Early Access

10-QPeriod: Q2 FY2014

KKR & Co. Inc. Quarterly Report for Q2 Ended Jun 30, 2014

Filed August 7, 2014For Securities:KKRKKRTKKR-PDKKRS

Summary

KKR & Co. Inc. (KKR) reported robust financial performance for the quarter and six months ended June 30, 2014. The firm saw a significant increase in total revenues, largely driven by strong investment income and growth across its various segments, particularly Private Markets and Public Markets. The acquisitions of KKR Financial Holdings LLC (KFN) and Avoca Capital were completed, integrating their operations and contributing to fee and investment income. KKR demonstrated strong operational execution, with a substantial increase in net income attributable to KKR & Co. L.P. common unitholders, reflecting improved profitability and strategic growth initiatives. The company's assets under management (AUM) and fee-paying AUM (FPAUM) also saw increases, indicating continued client trust and capital inflows.

Financial Statements
Beta
Interest Expense$66.00M
Net Income$178.22M

Key Highlights

  • 1Total revenues increased significantly due to strong investment income and growth in management and transaction fees.
  • 2Net income attributable to KKR & Co. L.P. common unitholders saw a substantial increase, indicating improved profitability.
  • 3The company completed the acquisitions of KKR Financial Holdings LLC (KFN) and Avoca Capital, integrating their operations and expanding KKR's platform.
  • 4Assets Under Management (AUM) and Fee Paying Assets Under Management (FPAUM) grew, reflecting successful capital raising and client engagement.
  • 5Private Markets segment delivered strong performance, with significant realized and unrealized carried interest, driving overall segment revenue.
  • 6Public Markets segment also showed growth, supported by increased management fees and investment income from credit and hedge fund strategies.
  • 7KKR maintained healthy liquidity, with substantial cash and short-term investments, supporting ongoing operations and strategic growth opportunities.

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