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Jun 30, 2020
KKR Q2 2020 Earnings Report
Reported second quarter 2020 results, demonstrating resiliency and growth across key financial metrics despite market volatility.
Key Takeaways
KKR reported GAAP Net Income Attributable to common stockholders of $698.6 million, with After-tax Distributable Earnings of $325.6 million. The company scaled its businesses organically, raising a record amount of capital and strategically investing on behalf of its limited partners.
After-tax Distributable Earnings Per Adjusted Share of $0.39 was flat compared to the second quarter of 2019.
Assets Under Management and Fee Paying Assets Under Management were $222 billion and $160 billion, up 8% and 6%, respectively, over the last 12 months.
New capital raised in the quarter was $16 billion, a record quarterly figure for KKR.
KKR announced the acquisition of Global Atlantic Financial Group Limited, expected to close in early 2021.
KKR
KKR
Forward Guidance
This release contains certain forward-looking statements regarding dividends, share repurchases, and the acquisition of Global Atlantic, based on KKR’s beliefs, assumptions and expectations. These are subject to risks and uncertainties, and KKR undertakes no obligation to update them.
Positive Outlook
- declaration and payment of dividends in future quarters
- the timing, manner and volume of repurchase of common stock pursuant to its repurchase program
- the transaction to acquire all outstanding shares of Global Atlantic and expected timing of closing of the acquisition
- the severity and duration of the COVID-19 pandemic
- federal, state and local governmental responses to the pandemic
Challenges Ahead
- failure to realize the anticipated benefits within the expected timeframes from the planned acquisition of Global Atlantic
- unforeseen liabilities or integration and other costs of the Global Atlantic acquisition and timing related thereto
- availability and cost of financing to fund the acquisition
- ability to syndicate to potential co-investors
- changes in Global Atlantic's business