KKR's Q4 2024: Unpacking Contradictory Insights on Infrastructure, Private Equity, and Fundraising

These are the key contradictions discussed in KKR & Co.'s latest 2024Q4 earnings call, specifically including: Infrastructure Fund Performance Expectations and Asset-backed Finance Growth Strategy, Private Equity Performance and Monetization Expectations, and Fundraising and Management Fee Growth:



Strong Financial Performance:
- KKR reported fee-related earnings per share of $0.94 for Q4, up 24% year-over-year, and adjusted net income of $1.32 per share, up 32% year-over-year.
- The growth was driven by increased management fees from diverse fundraising activities and pickup in deployment.

Fundraising and Capital Deployment:
- The company raised $27 billion in Q4, driven by diversified activity across private equity and real assets businesses.
- Deployment in 2024 was $84 billion, up significantly from previous years, with strategic investments in areas like private markets and credit.

Strategic Holdings Expansion:
- KKR will invest $1.1 billion to increase existing stakes in key businesses, becoming fee-paying assets under management.
- This expansion aims to leverage long-term accretion to recurring earnings and aligns with KKR's strategy to own high-quality, less cyclical businesses.

Wealth Management Growth:
- AUM from individuals reached $100 billion, nearly doubled from $50 billion a year ago, with a focus on high net worth and ultra-high net worth clients.
- Growth was driven by new products and partnerships, particularly the K Series targeting private credit and infrastructure, with expectations for continued momentum from Capital Group partnerships.