01—Abstract
Summary
Summary of the 10-K filed March 7, 2011. Cited figures are marked; the original filing is the authoritative source.
KKR & Co. Inc.'s 2010 10-K filing reveals a significant year of growth and transition, marked by its listing on the New York Stock Exchange in July 2010.
The firm reported substantial growth in Assets Under Management (AUM) to $61.0 billiona, a 26.1% compounded annual growth rate since 2004, driven by expansion across private markets, public markets, and capital markets services. Despite challenging market conditions, KKR demonstrated strong performance in its Private Markets segment, with legacy funds achieving a gross IRR of 25.8% since inception compared to the S&P 500's 11.6%. The firm's expansion into new areas like infrastructure and natural resources, coupled with a strategic focus on client relationships, positions it for continued growth.
Financially, the year showed a recovery from the 2008 downturn, with net income attributable to KKR & Co. L.P. at $333.2 millionb, compared to a net loss in 2008 and a significantly higher net income in 2009. Key drivers included robust investment income, particularly from private equity, and increased fees from capital markets activities.
The firm's liquidity remained strong, supported by significant cash and cash equivalents and available credit facilities. KKR's diversified business model and global platform appear to be successfully navigating the economic landscape.
02—Key points
Key Highlights
- KKR's Assets Under Management (AUM) grew to $61.0 billion by the end of 2010, reflecting strong capital raising and investment performance.
- The firm successfully listed on the New York Stock Exchange (NYSE) in July 2010, marking a significant milestone in its corporate evolution.
- Private Markets segment reported strong historical IRRs, with legacy funds achieving a gross IRR of 25.8% since inception, outperforming the S&P 500.
- KKR expanded its business lines beyond traditional private equity to include infrastructure and natural resources, diversifying its AUM base.
- The Public Markets segment showed growth in AUM, indicating successful expansion in credit strategies.
- KKR reported a net income of $333.2 million attributable to KKR & Co. L.P. for 2010, a notable recovery and growth from prior years.
- The firm maintained a strong liquidity position with approximately $0.8 billion in cash and cash equivalents and access to significant credit facilities.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2010filed March 7, 2011Financial Statements
FY2010 against FY2009
| Line item | FY2010FY2009 | Change |
|---|---|---|
| Interest Expense | $53.10M$79.64M | −33.3% |
| Net Income | $333.18M$849.68M | −60.8% |
05—Questions
Frequently Asked Questions
What was KKR's total AUM at the end of 2010?
KKR's total Assets Under Management (AUM) at the end of 2010 was $61.0 billion.
What was the firm's net income attributable to KKR & Co. L.P. for 2010?
The net income attributable to KKR & Co. L.P. for the year ended December 31, 2010, was $333.2 million.
How did KKR perform in its Private Markets segment compared to the S&P 500?
KKR's legacy private equity funds achieved a cumulative gross IRR of 25.8% since inception through December 31, 2010, compared to the S&P 500 Index's gross IRR of 11.6% over the same period.
What significant corporate event occurred for KKR in 2010?
KKR & Co. L.P. became listed on the New York Stock Exchange (NYSE) on July 15, 2010.
Did KKR expand into new investment areas?
Yes, KKR has been expanding its business by building capabilities in new areas such as fixed income, capital markets, infrastructure, and natural resources.
06—Continue