How did the acquisition of Global Atlantic impact KKR's financial performance in Q1 2021?

The acquisition of Global Atlantic, completed on February 1, 2021, significantly contributed to KKR's financial performance in Q1 2021. It added $1.39 billion in revenues through the Insurance segment and bolstered total equity. Global Atlantic's operations represent a key driver of KKR's diversified revenue streams, enhancing its overall financial profile.

What were the main drivers of the significant increase in Asset Management revenues?

The increase in Asset Management revenues, particularly in Fees and Other, was driven by higher management fees, especially from Private Markets funds entering their investment periods and Public Markets strategies, as well as a substantial rise in transaction fees, particularly from the Capital Markets business line due to increased deal activity.

How did KKR's investment performance fare in Q1 2021, as reflected in Capital Allocation-Based Income?

KKR experienced a significant rebound in investment performance in Q1 2021. Capital Allocation-Based Income (Loss) turned positive, reaching $2.68 billion, a substantial improvement from a loss of $1.38 billion in Q1 2020. This turnaround was primarily due to net appreciation in the value of underlying investments across various funds, particularly in Private Equity and Real Assets, indicating a favorable market environment and strong execution.

What is the current status of KKR's liquidity and capital position?

KKR maintained a strong liquidity and capital position as of March 31, 2021. Total assets increased substantially to $216.45 billion, largely due to the Global Atlantic acquisition. The company held $10.98 billion in cash, cash equivalents, and restricted cash, providing ample resources to fund operations, investments, and strategic initiatives.

KKR & Co. Inc. 10-Q Quarterly Report Q1 FY2021

Summary

KKR & Co. Inc. reported a strong first quarter of 2021, demonstrating significant financial recovery and growth, largely driven by the inclusion of Global Atlantic's insurance operations and positive performance across its asset management segments. Total revenues surged to $4.56 billion, a substantial increase from a negative $1.00 billion in the prior year's quarter, primarily due to a robust rebound in capital allocation-based income and significant contributions from the insurance business. Net income attributable to KKR & Co. Inc. common stockholders swung from a loss of $1.29 billion in Q1 2020 to a profit of $1.64 billion in Q1 2021. The company's balance sheet also strengthened, with Total Equity increasing to $46.21 billion as of March 31, 2021, up from $40.80 billion at the end of 2020. This growth was supported by strong investment performance and capital raised, including the strategic acquisition of Global Atlantic, which significantly expanded KKR's insurance segment. The combined business now presents a more diversified revenue stream, with Asset Management revenues at $3.18 billion and Insurance revenues contributing $1.39 billion for the quarter.

Financial Highlights

30 data points

Beta

Revenue

$4.56B

Net Income

$1.67B

0.4% Net Margin

Total Assets

$216.45B

Cash & Equivalents

$10.98B

Free Cash Flow

-$73.17M

Financial Statements

Beta

Revenue	$4.56B
Interest Expense	$251.76M
Net Income	$1.67B

Key Highlights

1Total Revenues surged to $4.56 billion in Q1 2021, a significant improvement from a negative $1.00 billion in Q1 2020, driven by the Global Atlantic acquisition and strong asset management performance.
2Net Income Attributable to KKR & Co. Inc. Common Stockholders turned positive, reaching $1.64 billion in Q1 2021, a substantial turnaround from a net loss of $1.29 billion in Q1 2020.
3Total Equity increased to $46.21 billion as of March 31, 2021, up from $40.80 billion at December 31, 2020, reflecting strong earnings and capital management.
4The acquisition of Global Atlantic, completed in February 2021, significantly expanded KKR's Insurance segment, contributing $1.39 billion in revenues during the quarter.
5Asset Management segment operating earnings grew substantially to $817.2 million in Q1 2021, up from $523.2 million in Q1 2020, driven by higher management and transaction fees.
6Capital Allocation-Based Income (Loss) showed a dramatic improvement, swinging from a loss of $1.38 billion in Q1 2020 to income of $2.68 billion in Q1 2021, indicating strong investment performance.
7KKR's balance of cash and cash equivalents, including restricted cash, stood at $10.98 billion at the end of Q1 2021, providing ample liquidity.

KKR & Co. Inc. Quarterly Report for Q1 Ended Mar 31, 2021

Summary

Financial Highlights

Key Highlights

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