KKR & Co. reported virtually flat asset growth in the first quarter, with assets under management at $61 billion — only $45 million higher than the previous quarter, according to the firm's Wednesday earnings report.
However, assets rose 11.6% from a year earlier.
KKR's fee-paying assets dropped 0.6% in the latest quarter to $45.7 billion but were up 7.5% from March 31, 2010.
The firm's strong 12-month growth is the result of 6.5% appreciation in the value of private equity investments and increased fees in the private markets segment of KKR's business, according to the report.
“The first quarter represented a good start to 2011 for each of our businesses,” Henry R. Kravis and George R. Roberts, co-founders, co-chairmen and co-CEOs of KKR, said in a statement accompanying the earnings report. “In particular, this quarter's strong financial results benefited from a growing number of monetization and exit events across our private equity portfolio, which generated the most distributable cash carry we have had in a quarter since going public.”
Messrs. Kravis and Roberts also said that in the first quarter, the company's credit investment strategies “achieved meaningful outperformance … and continue to outperform benchmark indices.”
KKR's GAAP net income was $159.6 million in the first quarter, compared to $180.6 million in the fourth quarter and $113.8 million in the first quarter 2010, according to the earnings report.