KKR Invests Record $6.2 Billion With Turmoil Spurring Deals
A pedestrian approaches the Stirling Square commercial real-estate complex housing the offices of KKR & Co. in London, U.K. (Photographer: Chris J. Ratcliffe/Bloomberg)

KKR Invests Record $6.2 Billion With Turmoil Spurring Deals

KKR & Co. deployed a record amount of capital in the third quarter, taking advantage of turmoil spurred by the Covid-19 pandemic.

The firm invested about $6.2 billion in markets across private equity, infrastructure and real estate, New York-based KKR said Friday in a statement. That figure surpassed its previous peak of $5.5 billion in the second quarter.

This year “is on pace to be the most active deployment and fundraising year in our history,” co-Chief Executive Officers Henry Kravis and George Roberts said in the statement.

KKR has been one of the industry’s busiest dealmakers during the pandemic and has said the crisis will be an inflection point for its business. In July, the firm agreed to buy retirement and life insurance provider Global Atlantic Financial Group in a deal that could be valued at more than $4 billion, giving it a major presence in the insurance industry and adding long-term capital.

Among third-quarter highlights:

  • Distributable earnings of 48 cents a share were 8 cents higher than the average estimate of 17 analysts surveyed by Bloomberg.
  • KKR brought in $8.67 billion from investors. Year-to-date the total is $32.2 billion.
  • Assets under management increased about 5% from the second quarter to $234 billion. Fee-paying assets rose about 11% to $177 billion.
  • Fee-related earnings climbed 27% from a year earlier.

KKR shares slid 0.3% to $34.69 at 10:12 a.m. in New York. They had climbed about 21% this year through Thursday.

©2020 Bloomberg L.P.

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