(Bloomberg) — KKR & Co. laid out a plan to scale its core businesses as it aims to reach at least $1 trillion of assets under management in five years.
The firm intends to build on its existing asset management, insurance and strategic holdings units to reach that milestone, it said in an investor presentation Wednesday ahead of its investor day in New York. KKR also seeks to generate annual adjusted net income of more than $15 a share within a decade.
The firm expects to generate more than $1 billion in annual operating earnings at its strategic holdings unit — which holds long-term private equity investments — by 2030. KKR anticipates doubling assets under management at its Global Atlantic insurance business.
“We’re just getting started,” KKR Co-Chief Executive Officer Scott Nuttall said in a presentation at the firm’s investor day. “Despite all the growth, we have a lot of runway ahead of us.”
KKR, founded in 1976 by Henry Kravis, Jerome Kohlberg and George Roberts, has grown beyond its private equity roots into an alternative-asset management giant with strategies including buyouts, credit, infrastructure, real estate and insurance. The firm oversaw $553 billion of assets at the end of last year, when it posted adjusted net income of $3.42 a share.
At the investor day, the firm’s executives highlighted Asia — particularly Japan — as well as infrastructure and aging populations in need of retirement income as key growth areas. Almost 40% of KKR’s capital in Asia is invested in Japan, where the firm sees significant opportunity around annuities, Co-CEO Joe Bae said.
By 2026, KKR aims to raise more than $300 billion of new capital and projects adjusted net income per share to reach $7 to $8.
Shares of KKR gained about 20% this year.
At its last investor day in April 2021, the firm touted its goal of raising more than $100 billion by 2022. It had $252 billion of assets under management at the time.
(Updates with details from KKR investor day starting in third paragraph)
https://finance.yahoo.com/news/kkr-targets-1-trillion-assets-114432356.html
