ALTERNATIVE asset manager KKR & Co reported a fourth-quarter profit that beat Wall Street expectations on Tuesday (Feb 4), as a rebound in dealmaking activity boosted its income from asset sales.
The Federal Reserve’s recent interest rate cuts and Donald Trump’s return to the White House have powered a resurgence in deals.
KKR’s fee-related earnings for the quarter ended Dec 31 jumped 25 per cent to US$843 million from a year earlier.
The company’s adjusted net income climbed 33 per cent to US$1.19 billion, or US$1.32 per share, above analysts’ expectations of US$1.28, according to estimates compiled by LSEG.
Last week, larger rival Blackstone also beat quarterly profit expectations, driven by a pickup in dealmaking.
KKR’s assets under management jumped 15 per cent to US$638 billion in the reported quarter, with the company hauling US$27 billion of new capital and deploying US$23 billion in investments.
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In April, KKR said it expects to surpass US$1 trillion in assets in the next five years. The firm invests across assets including private equity, credit, real estate and insurance.
Its infrastructure funds gained 2 per cent, opportunistic real estate funds rose 1 per cent, while the private equity portfolio was flat in the fourth quarter.
The New York-based firm on Tuesday also said it was increasing ownership across three existing investments – USI Insurance Services, 1-800 Contacts, and Heartland Dental – by about US$1.1 billion.
In the last few months, KKR has announced a series of deals including the acquisition of a 25 per cent stake in Italian energy group Eni’s biofuel business Enilive for 2.94 billion euro.
In October, KKR struck a deal to acquire airport parking provider The Parking Spot from private equity real estate investment firm Green Courte Partners.
The company also trimmed its stake in financial software maker OneStream in November through a secondary offering. REUTERS
