Q2 2026 KKR & Co Inc Earnings Call Transcript
Key Points
- Record quarterly earnings across all three headline financial metrics: fee-related earnings, total operating earnings, and adjusted net income per share.
- Strong fundraising momentum, raising $305 billion since the start of 2024, surpassing the three-year $300 billion target in just 2.5 years.
- Record monetization quarter with $848 million in realized performance income, driven by diversified exit activity across strategies and regions.
- High fee-related earnings (FRE) margin of 70%, with 10 consecutive quarters above 65%, reflecting operating leverage and a scalable business model.
- Significant growth in wealth management, with K-Series AUM up nearly 70% year-over-year to $42 billion and net inflows up over 20% year-to-date.
- Insurance segment faces heightened competition, leading to a decision to allocate less capital to insurance in the near term.
- Insurance operating earnings are reported on a cash basis, which understates the true economics; including mark-to-market would show higher earnings but adds volatility.
- Management fees in the credit and liquid strategies business declined sequentially due to a one-time benefit in the prior quarter, though year-over-year growth remains positive.
- Strategic Holdings operating earnings are back-end weighted for 2026, with quarter-to-quarter variability and a hockey-stick trajectory that may raise investor concerns.
- External pessimism around private credit, private wealth redemptions, and AI disruption risks persists, creating a disconnect between operating fundamentals and market perception.
Ladies and gentlemen, thank you for standing by. Welcome to KKR's second-quarter 2026 earnings conference call. (Operator Instructions)
I will now hand the call over to your host, Craig Larson, Partner and Head of Investor Relations for KKR. Craig, please go ahead.
Thank you, operator. Good morning, everyone, and welcome to our second=quarter 2026 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 contain forward-looking statements which do not guarantee future events or performance. Please refer to our earnings release and our SEC filings for cautionary factors about these statements.
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