KKR's Q1 2025: Navigating Contradictions in Fundraising, Buybacks, and Asia Strategy

Fundraising strategy and LP behavior, share buybacks and capital allocation, Asia investment strategy, capital markets fees and outlook, Asia fundraising strategy are the key contradictions discussed in KKR's latest 2025Q1 earnings call.



Record Fee-Related Earnings:
- KKR reported fee-related earnings per share of $0.92, up 22% year-over-year. Total operating earnings were $1.24 per share, up 16%.
- The growth was driven by strong fundraising activities and deployment in private equity and infrastructure assets.

Asset Management and Fundraising Success:
- The firm raised $31 billion in new capital, with $21 billion attributed to Asia, and the North America private equity strategy raised $14 billion.
- This success was due to the firm's diversified global business model and strong investment returns across asset classes.

Private Equity and Infrastructure Performance:
- The private equity portfolio was up 4% in the quarter, with the infrastructure segment appreciating 4%.
- Geographic diversification and strategic investments in core private equity holdings contributed to strong performance.

Insurance and Strategic Holdings:
- Insurance segment operating earnings were $259 million, and strategic holdings operating earnings were $31 million.
- The firm's strategically integrated insurance and strategic holdings segments are seen as a differentiator, contributing to recurring earnings streams.