KKR & Co. Inc
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.74%.
Did KKR Beat Earnings? Q1 2025 Results
KKR delivered a solid first-quarter beat on Tuesday, posting adjusted earnings of $1.15 per share against a consensus estimate of $1.1312 — a 1.66% beat — as the alternative asset manager's operational engine continued to fire even as reported revenue fell 67.6% year-over-year amid GAAP-level unrealized losses. The headline GAAP figure masked a considerably stronger underlying story: adjusted net income climbed 20% to $1.03 billion, driven by Fee Related Earnings rising 23% to $822.60 million on a 69% FRE margin, up from 64% a year ago. Assets under management grew 15% to $664.00 billion, with the firm raising $31.00 billion in new capital during the quarter and sitting on $116.00 billion in dry powder — a war chest co-CEOs Joseph Bae and Scott Nuttall said positions the firm well to capitalize on market volatility. Looking ahead, KKR's Strategic Holdings segment is projected to generate $350 million in operating earnings by 2026, scaling toward $1.10 billion by 2030, underscoring the firm's push to build durable, compounding income streams alongside its traditional fee businesses.
- Management fees grew 15% year-over-year to $3.6 billion in the LTM, driven by increase in Fee Paying AUM from organic capital raised
- FRE margin expanded to 69% from 64% a year ago
- Transaction fees doubled year-over-year to $229 million in the quarter
- Capital markets transaction fees diversified across private equity (~25%), infrastructure (~20%), and third-party (~20%)
- Insurance net investment income growth driven by larger investment portfolio and higher average portfolio yields
- 79% of total segment earnings come from durable and recurring sources (Total Operating Earnings)
- Perpetual capital represents 42% of AUM and 52% of FPAUM
“Over our 49-year history, we have successfully navigated many periods of uncertainty. Our first quarter results and significant April activity bear testament to the strength of our diversified and durable business model. Volatility can yield attractive investment opportunities, and we're encouraged by our positioning given our global footprint, differentiated operational and investment capabilities, and collaborative culture alongside $116 billion of dry powder ready to invest on behalf of our clients.”
KKR CEO, on the earnings call
Forward Guidance & Outlook
KKR expects Strategic Holdings Operating Earnings to reach $350+ million by 2026, $700+ million by 2028, and $1.1+ billion by 2030. The firm has $13 billion of private markets investments signed and not yet closed. The Capital Group strategic partnership launched its first two public-private fixed income solutions in April 2025, with two equity-oriented strategies expected in 2026 and additional vehicles such as model portfolios and target date funds under development. KKR highlighted $116 billion of dry powder ready to invest and noted that volatility can yield attractive investment opportunities. K-Series AUM grew to $21 billion from $8 billion a year ago, and AUM not yet paying fees totals $64 billion with a weighted average management fee rate of approximately 100 bps. North America XIV fundraising, including April activity, totals $14 billion.
KKR YoY Financials
KKR Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.