KKR & Co Inc (KKR, Financial) released its third quarter 2023 financial results on November 7, 2023, showcasing a robust performance with significant revenue growth and strong capital deployment. The company's GAAP Net Income attributable to KKR & Co. Inc. Common Stockholders was reported at $1.5 billion for the quarter, marking a substantial increase from the previous year. The GAAP Stockholders’ Equity Per Outstanding Share of Common Stock was $23.07 at quarter end.
The company's total revenues for the quarter reached $3.3 billion, with the Asset Management segment contributing $1.7 billion and the Insurance segment adding $1.6 billion. This performance reflects KKR's ability to generate attractive investment returns and growth across its diversified business lines.
KKR's Assets Under Management (AUM) grew to $528 billion, up 6% year-over-year, with Fee Paying Assets Under Management (FPAUM) increasing by 7% to $424 billion. The company also reported Uncalled Commitments of $99 billion and new Capital Raised of $14 billion in the quarter, demonstrating its strong capital raising and deployment capabilities.
Despite the positive growth metrics, KKR's After-tax Distributable Earnings (DE) for the quarter were $780 million, down 7% year-over-year. This decline was attributed to a decrease in performance-related earnings, which offset the growth in management fees and other income.
Co-Chief Executive Officers Joseph Y. Bae and Scott C. Nuttall commented on the results, stating,
Our results demonstrate the durability, diversity and growth in our business. We are raising and deploying capital across all our businesses and regions. We have a mature global portfolio that is performing and providing monetization opportunities. And we have multiple ways to grow, leading to real momentum and optimism as we look to 2024 and beyond.
KKR's financial tables provided a detailed breakdown of the company's performance, with the Asset Management segment showing a 16% increase in management fees to $3.0 billion in the Last Twelve Months (LTM), driven by an increase in Fee Paying AUM from organic capital raised. The company's FRE margins remained above 60% in both periods.
The company's performance analysis indicates a strong position in the market, with multiple avenues for growth and a solid foundation for future success. KKR's diversified portfolio and strategic capital deployment continue to drive its financial achievements, positioning the firm favorably for the upcoming year.
For more detailed information on KKR's third quarter 2023 financial results, please visit the Investor Center section of KKR's website at https://ir.kkr.com/events-presentations/.
Explore the complete 8-K earnings release (here) from KKR & Co Inc for further details.
