Saturday, 26 July 2014
Last updated 21 hours ago
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.
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…