(Feb 5): KKR & Co reported a drop in fourth-quarter (4Q) profit, missing Wall Street estimates, as asset sales declined and the firm took a charge for one of its private equity funds in Asia.
Adjusted net income tumbled 15% to US$1 billion, or US$1.12 a share, New York-based KKR said in a statement on Thursday. That fell short of the US$1.15 average estimate of analysts surveyed by Bloomberg.
The firm also said it agreed to acquire sports and secondaries investor Arctos Partners in a transaction valuing the company at US$1.4 billion plus as much as US$550 million in future equity, confirming an earlier Bloomberg report. Arctos manages about US$15 billion, according to a separate statement.
In November, KKR disclosed that it would refund US$350 million of carried interest paid out on its Asia II fund and take a 4Q charge. Total investing earnings plunged 79%, driven by lower deal exits and the Asia clawback.
Fee-related earnings was among the bright spots, rising 15% to US$972 million during the quarter. KKR said adjusted net income would have been US$1.30 a share, excluding the impact of the Asia fund charge.
Shares of KKR and those of its publicly traded peers have been battered amid mounting concerns among investors about weakness in private credit and software investments. KKR’s stock tumbled 32% over the past year through Wednesday, the worst performance among its biggest publicly traded peers.
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KKR slipped 1.7% at 8am in early New York trading.
Assets under management rose 17% to US$744 billion, according to the statement. KKR gathered US$28 billion of fresh capital, led by the credit business. The firm raised a record US$129 billion in 2025.
KKR also invested a quarterly record US$32 billion during the final three months of the year.
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The firm’s Global Atlantic insurance unit generated US$268 million in profit during the period, a 7% increase.
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