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Insights on KKR’s Capital Market Segment

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Rise in transaction fees

KKR & Co.’s (KKR) Capital Market division has witnessed an increase in its transaction fees in 2Q17, standing at $93.6 million compared to $39.2 million in 2Q16. Over the last 12 months (or LTM), the company’s Capital Market division has generated ~$300 million of transaction fees, reflecting a substantial 65% increase from the transaction fees generated in 2016.

This $300 million of transaction fees was contributed by three regions: Asia-Pacific, North America, and Europe. Asia-Pacific contributed 18%, North America contributed 63%, and Europe contributed 19%.

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Return on invested capital

KKR & Co. (KKR) has delivered a return of ~1.3% on its invested capital. These alternative asset managers (XLF) have delivered the following returns on their invested capital:

  • Carlyle Group (CG): 0.05%
  • Apollo Global Management (APO): ~14.2%
  • Blackstone (BX): 7.5%

Total-debt-to-total-assets ratio

The total-debt-to-total-assets ratio of KKR & Co. (KKR) is ~49.1%. The total-debt-to-total-assets ratios of several alternative asset managers (XLF) are as follows:

  • Apollo Global Management (APO): ~37.7%
  • Carlyle Group (CG): ~52.3%
  • Blackstone (BX): ~33.7%
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