KKR Profit Falls 74%

Jul 26 2013 | 11:27am ET

Kohlberg Kravis Roberts' second-quarter earnings plummeted as returns on its private-equity investments slowed.

The New York-based firm said that its economic net income dropped 74% to $144.4 million. KKR blamed the mere 0.9% increase in the value of its p.e. portfolio for the slowdown, while trumpeting stronger metrics.

The firm said more than 80% of its p.e. assets have now cleared their performance hurdle, allowing it to take its share of the profits. Carried interest cash more than quadrupled year-on-year, to $161.9 million. KKR also pointed to its second-quarter distribution, which more than tripled due to its decision to hand out 40% of its balance-sheet income every quarter.

"Our realization activity in the second quarter drove the highest cash carry we have reported since going public, contributing to a quarterly distribution of 42 cents per unit," the firm said.


In Depth

U.S. Treasury Moves on Reinsurance Loophole

Apr 24 2015 | 5:11pm ET

The U.S. Treasury Department has released proposed rules aimed at limiting the ability...

Lifestyle

Artivest Announces Funding Round Led by KKR & Co.

May 4 2015 | 9:56am ET

Artivest, a startup that provides individual investors with access to private equity...

Guest Contributor

Starting a ‘40 Act Fund Family? Don’t Forget Your Board

Apr 30 2015 | 7:18am ET

The convergence of the hedge fund and mutual fund worlds continues unabated, as...

 

Editor's Note