Friday, 24 October 2014
Last updated 6 hours ago
Apr 25 2013 | 11:03am ET
Kohlberg Kravis Roberts' first-quarter earnings took a hit as its funds trailed the broader markets.
The New York-based private equity giant said that economic net income fell 10.9% in the first quarter to $647.7 million. Under generally-accepted accounting principles, KKR's profit actually rose by $3 million year-on-year to $193.4 million.
KKR's private-equity portfolio gained 5.9% on the quarter—better than most hedge funds, but a far cry from the more than 10% the Standard & Poor's 500 Index advanced by during the year's first three months. Assets under management rose almost 4% to $78.3 billion.
Fee-based earnings rose to $88 million from $73.4 million, and realized performance fees jumped to $52.9 million from $44.9 million.
The firm said it would pay a 27-cent dividend, part of its new policy of paying investors 40% of balance-sheet earnings each quarter. KKR's distributable earnings jumped 77% on the quarter to $290.6 million as the firm sold some portfolio companies.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
David and James Hamman launched their fundamental Livestock and Grains Program in March of 2010 but it really was decades in the making.