KKR began fiscal 2025 with a strong first-quarter performance, underpinned by significant growth across financial and operational metrics, solid capital deployment, and sustained fundraising momentum—demonstrating the strength and resilience of its globally diversified business model.

Fee Related Earnings (FRE) rose 23% year-over-year to $823 million (or $0.92 per adjusted share), with a FRE margin of 69%, reflecting scalable growth and operating efficiency. Total Operating Earnings (TOE) increased 16% year-over-year to $1.1 billion ($1.24 per share), while Adjusted Net Income (ANI) reached $1.0 billion ($1.15 per share), marking a 20% increase. These earnings gains were driven by both strong fee growth and effective deployment of capital.

Assets also continued their upward trajectory, with Assets Under Management (AUM) climbing to $664 billion, up 15% year-over-year, and Fee Paying AUM (FPAUM) rising to $526 billion, a 12% increase. The firm also announced its sixth consecutive annual dividend increase, with the quarterly payout raised to $0.185 per share, or $0.74 annualized.

In its Asset Management segment, KKR posted a 13% year-over-year increase in management fees to $917 million, and a 22% rise in fee-related revenues to $1.2 billion. Monetization activity accelerated, with $566 million in total realized performance and investment income, up nearly 40% from the prior year.

Within Private Equity, AUM expanded 15% year-over-year to $209 billion, bolstered by $11 billion in new capital raised in Q1 and $25 billion over the last twelve months (LTM). The traditional PE portfolio appreciated 4% in Q1 and 11% over the LTM. Meanwhile, Credit & Liquid Strategies reached $284 billion in AUM (+9% YoY), with $14 billion raised in Q1 and $49 billion LTM, supported by strong performance in alternative and leveraged credit. Real Assets showed the fastest growth, with AUM up 27% year-over-year to $171 billion, driven by infrastructure and opportunistic real estate, and supported by $5 billion raised in Q1 ($39 billion LTM).

In its Insurance segment (Global Atlantic), KKR reported $259 million in operating earnings, with a pre-tax ROE approaching 20%. The firm is advancing strategic initiatives to enhance long-term returns, including extending liability duration and increasing alternative allocations, while deepening partnerships, such as with Japan Post Insurance.

Strategic Holdings contributed $31 million in operating earnings in Q1. With 18 companies at quarter-end—now 19 including Karo Healthcare—KKR’s share of revenue stood at $3.8 billion, with $920 million in EBITDA. The segment is expected to scale meaningfully, with earnings projected to exceed $1.1 billion by 2030.

On the capital deployment front, KKR invested $19 billion in Q1 and $88 billion over the LTM. Since the start of the year, over $30 billion in new investments have been closed or committed, more than half of which are outside the U.S.—highlighting the firm’s expanding global footprint, particularly in Asia.

Fundraising remained robust, with $31 billion raised in Q1 and $114 billion over the LTM. KKR’s flagship North America PE Fund XIV had an initial close of $14 billion in April. Private wealth remains a key growth engine, with K-Series AUM more than doubling year-over-year to $22 billion, including $4 billion raised in Q1. Fundraising was well diversified, with less than 20% of capital coming from flagship funds.

KKR’s investment performance remained resilient, with Private Equity up 4% in Q1, Infrastructure gaining 4%, and Alternative Credit increasing 3%, while Leveraged Credit was flat. These returns reflect strong asset selection and disciplined risk management amid macro volatility.

Management underscored the durability of KKR’s earnings model, with nearly 80% of pre-tax earnings over the past year stemming from recurring sources. The firm sees clear visibility into future fee growth, supported by $64 billion of committed capital not yet earning fees—a 50% increase year-over-year. Strategic capital allocation remains focused on long-term EPS growth, with continued investment in core PE, insurance, and strategic M&A, along with share repurchases.

In summary, KKR’s Q1 2025 performance showcased strong momentum across fundraising, deployment, and investment returns, reinforcing confidence in its ability to deliver sustained, long-term value in a dynamic market environment.