KKR & Co. Inc.

KKR · NYSE · USD

Analysis

Last 4 earnings calls · through Q2 FY2026

KKR's recurring fee engine keeps setting records, and management now says it will meaningfully exceed its 2026 targets, while the earnings measure it spent two years defending has been quietly retired. The value is real and building; the question is when it lands. How much of the $18 billion in unsold gains could be sold this year?

  • KKR beat a three-year fundraising goal with two quarters to spare.

    Capital raised since 2024 passed $305 billion, beating the target the firm set for the end of 2026, and $72 billion is committed but not yet earning fees. Fees are charged on committed money for years, so it arrives whatever markets do. How much of the $72 billion not yet earning fees turns on this year?

  • The 2026 earnings number KKR spent two years defending is gone.

    In February management still backed $7-plus per share; by July it retired the number, calling it "a distraction." That target leaned on selling investments, so the earnings have not vanished, just moved to a date it will not pin down.

  • Part of Global Atlantic's profit is deliberately invisible.

    The insurer counts its alternative investments only when they pay cash, so gains the portfolio earns along the way never reach reported profit, and management says that choice is permanent. Insurance earnings would be higher the other way. How large is Global Atlantic's alternative portfolio as a share of its total book?

Bullish
  • Demand for private capital holds
    Demand for private markets money has held up better than the headlines suggest, and the fees from capital already raised keep compounding regardless of what happens next.
  • Fees follow committed capital
    Because management fees switch on only when committed capital is invested, a large part of the firm's revenue is set by money already raised rather than by next quarter's sales.
  • Exit pipeline and unrealized gains
    The portfolio is mature and holds large unrealized gains, which means KKR can choose when to sell rather than being forced to accept whatever price the market offers.
Bearish
  • Profit target depends on exits
    The bear case is about timing: management has already lowered expectations for the year because sale processes that were in the budget have slipped.
  • Insurance competition and pricing
    Competition for annuities and tight credit spreads have made new insurance business less profitable, so KKR is writing less of it until pricing improves.
  • Earnings swing with asset values
    A meaningful share of reported profit comes from investment gains and performance fees, so results can fall quickly when asset markets weaken even if fee income holds.
See the full bull & bear case
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Product segmentsGeography
FY2025 · USD

How KKR & Co. turned $19.5B of revenue into $490.2M of operating income.

Revenue
Insurance Segment$11.6B▼ 20.71% YoY
Asset Management And Strategic Holdings Segments$7.8B
Asset Management Segment$4.1B▼ 43.14% YoY
Total revenue$19.5B
Operating income$490.2M2.5%
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