Kkr & Co. Inc. · NYSE:KKR

Kkr & — Q1 2025 Earnings Presentation

46 slides from Kkr &'s earnings presentation, May 1, 2025

  1. Slide 1: KKR & Co. Inc. Reports First Quarter 2025 Financial Results

    KKR & Co. Inc. Reports First Quarter 2025 Financial February 7,Results 2023 May 1, 2025

  2. Slide 2: KKR Reports First Quarter 2025 Financial Results

    KKR Reports First Quarter 2025 Financial Results New York, May 1, 2025 – KKR & Co. Inc. (NYSE: KKR) today reported its first quarter 2025 results. Conference Call A conference call to discuss KKR's financial results will be held on May 1, 2025 at 9:00 a.m. ET. The conference call may be accessed by

  3. Slide 3: Legal Disclosures

    KKR Reports First Quarter 2025 Financial Results Legal Disclosures This presentation has been prepared by KKR & Co. Inc. solely for informational purposes for its public stockholders in connection with evaluating the business, operations and financial results of KKR & Co. Inc. and its subsidiaries (

  4. Slide 4: KKR & Co. Inc. First Quarter Earnings

    KKR & Co. Inc. First Quarter Earnings

  5. Slide 5: First Quarter 2025 GAAP Results (Unaudited)

    First Quarter 2025 GAAP Results (Unaudited) GAAP Net Income (Loss) Attributable to KKR & Co. Inc. Common Stockholders was $(0.2) billion for the quarter and $2.2 billion in the LTM. ($ in thousands, except per share data) 1Q'24 1Q'25 1Q'24 LTM 1Q'25 LTM Revenues Asset Management and Strategic Holdin

  6. Slide 6: First Quarter 2025 Highlights

    First Quarter 2025 Highlights • Fee Related Earnings (“FRE”) of $823 million ($0.92/adj. share) in the quarter, up 23% year- over-year • FRE was $3.4 billion in the LTM ($3.82/adj. share), up 37% year-over-year • Total Operating Earnings ("TOE") of $1.1 billion ($1.24/adj. share) in the quarter, up

  7. Slide 7: First Quarter 2025 Segment Earnings

    First Quarter 2025 Segment Earnings ($ in thousands, except per share data) 1Q'24 1Q'25 1Q'24 LTM 1Q'25 LTM Management Fees $ 815,327 $ 917,334 $ 3,107,496 $ 3,563,388 Transaction and Monitoring Fees, Net 152,084 261,509 730,559 1,275,309 Fee Related Performance Revenues 19,101 21,277 91,787 140,168

  8. Slide 8: Total Operating Earnings

    Total Operating Earnings • Total Operating Earnings ("TOE") - the sum of Fee Related Earnings, Insurance Operating Earnings and Strategic Holdings Operating Earnings - represents the more durable and recurring portion of KKR's total segment earnings • TOE increased 32% over the last 12 months primar

  9. Slide 9: Asset Management Segment Detail

    Asset Management Segment Detail

  10. Slide 10: Asset Management Segment

    Asset Management Segment ($ in thousands, except per share data) 1Q'24 1Q'25 1Q'24 LTM 1Q'25 LTM Management Fees $ 815,327 $ 917,334 $ 3,107,496 $ 3,563,388 Transaction and Monitoring Fees, Net 152,084 261,509 730,559 1,275,309 Fee Related Performance Revenues 19,101 21,277 91,787 140,168 Fee Relate

  11. Slide 11: Management Fees and Fee Related Earnings

    Management Fees and Fee Related Earnings Management Fees Fee Related Earnings Per Adjusted Share ($ in millions) • Increased by 15% to $3.6 billion in the LTM • Increased 36% year-over-year driven primarily by the • Growth has been driven by an increase in Fee Paying growth in management fees and ca

  12. Slide 12: Assets Under Management

    Assets Under Management • AUM of $664 billion, up 15% year-over-year, with $31 billion of organic new capital raised in the quarter and $114 billion in the LTM • Fee Paying AUM of $526 billion, up 12% year-over-year, with $22 billion of organic new capital raised in the quarter and $97 billion in th

  13. Slide 13: Additional Capital Detail

    Additional Capital Detail • Dry Powder: Uncalled commitments of $116 billion remain diversified across the firm’s investment strategies • AUM Not Yet Paying Fees: At quarter end, there was $64 billion of committed capital with a weighted average management fee rate of approximately 100 bps that beco

  14. Slide 14: Fund Investment Performance

    Fund Investment Performance Gross unrealized performance income totals $8.7 billion as of March 31, 2025 Gross Return 1Q'25 LTM Private Equity Traditional Private Equity Portfolio 4% 11% Real Assets Infrastructure Portfolio 4% 13% Opportunistic Real Estate Portfolio 2% 5% Credit Leveraged Credit Com

  15. Slide 15: Asset Management Segment – Private Equity

    Asset Management Segment − Private Equity • AUM: Increased 7% quarter-over-quarter and increased 15% year-over-year to $209 billion with organic new capital raised of $11 billion in the quarter and $25 billion in the LTM • New capital raised in the quarter was primarily driven by Americas flagship p

  16. Slide 16: Asset Management Segment – Real Assets

    Asset Management Segment − Real Assets • AUM: Increased 3% quarter-over-quarter and 27% year-over-year to $171 billion with organic new capital raised of $5 billion in the quarter and $39 billion in the LTM • New capital raised in the quarter was widespread and included Global Atlantic inflows inves

  17. Slide 17: Asset Management Segment – Credit and Liquid Strategies

    Asset Management Segment − Credit and Liquid Strategies • AUM: Increased 3% quarter-over-quarter and 9% year-over-year to $284 billion with organic new capital raised of $14 billion in the quarter and $49 billion in the LTM • New capital raised in the quarter was primarily driven by inflows at Globa

  18. Slide 18: Asset Management Segment – Capital Markets

    Asset Management Segment − Capital Markets • Transaction Fees: Totaled $229 million in the quarter and $1.1 billion in the LTM • Approximately half of transaction fees were originated in North America in the quarter • Capital markets transaction fees were diversified by source in the quarter: privat

  19. Slide 19: Insurance Segment Detail

    Insurance Segment Detail

  20. Slide 20: Insurance Segment

    Insurance Segment • Net Investment Income: Net Investment Income of $1.7 billion in the quarter primarily reflects growth in the investment portfolio attributable to net inflows and higher average portfolio yields • Net Cost of Insurance: Net Cost of Insurance of $1.2 billion in the quarter primaril

  21. Slide 21: Strategic Holdings Segment Detail

    Strategic Holdings Segment Detail

  22. Slide 22: Strategic Holdings Segment

    Strategic Holdings Segment • Strategic Holdings Segment Earnings: Driven by dividends from our Core PE businesses • Highlights: • KKR's share of the 18 businesses' 4Q'24 LTM Adjusted Revenues is $3.8 billion and 4Q'24 LTM Adjusted EBITDA is $920 million. KKR's share includes the additional purchases

  23. Slide 23: Supplemental Information

    Supplemental Information

  24. Slide 24: Duration of Capital

    Duration of Capital Growth in Strategic & Perpetual Capital Assets Under Management ($ in billions) $351 53% of AUM is perpetual capital or long-dated strategic investor partnerships $304 $72 7% $64 42% 40% $279 $240 11% 93% of AUM is perpetual capital or has a duration of at least 8 years at incept

  25. Slide 25: Assets Under Management Rollforward

    Assets Under Management Rollforward Three Months Ended March 31, 2025 ($ in millions) Private Equity Real Assets Credit and Liquid Strategies Total Beginning Balance $ 195,358 $ 165,969 $ 276,245 $ 637,572 New Capital Raised 10,989 5,222 14,329 30,540 Distributions and Other (2,162) (2,646) (8,149)

  26. Slide 26: Fee Paying Assets Under Management Rollforward

    Fee Paying Assets Under Management Rollforward Three Months Ended March 31, 2025 ($ in millions) Private Equity Real Assets Credit and Liquid Strategies Total Beginning Balance $ 119,598 $ 139,681 $ 252,684 $ 511,963 New Capital Raised 4,587 5,346 12,384 22,317 Distributions and Other (820) (2,031)

  27. Slide 27: Investment Vehicle Summary - Asset Management

    Investment Vehicle Summary - Asset Management Investment Period Amount ($ in millions) Start End Uncalled Remaining Remaining Commitment Invested Realized Date Date Commitments Cost Fair Value PRIVATE EQUITY BUSINESS LINE (3) (4) North America Fund XIV $ 13,091 $ 13,091 $ — $ — $ — $ — North America

  28. Slide 28: Investment Vehicle Summary - Asset Management (cont’d)

    Investment Vehicle Summary - Asset Management (cont’d) Investment Period Amount ($ in millions) Start End Uncalled Remaining Remaining Commitment Invested Realized Date Date Commitments Cost Fair Value REAL ASSETS BUSINESS LINE Global Infrastructure Investors V 7/2024 7/2030 $ 11,296 $ 11,296 $ — $

  29. Slide 29: Investment Vehicle Summary - Asset Management (cont’d)

    Investment Vehicle Summary - Asset Management (cont’d) Investment Period Amount ($ in millions) Start End Uncalled Remaining Remaining Commitment Invested Realized Date Date Commitments Cost Fair Value CREDIT AND LIQUID STRATEGIES BUSINESS LINE(1) Opportunities Fund II 11/2021 1/2026 $ 2,369 $ 988 $

  30. Slide 30: Strong Financial Profile

    Strong Financial Profile • KKR & Co. Inc. is 'A' rated by both S&P and Fitch • Average maturity of debt is approximately 15 years with an after-tax weighted average fixed coupon of 3%(1) • Debt capacity includes a $2.75 billion undrawn revolving credit facility Key Asset Management Highlights - Firs

  31. Slide 31: Dividends & Other Corporate Information

    Dividends & Other Corporate Information The declaration and payment of any future dividends on common stock or preferred stock will be subject to the discretion of the board of directors of KKR & Co. Inc. based on a number of factors, including KKR’s future financial performance and other considerat

  32. Slide 32: Stock Summary

    Stock Summary From December 31, 2024 through April 25, 2025, KKR used a total of $107 million under the share repurchase plan to retire equity awards and repurchase shares representing 0.9 million shares in aggregate. During this period, retirements and share repurchases were made at an average cost

  33. Slide 33: Appendix

    Appendix

  34. Slide 34: GAAP Condensed Consolidated Income Statement (Unaudited)

    GAAP Condensed Consolidated Income Statement (Unaudited) ($ in thousands) 1Q'24 1Q'25 1Q'24 LTM 1Q'25 LTM Revenues Asset Management and Strategic Holdings Fees and Other $ 693,526 $ 886,810 $ 2,980,379 $ 3,847,246 Capital Allocation-Based Income (Loss) 1,262,942 1,159,105 3,657,361 3,454,447 1,956,4

  35. Slide 35: Reconciliation of GAAP to Non-GAAP Shares (Unaudited)

    Reconciliation of GAAP to Non-GAAP Shares (Unaudited) 1Q'24 2Q'24 3Q'24 4Q'24 1Q'25 GAAP Shares of Common Stock Outstanding 885,010,967 887,439,098 887,448,993 888,232,174 888,250,332 Adjustments: Exchangeable Securities 5,768,290 7,005,071 6,996,738 7,557,791 8,208,839 Adjusted Shares 890,779,257 8

  36. Slide 36: Reconciliation of GAAP to Non-GAAP Measures (Unaudited)

    Reconciliation of GAAP to Non-GAAP Measures (Unaudited) ($ in thousands) 1Q'24 1Q'25 1Q'24 LTM 1Q'25 LTM Net Income (Loss) - KKR Common Stockholders $ 682,214 $ (185,924) $ 4,039,984 $ 2,208,107 Preferred Stock Dividends — — 34,497 — Net Income (Loss) Attributable to Noncontrolling Interests 411,636

  37. Slide 37: Reconciliation of GAAP to Non-GAAP Measures (Unaudited)

    Reconciliation of GAAP to Non-GAAP Measures (Unaudited) ($ in thousands) 1Q'24 1Q'25 1Q'24 LTM 1Q'25 LTM Total Operating Earnings $ 962,301 $ 1,112,861 $ 3,423,565 $ 4,509,113 Total Investing Earnings 192,540 273,252 906,421 1,231,663 Depreciation and Amortization 12,503 13,233 48,796 50,741 Adjuste

  38. Slide 38: Reconciliation of GAAP to Non-GAAP Measures (Unaudited)

    Reconciliation of GAAP to Non-GAAP Measures (Unaudited) ($ in thousands) 1Q'25 KKR & Co. Inc. Stockholders' Equity - Common Stock - GAAP $ 24,926,583 Asset Management and Strategic Holdings Net Assets and Other(1) (20,667,420) (2) Accumulated Other Comprehensive (Income) Loss and Other (Insurance) 5

  39. Slide 39: Important Information – Endnotes

    Important Information − Endnotes Notes to All Pages • Infrastructure portfolio refers to the portfolio of investments held by KKR’s flagship core plus infrastructure funds. This portfolio does not include investments from KKR’s core • All figures in this presentation are as of March 31, 2025, unless

  40. Slide 40: Important Information – Endnotes (cont’d)

    Important Information − Endnotes (cont’d) Notes to Page 18 – Strategic Holdings Segment Notes to Page 22 – Fee Paying Assets Under Management Rollforward • The adjusted revenue and adjusted EBITDA information represents the measures • For the three months ended March 31, 2025, Distributions and Othe

  41. Slide 41: Important Information – Non-GAAP and Other Measures

    Important Information − Non-GAAP and Other Measures Non-GAAP and Segment Measures from ANI, because (i) KKR believes that the cost of equity awards granted to employees does not contribute to the earnings potentially available for distributions to its equity The key non-GAAP and other operating and

  42. Slide 42: Important Information – Non-GAAP and Other Measures (cont’d)

    Important Information − Non-GAAP and Other Measures (cont’d) Non-GAAP and Segment Measures (cont’d) reinsurance vehicles, (ii) Transaction and Monitoring Fees, Net and (iii) Fee Related Performance Revenues, less (x) Fee Related Compensation, and (y) Other Operating • Asset Management Segment Earnin

  43. Slide 43: Important Information – Non-GAAP and Other Measures (cont’d)

    Important Information − Non-GAAP and Other Measures (cont’d) Non-GAAP and Segment Measures (cont’d) • Capital Invested is the aggregate amount of capital invested by (i) KKR’s investment funds (including core private equity) and Global Atlantic insurance companies, (ii) KKR's • Total Asset Managemen

  44. Slide 44: Important Information – Other Legal Disclosures

    Important Information − Other Legal Disclosures Website Past Performance and Investment Returns From time to time, KKR may use its website as a channel of distribution of material company Past performance is not a guarantee of future results. Information about any fund or information. Financial and

  45. Slide 45: Important Information – Other Legal Disclosures (cont’d)

    Important Information − Other Legal Disclosures (cont’d) Forward Looking Statements Expected dividend amounts and investment returns in the business segment Strategic Holdings may be materially less than our current expectations or not materialize at all, and This presentation contains certain forwa

  46. Slide 46: Important Information – Other Legal Disclosures (cont’d)

    Important Information − Other Legal Disclosures (cont’d) Forward Looking Statements (cont'd) our ability to execute Global Atlantic's growth strategies successfully; Global Atlantic’s actual or perceived financial strength and ratings of Global Atlantic and its subsidiaries; Without limiting the sta

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