Summary
KKR & Co. Inc. (KKR) filed its annual report on Form 10-K for the fiscal year ended December 30, 2012. The report highlights KKR's strong position as a global investment firm with $75.5 billion in Assets Under Management (AUM) as of year-end 2012 and a 36-year history. The company emphasizes its diversified business model, operating across Private Markets (private equity, infrastructure, natural resources, real estate) and Public Markets (credit strategies, equity strategies, hedge fund solutions), supported by a robust Capital Markets and Principal Activities segment. Financially, the report details a significant increase in net income attributable to KKR & Co. L.P. to $560.8 million in 2012, a substantial jump from $1.9 million in 2011. This growth was driven primarily by strong investment performance in the Private Markets segment, particularly in private equity, which saw substantial unrealized gains and realized gains from portfolio company performance. Fees, however, saw a decrease in 2012 compared to 2011, mainly due to lower transaction and monitoring fees resulting from fewer and smaller investment transactions. Despite this, KKR's overall financial health appears robust, supported by strategic acquisitions like Prisma Capital Partners and a growing AUM across its segments.
Financial Highlights
29 data points| Interest Expense | $69.16M |
| Net Income | $560.84M |
Key Highlights
- 1KKR reported a significant net income of $560.8 million in 2012, a substantial increase from $1.9 million in 2011, primarily driven by strong investment performance in its Private Markets segment.
- 2Assets Under Management (AUM) grew to $75.5 billion as of December 31, 2012, reflecting growth across both Private Markets ($49.1 billion) and Public Markets ($26.4 billion).
- 3The company experienced a decrease in total fees in 2012 to $823.9 million (down from $911.7 million in 2011), primarily due to lower transaction fees and monitoring fees, reflecting a slowdown in deal activity.
- 4KKR continued its expansion strategy, notably acquiring Prisma Capital Partners in October 2012 to bolster its hedge fund solutions business and entering into a joint venture for its capital markets services.
- 5The firm maintains a strong liquidity position, with $1.53 billion in cash and short-term investments as of December 31, 2012, and access to significant revolving credit facilities.
- 6KKR's Private Markets segment generated $683.5 million in net carried interest in 2012, a substantial increase from $139.3 million in 2011, demonstrating strong performance in its private equity funds.
- 7The company's long-term investment approach is evidenced by a cumulative gross IRR of 25.7% for funds with at least 36 months of activity since inception through December 31, 2012, outperforming benchmark indices.