Scott Nuttall, KKR's co-CEO, speaking on an earnings call, noted that "investors are re-upping to funds where they've seen strong performance," even against a backdrop of less vibrant market conditions over the past year or so.
Asset owners with mature private market programs "understand that these are going to be very good vintage years and don't want to miss out," a conviction founded in part on experiences during the global financial crisis when some institutions pulled back and came to regret doing so, Nuttall said.
KKR executives on the earnings call expressed confidence that market segments such as infrastructure, wealth management and private credit have continued room to run, with particularly strong prospects in regions such as Asia.
Craig Larson, partner and head of investor relations, on the same earnings call said the firm's infrastructure AUM has surged to $60 billion currently from $17 billion only three years ago — all organic growth — with Asia quickly becoming a significant part of that story.
Capital raised from asset owners in the Asia-Pacific region for KKR infrastructure funds has jumped to $10 billion today from a standing start four years ago, Larson said.
More broadly, Larson noted, KKR's AUM in Asia has surged to $65 billion at present, up from $21 billion at the end of 2019, with the portion of those totals in private equity strategies dropping to 51% from 90%.
"So you've seen meaningful growth for us in the region as well as meaningful diversification across the footprint," Larson said.