KKR Earnings Sink 26% in First Quarter
Private equity giant KKR & Co. reported a 26% drop in first-quarter earnings as asset sales slowed and the company took a hit from the pandemic.
KKR’s Financial Performance
KKR reported a net income of $310 million for the first quarter of 2023, down from $420 million in the same period a year earlier. The company’s total revenue fell to $1.4 billion from $1.6 billion.
The company’s assets under management (AUM) also declined to $212 billion from $223 billion in the same period a year earlier. KKR attributed the decline to lower performance fees and lower realizations from asset sales.
KKR’s Investment Activity
KKR’s investment activity was also down in the first quarter. The company invested $2.3 billion in new investments, down from $3.2 billion in the same period a year earlier.
The company also sold $2.7 billion in assets, down from $3.5 billion in the same period a year earlier. KKR attributed the decline to the pandemic, which has caused many companies to delay or cancel asset sales.
KKR’s Outlook
Despite the decline in earnings, KKR remains optimistic about the future. The company said it expects to see a rebound in the second half of the year as the economy recovers from the pandemic.
KKR also said it is continuing to invest in new opportunities and is actively looking for new investments. The company said it is focusing on investments in technology, healthcare, and consumer-related businesses.
KKR’s Dividend
KKR also announced that it will pay a quarterly dividend of $0.30 per share. The dividend is unchanged from the previous quarter.
KKR’s Stock Performance
KKR’s stock price has been volatile in recent months. The stock is up 4.5% year-to-date, but is down from its 52-week high of $37.20.
KKR’s Future Prospects
Despite the decline in earnings, KKR remains optimistic about the future. The company is continuing to invest in new opportunities and is actively looking for new investments.
The company is also paying a quarterly dividend, which is a sign of confidence in its future prospects. KKR’s stock price has been volatile in recent months, but the company remains optimistic about the future.
Overall, KKR’s first-quarter earnings were down due to the pandemic, but the company remains optimistic about the future. KKR is continuing to invest in new opportunities and is actively looking for new investments. The company is also paying a quarterly dividend, which is a sign of confidence in its future prospects.