KKR has reported a big jump in second-quarter earnings and hauled in a record amount of new cash from investors, as the value of its private-equity portfolio climbed.
The private-equity firm said net income was $1.28bn, or $2.05 a share, for the quarter ended June 30, compared with $698.6m, or $1.24 a share, a year earlier.
The value of KKR’s flagship private-equity portfolio climbed by 13% during the quarter, topping the roughly 8% gain for the S&P 500.
Distributable earnings, or cash that can be returned to shareholders, came in at a record $925.6m, or $1.05 a share, on an after-tax basis. That compares with $365.6m, or 43 cents a share, in the same period a year earlier.
KKR also posted record fee-related earnings of $470.1m, or 53 cents a share, up from $279.7m, or 33 cents a share, in the year-ago period.
Including dividends, shares of KKR have climbed more than 61% since the beginning of the year, according to FactSet. The firm and its peers have been big beneficiaries of the market recovery following the coronavirus-related downturn. KKR also closed a transformative deal in February to buy a majority stake of insurance company Global Atlantic Financial Group, adding about $90bn to its assets under management.
KKR chief financial officer Robert Lewin told The Wall Street Journal there are five metrics the firm is constantly tracking: deployment of capital, investment performance, monetisation of investments, fundraising and its ability to capitalise on attributes like its big balance sheet and sizeable capital-markets business.
“We really feel like we’re operating at as high a level across each one of those measures as we ever have,” Lewin said.
The firm has also been barreling forward from an organic-growth standpoint. KKR raised a record $59bn of new capital in the second quarter, driven by initial closes on its North American private-equity fund, infrastructure fund and long-term private-equity fund. To put the quarter’s haul in perspective, the firm raised $44bn in all of 2020, setting what was at the time a full-year record.
Assets under management were $428.95bn as of the end of the second quarter, nearly double where they stood at the end of the same period a year ago.
In June, KKR and Clayton Dubilier & Rice agreed to take software company Cloudera private in a roughly $5.3bn deal. And in May KKR announced a deal to invest in specialty-films business Charter Next Generation at a valuation of more than $4bn, including debt.
KKR in April signed a deal to sell Bountiful, the maker of Nature’s Bounty vitamins, to Nestlé SA, for $5.75bn.
Write to Miriam Gottfried at [email protected]
This article was published by Dow Jones Newswires