KKR & Co. Inc. (KKR) Q4 2021 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, everyone. Welcome to our fourth quarter 2021 earnings call. As usual, I'm joined this morning by Rob Lewin, our CFO, and Scott Nuttall, our co-chief executive officer. We'd like to remind everyone that we'll refer to non-GAAP measures on the call, which are reconciled to GAAP figures in our press release, which is available on the Investor Center section at KKR.com. And as a reminder, we report our segment numbers on an adjusted share basis. Our call will contain forward-looking statements which do not guarantee future events or performance. Please refer to our earnings release and SEC filings for cautionary factors about these statements. Now, before we jump into our results for the quarter, we'd like to take a step back and talk about KKR in full. As we look at our business, we see four things. First, we see scaling. Organically, over the last 12 months, AUM at KKR increased 48%. For an asset management business of our size, that alone is a pretty remarkable statistic. And including the Global Atlantic acquisition, AUM increased 87% year over year. Second, you're seeing the impact of this scaling across many of the numbers that we're reporting today. You see it in our financials. Management fees for the year increased 44%. Fee-related earnings increased 54%, while distributable earnings more than doubled. All of these figures are at a record level for us. And you also see it in our operating statistics. Investment activity, for example, is at a new level. In 2020, we invested $30 billion across the firm. In 2021, that increased to over $70 billion. A new capital raised of $121 billion for the year reflects breadth and diversification. Approximately one-third of that capital was raised from the broad private equity franchise, so including our growth st...