Kkr & Co. Inc. · NYSE:KKR
Kkr & — Investor Presentation (February 2025)
53 slides from Kkr &'s investor presentation, February 2025
Slide 1: KKR & Co. Inc. Overview Presentation
KKR & Co. Inc. Overview February 7,Presentation 2023 – 4Q’24 February 2025
Slide 2: Legal Disclosures
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 (collectively, “KKR”), which includes The Global A
Slide 3: KKR Overview
KKR Overview Established in 1976, KKR is a global investment firm with industry-leading investment experience and a strong culture committed to teamwork $638 billion ~2,700 KKR Multi-asset 26 KKR 48 Years in AUM employees experience offices across Credit & across across 4 continents Liquid Strategie
Slide 4: Positioned For Significant Growth Ahead
Positioned For Significant Growth Ahead Purpose-built business model with three High-growth growth engines to drive recurring earnings industry with Leveraging our leadership in key core strengths Asset Strategic markets Management Insurance Holdings ✓ Growing alternatives ✓ Differentiated ✓ Leading
Slide 5: Evolution And Growth Of Our Business
Evolution And Growth Of Our Business ($ in billions, except per share data) Three Segments 2019 2024 Scaling of Strategic Existing Insurance Asset Holdings Management Asset Businesses Management Assets Under Initial acquisition in Strategic Insurance Management February 2021 Introduced as a Holdings
Slide 6: A Strong 2024 Across Key Metrics
Year-Over- Year Growth A Strong 2024 Across Key Metrics Strong Financial Results $ 638bn +15% • Management Fees → +14% in 2024 vs. 2023 AUM • Fee Related Earnings → +37% in 2024 vs. 2023 • Adjusted Net Income → +38% in 2024 vs. 2023 Robust Fundraising Momentum • Raised $114 billion of capital in 202
Slide 7: Our Capital Allocation Toolkit
Our Capital Allocation Toolkit Core Private Equity Insurance Share Buybacks Strategic M&A Our objective for capital allocation is to generate recurring and durable, growth-oriented earnings per share Note: The statements above are forward-looking statements. These statements are estimated based on v
Slide 8: KKR's Culture And Values Drive Outcomes
KKR’s Culture And Values Drive Outcomes Teamwork Diversity Best-in-class talent Integrity One P&L and compensation pool Accountability One Collaboration Firm Business building & innovation Relationship-Driven Allows us to maximize the impact of our model Innovation Excellence 8
Slide 9: Our Model
Our Model
Slide 10: Our Model – Three Growth Engines
Our Model – Three Growth Engines Asset Strategic Insurance Management Holdings 10
Slide 11: Asset Management
Asset Management
Slide 12: Scaled And Diversified Assets Under Management
Scaled And Diversified Assets Under Management Assets Under Management ($ in billions) $638 $638 $30 Liquid Strategies $553 $116 Alternative Credit $504 $471 $130 Leveraged Credit +18% CAGR $79 Real Estate $252 $218 $86 Infrastructure & Energy(1) $195 $168 $55 Growth Equity & Core PE $130 $120 $100
Slide 13: Strong, Broad-Based Investment Performance
Strong, Broad-Based Investment Performance Fund Investment Performance Gross Unrealized Carried Interest ($ in billions) Gross Return – 2024 $7.9 Traditional Private Equity Portfolio 14% +32% $6.0 Infrastructure Portfolio 14% Opportunistic Real Estate Portfolio 4% Leveraged Credit Composite 10% Alte
Slide 14: Differentiated Value Creation Toolkit
Differentiated Value Creation Toolkit CAPSTONE KKR ADVISORS KKR CAPITAL MARKETS GLOBAL MACRO KKR GLOBAL INSTITUTE ASSET ALLOCATION PUBLIC POLICY & GLOBAL CLIENT SUSTAINABILITY SOLUTIONS 14
Slide 15: Diversified & Fast-Growing Management Fee Profile
Diversified & Fast-Growing Management Fee Profile Other(1) ~25% CAGR Core PE Growth Equity Real Estate Infrastructure Alternative Credit Leveraged Credit Traditional PE Distinct strategies in Americas, Europe and Asia 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Note: S
Slide 16: Lifecycle Of Our Products
Lifecycle Of Our Products Early Developing Maturing Scaled Platform Formation Product Buildout Building Scale Scale Benefits Private Health Care Growth North America PE Equity Middle Market PE Technology Growth Global Impact Europe PE Core PE Customized Portfolio Solutions Asia PE Core+ Real Estate
Slide 17: Lifecycle Of Our Products
Lifecycle Of Our Products Early Developing Maturing Scaled Platform Formation Product Buildout Building Scale Scale Benefits Private Health Care Growth North America PE Equity Middle Market PE Technology Growth 50%+ Global Impact Europe PE Core PE Customized Portfolio Solutions Asia PE Core+ Real Es
Slide 18: Continued Fundraising Momentum
Continued Fundraising Momentum 30+ Strategies Targeted To Raise Capital New Capital Raised In The Next 12-18 Months ($ in billions) Including three major flagship strategies Private Equity $114 Private Equity Real Assets • North America Private Equity • Customized Portfolio Solutions Credit & Liquid
Slide 19: Private Wealth Approach Positions KKR To Win
Private Wealth Approach Positions KKR To Win Traditional Family Capital Drawdown Office & K-Series Group & Perpetual Ultra HNW Partnership Vehicles Growing K-Series AUM ($ in billions) $18 Partnership with: ~3x $7 January 1, 2024 January 1, 2025 Note: These statements are estimated based on various
Slide 20: Insurance
Insurance
Slide 21: Overview Of Global Atlantic
Overview Of Global Atlantic Leading insurance company with a 20-year track record of serving the retirement & life insurance needs of individuals & institutions • Founded at Goldman Sachs in 2004 and separated as an independent company in 2013 • In February 2021, GA was initially acquired by KKR as
Slide 22: Two Complementary Channels
Two Complementary Channels Individual Markets Institutional Markets Block Fixed & Indexed Annuities Reinsurance for Annuity and Flow Life Insurance Products Insurance Companies Pension Risk Transfer (PRT) for Individuals Preneed Insurance Funding Agreements Top 5 210+ $15.4 billion 41% Top 3 30+ $27
Slide 23: Global Atlantic Has Multiple Ways To Grow
Global Atlantic Has Multiple Ways To Grow Global Atlantic has a clear path to doubling assets c Invest in Emerging Opportunities • International Life & Annuity Blocks Improve Positioning in • International Flow Re b • GA-KKR Wealth Product & Distribution Maturing Businesses • Retirement group annuit
Slide 24: Invest In Emerging Opportunities – Japan
Invest In Emerging Opportunities – Japan Insurance Landscape – Parallels Between the U.S. and Japan United States Japan ~$4 trillion ~$3 trillion Addressable market Size of Addressable market L&A Reserves(1) Aging population Growing Demand for Already aged population (~17% of population over 65) Ret
Slide 25: Multiplier Effect: Scaling GA And Asset Management In Tandem
Multiplier Effect: Scaling GA And Asset Management In Tandem …And GA Helps Scale KKR Helps Scale GA Originations… …And Third Party Insurance Capital KKR Existing Platforms… ($ in billions) ($ in billions) ($ in billions) KKR AUM of Asset Classes Average Annual Asset Originations(1) Third Party Insur
Slide 26: Strategic Holdings
Strategic Holdings
Slide 27: An Observation: The Asset Management Industry
An Observation: The Asset Management Industry Market Capitalization ($ in billions) $1,198 $1,043 Public Asset Managers Globally Note: Market capitalization as of February 19, 2025. Asset Managers inclusive of 3i Group, Affiliated Managers Group, AllianceBernstein, Amundi, Apollo, Ares, BlackRock, B
Slide 28: What Is Core PE?
What Is Core PE? Strategic Holdings currently consists of KKR’s direct interest in our Core Private Equity strategy Key Characteristics of a Core Private Equity Business Long Duration Lower Leverage Over Hold Period High-Quality Management More Limited External Exposures Cash Generative More Limited
Slide 29: We Have Built An Attractive, Diversified Strategy
We Have Built An Attractive, Diversified Strategy Industry Diversification(1) Infrastructure 10% Business Services 33% Health Care 13% TMT 14% Consumer 30% ~16% Annualized Like-for-Like Revenue & EBITDA Growth Since 2018(2) Note: See Appendix for endnotes for footnote references and important inform
Slide 30: KKR's Differentiated Asia Platform
KKR’s Differentiated Asia Platform
Slide 31: Asia Is The Driver Of Global Growth
Asia Is The Driver Of Global Growth The Asia Pacific Growth Outlook is Massive Significant Runway for Alternatives in Asia Pacific 2024E to 2029E ($ in billions) Contribution to Global Real GDP Growth (%)(1) Alternatives AUM as a % of GDP(2) Asia US expected to 10% drive ~60% 24% of total Europe glo
Slide 32: Massive Opportunity In Japan
Massive Opportunity In Japan Japanese Conglomerates Still Have a We See Opportunities to Unlock Value by Large Number of Subsidiaries Creating Simplicity out of Complexity # of Listed Subsidiaries in Japan(1) # of Listed Subsidiaries % of Total Listed Companies Price to Book Multiple of Tokyo Stock
Slide 33: KKR Is The Leading Franchise In Asia Pacific
KKR Is The Leading Franchise In Asia Pacific Diversification Across Asset Classes Best-In-Class Performance Recognized by the Market ($ in billions) Assets Under Management 2023 Asia Pacific Awards Across Asset Classes $67 Asia Credit • PEI Large-Cap Firm of the Year for the 8th Consecutive Year – A
Slide 34: KKR Is The Leading Franchise In Japan
KKR Is The Leading Franchise In Japan Large End Markets Largest KKR Exposure in Asia Pacific Differentiated Investment Returns Total Fair Value of Asia Pacific Investments Traditional PE Investments 11% 4% 37% KOREA 4th Largest SOUTHEAST ASIA 36% JAPAN Gross IRR 14% Global Economy(1) GREATER CHINA 2
Slide 35: Broad-Based Scaling And Diversification Of AUM
Broad-Based Scaling And Diversification Of AUM $67bn AUM ASIA CREDIT • Asia Credit Opportunities Fund I $3bn (5%) Asia Pacific Dedicated: Additional Investable Vehicles: ASIA INFRA • Asia Infrastructure I • Diversified Core Infrastructure • Asia Infrastructure II • K-Series $15bn (22%) 3.8x • Asia R
Slide 36: Local 'Boots On The Ground' Approach
Local ‘Boots On The Ground’ Approach Key: Country: # of Employees 580+ employees across Asia Pacific GREATER CHINA: 56 KOREA: 31 • 40+ investments since inception • 20+ investments since inception JAPAN: 56 + 155 KJRM specialists • 20+ investments since inception INDIA: 49 • 30+ investments since in
Slide 37: Leaning Into Strength To Launch New Businesses
Leaning Into Strength To Launch New Businesses ($ in billions) Asia Private Equity Asia Infrastructure Asia Credit Asia Real Estate Capital Commitments Capital Commitments AUM AUM $15 $17 4x $9 KJRM $13 $6 $3 2x $6 $4 $4 $1 $1 $4 Fund I Fund II Fund III Fund IV Fund I Fund II 2021 2024 2019 2024 200
Slide 38: Case Study – Asia Infrastructure
Case Study – Asia Infrastructure Largest Pan-Regional Fund Diversification Across Industry Leader Asset Classes & Geographies Asia Infra Assets Under Management ($bn) Fund Commitments: $14.6 4% Fund I: $3.8bn $13.7 10% Fund II: $6.4bn $12.2 32% 20+ investments 20% 2020 2021 2022 2023 $3.8 $4.0 31% $
Slide 39: Case Study – Asia Private Equity
Case Study – Asia Private Equity Largest Pan-Regional One of the longest Asian Recognized Excellence Private Equity Franchise Private Equity Track Records ($ in billions) $33 2023 Select Asia Pacific Awards 2x $27bn • PEI Asia Pacific Large-Cap Firm of the INVESTED ACROSS OVER 100 Year for the 8th C
Slide 40: Case Study – Asia Real Estate
Case Study – Asia Real Estate Meaningful position in the Combined capabilities with The KKR Edge 4th largest commercial real one of Japan’s largest real estate markets globally(1) estate asset managers Differentiated presence and operating capabilities $17bn of AUM Extended pools of capital across c
Slide 41: Appendix I
Appendix I
Slide 42: Our Earnings Framework
Our Earnings Framework Strategic Expected Insurance Fee Related Holdings Total Operating to be More Operating Stable & Earnings Operating Earnings Recurring Earnings Earnings Net of Compensation and Operating Expenses Net Realized Net Realized Driven by Performance Investment Total Investing Monetiz
Slide 43: Fourth Quarter 2024 Segment Earnings
Fourth Quarter 2024 Segment Earnings ($ 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 44: Appendix II
Appendix II
Slide 45: Reconciliation of GAAP to Non-GAAP Measures (Unaudited)
Reconciliation of GAAP to Non-GAAP Measures (Unaudited) ($ in thousands) FY'19 4Q'23 4Q'24 3Q'23 LTM 3Q'24 LTM FY'23 FY'24 Net Income (Loss) - KKR Common Stockholders $ 1,971,685 $ 1,040,429 $ 1,125,555 $ 2,761,195 $ 2,991,119 $ 3,680,514 $ 3,076,245 Preferred Stock Dividends 33,364 — — 68,997 — 51,
Slide 46: Reconciliation of GAAP to Non-GAAP Shares (Unaudited)
Reconciliation of GAAP to Non-GAAP Shares (Unaudited) 46
Slide 47: Important Information – Endnotes
Important Information – Endnotes Notes to Page 3 – KKR Overview Notes to Page 22 – Two Complementary Channels • KKR offices excludes offices that are not part of KKR’s asset management business, including Global (1) Fixed-rate annuities based on sales data as reported by LIMRA for the three months e
Slide 48: Important Information – Endnotes
Important Information – Endnotes Notes to Page 29 – We Have Built An Attractive, Diversified Strategy Note to Page 40 – Case Study – Asia Real Estate (1) Data represented calculated by 3Q’24 LTM adjusted EBITDA (KKR’s Share) as of December 31, 2024. (1) Source: MSCI. (2) Like-for-like calculation re
Slide 49: Non-GAAP and Segment Definitions
Non-GAAP and Segment Definitions The key non-GAAP and other operating and performance measures that follow are used by management deductions from equity-based compensation were to be excluded from Income Taxes on Adjusted in making operational and resource deployment decisions as well as in assessin
Slide 50: Non-GAAP and Segment Definitions (cont'd)
Non-GAAP and Segment Definitions (cont’d) • Insurance Operating Earnings is the segment profitability measure used to make operating earnings from companies and businesses reported through its Strategic Holdings segment. decisions and to assess the performance of the Insurance segment. This measure
Slide 51: Important Information – Other Legal Disclosures
Important Information – Other Legal Disclosures Past Performance and Investment Returns compounding earnings over a long period of time from such segment, and the belief that such segment is an unconstrained business line); KKR’s ability to grow its AUM, to deploy capital, to realize unrealized Past
Slide 52: Important Information – Other Legal Disclosures (cont'd)
Important Information – Other Legal Disclosures (cont’d) Forward-Looking Statements (cont’d) within the expected timeframes); interest rate fluctuations; difference between policyholder behavior estimates, reserve assumptions and actual claims experience; estimates used in preparation of These state
Slide 53: Important Information – Other Legal Disclosures (cont'd)
Important Information – Other Legal Disclosures (cont’d) Website From time to time, we may use our website as a channel of distribution of material information. Financial and other material information regarding KKR is routinely posted on and accessible at www.kkr.com. Financial and other important