01—Abstract
Summary
Summary of the 8-K filed July 30, 2026. Cited figures are marked; the original filing is the authoritative source.
KKR reported record second-quarter 2026 results, with Fee Related Earnings (FRE), Total Operating Earnings (TOE) and Adjusted Net Income (ANI) per adjusted share all at record levels on both a quarterly and trailing twelve-month (LTM) basis.
Q2 FRE was $1.2 billiona ($1.32 per adjusted share), up 37% year over year, and LTM FRE reached $4.2 billion ($4.68 per adjusted share), up 19%. Q2 TOE was $1.5 billion ($1.68 per adjusted share), up 29%, and Q2 ANI was $1.5 billion ($1.63 per adjusted share), up 40%. GAAP net income attributable to KKR common stockholders was $660 million ($0.70 diluted EPS) for the quarter, compared with $472 million ($0.50) a year earlier, and $1.0 billion year to date.
Growth was driven by the asset management franchise. Assets under management (AUM) reached $796 billionb, up 16% year over year, and fee-paying AUM (FPAUM) reached $638 billion, up 15%. KKR raised $34 billion of new capital in the quarter and $133 billion over the LTM period, and invested $24 billion in the quarter.
Management fees rose to $1.25 billionc from $996 million. The company also closed its acquisition of Arctos Partners on May 4, 2026, adding $20 billion of AUM. Realized performance income was strong, with the firm describing it as its strongest monetization quarter ever.
Investors should note a classification change. Beginning in 2Q'26, KKR reports realized performance fees from its K-Series private equity vehicles within Fee Related Performance Revenues, which feed FRE. Approximately $160 milliond of such revenue was recorded there in Q2, versus about $80 million in realized performance income a year earlier.
Prior periods were not recast. KKR states the change had no effect on total segment earnings, GAAP net income or ANI, but FRE comparisons across periods are affected. The filing also notes that the company is furnishing, not filing, the earnings release, and that the 8-K itself contains no new forward guidance.
02—Key points
Key Highlights
- Record per-share results: FRE of $1.32, TOE of $1.68 and ANI of $1.63 per adjusted share in Q2 2026, with LTM FRE at $4.68, TOE at $6.13 and ANI at $5.55 per adjusted share.
- Strong growth: Q2 FRE up 37%, TOE up 29% and ANI up 40% year over year. LTM FRE up 19%, TOE up 19% and ANI up 13%.
- Fundraising and scale: AUM of $796 billion (up 16%), FPAUM of $638 billion (up 15%), and $34 billion of new capital raised in Q2 ($133 billion LTM). Perpetual capital reached $334 billion, about 42% of AUM.
- Monetization and carry: Gross realized performance income was $848 million in Q2 (versus $419 million a year earlier). Gross unrealized carried interest totals $10.2 billion and embedded gains in asset management total $2.6 billion.
- Arctos acquisition closed May 4, 2026, adding $20 billion of AUM and reported within the Private Equity business line.
- GAAP earnings improved: Q2 net income to KKR common stockholders was $660 million ($0.70 diluted EPS), versus $472 million ($0.50) a year earlier. Insurance Operating Earnings were $288 million, and Global Atlantic AUM reached $220 billion.
- Capital return: Quarterly dividend of $0.195 per common share (payable August 25, 2026) and a Series D mandatory convertible preferred dividend of $0.78125 per share (payable September 1, 2026). About $87 million remains under the repurchase authorization.
03—Questions
Frequently Asked Questions
How much of the FRE growth is due to the K-Series performance fee reclassification?
KKR moved realized performance fees from its K-Series private equity vehicles into Fee Related Performance Revenues beginning in 2Q'26. About $160 million of such revenue was recorded in FRE in Q2 2026, compared with roughly $80 million recorded in realized performance income in Q2 2025. KKR did not recast prior periods, and it states the change does not affect total segment earnings, GAAP net income or ANI. Investors comparing FRE across periods should adjust for this item.
What did KKR's Q2 2026 results mean for shareholders on a GAAP basis?
Net income attributable to KKR common stockholders was $660 million, or $0.70 per diluted share, in Q2 2026, compared with $472 million, or $0.50 per diluted share, in Q2 2025. Year-to-date net income was $1.0 billion, or $1.08 per diluted share. GAAP results are affected by investment gains and losses, carried interest and consolidation effects, so they can differ significantly from the non-GAAP measures.
What is the Arctos acquisition and how does it affect KKR's reporting?
KKR closed its acquisition of Arctos Partners on May 4, 2026. Arctos is an institutional investor in professional sports franchise stakes and a provider of asset management solutions for sponsors. It had $20 billion of AUM as of June 30, 2026, and is reported within the Private Equity business line. Its AUM of $20 billion is included in KKR's total AUM and its FPAUM is included in the 2Q'26 rollforward.
What capital return and balance sheet information did KKR disclose?
KKR declared a quarterly common dividend of $0.195 per share, payable August 25, 2026, to holders of record on August 10, 2026. It declared a $0.78125 dividend on its Series D Mandatory Convertible Preferred Stock, payable September 1, 2026. Net cash and investments in the Asset Management segment were $4.6 billion, with $9.3 billion of outstanding debt at par. KKR is rated 'A' by S&P and Fitch, and about $87 million remains under its share repurchase plan.
04—Continue