KKR & Co. Inc. KKR

KKR announced an investment of $1.1 billion to increase its stakes in three existing businesses within Strategic Holdings, with a strategic partner contributing the remainder for a total investment of at least $2.1 billion. These investments are expected to become fee-paying assets under management, adding to management fees and future carried interest. The portfolio of 18 companies, in which KKR holds roughly 20% ownership, generated approximately $3.7 billion in revenue and $900 million in EBITDA (KKR's share) over the trailing 12 months as of Q3. This expansion underpins increased guidance for Strategic Holdings operating earnings to $350M+ in 2026, $700M+ in 2028, and $1.1B+ in 2030.

KKR raised $27 billion in capital during Q4 FY24, contributing to a total of $114 billion for the full year 2024, marking the second most active fundraising year in the firm's history and a significant increase from $70 billion in 2023. Notably, only 15% of the capital raised in 2024 came from flagship funds, with substantial contributions from private credit, asset-based finance, and insurance strategies. Two-thirds of the capital raised in 2024 was in strategies that did not exist within KKR five years ago, highlighting the firm's innovation and diversification efforts.

The firm's K-Series vehicles, tailored for wealth investors, reached $16 billion in AUM by year-end, growing to $18 billion with January 2025 activity, up from $7 billion a year ago. Total AUM from individuals now stands at approximately $100 billion. KKR anticipates launching two hybrid credit products in partnership with Capital Group in the first half of 2025, specifically targeting the mass affluent market, which is expected to significantly expand its client reach beyond accredited investors.

Monetization activity saw a strong rebound in 2024, increasing over 40% year-over-year, with gross realized performance income of $1.8 billion and realized investment income of $600 million. Deployment of capital also significantly ramped up, reaching $84 billion in 2024, compared to $44 billion in 2023 and $71 billion in 2022. This rebound was primarily driven by increased activity in credit and various private market strategies, signaling an improved market backdrop.

Following 100% ownership in 2024, KKR is strategically evolving Global Atlantic's approach to emphasize longer-duration, more private market assets and greater integration across operational areas, including capital markets in Asia. This shift is expected to lead to improved P&L outcomes and ROEs over time^⏳, despite potentially subdued accounting P&L in the near term due to the modest or non-existent yields on some private investments during their initial phases.