KKR & Co. reported assets under management of $195 billion as of Sept. 30, up 2% from June 30 and up 27% from Sept. 30, 2017, said the alternative investment firm's earnings release Thursday.
KKR attributed the increase in the third quarter primarily to an increase in the value of its private equity portfolio and new capital raised in the firm's leveraged credit and private credit strategies. During the third quarter, KKR closed its latest flagship infrastructure fund, the $7.4 billion KKR Global Infrastructure Investors III. KKR attributed the increase over the 12 months ended Sept. 30 in part to $38 billion in new capital raised during that period.
During the quarter, KKR converted to a corporation from a limited partnership, effective July 1.
This change resulted in KKR obtaining a partial step-up in tax basis — an adjustment in the value of an asset that has appreciated for tax purposes — on some assets as they are sold or the tax basis is amortized. On July 1, KKR recorded an estimated net tax benefit and estimated net deferred tax asset of $257.1 million.