KKR Hits Record $638B AUM As Fee Revenue Surges 35%, Earnings Recap

What's Happening: 

KKR & Co. Inc. has released its fourth quarter 2024 financial results, showing significant growth across its asset management, insurance, and strategic holdings segments. The report demonstrates KKR's continued expansion and robust performance in challenging market conditions.

Why It Matters:

• Growth: The firm's key financial metrics, including Fee Related Earnings, Total Operating Earnings, and Adjusted Net Income all grew over 35% year-over-year

• Scale: KKR raised over $100 billion in new capital and invested a record amount on behalf of clients

• Milestone: Capital markets business generated $1 billion in revenues for the first time in KKR's history

The Key Moves:

• Strategic Expansion: Announced plans to increase ownership stakes in three core private equity businesses - USI Insurance Services, 1-800 Contacts, and Heartland Dental - by approximately $1.1 billion

• Dividend Growth: Increasing regular annualized dividend from $0.70 to $0.74 per share starting Q1 2025

• Portfolio Optimization: Enhanced focus on asset management, insurance, and strategic holdings business model

By The Numbers:

• Assets: Total Assets Under Management reached $638 billion, up 15% year-over-year

• Earnings: Fee Related Earnings hit $843 million in Q4 ($0.94/adj. share), up 25% year-over-year

• Performance: Adjusted Net Income reached $4.2 billion for the year ($4.70/adj. share), up 38%

The Wrap: 

KKR's robust performance across all business segments, coupled with strategic acquisitions and increased dividend payments, positions the firm for continued growth. The company's diversified business model and strong capital position suggest resilience in navigating market challenges while pursuing expansion opportunities.