NEW YORK: Private equity firm KKR & Co Inc said on Friday its after-tax distributable earnings rose 6per cent year-on-year in the third quarter, driven by growth in management fees and transaction fees from its capital markets business.
After-tax distributable earnings (DE) – the cash available for paying dividends to shareholders – rose to US$410.4 million, up from US$388.8 million a year earlier. This translated to DE per share of 48 cents, which exceeded the average Wall Street analyst forecast of 40 cents, according to data from Refinitiv.
KKR said the value of its private equity portfolio appreciated by 16per cent during the quarter, while real estate and infrastructure funds rose 6per cent and 10per cent respectively. Its leveraged credit funds rose by 5per cent.
On Wednesday, rival Blackstone Group said its third-quarter distributable earnings rose 9per cent, while its private equity funds appreciated by 12.2per cent.
Carlyle Group Inc reported a smaller-than-expected 6per cent drop in its third-quarter distributable earnings on Thursday, with its overall fund portfolio rising 5per cent. Apollo Global Management said its private equity portfolio rose 8per cent, although distributable earnings fell 8per cent during the quarter.
KKR said its net income under generally accepted accounting principles rose to US$1.1 billion, from US$241.2 million a year earlier, driven by income from capital allocated out of its balance sheet. The strength in its capital markets business offset a decline in profits from asset sales.
Total asset management was US$233.8 billion at the end of September, up from US$221.8 billion from three months earlier. KKR closed the quarter with US$67.1 billion in unspent capital and declared its regular dividend of US$0.135 per share.
(Reporting by Chibuike Oguh in New York; Editing by Lincoln Feast.)