Summary
KKR & Co. Inc. (KKR) filed an 8-K on July 9, 2018, to disclose updated financial information ahead of its Investor Day event. The company provided preliminary estimates for its second quarter of 2018, highlighting expected strong performance in carried interest and investment income, alongside an increased estimate for realized losses to be excluded from after-tax distributable earnings, primarily due to energy and credit investments. Key takeaways for investors include anticipated gross realized carried interest of approximately $350 million and realized investment income (excluding interest expense) of approximately $150 million for Q2 2018. Additionally, KKR updated its estimate for excluded realized losses to about $725 million. Transaction fees from its capital markets business are also expected to exceed $100 million for the quarter. These updates offer a glimpse into KKR's financial performance and specific business segment contributions during the period.
Key Highlights
- 1KKR is providing updated Q2 2018 financial estimates ahead of its July 9, 2018 Investor Day.
- 2Estimated gross realized carried interest for Q2 2018 is approximately $350 million.
- 3Estimated realized investment income (excluding interest expense) for Q2 2018 is approximately $150 million.
- 4The estimate for realized losses to be excluded from after-tax distributable earnings in Q2 2018 has increased to approximately $725 million.
- 5The increase in excluded realized losses is primarily attributed to energy and credit investments.
- 6Transaction fees from KKR's capital markets business are expected to be slightly above $100 million for Q2 2018.
- 7The information was disseminated via a presentation posted on KKR's website.