• Disclosure
  • Privacy Policy
  • DMCA Policy
  • CCPA
  • Medical Disclaimer
Tuesday, January 31, 2023
Jefferson County News Online
  • Home
  • News
  • Business
  • Technology
    • Crytpocurrency
    • Gaming
    • Gadgets
  • Sports
  • Health
  • General
    • Business Services
  • Travel
  • Press Releases
  • Popular
No Result
View All Result
  • Home
  • News
  • Business
  • Technology
    • Crytpocurrency
    • Gaming
    • Gadgets
  • Sports
  • Health
  • General
    • Business Services
  • Travel
  • Press Releases
  • Popular
No Result
View All Result
No Result
View All Result
Home News

U.S. Buyout Firm KKR’s Fourth-Quarter Earnings More Than Double – Reuters

us.-buyout-firm-kkr’s-fourth-quarter-earnings-more-than-double-–-reuters
Share on FacebookShare on Twitter

Trading information for KKR & Co is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., August 23, 2018. REUTERS/Brendan McDermid/File Photo

Register now for FREE unlimited access to Reuters.com

Feb 8 (Reuters) – Buyout firm KKR & Co Inc (KKR.N) said on Tuesday its after-tax distributable earnings more than doubled in the fourth quarter, thanks to strong asset sales from its private equity portfolio and record transaction fees from its capital markets business.

The strong earnings performance, in line with that of KKR’s peers, reflects a record-breaking dealmaking year in 2021 that was driven by buoyant markets, access to cheap capital, and the economic rebound from the COVID-19 pandemic.

Blackstone Inc (BX.N) and Carlyle Group Inc (CG.O) both reported record fourth-quarter earnings, as the buyout firms took advantage of the favorable environment to sell assets at top dollar. read more

Register now for FREE unlimited access to Reuters.com

But investors are bracing for a more uncertain market climate this year afterthe U.S. Federal Reserve reiterated its intention to raise interest rates and end its bond-buying program in an effort to curb rising inflation.

KKR said it remains positive notwithstanding the expected rise in rates, and added that some of its business segments, particularly its credit business and Global Atlantic insurance franchise, will benefit from any rise in the cost of capital.

“Our expectation is that we can be in an environment here where real rates are still low or negative over the next couple of years, which I think is an overall positive place for us to be from a business model perspective,” KKR Chief Financial Officer Robert Lewin said during an analyst call on Tuesday.

KKR’s shares were down 7.6% at $65.37 in early afternoon trading on Tuesday, tracking the share prices of its peers but underperforming the broader market, which was higher.

“It’s just macro fears driving the selloff and fears around realizations. Part of it is also around messaging and targets on what they plan to do because for rates and inflation it’s hard to say,” said Jefferies analyst Gerald O’Hara.

STRONG EARNINGS

The New York-based firm said its after-distributable earnings, which represent the cash used to pay dividends to shareholders, rose to a record $1.4 billion compared with $544.1 million a year earlier. That translated to after-tax distributable earnings per share of $1.59, exceeding the average Wall Street analyst estimate of $1.21 per share, according to financial data provider Refinitiv.

During the quarter, KKR generated $568.3 million as it booked profits from asset divestments, including the sale of its controlling interest in Max Healthcare, an Indian hospital chain operator, and a minority stake in Japan’s Kokusai Electric. Transaction fees from its capital markets unit rose to $320 million, up 66% from $193 million a year earlier, driven mostly by infrastructure and private equity deals in North America.

KKR said it invested $23 billion to buy assets in the fourth quarter, including the acquisition of Norwegian ship-owning company Ocean Yield and a stake in South Korean energy company SK E&S Co Ltd.

Private equity portfolio rose 7% in the quarter and opportunistic real estate funds rose 4%, KKR said. Blackstone and Carlyle reported appreciation in their private equity funds of 4.8% and 6%, respectively.

KKR’s assets under management rose 2.6% during the quarter to $471 billion, driven by strong fundraising, while unspent capital was flat at $112 billion.

Register now for FREE unlimited access to Reuters.com

Reporting by Chibuike Oguh in New York; Editing by Leslie Adler and Paul Simao

Our Standards: The Thomson Reuters Trust Principles.

Jefferson County News Online

© 2021 Jefferson COunty News Online

Navigate Site

  • Disclosure
  • Privacy Policy
  • DMCA Policy
  • CCPA
  • Medical Disclaimer

Follow Us

No Result
View All Result
  • Home
  • DMCA Policy
  • Medical Disclaimer
  • Privacy Policy
  • Disclosure
  • CCPA
  • Terms of Use

© 2021 Jefferson COunty News Online

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
Cookie SettingsAccept All
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT