Kkr & Co. Inc. · NYSE:KKR
Kkr & — Q4 2024 Earnings Presentation
46 slides from Kkr &'s earnings presentation, Feb 4, 2025
Slide 1: KKR & Co. Inc. Reports Fourth Quarter 2024 Financial Results
KKR & Co. Inc. Reports Fourth Quarter 2024 Financial February 7,Results 2023 February 4, 2025
Slide 2: KKR Reports Fourth Quarter 2024 Financial Results
KKR Reports Fourth Quarter 2024 Financial Results New York, February 4, 2025 – KKR & Co. Inc. (NYSE: KKR) today reported its fourth quarter 2024 results. Conference Call A conference call to discuss KKR's financial results will be held on February 4, 2025 at 10:00 a.m. ET. The conference call may be
Slide 3: Legal Disclosures
KKR Reports Fourth Quarter 2024 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
Slide 4: KKR & Co. Inc. Fourth Quarter Earnings
KKR & Co. Inc. Fourth Quarter Earnings
Slide 5: Fourth Quarter 2024 GAAP Results (Unaudited)
Fourth Quarter 2024 GAAP Results (Unaudited) GAAP Net Income Attributable to KKR & Co. Inc. Common Stockholders was $3.1 billion for the full year 2024 ($ in thousands, except per share data) 4Q'23 4Q'24 FY'23 FY'24 Revenues Asset Management and Strategic Holdings $ 1,564,916 $ 1,426,239 $ 5,807,306
Slide 6: Fourth Quarter 2024 Highlights
Fourth Quarter 2024 Highlights • Fee Related Earnings (“FRE”) of $843 million ($0.94/adj. share) in the quarter, up 25% year- over-year • FRE was $3.3 billion for the year ($3.66/adj. share), up 37% year-over-year • Total Operating Earnings ("TOE") of $1.1 billion ($1.23/adj. share) in the quarter,
Slide 7: Fourth Quarter 2024 Segment Earnings
Fourth Quarter 2024 Segment Earnings ($ in thousands, except per share data) 4Q'23 4Q'24 FY'23 FY'24 Management Fees $ 784,581 $ 906,118 $ 3,030,325 $ 3,461,381 Transaction and Monitoring Fees, Net 264,233 323,797 720,654 1,165,884 Fee Related Performance Revenues 23,898 25,091 94,427 137,992 Fee Re
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 36% over the last 12 months primar
Slide 9: Asset Management Segment Detail
Asset Management Segment Detail
Slide 10: Asset Management Segment
Asset Management Segment ($ in thousands, except per share data) 4Q'23 4Q'24 FY'23 FY'24 Management Fees $ 784,581 $ 906,118 $ 3,030,325 $ 3,461,381 Transaction and Monitoring Fees, Net 264,233 323,797 720,654 1,165,884 Fee Related Performance Revenues 23,898 25,091 94,427 137,992 Fee Related Compen
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 14% to $3.5 billion for the year • Increased 37% year-over-year driven primarily by the • Growth has been driven by an increase in Fee Paying growth in management fees and
Slide 12: Assets Under Management
Assets Under Management • AUM of $638 billion, up 15% year-over-year, with $27 billion of organic new capital raised in the quarter and $114 billion for the year • Fee Paying AUM of $512 billion, up 15% year-over-year, with $21 billion of organic new capital raised in the quarter and $111 billion fo
Slide 13: Additional Capital Detail
Additional Capital Detail • Dry Powder: Uncalled commitments of $110 billion remain diversified across the firm’s investment strategies • AUM Not Yet Paying Fees: At year end, there was $57 billion of committed capital with a weighted average management fee rate of approximately 95 bps that becomes
Slide 14: Fund Investment Performance
Fund Investment Performance Gross unrealized carried interest totals $7.9 billion as of December 31, 2024 Gross Return 4Q'24 FY'24 Private Equity Traditional Private Equity Portfolio 0% 14% Real Assets Infrastructure Portfolio 2% 14% Opportunistic Real Estate Portfolio 1% 4% Credit Leveraged Credit
Slide 15: Asset Management Segment − Private Equity
Asset Management Segment − Private Equity • AUM: Increased 3% quarter-over-quarter and increased 11% year-over-year to $195 billion with organic new capital raised of $10 billion in the quarter and $18 billion for the year • New capital raised in the quarter was primarily driven by Americas flagship
Slide 16: Asset Management Segment − Real Assets
Asset Management Segment − Real Assets • AUM: Increased 2% quarter-over-quarter and 27% year-over-year to $166 billion with organic new capital raised of $5 billion in the quarter and $40 billion for the year • New capital raised in the quarter was widespread and included Global Infrastructure V, Gl
Slide 17: Asset Management Segment − Credit and Liquid Strategies
Asset Management Segment − Credit and Liquid Strategies • AUM: Increased 2% quarter-over-quarter and 13% year-over-year to $276 billion with organic new capital raised of $12 billion in the quarter and $56 billion for the year • New capital raised in the quarter was primarily driven by inflows at Gl
Slide 18: Asset Management Segment − Capital Markets and Principal Activities
Asset Management Segment − Capital Markets • Transaction Fees: Totaled $270 million in the quarter and $1.0 billion for the year • Capital markets transaction fees reached $1.0 billion for the year for the first time in KKR's history • Approximately half of transaction fees were originated in Europe
Slide 19: Insurance Segment Detail
Insurance Segment Detail
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 market interest rates • Net Cost of Insurance: Net Cost of Insurance totaled $1.2 billion in the quarter primar
Slide 21: Strategic Holdings Segment Detail
Strategic Holdings Segment Detail
Slide 22: Strategic Holdings Segment
Strategic Holdings Segment • Strategic Holdings Segment Earnings: Driven by dividends from our Core PE businesses • Highlights: • Arrangements in place to increase KKR's ownership interests in USI Insurance Services, 1-800 Contacts and Heartland Dental by approximately $1.1 billion • Expect Strategi
Slide 23: Supplemental Information
Supplemental Information
Slide 24: Duration of Capital
Duration of Capital Growth in Strategic & Perpetual Capital Assets Under Management ($ in billions) $338 53% of AUM is perpetual capital or long-dated strategic investor partnerships $287 $70 7% $63 42% 40% $268 $224 11% 93% of AUM is perpetual capital or has a duration of at least 8 years at incept
Slide 25: Assets Under Management Rollforward
Assets Under Management Rollforward Three Months Ended December 31, 2024 ($ in millions) Private Equity Real Assets Credit and Liquid Strategies Total Beginning Balance $ 190,150 $ 162,809 $ 271,437 $ 624,396 New Capital Raised 9,509 5,336 11,866 26,711 Distributions and Other (5,162) (2,662) (6,787
Slide 26: Fee Paying Assets Under Management Rollforward
Fee Paying Assets Under Management Rollforward Three Months Ended December 31, 2024 ($ in millions) Private Equity Real Assets Credit and Liquid Strategies Total Beginning Balance $ 119,602 $ 136,804 $ 249,297 $ 505,703 New Capital Raised 3,678 6,655 10,412 20,745 Distributions and Other (3,227) (2,
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 North America Fund XIII 8/2021 8/2027 $ 18,400 $ 6,271 $ 12,431 $ 327 $ 12,132
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 $ 10,788 $ 10,788 $ — $
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 $ 2,362 $ 1,104
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 - Four
Slide 31: Dividends & Other Corporate Information
Dividends & Other Corporate Information Common Stock Dividends A dividend of $0.175 per share of common stock of KKR & Co. Inc. has been declared for the fourth quarter of 2024, which will be paid on February 28, 2025 to holders of record of common stock as of the close of business on February 14, 2
Slide 32: Stock Summary
Stock Summary From December 31, 2023 through January 31, 2025, KKR used a total of $125 million to retire equity awards representing 1.2 million shares that otherwise would have been issued to participants under KKR's equity incentive plan. During this period, retirements were made at an average cos
Slide 33: Appendix
Appendix
Slide 34: GAAP Condensed Consolidated Income Statement (Unaudited)
GAAP Condensed Consolidated Income Statement (Unaudited) ($ in thousands) 4Q'23 4Q'24 FY'23 FY'24 Revenues Asset Management and Strategic Holdings Fees and Other $ 877,039 $ 1,032,446 $ 2,963,869 $ 3,653,962 Capital Allocation-Based Income (Loss) 687,877 393,793 2,843,437 3,558,284 1,564,916 1,426,2
Slide 35: Reconciliation of GAAP to Non-GAAP Shares (Unaudited)
Reconciliation of GAAP to Non-GAAP Shares (Unaudited) 4Q'23 1Q'24 2Q'24 3Q'24 4Q'24 GAAP Shares of Common Stock Outstanding 885,005,588 885,010,967 887,439,098 887,448,993 888,232,174 Adjustments: Exchangeable Securities and Other 4,463,644 5,768,290 7,005,071 6,996,738 7,557,791 Adjusted Shares 889
Slide 36: Reconciliation of GAAP to Non-GAAP Measures (Unaudited)
Reconciliation of GAAP to Non-GAAP Measures (Unaudited) ($ in thousands) 4Q'23 4Q'24 FY'23 FY'24 Net Income (Loss) - KKR Common Stockholders $ 1,040,429 $ 1,125,555 $ 3,680,514 $ 3,076,245 Preferred Stock Dividends — — 51,747 — Net Income (Loss) Attributable to Noncontrolling Interests 548,931 258,7
Slide 37: Reconciliation of GAAP to Non-GAAP Measures (Unaudited)
Reconciliation of GAAP to Non-GAAP Measures (Unaudited) ($ in thousands) 4Q'23 4Q'24 FY'23 FY'24 Total Operating Earnings $ 921,179 $ 1,100,769 $ 3,214,954 $ 4,358,553 Total Investing Earnings 263,295 399,375 940,390 1,150,951 Depreciation and Amortization 12,357 11,946 46,727 50,011 Adjusted EBITDA
Slide 38: Reconciliation of GAAP to Non-GAAP Measures (Unaudited)
Reconciliation of GAAP to Non-GAAP Measures (Unaudited) ($ in thousands) 4Q'24 KKR & Co. Inc. Stockholders' Equity - Common Stock - GAAP $ 23,651,568 Asset Management and Strategic Holdings Net Assets and Other(1) (20,656,959) (2) Accumulated Other Comprehensive Income and Other (Insurance) 6,402,39
Slide 39: Important Information − Endnotes
Important Information − Endnotes Notes to All Pages • The leveraged credit composite refers to the composite of certain investment portfolios made in KKR’s collateralized loan obligations and U.S. and European leveraged credit • All figures in this presentation are as of December 31, 2024, unless ot
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 December 31, 2024, Distributions and O
Slide 41: Important Information − Non-GAAP and Other Measures
Important Information − Non-GAAP and Other Measures Non-GAAP and Segment Measures to eliminate the impact of the tax expense or benefit associated with the non-operating adjustments. Equity based compensation expense is excluded from ANI, because (i) KKR The key non-GAAP and other operating and perf
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
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
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
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 new business segment Strategic Holdings may be materially less than our current expectations or not materialize at all, and This presentation contains certain f
Slide 46: Important Information − Other Legal Disclosures (cont'd)
Important Information − Other Legal Disclosures (cont’d) Forward Looking Statements (cont'd) Global Atlantic’s actual or perceived financial strength and ratings of Global Atlantic and its subsidiaries; business Global Atlantic reinsures and business it cedes to reinsurers; Without limiting the stat