Greg Sockenfowler

Greg Sockenfowler asked if the Q3 total transaction fees ($328 million) and capital markets segment fees ($278 million) represent a solid baseline for growth into 2026, or if there were any lumpy items impacting these figures.

Answer

CFO Rob Lewin expressed satisfaction with the capital markets business trajectory, noting its strong performance even when markets were largely shut in 2022-2023 (generating ~$600 million annually) and its rebound in 2024 (close to $1 billion). He indicated that year-to-date performance and year-end forecasts provide a good baseline for future growth, affirming that capital markets remain a growth business for KKR, expected to scale with the firm, differentiate through third-party capital markets, and benefit from a mid-market PE deployment comeback.

Greg Sockenfowler asked if the Q3 results for the capital markets business, with $328 million in total transaction fees and $278 million for the capital markets segment, represent a solid baseline for growth into 2026, assuming elevated M&A activity.

Answer

Rob Lewin, Chief Financial Officer, stated that while specific guidance is difficult, KKR is pleased with the business's trajectory. He highlighted its strong performance in 2022 and 2023 when markets were largely shut, generating around $600 million in revenue each year, and nearly $1 billion in 2024. Lewin believes the year-to-date and year-end forecast provide a good baseline for future growth, affirming that capital markets remain a growth business for KKR, expected to scale with the firm and benefit from a differentiated approach to third-party capital markets and a potential return of mid-market private equity deployment.