01—Abstract
Summary
Summary of the 10-K filed February 19, 2021. Cited figures are marked; the original filing is the authoritative source.
KKR & Co. Inc.'s 2020 10-K filing highlights a year of robust growth and strategic expansion, marked by significant increases in Assets Under Management (AUM) and a strong performance across its diverse business lines, including Private Markets, Public Markets, Capital Markets, and Principal Activities.
The company's asset management business demonstrated resilience and growth, with AUM reaching $251.7 billiona by the end of 2020, supported by new capital raised and favorable market conditions in certain segments. The firm's operational and investment strategies continue to focus on value creation through proactive engagement with portfolio companies. Key developments during the period include the company's commitment to a significant acquisition of Global Atlantic Financial Group, a leading U.S. annuity and life insurance company, which closed in early 2021, marking a major expansion into the insurance sector.
Financially, KKR reported strong net income and increased book value per adjusted share, reflecting successful investment activities and disciplined expense management. The company's capital markets business also saw increased transaction volumes, contributing to overall revenue growth. KKR's balance sheet remains strong, with significant capital available to support its growth strategies and fund commitments.
02—Key points
Key Highlights
- Total Assets under management (AUM) reached $251.7 billion by December 31, 2020, an increase of $33.3 billion from the prior year, driven by new capital raised and favorable market conditions.
- The company's Net Income Attributable to KKR & Co. Inc. Common Stockholders was $1.95 billion for the year ended December 31, 2020.
- KKR's Private Markets business line saw its AUM increase to $148.7 billion, driven by new capital raised in various funds and an increase in the value of its portfolio investments.
- The Public Markets business line's AUM grew to $103.0 billion, supported by new capital raised in alternative credit and leveraged credit strategies, as well as hedge fund partnerships.
- The company made significant progress on its acquisition of Global Atlantic Financial Group, a major player in the insurance sector, which closed in early 2021, expanding KKR's platform and diversification.
- The Capital Markets business line experienced an increase in transaction fees due to higher volumes and transaction sizes in both equity and debt offerings.
- Book Value per Adjusted Share increased to $23.09 as of December 31, 2020, up from $19.24 in the prior year, reflecting the overall growth and performance of the firm's investments and operations.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2020filed February 19, 2021Financial Statements
FY2020 against FY2019
| Line item | FY2020FY2019 | Change |
|---|---|---|
| Revenue | $4.23B$4.22B | +0.2% |
| Interest Expense | $969.87M$1.04B | −7.1% |
| Net Income | $2.00B$2.01B | −0.1% |
05—Questions
Frequently Asked Questions
What was KKR's total Assets Under Management (AUM) at the end of 2020?
As of December 31, 2020, KKR's total Assets Under Management (AUM) was $251.7 billion, representing an increase of $33.3 billion from the previous year.
What is the significance of the Global Atlantic acquisition?
The acquisition of Global Atlantic, a U.S. annuity and life insurance company, significantly expands KKR's platform into the insurance sector, diversifying its business lines and providing access to a new stream of capital and earnings. This strategic move is expected to enhance KKR's overall scale and financial profile.
How did KKR's Private Markets and Public Markets businesses perform in 2020?
KKR's Private Markets AUM grew to $148.7 billion, driven by new capital raised and investment appreciation. The Public Markets AUM also saw growth, reaching $103.0 billion, supported by strong fundraising in alternative and leveraged credit strategies, as well as hedge fund partnerships.
What was KKR's Net Income Attributable to KKR & Co. Inc. Common Stockholders for 2020?
For the year ended December 31, 2020, KKR reported a Net Income Attributable to KKR & Co. Inc. Common Stockholders of $1.95 billion.
06—Continue