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KKR’s fourth-quarter earnings more than double -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO: 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

By Chibuike Oguh

(Reuters) – KKR & Co (NYSE:) Inc 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.

KKR’s solid earnings performance is in line with its peers. It reflects a record-breaking year of dealmaking in 2021, which was driven by buoyant market conditions, cheap capital and economic recovery from the COVID-19 epidemic.

Blackstone (NYSE -) Inc. Carlyle Group (NASDAQ) Inc and Inc each reported record fourth-quarter earnings. This was because the buyouts took advantage the favorable market to sell assets for top dollar.

KKR reported that its after-distributable income, which is the amount of cash used for dividend payments to shareholders, grew to $1.4 billion, a record, compared to $544.1 million a previous year. Refinitiv financial data provider said that this resulted in after-tax distributed earnings per share at $1.59. That’s higher than the Wall Street average estimate of $1.21 per shared.

KKR’s quarter ended with $568.3million in profits. This included the sale and purchase of its controlling share in Max Healthcare, an Indian hospital operator chain, as well as a minority interest in Kokusai Electric, Japan. Transaction fees from its capital market unit increased to $320 million, 66% higher than $193 millions a year prior. The increase was driven mainly by private equity and infrastructure 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.

KKR reported that its private equity portfolio grew 7% during the quarter, while its opportunistic funds for real estate rose 4%. Blackstone reported 4.8% appreciation and Carlyle reported a 6% increase in their private equity fund.

KKR managed assets of $471 billion during the third quarter. This was a result of strong fundraising. Unspent capital was stable at $112 billion.

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