KKR's Q3 profit rises on higher fee income, monetization

Overview

• Investment firm reported record quarterly profit

• Quarterly adjusted net income jumped 29% to $1.6 billion, or $1.78 per share

• KKR expects to return more than $40 bln to clients in 2026

Outlook

• KKR expects USI sale to close in Q4 2026 and generate about $2.0 bln ANI, or more than $2.00 per share

• KKR expects to return more than $40 bln to clients in 2026, exceeding its previous annual record by more than 50%

Result Drivers

• FEE-RELATED EARNINGS – LTM growth was driven by higher management fees from organic FPAUM growth and higher fee-related performance revenues

• MONETIZATION REVENUE – Co said record capital returned to clients drove growth in monetization revenue

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the investment management & fund operators peer group is "buy"

• Wall Street's median 12-month price target for KKR & Co Inc is $122.00, about 26.5% above its November 6 closing price of $96.48

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 15 three months ago

Reuters Recommended Reads

• Nov 9 - KKR profit hits record as asset sales, fees surge

• Nov 6 - Brookfield Asset Management Q3 fee-related earnings rise on Oaktree acquisition

• Nov 6 - Brookfield Infrastructure Q3 FFO rises 10% on data growth

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)