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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.

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1.b. Last Insights on KKR

KKR & Co. Inc.'s recent performance has been impacted by several factors. Despite strong Q2 earnings, with AUM reaching $686B and fee-related earnings rising 17.4%, the company's valuation has been deemed to reflect much of the good news. A recent downgrade by analysts cites a rich valuation as a concern. Additionally, Italy's standoff with KKR over the country's telecom network and a $6.5 billion asset-backed financing raise may be viewed as neutral or slightly negative. KKR's acquisition of OSTTRA for $3.1 billion and launch of Galaxy Container Solutions also warrant attention.

1.c. Company Highlights

2. KKR's Q3 Earnings: A Strong Performance Across the Board

KKR reported a robust Q3 with fee-related earnings of $1.15 per share, total operating earnings of $1.55 per share, and adjusted net income of $1.41 per share, all of which are among the highest reported in the company's history. The actual EPS of $1.41 beat estimates of $1.3. Management fees were $1.1 billion, up 19% year-over-year, driven by fundraising success and capital deployment. Total transaction and monitoring fees were $328 million, with capital markets fees at $276 million.

Publication Date: Nov -08

📋 Highlights
  • Strong Q3 Performance:: Fee-related earnings (FRE) of $1.15/share, total operating earnings (TOE) of $1.55/share, and adjusted net income (ANI) of $1.41/share, all record highs.
  • Insurance Segment Growth:: Operating earnings of $305 million (with $41 million actuarial benefit) and total insurance economics of $1.4B YTD, up 16% YoY.
  • Capital Mobilization:: Raised $43 billion in Q3 (2nd-highest in history) and deployed $26 billion, with $15 billion from Global Atlantic in credit.
  • 2026 Guidance Confidence:: Projects $4.50+ FRE/share and $7–$8 ANI/share, supported by 70%+ target of $300+ billion fundraising achieved in 7 quarters.
  • Insurance Economics Expansion:: $1.8B LTM insurance economics with $200 million annual accrued income expected to hit P&L in 2027–2028, targeting 20%+ ROE.

Insurance Segment Performance

The company's insurance segment operating earnings were $305 million, with a $41 million benefit from General Account's annual actuarial assumption review process. The total economics of its insurance business, including segment insurance operating earnings and economics in the Asset Management segment, were approximately $1.4 billion year-to-date, up 16% compared to the same period last year. KKR is looking to scale these economics, leveraging its investment platform, origination reach, and ability to attract third-party capital.

Fundraising and Capital Deployment

KKR raised $43 billion of capital in Q3, the second-highest fundraising quarter in its history, with $15 billion from Global Atlantic within credit. The company invested $26 billion of capital in Q3, with activity broad-based across geographies and asset classes. The private wealth business raised $4.1 billion in K-Series vehicles in Q3, with $32 billion of K-Series AUM.

Valuation and Outlook

With a P/E Ratio of 32.79 and a P/B Ratio of 1.43, the market is pricing in significant growth expectations. Analysts estimate next year's revenue growth at 28.4%. KKR's guidance for 2026 remains positive, with expectations of $4.50+ in FRE per share and $7-8 in after-tax ANI per share. The company's embedded gains across the firm are $17 billion, up 10% from a year ago, providing a constructive outlook for future monetizations.

Growth Potential

KKR sees significant growth potential internationally, particularly in Asia, where AUM has grown from $12 billion to over $80 billion. The company expects Asia to grow faster than the rest of KKR, driven by opportunities in private equity, infrastructure, real estate, credit, and insurance. The insurance business is a growing area, with $290 billion to $300 billion of AUM from insurers, and KKR is having more intimate discussions with insurance clients.

Capital Markets Business

The Capital Markets business is expected to generate hundreds of millions of dollars of annual opportunity, materializing over the next couple of years. KKR reported $328 million in total transaction fees and $278 million in Capital Markets segment fees for 3Q, with a "pretty good baseline" for growth, assuming elevated M&A activity.

3. NewsRoom

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KKR Announces New Partners and Managing Directors

Dec -03

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Capital Group and KKR to Advance Strategic Partnership, with Innovation Across Retirement Solutions and Model Portfolios

Dec -03

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KKR-backed Serentica may raise up to $8 bln for India green energy expansion

Nov -27

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KKR Further Invests in Lighthouse Learning to Support Next Phase of Growth

Nov -25

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KKR Consortium Sold Luxury Hyatt Hotel in Tokyo for Over $800 Million, Sources Say

Nov -25

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A Rare Buying Opportunity: Blue-Chip 11-12% Yields Too Cheap To Ignore

Nov -24

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KKR to Present at the Goldman Sachs 2025 Financial Services Conference

Nov -21

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Apollo vs. KKR & Co.: Which Asset Manager Offers Better Upside Now?

Nov -17

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: 3.9

Growth: 6.6

Quality: 6.8

Yield: 5.0

Momentum: 8.5

Volatility: 9.7

1-Year Total Return ->

Stock-Card
Ameriprise Financial

A-Score: 5.9/10

Value: 5.1

Growth: 7.8

Quality: 7.8

Yield: 2.0

Momentum: 4.0

Volatility: 8.7

1-Year Total Return ->

Stock-Card
BlackRock

A-Score: 5.8/10

Value: 2.2

Growth: 5.3

Quality: 7.5

Yield: 4.0

Momentum: 7.0

Volatility: 9.0

1-Year Total Return ->

Stock-Card
Blackstone

A-Score: 5.2/10

Value: 0.3

Growth: 4.1

Quality: 7.5

Yield: 7.0

Momentum: 6.0

Volatility: 6.3

1-Year Total Return ->

Stock-Card
Ares Management

A-Score: 4.9/10

Value: 2.4

Growth: 5.7

Quality: 4.9

Yield: 6.0

Momentum: 4.0

Volatility: 6.3

1-Year Total Return ->

Stock-Card
KKR

A-Score: 3.9/10

Value: 1.7

Growth: 6.6

Quality: 3.8

Yield: 2.0

Momentum: 4.0

Volatility: 5.3

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

128.43$

Current Price

128.43$

Potential

-0.00%

Expected Cash-Flows