KKR
FinancialsKKR & Co.
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Financials
XBRL · SEC EDGAR2016–2025(10yr)| Metric | FY 2016 | FY 2017 | FY 2018 | FY 2019 | FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025Latest | YoY |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $2.0B | $3.6B | $2.4B | $4.2B | $4.2B | $16.2B | $5.7B | $14.5B | $21.9B | $19.5B | -11.0% |
| Net Income | $309.3M | $1.0B | $1.1B | $2.0B | $2.0B | $4.7B | -$841.1M | $3.7B | $3.1B | $2.4B | -22.9% |
| Net Margin | 15.2% | 28.6% | 47.2% | 47.5% | 47.3% | 28.7% | -14.7% | 25.7% | 14.1% | 12.2% | -1.9pp |
| Free Cash Flow | -$1.6B | -$3.7B | -$7.7B | -$5.9B | — | — | — | — | — | — | — |
| FCF Margin | -79.6% | -104.8% | -321.8% | -139.2% | — | — | — | — | — | — | — |
| EPS (Diluted) | — | — | — | $3.58 | $3.50 | $7.83 | $-0.98 | $4.22 | $3.46 | $2.66 | -23.2% |
1. THE BIG PICTURE
KKR is successfully engineering a transition from a traditional private equity firm into a diversified financial powerhouse where 85% of earnings now come from "durable and recurring" sources (8-K). By locking up 92% of its assets under management in perpetual or long-dated capital, KKR & Co. has insulated itself from the "run on the bank" risks that plague standard asset managers during market downturns (10-K Item 1).
2. WHERE THE RISKS HIT HARDEST
The "one-firm" integrated platform is threatened by the loss of key personnel because the model relies on the collaborative "investment acumen" of its Co-Founders and Co-CEOs to source deals across 36 countries (10-K Item 1). If these leaders depart, KKR & Co.’s ability to raise new funds and maintain investor relationships could be jeopardized (Risks). Furthermore, KKR’s competitive strategy of "putting our own capital behind our ideas" is threatened by market volatility; a sharp downturn could simultaneously devalue KKR & Co.'s balance sheet investments while increasing the cost of benefits KKR must pay out to its Global Atlantic insurance policyholders (Risks, 10-K Item 1).
3. WHAT THE NUMBERS SAY TOGETHER
KKR’s 9.9% net margin is the lowest in its peer group, significantly trailing BlackRock (27.0%) and Blackstone (20.2%) (Peer Benchmarking). This reflects the structural reality of its Insurance and Strategic Holdings segments, which require more capital and carry higher operating costs than pure-play fee-collectors. While TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter revenue growth appears weak at -11.0%, the most recent quarter tells a different story: revenue surged to $5.74 billion from $3.26 billion a year prior (8-K). This divergence suggests that while the long-term trend has been volatile, KKR & Co. is currently seeing a massive expansion in Fee Related Earnings (up to $972 million), which is beginning to outweigh the sharp decline in realized investment income (8-K).
4. IS IT WORTH IT AT THIS PRICE?
At 11.4x Forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations, the market is pricing in ~7.0% long-term growth (CAPM analysis). This is a modest discount to the 13.9x peer median, which is justified by KKR’s lower margins and its negative TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter revenue growth compared to faster-growing peers like Apollo (+22.7%) and Ares (+28.9%). The current price is supported by KKR & Co.'s aggressive expansion into "large addressable markets," specifically through the acquisition of Arctos Partners, which adds $15 billion in AUM and a foothold in professional sports franchise stakes (8-K). However, the sensitivity is high: if growth were to slow to a GDP-pace of 2.5%, the justified multiple would fall to 7.7x, implying significant downside (CAPM analysis).
5. WHAT WOULD CHANGE THIS VIEW?
- Constructive if the "K-Series" vehicles for individual investors show a sustained spike in capital raising, proving that KKR can dominate the private wealth channel as effectively as it does institutional markets.
- Cautious if the "Total Investing Earnings" continue to shrink (falling from $399 million to $84 million in the latest quarter), as this would place more pressure on the Insurance segment to carry KKR & Co.'s growth (8-K).
- Cautious if global trade barriers or geopolitical conflicts in the Middle East disrupt the "global network" KKR uses to source its most profitable deals (Risks).
6. BOTTOM LINE
Structural Advantage: A massive $500B+ asset base where 92% of capital is "perpetual," integrated with an insurance platform that provides a constant stream of low-cost capital for reinvestment. Bottom Line: KKR is a high-conviction play on the "permanence" of capital, but it remains a more complex and capital-heavy bet than its pure-play management peers.
1. Top 5 Material Risks
- Market and Economic Conditions: KKR & Co. is materially affected by global conditions including interest rates, inflation, credit availability, and liquidity. These factors directly impact the performance and value of investments, the ability to exit investments, and the attractiveness of insurance products to policyholders.
- Geopolitical and Catastrophic Events: Global instability, including conflicts in Ukraine and the Middle East, trade barriers, and natural disasters, can disrupt operations, increase costs, and cause volatility in the price of KKR & Co. common stock.
- Key Personnel Retention: The business relies on the expertise and relationships of its Co-Founders, Co-CEOs, and other key personnel. The loss of these individuals could lead to a reduction in assets under management (AUM) and limit the ability to raise new funds.
- Third-Party Reliance: KKR & Co. relies on third-party service providers for critical operations such as data processing, accounting, and technology infrastructure. Disruptions or cybersecurity incidents at these vendors can lead to reputational harm, regulatory scrutiny, and financial loss.
- Balance Sheet Management: KKR & Co. maintains a larger balance sheet than many competitors to support insurance subsidiaries and capital markets underwriting. Failure to manage this capital-intensive business, particularly regarding insurance obligations and syndication commitments, could result in operating losses or the need for additional capital.
2. Company-Specific Risks
- Clawback Obligations: KKR & Co. is subject to "clawback" provisions in its carry-paying funds, which may require the return of previously distributed carried interest if later investments underperform.
- Insurance Liquidity Needs: Global Atlantic’s insurance business faces unpredictable liquidity requirements from policyholder surrenders and reinsurance collateral obligations, which may force the sale of assets on unfavorable terms.
- Strategic Holdings Complexity: The Strategic Holdings segment involves long-term ownership of companies where dividend and earnings growth expectations may not materialize, potentially leading to lower-than-expected returns.
- Arctos Partners Acquisition: The pending acquisition of Arctos Partners introduces new regulatory and sports-league-specific compliance risks, including potential restrictions on future investments to avoid conflicts with league rules.
3. Regulatory/Legal Risks
- Investment Adviser and Broker-Dealer Regulation: KKR & Co. operates under strict registration requirements; suspension or revocation of these licenses by the SEC, FINRA, or non-U.S. regulators would prohibit KKR & Co. from conducting its asset management and capital markets businesses.
- ERISA and Fiduciary Liability: If investment vehicles or insurance subsidiaries are deemed to hold "plan assets" under ERISA, KKR & Co. could face prohibited transaction liability and restrictions on its ability to manage those assets.
- Financial Crime Laws: KKR & Co. is subject to complex anti-corruption (FCPA), anti-money laundering (AML), and economic sanctions regimes. Liability can be imputed to KKR & Co. for the conduct of portfolio companies or third-party intermediaries, even if the conduct occurred prior to acquisition.
- Sustainability Disclosure: Evolving sustainability-related regulations (e.g., EU Sustainable Finance Disclosure Regulation, California climate laws) increase compliance costs and create risks of litigation or enforcement if disclosures are perceived as inaccurate.
4. Financial Impact Map
Market and Economic Conditions → Investment Income / Realized and Unrealized Gains → Performance and valuation of investments held by KKR & Co. and its investment vehicles. Key Personnel Retention → Assets Under Management (AUM) / Management Fees → Loss of key personnel could result in a reduction of AUM and the ability to raise future funds. Balance Sheet Management → Insurance Operating Losses / Capital Markets Revenue → Failure in asset-liability management or inability to syndicate capital markets commitments could lead to losses or impairment of the capital markets business. Clawback Obligations → Realized Performance Income / Realized Investment Income → Realization of clawback obligations reduces realized performance and investment income. Regulatory/Legal Actions → Operating Expenses / Legal Reserves → Significant monetary penalties, sanctions, or costs associated with regulatory investigations and compliance.
Recent Filings
| Form | Filed | Period |
|---|---|---|
| 10-K | Feb 2026 | Dec 2025 |
| 8-K | Feb 2026 | — |
| 10-Q | Nov 2025 | Sep 2025 |
AI-extracted key facts from press releases and SEC filings. Significance 1–10.
KKR Partners With MLS, Exits Axius Water, Leads $125M Reserv Funding
- ▸Partnered with Major League Soccer to support growth of MLS NEXT Pro
- ▸Exited investment in Axius Water via sale to CRH
- ▸Led $125 million funding round in AI-driven insurance tech firm Reserv
- ▸Strategic focus on US soccer expansion ahead of 2026 FIFA World Cup
- ▸Portfolio rotation targeting water infrastructure and AI-enabled insurance technology
KKR closes record $23 billion North America private-equity fund, its largest ever
- ▸Closed $23 billion North America private-equity fund
- ▸Largest private-equity fund in KKR history
- ▸Fundraising achieved despite worst industry environment in nearly a decade
KKR Closes $23 Billion North America Private Equity Fund, Largest Regional Fund to Date
- ▸Closed $23 billion North America Fund XIV for opportunistic private equity investments
- ▸Largest private equity fund raised focused solely on North American investments
- ▸Predecessor funds delivered 23% gross IRR and 2.1x gross multiple as of Dec 2025
- ▸KKR private equity assets under management have doubled since 2020
- ▸Fund continues commitment to broad-based employee ownership programs in portfolio companies
KKR to privatize Taiyo Holdings in tender offer at JPY 4,750 per share
- ▸KKR to acquire all common shares of Taiyo Holdings via tender offer
- ▸Offer price set at JPY 4,750 per share
- ▸Secured support from shareholders representing approximately 42.2% of outstanding shares
- ▸Oasis Management to tender 15.62% stake in Taiyo Holdings
- ▸DIC Corporation and Kowa Co. to participate in privatization and share buyback
KKR in exclusive US Army data center talks, eyes Atlantic Aviation exit and Nestle water bid
- ▸KKR in exclusive talks with US Army for defense AI data center project
- ▸Firm progressing on potential sale of Atlantic Aviation portfolio company
- ▸KKR participating in bidding group for Nestle's water business unit
- ▸Shares trading at $92.50, approximately 32% below consensus analyst target of $135.77
- ▸Current P/E ratio approximately 36.8 with EPS of $2.51
KKR sells CoolIT Systems to Ecolab for $4.75 billion, generating 15x return
- ▸Sold CoolIT Systems to Ecolab for $4.75 billion
- ▸Transaction generated 15x return on original equity investment
- ▸CoolIT acquired in 2023 to target data center liquid cooling demand
- ▸CoolIT projected to deliver 4x revenue and 10x EBITDA growth this year
- ▸90% of covering analysts maintain bullish ratings with $135.50 price target
KKR to Acquire Taiyo Holdings in Privatization Deal at JPY 4,750 Per Share
- ▸KKR to acquire all common shares of Taiyo Holdings via tender offer
- ▸Offer price JPY 4,750 per share represents 117% premium to six-month average
- ▸Board of Directors and shareholders representing 42.2% of shares support transaction
- ▸DIC Corporation, Kowa, and Oasis Management agreed to participate in tender offer
- ▸Privatization aims to accelerate long-term growth strategy and agile decision-making
KKR Reports Record $129B Fundraising in 2025, Agrees to Sell CoolIT for $4.75B
- ▸Raised record $129 billion in 2025
- ▸Sold CoolIT Systems to Ecolab for $4.75 billion
- ▸CoolIT exit achieved at 15x original equity investment
- ▸Acquired Arctos to expand into sports franchise and GP solutions
- ▸Projected 2028 revenue $13.7 billion and earnings $5.4 billion
KKR Reports Record $129B 2025 Fundraising, Targets $1.1B Operating Earnings by 2030
- ▸Raised record $129 billion in 2025
- ▸Assets under management reached $744 billion at year-end 2025
- ▸Targeting operating earnings growth to over $1.1 billion by 2030
- ▸Acquiring Arctos to expand into sports franchise and GP solutions
- ▸Distributed $2 billion in shares to portfolio company employees
KKR to sell CoolIT to Ecolab for $4.75 billion, 15x return on investment
- ▸Sale price $4.75 billion for data-center cooling business CoolIT
- ▸KKR investment return approximately 15x initial capital
- ▸Acquired majority stake in 2023 at $270 million valuation
- ▸Buyer is Ecolab Inc.
- ▸Deal marks one of KKR's most successful private equity exits