KKR & Co. Inc. 6.875% Subordina

What they do

KKR manages alternative assets across private equity, real assets, and credit and liquid strategies, earning management fees and performance revenues. Through its Global Atlantic subsidiary, it provides retirement and life insurance solutions, which contributed $219 billion of AUM as of December 2025. The firm also holds strategic investments on its balance sheet via the Strategic Holdings segment.

Revenue drivers

• Asset Management — Largest segment by AUM: $322 billion in Credit and Liquid Strategies, $229 billion in Private Equity, $192 billion in Real Assets. Generates recurring management fees and fee-related performance revenues.
• Insurance — Global Atlantic manages $219 billion in AUM and contributes premiums and investment income from retirement and life insurance products.
• Strategic Holdings — Investment income from balance sheet investments in portfolio companies and other assets, reported as a separate segment.

Recent performance

In Q2 2026, KKR reported record Fee Related Earnings, Total Operating Earnings, and Adjusted Net Income per share on both quarterly and trailing twelve-month bases. It described the quarter as its strongest monetization quarter ever with record new capital inflows over the past 12 months. Q1 2026 revenue was $4.32 billion, and full-year 2025 revenue was $19.46 billion with net income of $2.37 billion.

Strategy

KKR aims to grow long-term, durable, recurring earnings by expanding across large addressable markets. It has diversified from a US-centric traditional private equity firm to a global multi-asset manager, with traditional private equity now less than 25% of total AUM. The firm leverages its integrated platform for sourcing, capital raising, and capital markets activities, and emphasizes collaboration across business lines and geographies.

Risks

• Market and economic conditions — Difficult market conditions, including interest rates, inflation, and credit availability, can materially and adversely affect KKR's business.
• Investment performance — Poor returns across its funds and balance sheet investments could reduce management fees, performance revenues, and strategic holdings income.
• Insurance regulatory risk — Global Atlantic's insurance operations are subject to regulatory, actuarial, and reserving risks that could impact financial results.
• Debt and leverage — As of March 2026, total liabilities were $331.28 billion, and the company took on additional financial obligations per its July 2026 8-K filing.

Outlook

Management expressed confidence in KKR's long-term positioning and ability to deliver differentiated outcomes for clients and shareholders. They highlighted strong monetization and record capital inflows as momentum indicators. The firm continues to focus on scaling its integrated platform and expanding its insurance and asset management offerings.