KKR’s profit takes a hit from clawback at Asia private equity fund
Its adjusted net income falls to US$1.12 a share, short of the US$1.15 average estimate of analysts
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[NEW YORK] Global investment firm KKR reported a drop in fourth-quarter profit, missing Wall Street estimates, as its asset sales declined and it took a charge for one of its private equity funds in Asia.
Its adjusted net income fell 15 per cent to US$1 billion, or US$1.12 a share, the New York-based company said on Thursday (Feb 5). This fell short of the US$1.15 average estimate of analysts surveyed by Bloomberg.
The company also said that it agreed to acquire sports and secondaries investor Arctos Partners in a transaction, valuing the company at US$1.4 billion with as much as US$550 million in future equity, confirming an earlier report.
Arctos manages about US$15 billion, based on 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 fourth-quarter charge. Its total investing earnings fell 79 per cent, due to lower deal exits and the Asia clawback.
Its fee-related earnings was among the bright spots, rising 15 per cent to US$972 million during the quarter. It said that its adjusted net income would have been US$1.30 a share, excluding the impact of the Asia fund charge.
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The company’s shares and those of its publicly traded peers have been battered, amid mounting concerns among investors about the weakness in private credit and software investments.
Its stock fell 32 per cent in 2025, and it had the worst performance among its biggest publicly traded peers.
Its assets under management rose 17 per cent to US$744 billion, and it gathered US$28 billion in fresh capital, led by its credit business. The firm raised a record US$129 billion in 2025.
It also invested a quarterly record of US$32 billion in the final three months of the year.
The firm’s Global Atlantic insurance unit posted a 7 per cent increase in profit to US$268 million during the period. BLOOMBERG
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