KKR attracted a record amount of cash in the second quarter as investors looked to capitalize on the turmoil unleashed by the COVID-19 pandemic.
The New York-based alternative asset manager raised $16.4 billion, it said Tuesday, surpassing its previous peak from the fourth quarter of 2017. The boost was driven by demand for buyout and infrastructure strategies in Asia, as well as real estate and credit dislocation funds.
Some private equity firms are bringing in money at a rapid clip amid this year’s market upheaval as investors search for yield. Blackstone also benefited from a strong fundraising quarter. Private equity executives have been touting their ability to navigate the coronavirus crisis, and the industry is flush with $1.56 trillion of unspent money, according to researcher Preqin.
KKR, founded by George Roberts and Henry Kravis, held $67 billion in dry powder at the end of June and has been one of the industry’s busiest dealmakers during the pandemic. The buyout giant is approaching $11 billion in capital for what could be a U.S. private equity firm’s largest ever fund.
The 20 top-performers have generated gains well over 50% in the first seven months of the year.
Here are KKR’s second-quarter financial highlights:
- Distributable earnings of 39 cents beat the average estimate of 36 cents among analysts surveyed by Bloomberg.
- Fee-related earnings fell 15% from a year earlier to $244.6 million.
- KKR and its rivals have seen their portfolios bounce back, aided by the stock market’s recovery from its March low. Drug developer BridgeBio Pharma rose 12%.
- Helped by several big asset sales, realized performance income jumped 52% from a year earlier to $355 million.
- Assets under management increased 7.1% from the prior quarter to $221.8 billion. Fee-paying assets rose less than 1% to $160.3 billion.
