Private-equity fund KKR & Co Inc said on Tuesday that growth in capital markets and public market holdings boosted profits after tax in the first quarter by 63% year-on-year.
After-tax Distributable Profit (DE), the cash used to pay dividends to shareholders, increased from $ 466.3 million in the previous year to $ 660.2 million. According to financial data provider Refinitiv, this converted DE per share to 75 cents, above the Wall Street analyst’s average estimate of 63 cents.
As the global economy recovers from the collapse of the COVID-19 pandemic, KKR and its associates have continued to sell their assets at the highest prices.
The majority of KKR’s sales came from the sale of shares in portfolio companies such as sports equipment retailer Academy Sports and Outdoors Inc, pharmaceutical company BridgeBio Pharma Inc, and sports betting company FanDuel.
According to KKR, transaction fees for capital markets businesses more than doubled to $ 112.2 million, up from $ 60.2 million in the previous year. Total realized investment income, which consists of income from the sale of assets, increased by 24% to reach $ 632.5 million during the quarter. Net income under generally accepted accounting principles (GAAP) increased from a loss in the previous year to $ 1.64 billion.
Blackstone Group Inc, the world’s largest private-equity fund, reported last month that its first-quarter asset sales more than doubled its distributable revenue. Carlyle Group Inc also cashed out many of its shares, resulting in a 23% increase in after-tax distributable profit.read more
According to KKR, private equity, opportunistic real estate and infrastructure portfolios grew 19%, 6% and 11%, respectively, while leveraged credit and alternative credit funds grew 2% and 7%, respectively.
Total assets under management increased from $ 252 billion in the previous quarter to $ 376 billion due to strong funding and the completion of KKR’s acquisition of global Atlantic Financial Group Ltd, an annuity and life insurance provider.
KKR had $ 69 billion in unused capital as of the end of March and declared a regular quarterly dividend of $ 0.145 per share.