KKR Posts Q2 2018 Results: AUM Rises Sequentially

KKR’s earnings per share

KKR & Co. (KKR) reported its second-quarter earnings on July 26. Its EPS was $0.49, which beat analysts’ expectation of $0.45. On May 3, it announced its conversion plan to a corporation, effective July 1. It had total AUM (assets under management) of $191 billion at the end of the second quarter, which was a YoY (year-over-year) growth of 29%.

KKR Posts Q2 2018 Results: AUM Rises Sequentially

KKR’s competitor (XLF) the Blackstone Group (BX) had AUM of $439.4 billion as of June 30. Alternative asset managers the Carlyle Group (CG) and Apollo Global Management (APO) are scheduled to release their earnings for the June quarter on August 1 and August 2, respectively.

KKR’s segment revenues

In the second quarter, KKR posted total segment revenues of $926.2 million compared to $681.6 million in the first quarter. The sequential increase was aided by strong growth in realized performance income and investment income. Higher net total fees and other revenues were also contributors.

On a sequential basis, KKR’s AUM rose $14.9 billion in the second quarter, mainly due to private equity portfolio appreciation, a partnership with FS Investments, fresh inflows into its infrastructure, and leveraged credit strategies.

KKR’s private markets business line had AUM of $102.4 billion in the second quarter, implying a marginal rise from $102.2 billion in the first quarter. The company’s public markets business line ended the second quarter with AUM of $88.8 billion.