The following is a summary of the KKR & Co. Inc. (KKR) Q4 2023 Earnings Call Transcript:
Financial Performance:
KKR reported Q4 fee-related earnings per share of $0.76, up 21% from Q3 2023 and Q4 2022.
After-tax distributable earnings were at $1 per share.
Management fees for the quarter were $785 million, a 3.4% growth quarter-on-quarter and 14% year-on-year growth.
Fee-related revenues for the quarter were $1.1 billion, a 17% increase year-on-year.
Fee-related earnings were $675 million, a record for the company, and total asset management operating earnings were $970 million.
In the Insurance segment, pre-tax earnings were $231 million, up 10% quarter-over-quarter.
The private equity portfolio appreciated 3% in the quarter and 16% in the year.
Assets under management now total $553 billion, up 10% compared to the end of 2022.
Business Progress:
New capital raised in Q4 was $31 billion.
The firm acquired the remaining stake in Global Atlantic and has created a new strategic holding segment.
Anticipates significant business growth, particularly within private credit and asset-based finance departments.
They have planned fundraising strategies for Americas private equity later this year, with the Asia initiative expected to be a 2025 initiative.
Wealth investor targeted K Series suite of products is predicted to be a long-term growth area.
The infrastructure platform's AUM grew from $17 billion three a year ago to around $60 billion in Q4 2023.
The company has expanded its footprint in Asia, growing from $21 billion AUM at the end of 2019 to $65 billion by the end of 2023.
Global Atlantic is expecting significant growth in its individual and institutional sectors, with promising reinsurance and pension risk transfer markets' developments.
About 75% of the capital required in two block deals is anticipated to be funded by third parties.
The capital allocation strategy focuses on optimizing for recurring and growth-oriented earnings per share and targets four strategic areas of deployment: insurance, core private equity, strategic M&A, and share buybacks.
More details: KKR & Co IR
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