Sign in

KKR & Co. Inc. (KKR) Q4 2024 Earnings Summary

Executive Summary

  • Q4 delivered strong recurring earnings: FRE $843M ($0.94/adj share, +25% y/y), TOE $1.10B ($1.23/adj share, +19% y/y), and ANI $1.19B ($1.32/adj share, +33% y/y) amid continued fundraising and deployment momentum .
  • Capital Markets revenue was $270M in Q4 and crossed $1.0B for the first time on a full-year basis, a structural driver as deployment/exit activity normalizes .
  • AUM reached $638B (+15% y/y); FPAUM $512B (+15% y/y); organic capital raised was $27B in Q4 and $114B for 2024, with dry powder at $110B and perpetual capital at $268B (+20% y/y) .
  • Strategic Holdings outlook raised: projected operating earnings to $350M+ (2026), $700M+ (2028), $1.1B+ (2030); regular dividend to be lifted from $0.70 to $0.74 annualized beginning with Q1’25 results; Q4 dividend declared at $0.175/share .
  • Estimate context: Street consensus from S&P Global was unavailable at time of analysis due to data access limits; comparison to estimates not included (we default to S&P Global when available).

What Went Well and What Went Wrong

  • What Went Well
    • Strong recurring earnings: “Fee-related earnings per share came in at $0.94… adjusted net income $1.32 per share,” both the second-highest quarterly figures ever; FRE +24% y/y, ANI +32% y/y (management) .
    • Capital Markets scaled: $270M Q4 and $1.0B FY first time; mix broadened beyond PE into infrastructure and credit (CFO) .
    • Strategic Holdings acceleration: KKR increasing stakes in USI, 1-800 Contacts, Heartland Dental; raises Strategic Holdings OE guidance to $350M+ (2026), $700M+ (2028), $1.1B+ (2030) (management) .
  • What Went Wrong
    • Insurance OE steady but intentionally subdued near term: run-rate “plus or minus” Q4 level as GA shifts to longer-duration/private assets, dampening accounting ROE near term (CFO) .
    • Private Equity portfolio was flat in Q4 (0% QoQ) even as full-year +14%—reflecting factor dispersion and small-cap underperformance relative to large-cap indices (IR) .
    • FRE margin stepped down sequentially (71% in Q3 to 67% in Q4) amid higher distribution/placement expense tied to wealth buildout (CFO) .

Financial Results

Core earnings (segment metrics)

MetricQ4 2023Q3 2024Q4 2024
Fee Related Earnings ($USD Millions)$675.4 $1,000.7 $843.0
FRE per Adjusted Share ($)$0.76 $1.12 $0.94
Total Operating Earnings ($USD Millions)$921.2 $1,315.0 $1,100.8
TOE per Adjusted Share ($)$1.04 $1.47 $1.23
Adjusted Net Income ($USD Millions)$888.5 $1,235.5 $1,185.1
ANI per Adjusted Share ($)$1.00 $1.38 $1.32

GAAP

MetricQ4 2023Q3 2024Q4 2024
Total Revenues ($USD Millions)$4,429.8 $4,791.7 $3,258.4
Net Income – KKR Common ($USD Millions)$1,040.4 $654.6 $1,125.6
Diluted EPS ($)$1.14 $0.69 $1.18

Margins (quarterly)

MetricQ4 2023Q3 2024Q4 2024
FRE Margin (%)n/a71% 67%

Segment/business line detail (selected)

Asset Management – Management Fees ($USD Thousands)Q4 2023Q4 2024
Private Equity331,216 336,525
Real Assets216,917 276,647
Credit & Liquid Strategies236,448 292,946

KPIs and capital activity

KPIQ4 2023Q4 2024
AUM ($USD Billions)553 638
FPAUM ($USD Billions)446 512
Perpetual Capital ($USD Billions)224 268
Uncalled Commitments ($USD Billions)99 110
New Capital Raised – Quarter ($USD Billions)31.377 26.711
Capital Invested – Quarter ($USD Billions)15.609 22.639

Additional operating color:

  • Capital Markets transaction fees: $270M in Q4; $1.002B in FY’24 (first time crossing $1B); ~70% debt-focused in Q4 .
  • Balance sheet embedded unrealized gains: ~$3.0B at year end; gross unrealized performance income (carry) $7.9B .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Strategic Holdings Operating Earnings2026$300M+ $350M+ Raised
Strategic Holdings Operating Earnings2028$600M+ $700M+ Raised
Strategic Holdings Operating Earnings2030$1.0B+ $1.1B+ Raised
Regular Dividend (annualized)Starting with Q1’25 results$0.70 $0.74 Raised
Q4 DividendQ4 2024n/a$0.175 per share Declared
Insurance Operating EarningsNear-term quartersn/a“Plus or minus” Q4 level as mix shifts to longer-duration/private assets (CFO) Maintained run-rate
Fee-related Compensation MarginOngoingGuided range midpoint 17.5%Achieved midpoint in Q4 and FY Maintained

Earnings Call Themes & Trends

TopicQ2 2024 (Q-2)Q3 2024 (Q-1)Q4 2024 (Current)Trend
Wealth/Private WealthK‑Series ~$11B AUM; partnership with Capital Group announced; hybrid products planned for 2025 K‑Series $14B; strong infra/PE flows; platform expansion ongoing K‑Series $16B at YE; $18B incl. Jan 1; mass affluent via Capital Group targeted in H1’25 (credit first) Uptrend
Strategic HoldingsIntroduced segment; long-term path to $1B+ OE by 2030 Early dividends; portfolio LTM adj. EBITDA ~$0.9B (KKR share) Additional $1.1B stakes in 3 core PE businesses; guidance raised to $1.1B+ by 2030 Uptrend
Monetizations/ExitsPipelines improving; expect 2H recovery Record Cap Mkts fees; visible Q4 monetization ~$500M (60% at lower comp) Expect higher monetizations in 2025 vs 2024; high visibility ~$400M into early 2025 Uptrend
Data Centers/Digital InfraCapital Markets/CyrusOne case study; global footprint expanding Infra performance strong; fees turning on; data-center scale highlighted Demand strong; underwriting focused on cloud with location/contract discipline; multi-region platforms Uptrend
Insurance (Global Atlantic)Shift to longer-dated assets; temporary ROE drag; 14–15% long-term pretax ROE target 3Q Insurance OE $308M incl. ~$50M actuarial uplift Near-term Insurance OE “plus/minus” Q4 as mix shifts; deeper KKR–GA integration Stable (near-term subdued)
Macro/Tariffs/VolatilityMarket re-opening; activity up Tariffs: scenario planning; dry powder to deploy in volatility 2025 setup constructive; volatility creates opportunity Constructive

Management Commentary

  • “We had a really solid end to the year. Fee-related earnings per share came in at $0.94… and adjusted net income came in at $1.32 per share… both the second highest quarterly figure in our history.” – Craig Larson .
  • “Our capital markets business saw another strong revenue quarter at $270 million, bringing the 2024 total to $1 billion for the first time in our history.” – Robert Lewin .
  • “We will be increasing the existing stakes of 3 businesses that we know well… KKR will invest $1.1 billion… and we are increasing our guidance for strategic holdings operating earnings… to $350+ million in 2026, $700+ million in 2028, and $1.1+ billion in 2030.” – Scott Nuttall/Robert Lewin .
  • “The sun is out, and we’re running on flat road… conditions and forecasts are good… we’re picking up speed.” – Scott Nuttall on 2025 setup .
  • “We would expect over the next couple of quarters to have insurance operating earnings that is plus or minus where we were in Q4… as we transition… to longer-duration/private markets exposure.” – Robert Lewin .

Q&A Highlights

  • Fundraising/Management fees: First close for Americas PE ahead of plan; management fee growth expected to accelerate vs 2024, supporting 2026 FRE/share target ($4.50+) (management) .
  • Monetization outlook: Expect 2025 monetizations up vs 2024; supportive equity levels and tight spreads; embedded gains approaching ~$16B across balance sheet positions (CFO) .
  • Strategic Holdings: Own roughly ~20% direct across core PE businesses; timing driven by maturity and partner liquidity, aiming to scale long-duration dividends (management) .
  • Wealth channel: ~$100B of AUM from individuals; K-Series growing across PE/Infra; Capital Group partnership opens the mass affluent (90%+ of households) (management) .
  • Asset-Based Finance: ABF AUM ~$70B (+40% y/y); large market with bank partnership opportunities; GA enhances sourcing and scale (IR/management) .

Estimates Context

  • We attempted to retrieve S&P Global consensus for Q4 2024 (EPS and revenue) but could not due to data access limits at request time; therefore, beat/miss vs Street is not included. When available, we use S&P Global (Capital IQ) consensus as the default benchmark for estimate comparisons.

Key Takeaways for Investors

  • Recurring earnings engine is scaling: FRE and TOE remain robust with broad-based fee growth (mgmt fees + transaction/capital markets), even as GAAP revenue is more volatile due to Insurance accounting .
  • Strategic Holdings is becoming a material multi‑year contributor: guidance raised to $1.1B+ OE by 2030, accelerating cash-like, dividend-driven earnings without heavy headcount growth .
  • Wealth distribution is a structural tailwind: K-Series growth and Capital Group hybrid products should diversify and expand fee bases through the mass affluent channel beginning 2025 .
  • Insurance near-term earnings steady but mix improving: OE run-rate roughly flat near term as KKR/GA shift to longer-duration/private assets that should enhance long-term economics/ROE .
  • Monetization/carry setup constructive: improving exit markets plus large embedded gains and $7.9B gross unrealized carry position KKR for higher investing earnings as 2025 progresses .
  • Capital Markets is a differentiator: $1B+ FY revenue validates platform breadth; should remain leveraged to deployment/exit cycles across infra, PE, and credit .
  • Watch list: timing of Americas/Asia PE closes and fee “turn-ons,” pace of infra/climate fundraising/deployment, GA investment mix/ROE glidepath, and strategic holdings dividend flow trajectory .

Citations:

  • Q4 2024 8-K and Exhibit 99.1:
  • Q4 2024 press release pointer:
  • Q4 2024 call transcript:
  • Q3 2024 8-K:
  • Q3 2024 call transcript:
  • Q2 2024 call transcript:

Best AI for Equity Research

Performance on expert-authored financial analysis tasks

Fintool-v490%
Claude Sonnet 4.555.3%
o348.3%
GPT 546.9%
Grok 440.3%
Qwen 3 Max32.7%