01—Abstract
Summary
Summary of the 10-Q filed August 9, 2024. Cited figures are marked; the original filing is the authoritative source.
KKR & Co. Inc. (KKR) reported strong financial results for the second quarter and first half of 2024, driven by robust growth across its Asset Management and Insurance segments.
Total revenues increased significantly year-over-year, reflecting higher management and transaction fees, and increased net investment income from Global Atlantic. The company's Adjusted Net Income and Total Segment Earnings demonstrated substantial year-over-year growth, indicating effective operational performance. The Strategic Holdings segment, newly reported this quarter, contributed positively with dividend income.
KKR's AUM and FPAUM saw healthy increases, reflecting successful capital raising and deployment across its various strategies. Despite some macroeconomic headwinds, KKR's diversified business model and disciplined investment approach continue to drive solid financial performance, positioning the company favorably for future growth.
02—Key points
Key Highlights
- Total Revenues increased to $4.17 billion for Q2 2024 and $13.83 billion for the first half of 2024, up significantly from the prior year periods, driven by strong performance in both Asset Management and Insurance segments.
- Asset Management Segment Earnings grew to $996 million for Q2 2024 and $1.86 billion for the first half of 2024, demonstrating solid growth in fee-related earnings and realized performance income.
- Insurance Operating Earnings increased to $253.2 million for Q2 2024 and $526.1 million for the first half of 2024, primarily driven by higher net investment income and the full consolidation of Global Atlantic following the January 2024 acquisition.
- Strategic Holdings segment reported $40.9 million in Operating Earnings for Q2 2024 and $61.6 million for the first half of 2024, reflecting dividend income from its core private equity investments.
- Assets Under Management (AUM) grew to $601.3 billion as of June 30, 2024, up from $577.6 billion at the end of Q1 2024, showcasing continued fundraising success.
- KKR maintained a strong liquidity position with $7.83 billion in Cash and Cash Equivalents for Asset Management and Strategic Holdings as of June 30, 2024.
- The company declared a quarterly dividend of $0.175 per share, payable in August 2024, reflecting its commitment to returning capital to shareholders.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2024filed August 9, 2024Financial Statements
Q2 FY2024 against Q2 FY2023
| Line item | Q2 FY2024Q2 FY2023 | Change |
|---|---|---|
| Revenue | $4.17B$3.63B | +15.0% |
| Net Income | $667.93M$861.71M | −22.5% |
05—Questions
Frequently Asked Questions
How did KKR's Asset Management segment perform in Q2 2024?
KKR's Asset Management segment reported robust performance in Q2 2024, with Segment Earnings of $996 million, a significant increase from $755.4 million in the prior year period. This growth was driven by higher management fees across all business lines (Private Equity, Real Assets, and Credit & Liquid Strategies), increased transaction fees in the Capital Markets business, and a lower fee-related compensation ratio.
What was the key driver for the increase in Insurance segment earnings?
The Insurance segment's operating earnings increased significantly year-over-year, reaching $253.2 million in Q2 2024 and $526.1 million in the first half of 2024. This was primarily due to higher net investment income driven by increased average assets under management and improved portfolio yields, along with the full consolidation of Global Atlantic following KKR's acquisition of the remaining minority interests in January 2024.
How is the new Strategic Holdings segment performing?
The newly reported Strategic Holdings segment, reflecting KKR's participation in its core private equity strategy, generated $40.9 million in Segment Earnings for Q2 2024 and $61.6 million for the first half of 2024. This performance was primarily driven by dividend income from its underlying portfolio companies.
What is KKR's current liquidity position?
As of June 30, 2024, KKR maintained a strong liquidity position with $7.83 billion in Cash and Cash Equivalents for its Asset Management and Strategic Holdings segments. This liquidity provides flexibility for ongoing operations, new investments, and strategic initiatives.
06—Continue