KKR’s assets increase 5.4% for quarter, 12% for year

KKR & Co. reported $233.8 billion in assets under management as of Sept. 30, a 5.4% increase from three months earlier and up 12% from a year earlier.

The alternative investment firm attributed the growth in AUM to fundraising in its Asia real estate infrastructure and private equity strategies as well as core private equity, U.S. real estate, and leveraged and private credit strategies.

Robert H. Lewin, KKR's chief financial officer noted during an earnings call Oct. 30 that KKR raised $8.7 billion in the third quarter. KKR has $67 billion of dry powder, a high point, he said.

"We really did lean in when the market was dislocated," Mr. Lewin said. "So, this dry powder is particularly noteworthy given the level of capital investment we have made year-to-date."

KKR's private markets business invested a record $6.2 billion in the third quarter.

KKR's Asia private equity unit was the busiest geography for transactions in the third quarter, said Craig Larson, KKR's head of investor relations during the earnings call.

KKR's private markets business had $135.8 billion in AUM as of Sept. 30, up 8.8% June 30 and up 18.7% from Sept. 30, 2019. Public markets had $98 billion in AUM as of Sept. 30, up 1.2% from three months earlier and a 4.3% increase from a year earlier.

The increase in public markets AUM from June 30, includes $4.3 billion in redemptions from fund investors. The year-over-year growth in public markets assets under management includes KKR's pro rata portion of AUM of $2.2 billion managed by global hedge fund manager Marshall Wace due to an additional 5% interest acquired by KKR on Nov. 22, 2019.

GAAP net income attributable to KKR was $1.1 billion in the quarter ended Sept. 30.