KKR (KKR) investor relations material

Executive summary

• Fee-related earnings per share rose 23% year-over-year to $1.13, with total operating earnings per share up 18% and adjusted net income per share up 20%, reflecting strong platform durability and record capital deployment amid market volatility.

• Celebrated 50th anniversary, highlighting a half-century of navigating cycles and delivering for clients.

• Management fees reached $1.2 billion, up 30% year-over-year, with strong growth across private equity, real assets, and credit, each contributing about a third of total fees.

• Monetization activity was robust, with $880 million realized, up over 50% from Q1 2025, and embedded gains at $18.3 billion, up 11% year-over-year.

• Dividend increased to $0.78 per share annualized, the seventh consecutive annual increase since the corporate structure change.

Financial highlights

• GAAP Net Income attributable to common stockholders was $0.4 billion for the quarter, up from a loss of $186 million in the prior year quarter.

• Fee Related Earnings (FRE) reached $1.0 billion for the quarter (up 24% year-over-year) and $3.9 billion for the LTM (up 14%).

• Total Operating Earnings (TOE) were $1.3 billion for the quarter (up 19% year-over-year) and $5.2 billion for the LTM (up 15%).

• Adjusted Net Income (ANI) was $1.2 billion for the quarter (up 21% year-over-year) and $4.6 billion for the LTM (up 5%).

• Assets Under Management (AUM) reached $758 billion, up 14% year-over-year; Fee Paying AUM (FPAUM) was $615 billion, up 17%.

Outlook and guidance

• Management expressed high confidence in the platform's strength and long-term positioning, expecting Strategic Holdings Operating Earnings to exceed $350 million in 2026, $700 million by 2028, and $1.1 billion by 2030.

• 2026 adjusted net income (ANI) target of $7+ per share may be difficult to reach due to a more challenging operating environment, but delayed monetizations are expected to shift to 2027 and beyond.

• Embedded gains remain at or near record levels, supporting future earnings growth.