Co-CEOs Buy 175,000 Shares as KKR Posts Record $3.71B Fee Earnings
KKR posted record FY Fee Related Earnings of $3.71 billion and raised $129 billion in new capital, while Q4 management fees grew 24% year-over-year. Shares have fallen 25.23% YTD on private credit quality concerns, despite Co-CEOs purchasing 175,000 shares in February.
1. Record Fiscal Performance
KKR achieved full-year Fee Related Earnings of $3.71 billion and raised $129 billion in new capital, marking its highest fundraising year. Q4 management fees climbed 24% compared with the prior year, outpacing operating expense growth of 21%.
2. Share Price Decline
Despite robust fee growth, the stock has tumbled 25.23% year-to-date and is down 27.83% from its July peak. Investor worries center on the disconnect between strong earnings and credit risk exposure in private lending.
3. Insider Buying Signals Confidence
Both Co-CEOs acquired 175,000 shares in February, signaling management’s confidence in the firm’s outlook. This purchase occurred while retail sentiment skewed bearish on private credit performance.
4. Q4 EPS Miss and Credit Concerns
Q4 earnings per share came in at $1.12 versus a $1.14 estimate, driven by a $207 million carried interest repayment. Reports of rising non-accrual loans in the direct lending unit have intensified concerns over credit quality.