10-QPeriod: Q2 FY2011

KKR & Co. Inc. Quarterly Report for Q2 Ended Jun 30, 2011

Filed August 5, 2011For Securities:KKRKKRTKKR-PDKKRS

Summary

KKR & Co. Inc. reported its financial results for the second quarter of 2011, showing robust growth and strong performance across its segments. Total revenues for the quarter increased significantly, driven by strong investment income and growing management and transaction fees. The company saw substantial increases in Assets Under Management (AUM) and Fee Paying Assets Under Management (FPAUM), indicating successful capital raising and investment deployment. Net income attributable to KKR & Co. L.P. showed a healthy increase compared to the prior year period, reflecting the firm's effective investment strategies and operational efficiency. The firm's Private Markets segment experienced strong growth, with solid gains in net carried interest and increased AUM. The Public Markets segment also demonstrated growth, driven by higher management and incentive fees. The Capital Markets and Principal Activities segment saw increased transaction fees, reflecting a higher volume of capital markets activity. Overall, KKR's diversified business model and global platform continue to contribute to positive financial outcomes.

Financial Highlights

23 data points
Beta

Net Income

$39.62M

Total Assets

$40.59B

Cash & Equivalents

$933.48M

Free Cash Flow

$618.66M

Financial Statements
Beta
Interest Expense$17.37M
Net Income$39.62M

Key Highlights

  • 1Total Revenues increased significantly to $117.6 million for the three months ended June 30, 2011, up from $87.1 million in the prior year period.
  • 2Net Income Attributable to KKR & Co. L.P. increased to $39.6 million, or $0.18 per diluted unit, from $29.9 million, or $0.15 per diluted unit, in the same period last year.
  • 3Assets Under Management (AUM) grew to $61.9 billion as of June 30, 2011, an increase from $46.2 billion at the end of 2010, showcasing significant growth in managed capital.
  • 4The Private Markets segment saw strong performance with Net Carried Interest of $89.9 million for the quarter, contributing significantly to overall profitability.
  • 5Fee Related Earnings (FRE) across all reportable segments increased to $76.1 million for the quarter.
  • 6The company reported strong investment income, with Net Gains (Losses) from Investment Activities of $1,319.1 million for the quarter.
  • 7Despite a slight decrease in dividend income compared to a strong prior year, overall interest income increased, reflecting growth in fixed income instruments.

Frequently Asked Questions

KKR reported a strong financial performance for the second quarter of 2011. Total revenues increased significantly to $117.6 million. Net income attributable to KKR & Co. L.P. rose to $39.6 million, or $0.18 per diluted unit, compared to $29.9 million, or $0.15 per diluted unit, in the second quarter of 2010. The firm also saw a substantial increase in Assets Under Management (AUM) to $61.9 billion.

All segments showed positive performance. The Private Markets segment generated strong Net Carried Interest and saw growth in AUM. The Public Markets segment benefited from increased management and incentive fees, while the Capital Markets and Principal Activities segment experienced higher transaction fees due to increased deal volume. Fee Related Earnings (FRE) across all segments increased to $76.1 million.

The increase in AUM to $61.9 billion as of June 30, 2011, up from $46.2 billion at the end of 2010, signifies KKR's success in raising capital and attracting investments across its strategies. This growth in managed capital is a key driver of future fee income and potential investment gains for the firm.

The results for the second quarter of 2011 indicate a positive trajectory for KKR, characterized by revenue growth, increased profitability, and a substantial expansion of its asset base. The strong performance across its diversified segments suggests resilience and effective execution of its investment strategies, positioning the firm well for future growth.