KKR April-June earnings exceed forecast, jump 46%
Photo Credit: Thinkstock

Alternative asset manager KKR & Co on Thursday reported a 46 percent year-on-year rise in distributable earnings for the second quarter, boosted by selling down stakes in investments like GoDaddy Inc and Gardner Denver Holdings.

In the New York-based firm's first quarter of reporting since converting to a corporation earlier this month, KKR said distributable earnings - the actual cash available for paying dividends - totaled $404.7 million for the three months through June, up from $276.9 million in the quarter a year earlier.

Distributable earnings per share came in at 49 cents, ahead of the consensus forecast for 45 cents, according to FactSet.

KKR, which invests across private equity, real estate and credit markets, posted assets under management of $191.3 billion, up from $176.4 billion in the first quarter.

"In terms of our results, operating fundamentals across the firm remain strong, evidenced by the 29 percent growth in our assets under management and 15 percent growth in our book value per share over the last 12 months," Co-Chairmen and Co-Chief Executives Henry Kravis and George Roberts said in a statement.

Earnings were supported by the company selling portions of its stakes in website domain name provider GoDaddy and industrial machinery maker Gardner Denver - companies in which KKR still holds large positions after taking them public.

As part of its new plan for reporting results, KKR is no longer disclosing economic net income in its earnings statement, which reflects the mark-to-market valuation gains or losses on a portfolio and is traditionally a closely watched earnings metric for private equity firms.

It will, however, still report the metric in filings with the U.S. Securities and Exchange Commission.

KKR also acknowledged $729.4 million of losses on certain investments, which were realized in advance of its July 1 conversion to a corporation from a publicly-traded partnership.

Earlier this month, KKR had issued guidance for losses around $725 million, largely related to legacy energy and credit investments.

Leave Your Comment(s)