KKR & Co.'s assets under management totaled $98.7 billion as of Sept. 30, down 2.9% from three months earlier but up 2.7% year over year, the company reported in its third-quarter earnings release Tuesday.
KKR's private markets AUM totaled $60.8 billion as of Sept. 30, down 3.6% from June 30 but up 2.7% from Sept. 30, 2014.
The company attributed the decrease for the third quarter to limited partner distributions, and somewhat less so, to the declining fair value of the private equity portfolio. The fair value of KKR's private equity portfolio declined 1.4% in the quarter.
Public markets AUM totaled $37.9 billion at the end of the third quarter, down 1.3% from the end of the second quarter but up 2.4% from the end of the year-earlier quarter.
The company attributed the decrease for the quarter to distributions and redemptions across multiple strategies.
KKR reported a net loss under GAAP of $190.6 million for the quarter compared to net income of $376.3 million for the second quarter and net income of $89.9 million in the third quarter of 2014. Total segment revenues showed a loss of $191.8 billion for the quarter compared to a gain of $1.25 billion in the second quarter and a gain of $819 million in the third quarter of 2014.
“Our announcements today, including the introductions of a fixed distribution per quarter and a share buyback program, reflect important changes to our capital management strategy,” said Henry R. Kravis and George R. Roberts, co-chairmen and co-CEOs. “Our strong balance sheet, with approximately $14 billion in assets, allows us to support a meaningful fixed quarterly distribution. We will use incremental retained capital to invest behind our ideas and buy back our units. … These changes, coupled with continued investment performance, will allow us to create significant long-term equity value for our unit holders.”