KKR reported record quarterly profit on Monday, Nov. 9. The New York-based investment firm closed a run of asset sales and earned higher fees for managing client money. Adjusted net income jumped 29 percent to USD 1.6 billion, or USD 1.78 per share.
Analysts had expected USD 1.59 per share, according to LSEG. Shares rose about 3 percent in premarket trading. The firm has stepped up exits this year, even as higher interest rates slowed asset sales across the industry
Also Read: .FTSE 100 Live: Index Opened 108 points Lower at 10,673 as Oil Prices Fall Below USD 100
Co-CEOs Joseph Bae and Scott Nuttall said the firm continues to sell investments and “return capital to our clients at record levels.” KKR expects to send back more than USD 40 billion to clients this year, over 50 percent above its previous annual record. Deals in the quarter included the sale of data center cooling firm CoolIT Systems and private aviation platform Atlantic Aviation.
Fee-related earnings, the steady income from management fees, rose 27 percent to USD 1.3 billion and set a record. The firm raised USD 25 billion in new capital, mainly in credit, liquid strategies and real assets. Total assets passed USD 800 billion. KKR also bought back USD 567 million of its shares between June 30 and Nov. 4, and raised its buyback authorization by USD 500 million last week.
Also Read: SoftBank Credit Risk Hits 4-Year High as Shares Crash 10.8%
KKR is set to end the year on a strong note. The USD 17 billion sale of USI Insurance Services to Aon is expected to close in the fourth quarter and add roughly USD 2 billion to adjusted profit.
Returns were mixed across strategies. The infrastructure portfolio returned a gross 4 percent, traditional private equity was flat, and leveraged credit and alternative credit returned 1 percent and 3 percent. KKR is based in New York and manages money in private equity, credit, real assets and insurance. It still aims to pass USD 1 trillion in assets by 2030.