KKR & Co. Inc. Quarterly Report for Q1 Ended Mar 31, 2025

Summary

KKR & Co. Inc. reported a net loss of $185.9 million, or $(0.22) per diluted share, for the first quarter of 2025. This compares to a net income of $682.2 million, or $0.74 per diluted share, in the same period last year. The shift to a net loss was primarily driven by significant net investment-related losses within the Insurance segment, which amounted to $(1.4) billion for the quarter, a substantial increase from $(241.5) million in the prior year's first quarter. These losses were largely attributed to negative realized and unrealized gains on fixed maturity securities and derivative instruments within the Insurance segment's investment portfolio. Despite the net loss, the Asset Management segment showed strong revenue growth, with total revenues increasing to $2.05 billion from $1.96 billion in the prior year, driven by higher management and transaction fees, particularly from the Capital Markets business. Fee Related Earnings also saw a notable increase, indicating robust performance in recurring fee-generating activities. Total Assets under Management ("AUM") grew to $664.3 billion, up from $637.6 billion at the end of 2024, highlighting continued growth in the firm's managed capital across its diverse business lines. The company also completed a significant issuance of Series D Mandatory Convertible Preferred Stock during the quarter, raising $2.5 billion.

Key Highlights

• 1KKR reported a net loss of $185.9 million for Q1 2025, a significant decline from a net income of $682.2 million in Q1 2024.
• 2The Insurance segment recorded substantial net investment-related losses of $(1.4) billion, primarily due to negative realized and unrealized gains on investments and derivatives.
• 3Asset Management segment revenues grew by 4.8% year-over-year to $2.05 billion, driven by higher management and transaction fees, especially in Capital Markets.
• 4Fee Related Earnings (FRE) increased by 20.6% to $822.6 million, demonstrating strong recurring revenue generation.
• 5Total Assets Under Management (AUM) increased by 4.2% to $664.3 billion as of March 31, 2025, indicating continued capital growth.
• 6KKR issued $2.5 billion of Series D Mandatory Convertible Preferred Stock in March 2025.
• 7The company is facing legal proceedings, including an ongoing matter in Kentucky and investigations by the DOJ related to HSR filings.

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