{"id":37917,"date":"2023-05-08T11:10:01","date_gmt":"2023-05-08T11:10:01","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/kkr-posts-26-drop\/"},"modified":"2023-05-08T11:15:43","modified_gmt":"2023-05-08T11:15:43","slug":"kkr-posts-26-drop","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/kkr-posts-26-drop\/","title":{"rendered":"KKR posts 26% drop in Q1 earnings, beating expectations"},"content":{"rendered":"<p>By Chibuike Oguh<\/p>\n<p>NEW YORK (Reuters) &#8211;     KKR &amp; Co Inc said on Monday its after-tax distributable earnings fell 26% year-on-year in the first quarter due to a sharp drop in asset sales from its private equity portfolio and lower transaction fees.<\/p>\n<p>KKR and other private equity firms cashed out on fewer investments during the quarter as inflation, higher interest rates, geopolitical tensions and financial market volatility weighed on dealmaking.<\/p>\n<p>After-tax distributable earnings, which represents the cash available for paying dividends to shareholders, fell to $719.3 million, down from $974 million posted a year. That translated to after-tax distributable earnings of 81 cents per share, which exceeded the average analyst estimate of 74 cents per share, according to Refinitiv data.<\/p>\n<p>KKR said its profit from asset sales fell 70% to $172.7 million. That result was in line with its peers, Blackstone Inc and Carlyle Group Inc, which also reported slower asset divestments in the first quarter.<\/p>\n<p>Transaction fees from KKR&#8217;s capital markets division slumped by more than 60% to $102 million because of fewer deals across its portfolio companies. <\/p>\n<p>KKR reported 18% growth in management fees to $738.2 million, up from $624.9 million a year earlier as the firm accumulated more assets. KKR&#8217;s earnings from investing the assets of its insurance franchise, annuities provider Global Atlantic, rose 43% to $205.1 million.<\/p>\n<p>For its quarterly fund performance, KKR said its private equity portfolio gained 2%, infrastructure funds added 7%, leveraged credit funds grew 4%, while opportunistic real estate funds fell 3%. In comparison, the private equity funds of Blackstone and Carlyle appreciated by 2.8% and 1%, respectively.<\/p>\n<p>Under generally accepted accounting principles, KKR posted net income of $322.7 million in the first quarter due to strong growth in revenue from its insurance and asset management businesses. That compared with a net loss of about $10 million in the same quarter a year earlier.<\/p>\n<p>KKR raised $12 billion of new capital and made $10 billion of new investments in the first quarter. It declared a dividend of 16.5 cents per share.<\/p>\n<p \/>\n<p> (Reporting by Chibuike Oguh in New York; Editing by Jacqueline Wong)<\/p>\n<p><a href=\"http:\/\/lynettelockhart.com\/client\/kkr-posts-26-drop\/file-photo-trading-information-for-kkr-co-is-displayed-3\/\"><img decoding=\"async\" src=\"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ470BO-VIEWIMAGE.jpg\" alt=\"tagreuters.com2023binary_LYNXMPEJ470BO-VIEWIMAGE\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Chibuike Oguh NEW YORK (Reuters) &#8211; KKR &amp; Co Inc said on Monday its after-tax distributable earnings fell 26% year-on-year in the first quarter due to a sharp drop in asset sales from its private equity portfolio and lower transaction fees. KKR and other private equity firms cashed out on fewer investments during the [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":37918,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1213],"tags":[],"class_list":["post-37917","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-business"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ470BO-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/37917","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=37917"}],"version-history":[{"count":1,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/37917\/revisions"}],"predecessor-version":[{"id":37919,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/37917\/revisions\/37919"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/37918"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=37917"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=37917"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=37917"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}