Thursday, 24 July 2014
Last updated 37 min 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.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…