Q3 2025 KKR & Co Inc Earnings Call Transcript
Key Points
- KKR & Co Inc (KKR) reported record fee-related earnings of $1.15 per share and total operating earnings of $1.55 per share for Q3 2025.
- Management fees grew by 19% year-over-year, driven by successful fundraising across all asset classes and continued capital deployment.
- The company raised $43 billion in capital during the third quarter, marking the second-highest fundraising quarter in its history.
- KKR's credit platform raised $55 billion year-to-date, on track for a record capital raising year.
- The insurance segment operating earnings were $305 million, with strategic holdings operating earnings significantly ahead year-to-date compared to the previous year.
- KKR will take a charge in Q4 due to a clawback related to its underperforming Asia II private equity fund, impacting net realized performance income.
- Despite strong performance, the monetization environment remains uncertain, potentially affecting future earnings.
- The insurance operating earnings do not fully capture the total economics of the insurance business, leading to potential underestimation of its profitability.
- There is a risk that the monetization environment could deteriorate, which would delay some activities and impact earnings in 2026.
- The competitive environment for liabilities and assets in the insurance sector is tight, with low spreads affecting returns.
Ladies and gentlemen, thank you for standing by, and welcome to KKR's third quarter 2025 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.
I would now like to turn the conference over to your host, Mr. Craig Larson. Thank you. You may begin.
Good morning, everyone, and welcome to our third quarter 2025 earnings call. This morning, as usual, I'm joined by Rob Lewin, our Chief Financial Officer; and 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 also contain forward-looking statements, which do not guarantee future events or performance. Please refer to our earnings release as well as our SEC filings for cautionary factors about these statements.
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