KKR's profit for the second quarter increases due to an uptick in fee income.
In the rapidly evolving global market, private equity giant KKR has seen a significant surge in its assets under management (AUM), reaching an impressive $686 billion as of mid-2025. This represents a 14% year-over-year increase from $553 billion earlier in the year.
The growth is attributed to broad-based momentum across KKR's investment, monetizing, and fundraising activities worldwide. The company's co-CEOs, Joseph Bae and Scott Nuttall, have emphasised this growth in a recent statement.
KKR's strategic expansion and fundraising success are evident through several major acquisitions and funding initiatives. Some notable ones include the acquisition of Dawsongroup in January 2025, the bidding war win for Fuji Soft in February 2025, and a joint $9.8 billion purchase of fiber internet company Metronet with T-Mobile in July 2025. However, KKR withdrew from a £4 billion bid to acquire a majority stake in Thames Water in June 2025.
The company's focus on asset-backed finance has also been evident. In June 2025, KKR raised $6.5 billion to invest in this area, with a focus on opportunities to buy debt similar to the deal KKR and PIMCO struck with motorcycle maker Harley-Davidson.
KKR has also teamed up with Capital Group to seek Securities and Exchange Commission (SEC) approval for a fund that blends public and private equity.
Financially, KKR reported a second-quarter 2025 revenue increase of 22% to $5.09 billion. Although net profit declined compared to the previous year due to non-recurring items, the adjusted per-share earnings of $1.18 surpassed analyst expectations, reinforcing strong operating performance alongside rising AUM.
Fee-related earnings for KKR rose 17% to $887 million in the second quarter, highlighting the stable earnings these can provide during turbulent markets. The growth in management fees and KKR's capital markets business contributed significantly to this rise in fee-related earnings.
In summary, KKR's substantial increase in AUM and recent sizable acquisitions illustrate its ongoing strategic expansion and fundraising success in diverse sectors and geographies, supported by positive market conditions and active portfolio management. The company remains optimistic about its mid-year outlook, underscoring an active investment approach amid rapidly shifting global markets and strong conviction in their investment themes.
- KKR's strategic expansion and fundraising success, as demonstrated by major acquisitions and funding initiatives like the one with Capital Group for a fund that blends public and private equity, indicate their active involvement in both business and investing.
- The growth in KKR's management fees and capital markets business, such as the $887 million earned in fee-related earnings in the second quarter of 2025, underlines their continued commitment to the finance sector.
