KKR & Co.’s assets under management were $131.1 billion as of Sept. 30, flat from three months earlier and up 17% from a year ago, according to the alternative investment manager’s third-quarter financial results released Tuesday.
KKR reported new capital raised of more than $28 billion for the firm’s private equity, credit and hedge fund businesses, and an increase in the fair value of KKR’s private equity and credit portfolios. These increases were offset by distributions to limited partners of KKR’s private equity funds and distributions in its credit and hedge fund solutions businesses.
The AUM of KKR’s private market businesses was $75.2 billion, down less than 1% from June 30. During the third quarter, the private market segments raised $1.9 billion in new capital, distributed $4.6 billion and had portfolio valuation increase of $2.5 billion. Assets of KKR’s public markets businesses were $55.9 billion, up less than 1% from three months earlier.GAAP total net income was $809.6 million for the quarter ended Sept. 30, 2016, compared to a $1.1 billion loss for the third quarter of 2015. The investment income gains were primarily due to an increase in the value of KKR's investment portfolio, with the most significant increase from KKR’s private equity portfolio. The loss in the third quarter of 2015 was primarily due to a decrease in the value of KKR's private equity and collateralized loan obligation portfolios.
KKR earned $201.5 million in management fees in the third quarter, down 1% from the second quarter and up 11% from the third quarter of 2015. KKR earned $111.4 million in transaction fees, up 62% from the previous quarter and up 81% from the quarter ended Sept. 30, 2015. Monitoring fees were $11 million, down from $29 million in the second quarter and $25 million in the third quarter of 2015.
Meanwhile, KKR gave $47.4 million in fee credits, compared to $39 million in the second quarter and $23.3 million in the quarter ended Sept. 30, 2015.
Realized carried interest in the quarter was $350.5 million, up 15% the quarter ended June 30 and up 32% from the third quarter of 2015.