KKR’s AUM hits $600bn in Q2 as fee-related earnings reach record high
KKR raised $32bn (£24.9bn) in the second quarter – the second highest quarter in the firm’s history – bringing assets under management (AUM) to over $600bn.
The private markets giant’s second-quarter results showed that adjusted net income rose 49 per cent year-on-year to $972m, while fee-related earnings rose by 25 per cent year-on-year to a record $755m.
The group’s total AUM amounted to $601bn, up 16 per cent year-on-year.
Within credit and liquid strategies, AUM increased two per cent quarter-on-quarter, and 17 per cent year-on-year, to $265bn.
$12bn was raised across those strategies during the quarter and the same value was invested, with deployment most active in high grade asset-based finance and direct lending.
New capital raised was driven by inflows at Global Atlantic, a life insurer it acquired, as well as opportunistic asset-based finance, evergreen direct lending in the US and Europe, and CLO formation.
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KKR’s credit and liquid AUM is comprised of $127bn of leveraged credit, $61bn of asset-based finance, $39bn of direct lending, $9bn of strategic investments and $28bn of liquid strategies.
Both the leveraged credit and alternative credit portfolios returned 12 per cent in the last 12 months.
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“This was a strong quarter for KKR,” said co-chief executive officers Joseph Bae and Scott Nuttall. “We reported record fee related earnings and are experiencing acceleration across our key operating metrics and financial results.
“We raised $32bn of new capital in the quarter, bringing assets under management to over $600bn. Additionally, we deployed $23bn in the quarter, up from $10bn one year ago, and have a healthy deal pipeline in the second half of 2024 across our businesses and geographies. Momentum across the firm remains high, and we remain confident in our team, our model and our growth prospects.”
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