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- **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

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

KKR

KKR fundamentals

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