Q1 2024 KKR & Co Inc Earnings Call Transcript
Key Points
- Fee-related earnings per share increased by 22% year-over-year, indicating strong revenue growth.
- Total operating earnings were up, with a significant contribution from the insurance operating segment.
- KKR's private equity portfolio showed robust performance, with a 5% increase in the quarter and 19% over the last 12 months.
- Strategic Holdings segment is expected to generate significant operating earnings growth, projecting over $1 billion by 2030.
- KKR successfully raised $31 billion of capital during the quarter, demonstrating strong market trust and investment appeal.
- Other operating expenses, although managed well, are expected to increase due to ongoing investments and operational expansions.
- The insurance operating earnings were impacted by elevated cash and liquid assets, which are expected to yield lower returns in the short term.
- Realized performance income and investment income are highly dependent on market conditions, which can introduce volatility in earnings.
- The redeployment of assets in the insurance segment into higher-yielding investments is expected to take 12-18 months, potentially affecting short-term returns.
- While strategic holdings are projected to grow, the current operating earnings from this segment are modest, with expectations set for more significant contributions in the future.
Ladies and gentlemen, thank you for standing by. Welcome to KKR's First Quarter 2024 Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded.
I would now like to hand the call over to Craig Larson, Partner and Head of Investor Relations for KKR. Thank you. You may begin.
Thank you, operator. Good morning, everyone. Welcome to our first quarter 2024 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
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
