KKR (KKR) Q2 2024 earnings summary

Executive summary

• Achieved record fee-related earnings (FRE) of $0.84 per share, up 25% year-over-year, and adjusted net income of $1.09 per share, up 50% year-over-year.

• KKR reported strong growth in AUM, FPAUM, and segment earnings for Q2 2024, driven by robust fundraising, investment performance, and the full consolidation of Global Atlantic.

• $32 billion of new capital raised in the quarter, bringing AUM to over $600 billion.

• Net income attributable to common stockholders was $667.9 million for Q2 2024, down from $844.5 million in Q2 2023, primarily due to higher investment-related losses at Global Atlantic.

• Entered the S&P 500 index in June, marking a significant milestone.

Financial highlights

• Assets Under Management (AUM) reached $601.3 billion as of June 30, 2024, up from $552.8 billion at year-end 2023.

• Fee Paying AUM (FPAUM) grew to $487.3 billion, up from $446.4 billion at year-end 2023.

• Adjusted Net Income for Q2 2024 was $972 million, up from $652.6 million in Q2 2023.

• Total Operating Earnings for Q2 2024 were $1.17 per share, with over 80% from recurring revenue streams.

• Quarterly dividend declared at $0.175 per share.

Outlook and guidance

• 2026 guidance targets: $300B+ new capital raised (2024-2026), $4.50+ per share FRE, $7+ per share total operating earnings, $7–$8 adjusted net income per share.

• Guidance implies ~20% annual growth in key metrics.

• Management expects continued growth in AUM and FPAUM, supported by strong fundraising and investment performance.

• Capital markets fees in Q3 expected to be among the highest in history, with a strong pipeline for the second half of 2024.

• Strategic Holdings Operating Earnings expected to be modest in 2024, with significant growth projected by 2026 and beyond.