KKR & Co’s assets under management totaled $126 billion as of March 31, up 5% from Dec. 31 and up 17% from March 31, 2015, said the alternative investment firm’s first-quarter results released Monday.
The increase was attributed to new capital raised in private equity, credit and hedge funds, including $3.35 billion for KKR Special Situations Fund II, the earnings statement said. Total AUM includes about $18 billion in new capital commitments that are not yet earning fees.
The new capital was partially offset by distributions to limited partners in KKR’s private equity funds; distributions and redemptions in KKR’s credit and hedge fund businesses; and a decrease in the fair value of KKR’s private equity and hedge fund businesses. For example, in the 12 months ended March 31, KKR’s public markets businesses distributed $6.5 billion, including $3.4 billion in redemptions, and $4.9 billion from its private markets businesses.
KKR reported a GAAP net loss for the first quarter of $329.9 million, down from a net gain of $32.3 million in the fourth quarter and from a net gain of $270.5 million in the year-earlier quarter.
KKR executives attributed the GAAP net loss to mark-to-market investment losses.
Management fees were $194.6 million in the first quarter, down less than 1% from the fourth quarter and up 12% from the first quarter of 2015. At the same time, KKR suffered a total performance fee loss of $124.9 million, down 62% from the fourth quarter and down 72% from the year-earlier quarter.
