, and earned from, noncontrolling interests, upon
consolidation under GAAP, KKR's allocated share of the net income from the consolidated investment funds and other
investment vehicles is increased by the amount of fees that are eliminated. Accordingly, net income (loss) attributable to KKR
would be unchanged if such investment funds and other investment vehicles were not consolidated. For a more detailed
discussion on the factors that affect our management fees during the period, see “—Analysis of Asset Management Segment
Operating Results.”
Fee credits decreased compared to the prior period as a result of a lower level of transaction fees in our Private Equity
and Real Assets business lines. Fee credits owed to consolidated investment funds and other investment vehicles are
eliminated upon consolidation under GAAP. However, because these amounts are owed to noncontrolling interests, upon
consolidation under GAAP, KKR's allocated share of the net income from the consolidated investment funds and other
investment vehicles is decreased by the amount of fee credits that are eliminated. Accordingly, net income (loss) attributable
to KKR would be unchanged if such investment funds and other investment vehicles were not consolidated. Transaction and
monitoring fees earned from KKR portfolio companies are not eliminated upon consolidation because those fees are earned
from companies which are not consolidated. Furthermore, transaction fees earned in our capital markets business are not
shared with fund investors. Accordingly, certain transaction fees are reflected in our revenues without a corresponding fee
credit.
Capital Allocation-Based Income (Loss)
Capital Allocation-Based Income (Loss) for the three months ended September 30, 2026, was positive primarily due to the
net appreciation of the underlying investments in many of our unconsolidated carry-earning investment vehicles, most
notably private equity and infrastructure K-Series vehicles, Global Infrastructure Investors IV, and North America Fund XIV.
Capital Allocation-Based Income (Loss) for the three months ended September 30, 2025, was positive primarily due to the net
appreciation of the underlying investments in many of our unconsolidated carry-earning investment funds, most notably
North America Fund XIII, our private equity and infrastructure K-Series vehicles, and Global Infrastructure Investors IV.
KKR calculates the carried interest that would be due to KKR for each investment fund, pursuant to the fund agreements,
as if the fair value of the underlying investments were realized as of the reporting date, irrespective of whether such amounts
have been realized. Since the fair value of the underlying investments varies between reporting periods, it is necessary to
make adjustments to the amounts recorded as carried interest to reflect either (i) positive performance, resulting in an
increase in the carried interest allocated to the general partner or (ii) negative performance that would cause the amount due
to KKR to be less than the amount previously recognized, resulting in a negative adjustment to carried interest allocated to
the general partner. In each case, it is necessary to calculate the carried interest on cumulative results compared to the
carried interest recorded to date and to make the required positive or negative adjustments.
Investment Income (Loss)
Net Gains (Losses) from Investment Activities for the three months ended September 30, 2026
The net losses from investment activities for the three months ended September 30, 2026 were $(229.4) million. See
Note 4 “Net Gains (Losses) from Investment Activities – Asset Management and Strategic Holdings” in our financial
statements for detail of realized and unrealized gains and losses from Investment Activities by asset class.
Investment gains and losses relating to our general partner capital interest in our unconsolidated funds are not reflected
in our discussion and analysis of Net Gains (Losses) from Investment Activities. Our economics associated with these
investment gains and losses are reflected in Capital Allocation-Based Income (Loss) as described above.
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For the three months ended September 30, 2026, net losses from investment activities were driven primarily by mark-to-
market losses relating to (i) our investment in OHB SE (industrials sector) held in our consolidated European Fund VI (USD)
fund, (ii) Landal (consumer products sector) and PetVet Care Centers, LLC, both held through our consolidated core private
equity vehicles, and (iii) a $230 million impairment charge taken on one of our asset management partnerships that is
accounted for under the equity method of accounting. These net losses were partially offset by mark-to-market gains
primarily relating to our investment in USI Insurance Services LLC (financial services sector) and IVI-RMA (healthcare sector)
held through our consolidated core private equity vehicles.
Net investment gains (losses) for each asset class are influenced by the valuation methodology applied to each asset, as
well as factors specific to each investment. For the three months ended September 30, 2026, net investment gains (losses)
were primarily generated in the following asset classes:
•Private Equity (including core private equity), which primarily was impacted by a mix of the operating performance of
certain portfolio companies and market multiples changes across various sectors. Changes in market multiples varied
across regions and sectors used in the market comparables methodology for the valuation of Level III investments;
and
•Real Assets, which primarily benefited from the overall positive operating performance of certain infrastructure and
energy assets partially offset by higher cost of capital assumptions. Changes in market multiples varied across
regions / sectors used in the market comparables methodology for the valuation of Level III investments.
See “Risk Factors” in our Annual Report and “—Business Environment” in this report for more information about the
factors that may impact our business, financial performance, operating results, and valuation.
Net Gains (Losses) from Investment Activities for the three months ended September 30, 2025
The net gains from investment activities for the three months ended September 30, 2025 were $1.2 billion. See Note 4
”Net Gains (Losses) from Investment Activities – Asset Management and Strategic Holdings” in our financial statements for
detail of realized and unrealized gains and losses from Investment Activities by asset class.
Investment gains and losses relating to our general partner capital interest in our unconsolidated funds are not reflected
in our discussion and analysis of Net Gains (Losses) from Investment Activities. Our economics associated with these
investment gains and losses are reflected in Capital Allocation-Based Income (Loss) as described above.
For the three months ended September 30, 2025, net gains from investment activities were driven primarily by (i) mark-
to-market gains primarily relating to Heartland Dental LLC (healthcare sector), Headlands Research, Inc. (healthcare sector),
and BridgeBio Pharma, Inc. (NASDAQ: BBIO) and (ii) mark-to-market gains on certain foreign exchange forward contracts.
These net gains were partially offset by (i) mark-to-market losses relating to OneStream, Inc. (NASDAQ: OS) and PetVet Care
Centers, LLC (health care sector) and (ii) mark-to-market losses on certain investments held in consolidated CLOs.
The factors that affect each investment strategy vary depending on the nature of the asset class and the valuation
methodology employed. For the three months ended September 30, 2025, net investment gains (losses) were primarily
generated in the following asset classes:
•Private Equity (including core private equity), which were primarily impacted by overall positive operating
performance of certain portfolio companies. Changes in market multiples varied across regions / sectors used in the
market comparables methodology for the valuation of Level III investments; and
•Infrastructure, which primarily benefited from the overall positive operating performance of certain infrastructure
assets, partially offset by slightly higher cost of capital assumptions. Changes in market multiples varied across
regions and sectors used in the market comparables methodology for the valuation of Level III investments.
See “Risk Factors” in our Annual Report and “—Business Environment” in this report for more information about the
factors that may impact our business, financial performance, operating results, and valuation.
Dividend Income
During the three months ended September 30, 2026, dividend income was primarily from (i) our investment in 1-800
Contacts, April SA, and USI Insurance Services LLC (which is subject to a pending sale) held through our consolidated core
private equity vehicles and (ii) various investments in certain of our consolidated opportunistic real estate equity funds.
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During the three months ended September 30, 2025, dividend income was primarily from (i) our investment in 1-800 Contacts
Inc. held through our consolidated core vehicles and (ii) various investments in certain of our consolidated opportunistic real
estate equity funds.
Significant dividends from portfolio companies and consolidated funds are generally not recurring quarterly dividends,
and while they may occur in the future, their size and frequency are variable. For a discussion of other factors that affected
KKR's dividend income, see “—Analysis of Asset Management Segment Operating Results.”
Interest Income
The decrease in interest income during the three months ended September 30, 2026, compared to the three months
ended September 30, 2025, was primarily due to the impact of lower short-term market interest rates, such as the Secured
Overnight Financing Rate (“SOFR”), during the current period on floating rate credit investments held in consolidated CLOs
and at certain of our consolidated alternative credit funds. The decrease was partially offset by the impact of closing CLOs that
are consolidated subsequent to September 30, 2025. For a discussion of other factors that affected KKR's interest income, see
“—Analysis of Asset Management Segment Operating Results.”
Interest Expense
The decrease in interest expense during the three months ended September 30, 2026, compared to the three months
ended September 30, 2025, was primarily due to the impact of lower short-term market interest rates, such as SOFR, during
the current period on floating rate debt obligations held in consolidated CLOs and at certain consolidated funds and other
investment vehicles. The decrease was partially offset by (i) the impact of closing CLOs that were consolidated subsequent to
September 30, 2025, and (ii) an increase in the amount of borrowings outstanding. For a discussion of other factors that
affected KKR's interest expense, see “—Key Segment and Non-GAAP Performance Measures.”
Expenses
Compensation and Benefits
The decrease in compensation and benefits during the three months ended September 30, 2026, compared to the three
months ended September 30, 2025, was primarily due to a lower level of accrued carried interest compensation driven by a
lower level of carried interest income earned in the current period, partially offset by a higher level of equity-based
compensation related to new equity grants subsequent to September 30, 2025.
Occupancy and Related Charges
The increase in occupancy and related charges during the three months ended September 30, 2026, compared to the
three months ended September 30, 2025, was primarily due to new office leases commencing subsequent to September 30,
2025.
General, Administrative and Other
The decrease in general, administrative and other expenses during the three months ended September 30, 2026,
compared to the three months ended September 30, 2025, was primarily due to the release of a contingent reserve in the
current period. This decrease was partially offset by a higher level of information technology costs.
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Consolidated Results of Operations (GAAP Basis - Unaudited) - Insurance
Revenues
For the three months ended September 30, 2026 and 2025, revenues consisted of the following:
Three Months Ended | |||||
($ in thousands) | September 30, 2026 | September 30, 2025 | Change | ||
Net Premiums | $651,204 | $1,059,610 | $(408,406) | ||
Policy Fees | 339,722 | 339,735 | (13) | ||
Net Investment Income | 2,074,141 | 1,969,779 | 104,362 | ||
Net Investment-Related Gains (Losses) | (323,495) | 351,800 | (675,295) | ||
Other Income | 60,322 | 61,049 | (727) | ||
Total Insurance Revenues | $2,801,894 | $3,781,973 | $(980,079) | ||
Net Premiums
Net premiums decreased for the three months ended September 30, 2026, as compared to the three months ended
September 30, 2025, primarily due to a decrease in new premiums earned on pension risk transfer and flow reinsurance with
life contingencies or morbidity risk during the three months ended September 30, 2026, as compared to the three months
ended September 30, 2025. Initial premiums from new business are generally offset by a comparable change in policy
reserves reported within net policy benefits and claims (as discussed below under “Expenses—Net policy benefits and
claims”).
Net Investment Income
Net investment income increased for the three months ended September 30, 2026, as compared to the three months
ended September 30, 2025, primarily due to (i) increased average assets under management due to growth in assets in the
institutional and individual market channels as a result of the cumulative impact of new business volumes in the current and
preceding quarters, and (ii) higher average portfolio yields.
Net Investment-Related Gains (Losses)
The components of net investment-related gains (losses) were as follows:
Three Months Ended | |||||
($ in thousands) | September 30, 2026 | September 30, 2025 | Change | ||
Equity Index Options | $200,072 | $466,343 | $(266,271) | ||
Interest Rate Contracts | (481,117) | 30,581 | (511,698) | ||
Equity Futures Contracts | 8,105 | (39,386) | 47,491 | ||
Foreign Exchange and Other Derivative Contracts | (5,135) | 104,968 | (110,103) | ||
Funds Withheld Payable Embedded Derivatives | 1,518,304 | (453,627) | 1,971,931 | ||
Funds Withheld Receivable Embedded Derivatives | (14,957) | (30,797) | 15,840 | ||
Net Gains (Losses) on Derivative Instruments | 1,225,272 | 78,082 | 1,147,190 | ||
Net Other Investment Gains (Losses) | (1,548,767) | 273,718 | (1,822,485) | ||
Net Investment-Related Gains (Losses) | $(323,495) | $351,800 | $(675,295) | ||
Net Gains (Losses) on Derivative Instruments
The increase in the fair value of embedded derivatives on funds withheld at interest payable for the three months ended
September 30, 2026 was primarily driven by the changes in the fair value of the underlying investments in the funds withheld
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at interest payable portfolio, which is primarily comprised of fixed maturity securities (designated as trading for accounting
purposes), mortgage and other loan receivables, and real asset investments. The underlying investments in the funds
withheld at interest payable portfolio decreased in value during the three months ended September 30, 2026, and increased
during the three months ended September 30, 2025, resulting in a gain and a loss on the related embedded derivative,
respectively. The changes in fair value of the underlying portfolios in the respective periods are primarily due to long-term
market interest and credit spread changes, and portfolio rotation activity.
The decrease in the fair value of interest rate contracts was primarily driven by an increase in long-term market interest
rates during the three months ended September 30, 2026, as compared to a decrease in long-term market interest rates
during the three months ended September 30, 2025, resulting in a loss on interest rate contracts for the three months ended
September 30, 2026, as compared to a gain on interest rate contracts for the three months ended September 30, 2025.
The decrease in the fair value of equity index options was primarily driven by the relative performance of the underlying
indices during each respective period. Global Atlantic purchases equity index options to hedge the market risk of embedded
derivatives in indexed universal life and fixed-indexed annuity products (the change in which is accounted for in net policy
benefits and claims). The majority of Global Atlantic's equity index options are based on the S&P 500 Index, which increased
during both the three months ended September 30, 2026, and 2025, (but to a lesser extent during the former), and due to an
increase in the notional amount of equity market contracts outstanding.
The decrease in the fair value of foreign exchange and other derivative contracts was primarily driven by a decrease due
to appreciation of the U.S. dollar against the euro and British pound during the three months ended September 30, 2026 and
as compared to depreciation during the three months ended September 30, 2025.
Net Other Investment Gains (Losses)
The components of net other investment gains (losses) were as follows:
Three Months Ended | |||||
($ in thousands) | September 30, 2026 | September 30, 2025 | Change | ||
Realized Gains (Losses) on Investments Not Supporting Asset-Liability Matching Strategies | $— | $8,710 | $(8,710) | ||
Realized Gains (Losses) on Available-for-Sale Fixed Maturity Securities | (202,812) | (50,492) | (152,320) | ||
(Addition To) Release of Credit Loss Allowances | (106,782) | (74,362) | (32,420) | ||
Unrealized Gains (Losses) on Fixed Maturity Securities Classified as Trading | (1,213,310) | 381,315 | (1,594,625) | ||
Unrealized Gains (Losses) on Other Investments Accounted Under a Fair-Value Option and Equity Investments | (152,947) | 62,059 | (215,006) | ||
Unrealized Gains (Losses) on Real Assets | 12,248 | 31,867 | (19,619) | ||
Realized Gains (Losses) on Real Assets | (54,051) | 362 | (54,413) | ||
Realized Gains (Losses) on Funds Withheld at Interest Payable Portfolio | 119,454 | (35,391) | 154,845 | ||
Realized Gains (Losses) on Funds Withheld at Interest Receivable Portfolio | (11,711) | (4,004) | (7,707) | ||
Foreign Exchange Gains (Losses) on Non-USD Denominated Investments | 2,445 | (42,550) | 44,995 | ||
Other | 58,699 | (3,796) | 62,495 | ||
Net Other Investment-Related Gains (Losses) | $(1,548,767) | $273,718 | $(1,822,485) | ||
The change in net other investment-related gains (losses) for the three months ended September 30, 2026, as compared
to the three months ended September 30, 2025, was primarily due to (i) an increase in unrealized losses on fixed maturity
securities classified as trading (primarily due to an increase in long-term interest rates during the period), (ii) an increase in
unrealized losses on investments accounted under a fair value option and certain investments in real assets, primarily due to
unfavorable changes in the related market segment multiples, (iii) an increase in net realized losses on available-for-sale
(“AFS”) fixed maturity securities due to portfolio sales, and (iv) an increase in credit loss allowances on mortgage and other
loan receivables and available-for-sale fixed maturity securities during the three months ended September 30, 2026.
Offsetting these increases in net other investment-related losses was an increase in foreign exchange gains on non-U.S.
dollar denominated investments primarily due to greater foreign exchange volatility from the appreciation of the U.S. dollar
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against the euro and British pound during the three months ended September 30, 2026, (largely offset by the change in
foreign exchange derivative contracts noted above under “Net Gains (Losses) on Derivative Instruments”).
Realized gains (losses) on funds withheld at interest payable portfolio represents investment gains and losses on the
funds withheld investment portfolio ceded to assuming reinsurers. Realized gains increased during the period due to an
increase in realized losses ceded to the assuming reinsurers, generally offsetting the gross net other investment-related gains
(losses) discussed above.
Expenses
Net Policy Benefits and Claims
Net policy benefits and claims decreased for the three months ended September 30, 2026, as compared to the three
months ended September 30, 2025, primarily due to (i) the change in the value of embedded derivatives in Global Atlantic’s
fixed indexed annuity products as a result of a smaller increase in equity market gains for the three months ended September
30, 2026, as compared to the three months ended September 30, 2025 (as discussed above under “—Consolidated Results of
Operations (GAAP Basis)—Revenues—Net investment-related gains (losses)”, Global Atlantic purchases equity index options
in order to hedge this risk, the fair value changes of which are accounted for in gains (losses) on derivative instruments, and
generally offset the change in embedded derivative fair value reported in net policy benefits and claims), and (ii) a decrease in
fair value liabilities and market risk benefits as a result of an increase in discount rates as a result of higher long-term market
interest rates. Offsetting the impact of these decreases was the impact of higher average funding costs due to higher crediting
rates and the ordinary-course run-off of older business originated in a low interest rate environment.
In addition to the above noted decreases, net policy benefits and claims was impacted in part by a decrease in favorable
impacts related to assumption review and other related items for the three months ended September 30, 2026 and 2025. The
assumptions on which reserves, deferred revenue and expenses are based are intended to represent an estimate of the
benefits that are expected to be payable to, and fees or premiums that are expected to be collectible from, policyholders in
future periods. Global Atlantic reviews the adequacy of its reserves, deferred revenue and expenses, and the assumptions
underlying those items at least annually, usually in the third quarter, referred to as an “assumption review.” As Global Atlantic
analyzes its assumptions, to the extent Global Atlantic chooses to update one or more of those assumptions, there may be an
“unlocking” impact. Generally, favorable unlocking means the change in assumptions required a reduction in reserves, or in
deferred revenue liabilities, and unfavorable unlocking means the change in assumptions required an increase in reserves or
in deferred revenue liabilities, or a reduction in deferred expenses.
In the third quarter of 2026, there was a net unfavorable assumption review and other related items impact of $23
million on net policy benefits and claims, which was primarily due to the (i) unfavorable impact of long-term interest rates on
certain lapse assumptions, and (ii) net unfavorable changes to mortality assumptions, offset in part by the favorable impact of
lower projected option costs on fixed-indexed annuity accumulation products.
In the third quarter of 2025, there was a net favorable assumption review impact of $106.2 million on net policy benefits
and claims, which was primarily due to (i) higher expected yield assumptions for certain interest-sensitive life products, (ii)
favorable expected surrender and persistency assumption changes for certain income annuity, variable annuity, and life
insurance products, and (iii) a decrease in expected morbidity assumptions on long-term care riders for certain fixed annuity
products, offset in part by (i) higher mortality rate assumptions for certain life insurance products, and (ii) higher surrender
rate assumptions for certain assumed annuity products.
Amortization of Policy Acquisition Costs
Amortization of policy acquisition costs decreased for the three months ended September 30, 2026, as compared to the
three months ended September 30, 2025, primarily due to remeasurement gain impacts to the cost-of-reinsurance asset
intangible, offset in part by an increase in deferred acquisition costs amortization for the three months ended September 30,
2026 associated with the cumulative impact of new business volumes generated from preneed insurance over the preceding
twelve months.
Interest Expense
Interest expense increased for the three months ended September 30, 2026, as compared to the three months ended
September 30, 2025, primarily due to (i) a higher weighted average interest rate on subordinated debt outstanding and (ii)
higher levels of outstanding debt of consolidated special purpose vehicles.
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Policy and Other Operating Expense
General, administrative and other decreased for the three months ended September 30, 2026, as compared to the three
months ended September 30, 2025, primarily due to (i) a decrease in commission expense, and (ii) a decrease in
compensation expense, as compared to the three months ended September 30, 2025.
Other Consolidated Results of Operations (GAAP Basis - Unaudited)
Income Tax Expense (Benefit)
Income tax expense decreased for the three months ended September 30, 2026, as compared to the three months ended
September 30, 2025, primarily due to a higher level of certain income tax deductions and credits, partially offset by a higher
level of income attributable to KKR common stockholders. For a discussion of factors that impacted KKR's tax provision, see
Note 18 “Income Taxes” in our financial statements included elsewhere in this report.
Net Income (Loss) Attributable to Redeemable Noncontrolling Interests
Net income (loss) attributable to redeemable noncontrolling interests relates primarily to net income (loss) attributable
to third-party limited partner interests in consolidated investment funds and other investment vehicles when the
noncontrolling interests have redemption features that are not solely within the control of KKR. Net income (loss) attributable
to redeemable noncontrolling interests decreased for the three months ended September 30, 2026, as compared to the three
months ended September 30, 2025, primarily due to a lower level of investment income from investment activities at these
consolidated investment funds and other investment vehicles in the current period.
Net Income (Loss) Attributable to Noncontrolling Interests
Net income (loss) attributable to noncontrolling interests relates primarily to net income (loss) attributable to (i) non-
redeemable third-party limited partner interests in consolidated investment funds and other investment vehicles and (ii)
exchangeable securities representing ownership interests in KKR Group Partnership until they are exchanged for common
stock of KKR & Co. Inc. Net income (loss) attributable to noncontrolling interests decreased for the three months ended
September 30, 2026, as compared to the three months ended September 30, 2025, primarily due to a lower level of
investment income from investment activities at these consolidated investment funds and other investment vehicles, partially
offset by a higher level of income attributable to exchangeable securities in the current period.
Net Income (Loss) Attributable to KKR & Co. Inc.
Net income (loss) attributable to KKR & Co. Inc. increased for the three months ended September 30, 2026, as compared
to the three months ended September 30, 2025, primarily due to (i) a higher level of asset management fee related income,
and (ii) the favorable impact of higher long-term market interest rates on market risk benefits and policy liabilities carried at
fair value, which were partially offset by (i) a lower level of capital allocation-based income from our asset management
business, and (ii) a higher level of insurance realized investment losses on available-for-sale fixed maturity securities in the
current period.
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Analysis of Consolidated Results of Operations (GAAP Basis - Unaudited)
The following is a discussion of our consolidated results of operations on a GAAP basis for the nine months ended
September 30, 2026 and 2025. You should read this discussion in conjunction with the financial statements and related notes
included elsewhere in this report. For a more detailed discussion of the factors that affected our segment results in these
periods, see “—Analysis of Segment Operating Results.” See “Risk Factors” in our Annual Report and “—Business
Environment” in this report for more information about risks, uncertainties, and other market and economic conditions that
may impact our business, financial performance, operating results, and valuations.
Effective beginning in the first quarter of 2026, KKR has modified the presentation of certain operating expenses in its
consolidated statements of operations. Amounts previously presented separately as “Insurance Expenses” and “General,
Administrative and Other” are now presented in a single line item, “Policy and Other Operating Expense”. Prior-period
amounts have been reclassified to conform to the current-period presentation. This change in presentation had no impact on
previously reported consolidated total expenses, income before taxes, and net income attributable to KKR.
Nine Months Ended | |||||
($ in thousands) | September 30, 2026 | September 30, 2025 | Change | ||
Revenues | |||||
Asset Management and Strategic Holdings | |||||
Fees and Other | $3,553,150 | $2,916,482 | $636,668 | ||
Capital Allocation-Based Income (Loss) | 2,440,153 | 2,708,601 | (268,448) | ||
5,993,303 | 5,625,083 | 368,220 | |||
Insurance | |||||
Net Premiums | 1,910,210 | 2,113,216 | (203,006) | ||
Policy Fees | 1,005,185 | 1,013,182 | (7,997) | ||
Net Investment Income | 6,102,327 | 5,616,405 | 485,922 | ||
Net Investment-Related Gains (Losses) | (597,602) | (845,386) | 247,784 | ||
Other Income | 194,130 | 202,501 | (8,371) | ||
8,614,250 | 8,099,918 | 514,332 | |||
Total Revenues | 14,607,553 | 13,725,001 | 882,552 | ||
Expenses | |||||
Asset Management and Strategic Holdings | |||||
Compensation and Benefits | 2,995,435 | 3,365,683 | (370,248) | ||
Occupancy and Related Charges | 113,115 | 99,702 | 13,413 | ||
General, Administrative and Other | 1,147,546 | 1,039,220 | 108,326 | ||
4,256,096 | 4,504,605 | (248,509) | |||
Insurance | |||||
Net Policy Benefits and Claims (including market risk benefit (gain) loss of $(18,050) and $244,897, respectively; remeasurement (gain) loss on policy liabilities: $(30,983) and $(63,900), respectively.) | 7,312,417 | 7,575,360 | (262,943) | ||
Amortization of Policy Acquisition Costs | 302,601 | 265,733 | 36,868 | ||
Interest Expense | 224,905 | 212,465 | 12,440 | ||
Policy and Other Operating Expense | 897,365 | 1,043,507 | (146,142) | ||
8,737,288 | 9,097,065 | (359,777) | |||
Total Expenses | 12,993,384 | 13,601,670 | (608,286) | ||
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Nine Months Ended | |||||
($ in thousands) | September 30, 2026 | September 30, 2025 | Change | ||
Investment Income (Loss) - Asset Management and Strategic Holdings | |||||
Net Gains (Losses) from Investment Activities | 251,496 | 3,032,152 | (2,780,656) | ||
Dividend Income | 1,276,906 | 1,026,266 | 250,640 | ||
Interest Income | 2,223,476 | 2,402,451 | (178,975) | ||
Interest Expense | (2,018,721) | (2,084,804) | 66,083 | ||
Total Investment Income (Loss) | 1,733,157 | 4,376,065 | (2,642,908) | ||
Income (Loss) Before Taxes | 3,347,326 | 4,499,396 | (1,152,070) | ||
Income Tax Expense (Benefit) | 704,033 | 620,612 | 83,421 | ||
Net Income (Loss) | 2,643,293 | 3,878,784 | (1,235,491) | ||
Net Income (Loss) Attributable to Redeemable Noncontrolling Interests | 57,360 | 110,727 | (53,367) | ||
Net Income (Loss) Attributable to Noncontrolling Interests | 318,616 | 2,543,501 | (2,224,885) | ||
Net Income (Loss) Attributable to KKR & Co. Inc. | 2,267,317 | 1,224,556 | 1,042,761 | ||
Series D Mandatory Convertible Preferred Stock Dividends | 121,289 | 78,166 | 43,123 | ||
Net Income (Loss) Attributable to KKR & Co. Inc. Common Stockholders | $2,146,028 | $1,146,390 | $999,638 | ||
Consolidated Results of Operations (GAAP Basis - Unaudited) - Asset Management and
Strategic Holdings
Revenues
For the nine months ended September 30, 2026 and 2025, revenues consisted of the following:
Nine Months Ended | |||||
($ in thousands) | September 30, 2026 | September 30, 2025 | Change | ||
Management Fees | $2,370,176 | $1,793,039 | $577,137 | ||
Fee Credits | (442,825) | (482,364) | 39,539 | ||
Transaction Fees | 1,120,926 | 1,250,321 | (129,395) | ||
Monitoring Fees | 181,289 | 157,362 | 23,927 | ||
Incentive Fees | 66,316 | 16,715 | 49,601 | ||
Expense Reimbursements | 165,577 | 108,490 | 57,087 | ||
Consulting Fees | 91,691 | 72,919 | 18,772 | ||
Total Fees and Other | 3,553,150 | 2,916,482 | 636,668 | ||
Carried Interest | 2,306,077 | 2,490,708 | (184,631) | ||
General Partner Capital Interest | 134,076 | 217,893 | (83,817) | ||
Total Capital Allocation-Based Income (Loss) | 2,440,153 | 2,708,601 | (268,448) | ||
Total Revenues | $5,993,303 | $5,625,083 | $368,220 | ||
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Fees and Other
Total Fees and Other for the nine months ended September 30, 2026, increased compared to the nine months ended
September 30, 2025, primarily as a result of an increase in management fees and to a lesser extent incentive fees, which were
partially offset by a decrease in transactions fees.
For a more detailed discussion of the factors that affected our transaction fees during the period, see “—Analysis of Asset
Management Segment Operating Results.”
The increase in management fees was primarily attributable to (i) management fees earned on new capital raised and net
asset appreciation in our private equity and infrastructure K-Series vehicles, (ii) management fees commencing at North
America Fund XIV in the second quarter of 2025, and (iii) management fees contributed by Arctos funds following the
acquisition of Arctos during the second quarter of 2026. The increase was partially offset by (i) a decrease in management
fees earned from Americas Fund XII due to a step-down in the management fee rate in the third quarter of 2025 and (ii) a
decrease in management fees earned from Asian Fund IV as a result of entering its post-investment period in the second
quarter of 2026, and now paying fees based on invested capital rather than committed capital and at a lower fee rate.
Management fees due from consolidated investment funds and other investment vehicles are eliminated upon
consolidation under GAAP. However, because these amounts are funded by, and earned from, noncontrolling interests, upon
consolidation under GAAP, KKR's allocated share of the net income from the consolidated investment funds and other
investment vehicles is increased by the amount of fees that are eliminated. Accordingly, net income (loss) attributable to KKR
would be unchanged if such investment funds and other investment vehicles were not consolidated. For a more detailed
discussion on the factors that affect our management fees during the period, see “—Analysis of Asset Management Segment
Operating Results.”
Fee credits decreased compared to the prior period as a result of a lower level of transaction fees in our Private Equity
and Real Assets business lines. Fee credits owed to consolidated investment funds and other investment vehicles are
eliminated upon consolidation under GAAP. However, because these amounts are owed to noncontrolling interests, upon
consolidation under GAAP, KKR's allocated share of the net income from the consolidated investment funds and other
investment vehicles is decreased by the amount of fee credits that are eliminated. Accordingly, net income (loss) attributable
to KKR would be unchanged if such investment funds and other investment vehicles were not consolidated. Transaction and
monitoring fees earned from KKR portfolio companies are not eliminated upon consolidation because those fees are earned
from companies which are not consolidated. Furthermore, transaction fees earned in our capital markets business are not
shared with fund investors. Accordingly, certain transaction fees are reflected in our revenues without a corresponding fee
credit.
Capital Allocation-Based Income (Loss)
Capital Allocation-Based Income (Loss) for the nine months ended September 30, 2026, was positive primarily due to the
net appreciation of the underlying investments in many of our unconsolidated carry-earning investment vehicles, most
notably at our private equity and infrastructure K-Series vehicles, Global Impact Fund II, and North America Fund XIII. Capital
Allocation-Based Income (Loss) for the nine months ended September 30, 2025, was positive primarily due to the net
appreciation of the underlying investments in many of our unconsolidated carry-earning investment vehicles, most notably
Asian Fund IV, North America Fund XIII and our private equity and infrastructure K-Series vehicles.
KKR calculates the carried interest that would be due to KKR for each investment fund, pursuant to the fund agreements,
as if the fair value of the underlying investments were realized as of the reporting date, irrespective of whether such amounts
have been realized. Since the fair value of the underlying investments varies between reporting periods, it is necessary to
make adjustments to the amounts recorded as carried interest to reflect either (i) positive performance, resulting in an
increase in the carried interest allocated to the general partner or (ii) negative performance that would cause the amount due
to KKR to be less than the amount previously recognized, resulting in a negative adjustment to carried interest allocated to
the general partner. In each case, it is necessary to calculate the carried interest on cumulative results compared to the
carried interest recorded to date and to make the required positive or negative adjustments.
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Net Gains (Losses) from Investment Activities
Net Gains (Losses) from Investment Activities for the nine months ended September 30, 2026
The net gains from investment activities for the nine months ended September 30, 2026 were $251.5 million. See Note 4
“Net Gains (Losses) from Investment Activities – Asset Management and Strategic Holdings” in our financial statements for
detail of net gains and losses from Investment Activities by asset class.
Investment gains and losses relating to our general partner capital interest in our unconsolidated funds are not reflected
in our discussion and analysis of Net Gains (Losses) from Investment Activities. Our economics associated with these
investment gains and losses are reflected in Capital Allocation-Based Income (Loss) as described above.
For the nine months ended September 30, 2026, net gains from investment activities were driven primarily by (i) mark-to-
market gains on our investments in USI Insurance Services LLC (which is subject to a pending sale) and 1-800 Contacts, both
held through our consolidated core private equity vehicles, and OHB SE held in our consolidated European Fund VI (USD)
fund, and (ii) mark-to-market gains on certain foreign exchange forward contracts. These mark-to-market gains were partially
offset by (i) mark-to-market losses on our investment in PetVet Care Centers, LLC and Barracuda Networks, Inc. (technology
sector), (ii) a $230 million impairment charge taken on one of our asset management partnerships that is accounted for under
the equity method of accounting, and (iii) mark-to-market losses at certain consolidated alternative credit funds.
Net investment gains (losses) for each asset class are influenced by the valuation methodology applied to each asset, as
well as factors specific to each investment. For the nine months ended September 30, 2026, net investment gains (losses)
were primarily generated in the following asset classes:
•Private Equity (including core private equity), which primarily benefited from the overall positive operating
performance of certain portfolio companies and market multiples changes across various sectors. Changes in market
multiples varied across regions and sectors used in the market comparables methodology for the valuation of Level III
investments; and
•Real Assets, which primarily benefited from the overall positive operating performance of certain infrastructure and
energy assets. Changes in market multiples varied across regions and sectors used in the market comparables
methodology for the valuation of Level III investments.
See “Risk Factors” in our Annual Report and “—Business Environment” in this report for more information about the
factors that may impact our business, financial performance, operating results, and valuation.
Net Gains (Losses) from Investment Activities for the nine months ended September 30, 2025
The net gains from investment activities for the nine months ended September 30, 2025 were $3.0 billion. See Note 4
“Net Gains (Losses) from Investment Activities – Asset Management and Strategic Holdings” in our financial statements for
detail of realized and unrealized gains and losses from Investment Activities by asset class.
Investment gains and losses relating to our general partner capital interest in our unconsolidated funds are not reflected
in our discussion and analysis of Net Gains (Losses) from Investment Activities. Our economics associated with these
investment gains and losses are reflected in Capital Allocation-Based Income (Loss) as described above.
For the nine months ended September 30, 2025, net gains from investment activities were driven primarily by mark-to-
market gains primarily relating to our investments in Exact Holdings B.V., USI Insurance Services LLC, and IVI-RMA held
through our consolidated core private equity vehicles. These mark-to-market gains were partially offset by (i) unrealized
losses on certain foreign exchange forward contracts, (ii) mark-to-market losses primarily relating to our investment in PetVet
Care Centers, LLC and Onestream, and (iii) unrealized losses on certain investments held in consolidated CLOs.
The factors that affect each investment strategy vary depending on the nature of the asset class and the valuation
methodology employed. For the nine months ended September 30, 2025, net investment gains (losses) were primarily
generated in the following asset classes:
•Private Equity (including core private equity), which were primarily impacted by overall positive operating
performance of certain portfolio companies. Changes in market multiples varied across regions / sectors used in the
market comparables methodology for the valuation of Level III investments; and
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•Infrastructure, which primarily benefited from the overall positive operating performance of certain infrastructure
assets, partially offset by slightly higher cost of capital assumptions. Changes in market multiples varied across
regions / sectors used in the market comparables methodology for the valuation of Level III investments.
Dividend Income
During the nine months ended September 30, 2026, dividend income was primarily from (i) our investments in 1-800
Contacts, USI Insurance Services LLC (which is subject to a pending sale), April SA, and Viridor Limited, all held through our
consolidated core private equity vehicles and (ii) various investments in certain of our consolidated opportunistic real estate
equity funds. During the nine months ended September 30, 2025, dividend income was primarily from (i) our investments in
1-800 Contacts Inc., April SA, and Atlantic Aviation FBO Inc., held through our consolidated core vehicles and (ii) various
investments in certain of our consolidated opportunistic real estate equity funds.
Significant dividends from portfolio companies and consolidated funds are generally not recurring quarterly dividends,
and while they may occur in the future, their size and frequency are variable. For a discussion of other factors that affected
KKR's dividend income, see “—Analysis of Asset Management Segment Operating Results.”
Interest Income
The decrease in interest income during the nine months ended September 30, 2026, compared to the nine months ended
September 30, 2025, was primarily due to (i) the impact of lower short-term market interest rates, such as SOFR, during the
current period on floating rate credit investments held in consolidated CLOs and certain of our consolidated alternative credit
funds and (ii) investment monetizations at certain consolidated alternative credit funds subsequent to September 30, 2025.
The decrease was partially offset by the impact of closing CLOs that were consolidated subsequent to September 30, 2025.
For a discussion of other factors that affected KKR's interest income, see “—Analysis of Asset Management Segment
Operating Results.”
Interest Expense
The decrease in interest expense during the nine months ended September 30, 2026, compared to the nine months
ended September 30, 2025, was primarily due to the impact of lower short-term market interest rates, such as SOFR, during
the current period on floating rate debt obligations held in consolidated CLOs and at certain consolidated funds and other
investment vehicles. The decrease was partially offset by (i) the impact of closing CLOs that were consolidated subsequent to
September 30, 2025, and (ii) an increase in the amount of borrowings outstanding. For a discussion of other factors that
affected KKR's interest expense, see “—Key Segment and Non-GAAP Performance Measures.”
Expenses
Compensation and Benefits
The decrease in compensation and benefits during the nine months ended September 30, 2026, compared to the nine
months ended September 30, 2025, was primarily due to a lower level of accrued carried interest compensation driven by a
lower level of carried interest income earned in the current period, partially offset by a higher level of equity-based
compensation related to new equity grants in the current period.
Occupancy and Related Charges
The increase in occupancy and related charges during the nine months ended September 30, 2026, compared to the nine
months ended September 30, 2025, was primarily due to new office leases commencing subsequent to September 30, 2025.
General, Administrative and Other
The increase in general, administrative and other expenses during the nine months ended September 30, 2026, compared
to the nine months ended September 30, 2025, was primarily due to (i) a higher level of expenses reimbursable from our
investment funds, (ii) acquisition-related costs, and (iii) a higher level of information technology costs. The increase was
partially offset by the release of a contingent reserve in the current period.
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Consolidated Results of Operations (GAAP Basis - Unaudited) - Insurance
Revenues
For the nine months ended September 30, 2026 and 2025, revenues consisted of the following:
Nine Months Ended | |||||
($ in thousands) | September 30, 2026 | September 30, 2025 | Change | ||
Net Premiums | $1,910,210 | $2,113,216 | $(203,006) | ||
Policy Fees | 1,005,185 | 1,013,182 | (7,997) | ||
Net Investment Income | 6,102,327 | 5,616,405 | 485,922 | ||
Net Investment-Related Gains (Losses) | (597,602) | (845,386) | 247,784 | ||
Other Income | 194,130 | 202,501 | (8,371) | ||
Total Insurance Revenues | $8,614,250 | $8,099,918 | $514,332 | ||
Net Premiums
Net premiums decreased for the nine months ended September 30, 2026, as compared to the nine months ended
September 30, 2025, primarily due to a decrease in new premiums earned on assumed flow reinsurance and pension risk
transfer in the institutional market channel (all with either life contingencies or morbidity risk), offset in part by higher
preneed life insurance premiums. Initial premiums from new business are generally offset by a comparable change in policy
reserves reported within net policy benefits and claims (as discussed below under “Expenses—Net policy benefits and
claims”).
Net Investment Income
Net investment income increased for the nine months ended September 30, 2026, as compared to the nine months
ended September 30, 2025, primarily due to (i) increased average assets under management due to growth in assets in the
institutional and individual market channels as a result of the cumulative impact of new business volumes in the preceding
twelve months, and (ii) an increase in average portfolio yields due to portfolio rotation into higher yielding fixed maturity debt
securities, and investment in alternative asset classes, such as real assets.
Net Investment-Related Gains (Losses)
The components of net investment-related gains (losses) were as follows:
Nine Months Ended | |||||
($ in thousands) | September 30, 2026 | September 30, 2025 | Change | ||
Equity Index Options | $841,931 | $760,717 | $81,214 | ||
Interest Rate Contracts | (639,052) | 136,767 | (775,819) | ||
Equity Futures Contracts | (44,924) | (45,502) | 578 | ||
Foreign Exchange and Other Derivative Contracts | 144,494 | (216,287) | 360,781 | ||
Funds Withheld Payable Embedded Derivatives | 1,634,915 | (652,789) | 2,287,704 | ||
Funds Withheld Receivable Embedded Derivatives | (6,053) | (38,612) | 32,559 | ||
Net Gains (Losses) on Derivative Instruments | 1,931,311 | (55,706) | 1,987,017 | ||
Net Other Investment Gains (Losses) | (2,528,913) | (789,680) | (1,739,233) | ||
Net Investment-Related Gains (Losses) | $(597,602) | $(845,386) | $247,784 | ||
Net Gains (Losses) on Derivative Instruments
The increase in the fair value of embedded derivatives on funds withheld at interest payable for the nine months ended
September 30, 2026 was primarily driven by the changes in the fair value of the underlying investments in the funds withheld
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at interest payable portfolio, which is primarily comprised of fixed maturity securities (designated as trading for accounting
purposes), mortgage and other loan receivables, and real asset investments. The underlying investments in the funds
withheld at interest payable portfolio decreased in value during the nine months ended September 30, 2026 and increased
during the nine months ended September 30, 2025, resulting in a gain and a loss on the related embedded derivative,
respectively. The changes in fair value of the underlying portfolios are primarily due to market interest and credit spread
changes – during the nine months ended September 30, 2026, long-term market interest rates generally increased (for
example, yields on 10 and 30-year U.S. Treasury securities generally increased during the period, ending higher in absolute
terms). In contrast, during the nine months ended September 30, 2025, long-term market interest rates generally decreased
(for example, yields on 10 and 30-year U.S. Treasury securities generally declined during the period, ending lower in absolute
terms). Credit spreads generally widened during both periods.
The decrease in the fair value of interest rate contracts was primarily driven by an increase in long-term market interest
rates during the nine months ended September 30, 2026, as compared to a decrease in long-term market interest rates during
the nine months ended September 30, 2025, resulting in a loss on interest rate contracts for the nine months ended
September 30, 2026, as compared to a gain on interest rate contracts for the nine months ended September 30, 2025.
The increase in the fair value of foreign exchange and other derivative contracts was primarily driven by (i) an
appreciation of the U.S. dollar against the euro and British pound during the nine months ended September 30, 2026, as
compared to a depreciation of the U.S. dollar against the euro and British pound during the nine months ended
September 30, 2025, and (ii) an increase in the notional amount of foreign exchange derivative contracts outstanding.
The increase in the fair value of equity index options was primarily driven by the performance of the underlying indices.
Global Atlantic purchases equity index options to hedge the market risk of embedded derivatives in indexed universal life and
fixed-indexed annuity products (the change in which is accounted for in net policy benefits and claims). The majority of Global
Atlantic's equity index options are based on the S&P 500 Index, which increased during both the nine months ended
September 30, 2026 and 2025. In addition, the average notional amount of equity market contracts outstanding as of
September 30, 2026, increased as compared to September 30, 2025.
Net Other Investment Gains (Losses)
The components of net other investment gains (losses) were as follows:
Nine Months Ended | |||||
($ in thousands) | September 30, 2026 | September 30, 2025 | Change | ||
Realized Gains (Losses) on Investments Not Supporting Asset-Liability Matching Strategies | $— | $43,015 | $(43,015) | ||
Realized Gains (Losses) on Available-for-Sale Fixed Maturity Securities | (469,310) | (1,577,554) | 1,108,244 | ||
(Addition To) Release of Credit Loss Allowances | (389,535) | (175,524) | (214,011) | ||
Impairment of Available-for-Sale Fixed Maturity Securities Due to Intent to Sell | (53,372) | — | (53,372) | ||
Unrealized Gains (Losses) on Fixed Maturity Securities Classified as Trading | (1,394,857) | 601,424 | (1,996,281) | ||
Unrealized Gains (Losses) on Other Investments Accounted Under a Fair-Value Option and Equity Investments | (265,683) | 63,774 | (329,457) | ||
Unrealized Gains (Losses) on Real Assets | 6,142 | 45,126 | (38,984) | ||
Realized Gains (Losses) on Real Assets | (32,202) | 17,757 | (49,959) | ||
Realized Gains (Losses) on Funds Withheld at Interest Payable Portfolio | 155,292 | 80,417 | 74,875 | ||
Realized Gains (Losses) on Funds Withheld at Interest Receivable Portfolio | (15,283) | (67,488) | 52,205 | ||
Foreign Exchange Gains (Losses) on Non-USD Denominated Investments | (86,775) | 223,227 | (310,002) | ||
Other | 16,670 | (43,854) | 60,524 | ||
Net Other Investment-Related Gains (Losses) | $(2,528,913) | $(789,680) | $(1,739,233) | ||
The increase in net other investment-related losses for the nine months ended September 30, 2026, as compared to the
nine months ended September 30, 2025, was primarily due to (i) an increase in unrealized losses on fixed maturity securities
classified as trading due to an increase in long-term market interest rates during the period, (ii) an increase in unrealized
losses on investments accounted under a fair value option and real assets, primarily due to unfavorable changes in the related
market segment multiples, (iii) an increase in foreign exchange losses on non-USD denominated investments due to the
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appreciation of the U.S. dollar against the euro and British pound during the nine months ended September 30, 2026, and an
increase in the notional amount of non-USD denominated investments (largely offset by the change in foreign exchange
derivative contracts noted above under “Net Gains (Losses) on Derivative Instruments”), (iv) an increase in credit loss
allowances on mortgage and other loan receivables and available-for-sale fixed maturity securities during the nine months
ended September 30, 2026, and (v) an impairment to a fixed-maturity security sold shortly after the end of the second quarter
of 2026.
Offsetting this increase was a decrease in realized losses on available-for-sale fixed maturity securities due to a decrease
in portfolio trades during the nine months ended September 30, 2026.
Realized gains (losses) on funds withheld at interest payable portfolio represents investment gains and losses on the
funds withheld investment portfolio ceded to assuming reinsurers. Realized gains increased during the period due to an
increase in realized losses ceded to the assuming reinsurers, generally offsetting the gross net other investment-related gains
(losses) discussed above.
Expenses
Net Policy Benefits and Claims
Net policy benefits and claims decreased for the nine months ended September 30, 2026, as compared to the nine
months ended September 30, 2025, primarily due to (i) the change in the value of embedded derivatives in Global Atlantic’s
fixed indexed annuity products (as discussed above under “—Consolidated Results of Operations (GAAP Basis)—Revenues—
Net investment-related gains (losses)”, Global Atlantic purchases equity index options in order to hedge this risk, the fair value
changes of which are accounted for in gains (losses) on derivative instruments, and generally offset the change in embedded
derivative fair value reported in net policy benefits and claims), (ii) a decrease in new business flows from pension risk
transfer with either life contingencies in the nine months ended September 30, 2026, as compared to the nine months ended
September 30, 2025, (iii) a decrease in market risk benefits gains for the nine months ended September 30, 2026, as
compared to the nine months ended September 30, 2025, which was largely driven by an increase in long-term market
interest rates (such as yields on 10- and 30-year U.S. Treasury securities) for the nine months ended September 30, 2026, as
compared to a decrease in long-term market interest rates during the nine months ended September 30, 2025, and (iv) a
decrease in net favorable impact from assumption review (as discussed below.)
Partially offsetting these decreases was the impact of higher average funding costs due to higher crediting rates and the
ordinary-course run-off of older business originated in a lower interest rate environment.
For the nine months ended September 30, 2026, there was a net unfavorable assumption review and other related items
impact of $23 million on net policy benefits and claims, which was primarily due to the (i) unfavorable impact of long-term
interest rates on certain lapse assumptions and (ii) net unfavorable changes to mortality assumptions, offset in part by the
favorable impact of lower projected option costs on fixed-indexed annuity accumulation products.
For the nine months ended September 30, 2025, there was a net favorable assumption review impact of $63.9 million on
net policy benefits and claims, which was primarily due to (i) higher expected yield assumptions for certain interest-sensitive
life products, (ii) favorable expected surrender and persistency assumption changes for certain income annuity, variable
annuity, and life insurance products, and (iii) a decrease in expected morbidity assumptions on long-term care riders for
certain fixed annuity products, offset in part by (i) higher mortality rate assumptions for certain life insurance products, (ii) a
change in the activation assumption related to certain benefit riders on fixed-indexed annuities, and (iii) higher surrender rate
assumptions for certain assumed annuity products.
Amortization of Policy Acquisition Costs
Amortization of policy acquisition costs increased for the nine months ended September 30, 2026, as compared to the
nine months ended September 30, 2025, primarily due to an increase in amortization of deferred acquisition costs due to
growth in annuity and preneed insurance new business volumes over the preceding year, offset in part by a decrease in
amortization on cost-of-reinsurance assets due to the impact of remeasurement losses in the current period.
Interest Expense
Interest expense increased for the nine months ended September 30, 2026, as compared to the nine months ended
September 30, 2025, primarily due to (i) a higher weighted average interest rate on subordinated debt outstanding and (ii)
higher levels of outstanding debt of consolidated special purpose vehicles.
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Policy and Other Operating Expense
Policy and other operating expense decreased for the nine months ended September 30, 2026, as compared to the nine
months ended September 30, 2025, primarily due to (i) a decrease in commission expense due to a decrease in individual
channel new business volumes, primarily in fixed-rate annuities, as compared against the nine months ended September 30,
2025, and (ii) a decrease in compensation expense. Offsetting these decreases was an increase in (i) amortization of certain
insurance distribution intangibles, and (ii) a higher level of information technology costs.
Other Consolidated Results of Operations (GAAP Basis - Unaudited)
Income Tax Expense (Benefit)
Income tax expense increased for the nine months ended September 30, 2026, as compared to the nine months ended
September 30, 2025, primarily driven by the higher level of income before taxes attributable to KKR common stockholders
partially offset by a higher level of certain income tax deductions and credits. For a discussion of factors that impacted KKR's
tax provision, see Note 18 “Income Taxes” in our financial statements included elsewhere in this report.
Net Income (Loss) Attributable to Redeemable Noncontrolling Interests
Net income (loss) attributable to redeemable noncontrolling interests relates primarily to net income (loss) attributable
to third-party limited partner interests in consolidated investment funds and other investment vehicles when the
noncontrolling interests have redemption features that are not solely within the control of KKR. Net income (loss) attributable
to redeemable noncontrolling interests decreased for the nine months ended September 30, 2026, as compared to the nine
months ended September 30, 2025, primarily due to a lower level of investment income from investment activities at these
consolidated investment funds and other investment vehicles in the current period.
Net Income (Loss) Attributable to Noncontrolling Interests
Net income (loss) attributable to noncontrolling interests relates primarily to net income (loss) attributable to (i) non-
redeemable third-party limited partner interests in consolidated investment funds and other investment vehicles and (ii)
exchangeable securities representing ownership interests in KKR Group Partnership until they are exchanged for common
stock of KKR & Co. Inc. Net income (loss) attributable to noncontrolling interests decreased for the nine months ended
September 30, 2026, as compared to the nine months ended September 30, 2025, primarily due to a lower level of
investment income from investment activities at these consolidated investment funds and other investment vehicles, partially
offset by a higher level of income attributable to exchangeable securities in the current period.
Net Income (Loss) Attributable to KKR & Co. Inc.
Net income (loss) attributable to KKR & Co. Inc. for the nine months ended September 30, 2026, increased compared to
the nine months ended September 30, 2025, primarily due to (i) a higher level of asset management fee related income, (ii) a
lower level of insurance realized investment losses on available-for-sale fixed maturity securities in the current period, and (iii)
the favorable impact of higher long-term market interest rates on market risk benefits and policy liabilities carried at fair
value, which were partially offset by a lower level of capital allocation-based income from our asset management business.
Consolidated Statements of Financial Condition (GAAP Basis - Unaudited)
Please see our consolidated statements of financial condition on a GAAP basis as of September 30, 2026 and
December 31, 2025 in our financial statements included in this report.
KKR & Co. Inc. Stockholders’ Equity - Common Stock decreased from December 31, 2025 primarily due to (i) unrealized
losses on available-for-sale securities from Global Atlantic that are recorded in other comprehensive income, (ii) common
stock repurchases and (iii) dividends to common and preferred stockholders, which were partially offset by net income
attributable to KKR & Co. Inc. common stockholders.
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Consolidated Statements of Cash Flows (GAAP Basis - Unaudited)
The following is a discussion of our consolidated cash flows for the nine months ended September 30, 2026 and 2025.
You should read this discussion in conjunction with the financial statements and related notes included elsewhere in this
report.
The consolidated statements of cash flows include the cash flows of our consolidated entities, which include certain
consolidated investment funds, CLOs and certain variable interest entities formed by Global Atlantic notwithstanding the fact
that we may hold only a minority economic interest in those investment funds and CFEs. The assets of our consolidated
investment funds and CFEs, on a gross basis, can be substantially larger than the assets of our business and, accordingly, could
have a substantial effect on the cash flows reflected in our consolidated statements of cash flows. The primary cash flow
activities of our consolidated funds and CFEs involve: (i) capital contributions from fund investors; (ii) using the capital of fund
investors to make investments; (iii) financing certain investments with indebtedness; (iv) generating cash flows through the
realization of investments; and (v) distributing cash flows from the realization of investments to fund investors. Because our
consolidated investment funds are treated as investment companies for accounting purposes, certain of these cash flow
amounts are included in our cash flows from operations.
Net Cash Provided (Used) by Operating Activities
Our net cash provided (used) by operating activities was $7.1 billion and $5.4 billion during the nine months ended
September 30, 2026 and 2025, respectively. Our operating activities primarily included: (i) investments purchased (asset
management and strategic holdings), net of proceeds from investments (asset management and strategic holdings) of
$1.0 billion and $(2.0) billion during the nine months ended September 30, 2026 and 2025, respectively, (ii) net realized gains
(losses) on investments (asset management and strategic holdings) of $1.6 billion and $601.3 million during the nine months
ended September 30, 2026 and 2025, respectively, (iii) change in unrealized gains (losses) on investments (asset management
and strategic holdings) of $(1.3) billion and $2.4 billion during the nine months ended September 30, 2026 and 2025,
respectively, (iv) capital allocation-based income (loss) (asset management and strategic holdings) of $2.4 billion and $2.7
billion during the nine months ended September 30, 2026 and 2025, respectively, (v) net investment and policy liability-
related gains (losses) (insurance) of $(1.2) billion and $(2.7) billion during the nine months ended September 30, 2026 and
2025, respectively, and (vi) interest credited to policyholder account balances (net of policy fees) (insurance) of $4.4 billion
and $3.6 billion during the nine months ended September 30, 2026 and 2025, respectively. Investment funds are investment
companies under GAAP and reflect their investments and other financial instruments at fair value.
Net Cash Provided (Used) by Investing Activities
Our net cash provided (used) by investing activities was $1.7 billion and $(12.0) billion during the nine months ended
September 30, 2026 and 2025, respectively. Our investing activities primarily included: (i) investments purchased (insurance),
net of proceeds from investments (insurance), of $2.0 billion and $(11.8) billion during the nine months ended September 30,
2026 and 2025, respectively, (ii) acquisitions, net of cash acquired, of $(176.6) million and $(146.3) million during the nine
months ended September 30, 2026 and 2025, respectively, and (iii) the purchase of fixed assets of $(115.4) million and
$(126.9) million during the nine months ended September 30, 2026 and 2025, respectively.
Net Cash Provided (Used) by Financing Activities
Our net cash provided (used) by financing activities was $(3.3) billion and $14.0 billion during the nine months ended
September 30, 2026 and 2025, respectively. Our financing activities primarily included: (i) contributions from, net of
distributions to, our noncontrolling and redeemable noncontrolling interests of $(664.0) million and $2.3 billion during the
nine months ended September 30, 2026 and 2025, respectively, (ii) proceeds received, net of repayment of debt obligations,
of $1.0 billion and $2.2 billion during the nine months ended September 30, 2026 and 2025, respectively, (iii) proceeds from
the issuance of Series D Mandatory Convertible Preferred Stock (net of issuance cost) of $2.5 billion during the nine months
ended September 30, 2025, (iv) additions to, net of withdrawals from, contractholder deposit funds (insurance) of
$(2.4) billion and $7.6 billion during the nine months ended September 30, 2026 and 2025, respectively, (v) common stock
dividends of $(514.9) million and $(485.1) million during the nine months ended September 30, 2026 and 2025, respectively,
and (vi) Series D Mandatory Convertible Preferred Stock Dividends of $(121.3) million and $(78.2) million during the nine
months ended September 30, 2026 and 2025, respectively.
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Analysis of Segment Operating Results
The following is a discussion of the results of our business on a segment basis. You should read this discussion in
conjunction with the information included under “—Analysis of Non-GAAP Performance Measures” and the financial
statements and related notes included elsewhere in this report. See “Risk Factors” in our Annual Report and “—Business
Environment” in this report for more information about factors that may impact our business, financial performance,
operating results, and valuations.
Analysis of Asset Management Segment Operating Results
The following tables set forth information regarding KKR's asset management segment operating results for the three
months ended September 30, 2026 and 2025.
Effective beginning in the second quarter of 2026, KKR has reported realized performance revenues from its K-Series
Private Equity vehicles in Fee Related Performance Revenues. Historically, these realized performance revenues were included
within Realized Performance Income. For the three months ended September 30, 2026, approximately $220 million were
reported in fee related performance revenues in fee related earnings. For the three months ended September 30, 2025,
realized performance revenues from its K-Series Private Equity vehicles of approximately $150 million were reported in net
realized performance income. This change in classification reflects how management currently manages the business and
aligns KKR's presentation with the prevailing classification disclosed by other publicly listed alternative asset managers, which
we believe should enhance comparability for investors. KKR has not recast prior-period amounts, as the impact of the
reclassification is not material to previously reported results. Additionally, the change in classification had no impact on total
segment revenues, total segment earnings, consolidated GAAP net income, or Adjusted Net Income.
Three Months Ended | |||||
($ in thousands) | September 30, 2026 | September 30, 2025 | Change | ||
Management Fees | $1,201,108 | $1,063,553 | $137,555 | ||
Transaction and Monitoring Fees, Net | 327,864 | 328,124 | (260) | ||
Fee Related Performance Revenues | 326,347 | 73,177 | 253,170 | ||
Fee Related Compensation | (324,680) | (256,350) | (68,330) | ||
Other Operating Expenses | (214,669) | (175,568) | (39,101) | ||
Fee Related Earnings | 1,315,970 | 1,032,936 | 283,034 | ||
Realized Performance Income | 602,315 | 930,659 | (328,344) | ||
Realized Performance Income Compensation | (451,737) | (697,994) | 246,257 | ||
Realized Investment Income | 150,171 | 4,436 | 145,735 | ||
Realized Investment Income Compensation | (22,526) | (665) | (21,861) | ||
Asset Management Segment Earnings | $1,594,193 | $1,269,372 | $324,821 | ||
Management Fees
The following table presents management fees by business line:
Three Months Ended | |||||
($ in thousands) | September 30, 2026 | September 30, 2025 | Change | ||
Management Fees | |||||
Private Equity | $466,113 | $394,380 | $71,733 | ||
Real Assets | 394,904 | 350,225 | 44,679 | ||
Credit and Liquid Strategies | 340,091 | 318,948 | 21,143 | ||
Total Management Fees | $1,201,108 | $1,063,553 | $137,555 | ||
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The increase in Private Equity management fees was primarily attributable to (i) management fees contributed by Arctos
funds following the acquisition of Arctos during the second quarter of 2026, (ii) management fees earned on new capital
raised and net asset appreciation over the past twelve months from our private equity K-Series vehicles, net of certain
revenue sharing arrangements, and (iii) management fees commencing at Asian Fund V due to fees turning on during the
current quarter. The increase was partially offset by a decrease in management fees earned from Asian Fund IV as a result of
entering its post-investment period in the second quarter of 2026, and now paying feesbased on invested capital rather than
committed capital and at a lower fee rate. During the three months ended September 30, 2026, no management fees were
earned on new capital raised that were retroactive to the start of the relevant fund's investment period.
The increase in Real Assets management fees was primarily attributable to (i) management fees earned on new capital
raised and net asset appreciation from our infrastructure K-Series vehicles, net of certain revenue sharing arrangements, and
(ii) management fees commencing at Asia Infrastructure III in the fourth quarter of 2025. The increase was partially offset by a
lower level of management fees earned from Global Infrastructure Investors V, primarily due to a higher level of management
fees earned on new capital raised in the prior period that was retroactive to the start of the fund’s investment period.
The increase in Credit and Liquid Strategies management fees was primarily attributable to (i) capital deployment over
the past twelve months in certain alternative credit strategy accounts, for which the fee base is invested capital, (ii)
management fees earned from new CLO issuances in the U.S. and Europe over the past twelve months and (iii) a higher level
of management fees earned from Global Atlantic primarily due to the growth in assets from inflows.
Transaction and Monitoring Fees, Net
The following table presents transaction and monitoring fees, net by business line:
Three Months Ended | |||||
($ in thousands) | September 30, 2026 | September 30, 2025 | Change | ||
Transaction and Monitoring Fees, Net | |||||
Private Equity | $15,944 | $30,327 | $(14,383) | ||
Real Assets | 21,628 | 20,290 | 1,338 | ||
Credit and Liquid Strategies | 663 | 1,738 | (1,075) | ||
Capital Markets | 289,629 | 275,769 | 13,860 | ||
Total Transaction and Monitoring Fees, Net | $327,864 | $328,124 | $(260) | ||
Our Private Equity, Real Assets, and Credit and Liquid Strategies business lines earn transaction and monitoring fees from
portfolio companies, and under the terms of the management agreements with certain of our investment funds, we are
required to share all or a portion of such fees with our fund investors. For most of our investment funds, transaction and
monitoring fees are credited against fund management fees up to 100% of the amount of the transaction and monitoring fees
attributable to that investment fund, which results in a decrease of our transaction and monitoring fees. Our Capital Markets
business line earns transaction fees, which are generally not shared with fund investors.
The decrease in Private Equity transaction and monitoring fees, net was primarily due to the decrease in the level of
capital invested in the current period.
The increase in Capital Markets transaction fees was primarily due to an increase in the transaction size of capital markets
transactions for the three months ended September 30, 2026, compared to the three months ended September 30, 2025.
Overall, we completed 104 capital markets transactions for the three months ended September 30, 2026, of which 11
represented equity offerings and 93 represented debt offerings, as compared to 114 capital markets transactions for the
three months ended September 30, 2025, of which 18 represented equity offerings and 96 represented debt offerings. We
earn fees in connection with underwriting, syndication, and other capital markets services. While each of the capital markets
transactions that we undertake in this business line is separately negotiated, our fee rates are generally higher with respect to
underwriting or syndicating equity offerings than with respect to debt offerings, and the amount of fees that we earn for
similar transactions generally correlates with overall transaction sizes.
Our capital markets fees are generated in connection with activity involving our private equity, real assets, and credit
business lines as well as from third-party companies. For the three months ended September 30, 2026, approximately 19% of
our transaction fees in our Capital Markets business line were earned from unaffiliated third parties as compared to 16% for
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the three months ended September 30, 2025. Our transaction fees are comprised of fees earned in North America, Europe,
and the Asia-Pacific region. For the three months ended September 30, 2026, approximately 32% of our transaction fees were
generated outside of North America as compared to approximately 41% for the three months ended September 30, 2025. Our
Capital Markets business line is dependent on the overall capital markets environment, which is influenced by equity prices,
credit spreads, and volatility. Our Capital Markets business line does not generate monitoring fees.
See “—Analysis of Asset Management Segment Operating Results—Capital Invested” for more information about capital
invested by business line. See “Risk Factors” in our Annual Report and “—Business Environment” in this report for more
information about the factors that may impact our business, financial performance, operating results, and valuations.
Fee Related Performance Revenues
The following table presents fee related performance revenues by business line:
Three Months Ended | |||||
($ in thousands) | September 30, 2026 | September 30, 2025 | Change | ||
Fee Related Performance Revenues | |||||
Private Equity | $219,743 | $— | $219,743 | ||
Real Assets | 100,168 | 55,373 | 44,795 | ||
Credit and Liquid Strategies | 6,436 | 17,804 | (11,368) | ||
Total Fee Related Performance Revenues | $326,347 | $73,177 | $253,170 | ||
Fee related performance revenues represent performance revenues that are (i) expected to be received from our
investment funds, investment vehicles, and accounts on a more recurring basis and (ii) not dependent on a realization event
involving investments held by the investment fund, vehicle, or account.
The increase in fee related performance revenues for the three months ended September 30, 2026 compared to the prior
period was primarily due to (i) performance revenues from K-Series Private Equity vehicles being reported in fee related
performance revenues, beginning in 2026, and (ii) a higher level of performance revenues earned from one of our K-Series
infrastructure vehicles in our Real Assets business line. The increase was partially offset by no performance revenues earned
from FSK in our Credit and Liquid Strategies business line in the current period. Beginning with the second quarter of 2026,
KKR has agreed to waive 100% of its portion of the FSK incentive fee for the next four consecutive quarters.
Fee Related Compensation
The increase in fee related compensation for the three months ended September 30, 2026 compared to the prior period
was primarily due to a higher level of compensation recorded in connection with the higher level of fee related revenues.
Other Operating Expenses
The increase in other operating expenses for the three months ended September 30, 2026 compared to the prior period
was primarily due to a higher level of occupancy, information technology, and corporate general and administrative costs.
Fee Related Earnings
The increase in fee related earnings for the three months ended September 30, 2026 compared to the prior period was
primarily due to (i) a higher level of management fees across our Private Equity, Real Assets, and Credit and Liquid Strategies
business lines and (ii) a higher level of fee related performance revenues earned in our Private Equity and Real Assets business
lines, partially offset by a higher level of fee related compensation and other operating expenses, as described above.
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Realized Performance Income
Realized performance income includes (i) realized carried interest from our carry earning funds and (ii) incentive fees not
included in Fee Related Performance Revenues.
The following table presents realized performance income by business line:
Three Months Ended | |||||
($ in thousands) | September 30, 2026 | September 30, 2025 | Change | ||
Realized Performance Income | |||||
Private Equity | $489,681 | $702,475 | $(212,794) | ||
Real Assets | 103,083 | 197,593 | (94,510) | ||
Credit and Liquid Strategies | 9,551 | 30,591 | (21,040) | ||
Total Realized Performance Income | $602,315 | $930,659 | $(328,344) | ||
Three Months Ended | |||||
($ in thousands) | September 30, 2026 | September 30, 2025 | Change | ||
Private Equity | |||||
Global Impact Fund II | $333,193 | $— | $333,193 | ||
Americas Fund XII | — | 55,824 | (55,824) | ||
Private Equity K-Series | — | 152,303 | (152,303) | ||
Asian Fund IV | — | 357,526 | (357,526) | ||
Other | 156,488 | 136,822 | 19,666 | ||
Total Realized Performance Income | $489,681 | $702,475 | $(212,794) | ||
Realized performance income in our Private Equity business line for the three months ended September 30, 2026
consisted primarily of realized proceeds from the sale of our investment in CoolIT Systems held by Global Impact Fund II.
Realized performance income in our Private Equity business line for the three months ended September 30, 2025
consisted primarily of (i) realized proceeds from the sale of our investment in Seiyu Group held by Asian Fund IV and (ii)
performance income from one of our private equity K-Series vehicles.
Three Months Ended | |||||
($ in thousands) | September 30, 2026 | September 30, 2025 | Change | ||
Real Assets | |||||
Global Infrastructure Investors IV | $100,000 | $— | $100,000 | ||
Global Infrastructure Investors III | — | 68,025 | (68,025) | ||
Asia Pacific Infrastructure Investors | — | 110,000 | (110,000) | ||
Other | 3,083 | 19,568 | (16,485) | ||
Total Realized Performance Income | $103,083 | $197,593 | $(94,510) | ||
Realized performance income in our Real Assets business line for the three months ended September 30, 2026 consisted
primarily of realized proceeds from the sale of our investment in Ocean Yield ASA held by Global Infrastructure Investors IV.
Realized performance income in our Real Assets business line for the three months ended September 30, 2025 consisted
primarily of realized proceeds from the sale of our investment in Pinnacle Towers (infrastructure: telecommunications
infrastructure sector) held by Asia Pacific Infrastructure Investors and Metronet held by Global Infrastructure Investors III.
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Three Months Ended | |||||
($ in thousands) | September 30, 2026 | September 30, 2025 | Change | ||
Credit and Liquid Strategies | |||||
Lending Partners III | $961 | $2,628 | $(1,667) | ||
Alternative Credit Vehicles and Other | 8,590 | 27,963 | (19,373) | ||
Total Realized Performance Income | $9,551 | $30,591 | $(21,040) | ||
Realized performance income in our Credit and Liquid Strategies business line for the three months ended September
30, 2026 and 2025 consisted primarily of realized proceeds at Lending Partners III and certain other alternative credit funds.
Realized Performance Income Compensation
The decrease in realized performance income compensation for the three months ended September 30, 2026 compared
to the prior period was primarily due to a lower level of compensation recorded in connection with the lower level of realized
performance income.
Realized Investment Income
The following table presents realized investment income in our Principal Activities business line:
Three Months Ended | |||||
($ in thousands) | September 30, 2026 | September 30, 2025 | Change | ||
Total Realized Investment Income | $150,171 | $4,436 | $145,735 | ||
The amount of realized investment income depends on the transaction activity of our funds and Asset Management
segment balance sheet, which can vary from period to period.
For the three months ended September 30, 2026, realized investment income was primarily comprised of a realized gain
from the sale of our investment in BridgeBio Pharma, Inc. offset by (i) a realized loss on one of our investments in a real estate
investment vehicle and (ii) realized losses from the sales of various revolving credit facilities in our Capital Markets business
line.
For the three months ended September 30, 2025, realized investment income was primarily comprised of (i) interest
income primarily from our investment in CLOs and (ii) realized gains from the sale of our investments in Kokusai Electric
Corporation and Metronet Holdings, LLC (infrastructure: telecommunications infrastructure sector). Offsetting these realized
gains were realized losses, the most significant of which were (i) a realized loss related to a structured multi-asset investment
vehicle and (ii) realized losses from the sale of various revolving credit facilities.
Realized investment income includes the net income (loss) from KKR Capstone. For the three months ended September
30, 2026, total fees attributable to KKR Capstone were $35.3 million and total expenses attributable to KKR Capstone were
$30.8 million. For KKR Capstone-related adjustments in reconciling segment revenues and expenses to GAAP revenues and
expenses see Note 21 “Segment Reporting” in our financial statements.
Realized Investment Income Compensation
The increase in realized investment income compensation for the three months ended September 30, 2026 compared to
the prior period is primarily due to a higher level of compensation recorded in connection with the higher level of realized
investment income.
Operating and Capital Metrics
See also “Fund Performance Metrics” for more information about our investment funds, vehicles and accounts across our
Private Equity, Real Assets and Credit and Liquid Strategies business lines, including investment performance, capital
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commitments, uncalled capital commitments, and invested capital of each. See also “Risk Factors” in our Annual Report and
“—Business Environment” in this report for more information about the factors that may impact our business, financial
performance, operating results and valuations.
The following tables present our key Asset Management segment operating and capital metrics:
As of | |||||
($ in millions) | September 30, 2026 | June 30, 2026 | Change | ||
Assets Under Management | $804,388 | $796,487 | $7,901 | ||
Fee Paying Assets Under Management | $647,887 | $638,403 | $9,484 | ||
Uncalled Commitments | $145,638 | $142,656 | $2,982 | ||
Three Months Ended | |||||
($ in millions) | September 30, 2026 | September 30, 2025 | Change | ||
Capital Invested | $20,132 | $26,100 | $(5,968) | ||
Assets Under Management
Private Equity
The following table reflects the changes in the AUM of our Private Equity business line from June 30, 2026 to September
30, 2026:
($ in millions) | |
June 30, 2026 | $254,736 |
New Capital Raised | 4,064 |
Distributions and Other | (5,248) |
Redemptions | (175) |
Change in Value | 2,715 |
September 30, 2026 | $256,092 |
AUM of our Private Equity business line was $256.1 billion at September 30, 2026, an increase of $1.4 billion, compared
to $254.7 billion at June 30, 2026.
The increase was primarily attributable to (i) new capital raised from our private equity K-Series vehicles and Asian Fund V
and (ii) appreciation in investment value primarily from North America Fund XIV, our Core Investment Vehicles, and North
America Fund XIII. Partially offsetting the increase were distributions to fund investors primarily as a result of realized
proceeds, most notably from Global Impact Fund II and our Core Investment Vehicles.
For the three months ended September 30, 2026, the value of our traditional private equity investment portfolio had no
significant change in value. This was comprised of a 1% increase in value of our privately held investments and a 10% decrease
in share prices of publicly held investments. For the three months ended September 30, 2026, the value of our growth equity
investment portfolio (including our global impact strategy) increased by 3% and core private equity investment portfolio had
no significant change in value.
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Real Assets
The following table reflects the changes in the AUM of our Real Assets business line from June 30, 2026 to September 30,
2026:
($ in millions) | |
June 30, 2026 | $210,919 |
New Capital Raised | 6,704 |
Distributions and Other | (8,695) |
Redemptions | (170) |
Change in Value | 2,961 |
September 30, 2026 | $211,719 |
AUM of our Real Assets business line was $211.7 billion at September 30, 2026, an increase of $0.8 billion, compared to
$210.9 billion at June 30, 2026.
The increase was primarily attributable to (i) new capital raised from our infrastructure K-Series vehicles and Helix Digital
Infrastructure, and, to a lesser extent, (ii) the appreciation in investment value from Global Infrastructure Investors IV, and our
infrastructure K-Series vehicles. Partially offsetting the increase were distributions to fund investors as a result of realized
proceeds, most notably from Global Infrastructure Investors IV and payments to Global Atlantic policyholders.
For the three months ended September 30, 2026, the value of our infrastructure investment portfolio increased 4% and
our opportunistic real estate equity investment portfolio decreased 2%.
Credit and Liquid Strategies
The following table reflects the changes in the AUM of our Credit and Liquid Strategies business line from June 30, 2026
to September 30, 2026:
($ in millions) | |
June 30, 2026 | $330,832 |
New Capital Raised | 14,403 |
Distributions and Other | (6,657) |
Redemptions | (1,811) |
Change in Value | (190) |
September 30, 2026 | $336,577 |
AUM of our Credit and Liquid Strategies business line was $336.6 billion at September 30, 2026, an increase of $5.8
billion, compared to $330.8 billion at June 30, 2026.
The increase was primarily attributable to new capital raised from Global Atlantic inflows and various alternative credit
investment funds. Partially offsetting the increase were (i) payments to Global Atlantic policyholders and (ii) distributions to,
and redemptions from, fund investors at certain alternative and leveraged credit funds.
See “Risk Factors” in our Annual Report and “—Business Environment” in this report for more information about the
factors that may impact our business, financial performance, operating results and valuations.
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Fee Paying Assets Under Management
Private Equity
The following table reflects the changes in the FPAUM of our Private Equity business line from June 30, 2026 to
September 30, 2026:
($ in millions) | |
June 30, 2026 | $168,137 |
New Capital Raised | 4,328 |
Distributions and Other | (2,220) |
Redemptions | (175) |
Change in Value | 532 |
September 30, 2026 | $170,602 |
FPAUM of our Private Equity business line was $170.6 billion at September 30, 2026, an increase of $2.5 billion, compared
to $168.1 billion at June 30, 2026.
The increase was primarily attributable to new capital raised from our private equity K-Series vehicles and Asian Fund V.
Partially offsetting the increase were distributions to fund investors primarily as a result of realized proceeds, most notably
from our Core Investment Vehicles.
Uncalled capital commitments from private equity funds and other investment vehicles from which KKR is currently not
earning management fees amounted to approximately $22.7 billion at September 30, 2026, which includes capital
commitments reserved for follow-on investments for funds that have completed their investment periods. This capital will
generally begin to earn management fees upon deployment of the capital or upon the commencement of the fund's
investment period. The average annual management fee rate associated with this capital is approximately 1.1%. The date on
which we begin to earn fees (as specified above) is not guaranteed to occur and may not occur for an extended period of
time. If and when such management fees are earned, a portion of existing FPAUM may cease paying fees or pay lower fees,
thus offsetting a portion of any new management fees earned.
Real Assets
The following table reflects the changes in the FPAUM of our Real Assets business line from June 30, 2026 to September
30, 2026:
($ in millions) | |
June 30, 2026 | $175,298 |
New Capital Raised | 6,596 |
Distributions and Other | (6,826) |
Redemptions | (170) |
Change in Value | 1,587 |
September 30, 2026 | $176,485 |
FPAUM of our Real Assets business line was $176.5 billion at September 30, 2026, an increase of $1.2 billion, compared to
$175.3 billion at June 30, 2026.
The increase was primarily attributable to (i) new capital raised from our infrastructure K-Series vehicles and Diversified
Core Infrastructure Fund and, to a lesser extent, (ii) the appreciation in investment value from our infrastructure K-Series
vehicles. Partially offsetting the increase were distributions to fund investors as a result of realized proceeds, most notably
from Global Infrastructure Investors IV and payments to Global Atlantic policyholders.
Uncalled capital commitments from real assets investment funds and other investment vehicles from which KKR is
currently not earning management fees amounted to approximately $21.5 billion at September 30, 2026, which includes
capital commitments reserved for follow-on investments for funds that have completed their investment periods. This capital
will generally begin to earn management fees upon deployment of the capital or upon the commencement of the fund's
investment period. The average annual management fee rate associated with this capital is approximately 1.1%. The date on
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which we begin to earn fees (as specified above) is not guaranteed to occur and may not occur for an extended period of
time. If and when such management fees are earned, a portion of existing FPAUM may cease paying fees or pay lower fees,
thus offsetting a portion of any new management fees earned.
Credit and Liquid Strategies
The following table reflects the changes in the FPAUM of our Credit and Liquid Strategies business line from June 30, 2026
to September 30, 2026:
($ in millions) | |
June 30, 2026 | $294,968 |
New Capital Raised | 14,400 |
Distributions and Other | (6,323) |
Redemptions | (1,811) |
Change in Value | (434) |
September 30, 2026 | $300,800 |
FPAUM of our Credit and Liquid Strategies business line was $300.8 billion at September 30, 2026, an increase of $5.8
billion, compared to $295.0 billion at June 30, 2026.
The increase was primarily attributable to new capital raised from Global Atlantic inflows and deployment at various
alternative credit investment funds. Partially offsetting the increase were (i) payments to Global Atlantic policyholders and (ii)
distributions to, and redemptions from, fund investors at certain alternative and leveraged credit funds.
Uncalled capital commitments from credit investment funds from which KKR is currently not earning management fees
amounted to approximately $30.6 billion at September 30, 2026, which includes capital commitments reserved for follow-on
investments for funds that have completed their investment periods. This capital will generally begin to earn management
fees upon deployment of the capital or upon the commencement of the fund's investment period. The average annual
management fee rate associated with this capital is approximately 0.6%. The date on which we begin to earn fees is not
guaranteed to occur and may not occur for an extended period of time. If and when such management fees are earned, a
portion of existing FPAUM may cease paying fees or pay lower fees, thus offsetting a portion of any new management fees
earned.
See “Risk Factors” in our Annual Report and “—Business Environment” in this report for more information about the
factors that may impact our business, financial performance, operating results and valuations.
Uncalled Commitments
Private Equity
As of September 30, 2026, our Private Equity business line had $64.8 billion of remaining uncalled commitments that
could be called for investments in new transactions as compared to $64.9 billion as of June 30, 2026. The decrease was
primarily attributable to capital called from fund investors to make investments during the period, partially offset by new
capital commitments from fund investors.
Real Assets
As of September 30, 2026, our Real Assets business line had $47.7 billion of remaining uncalled commitments that could
be called for investments in new transactions as compared to $45.8 billion as of June 30, 2026. The increase was primarily
attributable to new capital commitments from fund investors, which was partially offset by capital called from fund investors
to make investments during the period.
Credit and Liquid Strategies
As of September 30, 2026, our Credit and Liquid Strategies business line had $33.1 billion of remaining uncalled
commitments that could be called for investments in new transactions as compared to $32.0 billion as of June 30, 2026. The
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increase was primarily attributable to new capital commitments from fund investors, partially offset by capital called from
fund investors to make investments during the period.
Capital Invested
Private Equity
For the three months ended September 30, 2026, our Private Equity business line had $3.3 billion of capital invested as
compared to $6.0 billion for the three months ended September 30, 2025. The decrease was driven primarily by a $1.6 billion
decrease in capital invested in our core investment vehicles and a $0.9 billion decrease in capital invested in our private equity
strategy. During the three months ended September 30, 2026, 97% of capital deployed in private equity (including core and
growth equity investments which includes impact investments) was in transactions in North America, and 3% was in the Asia-
Pacific region. The number of large private equity investments made in any quarterly or year-to-date period is volatile and,
consequently, a significant amount of capital invested in one period or a few periods may not be indicative of a similar level of
capital deployment in future periods.
Real Assets
For the three months ended September 30, 2026, our Real Assets business line had $8.4 billion of capital invested as
compared to $9.4 billion for the three months ended September 30, 2025. The decrease was driven primarily by a $0.5 billion
decrease in capital invested in our infrastructure strategy and a $0.4 billion decrease in capital invested in our real estate
strategy. During the three months ended September 30, 2026, 72% of capital deployed in real assets was in transactions in
North America, 16% was in the Asia-Pacific region, and 12% was in Europe. The number of large real assets investments made
in any quarterly or year-to-date period is volatile and, consequently, a significant amount of capital invested in one period or a
few periods may not be indicative of a similar level of capital deployment in future periods.
Credit and Liquid Strategies
For the three months ended September 30, 2026, our Credit and Liquid Strategies business line had $8.4 billion of capital
invested as compared to $10.8 billion for the three months ended September 30, 2025. The decrease was driven primarily by
a lower level of capital deployed across our alternative credit strategies, most notably private credit. During the three months
ended September 30, 2026, 87% of capital deployed was in transactions in North America, 10% was in Europe, and 3% was in
the Asia-Pacific region.
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Analysis of Insurance Segment Operating Results
The following table sets forth information regarding KKR's insurance segment operating results for the three months
ended September 30, 2026 and 2025.
Effective beginning in the first quarter of 2026, the information regularly provided to management for the Insurance
Segment was modified to reclassify certain operating expenses from “General, Administrative and Other” to “Net Cost of
Insurance.” Prior period segment information has been recast to conform to the current period presentation. This
reclassification had no impact on Insurance Operating Earnings.
Three Months Ended | |||||
($ in thousands) | September 30, 2026 | September 30, 2025 | Change | ||
Net Investment Income | $1,946,621 | $1,835,025 | $111,596 | ||
Net Cost of Insurance | (1,551,282) | (1,353,141) | (198,141) | ||
General, Administrative and Other | (165,066) | (177,231) | 12,165 | ||
Insurance Operating Earnings | $230,273 | $304,653 | $(74,380) | ||
Net Investment Income
Net investment income increased for the three months ended September 30, 2026, as compared to the three months
ended September 30, 2025, primarily due to (i) increased average assets under management from the cumulative impact of
new business volume growth, (ii) realization of investments, and (iii) higher average portfolio yields due to repositioning the
portfolio into higher yielding fixed maturity debt securities and investments in alternative asset classes, such as real assets.
Net Cost of Insurance
Net cost of insurance increased for the three months ended September 30, 2026, as compared to the three months
ended September 30, 2025, primarily due to (i) growth in reserves in the institutional and individual market channels as a
result of the cumulative impact of new business volumes in the current and preceding quarters, (ii) higher average funding
costs due to higher crediting rates and the routine run-off of older business originated in a lower interest rate environment,
and (iii) the unfavorable impact from annual assumption review and other related items.
General, Administrative and Other Expenses
General, administrative and other expenses decreased for the three months ended September 30, 2026, as compared to
the three months ended September 30, 2025, primarily due to lower compensation and professional fees, offset in part by
higher technology-related expenses.
Insurance Operating Earnings
Insurance operating earnings decreased for the three months ended September 30, 2026, as compared to the three
months ended September 30, 2025, primarily due to an increase in net cost of insurance due to the cumulative impact of new
business volume growth, annual assumption review and other related items, and higher crediting rates, partially offset by an
increase in net investment income due to an increase in average assets under management, increased investment
realizations, and higher portfolio yields.
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Analysis of Strategic Holdings Segment Operating Results
The following table sets forth information regarding KKR's strategic holdings segment operating results for the three
months ended September 30, 2026 and 2025:
Three Months Ended | ||||||
($ in thousands) | September 30, 2026 | September 30, 2025 | Change | |||
Dividends, Net | $191,574 | $57,663 | $133,911 | |||
Strategic Holdings Operating Earnings | 191,574 | 57,663 | 133,911 | |||
Net Realized Investment Income | 71,239 | 69,861 | 1,378 | |||
Strategic Holdings Segment Earnings | $262,813 | $127,524 | $135,289 | |||
Dividends, Net
For the three months ended September 30, 2026, dividends, net were comprised of dividend income from 1-800
Contacts, April SA and USI Insurance Services LLC (which is subject to a pending sale). For the three months ended September
30, 2025, dividends, net were comprised of dividend income from 1-800 Contacts. Dividends earned in our Strategic Holdings
segment are reduced by a management fee charged by our Asset Management segment. For the three months ended
September 30, 2026, the management fee was $10.9 million and for the three months ended September 30, 2025, the
management fee was $9.9 million.
Net Realized Investment Income
For the three months ended September 30, 2026, net realized investment income was comprised of a realized gain from
the sale of Atlantic Aviation. For the three months ended September 30, 2025, net realized investment income was comprised
of realized gains from the sale of CyrusOne Inc., and Refresco Group B.V. Net realized investment income earned in our
Strategic Holdings segment are reduced by a performance fee charged by our Asset Management segment. For the three
months ended September 30, 2026, the performance fee was $12.6 million and for three months ended September 30, 2025
the performance fee was $12.3 million.
Strategic Holdings Segment Earnings
Strategic Holdings segment earnings for the three months ended September 30, 2026, was higher compared to the prior
period primarily due to the higher level of dividends and net realized investment income in the current period.
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Analysis of Asset Management Segment Operating Results
The following tables set forth information regarding KKR's asset management segment operating results for the nine
months ended September 30, 2026 and 2025.
Effective beginning in the second quarter of 2026, KKR has reported realized performance revenues from its K-Series
Private Equity vehicles in Fee Related Performance Revenues. Historically, these realized performance revenues were included
within Realized Performance Income. For the nine months ended September 30, 2026, performance revenues from its K-
Series Private Equity vehicles of approximately $380 million were reported in fee related performance revenues in fee related
earnings. For the nine months ended September 30, 2025, realized performance revenues from its K-Series Private Equity
vehicles of approximately $230 million were reported in net realized performance income. This change in classification
reflects how management currently manages the business and aligns KKR's presentation with the prevailing classification
disclosed by other publicly listed alternative asset managers, which we believe should enhance comparability for investors.
KKR has not recast prior-period amounts, as the impact of the reclassification is not material to previously reported results.
Additionally, the change in classification had no impact on total segment revenues, total segment earnings, consolidated
GAAP net income, or Adjusted Net Income.
Nine Months Ended | |||||
($ in thousands) | September 30, 2026 | September 30, 2025 | Change | ||
Management Fees | $3,643,576 | $2,976,650 | $666,926 | ||
Transaction and Monitoring Fees, Net | 801,842 | 823,882 | (22,040) | ||
Fee Related Performance Revenues | 604,808 | 148,191 | 456,617 | ||
Fee Related Compensation | (883,913) | (691,027) | (192,886) | ||
Other Operating Expenses | (619,820) | (515,403) | (104,417) | ||
Fee Related Earnings | 3,546,493 | 2,742,293 | 804,200 | ||
Realized Performance Income | 2,205,814 | 1,697,429 | 508,385 | ||
Realized Performance Income Compensation | (1,646,161) | (1,267,461) | (378,700) | ||
Realized Investment Income | 461,790 | 376,391 | 85,399 | ||
Realized Investment Income Compensation | (69,269) | (56,459) | (12,810) | ||
Asset Management Segment Earnings | $4,498,667 | $3,492,193 | $1,006,474 | ||
Management Fees
The following table presents management fees by business line:
Nine Months Ended | |||||
($ in thousands) | September 30, 2026 | September 30, 2025 | Change | ||
Management Fees | |||||
Private Equity | $1,417,258 | $1,101,266 | $315,992 | ||
Real Assets | 1,196,196 | 941,197 | 254,999 | ||
Credit and Liquid Strategies | 1,030,122 | 934,187 | 95,935 | ||
Total Management Fees | $3,643,576 | $2,976,650 | $666,926 | ||
The increase in Private Equity management fees was primarily attributable to (i) management fees commencing at North
America Fund XIV in the second quarter of 2025, (ii) management fees contributed by Arctos funds following the acquisition
of Arctos during the second quarter of 2026, and (iii) management fees earned on new capital raised and net asset
appreciation over the past twelve months at our private equity K-Series vehicles, net of certain revenue sharing
arrangements. The increase was partially offset by (i) a decrease in management fees earned from Americas Fund XII due to a
step-down in the management fee rate in the third quarter of 2025, and (ii) a decrease in management fees earned from
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Asian Fund IV as a result of entering its post-investment period in the second quarter of 2026, and now paying feesbased on
invested capital rather than committed capital and at a lower fee rate. During the nine months ended September 30, 2026,
$71 million of management fees were earned on new capital raised that were retroactive to the start of the relevant fund’s
investment period.
The increase in Real Assets management fees was primarily attributable to (i) a higher level of management fees earned
from Global Infrastructure Investors V, primarily due to a higher level of management fees earned on new capital raised in the
current year that was retroactive to the start of the fund’s investment period, (ii) management fees earned on new capital
raised and net asset appreciation over the past twelve months from our infrastructure K-Series vehicles, net of certain
revenue sharing arrangements, and (iii) management fees commencing at Asia Infrastructure III in the fourth quarter of 2025.
The increase was partially offset by a decrease in management fees earned from Asia Infrastructure II as a result of entering
its post-investment period in the fourth quarter of 2025, and now paying feesbased on invested capital rather than
committed capital. During the nine months ended September 30, 2026, $109 million of management fees were earned on
new capital raised that is retroactive to the start of the relevant fund's investment period.
The increase in Credit and Liquid Strategies management fees was primarily attributable to (i) capital deployment over
the past twelve months in certain alternative credit strategy accounts, which the fee base is invested capital, (ii) management
fees earned from CLO new issuances in the U.S. and Europe over the past twelve months and (iii) a higher level of
management fees earned from Global Atlantic primarily due to the growth in assets from inflows.
Transaction and Monitoring Fees, Net
The following table presents transaction and monitoring fees, net by business line:
Nine Months Ended | |||||
($ in thousands) | September 30, 2026 | September 30, 2025 | Change | ||
Transaction and Monitoring Fees, Net | |||||
Private Equity | $66,659 | $69,661 | $(3,002) | ||
Real Assets | 38,867 | 39,516 | (649) | ||
Credit and Liquid Strategies | 4,793 | 10,024 | (5,231) | ||
Capital Markets | 691,523 | 704,681 | (13,158) | ||
Total Transaction and Monitoring Fees, Net | $801,842 | $823,882 | $(22,040) | ||
Our Private Equity, Real Assets, and Credit and Liquid Strategies business lines earn transaction and monitoring fees from
portfolio companies, and under the terms of the management agreements with certain of our investment funds, we are
required to share all or a portion of such fees with our fund investors. For most of our investment funds, transaction and
monitoring fees are credited against fund management fees up to 100% of the amount of the transaction and monitoring fees
attributable to that investment fund, which results in a decrease of our monitoring and transaction fees. Our Capital Markets
business line earns transaction fees, which are generally not shared with fund investors.
The decrease in capital markets transaction fees was primarily due to a decrease in the number of capital markets
transactions for the nine months ended September 30, 2026. Overall, we completed 307 capital markets transactions for the
nine months ended September 30, 2026, of which 33 represented equity offerings and 274 represented debt offerings, as
compared to 318 transactions for the nine months ended September 30, 2025, of which 40 represented equity offerings and
278 represented debt offerings. We earn fees in connection with underwriting, syndication, and other capital markets
services. While each of the capital markets transactions that we undertake in this business line is separately negotiated, our
fee rates are generally higher with respect to underwriting or syndicating equity offerings than with respect to debt offerings,
and the amount of fees that we earn for similar transactions generally correlates with overall transaction sizes.
Our capital markets fees are generated in connection with activity involving our Private Equity, Real Assets, and Credit
and Liquid Strategies business lines as well as from third-party companies. For the nine months ended September 30, 2026,
approximately 16% of our transaction fees in our Capital Markets business line were earned from unaffiliated third parties as
compared to approximately 18% for the nine months ended September 30, 2025. Our transaction fees are comprised of fees
earned from North America, Europe, and the Asia-Pacific region. For the nine months ended September 30, 2026,
approximately 37% of our transaction fees were generated outside of North America as compared to approximately 51% for
the nine months ended September 30, 2025. Our Capital Markets business line is dependent on the overall capital markets
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environment, which is influenced by, among other things, equity prices, credit spreads, and volatility. Our Capital Markets
business line does not generate monitoring fees.
Fee Related Performance Revenues
The following table presents fee related performance revenues by business line:
Nine Months Ended | |||||
($ in thousands) | September 30, 2026 | September 30, 2025 | Change | ||
Fee Related Performance Revenues | |||||
Private Equity | $388,549 | $— | $388,549 | ||
Real Assets | 185,535 | 93,196 | 92,339 | ||
Credit and Liquid Strategies | 30,724 | 54,995 | (24,271) | ||
Total Fee Related Performance Revenues | $604,808 | $148,191 | $456,617 | ||
Fee related performance revenues represent performance fees that are (i) expected to be received from our investment
funds, investment vehicles and accounts on a more recurring basis and (ii) not dependent on a realization event involving
investments held by the investment fund, vehicle or account.
The increase in fee related performance revenues for the nine months ended September 30, 2026 compared to the prior
period was primarily due to (i) performance revenues from K-Series Private Equity vehicles being reported in fee related
performance revenues, beginning in 2026, and (ii) a higher level of performance revenues earned from one of our K-Series
Infrastructure vehicles in our Real Assets business line. The increase was partially offset by no performance revenues earned
from FSK in our Credit and Liquid Strategies business line in the current period. Beginning with the second quarter of 2026,
KKR has agreed to waive 100% of its portion of the FSK incentive fee for the next four consecutive quarters.
Fee Related Compensation
The increase in fee related compensation for the nine months ended September 30, 2026 compared to the prior period
was primarily due to a higher level of compensation recorded in connection with the higher level of fee related revenues.
Other Operating Expenses
The increase in other operating expenses for the nine months ended September 30, 2026 compared to the prior period
was primarily due to a higher level of occupancy, information technology, and corporate general and administrative costs.
Fee Related Earnings
The increase in fee related earnings for the nine months ended September 30, 2026 compared to the prior period was
primarily due to (i) a higher level of management fees across our Private Equity, Real Assets, and Credit and Liquid Strategies
business lines and (ii) a higher level of fee related performance revenues earned in our Private Equity and Real Assets business
lines, partially offset by a higher level of fee related compensation and other operating expenses, as described above.
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Realized Performance Income
Realized performance income includes (i) realized carried interest from our carry earning funds and (ii) incentive fees not
included in Fee Related Performance Revenues.
The following table presents realized performance income by business line:
Nine Months Ended | |||||
($ in thousands) | September 30, 2026 | September 30, 2025 | Change | ||
Realized Performance Income | |||||
Private Equity | $2,014,062 | $1,392,027 | $622,035 | ||
Real Assets | 148,256 | 234,364 | (86,108) | ||
Credit and Liquid Strategies | 43,496 | 71,038 | (27,542) | ||
Total Realized Performance Income | $2,205,814 | $1,697,429 | $508,385 | ||
Nine Months Ended | |||||
($ in thousands) | September 30, 2026 | September 30, 2025 | Change | ||
Private Equity | |||||
Americas Fund XII | $738,375 | $84,662 | $653,713 | ||
Global Impact Fund II | 333,193 | — | 333,193 | ||
Asian Fund III | 263,327 | — | 263,327 | ||
Core Investment Vehicles | 141,490 | 187,886 | (46,396) | ||
North America Fund XI | 89,421 | — | 89,421 | ||
Next Generation Technology Growth Fund II | — | 162,679 | (162,679) | ||
European Fund V | 44,281 | 89,459 | (45,178) | ||
Private Equity K-Series | — | 232,979 | (232,979) | ||
Asian Fund IV | 68,480 | 357,526 | (289,046) | ||
Next Generation Technology Growth Fund | 28,303 | — | 28,303 | ||
Global Impact Fund | — | 13,215 | (13,215) | ||
Other | 307,192 | 263,621 | 43,571 | ||
Total Realized Performance Income | $2,014,062 | $1,392,027 | $622,035 | ||
Realized performance income in our Private Equity business line for the nine months ended September 30, 2026
consisted primarily of (i) realized proceeds from the sale of our investments in CoolIT Systems held by Global Impact Fund II,
OneStream Software held by Americas Fund XII and Next Generation Technology Growth Fund, BrightSpring Health Services
(NASDAQ: BTSG) and Flow Control Group held by Americas Fund XII, and J.B. Chemicals and Pharmaceuticals Limited
(healthcare sector) and Kokusai Electric Corporation held by Asian Fund III and (ii) performance income from our core private
equity vehicles.
Realized performance income in our Private Equity business line for the nine months ended September 30, 2025
consisted primarily of (i) realized proceeds from the sale of our investments in Seiyu Group held by Asian Fund IV, ReliaQuest,
LLC (technology sector) held by Next Generation Technology Growth Fund II, The Citation Group held by both European Fund
V and Global Impact Fund, and BrightSpring Health Services Inc. held by Americas Fund XII and (ii) performance income from
our core investment vehicles and our private equity K-Series vehicles.
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Nine Months Ended | |||||
($ in thousands) | September 30, 2026 | September 30, 2025 | Change | ||
Real Assets | |||||
Crescent Energy Company | $22,387 | $— | $22,387 | ||
Global Infrastructure Investors IV | 100,000 | — | 100,000 | ||
Real Estate Co-Investment Fund | 20,095 | — | 20,095 | ||
Global Infrastructure Investors II | — | 8,744 | (8,744) | ||
Asia Pacific Infrastructure Investors | — | 110,000 | (110,000) | ||
Global Infrastructure Investors III | — | 92,209 | (92,209) | ||
Other | 5,774 | 23,411 | (17,637) | ||
Total Realized Performance Income | $148,256 | $234,364 | $(86,108) | ||
Realized performance income in our Real Assets business line for the nine months ended September 30, 2026 consisted
primarily of realized proceeds from the sale of our investments in Ocean Yield ASA held by Global Infrastructure Investors IV,
Benchmark Senior Living (real estate sector) and performance fees earned from Crescent Energy Company (NYSE: CRGY)
(“Crescent Energy”).
Realized performance income in our Real Assets business line for the nine months ended September 30, 2025 consisted
primarily of realized proceeds from the sale of our investments in Pinnacle Towers held by Asia Pacific Infrastructure
Investors, Metronet Holdings, LLC and NEP Renewables II, LLC (infrastructure: energy and energy transition sector) held by
Global Infrastructure Investors III, and Q-Park N.V. (infrastructure: transportation sector) held by Global Infrastructure
Investors II.
Nine Months Ended | |||||
($ in thousands) | September 30, 2026 | September 30, 2025 | Change | ||
Credit and Liquid Strategies | |||||
Lending Partners III | $5,245 | $9,962 | $(4,717) | ||
Alternative Credit Vehicles and Other | 38,251 | 61,076 | (22,825) | ||
Total Realized Performance Income | $43,496 | $71,038 | $(27,542) | ||
Realized performance income in our Credit and Liquid Strategies business line for the nine months ended September 30,
2026 consisted primarily of (i) performance fees earned from Marshall Wace and (ii) realized proceeds at Lending Partners III
and certain other alternative credit funds.
Realized performance income in our Credit and Liquid Strategies business line for the nine months ended September 30,
2025 consisted primarily of realized proceeds at Lending Partners III and certain other alternative credit funds.
Realized Performance Income Compensation
The increase in realized performance income compensation for the nine months ended September 30, 2026 compared to
the prior period was primarily due to a higher level of compensation recorded in connection with the higher level of realized
performance income.
Realized Investment Income
The following table presents realized investment income from our Principal Activities business line:
Nine Months Ended | |||||
($ in thousands) | September 30, 2026 | September 30, 2025 | Change | ||
Total Realized Investment Income | $461,790 | $376,391 | $85,399 | ||
The amount of realized investment income depends on the transaction activity of our funds and Asset Management
segment balance sheet, which can vary from period to period.
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For the nine months ended September 30, 2026, realized investment income was primarily comprised of realized gains
from the sale of our investments in BridgeBio Pharma, Inc., OneStream Software, J.B. Chemicals and Pharmaceuticals Limited,
and BrightSpring Health Services. Offsetting these realized gains were (i) a realized loss on one of our investments in a real
estate investment vehicle and (ii) realized losses from the sales of various revolving credit facilities from our Capital Markets
business line.
For the nine months ended September 30, 2025, realized investment income was primarily comprised of (i) realized gains
primarily from the sale of our investments in BridgeBio Pharma, Inc., ReliaQuest, LLC and Kokusai Electric Corporation, (ii)
realized gains from the settlement of certain foreign exchange forward contracts, and (iii) interest income primarily from our
investments in CLOs. Partially offsetting the realized gains were realized losses, the most significant of which were (i) a
realized loss related to a structured multi-asset investment vehicle and (ii) realized losses from the sale of various revolving
credit facilities from our Capital Markets business line.
Realized investment income includes the net income (loss) from KKR Capstone. For the nine months ended September
30, 2026, total fees attributable to KKR Capstone were $91.7 million and total expenses attributable to KKR Capstone were
$85.0 million. For KKR Capstone-related adjustments in reconciling segment revenues and expenses to GAAP revenues and
expenses see Note 21 “Segment Reporting” in the accompanying financial statements.
As of the date of this filing, we have transactions that are pending or that have closed after September 30, 2026 that are
expected to result in realized performance income and realized investment income of approximately $3.5 billion. The
realizations are expected to consist of approximately 75% realized investment income and approximately 25% realized
performance income. Some of these transactions are not complete, and are subject to the satisfaction of closing conditions,
including regulatory approvals; therefore, there can be no assurance if or when such transactions will be completed. In
addition, we may realize gains or losses based on transactions or other events that occur after the date of filing this report,
which could impact, positively or negatively, the total amount of our realized performance income and realized investment
income. Therefore, no assurance can be given for what our actual realized performance income and realized investment
income in the remainder of 2026 or future periods will be.
Realized Investment Income Compensation
The increase in realized investment income compensation for the nine months ended September 30, 2026 compared to
the prior period is primarily due to a higher level of compensation recorded in connection with the higher level of realized
investment income.
Operating and Capital Metrics
See also “Fund Performance Metrics” for more information about our investment funds, vehicles and accounts across our
Private Equity, Real Assets and Credit and Liquid Strategies business lines, including investment performance, capital
commitments, uncalled capital commitments, and invested capital of each. See also “Risk Factors” in our Annual Report and
“—Business Environment” in this report for more information about the factors that may impact our business, financial
performance, operating results and valuations.
The following tables present our key asset management segment operating and capital metrics:
As of | |||||
($ in millions) | September 30, 2026 | December 31, 2025 | Change | ||
Assets Under Management | $804,388 | $743,858 | $60,530 | ||
Fee Paying Assets Under Management | $647,887 | $604,144 | $43,743 | ||
Uncalled Commitments | $145,638 | $118,433 | $27,205 | ||
Nine Months Ended | |||||
($ in millions) | September 30, 2026 | September 30, 2025 | Change | ||
Capital Invested | $66,063 | $62,775 | $3,288 | ||
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Assets Under Management
Private Equity
The following table reflects the changes in the AUM of our Private Equity business line from December 31, 2025 to
September 30, 2026:
($ in millions) | |
December 31, 2025 | $229,374 |
New Capital Raised | 18,319 |
Acquisitions (1) | 15,996 |
Distributions and Other | (19,959) |
Redemptions | (512) |
Change in Value | 12,874 |
September 30, 2026 | $256,092 |
(1)Reflects the AUM of Arctos at closing.
AUM of our Private Equity business line was $256.1 billion at September 30, 2026, an increase of $26.7 billion, compared
to $229.4 billion at December 31, 2025.
The increase was primarily attributable to (i) investment funds managed by Arctos Partners, which we acquired in the
second quarter of 2026, (ii) new capital raised from Asian Fund V, and our private equity K-Series vehicles and (iii)
appreciation in investment value primarily from Global Impact Fund II, our private equity K-Series vehicles, and North America
Fund XIII. Partially offsetting the increase were distributions to fund investors primarily as a result of realized proceeds, most
notably from Americas Fund XII, Asian Fund III, and Global Impact Fund II.
For the nine months ended September 30, 2026, the value of our traditional private equity investment portfolio
appreciated by 5%. This was comprised of a 17% increase in share prices of publicly held investments and a 3% increase in
value of our privately held investments. For the nine months ended September 30, 2026, the value of our growth equity
investment portfolio (including our global impact strategy) increased 21%, and the value of our core private equity investment
portfolio decreased 3%.
Real Assets
The following table reflects the changes in the AUM of our Real Assets business line from December 31, 2025 to
September 30, 2026:
($ in millions) | |
December 31, 2025 | $192,480 |
New Capital Raised | 30,176 |
Distributions and Other | (14,991) |
Redemptions | (484) |
Change in Value | 4,538 |
September 30, 2026 | $211,719 |
AUM of our Real Assets business line was $211.7 billion at September 30, 2026, an increase of $19.2 billion, compared to
$192.5 billion at December 31, 2025.
The increase was primarily attributable to (i) new capital raised from Helix Digital Infrastructure, our infrastructure K-
Series vehicles, and Global Infrastructure Investors V, and, to a lesser extent, (ii) appreciation in investment value from Global
Infrastructure Investors IV, Diversified Core Infrastructure Fund, and our infrastructure K-Series vehicles. Partially offsetting
the increase were (i) payments to Global Atlantic policyholders, and (ii) distributions to fund investors as a result of realized
proceeds, most notably from Global Infrastructure Investors IV and Global Infrastructure Investors III.
For the nine months ended September 30, 2026, the value of our infrastructure investment portfolio appreciated 7% and
the value of our opportunistic real estate equity investment portfolio decreased 2%.
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Credit and Liquid Strategies
The following table reflects the changes in the AUM of our Credit and Liquid Strategies business line from December 31,
2025 to September 30, 2026:
($ in millions) | |
December 31, 2025 | $322,004 |
New Capital Raised | 38,751 |
Distributions and Other | (22,385) |
Redemptions | (5,998) |
Change in Value | 4,205 |
September 30, 2026 | $336,577 |
AUM of our Credit and Liquid Strategies business line totaled $336.6 billion at September 30, 2026, an increase of $14.6
billion compared to AUM of $322.0 billion at December 31, 2025.
The increase was primarily attributable to (i) new capital raised from Global Atlantic inflows and various alternative credit
funds and to a lesser extent leveraged credit investment funds, (ii) CLO issuances and, (iii) investment value appreciation on
assets managed by Marshall Wace. Partially offsetting the increase were (i) payments to Global Atlantic policyholders, and (ii)
distributions to, and redemptions from, fund investors at certain alternative and leveraged credit funds.
Fee Paying Assets Under Management
Private Equity
The following table reflects the changes in the FPAUM of our Private Equity business line from December 31, 2025 to
September 30, 2026:
($ in millions) | |
December 31, 2025 | $151,239 |
New Capital Raised | 18,326 |
Acquisitions (1) | 10,084 |
Distributions and Other | (7,270) |
Redemptions | (512) |
Net Changes in Fee Base of Certain Funds | (2,412) |
Change in Value | 1,147 |
September 30, 2026 | $170,602 |
(1)Reflects the FPAUM of Arctos at closing.
FPAUM of our Private Equity business line was $170.6 billion at September 30, 2026, an increase of $19.4 billion,
compared to $151.2 billion at December 31, 2025.
The increase was primarily attributable to (i) investment funds managed by Arctos Partners, which we acquired in the
second quarter of 2026, and (ii) new capital raised from Asian Fund V, North America Fund XIV and our private equity K-Series
vehicles. Partially offsetting the increase were (i) a change in fee base at Asian Fund IV and Next Generation Technology
Growth Fund III as a result of these funds entering their post-investment periods, during which we earn fees on invested
capital rather than committed capital, and (ii) distributions to fund investors primarily as a result of realized proceeds, most
notably from Asian Fund III and our Core Investment Vehicles, and (iii) fees waived at European Fund IV in exchange for
extending the term of the fund.
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Real Assets
The following table reflects the changes in the FPAUM of our Real Assets business line from December 31, 2025 to
September 30, 2026:
($ in millions) | |
December 31, 2025 | $163,451 |
New Capital Raised | 23,848 |
Distributions and Other | (11,688) |
Redemptions | (484) |
Change in Value | 1,358 |
September 30, 2026 | $176,485 |
FPAUM of our Real Assets business line was $176.5 billion at September 30, 2026, an increase of $13.0 billion, compared
to $163.5 billion at December 31, 2025.
The increase was primarily attributable to (i) new capital raised from our infrastructure K-Series vehicles, Global
Infrastructure Investors V, and Asia Infrastructure III and, to a lesser extent, (ii) the appreciation in investment value from our
infrastructure K-Series vehicles and Diversified Core Infrastructure Fund. Partially offsetting the increase were (i) payments to
Global Atlantic policyholders, and (ii) distributions to fund investors as a result of realized proceeds, most notably from Global
Infrastructure Investors IV and Global Infrastructure Investors III.
Credit and Liquid Strategies
The following table reflects the changes in the FPAUM of our Credit and Liquid Strategies business line from December
31, 2025 to September 30, 2026:
($ in millions) | |
December 31, 2025 | $289,454 |
New Capital Raised | 38,183 |
Distributions and Other | (24,537) |
Redemptions | (5,998) |
Change in Value | 3,698 |
September 30, 2026 | $300,800 |
FPAUM of our Credit and Liquid Strategies business line was $300.8 billion at September 30, 2026, an increase of $11.3
billion, compared to $289.5 billion at December 31, 2025.
The increase was primarily attributable to (i) new capital raised from Global Atlantic inflows, (ii) U.S. and European CLO
issuances, and (iii) deployment at various alternative credit investment funds, and, to a lesser extent, (iv) investment value
appreciation on assets managed by Marshall Wace. Partially offsetting the increase were (i) payments to Global Atlantic
policyholders, and (ii) distributions to, and redemptions from, fund investors at certain alternative and leveraged credit funds.
See “Risk Factors” in our Annual Report and “—Business Environment” in this report for more information about the
factors that may impact our business, financial performance, operating results and valuations.
Uncalled Commitments
Private Equity
As of September 30, 2026, our Private Equity business line had $64.8 billion of remaining uncalled commitments that
could be called for investments in new transactions as compared to $52.3 billion as of December 31, 2025. The increase was
primarily attributable to new capital commitments from fund investors, which was partially offset by capital called from fund
investors to make investments during the period.
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Real Assets
As of September 30, 2026, our Real Assets business line had $47.7 billion of remaining uncalled commitments that could
be called for investments in new transactions as compared to $35.0 billion as of December 31, 2025. The increase was
primarily attributable to new capital commitments from fund investors, which was partially offset by capital called from fund
investors to make investments during the period.
Credit and Liquid Strategies
As of September 30, 2026, our Credit and Liquid Strategies business line had $33.1 billion of remaining uncalled
commitments that could be called for investments in new transactions as compared to $31.1 billion as of December 31, 2025.
The increase was primarily attributable to new capital commitments from fund investors, which was partially offset by capital
called from fund investors to make investments during the period.
Capital Invested
Private Equity
For the nine months ended September 30, 2026, $10.7 billion of capital was invested by our Private Equity business line,
as compared to $15.2 billion for the nine months ended September 30, 2025. The decrease was driven primarily by a $4.0
billion decrease in capital invested in our core private equity strategy. During the nine months ended September 30, 2026,
76% of capital deployed in private equity was in transactions in North America, 7% was in Europe, and 17% was in the Asia-
Pacific region. The number of large private equity investments made in any quarterly or year-to-date period is volatile and,
consequently, a significant amount of capital invested in one period or a few periods may not be indicative of a similar level of
capital deployment in future periods.
Real Assets
For the nine months ended September 30, 2026, $24.0 billion of capital was invested by our Real Assets business line, as
compared to $19.2 billion for the nine months ended September 30, 2025. The increase was driven primarily by a $3.5 billion
increase in capital invested in our infrastructure strategy and $1.9 billion increase in capital invested in our real estate
strategy, partially offset by a $0.6 billion decrease in capital invested in our energy strategy. During the nine months ended
September 30, 2026, 63% of capital deployed in real assets was in transactions in North America, 18% was in Europe, and 19%
was in the Asia-Pacific region. The number of large real assets investments made in any quarterly or year-to-date period is
volatile and, consequently, a significant amount of capital invested in one period or a few periods may not be indicative of a
similar level of capital deployment in future periods.
Credit and Liquid Strategies
For the nine months ended September 30, 2026, $31.4 billion of capital was invested by our Credit and Liquid Strategies
business line, as compared to $28.4 billion for the nine months ended September 30, 2025. The increase was driven primarily
by a higher level of capital deployed across our alternative credit strategies, most notably asset-based finance. During the nine
months ended September 30, 2026, 84% of capital deployed was in transactions in North America, 14% was in Europe, and 2%
was in the Asia-Pacific region.
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Analysis of Insurance Segment Operating Results
The following table sets forth information regarding KKR's insurance segment operating results for the nine months
ended September 30, 2026 and 2025.
Effective beginning in the first quarter of 2026, the information regularly provided to management for the Insurance
Segment was modified to reclassify certain operating expenses from “General, Administrative and Other” to “Net Cost of
Insurance.” Prior period segment information has been recast to conform to the current period presentation. This
reclassification had no impact on Insurance Operating Earnings.
Nine Months Ended | |||||
($ in thousands) | September 30, 2026 | September 30, 2025 | Change | ||
Net Investment Income | $5,801,220 | $5,352,893 | $448,327 | ||
Net Cost of Insurance | (4,473,503) | (3,968,104) | (505,399) | ||
General, Administrative and Other | (548,894) | (543,432) | (5,462) | ||
Insurance Operating Earnings | $778,823 | $841,357 | $(62,534) | ||
Net Investment Income
Net investment income increased for the nine months ended September 30, 2026, as compared to the nine months
ended September 30, 2025, primarily due to (i) increased average assets under management from the cumulative impact of
new business volume growth, (ii) realization of investments, and (iii) higher average portfolio yields due to repositioning the
portfolio into higher yielding fixed maturity debt securities, and investment in alternative asset classes, such as real assets.
Net Cost of Insurance
Net cost of insurance increased for the nine months ended September 30, 2026, as compared to the nine months ended
September 30, 2025, primarily due to (i) growth in reserves in the institutional and individual market channels as a result of
the cumulative impact of new business volumes in the preceding twelve months, and (ii) higher average funding costs due to
higher crediting rates and the routine run-off of older business originated in a lower interest rate environment.
General, Administrative and Other Expenses
General, administrative and other expenses increased for the nine months ended September 30, 2026, as compared to
the nine months ended September 30, 2025, primarily due to (i) an increase in technology-related expenses, and (ii) higher
interest expense.
Insurance Operating Earnings
Insurance operating earnings decreased for the nine months ended September 30, 2026, as compared to the nine months
ended September 30, 2025, primarily due to an increase in net cost of insurance due to the cumulative impact of new
business volume growth and higher crediting rates, offset in part by an increase in net investment income due to an increase
in average assets under management, increased investment realizations, and higher portfolio yields.
As of the date of this filing, a sale of a railcar equipment lessor is pending and is expected to result in insurance operating
earnings of at least $200 million which we expect to close in the first quarter of 2027. This transaction is not complete, and is
subject to the satisfaction of closing conditions, including regulatory approvals; therefore, there can be no assurance if or
when this transaction will be completed.
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Analysis of Strategic Holdings Segment Operating Results
The following table sets forth information regarding KKR's strategic holdings segment operating results for the nine
months ended September 30, 2026 and 2025:
Nine Months Ended | ||||||
($ in thousands) | September 30, 2026 | September 30, 2025 | Change | |||
Dividends, Net | $276,906 | $118,270 | $158,636 | |||
Strategic Holdings Operating Earnings | 276,906 | 118,270 | 158,636 | |||
Net Realized Investment Income | 101,304 | 69,861 | 31,443 | |||
Strategic Holdings Segment Earnings | $378,210 | $188,131 | $190,079 | |||
Dividends, Net
For the nine months ended September 30, 2026, dividends, net were comprised of dividend income from 1-800 Contacts,
USI Insurance Services LLC (which is subject to a pending sale), April SA and Viridor Limited. For the nine months ended
September 30, 2025, dividends, net were comprised of dividend income from 1-800 Contacts, April SA, Atlantic Aviation FBO
Inc. (infrastructure: transportation sector), and ERM Worldwide Group Limited (services sector). For the nine months ended
September 30, 2026, the management fee charged by our Asset Management segment was $32.8 million and for the nine
months ended September 30, 2025, the management fee was $27.1 million.
Net Realized Investment Income
For the nine months ended September 30, 2026, net realized investment income was comprised of realized gains from
the sale of Atlantic Aviation and a partial sale of Viridor Limited. For the nine months ended September 30, 2025, net realized
investment income was comprised of realized gains from the sale of CyrusOne Inc. and Refresco Group B.V. Net realized
investment income earned in our Strategic Holdings segment is reduced by a performance fee charged by our Asset
Management segment. For the nine months ended September 30, 2026, the performance fee was $17.9 million and for the
nine months ended September 30, 2025 the performance fee was $12.3 million.
Strategic Holdings Segment Earnings
Strategic Holdings segment earnings for the nine months ended September 30, 2026, was higher compared to the prior
period due to a higher level of dividends, and net realized investment income in the current period.
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Analysis of Non-GAAP Performance Measures
The following is a discussion of our Non-GAAP performance measures for the three months ended September 30, 2026
and 2025:
Three Months Ended | |||||
($ in thousands) | September 30, 2026 | September 30, 2025 | Change | ||
Fee Related Earnings | $1,315,970 | $1,032,936 | $283,034 | ||
Insurance Operating Earnings | 230,273 | 304,653 | (74,380) | ||
Strategic Holdings Operating Earnings | 191,574 | 57,663 | 133,911 | ||
Total Operating Earnings | 1,737,817 | 1,395,252 | 342,565 | ||
Net Realized Performance Income | 150,578 | 232,665 | (82,087) | ||
Net Realized Investment Income | 198,884 | 73,632 | 125,252 | ||
Total Investing Earnings | 349,462 | 306,297 | 43,165 | ||
Total Segment Earnings | 2,087,279 | 1,701,549 | 385,730 | ||
Interest Expense, Net and Other | (129,956) | (102,789) | (27,167) | ||
Income Taxes on Adjusted Earnings | (311,830) | (325,158) | 13,328 | ||
Adjusted Net Income | $1,645,493 | $1,273,602 | $371,891 | ||
Total Operating Earnings
The increase in total operating earnings for the three months ended September 30, 2026 compared to the prior period
was primarily due to a higher level of fee related earnings and to a lesser extent strategic holdings operating earnings,
partially offset by a decrease in insurance operating earnings. For a discussion of fee related earnings, insurance operating
earnings, and strategic holdings operating earnings, see “—Analysis of Asset Management Segment Operating Results”, “—
Analysis of Insurance Segment Operating Results”, and “—Analysis of Strategic Holdings Segment Operating Results.”
Total Investing Earnings
The increase in total investing earnings for the three months ended September 30, 2026 compared to the prior period
was primarily due to higher level of net realized investment income, partially offset by a decrease in net realized performance
income. For a discussion of net realized performance income and net realized investment income, see “—Analysis of Asset
Management Segment Operating Results” and “—Analysis of Strategic Holdings Segment Operating Results.”
Total Segment Earnings
The increase in total segment earnings for the three months ended September 30, 2026 compared to the prior period
was primarily due to a higher level of total operating earnings and total investing earnings.
Adjusted Net Income
The increase in adjusted net income for the three months ended September 30, 2026 compared to the prior period was
primarily due to a higher level of total segment earnings, partially offset by an increase in interest expense, net and other.
Interest Expense, Net and Other
The increase in interest expense, net and other for the three months ended September 30, 2026 compared to the prior
period was primarily due to a lower amount of bank interest income in the current period.
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Income Taxes on Adjusted Earnings
The decrease in income taxes on adjusted earnings for the three months ended September 30, 2026 compared to the
prior period was primarily due to a higher level of certain income tax deductions and credits, partially offset by a higher level
of total segment earnings.
For the three months ended September 30, 2026 and 2025, the amount of tax benefit from equity-based compensation
included in income taxes on adjusted earnings was $55.6 million and $32.2 million, respectively. The inclusion of the tax
benefit from equity-based compensation in Adjusted Net Income had the effect of increasing this measure by 3% for both the
three months ended September 30, 2026 and 2025.
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Analysis of Non-GAAP Performance Measures
The following is a discussion of our Non-GAAP performance measures for the nine months ended September 30, 2026
and 2025.
Nine Months Ended | |||||
($ in thousands) | September 30, 2026 | September 30, 2025 | Change | ||
Fee Related Earnings | $3,546,493 | $2,742,293 | $804,200 | ||
Insurance Operating Earnings | 778,823 | 841,357 | (62,534) | ||
Strategic Holdings Operating Earnings | 276,906 | 118,270 | 158,636 | ||
Total Operating Earnings | 4,602,222 | 3,701,920 | 900,302 | ||
Net Realized Performance Income | 559,653 | 429,968 | 129,685 | ||
Net Realized Investment Income | 493,825 | 389,793 | 104,032 | ||
Total Investing Earnings | 1,053,478 | 819,761 | 233,717 | ||
Total Segment Earnings | 5,655,700 | 4,521,681 | 1,134,019 | ||
Interest Expense, Net and Other | (393,804) | (287,866) | (105,938) | ||
Income Taxes on Adjusted Earnings | (874,170) | (862,875) | (11,295) | ||
Adjusted Net Income | $4,387,726 | $3,370,940 | $1,016,786 | ||
Total Operating Earnings
The increase in total operating earnings for the nine months ended September 30, 2026 compared to the prior period
was primarily due to a higher level of fee related earnings and to a lesser extent strategic holdings operating earnings,
partially offset by a decrease in insurance operating earnings. For a discussion of fee related earnings, insurance operating
earnings, and strategic holdings operating earnings, see “—Analysis of Asset Management Segment Operating Results”, “—
Analysis of Insurance Segment Operating Results”, and “—Analysis of Strategic Holdings Segment Operating Results.”
Total Investing Earnings
The increase in total investing earnings for the nine months ended September 30, 2026 compared to the prior period was
primarily due to a higher level of net realized performance income and net realized investment income. For a discussion of net
realized performance income and net realized investment income, see “—Analysis of Asset Management Segment Operating
Results” and “—Analysis of Strategic Holdings Segment Operating Results.”
Total Segment Earnings
The increase in total segment earnings for the nine months ended September 30, 2026 compared to the prior period was
primarily due to an increase in total operating earnings and to a lesser extent total investing earnings.
Adjusted Net Income
The increase in adjusted net income for the nine months ended September 30, 2026 compared to the prior period was
primarily due to a higher level of total segment earnings, partially offset by an increase in interest expense, net and other.
Interest Expense, Net and Other
The increase in interest expense, net and other for the nine months ended September 30, 2026 compared to the prior
period was primarily due to (i) a lower amount of bank interest income in the current period, and (ii) dividends paid on the
Series D Mandatory Convertible Preferred Stock that was issued in March 2025.
Income Taxes on Adjusted Earnings
The increase in income taxes on adjusted earnings for the nine months ended September 30, 2026 compared to the prior
period was primarily due to a higher level of total segment earnings, partially offset by the higher level of certain income tax
deductions and credits.
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For the nine months ended September 30, 2026 and 2025, the amount of the tax benefit from equity-based
compensation included in income taxes on adjusted earnings was $132.4 million and $92.2 million, respectively. The inclusion
of the tax benefit from equity-based compensation in Adjusted Net Income had the effect of increasing this measure by 3%
for both the nine months ended September 30, 2026 and 2025.
Fund Performance Metrics
Private Equity
The table below presents information as of September 30, 2026, relating to our current private equity and other
investment vehicles reported in our Private Equity business line for which we have the ability to earn carried interest. This
data does not reflect acquisitions or disposals of investments, changes in investment values, or distributions occurring after
September 30, 2026.
Investment Period | Amount ($ in millions) | |||||||||
Start Date(1) | End Date (2) | Commitment (3) | Uncalled Commitments | Invested | Realized | Remaining Cost (4) | Remaining Fair Value | Gross Accrued Carried Interest | ||
Private Equity Business Line | ||||||||||
North America Fund XIV | 8/2025 | 4/2031 | $21,893 | $19,147 | $2,746 | $— | $2,746 | $3,844 | $153 | |
North America Fund XIII | 8/2021 | 4/2025 | 18,400 | 1,216 | 17,487 | 566 | 16,986 | 25,427 | 1,359 | |
Americas Fund XII | 5/2017 | 5/2021 | 13,500 | 1,168 | 12,979 | 22,518 | 7,114 | 12,996 | 1,016 | |
North America Fund XI | 11/2012 | 1/2017 | 8,718 | 48 | 10,203 | 25,152 | 1,050 | 1,103 | 73 | |
2006 Fund (5) | 9/2006 | 9/2012 | 17,642 | — | 17,309 | 37,423 | — | — | — | |
Millennium Fund (5) | 12/2002 | 12/2008 | 6,000 | — | 6,000 | 14,129 | — | — | — | |
Ascendant Fund | 6/2022 | 6/2028 | 4,328 | 2,192 | 2,136 | — | 2,136 | 2,619 | 39 | |
European Fund VI | 6/2022 | 6/2028 | 7,514 | 1,846 | 5,726 | 315 | 4,494 | 6,687 | 51 | |
European Fund V | 7/2019 | 2/2022 | 6,377 | 500 | 6,000 | 3,444 | 4,222 | 5,880 | 306 | |
European Fund IV | 2/2015 | 3/2019 | 3,513 | 16 | 3,649 | 5,726 | 1,621 | 2,296 | 119 | |
European Fund III (5) | 3/2008 | 3/2014 | 5,506 | — | 5,360 | 10,648 | — | — | — | |
European Fund II (5) | 11/2005 | 10/2008 | 5,751 | — | 5,751 | 8,533 | — | — | — | |
Asian Fund IV | 7/2020 | 6/2026 | 14,735 | 3,166 | 12,824 | 4,967 | 11,750 | 16,496 | 921 | |
Asian Fund III | 8/2017 | 7/2020 | 9,000 | 1,200 | 8,343 | 12,580 | 4,190 | 7,997 | 793 | |
Asian Fund II | 10/2013 | 3/2017 | 5,825 | — | 7,507 | 6,723 | 1,270 | 828 | — | |
Asian Fund (5) | 7/2007 | 4/2013 | 3,983 | — | 3,974 | 8,728 | — | — | — | |
Next Generation Technology Growth Fund III | 11/2022 | 3/2026 | 2,740 | 346 | 2,394 | — | 2,394 | 2,956 | 72 | |
Next Generation Technology Growth Fund II | 12/2019 | 5/2022 | 2,088 | 26 | 2,298 | 1,846 | 1,637 | 2,502 | 149 | |
Next Generation Technology Growth Fund | 3/2016 | 12/2019 | 659 | 5 | 672 | 1,661 | 163 | 487 | 33 | |
Health Care Strategic Growth Fund II | 5/2021 | 5/2027 | 3,789 | 1,346 | 2,443 | 157 | 2,287 | 3,825 | 216 | |
Health Care Strategic Growth Fund | 12/2016 | 4/2021 | 1,331 | 85 | 1,411 | 1,112 | 914 | 1,654 | 130 | |
Global Impact Fund II | 6/2022 | 6/2028 | 2,716 | 1,184 | 1,757 | 2,409 | 1,204 | 1,473 | 46 | |
Global Impact Fund | 2/2019 | 3/2022 | 1,242 | 185 | 1,240 | 916 | 884 | 1,243 | 102 | |
Co-Investment Vehicles and Other | Various | Various | 55,610 | 11,911 | 44,592 | 19,981 | 33,669 | 41,377 | 1,434 | |
Core Investors II | 8/2022 | 8/2027 | 11,814 | 7,963 | 3,852 | 284 | 3,852 | 4,659 | — | |
Core Investors I | 2/2018 | 8/2022 | 8,500 | 23 | 10,622 | 3,681 | 8,279 | 15,875 | (63) | |
Other Core Vehicles | Various | Various | 7,911 | 1,172 | 6,815 | 3,277 | 6,286 | 10,382 | 40 | |
Arctos Keystone Fund I & Affiliated Funds | Various | Various | 6,506 | 5,327 | 1,411 | 83 | 1,328 | 1,514 | — | |
Arctos Sports Partners Fund II & Affiliated Funds | Various | Various | 4,220 | 2,013 | 2,354 | 177 | 2,177 | 3,551 | 39 | |
Arctos Sports Partners Fund I & Affiliated Funds | Various | Various | 2,919 | 509 | 2,768 | 557 | 2,267 | 5,657 | 88 | |
Unallocated Commitments (6) | N/A | N/A | 2,089 | 2,089 | — | — | — | — | — | |
Total Private Equity | $266,819 | $64,683 | $212,623 | $197,593 | $124,920 | $183,328 | $7,116 | |||
(1)The start date represents the start of the fund's investment period as defined in the fund's governing documents and may or may not be the same as the
date upon which management fees begin to accrue.
(2)The end date represents the end of the fund's investment period as defined in the fund's governing documents and is generally not the date upon which
management fees cease to accrue. For funds that initially charge management fees on the basis of committed capital, the end date is generally the date
on or after which the management fees begin to be calculated instead on the basis of invested capital and may, for certain funds, begin to be calculated
using a lower rate.
(3)The commitment represents the aggregate capital commitments to the fund, including capital commitments by third-party fund investors and the general
partner. Foreign currency commitments have been converted into U.S. dollars based on the exchange rate that prevailed on September 30, 2026.
(4)The remaining cost represents the initial investment of the general partner and limited partners, reduced for returns of capital.
(5)The “Invested” and “Realized” columns do not include the amounts of any realized investments that restored the unused capital commitments of the fund
investors, if any.
(6)“Unallocated Commitments” represent commitments received from our strategic investor partnerships that have yet to be allocated to a particular
investment strategy.
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Real Assets
The table below presents information as of September 30, 2026, relating to our current real asset and other investment
vehicles reported in our Real Assets business line for which we have the ability to earn carried interest. This data does not
reflect acquisitions or disposals of investments, changes in investment values, or distributions occurring after September 30,
2026.
Investment Period | Amount ($ in millions) | |||||||||
Start Date (1) | End Date (2) | Commitment (3) | Uncalled Commitments | Invested | Realized | Remaining Cost (4) | Remaining Fair Value | Gross Accrued Carried Interest | ||
Real Assets Business Line | ||||||||||
Global Infrastructure Investors V | 7/2024 | 7/2030 | $19,150 | $15,460 | $3,805 | $114 | $3,805 | $4,282 | $21 | |
Global Infrastructure Investors IV | 8/2021 | 6/2024 | 16,606 | 2,023 | 15,302 | 5,710 | 12,110 | 16,872 | 1,146 | |
Global Infrastructure Investors III | 7/2018 | 6/2021 | 7,174 | 440 | 7,100 | 7,193 | 2,631 | 3,492 | 153 | |
Global Infrastructure Investors II | 12/2014 | 6/2018 | 3,040 | 130 | 3,169 | 5,789 | 560 | 1,046 | 59 | |
Global Infrastructure Investors | 9/2010 | 10/2014 | 1,040 | — | 1,050 | 2,228 | — | — | — | |
Asia Pacific Infrastructure Investors III | 12/2025 | 12/2031 | 6,554 | 6,554 | — | — | — | — | — | |
Asia Pacific Infrastructure Investors II | 9/2022 | 9/2028 | 6,348 | 2,015 | 4,735 | 1,071 | 3,868 | 5,600 | 344 | |
Asia Pacific Infrastructure Investors | 1/2020 | 9/2022 | 3,792 | 536 | 3,618 | 2,760 | 1,972 | 2,821 | 219 | |
Diversified Core Infrastructure Fund | 12/2020 | (5) | 15,559 | 1,024 | 14,538 | 2,033 | 14,388 | 15,915 | — | |
Global Climate Transition Fund(6) | 7/2024 | 7/2030 | 3,562 | 3,562 | — | — | — | — | — | |
Real Estate Partners Americas IV | 11/2024 | 11/2028 | 2,602 | 1,741 | 862 | 12 | 832 | 1,008 | 17 | |
Real Estate Partners Americas III | 1/2021 | 9/2024 | 4,253 | 496 | 4,006 | 389 | 3,738 | 4,118 | — | |
Real Estate Partners Americas II | 5/2017 | 12/2020 | 1,921 | 116 | 1,989 | 3,105 | 137 | 42 | — | |
Real Estate Partners Americas | 5/2013 | 5/2017 | 1,229 | 15 | 1,024 | 1,446 | — | — | (4) | |
Real Estate Partners Europe III | 7/2024 | 7/2028 | 775 | 452 | 331 | 60 | 298 | 307 | 1 | |
Real Estate Partners Europe II | 3/2020 | 12/2023 | 2,066 | 202 | 2,069 | 656 | 1,578 | 1,332 | — | |
Real Estate Partners Europe | 8/2015 | 12/2019 | 709 | 98 | 695 | 813 | 125 | 56 | — | |
Asia Real Estate Partners II | 10/2023 | 10/2027 | 789 | 620 | 309 | 223 | 156 | 191 | 12 | |
Asia Real Estate Partners | 7/2019 | 7/2023 | 1,682 | 349 | 1,386 | 723 | 875 | 703 | — | |
Property Partners Americas | 12/2019 | (5) | 2,571 | 46 | 2,525 | 179 | 2,525 | 2,319 | — | |
Real Estate Credit Opportunity Partners II | 8/2019 | 6/2023 | 950 | — | 976 | 671 | 707 | 716 | 31 | |
Real Estate Credit Opportunity Partners | 2/2017 | 4/2019 | 1,130 | 122 | 1,008 | 735 | 964 | 964 | — | |
Opportunistic Real Estate Credit Fund III | 5/2026 | (7) | 1,300 | 1,300 | — | — | — | — | — | |
Opportunistic Real Estate Credit Fund II | 6/2023 | 6/2026 | 607 | 142 | 465 | 55 | 444 | 480 | 9 | |
Energy Related Vehicles | Various | Various | 4,357 | 35 | 4,497 | 2,676 | 883 | 1,599 | 66 | |
Co-Investment Vehicles & Other | Various | Various | 29,633 | 8,229 | 21,531 | 5,415 | 19,064 | 20,487 | 92 | |
Unallocated Commitments(8) | N/A | N/A | 1,364 | 1,364 | — | — | — | — | — | |
Total Real Assets | $140,763 | $47,071 | $96,990 | $44,056 | $71,660 | $84,350 | $2,166 | |||
(1)The start date represents the start of the fund's investment period as defined in the fund's governing documents and may or may not be the same as the
date upon which management fees begin to accrue.
(2)The end date represents the end of the fund's investment period as defined in the fund's governing documents and is generally not the date upon which
management fees cease to accrue. For funds that initially charge management fees on the basis of committed capital, the end date is generally the date
on or after which the management fees begin to be calculated instead on the basis of invested capital and may, for certain funds, begin to be calculated
using a lower rate.
(3)The commitment represents the aggregate capital commitments to the fund, including capital commitments by third-party fund investors and the general
partner. Foreign currency commitments have been converted into U.S. dollars based on the exchange rate that prevailed on September 30, 2026.
(4)The remaining cost represents the initial investment of the general partner and limited partners, reduced for returns of capital.
(5)Open-ended fund.
(6)Includes an Asia-focused vehicle with different fund terms.
(7)Third anniversary of the fund's final closing date.
(8)“Unallocated Commitments” represent commitments received from our strategic investor partnerships that have yet to be allocated to a particular
investment strategy.
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Private Equity and Real Asset Performance
The table below presents information as of September 30, 2026, relating to the historical performance of certain of our
Private Equity and Real Assets investment vehicles since inception, which we believe illustrates the benefits of our investment
approach. This data does not reflect additional capital raised since September 30, 2026, or acquisitions or disposals of
investments, changes in investment values, or distributions occurring after that date. The information presented below is not
intended to be representative of any past or future performance for any particular period other than the period presented
below. Past performance is no guarantee of future results.
Private Equity Business Line Investment Funds and Other Vehicles | Commitment (2) | Invested | Realized (4) | Unrealized | Total Value | Gross IRR (5) | Net IRR (5) | Gross Multiple of Invested Capital (5) | |||
($ in millions) | |||||||||||
Total Investments | |||||||||||
North America Fund XIV (2025)(3) | $21,893 | $2,746 | $— | $3,844 | $3,844 | —% | —% | — | |||
North America Fund XIII (2021) | 18,400 | 17,487 | 566 | 25,427 | 25,993 | 15.1% | 11.5% | 1.5 | |||
Americas Fund XII (2017) | 13,500 | 12,979 | 22,518 | 12,996 | 35,514 | 22.9% | 19.0% | 2.7 | |||
North America Fund XI (2012) | 8,718 | 10,203 | 25,152 | 1,103 | 26,255 | 23.2% | 18.6% | 2.6 | |||
2006 Fund (2006) | 17,642 | 17,309 | 37,423 | — | 37,423 | 11.9% | 9.3% | 2.2 | |||
Millennium Fund (2002) | 6,000 | 6,000 | 14,129 | — | 14,129 | 22.0% | 16.1% | 2.4 | |||
Ascendant Fund (2022) | 4,328 | 2,136 | — | 2,619 | 2,619 | 15.3% | 7.8% | 1.2 | |||
European Fund VI (2022) | 7,514 | 5,726 | 315 | 6,687 | 7,002 | 11.1% | 7.6% | 1.2 | |||
European Fund V (2019) | 6,377 | 6,000 | 3,444 | 5,880 | 9,324 | 10.7% | 8.2% | 1.6 | |||
European Fund IV (2015) | 3,513 | 3,649 | 5,726 | 2,296 | 8,022 | 20.4% | 15.3% | 2.2 | |||
European Fund III (2008) | 5,506 | 5,360 | 10,648 | — | 10,648 | 16.4% | 11.2% | 2.0 | |||
European Fund II (2005) | 5,751 | 5,751 | 8,533 | — | 8,533 | 6.1% | 4.5% | 1.5 | |||
European Fund (1999) | 3,085 | 3,085 | 8,758 | — | 8,758 | 26.9% | 20.2% | 2.8 | |||
Asian Fund IV (2020) | 14,735 | 12,824 | 4,967 | 16,496 | 21,463 | 20.7% | 15.4% | 1.7 | |||
Asian Fund III (2017) | 9,000 | 8,343 | 12,580 | 7,997 | 20,577 | 23.0% | 18.0% | 2.5 | |||
Asian Fund II (2013) | 5,825 | 7,507 | 6,723 | 828 | 7,551 | 0.2% | (1.2)% | 1.0 | |||
Asian Fund (2007) | 3,983 | 3,974 | 8,728 | — | 8,728 | 18.9% | 13.7% | 2.2 | |||
Next Generation Technology Growth Fund III (2022) | 2,740 | 2,394 | — | 2,956 | 2,956 | 14.7% | 7.9% | 1.2 | |||
Next Generation Technology Growth Fund II (2019) | 2,088 | 2,298 | 1,846 | 2,502 | 4,348 | 17.5% | 13.6% | 1.9 | |||
Next Generation Technology Growth Fund (2016) | 659 | 672 | 1,661 | 487 | 2,148 | 27.0% | 22.9% | 3.2 | |||
Health Care Strategic Growth Fund II (2021) | 3,789 | 2,443 | 157 | 3,825 | 3,982 | 22.5% | 14.7% | 1.6 | |||
Health Care Strategic Growth Fund (2016) | 1,331 | 1,411 | 1,112 | 1,654 | 2,766 | 16.0% | 11.5% | 2.0 | |||
Global Impact Fund II (2022) | 2,716 | 1,757 | 2,409 | 1,473 | 3,882 | 55.6% | 40.9% | 2.2 | |||
Global Impact Fund (2019) | 1,242 | 1,240 | 916 | 1,243 | 2,159 | 14.5% | 10.4% | 1.7 | |||
Core Investors II (2022) | 11,814 | 3,852 | 284 | 4,659 | 4,943 | 9.5% | 8.3% | 1.3 | |||
Core Investors I (2018) | 8,500 | 10,622 | 3,681 | 15,875 | 19,556 | 12.4% | 10.9% | 1.8 | |||
Arctos Keystone Fund I & Affiliated Funds (2024)(3) | 6,506 | 1,411 | 83 | 1,514 | 1,597 | — | — | — | |||
Arctos Sports Partners Fund II & Affiliated Funds (2022) | 4,220 | 2,354 | 177 | 3,551 | 3,728 | 34.3% | 22.6% | 1.6 | |||
Arctos Sports Partners Fund I & Affiliated Funds (2020) | 2,919 | 2,768 | 557 | 5,657 | 6,214 | 28.8% | 22.7% | 2.2 | |||
Subtotal - Private Equity Funds | 204,294 | 164,301 | 0 | 183,093 | 131,569 | 314,662 | 16.1% | 12.3% | 1.9 | ||
Legacy Funds (1) | |||||||||||
1976 Fund | 31 | 31 | 537 | — | 537 | 39.5% | 35.5% | 17.1 | |||
1980 Fund | 357 | 357 | 1,828 | — | 1,828 | 29.0% | 25.8% | 5.1 | |||
1982 Fund | 328 | 328 | 1,291 | — | 1,291 | 48.1% | 39.2% | 3.9 | |||
1984 Fund | 1,000 | 1,000 | 5,964 | — | 5,964 | 34.5% | 28.9% | 6.0 | |||
1986 Fund | 672 | 672 | 9,081 | — | 9,081 | 34.4% | 28.9% | 13.5 | |||
1987 Fund | 6,130 | 6,130 | 14,949 | — | 14,949 | 12.1% | 8.9% | 2.4 | |||
1993 Fund | 1,946 | 1,946 | 4,143 | — | 4,143 | 23.6% | 16.8% | 2.1 | |||
1996 Fund | 6,012 | 6,012 | 12,477 | — | 12,477 | 18.0% | 13.3% | 2.1 | |||
Subtotal - Legacy Funds | 16,475 | 16,475 | 50,269 | — | 50,269 | 26.1% | 19.9% | 3.1 | |||
Subtotal - All Private Equity Funds | $220,769 | $180,776 | $233,362 | $131,569 | $364,931 | 25.6% | 18.7% | 2.0 | |||
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Real Assets Business Line Investment Funds and Other Vehicles | Commitment (2) | Invested | Realized (4) | Unrealized | Total Value | Gross IRR (5) | Net IRR (5) | Gross Multiple of Invested Capital (5) | |||
($ in millions) | |||||||||||
Global Infrastructure Investors V (2024)(3) | $19,150 | $3,805 | $114 | $4,282 | $4,396 | —% | —% | — | |||
Global Infrastructure Investors IV (2021) | 16,606 | 15,302 | 5,710 | 16,872 | 22,582 | 13.6% | 10.6% | 1.5 | |||
Global Infrastructure Investors III (2018) | 7,174 | 7,100 | 7,193 | 3,492 | 10,685 | 11.1% | 8.6% | 1.5 | |||
Global Infrastructure Investors II (2014) | 3,040 | 3,169 | 5,789 | 1,046 | 6,835 | 19.3% | 16.6% | 2.2 | |||
Global Infrastructure Investors (2010) | 1,040 | 1,050 | 2,228 | — | 2,228 | 17.6% | 15.6% | 2.1 | |||
Asia Pacific Infrastructure Investors III (2025)(3) | 6,554 | — | — | — | — | —% | —% | — | |||
Asia Pacific Infrastructure Investors II (2022) | 6,348 | 4,735 | 1,071 | 5,600 | 6,671 | 25.9% | 19.3% | 1.4 | |||
Asia Pacific Infrastructure Investors (2020) | 3,792 | 3,618 | 2,760 | 2,821 | 5,581 | 14.9% | 11.2% | 1.5 | |||
Global Climate Transition Fund (2024)(3) | 3,562 | — | — | — | — | —% | —% | — | |||
Real Estate Partners Americas IV (2024)(3) | 2,602 | 862 | 12 | 1,008 | 1,020 | —% | —% | — | |||
Real Estate Partners Americas III (2021) | 4,253 | 4,006 | 389 | 4,118 | 4,507 | 3.5% | 1.8% | 1.1 | |||
Real Estate Partners Americas II (2017) | 1,921 | 1,989 | 3,105 | 42 | 3,147 | 23.7% | 19.1% | 1.6 | |||
Real Estate Partners Americas (2013) | 1,229 | 1,024 | 1,446 | — | 1,446 | 15.8% | 10.9% | 1.4 | |||
Real Estate Partners Europe III (2024) | 775 | 331 | 60 | 307 | 367 | 13.4% | 5.3% | 1.1 | |||
Real Estate Partners Europe II (2020) | 2,066 | 2,069 | 656 | 1,332 | 1,988 | (1.3)% | (3.4)% | 1.0 | |||
Real Estate Partners Europe (2015) | 709 | 695 | 813 | 56 | 869 | 8.0% | 5.1% | 1.3 | |||
Asia Real Estate Partners II (2023) | 789 | 309 | 223 | 191 | 414 | 29.4% | 18.3% | 1.3 | |||
Asia Real Estate Partners (2019) | 1,682 | 1,386 | 723 | 703 | 1,426 | 0.9% | (2.0)% | 1.0 | |||
Real Estate Credit Opportunity Partners II (2019) | 950 | 976 | 671 | 716 | 1,387 | 9.8% | 7.6% | 1.4 | |||
Real Estate Credit Opportunity Partners (2017) | 1,130 | 1,008 | 735 | 964 | 1,699 | 8.7% | 7.4% | 1.7 | |||
Opportunistic Real Estate Credit Fund III (ROX III) (2026)(3) | 1,300 | — | — | — | — | —% | —% | — | |||
Opportunistic Real Estate Credit Fund II (ROX II) (2023) | 607 | 465 | 55 | 480 | 535 | 14.4% | 9.8% | 1.2 | |||
Subtotal - Real Assets Funds | 87,279 | 53,899 | 33,753 | 44,030 | 77,783 | 13.7% | 10.6% | 1.4 | |||
All Funds | $308,048 | $234,675 | $267,115 | $175,599 | $442,714 | 25.5% | 18.6% | 1.9 | |||
(1)These funds were not contributed to KKR as part of the acquisition of the assets and liabilities of KKR & Co. (Guernsey) L.P. (formerly known as KKR Private
Equity Investors, L.P.) on October 1, 2009.
(2)Where commitments are not U.S. dollar-denominated, such amounts have been converted into U.S. dollars based on the exchange rate prevailing on
September 30, 2026.
(3)The gross IRR, net IRR and gross multiple of invested capital are calculated for our investment funds that made their first investment at least 24 months
prior to September 30, 2026. We therefore have not calculated gross IRRs, net IRRs and gross multiples of invested capital with respect to these funds.
(4)An investment is considered realized when it has been disposed of or has otherwise generated disposition proceeds or current income that has been
distributed by the relevant fund.
(5)IRRs measure the aggregate annual compounded returns generated by a fund's investments over a holding period. Net IRRs are calculated after giving
effect to the allocation of realized and unrealized carried interest and the payment of any applicable management fees and organizational expenses.
Gross IRRs are calculated before giving effect to the allocation of realized and unrealized carried interest and the payment of any applicable management
fees and organizational expenses.
The gross multiples of invested capital measure the aggregate value generated by a fund's investments in absolute terms. Each multiple of invested capital
is calculated by adding together the total realized and unrealized values of a fund's investments and dividing by the total amount of capital invested by the
fund. Such amounts do not give effect to the allocation of realized and unrealized carried interest or the payment of any applicable management fees or
organizational expenses.
KKR's Private Equity and Real Assets funds may utilize third-party financing facilities to provide liquidity to such funds. The above net and gross IRRs are
calculated from the time capital contributions are due from fund investors to the time fund investors receive a related distribution from the fund, and the
use of such financing facilities generally decreases the amount of time that would otherwise be used to calculate IRRs, which tends to increase IRRs when
fair value grows over time and decrease IRRs when fair value decreases over time.
For more information, see “Risk Factors—Risks Related to Our Investment Activities—Future results of our investments
may be different than, and may not achieve the levels of, any of our historical returns” in our Annual Report.
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Credit and Liquid Strategies
The table below presents information as of September 30, 2026, relating to our current credit investment vehicles
reported in our Credit and Liquid Strategies business line for which we have the ability to earn carried interest. This data does
not reflect acquisitions or disposals of investments, changes in investment values, or distributions occurring after
September 30, 2026.
Investment Period | Amount ($ in millions) | ||||||||
Start Date (1) | End Date (2) | Commitment (3) | Uncalled Commitments | Invested | Realized | Remaining Cost (4) | Remaining Fair Value | Gross Accrued Carried Interest | |
Credit and Liquid Strategies Business Line | |||||||||
Opportunities Fund II | 11/2021 | 1/2026 | $2,324 | $581 | $1,743 | $434 | $1,501 | $1,910 | $69 |
Dislocation Opportunities Fund | 8/2019 | 11/2021 | 2,790 | 223 | 2,567 | 2,069 | 1,130 | 1,187 | 64 |
Special Situations Fund II | 2/2015 | 3/2019 | 3,525 | 284 | 3,241 | 2,767 | 547 | 469 | — |
Special Situations Fund | 1/2013 | 1/2016 | 2,274 | 1 | 2,273 | 1,899 | 94 | 135 | — |
Mezzanine Partners | 7/2010 | 3/2015 | 1,023 | 33 | 990 | 1,166 | 184 | 2 | — |
Asset-Based Finance Partners II | 3/2024 | 3/2028 | 5,571 | 4,242 | 1,329 | 69 | 1,329 | 1,446 | 20 |
Asset-Based Finance Partners | 10/2020 | 7/2025 | 2,059 | 351 | 1,708 | 919 | 1,310 | 1,398 | 86 |
Private Credit Opportunities Partners II | 12/2015 | 12/2020 | 2,245 | 150 | 2,095 | 1,127 | 1,297 | 978 | — |
Lending Partners IV | 3/2022 | 9/2026 | 1,150 | 295 | 855 | 246 | 855 | 873 | 18 |
Lending Partners III | 4/2017 | 11/2021 | 1,498 | 540 | 958 | 1,258 | 390 | 323 | 27 |
Lending Partners II | 6/2014 | 6/2017 | 1,336 | 157 | 1,179 | 1,276 | — | 3 | — |
Lending Partners | 12/2011 | 12/2014 | 460 | — | 420 | 471 | — | — | — |
Lending Partners Europe II | 5/2019 | 9/2023 | 837 | 140 | 697 | 813 | 192 | 215 | 10 |
Lending Partners Europe | 3/2015 | 3/2019 | 848 | 184 | 662 | 632 | 53 | 44 | — |
Asia Credit Opportunities II | 2/2025 | 12/2028 | 1,795 | 1,480 | 315 | — | 315 | 338 | — |
Asia Credit Opportunities | 1/2021 | 5/2025 | 1,084 | 191 | 893 | 384 | 707 | 818 | 41 |
Other Alternative Credit Vehicles | Various | Various | 20,391 | 8,536 | 11,787 | 7,779 | 6,028 | 7,830 | (12) |
Total Credit and Liquid Strategies | $51,210 | $17,388 | $33,712 | $23,309 | $15,932 | $17,969 | $323 | ||
(1)The start date represents the start of the fund's investment period as defined in the fund's governing documents and may or may not be the same as the
date upon which management fees begin to accrue.
(2)The end date represents the end of the fund's investment period as defined in the fund's governing documents and is generally not the date upon which
management fees cease to accrue. For funds that initially charge management fees on the basis of committed capital, the end date is generally the date
on or after which the management fees begin to be calculated instead on the basis of invested capital and may, for certain funds, begin to be calculated
using a lower rate.
(3)The commitment represents the aggregate capital commitments to the fund, including capital commitments by third-party fund investors and the general
partner. Foreign currency commitments have been converted into U.S. dollars based on the foreign exchange rate that prevailed on September 30, 2026.
(4)The remaining cost represents the initial investment of the general partner and limited partners, reduced for returns of capital.
The following table presents information regarding certain leveraged credit strategies managed by KKR from inception to
September 30, 2026. The information presented below is not intended to be representative of any past or future performance
for any particular period other than the period presented below. Past performance is no guarantee of any future result.
Leveraged Credit Strategy | Inception Date | Gross Returns | Net Returns | Benchmark (1) | Benchmark Gross Returns | |||||
Multi-Asset Credit Composite | Jul 2008 | 7.04% | 6.35% | 50% S&P/LSTA Loan Index, 50% BoAML HY Master II Index (2) | 5.73% | |||||
Opportunistic Credit (3) | May 2008 | 10.10% | 8.64% | 50% S&P/LSTA Loan Index, 50% BoAML HY Master II Index (3) | 5.90% | |||||
Bank Loans | Apr 2011 | 5.88% | 5.31% | S&P/LSTA Loan Index (4) | 4.91% | |||||
High-Yield | Apr 2011 | 6.05% | 5.47% | BoAML HY Master II Index (5) | 5.46% | |||||
European Leveraged Loans (6) | Sep 2009 | 4.91% | 4.39% | CS Inst West European Leveraged Loan Index (7) | 4.04% |
(1)The benchmarks referred to herein include the S&P/LSTA Leveraged Loan Index (the “S&P/LSTA Loan Index”), S&P/LSTA U.S. B/BB Ratings Loan Index (the
“S&P/LSTA BB-B Loan Index”), the Bank of America Merrill Lynch High Yield Master II Index (the “BoAML HY Master II Index”), the BofA Merrill Lynch BB-B
US High Yield Index (the “BoAML HY BB-B Constrained”), the Credit Suisse Institutional Western European Leveraged Loan Index (the “CS Inst West
European Leveraged Loan Index”), and S&P European Leveraged Loans (All Loans). The S&P/LSTA Loan Index is a daily tradable index for the U.S. loan
market that seeks to mirror the market-weighted performance of the largest institutional loans that meet certain criteria. The BoAML HY Master II Index is
an index for high-yield corporate bonds. It is designed to measure the broad high-yield market, including lower-rated securities. The CS Inst West
European Leveraged Loan Index contains only institutional loan facilities priced above 90, excluding TL and TLa facilities and loans rated CC, C or are in
default. The S&P European Leveraged Loan Index reflects the market-weighted performance of institutional leveraged loan portfolios investing in
European credits. While the returns of our leveraged credit strategies reflect the reinvestment of income and dividends, none of the indices presented in
the chart above reflect such reinvestment, which has the effect of increasing the reported relative performance of these strategies as compared to the
indices. Furthermore, these indices are not subject to management fees, incentive allocations, or expenses.
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(2)Performance is based on a blended composite of Bank Loans, High Yield, and Structured Credit strategy accounts. The benchmark used for purposes of
comparison for the Multi-Asset Credit Composite strategy is based on 65% S&P/LSTA Loan Index and 35% BoAML HY Master II Index to May 2022, and
50% S&P/LSTA Loan Index, 50% BoAML HY Master II Index, from June 2022.
(3)The Opportunistic Credit strategy invests in high-yield securities and corporate loans with no preset allocation. The benchmark used for purposes of
comparison for the Opportunistic Credit strategy presented herein is based on 50% S&P/LSTA Loan Index and 50% BoAML HY Master II Index. Funds
within this strategy may utilize third-party financing facilities to enhance investment returns. In cases where financing facilities are used, the amounts
drawn on the facility are deducted from the assets of the fund in the calculation of net asset value, which tends to increase returns when net asset value
grows over time and decrease returns when net asset value decreases over time.
(4)Performance is based on a composite of portfolios that primarily invest in leveraged loans. The benchmark used for purposes of comparison for the Bank
Loans strategy is based on the S&P/LSTA Loan Index.
(5)Performance is based on a composite of portfolios that primarily invest in high-yield securities. The benchmark used for purposes of comparison for the
High Yield strategy is based on the BoAML HY Master II Index.
(6)The returns presented are calculated based on local currency.
(7)Performance is based on a composite of portfolios that primarily invest in higher quality leveraged loans. The benchmark used for purposes of comparison
for the European Leveraged Loans strategy is based on the CS Inst West European Leveraged Loan Index.
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The following table presents information regarding our alternative credit investment funds where investors have capital
commitments from inception to September 30, 2026. The information presented below is not intended to be representative
of any past or future performance for any particular period other than the period presented below. Past performance is no
guarantee of any future result.
Credit and Liquid Strategies Investment Funds | Investment Period Start Date | Commitment | Invested (1) | Realized (1) | Unrealized | Total Value | Gross IRR (2) | Net IRR (2) | Multiple of Invested Capital (3) | |||||||||
($ in Millions) | ||||||||||||||||||
Opportunities Fund II | Nov 2021 | $2,324 | $1,743 | $434 | $1,910 | $2,344 | 16.5% | 12.7% | 1.3 | |||||||||
Dislocation Opportunities Fund | Aug 2019 | 2,790 | 2,567 | 2,069 | 1,187 | 3,256 | 8.0% | 6.1% | 1.3 | |||||||||
Special Situations Fund II | Feb 2015 | 3,525 | 3,241 | 2,767 | 469 | 3,236 | —% | (1.8)% | 1.0 | |||||||||
Special Situations Fund | Jan 2013 | 2,274 | 2,273 | 1,899 | 135 | 2,034 | (2.3)% | (4.0)% | 0.9 | |||||||||
Mezzanine Partners | July 2010 | 1,023 | 990 | 1,166 | 2 | 1,168 | 6.5% | 2.7% | 1.2 | |||||||||
Asset-Based Finance Partners II | Mar 2024 | 5,571 | 1,329 | 69 | 1,446 | 1,515 | 17.7% | 12.5% | 1.1 | |||||||||
Asset-Based Finance Partners | Oct 2020 | 2,059 | 1,708 | 919 | 1,398 | 2,317 | 12.8% | 9.5% | 1.4 | |||||||||
Private Credit Opportunities Partners II | Dec 2015 | 2,245 | 2,095 | 1,127 | 978 | 2,105 | 0.1% | (1.7)% | 1.0 | |||||||||
Lending Partners IV | Mar 2022 | 1,150 | 855 | 246 | 873 | 1,119 | 13.8% | 10.8% | 1.3 | |||||||||
Lending Partners III | Apr 2017 | 1,498 | 958 | 1,258 | 323 | 1,581 | 13.4% | 10.9% | 1.7 | |||||||||
Lending Partners II | Jun 2014 | 1,336 | 1,179 | 1,276 | 3 | 1,279 | 2.8% | 1.4% | 1.1 | |||||||||
Lending Partners | Dec 2011 | 460 | 420 | 471 | — | 471 | 3.2% | 1.6% | 1.1 | |||||||||
Lending Partners Europe II | May 2019 | 837 | 697 | 813 | 215 | 1,028 | 16.4% | 13.2% | 1.5 | |||||||||
Lending Partners Europe | Mar 2015 | 848 | 662 | 632 | 44 | 676 | 0.8% | (1.1)% | 1.0 | |||||||||
Asia Credit Opportunities II | Feb 2025 | 1,795 | 315 | — | 338 | 338 | 12.6% | 7.2% | 1.1 | |||||||||
Asia Credit Opportunities | Jan 2021 | 1,084 | 893 | 384 | 818 | 1,202 | 12.4% | 9.2% | 1.3 | |||||||||
Other Alternative Credit Vehicles | Various | 20,391 | 11,787 | 7,779 | 7,830 | 15,609 | N/A | N/A | N/A | |||||||||
All Funds | $51,210 | $33,712 | $23,309 | $17,969 | $41,278 | |||||||||||||
(1)Recycled capital is excluded from the amounts invested and realized.
(2)These credit funds utilize third-party financing facilities to provide liquidity to such funds, and in such event IRRs are calculated from the time capital
contributions are due from fund investors to the time fund investors receive a related distribution from the fund. The use of such financing facilities
generally decreases the amount of invested capital that would otherwise be used to calculate IRRs, which tends to increase IRRs when fair value grows
over time and decrease IRRs when fair value decreases over time. IRRs measure the aggregate annual compounded returns generated by a fund's
investments over a holding period and are calculated taking into account recycled capital. Net IRRs presented are calculated after giving effect to the
allocation of realized and unrealized carried interest and the payment of any applicable management fees and organizational expenses. Gross IRRs are
calculated before giving effect to the allocation of carried interest and the payment of any applicable management fees and organizational expenses.
(3)The multiples of invested capital measure the aggregate value generated by a fund's investments in absolute terms. Each multiple of invested capital is
calculated by adding together the total realized and unrealized values of a fund's investments and dividing by the total amount of capital invested by the
investors. The use of financing facilities generally decreases the amount of invested capital that would otherwise be used to calculate multiples of
invested capital, which tends to increase multiples when fair value grows over time and decrease multiples when fair value decreases over time. Such
amounts do not give effect to the allocation of any realized and unrealized returns on a fund's investments to the fund's general partner pursuant to a
carried interest or the payment of any applicable management fees and are calculated without taking into account recycled capital.
For additional information regarding impact of market conditions on the value and performance of our investments, see
“Risk Factors—Risks Related to Our Business—Difficult market and economic conditions can, and periodically do, materially
and adversely affect KKR.” and “Risk Factors—Risks Related to Our Investment Activities—Future results of our investments
may be different than, and may not achieve the levels of, any of our historical returns” in our Annual Report.
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Segment Balance Sheet Measures
Asset Management Segment Investment Portfolio
To the extent our investments are realized at values above or below their cost in future periods, adjusted net income
would be positively or negatively affected by the amount of any such gain or loss, respectively, during the period in which the
realization event occurs.
Our investments in the Asset Management segment by asset class as of September 30, 2026 are as follows:
As of September 30, 2026 | ||||||
Asset Management Segment Investments (1) | Cost | Fair Value | Fair Value as a Percentage of Total Asset Management Investments | |||
($ in thousands) | ||||||
Traditional Private Equity | $2,094,196 | $3,647,518 | 41% | |||
Growth Equity | 333,838 | 835,588 | 9% | |||
Private Equity Total | 2,428,034 | 4,483,106 | 50% | |||
Real Estate | 1,284,843 | 1,207,738 | 14% | |||
Infrastructure | 389,638 | 659,555 | 7% | |||
Energy | 62,290 | 367,923 | 4% | |||
Real Assets Total | 1,736,771 | 2,235,216 | 25% | |||
Alternative Credit | 860,547 | 888,577 | 10% | |||
Leveraged Credit | 498,200 | 474,133 | 5% | |||
Credit Total | 1,358,747 | 1,362,710 | 15% | |||
Other | 946,619 | 821,280 | 10% | |||
Total Asset Management Segment Investments | $6,470,171 | $8,902,312 | 100% | |||
(1)Investments is a term used solely for purposes of financial presentation of a portion of KKR's balance sheet and includes majority ownership of
subsidiaries that operate KKR's asset management and insurance businesses, including the general partner interests of KKR's investment funds.
Investments presented are principally the assets measured at fair value that are held by KKR's asset management segment, which, among other things,
does not include the underlying investments held by Global Atlantic and Marshall Wace. This table excludes investments in our Strategic Holdings and
Insurance segments, for which additional information is available in Note 21 “Segment Reporting” in our financial statements.
Insurance Segment Investment Portfolio
As of September 30, 2026, the Insurance segment’s investment portfolio (on an unconsolidated basis, excluding the
elimination of intercompany balances) consisted of the following categories of investments:
($ in thousands) | As of September 30, 2026 | December 31, 2025 | ||||||
Fixed-maturity securities, available-for-sale | $93,941,800 | 48% | $95,672,043 | 48% | ||||
Mortgage and other loan receivables | 44,501,547 | 23% | 53,638,617 | 27% | ||||
Fixed-maturity securities, trading | 27,535,741 | 14% | 26,419,591 | 13% | ||||
Real assets | 16,026,021 | 8% | 15,369,758 | 8% | ||||
Funds withheld receivables, at interest | 2,190,682 | 1% | 2,324,346 | 1% | ||||
Other investments | 10,703,276 | 6% | 6,936,028 | 3% | ||||
Total investments | $194,899,067 | 100% | $200,360,383 | 100% | ||||
The portion of Insurance segment’s investment portfolio consisting of floating rate assets was 24% and 27% as of
September 30, 2026 and December 31, 2025, respectively.
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Credit Quality of Fixed Maturity Securities
As of September 30, 2026, 95%, and 92% of the Insurance segment’s fixed maturity securities were considered
investment grade under ratings from the Securities Valuation Office of the NAIC and NRSROs, respectively. As of December
31, 2025, 95%, and 91% of fixed maturity securities were considered investment grade under ratings from NAIC and NRSROs,
respectively. Securities where a rating by a NRSRO was not available are considered investment grade if they have a NAIC
designation of “1” or “2.”
The Securities Valuation Office of the NAIC evaluates the fixed maturity security investments of insurers for regulatory
reporting and capital assessment purposes and assigns securities to one of six credit quality categories called “NAIC
designations.” Using an internally developed rating is permitted by the NAIC if no rating is available. These designations are
generally similar to the credit quality designations of NRSROs for marketable fixed maturity securities, except for certain
structured securities as described below. NAIC designations of “1,” highest quality, and “2,” high quality, include fixed
maturity securities generally considered investment grade by NRSROs. NAIC designations “3” through “6” include fixed
maturity securities generally considered below investment grade by NRSROs.
Consistent with the NAIC Process and Procedures Manual, a NRSRO rating was assigned based on the following criteria: (i)
the equivalent S&P rating where the security is rated by one NRSRO; (ii) the equivalent S&P rating of the lowest NRSRO when
the security is rated by two NRSROs; and (iii) the equivalent S&P rating of the second lowest NRSRO if the security is rated by
three or more NRSROs. If the lowest two NRSROs’ ratings are equal, then such rating will be the assigned rating. NRSROs’
ratings available for the periods presented were S&P, Fitch, Moody’s, DBRS, Inc., and Kroll Bond Rating Agency, Inc. If no
rating is available from a rating agency, then an internally developed rating is used.
Within the funds withheld receivable at interest portfolio, 98% and 97% of the fixed maturity securities were investment
grade by NAIC designation as of September 30, 2026 and December 31, 2025, respectively.
Trading fixed maturity securities primarily back funds withheld payable at interest where the investment performance is
ceded to reinsurers under the terms of the respective reinsurance agreements.
Unrealized Gains and Losses on Available-for-Sale Fixed Maturity Securities
The Insurance segment’s investments in available-for-sale fixed maturity securities are reported at fair value with changes
in fair value recorded in other comprehensive income as unrealized gains or losses, net of taxes and offsets. Unrealized gains
and losses can be created by changes in interest rates or by changes in credit spreads.
As of September 30, 2026 and December 31, 2025, the Insurance segment had gross unrealized losses on below
investment grade AFS fixed maturity securities of $320.0 million and $313.8 million based on NRSRO ratings, and $169.9
million and $187.7 million based on NAIC ratings, respectively. As of September 30, 2026, unrealized losses were not
recognized in net income on these fixed maturity securities since the Insurance segment neither intends to sell the securities
nor does it believe that it is more likely than not that it will be required to sell these securities before recovery of their cost or
amortized cost basis.
Credit Quality of Mortgage and Other Loan Receivables
Mortgage and other loan receivables consist of commercial and residential mortgage loans, consumer loans, and other
loan receivables. As of September 30, 2026 and December 31, 2025, 23% and 27% of Global Atlantic's total investments
consisted of mortgage and other loan receivables, respectively.
The Insurance segment invests in U.S. mortgage loans, comprised of first lien and mezzanine commercial mortgage loans
and first lien residential mortgage loans. For the commercial mortgage loan portfolio, the most prevalent property type is
multi-family residential buildings, which represents approximately half of the portfolio as of both September 30, 2026 and
December 31, 2025. Office and retail properties represent approximately 23% and 21% of the portfolio as of September 30,
2026 and December 31, 2025, respectively.
The Insurance segment’s commercial mortgage loans are assigned NAIC designations, with designations “CM1” and
“CM2” considered to be investment grade. As of September 30, 2026 and December 31, 2025, 92% and 91% of the
commercial mortgage loan portfolio were rated investment grade based on NAIC designation, respectively. The payment
status of over 97% and 99% of the commercial mortgage loan portfolio is current as of September 30, 2026 and December 31,
2025, respectively.
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The loan-to-value ratio is expressed as a percentage of the current amount of the loan relative to the value of the
underlying collateral. As of September 30, 2026 and December 31, 2025, approximately 89% and 89% of the commercial
mortgage loans have a loan-to-value ratio of 70% or less, and as of September 30, 2026 and December 31, 2025, 4% and 2%
have loan-to-value ratio over 90%, respectively.
Changing economic conditions and updated assumptions affect the Insurance segment’s assessment of the collectibility
of commercial mortgage loans. Changing vacancies and rents are incorporated into the analysis performed to measure the
allowance for credit losses. In addition, the Insurance segment continuously monitors its commercial mortgage loan portfolio
to identify risk. Areas of emphasis are properties that have exposure to specific geographic events or have deteriorating
credit.
The Insurance segment’s residential mortgage loan portfolio primarily includes mortgage loans backed by single family
rental properties, prime loans, and re-performing loans that were purchased at a discount after they were modified and
returned to performing status. The Insurance segment also extends financing to counterparties in the form of repurchase
agreements secured by mortgage loans, including performing and non-performing mortgage loans.
As of September 30, 2026, the payment status of 97% of the residential mortgage loan portfolio is current, and
approximately $254.9 million is 90 days or more past due or in process of foreclosure (representing 1% of the total residential
mortgage portfolio). As of December 31, 2025, the payment status of 97% of the residential mortgage loan portfolio was
current and approximately $273.4 million were 90 days or more past due or in process of foreclosure (representing 1% of the
total residential mortgage portfolio).
The weighted average loan-to-value ratio for residential mortgage loans was 62% and 64% as of September 30, 2026 and
December 31, 2025, respectively.
The Insurance segment’s consumer loan portfolio is primarily comprised of home improvement loans, residential solar
loans, student loans, and auto loans. As of September 30, 2026, 97% of the consumer loan portfolio is in current status and
approximately $27.6 million is 90 days or more past due or in process of foreclosure (representing 1% of the total consumer
loan portfolio).
See Note 7 “Investments” in the accompanying financial statements in this report for additional information regarding
the Insurance segment’s investment portfolio.
Additional Information
To provide supplemental information to stockholders about the net assets of KKR on a segment basis, KKR’s book value
was $35.5 billion as of September 30, 2026, which included cash and short-term investments of $5.4 billion, which excludes
Global Atlantic’s cash and short-term investments. KKR's book value includes its net investment in Global Atlantic,
investments in the Asset Management and Strategic Holdings segments, and the net impact of certain other assets and
liabilities, including income taxes. KKR's book value excludes the net assets allocable to investors in KKR’s investment funds
and other noncontrolling interest holders. For the nine months ended September 30, 2026, the Asset Management segment
transferred $0.7 billion of investments to the Insurance segment for which no gain or loss was recognized upon transfer.
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Reconciliations to GAAP Measures
Net Income (Loss) Attributable to KKR & Co. Inc. Common Stockholders
Three Months Ended | Nine Months Ended | ||||||
($ in thousands) | September 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 | |||
Net Income (Loss) - KKR Common Stockholders (GAAP) | $1,121,176 | $859,927 | $2,146,028 | $1,146,390 | |||
Preferred Stock Dividends | 40,430 | 40,430 | 121,289 | 78,166 | |||
Net Income (Loss) Attributable to Noncontrolling Interests | 76,303 | 939,465 | 375,976 | 2,654,228 | |||
Income Tax Expense (Benefit) | 272,543 | 359,739 | 704,033 | 620,612 | |||
Income (Loss) Before Tax (GAAP) | $1,510,452 | $2,199,561 | $3,347,326 | $4,499,396 | |||
Impact of Consolidation and Other | 82,123 | (928,301) | (238,351) | (2,825,266) | |||
Preferred Stock Dividends | (40,430) | (40,430) | (121,289) | (78,166) | |||
Income Taxes on Adjusted Earnings | (311,830) | (325,158) | (874,170) | (862,875) | |||
Asset Management Adjustments: | |||||||
Unrealized (Gains) Losses | 234,747 | (76,839) | 540,488 | 560,252 | |||
Unrealized Carried Interest | 386,450 | 235,801 | 389,146 | (1,001,818) | |||
Unrealized Carried Interest Compensation | (309,171) | (188,642) | (318,116) | 801,297 | |||
Transaction-related and Non-operating Items(1) | 236,431 | 47,409 | 353,124 | 68,725 | |||
Equity-based Compensation – Time Based | 58,270 | 63,287 | 184,689 | 205,314 | |||
Equity-based Compensation – Market Condition | 117,832 | 88,437 | 325,491 | 259,548 | |||
Amortization of Acquired Intangibles | 12,695 | 715 | 25,382 | 715 | |||
Strategic Holdings Adjustments: | |||||||
Unrealized (Gains) Losses | (349,192) | (57,019) | (284,058) | (442,731) | |||
Insurance Adjustments: | |||||||
(Gains) Losses from Investments | 67,124 | 166,098 | 1,034,128 | 1,815,122 | |||
Non-Operating Changes in Policy Liabilities and Derivatives | (82,882) | 34,377 | (97,923) | 261,466 | |||
Transaction-Related and Non-Operating Items(1) | 9,501 | 21,120 | 33,872 | 23,314 | |||
Equity-Based Compensation | 19,452 | 28,487 | 65,467 | 72,550 | |||
Amortization of Acquired Intangibles | 3,921 | 4,699 | 22,520 | 14,097 | |||
Adjusted Net Income | $1,645,493 | $1,273,602 | $4,387,726 | $3,370,940 | |||
Interest Expense, Net | 85,508 | 56,692 | 260,974 | 184,221 | |||
Preferred Stock Dividends | 40,430 | 40,430 | 121,289 | 91,643 | |||
Net Income Attributable to Noncontrolling Interests | 4,018 | 5,667 | 11,541 | 12,002 | |||
Income Taxes on Adjusted Earnings | 311,830 | 325,158 | 874,170 | 862,875 | |||
Total Segment Earnings | $2,087,279 | $1,701,549 | $5,655,700 | $4,521,681 | |||
Net Realized Performance Income | (150,578) | (232,665) | (559,653) | (429,968) | |||
Net Realized Investment Income | (198,884) | (73,632) | (493,825) | (389,793) | |||
Total Operating Earnings | $1,737,817 | $1,395,252 | $4,602,222 | $3,701,920 | |||
Total Investing Earnings | 349,462 | 306,297 | 1,053,478 | 819,761 | |||
Depreciation and Amortization | 24,455 | 19,589 | 65,357 | 47,033 | |||
Adjusted EBITDA | $2,111,734 | $1,721,138 | $5,721,057 | $4,568,714 | |||
(1)For the three and nine months ended September 30, 2026, Transaction-related and Other Non-operating items include (i) $185 million and $262 million
related to transaction-related costs and other corporate actions, respectively, which in both periods include a $230 million impairment charge taken on
one of our asset management partnerships, accounted for under the equity method of accounting, partially offset by $75 million related to the release of
a contingent reserve, (ii) $14 million and $38 million of costs associated with certain integration and restructuring initiatives across our Asset
Management and Insurance businesses, respectively, and (iii) $47 million and $87 million of acquisition-related stock consideration and other,
respectively.
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KKR & Co. Inc. Stockholders' Equity - Common Stock
As of | |
($ in thousands) | September 30, 2026 |
($ in thousands) | |
KKR & Co. Inc. Stockholders' Equity - Common Stock (GAAP) | $27,715,202 |
Impact of Consolidation and Other | 417,398 |
Exchangeable Securities | 881,709 |
Accumulated Other Comprehensive (Income) Loss (AOCI) and Other (Insurance) | 6,447,470 |
Accumulated Unrealized (Gains) Losses on Loans carried at Fair Value (Insurance) | 50,302 |
KKR Book Value(1) | $35,512,081 |
(1)Book Value is a non-GAAP performance measure, which provides additional insight into the net assets of KKR presented on a basis that (i) excludes the net
assets that are allocated to investors in KKR’s investment funds and other noncontrolling interest holders, (ii) includes the net assets that are attributable
to certain securities exchangeable into shares of common stock of KKR & Co. Inc., (iii) includes the net investment in Global Atlantic, investments in the
Asset Management and Strategic Holdings segments, and (iv) includes the net impact of certain other assets and liabilities, including the net impact of
KKR's tax assets and liabilities as calculated under GAAP. Book Value excludes the dilutive impact of the conversion of any of KKR & Co. Inc.’s Series D
Mandatory Convertible Preferred Stock. If all outstanding shares of the Series D Mandatory Convertible Preferred Stock were converted into KKR & Co.
Inc. common stock as of September 30, 2026, our Book Value would have increased by $2.5 billion and our common stock outstanding would have
increased by 21.4 million shares.
Cash and Cash Equivalents - Asset Management and Strategic Holdings
As of | |
($ in thousands) | September 30, 2026 |
Cash and Cash Equivalents - Asset Management and Strategic Holdings (GAAP) | $9,717,261 |
Impact of Consolidation and Other | (4,673,552) |
Short-term Investments | 341,683 |
Cash and Short-term Investments | $5,385,392 |
Investments - Asset Management and Strategic Holdings
As of | |
($ in thousands) | September 30, 2026 |
Investments - Asset Management and Strategic Holdings (GAAP) | $127,772,673 |
Impact of Consolidation and Other | (118,528,678) |
Short-term Investments | (341,683) |
Investments - Asset Management Segment | $8,902,312 |
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Liquidity
We manage our liquidity and capital requirements by (a) focusing on our cash flows before the consolidation of our funds
and CFEs and the effect of changes in short term assets and liabilities, which we anticipate will be settled for cash within one
year, and (b) seeking to maintain access to sufficient liquidity through various sources. The overall liquidity framework and
cash management approach of our insurance business are also based on seeking to build an investment portfolio that is cash
flow matched, providing cash inflows from insurance assets that meet our insurance companies' expected cash outflows to
pay their liabilities. Our primary cash flow activities typically involve (i) generating cash flow from operations; (ii) generating
income from investment activities, by investing in investments that generate yield (namely interest and dividends), as well as
through the sale of investments and other assets; (iii) funding capital commitments that we have made to, and advancing
capital to, our funds and CLOs; (iv) developing and funding new investment strategies, investment products, and other growth
initiatives, including acquisitions of other investments, assets, and businesses; (v) underwriting and funding capital
commitments in our capital markets business; (vi) distributing cash flow to our stockholders and any holders of our preferred
stock, if any; and (vii) paying borrowings, interest payments, and repayments under credit agreements, our senior and
subordinated notes, and other borrowing arrangements. See “—Liquidity,” “—Liquidity Needs,” and “—Dividends and Stock
Repurchases.”
See “Risk Factors” in our Annual Report and “—Business Environment” in this report for more information on factors that
may impact our business, financial performance, operating results, and valuations.
Sources of Liquidity
Our primary sources of liquidity consist of amounts received from: (i) our operating activities, including the fees earned
from our funds, portfolio companies, and capital markets transactions; (ii) realizations on carried interest from our investment
funds; (iii) interest and dividends from investments that generate yield, including our investments in CLOs; (iv) in our
insurance business, cash inflows in respect of new premiums, policyholder deposits, reinsurance transactions, and funding
agreements, including through memberships in FHLBs; (v) realizations on and sales of investments and other assets, including
the transfers of investments or other assets for fund formations (including CLOs and other investment vehicles); and (vi)
borrowings, including advances under our revolving credit facilities, debt offerings, repurchase agreements, and other
borrowing arrangements. In addition, we may generate cash proceeds from issuances of our or our subsidiaries' equity
securities. We have access to funding under various credit facilities, other borrowing arrangements and other sources of
liquidity that we have entered into with major financial institutions or which we receive from the capital markets. For a
discussion of our debt obligations, including our debt securities, revolving credit agreements and loans, see Note 16 “Debt
Obligations” in our financial statements.
Many of our investment funds like our private equity and real assets funds provide for carried interest. With respect to
our carry-paying investment funds, carried interest is eligible to be distributed to the general partner of the fund only after all
of the following are met: (i) a realization event has occurred (e.g., sale of a portfolio company, dividend, etc.); (ii) the vehicle
has achieved positive overall investment returns since its inception, in excess of performance hurdles where applicable, and is
accruing carried interest; and (iii) with respect to investments with a fair value below cost, cost has been returned to fund
investors in an amount sufficient to reduce remaining cost to the investments' fair value. Even after all of the preceding
conditions are met, the general partner of the fund may, in its sole discretion, decide to defer the distribution of carried
interest to it to a later date. In addition, these funds generally include what is called a “clawback” provision, which provides
that the general partner must return any carried interest that is paid in excess of what the general partner is entitled to
receive at the end of the term of the fund, as discussed further below.
As of September 30, 2026, certain of our investment funds had met the first and second criteria, as described above, but
did not meet the third criteria. In these cases, carried interest accrues on the consolidated statement of operations, but will
not be distributed in cash to us as the general partner of an investment fund upon a realization event. For a fund that has a
fair value above cost, overall, and is otherwise accruing carried interest, but has one or more investments where fair value is
below cost, the shortfall between cost and fair value for such investments is referred to as a “netting hole.” When netting
holes are present, realized gains on individual investments that would otherwise allow the general partner to receive carried
interest distributions are instead used to return invested capital to our funds' limited partners in an amount equal to the
netting hole. Once netting holes have been filled with either (i) return of capital equal to the netting hole for those
investments where fair value is below cost or (ii) increases in the fair value of those investments where fair value is below
cost, then realized carried interest will be distributed to the general partner upon a realization event. A fund that is in a
position to pay cash carry refers to a fund for which carried interest is expected to be paid to the general partner upon the
next material realization event, which includes funds with no netting holes as well as funds with a netting hole that is
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sufficiently small in size such that the next material realization event would be expected to result in the payment of carried
interest. Strategic investor partnerships with fund investors may require netting across the various funds in which they invest,
which may reduce the carried interest we otherwise would have earned if such fund investors were to have invested in our
funds without the existence of the strategic investor partnership. As of September 30, 2026, netting holes in excess of $50
million existed at European Fund VI and Asian Fund III in the amount of $669 million and $61 million, respectively. The
remaining unrealized gains accrued at these funds as of September 30, 2026 are in excess of their netting holes. In accordance
with the criteria set forth above, other funds currently have and may in the future develop netting holes, and netting holes for
those and other funds may otherwise increase or decrease in the future.
If the investment fund has distributed carried interest but subsequently does not have sufficient value to provide for the
distribution of carried interest at the end of the life of the investment fund, the general partner is typically required to return
previously distributed carried interest to the fund investors. Current and former employees who received distributions of
carried interest subject to clawback would be required to return the amount of such distributions to KKR. However, it is KKR’s
obligation to return carried interest subject to clawback to the fund investors. As of September 30, 2026, approximately $196
million of previously distributed carried interest, in aggregate, was subject to a clawback obligation, assuming that all
applicable carry-paying investment funds were liquidated at their reported fair values as of September 30, 2026. As of
September 30, 2026, there are no investment funds subject to a clawback obligation in excess of $50 million that has not
already reduced net realized performance income. See Note 24 “Commitments and Contingencies—Contingent Repayment
Guarantees” in our financial statements included elsewhere in this report for further information. See also the negative
amounts included in the Carried Interest column in the table included in this Item 2 in “Fund Performance Metrics” for further
information on clawback obligations.
Liquidity Needs
We expect that our primary liquidity needs will consist of cash required to meet various obligations, including, without
limitation, to:
•continue to support and grow our asset management business, including seeding new investment strategies,
supporting capital commitments made by our investment vehicles to existing and future funds, co-investments
and otherwise supporting the investment vehicles that we sponsor, and acquiring other assets, businesses, and
investments for our businesses;
•continue to support and grow our insurance business;
•continue to support and grow our strategic holdings business, including through the acquisition of new operating
companies;
•grow and expand our businesses generally, including by acquiring or launching new, complementary, or adjacent
businesses;
•warehouse investments in portfolio companies or other investments for the benefit of one or more of our funds,
accounts or CLOs or other investment vehicles pending the contribution of committed capital by the fund
investors in such investment vehicles, and advancing capital to them for operational or other needs;
• funding requirements to levered investment vehicles or structured transactions;
•service debt obligations including the payment of obligations at maturity, on interest payment dates or upon
redemption;
•fund cash operating expenses and contingencies, including for litigation matters and guarantees;
•pay corporate income taxes and other taxes;
•pay policyholders and amounts in our insurance business related to investment, reinvestment, reinsurance, or
funding agreement activity;
•pay amounts that may become due under our tax receivable agreement;
•pay cash dividends in accordance with our dividend policy for our common stock or the terms of our preferred
stock;
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•underwrite commitments, advance loan proceeds, and fund syndication commitments within our capital
markets business;
•post or return collateral in respect of derivative contracts;
•satisfy regulatory requirements for our capital markets business, risk retention requirements for CLOs (to the
extent they may apply), or to address capital needs of unregulated and regulated subsidiaries, including capital
and collateral requirements, as applicable, for our insurance and broker-dealer subsidiaries; and
•repurchase shares of our common stock or retire equity grants pursuant to the share repurchase program or
repurchase or redeem other securities issued by us (for a discussion of KKR's share repurchase program, see
Note 22 “Equity” in our financial statements).
Capital Commitments
The agreements governing our active investment funds generally require the general partners of the funds to make
minimum capital commitments to such funds, which generally range from 2% to 8% of a fund's total capital commitments at
final closing, but may be greater for certain funds (i) where we are pursuing newer strategies, (ii) where third party investor
demand is limited, and (iii) where a larger commitment is consistent with the asset allocation strategy.
As of September 30, 2026, KKR had unfunded commitments consisting of $10.8 billion to its investment funds and other
investment vehicles across Private Equity, Real Assets, and Credit and Liquid Strategies business lines. These unfunded
commitments include $2.7 billion of uncalled capital commitments to certain investment vehicles in connection with
investments in the core private equity strategy. These unfunded commitments also include funding requirements to levered
investment vehicles and structured transactions to fund or otherwise be liable for a portion of the vehicle's investment losses
and/or to provide the vehicle with liquidity upon certain termination events.
In addition to these uncalled commitments and funding obligations to KKR's investment funds and investment vehicles,
KKR has entered into contractual commitments primarily with respect to underwriting transactions, debt financing, revolving
credit facilities, and equity syndications in our Capital Markets business line. As of September 30, 2026, these capital markets
commitments amounted to $1.3 billion. Whether these amounts are actually funded, in whole or in part, depends on the
contractual terms of such capital markets commitments, including the satisfaction or waiver of any conditions to closing or
funding. From time to time, we fund these various capital markets commitments noted above in our capital markets business
by drawing all or substantially all of our availability for borrowings under our available credit facilities available for our Capital
Markets business line. We generally expect these borrowings by our capital markets business to be repaid promptly as these
commitments are syndicated to third parties or otherwise fulfilled or terminated, although we may in some instances elect to
retain a portion of the commitments for our own investment. Additionally, KKR's capital markets business has arrangements
with third parties, which are expected to reduce KKR's risk under certain circumstances when underwriting certain debt
transactions. As a result, our unfunded capital markets commitments as of September 30, 2026 have been reduced to reflect
the amount expected to be funded by such third parties. As of September 30, 2026, KKR's capital markets business line has
entered into such arrangements representing a total notional amount of $7.0 billion. For more information about our Capital
Markets business line's risks, see “Risk Factors—Risks Related to Our Business—Our capital markets activities expose us to
material risks” in our Annual Report.
Tax Receivable Agreement
On May 30, 2022, KKR terminated the tax receivable agreement with KKR Holdings other than with respect to exchanges
of KKR Holdings equity completed prior to such date. As of September 30, 2026, an undiscounted payable of $335.1 million
has been recorded in due to affiliates in the financial statements representing management's best estimate of the amounts
currently expected to be owed for certain exchanges of KKR Holdings equity that took place prior to the termination of the tax
receivable agreement. As of September 30, 2026, $155.8 million of cumulative cash payments have been made under the tax
receivable agreement since inception.
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Dividends and Stock Repurchases
A dividend of $0.195 per share of our common stock has been declared and will be paid on December 3, 2026 to holders
of record of our common stock as of the close of business on November 19, 2026.
A dividend of $0.78125 per share of Series D Mandatory Convertible Preferred Stock has been declared and set aside for
payment on December 1, 2026 to holders of record of Series D Mandatory Convertible Preferred Stock as of the close of
business on November 15, 2026.
When KKR & Co. Inc. receives distributions from KKR Group Partnership, holders of exchangeable securities receive their
pro rata share of such distributions from KKR Group Partnership.
The declaration and payment of dividends to our common or preferred stockholders will be at the sole discretion of our
Board of Directors, and our dividend policy may be changed at any time. We announced on February 5, 2026 that our current
dividend policy will be to pay dividends to holders of our common stock in an annual aggregate amount of $0.78 per share (or
a quarterly dividend of $0.195 per share) beginning with the dividend announced with the results for the three months ended
March 31, 2026. The declaration of dividends is subject to the discretion of our Board of Directors based on a number of
factors, including KKR’s future financial performance and other considerations that the Board of Directors deems relevant,
and compliance with the terms of KKR & Co. Inc.'s certificate of incorporation and applicable law. For U.S. federal income tax
purposes, any dividends we pay (including dividends on our preferred stock) generally will be treated as qualified dividend
income for U.S. individual stockholders to the extent paid out of our current or accumulated earnings and profits, as
determined for U.S. federal income tax purposes. There can be no assurance that future dividends will be made as intended
or at all or that any particular dividend policy for our common stock or our preferred stock will be maintained. Furthermore,
the declaration and payment of distributions by KKR Group Partnership and our other subsidiaries may also be subject to
legal, contractual and regulatory restrictions, including restrictions contained in our debt agreements.
Since 2015, KKR has repurchased, or retired equity grants representing, a total of 104.1 million shares of common stock
for $3.7 billion, which equates to an average price of $35.28 per share. As of November 4, 2026, there is approximately
$33 million remaining under KKR's share repurchase program. For further information See “Part II—Item 2—Unregistered
Sales of Equity Securities and Use of Proceeds.”
Contractual Obligations, Commitments and Contingencies
In the ordinary course of business, we and our consolidated funds and CFEs enter into contractual arrangements that may
require future cash payments. Contractual arrangements include (1) commitments to fund the purchase of investments or
other assets (including obligations to fund capital commitments as the general partner of our investment funds) or to fund
collateral for derivative transactions or otherwise, (2) obligations arising under our senior notes, subordinated notes, and
other indebtedness, (3) commitments by our capital markets business to underwrite transactions or to lend capital, (4)
obligations arising under insurance policies written, (5) other contractual obligations, including servicing agreements with
third-party administrators for insurance policy administration, and (6) commitments to fund the business, operations or
investments of our subsidiaries. In addition, we may incur contingent liabilities for claims that may be made against us in the
future. For more information about these contingent liabilities, please see Note 24 “Commitments and Contingencies” in our
financial statements.
Off Balance Sheet Arrangements
We do not have any off-balance sheet financings or liabilities other than contractual commitments and other legal
contingencies incurred in the normal course of our business.
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Critical Accounting Policies and Estimates
The preparation of our financial statements in accordance with GAAP requires our management to make estimates and
judgments that affect the reported amounts of assets and liabilities, the recognition and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts of revenues, expenses, investment income (loss)
and income taxes during the reporting periods. Such estimates include but are not limited to (i) the valuation of investments
and financial instruments, (ii) the determination of the income tax provision, (iii) the impairment of goodwill and intangible
assets, (iv) the impairment of available-for-sale investments, (v) the valuation of insurance policy liabilities, including market
risk benefits, (vi) the valuation of embedded derivatives in policy liabilities and funds withheld, and (vii) the determination of
the allowance for loan losses. Our management bases these estimates and judgments on available information, historical
experience and other assumptions that we believe are reasonable under the circumstances. However, these estimates,
judgments and assumptions are often subjective and may be impacted negatively based on changing circumstances or
changes in our analyses. If actual amounts are ultimately different from those estimated, judged or assumed, revisions are
included in the financial statements in the period in which the actual amounts become known. We believe our critical
accounting policies could potentially produce materially different results if we were to change underlying estimates,
judgments or assumptions.
For a further discussion about our critical accounting policies, see Note 2 “Summary of Significant Accounting Policies” in
our financial statements included in this report.
Basis of Accounting
We consolidate the financial results of KKR Group Partnership and its consolidated entities, which include the accounts of
our investment advisers, broker-dealers, Global Atlantic’s insurance companies, the general partners of certain
unconsolidated investment funds, general partners of consolidated investment funds and their respective consolidated
investment funds, and certain other entities including CFEs.
When an entity is consolidated, we reflect the accounts of the consolidated entity, including its assets, liabilities,
revenues, expenses, investment income, cash flows, and other amounts, on a gross basis. While the consolidation of an
investment fund or entity does not have an effect on the amounts of Net Income Attributable to KKR or KKR's stockholders'
equity that KKR reports, the consolidation does significantly impact the financial statement presentation under GAAP. This is
due to the fact that the accounts of the consolidated entities are reflected on a gross basis while the allocable share of those
amounts that are attributable to third parties are reflected as single line items. The single line items in which the accounts
attributable to third parties are recorded are presented as noncontrolling interests on the consolidated statements of
financial condition and net income (loss) attributable to noncontrolling interests on the consolidated statements of
operations.
The presentations in the consolidated statement of financial condition and consolidated statement of operations reflect
the significant industry diversification of KKR by its acquisition of Global Atlantic. Global Atlantic operates an insurance
business, and KKR operates an asset management business, which manages the operations of the Strategic Holdings segment
(see Note 21 “Segment Reporting”) in our financial statements included in this report, each of which possess distinct
characteristics. As a result, KKR developed a two-tiered approach for the financial statements presentation, where Global
Atlantic's insurance operations are presented separately from KKR's asset management business. KKR believes that these
separate presentations provide a more informative view of the consolidated financial position and results of operations than
traditional aggregated presentations and that reporting Global Atlantic’s insurance operations separately is appropriate given,
among other factors, the relative significance of Global Atlantic’s policy liabilities, which are not obligations of KKR (other than
the insurance companies that issued them). If a traditional aggregate presentation were to be used, KKR would expect to
eliminate or combine several identical or similar captions, which would condense the presentations, but would also reduce
the level of information presented. KKR also believes that using a traditional aggregate presentation would result in no new
line items compared to the two-tier presentation included in the financial statements in this report.
In the ordinary course of business, KKR’s Asset Management, Strategic Holdings, and Insurance businesses enter into
transactions with each other, which may include transactions pursuant to their investment management agreements and
financing arrangements. The borrowings from these financing arrangements are non-recourse to KKR beyond the assets
pledged to support such borrowings. All the investment management and financing arrangements amongst KKR’s Asset
Management, Strategic Holdings, and Insurance businesses are eliminated in consolidation.
All intercompany transactions and balances have been eliminated.
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Consolidation
KKR consolidates all entities that it controls either through a majority voting interest or as the primary beneficiary of
variable interest entities (“VIEs”). The following discussion is intended to provide supplemental information about how the
application of consolidation principles impact our financial results, and management’s process for implementing those
principles including areas of significant judgment. For a detailed description of our accounting policy on consolidation, see
Note 2 “Summary of Significant Accounting Policies” in our financial statements included in this report.
As part of its consolidation procedures, KKR evaluates: (i) whether it holds a variable interest in an entity, (ii) whether the
entity is a VIE, and (iii) whether the KKR’s involvement would make it the primary beneficiary. The determination that KKR
holds a controlling financial interest in an investment vehicle significantly changes the presentation of our consolidated
financial statements.
The assessment of whether we consolidate an investment vehicle we manage requires the application of significant
judgment. These judgments are applied both at the time we become involved with an investment vehicle and on an ongoing
basis and include, but are not limited to:
•Determining whether our management fees, carried interests, or incentive fees represent variable interests - We
make judgments as to whether the fees we earn are commensurate with the level of effort required for those fees
and at market rates. In making this judgment, we consider, among other things, the extent of third party investment
in the entity and the terms of any other interests we hold in the VIE.
•Determining whether a legal entity qualifies as a VIE - For those entities where KKR holds a variable interest,
management determines whether each of these entities qualifies as a VIE and, if so, whether or not KKR is the
primary beneficiary. The assessment of whether the entity is a VIE is generally performed qualitatively, which
requires judgment. These judgments include: (i) determining whether the equity investment at risk is sufficient to
permit the entity to finance its activities without additional subordinated financial support, (ii) evaluating whether
the equity holders, as a group, can make decisions that have a significant effect on the economic performance of the
entity, (iii) determining whether two or more parties’ equity interests should be aggregated, and (iv) determining
whether the equity investors have proportionate voting rights to their obligations to absorb losses or rights to
receive returns from an entity. Entities that do not qualify as VIEs are generally assessed for consolidation as voting
interest entities. Under the voting interest entity model, KKR consolidates those entities it controls through a
majority voting interest.
•Concluding whether KKR has an obligation to absorb losses or the right to receive benefits that could potentially be
significant to the VIE - As there is no explicit threshold in GAAP to define “potentially significant,” we must apply
judgment and evaluate both quantitative and qualitative factors to conclude whether this threshold is met.
Changes to these judgments could result in a change in the consolidation conclusion for a legal entity.
Fair Value Measurements
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date under current market conditions. For further information about our
fair value measurements accounting policies, please see “Note 2—Summary of Significant Accounting Policies—Fair Value
Measurements” in our Annual Report.
Level III Valuation Methodologies
Our investments and financial instruments are impacted by various economic conditions and events outside of our
control that are difficult to quantify or predict, which may have a significant impact on the valuation of our investments and,
therefore, on the carried interest and investment income we realize.
There is inherent uncertainty involved in the valuation of Level III investments, and there is no assurance that, upon
liquidation, KKR will realize the values reflected in our valuations. Our valuations may differ significantly from the values that
would have been used had an active market for the investments existed, and it is reasonably possible that the difference
could be material. See “Risk Factors” in our Annual Report and “—Business Environment” in this report for more information
on factors that may impact our business, financial performance, operating results, and valuations.
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Key unobservable inputs that have a significant impact on our Level III valuations as described above are included in Note
9 “Fair Value Measurements” in our financial statements.
Across the total Level III private equity investment portfolio (including core private equity investments) held directly and
through both consolidated and unconsolidated investment vehicles in our Asset Management segment, the overall weights
ascribed to a market comparables valuation methodology, the discounted cash flow valuation methodology, and a valuation
methodology based on pending sales for this portfolio of Level III private equity investments (including core private equity
investments) were 50%, 47%, and 3%, respectively, as of September 30, 2026.
Across the total Level III real assets investment portfolio held directly and through both consolidated and unconsolidated
investment vehicles in our Asset Management segment, the overall weights ascribed to a market comparables valuation
methodology, the discounted cash flow valuation methodology, the direct income capitalization valuation methodology, and a
valuation methodology based on pending sales for this portfolio of Level III real assets investments were 3%, 93%, 2%, and
2%, respectively, as of September 30, 2026.
Level III Valuation Process
The valuation process involved for Level III measurements for our financial statements is completed on a quarterly basis
and is designed to subject the valuation of Level III investments to an appropriate level of consistency, oversight, and review.
For private equity and real asset investments classified as Level III, investment professionals prepare preliminary
valuations based on their evaluation of financial and operating data, company specific developments, market valuations of
comparable companies, and other factors. KKR begins its procedures to determine the fair values of its Level III assets
approximately one month prior to the end of a reporting period, and KKR follows additional procedures to ensure that its
determinations of fair value for its Level III assets are appropriate as of the relevant reporting date. These preliminary
valuations are generally reviewed by an independent valuation firm engaged by KKR to perform certain procedures in order to
assess the reasonableness of KKR's valuations. The valuations of certain real asset investments are determined solely by
independent valuation firms without the preparation of preliminary valuations by our investment professionals, and instead
such independent valuation firms rely on valuation information available to it as a broker or valuation firm. For credit
investments, an independent valuation firm is engaged by KKR to assist with the valuations of most investments classified as
Level III. As of September 30, 2026, less than 5% of the total value of Level III investments in aggregate across all of our
segments were not valued with the engagement of an independent valuation firm.
For Level III investments, KKR has a Global Valuation Committee that is responsible for coordinating and implementing
the firm's valuation processes to ensure consistency in the application of valuation principles across portfolio investments and
between reporting periods. The Global Valuation Committee is assisted by the asset class-specific valuation committees,
which are responsible for the review and approval of all preliminary Level III valuations in their respective asset classes at least
on a quarterly basis. The members of these valuation committees are comprised of investment professionals and
professionals from business operations functions such as legal, compliance, and finance, who are not primarily responsible for
the management of the investments. All Level III valuations for investments are also subject to approval by the Global
Valuation Committee, which is comprised of senior employees including investment professionals and professionals from
business operations functions, and includes KKR's Chief Financial Officer, Chief Legal Officer and General Counsel, and Chief
Compliance Officer. Once Level III valuations are approved by the Global Valuation Committee, a presentation of such
valuations is provided to the Audit Committee and then to the Board of Directors of KKR & Co. Inc. Level III valuations for our
insurance segment’s investments are approved by the Global Atlantic Valuation Committee prior to being presented to the
Global Valuation Committee.
As described above, Level III investments were valued using internal models with significant unobservable inputs, and our
determinations of the fair values of these investments may differ materially from the values that would have resulted if
readily observable inputs had existed. Additional external factors may cause those values, and the values of investments for
which readily observable inputs exist, to increase or decrease over time, which may create volatility in our earnings and the
amounts of assets and stockholders' equity that we report from time to time.
Changes in the fair value of investments impacts the amount of carried interest that is recognized as well as the amount
of investment income that is recognized for investments across our business segments and through our consolidated funds as
described below. We estimate that an immediate 10% decrease in the fair value of investments held directly and through
consolidated investment funds generally would result in a commensurate change in the amount of net gains (losses) from
investment activities for investments held directly and through investment funds and a more significant impact to the amount
of carried interest recognized, regardless of whether the investment was valued using observable market prices or
management estimates with significant unobservable pricing inputs. With respect to consolidated investment funds, the
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impact that the consequential decrease in investment income would have on net income attributable to KKR would generally
be significantly less than the amount described above, given that a majority of the change in fair value of our consolidated
funds would be attributable to noncontrolling interests and therefore we are only impacted to the extent of our carried
interest and our ownership in the consolidated investment funds and investment vehicles.
As of September 30, 2026, upon completion by, where applicable, independent valuation firms of certain limited
procedures requested to be performed by them on certain Level III investments, the independent valuation firms concluded
that the fair values, as determined by KKR (including Global Atlantic), of those investments reviewed by them were
reasonable. The limited procedures did not involve an audit, review, compilation or any other form of examination or
attestation under generally accepted auditing standards and were not conducted on all Level III investments. We are
responsible for determining the fair value of investments in good faith, and the limited procedures performed by an
independent valuation firm are supplementary to the inquiries and procedures that we are required to undertake to
determine the fair value of the commensurate investments on a GAAP basis.
As of September 30, 2026, there were no investments across business segments which represented greater than 5% of
total investments on a GAAP basis. Our investment income on a GAAP and segment basis can be impacted by volatility in the
public markets. See “Risk Factors” in our Annual Report and “—Business Environment” in this report for a discussion of factors
that may impact the valuations of our investments, financial results, operating results, and valuations, and “—Segment
Balance Sheet Measures” for additional information regarding our largest holdings on a segment basis.
Business Combinations
KKR accounts for business combinations using the acquisition method of accounting, under which the purchase price of
the acquisition is allocated to the assets acquired and liabilities assumed using the fair values determined by management as
of the acquisition date.
Management’s determination of fair value of assets acquired and liabilities assumed at the acquisition date is based on
the best information available in the circumstances and may incorporate management’s own assumptions and involve a
significant degree of judgment. We use our best estimates and assumptions to accurately assign fair value to the tangible and
identifiable intangible assets acquired and liabilities assumed at the acquisition date as well as the useful lives of those
acquired intangible assets. Examples of critical estimates in valuing certain of the intangible assets we have acquired include,
but are not limited to, future expected cash inflows and outflows, future fundraising assumptions, expected useful life,
discount rates, and income tax rates. Our estimates for future cash flows are based on historical data, various internal
estimates and certain external sources, and are based on assumptions that are consistent with the plans and estimates we are
using to manage the underlying assets acquired. We estimate the useful lives of the intangible assets based on the expected
period over which we anticipate generating economic benefit from the asset. We base our estimates on assumptions we
believe to be reasonable but that are unpredictable and inherently uncertain. Unanticipated events and circumstances may
occur that could affect the accuracy or validity of such assumptions, estimates or actual result.
Income Taxes
Significant judgment is required in estimating the provision for (benefit from) income taxes, current and deferred tax
balances (including valuation allowance), accrued interest or penalties, and uncertain tax positions. In evaluating these
judgments, we consider, among other items, projections of taxable income (including the character of such income),
beginning with historic results and incorporating assumptions of the amount of future pre-tax operating income. These
assumptions about future taxable income require significant judgment and are consistent with the plans and estimates that
KKR uses to manage its business. Revisions in estimates or actual costs of a tax assessment may ultimately be materially
different from the recorded accruals and unrecognized tax benefits, if any. Please see Note 18 “Income Taxes” in our financial
statements in this report for further details.
Critical Accounting Policies and Estimates – Asset Management and Strategic Holdings
Revenues
Fees and Other
Fees and other consist primarily of (i) management and incentive fees from providing investment management services
to unconsolidated funds, CLOs, other investment vehicles, and separately managed accounts; (ii) transaction fees earned in
connection with successful investment transactions and from capital markets activities; (iii) monitoring fees from providing
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services to portfolio companies; (iv) expense reimbursements from certain investment funds and portfolio companies; and
(v) consulting fees. These fees are based on the contractual terms of the governing agreements and are recognized when
earned, which coincides with the period during which the related services are performed and in the case of transaction fees,
upon closing of the transaction. Monitoring fees may provide for a termination payment following an initial public offering or
change of control. These termination payments are recognized in the period when the related transaction closes.
Transaction fee calculations and management fee calculations based on committed capital or invested capital typically do
not require discretion and therefore do not require the use of significant estimates or judgments. Management fee
calculations based on net asset value depend on the fair value of the underlying investments within the investment vehicles.
Estimates and assumptions are made when determining the fair value of the underlying investments within the funds and
could vary depending on the valuation methodology that is used as well as economic conditions.
Capital Allocation-Based Income (Loss)
Capital allocation-based income (loss) is earned from those arrangements whereby KKR serves as general partner and
includes income or loss from KKR's capital interest as well as “carried interest” which entitles KKR to a disproportionate
allocation of investment income or loss from an investment fund's limited partners.
Carried interest is recognized upon appreciation of the funds’ investment values above certain return hurdles set forth in
their partnership agreement. KKR recognizes revenues attributable to capital allocation-based income based upon the amount
that would be due pursuant to the fund partnership agreement at each period end as if the funds were terminated at that
date. Accordingly, the amount recognized reflects KKR’s share of the gains and losses of the associated funds’ underlying
investments measured at their then-current fair values relative to the fair values as of the end of the prior period. Because of
the inherent uncertainty in measuring the fair value of investments in the absence of observable market prices as previously
discussed, these estimated values may differ significantly from the values that would have been used had a ready market for
the investments existed, and it is reasonably possible that the difference could be material.
Expenses
Compensation and Benefits
Compensation and Benefits expense includes (i) base cash compensation consisting of salaries and wages, (ii) benefits,
(iii) carry pool allocations, (iv) equity-based compensation, and (v) discretionary cash bonuses.
Discretionary Cash Bonus
To supplement base cash compensation, benefits, carry pool allocations, and equity-based compensation, we typically
pay discretionary cash bonuses, which are included in Compensation and Benefits expense in the consolidated statements of
operations, based principally on the level of (i) management fees and other fee related revenues (including incentive fees), (ii)
realized performance income, which includes realized carried interest, and (iii) realized investment income earned during the
year. The amounts paid as discretionary cash bonuses, if any, are at our sole discretion and vary from individual to individual
and from period to period, including having no cash bonus. We accrue discretionary cash bonuses when payment becomes
probable and reasonably estimable which is generally in the period when we make the decision to pay discretionary cash
bonuses and is based upon a number of factors, including the recognition of asset management segment revenues, and other
factors determined during the year.
We expect to pay our employees by assigning a percentage range to each component of asset management segment
revenues. We expect to use approximately: (i) 15%-20% of fee related revenues, (ii) 70%-80% of realized carried interest and
incentive fees not included in fee related performance revenues or earned from our hedge fund partnerships, and (iii)
10%-20% of realized investment income and hedge fund partnership incentive fees, to pay our asset management employees.
Because these ranges are applied to applicable asset management segment revenue components independently, and on an
annual basis, the amount paid as a percentage of total asset management segment revenue will vary and will, for example,
likely be higher in a period with relatively higher realized carried interest and lower in a period with relatively lower realized
carried interest. We decide whether to pay a discretionary cash bonus and determine the percentage of applicable revenue
components to pay compensation only upon the occurrence of the realization event. There is no contractual or other binding
obligation that requires us to pay a discretionary cash bonus to the asset management employees, except in limited
circumstances.
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Carry Pool Allocation
With respect to our funds that provide for carried interest, we allocate a portion of the realized and unrealized carried
interest that we earn to Associates Holdings, which we refer to as the carry pool, from which our asset management
employees and certain other carry pool participants are eligible to receive a carried interest allocation. The allocation is
determined based upon a fixed arrangement between Associates Holdings and us, and we do not exercise discretion on
whether to make an allocation to the carry pool upon a realization event. We refer to the portion of carried interest that we
allocate to the carry pool as the carry pool percentage.
Effective January 2, 2024, KKR applies a carry pool percentage of up to 80% for all funds, which is a carry pool percentage
in excess of the carry pool percentages previously fixed by investment fund as discussed further below, which depended on
the fund’s vintage. This increase to the carry pool percentage was approved by a majority of KKR's independent directors, and
the carry pool percentage may not be increased above 80% without the further approval of a majority of KKR's independent
directors. For funds that closed after December 31, 2023, the carry pool percentage is fixed at 80%. For funds that closed prior
to December 31, 2023, the carry pool percentage is calculated at a fixed percentage of 40%, 43%, or 65% (depending on the
fund’s vintage) for carried interest realized up to a high water mark, which was established based on the unrealized carried
interest balance that existed on January 2, 2024, plus an additional percentage amount up to 80% based on a formulaic
allocation, only if the unrealized carried interest balance at any period end exceeds the high water mark. This imposes a
limitation of the carry pool allocation for such funds based on the amount of cumulative unrealized carried interest income
earned subsequent to December 31, 2023.
For funds that closed before December 31, 2023, if the cumulative carried interest subsequent to December 31, 2023 is
not sufficient to fund this formulaic allocation, the allocation of earnings reverts to the carry pool percentage in effect before
this modification. As such, upon modification of the carry pool percentage effective on January 2, 2024, the cumulative
unrealized carried interest was not sufficient to fund the additional formulaic allocation percentage in excess of the pre-
existing 40%, 43%, and 65% carry pool percentages, and therefore no incremental expense was recognized as of such date.
The carry pool percentage applicable for all funds that closed prior to December 31, 2023 will not be less than their applicable
carry pool percentages of 40%, 43%, or 65% prior to December 31, 2023 (for funds that closed after December 31, 2020 but
before December 31, 2023, the carry pool percentage was fixed at 65%; for funds that closed after June 30, 2017 but before
December 31, 2020, the carry pool percentage was fixed at 43%; and the carry pool percentage was fixed at 40% for older
funds that contributed to KKR's carry pool), and will not be more than 80%. The intent of this modification is that for all funds
that closed prior to January 2, 2024, upon the final liquidation of each fund, realized carried interest distributed will equal the
historical fund carry pool allocations up to the high water mark and only distributions of realized carried interest in excess of
the high water mark will be distributed at 80 percent if and only if the unrealized carried interest balance at any period end
exceeds the high water mark. Under no circumstance would a distribution of carried interest exceed 80% of the total allocable
carried interest at any time.
KKR accounts for the carry pool as a compensatory profit-sharing arrangement in Accrued Expenses and Other Liabilities
within the accompanying consolidated statements of financial condition in conjunction with the related carried interest
income and it is recorded as compensation expense. The liability that is recorded in each period reflects the legal entitlement
of Associates Holdings at each point in time should the total unrealized carried interest be realized at the value recorded at
each reporting date. Upon a reversal of carried interest income, the related carry pool allocation, if any, is also reversed.
Accordingly, such compensation expense is subject to both positive and negative adjustments.
On the Sunset Date (which will not be later than December 31, 2026), KKR will acquire control of Associates Holdings and
will commence making decisions regarding the allocation of the carry proceeds pursuant to the limited partnership agreement
of Associates Holdings. Until the Sunset Date, our Co-Founders will continue to make decisions regarding the allocation of the
carry proceeds to themselves and others, pursuant to the limited partnership agreement of Associates Holdings, provided that
any allocation of carry proceeds to the Co-Founders will be on a percentage basis consistent with past practice. For additional
information about the Sunset Date and the Reorganization Agreement, see Note 1 “Organization” in our financial statements
included in this report.
Equity-based Compensation
In addition to the cash-based compensation and carry pool allocations as described above, employees receive equity
grants under our 2019 Equity Incentive Plan, most of which are subject to service-based vesting typically over a three to five-
year period from the date of grant, and some of which are also subject to the achievement of market-based conditions.
Certain of these grants are subject to post-vesting transfer restrictions and minimum retained ownership requirements.
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Compensation expense relating to the issuance of equity-based grants is measured at fair value on the grant date. In
determining the aggregate fair value of any award grants, we make judgments as to the grant-date fair value, particularly for
certain equity grants with a vesting condition based upon market conditions, whose grant date fair values are based on a
probability distributed Monte-Carlo simulation. See Note 19 “Equity-based Compensation,” in our financial statements
included in this report for further discussion and activity of these grants.
Investment Income (Loss) – Net Gains (Losses) from Investment Activities
Net gains (losses) from investment activities consist of realized and unrealized gains and losses arising from our
investment activities as well as income earned from certain equity method investments. Fluctuations in net gains (losses) from
investment activities between reporting periods is driven primarily by changes in the fair value of our investment portfolio as
well as the realization of investments. The fair value of, as well as the ability to recognize gains from, our investments is
significantly impacted by the global financial markets, which, in turn, affects the net gains (losses) from investment activities
recognized in any given period. Upon the disposition of an investment, previously recognized unrealized gains and losses are
reversed and an offsetting realized gain or loss is recognized in the current period. Since our investments are carried at fair
value, fluctuations between periods could be significant due to changes to the inputs to our valuation process over time. For a
further discussion of our fair value measurements and fair value of investments, see above “—Critical Accounting Policies and
Estimates—Fair Value Measurements.”
Critical Accounting Policies and Estimates – Insurance
Policy liabilities, or colloquially, “reserves,” are the portion of past premiums or assessments received that are set aside
to meet future policy and contract obligations as they become due. Interest accrues on the reserves and on future premiums,
which may also be available to pay for future obligations. Global Atlantic establishes reserves to pay future policy benefits,
claims, and certain expenses for its life policies and annuity contracts.
Global Atlantic’s reserves are estimated based on models that include many actuarial assumptions and projections. These
assumptions and projections, which are inherently uncertain, involve significant judgment, including assumptions as to the
levels and/or timing of premiums, benefits, claims, expenses, interest credits, investment results (including equity market
returns), mortality, longevity, and persistency.
The assumptions on which reserves are based are intended to represent an estimation of experience for the period that
policy benefits are payable. Global Atlantic reviews the adequacy of its reserves and the assumptions underlying those
reserves at least annually. Global Atlantic cannot, however, determine with precision the amount or the timing of actual
benefit payments. If actual experience is better than or equal to the assumptions, then reserves would be adequate to
provide for future benefits and expenses. If experience is worse than the assumptions, additional reserves may be required to
meet future policy and contract obligations. This would result in a charge to Global Atlantic's net income during the period in
which excess benefits are paid or an increase in reserves occurs.
For a majority of Global Atlantic’s in-force policies, including its interest-sensitive life policies and most annuity contracts,
the base policy reserve is equal to the account value. For these products, the account value represents Global Atlantic’s
obligation to repay to the policyholder the amounts held with Global Atlantic on deposit. However, there are several
significant blocks of business where policy reserves, in addition to the account value, are explicitly calculated, including
variable annuities, fixed-indexed annuities, interest-sensitive life products (including those with secondary guarantees), and
preneed policies.
Market Risk Benefits
Market risk benefits are contracts or contract features that both provide protection to the policyholder from other-than-
nominal capital market risk and expose Global Atlantic to other-than-nominal capital market risk. Market risk benefits include
certain contract features on fixed annuity and variable annuity products, including minimum guarantees to policyholders,
such as guaranteed minimum death benefits (“GMDBs”), guaranteed minimum withdrawal benefits (“GMWBs”), and long-
term care benefits (which are capped at the return of account value plus one or two times the account value).
Some of Global Atlantic's variable annuity and fixed-indexed annuity contracts contain a GMDB feature that provides a
guarantee that the benefit received at death will be no less than a prescribed minimum amount, even if the account balance
is reduced to zero. This amount is based on either the net deposits paid into the contract, the net deposits accumulated at a
specified rate, the highest historical account value on a contract anniversary, or sometimes a combination of these values. If
the GMDB is higher than the current account value at the time of death, Global Atlantic incurs a cost equal to the difference.
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Global Atlantic issues fixed-indexed annuity and variable annuity contracts with a guaranteed minimum withdrawal
feature. GMWB are an optional benefit where the contract owner is entitled to withdraw a maximum amount of their benefit
base each year.
Once exercised, living benefit features provide annuity policyholders with a minimum guaranteed stream of income for
life. A policyholder’s annual income benefit is generally based on an annual withdrawal percentage multiplied by the benefit
base. The benefit base is defined in the policy and is generally the initial premium, reduced by any partial withdrawals and
increased by a defined percentage, formula, or index credits. Any living benefit payments are first deducted from the account
value. Global Atlantic is responsible for paying any excess guaranteed living benefits still owed after the account value has
reached zero.
The ultimate cost of these benefits will depend on the level of market returns and the level of contractual guarantees, as
well as policyholder behavior, including surrenders, withdrawals, and benefit utilization. For Global Atlantic's fixed-indexed
annuity products, costs also include certain non-guaranteed terms that impact the ultimate cost, such as caps on crediting
rates that Global Atlantic can, in its discretion, reset annually.
See Note 17 “Policy Liabilities” in our financial statements for additional information.
As of September 30, 2026, the net market risk liability balance totaled $1.3 billion. As of September 30, 2026, the liability
balances for market risk benefits were $1.1 billion for fixed-indexed annuities and $186.1 million for variable and other
annuities. The increase (decrease) to the net market risk benefit liability balance as a result of hypothetical changes in interest
rates, instrument-specific credit risk, equity market prices, expected mortality, and expected surrenders are summarized in
the table below. This sensitivity considers the direct effect of such changes only and not changes in any other assumptions
used in or items considered in the measurement of such balances.
As of September 30, 2026 | ||||
($ in thousands) | Fixed-Indexed Annuity | Other | ||
Balance | $1,078,709 | $186,099 | ||
Hypothetical Change: | ||||
+50 bps Interest Rates | (147,053) | (24,370) | ||
-50 bps Interest Rates | 162,790 | 27,689 | ||
+50 bps Instrument-specific Credit Risk | (148,691) | (12,893) | ||
-50 bps Instrument-specific Credit Risk | 164,143 | 13,980 | ||
+10% Equity Market Prices | (66,476) | (31,340) | ||
-10% Equity Market Prices | 55,569 | 35,403 | ||
95% of Expected Mortality | 59,617 | 1,668 | ||
105% of Expected Mortality | (56,140) | (1,282) | ||
90% of Expected Surrenders | 30,869 | (342) | ||
110% of Expected Surrenders | (29,442) | 282 | ||
Note: Hypothetical changes to the market risk benefits liability balance do not reflect the impact of related hedges.
Policy Liabilities Accounted for Under a Fair Value Option
Variable annuity contracts offered and assumed by Global Atlantic provide the contractholder with a GMDB. The liabilities
for these benefits are included in policy liabilities. Global Atlantic elected the fair value option to measure the liability for
certain of these variable annuity contracts valued at $197.2 million as of September 30, 2026. Fair value is calculated as the
present value of the estimated death benefits less the present value of the GMDB fees, using 1,000 risk neutral scenarios.
Global Atlantic discounts the cash flows using the U.S. Treasury rates plus an adjustment for instrument-specific credit risk in
the consolidated statement of financial condition. The change in the liabilities for these benefits is included in policy benefits
and claims in the consolidated statement of operations.
As of September 30, 2026, variable annuities accounted for using the fair value option totaled $197.2 million. The
increase (decrease) in the reserves for variable annuities accounted for using the fair value option as a result of hypothetical
changes in interest rates, instrument-specific credit risk, equity market prices, expected mortality, and expected surrenders
are summarized in the table below. This sensitivity considers the direct effect of such changes only and not changes in any
other assumptions used in or items considered in the measurement of such balances.
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As of September 30, 2026 | ||
($ in thousands) | Variable Annuities | |
Balance | $197,246 | |
Hypothetical Change: | ||
+50 bps Interest Rates | (13,182) | |
-50 bps Interest Rates | 14,260 | |
+50 bps Instrument-specific Credit Risk | (7,420) | |
-50 bps Instrument-specific Credit Risk | 7,668 | |
+10% Equity Market Prices | (11,795) | |
-10% Equity Market Prices | 14,193 | |
95% of Expected Mortality | (4,078) | |
105% of Expected Mortality | 3,915 | |
90% of Expected Surrenders | (874) | |
110% of Expected Surrenders | 807 |
Note: Hypothetical changes to the liability balances do not reflect the impact of related hedges.
Liability for Future Policyholder Benefits
A liability for future policy benefits, which is the present value of estimated future policy benefits to be paid to or on
behalf of policyholders and certain related expenses less the present value of estimated future net premiums to be collected
from policyholders, is accrued as premium revenue is recognized. The liability is estimated using current assumptions that
include mortality, morbidity, lapses, and expenses. These current assumptions are based on judgments that consider Global
Atlantic’s historical experience, industry data, and other factors, and are updated quarterly and the current period change in
the liability is recognized as a separate component of benefit expense in the consolidated income statement.
As of September 30, 2026, the liability for future policy benefits totaled $17.5 billion, net of reinsurance, split between
$12.6 billion associated with payout annuity products, and $4.9 billion of life and other insurance products (including assumed
long-term care insurance where Global Atlantic retroceded mortality and morbidity risks to a third-party reinsurer). The
increase (decrease) as a result of hypothetical changes in interest rates, credit spreads, expected mortality, and expected
surrenders and lapses are summarized in the table below. This sensitivity considers the direct effect of such changes only and
not changes in any other assumptions used in or items considered in the measurement of such balances.
As of September 30, 2026 | ||||
($ in thousands) | Payout Annuities | Other | ||
Balance | $12,583,750 | $4,916,794 | ||
Hypothetical Change: | ||||
+50 bps Interest Rates | (193,779) | (467,641) | ||
-50 bps Interest Rates | 207,398 | 502,506 | ||
+50 bps Credit Spreads | (161,531) | (367,741) | ||
-50 bps Credit Spreads | 167,136 | 381,943 | ||
95% of Expected Mortality(1) | 75,459 | 39,626 | ||
105% of Expected Mortality(1) | (71,731) | (37,675) | ||
90% of Expected Surrenders/Lapses | — | (12,985) | ||
110% of Expected Surrenders/Lapses | — | 11,803 | ||
Note: Hypothetical changes to the liability for future policy benefits balance do not reflect the impact of related hedges.
(1)Includes decrements for terminations of disability insurance.
Additional Liability for Annuitization, Death, or Other Insurance Benefits: No-Lapse Guarantees
Global Atlantic has in-force interest-sensitive life contracts where it provides a secondary guarantee to the policyholder.
The policy can remain in-force, even if the base policy account value is zero, as long as contractual secondary guarantee
requirements have been met. The primary risk to Global Atlantic is that the premium collected under these policies, together
with the investment return Global Atlantic earns on that premium, is ultimately insufficient to pay the policyholder’s benefits
and the expenses associated with issuing and administering these policies. Global Atlantic holds an additional reserve in
connection with these guarantees.
The additional reserves related to interest-sensitive life products with secondary guarantees are calculated using
methods similar to those described above under “—Critical Accounting Policies and Estimates – Insurance—Policy Liabilities—
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Market Risk Benefits.” The costs related to these secondary guarantees are recognized over the life of the contracts through
the accrual and subsequent release of a reserve which is revalued each period. The reserve is calculated based on
assessments, over a range of economic scenarios to incorporate the variability in the obligation that may occur under
different environments. The change in the reserve is included in policy benefits and claims in the consolidated statements of
operations.
As of September 30, 2026, the additional liability balance of primarily interest-sensitive life totaled $6.4 billion, net of
reinsurance. The increase (decrease) to the additional liability balance, as a result of hypothetical changes in interest rates,
equity market prices, annual equity growth, expected mortality, and expected surrenders are summarized in the table below.
This sensitivity considers the direct effect of such changes only and not changes in any other assumptions used in or items
considered in the measurement of the interest-sensitive life no-lapse guarantee liability balance.
As of September 30, 2026 | ||
($ in thousands) | Interest-Sensitive Life | |
Balance | $6,367,187 | |
Hypothetical Change: | ||
+50 bps Interest Rates | 1,773 | |
-50 bps Interest Rates | (1,857) | |
+10% Equity Market Prices | (1,973) | |
-10% Equity Market Prices | 573 | |
1% Lower Annual Equity Growth | 10,769 | |
95% of Expected Mortality | (57,879) | |
105% of Expected Mortality | 56,965 | |
90% of Expected Surrenders | 24,175 | |
110% of Expected Surrenders | (23,361) |
Note: Hypothetical changes to the interest-sensitive life additional liability for annuitization, death, or other insurance benefits balance do not reflect the
impact of related hedges.
Embedded Derivatives in Policy Liabilities and Funds Withheld
Global Atlantic's fixed-indexed annuity, variable annuity, and indexed universal life products contain equity-indexed
features, which are considered embedded derivatives and are required to be measured at fair value.
Global Atlantic calculates the embedded derivative as the present value of future projected benefits in excess of the
projected guaranteed benefits, using an option budget as the indexed account value growth rate. In addition, the fair value of
the embedded derivative is reduced to reflect instrument specific credit risk on Global Atlantic's obligation (that is, Global
Atlantic's own credit risk).
Changes in interest rates, future index credits, instrument-specific credit risk, projected withdrawal and surrender
activity, and mortality on fixed-indexed annuity and interest-sensitive life products can have a significant impact on the value
of the embedded derivative.
Valuation of Embedded Derivatives – Fixed-Indexed Annuities
Fixed-indexed annuity contracts allow the policyholder to elect a fixed interest rate of return or a market indexed strategy
where interest credited is based on the performance of an index, such as the S&P 500 Index, or other indexes. The market
indexed strategy is an embedded derivative, similar to a call option. The fair value of the embedded derivative is computed as
the present value of benefits attributable to the excess of the projected policy contract values over the projected minimum
guaranteed contract values. The projections of policy contract values are based on assumptions for future policy growth,
which include assumptions for expected index credits, future equity option costs, volatility, interest rates, and policyholder
behavior. The projections of minimum guaranteed contract values include the same assumptions for policyholder behavior as
are used to project policy contract values. The embedded derivative cash flows are discounted using a risk-free interest rate
increased by instrument-specific credit risk tied to Global Atlantic's own credit rating.
Valuation of Embedded Derivatives – Interest-Sensitive Life Products
Interest-sensitive life products allow a policyholder’s account value to grow based on the performance of certain equity
indexes, which results in an embedded derivative similar to a call option. The embedded derivative related to the index is
bifurcated from the host contract and measured at fair value. The valuation of the embedded derivative is the present value
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of future projected benefits in excess of the projected guaranteed benefits, using the option budget as the indexed account
value growth rate and the guaranteed interest rate as the guaranteed account value growth rate. Present values are based on
discount rate curves determined at the valuation date or issue date as well as assumed lapse and mortality rates. The discount
rate equals the forecast treasury rate increased by instrument-specific credit risk tied to Global Atlantic’s own credit rating.
Changes in discount rates and other assumptions such as spreads and/or option budgets can have a substantial impact on the
embedded derivative.
Valuation of Embedded Derivatives in Modified Coinsurance or Funds Withheld
Global Atlantic's reinsurance agreements include modified coinsurance and coinsurance with funds withheld
arrangements that include terms that require payment by the ceding company of a principal amount plus a return that is
based on a proportion of the ceding company’s return on a designated portfolio of assets. Because the return on the funds
withheld receivable or payable is not clearly and closely related to the host insurance contract, these contracts are deemed to
contain embedded derivatives, which are measured at fair value. Global Atlantic is exposed to both the interest rate and
credit risk of the assets. Changes in discount rates and other assumptions can have a significant impact on this embedded
derivative. The fair value of the embedded derivatives is included in the funds withheld receivable at interest and funds
withheld payable at interest line items on our consolidated statement of financial condition. The change in the fair value of
the embedded derivatives is recorded in net investment-related gains (losses) in the consolidated statement of operations.
As of September 30, 2026, the embedded derivative liability balance totaled $8.0 billion for fixed-indexed annuities, and
$480.5 million for interest-sensitive life. The increase (decrease) to the embedded derivatives on fixed-indexed annuity and
indexed universal life as a result of hypothetical changes in interest rates, credit spreads, and equity market prices are
summarized in the table below. This sensitivity considers the direct effect of such changes only and not changes in any other
assumptions used in or items considered in the measurement of such balances.
As of September 30, 2026 | ||||
($ in thousands) | Fixed-Indexed Annuities | Interest Sensitive Life | ||
Balance | $7,998,461 | $480,497 | ||
Hypothetical Change: | ||||
+50 bps Interest Rates | (98,382) | (4,591) | ||
-50 bps Interest Rates | 103,324 | 4,774 | ||
+50 bps Credit Spreads | (137,982) | (4,591) | ||
-50 bps Credit Spreads | 142,550 | 4,774 | ||
+10% Equity Market Prices | 733,079 | 28,805 | ||
-10% Equity Market Prices | (815,082) | (65,252) | ||
Note: Hypothetical changes to the market risk benefits liability balance do not reflect the impact of related hedges.
As of September 30, 2026, the embedded derivative balance for modified coinsurance or funds withheld arrangements
was a $4.0 billion net asset ($72.8 million in funds withheld receivables at interest, and $(3.9) billion in funds withheld payable
at interest). The increase (decrease) to the embedded derivatives on fixed-indexed annuity and interest-sensitive life products
as a result of hypothetical changes in interest rates and investment credit spreads are summarized in the table below. This
sensitivity considers the direct effect of such changes only and not changes in any other assumptions used in or items
considered in the measurement of such balances.
As of September 30, 2026 | ||||
($ in thousands) | Embedded Derivative on Funds Withheld Receivable | Embedded Derivative on Funds Withheld Payable | ||
Balance | $72,805 | $(3,910,769) | ||
Hypothetical Change: | ||||
+50 bps Interest Rates | (1,523) | (1,441,796) | ||
-50 bps Interest Rates | 5,372 | 1,498,121 | ||
+50 bps Investment Credit Spreads | (36,738) | (1,483,688) | ||
-50 bps Investment Credit Spreads | 36,738 | 1,540,013 | ||
Note: Hypothetical changes to the funds withheld receivable and payable embedded derivative balances do not reflect the impact of related hedges or trading
assets which back the funds withheld at interest.
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Recently Issued Accounting Pronouncements
For a full discussion of recently issued accounting pronouncements, see Note 2 “Summary of Significant Accounting
Policies” in our financial statements included in this report.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
We believe there were no material changes to our market risks during the three months ended September 30, 2026. For
a discussion of our market risks in general, please refer to our Annual Report on Form 10-K for the year ended December 31,
2025. In addition, for a discussion of current risks, uncertainties, and other market and economic conditions, see
“Management's Discussion and Analysis of Financial Condition and Results of Operations—Business Environment.”
ITEM 4. CONTROLS AND PROCEDURES.
Evaluation of Disclosure Controls and Procedures
We maintain disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the
Exchange Act) that are designed to ensure that the information required to be disclosed by us in the reports filed or submitted
by us under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's
rules and forms and such information is accumulated and communicated to management, including the Co-Chief Executive
Officers and the Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Any controls
and procedures, no matter how well designed and operated, can provide only reasonable assurances of achieving the desired
control objectives.
We carried out an evaluation, under the supervision and with the participation of our management, including the Co-
Chief Executive Officers and the Chief Financial Officer, of the effectiveness of the design and operation of our disclosure
controls and procedures as of September 30, 2026. Based upon that evaluation, our Co-Chief Executive Officers and Chief
Financial Officer have concluded that, as of September 30, 2026, our disclosure controls and procedures were effective to
accomplish their objectives at the reasonable assurance level.
Changes in Internal Control Over Financial Reporting
No changes in our internal control over financial reporting (as such term is defined in Rule 13a-15(f) of the Exchange Act)
occurred during the three months ended September 30, 2026, that materially affected, or are reasonably likely to materially
affect, our internal control over financial reporting.
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PART II — OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.
For a discussion of KKR's legal proceedings, see the section entitled “Legal Proceedings” appearing in Note 24
“Commitments and Contingencies” in our financial statements included elsewhere in this report, which is incorporated herein
by reference.
ITEM 1A. RISK FACTORS.
Other than as set forth in “Management's Discussion and Analysis of Financial Condition and Results of Operations—
Business Environment” in this report, there were no material changes to the risk factors disclosed in our Annual Report.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
Share Repurchases in the Three Months Ended September 30, 2026
Under our current share repurchase program, KKR is authorized to repurchase its common stock from time to time in
open market transactions, in privately negotiated transactions or otherwise. The timing, manner, price and amount of any
common stock repurchases will be determined by KKR in its discretion and will depend on a variety of factors, including legal
requirements, price and economic and market conditions. KKR expects that the program, which has no expiration date, will
continue to be in effect until the maximum approved dollar amount has been used. The program does not require KKR to
repurchase any specific number of shares of common stock, and the program may be suspended, extended, modified or
discontinued at any time. In addition to the repurchases of common stock described above, the repurchase program is used
for the retirement (by cash settlement or the payment of tax withholding amounts upon net settlement) of equity grants
issued pursuant to our 2019 Equity Incentive Plan representing the right to receive shares of common stock.
The table below sets forth the information with respect to repurchases made by or on behalf of KKR & Co. Inc. or any
“affiliated purchaser” (as defined in Rule 10b-18(a)(3) under the Exchange Act) of our common stock for the periods
presented. During the three months ended September 30, 2026, 1,604,596 shares of common stock were repurchased, and
no equity grants were retired.
Issuer Purchases of Common Stock | |||||||
(amounts in thousands, except share and per share amounts) | |||||||
Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (1) | ||||
Month #1 (July 1, 2026 to July 31, 2026) | 141,008 | $89.20 | 141,008 | $87,287 | |||
Month #2 (August 1, 2026 to August 31, 2026) | — | $— | — | $87,287 | |||
Month #3 (September 1, 2026 to September 30, 2026) | 1,463,588 | $97.72 | 1,463,588 | $444,267 | |||
Total through September 30, 2026 | 1,604,596 | 1,604,596 | $444,267 | ||||
(1)Our existing share repurchase program was announced in April 2024. In March 2026, the share repurchase program was amended such that when the
remaining available amount under the share repurchase program becomes $50 million or less (the “Share Repurchase Program Increase Threshold”), the
total available amount under the share repurchase program will automatically increase by an additional $500 million to the then remaining available
amount. The Share Repurchase Program Increase Threshold was reached during the three months ended September 30, 2026, and an additional $500
million was added to the then remaining available amount. Following this increase, a total of $516 million was used to repurchase or retire shares of
common stock or equity grants, and there was approximately $33 million remaining under the program as of November 4, 2026. On November 6, 2026,
the share repurchase program was further amended such that the total available amount under the share repurchase program automatically increased by
an additional $500 million to the then remaining available amount. Any additional increases to the total available amount would require a separate
approval by the Board of Directors of KKR & Co. Inc. The repurchase program does not have an expiration date.
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ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
Not applicable.
ITEM 4. MINE SAFETY DISCLOSURES.
Not applicable.
ITEM 5. OTHER INFORMATION
Not applicable.
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ITEM 6. EXHIBITS.
The following is a list of all exhibits filed or furnished as part of this report:
Exhibit No. | Description of Exhibit | |
3.1 | Second Amended and Restated Certificate of Incorporation of KKR & Co. Inc. (incorporated by reference to Exhibit 3.1 to the KKR & Co. Inc. Current Report on Form 8-K filed on August 9, 2024). | |
3.2 | Second Amended and Restated Bylaws of KKR & Co. Inc. (incorporated by reference to Exhibit 3.2 to the KKR & Co. Inc. Current Report on Form 8-K filed on August 9, 2024). | |
10.1 | Fourth Amended and Restated Credit Agreement, dated as of July 30, 2026, among Kohlberg Kravis Roberts & Co. L.P., KKR Group Partnership L.P., the guarantors party thereto from time to time, the lenders party thereto from time to time, and HSBC Bank USA, National Association, as administrative agent (incorporated by reference to Exhibit 10.1 to the KKR & Co. Inc. Quarterly Report on Form 10-Q filed on August 6, 2026). | |
31.1 | Certification of Co-Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes- Oxley Act of 2002. | |
31.2 | Certification of Co-Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
31.3 | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32.1 | Certification of Co-Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
32.2 | Certification of Co-Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
32.3 | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101 | Interactive data files pursuant to Rule 405 of Regulation S-T, formatted in Inline XBRL (eXtensible Business Reporting Language): (i) the Condensed Consolidated Statements of Financial Condition as of September 30, 2026 and December 31, 2025, (ii) the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2026 and September 30, 2025, (iii) the Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2026 and September 30, 2025; (iv) the Condensed Consolidated Statements of Changes in Equity for the three and nine months ended September 30, 2026 and September 30, 2025, (v) the Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2026 and 2025, and (vi) the Notes to the Condensed Consolidated Financial Statements. | |
104 | Cover page interactive data file, formatted in Inline XBRL and contained in Exhibit 101. |
The registrant hereby agrees to furnish to the SEC at its request copies of long-term debt instruments defining the rights
of holders of outstanding long-term debt that are not required to be filed herewith.
The agreements and other documents filed as exhibits to this report are not intended to provide factual information or
other disclosure other than with respect to the terms of the agreements or other documents themselves, and you should not
rely on them for that purpose. In particular, any representations and warranties made by us in these agreements or other
documents were made solely within the specific context of the relevant agreement or document and may not describe the
actual state of affairs as of the date they were made or at any other time.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly authorized.
KKR & CO. INC. | |||
By: | /s/ ROBERT H. LEWIN | ||
Robert H. Lewin | |||
Chief Financial Officer | |||
(principal financial and accounting officer) | |||
DATE: | November 9, 2026 | ||