How did KKR's Q3 2024 earnings beat expectations?

KKR's Q3 2024 earnings exceeded expectations due to several key factors:

1. **Record Fee-Related Earnings**: KKR reported record fee-related earnings of $755.4 million, a 25% increase from the previous year. This growth was driven by managing $601 billion in total assets, a 16% year-over-year increase. Fee-paying assets under management reached $487 billion, indicating a 15.9% rise compared to the previous year.
2. **Strong Capital Deployment**: The company deployed $23 billion in Q3, up significantly from $10 billion in the same period the previous year. This capital deployment contributed to higher investment income and better portfolio performance.
3. **Asset Sales and Realizations**: KKR generated substantial income from selling assets, including the sale of shares in companies like AppLovin and Abu Dhabi National Oil Co.'s pipeline network. These sales contributed to the company's revenue outperformance.
4. **Insurance Operations**: KKR's insurance segment, Global Atlantic Financial Group, performed well, with earnings that exceeded expectations. This segment's performance contributed to the overall profitability of the company.
5. **Fee-Related Earnings Growth**: KKR's fee-related earnings grew by 25% to $755.4 million, surpassing the estimated $720.7 million. This growth was supported by strong fundraising activities and deployment of capital.

In summary, KKR's Q3 2024 earnings exceeded expectations due to record fee-related earnings, strong capital deployment, asset sales, robust insurance operations, and effective portfolio management. These factors combined to deliver robust financial results that surpassed market expectations.