Private equity firm KKR & Co Inc said on Friday its after-tax distributable earnings rose 6% year-on-year in the third quarter, driven by growth in management fees and transaction fees from its capital markets business.
After-tax distributable earnings (DE) – the cash available for paying dividends to shareholders – rose to $410.4 million, up from $388.8 million a year earlier. This translated to DE per share of 48 cents, which exceeded the average Wall Street analyst forecast of 40 cents, according to data from Refinitiv.
KKR said the value of its private equity portfolio appreciated by 16% during the quarter, while real estate and infrastructure funds rose 6% and 10% respectively. Its leveraged credit funds rose by 5%.
On Wednesday, rival Blackstone Group said its third-quarter distributable earnings rose 9%, while its private equity funds appreciated by 12.2%.
Carlyle Group Inc reported a smaller-than-expected 6% drop in its third-quarter distributable earnings on Thursday, with its overall fund portfolio rising 5%. Apollo Global Management said its private equity portfolio rose 8%, although distributable earnings fell 8% during the quarter.
KKR said its net income under generally accepted accounting principles rose to $1.1 billion, from $241.2 million a year earlier, driven by income from capital allocated out of its balance sheet. The strength in its capital markets business offset a decline in profits from asset sales.
Total asset management was $233.8 billion at the end of September, up from $221.8 billion from three months earlier. KKR closed the quarter with $67.1 billion in unspent capital and declared its regular dividend of $0.135 per share.
Reporting by Chibuike Oguh in New York; Editing by Lincoln Feast.