KKR’s $44B Fundraising Broke Record In 2020 As Deals Boom

KKR & Co. raised a record $44 billion in new capital in 2020 and invested a record $12.5 billion during the fourth quarter as the private equity company took advantage of deal-making opportunities during the coronavirus pandemic.

KKR’s (KKR) fundraising for 2020 popped 72% year-on-year. The private equity firm’s flagship private equity funds posted a gross return of 32% last year. After-tax distributable earnings per adjusted share in 4Q increased 11% to $0.49 year-on-year, exceeding analysts’ expectations of $0.41 as transaction and management fees leaped.

In 2020, assets under management grew 15% to $252 billion and to $342 billion, if the acquisition of life insurance company Global Atlantic Financial Group is included, which was completed on Feb. 1. Management fees in the fourth quarter jumped 24% year-on-year.

Additionally, KKR announced plans to ramp up its regular annualized dividend per share from $0.54 to $0.58. (See KKR stock analysis on TipRanks).

“We ended 2020 with a strong fourth quarter. In addition to strong investment performance and continued Book Value growth, we had the most active fundraising and deployment year in our history,” said Henry R. Kravis and George R. Roberts, Co-CEOs of KKR. “The strength of our fundamentals, coupled with the completion of our acquisition of Global Atlantic, positions us well for future growth.”

Shares in KKR have jumped 34% over the past year and the global investment company scores a Moderate Buy Street consensus rating based on 5 Buys versus 2 Holds. That’s alongside an average analyst price target of $46, indicating 1.6% upside potential lies ahead.

Oppenheimer analyst Chris Kotowski last month lifted the stock’s price target to $50 from $42 and reiterated a Buy rating, saying that “realization activity was relatively strong for KKR through larger private and public equity transactions.”

Hedge Fund Activity for KKR decreased over the last quarter, as holdings declined by 3.2 million shares.

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