Kkr & Co. Inc. · NYSE:KKR
Kkr & — Q1 2021 Earnings Presentation
44 slides from Kkr &'s earnings presentation, May 4, 2021
Slide 1: KKR & Co. Inc. Reports First Quarter 2021 Financial Results
KKR & Co. Inc. Reports First Quarter 2021 Financial Results May 4, 2021
Slide 2: KKR Reports First Quarter 2021 Financial Results
KKR Reports First Quarter 2021 Financial Results New York, May 4, 2021 – KKR & Co. Inc. (NYSE: KKR) today reported its first quarter 2021 results. Conference CallA conference call to discuss KKR's financial results will be held on Tuesday, May 4, 2021 at 10:00 a.m. ET. The conference call may be acc
Slide 3: Legal Disclosures
KKR Reports First Quarter 2021 Financial Results Legal DisclosuresThis 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 (c
Slide 4: KKR & Co. Inc. First Quarter Earnings
KKR & Co. Inc. First Quarter Earnings
Slide 5: KKR's First Quarter 2021 GAAP Results (Unaudited)
KKR’s First Quarter 2021 GAAP Results (Unaudited) GAAP Net Income Attributable to KKR & Co. Inc. Common Stockholders was $1.6 billion for the quarter. GAAP Stockholders’ Equity Per Outstanding Share of Common Stock was $22.62 at quarter end Note: All figures in this presentation are as of March 31,
Slide 6: KKR's First Quarter 2021 Highlights
KKR’s First Quarter 2021 Highlights Financial Measures Capital Metrics Fee Related Earnings (“FRE”) of $364 million ($0.41/adj. share) in the quarter, up 41% year-over-year FRE was $1.4 billion for the LTM ($1.60/adj. share), up 28% year-over-yearAfter-tax Distributable Earnings (“DE”) of $660 milli
Slide 7: KKR's First Quarter 2021 Segment Earnings
KKR’s First Quarter 2021 Segment Earnings Note: See Appendix for GAAP reconciliations, endnotes about taxes affecting After-tax Distributable Earnings and other important information.
Slide 8: Management Fees and Fee Related Earnings
Management Fees and Fee Related Earnings Fee Related Earnings Per Adjusted Share FRE per adjusted share FRE margin Increased by 20% to $1.5 billion over the LTM periodThe Asia platform has continued to scale with Asia IV, Asia Real Estate and Asia Infrastructure all entering their investment periods
Slide 9: Assets Under Management
Assets Under Management AUM increased to $367 billion, up 77% year-over-year, with $15 billion of organic new capital raised in the quarter and $51 billion for the LTM period. The acquisition of Global Atlantic contributed $98 billion in 1Q’21Fee Paying AUM of $288 billion was up 81% year-over-year,
Slide 10: Additional Capital Detail
Additional Capital Detail Uncalled Commitments ($ in billions) Dry Powder: Uncalled commitments of $69 billion are diversified across the firm’s strategies and are up 19% year-over-yearAUM Not Yet Paying Fees: At quarter end, there was $20 billion of committed capital with a weighted average managem
Slide 11: Fund Investment Performance
Fund Investment Performance QTD 18% 79% Private Equity Real Assets Private Equity Flagship Funds(1) Opportunistic Real Estate Portfolio Infrastructure Portfolio Credit Alternative Credit Composite Strong unrealized appreciation across strategies led to a 45% increase in gross unrealized carried inte
Slide 12: Segment Detail
Segment Detail KKR
Slide 13: Asset Management Segment − Private Markets
Asset Management Segment − Private Markets AUM: Increased 20% quarter-over-quarter and 56% year-over-year to $178 billion with new capital raised of $7 billion in the quarter and $31 billion for the LTM periodAsia IV’s final close in 1Q brought the total fund size to $15 billion, the largest Asia PE
Slide 14: Asset Management Segment − Public Markets
AUM: Increased 84% quarter-over-quarter and 104% year-over-year to $190 billion with new capital raised of $7 billion in the quarter and $20 billion for the LTM periodThe Global Atlantic acquisition added $85 billion to credit AUMNew capital raised during the quarter was driven primarily by originat
Slide 15: Asset Management Segment − Capital Markets and Principal Activities
Transaction Fees: Totaled $112 million in the quarter and $532 million over the LTM periodFor the LTM period, fees were diversified across transaction types and geographies, with 44% coming from North America, 37% from Europe and 19% from Asia Asset Management Segment − Capital Markets Realizations:
Slide 16: Insurance Segment
Note: KKR’s 1Q’21 results only include the results of Global Atlantic for the two months beginning on February 1, 2021; comparability to prior and future periods may be limited. See Appendix for endnotes explaining certain terms. Net Investment Income: Net Investment Income of $446 million in the qu
Slide 17: Book Value Per Adjusted Share
Book Value Per Adjusted Share: Increased 56% year-over-year and 12% since 4Q’20 driven primarily by strong investment performanceCash and Investments: $20 billion as of quarter endGlobal Atlantic Book Value: Reflects our 61% economic ownership Book Value Book Value Per Adjusted Share Note: Percentag
Slide 18: Investments Detail
Investments Detail Investment Holdings by Asset Class Note: Investments is a term used solely for purposes of financial presentation of a portion of KKR’s balance sheet. See Appendix for endnotes and other important information.
Slide 19: Capital Detail
Capital Detail KKR
Slide 20: Strategic Investor Partnership and Perpetual Capital
Strategic Investor Partnership and Perpetual Capital Strategic Partnership & Perpetual Capital ($ in billions) Long-Dated Strategic Investor Partnerships Perpetual CapitalGlobal Atlantic (Perpetual) Duration of Capital 87% of AUM with a duration of at least 8+ years at inception Perpetual CapitalLon
Slide 21: Assets Under Management Rollforward
Assets Under Management Rollforward Includes $3,729 million of redemptions by fund investors in Public Markets.Includes $13,282 million of redemptions by fund investors in Public Markets.
Slide 22: Fee Paying Assets Under Management Rollforward
Fee Paying Assets Under Management Rollforward Includes $2,131 million of redemptions by fund investors in Public Markets.Includes net changes in fee base of certain Private Markets funds of $2,464 million. Includes $8,196 million of redemptions by fund investors in Public Markets.
Slide 23: Supplemental Information
Supplemental Information KKR
Slide 24: Investment Vehicle Summary
Investment Vehicle Summary The “Invested” and “Realized” columns do not include the amounts of any realized investments that restored the unused capital commitments of the fund investors, if any.
Slide 25: Investment Vehicle Summary (cont'd)
Investment Vehicle Summary (cont’d) The “Invested” and “Realized” columns do not include the amounts of any realized investments that restored the unused capital commitments of the fund investors, if any.Open ended fund.Represents unallocated commitments from our strategic investor partnerships.
Slide 26: Investment Vehicle Summary (cont'd)
Investment Vehicle Summary (cont’d) The "Commitment" and "Uncalled Commitments" columns include income that is eligible to be reinvested if permitted under the terms of the investment vehicle agreements.Represents unallocated commitments from our strategic investor partnerships.
Slide 27: Stock Summary
Stock Summary KKR & Co. Inc.'s initial repurchase authorization was announced on October 27, 2015. Information is through April 30, 2021.Refers to the retirement of equity awards issued pursuant to KKR & Co. Inc.’s equity incentive plans.Shares that may be issued by KKR & Co. Inc. upon exchange of K
Slide 28: Dividends
Dividends The declaration and payment of any future dividends on preferred or 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 the board deems relevant,
Slide 29: Appendix
Appendix KKR
Slide 30: GAAP Condensed Consolidated Income Statement (Unaudited)
GAAP Condensed Consolidated Income Statement (Unaudited)
Slide 31: GAAP Condensed Consolidated Balance Sheet (Unaudited)
GAAP Condensed Consolidated Balance Sheet (Unaudited)
Slide 32: Reconciliation of GAAP to Non-GAAP Measures (Unaudited)
Reconciliation of GAAP to Non-GAAP Measures (Unaudited)
Slide 33: Reconciliation of GAAP to Non-GAAP Measures (Unaudited)
Reconciliation of GAAP to Non-GAAP Measures (Unaudited) Represents equity-based compensation expense in connection with non-dilutive share grants from outstanding but previously unallocated units of KKR Holdings.
Slide 34: Reconciliation of GAAP to Non-GAAP Measures (Unaudited)
Reconciliation of GAAP to Non-GAAP Measures (Unaudited)
Slide 35: Reconciliation of GAAP to Non-GAAP Measures (Unaudited)
Reconciliation of GAAP to Non-GAAP Measures (Unaudited)
Slide 36: KKR's First Quarter 2021 Segment Earnings – Detailed View
KKR’s First Quarter 2021 Segment Earnings – Detailed View Note: KKR’s 1Q’21 and 1Q’21 LTM results only include the results of Global Atlantic for the two months beginning on February 1, 2021.
Slide 37: Notes to page – First Quarter 2021 Segment Earnings
Notes to page 3 – KKR’s First Quarter 2021 Segment EarningsIncome taxes paid includes $57.3 million paid during 1Q’21 related to an investment for which the realization of investment income will not occur until a future period. The amount of tax benefit from equity-based compensation for 1Q’21 and 1
Slide 38: Notes to page – Book Value
Notes to page 13 – Book ValueAssuming for the 2021 year that we had paid (i) 65% of the unrealized carried interest earned by the funds that allocate 40% and 43% to the carry pool and (ii) 15% of the unrealized gains in our Principal Activities business line (in each case at the mid-point of the ran
Slide 39: Important Information – Non-GAAP and Other Measures
Important Information – Non-GAAP and Other Measures Non-GAAP and Segment MeasuresThe key non-GAAP and other operating and performance measures that follow are used by management in making operational and resource deployment decisions as well as assessing the performance of KKR's businesses. They inc
Slide 40: 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)Book Value is a non-GAAP performance measure of the net assets of KKR and is used by management primarily in assessing the unrealized value of KKR’s net assets presented on a basis that (i) deconsolida
Slide 41: 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)Fee Related Earnings (“FRE”) is a performance measure used to assess the Asset Management segment’s generation of profits from revenues that are measured and received on a recurring basis and are not d
Slide 42: Important Information – Non-GAAP and Other Measures (cont'd)
Important Information – Non-GAAP and Other Measures (cont’d) Other Measures and Terms (cont’d)Capital Invested is the aggregate amount of capital invested by (i) KKR’s investment funds and Global Atlantic insurance companies, (ii) KKR's Principal Activities business line as a co-investment, if any,
Slide 43: Important Information – Other Legal Disclosures
Important Information – Other Legal Disclosures WebsiteFrom time to time, KKR may use its website as a channel of distribution of material company information. Financial and other important information regarding KKR is routinely posted and accessible on the Investor Center for KKR & Co. Inc. at http
Slide 44: Important Information – Other Legal Disclosures (cont'd)
Important Information – Other Legal Disclosures (cont’d) Forward Looking StatementsThis presentation contains certain forward-looking statements pertaining to KKR (including Global Atlantic), including investment funds, vehicles and accounts managed by KKR and the insurance companies managed by Glob