NEW YORK (Oct 24): Alternative fund manager KKR & Co reported a 58% jump in adjusted net income for the third quarter of 2024, driven by record fee-related income, as well as earnings from its insurance business.

The New York-based firm said on Thursday adjusted net income (ANI) rose to US$1.2 billion (RM5.2 billion) in the July-September quarter, or US$1.38 per adjusted share. That was ahead of the average analyst estimate of US$1.21, according to LSEG data.

KKR achieved its highest-ever fee-related earnings of US$1 billion, up 79% from the previous year. This growth was driven by fees generated from managing US$624 billion in total assets, an 18% increase year-over-year, along with transaction fees from its capital markets business.

For the quarter, KKR reported a record total operating earnings of US$1.3 billion, a 71% year-over-year increase. This metric includes fee-related earnings from its asset management business, returns from long-term private equity holdings, and profits from its Global Atlantic insurance division.

The firm’s fee-paying assets under management (AUM) rose by 19% to US$506 billion.

KKR raised US$24 billion in new capital during the quarter, up from US$14 billion same quarter last year.

Its private equity portfolio appreciated by 5% in the quarter, infrastructure funds gained 6% and opportunistic real estate funds rose 2%.

It also deployed US$24 billion in investments, up from US$9 billion one year ago, and declared a quarterly dividend of 17.5 cents.

KKR announced a series of deals in the last few months, including the acquisition of Varsity Brands, a maker of sports uniforms and school yearbooks, for about US$4.75 billion, with the deal closing in August.

It reached a deal to take education software platform Instructure Holdings private for US$4.8 billion. KKR also offloaded half of its position in Kokusai Electric.

Uploaded by Magessan Varatharaja