U.S. investment firm Kohlberg Kravis Roberts & Co. (KKR) has reported record quarterly profits due largely to strength in its capital markets business.
KKR, as the New York-based company is commonly known, reported that its earnings per share (EPS) rose 58% year-over-year to $1.38 U.S. in the third quarter. That topped the $1.20 U.S. expected on Wall Street.
Revenues in the quarter totaled $4.79 billion U.S., up 44% from $3.32 billion U.S. last year.
KKR, which specializes in private equity, also reported that its fee-related earnings rose 79% to a record $1 billion U.S. in the quarter, driven by a spike in management fees.
Assets under management at KKR rose 18% from a year earlier to $624 billion U.S. during Q3.
Management attributed the results largely to the capital markets unit that brought in $424 million U.S. Total investing earnings, or income from selling assets, rose 7% to $318.4 million U.S.
KKR said it raised $24 billion U.S. of new capital during the quarter, up 71% from $14 billion U.S. in the same quarter of last year.
The company has announced a series of deals in recent months, including the acquisition of Varsity Brands, a maker of sports uniforms and school yearbooks, for $4.75 billion U.S.
The stock of KKR is up 4% following its Q3 print. The company’s share price has now risen more than 70% this year to trade at $145 U.S.
