What factors drove the changes in Kkr's revenue and profit?

What were the key takeaways from Kkr’s earnings call?

What does Kkr do and what are its main business segments?

What is the market's earnings forecast for Kkr next quarter?

What is Kkr's latest dividend and current dividend yield?

What is Kkr's gross profit margin?

Did Kkr beat or miss consensus estimates last quarter?

What were the key takeaways from Kkr's earnings call?

- **Record Financial Performance**: Q3 2025 marks highest fee-related earnings ($1.15/share), operating earnings ($1.55/share), and net income ($1.41/share) in KKR's history.
- **Management Fees Surge**: 19% YoY growth to $1.1 billion, with 16% growth excluding catch-up fees, driven by $43B quarterly fundraising.
- **Insurance Expansion**: Total insurance economics up 16% YoY to $1.4B, with GA's third-party capital deployment (e.g., $6B → $60B AUM) and capital markets fees poised for hundreds of millions in annual contributions.
- **Asia Growth Engine**: AUM in Asia exceeds $80B, with III/IV funds outperforming peers, and focus on Japan, India, and Southeast Asia.
- **2026 Guidance Confidence**: $4.50+ FRE and $7+ ANI achievable via management fee growth, $17B embedded gains, and cost control, despite one-time $0.18 ANI hit from Asia II clawback.
- **Market Differentiation**: KKR's linear deployment and portfolio construction contrast with peers' 2021-2022 over-deployment, with $17B embedded gains and $800M near-term monetization visibility.


**【CEO Summary Section】**
- **Record Q3 Results**: Fee-related earnings of $1.15 per share, total operating earnings of $1.55 per share, and adjusted net income of $1.41 per share, all among the highest in company history.
- **Management Fees Growth**: $1.1 billion in Q3, up 19% YoY, driven by fundraising success across asset classes. Excluding catch-up fees, growth was 16%.
- **Capital Raising Momentum**: Raised $43 billion in Q3, second-highest quarterly total, with $15 billion from Global Atlantic (GA) and $5 billion from private IG ABF mandates.
- **Deployment Activity**: Invested $26 billion, with $17 billion of embedded gains across the firm, up 10% YoY.
- **Asia Expansion**: AUM in Asia exceeds $80 billion, with III and IV funds outperforming peers, and a focus on Japan, India, and Southeast Asia.

**【CFO Financial Commentary】**
- **Fee-Related Earnings**: $1 billion ($1.15 per share), up 16% YoY, with fee-related performance revenue up 30% YoY due to K Infra scaling.
- **Insurance Segment**: Operating earnings of $305 million, with total insurance economics (including GA-related fees) at $1.4 billion YoTD, up 16% YoY.
- **Strategic Holdings**: Operating earnings of $58 million, with net dividends expected to exceed $350 million in 2026.
- **One-Time Charge**: $350 million clawback from Asia II, reducing Q4 ANI by ~$0.18, with no other material clawback risks.
- **2026 Guidance**: Confident in $4.50+ FRE and $7+ ANI, driven by management fee growth, monetization pipeline, and cost control.

**【Q&A Key Highlights】**
- **Insurance ROE Outlook**: Targeting >20% all-in ROE as GA's alts portfolio matures and third-party capital deployment scales (e.g., $6 billion of dry powder → $60+ billion AUM).
- **Capital Markets Expansion**: GA-related fees expected to contribute hundreds of millions annually, with FABN issuance in multiple currencies and ABF mandates growing 30% YoY.
- **Exit Environment**: $17 billion of embedded gains, with $800 million of near-term monetization visibility, supporting 50%+ YoY realized carry growth.
- **Asia Strategy**: III and IV funds outperforming peers, with Japan Post partnership and Ivy vehicles driving AUM growth.
- **Credit Fundamentals**: Private credit default rates normalizing, with KKR's senior secured, low-leverage portfolio well-positioned.
- **Market Dispersion**: KKR's linear deployment and portfolio construction differentiate it from peers with over-deployment in 2021-2022.


KKR & Co. Inc.(KKR)-20251107-2025 Q3 Earnings call transcript

Asset Management

Insurance

KKR

KKR fundamentals

You can ask Aime