KKR & Co. on Wednesday reported $61.9 billion in assets under management in the second quarter, up 1.5% from three months earlier and 14% higher than a year ago.
Private equity investments grew 3.8% in value from a year earlier, the company said in a statement.
KKR stands to benefit from an increase in assets under management from new funds, as pension funds and other institutional investors seek better returns and consolidate holdings with fewer alternative fund managers, executives said on a conference call Wednesday.
KKR has about $14 billion in unspent capital, including $12 billion in private equity “dry powder” for buyout deals, Scott Nuttall, the firm’s head of global capital, said on the conference call.
Investment income fell 35% to $239.8 million in the quarter as asset growth slowed, curbing earnings from principal investments. Fee-related earnings rose to $76.1 million from $63.3 million, while gross distributable earnings increased to $103.2 million from $77.1 million.
The firm’s economic net income, which doesn’t comply with U.S. generally accepted accounting principles, rose 32% to $39.6 million in the quarter, from $29.9 million. Revenue climbed 35% to $117.6 million.
KKR and its rival private equity firms are navigating an unstable global economy that’s delaying them selling or taking public some companies they own. Corporations that have held off making strategic acquisitions amid uncertainty are beginning to shop, providing a likely “supplement” to IPOs and secondary sales, Mr. Nuttall said.