Key facts
- KKR's fee income from asset management rose 25.5% to $1.25 billion in the second quarter.
- Adjusted net income reached $1.63 per share.
- Capital inflows totaled $34 billion, led by real assets.
- Net realized performance income nearly doubled to $211.9 million.
- KKR agreed to acquire EDF's North American renewable business for $4.2 billion.
KKR reported a significant increase in profits for the second quarter, driven by strong performance in its asset management and investment divestment businesses. The firm's fee income from managing client money jumped 25.5% to $1.25 billion, contributing to an adjusted net income of $1.63 per share.
Co-CEOs Joseph Bae and Scott Nuttall stated that the quarter was the firm's strongest ever for converting investments into cash, expressing confidence in their long-term strategy. KKR attracted $34 billion in new capital, primarily through its real assets division, which includes infrastructure strategies. Private equity saw inflows of $9.56 billion, narrowly trailing credit, which remains the largest segment of KKR's $796 billion in assets under management.
During the quarter, KKR finalized several transactions, including the sale of Japanese chip manufacturer Kokusai Electric and its stake in software firm OneStream. Net realized performance income, also known as carried interest, nearly doubled year-over-year to $211.9 million. Gross returns for private equity and credit funds improved, with the traditional private equity portfolio yielding 4% and leveraged and private credit strategies returning 2% and 1% respectively, recovering from negative returns in the prior quarter. KKR invested $24 billion in the quarter and $104 billion over the last twelve months. In June, the firm agreed to acquire French power company EDF's North American renewable energy business for $4.2 billion, aiming to leverage growth in data center demand and economic electrification.