Investment giant KKR said that after reporting a nearly 20% profit increase for the first quarter on Thursday, the company is poised to deploy $116 billion in cash to seize new investment opportunities amid market volatility.
Despite market turbulence caused by tariffs raising concerns about limited exit opportunities, KKR executives stated that its global presence and diversified portfolio position it better than expected.
Co-CEO Scott Nuttall noted that the company may pursue asset sales in Asia and Europe, where market impacts are less severe than in the U.S.
He further highlighted that if companies shift to debt financing amid stock market volatility, KKR’s credit investment division will still benefit.
These results reflect the structural advantages of large alternative asset managers, whose diversified portfolios allow them to rely on more resilient segments when other areas face pressure.
KKR, in the three months ending March 31, reported an adjusted net income of $1.03 billion.
Earnings per share were $1.15, in line with analyst expectations from LSEG data.
Fee-related earnings rose 23%, reaching $822.6 million; assets under management grew 15%, reaching $664 billion, driven by $31 billion in newly raised capital.
KKR’s stock rose nearly 2% in pre-market trading, reaching $116.31.
The stock has fallen 23% year-to-date, while the S&P 500 is down 5%.
Competitors Blackstone, Apollo Global, and Carlyle have seen their stocks decline by 23.6%, 17.4%, and 23.5%, respectively.
KKR is focusing on retail investors, partnering with Capital Group to launch two funds targeting public-private hybrid credit.
These funds have low fees and low investment thresholds, making them suitable for a broader audience.
The company is also exploring similar products in private equity, real estate, and infrastructure.