- Company name
- KKR
- Sector
- Alternative asset management
- About
- KKR is a global investment firm. It manages funds that invest in private equity, credit, infrastructure and real estate for pension funds, insurers, wealthy individuals and other clients, and it earns management fees and a share of the profits on these funds. It had $804 billion of assets under management at September 30, 2026, of which $648 billion paid fees. KKR also owns Global Atlantic, a life insurance and retirement company that invests its assets mostly through KKR. Its capital markets business arranges and underwrites debt and equity for KKR's companies and others. Its Strategic Holdings segment owns long-term stakes in companies. On May 4, 2026, KKR bought Arctos Partners, which invests in stakes in professional sports teams and had $20 billion of assets under management at June 30, 2026.
- Thesis
- The market prices KKR for the risk that losses in private credit and lower returns in private equity slow its growth. Investors worry about loans to software companies and other weak borrowers, and about withdrawals from funds sold to individual investors, such as KKR's K-Series funds. KKR's reported results kept growing: in Q3 2026, fee related earnings rose 27% to a record $1.42 per adjusted share, and assets under management rose 11% to $804 billion. About 84% of its segment earnings in the last 12 months came from fees, insurance and other recurring sources. But new capital raised slowed to $25 billion in Q3 2026, from $42.6 billion a year earlier, and to $116 billion in the last 12 months. For the gap to close, three things must be true. KKR must keep raising more than $100 billion of new capital a year, and its K-Series funds, which held $45 billion at September 30, 2026, must keep growing. Fee related earnings must keep growing at double digits. Credit losses in its funds and at Global Atlantic must stay low, and sales of investments, such as the sale of USI to Aon, must keep returning cash to clients and earning carried interest. The Q4 2026 report in February 2027, which includes the USI sale if it closes, is the next test. If it passes and credit worries fade, the gap can close over the next four to eight quarters. The main reason it may not close is a credit downturn that causes losses in private credit funds and at Global Atlantic and slows fundraising.
- Risks
- A credit downturn can cause losses in KKR's credit funds and in Global Atlantic's investments. Losses can lower fees, carried interest and insurance earnings, and they can slow new fundraising.
Funds sold to individual investors, such as the K-Series, allow regular withdrawals. If many investors ask to withdraw at once, these funds can limit withdrawals, which can hurt KKR's reputation and growth with individual investors.
Carried interest and investment income depend on selling investments at good prices. Weak markets for mergers and public offerings can delay sales and lower realized earnings.
KKR faces regulatory and legal risk. It agreed to pay a $250.0 million antitrust penalty in August 2026, which it says outside law firms will pay back.
- Balance sheet
- Cash: $5.4B
Debt: $9.3B
Net debt: $4.0B
Undrawn credit line: $3.0B, to July 2031
Ratings: S&P A, Fitch A
KKR's asset management balance sheet holds more cash and investments than debt. At September 30, 2026, excluding Global Atlantic, cash and short-term investments were $5,385 million and asset management investments were $8,902 million, for $14,287 million of cash and investments. Debt issued or guaranteed by KKR & Co. Inc. was $9,337 million at par, so net cash and investments were $4,950 million. The debt has an average maturity of about 15 years and an after-tax weighted average fixed coupon of 3%. Its $3 billion revolving credit facility, which runs to July 30, 2031, was undrawn. S&P and Fitch rate KKR & Co. Inc. A. Gross unrealized carried interest was $9.7 billion, and Global Atlantic's book value was $12.0 billion. The consolidated GAAP balance sheet is much larger, because it includes KKR's consolidated funds and Global Atlantic's insurance assets. The quarterly dividend is $0.195 per share.
As of Sep 30, 2026.
- Checkpoints
- Nov 9, 2026: Q3 2026 results: fundraising and credit. Failed. Watch: Fee related earnings growth of more than 15%, steady new capital raised and no large credit losses pass; falling fundraising or large markdowns in credit fail. Outcome: Fee related earnings rose 27% and the credit composites gained 4% over 12 months, but new capital raised fell to $25 billion from $34 billion in Q2 2026 and $42.6 billion a year earlier.
Feb 9, 2027 (estimate): Q4 2026 results, the USI sale and fundraising. Pending. Watch: About $2.00 of adjusted net income per share with the USI sale, continued growth in fee related earnings and new capital raised of $25 billion or more pass; a delayed USI sale, flat fees or lower fundraising fail.
- Recent events
- Nov 9, 2026: KKR reported Q3 2026 results. Fee related earnings rose 27% to $1.3 billion, or $1.42 per adjusted share, and adjusted net income rose 29% to $1.6 billion, or $1.78 per adjusted share, both records. GAAP net income for common stockholders was $1.19 per diluted share. Assets under management rose 11% to $804 billion. KKR raised $25 billion of new capital in the quarter, down from $42.6 billion a year earlier, and $116 billion in the last 12 months. KKR said that it expects about $2.0 billion of adjusted net income, or over $2.00 per share, in its Q4 2026 results, if the sale of USI closes. From June 30 to November 4, 2026, it bought back 6.2 million shares for $567 million, and on November 6, 2026, it added $500 million to its buyback program. The quarterly dividend was $0.195 per share.
Aug 31, 2026: KKR posted a presentation on the sale of USI Insurance Services, a company that its funds own, to Aon.
Aug 26, 2026: KKR agreed to settle the US Department of Justice antitrust complaint from January 2025 about its premerger filings for deals in 2021 and 2022. A KKR subsidiary will pay a $250.0 million civil penalty after court approval, and the Antitrust Division closed its related investigations. KKR said that outside law firms will fully pay back the penalty and that it disagrees with the Division's view.
Jul 30, 2026: KKR reported Q2 2026 results. Fee related earnings rose 37% to $1.2 billion, or $1.32 per adjusted share, and adjusted net income rose 40% to $1.63 per adjusted share, both records. GAAP net income for common stockholders was $0.70 per diluted share. Assets under management rose 16% to $796 billion, and KKR raised $34 billion of new capital in the quarter. The quarterly dividend was $0.195 per share.
Jul 30, 2026: KKR replaced its corporate revolving credit facility with a new $3.0 billion senior unsecured facility that runs to July 30, 2031.
May 4, 2026: KKR completed its purchase of Arctos Partners, an investor in professional sports team stakes. KKR reports it in its private equity business.