KKR & Co. Inc.

Q2 fee-related earnings were $1.2 billion, or $1.32 per share, up 34% year over year. Total operating earnings were $1.68 per share, up 27% year over year, and adjusted net income was $1.63 per share, up 38% year over year. Management fees were $1.2 billion, up 26% year over year, or 18% excluding catch-up fees. Total operating earnings came in at $1.68 per share, FRE margin was just above 70%, and adjusted net income was just about $1.5 billion. The company raised $34 billion of new capital in Q2 and deployed $24 billion; capital raised over the last 12 months was $133 billion and capital invested over the last 12 months was $104 billion. In insurance, segment operating earnings were $288 million in Q2, and Strategic Holdings operating earnings were $37 million. Management said it continues to expect plus or minus $700 million of monetization-related visibility for the quarter ahead, with about 80% from realized performance revenue and 20% from realized investment income. It also reiterated that insurance operating earnings of $250 million plus or minus remains a good forward number, and that Strategic Holdings can deliver $350-plus million of operating earnings in 2026. For full-year monetization, management declined to reissue a formal $7 per share target, saying the focus is on performance rather than a specific number.

Scott Nuttall framed the quarter as evidence that the market is underestimating KKR’s operating strength, saying the external narrative is disconnected from what he sees inside the firm. He highlighted secular tailwinds in AI infrastructure, Asia, retirement solutions, and alternatives penetration, and said KKR’s model lets it grow earnings without meaningfully growing headcount. He also stressed culture and alignment, noting employees own about 30% of the stock and that the firm is willing to invest for long-term growth in areas like wealth, insurance, and solutions.

Rob Lewin emphasized that KKR has multiple secular growth drivers translating into results, including strong fundraising, record committed-but-not-fee-earning capital of $72 billion, and expanding performance income potential. He pointed to the FRE margin of 70%, management fees of $1.2 billion, and the quarter’s record monetization activity as evidence of operating leverage. On insurance, he said segment operating earnings were $288 million, but about $40 million of net realization activity boosted the quarter and total insurance economics were $2 billion net of compensation over the last 12 months, up 13% year over year. He also said the new K-Series reporting treatment lowers compensation and structurally raises forward EPS, and that the strategic holdings portfolio could scale from $187 million LTM to $1.1-plus billion by 2030.

Analysts focused on whether management fee growth can continue into 2027, and Rob said KKR has 30-plus products over the next 12 to 18 months, record fundraising, and a record amount of committed capital not yet earning fees. Questions also centered on insurance growth and ROE, where management said competition is higher, capital allocation to insurance has been reduced somewhat, and ROEs should be viewed through the cycle because spreads and liability competition remain pressured. On retail wealth, Scott said inflows are still healthy, with K-Series AUM up more than 20% year to date and about 70% year over year, and that recent volatility has reinforced the need for education and broader distribution. On Helix, management said it is a company, not a fund, launched with over $10 billion of initial committed capital, with a broad mandate across power, data centers, and connectivity.