More than 70% of KKR's fundraising last year was in its real assets and credit businesses, "strategies that are often front of mind for our clients in rising interest rate, as well as inflationary, environments," Mr. Lewin said.
In answering an analyst's question, co-CEO Scott C. Nuttall acknowledged that the second half of 2022, some of its limited partners, predominantly U.S. pension funds, "were struggling with allocations (to new funds) on the back of a reduced denominator."
But "as the calendar has turned … some of that has softened and we're having conversations that indicate they're (LPs are) looking to put capital to work," Mr. Nuttall said.
Outside the U.S., several non-U.S. investors, including sovereign wealth funds and insurance companies in the Middle East and the Asia-Pacific region, "are very forward leaning and trying to figure out how to invest into this environment," he said.
KKR's largest business, credit and liquid opportunities had $220.2 billion in AUM as of Dec. 31, up 3.4% from Sept. 30 and up 3.2% from Dec. 31, 2021. Private equity had $165.1 billion in AUM at the end of the fourth quarter, flat from three months earlier and down 5% year over year.
KKR's fastest growing business was real assets, said Craig Larson, partner and head of investor relations, during the same earnings call. Real asset management fees increased more than 50% in 2022 from the previous year, Mr. Larson said.
Real assets had $118.6 billion in AUM as of Dec. 31, a 1% increase from the end of the prior quarter and up 42.3% from the end of the year-earlier quarter.
KKR suffered a GAAP net loss of $910 million in 2022.
