Manhattan’s KKR & Co Inc earnings surged 63% on strong capital market business

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Manhattan’s KKR & Co Inc earnings surged 63% on strong capital market business

On Tuesday, KKR & Co Inc., the New York-headquartered American global private equity firm, had reported a 63 per cent upsurge in first-quarter after-tax DE (Distributable Earnings) on a year-on-year basis following a blowout growth on its capital market business, becoming the latest heavy-weight to jump on the bandwagon of a blistering quarterly earnings season which is now expecting to yield a roughly 46 per cent growth in S&P 500 on an annualized basis, well above a prior forecast of a growth of 24 per cent.

On top of that, according to KKR & Co Inc.’s quarterly earnings’ report, the Manhattan-headquartered private equity firm’s after-tax DE (Distributable Earnings), the earnings used for paying out dividends, climbed to $660.2 million from $406.3 million registered at the same time a year earlier, suggesting a distributable earnings per share of 75 cents over its fiscal first quarter that ended on March 31 which had handily beaten Wall Street estimates of 63 cents.

KKR reports 63 per cent earnings growth in first quarter

In tandem, KKR had added that its net income under GAAP (Generally Accepted Accounting Principle) jumped to $1.64 billion on fiscal first quarter compared to a loss clocked at the same time a year earlier.

In factuality, a roaring global equity market that yielded a 24 per cent increase in investment income for KKR to $632.5 million during Q1, 2021, had driven a number of top-tier private investment firms’ earnings over latest quarter including Blackstone Group Inc., the world’s largest private-equity firm, while Carlyle Group Inc.

had also recorded a 23 per cent rise in after-tax DE. Concomitantly, KKR added it had $69 billion worth of unspent capital as of March 31, 2021 and had announced a regular quarterly dividend of $0.145 per share, while its total assets under management grew nearly 50 per cent to $367 billion compared to a quarter earlier with its private-equity, real-estate and infrastructure portfolios climbing as much as 19 per cent, 6 per cent and 11 per cent respectively.

Nonetheless, despite a fairly upbeat quarterly earnings’ report, NYSE-listed shares’ prices of KKR & Co Inc wrapped up the day 1.14 per cent lower to $55.63 a share following a remark from US Treasury’s Janet Yellen who had said earlier in the day that the US Fed should contemplate a gradual hike in interest rate.