01—Abstract
Summary
Summary of the 10-K filed February 24, 2014. Cited figures are marked; the original filing is the authoritative source.
KKR & Co. Inc. (KKR) filed its 2013 10-K on February 23, 2014, reporting on its activities as of December 31, 2013.
The company demonstrated strong growth and performance across its segments. Total Assets grew to $51.4 billiona, with Assets Under Management (AUM) reaching $94.3 billion across its Private Markets ($61.2 billion) and Public Markets ($33.1 billion) segments. The firm's Fee Related Earnings (FRE) indicated robust operational profitability in its management and capital markets businesses.
Net Income Attributable to KKR & Co. L.P. for 2013 was $691.2 millionb, a significant increase from $560.8 million in 2012, reflecting strong investment performance and growth in fee-generating assets. The company's strategic focus on expanding its offerings into real assets and credit, alongside its core private equity business, positions it for continued growth. Key performance indicators like Fee Paying Assets Under Management (FPAUM) also showed positive trends, indicating a solid base for recurring management fees.
KKR highlighted the strength of its investment strategies, particularly in Private Markets, where its funds generated a cumulative gross IRR of 25.7% from inception through December 31, 2013, outperforming major market indices. The company's balance sheet strength was evident with $2.2 billionc in cash and short-term investments, supporting its ongoing operations and strategic initiatives, including the announced acquisition of Avoca Capital and the pending merger with KKR Financial Holdings LLC (KFN). The report also detailed KKR's commitment to aligning interests with its principals and investors through equity ownership and carried interest structures, while managing risks through robust governance and compliance frameworks.
02—Key points
Key Highlights
- Total Assets reached $51.4 billion by December 31, 2013, with $94.3 billion in Assets Under Management (AUM).
- Net Income Attributable to KKR & Co. L.P. was $691.2 million for the year ended December 31, 2013, up from $560.8 million in 2012.
- Private Markets segment AUM grew to $61.2 billion, driven by new capital raised and appreciation in portfolio companies.
- Public Markets segment AUM increased to $33.1 billion, largely due to acquisitions and new capital inflows.
- Fee Related Earnings (FRE) and Economic Net Income (ENI) demonstrated the firm's profitability across its business segments.
- KKR's private equity funds achieved a cumulative gross IRR of 25.7% from inception through December 31, 2013, significantly outperforming market benchmarks.
- The company reported $2.2 billion in cash and short-term investments, indicating strong liquidity.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2013filed February 24, 2014Financial Statements
FY2013 against FY2012
| Line item | FY2013FY2012 | Change |
|---|---|---|
| Interest Expense | $99.62M$69.16M | +44.0% |
| Net Income | $691.23M$560.84M | +23.2% |
05—Questions
Frequently Asked Questions
What was KKR's overall financial performance in 2013?
For the year ended December 31, 2013, KKR reported total assets of $51.4 billion and managed $94.3 billion in Assets Under Management (AUM). Net income attributable to KKR & Co. L.P. was $691.2 million, an increase from $560.8 million in the prior year, indicating strong growth and profitability.
How did KKR's Private Markets and Public Markets segments perform?
The Private Markets segment saw its AUM grow to $61.2 billion by year-end 2013, driven by new capital raised and investment appreciation. The Public Markets segment's AUM increased to $33.1 billion, benefiting from acquisitions and new capital inflows. Both segments contributed positively to the firm's overall financial results.
What is KKR's strategy for future growth and profitability?
KKR's strategy involves expanding its offerings into real assets and credit, alongside its core private equity business, leveraging its global platform, deep industry expertise, and strong investor relationships. The company also focuses on aligning its interests with those of its principals and investors through equity ownership and carried interest, while managing risks through robust governance and compliance frameworks. Strategic acquisitions, like Avoca Capital, and pending mergers, such as with KFN, are key components of its growth strategy.
06—Continue