KKR Stock Soars 5.78% on Strong AUM, Strategic Moves

On May 12, 2025, KKR's stock price surged by 5.78% in pre-market trading, reflecting a significant bullish sentiment among investors.

KKR's recent financial performance and strategic moves have been pivotal in driving this positive market sentiment. The company reported a 15% year-over-year increase in its total assets under management (AUM) to $664 billion, with over 90% of its AUM consisting of long-term or permanent capital investments. This robust financial health is further supported by a 23% increase in fee-related earnings (FRE) and a 20% rise in adjusted net income (ANI) compared to the previous year.

However, KKR also reported its first quarterly loss in several years, primarily due to the underperformance of its fully-owned insurance subsidiary, The Global Atlantic Financial Group. This loss amounted to approximately $1.86 billion, a stark contrast to the $6.82 billion profit reported in the same period last year. Despite this setback, KKR has been proactive in capitalizing on market opportunities, particularly in the wake of trade war uncertainties. The company has announced several high-profile investments, including a $61 billion acquisition of the German IT services company Datagroup and a $12 billion acquisition of the Swedish life sciences company Biotage. These strategic moves underscore KKR's commitment to expanding its portfolio and leveraging market volatility to its advantage.

KKR's aggressive investment strategy has also been evident in its Japanese market activities. The company has made several significant investments in Japan, including the acquisition of Fuji Software and Topcon, a medical equipment manufacturer. Additionally, KKR has exited several Japanese investments, such as the sale of Seiyu Department Store to Trial Holdings and the sale of Kito Crosby to Columbus McKinnon. These transactions highlight KKR's ability to navigate complex market conditions and optimize its investment portfolio.