Kkr & Co. Inc. · NYSE:KKR
Kkr & — Q1 2024 Earnings Presentation
47 slides from Kkr &'s earnings presentation, May 1, 2024
Slide 1: KKR & Co. Inc. Reports First Quarter 2024 Financial Results
KKR & Co. Inc. Reports First Quarter 2024 Financial February 7,Results 2023 May 1, 2024
Slide 2: KKR Reports First Quarter 2024 Financial Results
KKR Reports First Quarter 2024 Financial Results New York, May 1, 2024 – KKR & Co. Inc. (NYSE: KKR) today reported its first quarter 2024 results. Conference Call A conference call to discuss KKR's financial results will be held on May 1, 2024 at 10:00 a.m. ET. The conference call may be accessed by
Slide 3: Legal Disclosures
KKR Reports First 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. First Quarter Earnings
KKR & Co. Inc. First Quarter Earnings
Slide 5: First Quarter 2024 GAAP Results (Unaudited)
First Quarter 2024 GAAP Results (Unaudited) GAAP Net Income (Loss) Attributable to KKR & Co. Inc. Common Stockholders was $0.7 billion for the quarter and $4.0 billion in the LTM. ($ in thousands, except per share data) 1Q'23 1Q'24 1Q'23 LTM 1Q'24 LTM Revenues Asset Management and Strategic Holdings
Slide 6: First Quarter 2024 Highlights
First Quarter 2024 Highlights • Fee Related Earnings (“FRE”) of $669 million ($0.75/adj. share) in the quarter, up 22% year-over-year • FRE was $2.5 billion in the LTM ($2.81/adj. share), up 19% year-over-year • Total Operating Earnings ("TOE") of $962 million ($1.08/adj. share) in the quarter, up F
Slide 7: First Quarter 2024 Segment Earnings
First Quarter 2024 Segment Earnings ($ in thousands, except per share data) 1Q'23 1Q'24 1Q'23 LTM 1Q'24 LTM Management Fees $ 738,156 $ 815,327 $ 2,769,715 $ 3,107,496 Transaction and Monitoring Fees, Net 142,179 152,084 612,074 730,559 Fee Related Performance Revenues 21,741 19,101 100,355 91,787 F
Slide 8: Total Operating Earnings
Total Operating Earnings • In 1Q'24 we introduced Total Operating Earnings ("TOE") as an additional key financial measure • Total Operating Earnings - the sum of Fee Related Earnings, Insurance Operating Earnings and Strategic Holdings Operating Earnings - represents the more recurring portion of KK
Slide 9: Asset Management Segment Detail
Asset Management Segment Detail
Slide 10: Asset Management Segment
Asset Management Segment ($ in thousands, except per share data) 1Q'23 1Q'24 1Q'23 LTM 1Q'24 LTM Management Fees $ 738,156 $ 815,327 $ 2,769,715 $ 3,107,496 Transaction and Monitoring Fees, Net 142,179 152,084 612,074 730,559 Fee Related Performance Revenues 21,741 19,101 100,355 91,787 Fee Related
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 12% to $3.1 billion in the LTM • Increased 18% year-over-year driven primarily by the • Growth has been driven by an increase in Fee Paying growth in management fees AUM fr
Slide 12: Assets Under Management
Assets Under Management • AUM of $578 billion, up 13% year-over-year, with $31 billion of organic new capital raised in the quarter and $88 billion in the LTM • Fee Paying AUM of $471 billion, up 13% year-over-year, with $36 billion of organic new capital raised in the quarter and $93 billion in the
Slide 13: Additional Capital Detail
Additional Capital Detail • Dry Powder: Uncalled commitments of $98 billion remain diversified across the firm’s investment strategies • AUM Not Yet Paying Fees: At quarter end, there was $44 billion of committed capital with a weighted average management fee rate of greater than 90 bps that becomes
Slide 14: Fund Investment Performance
Fund Investment Performance Gross unrealized carried interest totals $6.9 billion as of March 31, 2024 Gross Return 1Q'24 LTM Private Equity Traditional Private Equity Portfolio 5% 19% Real Assets Infrastructure Portfolio 5% 16% Opportunistic Real Estate Portfolio 1% 1% Credit Leveraged Credit Compo
Slide 15: Asset Management Segment − Private Equity
Asset Management Segment − Private Equity • AUM: Increased 4% quarter-over-quarter and increased 10% year-over-year to $183 billion with organic new capital raised of $4 billion in the quarter and $10 billion in the LTM • New capital raised in the quarter was primarily driven by Ascendant and K-Seri
Slide 16: Asset Management Segment − Real Assets
Asset Management Segment − Real Assets • AUM: Increased 3% quarter-over-quarter and 12% year-over-year to $135 billion with organic new capital raised of $6 billion in the quarter and $19 billion in the LTM • New capital raised in the quarter included activity across opportunistic real estate equity
Slide 17: Asset Management Segment − Credit and Liquid Strategies
Asset Management Segment − Credit and Liquid Strategies • AUM: Increased 6% quarter-over-quarter and 16% year-over-year to $260 billion with organic new capital raised of $21 billion in the quarter and $59 billion in the LTM • New capital raised in the quarter was widespread and driven by inflows at
Slide 18: Capital Markets and Principal Activities
Asset Management Segment − Capital Markets • Transaction Fees: Totaled $116 million in the quarter and $591 million in the LTM • Approximately 65% of transaction fees were originated in North America in the quarter • Traditional private equity and our third party business each generated approximatel
Slide 19: Insurance Segment Detail
Insurance Segment Detail
Slide 20: Insurance Segment
Insurance Segment • Net Investment Income: Net Investment Income of $1.5 billion in the quarter reflects higher yields and growth in the investment portfolio attributable to strong net inflows. Investment portfolio yields in the quarter reflect higher levels of cash and more liquid investments trans
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: • Expect Strategic Holdings Operating Earnings will be modest in 2024, $300+ million by 2026, $600+ million by 2028 and $1+ billion by 2030 • KKR's share of the businesses'
Slide 23: Supplemental Information
Supplemental Information
Slide 24: Duration of Capital
Duration of Capital Growth in Strategic & Perpetual Capital Assets Under Management ($ in billions) $304 53% of AUM is perpetual capital or long-dated strategic investor partnerships $258 $64 8% $61 42% 39% $240 $197 11% 92% of AUM is perpetual capital or has a duration of at least 8 years at incept
Slide 25: Assets Under Management Rollforward
Assets Under Management Rollforward Three Months Ended March 31, 2024 ($ in millions) Private Equity Real Assets Credit and Liquid Strategies Total Beginning Balance $ 176,377 $ 130,933 $ 245,491 $ 552,801 New Capital Raised 3,590 5,858 21,158 30,606 Distributions and Other (1,917) (1,858) (8,952) (
Slide 26: Fee Paying Assets Under Management Rollforward
Fee Paying Assets Under Management Rollforward Three Months Ended March 31, 2024 ($ in millions) Private Equity Real Assets Credit and Liquid Strategies Total Beginning Balance $ 107,726 $ 112,254 $ 226,428 $ 446,408 New Capital Raised 9,475 6,277 19,891 35,643 Distributions and Other (986) (2,068)
Slide 27: Investment Vehicle Summary
Investment Vehicle Summary 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 $ 8,219 $ 10,181 $ — $ 10,181 $ 11,710 Americas Fu
Slide 28: Investment Vehicle Summary (cont'd)
Investment Vehicle Summary (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 IV 8/2021 8/2027 $ 16,590 $ 6,860 $ 10,062 $ 332 $ 9,856 $
Slide 29: Investment Vehicle Summary (cont'd) & Additional AUM Detail
Investment Vehicle Summary (cont’d) & Additional AUM Detail 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 $ 2,336 $
Slide 30: Net Cash & Investments Highlights
Net Cash & Investments Highlights • Represents Asset Management Segment investments, corporate cash, short-term investments and debt. Investments presented here excludes the Insurance and Strategic Holdings Segments • Cash and Investments total $14.6 billion at 1Q'24 • Embedded Gains total $2.8 bill
Slide 31: Stock Summary
Stock Summary From December 31, 2023 through April 26, 2024, KKR used a total of $93 million to retire equity awards representing 0.9 million shares that otherwise would have been issued to participants under KKR's equity incentive plans. During this period, retirements were made at an average cost
Slide 32: Dividends & Other Corporate Information
Dividends & Other Corporate Information Dividends The declaration and payment of any future dividends on common stock will be subject to the discretion of the board of directors of KKR & Co. Inc. based on a number of factors, including KKR’s future financial performance and other considerations that
Slide 33: Appendix
Appendix
Slide 34: GAAP Condensed Consolidated Income Statement (Unaudited)
GAAP Condensed Consolidated Income Statement (Unaudited) ($ in thousands) 1Q'23 1Q'24 1Q'23 LTM 1Q'24 LTM Revenues Asset Management and Strategic Holdings Fees and Other $ 677,016 $ 693,526 $ 2,718,132 $ 2,980,379 Capital Allocation-Based Income (Loss) 449,018 1,262,942 (1,105,748) 3,657,361 1,126,0
Slide 35: GAAP Condensed Consolidated Balance Statement (Unaudited)
GAAP Condensed Consolidated Balance Statement (Unaudited) ($ in thousands) 4Q'23 1Q'24 Assets Asset Management and Strategic Holdings Cash and Cash Equivalents $ 8,393,892 $ 7,083,931 Investments 98,634,801 100,693,987 Other Assets 6,538,674 6,546,455 113,567,367 114,324,373 Insurance Cash and Cash
Slide 36: Reconciliation of GAAP to Non-GAAP Shares (Unaudited)
Reconciliation of GAAP to Non-GAAP Shares (Unaudited) 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 GAAP Shares of Common Stock Outstanding 861,104,000 857,987,641 884,585,205 885,005,588 885,010,967 Adjustments: Exchangeable Securities and Other 29,517,712 30,804,276 3,909,477 4,463,644 5,768,290 Adjusted Shares 8
Slide 37: Reconciliation of GAAP to Non-GAAP Measures (Unaudited)
Reconciliation of GAAP to Non-GAAP Measures (Unaudited) ($ in thousands) 1Q'23 1Q'24 1Q'23 LTM 1Q'24 LTM Net Income (Loss) - KKR Common Stockholders $ 322,744 $ 682,214 $ (258,134) $ 4,039,984 Preferred Stock Dividends 17,250 — 69,000 34,497 Net Income (Loss) Attributable to Noncontrolling Interests
Slide 38: Reconciliation of GAAP to Non-GAAP Measures (Unaudited)
Reconciliation of GAAP to Non-GAAP Measures (Unaudited) ($ in thousands) 1Q'23 1Q'24 1Q'23 LTM 1Q'24 LTM Total Operating Earnings $ 753,690 $ 962,301 $ 2,917,250 $ 3,423,565 Total Investing Earnings 226,509 192,540 1,492,022 906,421 Depreciation and Amortization 10,434 12,503 36,678 48,796 Adjusted
Slide 39: Reconciliation of GAAP to Non-GAAP Measures (Unaudited)
Reconciliation of GAAP to Non-GAAP Measures (Unaudited) ($ in thousands) 1Q'24 KKR & Co. Inc. Stockholders' Equity - Common Stock - GAAP $ 21,421,193 Asset Management and Strategic Holdings Net Assets and Other(1) (19,555,714) Accumulated Other Comprehensive Income and Other (Insurance)(2) 6,202,692
Slide 40: Important Information − Endnotes
Important Information − Endnotes Note 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 March 31, 2024, unless otherw
Slide 41: Important Information − Endnotes (cont'd)
Important Information − Endnotes (cont’d) Notes to Page 18 – Strategic Holdings Segment • For the twelve months ended March 31, 2024, Distributions and Other includes net • The adjusted revenue and adjusted EBITDA information represents the measures changes in fee base of certain Real Assets funds o
Slide 42: Important Information − Non-GAAP and Other Measures
Important Information − Non-GAAP and Other Measures Non-GAAP and Segment Measures • Adjusted Net Income is a performance measure of KKR’s earnings, which is derived from KKR’s reported segment results. ANI is used to assess the performance of KKR’s The key non-GAAP and other operating and performanc
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) at contract issuance on payout annuities. Insurance Operating Earnings includes (i) realized gains and losses not related to asset/liability matching investment strategies • Total Segment Earnings is
Slide 44: 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) ownership interest in such entities multiplied by such entity’s respective AUM. KKR's definition of AUM (i) is not based on any definition of AUM that may be set forth in the • Total Operating Earning
Slide 45: 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 46: 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 47: Important Information − Other Legal Disclosures (cont'd)
Important Information − Other Legal Disclosures (cont’d) Forward Looking Statements (cont'd) successfully; Global Atlantic’s actual or perceived financial strength and ratings of Global Atlantic and its subsidiaries; business Global Atlantic reinsures and business it Without limiting the statements