KKR looks to deploy $116 billion cash in choppy market after profit boost
Investment giant
KKR
is ready to put its $116 billion of capital to use as market volatility creates fresh opportunities, it said after posting a nearly 20% jump in first-quarter profit on Thursday.
While tariff-driven turbulence has stirred concerns over limited exit opportunities, top KKR executives said its global footprint and asset mix have put it in a better position than expected.
The company could pursue asset sales in Asia and Europe, where the impact has been less severe than in the U.S., co-CEO Scott Nuttall said.
If firms turn to debt amid equity market turmoil, KKR still stands to gain because of its credit investment arm, he said.
The results reflect the structural advantage held by large alternative asset managers, whose diversified portfolios allow them to rely on resilient segments when others face pressure.
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KKR's adjusted net income was $1.03 billion for the three months ended March 31. On a per-share basis, it earned $1.15, in line with expectations, according to estimates compiled by LSEG.
Fee-related earnings, a key source of stability during heightened market volatility, grew 23% to $822.6 million. Assets under management rose 15% to $664 billion, helped by $31 billion of new capital raised.
Shares rose nearly 2% to $116.31. They have fallen 23% this year, compared with a 5% drop in the S&P 500 index.
Rivals Blackstone, Apollo Global and Carlyle have dropped 23.6%, 17.4% and 23.5%, respectively.
RETAIL OUTREACH
KKR is sharpening its focus on retail investors. Earlier this week, the company, along with Capital Group, launched two funds with low fees and minimum investment thresholds, to help retail investors access a blend of public and private credit.
"The opportunity is immense. There is a lot more coming attractions," Nuttall said as the company explores similar products in private equity, real estate, and infrastructure spaces.
A growing number of asset managers is seeking to tap the vast pool of retail investors, a segment that has so far been largely excluded from alternative assets.
KKR's results come weeks after peer Blackstone reported higher-than-expected profit for the first quarter, driven by strength in its private equity and credit businesses.
Apollo is set to report on Friday, with Carlyle scheduled for next week.
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