What was KKR's net income attributable to KKR & Co. L.P. for the quarter?

Net income attributable to KKR & Co. L.P. for the three months ended June 30, 2010 was $29.9 million, compared to $365.8 million for the same period in the prior year. The decrease was primarily due to higher expenses, notably non-cash equity-based charges.

How did KKR's Assets Under Management (AUM) change during the quarter?

KKR's AUM increased slightly to $54.4 billion as of June 30, 2010, from $54.7 billion at March 31, 2010. The change was influenced by distributions, new capital raised, foreign exchange adjustments, and changes in investment values.

What were the main drivers of the increase in total fees?

Total fees increased to $87.1 million from $51.5 million in the prior year, primarily driven by a significant rise in transaction fees due to an increase in transaction-fee generating investments and the receipt of a non-recurring break-up fee. Fees from capital markets services also increased due to higher transaction volume.

What caused the substantial increase in expenses?

Total expenses increased significantly to $430.6 million from $97.7 million in the prior year's quarter. The primary drivers were non-cash equity-based charges related to equity grants to principals, employees, and operating consultants, as well as allocations to the carry pool.

KKR & Co. Inc. 10-Q Quarterly Report Q2 FY2010

Summary

KKR & Co. Inc. reported its financial results for the quarter ended June 30, 2010. The company demonstrated robust investment performance, with total investment income increasing significantly year-over-year, driven by both realized and unrealized gains on its portfolio. Total revenues also saw a substantial increase, reflecting higher fee income from a greater number of transactions and capital markets activities, alongside an incentive fee earned from KKR Financial Holdings LLC. Despite increased operating expenses, largely due to non-cash equity-based charges and carry pool allocations, the company maintained strong profitability. Assets under management saw a modest increase, indicating continued growth in the firm's investment platform. The company's recent listing on the NYSE further solidifies its market position.

Financial Highlights

18 data points

Beta

Net Income

$29.91M

Cash & Equivalents

$491.86M

Free Cash Flow

$48.60M

Financial Statements

Beta

Interest Expense	$10.13M
Net Income	$29.91M

Key Highlights

1Total Investment Income surged to $1.22 billion for the quarter, a significant increase from $2.31 billion in the prior year's quarter, driven by strong net gains from investment activities.
2Total Fees increased to $87.1 million, up from $51.5 million in the prior year, driven by higher transaction and capital markets fees.
3Total Expenses rose to $430.6 million from $97.7 million in the prior year, primarily due to non-cash equity-based charges and carry pool allocations.
4Net Income Attributable to KKR & Co. L.P. was $29.9 million for the quarter, a decrease from $365.8 million in the prior year's quarter, impacted by increased expenses.
5Assets Under Management (AUM) stood at $54.4 billion as of June 30, 2010, a slight increase from $52.2 billion at the end of 2009.
6The company completed its listing on the New York Stock Exchange on July 15, 2010.

KKR & Co. Inc. Quarterly Report for Q2 Ended Jun 30, 2010

Summary

Financial Highlights

Key Highlights

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