Q4 2025 KKR & Co Inc Earnings Call Transcript
Key Points
- KKR & Co Inc (KKR) reported a record $129 billion in capital raised for 2025, marking the highest fundraising year in its 50-year history.
- Management fees grew by 24% year-over-year, driven by diversified fundraising initiatives and continued deployment across the firm.
- The firm achieved a healthy fee-related earnings margin of 68% for Q4 and over 69% for the full year 2025.
- KKR's insurance segment operating earnings were $268 million in Q4, with potential for higher profitability if including marks on investments.
- The acquisition of Arctos positions KKR as a leader in sports franchise investments and GP solutions, with plans to expand to $100 billion AUM in KKR Solutions.
- The firm faces challenges in monetization due to overconcentration in the 2021 vintage, impacting industry-wide exits.
- Despite strong fundraising, the broader market environment remains volatile, with concerns around tariffs and AI impacting investor sentiment.
- The insurance segment's operating earnings do not fully capture the economic impact due to cash accounting, potentially understating profitability.
- There is limited disclosure on the strategic holdings segment, which some investors view as a 'black box' with unclear drivers of growth.
- The market's anxiety over AI and its impact on the economy could affect KKR's deployment and return expectations in the near term.
Ladies and gentlemen, thank you for standing by. Welcome to KKR's 4th 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 fourth quarter 2025 earnings call this morning, as usual, I'm joined by Rob Loon, our Chief Financial Officer, and Scott Nut, our co-Chief Executive Officer.
We would like to remind everyone that we 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.
We will refer to forward-looking statements on the call which do not guarantee future events or performance, so please refer to our earnings release and our SEC filings for
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