Q2 2025 KKR & Co Inc Earnings Call Transcript
Key Points
- KKR & Co Inc (KKR) reported record-high fee-related earnings of $0.98 per share, total operating earnings of $1.33 per share, and adjusted net income of $1.18 per share.
- Management fees increased by 18% year-over-year, driven by the activation of Americas XIV and broader fundraising initiatives.
- The company has a strong pipeline for deployment in the second half of 2025, with $115 billion of uncalled capital.
- KKR & Co Inc (KKR) raised $28 billion in capital during Q2, with significant growth in asset-based finance (ABF) commitments.
- The acquisition of a majority stake in HealthCare Royalty Partners expands KKR's life sciences footprint, adding approximately $3 billion in largely perpetual AUM.
- Despite strong performance, the Insurance segment's operating earnings were only modestly ahead of expectations, indicating potential volatility in future quarters.
- The company faces challenges in the competitive private wealth space, with K-FIT still in early stages despite recent progress.
- Strategic buyers remain hesitant to acquire sponsor-backed companies, potentially impacting KKR's realization activities.
- The macroeconomic environment remains uncertain, which could affect future fundraising and investment activities.
- KKR's growth in management fees may face headwinds if market conditions change or if there are delays in fund activations.
Ladies and gentlemen, thank you for standing by. Welcome to KKR's second-quarter 2025 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.
I will now hand the call over to Craig Larson, Partner and Head of Investor Relations for KKR. Craig, please go ahead.
Thank you, operator. Good morning, everyone. Welcome to our second-quarter 2025 earnings call. This morning, as usual, I'm joined by Rob Lewin, our Chief Financial Officer; as well as Scott Nuttall, our Co-Chief Executive Officer.
We would like to remind everyone that we'll refer to non-GAAP measures on the call, which are reconciled to GAAP figures in our press release, which is available on the Investor Center section at kkr.com. And as a reminder, we report our segment numbers on an adjusted share basis. This call will contain forward-looking statements, which do not guarantee future events or performance. So please refer to our earnings release as well as our SEC filings for cautionary
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