KKR Reports 3Q Earnings, Introduces $500M Buyback Program
October 29, 2015
KKR has reported 3Q earnings results. The diversified alternative asset manager registered an economic net loss of $286 million during the period, representing a sharp decline compared to the $508.7 million ENI the firm reported during the same period last year. Similar to what we've seen across the board, KKR clocked losses due in large part to net carried interest losses reflecting a decline the firm's private equity portfolio, along with net investment losses in its public markets segments. On a positive note, the firm has announced a couple shifts to its capital management strategy including a fixed distribution per quarter effective in early 2016, along with a $500 million share buyback program. AUM in the firm's private market segment declined slightly QoQ to $60.8 billion, primarily due to LP distributions and a decline in the fair value of its PE portfolio.