REUTERS: KKR & Co Inc said on Monday its after-tax distributable earnings rose 15per cent year-on-year in the fourth quarter, driven by growth in management and transaction fees from its capital markets business.
KKR's after-tax distributable earnings (DE) – the cash used to pay dividends to shareholders – rose to US$431 million from US$375.1 million a year earlier. This translated to DE per share of 49 cents, surpassing the average analyst estimate of 41 cents, according to data from Refinitiv.
Last month, KKR rival Blackstone Group Inc reported a 60per cent rise in fourth-quarter distributable earnings, while Carlyle Group Inc said last week its earnings climbed 38per cent year-on-year. Apollo Global Management Inc posted a smaller-than-expected drop of 30per cent in fourth-quarter distributable earnings.
KKR said its private equity portfolio rose 32per cent during the quarter, while real estate and infrastructure funds gained 8per cent and 3per cent, respectively. Its leveraged credit funds rose by 7per cent.
In the fourth quarter, KKR said net income reached US$1.47 billion under generally accepted accounting principles (GAAP), driven by a sharp rise in investment gains.
Total assets under management rose to US$252 billion from US$233.8 billion as of the end of September. KKR expects its assets under management to reach US$342 billion following the completion of its US$4.4 billion acquisition of annuities and life insurance provider Global Atlantic Financial Group Ltd.
KKR, which ended the quarter with US$67 billion of unspent capital, declared a dividend of US$0.135 per share.
(Reporting by Chibuike Oguh in New York; Editing by Matthew Lewis)