01—Abstract
Summary
Summary of the 10-K filed February 24, 2017. Cited figures are marked; the original filing is the authoritative source.
KKR & Co. Inc. (KKR) reported its annual results for the fiscal year ended December 30, 2016.
The firm, a global investment leader across various asset classes, demonstrated resilience amidst market conditions. The report highlights KKR's robust performance in its Private Markets segment, which saw significant growth in Assets Under Management (AUM) driven by strong capital raising. The Public Markets segment also showed positive AUM growth, indicating expansion in credit and hedge fund strategies.
Key developments for the period include strategic transactions and capital allocation initiatives, such as a planned increase in quarterly distributions to common unit holders and an expanded common unit repurchase program. KKR's operational focus remains on driving value creation within its portfolio companies and expanding its global investment platform. The firm's diversified business model and strategic geographical presence position it to navigate market complexities and capitalize on future opportunities.
02—Key points
Key Highlights
- Total AUM across all segments reached $139.5 billion as of December 31, 2016, with Private Markets AUM at $73.8 billion and Public Markets AUM at $55.7 billion.
- Net Income Attributable to KKR & Co. L.P. Common Unitholders was $287.1 million for the year ended December 31, 2016.
- The firm announced an intention to increase its regular quarterly distribution to common unitholders from $0.16 to $0.17 per common unit.
- KKR authorized an incremental $250 million for common unit repurchases, adding to the existing repurchase program.
- The Private Markets segment saw a notable increase in AUM due to new capital raised, particularly in Americas Fund XII, and positive performance across its portfolio.
- KKR's 2006 Fund, a legacy fund, showed a cumulative gross IRR of 25.6% from inception to December 31, 2016, outperforming major indices.
- The firm continues to emphasize its 'one-firm' approach, aligning employee interests with those of unitholders and fund investors through equity ownership and carry pool allocations.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2016filed February 24, 2017Financial Statements
FY2016 against FY2015
| Line item | FY2016FY2015 | Change |
|---|---|---|
| Revenue | $2.04B— | — |
| Interest Expense | $789.95M$573.23M | +37.8% |
| Net Income | $309.31M$488.48M | −36.7% |
05—Questions
Frequently Asked Questions
What was KKR's overall financial performance in 2016?
For the year ended December 31, 2016, KKR reported Net Income Attributable to KKR & Co. L.P. Common Unitholders of $287.1 million. The firm's total segment revenues were $1.87 billion, with total segment expenses of $1.07 billion, resulting in Economic Net Income (Loss) of $794.4 million.
How did KKR's Assets Under Management (AUM) perform in 2016?
KKR's total AUM grew to $139.5 billion as of December 31, 2016. The Private Markets segment AUM increased to $73.8 billion, and the Public Markets segment AUM grew to $55.7 billion, reflecting successful capital raising and investment performance across various strategies.
What were the key strategic initiatives or developments announced in the filing?
Key developments included the announcement of an intention to increase the regular quarterly distribution to common unit holders from $0.16 to $0.17 per unit, and an authorization for an additional $250 million for common unit repurchases. Additionally, KKR announced a strategic transaction to create a new liquid alternatives investment firm by combining PAAMCO and KKR Prisma, where KKR would retain a 39.9% stake.
06—Continue