KKR posts record PE exits as second-quarter earnings beat expectations
KKR delivered stronger-than-expected second-quarter results after completing a record level of private equity exits, highlighting the firm’s ability to generate liquidity for investors despite a challenging environment for private markets, according to a report by the Financial Times.
The alternative asset manager reported a sharp increase in profitability as realised investment gains, fee-related earnings and fundraising all accelerated during the quarter.
A key driver was a record $848m of realised performance income, more than double the level achieved in the same period last year, as KKR monetised a series of long-held private equity investments.
Among the largest exits were the sale of its remaining stake in Japanese semiconductor equipment company Kokusai Electric, which generated an estimated 20-times return on invested capital, and the disposal of Hyundai Marine Solutions, producing a return of approximately 7.5 times cost. The firm also realised gains from investments including US software company OneStream Software and German aerospace business OHB.
The strong pace of exits helped lift fee-related earnings by 37% year-on-year, while adjusted net income, a key measure of operating performance, rose 40%, exceeding analyst expectations.
KKR also attracted $34bn of new capital during the quarter, taking total assets under management to almost $800bn.
Fundraising was supported by the final close of a new Asia-focused private equity fund and fundraising for Arctos, the specialist sports investment manager in which KKR has a strategic interest. The firm also reported continued demand from individual investors for its private equity and infrastructure strategies.
Speaking alongside the results, co-chief executive Scott Nuttall said the firm’s operating performance remained considerably stronger than broader market sentiment towards private assets, arguing that investor perceptions of the sector were out of step with underlying business fundamentals.
Despite the positive results, fundraising in credit strategies remained more subdued. KKR gathered $9bn of new credit assets during the quarter, around 40% lower than a year earlier, as retail fundraising slowed and returns moderated.
Like several alternative asset managers, KKR has faced elevated redemption requests from retail-focused private credit vehicles this year. Earlier in 2026, the firm limited withdrawals from one of its asset-backed credit funds. However, management said redemption activity in its K-FIT retail credit strategy has eased, with recent withdrawal requests representing around 1.6% of net assets, allowing investors to redeem in full.
Nuttall said he nevertheless expects 2026 to be a record year for fundraising across KKR’s credit platform.
