Download PDF

1. Company Snapshot

1.a. Company Description

KKR & Co. Inc.is a private equity and real estate investment firm specializing in direct and fund of fund investments.It specializes in acquisitions, leveraged buyouts, management buyouts, credit special situations, growth equity, mature, mezzanine, distressed, turnaround, lower middle market and middle market investments.


The firm considers investments in all industries with a focus on software, security, semiconductors, consumer electronics, internet of things (iot), internet, information services, information technology infrastructure, financial technology, network and cyber security architecture, engineering and operations, content, technology and hardware, energy and infrastructure, real estate, services industry with a focus on business services, intelligence, industry-leading franchises and companies in natural resource, containers and packaging, agriculture, airports, ports, forestry, electric utilities, textiles, apparel and luxury goods, household durables, digital media, insurance, brokerage houses, non-durable goods distribution, supermarket retailing, grocery stores, food, beverage, and tobacco, hospitals, entertainment venues and production companies, publishing, printing services, capital goods, financial services, specialized finance, pipelines, and renewable energy.In energy and infrastructure, it focuses on the upstream oil and gas and equipment, minerals and royalties and services verticals.In real estate, the firm seeks to invest in private and public real estate securities including property-level equity, debt and special situations transactions and businesses with significant real estate holdings, and oil and natural gas properties.


The firm also invests in asset services sector that encompasses a broad array of B2B, B2C and B2G services verticals including asset-based, transport, logistics, leisure/hospitality, resource and utility support, infra-like, mission-critical, and environmental services.Within Americas, the firm prefers to invest in consumer products; chemicals, metals and mining; energy and natural resources; financial services; healthcare; industrials; media and communications; retail; and technology.Within Europe, the firm invests in consumer and retail; energy; financial services; health care; industrials and chemicals; media and digital; and telecom and technologies.


Within Asia, it invests in consumer products; energy and resources; financial services; healthcare; industrials; logistics; media and telecom; retail; real estate; and technology.It also seeks to make impact investments focused on identifying and investing behind businesses with positive social or environmental impact.The firm seeks to invest in mid to high-end residential developments, but can invest in other projects throughout Mainland China through outright ownership, joint ventures, and merger.


It invests globally with a focus on Australia, emerging and developed Asia, Middle East and Africa, Nordic, Southeast Asia, Asia Pacific, Ireland, Hong Kong, Japan, Taiwan, India, Vietnam, Malaysia, Singapore, Indonesia, France, Germany, Netherlands, United Kingdom, Caribbean, Mexico, South America, North America, Brazil, Latin America, Korea with a focus on South Korea, and United States of America.In the United States and Europe, the firm focuses on buyouts of large, publicly traded companies.It seeks to invest $30 million to $717 million in companies with enterprise values between $500 million to $2389 million.


The firm prefers to invest in a range of debt and public equity investing and may co-invest.It seeks a board seat in its portfolio companies and a controlling ownership of a company or a strategic minority positions.The firm may acquire majority and minority equity interests, particularly when making private equity investments in Asia or sponsoring investments as part of a large investor consortium.


The firm typically holds its investment for a period of five to seven years and more and exits through initial public offerings, secondary offerings, and sales to strategic buyers.KKR & Co. Inc.was founded in 1976 and is based in New York, New York with additional offices across North America, Europe, Australia, Sweden and Asia.

Show Full description

1.b. Last Insights on KKR

Breaking News: KKR & Co. Inc. reported its fourth quarter 2025 results, with fee-based revenue remaining robust and AUM up 17% to $744 billion. Despite Q4 EPS missing estimates due to rising expenses, AUM climbed 16.6% year over year, driving higher fees. The company has a strong balance sheet with $4 billion in net cash/investments and $10 billion in unrealized performance income. KKR was upgraded to "Strong Buy" with 45% upside potential by an analyst, citing stability amid sector volatility and opportunities for M&A, dividend growth, and expansion.

1.c. Company Highlights

2. KKR & Co. Inc. Posts Strong Q4 2025 Earnings, Driven by Fee-Related Earnings Growth

KKR & Co. Inc. reported a robust fourth quarter 2025, with key financial metrics including $1.08 of fee-related earnings per share, $1.42 of total operating earnings per share, and $1.12 of adjusted net income per share, slightly below estimates of $1.14. Management fees grew 24% year-over-year to $1.1 billion, driven by a record $129 billion in capital raised during the year. Total transaction and monitoring fees were $269 million, and capital markets fees came in at $225 million. Fee-related compensation was 17.5%, and other operating expenses were $205 million.

Publication Date: Feb -06

📋 Highlights
  • Record Capital Raise: Raised $28B in Q4 2025, contributing to a full-year record of $129B, surpassing prior 50-year highs.
  • Fee-Related Earnings Growth: Delivered $1.08 FRE/share in Q4, with management fees up 24% YoY to $1.1B, on track to exceed $4.50 FRE/share in 2026.
  • Arctos Acquisition: Acquired Arctos for $1.4B (equity + cash), expected to be immediately accretive across key metrics, targeting a $100B AUM solution franchise.
  • Insurance Segment Performance: Generated $268M in operating earnings, with embedded profitability potentially $100M higher if investment marks were included.
  • Capital Deployment Momentum: Invested $32B in Q4 2025 ($95B for 2025), a 13% increase from 2024, with $900M monetization visibility from signed deals.

Segment Performance

The insurance segment operating earnings in Q4 were $268 million, with embedded profitability approximately $100 million higher if marks on investments were included. The firm raised $28 billion of new capital in the quarter, bringing the full-year capital raise to $129 billion, the highest fundraising year in their fifty-year history. They also announced a strategic acquisition of Arctos, a leading investor in professional sports franchise stakes and a leader in GP solutions with approximately $15 billion of assets under management.

Investment Activity and Monetization

The firm invested $32 billion of capital in the quarter and $95 billion over the course of 2025, up 13% compared to 2024. Embedded gains currently stood at $18.6 billion, up from $15.6 billion a year ago, or 19%. Robert Lewin noted that the firm has $2 billion of gross monetization activity, excluding the carried interest repayment obligation, and expects an increase in investment income in 2026.

Valuation and Outlook

Given the current price-to-book ratio of 2.97 and price-to-earnings ratio of 37.59, the market appears to be pricing in significant growth expectations. Analysts estimate next year's revenue growth at 16.7%. With a strong track record of delivering on growth targets, KKR & Co. Inc.'s strategic acquisition of Arctos and focus on scaling its wealth management business position the firm for continued success. As Scott Nuttall noted, "We're very intentional over the years about where and how we expand the firm. We only want to be in businesses where we believe we can be a top-tier player over time."

Strategic Acquisition and Growth Prospects

The acquisition of Arctos is expected to be accretive per share across key financial metrics immediately post-closing. The transaction is valued at $1.4 billion in equity and cash, with much of the equity subject to long-term vesting. With a clear right to win and the opportunity to build a $100 billion AUM solution franchise, KKR & Co. Inc. is poised for long-term earnings growth.

3. NewsRoom

Card image cap

KKR to Add Sports Franchise Exposure Through Arctos Acquisition

Feb -06

Card image cap

KKR Forms A$600m Energy Transition Strategic Partnership with HMC

Feb -05

Card image cap

KKR: Private Credit Fears Create Significant Opportunity (Upgrade)

Feb -05

Card image cap

KKR & Co. Inc. (KKR) Q4 2025 Earnings Call Transcript

Feb -05

Card image cap

KKR Executives Downplay Impact of AI Disruption

Feb -05

Card image cap

KKR to Buy Sports Investor Arctos in $1.4 Billion Deal

Feb -05

Card image cap

KKR & Co. Shares Fall as Q4 Earnings Miss Estimates, AUM Rises Y/Y

Feb -05

Card image cap

Compared to Estimates, KKR & Co. (KKR) Q4 Earnings: A Look at Key Metrics

Feb -05

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.20%)

6. Segments

Insurance

Expected Growth: 8.0%

The insurance segment is likely to grow faster than the global average due to increasing demand for insurance products and investment management services. The segment's diversified product portfolio and stable customer base provide a solid foundation for growth.

Asset Management

Expected Growth: 7.5%

The asset management segment is expected to grow in line with the global average, driven by the increasing demand for investment management services from institutional clients. However, market fluctuations may impact revenue growth, hence a slightly lower growth rate than the insurance segment.

Strategic Holdings

Expected Growth: 6.5%

The strategic holdings segment is expected to grow at a slower rate than the global average due to its exposure to market volatility and the performance of its investments. However, the segment's diversified portfolio and KKR's expertise in investment management are expected to mitigate potential downside risks.

Unallocated Impact of Consolidation and Other

Expected Growth: 7.25%

The unallocated impact of consolidation and other segment is assumed to grow in line with the global average, as it is not directly related to KKR's core business. The growth rate is expected to be stable, driven by various accounting and consolidation adjustments.

7. Detailed Products

Private Equity

KKR's private equity business invests in and partners with companies to help them grow and succeed.

Credit

KKR's credit business provides financing solutions to companies, including loans, bonds, and other debt instruments.

Real Assets

KKR's real assets business invests in and manages real estate, infrastructure, and energy assets.

Hedge Funds

KKR's hedge funds business provides investment management services to institutional clients, including pension funds and endowments.

Capital Markets

KKR's capital markets business provides advisory services to companies on capital raising, mergers and acquisitions, and other strategic transactions.

8. KKR & Co. Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

KKR & Co. Inc. operates in a highly competitive industry, but the threat of substitutes is mitigated by the company's diversified portfolio and ability to adapt to changing market conditions.

Bargaining Power Of Customers

KKR & Co. Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's strong brand reputation and high-quality services reduce the likelihood of customers switching to competitors.

Bargaining Power Of Suppliers

KKR & Co. Inc. relies on a network of suppliers to provide services and support to its portfolio companies. While the company has some bargaining power due to its size and reputation, suppliers may still have some negotiating power, particularly in specialized industries.

Threat Of New Entrants

The private equity industry has high barriers to entry, including significant capital requirements and regulatory hurdles. Additionally, KKR & Co. Inc.'s established reputation and network of relationships make it difficult for new entrants to compete effectively.

Intensity Of Rivalry

The private equity industry is highly competitive, with many established players competing for deals and talent. KKR & Co. Inc. must continually innovate and adapt to changing market conditions to maintain its competitive edge.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 68.36%
Debt Cost 7.30%
Equity Weight 31.64%
Equity Cost 12.08%
WACC 8.81%
Leverage 216.06%

11. Quality Control: KKR & Co. Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
BNY Mellon

A-Score: 6.7/10

Value: 4.6

Growth: 6.4

Quality: 5.7

Yield: 5.0

Momentum: 9.0

Volatility: 9.7

1-Year Total Return ->

Stock-Card
BlackRock

A-Score: 5.7/10

Value: 2.2

Growth: 5.3

Quality: 7.9

Yield: 4.0

Momentum: 6.0

Volatility: 9.0

1-Year Total Return ->

Stock-Card
Ameriprise Financial

A-Score: 5.7/10

Value: 4.4

Growth: 8.0

Quality: 7.6

Yield: 2.0

Momentum: 3.5

Volatility: 8.7

1-Year Total Return ->

Stock-Card
Ares Management

A-Score: 4.8/10

Value: 1.1

Growth: 5.7

Quality: 5.5

Yield: 6.0

Momentum: 4.5

Volatility: 6.3

1-Year Total Return ->

Stock-Card
Blackstone

A-Score: 4.8/10

Value: 0.3

Growth: 4.1

Quality: 7.4

Yield: 7.0

Momentum: 3.5

Volatility: 6.7

1-Year Total Return ->

Stock-Card
KKR

A-Score: 4.5/10

Value: 2.9

Growth: 6.6

Quality: 6.3

Yield: 2.0

Momentum: 3.5

Volatility: 5.7

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

103.2$

Current Price

103.2$

Potential

-0.00%

Expected Cash-Flows