KKR Profit Falls As Fee Income Jumps

Lower returns cut into Kohlberg Kravis Roberts’ first-quarter earnings, even as its fee income soared.

KKR said its economic net income for the year’s first three months was $630.3 million, 3% lower than in the year-earlier period. The decline was attributed to the firm’s private equity funds, which returned 4.5% on the quarter, compared to 7% in the first quarter of last year.

Still, the profit was enough to top analysts’ estimates, and KKR’s other numbers were much more impressive.

The firm’s fee-related earnings rose by nearly three-quarters to $151.7 million, as assets under management jumped to $102.3 billion from $94.3 billion at the end of last year. KKR said it would pay a 43 cent dividend for the quarter, nearly 60% higher than last year.