KKR Projects Fee Related Earnings Above $4.50 and Acquires $10.9B Data Centre
KKR forecasts Fee Related Earnings above $4.50 per share and after-tax adjusted net income exceeding $7, backed by record capital raising of nearly $130 billion and expected operating earnings of $1 billion from insurance in 2026. The firm also inked a $10.9 billion deal for a 75% stake in STT GDC.
1. Conference Presentation Highlights Guidance
At a financial conference on February 10, CFO Rob Lewin forecast Fee Related Earnings per share above $4.50 and after-tax adjusted net income exceeding $7, citing record capital raising of nearly $130 billion and strengths in asset management and insurance, while noting real estate challenges.
2. Strategic Acquisitions Expand AUM
KKR is integrating its Arctos acquisition, expected to grow into a business with over $100 billion in assets under management, and as part of a consortium with SingTel reached a $10.9 billion agreement to acquire the remaining stakes in ST Telemedia Global Data Center, which will give KKR a 75% ownership stake.
3. Management Fee and Expense Trends
Management fees have risen more than 50% over three years while expenses increased 25%, supporting projections of $1 billion in insurance operating earnings and $350 million from strategic holdings in 2026.
4. Analyst Outlook Adjustment
Goldman Sachs maintained a Buy rating but lowered its price target to $145 from $190, reflecting a 3% reduction in earnings-per-share estimates due to decreased capital markets revenue, while still expecting mid-teens annual management fee growth.