Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis should be read in conjunction with the unaudited condensed consolidated financial statements of KKR & Co. Inc., together with its consolidated subsidiaries, and the related notes included elsewhere in this report and our Annual Report, including the audited consolidated financial statements and the related notes and "Management's Discussion and Analysis of Financial Condition and Results of Operations" contained therein. In addition, this discussion and analysis contains forward-looking statements and involves numerous risks and uncertainties, including those described under "Cautionary Note Regarding Forward-looking Statements" and "Business Environment" in this report and our Annual Report and "Risk Factors" in our Annual Report, and our other filings with the SEC. Actual results may differ materially from those contained in any forward-looking statements.

The unaudited condensed consolidated financial statements and the related notes included elsewhere in this report are hereafter referred to as the "financial statements." Additionally, the condensed consolidated statements of financial condition are referred to herein as the "consolidated statements of financial condition"; the condensed consolidated statements of operations are referred to herein as the "consolidated statements of operations"; the condensed consolidated statements of comprehensive income (loss) are referred to herein as the "consolidated statements of comprehensive income (loss)"; the condensed consolidated statements of changes in equity are referred to herein as the "consolidated statements of changes in equity"; and the condensed consolidated statements of cash flows are referred to herein as the "consolidated statements of cash flows."

Overview

We are a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. We aim to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in our portfolio companies and communities. We sponsor funds that invest in private equity, credit, and real assets and have strategic partners that manage hedge funds. Our insurance subsidiaries offer retirement, life, and reinsurance products under the management of Global Atlantic.

Our asset management business offers a broad range of investment management services to fund investors around the world. Throughout our history, we have consistently been a leader in the private equity industry, having completed more than 790 private equity investments in portfolio companies with a total transaction value in excess of $815 billion as of June 30, 2025. Since the inception of our firm in 1976, we have expanded our investment strategies and product offerings from traditional private equity to areas such as leveraged credit, alternative credit, infrastructure, energy, real estate, growth equity (including technology, health care, and impact strategies), and core private equity. We also provide capital markets services for our firm, our portfolio companies, and third parties. Our balance sheet provides a significant source of capital for the growth and expansion of our business, which has allowed us to further align our interests with those of our investment vehicle investors. Building on these efforts and leveraging our industry expertise and intellectual capital have allowed us to capitalize on a broader range of the opportunities we source.

Our insurance business is operated by our wholly-owned subsidiary Global Atlantic, which is a leading retirement and life insurance company that provides a broad suite of protection, legacy and savings products, and reinsurance solutions to clients across individual and institutional markets. Global Atlantic primarily offers individuals fixed-rate annuities, fixed-indexed annuities, and targeted life products through a network of banks, broker-dealers, and independent marketing organizations. Global Atlantic provides its institutional clients customized reinsurance solutions, including block, flow, and pension risk transfer, as well as funding agreements. Global Atlantic primarily generates income by earning a spread between its investment income and the cost of policyholder benefits. As of June 30, 2025, Global Atlantic served over three and a half million policyholders.

Our Strategic Holdings business is currently comprised of the firm’s ownership in the businesses we acquired through our participation in our core private equity strategy. In our core private equity strategy, our objective is to acquire and manage controlling interests in operating companies, which we intend to hold over a longer period of time and that we believe have a lower anticipated risk profile than our investments in businesses acquired through our traditional private equity strategy. As of June 30, 2025, our Strategic Holdings segment consisted of our ownership stakes in 18 companies that we acquired through our core private equity strategy.

Asset Management

Our asset management business offers a broad range of investment management services to fund investors around the world. In our asset management business, we have five business lines: (1) Private Equity, (2) Real Assets, (3) Credit and Liquid Strategies, (4) Capital Markets, and (5) Principal Activities. In addition to the overviews of each of these business lines provided in this report, please also refer to our Annual Report. As an asset management firm, we earn fees, including management fees and incentive fees, and carried interest for providing investment management and other services to our investment vehicles, CLOs, managed accounts, portfolio companies, and certain operating companies, and we generate transaction fees from capital markets transactions. We earn additional investment income by investing our own capital alongside investors in our investment vehicles and from other assets on our balance sheet. Carried interest we receive from our funds and certain other investment vehicles entitles us to a specified percentage of investment gains that are generated on third-party capital that is invested. Subsequent to June 30, 2025, KKR acquired a majority ownership stake in HealthCare Royalty Partners, a middle-market biopharma royalty acquisition company, which manages approximately $3 billion of assets.

Private Equity

Through our Private Equity business line, we manage and sponsor a group of private equity investment vehicles that invest capital for long-term appreciation, either through controlling ownership of a company or strategic non-controlling minority positions. In addition to our traditional private equity funds that invest in large and mid-sized companies, we sponsor funds that invest in core private equity and growth equity, which includes technology, health care, and impact strategies. Our Private Equity business line includes separately managed accounts that invest in multiple strategies, which may include our credit and real assets strategies, as well as our private equity strategies. These funds and accounts are managed by Kohlberg Kravis Roberts & Co. L.P., an SEC-registered investment adviser. As of June 30, 2025, our Private Equity business line had $214.6 billion of AUM, consisting of $156.9 billion in traditional private equity, $39.6 billion in core private equity and $18.1 billion in growth equity, which includes $4.5 billion of impact investments.

The table below presents information as of June 30, 2025, relating to our current private equity and other investment vehicles reported in our Private Equity business line for which we have the ability to earn carried interest. This data does not reflect acquisitions or disposals of investments, changes in investment values, or distributions occurring after June 30, 2025.


	Investment Period		Amount ($ in millions)
	Start Date(1)	End Date (2)	Commitment (3)		Uncalled Commitments		Invested		Realized		Remaining Cost (4)		Remaining Fair Value		Gross Accrued Carried Interest
Private Equity Business Line
North America Fund XIV	4/2025	4/2031	$	15,881	$	15,881	$	—	$	—	$	—	$	—	$	—
North America Fund XIII	8/2021	4/2025	18,400		3,169		15,534		327		15,123		19,782		700
Americas Fund XII	5/2017	5/2021	13,500		1,386		12,747		14,430		9,150		19,169		1,706
North America Fund XI	11/2012	1/2017	8,718		48		10,165		23,097		2,167		3,479		232
2006 Fund (5)	9/2006	9/2012	17,642		—		17,309		37,423		—		—		—
Millennium Fund (5)	12/2002	12/2008	6,000		—		6,000		14,129		—		—		—
Ascendant Fund	6/2022	6/2028	4,328		2,962		1,366		—		1,366		1,428		—
European Fund VI	6/2022	6/2028	7,560		3,466		4,094		—		4,094		4,065		—
European Fund V	7/2019	2/2022	6,384		629		5,878		2,827		4,455		6,620		397
European Fund IV	2/2015	3/2019	3,513		18		3,647		5,726		1,621		2,684		189
European Fund III (5)	3/2008	3/2014	5,506		—		5,360		10,647		—		—		—
European Fund II (5)	11/2005	10/2008	5,751		—		5,751		8,533		—		—		—
Asian Fund IV	7/2020	7/2026	14,735		6,645		8,918		1,920		8,397		14,357		1,166
Asian Fund III	8/2017	7/2020	9,000		1,264		8,266		8,663		6,129		11,094		966
Asian Fund II	10/2013	3/2017	5,825		—		7,496		6,703		1,676		818		(346)
Asian Fund (5)	7/2007	4/2013	3,983		—		3,974		8,728		—		—		—
Next Generation Technology Growth Fund III	11/2022	11/2028	2,740		1,079		1,661		—		1,661		1,871		1
Next Generation Technology Growth Fund II	12/2019	5/2022	2,088		68		2,255		1,761		1,680		2,572		159
Next Generation Technology Growth Fund	3/2016	12/2019	659		3		671		1,314		241		945		74
Health Care Strategic Growth Fund II	5/2021	5/2027	3,789		1,820		1,969		—		1,969		2,382		5
Health Care Strategic Growth Fund	12/2016	4/2021	1,331		74		1,387		554		1,057		1,842		132
Global Impact Fund II	6/2022	6/2028	2,717		1,526		1,191		—		1,191		1,118		—
Global Impact Fund	2/2019	3/2022	1,242		214		1,210		620		973		1,618		124
Co-Investment Vehicles and Other	Various	Various	30,303		3,476		27,499		11,958		21,044		26,128		1,670
Core Investors II	8/2022	8/2027	11,814		8,963		2,851		108		2,851		3,582		8
Core Investors I	2/2018	8/2022	8,500		23		9,530		1,658		8,299		16,905		20
Other Core Vehicles	Various	Various	7,437		1,182		6,332		2,030		5,722		8,984		16
Unallocated Commitments (6)	N/A	N/A	1,236		1,236		—		—		—		—		—

Total Private Equity			$	220,582	$	55,132	$	173,061	$	163,156	$	100,866	$	151,443	$	7,219

(1)The start date represents the start of the fund's investment period as defined in the fund's governing documents and may or may not be the same as the date upon which management fees begin to accrue.

(2)The end date represents the end of the fund's investment period as defined in the fund's governing documents and is generally not the date upon which management fees cease to accrue. For funds that initially charge management fees on the basis of committed capital, the end date is generally the date on or after which the management fees begin to be calculated instead on the basis of invested capital and may, for certain funds, begin to be calculated using a lower rate.

(3)The commitment represents the aggregate capital commitments to the fund, including capital commitments by third-party fund investors and the general partner. Foreign currency commitments have been converted into U.S. dollars based on the exchange rate that prevailed on June 30, 2025.

(4)The remaining cost represents the initial investment of the general partner and limited partners, reduced for returns of capital.

(5)The "Invested" and "Realized" columns do not include the amounts of any realized investments that restored the unused capital commitments of the fund investors, if any.

(6)"Unallocated Commitments" represent commitments received from our strategic investor partnerships that have yet to be allocated to a particular investment strategy.

Real Assets

Through our Real Assets business line, we manage and sponsor a group of real assets funds and accounts that invest capital in infrastructure, real estate, or energy. These funds and accounts are managed by Kohlberg Kravis Roberts & Co. L.P. or one of its subsidiaries. As of June 30, 2025, our Real Assets business line had $179.4 billion of AUM, consisting of $90.5 billion in infrastructure, $82.5 billion in real estate (of which $43.6 billion is real estate credit and $38.9 billion is real estate equity), $5.0 billion in energy, and $1.4 billion of unallocated commitments from a strategic investment partnership.

The table below presents information as of June 30, 2025, relating to our current real asset and other investment vehicles reported in our Real Assets business line for which we have the ability to earn carried interest. This data does not reflect acquisitions or disposals of investments, changes in investment values, or distributions occurring after June 30, 2025.


	Investment Period		Amount ($ in millions)
	Start Date (1)	End Date (2)	Commitment (3)		Uncalled Commitments		Invested		Realized		Remaining Cost (4)		Remaining Fair Value		Gross Accrued Carried Interest
Real Assets Business Line
Global Infrastructure Investors V	7/2024	7/2030	$	12,536	$	12,536	$	—	$	—	$	—	$	—	$	—
Global Infrastructure Investors IV	8/2021	6/2024	16,613		2,675		14,309		987		13,963		18,142		806
Global Infrastructure Investors III	7/2018	6/2021	7,175		908		6,628		4,513		3,992		6,125		316
Global Infrastructure Investors II	12/2014	6/2018	3,040		133		3,167		5,710		560		972		45
Global Infrastructure Investors	9/2010	10/2014	1,040		—		1,050		2,228		—		—		—
Asia Pacific Infrastructure Investors II	9/2022	9/2028	6,348		3,126		3,428		228		3,210		4,048		141
Asia Pacific Infrastructure Investors	1/2020	9/2022	3,792		535		3,542		1,819		2,479		3,280		262
Diversified Core Infrastructure Fund	12/2020	(5)	12,026		1,559		10,700		1,241		10,620		11,763		—
Global Climate Transition Fund(6)	7/2024	7/2030	2,945		2,945		—		—		—		—		—
Real Estate Partners Americas IV	11/2024	11/2028	1,928		1,928		—		—		—		—		—
Real Estate Partners Americas III	1/2021	9/2024	4,253		665		3,817		340		3,572		3,953		—
Real Estate Partners Americas II	5/2017	12/2020	1,921		133		1,972		2,811		352		275		(5)
Real Estate Partners Americas	5/2013	5/2017	1,229		15		1,024		1,444		—		—		(4)
Real Estate Partners Europe II	3/2020	12/2023	2,068		285		1,988		488		1,670		1,715		—
Real Estate Partners Europe	8/2015	12/2019	710		97		692		783		196		187		(17)
Asia Real Estate Partners	7/2019	7/2023	1,682		361		1,368		325		1,152		1,298		—
Property Partners Americas	12/2019	(5)	2,571		46		2,525		159		2,525		2,244		—
Real Estate Credit Opportunity Partners II	8/2019	6/2023	950		—		976		386		895		913		26
Real Estate Credit Opportunity Partners	2/2017	4/2019	1,130		122		1,008		634		1,008		1,002		4
Energy Related Vehicles	Various	Various	4,385		62		4,196		2,162		1,061		1,519		45
Co-Investment Vehicles and Other	Various	Various	16,233		3,784		12,489		2,063		12,069		13,166		62
Unallocated Commitments(7)	N/A	N/A	1,360		1,360		—		—		—		—		—

Total Real Assets			$	105,935	$	33,275	$	74,879	$	28,321	$	59,324	$	70,602	$	1,681

(4)The remaining cost represents the initial investment of the general partner and limited partners, reduced for returns of capital.

(5)Open-ended fund.

(6)Includes another climate strategy vehicle with different fund terms and whose investment period has not yet begun as of June 30, 2025. This vehicle's investment period start date and end date will be determined based upon the date of the close of its first investment.

(7)"Unallocated Commitments" represent commitments received from our strategic investor partnerships that have yet to be allocated to a particular investment strategy.

Private Equity and Real Asset Performance

The table below presents information as of June 30, 2025, relating to the historical performance of certain of our Private Equity and Real Assets investment vehicles since inception, which we believe illustrates the benefits of our investment approach. This data does not reflect additional capital raised since June 30, 2025, or acquisitions or disposals of investments, changes in investment values, or distributions occurring after that date. The information presented below is not intended to be representative of any past or future performance for any particular period other than the period presented below. Past performance is no guarantee of future results.



Private Equity and Real Assets Business Lines Investment Funds and Other Vehicles	Commitment (2)		Invested		Realized (4)		Unrealized		Total Value		Gross IRR (5)		Net IRR (5)		Gross Multiple of Invested Capital (5)
	($ in millions)
Total Investments
Legacy Funds (1)
1976 Fund	$	31	$	31	$	537	$	—	$	537	39.5	%	35.5	%	17.1
1980 Fund	357		357		1,828		—		1,828		29.0	%	25.8	%	5.1
1982 Fund	328		328		1,291		—		1,291		48.1	%	39.2	%	3.9
1984 Fund	1,000		1,000		5,964		—		5,964		34.5	%	28.9	%	6.0
1986 Fund	672		672		9,081		—		9,081		34.4	%	28.9	%	13.5
1987 Fund	6,130		6,130		14,949		—		14,949		12.1	%	8.9	%	2.4
1993 Fund	1,946		1,946		4,143		—		4,143		23.6	%	16.8	%	2.1
1996 Fund	6,012		6,012		12,477		—		12,477		18.0	%	13.3	%	2.1
Subtotal - Legacy Funds	16,475		16,475		50,269		—		50,269		26.1	%	19.9	%	3.1
Included Funds
European Fund (1999)	3,085		3,085		8,758		—		8,758		26.9	%	20.2	%	2.8
Millennium Fund (2002)	6,000		6,000		14,129		—		14,129		22.0	%	16.1	%	2.4
European Fund II (2005)	5,751		5,751		8,533		—		8,533		6.1	%	4.5	%	1.5
2006 Fund (2006)	17,642		17,309		37,423		—		37,423		11.9	%	9.3	%	2.2
Asian Fund (2007)	3,983		3,974		8,728		—		8,728		18.9	%	13.7	%	2.2
European Fund III (2008)	5,506		5,360		10,647		—		10,647		16.4	%	11.2	%	2.0
E2 Investors (Annex Fund) (2009)	196		196		200		—		200		0.6	%	0.5	%	1.0
China Growth Fund (2010)	1,010		1,010		1,166		—		1,166		3.7	%	—	%	1.2
Natural Resources Fund (2010)	887		887		168		—		168		(24.3)	%	(25.9)	%	0.2
Global Infrastructure Investors (2010)	1,040		1,050		2,228		—		2,228		17.6	%	15.6	%	2.1
North America Fund XI (2012)	8,718		10,165		23,097		3,479		26,576		23.5	%	18.9	%	2.6
Asian Fund II (2013)	5,825		7,496		6,703		818		7,521		0.1	%	(1.4)	%	1.0
Real Estate Partners Americas (2013)	1,229		1,024		1,444		—		1,444		15.8	%	10.9	%	1.4
Energy Income and Growth Fund (2013)	1,589		1,589		1,221		—		1,221		(6.2)	%	(8.6)	%	0.8
Global Infrastructure Investors II (2014)	3,040		3,167		5,710		972		6,682		19.4	%	16.8	%	2.1
European Fund IV (2015)	3,513		3,647		5,726		2,684		8,410		22.1	%	17.0	%	2.3
Real Estate Partners Europe (2015)	710		692		783		187		970		11.1	%	8.3	%	1.4
Next Generation Technology Growth Fund (2016)	659		671		1,314		945		2,259		29.3	%	25.1	%	3.4
Health Care Strategic Growth Fund (2016)	1,331		1,387		554		1,842		2,396		15.6	%	10.8	%	1.7
Americas Fund XII (2017)	13,500		12,747		14,430		19,169		33,599		24.5	%	20.4	%	2.6
Real Estate Credit Opportunity Partners (2017)	1,130		1,008		634		1,002		1,636		9.1	%	7.7	%	1.6
Core Investment Vehicles (2017)	27,751		18,713		3,796		29,471		33,267		15.8	%	15.5	%	1.8
Asian Fund III (2017)	9,000		8,266		8,663		11,094		19,757		25.0	%	19.6	%	2.4
Real Estate Partners Americas II (2017)	1,921		1,972		2,811		275		3,086		23.7	%	19.1	%	1.6
Global Infrastructure Investors III (2018)	7,175		6,628		4,513		6,125		10,638		13.9	%	11.0	%	1.6
Global Impact Fund (2019)	1,242		1,210		620		1,618		2,238		19.5	%	14.5	%	1.8
European Fund V (2019)	6,384		5,878		2,827		6,620		9,447		14.1	%	11.1	%	1.6
Energy Income and Growth Fund II (2018)	994		1,198		554		1,362		1,916		13.3	%	11.7	%	1.6
Asia Real Estate Partners (2019)	1,682		1,368		325		1,298		1,623		7.2	%	3.8	%	1.2
Next Generation Technology Growth Fund II (2019)	2,088		2,255		1,761		2,572		4,333		21.3	%	17.0	%	1.9
Real Estate Credit Opportunity Partners II (2019)	950		976		386		913		1,299		10.1	%	7.8	%	1.3
Asia Pacific Infrastructure Investors (2020)	3,792		3,542		1,819		3,280		5,099		16.0	%	11.9	%	1.4
Asian Fund IV (2020)	14,735		8,918		1,920		14,357		16,277		26.8	%	20.0	%	1.8
Real Estate Partners Europe II (2020)	2,068		1,988		488		1,715		2,203		4.4	%	2.1	%	1.1
Real Estate Partners Americas III (2021)	4,253		3,817		340		3,953		4,293		5.1	%	3.1	%	1.1
Health Care Strategic Growth Fund II (2021)	3,789		1,969		—		2,382		2,382		13.7	%	5.9	%	1.2
North America Fund XIII (2021)	18,400		15,534		327		19,782		20,109		15.4	%	11.1	%	1.3
Global Infrastructure Investors IV (2022)	16,613		14,309		987		18,142		19,129		15.3	%	11.8	%	1.3
Asia Pacific Infrastructure Investors II (2022)	6,348		3,428		228		4,048		4,276		33.3	%	23.1	%	1.2
Ascendant Fund (2022)	4,328		1,366		—		1,428		1,428		4.6	%	(5.1)	%	1.0
Next Generation Technology Growth Fund III (2022)	2,740		1,661		—		1,871		1,871		17.6	%	5.4	%	1.1
European Fund VI (2023)	7,560		4,094		—		4,065		4,065		(0.7)	%	(5.7)	%	1.0
Global Impact Fund II (2023) (3)	2,717		1,191		—		1,118		1,118		—		—		—
Global Infrastructure Investors V (2024) (3)	12,536		—		—		—		—		—		—		—
Global Climate Transition Fund (2024) (3)	2,945		—		—		—		—		—		—		—
Real Estate Partners Americas IV (2024) (3)	1,928		—		—		—		—		—		—		—
North America Fund XIV (2025)(3)	15,881		—		—		—		—		—		—		—
Subtotal - Included Funds	266,164		198,496		185,961		168,587		354,548		16.0	%	12.3	%	1.8

All Funds	$	282,639	$	214,971	$	236,230	$	168,587	$	404,817	25.5	%	18.6	%	1.9

(1)These funds were not contributed to KKR as part of the acquisition of the assets and liabilities of KKR & Co. (Guernsey) L.P. (formerly known as KKR Private Equity Investors, L.P.) on October 1, 2009.

(2)Where commitments are not U.S. dollar-denominated, such amounts have been converted into U.S. dollars based on the exchange rate prevailing on June 30, 2025.

(3)The gross IRR, net IRR and gross multiple of invested capital are calculated for our investment funds that made their first investment at least 24 months prior to June 30, 2025. We therefore have not calculated gross IRRs, net IRRs and gross multiples of invested capital with respect to these funds.

(4)An investment is considered realized when it has been disposed of or has otherwise generated disposition proceeds or current income that has been distributed by the relevant fund.

(5)IRRs measure the aggregate annual compounded returns generated by a fund's investments over a holding period. Net IRRs are calculated after giving effect to the allocation of realized and unrealized carried interest and the payment of any applicable management fees and organizational expenses. Gross IRRs are calculated before giving effect to the allocation of realized and unrealized carried interest and the payment of any applicable management fees and organizational expenses.

The gross multiples of invested capital measure the aggregate value generated by a fund's investments in absolute terms. Each multiple of invested capital is calculated by adding together the total realized and unrealized values of a fund's investments and dividing by the total amount of capital invested by the fund. Such amounts do not give effect to the allocation of realized and unrealized carried interest or the payment of any applicable management fees or organizational expenses.

KKR's Private Equity and Real Assets funds may utilize third-party financing facilities to provide liquidity to such funds. The above net and gross IRRs are calculated from the time capital contributions are due from fund investors to the time fund investors receive a related distribution from the fund, and the use of such financing facilities generally decreases the amount of time that would otherwise be used to calculate IRRs, which tends to increase IRRs when fair value grows over time and decrease IRRs when fair value decreases over time. KKR's Private Equity and Real Assets funds also generally provide in certain circumstances, which vary depending on the relevant fund documents, for a portion of capital returned to investors to be restored to unused commitments as recycled capital. For KKR's Private Equity and Real Assets funds that have a preferred return, we take into account recycled capital in the calculation of IRRs and multiples of invested capital because the calculation of the preferred return includes the effect of recycled capital. For KKR's Private Equity and Real Assets funds that do not have a preferred return, we do not take recycled capital into account in the calculation of IRRs and multiples of invested capital. The inclusion of recycled capital generally causes invested and realized amounts to be higher and IRRs and multiples of invested capital to be lower than had recycled capital not been included. The inclusion of recycled capital would reduce the composite net IRR of all Included Funds by 0.1% and the composite net IRR of all Legacy Funds by 0.5% and would reduce the composite multiple of invested capital of Included Funds by less than 0.1 and the composite multiple of invested capital of Legacy Funds by 0.4.

For more information, see "Risk Factors—Risks Related to Our Investment Activities—Future results of our investments may be different than, and may not achieve the levels of, any of our historical returns" in our Annual Report.

Credit and Liquid Strategies

Through our Credit and Liquid Strategies business line, we report our credit and hedge funds platforms on a combined basis. As of June 30, 2025, our Credit and Liquid Strategies business line had $291.8 billion of AUM, comprised of $134.0 billion of assets managed in our leveraged credit strategies, $75.0 billion of assets in asset-based finance, $44.8 billion in direct lending, $7.6 billion of assets managed in our SIG strategy, and $30.4 billion of assets managed through our hedge fund platform, which we refer to as the liquid strategies component of our credit and liquid strategies business. Asset-based finance and direct lending together represent our private credit strategy. We manage $149.2 billion of credit investments for our Global Atlantic insurance companies. Our BDCs have approximately $16.2 billion in assets under management, which is reflected in the AUM of our credit strategies above. We report all of the assets under management of our BDCs in our AUM, but we report only a pro rata portion of the assets under management of our hedge fund partnerships based on our percentage ownership in them.

Credit

Our credit platform invests capital in a broad range of corporate debt and collateral-backed investments across asset classes and capital structures. Our credit strategies are primarily managed by KKR Credit Advisors (US) LLC, which is an SEC-registered investment adviser, KKR Credit Advisors (Ireland) Unlimited Company, which is regulated by the Central Bank of Ireland (“CBI”), KKR Credit Advisors (EMEA) LLP, which is regulated by the United Kingdom ("UK") Financial Conduct Authority (the "FCA"), and KKR Credit Advisors (Singapore) Pte. Ltd., which is regulated by the Monetary Authority of Singapore and an SEC-registered investment adviser. We also jointly own with a third party FS/KKR Advisor, LLC, an investment adviser registered with the SEC that provides investment advisory services to certain registered investment companies, including FS KKR Capital Corp. (NYSE: FSK), a publicly listed BDC, KKR FS Income Trust, a privately-offered BDC and KKR FS Income Trust Select, a privately-offered BDC.

Our credit business pursues a variety of investment strategies in leveraged credit and alternative credit.

Leveraged Credit. Our leveraged credit strategies seek to primarily invest in assets such as leveraged loans (including revolving credit facilities), high yield bonds, and structured credit (including CLOs and asset-backed securities). Within leveraged credit, we manage both single-asset class and multi-asset class pools of capital. Our opportunistic credit strategy seeks to deploy capital across investment themes that seek to take advantage of credit market dislocations and relative value opportunities spanning, asset types and liquidity profiles. Our multi-asset credit strategy seeks to dynamically allocate across public liquid credit asset types in a broadly diversified strategy.

Alternative Credit. Our alternative credit strategy consists of our (i) private credit strategies and (ii) investments overseen by our credit platform’s strategic investments group (“SIG”):

Private Credit.** Our private credit strategies focus on privately or directly originated and negotiated transactions. These strategies include direct lending typically in the senior part of a company’s capital structure, junior mezzanine debt, and asset-based finance. Through our direct lending strategy, we seek to make investments in primarily senior debt financings for middle-market companies. Through our junior mezzanine debt strategy, investments typically consist of subordinated debt, which generates a current yield, coupled with marginal equity exposure for additional upside potential. Our asset-based finance strategy focuses on multi-sector investments secured by portfolios of financial assets, including loans backed by hard assets across the risk-return spectrum. We also own 18 captive origination platforms that are dedicated to sourcing and structuring asset-based financial assets, hard assets, and contractual cash flows.
Strategic Investments Group.** This strategy seeks to provide strategic capital solutions to high quality, mid-to-large cap companies and assets. The strategy pursues investment capital solutions in corporate credit where we believe market volatility or other investment themes have created the opportunity to invest opportunistically across the capital structure and through market cycles to generate outsized returns, and which may include investment terms intended to offer various levels of downside-protection. These investment opportunities may include debt (senior and junior), preferred equity, convertible debt, and structured equity. These investments may include non-control-oriented opportunities, a variety of capital solutions for third-party investment vehicles, balance sheet optimization capital solutions, strategic partner capital, and other event-driven investments in debt or equity.

Hedge Fund Platform

Our hedge fund platform consists of strategic partnerships with third-party hedge fund managers in which KKR owns a minority stake. This principally consists of a 39.6% interest in Marshall Wace LLP (together with its affiliates, "Marshall Wace"), a global alternative investment manager specializing in long/short equity products.

The table below presents information as of June 30, 2025, relating to our current credit investment vehicles reported in our Credit and Liquid Strategies business line for which we have the ability to earn carried interest. This data does not reflect acquisitions or disposals of investments, changes in investment values, or distributions occurring after June 30, 2025.


	Investment Period		Amount ($ in millions)
	Start Date (1)	End Date (2)	Commitment (3)		Uncalled Commitments		Invested		Realized		Remaining Cost (4)		Remaining Fair Value		Gross Accrued Carried Interest
Credit and Liquid Strategies Business Line
Opportunities Fund II	11/2021	1/2026	$	2,375	$	930	$	1,445	$	51	$	1,445	$	1,663	$	31
Dislocation Opportunities Fund	8/2019	11/2021	2,967		323		2,644		1,839		1,448		1,545		84
Special Situations Fund II	2/2015	3/2019	3,525		284		3,241		2,622		615		687		—
Special Situations Fund	1/2013	1/2016	2,274		1		2,273		1,899		94		135		—
Mezzanine Partners	7/2010	3/2015	1,023		33		990		1,166		184		1		(20)
Asset-Based Finance Partners II	3/2024	3/2028	4,727		4,727		—		—		—		—		—
Asset-Based Finance Partners	10/2020	7/2025	2,059		692		1,367		323		1,367		1,486		63
Private Credit Opportunities Partners II	12/2015	12/2020	2,245		250		1,995		1,010		1,251		1,167		—
Lending Partners IV	3/2022	9/2026	1,150		288		862		141		862		889		11
Lending Partners III	4/2017	11/2021	1,498		540		958		1,223		415		363		39
Lending Partners II	6/2014	6/2017	1,336		157		1,179		1,261		71		17		—
Lending Partners	12/2011	12/2014	460		40		420		458		23		7		—
Lending Partners Europe II	5/2019	9/2023	837		204		633		598		315		353		9
Lending Partners Europe	3/2015	3/2019	848		184		662		595		97		84		—
Asia Credit Opportunities	1/2021	5/2025	1,084		355		729		64		727		900		32
Other Alternative Credit Vehicles	Various	Various	16,830		7,158		9,916		6,997		4,966		6,654		9

Total Credit and Liquid Strategies			$	45,238	$	16,166	$	29,314	$	20,247	$	13,880	$	15,951	$	258

(4)The remaining cost represents the initial investment of the general partner and limited partners, reduced for returns of capital.

The following table presents information regarding larger leveraged credit strategies managed by KKR from inception to June 30, 2025. The information presented below is not intended to be representative of any past or future performance for any particular period other than the period presented below. Past performance is no guarantee of any future result.


Leveraged Credit Strategy	Inception Date	Gross Returns		Net Returns		Benchmark (1)	Benchmark Gross Returns
Multi-Asset Credit Composite	Jul 2008	7.18	%	6.49	%	50% S&P/LSTA Loan Index, 50% BoAML HY Master II Index (2)	5.86%
Opportunistic Credit (3)	May 2008	10.50	%	8.99	%	50% S&P/LSTA Loan Index, 50% BoAML HY Master II Index (3)	6.03%
Bank Loans	Apr 2011	5.86	%	5.29	%	S&P/LSTA Loan Index (4)	4.89%
High-Yield	Apr 2011	6.32	%	5.73	%	BoAML HY Master II Index (5)	5.67%

European Leveraged Loans (6)	Sep 2009	4.96	%	4.44	%	CS Inst West European Leveraged Loan Index (7)	4.04%

European Credit Opportunities (6)	Sept 2007	6.87	%	5.64	%	S&P European Leveraged Loans (All Loans) (8)	4.51%

(1)The benchmarks referred to herein include the S&P/LSTA Leveraged Loan Index (the "S&P/LSTA Loan Index"), S&P/LSTA U.S. B/BB Ratings Loan Index (the "S&P/LSTA BB-B Loan Index"), the Bank of America Merrill Lynch High Yield Master II Index (the "BoAML HY Master II Index"), the BofA Merrill Lynch BB-B US High Yield Index (the "BoAML HY BB-B Constrained"), the Credit Suisse Institutional Western European Leveraged Loan Index (the "CS Inst West European Leveraged Loan Index"), and S&P European Leveraged Loans (All Loans). The S&P/LSTA Loan Index is a daily tradable index for the U.S. loan market that seeks to mirror the market-weighted performance of the largest institutional loans that meet certain criteria. The BoAML HY Master II Index is an index for high-yield corporate bonds. It is designed to measure the broad high-yield market, including lower-rated securities. The CS Inst West European Leveraged Loan Index contains only institutional loan facilities priced above 90, excluding TL and TLa facilities and loans rated CC, C or are in default. The S&P European Leveraged Loan Index reflects the market-weighted performance of institutional leveraged loan portfolios investing in European credits. While the returns of our leveraged credit strategies reflect the reinvestment of income and dividends, none of the indices presented in the chart above reflect such reinvestment, which has the effect of increasing the reported relative performance of these strategies as compared to the indices. Furthermore, these indices are not subject to management fees, incentive allocations, or expenses.

(2)Performance is based on a blended composite of Bank Loans, High Yield, and Structured Credit strategy accounts. The benchmark used for purposes of comparison for the Multi-Asset Credit Composite strategy is based on 65% S&P/LSTA Loan Index and 35% BoAML HY Master II Index to May 2022, and 50% S&P/LSTA Loan Index, 50% BoAML HY Master II Index, from June 2022.

(3)The Opportunistic Credit strategy invests in high-yield securities and corporate loans with no preset allocation. The benchmark used for purposes of comparison for the Opportunistic Credit strategy presented herein is based on 50% S&P/LSTA Loan Index and 50% BoAML HY Master II Index. Funds within this strategy may utilize third-party financing facilities to enhance investment returns. In cases where financing facilities are used, the amounts drawn on the facility are deducted from the assets of the fund in the calculation of net asset value, which tends to increase returns when net asset value grows over time and decrease returns when net asset value decreases over time.

(4)Performance is based on a composite of portfolios that primarily invest in leveraged loans. The benchmark used for purposes of comparison for the Bank Loans strategy is based on the S&P/LSTA Loan Index.

(5)Performance is based on a composite of portfolios that primarily invest in high-yield securities. The benchmark used for purposes of comparison for the High Yield strategy is based on the BoAML HY Master II Index.

(6)The returns presented are calculated based on local currency.

(7)Performance is based on a composite of portfolios that primarily invest in higher quality leveraged loans. The benchmark used for purposes of comparison for the European Leveraged Loans strategy is based on the CS Inst West European Leveraged Loan Index.

(8)Performance is based on a composite of portfolios that primarily invest in European institutional leveraged loans. The benchmark used for purposes of comparison for the European Credit Opportunities strategy is based on the S&P European Leveraged Loans (All Loans) Index.

The following table presents information regarding our alternative credit investment funds where investors have capital commitments from inception to June 30, 2025. The information presented below is not intended to be representative of any past or future performance for any particular period other than the period presented below. Past performance is no guarantee of any future result.


		Amount				Fair Value of Investments
Credit and Liquid Strategies Investment Funds	Investment Period Start Date	Commitment		Invested (1)		Realized (1)		Unrealized		Total Value		Gross IRR (2)		Net IRR (2)		Multiple of Invested Capital (3)
($ in Millions)
Opportunities Fund II	Nov 2021	$	2,375	$	1,445	$	51	$	1,663	$	1,714	16.4	%	12.2	%	1.2
Dislocation Opportunities Fund	Aug 2019	2,967		2,644		1,839		1,545		3,384		10.1	%	8.0	%	1.3
Special Situations Fund II	Feb 2015	3,525		3,241		2,622		687		3,309		0.5	%	(1.3)	%	1.0
Special Situations Fund	Jan 2013	2,274		2,273		1,899		135		2,034		(2.4)	%	(4.2)	%	0.9
Mezzanine Partners	July 2010	1,023		990		1,166		1		1,167		6.5	%	2.7	%	1.2
Asset-Based Finance Partners II	Mar 2024	4,727		—		—		—		—		N/A		N/A		N/A
Asset-Based Finance Partners	Oct 2020	2,059		1,367		323		1,486		1,809		14.9	%	11.1	%	1.3
Private Credit Opportunities Partners II	Dec 2015	2,245		1,995		1,010		1,167		2,177		2.2	%	0.4	%	1.1
Lending Partners IV	Mar 2022	1,150		862		141		889		1,030		17.8	%	14.1	%	1.2
Lending Partners III	Apr 2017	1,498		958		1,223		363		1,586		14.2	%	11.6	%	1.7
Lending Partners II	Jun 2014	1,336		1,179		1,261		17		1,278		2.8	%	1.4	%	1.1
Lending Partners	Dec 2011	460		420		458		7		465		3.2	%	1.6	%	1.1
Lending Partners Europe II	May 2019	837		633		598		353		951		17.0	%	13.5	%	1.5
Lending Partners Europe	Mar 2015	848		662		595		84		679		0.9	%	(1.0)	%	1.0
Asia Credit Opportunities	Jan 2021	1,084		729		64		900		964		15.6	%	11.7	%	1.3
Other Alternative Credit Investment Vehicles	Various	16,830		9,916		6,997		6,654		13,651		N/A		N/A		N/A

All Funds		$	45,238	$	29,314	$	20,247	$	15,951	$	36,198

(1)Recycled capital is excluded from the amounts invested and realized.

(2)These credit funds utilize third-party financing facilities to provide liquidity to such funds, and in such event IRRs are calculated from the time capital contributions are due from fund investors to the time fund investors receive a related distribution from the fund. The use of such financing facilities generally decreases the amount of invested capital that would otherwise be used to calculate IRRs, which tends to increase IRRs when fair value grows over time and decrease IRRs when fair value decreases over time. IRRs measure the aggregate annual compounded returns generated by a fund's investments over a holding period and are calculated taking into account recycled capital. Net IRRs presented are calculated after giving effect to the allocation of realized and unrealized carried interest and the payment of any applicable management fees and organizational expenses. Gross IRRs are calculated before giving effect to the allocation of carried interest and the payment of any applicable management fees and organizational expenses.

(3)The multiples of invested capital measure the aggregate value generated by a fund's investments in absolute terms. Each multiple of invested capital is calculated by adding together the total realized and unrealized values of a fund's investments and dividing by the total amount of capital invested by the investors. The use of financing facilities generally decreases the amount of invested capital that would otherwise be used to calculate multiples of invested capital, which tends to increase multiples when fair value grows over time and decrease multiples when fair value decreases over time. Such amounts do not give effect to the allocation of any realized and unrealized returns on a fund's investments to the fund's general partner pursuant to a carried interest or the payment of any applicable management fees and are calculated without taking into account recycled capital.

For additional information regarding impact of market conditions on the value and performance of our investments, see "Risk Factors—Risks Related to Our Business—Difficult market and economic conditions can, and periodically do, materially and adversely affect KKR." and "Risk Factors—Risks Related to Our Investment Activities—Future results of our investments may be different than, and may not achieve the levels of, any of our historical returns" in our Annual Report.

The table below presents information as of June 30, 2025, based on the investment funds or other investment vehicles or accounts offered by our Credit and Liquid Strategies business line. Our funds, investment vehicles, and accounts have been sorted based upon their primary investment strategies. However, the AUM and FPAUM presented for each line in the table includes certain investments from non-primary investment strategies, which are permitted by their investment mandates, for purposes of presenting the fees and other terms for such funds, investment vehicles, and accounts.


($ in millions)	AUM		FPAUM		Typical Management Fee Rate	Incentive Fee / Carried Interest	Preferred Return	Duration of Capital
Leveraged Credit:
Leveraged Credit SMAs/Funds (1)	$	103,583	$	97,317	0.15% - 1.30%	Various (2)	Various (2)	Subject to redemptions
CLOs	30,588		30,588		0.40% - 0.50%	Various (2)	Various (2)	10-14 Years (3)
Total Leveraged Credit	134,171		127,905

Alternative Credit: (4)
Private Credit (1)	103,603		85,939		0.25% - 1.50% (5)	10.00 - 20.00%	5.00 - 8.00%	8-15 Years (3)
SIG	7,427		4,102		0.50% - 1.75%	10.00 - 20.00%	7.00 - 12.00%	7-15 Years (3)
Total Alternative Credit	111,030		90,041

Hedge Funds (6)	30,422		30,422		0.50% - 2.00%	Various (2)	Various (2)	Subject to redemptions
BDCs (7)	16,160		16,160		0.60% - 0.75%	8.75% - 10.00%	7.00%	Indefinite
Total	$	291,783	$	264,528

(1)Includes credit investments we manage for our Global Atlantic insurance companies. This capital is perpetual in nature, not subject to an incentive fee or carried interest, and does not require a preferred return.

(2)Certain funds and CLOs are subject to a performance fee in which the manager or general partner of the funds share up to 20% of the net profits earned by investors in excess of performance hurdles (generally tied to a benchmark or index) and subject to a provision requiring the funds and investment vehicles to regain prior losses before any performance fee is earned.

(3)Duration of capital is measured from inception. Inception dates for CLOs were between 2013 and 2025 and for separately managed accounts and funds investing in alternative credit strategies from 2009 through 2025.

(4)Our alternative credit funds generally have investment periods of two to five years and our newer alternative credit funds generally earn management fees on invested capital throughout their lifecycle.

(5)Lower fees on uninvested capital in certain investment vehicles.

(6)Hedge Funds represent KKR's pro rata portion of AUM and FPAUM of our hedge fund partnerships.

(7)Represents FSK, KKR FS Income Trust, and KKR FS Income Trust Select. We report all of the assets under management of these BDCs in our AUM and FPAUM.

Capital Markets

Our Capital Markets business line is comprised of our global capital markets business, which serves our firm, including our insurance business, our portfolio companies, and third-party clients by developing and implementing both traditional and non-traditional capital solutions for investments or companies seeking financing. These services include arranging debt and equity financing, placing and underwriting securities offerings, and providing other types of capital markets services that result in the firm receiving fees, including underwriting, placement, transaction and syndication fees, commissions, underwriting discounts, interest payments and other compensation, which may be payable in cash or securities, in respect of the activities described above. Third-party clients of our capital markets business include multi-national corporations, public and private companies, financial sponsors, mutual funds, pension funds, sovereign wealth funds, and hedge funds globally. Our capital markets business provides these clients with differentiated access to capital through our distribution platform.

Our capital markets business underwrites credit facilities and arranges loan syndications and participations. When we are sole or lead arrangers of a credit facility, we may advance amounts to the borrower on behalf of other lenders, subject to repayment. When we underwrite an offering of securities on a firm commitment basis, we commit to buy and sell an issue of securities and generate revenue by purchasing the securities at a discount or for a fee. When we act in an agency capacity or best efforts basis, we generate revenue for arranging financing or placing securities with capital markets investors. We may also provide issuers with capital markets advice on capital structuring, access to markets, marketing considerations, securities pricing, and other aspects of capital markets transactions in exchange for a fee. Our capital markets business also provides syndication services in respect of co-investments in transactions participated in by KKR, our funds, Global Atlantic, and third-party clients, which may entitle the firm to receive syndication fees, management fees, and/or a carried interest.

The capital markets business has a global footprint, with local presence and licenses to carry out certain broker-dealer activities in various countries in North America, Europe, Asia-Pacific, and the Middle East. Our flagship capital markets subsidiaries include KKR Capital Markets LLC, which is an SEC-registered broker-dealer and a member of FINRA, KKR Capital Markets (Ireland) Limited, which is authorized and regulated by the Central Bank of Ireland, KKR Capital Markets Partners LLP, which is authorized and regulated by the Financial Conduct Authority, KKR Capital Markets Japan Limited, a Type I and Type II Financial Instruments Business Operator (broker dealer) under the Financial Instruments and Exchange Act of Japan, KKR Capital Markets Asia Limited, a Hong Kong licensed asset manager and broker-dealer licensed by the Securities and Futures Commission in Hong Kong to carry on dealing in securities, advising on securities and asset management regulated activities, and KKR Capital Markets Asia II Limited, a Hong Kong licensed broker-dealer licensed by the Securities and Futures Commission in Hong Kong to carry on dealing in securities and advising on securities.

Principal Activities

Through our Principal Activities business line, we manage certain of the firm’s assets and deploy capital to support and grow our Private Equity, Real Assets, and Credit and Liquid Strategies business lines.

Typically, the funds in our Private Equity, Real Assets, and Credit and Liquid Strategies business lines contractually require us, as general partner of the funds, to make sizable capital commitments. We believe making general partner commitments assists us in raising new funds from limited partners by demonstrating our conviction in a given fund’s strategy. Our commitments to fund capital also occurs where we are the holder of the subordinated notes or the equity tranche of investment vehicles that we sponsor, including structured transactions. We also use our balance sheet to bridge investment activity during fundraising and, for example, by funding investments for new funds. We also use our own capital to bridge capital selectively for our funds’ investments or finance strategic transactions, although the financial results of an acquired business may be reported in our other business lines.

Our Principal Activities business line also provides the required capital to fund the various commitments of our Capital Markets business line when underwriting or syndicating securities, or when providing term loan commitments for transactions involving our portfolio companies and for third parties. Our Principal Activities business line also holds assets that are utilized to satisfy regulatory requirements for our Capital Markets business line and risk retention requirements for certain investment vehicles.

We also make opportunistic investments through our Principal Activities business line, which include co-investments alongside our Private Equity, Real Assets, and Credit and Liquid Strategies funds, as well as Principal Activities investments that do not involve our Private Equity, Real Assets, or Credit and Liquid Strategies funds.

We endeavor to use our balance sheet strategically and opportunistically to generate an attractive risk-adjusted return on equity in a manner that is consistent with our fiduciary duties, in compliance with applicable laws, and consistent with our one firm approach.

The chart below presents the holdings of our Principal Activities business line by asset class as of June 30, 2025, excluding our ownership of businesses reported through our Strategic Holdings segment.

Holdings by Asset Class (1)

2479

(1)General partner commitments to our funds are included in the various asset classes shown above. Assets and revenues of other asset managers with which KKR has formed strategic partnerships where KKR does not hold more than 50% ownership interest are not included in our Principal Activities business line but are reported in the financial results of our other business lines.

Insurance

Our insurance business is operated by Global Atlantic, which operates as a separate business with its existing brands and management team. KKR acquired a majority controlling interest in Global Atlantic on February 1, 2021 and the remainder of Global Atlantic on January 2, 2024. Since the first quarter of 2021, we have presented Global Atlantic's financial results as a separate reportable segment.

Global Atlantic is a leading retirement and life insurance company that provides a broad suite of protection, legacy and savings products to customers and reinsurance solutions to clients across individual and institutional markets. Global Atlantic focuses on target markets that it believes support issuing products that have attractive risk and return characteristics. These markets allow Global Atlantic to leverage its strength in distribution and to deploy shareholder capital opportunistically across various market environments.

Global Atlantic offers individual customers fixed-rate annuities, fixed-indexed annuities, and preneed life insurance products primarily through a network of banks, broker-dealers, and independent marketing organizations. Global Atlantic provides its institutional clients customized reinsurance solutions, including block, flow and pension risk transfer ("PRT") transactions, as well as funding agreements. Global Atlantic’s assets generally increase when individual market sales and reinsurance transactions exceed run-off of in-force policies. Global Atlantic primarily generates income by earning a spread on assets under management, as the difference between its net investment income and the cost of policyholder benefits. Global Atlantic also earns fees paid by policyholders on certain types of contracts and fees paid by third-party investors, which are reported in the asset management segment. As of June 30, 2025, Global Atlantic served over three and a half million policyholders.

Global Atlantic also sponsors co-investment vehicles ("Ivy and other co-investment vehicles") that provide third-party capital to support Global Atlantic’s business. Ivy and other co-investment vehicles participate alongside Global Atlantic, primarily in certain block, flow, PRT, and other reinsurance transactions that Global Atlantic enters into during the vehicles’ respective investment periods. Ivy and other co-investment vehicles generally are not consolidated into our financial statements. As of June 30, 2025, third parties have committed capital to Ivy and other co-investment vehicles of approximately $7.5 billion, of which $3.2 billion has been deployed. Following the end of the quarter, on July 30, 2025, Global Atlantic announced an additional $2 billion commitment to a co-investment vehicle that, subject to regulatory approvals, is expected to access certain insurance, reinsurance, and strategic transactions of Global Atlantic.

In addition to the overview of our insurance business operated by Global Atlantic provided in this report, please also refer to our Annual Report. The following table represents Global Atlantic’s new business volumes by business and product for the three and six months ended June 30, 2025 and 2024:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
($ in millions)
Individual Channel:
Fixed-Rate Annuities	$	1,199	$	2,150	$	3,145	$	5,135
Fixed-Indexed Annuities	1,955		1,756		3,496		3,020
Variable Annuities	6		5		11		10
Total Retirement Products(1)	$	3,160	$	3,911	$	6,652	$	8,165



Preneed Life	284		63		541		132

Institutional Channel:
Block	—		1,719		—		11,881
Flow	2,551		4,210		4,909		7,009
Pension Risk Transfer	195		334		333		439
Funding Agreements(2)	1,073		200		2,241		895
Total Institutional Channel(3)(4)	$	3,819	$	6,463	$	7,483	$	20,224

(1)New business volumes in individual markets are referred to as sales. In Global Atlantic's individual market channel, sales of annuities include all money paid into new and existing contracts. Individual market channel sales of life insurance products are based on commissionable premium and individual market channel sales for preneed life are based on the face amount of insurance. Life insurance product sales do not include the recurring premiums that policyholders may pay over time.

(2)Funding agreements new business volumes represent funding agreements issued in connection with the funding agreement backed note ("FABN") program and Federal Home Loan Banks (“FHLB”) funding agreement programs.

(3)Block reinsurance transactions may be episodic and volumes may fluctuate. Similarly, funding agreements issued in the FABN program are subject to capital markets conditions and volumes may fluctuate. Flow and pension risk transfer new business volumes typically occur throughout the year.

(4)New business volumes from Global Atlantic’s institutional market channel are based on the assets assumed, net of any ceding commission, and are gross of any retrocessions to investment vehicles that participate in qualifying reinsurance transactions sourced by Global Atlantic and to other third party reinsurers.

The table below represents a breakdown of Global Atlantic’s policy liabilities by business and product type as of June 30, 2025, separated by reserves originated through its individual and institutional markets.


	Reserves as of June 30, 2025
	Individual Market		Institutional Market(4)		Total		Ceded		Total, net		Percentage of Total
	($ in thousands, except percentages, if applicable)
Fixed-Rate Annuities(1)	$	29,814,388	$	37,130,546	$	66,944,934	$	(12,145,901)	$	54,799,033	34.2	%
Fixed-Indexed Annuities(1)	31,763,232		11,173,680		42,936,912		(3,001,627)		39,935,285		22.1	%
Payout Annuities(1)	592,063		23,002,107		23,594,170		(11,805,406)		11,788,764		12.1	%
Variable Annuities	2,154,203		5,252,212		7,406,415		(2,095,102)		5,311,313		3.8	%
Interest Sensitive Life(1)	13,667,239		18,930,283		32,597,522		(8,713,129)		23,884,393		16.7	%

Other Life Insurance(2)	3,994,391		4,101,399		8,095,790		(2,833,669)		5,262,121		4.1	%
Funding Agreements(3)	—		8,301,111		8,301,111		—		8,301,111		4.2	%
Closed Block and Other Corporate Products	—		1,029,748		1,029,748		(967,813)		61,935		0.5	%
Other(5)	—		4,613,016		4,613,016		(3,729,600)		883,416		2.3	%
Total Reserves	$	81,985,516	$	113,534,102	$	195,519,618	$	(45,292,247)	$	150,227,371	100.0	%

Total General Account	$	80,108,710	$	111,567,526	$	191,676,236	$	(45,292,247)	$	146,383,989	98.0	%
Total Separate Account	1,876,806		1,966,576		3,843,382		—		3,843,382		2.0	%
Total Reserves	$	81,985,516	$	113,534,102	$	195,519,618	$	(45,292,247)	$	150,227,371	100.0	%

(1)As of June 30, 2025, 83% of the account value in Global Atlantic's general account associated with its fixed-rate and fixed-indexed annuity products, and 39% of account value in its general account associated with universal life products was protected by surrender charges.

(2)"Other life products” includes universal life, term and whole life insurance products.

(3)"Funding agreements” includes funding agreements associated with FHLB borrowings and under Global Atlantic's FABN program.

(4)Institutional market reserves are sourced using customized reinsurance solutions such as block, flow and PRT. As of June 30, 2025, reserves sourced through block, flow and PRT transactions were $61.3 billion, $34.5 billion and $6.5 billion, respectively.

(5)“Other” includes long-term care insurance where Global Atlantic has ceded mortality and morbidity risk to a third-party reinsurance company.

Strategic Holdings

Our Strategic Holdings segment is currently comprised of the firm’s ownership in the businesses we acquired through our participation in our core private equity strategy. In our core private equity strategy, our objective is to acquire and manage controlling interests in operating companies, which we intend to hold over a longer period of time and that we believe have a lower anticipated risk profile than our investments in businesses acquired through our traditional private equity strategy. Our core private equity portfolio companies are generally expected to be more stable and typically have lower leverage over our holding period than our traditional private equity portfolio companies. We may acquire in the future other long-term assets in our Strategic Holdings segment that are not part of the core private equity strategy, and our Strategic Holdings segment is not limited to a specific industry or constrained to any investment strategy that we may manage for our investment funds or vehicles.

As of June 30, 2025, our Strategic Holdings segment consisted of our ownership stakes in 18 companies that we acquired through our core private equity strategy. Based on certain information made available to management as of June 30, 2025, approximately 70% of these companies are based in the Americas, 25% in Europe, and 5% in the Asia-Pacific (based on the geographic location of their headquarters). In addition, based on such information, these companies are primarily engaged in the following business sectors: approximately 36% in Business Services, 28% in Consumer, 14% in Healthcare, 13% in technology-media-telecommunications (TMT), and 9% in Infrastructure. We currently expect our Strategic Holdings segment to generate income from the receipt of dividends from our ownership stakes in these businesses, and if any ownership stake were to be sold, we would recognize realized investment income from such sale.

The fees and carried interest paid by the third party investors in our core private equity funds continues to be reported in our Asset Management segment and are not reported in our Strategic Holdings segment. Our Asset Management segment charges a quarterly management fee based on invested capital in our Strategic Holdings segment. Additionally, our Asset Management segment charges a performance fee from the sale of our interests in the companies included in our Strategic Holdings segment. The management and performance fees are charged in order to represent the cost of providing advisory services by our Asset Management segment rather than determining the allocable costs borne by our Asset Management segment to support our Strategic Holdings segment.

Business Environment

Our asset management, insurance, and strategic holdings segments are affected by the various market and economic conditions of the various countries and regions in which we operate. Market and economic conditions are expected to continue to have a substantial impact on our financial condition, results of operations, and our business in various ways that we are unable to control, including our ability to make new investments, the valuations of the investments we manage, the amount of investment proceeds we realize when we exit our investments, the timing for such realization activity, our ability to fundraise or to sell our various investment and insurance products and services, and the level of our capital markets activities, as discussed in the "Risk Factors" section of our Annual Report.

The United States, during the second quarter of 2025, experienced an expansion in economic growth while also continuing to experience persistent inflation in excess of the U.S. Federal Reserve Board’s target rate. The U.S. Federal Reserve Board decided to maintain the target range unchanged at 4.25% to 4.50% for the federal funds rate noting inflation, including potential increases in inflation relating to trade and tariff policies, as a consideration in deciding to leave the target range unchanged.

GDP growth in the Eurozone during the second quarter of 2025 was moderately positive. In Europe during the second quarter 2025, the European Central Bank continued to lower rates with two rate decreases in the quarter, lowering the deposit rate to 2.0% as Eurozone inflation slowed as compared to the prior quarter albeit remaining above the European Central Bank’s 2% inflation target.

In Asia, Japan’s economy is expected to have experienced positive growth in the second quarter of 2025. The Bank of Japan kept interest rates flat during the second quarter of 2025, leaving its policy rate at 0.50%. In China, the economy grew during the second quarter of 2025 but continued to experience divergent economic conditions and headwinds as compared to Japan as Chinese growth remains subject to various headwinds including in the property sector and uncertainty relating to a potential trade war with the United States as discussed further below.

Several key economic indicators in the United States and in other countries and regions in which we operate include:

GDP.** In the United States, real gross domestic product (“GDP”) expanded by 3.0% for the three months ended June 30, 2025, compared to a contraction of -0.5% for the three months ended March 31, 2025. Eurozone real GDP expanded by 0.1% for the three months ended June 30, 2025, down from a 0.6% expansion for the three months ended March 31, 2025. In Japan, real GDP is estimated to have increased by 0.3% for the three months ended June 30, 2025, up from a -0.2% contraction for the three months ended March 31, 2025. Real GDP in China increased by 4.4% for the three months ended June 30, 2025, compared to an expansion of 4.8% reported for the three months ended March 31, 2025.
Interest Rates.** The effective federal funds rate set by the U.S. Federal Reserve Board was 4.33% as of June 30, 2025, unchanged from March 31, 2025. The short-term benchmark interest rate set by the European Central Bank was 2.15% as of June 30, 2025, down from 2.65% as of March 31, 2025. The short-term benchmark interest rate set by the Bank of Japan was 0.50% as of June 30, 2025 with no change as compared with the rate as of March 31, 2025. The benchmark interest rate set by The People's Bank of China was 3.0% as of June 30, 2025, down from 3.1% as of March 31, 2025.
Inflation.** The U.S. core consumer price index rose 2.9% on a year-over-year basis as of June 30, 2025, up from 2.8% on a year-over-year basis as of March 31, 2025. Eurozone core inflation was 2.3% as of June 30, 2025, down from 2.4% as of March 31, 2025. In Japan, core inflation rose 1.6% on a year-over-year basis as of June 30, 2025, flat from 1.6% on a year-over-year basis as of March 31, 2025. Core inflation in China was 0.7% on a year-over-year basis as of June 30, 2025, up from 0.5% as of March 31, 2025.
Unemployment.** The U.S. unemployment rate was 4.1% as of June 30, 2025, down from 4.2% as of March 31, 2025. Eurozone unemployment was 6.3% as of June 30, 2025, down from 6.4% as of March 31, 2025. The unemployment rate in Japan was 2.5% as of June 30, 2025, unchanged from March 31, 2025. The unemployment rate in China was 5.2% as of June 30, 2025, up from 5.0% as of March 31, 2025.

Several key financial market indicators in the United States and in other countries and regions in which we operate include:

Equity Markets.** For the three months ended June 30, 2025, the S&P 500 was up 10.9%, the MSCI Europe Index was up 13.3%, the MSCI Asia Index was up 12.5% and the MSCI World Index was up 11.6% on a total return basis including dividends. Equity market volatility as evidenced by the Chicago Board Options Exchange Market Volatility Index (VIX), a measure of volatility, ended at 16.7 as of June 30, 2025, decreasing from 22.3 as of March 31, 2025.
Credit Markets.** During the three months ended June 30, 2025, U.S. investment grade corporate bond spreads (BofA Merrill Lynch US Corporate Index) widened by 15 basis points. The non-investment grade credit indices were up during the three months ended June 30, 2025 with the S&P/LSTA Leveraged Loan Index up 2.3% and the BofAML HY Master II Index up 3.6%. During the three months ended June 30, 2025, the 10-year government bond yields rose 2 basis points in the United States, fell 13 basis points in Germany, fell 6 basis points in Japan, fell 19 basis points in the UK and fell 16 basis points in China.
Commodity Markets.** During the three months ended June 30, 2025, the 3-year forward price of WTI crude oil decreased approximately 2.9%, and the 3-year forward price of natural gas decreased from approximately $3.59 per MMBtu as of March 31, 2025 to $3.25 per MMBtu as of June 30, 2025. The Japan spot LNG import price decreased to approximately $11.48 per MMBtu as of June 30, 2025 from approximately $15.31 per MMBtu as of March 31, 2025.
Foreign Exchange Rates.** For the three months ended June 30, 2025, the euro rose 9.0%, the British pound rose 6.3%, the Japanese yen rose 4.1%, and the Chinese renminbi rose 1.3%, respectively, relative to the U.S. dollar.

Beginning in March 2025 and continuing through the date of the filing of this report, the United States and countries around the world have experienced elevated levels of market volatility and uncertainty driven principally by geopolitical and global trade concerns, including, in particular, the announcements of the imposition of tariffs by the United States on certain of its trading partners since April 2025 and certain retaliation by such trade partners. This volatility and uncertainty adds to the various risks and uncertainties in the business environment in which we operate and may have various impacts, including on the valuations of certain of our and our investment vehicles' investments, the pace and volume of our capital market transactions, deployments, and realizations, and our fundraising activities.

Other Trends, Uncertainties and Risks Related to Our Business

Please refer to the "Risk Factors" section of our Annual Report for important additional detail regarding risks, uncertainties, and other conditions that could have a material favorable or unfavorable impact on our businesses, including the impact of market and economic conditions on valuations of investments and the impact of competition we face. These risks, uncertainties, and other conditions should be read in conjunction with this Business Environment section and the entire Risk Factor section of our Annual Report. In particular, see "Risk Factors—Risks Related to Our Business—Geopolitical developments and other local and global events outside of our control can materially and adversely impact KKR”, "Risk Factors—Risks Related to Our Investment Activities—Our valuation methodologies for certain assets can be subjective, and the fair value of assets established pursuant to such subjective methodologies is uncertain and may never be realized”, “Risk Factors—Risks Related to Our Investment Activities—Various market and economic conditions and events outside of our control that are difficult to quantify or predict may have a significant impact on the valuation of our investments and, therefore, on our financial results”, and "Risk Factors—Risks Related to Our Business—The investment management and insurance businesses are intensely competitive."

Basis of Accounting and Key Financial Measures under GAAP

We manage our business using certain financial measures and key operating metrics since we believe these metrics measure the productivity of our operating activities. We prepare our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”). See Note 2 “ Summary of Significant Accounting Policies” in our financial statements and “—Critical Accounting Policies and Estimates” contained in this section below. Our key Segment and non-GAAP financial measures and operating metrics are discussed below.

Key Segment and Non-GAAP Performance Measures

The following key segment and non-GAAP performance measures are used by management in making operational and resource deployment decisions as well as assessing the performance of KKR's business. They include certain financial measures that are calculated and presented using methodologies other than in accordance with GAAP. These performance measures as described below are presented prior to giving effect to the allocation of income (loss) between KKR & Co. Inc. and holders of exchangeable securities and as such represent the entire KKR business in total. In addition, these performance measures are presented without giving effect to the consolidation of certain investment funds and collateralized financing entities ("CFEs") that KKR manages.

We believe that providing these segment and non-GAAP performance measures on a supplemental basis to our GAAP results is helpful to stockholders in assessing the overall performance of KKR's business. These non-GAAP measures should not be considered as a substitute for financial measures calculated in accordance with GAAP. Reconciliations of these non-GAAP measures to the most directly comparable financial measures calculated and presented in accordance with GAAP, where applicable are included under "—Segment Balance Sheet Measures—Reconciliations to GAAP Measures."

Adjusted Net Income

Adjusted Net Income ("ANI") is a performance measure of KKR’s earnings, which is derived from KKR’s reported segment results. ANI is used to assess the performance of KKR’s business operations and measures the earnings potentially available for distribution to its equity holders or reinvestment into its business. ANI is equal to Total Segment Earnings less Interest Expense, Net and Other and Income Taxes on Adjusted Earnings. Interest Expense, Net and Other includes interest expense on debt obligations not attributable to any particular segment and the cumulative dividend expense for the Series D Mandatory Convertible Preferred Stock net of interest income earned on cash and short-term investments. Income Taxes on Adjusted Earnings represents the (i) amount of income taxes that would be paid assuming that all pre-tax Asset Management and Strategic Holdings segment earnings were allocated to KKR & Co. Inc. and taxed at the same effective rate, which assumes that all securities exchangeable into shares of common stock of KKR & Co. Inc. were exchanged and (ii) amount of income taxes on Insurance Operating Earnings. Income taxes on Insurance Operating Earnings represent the total current and deferred tax expense or benefit on income before taxes adjusted to eliminate the impact of the tax expense or benefit associated with the non-operating adjustments. Equity based compensation expense is excluded from ANI, because (i) KKR believes that the cost of equity awards granted to employees does not contribute to the earnings potentially available for distributions to its equity holders or reinvestment into its business and (ii) excluding this expense makes KKR’s reporting metric more comparable to the corresponding metric presented by other publicly traded companies in KKR’s industry, which KKR believes enhances an investor’s ability to compare KKR’s performance to these other companies. Income Taxes on Adjusted Earnings includes the benefit of tax deductions arising from equity-based compensation, which reduces Income Taxes on Adjusted Earnings during the period. If tax deductions from equity-based compensation were to be excluded from Income Taxes on Adjusted Earnings, KKR’s ANI would be lower and KKR’s effective tax rate would appear to be higher, even though a lower amount of income taxes would have actually been paid or payable during the period. KKR separately discloses the amount of tax deduction from equity-based compensation for the period reported and the effect of its inclusion in ANI for the period. KKR makes these adjustments when calculating ANI in order to more accurately reflect the net realized earnings that are expected to be or become available for distribution to KKR’s equity holders or reinvestment into KKR’s business. However, ANI does not represent and is not used to calculate actual dividends under KKR’s dividend policy, which is a fixed amount per period, and ANI should not be viewed as a measure of KKR’s liquidity.

Total Segment Earnings

Total Segment Earnings is a performance measure that KKR believes is useful to stockholders as it provides a supplemental measure of our operating performance without taking into account items that KKR does not believe arise from or relate directly to KKR's operations. Total Segment Earnings excludes: (i) equity-based compensation charges, (ii) amortization of acquired intangibles, and (iii) transaction-related and non-operating items, if any. Transaction-related and non-operating items arise from corporate actions and non-operating items, which consist of: (i) impairments, (ii) transaction costs from acquisitions, (iii) depreciation on real estate that KKR owns and occupies, (iv) contingent liabilities, net of any recoveries, and (v) other gains or charges that affect period-to-period comparability and are not reflective of KKR's ongoing operational performance. Inter-segment transactions are not eliminated from segment results when management considers those transactions in assessing the results of the respective segments. These transactions include (i) management fees earned by our Asset Management segment as the investment adviser for Global Atlantic insurance companies, (ii) management and performance fees earned by our Asset Management segment for acquiring and managing the companies included in our Strategic Holdings segment, and (iii) interest income and expense based on lending arrangements where our Asset Management segment borrows from our Insurance segment. All these inter-segment transactions are recorded by each segment based on the applicable governing agreements. Additionally, due to the integrated nature of our segment operations and as part of our strategic capital allocation decisions, intersegment asset transfers have and may continue to occur. In these cases in segment reporting, the assets are transferred at their fair value, and no gain or loss is recognized at the time of transfer. Earnings are recognized upon realization events and transactions with third parties. Total Segment Earnings represents the total segment earnings of KKR’s Asset Management, Insurance and Strategic Holdings segments.

Asset Management Segment Earnings

Asset management segment earnings is the segment profitability measure used to make operating decisions and to assess the performance of the Asset Management segment. This measure is presented before income taxes and is comprised of: (i) Fee Related Earnings, (ii) Realized Performance Income, (iii) Realized Performance Income Compensation, (iv) Realized Investment Income, and (v) Realized Investment Income Compensation. Asset Management Segment Earnings excludes the impact of: (i) unrealized gains (losses) on investments, (ii) unrealized carried interest, and (iii) unrealized carried interest compensation. Management fees earned by KKR as the adviser, manager or sponsor for its investment funds, vehicles and accounts, including its Global Atlantic insurance companies and Strategic Holdings segment, are included in Asset Management Segment Earnings.

Insurance Operating Earnings

Insurance Operating Earnings is the segment profitability measure used to make operating decisions and to assess the performance of the Insurance segment. This measure is presented before income taxes and is comprised of: (i) Net Investment Income, (ii) Net Cost of Insurance, and (iii) General, Administrative, and Other Expenses. Insurance Operating Earnings excludes the impact of: (i) investment gains (losses) which include realized gains (losses) related to asset/liability matching investment strategies and unrealized investment gains (losses) and (ii) non-operating changes in policy liabilities and derivatives which includes (a) changes in the fair value of market risk benefits and other policy liabilities measured at fair value and related benefit payments, (b) fees attributed to guaranteed benefits, (c) derivatives used to manage the risks associated with policy liabilities, and (d) losses at contract issuance on payout annuities. Insurance Operating Earnings includes (i) realized gains and losses not related to asset/liability matching investment strategies and (ii) the investment management costs that are earned by our Asset Management segment as the investment adviser of the Global Atlantic insurance companies.

Strategic Holdings Segment Earnings

Strategic Holdings Segment Earnings is the segment profitability measure used to make operating decisions and to assess the performance of the Strategic Holdings segment. This measure is presented before income taxes and is comprised of: Dividends, Net and Net Realized Investment Income. Strategic Holdings Segment Earnings excludes the impact of unrealized gains (losses) on investments. Strategic Holdings Segment Earnings includes management fees and performance fee expenses that are earned by the Asset Management segment.

Fee Related Earnings

Fee related earnings is a performance measure used to assess the Asset Management segment’s generation of earnings from revenues that are measured and received on a more recurring basis as compared to KKR’s investing earnings. KKR believes this measure is useful to stockholders as it provides additional insight into the profitability of our fee generating asset management and capital markets businesses. FRE equals (i) Management Fees, including fees paid by the Insurance and Strategic Holdings segments to the Asset Management segment and fees paid by Ivy vehicles and other reinsurance vehicles, (ii) Transaction and Monitoring Fees, Net and (iii) Fee Related Performance Revenues, less (x) Fee Related Compensation, and (y) Other Operating Expenses.

Fee Related Performance Revenues refers to the realized portion of performance fees from certain AUM that has an indefinite term and for which there is no immediate requirement to return invested capital to investors upon the realization of investments. Fee related performance revenues consists of performance fees (i) expected to be received from our investment funds, vehicles and accounts on a recurring basis, and (ii) that are not dependent on a realization event involving investments held by the investment fund, vehicle or account.

Fee Related Compensation refers to the compensation expense, excluding equity-based compensation, paid from (i) Management Fees, (ii) Transaction and Monitoring Fees, Net, and (iii) Fee Related Performance Revenues.

Other Operating Expenses represents the sum of (i) occupancy and related charges and (ii) other operating expenses.

Strategic Holdings Operating Earnings

Strategic Holdings Operating Earnings is a performance measure used to assess the firm’s earnings from companies and businesses reported through its Strategic Holdings segment. Strategic Holdings Operating Earnings currently consists of earnings derived from dividends that the firm receives from businesses acquired through the firm’s participation in our core private equity strategy. Strategic Holdings Operating Earnings currently equals dividends less management fees that are earned by our Asset Management segment. This measure is used by management to assess the Strategic Holdings segment’s generation of earnings from revenues that are measured and received on a more recurring basis than, and are not dependent on, realizations from investment activities.

Total Operating Earnings

Total Operating Earnings is a performance measure that represents the sum of (i) FRE, (ii) Insurance Operating Earnings, and (iii) Strategic Holdings Operating Earnings. KKR believes this measure is useful to stockholders as it provides additional insight into the profitability of the most recurring forms of earnings from each of KKR’s segments as compared to investing earnings.

Total Investing Earnings

Total Investing Earnings is a performance measure that represents the sum of (i) Net Realized Performance Income and (ii) Net Realized Investment Income. KKR believes this measure is useful to stockholders as it provides additional insight into the earnings of KKR’s segments from the realization of investments.

Total Asset Management Segment Revenues

Total Asset Management Segment Revenues is a performance measure that represents the realized revenues of the Asset Management segment (which excludes unrealized carried interest and unrealized gains (losses) on investments) and is the sum of (i) Management Fees, (ii) Transaction and Monitoring Fees, Net, (iii) Fee Related Performance Revenues, (iv) Realized Performance Income, and (v) Realized Investment Income. Asset Management Segment Revenues excludes Realized Investment Income earned based on the performance of businesses presented in the Strategic Holdings segment. KKR believes that this performance measure is useful to stockholders as it provides additional insight into all forms of realized revenues generated by our Asset Management segment.

Key Operating and Capital Metrics

Assets Under Management

Assets under management represent the assets managed (including core private equity), advised or sponsored by KKR from which KKR is entitled to receive management fees or performance income (currently or upon a future event), general partner capital, and assets managed, advised or sponsored by our strategic BDC partnership and the hedge fund and other managers in which KKR holds an ownership interest. We believe this measure is useful to stockholders as it provides additional insight into the capital raising activities of KKR and its hedge fund and other managers and the overall activity in their investment funds and other managed or sponsored capital. KKR calculates the amount of AUM as of any date as the sum of: (i) the fair value of the investments of KKR's investment funds and certain co-investment vehicles; (ii) uncalled capital commitments from these funds, including uncalled capital commitments from which KKR is currently not earning management fees or performance income; (iii) the asset value of the Global Atlantic insurance companies; (iv) the par value of outstanding CLOs; (v) KKR's pro rata portion of the AUM of hedge fund and other managers in which KKR holds an ownership interest; (vi) all of the AUM of KKR's strategic BDC partnership; (vii) the acquisition cost of invested assets of certain non-US real estate investment trusts and (viii) the value of other assets managed or sponsored by KKR. The pro rata portion of the AUM of hedge fund and other managers is calculated based on KKR’s percentage ownership interest in such entities multiplied by such entity’s respective AUM. KKR's definition of AUM (i) is not based on any definition of AUM that may be set forth in the governing documents of the investment funds, vehicles, accounts or other entities whose capital is included in this definition, (ii) includes assets for which KKR does not act as an investment adviser, and (iii) is not calculated pursuant to any regulatory definitions.

Capital Invested

Capital invested is the aggregate amount of capital invested by (i) KKR’s investment funds (including core private equity) and Global Atlantic insurance companies, (ii) KKR's Principal Activities business line as a co-investment, if any, alongside KKR’s investment funds, and (iii) KKR's Principal Activities business line in connection with a syndication transaction conducted by KKR's Capital Markets business line, if any. Capital invested is used as a measure of investment activity at KKR during a given period. We believe this measure is useful to stockholders as it provides a measure of capital deployment across KKR’s business lines. Capital invested includes investments made using investment financing arrangements like credit facilities, as applicable. Capital invested excludes (i) investments in certain leveraged credit strategies, (ii) capital invested by KKR’s Principal Activities business line that is not a co-investment alongside KKR’s investment funds, and (iii) capital invested by KKR’s Principal Activities business line that is not invested in connection with a syndication transaction by KKR’s Capital Markets business line. Capital syndicated by KKR's Capital Markets business line to third parties other than KKR’s investment funds or Principal Activities business line is not included in capital invested.

Fee Paying AUM

Fee paying AUM represents only the AUM from which KKR is entitled to receive management fees. We believe this measure is useful to stockholders as it provides additional insight into the capital base upon which KKR earns management fees. FPAUM is the sum of all of the individual fee bases that are used to calculate KKR's and its hedge fund and BDC partnership management fees and differs from AUM in the following respects: (i) assets and commitments from which KKR is not entitled to receive a management fee are excluded (e.g., assets and commitments with respect to which it is entitled to receive only performance income or is otherwise not currently entitled to receive a management fee) and (ii) certain assets, primarily in its private equity funds, are reflected based on capital commitments and invested capital as opposed to fair value because fees are not impacted by changes in the fair value of underlying investments.

Uncalled Commitments

Uncalled commitments is the aggregate amount of unfunded capital commitments that KKR’s investment funds and carry-paying co-investment vehicles (including core private equity) have received from partners to contribute capital to fund future investments, and the amount of uncalled commitments is not reduced by capital invested using borrowings under an investment fund’s subscription facility until capital is called from our fund investors. We believe this measure is useful to stockholders as it provides additional insight into the amount of capital that is available to KKR’s investment funds and carry paying co-investment vehicles to make future investments. Uncalled commitments are not reduced for investments completed using fund-level investment financing arrangements or investments we have committed to make but remain unfunded at the reporting date.

Condensed Consolidated Results of Operations (GAAP Basis - Unaudited)

The following is a discussion of our consolidated results of operations on a GAAP basis for the three months ended June 30, 2025 and 2024. You should read this discussion in conjunction with the financial statements and related notes included elsewhere in this report. For a more detailed discussion of the factors that affected our segment results in these periods, see "—Analysis of Segment Operating Results." See "Risk Factors" in our Annual Report and "—Business Environment" for more information about risks, uncertainties, and other market and economic conditions that may impact our business, financial performance, operating results and valuations.


	Three Months Ended
	June 30, 2025		June 30, 2024		Change
	($ in thousands)
Revenues
Asset Management and Strategic Holdings
Fees and Other	$	924,434	$	822,324	$	102,110
Capital Allocation-Based Income (Loss)	910,732		738,125		172,607
	1,835,166		1,560,449		274,717
Insurance
Net Premiums	730,242		935,794		(205,552)
Policy Fees	334,974		333,900		1,074
Net Investment Income	1,863,346		1,580,498		282,848
Net Investment-Related Gains (Losses)	239,151		(302,620)		541,771
Other Income	85,964		63,889		22,075
	3,253,677		2,611,461		642,216
Total Revenues	5,088,843		4,171,910		916,933

Expenses
Asset Management and Strategic Holdings
Compensation and Benefits	1,077,597		895,165		182,432
Occupancy and Related Charges	34,640		23,306		11,334
General, Administrative and Other	323,997		304,489		19,508
	1,436,234		1,222,960		213,274
Insurance
Net Policy Benefits and Claims (including market risk benefit (gain) loss of $(10,867) and $11,790, respectively.)	2,791,705		2,199,160		592,545
Amortization of Policy Acquisition Costs	80,800		32,808		47,992
Interest Expense	70,830		65,750		5,080
Insurance Expenses	158,459		244,954		(86,495)
General, Administrative and Other	208,416		180,697		27,719
	3,310,210		2,723,369		586,841
Total Expenses	4,746,444		3,946,329		800,115

Investment Income (Loss) - Asset Management and Strategic Holdings
Net Gains (Losses) from Investment Activities	747,734		392,667		355,067
Dividend Income	336,143		471,349		(135,206)
Interest Income	809,883		903,861		(93,978)
Interest Expense	(707,391)		(783,253)		75,862
Total Investment Income (Loss)	1,186,369		984,624		201,745

Income (Loss) Before Taxes	1,528,768		1,210,205		318,563

Income Tax Expense (Benefit)	174,304		216,969		(42,665)


	Three Months Ended
	June 30, 2025		June 30, 2024		Change
	($ in thousands)

Net Income (Loss)	1,354,464		993,236		361,228
Net Income (Loss) Attributable to Redeemable Noncontrolling Interests	68,175		29,666		38,509
Net Income (Loss) Attributable to Noncontrolling Interests	776,166		295,644		480,522
Net Income (Loss) Attributable to KKR & Co. Inc.	510,123		667,926		(157,803)



Series D Mandatory Convertible Preferred Stock Dividends	37,736		—		37,736

Net Income (Loss) Attributable to KKR & Co. Inc. Common Stockholders	$	472,387	$	667,926	$	(195,539)

Condensed Consolidated Results of Operations (GAAP Basis - Unaudited) - Asset Management and Strategic Holdings

Revenues

For the three months ended June 30, 2025 and 2024, revenues consisted of the following:


	Three Months Ended
	June 30, 2025		June 30, 2024		Change
	($ in thousands)
Management Fees	$	592,816	$	470,076	$	122,740
Fee Credits	(134,720)		(83,456)		(51,264)
Transaction Fees	345,209		316,457		28,752
Monitoring Fees	53,090		43,313		9,777
Incentive Fees	13,790		27,203		(13,413)
Expense Reimbursements	29,494		27,168		2,326

Consulting Fees	24,755		21,563		3,192
Total Fees and Other	924,434		822,324		102,110

Carried Interest	800,521		640,322		160,199
General Partner Capital Interest	110,211		97,803		12,408
Total Capital Allocation-Based Income (Loss)	910,732		738,125		172,607

Total Revenues	$	1,835,166	$	1,560,449	$	274,717

Fees and Other

Total Fees and Other for the three months ended June 30, 2025, increased compared to the three months ended June 30, 2024, primarily as a result of an increase in management fees and transaction fees, which were partially offset by an increase in fee credits.

For a more detailed discussion of the factors that affected our transaction fees during the period, see "—Analysis of Asset Management Segment Operating Results."

The increase in management fees was primarily attributable to (i) management fees commencing at North America Fund XIV in the second quarter of 2025 (ii) management fees commencing at Global Infrastructure Investors V in the third quarter of 2024, and (iii) management fees earned on new capital raised over the past twelve months by our private equity and infrastructure K-Series vehicles. The increase was partially offset by (i) a lower level of management fees earned from Ascendant (our U.S. middle market traditional private equity strategy fund) due to management fees earned on new capital raised in the second quarter of 2024 that were retroactive to the start of the fund’s investment period and no such retroactive fees were earned for the three months ended June 30, 2025, (ii) a decrease in management fees earned from North America Fund XIII and Global Infrastructure Investors IV as a result of entering its post-investment period in the second quarter of 2025 and in the third quarter of 2024, respectively, and now paying fees based on invested capital rather than committed capital, and (iii) a lower level of management fees from Asian Fund III due to a step-down in the management fee rate and a decrease in invested capital subsequent to the second quarter of 2024.

Management fees due from consolidated investment funds and other investment vehicles are eliminated upon consolidation under GAAP. However, because these amounts are funded by, and earned from, noncontrolling interests, upon consolidation under GAAP, KKR's allocated share of the net income from the consolidated investment funds and other investment vehicles is increased by the amount of fees that are eliminated. Accordingly, net income (loss) attributable to KKR would be unchanged if such investment funds and other investment vehicles were not consolidated. For a more detailed discussion on the factors that affect our management fees during the period, see "—Analysis of Asset Management Segment Operating Results."

Fee credits increased compared to the prior period as a result of a higher level of transaction fees in our Private Equity business line. Fee credits owed to consolidated investment funds and other investment vehicles are eliminated upon consolidation under GAAP. However, because these amounts are owed to noncontrolling interests, upon consolidation under GAAP, KKR's allocated share of the net income from the consolidated investment funds and other investment vehicles is decreased by the amount of fee credits that are eliminated. Accordingly, net income (loss) attributable to KKR would be unchanged if such investment funds and other investment vehicles were not consolidated. Transaction and monitoring fees earned from our portfolio companies are not eliminated upon consolidation because those fees are earned from companies which are not consolidated. Furthermore, transaction fees earned in our capital markets business are not shared with fund investors. Accordingly, certain transaction fees are reflected in our revenues without a corresponding fee credit.

Capital Allocation-Based Income (Loss)

Capital Allocation-Based Income (Loss) for the three months ended June 30, 2025, was positive primarily due to the net appreciation of the underlying investments at our unconsolidated carry earning investment funds, most notably Asian Fund IV, Americas Fund XII, and Asian Fund III. Capital Allocation-Based Income (Loss) for the three months ended June 30, 2024, was positive primarily due to the net appreciation of the underlying investments at our unconsolidated carry earning investment funds, most notably Asian Fund IV, Asian Fund III, and North America Fund XIII.

KKR calculates the carried interest that would be due to KKR for each investment fund, pursuant to the fund agreements, as if the fair value of the underlying investments were realized as of the reporting date, irrespective of whether such amounts have been realized. Since the fair value of the underlying investments varies between reporting periods, it is necessary to make adjustments to the amounts recorded as carried interest to reflect either (a) positive performance, resulting in an increase in the carried interest allocated to the general partner or (b) negative performance that would cause the amount due to KKR to be less than the amount previously recognized, resulting in a negative adjustment to carried interest allocated to the general partner. In each case, it is necessary to calculate the carried interest on cumulative results compared to the carried interest recorded to date and to make the required positive or negative adjustments.

Investment Income (Loss)

Net Gains (Losses) from Investment Activities for the three months ended June 30, 2025

The net gains from investment activities for the three months ended June 30, 2025, were comprised of net realized gains of $220.6 million and net unrealized gains of $527.1 million.

Investment gains and losses relating to our general partner capital interest in our unconsolidated funds are not reflected in our discussion and analysis of Net Gains (Losses) from Investment Activities. Our economics associated with these gains and losses are reflected in Capital Allocation-Based Income (Loss) as described above.

Realized Gains and Losses from Investment Activities

For the three months ended June 30, 2025, net realized gains related primarily to realized gains from the sale of BridgeBio Pharma, Inc. (NASDAQ: BBIO) and Falcon Vision LLC (healthcare sector). Partially offsetting these realized gains were (i) realized losses from the settlement of certain foreign exchange forward contracts, and (ii) realized losses from certain investments held in consolidated CLOs.

Unrealized Gains and Losses from Investment Activities

For the three months ended June 30, 2025, net unrealized gains were driven by (i) mark-to-market gains primarily relating to Exact Holdings B.V. (technology sector), 1-800 Contacts Inc. (healthcare sector), and Arnott's Biscuit Limited (consumer products sector) and (ii) the reversal of previously recognized unrealized losses relating to the realization activity described above. The unrealized gains were partially offset by (i) unrealized losses on certain foreign exchange forward contracts, (ii) mark-to-market losses relating to PetVet Care Centers, LLC (health care sector) and Crescent Energy Company (NYSE: CRGY) (“Crescent”) and (iii) the reversal of previously recognized unrealized gains relating to the realization activity described above.

The factors that affect each investment strategy vary depending on the nature of the asset class and the valuation methodology employed. For the three months ended June 30, 2025, net gains were primarily generated in the following asset classes:

Private Equity (including core private equity), which were primarily impacted by overall positive operating performance of certain portfolio companies. Changes in market multiples varied across regions / sectors used in the market comparables methodology for the valuation of Level III investments; and
Infrastructure, which primarily benefited from the overall positive operating performance of certain infrastructure assets, partially offset by slightly higher cost of capital assumptions. Changes in market multiples varied across regions / sectors used in the market comparables methodology for the valuation of Level III investments.

See "Risk Factors" in our Annual Report and "—Business Environment" for more information about risks, uncertainties, and other market and economic conditions that may impact our business, financial performance, operating results and valuation.

Net Gains (Losses) from Investment Activities for the three months ended June 30, 2024

The net gains from investment activities for the three months ended June 30, 2024 were comprised of net realized gains of $224.1 million and net unrealized gains of $168.6 million.

Realized Gains and Losses from Investment Activities

For the three months ended June 30, 2024, net realized gains related primarily to (i) realized gains on the sale of Darktrace Limited (LSE: DARK) and Transphorm Inc. (NASDAQ: TGAN) and (ii) realized gains on the partial sale of Incheon Metro Logistics Center (real estate equity). Partially offsetting these realized gains were realized losses from the distribution of certain assets to third-party fund investors in certain of our consolidated energy funds and Impel Pharmaceuticals, Inc. (NASDAQ: IMPL).

Unrealized Gains and Losses from Investment Activities

For the three months ended June 30, 2024, net unrealized gains were driven by (i) mark-to-market gains primarily relating to USI, Inc. (financial services sector), Barracuda Networks, Inc. (technology sector), and Arnott's Biscuit Limited. These unrealized gains were partially offset by (i) mark-to-market losses primarily relating to BridgeBio Pharma, Inc. and Accell Group N.V. (consumer products sector), and (ii) the reversal of previously recognized unrealized gains relating to the realization activity described above.

For a discussion of other factors that affected KKR's realized investment income, see "—Analysis of Asset Management Segment Operating Results." For additional information about net gains (losses) from investment activities, see Note 4 "Net Gains (Losses) from Investment Activities - Asset Management and Strategic Holdings" in our financial statements.

Dividend Income

During the three months ended June 30, 2025, dividend income was primarily from (i) our investment in April SA (financial services sector) held through our consolidated core vehicles and (ii) various investments in certain of our consolidated opportunistic real estate equity funds. During the three months ended June 30, 2024, dividend income was primarily from (i) our investment in MásOrange (telecommunications sector), held through our consolidated European Fund V, (ii) our investment in 1-800 Contacts Inc. held through our consolidated core vehicles and (iii) certain of our consolidated opportunistic real estate equity funds.

Significant dividends from portfolio companies and consolidated funds are generally not recurring quarterly dividends, and while they may occur in the future, their size and frequency are variable. For a discussion of other factors that affected KKR's dividend income, see "—Analysis of Asset Management Segment Operating Results."

Interest Income

The decrease in interest income during the three months ended June 30, 2025, compared to the three months ended June 30, 2024, was primarily due to the impact of lower market interest rates during the current period on floating rate credit investments held in consolidated CLOs and certain of our consolidated private credit funds. The decrease was partially offset by the impact of closing CLOs that are consolidated subsequent to June 30, 2024. For a discussion of other factors that affected KKR's interest income, see "—Analysis of Asset Management Segment Operating Results."

Interest Expense

The decrease in interest expense during the three months ended June 30, 2025, compared to the three months ended June 30, 2024, was primarily due to the impact of lower market interest rates during the current period on floating rate debt obligations held in consolidated CLOs and at certain consolidated funds and other investment vehicles. The decrease was partially offset by (i) the impact of closing CLOs that were consolidated subsequent to June 30, 2024, and (ii) an increase in the amount of borrowings outstanding. For a discussion of other factors that affected KKR's interest expense, see "—Key Segment and Non-GAAP Performance Measures."

Expenses

Compensation and Benefits Expense

The increase in compensation and benefits expense during the three months ended June 30, 2025, compared to the three months ended June 30, 2024, was primarily due to a higher level of accrued carried interest compensation driven by a higher level of carried interest income earned in the current period and (ii) accrued discretionary cash compensation resulting from a higher level of asset management fee related segment revenues in the current period.

Occupancy and Related Charges

The increase in occupancy and related charges during the three months ended June 30, 2025, compared to the three months ended June 30, 2024, was primarily due to the commencement of new office leases subsequent to June 30, 2024.

General, Administrative and Other

The increase in general, administrative and other expenses during the three months ended June 30, 2025, compared to the three months ended June 30, 2024, was primarily due to a higher level of direct expenses from our consolidated investment funds and corporate general administrative costs.

In periods of increased fundraising and to the extent that we use third parties to assist in our capital raising efforts, our General, Administrative and Other expenses are expected to increase accordingly.

Condensed Consolidated Results of Operations (GAAP Basis - Unaudited) - Insurance

Revenues

For the three months ended June 30, 2025 and 2024, revenues consisted of the following:


	Three Months Ended
	June 30, 2025		June 30, 2024		Change
	($ in thousands)
Net Premiums	$	730,242	$	935,794	$	(205,552)
Policy Fees	334,974		333,900		1,074
Net Investment Income	1,863,346		1,580,498		282,848
Net Investment-Related Gains (Losses)	239,151		(302,620)		541,771
Other Income	85,964		63,889		22,075
Total Insurance Revenues	$	3,253,677	$	2,611,461	$	642,216

Net Premiums

Net premiums decreased for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, primarily due to a decrease in initial premiums assumed from fewer reinsurance transactions with life contingencies or morbidity risk during the three months ended June 30, 2025, as compared to the three months ended June 30, 2024. The initial premiums on assumed reinsurance were offset by a comparable decrease in policy reserves reported within net policy benefits and claims (as discussed below under “Expenses—Net policy benefits and claims”). Offsetting these decreases in part were new premiums earned on preneed insurance.

Net Investment Income

Net investment income increased for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, primarily due to (i) increased average assets under management due to growth in assets as a result of the cumulative impact of Global Atlantic's institutional market and individual market channels sales growth in the current and preceding quarters, and (ii) higher average portfolio yields.

Net Investment-Related Gains (Losses)

The components of net investment-related gains (losses) were as follows:


	Three Months Ended
	June 30, 2025		June 30, 2024		Change
	($ in thousands)
Equity Index Options	$	634,175	$	91,329	$	542,846
Funds Withheld Payable Embedded Derivatives	224,401		357,732		(133,331)
Funds Withheld Receivable Embedded Derivatives	16,251		274		15,977
Foreign Exchange and Other Derivative Contracts	(245,422)		571		(245,993)
Interest Rate Contracts	(68,803)		(117,718)		48,915
Equity Futures Contracts	(34,810)		(7,370)		(27,440)

Net Gains (Losses) on Derivative Instruments	525,792		324,818		200,974
Net Other Investment Gains (Losses)	(286,641)		(627,438)		340,797
Net Investment-Related Gains (Losses)	$	239,151	$	(302,620)	$	541,771

Net Gains (Losses) on Derivative Instruments

The increase in the fair value of equity index options was primarily driven by the performance of the underlying indices. Global Atlantic purchases equity index options to hedge the market risk of embedded derivatives in indexed universal life and fixed-indexed annuity products (the change in which is accounted for in net policy benefits and claims). The majority of Global Atlantic's equity index options are based on the S&P 500 Index, which had a comparatively larger increase during the three months ended June 30, 2025, than during the three months ended June 30, 2024.

The increase in the fair value of interest rate contracts was primarily driven by comparatively unchanged market interest rates during the three months ended June 30, 2025, as compared to an increase in market interest rates during the three months ended June 30, 2024, resulting in a comparatively smaller loss on interest rate contracts for the three months ended June 30, 2025, as compared to the loss on interest rate contracts for the three months ended June 30, 2024.

The decrease in the fair value of foreign exchange and other derivative contracts was primarily driven by a combination of foreign exchange losses due to the depreciation of the U.S. dollar (primarily against the euro) during the three months ended June 30, 2025 and an increase in the notional amount of foreign exchange derivatives outstanding.

The decrease in the fair value of embedded derivatives on funds withheld at interest payable for the three months ended June 30, 2025 was primarily driven by the change in fair value of the underlying investments in the funds withheld at interest payable portfolio, which is primarily comprised of certain fixed maturity securities (designated as trading for accounting purposes), mortgage and other loan receivables, and real asset investments. The underlying investments in the funds withheld at interest payable portfolio increased in value during the three months ended June 30, 2025, and decreased during the three months ended June 30, 2024, primarily due to comparatively unchanged market interest rates during the three months ended June 30, 2025, as compared to an increase in market interest rates during the three months ended June 30, 2024.

Net Other Investment Gains (Losses)

The components of net other investment gains (losses) were as follows:


	Three Months Ended
	June 30, 2025		June 30, 2024		Change
	($ in thousands)
Realized Gains (Losses) on Investments Not Supporting Asset-Liability Matching Strategies	$	24,785	$	10,072	$	14,713
Realized Gains (Losses) on Available-for-Sale Fixed Maturity Securities	(409,617)		(74,466)		(335,151)
Realized Gains (Losses) on Funds Withheld at Interest Receivable Portfolio	(13,217)		(20,762)		7,545


Unrealized Gains (Losses) on Fixed Maturity Securities Classified as Trading	(39,098)		(485,257)		446,159
Unrealized Gains (Losses) on Real Assets	(6,070)		(42,023)		35,953
Realized Gains (Losses) on Funds Withheld at Interest Payable Portfolio	39,822		46,018		(6,196)
Unrealized Gains (Losses) on Other Investments Accounted Under a Fair-Value Option and Equity Investments	(40,360)		(21,704)		(18,656)
Credit Loss Allowances	(16,492)		(33,342)		16,850
Realized Gains (Losses) on Real Assets	6,894		8,146		(1,252)
Foreign Exchange Gains (Losses) on Non-USD Denominated Investments	189,684		(4,889)		194,573
Other	(22,972)		(9,231)		(13,741)
Net Other Investment-Related Gains (Losses)	$	(286,641)	$	(627,438)	$	340,797

The decrease in net other investment-related losses for the three months ended June 30, 2025, as compared the three months ended June 30, 2024, was primarily due to (i) a decrease in unrealized losses on fixed maturity securities classified as trading primarily as a result of comparatively unchanged market interest rates during the three months ended June 30, 2025, as compared to an increase in market interest rates during the three months ended June 30, 2024, and (ii) increases in foreign exchange gains on euro and other non-USD denominated investments due to the depreciation of the U.S. dollar.

Partially offsetting these decreases in net other investment-related losses were an increase in realized losses on available-for-sale fixed maturity securities.

Expenses

Net Policy Benefits and Claims

Net policy benefits and claims increased for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024 primarily due to (i) higher average funding costs due to higher crediting rates and the ordinary-course run-off of older business originated in a low interest rate environment, and (ii) a decrease in the value of embedded derivatives in Global Atlantic's fixed indexed annuity products, as a result of new business inflows and equity market movements (as discussed above under "Condensed Consolidated Results of Operations (GAAP Basis - Unaudited)—Insurance—Revenues—Net investment-related gains (losses)," Global Atlantic purchases equity index options in order to hedge this risk, the fair value changes of which are accounted for in gains (losses) on derivative instruments, and generally offsetting the change in embedded derivative fair value reported in net policy benefits and claims).

These increases were partially offset by lower initial reserves assumed related to new reinsurance transactions with life contingencies or morbidity risk in the three months ended June 30, 2025, as compared to the three months ended June 30, 2024.

Amortization of Policy Acquisition Costs

Amortization of policy acquisition costs increased for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, primarily due to (i) the remeasurement of the policy liabilities associated with certain cost-of-reinsurance asset intangibles during the three months ended June 30, 2024, resulting in an increase in the cost-of-reinsurance asset and a decrease in amortization in the period, and (ii) an increase in deferred acquisition costs amortization for the three months ended June 30, 2025 associated with new business volumes generated from individual retirement annuities and preneed insurance.

Interest Expense

Interest expense increased for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, primarily due to an increase in total debt outstanding.

Insurance Expenses

Insurance expenses decreased for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, primarily due to a decrease in commission expenses as a result of lower new business volumes in the institutional markets channel.

General, Administrative, and Other

General, administrative and other increased for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, primarily due to increased employee compensation expenses.

Other Condensed Consolidated Results of Operations (GAAP Basis - Unaudited)

Income Tax Expense (Benefit)

Income tax expense decreased for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, primarily driven by the lower level of income before taxes attributable to KKR common stockholders. As reported in Note 18 “Income Taxes” KKR’s effective tax rate is 11%. If you are to exclude the reported net income (loss) before taxes not attributable to KKR common stockholders, KKR’s effective tax rate would be 23%. For a discussion of factors that impacted KKR's tax provision, see Note 18 "Income Taxes" in our financial statements included elsewhere in this report.

Net Income (Loss) Attributable to Noncontrolling Interests

Net income (loss) attributable to noncontrolling interests for the three months ended June 30, 2025, relates primarily to net income (loss) attributable to (i) third-party limited partner interests in consolidated investment funds other investment vehicles and (ii) exchangeable securities representing ownership interests in KKR Group Partnership until they are exchanged for common stock of KKR & Co. Inc. Net income (loss) attributable to noncontrolling interests increased for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, primarily related to a higher level of net gains from investment activities at our consolidated investment funds and other investment vehicles.

Net Income (Loss) Attributable to KKR & Co. Inc.

Net income (loss) attributable to KKR & Co. Inc. decreased for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, primary due to the lower level of investment-related gains attributable to KKR & Co. Inc. from our asset management and strategic holdings operations, which were partially offset by a higher level of asset management fee related income and capital allocation-based income in the current period.

Condensed Consolidated Results of Operations (GAAP Basis - Unaudited)

The following is a discussion of our consolidated results of operations on a GAAP basis for the six months ended June 30, 2025 and 2024. You should read this discussion in conjunction with the financial statements and related notes included elsewhere in this report. For a more detailed discussion of the factors that affected our segment results in these periods, see "—Analysis of Segment Operating Results." See "Risk Factors" in our Annual Report and "—Business Environment" for more information about risks, uncertainties, and other market and economic conditions that may impact our business, financial performance, operating results and valuations.


	Six Months Ended
	June 30, 2025		June 30, 2024		Change
	($ in thousands)
Revenues
Asset Management and Strategic Holdings
Fees and Other	$	1,811,244	$	1,515,850	$	295,394
Capital Allocation-Based Income (Loss)	2,069,837		2,001,067		68,770
	3,881,081		3,516,917		364,164
Insurance
Net Premiums	1,053,606		6,972,316		(5,918,710)
Policy Fees	673,447		662,847		10,600
Net Investment Income	3,646,626		3,100,400		546,226
Net Investment-Related Gains (Losses)	(1,197,186)		(544,106)		(653,080)
Other Income	141,452		120,274		21,178
	4,317,945		10,311,731		(5,993,786)
Total Revenues	8,199,026		13,828,648		(5,629,622)

Expenses
Asset Management and Strategic Holdings
Compensation and Benefits	2,410,700		2,211,613		199,087
Occupancy and Related Charges	69,105		46,846		22,259
General, Administrative and Other	624,329		582,470		41,859
	3,104,134		2,840,929		263,205
Insurance
Net Policy Benefits and Claims (including market risk benefit (gain) loss of $210,527 and $(89,970), respectively; remeasurement (gain) loss on policy liabilities: $42,252 and $—, respectively.)	4,499,999		9,460,229		(4,960,230)
Amortization of Policy Acquisition Costs	178,771		29,056		149,715
Interest Expense	140,401		120,317		20,084
Insurance Expenses	264,113		444,190		(180,077)
General, Administrative and Other	389,981		364,552		25,429
	5,473,265		10,418,344		(4,945,079)
Total Expenses	8,577,399		13,259,273		(4,681,874)

Investment Income (Loss) - Asset Management and Strategic Holdings
Net Gains (Losses) from Investment Activities	1,834,325		1,030,829		803,496
Dividend Income	610,033		716,406		(106,373)
Interest Income	1,595,740		1,793,963		(198,223)
Interest Expense	(1,361,890)		(1,537,317)		175,427
Total Investment Income (Loss)	2,678,208		2,003,881		674,327

Income (Loss) Before Taxes	2,299,835		2,573,256		(273,421)

Income Tax Expense (Benefit)	260,873		486,170		(225,297)


	Six Months Ended
	June 30, 2025		June 30, 2024		Change
	($ in thousands)
Net Income (Loss)	2,038,962		2,087,086		(48,124)
Net Income (Loss) Attributable to Redeemable Noncontrolling Interests	76,669		62,344		14,325
Net Income (Loss) Attributable to Noncontrolling Interests	1,638,094		674,602		963,492
Net Income (Loss) Attributable to KKR & Co. Inc.	324,199		1,350,140		(1,025,941)



Series D Mandatory Convertible Preferred Stock Dividends	37,736		—		37,736

Net Income (Loss) Attributable to KKR & Co. Inc. Common Stockholders	$	286,463	$	1,350,140	$	(1,063,677)

Consolidated Results of Operations (GAAP Basis) - Asset Management and Strategic Holdings

Revenues

For the six months ended June 30, 2025 and 2024, revenues consisted of the following:


	Six Months Ended
	June 30, 2025		June 30, 2024		Change
	($ in thousands)
Management Fees	$	1,124,515	$	956,830	$	167,685
Fee Credits	(270,982)		(177,502)		(93,480)
Transaction Fees	733,538		535,075		198,463
Monitoring Fees	101,761		92,280		9,481
Incentive Fees	15,118		33,829		(18,711)
Expense Reimbursements	61,702		35,261		26,441

Consulting Fees	45,592		40,077		5,515
Total Fees and Other	1,811,244		1,515,850		295,394

Carried Interest	1,868,783		1,785,250		83,533
General Partner Capital Interest	201,054		215,817		(14,763)
Total Capital Allocation-Based Income (Loss)	2,069,837		2,001,067		68,770

Total Revenues	$	3,881,081	$	3,516,917	$	364,164

Fees and Other

Total Fees and Other for the six months ended June 30, 2025, increased compared to the six months ended June 30, 2024, primarily as a result of an increase in transaction fees and management fees, which were partially offset by an increase in fee credits.

For a more detailed discussion of the factors that affected our transaction fees during the period, see "—Analysis of Asset Management Segment Operating Results."

The increase in management fees was primarily attributable to (i) management fees commencing at Global Infrastructure Investors V in the third quarter of 2024, (ii) management fees earned on new capital raised over the past twelve months by our private equity and infrastructure K-Series vehicles, and (iii) management fees commencing at North America Fund XIV in the second quarter of 2025. The increase was partially offset by (i) a lower level of management fees earned from Ascendant (our U.S. middle market traditional private equity strategy fund) due to management fees earned on new capital raised in the second quarter of 2024 that were retroactive to the start of the fund’s investment period and no such retroactive fees were earned for the six months ended June 30, 2025, (ii) a decrease in management fees earned from North America Fund XIII and Global Infrastructure Investors IV as a result of entering its post-investment period in the second quarter of 2025 and in the third quarter of 2024, respectively, and (iii) a lower level of management fees from Asian Fund III due to a step-down in the management fee rate and a decrease in invested capital subsequent to the second quarter of 2024.

Fee credits increased compared to the prior period as a result of a higher level of transaction fees in our Private Equity and Real Assets business lines. Fee credits owed to consolidated investment funds and other investment vehicles are eliminated upon consolidation under GAAP. However, because these amounts are owed to noncontrolling interests, upon consolidation under GAAP, KKR's allocated share of the net income from the consolidated investment funds is decreased by the amount of fee credits that are eliminated. Accordingly, net income (loss) attributable to KKR would be unchanged if such investment funds and other investment vehicles were not consolidated. Transaction and monitoring fees earned from KKR portfolio companies are not eliminated upon consolidation because those fees are earned from companies which are not consolidated. Furthermore, transaction fees earned in our capital markets business are not shared with fund investors. Accordingly, certain transaction fees are reflected in our revenues without a corresponding fee credit.

Capital Allocation-Based Income (Loss)

Capital Allocation-Based Income (Loss) for the six months ended June 30, 2025, was positive primarily due to the net appreciation of the underlying investments in many of our unconsolidated carry-earning investment vehicles, most notably Asian Fund IV, North America Fund XIII and Global Infrastructure Investors IV. Capital Allocation-Based Income (Loss) for the six months ended June 30, 2024, was positive primarily due to the net appreciation of the underlying investments in many of our unconsolidated carry-earning investment funds, most notably Asian Fund III, North America Fund XIII, and Asian Fund IV.

Investment Income (Loss)

Net Gains (Losses) from Investment Activities for the six months ended June 30, 2025

The net gains from investment activities for the six months ended June 30, 2025, were comprised of net realized gains of $290.8 million and net unrealized gains of $1,543.5 million.

Realized Gains and Losses from Investment Activities

For the six months ended June 30, 2025, net realized gains related primarily to realized gains on the sale of BridgeBio Pharma, Inc., The Citation Group (services sector), and Falcon Vision LLC. Partially offsetting these realized gains were (i) realized losses on our investments in Selecta Group HoldCo. (consumer products sector) and one of our consolidated opportunistic real estate equity funds (ii) and realized losses on certain investments held in consolidated CLOs.

Unrealized Gains and Losses from Investment Activities

For the six months ended June 30, 2025, net unrealized gains were driven by mark-to-market gains primarily relating to our investment in USI, Inc., Exact Holdings B.V., and 1-800 Contacts Inc. These unrealized gains were partially offset by (i) mark-to-market losses primarily relating to our investment in PetVet Care Centers, LLC, and Crescent, (ii) the reversal of previously recognized unrealized gains relating to the realization activity described above, (iii) unrealized losses on certain foreign exchange forward contracts, and (iv) unrealized losses on certain investments held in consolidated CLOs.

The factors that affect each investment strategy vary depending on the nature of the asset class and the valuation methodology employed. For the six months ended June 30, 2025, net gains were primarily generated in the following asset classes:

Private Equity (including core private equity), which were primarily impacted by overall positive operating performance of certain portfolio companies. Changes in market multiples varied across regions / sectors used in the market comparables methodology for the valuation of Level III investments; and
Infrastructure, which primarily benefited from the overall positive operating performance of certain infrastructure assets, partially offset by slightly higher cost of capital assumptions. Changes in market multiples varied across regions / sectors used in the market comparables methodology for the valuation of Level III investments.

See "Risk Factors" in our Annual Report and "—Business Environment" for more information about the factors that may impact our business, financial performance, operating results, and valuation.

Net Gains (Losses) from Investment Activities for the six months ended June 30, 2024

The net gains from investment activities for the six months ended June 30, 2024, were comprised of net realized gains of $33.2 million and net unrealized gains of $997.7 million.

Realized Gains and Losses from Investment Activities

For the six months ended June 30, 2024, net realized gains related primarily to the (i) realized gains on the sale of Darktrace Limited and Transphorm Inc., and (ii) realized gains on certain foreign exchange forward contracts. Partially offsetting these realized gains were realized losses due primarily to the (i) realized losses on the sale of Telepizza SAU (consumer products sector) and (ii) realized losses from the distribution of certain assets to third-party fund investors in certain of our consolidated energy funds.

Unrealized Gains and Losses from Investment Activities

For the six months ended June 30, 2024, net unrealized gains were driven primarily by (i) mark-to-market gains primarily relating to USI, Inc., and (ii) unrealized gains on certain foreign exchange forward contracts. These unrealized gains were partially offset by mark-to-market losses primarily relating to (i) our investment in BridgeBio Pharma, Inc. and Accell Group N.V., and (ii) unrealized losses in certain of our consolidated credit funds.

Dividend Income

During the six months ended June 30, 2025, dividend income was primarily from (i) our investments in April SA and Atlantic Aviation FBO Inc. (infrastructure: transportation sector) both held through our consolidated core vehicles and (ii) various investments in certain of our consolidated opportunistic real estate equity funds. During the six months ended June 30, 2024, dividend income was primarily from (i) our investments in 1-800 Contacts Inc., Exact Holdings B.V., Viridor Limited (infrastructure: energy and energy transition sector), and FiberCop S.p.A. (infrastructure: telecommunications infrastructure sector), held through our consolidated core vehicles, (ii) our investment in MásOrange, held through our consolidated European Fund V, and (iii) certain of our consolidated opportunistic real estate equity funds.

Interest Income

The decrease in interest income during the six months ended June 30, 2025, compared to the six months ended June 30, 2024, was primarily due to the impact of lower market interest rates during the current period on floating rate credit investments held in consolidated CLOs and certain of our consolidated private credit funds. The decrease was partially offset by the impact of closing CLOs that are consolidated subsequent to June 30, 2024. For a discussion of other factors that affected KKR's interest income, see "—Analysis of Asset Management Segment Operating Results."

Interest Expense

The decrease in interest expense during the six months ended June 30, 2025, compared to the six months ended June 30, 2024, was primarily due to the impact of lower market interest rates during the current period on floating rate debt obligations held in consolidated CLOs and at certain consolidated funds and other investment vehicles. The decrease was partially offset by (i) the impact of closing CLOs that were consolidated subsequent to June 30, 2024, and (ii) an increase in the amount of borrowings outstanding. For a discussion of other factors that affected KKR's interest expense, see "—Key Segment and Non-GAAP Performance Measures."

Expenses

Compensation and Benefits

The increase in compensation and benefits during the six months ended June 30, 2025, compared to the six months ended June 30, 2024, was primarily due to a higher level of accrued carried interest compensation driven by a higher level of carried interest income earned in the current period and (ii) accrued discretionary cash compensation resulting from a higher level of asset management fee related segment revenues in the current period.

Occupancy and Related Charges

The increase in occupancy and related charges during the six months ended June 30, 2025, compared to the six months ended June 30, 2024, was primarily due to the commencement of new office leases subsequent to June 30, 2024.

General, Administrative and Other

The increase in general, administrative and other expenses during the six months ended June 30, 2025, compared to the six months ended June 30, 2024, was primarily due to a higher level of expenses reimbursable from our unconsolidated investment funds, broken-deal expenses and corporate general administrative costs, partially offset by a prior year legal accrual that did not recur in the current period.

The level of broken-deal expenses can vary significantly period-to-period based upon a number of factors, the most significant of which are the number of potential investments being pursued for our investment funds, the size and complexity of investments being pursued, and the number of investment funds currently in their investment period.

In periods of increased fundraising and to the extent that we use third parties to assist in our capital raising efforts, our General, Administrative and Other are expected to increase accordingly.

Condensed Consolidated Results of Operations (GAAP Basis - Unaudited) - Insurance

Revenues

For the six months ended June 30, 2025 and 2024, revenues consisted of the following:


	Six Months Ended
	June 30, 2025		June 30, 2024		Change
	($ in thousands)
Net Premiums	$	1,053,606	$	6,972,316	$	(5,918,710)
Policy Fees	673,447		662,847		10,600
Net Investment Income	3,646,626		3,100,400		546,226
Net Investment-Related Gains (Losses)	(1,197,186)		(544,106)		(653,080)
Other Income	141,452		120,274		21,178
Total Insurance Revenues	$	4,317,945	$	10,311,731	$	(5,993,786)

Net Premiums

Net premiums decreased for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, primarily due to a decrease in initial premiums assumed from fewer reinsurance transactions with life contingencies or morbidity risk during the six months ended June 30, 2025, as compared to the six months ended June 30, 2024. The initial premiums on assumed reinsurance were offset by a comparable decrease in policy reserves reported within net policy benefits and claims (as discussed below under “Expenses—Net policy benefits and claims”). Offsetting these decreases in part were new premiums earned on preneed insurance.

Net Investment Income

Net investment income increased for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, primarily due to (i) increased average assets under management due to growth in assets in the institutional and individual market channels as a result of the cumulative impact of new business volumes in the current and preceding quarters, and (ii) higher average portfolio yields.

Net Investment-Related Gains (Losses)

The components of net investment-related gains (losses) were as follows:


	Six Months Ended
	June 30, 2025		June 30, 2024		Change
	($ in thousands)
Equity Index Options	$	294,374	$	348,432	$	(54,058)
Interest Rate Contracts	106,186		(367,013)		473,199

Equity Futures Contracts	(6,116)		(70,886)		64,770
Foreign Exchange and Other Derivative Contracts	(321,255)		36,476		(357,731)
Funds Withheld Payable Embedded Derivatives	(199,162)		453,173		(652,335)
Funds Withheld Receivable Embedded Derivatives	(7,815)		25,604		(33,419)

Net Gains (Losses) on Derivative Instruments	(133,788)		425,786		(559,574)
Net Other Investment Gains (Losses)	(1,063,398)		(969,892)		(93,506)
Net Investment-Related Gains (Losses)	$	(1,197,186)	$	(544,106)	$	(653,080)

Net Gains (Losses) on Derivative Instruments

The decrease in the fair value of embedded derivatives on funds withheld at interest payable for the six months ended June 30, 2025, was primarily driven by the change in fair value of the underlying investments in the funds withheld at interest payable portfolio, which is primarily comprised of fixed maturity securities (designated as trading for accounting purposes), mortgage and other loan receivables, and real asset investments. The underlying investments in the funds withheld at interest payable portfolio increased in value during the six months ended June 30, 2025, and decreased during the six months ended June 30, 2024, primarily due to a decrease in market interest rates during the six months ended June 30, 2025, as compared to an increase in market interest rates during the six months ended June 30, 2024.

The decrease in the fair value of foreign exchange and other derivative contracts was primarily driven by a decrease due to depreciation of the U.S. dollar during the six months ended June 30, 2025.

The increase in the fair value of interest rate contracts was primarily driven by a decrease in market interest rates during the six months ended June 30, 2025, as compared to an increase in market interest rates during the six months ended June 30, 2024, resulting in a gain on interest rate contracts for the six months ended June 30, 2025, as compared to a loss on interest rate contracts for the six months ended June 30, 2024.

Net Other Investment Gains (Losses)

The components of net other investment gains (losses) were as follows:


	Six Months Ended
	June 30, 2025		June 30, 2024		Change
	($ in thousands)
Realized Gains (Losses) on Investments Not Supporting Asset-Liability Matching Strategies	$	34,305	$	10,072	$	24,233

Realized Gains (Losses) on Available-for-Sale Fixed Maturity Securities	(1,527,062)		(102,623)		(1,424,439)
Credit Loss Allowances	(101,162)		(135,455)		34,293

Unrealized Gains (Losses) on Fixed Maturity Securities Classified as Trading	220,109		(584,836)		804,945
Unrealized Gains (Losses) on Other Investments Accounted Under a Fair-Value Option and Equity Investments	1,715		(24,227)		25,942

Unrealized Gains (Losses) on Real Assets	13,259		(159,718)		172,977
Realized Gains (Losses) on Real Assets	17,395		7,073		10,322
Realized Gains (Losses) on Funds Withheld at Interest Payable Portfolio	115,808		70,305		45,503
Realized Gains (Losses) on Funds Withheld at Interest Receivable Portfolio	(63,484)		(23,048)		(40,436)
Foreign Exchange Gains (Losses) on Non-USD Denominated Investments	265,777		(20,117)		285,894
Other	(40,058)		(7,318)		(32,740)
Net Other Investment-Related Gains (Losses)	$	(1,063,398)	$	(969,892)	$	(93,506)

The increase in net other investment-related losses for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, was primarily due to (i) an increase in realized losses on available-for-sale fixed maturity securities, and (ii) an increase in realized losses on the funds withheld at interest receivable portfolio.

Offsetting these increases in net other investment-related losses in part were (i) an increase in unrealized gains on fixed maturity securities classified as trading primarily as a result of a decrease in market interest rates during the six months ended June 30, 2025, as compared to an increase in market interest rates during the six months ended June 30, 2024, and (ii) an increase in foreign exchange gains on euro and other non-USD denominated investments due to the depreciation of the U.S. dollar.

Expenses

Net Policy Benefits and Claims

Net policy benefits and claims decreased for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, primarily due to (i) lower initial reserves assumed related to new reinsurance transactions with life contingencies or morbidity risk in the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, and (ii) a decrease in the value of embedded derivatives in Global Atlantic’s fixed indexed annuity products, as a result of new business inflows and equity market movements (as discussed above under "–Consolidated Results of Operations (GAAP Basis)–Revenues–Net investment-related gains (losses)," Global Atlantic purchases equity index options in order to hedge this risk, the fair value changes of which are accounted for in gains (losses) on derivative instruments, and generally offsetting the change in embedded derivative fair value reported in net policy benefits and claims).

These decreases were partially offset by (i) higher average funding costs due to higher crediting rates and the ordinary-course run-off of older business originated in a low interest rate environment, (ii) unfavorable impacts related to the assumption review described below, and (iii) an increase in market risk benefits losses due to a decrease in market interest rates for the six months ended June 30, 2025, as compared to an increase in market interest rates for the six months ended June 30, 2024.

The assumptions on which reserves, deferred revenue and expenses are based are intended to represent an estimate of the benefits that are expected to be payable to, and fees or premiums that are expected to be collectible from, policyholders in future periods. Global Atlantic reviews the adequacy of its reserves, deferred revenue and expenses, and the assumptions underlying those items at least annually, usually in the third quarter, referred to as an "assumption review." As Global Atlantic analyzes its assumptions, to the extent Global Atlantic chooses to update one or more of those assumptions, there may be an “unlocking” impact. Generally, favorable unlocking means the change in assumptions required a reduction in reserves, or in deferred revenue liabilities, and unfavorable unlocking means the change in assumptions required an increase in reserves or in deferred revenue liabilities, or a reduction in deferred expenses.

For the six months ended June 30, 2025, there was a net unfavorable assumption review impact of $42.3 million on net policy benefits and claims, which was primarily due to a change in the activation assumption related to certain benefit riders on fixed-indexed annuities.

Amortization of Policy Acquisition Costs

Amortization of policy acquisition costs increased for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, primarily due to (i) the remeasurement of the policy liabilities associated with certain cost-of-reinsurance asset intangibles during the six months ended June 30, 2024, resulting in an increase in the cost-of-reinsurance asset and a decrease in amortization in the comparative six month period, and (ii) an increase in deferred acquisition costs amortization for the six months ended June 30, 2025 associated with new business volumes generated from individual retirement annuities and preneed insurance.

Interest Expense

Interest expense increased for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, primarily due to an increase in total debt outstanding.

Insurance Expenses

Insurance expenses decreased for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, primarily due to a decrease in commission expenses as a result of the lower new business volumes in the institutional markets channel.

General, Administrative and Other

General, administrative and other increased for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, primarily due to increased employee compensation expenses.

Other Condensed Consolidated Results of Operations (GAAP Basis - Unaudited)

Income Tax Expense (Benefit)

Income tax expense decreased for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, primarily driven by the lower level of income before taxes attributable to KKR common stockholders. For a discussion of factors that impacted KKR's tax provision, see Note 18 "Income Taxes" in our financial statements included elsewhere in this report.

Net Income (Loss) Attributable to Noncontrolling Interests

Net income (loss) attributable to noncontrolling interests for the six months ended June 30, 2025 relates primarily to net income (loss) attributable to (i) third-party limited partner interests in consolidated investment funds and other investment vehicles and (ii) exchangeable securities representing ownership interests in KKR Group Partnership until they are exchanged for common stock of KKR & Co. Inc. Net income (loss) attributable to noncontrolling interests increased for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, primarily related to a higher level of net gains from investment activities at our consolidated investment funds and other investment vehicles.

Net Income (Loss) Attributable to KKR & Co. Inc.

Net income (loss) attributable to KKR & Co. Inc. decreased for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, primary due to the lower level of investment-related gains attributable to KKR & Co. Inc. from our asset management and strategic holdings operations, which were partially offset by a higher level of asset management fee related income in the current period.

Condensed Consolidated Statements of Financial Condition (GAAP Basis - Unaudited)

Please see our condensed consolidated statements of financial condition on a GAAP basis as of June 30, 2025 and December 31, 2024 in our financial statements included in this report.

KKR & Co. Inc. Stockholders’ Equity - Common Stock increased from December 31, 2024 primarily due to unrealized gains on available-for sale-securities from Global Atlantic that are recorded in other comprehensive income and net income attributable to KKR & Co. Inc. common stockholders, which were partially offset by dividends to common stockholders.

Condensed Consolidated Statements of Cash Flows (GAAP Basis - Unaudited)

The following is a discussion of our consolidated cash flows for the six months ended June 30, 2025 and 2024. You should read this discussion in conjunction with the financial statements and related notes included elsewhere in this report.

The consolidated statements of cash flows include the cash flows of our consolidated entities, which include certain consolidated investment funds, CLOs and certain variable interest entities formed by Global Atlantic notwithstanding the fact that we may hold only a minority economic interest in those investment funds and CFEs. The assets of our consolidated investment funds and CFEs, on a gross basis, can be substantially larger than the assets of our business and, accordingly, could have a substantial effect on the cash flows reflected in our consolidated statements of cash flows. The primary cash flow activities of our consolidated funds and CFEs involve: (i) capital contributions from fund investors; (ii) using the capital of fund investors to make investments; (iii) financing certain investments with indebtedness; (iv) generating cash flows through the realization of investments; and (v) distributing cash flows from the realization of investments to fund investors. Because our consolidated investment funds are treated as investment companies for accounting purposes, certain of these cash flow amounts are included in our cash flows from operations.

Net Cash Provided (Used) by Operating Activities

Our net cash provided (used) by operating activities was $3.0 billion and $4.9 billion during the six months ended June 30, 2025 and 2024, respectively. Our operating activities primarily included: (i) investments purchased (asset management and strategic holdings), net of proceeds from investments (asset management and strategic holdings) of $(1.4) billion and $(17.7) million during the six months ended June 30, 2025 and 2024, respectively, (ii) net realized gains (losses) on investments (asset management and strategic holdings) of $290.8 million and $(33.2) million during the six months ended June 30, 2025 and 2024, respectively, (iii) change in unrealized gains (losses) on investments (asset management and strategic holdings) of $1.5 billion and $1.0 billion during the six months ended June 30, 2025 and 2024, respectively, (iv) capital allocation-based income (loss) (asset management and strategic holdings) of $2.1 billion and $2.0 billion during the six months ended June 30, 2025 and 2024, respectively, (v) net investment and policy liability-related gains (losses) (insurance) of $(2.3) billion and $(1.4) billion during the six months ended June 30, 2025 and 2024, respectively, and (vi) interest credited to policyholder account balances (net of policy fees) (insurance) of $2.4 billion and $1.9 billion during the six months ended June 30, 2025 and 2024, respectively. Investment funds are investment companies under GAAP and reflect their investments and other financial instruments at fair value.

Net Cash Provided (Used) by Investing Activities

Our net cash provided (used) by investing activities was $(5.0) billion and $(11.7) billion during the six months ended June 30, 2025 and 2024, respectively. Our investing activities primarily included: (i) investments purchased (insurance), net of proceeds from investments (insurance), of $(5.0) billion and $(11.6) billion during the six months ended June 30, 2025 and 2024, respectively, and (ii) the purchase of fixed assets of $(88.2) million and $(43.8) million during the six months ended June 30, 2025 and 2024, respectively.

Net Cash Provided (Used) by Financing Activities

Our net cash provided (used) by financing activities was $4.6 billion and $2.1 billion during the six months ended June 30, 2025 and 2024, respectively. Our financing activities primarily included: (i) contributions from, net of distributions to, our noncontrolling and redeemable noncontrolling interests of $313.7 million and $(32.3) million during the six months ended June 30, 2025 and 2024, respectively, (ii) proceeds received, net of repayment of debt obligations, of $53.4 million and $1.9 billion during the six months ended June 30, 2025 and 2024, respectively, (iii) proceeds from the issuance of Series D Mandatory Convertible Preferred Stock (net of issuance cost) of $2.5 billion during the six months ended June 30, 2025, (iv) additions to, net of withdrawals from, contractholder deposit funds (insurance) of $2.1 billion and $4.0 billion during the six months ended June 30, 2025 and 2024, respectively, (v) reinsurance transactions, net of cash provided (insurance) of $48.1 million during the six months ended June 30, 2024, (vi) common stock dividends of $(320.2) million and $(301.3) million during the six months ended June 30, 2025 and 2024, respectively, and (vii) Series D Mandatory Convertible Preferred Stock Dividends of $(37.7) million during the six months ended June 30, 2025.

Analysis of Segment Operating Results

The following is a discussion of the results of our business on a segment basis for the three and six months ended June 30, 2025 and 2024. You should read this discussion in conjunction with the information included under "—Analysis of Non-GAAP Performance Measures" and the financial statements and related notes included elsewhere in this report. See "Risk Factors" in our Annual Report and "—Business Environment" for more information about factors that may impact our business, financial performance, operating results, and valuations.

Analysis of Asset Management Segment Operating Results

The following tables set forth information regarding KKR's asset management segment operating results for the three months ended June 30, 2025 and 2024:


	Three Months Ended
	June 30, 2025		June 30, 2024		Change
	($ in thousands)
Management Fees	$	995,763	$	847,307	$	148,456
Transaction and Monitoring Fees, Net	234,249		222,858		11,391
Fee Related Performance Revenues	53,737		37,145		16,592
Fee Related Compensation	(224,656)		(193,779)		(30,877)
Other Operating Expenses	(172,339)		(158,134)		(14,205)
Fee Related Earnings	886,754		755,397		131,357
Realized Performance Income	418,850		482,309		(63,459)
Realized Performance Income Compensation	(309,536)		(359,470)		49,934
Realized Investment Income	153,998		138,546		15,452
Realized Investment Income Compensation	(23,100)		(20,782)		(2,318)
Asset Management Segment Earnings	$	1,126,966	$	996,000	$	130,966

Management Fees

The following table presents management fees by business line:


	Three Months Ended
	June 30, 2025		June 30, 2024		Change
	($ in thousands)
Management Fees
Private Equity	$	372,094	$	350,650	$	21,444
Real Assets	310,394		230,085		80,309
Credit and Liquid Strategies	313,275		266,572		46,703
Total Management Fees	$	995,763	$	847,307	$	148,456

The increase in Private Equity management fees was primarily attributable to (i) management fees commencing at North America Fund XIV in the second quarter of 2025 and (ii) management fees earned on new capital raised over the past twelve months at our private equity K-Series vehicles, net of certain revenue sharing arrangements. The increase was partially offset by (i) a lower level of management fees earned from Ascendant (our U.S. middle market traditional private equity strategy fund) due to management fees earned on new capital raised in the second quarter of 2024 that were retroactive to the start of the fund’s investment period and no such retroactive fees were earned for the three months ended June 30, 2025, (ii) a decrease in management fees earned from North America Fund XIII as a result of entering its post-investment period in the second quarter of 2025, and now paying fees based on invested capital rather than committed capital, and (iii) a lower level of management fees from Asian Fund III due to a step-down in the management fee rate and a decrease in invested capital subsequent to the second quarter of 2024. During the three months ended June 30, 2025, there were no management fees earned on new capital raised that were retroactive to the start of the relevant fund's investment period.

The increase in Real Assets management fees was primarily attributable to (i) management fees commencing at Global Infrastructure Investors V in the third quarter of 2024, (ii) a higher level of management fees earned from Global Atlantic primarily due to the growth in assets from inflows, and (iii) management fees earned on new capital raised over the past twelve months at our infrastructure K-Series vehicles, net of certain revenue sharing arrangements. The increase was partially offset by a decrease in management fees earned from Global Infrastructure Investors IV as a result of entering its post-investment period in the third quarter of 2024, and now paying fees based on capital invested rather than committed capital. During the three months ended June 30, 2025, approximately $11.4 million of management fees were earned on new capital raised that is retroactive to the start of the relevant fund's investment period.

The increase in Credit and Liquid Strategies management fees was primarily attributable to (i) a higher level of management fees earned from Global Atlantic primarily due to the growth in assets from inflows, (ii) an increase in capital invested in certain alternative credit strategy accounts, which resulted in an increase in its fee base and (iii) a higher level of management fees earned from CLOs from new issuances in both the US and Europe over the past twelve months.

Transaction and Monitoring Fees, Net

The following table presents transaction and monitoring fees, net by business line:


	Three Months Ended
	June 30, 2025		June 30, 2024		Change
	($ in thousands)
Transaction and Monitoring Fees, Net
Private Equity	$	20,421	$	16,640	$	3,781
Real Assets	9,371		11,752		(2,381)
Credit and Liquid Strategies	4,889		2,366		2,523
Capital Markets	199,568		192,100		7,468
Total Transaction and Monitoring Fees, Net	$	234,249	$	222,858	$	11,391

Our Private Equity, Real Assets, and Credit and Liquid Strategies business lines earn transaction and monitoring fees from portfolio companies, and under the terms of the management agreements with certain of our investment funds, we are required to share all or a portion of such fees with our fund investors. For most of our investment funds, transaction and monitoring fees are credited against fund management fees up to 100% of the amount of the transaction and monitoring fees attributable to that investment fund, which results in a decrease of our transaction and monitoring fees. Our Capital Markets business line earns transaction fees, which are generally not shared with fund investors.

The increase in transaction and monitoring fees, net is primarily due to a higher level of transaction fees earned in our Capital Markets business line. The increase in Capital Markets business line transaction fees was primarily due to an increase in the size of capital markets transactions for the three months ended June 30, 2025, compared to the three months ended June 30, 2024. Overall, we completed 93 capital markets transactions for the three months ended June 30, 2025, of which 10 represented equity offerings and 83 represented debt offerings, as compared to 99 capital markets transactions for the three months ended June 30, 2024, of which 15 represented equity offerings and 84 represented debt offerings. We earn fees in connection with underwriting, syndication, and other capital markets services. While each of the capital markets transactions that we undertake in this business line is separately negotiated, our fee rates are generally higher with respect to underwriting or syndicating equity offerings than with respect to debt offerings, and the amount of fees that we earn for similar transactions generally correlates with overall transaction sizes.

Our capital markets fees are generated in connection with activity involving our private equity, real assets, and credit business lines as well as from third-party companies. For the three months ended June 30, 2025, approximately 20% of our transaction fees in our Capital Markets business line were earned from unaffiliated third parties as compared to 16% for the three months ended June 30, 2024. Our transaction fees are comprised of fees earned in North America, Europe, and the Asia-Pacific region. For the three months ended June 30, 2025, approximately 69% of our transaction fees were generated outside of North America as compared to approximately 34% for the three months ended June 30, 2024. Our Capital Markets business line is dependent on the overall capital markets environment, which is influenced by equity prices, credit spreads, and volatility. Our Capital Markets business line does not generate monitoring fees.

See "—Analysis of Asset Management Segment Operating Results—Capital Invested" for more information about capital invested by business line. See "Risk Factors" in our Annual Report and "—Business Environment" for more information about the factors that may impact our business, financial performance, operating results, and valuations.

Fee Related Performance Revenues

The following table presents fee related performance revenues by business line:


	Three Months Ended
	June 30, 2025		June 30, 2024		Change
	($ in thousands)
Fee Related Performance Revenues
Private Equity	$	—	$	—	$	—
Real Assets	36,058		16,206		19,852
Credit and Liquid Strategies	17,679		20,939		(3,260)
Total Fee Related Performance Revenues	$	53,737	$	37,145	$	16,592

Fee related performance revenues represent performance fees that are (i) expected to be received from our investment funds, investment vehicles, and accounts on a more recurring basis and (ii) not dependent on a realization event involving investments held by the investment fund, vehicle, or account.

These performance fees are primarily earned from (i) FSK in our Credit and Liquid Strategies business line and (ii) KKR Real Estate Select Trust Inc. ("KREST") (our registered closed-end real estate equity fund), KKR Real Estate Finance Trust Inc. ("KREF") (our real estate credit investment trust), KJR Management ("KJRM") (our Japanese real estate investment trust asset manager), and our infrastructure K-Series vehicles in our Real Assets business line.

The increase in fee related performance revenues for the three months ended June 30, 2025 compared to the prior period was primarily due to a higher level of performance revenues being earned from one of our infrastructure K-Series vehicles in our Real Assets business line.

Fee Related Compensation

The increase in fee related compensation for the three months ended June 30, 2025 compared to the prior period was primarily due to a higher level of compensation recorded in connection with the higher level of fee related revenues.

Other Operating Expenses

The increase in other operating expenses for the three months ended June 30, 2025 compared to the prior period was primarily due to a higher level of occupancy related and general and administrative costs.

Fee Related Earnings

The increase in fee related earnings for the three months ended June 30, 2025 compared to the prior period was primarily due to (i) a higher level of management fees across our Private Equity, Real Assets, and Credit and Liquid Strategies business lines, (ii) a higher level of fee related performance revenues earned in our Real Assets business line, and (iii) a higher level of transaction fees earned in our Capital Markets business line, partially offset by a higher level of fee related compensation and other operating expenses, as described above.

Realized Performance Income

The following table presents realized performance income by business line:


	Three Months Ended
	June 30, 2025		June 30, 2024		Change
	($ in thousands)
Realized Performance Income
Private Equity	$	355,492	$	327,943	$	27,549
Real Assets	27,404		124,342		(96,938)
Credit and Liquid Strategies	35,954		30,024		5,930
Total Realized Performance Income	$	418,850	$	482,309	$	(63,459)


	Three Months Ended
	June 30, 2025		June 30, 2024		Change
	($ in thousands)
Private Equity
Next Generation Technology Growth Fund II	$	162,679	$	—	$	162,679
Private Equity K-Series	80,676		32,476		48,200
Strategic Investor Partnerships	78,115		—		78,115
Americas Fund XII	28,838		229,107		(200,269)
European Fund V	—		32,864		(32,864)
North America Fund XI	—		10,948		(10,948)
Next Generation Technology Growth Fund	—		6,954		(6,954)










Other	5,184		15,594		(10,410)
Total Realized Performance Income	$	355,492	$	327,943	$	27,549



	Three Months Ended
	June 30, 2025		June 30, 2024		Change
	($ in thousands)
Real Assets
Global Infrastructure Investors III	$	24,184	$	124,342	$	(100,158)
Real Estate Partners Americas II	—		—		—

Other	3,220		—		3,220








Total Realized Performance Income	$	27,404	$	124,342	$	(96,938)


	Three Months Ended
	June 30, 2025		June 30, 2024		Change
	($ in thousands)
Credit and Liquid Strategies
Lending Partners III	$	7,334	$	—	$	7,334
Alternative Credit Vehicles and Other Funds	15,297		12,541		2,756















Other	13,323		17,483		(4,160)
Total Realized Performance Income	$	35,954	$	30,024	$	5,930

Realized performance income includes (i) realized carried interest from our carry earning funds and (ii) incentive fees not included in Fee Related Performance Revenues. Incentive fees consist primarily of performance fees earned from (i) our hedge fund partnerships, (ii) investment management agreements with KKR sponsored investment vehicles, and (iii) investment management agreements to provide KKR’s investment strategies to funds managed by a UK investment fund manager.

Realized performance income in our Private Equity business line for the three months ended June 30, 2025 consisted primarily of (i) realized proceeds from the sale of our investments in ReliaQuest, LLC (technology sector) held by Next Generation Technology Growth Fund II and BrightSpring Health Services Inc. (NASDAQ: BTSG) held by Americas Fund XII and (ii) performance income from one of our private equity K-Series vehicles.

Realized performance income in our Private Equity business line for the three months ended June 30, 2024 consisted primarily of (i) realized proceeds from the sale of our investment in AppLovin Corporation (NASDAQ: APP) held by Americas Fund XII and a dividend from MásOrange held by European Fund V and (ii) performance income from one of our private equity K-Series vehicles.

Realized performance income in our Real Assets business line for the three months ended June 30, 2025 consisted primarily of realized proceeds from the sale of our investment in NEP Renewables II, LLC (infrastructure: energy and energy transition) held by Global Infrastructure Investors III.

Realized performance income in our Real Assets business line for the three months ended June 30, 2024 consisted primarily of realized proceeds from the sale of our investment in ADNOC Oil Pipelines (infrastructure: midstream sector) held by Global Infrastructure Investors III.

Realized performance income in our Credit and Liquid Strategies business line for the three months ended June 30, 2025 consisted primarily of realized proceeds at Lending Partners III and certain other alternative credit funds.

Realized performance income in our Credit and Liquid Strategies business line for the three months ended June 30, 2024 consisted primarily of (i) performance fees earned from our subadvisory agreement with a UK investment fund manager and (ii) realized proceeds from the sale of various investments held by certain alternative credit funds.

Realized Performance Income Compensation

The decrease in realized performance income compensation for the three months ended June 30, 2025 compared to the prior period was primarily due to a lower level of compensation recorded in connection with the lower level of realized performance income.

Realized Investment Income

The following table presents realized investment income in our Principal Activities business line:


	Three Months Ended
	June 30, 2025		June 30, 2024		Change
	($ in thousands)



Total Realized Investment Income	$	153,998	$	138,546	$	15,452

The increase in realized investment income is primarily due to a higher level of net realized gains, partially offset by a lower level of interest income and dividends. The amount of realized investment income depends on the transaction activity of our funds and Asset Management segment balance sheet, which can vary from period to period.

For the three months ended June 30, 2025, realized investment income was primarily comprised of (i) realized gains from the sale of our investments in BridgeBio Pharma, Inc. and ReliaQuest, LLC and (ii) interest income primarily from our investment in CLOs. Partially offsetting the realized gains were realized losses, the most significant of which were (i) realized losses from the settlement of certain foreign exchange forward contracts and (ii) realized losses from the sales of various revolving credit facilities.

For the three months ended June 30, 2024, realized investment income was primarily comprised of (i) interest income primarily from our investment in CLOs and (ii) realized gains primarily from the sale of our investments in AppLovin Corporation and Darktrace Limited. Partially offsetting the realized gains were realized losses, the most significant of which were (i) a realized loss on our private equity investment, Acteon Group Ltd. (energy sector) and (ii) realized losses from the sales of various revolving credit facilities.

Realized investment income includes the net income (loss) from KKR Capstone. For the three months ended June 30, 2025, total fees attributable to KKR Capstone were $24.8 million and total expenses attributable to KKR Capstone were $22.7 million. For KKR Capstone-related adjustments in reconciling segment revenues and expenses to GAAP revenues and expenses see Footnote 21 "Segment Reporting" in our financial statements.

Realized Investment Income Compensation

The increase in realized investment income compensation for the three months ended June 30, 2025 compared to the prior period is primarily due to a higher level of compensation recorded in connection with the higher level of realized investment income.

Operating and Capital Metrics

The following tables present our key Asset Management segment operating and capital metrics:


	As of
	June 30, 2025		March 31, 2025		Change
	($ in millions)
Assets Under Management	$	685,806	$	664,319	$	21,487
Fee Paying Assets Under Management	$	556,247	$	526,045	$	30,202
Uncalled Commitments	$	115,145	$	115,628	$	(483)


	Three Months Ended
	June 30, 2025		June 30, 2024		Change
	($ in millions)
Capital Invested	$	17,701	$	22,733	$	(5,032)

Assets Under Management

Private Equity

The following table reflects the changes in the AUM of our Private Equity business line from March 31, 2025 to June 30, 2025:


	($ in millions)
March 31, 2025	$	209,395
New Capital Raised	5,497

Distributions and Other	(5,723)
Redemptions	(9)
Change in Value	5,416
June 30, 2025	$	214,576

AUM of our Private Equity business line was $214.6 billion at June 30, 2025, an increase of $5.2 billion, compared to $209.4 billion at March 31, 2025.

The increase was primarily attributable to (i) new capital raised from North America Fund XIV and our private equity K-Series vehicles and, to a lesser extent, (ii) appreciation in investment value primarily from Asian Fund IV, Americas Fund XII, and Asian Fund III. Partially offsetting the increase were (i) the release of capital commitments related to one of our strategic investor partnerships, and (ii) distributions to fund investors primarily as a result of realized proceeds, most notably from Next Generation Technology Growth Fund II and Asian Fund IV.

For the three months ended June 30, 2025, the value of our traditional private equity investment portfolio increased 5%. This was comprised of a 19% increase in share prices of publicly held investments and a 3% increase in value of our privately held investments. For the three months ended June 30, 2025, the value of our growth equity investment portfolio increased 2%, and the value of our core private equity investment portfolio increased 1%.

The most significant increases in the value of our privately held investments were increases in Exact Holdings B.V., Flow Control Group (industrials sector), and Seiyu Group (consumer products sector). These increases were partially offset by decreases in the value of certain other privately held investments, the most significant of which were PetVet Care Centers, LLC, Goodpack Limited (packaging sector), and Fortifi Food Processing Solutions (manufacturing sector). The increased valuations of our privately held investments, in the aggregate, generally related to (i) individual company performance, (ii) an increase in the value of market comparables for investments that had an increase in value during the current period, and (iii) with respect to Seiyu Group, an increase in valuation reflecting an agreement to exit the investment. The decreased valuations of our privately held investments, in the aggregate, generally related to an unfavorable business outlook by the companies that had a decrease in value during the current period. See "Risk Factors" in our Annual Report and "—Business Environment" for more information about the factors that may impact our business, financial performance, operating results, and valuations.

The most significant increases in share prices of our publicly held investments were increases in BrightSpring Health Services Inc., Kokusai Electric Corporation (TYO: 6525), and OneStream, Inc. (NASDAQ: OS). These increases were partially offset by decreases in share prices of other publicly held investments, the most significant of which were ZJLD Group Inc. (HKG: 6979) and PHC Holdings Corporation (TYO: 6523). The prices of publicly held companies may experience volatile changes following the reporting period. See "Risk Factors" in our Annual Report and "—Business Environment" for more information about the factors, such as volatility, that may impact our business, financial performance, operating results and valuations.

Real Assets

The following table reflects the changes in the AUM of our Real Assets business line from March 31, 2025 to June 30, 2025:


	($ in millions)
March 31, 2025	$	171,281
New Capital Raised	8,239

Distributions and Other	(3,230)
Redemptions	(68)
Change in Value	3,225
June 30, 2025	$	179,447

AUM of our Real Assets business line was $179.4 billion at June 30, 2025, an increase of $8.1 billion, compared to $171.3 billion at March 31, 2025.

The increase was primarily attributable to (i) new capital raised from Global Atlantic inflows invested in real estate, Asia Pacific Infrastructure Investors III, and our infrastructure K-Series vehicles, and, to a lesser extent, (ii) appreciation in investment value from Global Infrastructure Investors IV and the Diversified Core Infrastructure Fund, and (iii) the increase in value of the assets managed by KJRM primarily due to the impact of the currency appreciation of the Japanese yen. Partially offsetting the increase were (i) payments to Global Atlantic policyholders, and (ii) distributions to fund investors as a result of realized proceeds, most notably from Global Infrastructure Investors III and the Diversified Core Infrastructure Fund.

For the three months ended June 30, 2025, the value of our infrastructure and real estate equity investment portfolios both increased 3%.

The most significant increases in value across our Real Assets portfolio were increases in the values of Refresco Group B.V. (manufacturing sector), FiberCop S.p.A., and Colonial Enterprises, Inc. (infrastructure: midstream sector). These increases were partially offset by decreases in value across our real assets portfolio, the most significant of which were various assets held in our opportunistic real estate equity investment portfolio and Crescent. The increased valuations across our real assets portfolio, in the aggregate, generally related to individual company or asset performance. The decreased valuations across our real assets portfolio, in the aggregate, generally related to an unfavorable performance outlook. See "Risk Factors" in our Annual Report and "—Business Environment" for more information about the factors that may impact our business, financial performance, operating results, and valuations.

Credit and Liquid Strategies

The following table reflects the changes in the AUM of our Credit and Liquid Strategies business line from March 31, 2025 to June 30, 2025:


	($ in millions)
March 31, 2025	$	283,643
New Capital Raised	14,250



Distributions and Other	(7,241)
Redemptions	(1,376)
Change in Value	2,507
June 30, 2025	$	291,783

AUM of our Credit and Liquid Strategies business line was $291.8 billion at June 30, 2025, an increase of $8.2 billion, compared to $283.6 billion at March 31, 2025.

The increase was primarily attributable to (i) new capital raised from Global Atlantic inflows and various private credit investment funds, (ii) the issuance of CLOs, and, to a lesser extent, (iii) investment value appreciation across our leveraged credit and private credit investment funds, and on assets managed by Marshall Wace. Partially offsetting the increase were (i) payments to Global Atlantic policyholders, (ii) distributions to, and redemptions from, fund investors at certain private and leveraged credit funds, and (iii) redemptions at Marshall Wace.

See "Risk Factors" in our Annual Report and "—Business Environment" for more information about the factors that may impact our business, financial performance, operating results and valuations.

Fee Paying Assets Under Management

Private Equity

The following table reflects the changes in the FPAUM of our Private Equity business line from March 31, 2025 to June 30, 2025:


	($ in millions)
March 31, 2025	$	124,050
New Capital Raised	18,691

Distributions and Other	(1,226)
Redemptions	(9)
Net Changes in Fee Base of Certain Funds	(1,281)
Change in Value	997
June 30, 2025	$	141,222

FPAUM of our Private Equity business line was $141.2 billion at June 30, 2025, an increase of $17.1 billion, compared to $124.1 billion at March 31, 2025.

The increase was primarily attributable to (i) management fees now being earned starting this quarter from North America Fund XIV and new capital raised from our private equity K-Series vehicles. Partially offsetting the increase was (i) a change in fee base for North America Fund XIII as a result of the fund entering its post-investment period, during which we earn fees on invested capital rather than committed capital, and (ii) distributions to fund investors primarily as a result of realized proceeds, most notably from Next Generation Technology Growth Fund II.

Uncalled capital commitments from private equity funds and other investment vehicles from which KKR is currently not earning management fees amounted to approximately $18.9 billion at June 30, 2025, which includes capital commitments reserved for follow-on investments for funds that have completed their investment periods. This capital will generally begin to earn management fees upon deployment of the capital or upon the commencement of the fund's investment period. The average annual management fee rate associated with this capital is approximately 1.0%. The date on which we begin to earn fees (as specified above) is not guaranteed to occur and may not occur for an extended period of time. If and when such management fees are earned, a portion of existing FPAUM may cease paying fees or pay lower fees, thus offsetting a portion of any new management fees earned.

Real Assets

The following table reflects the changes in the FPAUM of our Real Assets business line from March 31, 2025 to June 30, 2025:


	($ in millions)
March 31, 2025	$	144,033
New Capital Raised	7,382

Distributions and Other	(2,734)
Redemptions	(68)

Change in Value	1,884
June 30, 2025	$	150,497

FPAUM of our Real Assets business line was $150.5 billion at June 30, 2025, an increase of $6.5 billion, compared to $144.0 billion at March 31, 2025.

The increase was primarily attributable to (i) new capital raised from Global Atlantic inflows invested in real estate, our infrastructure K-Series vehicles, and Global Infrastructure Investors V, and, to a lesser extent, (ii) the increase in value of the assets managed by KJRM primarily due to the impact of the currency appreciation of the Japanese yen, and (iii) appreciation in investment value from the Diversified Core Infrastructure Fund. Partially offsetting the increase were (i) payments to Global Atlantic policyholders, and (ii) distributions to fund investors as a result of realized proceeds, most notably from Global Infrastructure Investors III.

Uncalled capital commitments from real assets investment funds and other investment vehicles from which KKR is currently not earning management fees amounted to approximately $14.3 billion at June 30, 2025, which includes capital commitments reserved for follow-on investments for funds that have completed their investment periods. This capital will generally begin to earn management fees upon deployment of the capital or upon the commencement of the fund's investment period. The average annual management fee rate associated with this capital is approximately 1.2%. The date on which we begin to earn fees (as specified above) is not guaranteed to occur and may not occur for an extended period of time. If and when such management fees are earned, a portion of existing FPAUM may cease paying fees or pay lower fees, thus offsetting a portion of any new management fees earned.

Credit and Liquid Strategies

The following table reflects the changes in the FPAUM of our Credit and Liquid Strategies business line from March 31, 2025 to June 30, 2025:


	($ in millions)
March 31, 2025	$	257,962
New Capital Raised	12,733



Distributions and Other	(7,171)
Redemptions	(1,376)
Change in Value	2,380
June 30, 2025	$	264,528

FPAUM of our Credit and Liquid Strategies business line was $264.5 billion at June 30, 2025, an increase of $6.5 billion, compared to $258.0 billion at March 31, 2025.

Uncalled capital commitments from credit investment funds from which KKR is currently not earning management fees amounted to approximately $22.7 billion at June 30, 2025, which includes capital commitments reserved for follow-on investments for funds that have completed their investment periods. This capital will generally begin to earn management fees upon deployment of the capital or upon the commencement of the fund's investment period. The average annual management fee rate associated with this capital is approximately 0.6%. The date on which we begin to earn fees is not guaranteed to occur and may not occur for an extended period of time. If and when such management fees are earned, a portion of existing FPAUM may cease paying fees or pay lower fees, thus offsetting a portion of any new management fees earned.

See "Risk Factors" in our Annual Report and "—Business Environment" for more information about the factors that may impact our business, financial performance, operating results and valuations.

Uncalled Commitments

Private Equity

As of June 30, 2025, our Private Equity business line had $55.2 billion of remaining uncalled commitments that could be called for investments in new transactions as compared to $60.2 billion as of March 31, 2025. The decrease was primarily attributable to (i) the release of capital commitments related to one of our strategic investor partnerships and (ii) capital called from fund investors to make investments during the period, which was partially offset by new capital commitments from fund investors.

Real Assets

As of June 30, 2025, our Real Assets business line had $33.9 billion of remaining uncalled commitments that could be called for investments in new transactions as compared to $31.4 billion as of March 31, 2025. The increase was primarily attributable to new capital commitments from fund investors, which was partially offset by capital called from fund investors to make investments during the period.

Credit and Liquid Strategies

As of June 30, 2025, our Credit and Liquid Strategies business line had $26.0 billion of remaining uncalled commitments that could be called for investments in new transactions as compared to $24.0 billion as of March 31, 2025. The increase was primarily attributed to new capital commitments from fund investors, which was partially offset by capital called from fund investors to make investments during the period.

Capital Invested

Private Equity

For the three months ended June 30, 2025, our Private Equity business line had $4.9 billion of capital invested as compared to $2.6 billion for the three months ended June 30, 2024. The increase was driven primarily by a $1.0 billion increase in capital invested in our core private equity strategy, a $0.8 billion increase in capital invested in our traditional private equity strategy, and a $0.5 billion increase in our growth equity strategy. During the three months ended June 30, 2025, 49% of capital deployed in private equity (including core and growth equity investments which includes impact investments) was in transactions in North America, 43% was in Europe, and 8% was in the Asia-Pacific region. The number of large private equity investments made in any quarterly or year-to-date period is volatile and, consequently, a significant amount of capital invested in one period or a few periods may not be indicative of a similar level of capital deployment in future periods.

Real Assets

For the three months ended June 30, 2025, our Real Assets business line had $4.3 billion of capital invested as compared to $8.2 billion for the three months ended June 30, 2024. The decrease was driven primarily by a $4.3 billion decrease in capital invested in our real estate strategy which was partially offset by a $0.4 billion increase in capital invested in our infrastructure strategy. During the three months ended June 30, 2025, 61% of capital deployed in real assets was in transactions in North America, 29% was in Europe, and 10% was in the Asia-Pacific region. The number of large real assets investments made in any quarterly or year-to-date period is volatile and, consequently, a significant amount of capital invested in one period or a few periods may not be indicative of a similar level of capital deployment in future periods.

Credit and Liquid Strategies

For the three months ended June 30, 2025, our Credit and Liquid Strategies business line had $8.5 billion of capital invested as compared to $11.9 billion for the three months ended June 30, 2024. The decrease was driven primarily by a lower level of capital deployed across our private credit strategies, most notably asset-based finance. During the three months ended June 30, 2025, 81% of capital deployed was in transactions in North America, 17% was in Europe, and 2% was in the Asia-Pacific region.

Analysis of Insurance Segment Operating Results

The following table sets forth information regarding KKR's insurance segment operating results for the three months ended June 30, 2025 and 2024:


	Three Months Ended
	June 30, 2025		June 30, 2024		Change
	($ in thousands)
Net Investment Income	$	1,788,525	$	1,538,046	$	250,479
Net Cost of Insurance	(1,277,381)		(1,070,616)		(206,765)
General, Administrative and Other	(233,212)		(214,217)		(18,995)



Insurance Operating Earnings	$	277,932	$	253,213	$	24,719

Net Investment Income

Net Cost of Insurance

Net cost of insurance increased for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, primarily due to (i) growth in reserves in the institutional and individual market channels as a result of the cumulative impact of new business volumes in the current and preceding quarters, and (ii) higher average funding costs due to higher crediting rates and the routine run-off of older business originated in a lower interest rate environment.

General, Administrative and Other Expenses

General, administrative and other expenses increased for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, primarily due to an increase in cash compensation expenses.

Insurance Operating Earnings

Insurance operating earnings increased for the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, primarily due to an increase in net investment income due to an increase in average assets under management and higher portfolio yields, partially offset by an increase in net cost of insurance due to an increase in new business volumes and higher crediting rates.

Analysis of Strategic Holdings Segment Operating Results

The following table sets forth information regarding KKR's strategic holdings segment operating results for the three months ended June 30, 2025 and 2024:




	Three Months Ended
	June 30, 2025		June 30, 2024		Change
	($ in thousands)
Dividends, Net	$	29,121	$	40,852	$	(11,731)

Strategic Holdings Operating Earnings	29,121		40,852		(11,731)
Net Realized Investment Income	—		—		—
Strategic Holdings Segment Earnings	$	29,121	$	40,852	$	(11,731)

Dividends, Net

For the three months ended June 30, 2025, dividends, net were comprised of dividend income from April SA. For the three months ended June 30, 2024, dividends, net were comprised of dividend income from 1-800 Contacts Inc. and Viridor Limited. Dividends earned in our Strategic Holdings segment are reduced by a management fee charged by our Asset Management segment. For the three months ended June 30, 2025, the management fee was $9.3 million and for the three months ended June 30, 2024, the management fee was $8.2 million.

Net Realized Investment Income

For the three months ended June 30, 2025 and 2024, there was no net realized investment income earned in our Strategic Holdings segment.

Strategic Holdings Segment Earnings

Strategic Holdings segment earnings for the three months ended June 30, 2025, was lower compared to the prior period primarily due to the lower level of dividends from companies owned by KKR through our participation in the core private equity strategy.

Analysis of Non-GAAP Performance Measures

The following is a discussion of our Non-GAAP performance measures for the three months ended June 30, 2025 and 2024:



	Three Months Ended
	June 30, 2025		June 30, 2024		Change
	($ in thousands)
Fee Related Earnings	$	886,754	$	755,397	$	131,357
Insurance Operating Earnings	277,932		253,213		24,719
Strategic Holdings Operating Earnings	29,121		40,852		(11,731)
Total Operating Earnings	1,193,807		1,049,462		144,345

Net Realized Performance Income	109,314		122,839		(13,525)
Net Realized Investment Income	130,898		117,764		13,134
Total Investing Earnings	240,212		240,603		(391)

Total Segment Earnings	1,434,019		1,290,065		143,954
Interest Expense, Net and Other	(93,607)		(79,952)		(13,655)
Income Taxes on Adjusted Earnings	(277,062)		(238,244)		(38,818)
Adjusted Net Income	$	1,063,350	$	971,869	$	91,481

Total Operating Earnings

The increase in total operating earnings for the three months ended June 30, 2025 compared to the prior period was primarily due to a higher level of fee related earnings and insurance operating earnings, partially offset by a lower level of strategic holdings operating earnings. For a discussion of fee related earnings, insurance operating earnings, and strategic holdings operating earnings, see "—Analysis of Asset Management Segment Operating Results", "—Analysis of Insurance Segment Operating Results", and "—Analysis of Strategic Holdings Segment Operating Results."

Total Investing Earnings

Total investing earnings for the three months ended June 30, 2025 compared to the prior period remained relatively flat primarily due to a lower level of net realized performance income which was largely offset by a higher level of net realized investment income. For a discussion of net realized performance income and net realized investment income, see "—Analysis of Asset Management Segment Operating Results" and "—Analysis of Strategic Holdings Segment Operating Results."

Total Segment Earnings

The increase in total segment earnings for the three months ended June 30, 2025 compared to the prior period was primarily due to a higher level of total operating earnings.

Adjusted Net Income

The increase in adjusted net income for the three months ended June 30, 2025 compared to the prior period was primarily due to a higher level of total segment earnings, partially offset by an increase in income taxes on adjusted earnings and interest expense, net and other.

Income Taxes on Adjusted Earnings

The increase in income taxes on adjusted earnings for the three months ended June 30, 2025 compared to the prior period was primarily due to a higher level of total segment earnings.

For the three months ended June 30, 2025 and 2024, the amount of tax benefit from equity-based compensation included in income taxes on adjusted earnings was $29.2 million and $29.4 million, respectively. The inclusion of the tax benefit from equity-based compensation in Adjusted Net Income had the effect of increasing this measure by 3%, for both the three months ended June 30, 2025 and 2024.

Analysis of Asset Management Segment Operating Results

The following tables set forth information regarding KKR's asset management segment operating results for the six months ended June 30, 2025 and 2024.


	Six Months Ended
	June 30, 2025		June 30, 2024		Change
	($ in thousands)
Management Fees	$	1,913,097	$	1,662,634	$	250,463
Transaction and Monitoring Fees, Net	495,758		374,942		120,816
Fee Related Performance Revenues	75,014		56,246		18,768
Fee Related Compensation	(434,677)		(366,419)		(68,258)
Other Operating Expenses	(339,835)		(303,265)		(36,570)
Fee Related Earnings	1,709,357		1,424,138		285,219
Realized Performance Income	766,770		753,854		12,916
Realized Performance Income Compensation	(569,467)		(553,017)		(16,450)
Realized Investment Income	371,955		273,299		98,656
Realized Investment Income Compensation	(55,794)		(40,993)		(14,801)
Asset Management Segment Earnings	$	2,222,821	$	1,857,281	$	365,540

Management Fees

The following table presents management fees by business line:


	Six Months Ended
	June 30, 2025		June 30, 2024		Change
	($ in thousands)
Management Fees
Private Equity	$	706,886	$	693,135	$	13,751
Real Assets	590,972		450,172		140,800
Credit and Liquid Strategies	615,239		519,327		95,912
Total Management Fees	$	1,913,097	$	1,662,634	$	250,463

The increase in Private Equity management fees was primarily attributable to (i) management fees commencing at North America Fund XIV in the second quarter of 2025 and (ii) management fees earned on new capital raised over the past twelve months at our private equity K-Series vehicles, net of certain revenue sharing arrangements. The increase was partially offset by (i) a lower level of management fees earned from Ascendant (our U.S. middle market traditional private equity strategy fund) due to management fees earned on new capital raised in the first half of 2024 that were retroactive to the start of the fund’s investment period and no such retroactive fees were earned for the three months ended June 30, 2025, (ii) a decrease in management fees earned from North America Fund XIII as a result of entering its post-investment period in the second quarter of 2025, and now paying fees based on invested capital rather than committed capital, and (iii) a lower level of management fees from Asian Fund III due to a step-down in management fee rate and a decrease in invested capital subsequent to the second quarter of 2024. During the six months ended June 30, 2025, there were no management fees earned on new capital raised that were retroactive to the start of the relevant fund’s investment period.

The increase in Real Assets management fees was primarily attributable to (i) management fees commencing at Global Infrastructure Investors V in the third quarter of 2024, (ii) a higher level of management fees earned from Global Atlantic primarily due to the growth in assets from inflows, and (iii) management fees earned on new capital raised over the past twelve months at our infrastructure K-Series vehicles, net of certain revenue sharing arrangements. The increase was partially offset by (i) a decrease in management fees earned from Global Infrastructure Investors III due to a decrease in invested capital subsequent to the second quarter of 2024 and (ii) a decrease in management fees earned from Global Infrastructure Investors IV as a result of entering its post-investment period in the third quarter of 2024, and now paying fees based on invested capital rather than committed capital. During the six months ended June 30, 2025, approximately $17.7 million of management fees were earned on new capital raised that is retroactive to the start of the relevant fund's investment period.

The increase in Credit and Liquid Strategies management fees was primarily attributable to (i) a higher level of management fees earned from Global Atlantic primarily due to the growth in assets from inflows, (ii) an increase in capital invested in certain alternative credit strategy accounts, which resulted in an increase in its fee base, and (iii) a higher level of management fees earned from CLOs from new issuances in both the US and Europe over the past twelve months.

Transaction and Monitoring Fees, Net

The following table presents transaction and monitoring fees, net by business line:


	Six Months Ended
	June 30, 2025		June 30, 2024		Change
	($ in thousands)
Transaction and Monitoring Fees, Net
Private Equity	$	39,334	$	32,445	$	6,889
Real Assets	19,226		29,125		(9,899)
Credit and Liquid Strategies	8,286		5,554		2,732
Capital Markets	428,912		307,818		121,094
Total Transaction and Monitoring Fees, Net	$	495,758	$	374,942	$	120,816

Our Private Equity, Real Assets, and Credit and Liquid Strategies business lines earn transaction and monitoring fees from portfolio companies, and under the terms of the management agreements with certain of our investment funds, we are required to share all or a portion of such fees with our fund investors. For most of our investment funds, transaction and monitoring fees are credited against fund management fees up to 100% of the amount of the transaction and monitoring fees attributable to that investment fund, which results in a decrease of our monitoring and transaction fees. Our Capital Markets business line earns transaction fees, which are generally not shared with fund investors.

The increase in transaction and monitoring fees, net is primarily due to a higher level of transaction fees earned in our Capital Markets business line. The increase in capital markets transaction fees was primarily due to an increase in the number of capital markets transactions for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, reflecting increased levels of capital markets issuance activity across the global equity and leveraged loan markets. Overall, we completed 204 capital markets transactions for the six months ended June 30, 2025, of which 22 represented equity offerings and 182 represented debt offerings, as compared to 184 transactions for the six months ended June 30, 2024, of which 24 represented equity offerings and 160 represented debt offerings. We earn fees in connection with underwriting, syndication, and other capital markets services. While each of the capital markets transactions that we undertake in this business line is separately negotiated, our fee rates are generally higher with respect to underwriting or syndicating equity offerings than with respect to debt offerings, and the amount of fees that we earn for similar transactions generally correlates with overall transaction sizes.

Our capital markets fees are generated in connection with activity involving our private equity, real assets, and credit business lines as well as from third-party companies. For the six months ended June 30, 2025, approximately 19% of our transaction fees in our Capital Markets business line were earned from unaffiliated third parties as compared to approximately 22% for the six months ended June 30, 2024. Our transaction fees are comprised of fees earned from North America, Europe, and the Asia-Pacific region. For the six months ended June 30, 2025, approximately 57% of our transaction fees were generated outside of North America as compared to approximately 34% for the six months ended June 30, 2024. Our Capital Markets business line is dependent on the overall capital markets environment, which is influenced by equity prices, credit spreads, and volatility. Our Capital Markets business line does not generate monitoring fees.

Fee Related Performance Revenues

The following table presents fee related performance revenues by business line:


	Six Months Ended
	June 30, 2025		June 30, 2024		Change
	($ in thousands)
Fee Related Performance Revenues
Private Equity	$	—	$	—	$	—
Real Assets	37,823		17,606		20,217
Credit and Liquid Strategies	37,191		38,640		(1,449)
Total Fee Related Performance Revenues	$	75,014	$	56,246	$	18,768

Fee related performance revenues represent performance fees that are (i) expected to be received from our investment funds, investment vehicles and accounts on a more recurring basis and (ii) not dependent on a realization event involving investments held by the investment fund, vehicle or account.

The increase in fee related performance revenues for the six months ended June 30, 2025 compared to the prior period was primarily due to a higher level of performance revenues being earned from one of our infrastructure K-Series vehicles in our Real Assets business line.

Fee Related Compensation

The increase in fee related compensation for the six months ended June 30, 2025 compared to the prior period was primarily due to a higher level of compensation recorded in connection with the higher level of fee related revenues.

Other Operating Expenses

The increase in other operating expenses for the six months ended June 30, 2025 compared to the prior period was primarily due to a higher level of occupancy related and general and administrative costs.

Fee Related Earnings

The increase in fee related earnings for the six months ended June 30, 2025 compared to the prior period was primarily due to (i) a higher level of management fees across our Private Equity, Real Assets, and Credit and Liquid Strategies business lines and (ii) a higher level of transaction fees earned in our Capital Markets business line, partially offset by a higher level of fee related compensation and other operating expenses, as described above.

Realized Performance Income

The following table presents realized performance income by business line:


	Six Months Ended
	June 30, 2025		June 30, 2024		Change
	($ in thousands)
Realized Performance Income
Private Equity	$	689,552	$	593,240	$	96,312
Real Assets	36,771		124,966		(88,195)
Credit and Liquid Strategies	40,447		35,648		4,799
Total Realized Performance Income	$	766,770	$	753,854	$	12,916


	Six Months Ended
	June 30, 2025		June 30, 2024		Change
	($ in thousands)
Private Equity
Core Investment Vehicles	$	187,886	$	65,846	$	122,040
Next Generation Technology Growth Fund II	162,679		—		162,679
European Fund V	89,459		32,864		56,595
Private Equity K-Series	80,676		32,476		48,200
Strategic Investor Partnerships	78,115		—		78,115
Americas Fund XII	28,838		398,493		(369,655)
Global Impact Fund	13,215		—		13,215
North America Fund XI	—		10,948		(10,948)
Next Generation Technology Growth Fund	—		6,954		(6,954)
Asian Fund III	—		6,721		(6,721)
2006 Fund	—		961		(961)






Other	48,684		37,977		10,707
Total Realized Performance Income	$	689,552	$	593,240	$	96,312


	Six Months Ended
	June 30, 2025		June 30, 2024		Change
	($ in thousands)
Real Assets
Global Infrastructure Investors III	$	24,184	$	124,342	$	(100,158)
Real Estate Partners Americas II	—		624		(624)
Global Infrastructure Investors II	8,744		—		8,744
Other	3,843		—		3,843












Total Realized Performance Income	$	36,771	$	124,966	$	(88,195)



	Six Months Ended
	June 30, 2025		June 30, 2024		Change
	($ in thousands)
Credit and Liquid Strategies
Lending Partners III	$	7,334	$	—	$	7,334
Alternative Credit Vehicles and Other Funds	16,456		12,541		3,915


Other	16,657		23,107		(6,450)
Total Realized Performance Income	$	40,447	$	35,648	$	4,799

Realized performance income in our Private Equity business line for the six months ended June 30, 2025 consisted primarily of (i) performance income from our core investment vehicles and one of our private equity K-Series vehicles, and (ii) realized proceeds from the sale of our investments in ReliaQuest, LLC held by Next Generation Technology Growth Fund II, The Citation Group held by both European Fund V and Global Impact Fund, and BrightSpring Health Services Inc. held by Americas Fund XII.

Realized performance income in our Private Equity business line for the six months ended June 30, 2024 consisted primarily of (i) realized proceeds from the sale of our investment in AppLovin Corporation held by Americas Fund XII and a dividend from MásOrange held by European Fund V and (ii) performance income from our core investment vehicles and one of our private equity K-Series vehicles.

Realized performance income in our Real Assets business line for the six months ended June 30, 2025 consisted primarily of realized proceeds from the sale of our investments in NEP Renewables II, LLC held by Global Infrastructure Investors III and Q-Park N.V. (infrastructure: transportation sector) held by Global Infrastructure Investors II.

Realized performance income in our Real Assets business line for the six months ended June 30, 2024 consisted primarily of realized proceeds from the sale of our investment in ADNOC Oil Pipelines held by Global Infrastructure Investors III.

Realized performance income in our Credit & Liquid Strategies business line for the six months ended June 30, 2025 consisted primarily of realized proceeds at Lending Partners III and certain other alternative credit funds.

Realized performance income in our Credit and Liquid Strategies business line for the six months ended June 30, 2024 consisted primarily of (i) performance fees earned from our subadvisory agreement with a UK investment fund manager and (ii) realized proceeds from the sale of various investments at certain credit funds that paid carried interest.

Realized Performance Income Compensation

The increase in realized performance income compensation for the six months ended June 30, 2025 compared to the prior period was primarily due to a higher level of compensation recorded in connection with the higher level of realized performance income.

Realized Investment Income

The following table presents realized investment income from our Principal Activities business line:


	Six Months Ended
	June 30, 2025		June 30, 2024		Change
	($ in thousands)



Total Realized Investment Income	$	371,955	$	273,299	$	98,656

For the six months ended June 30, 2025, realized investment income was primarily comprised of (i) realized gains primarily from the sale of our investments in BridgeBio Pharma, Inc. and ReliaQuest, LLC, (ii) realized gains from the settlement of certain foreign exchange forward contracts, and (iii) interest income primarily from our investments in CLOs. Partially offsetting the realized gains were realized losses, the most significant of which were (i) realized losses from the sale of various revolving credit facilities and (ii) a realized loss related to a structured multi-asset investment vehicle.

For the six months ended June 30, 2024, realized investment income was primarily comprised of (i) interest income primarily from our investments in CLOs and (ii) realized gains from the sale of our investments in AppLovin Corporation, Darktrace Limited, and Australian Venue Co. (consumer products sector). Partially offsetting the realized gains were realized losses, the most significant of which were (i) a realized loss on our infrastructure investment, Indus Towers Ltd. (NSE: INDUSTOWER), (ii) a realized loss on our private equity investment, Acteon Group Ltd., and (iii) realized losses from the sales of various revolving credit facilities.

Realized investment income includes the net income (loss) from KKR Capstone. For the six months ended June 30, 2025, total fees attributable to KKR Capstone were $45.6 million and total expenses attributable to KKR Capstone were $45.0 million. For KKR Capstone-related adjustments in reconciling asset management segment revenues to GAAP revenues see "—Segment Balance Sheet Measures—Reconciliations to GAAP Measures."

As of the date of this filing, we have transactions that are pending or that have closed after June 30, 2025 that are expected to result in realized performance income and realized investment income of at least $800 million, which is expected to be realized in the second half of 2025 and most of which is expected to be realized performance income. Some of these transactions are not complete, and are subject to the satisfaction of closing conditions, including regulatory approvals; therefore, there can be no assurance if or when such transactions will be completed. In addition, we may realize gains or losses based on transactions or other events that occur after the date of filing this report, which could impact, positively or negatively, the total amount of our realized performance income and realized investment income. Therefore, no assurance can be given for what our actual realized performance income and realized investment income in the second half of 2025 or future periods will be.

Realized Investment Income Compensation

The increase in realized investment income compensation for the six months ended June 30, 2025 compared to the prior period is primarily due to a higher level of compensation recorded in connection with the higher level of realized investment income.

Operating and Capital Metrics

The following tables present our key asset management segment operating and capital metrics:


	As of
	June 30, 2025		December 31, 2024		Change
	($ in millions)
Assets Under Management	$	685,806	$	637,572	$	48,234
Fee Paying Assets Under Management	$	556,247	$	511,963	$	44,284
Uncalled Commitments	$	115,145	$	109,555	$	5,590


	Six Months Ended
	June 30, 2025		June 30, 2024		Change
	($ in millions)
Capital Invested	$	36,675	$	36,837	$	(162)

Assets Under Management

Private Equity

The following table reflects the changes in the AUM of our Private Equity business line from December 31, 2024 to June 30, 2025:


	($ in millions)
December 31, 2024	$	195,358
New Capital Raised	16,486

Distributions and Other	(7,879)
Redemptions	(15)
Change in Value	10,626
June 30, 2025	$	214,576

AUM of our Private Equity business line was $214.6 billion at June 30, 2025, an increase of $19.2 billion, compared to $195.4 billion at December 31, 2024.

The increase was primarily attributable to (i) new capital raised from North America Fund XIV and our private equity K-Series vehicles and, to a lesser extent, (ii) appreciation in investment value primarily from Asian Fund IV, North America Fund XIII, and Americas Fund XII. Partially offsetting the increase were (i) the release of capital commitments related to one of our strategic partnerships, and (ii) distributions to fund investors primarily as a result of realized proceeds, most notably from Next Generation Technology Growth Fund II and our core private equity strategy.

For the six months ended June 30, 2025, the value of our traditional private equity investment portfolio increased by 9%. This was comprised of a 15% increase in share prices of publicly held investments and a 8% increase in value of our privately held investments. For the six months ended June 30, 2025, the value of our growth equity investment portfolio increased 7%, and the value of our core private equity investment portfolio increased 3%.

The most significant increases in the value of our privately held investments were increases in Seiyu Group, Exact Holdings B.V., and Janney Montgomery Scott, LLC (financial services sector). These increases in value of our privately held investments were partially offset by decreases in the value of certain other privately held investments, the most significant of which were PetVet Care Centers, LLC, Magneti Marelli CK Holdings Co., Ltd. (industrials sector), and Goodpack Limited. The increased valuations of our privately held investments, in the aggregate, generally related to (i) individual company performance, (ii) an increase in the value of market comparables for investments that had an increase in value during the current period, and (iii) with respect to Seiyu Group, an increase in valuation reflecting an agreement to exit the investment. The decreased valuations of our privately held investments, in the aggregate, generally related to an unfavorable business outlook by the companies that had a decrease in value during the current period. See "Risk Factors" in our Annual Report and "—Business Environment" for more information about the factors that may impact our business, financial performance, operating results, and valuations.

The most significant increases in share prices of our publicly held investments were increases in Kokusai Electric Corporation, BrightSpring Health Services Inc., and Gambol Pet Group Co. Ltd. (SHE: 301498). These increases were partially offset by decreases in share prices of other publicly held investments, the most significant of which were J.B. Chemicals and Pharmaceuticals Limited (NSE: JBCP) and OneStream, Inc. The prices of publicly held companies may experience volatile changes following the reporting period. See "Risk Factors" in our Annual Report and "—Business Environment" for more information about the factors, such as volatility, that may impact our business, financial performance, operating results and valuations.

Real Assets

The following table reflects the changes in the AUM of our Real Assets business line from December 31, 2024 to June 30, 2025:


	($ in millions)
December 31, 2024	$	165,969
New Capital Raised	13,461

Distributions and Other	(5,815)
Redemptions	(129)
Change in Value	5,961
June 30, 2025	$	179,447

AUM of our Real Assets business line was $179.4 billion at June 30, 2025, an increase of $13.4 billion, compared to $166.0 billion at December 31, 2024.

The increase was primarily attributable to (i) new capital raised from Global Atlantic inflows invested in real estate, our infrastructure K-Series vehicles, and Global Infrastructure Investors V, and, to a lesser extent, (ii) appreciation in investment value from Global Infrastructure Investors IV and the Diversified Core Infrastructure Fund, and (iii) the increase in value of the assets managed by KJRM primarily due to the impact of the currency appreciation of the Japanese yen. Partially offsetting the increase were (i) payments to Global Atlantic policyholders and (ii) distributions to fund investors as a result of realized proceeds, most notably from Global Infrastructure Investors III and Global Infrastructure Investors IV.

For the six months ended June 30, 2025, the value of our infrastructure investment portfolio increased 8% and the value of our opportunistic real estate equity investment portfolio increased by 5%.

The most significant increases in value across our Real Assets portfolio were increases in the values of Colonial Enterprises, Inc., FiberCop S.p.A., and Greenvolt Energia Renovaveis, S.A. (infrastructure: energy and energy transition). These increases in value across our real assets portfolio were partially offset by decreases in value across our real assets portfolio, the most significant of which was My Community Homes (real estate equity). The increased valuations across our real assets portfolio, in the aggregate, generally related to individual company or asset performance. The decreased valuations across our real assets portfolio, in the aggregate, generally related to an unfavorable business outlook by the companies that had a decrease in value during the current period. See "Risk Factors" in our Annual Report and "—Business Environment" for more information about the factors that may impact our business, financial performance, operating results, and valuations.

Credit and Liquid Strategies

The following table reflects the changes in the AUM of our Credit and Liquid Strategies business line from December 31, 2024 to June 30, 2025:


	($ in millions)
December 31, 2024	$	276,245
New Capital Raised	28,579


Distributions and Other	(13,699)
Redemptions	(3,067)
Change in Value	3,725
June 30, 2025	$	291,783

AUM of our Credit and Liquid Strategies business line totaled $291.8 billion at June 30, 2025, an increase of $15.6 billion compared to AUM of $276.2 billion at December 31, 2024.

The increase was primarily attributable to (i) new capital raised from Global Atlantic inflows and various private credit and leveraged credit investment funds, (ii) the issuance of CLOs, and, to a lesser extent, (iii) investment value appreciation across our leveraged credit and private credit investment funds, and on assets managed by Marshall Wace. Partially offsetting the increase were (i) payments to Global Atlantic policyholders, (ii) distributions to, and redemptions from, fund investors at certain private and leveraged credit funds, and (iii) redemptions at Marshall Wace.

See "Risk Factors" in our Annual Report and "—Business Environment" for more information about the factors that may impact our business, financial performance, operating results and valuations.

Fee Paying Assets Under Management

Private Equity

The following table reflects the changes in the FPAUM of our Private Equity business line from December 31, 2024 to June 30, 2025:


	($ in millions)
December 31, 2024	$	119,598
New Capital Raised	23,278

Distributions and Other	(2,040)
Redemptions	(15)
Net Changes in Fee Base of Certain Funds	(1,281)
Change in Value	1,682
June 30, 2025	$	141,222

FPAUM of our Private Equity business line was $141.2 billion at June 30, 2025, an increase of $21.6 billion, compared to $119.6 billion at December 31, 2024.

The increase was primarily attributable to (i) management fees now being earned starting this quarter from North America Fund XIV and new capital raised from our private equity K-Series vehicles, our core private equity strategy, and assets we manage and earn fees from in our Strategic Holdings segment. Partially offsetting the increase was (i) a change in fee base for North America Fund XIII as a result of the fund entering its post-investment period, during which we earn fees on invested capital rather than committed capital and (ii) distributions to fund investors primarily as a result of realized proceeds, most notably from Asian Fund III and Next Generation Technology Growth Fund II.

Real Assets

The following table reflects the changes in the FPAUM of our Real Assets business line from December 31, 2024 to June 30, 2025:


	($ in millions)
December 31, 2024	$	139,681
New Capital Raised	12,728

Distributions and Other	(4,704)
Redemptions	(129)

Change in Value	2,921
June 30, 2025	$	150,497

FPAUM of our Real Assets business line was $150.5 billion at June 30, 2025, an increase of $10.8 billion, compared to $139.7 billion at December 31, 2024.

The increase was primarily attributable to (i) new capital raised from Global Atlantic inflows invested in real estate, our infrastructure K-Series vehicles, and Global Infrastructure Investors V, and, to a lesser extent, (ii) the increase in value of the assets managed by KJRM primarily due to the impact of the currency appreciation of the Japanese yen and (iii) appreciation in investment value from the Diversified Core Infrastructure Fund. Partially offsetting the increase were (i) payments to Global Atlantic policyholders, and (ii) distributions to fund investors as a result of realized proceeds, most notably from Global Infrastructure Investors III.

Credit and Liquid Strategies

The following table reflects the changes in the FPAUM of our Credit and Liquid Strategies business line from December 31, 2024 to June 30, 2025:


	($ in millions)
December 31, 2024	$	252,684
New Capital Raised	25,117


Distributions and Other	(13,543)
Redemptions	(3,067)
Change in Value	3,337
June 30, 2025	$	264,528

FPAUM of our Credit and Liquid Strategies business line was $264.5 billion at June 30, 2025, an increase of $11.8 billion compared to $252.7 billion at December 31, 2024.

See "Risk Factors" in our Annual Report and "—Business Environment" for more information about the factors that may impact our business, financial performance, operating results and valuations.

Uncalled Commitments

Private Equity

As of June 30, 2025, our Private Equity business line had $55.2 billion of remaining uncalled commitments that could be called for investments in new transactions as compared to $54.9 billion as of December 31, 2024. The increase was primarily attributable to new capital commitments from fund investors, which was partially offset by (i) the release of capital commitments related to one of our strategic investor partnerships and (ii) capital called from fund investors to make investments during the period.

Real Assets

As of June 30, 2025, our Real Assets business line had $33.9 billion of remaining uncalled commitments that could be called for investments in new transactions as compared to $33.3 billion as of December 31, 2024. The increase was primarily attributable to new capital commitments from fund investors, which was partially offset by capital called from fund investors to make investments during the period.

Credit and Liquid Strategies

As of June 30, 2025, our Credit and Liquid Strategies business line had $26.0 billion of remaining uncalled commitments that could be called for investments in new transactions as compared to $21.4 billion as of December 31, 2024. The increase was primarily attributable to new capital commitments from fund investors, which was partially offset by capital called from fund investors to make investments during the period.

Capital Invested

Private Equity

For the six months ended June 30, 2025, $9.2 billion of capital was invested by our Private Equity business line, as compared to $3.7 billion for the six months ended June 30, 2024. The increase was driven primarily by a $2.4 billion increase in capital invested in our traditional private equity strategy, a $2.3 billion increase in capital invested in our core private equity strategy, and a $0.7 billion increase in capital invested in our growth equity strategy. During the six months ended June 30, 2025, 59% of capital deployed in private equity was in transactions in North America, 29% was in Europe, and 12% was in the Asia-Pacific region. The number of large private equity investments made in any quarterly or year-to-date period is volatile and, consequently, a significant amount of capital invested in one period or a few periods may not be indicative of a similar level of capital deployment in future periods.

Real Assets

For the six months ended June 30, 2025, $9.8 billion of capital was invested by our Real Assets business line, as compared to $13.7 billion for the six months ended June 30, 2024. The decrease was driven primarily by a $5.5 billion decrease in capital invested in our real estate strategy, partially offset by a $0.9 billion increase in capital invested in our energy strategy and a $0.8 billion increase in our infrastructure strategy. During the six months ended June 30, 2025, 47% of capital deployed in real assets was in transactions in North America, 35% was in Europe, and 18% was in the Asia-Pacific region. The number of large real assets investments made in any quarterly or year-to-date period is volatile and, consequently, a significant amount of capital invested in one period or a few periods may not be indicative of a similar level of capital deployment in future periods.

Credit and Liquid Strategies

For the six months ended June 30, 2025, $17.6 billion of capital was invested by our Credit and Liquid Strategies business line, as compared to $19.4 billion for the six months ended June 30, 2024. The decrease was driven primarily by a lower level of capital deployed across our private credit strategies, most notably asset-based finance. During the six months ended June 30, 2025, 84% of capital deployed was in transactions in North America, 13% was in Europe, and 3% was in the Asia-Pacific region.

Analysis of Insurance Segment Operating Results

The following table sets forth information regarding KKR's insurance segment operating results for the six months ended June 30, 2025 and 2024:




	Six Months Ended
	June 30, 2025		June 30, 2024		Change
	($ in thousands)











Net Investment Income	$	3,517,868	$	3,024,465	$	493,403
Net Cost of Insurance	(2,518,603)		(2,073,943)		(444,660)
General, Administrative and Other	(462,561)		(424,469)		(38,092)



Insurance Operating Earnings	$	536,704	$	526,053	$	10,651

Net Investment Income

Net investment income increased for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, primarily due to (i) increased average assets under management from the cumulative impact of new business volume growth, and (ii) higher average portfolio yields.

Net Cost of Insurance

Net cost of insurance increased for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, primarily due to (i) growth in reserves in the institutional and individual market channels as a result of the cumulative impact of new business volumes in the current and preceding quarters, and (ii) higher average funding costs due to higher crediting rates and the routine run-off of older business originated in a lower interest rate environment.

General, Administrative and Other Expenses

General, administrative and other expenses increased for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, primarily due to (i) an increase in cash compensation expenses, and (ii) higher interest expense primarily reflecting higher levels of borrowing.

Insurance Operating Earnings

Insurance operating earnings increased for the six months ended June 30, 2025, as compared to the six months ended June 30, 2024, primarily due to an increase in net investment income due to an increase in average assets under management and higher portfolio yields, partially offset by an increase in net cost of insurance due to an increase in new business volumes and higher crediting rates.

Analysis of Strategic Holdings Segment Operating Results

The following table sets forth information regarding KKR's strategic holdings segment operating results for the six months ended June 30, 2025 and 2024:




	Six Months Ended
	June 30, 2025		June 30, 2024		Change
	($ in thousands)
Dividends, Net	$	60,607	$	61,572	$	(965)

Strategic Holdings Operating Earnings	60,607		61,572		(965)
Net Realized Investment Income	—		—		—
Strategic Holdings Segment Earnings	$	60,607	$	61,572	$	(965)

Dividends, Net

For the six months ended June 30, 2025, dividends, net were comprised of dividend income from April S.A., Atlantic Aviation FBO Inc. and ERM Worldwide Group Limited (services sector). For the six months ended June 30, 2024, dividends, net were comprised of dividend income from 1-800 Contacts Inc., Exact Holdings B.V., Viridor Limited, and FiberCop S.p.A. Dividends earned in our Strategic Holdings segment are reduced by a management fee charged by our Asset Management segment. For the six months ended June 30, 2025, the management fee was $17.2 million and for the six months ended June 30, 2024, the management fee was $15.7 million.

Net Realized Investment Income

For the six months ended June 30, 2025 and 2024, there was no net realized investment income earned in our Strategic Holdings segment.

Strategic Holdings Segment Earnings

Strategic Holdings segment earnings for the six months ended June 30, 2025, was lower compared to the prior period primarily due to a lower level of dividends from companies owned by KKR through our participation in the core private equity strategy.

Analysis of Non-GAAP Performance Measures

The following is a discussion of our Non-GAAP performance measures for the six months ended June 30, 2025 and 2024:



	Six Months Ended
	June 30, 2025		June 30, 2024		Change
	($ in thousands)
Fee Related Earnings	$	1,709,357	$	1,424,138	$	285,219
Insurance Operating Earnings	536,704		526,053		10,651
Strategic Holdings Operating Earnings	60,607		61,572		(965)
Total Operating Earnings	2,306,668		2,011,763		294,905

Net Realized Performance Income	197,303		200,837		(3,534)
Net Realized Investment Income	316,161		232,306		83,855
Total Investing Earnings	513,464		433,143		80,321

Total Segment Earnings	2,820,132		2,444,906		375,226
Interest Expense, Net and Other	(185,077)		(154,682)		(30,395)
Income Taxes on Adjusted Earnings	(537,717)		(454,610)		(83,107)
Adjusted Net Income	$	2,097,338	$	1,835,614	$	261,724

Total Operating Earnings

The increase in total operating earnings for the six months ended June 30, 2025 compared to the prior period was primarily due to a higher level of fee related earnings and insurance operating earnings, partially offset by a lower level of strategic holdings operating earnings. For a discussion of fee related earnings, insurance operating earnings, and strategic holdings operating earnings, see "—Analysis of Asset Management Segment Operating Results", "—Analysis of Insurance Segment Operating Results", and "—Analysis of Strategic Holdings Segment Operating Results."

Total Investing Earnings

The increase in total investing earnings for the six months ended June 30, 2025 compared to the prior period was primarily due to a higher level of net realized investment income. For a discussion of net realized performance income and net realized investment income, see "—Analysis of Asset Management Segment Operating Results" and "—Analysis of Strategic Holdings Segment Operating Results."

Total Segment Earnings

The increase in total segment earnings for the six months ended June 30, 2025 compared to the prior period was primarily due to an increase in total operating earnings and, to a lesser extent, total investing earnings.

Adjusted Net Income

The increase in adjusted net income for the six months ended June 30, 2025 compared to the prior period was primarily due to a higher level of total segment earnings, partially offset by an increase in income taxes on adjusted earnings and interest expense, net and other.

Income Taxes on Adjusted Earnings

The increase in income taxes on adjusted earnings for the six months ended June 30, 2025 compared to the prior period was primarily due to a higher level of total segment earnings.

For the six months ended June 30, 2025 and 2024, the amount of the tax benefit from equity-based compensation included in income taxes on adjusted earnings was $60.0 million and $55.6 million, respectively. The inclusion of the tax benefit from equity-based compensation in Adjusted Net Income had the effect of increasing this measure by 3% for both the six months ended June 30, 2025 and 2024.

Segment Balance Sheet Measures

Asset Management Investment Portfolio

We report our investments in our core private equity strategy in our Strategic Holdings segment and therefore the investments that we hold on our balance sheet as reported in the Asset Management segment exclude such investments. To the extent our investments are realized at values above or below their cost in future periods, adjusted net income would be positively or negatively affected by the amount of any such gain or loss, respectively, during the period in which the realization event occurs.

Our investments in the Asset Management segment by asset class as of June 30, 2025 are as follows:


	As of June 30, 2025
	($ in thousands)
Asset Management Segment Investments (1)	Cost		Fair Value		Fair Value as a Percentage of Total Asset Management Investments

Traditional Private Equity	$	1,381,563	$	3,337,028	35.7	%

Growth Equity	192,470		849,295		9.1	%

Private Equity Total	1,574,033		4,186,323		44.8	%

Real Estate	1,512,025		1,372,493		14.7	%
Energy	609,214		588,961		6.3	%
Infrastructure	189,998		476,742		5.1	%
Real Assets Total	2,311,237		2,438,196		26.1	%

Leveraged Credit	1,120,071		1,095,613		11.7	%
Alternative Credit	581,353		734,894		7.9	%
Credit Total	1,701,424		1,830,507		19.6	%

Other	1,010,030		905,046		9.5	%

Total Asset Management Segment Investments	$	6,596,724	$	9,360,072	100.0	%

(1)Investments is a term used solely for purposes of financial presentation of a portion of KKR's balance sheet and includes majority ownership of subsidiaries that operate KKR's asset management and insurance businesses, including the general partner interests of KKR's investment funds. Investments presented are principally the assets measured at fair value that are held by KKR's asset management segment, which, among other things, does not include the underlying investments held by Global Atlantic and Marshall Wace. This table excludes investments in our Strategic Holdings and Insurance segments, about which additional information is available at Footnote 21 "Segment Reporting" in our financial statements.

Global Atlantic's Investment Portfolio

As of June 30, 2025, 94%, and 89% of Global Atlantic's available-for-sale ("AFS") fixed maturity securities were considered investment grade under ratings from the Securities Valuation Office of the NAIC and NRSROs, respectively. As of December 31, 2024, 95%, and 88% of Global Atlantic's AFS fixed maturity securities were considered investment grade under ratings from NAIC and NRSROs, respectively. Securities where a rating by a NRSRO was not available are considered investment grade if they have a NAIC designation of “1” or “2.” The three largest asset categories in Global Atlantic's AFS fixed maturity security portfolio as of June 30, 2025, were Corporate securities, residential mortgage-backed securities ("RMBS"), and CMBS, comprising 27%, 7%, and 5% of Global Atlantic's investment portfolio, respectively. Within these categories, 92%, 98%, and 94% of Global Atlantic's Corporate, RMBS, and CMBS securities, respectively, were investment grade according to NAIC ratings, and 93%, 83%, and 58% of its Corporate, RMBS, and CMBS securities, respectively, were investment grade according to NRSRO ratings as of June 30, 2025. The three largest asset categories in Global Atlantic's AFS fixed maturity security portfolio as of December 31, 2024, were Corporate, RMBS, and CMBS securities, comprising 25%, 6%, and 5% of Global Atlantic's investment portfolio, respectively. Within these categories, 94%, 96%, and 90% of Global Atlantic's Corporate, RMBS, and CMBS securities, respectively, were investment grade according to NAIC ratings, and 94%, 74%, and 59% of its Corporate, RMBS, and CMBS securities, respectively, were investment grade according to NRSRO ratings as of December 31, 2024. NRSRO and NAIC ratings have different methodologies. Global Atlantic believes the NAIC ratings methodology, which considers the likelihood of recovery of amortized cost as opposed to the recovery of all contractual payments including the principal at par, as the more appropriate way to view the ratings quality of its AFS fixed maturity portfolio since a large portion of its holdings were purchased at a significant discount to par value. The portion of Global Atlantic's investment portfolio consisting of floating rate assets was 28% and 25% as of June 30, 2025 and December 31, 2024, respectively.

Within the funds withheld receivable at interest portfolio, 96% and 97% of the fixed maturity securities were investment grade by NAIC designation as of June 30, 2025 and December 31, 2024, respectively.

Trading fixed maturity securities primarily back funds withheld payable at interest where the investment performance is ceded to reinsurers under the terms of the respective reinsurance agreements.

Credit Quality of AFS Fixed Maturity Securities

The Securities Valuation Office of the NAIC evaluates the AFS fixed maturity security investments of insurers for regulatory reporting and capital assessment purposes and assigns securities to one of six credit quality categories called “NAIC designations.” Using an internally developed rating is permitted by the NAIC if no rating is available. These designations are generally similar to the credit quality designations of NRSROs for marketable fixed maturity securities, except for certain structured securities as described below. NAIC designations of “1,” highest quality, and “2,” high quality, include fixed maturity securities generally considered investment grade by NRSROs. NAIC designations “3” through “6” include fixed maturity securities generally considered below investment grade by NRSROs.

Consistent with the NAIC Process and Procedures Manual, a NRSRO rating was assigned based on the following criteria: (i) the equivalent S&P rating where the security is rated by one NRSRO; (ii) the equivalent S&P rating of the lowest NRSRO when the security is rated by two NRSROs; and (iii) the equivalent S&P rating of the second lowest NRSRO if the security is rated by three or more NRSROs. If the lowest two NRSROs’ ratings are equal, then such rating will be the assigned rating. NRSROs’ ratings available for the periods presented were S&P, Fitch, Moody’s, DBRS, Inc., and Kroll Bond Rating Agency, Inc. If no rating is available from a rating agency, then an internally developed rating is used.

Substantially all of the AFS fixed maturity securities portfolio, 94% and 95% as of June 30, 2025 and December 31, 2024, respectively, was invested in investment grade assets with a NAIC rating of 1 or 2.

The portion of the AFS fixed maturity securities portfolio that was considered below investment grade by NAIC designation was 6% and 5% as of June 30, 2025, and December 31, 2024, respectively. Pursuant to Global Atlantic's investment guidelines, Global Atlantic actively monitors the percentage of its portfolio that is held in investments rated NAIC 3 or lower and must obtain an additional approval from Global Atlantic's management investment committee before making a significant investment in an asset rated NAIC 3 or lower.

Corporate Fixed Maturity Securities

Global Atlantic maintains a diversified portfolio of corporate fixed maturity securities across industries and issuers. As of June 30, 2025 and December 31, 2024, 59% and 55% of the AFS fixed maturity securities portfolio was invested in corporate fixed maturity securities, respectively. As of June 30, 2025 and December 31, 2024, approximately 6% and 5% of the portfolio is denominated in foreign currency, respectively.

As of June 30, 2025 and December 31, 2024, 92% and 94% of the total fair value of corporate fixed maturity securities is rated NAIC investment grade, respectively, and 93% and 94% is rated NRSROs investment grade, respectively.

Residential Mortgage-Backed Securities

As of June 30, 2025 and December 31, 2024, 15% and 13% of the AFS fixed maturity securities portfolio was invested in RMBS, respectively. RMBS are securities constructed from pools of residential mortgages and backed by payments from those pools. Excluding limitations on access to lending and other extraordinary economic conditions, Global Atlantic would expect prepayments of principal on the underlying loans to accelerate with decreases in market interest rates and diminish with increases in market interest rates.

The NAIC designations for RMBS, including prime, sub-prime, alt-A, and adjustable rate mortgages with variable payment options ("Option ARM"), are based upon a comparison of the bond’s amortized cost to the NAIC’s loss expectation for each security. Accordingly, an investment in the same security at a lower cost may result in a higher quality NAIC designation in recognition of the lower likelihood the investment would result in a realized loss. Prime residential mortgage lending includes loans to the most creditworthy borrowers with high quality credit profiles. Alt-A is a classification of mortgage loans where the risk profile of the borrower is between prime and sub-prime, which also includes certain non-qualified mortgages. Sub-prime mortgage lending is the business of originating residential mortgage loans to borrowers with weaker credit profiles.

As of June 30, 2025 and December 31, 2024, 91% and 84% of RMBS securities that are below investment grade as rated by the NRSRO, carry an NAIC 1 ("highest quality") designation, respectively.

As of June 30, 2025, Alt-A, Agency, Option ARM, Prime and Sub-prime represent 38%, 31%, 10%, 8% and 5% of the total RMBS portfolio ($12.1 billion), respectively. As of December 31, 2024, Alt-A, Agency, Option ARM, Sub-prime, and Re-Performing represent 44%, 20%, 15%, 8%, and 6% of the total RMBS portfolio ($10.3 billion), respectively.

Unrealized Gains and Losses for AFS Fixed Maturity Securities

Global Atlantic's investments in AFS fixed maturity securities are reported at fair value with changes in fair value recorded in other comprehensive income as unrealized gains or losses, net of taxes and offsets. Unrealized gains and losses can be created by changes in interest rates or by changes in credit spreads.

As of June 30, 2025 and December 31, 2024, Global Atlantic had gross unrealized losses on below investment grade AFS fixed maturity securities of $383.5 million and $584.3 million based on NRSRO ratings, and $193.6 million and $245.6 million based on NAIC ratings, respectively. As of June 30, 2025, unrealized losses were not recognized in net income on these fixed maturity securities since Global Atlantic neither intends to sell the securities nor does it believe that it is more likely than not that it will be required to sell these securities before recovery of their cost or amortized cost basis.

Credit Quality of Mortgage and Other Loan Receivables

Mortgage and other loan receivables consist of commercial and residential mortgage loans, consumer loans, and other loan receivables. As of June 30, 2025 and December 31, 2024, 30% and 31% of Global Atlantic's total investments consisted of mortgage and other loan receivables, respectively.

Global Atlantic invests in U.S. mortgage loans, comprised of first lien and mezzanine commercial mortgage loans and first lien residential mortgage loans. For Global Atlantic’s commercial mortgage loan portfolio, the most prevalent property type is multi-family residential buildings, which represents approximately half of the portfolio as of both June 30, 2025 and December 31, 2024. Office and retail properties represent approximately 19% and 20% of the portfolio as of June 30, 2025 and December 31, 2024, respectively.

Global Atlantic's commercial mortgage loans are assigned NAIC designations, with designations “CM1” and “CM2” considered to be investment grade. As of both June 30, 2025 and December 31, 2024, 91% of the commercial mortgage loan portfolio were rated investment grade based on NAIC designation. The payment status of over 99% of the commercial mortgage loan portfolio is current as of both June 30, 2025 and December 31, 2024.

The loan-to-value ratio is expressed as a percentage of the current amount of the loan relative to the value of the underlying collateral. As of both June 30, 2025 and December 31, 2024, approximately 90% of the commercial mortgage loans have a loan-to-value ratio of 70% or less, and as of June 30, 2025 and December 31, 2024, 2% and 1% have loan-to-value ratio over 90%, respectively.

Changing economic conditions and updated assumptions affect Global Atlantic’s assessment of the collectibility of commercial mortgage loans. Changing vacancies and rents are incorporated into the analysis that Global Atlantic performs to measure the allowance for credit losses. In addition, Global Atlantic continuously monitors its commercial mortgage loan portfolio to identify risk. Areas of emphasis are properties that have exposure to specific geographic events or have deteriorating credit.

As of June 30, 2025, the payment status of 98% of the residential mortgage loan portfolio is current, and approximately $142.8 million is 90 days or more past due or in process of foreclosure (representing 1% of the total residential mortgage portfolio). As of December 31, 2024, the payment status of 97% of the residential mortgage loan portfolio was current and approximately $275.1 million were 90 days or more past due or in process of foreclosure (representing 1% of the total residential mortgage portfolio).

The weighted average loan-to-value ratio for residential mortgage loans was 63% as of both June 30, 2025 and December 31, 2024.

Global Atlantic's residential mortgage loan portfolio primarily includes mortgage loans backed by single family rental properties, prime loans, and re-performing loans that were purchased at a discount after they were modified and returned to performing status. Global Atlantic has also extended financing to counterparties in the form of repurchase agreements secured by mortgage loans, including performing and non-performing mortgage loans.

Global Atlantic’s consumer loan portfolio is primarily comprised of home improvement loans, residential solar loans, student loans, and auto loans. As of June 30, 2025, 98% of the consumer loan portfolio is in current status and approximately $30.3 million is 90 days or more past due or in process of foreclosure (representing 1% of the total consumer loan portfolio).

Additional Information

To provide supplemental information to stockholders about the net assets of KKR on a segment basis, KKR’s book value was $31.3 billion as of June 30, 2025, which included cash and short-term investments of $7.1 billion. KKR's book value includes its net investment in Global Atlantic, investments in the Asset Management and Strategic Holdings segments, and the net impact of certain other assets and liabilities, including income taxes. KKR's book value excludes the net assets allocable to investors in KKR’s investment funds and other noncontrolling interest holders. From January 1, 2025 through June 30, 2025, the Asset Management segment transferred $1.1 billion of investments to the Insurance segment for which no gain or loss was recognized.

Reconciliations to GAAP Measures

Net Income (Loss) Attributable to KKR & Co. Inc. Common Stockholders


	Three Months Ended				Six Months Ended
	June 30, 2025		June 30, 2024		June 30, 2025		June 30, 2024
	($ in thousands)
Net Income (Loss) - KKR Common Stockholders (GAAP)	$	472,387	$	667,926	$	286,463	$	1,350,140
Preferred Stock Dividends	37,736		—		37,736		—
Net Income (Loss) Attributable to Noncontrolling Interests	844,341		325,310		1,714,763		736,946
Income Tax Expense (Benefit)	174,304		216,969		260,873		486,170
Income (Loss) Before Tax (GAAP)	$	1,528,768	$	1,210,205	$	2,299,835	$	2,573,256
Impact of Consolidation and Other	(879,614)		(151,775)		(1,896,965)		(343,294)

Preferred Stock Dividends	(37,736)		—		(37,736)		—
Income Taxes on Adjusted Earnings	(277,062)		(238,244)		(537,717)		(454,610)
Asset Management Adjustments:
Unrealized (Gains) Losses	257,754		(76,175)		637,091		(475,253)
Unrealized Carried Interest	(429,906)		(190,143)		(1,237,619)		(1,136,959)
Unrealized Carried Interest Compensation	343,769		153,003		989,939		910,455
Transaction-related and Non-operating Items	10,765		1,308		21,316		62,983
Equity-based Compensation	63,750		66,535		142,027		140,312
Equity-based Compensation - Performance based	86,512		83,050		171,111		163,618

Strategic Holdings Adjustments:
Unrealized (Gains) Losses	(64,304)		(344,709)		(385,712)		(417,966)
Insurance Adjustments:
(Gains) Losses from Investments	290,084		312,614		1,649,024		559,531
Non-Operating Changes in Policy Liabilities and Derivatives	140,458		106,465		227,089		180,328
Transaction-Related and Non-Operating Items	2,042		—		2,194		—
Equity-Based Compensation	23,371		35,323		44,063		64,389
Amortization of Acquired Intangibles	4,699		4,412		9,398		8,824

Adjusted Net Income	$	1,063,350	$	971,869	$	2,097,338	$	1,835,614
Interest Expense, Net	53,020		77,101		127,529		149,908
Preferred Stock Dividends	37,736		—		51,213		—
Net Income Attributable to Noncontrolling Interests	2,851		2,851		6,335		4,774
Income Taxes on Adjusted Earnings	277,062		238,244		537,717		454,610
Total Segment Earnings	$	1,434,019	$	1,290,065	$	2,820,132	$	2,444,906
Net Realized Performance Income	(109,314)		(122,839)		(197,303)		(200,837)
Net Realized Investment Income	(130,898)		(117,764)		(316,161)		(232,306)
Total Operating Earnings	$	1,193,807	$	1,049,462	$	2,306,668	$	2,011,763
Total Investing Earnings	240,212		240,603		513,464		433,143
Depreciation and Amortization	14,211		12,549		27,444		25,052
Adjusted EBITDA	$	1,448,230	$	1,302,614	$	2,847,576	$	2,469,958

KKR & Co. Inc. Stockholders' Equity - Common Stock


	As of
	June 30, 2025
	($ in thousands)
KKR & Co. Inc. Stockholders' Equity - Common Stock (GAAP)	$	25,675,825
Impact of Consolidation and Other	433,321
Exchangeable Securities	358,736
Accumulated Other Comprehensive Income (Loss) (AOCI) and Other (Insurance)	4,878,354
Accumulated Unrealized (Gains) Losses on Loans carried at Fair Value (Insurance)	(24,081)
KKR Book Value(1)	$	31,322,155

Cash and Cash Equivalents - Asset Management and Strategic Holdings


	As of
	June 30, 2025
	($ in thousands)
Cash and Cash Equivalents - Asset Management and Strategic Holdings (GAAP)	$	10,729,004
Impact of Consolidation and Other	(3,827,508)
Short-term Investments	182,345
Cash and Short-term Investments	$	7,083,841

Investments - Asset Management and Strategic Holdings


	As of
	June 30, 2025
	($ in thousands)
Investments - Asset Management and Strategic Holdings (GAAP)	$	115,427,392
Impact of Consolidation and Other	(105,884,975)
Short-term Investments	(182,345)
Investments - Asset Management Segment	$	9,360,072

(1)Book Value is a non-GAAP performance measure, which provides additional insight into the net assets of KKR presented on a basis that (i) excludes the net assets that are allocated to investors in KKR’s investment funds and other noncontrolling interest holders, (ii) includes the net assets that are attributable to certain securities exchangeable into shares of common stock of KKR & Co. Inc., (iii) includes the net investment in Global Atlantic, investments in the Asset Management and Strategic Holdings segments, and (iv) includes the net impact of certain other assets and liabilities, including the net impact of KKR's tax assets and liabilities as calculated under GAAP. Book Value excludes the dilutive impact of the conversion of any of KKR & Co. Inc.’s Series D Mandatory Convertible Preferred Stock. If all outstanding shares of the Series D Mandatory Convertible Preferred Stock were converted into KKR & Co. Inc. common stock as of June 30, 2025, our Book Value would have increased by $2.5 billion and our common stock outstanding would have increased by 21.4 million shares.

Liquidity

We manage our liquidity and capital requirements by (a) focusing on our cash flows before the consolidation of our funds and CFEs and the effect of changes in short term assets and liabilities, which we anticipate will be settled for cash within one year, and (b) seeking to maintain access to sufficient liquidity through various sources. The overall liquidity framework and cash management approach of our insurance business are also based on seeking to build an investment portfolio that is cash flow matched, providing cash inflows from insurance assets that meet our insurance companies' expected cash outflows to pay their liabilities. Our primary cash flow activities typically involve (i) generating cash flow from operations; (ii) generating income from investment activities, by investing in investments that generate yield (namely interest and dividends), as well as through the sale of investments and other assets; (iii) funding capital commitments that we have made to, and advancing capital to, our funds and CLOs; (iv) developing and funding new investment strategies, investment products, and other growth initiatives, including acquisitions of other investments, assets, and businesses; (v) underwriting and funding capital commitments in our capital markets business; (vi) distributing cash flow to our stockholders and any holders of our preferred stock, if any; and (vii) paying borrowings, interest payments, and repayments under credit agreements, our senior and subordinated notes, and other borrowing arrangements. See "—Liquidity," "—Liquidity Needs," and "—Dividends and Stock Repurchases."

See "Risk Factors" in our Annual Report and "—Business Environment" for more information on factors that may impact our business, financial performance, operating results, and valuations.

Sources of Liquidity

Our primary sources of liquidity consist of amounts received from: (i) our operating activities, including the fees earned from our funds, portfolio companies, and capital markets transactions; (ii) realizations on carried interest from our investment funds; (iii) interest and dividends from investments that generate yield, including our investments in CLOs; (iv) in our insurance business, cash inflows in respect of new premiums, policyholder deposits, reinsurance transactions, and funding agreements, including through memberships in FHLBs; (v) realizations on and sales of investments and other assets, including the transfers of investments or other assets for fund formations (including CLOs and other investment vehicles); and (vi) borrowings, including advances under our revolving credit facilities, debt offerings, repurchase agreements, and other borrowing arrangements. In addition, we may generate cash proceeds from issuances of our or our subsidiaries' equity securities.

Many of our investment funds like our private equity and real assets funds provide for carried interest. With respect to our carry-paying investment funds, carried interest is eligible to be distributed to the general partner of the fund only after all of the following are met: (i) a realization event has occurred (e.g., sale of a portfolio company, dividend, etc.); (ii) the vehicle has achieved positive overall investment returns since its inception, in excess of performance hurdles where applicable, and is accruing carried interest; and (iii) with respect to investments with a fair value below cost, cost has been returned to fund investors in an amount sufficient to reduce remaining cost to the investments' fair value. Even after all of the preceding conditions are met, the general partner of the fund may, in its sole discretion, decide to defer the distribution of carried interest to it to a later date. In addition, these funds generally include what is called a “clawback” provision, which provides that the general partner must return any carried interest that is paid in excess of what the general partner is entitled to receive at the end of the term of the fund, as discussed further below.

As of June 30, 2025, certain of our investment funds had met the first and second criteria, as described above, but did not meet the third criteria. In these cases, carried interest accrues on the consolidated statement of operations, but will not be distributed in cash to us as the general partner of an investment fund upon a realization event. For a fund that has a fair value above cost, overall, and is otherwise accruing carried interest, but has one or more investments where fair value is below cost, the shortfall between cost and fair value for such investments is referred to as a "netting hole." When netting holes are present, realized gains on individual investments that would otherwise allow the general partner to receive carried interest distributions are instead used to return invested capital to our funds' limited partners in an amount equal to the netting hole. Once netting holes have been filled with either (a) return of capital equal to the netting hole for those investments where fair value is below cost or (b) increases in the fair value of those investments where fair value is below cost, then realized carried interest will be distributed to the general partner upon a realization event. A fund that is in a position to pay cash carry refers to a fund for which carried interest is expected to be paid to the general partner upon the next material realization event, which includes funds with no netting holes as well as funds with a netting hole that is sufficiently small in size such that the next material realization event would be expected to result in the payment of carried interest. Strategic investor partnerships with fund investors may require netting across the various funds in which they invest, which may reduce the carried interest we otherwise would have earned if such fund investors were to have invested in our funds without the existence of the strategic investor partnership.

As of June 30, 2025, netting holes in excess of $50 million existed at North America Fund XI and Asian Fund III in the amounts of $441 million and $284 million, respectively. The remaining unrealized gains in each of these funds as of June 30, 2025 is in excess of these netting holes. In accordance with the criteria set forth above, other funds currently have and may in the future develop netting holes, and netting holes for those and other funds may otherwise increase or decrease in the future. If the investment fund has distributed carried interest, but subsequently does not have sufficient value to provide for the distribution of carried interest at the end of the life of the investment fund, the general partner is typically required to return previously distributed carried interest to the fund investors. Although our current and former employees who received distributions of carried interest subject to clawback are required to return them to KKR, it is KKR’s obligation to return carried interest subject to clawback to the fund investors. As of June 30, 2025, approximately $521 million of carried interest was subject to this clawback obligation, assuming that all applicable carry-paying funds and their alternative investment vehicles were liquidated at their June 30, 2025 fair values. As of June 30, 2025, Asian Fund II is the only investment fund with a clawback obligation in excess of $50 million. See Note 24 "Commitments and Contingencies—Contingent Repayment Guarantees" in our financial statements included elsewhere in this report for further information. See also the negative amounts included in the Carried Interest column in the table included in this Item 2 in “Asset Management—Private Equity” for further information on clawback obligations.

We have access to funding under various credit facilities, other borrowing arrangements and other sources of liquidity that we have entered into with major financial institutions or which we receive from the capital markets.

For a discussion of our debt obligations, including our debt securities, revolving credit agreements and loans, see Note 16 "Debt Obligations" in our financial statements.

Liquidity Needs

We expect that our primary liquidity needs will consist of cash required to meet various obligations, including, without limitation, to:

continue to support and grow our asset management business, including seeding new investment strategies, supporting capital commitments made by our investment vehicles to existing and future funds, co-investments and any net capital requirements of our capital markets companies and otherwise supporting the investment vehicles that we sponsor;
continue to support and grow our insurance business;
continue to support and grow our strategic holdings business;
grow and expand our businesses generally, including by acquiring or launching new, complementary, or adjacent businesses;
warehouse investments in portfolio companies or other investments for the benefit of one or more of our funds, accounts or CLOs or other investment vehicles pending the contribution of committed capital by the fund investors in such investment vehicles, and advancing capital to them for operational or other needs;
service debt obligations including the payment of obligations at maturity, on interest payment dates or upon redemption, as well as any contingent liabilities, including from litigation, that may give rise to future cash payments, including funding requirements to levered investment vehicles or structured transactions;
fund cash operating expenses and contingencies, including for litigation matters and guarantees;
pay corporate income taxes and other taxes;
pay policyholders and amounts in our insurance business related to investment, reinvestment, reinsurance, or funding agreement activity;
pay amounts that may become due under our tax receivable agreement;
pay cash dividends in accordance with our dividend policy for our common stock or the terms of our preferred stock, if any;
underwrite commitments, advance loan proceeds, and fund syndication commitments within our capital markets business;
post or return collateral in respect of derivative contracts;
acquire other assets (including businesses, investments, and other assets) for our businesses, some of which may be required to satisfy regulatory requirements for our capital markets business or risk retention requirements for CLOs (to the extent they may apply);
address capital needs of regulated subsidiaries as well as non-regulated subsidiaries; and
repurchase shares of our common stock or retire equity awards pursuant to the share repurchase program or repurchase or redeem other securities issued by us.

For a discussion of KKR's share repurchase program, see Note 22 "Equity" in our financial statements.

Capital Commitments

The agreements governing our active investment funds generally require the general partners of the funds to make minimum capital commitments to such funds, which generally range from 2% to 8% of a fund's total capital commitments at final closing, but may be greater for certain funds (i) where we are pursuing newer strategies, (ii) where third party investor demand is limited, and (iii) where a larger commitment is consistent with the asset allocation strategy in our Principal Activities business line, and in our Strategic Holdings segment.

As of June 30, 2025, KKR had unfunded commitments consisting of $10.5 billion to its investment funds and other investment vehicles across Private Equity, Real Assets, and Credit and Liquid Strategies business lines. These unfunded commitments include $3.0 billion of uncalled capital commitments to certain investment vehicles in connection with investments in the core private equity strategy. These unfunded commitments also include funding requirements to levered investment vehicles and structured transactions to fund or otherwise be liable for a portion of the vehicle's investment losses and/or to provide the vehicle with liquidity upon certain termination events.

In addition to these uncalled commitments and funding obligations to KKR's investment funds and investment vehicles, KKR has entered into contractual commitments primarily with respect to underwriting transactions, debt financing, revolving credit facilities, and equity syndications in our Capital Markets business line. As of June 30, 2025, these capital markets commitments amounted to $0.3 billion. Whether these amounts are actually funded, in whole or in part, depends on the contractual terms of such capital markets commitments, including the satisfaction or waiver of any conditions to closing or funding. From time to time, we fund these various capital markets commitments noted above in our capital markets business by drawing all or substantially all of our availability for borrowings under our available credit facilities available for our Capital Markets business line. We generally expect these borrowings by our capital markets business to be repaid promptly as these commitments are syndicated to third parties or otherwise fulfilled or terminated, although we may in some instances elect to retain a portion of the commitments for our own investment. Additionally, KKR's capital markets business has arrangements with third parties, which are expected to reduce KKR's risk under certain circumstances when underwriting certain debt transactions. As a result, our unfunded capital markets commitments as of June 30, 2025 have been reduced to reflect the amount expected to be funded by such third parties. As of June 30, 2025, KKR's capital markets business line has entered into such arrangements representing a total notional amount of $5.0 billion. For more information about our Capital Markets business line's risks, see "Risk Factors—Risks Related to Our Business—Our capital markets activities expose us to material risks" in our Annual report.

Tax Receivable Agreement

On May 30, 2022, KKR terminated the tax receivable agreement with KKR Holdings other than with respect to exchanges of KKR Holdings Units completed prior to such date. As of June 30, 2025, an undiscounted payable of $355.5 million has been recorded in due to affiliates in the financial statements representing management's best estimate of the amounts currently expected to be owed for certain exchanges of KKR Holdings Units that took place prior to the termination of the tax receivable agreement. As of June 30, 2025, $129.4 million of cumulative cash payments have been made under the tax receivable agreement since inception.

Dividends and Stock Repurchases

A dividend of $0.185 per share of our common stock has been declared and will be paid on August 26, 2025 to holders of record of our common stock as of the close of business on August 11, 2025.

A dividend of $0.78125 per share of Series D Mandatory Convertible Preferred Stock has been declared and set aside for payment on September 1, 2025 to holders of record of Series D Mandatory Convertible Preferred Stock as of the close of business on August 15, 2025.

When KKR & Co. Inc. receives distributions from KKR Group Partnership, holders of exchangeable securities receive their pro rata share of such distributions from KKR Group Partnership.

The declaration and payment of dividends to our common or preferred stockholders will be at the sole discretion of our Board of Directors, and our dividend policy may be changed at any time. We announced on February 4, 2025 that our current dividend policy will be to pay dividends to holders of our common stock in an annual aggregate amount of $0.74 per share (or a quarterly dividend of $0.185 per share) beginning with the dividend announced with the results for the three months ended March 31, 2025. The declaration of dividends is subject to the discretion of our Board of Directors based on a number of factors, including KKR’s future financial performance and other considerations that the Board of Directors deems relevant, and compliance with the terms of KKR & Co. Inc.'s certificate of incorporation and applicable law. For U.S. federal income tax purposes, any dividends we pay (including dividends on our preferred stock) generally will be treated as qualified dividend income for U.S. individual stockholders to the extent paid out of our current or accumulated earnings and profits, as determined for U.S. federal income tax purposes. There can be no assurance that future dividends will be made as intended or at all or that any particular dividend policy for our common stock or our preferred stock will be maintained. Furthermore, the declaration and payment of distributions by KKR Group Partnership and our other subsidiaries may also be subject to legal, contractual and regulatory restrictions, including restrictions contained in our debt agreements.

Since 2015, KKR has repurchased, or retired equity awards representing, a total of 94.0 million shares of common stock for $2.7 billion, which equates to an average price of $29.20 per share. For further information, see "Part II—Item 2—Unregistered Sales of Equity Securities and Use of Proceeds."

Contractual Obligations, Commitments and Contingencies

In the ordinary course of business, we and our consolidated funds and CFEs enter into contractual arrangements that may require future cash payments. Contractual arrangements include (1) commitments to fund the purchase of investments or other assets (including obligations to fund capital commitments as the general partner of our investment funds) or to fund collateral for derivative transactions or otherwise, (2) obligations arising under our senior notes, subordinated notes, and other indebtedness, (3) commitments by our capital markets business to underwrite transactions or to lend capital, (4) obligations arising under insurance policies written, (5) other contractual obligations, including servicing agreements with third-party administrators for insurance policy administration, and (6) commitments to fund the business, operations or investments of our subsidiaries. In addition, we may incur contingent liabilities for claims that may be made against us in the future. For more information about these contingent liabilities, please see Note 24 "Commitments and Contingencies" in our financial statements.

Off Balance Sheet Arrangements

We do not have any off-balance sheet financings or liabilities other than contractual commitments and other legal contingencies incurred in the normal course of our business.

Critical Accounting Policies and Estimates

The preparation of our financial statements in accordance with GAAP requires our management to make estimates and judgments that affect the reported amounts of assets and liabilities, the recognition and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues, expenses, investment income (loss) and income taxes during the reporting periods. Such estimates include but are not limited to (i) the valuation of investments and financial instruments, (ii) the determination of the income tax provision, (iii) the impairment of goodwill and intangible assets, (iv) the impairment of available-for-sale investments, (v) the valuation of insurance policy liabilities, including market risk benefits, (vi) the valuation of embedded derivatives in policy liabilities and funds withheld, (vii) the determination of the allowance for loan losses, and (viii) amortization of deferred revenues and expenses associated with the insurance business. Our management bases these estimates and judgments on available information, historical experience and other assumptions that we believe are reasonable under the circumstances. However, these estimates, judgments and assumptions are often subjective and may be impacted negatively based on changing circumstances or changes in our analyses. If actual amounts are ultimately different from those estimated, judged or assumed, revisions are included in the financial statements in the period in which the actual amounts become known. We believe our critical accounting policies could potentially produce materially different results if we were to change underlying estimates, judgments or assumptions.

For a further discussion about our critical accounting policies, see Note 2 "Summary of Significant Accounting Policies" in our financial statements included in this report.

Basis of Accounting

We consolidate the financial results of KKR Group Partnership and its consolidated entities, which include the accounts of our investment advisers, broker-dealers, Global Atlantic’s insurance companies, the general partners of certain unconsolidated investment funds, general partners of consolidated investment funds and their respective consolidated investment funds, and certain other entities including CFEs.

When an entity is consolidated, we reflect the accounts of the consolidated entity, including its assets, liabilities, revenues, expenses, investment income, cash flows, and other amounts, on a gross basis. While the consolidation of an investment fund or entity does not have an effect on the amounts of Net Income Attributable to KKR or KKR's stockholders' equity that KKR reports, the consolidation does significantly impact the financial statement presentation under GAAP. This is due to the fact that the accounts of the consolidated entities are reflected on a gross basis while the allocable share of those amounts that are attributable to third parties are reflected as single line items. The single line items in which the accounts attributable to third parties are recorded are presented as noncontrolling interests on the consolidated statements of financial condition and net income (loss) attributable to noncontrolling interests on the consolidated statements of operations.

The presentations in the consolidated statement of financial condition and consolidated statement of operations reflect the significant industry diversification of KKR by its acquisition of Global Atlantic. Global Atlantic operates an insurance business, and KKR operates an asset management business, which manages the operations of the newly-formed Strategic Holdings segment (see Note 21 "Segment Reporting") in our financial statements included in this report, each of which possess distinct characteristics. As a result, KKR developed a two-tiered approach for the financial statements presentation, where Global Atlantic's insurance operations are presented separately from KKR's asset management business. KKR believes that these separate presentations provide a more informative view of the consolidated financial position and results of operations than traditional aggregated presentations and that reporting Global Atlantic’s insurance operations separately is appropriate given, among other factors, the relative significance of Global Atlantic’s policy liabilities, which are not obligations of KKR (other than the insurance companies that issued them). If a traditional aggregate presentation were to be used, KKR would expect to eliminate or combine several identical or similar captions, which would condense the presentations, but would also reduce the level of information presented. KKR also believes that using a traditional aggregate presentation would result in no new line items compared to the two-tier presentation included in the financial statements in this report.

In the ordinary course of business, KKR’s Asset Management, Strategic Holdings, and Insurance businesses enter into transactions with each other, which may include transactions pursuant to their investment management agreements and financing arrangements. The borrowings from these financing arrangements are non-recourse to KKR beyond the assets pledged to support such borrowings. All the investment management and financing arrangements amongst KKR segments are eliminated in consolidation.

All intercompany transactions and balances have been eliminated.

Consolidation

KKR consolidates all entities that it controls either through a majority voting interest or as the primary beneficiary of variable interest entities (“VIEs”). The following discussion is intended to provide supplemental information about how the application of consolidation principles impact our financial results, and management’s process for implementing those principles including areas of significant judgment. For a detailed description of our accounting policy on consolidation, see Note 2 "Summary of Significant Accounting Policies" in our financial statements included in this report.

As part of its consolidation procedures, KKR evaluates: (1) whether it holds a variable interest in an entity, (2) whether the entity is a VIE, and (3) whether the KKR’s involvement would make it the primary beneficiary. The determination that KKR holds a controlling financial interest in an investment vehicle significantly changes the presentation of our consolidated financial statements.

The assessment of whether we consolidate an investment vehicle we manage requires the application of significant judgment. These judgments are applied both at the time we become involved with an investment vehicle and on an ongoing basis and include, but are not limited to:

Determining whether our management fees, carried interests, or incentive fees represent variable interests - We make judgments as to whether the fees we earn are commensurate with the level of effort required for those fees and at market rates. In making this judgment, we consider, among other things, the extent of third party investment in the entity and the terms of any other interests we hold in the VIE.
Determining whether a legal entity qualifies as a VIE - For those entities where KKR holds a variable interest, management determines whether each of these entities qualifies as a VIE and, if so, whether or not KKR is the primary beneficiary. The assessment of whether the entity is a VIE is generally performed qualitatively, which requires judgment. These judgments include: (a) determining whether the equity investment at risk is sufficient to permit the entity to finance its activities without additional subordinated financial support, (b) evaluating whether the equity holders, as a group, can make decisions that have a significant effect on the economic performance of the entity, (c) determining whether two or more parties’ equity interests should be aggregated, and (d) determining whether the equity investors have proportionate voting rights to their obligations to absorb losses or rights to receive returns from an entity. Entities that do not qualify as VIEs are generally assessed for consolidation as voting interest entities. Under the voting interest entity model, KKR consolidates those entities it controls through a majority voting interest.
Concluding whether KKR has an obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE - As there is no explicit threshold in GAAP to define “potentially significant,” we must apply judgment and evaluate both quantitative and qualitative factors to conclude whether this threshold is met.

Changes to these judgments could result in a change in the consolidation conclusion for a legal entity.

Fair Value Measurements

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions.

GAAP establishes a hierarchical disclosure framework which prioritizes and ranks the level of market price observability used in measuring financial instruments at fair value. Investments and other financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs used in the determination of fair values, as follows:

Level I

Pricing inputs are unadjusted, quoted prices in active markets for identical assets or liabilities as of the measurement date.

Level II

Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the measurement date, and fair value is determined through the use of models or other valuation methodologies.

Level III

Pricing inputs are unobservable for the financial instruments and include situations where there is little, if any, market activity for the financial instrument. The inputs into the determination of fair value require significant management judgment or estimation. The valuation of our Level III investments at June 30, 2025 represents management's best estimate of the amounts that we would anticipate realizing on the sale of these investments in an orderly transaction at such date.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Level III Valuation Methodologies

Our investments and financial instruments are impacted by various economic conditions and events outside of our control that are difficult to quantify or predict, which may have a significant impact on the valuation of our investments and, therefore, on the carried interest and investment income we realize. Additionally, a change in interest rates could have a significant impact on valuations.

Across the total Level III private equity investment portfolio (including core private equity investments), and including investments in both consolidated and unconsolidated investment funds, approximately 60% of the fair value is derived from investments that are valued based exactly 50% on market comparables and 50% on a discounted cash flow analysis. Less than 5% of the fair value of this Level III private equity investment portfolio (including core private equity investments) is derived from investments that are valued either based 100% on market comparables or 100% on a discounted cash flow analysis. As of June 30, 2025, the overall weights ascribed to the market comparables methodology, the discounted cash flow methodology, and a methodology based on pending sales for this portfolio of Level III private equity investments were 39%, 56%, and 5%, respectively.

There is inherent uncertainty involved in the valuation of Level III investments, and there is no assurance that, upon liquidation, KKR will realize the values reflected in our valuations. Our valuations may differ significantly from the values that would have been used had an active market for the investments existed, and it is reasonably possible that the difference could be material. See "Risk Factors" in our Annual Report and "—Business Environment" for more information on factors that may impact our business, financial performance, operating results, and valuations.

Key unobservable inputs that have a significant impact on our Level III valuations as described above are included in Note 9 "Fair Value Measurements" in our financial statements.

Level III Valuation Process

The valuation process involved for Level III measurements is completed on a quarterly basis and is designed to subject the valuation of Level III investments to an appropriate level of consistency, oversight, and review.

For private equity and real asset investments classified as Level III, investment professionals prepare preliminary valuations based on their evaluation of financial and operating data, company specific developments, market valuations of comparable companies, and other factors. KKR begins its procedures to determine the fair values of its Level III assets approximately one month prior to the end of a reporting period, and KKR follows additional procedures to ensure that its determinations of fair value for its Level III assets are appropriate as of the relevant reporting date. These preliminary valuations are reviewed by an independent valuation firm engaged by KKR to perform certain procedures in order to assess the reasonableness of KKR's valuations annually for all Level III private equity and real asset investments and quarterly for investments other than certain investments, which have values less than preset value thresholds and which in the aggregate comprise less than 1% of the total value of KKR's Level III private equity and real asset investments. The valuations of certain real asset investments are determined solely by independent valuation firms without the preparation of preliminary valuations by our investment professionals, and instead such independent valuation firms rely on valuation information available to it as a broker or valuation firm. For credit investments, an independent valuation firm is generally engaged by KKR to assist with the valuations of most investments classified as Level III. The valuation firm either provides a value, provides a valuation range from which KKR's investment professionals select a point in the range to determine the valuation, or performs certain procedures in order to assess the reasonableness of KKR's valuations. After reflecting any input from the independent valuation firm, the valuation proposals are submitted for review and approval by KKR's valuation committees. As of June 30, 2025, less than 5% of the total value of our Level III credit investments were not valued with the engagement of an independent valuation firm.

For Level III investments in Asset Management and Strategic Holdings, KKR has a Global Valuation Committee that is responsible for coordinating and implementing the firm's valuation process to ensure consistency in the application of valuation principles across portfolio investments and between periods. The Global Valuation Committee is assisted by the asset class-specific valuation committees that exist for private equity (including core equity investments and certain impact investments), growth equity (including certain impact investments), real estate, energy, infrastructure, and credit. The asset class-specific valuation committees are responsible for the review and approval of all preliminary Level III valuations in their respective asset classes on a quarterly basis. The members of these valuation committees are comprised of investment professionals, including the heads of each respective strategy, and professionals from business operations functions such as legal, compliance, and finance, who are not primarily responsible for the management of the investments. All Level III valuations for investments in Asset Management and Strategic Holdings are also subject to approval by the Global Valuation Committee, which is comprised of senior employees including investment professionals and professionals from business operations functions, and includes KKR's Chief Financial Officer, Chief Operating Officer, Chief Legal Officer and General Counsel, and Chief Compliance Officer. Once Level III valuations are approved by the Global Valuation Committee, a presentation of such valuations is provided to the Audit Committee of the Board of Directors of KKR & Co. Inc. and then to the Board of Directors.

Level III investments held by Global Atlantic are valued using either pricing services, broker-dealers, third-party asset managers, or internal models. Global Atlantic's valuation committee performs a quantitative and qualitative analysis over all pricing sources used to verify that it represents a reasonable estimate of fair value. As of June 30, 2025, less than 5% of the total value of Global Atlantic's Level III investments were not valued with the engagement of an independent valuation firm. Once Level III valuations are approved by the Global Atlantic Valuation Committee, these valuations are presented to the Global Valuation Committee, and then a presentation of such valuations is provided to the Audit Committee of the Board of Directors of KKR & Co. Inc. and then to the Board of Directors.

As of June 30, 2025, upon completion by, where applicable, independent valuation firms of certain limited procedures requested to be performed by them on certain Level III investments, the independent valuation firms concluded that the fair values, as determined by KKR (including Global Atlantic), of those investments reviewed by them were reasonable. The limited procedures did not involve an audit, review, compilation or any other form of examination or attestation under generally accepted auditing standards and were not conducted on all Level III investments. We are responsible for determining the fair value of investments in good faith, and the limited procedures performed by an independent valuation firm are supplementary to the inquiries and procedures that we are required to undertake to determine the fair value of the commensurate investments.

As described above, Level II and Level III investments were valued using internal models with significant unobservable inputs, and our determinations of the fair values of these investments may differ materially from the values that would have resulted if readily observable inputs had existed. Additional external factors may cause those values, and the values of investments for which readily observable inputs exist, to increase or decrease over time, which may create volatility in our earnings and the amounts of assets and stockholders' equity that we report from time to time.

Changes in the fair value of investments impacts the amount of carried interest that is recognized as well as the amount of investment income that is recognized for investments held directly in Asset Management, Strategic Holdings, and through our consolidated funds as described below. We estimate that an immediate 10% decrease in the fair value of investments held directly and through consolidated investment funds generally would result in a commensurate change in the amount of net gains (losses) from investment activities for investments held directly and through investment funds and a more significant impact to the amount of carried interest recognized, regardless of whether the investment was valued using observable market prices or management estimates with significant unobservable pricing inputs. With respect to consolidated investment funds, the impact that the consequential decrease in investment income would have on net income attributable to KKR would generally be significantly less than the amount described above, given that a majority of the change in fair value of our consolidated funds would be attributable to noncontrolling interests and therefore we are only impacted to the extent of our carried interest and our ownership in the consolidated investment funds and investment vehicles. With respect to Insurance, a decrease in investment income for certain assets where investment gains and losses are recognized through the statement of operations would impact KKR only to the extent of our economic ownership interest in Global Atlantic.

As of June 30, 2025, there were no investments (including in our Strategic Holdings segment) which represented greater than 5% of total investments on a GAAP basis. Our investment income on a GAAP basis and our asset management segment assets can be impacted by volatility in the public markets. See "Risk Factors" in our Annual Report and "—Business Environment" for a discussion of factors that may impact the valuations of our investments, financial results, operating results, and valuations, and "—Segment Balance Sheet Measures" for additional information regarding our largest holdings on a segment basis.

Business Combinations

KKR accounts for business combinations using the acquisition method of accounting, under which the purchase price of the acquisition is allocated to the assets acquired and liabilities assumed using the fair values determined by management as of the acquisition date.

Management’s determination of fair value of assets acquired and liabilities assumed at the acquisition date is based on the best information available in the circumstances and may incorporate management’s own assumptions and involve a significant degree of judgment. We use our best estimates and assumptions to accurately assign fair value to the tangible and identifiable intangible assets acquired and liabilities assumed at the acquisition date as well as the useful lives of those acquired intangible assets. Examples of critical estimates in valuing certain of the intangible assets we have acquired include, but are not limited to, future expected cash inflows and outflows, future fundraising assumptions, expected useful life, discount rates, and income tax rates. Our estimates for future cash flows are based on historical data, various internal estimates and certain external sources, and are based on assumptions that are consistent with the plans and estimates we are using to manage the underlying assets acquired. We estimate the useful lives of the intangible assets based on the expected period over which we anticipate generating economic benefit from the asset. We base our estimates on assumptions we believe to be reasonable but that are unpredictable and inherently uncertain. Unanticipated events and circumstances may occur that could affect the accuracy or validity of such assumptions, estimates or actual result.

Income Taxes

Significant judgment is required in estimating the provision for (benefit from) income taxes, current and deferred tax balances (including valuation allowance), accrued interest or penalties, and uncertain tax positions. In evaluating these judgments, we consider, among other items, projections of taxable income (including the character of such income), beginning with historic results and incorporating assumptions of the amount of future pretax operating income. These assumptions about future taxable income require significant judgment and are consistent with the plans and estimates that KKR uses to manage its business. Revisions in estimates or actual costs of a tax assessment may ultimately be materially different from the recorded accruals and unrecognized tax benefits, if any. Please see Note 18 "Income Taxes" in our financial statements in this report for further details.

Critical Accounting Policies and Estimates - Asset Management and Strategic Holdings

Revenues

Fees and Other

Fees and other consist primarily of (i) management and incentive fees from providing investment management services to unconsolidated funds, CLOs, other investment vehicles, and separately managed accounts; (ii) transaction fees earned in connection with successful investment transactions and from capital markets activities; (iii) monitoring fees from providing services to portfolio companies; (iv) expense reimbursements from certain investment funds and portfolio companies; and (v) consulting fees. These fees are based on the contractual terms of the governing agreements and are recognized when earned, which coincides with the period during which the related services are performed and in the case of transaction fees, upon closing of the transaction. Monitoring fees may provide for a termination payment following an initial public offering or change of control. These termination payments are recognized in the period when the related transaction closes.

Transaction fee calculations and management fee calculations based on committed capital or invested capital typically do not require discretion and therefore do not require the use of significant estimates or judgments. Management fee calculations based on net asset value depend on the fair value of the underlying investments within the investment vehicles. Estimates and assumptions are made when determining the fair value of the underlying investments within the funds and could vary depending on the valuation methodology that is used as well as economic conditions.

Capital Allocation-Based Income (Loss)

Capital allocation-based income (loss) is earned from those arrangements whereby KKR serves as general partner and includes income or loss from KKR's capital interest as well as "carried interest" which entitles KKR to a disproportionate allocation of investment income or loss from an investment fund's limited partners.

Carried interest is recognized upon appreciation of the funds’ investment values above certain return hurdles set forth in their partnership agreement. KKR recognizes revenues attributable to capital allocation-based income based upon the amount that would be due pursuant to the fund partnership agreement at each period end as if the funds were terminated at that date. Accordingly, the amount recognized reflects KKR’s share of the gains and losses of the associated funds’ underlying investments measured at their then-current fair values relative to the fair values as of the end of the prior period. Because of the inherent uncertainty in measuring the fair value of investments in the absence of observable market prices as previously discussed, these estimated values may differ significantly from the values that would have been used had a ready market for the investments existed, and it is reasonably possible that the difference could be material.

Expenses

Compensation and Benefits

Compensation and Benefits expense includes (i) base cash compensation consisting of salaries and wages, (ii) benefits, (iii) carry pool allocations, (iv) equity-based compensation, and (v) discretionary cash bonuses.

To supplement base cash compensation, benefits, carry pool allocations, and equity-based compensation, we typically pay discretionary cash bonuses, which are included in Compensation and Benefits expense in the consolidated statements of operations, based principally on the level of (i) management fees and other fee revenues (including incentive fees), (ii) realized carried interest, and (iii) realized investment income earned during the year. The amounts paid as discretionary cash bonuses, if any, are at our sole discretion and vary from individual to individual and from period to period, including having no cash bonus. We accrue discretionary cash bonuses when payment becomes probable and reasonably estimable which is generally in the period when we make the decision to pay discretionary cash bonuses and is based upon a number of factors, including the recognition of fee revenues, realized carried interest, realized investment income, and other factors determined during the year.

Beginning in 2021, we expect to pay our employees by assigning a percentage range to each component of asset management segment revenues. Prior to January 1, 2024, based on the current components and blend of our asset management segment revenues on an annual basis, we expected to use approximately: (i) 20‐25% of fee related revenues, (ii) 60‐70% of realized carried interest and incentive fees not included in fee related performance revenues or earned from our hedge fund partnerships, and (iii) 10‐20% of realized investment income and hedge fund partnership incentive fees, to pay our asset management employees. Beginning in January 2024, we expect to use approximately: (i) 15%-20% of fee related revenues, (ii) 70%-80% of realized carried interest and incentive fees not included in fee related performance revenues or earned from our hedge fund partnerships, and (iii) 10%-20% of realized investment income and hedge fund partnership incentive fees, to pay our asset management employees. Because these ranges are applied to applicable asset management segment revenue components independently, and on an annual basis, the amount paid as a percentage of total asset management segment revenue will vary and will, for example, likely be higher in a period with relatively higher realized carried interest and lower in a period with relatively lower realized carried interest. We decide whether to pay a discretionary cash bonus and determine the percentage of applicable revenue components to pay compensation only upon the occurrence of the realization event. There is no contractual or other binding obligation that requires us to pay a discretionary cash bonus to the asset management employees, except in limited circumstances.

Carry Pool Allocation

With respect to our funds that provide for carried interest, we allocate a portion of the realized and unrealized carried interest that we earn to Associates Holdings, which we refer to as the carry pool, from which our asset management employees and certain other carry pool participants are eligible to receive a carried interest allocation. The allocation is determined based upon a fixed arrangement between Associates Holdings and us, and we do not exercise discretion on whether to make an allocation to the carry pool upon a realization event. We refer to the portion of carried interest that we allocate to the carry pool as the carry pool percentage.

As of December 31, 2023, the carry pool percentage was fixed at 40%, 43%, or 65% by investment fund, depending on the fund’s vintage. For funds that closed after December 31, 2020 but before December 31, 2023, the carry pool percentage was fixed at 65%. For funds that closed after June 30, 2017 but before December 31, 2020, the carry pool percentage was fixed at 43%, and the carry pool percentage was fixed at 40% for older funds that contributed to KKR's carry pool. Effective January 2, 2024, KKR is authorized to apply a carry pool percentage in excess of these fixed percentages of up to 80% for all funds.

This increase to the carry pool percentage was approved by a majority of KKR's independent directors, and the carry pool percentage may not be increased above 80% without the further approval of a majority of KKR's independent directors. For funds that closed after December 31, 2023, the carry pool percentage is fixed at 80%. For funds that closed prior to December 31, 2023, the carry pool percentage is calculated at a fixed percentage of 40%, 43%, or 65% (depending on the fund’s vintage) for carried interest realized up to a high water mark, which was established based on the unrealized carried interest balance that existed on January 2, 2024, plus an additional percentage amount up to 80% based on a formulaic allocation, only if the unrealized carried interest balance at any period end exceeds the high water mark. This imposes a limitation of the carry pool allocation for such funds based on the amount of cumulative unrealized carried interest income earned subsequent to December 31, 2023.

For funds that closed before December 31, 2023, if the cumulative carried interest subsequent to December 31, 2023 is not sufficient to fund this formulaic allocation, the allocation of earnings reverts to the carry pool percentage in effect before this modification. As such, upon modification of the carry pool percentage effective on January 2, 2024, the cumulative unrealized carried interest was not sufficient to fund the additional formulaic allocation percentage in excess of the pre-existing 40%, 43%, and 65% carry pool percentages, and therefore no incremental expense was recognized as of such date. The carry pool percentage applicable for all funds that closed prior to December 31, 2023 will not be less than their applicable carry pool percentages of 40%, 43%, or 65% prior to December 31, 2023, and will not be more than 80%. The intent of this modification is that for all funds that closed prior to January 2, 2024, upon the final liquidation of each fund, realized carried interest distributed will equal the historical fund carry pool allocations up to the high water mark and only distributions of realized carried interest in excess of the high water mark will be distributed at 80 percent if and only if the unrealized carried interest balance at any period end exceeds the high water mark. Under no circumstance would a distribution of carried interest exceed 80% of the total allocable carried interest at any time.

KKR accounts for the carry pool as a compensatory profit-sharing arrangement in Accrued Expenses and Other Liabilities within the accompanying consolidated statements of financial condition in conjunction with the related carried interest income and it is recorded as compensation expense. The liability that is recorded in each period reflects the legal entitlement of Associates Holdings at each point in time should the total unrealized carried interest be realized at the value recorded at each reporting date. Upon a reversal of carried interest income, the related carry pool allocation, if any, is also reversed. Accordingly, such compensation expense is subject to both positive and negative adjustments.

On the Sunset Date (which will not be later than December 31, 2026), KKR will acquire control of Associates Holdings and will commence making decisions regarding the allocation of the carry proceeds pursuant to the limited partnership agreement of Associates Holdings. Until the Sunset Date, our Co-Founders will continue to make decisions regarding the allocation of the carry proceeds to themselves and others, pursuant to the limited partnership agreement of Associates Holdings, provided that any allocation of carry proceeds to the Co-Founders will be on a percentage basis consistent with past practice. For additional information about the Sunset Date and the Reorganization Agreement, see Note 1 "Organization" in our financial statements included in this report.

Equity-based Compensation

In addition to the cash-based compensation and carry pool allocations as described above, employees receive equity awards under our Equity Incentive Plans, most of which are subject to service-based vesting typically over a three to five-year period from the date of grant, and some of which are also subject to the achievement of market-based conditions. Certain of these awards are subject to post-vesting transfer restrictions and minimum retained ownership requirements.

Compensation expense relating to the issuance of equity-based awards is measured at fair value on the grant date. In determining the aggregate fair value of any award grants, we make judgments as to the grant-date fair value, particularly for certain restricted units with a vesting condition based upon market conditions, whose grant date fair values are based on a probability distributed Monte-Carlo simulation. See Note 19 "Equity Based Compensation,” in our financial statements included in this report for further discussion and activity of these awards.

Investment Income (Loss) -Net Gains (Losses) from Investment Activities

Net gains (losses) from investment activities consist of realized and unrealized gains and losses arising from our investment activities as well as income earned from certain equity method investments. Fluctuations in net gains (losses) from investment activities between reporting periods is driven primarily by changes in the fair value of our investment portfolio as well as the realization of investments. The fair value of, as well as the ability to recognize gains from, our investments is significantly impacted by the global financial markets, which, in turn, affects the net gains (losses) from investment activities recognized in any given period. Upon the disposition of an investment, previously recognized unrealized gains and losses are reversed and an offsetting realized gain or loss is recognized in the current period. Since our investments are carried at fair value, fluctuations between periods could be significant due to changes to the inputs to our valuation process over time. For a further discussion of our fair value measurements and fair value of investments, see above "—Critical Accounting Policies and Estimates—Fair Value Measurements."

Critical Accounting Policies and Estimates – Insurance

Policy Liabilities

Policy liabilities, or collectively, “reserves,” are the portion of past premiums or assessments received that are set aside to meet future policy and contract obligations as they become due. Interest accrues on the reserves and on future premiums, which may also be available to pay for future obligations. Global Atlantic establishes reserves to pay future policy benefits, claims, and certain expenses for its life policies and annuity contracts.

Global Atlantic's reserves are estimated based on models that include many actuarial assumptions and projections. These assumptions and projections, which are inherently uncertain, involve significant judgment, including assumptions as to the levels and/or timing of premiums, benefits, claims, expenses, interest credits, investment results (including equity market returns), mortality, longevity, and persistency.

The assumptions on which reserves are based are intended to represent an estimation of experience for the period that policy benefits are payable. Global Atlantic reviews the adequacy of its reserves and the assumptions underlying those reserves at least annually. Global Atlantic cannot, however, determine with precision the amount or the timing of actual benefit payments. If actual experience is better than or equal to the assumptions, then reserves would be adequate to provide for future benefits and expenses. If experience is worse than the assumptions, additional reserves may be required to meet future policy and contract obligations. This would result in a charge to Global Atlantic's net income during the period in which excess benefits are paid or an increase in reserves occurs.

For a majority of Global Atlantic's in-force policies, including its interest-sensitive life policies and most annuity contracts, the base policy reserve is equal to the account value. For these products, the account value represents Global Atlantic's obligation to repay to the policyholder the amounts held with Global Atlantic on deposit. However, there are several significant blocks of business where policy reserves, in addition to the account value, are explicitly calculated, including variable annuities, fixed-indexed annuities, interest-sensitive life products (including those with secondary guarantees), and preneed policies.

Market Risk Benefits

Market risk benefits are contracts or contract features that both provide protection to the policyholder from other-than-nominal capital market risk and expose Global Atlantic to other-than-nominal capital market risk. Market risk benefits include certain contract features on fixed annuity and variable annuity products, including minimum guarantees to policyholders, such as guaranteed minimum death benefits ("GMDBs"), guaranteed minimum withdrawal benefits ("GMWBs"), and long-term care benefits (which are capped at the return of account value plus one or two times the account value).

Some of Global Atlantic's variable annuity and fixed-indexed annuity contracts contain a GMDB feature that provides a guarantee that the benefit received at death will be no less than a prescribed minimum amount, even if the account balance is reduced to zero. This amount is based on either the net deposits paid into the contract, the net deposits accumulated at a specified rate, the highest historical account value on a contract anniversary, or sometimes a combination of these values. If the GMDB is higher than the current account value at the time of death, Global Atlantic incurs a cost equal to the difference.

Global Atlantic issues fixed-indexed annuity and variable annuity contracts with a guaranteed minimum withdrawal feature. GMWB are an optional benefit where the contract owner is entitled to withdraw a maximum amount of their benefit base each year.

Once exercised, living benefit features provide annuity policyholders with a minimum guaranteed stream of income for life. A policyholder’s annual income benefit is generally based on an annual withdrawal percentage multiplied by the benefit base. The benefit base is defined in the policy and is generally the initial premium, reduced by any partial withdrawals and increased by a defined percentage, formula, or index credits. Any living benefit payments are first deducted from the account value. Global Atlantic is responsible for paying any excess guaranteed living benefits still owed after the account value has reached zero.

The ultimate cost of these benefits will depend on the level of market returns and the level of contractual guarantees, as well as policyholder behavior, including surrenders, withdrawals, and benefit utilization. For Global Atlantic's fixed-indexed annuity products, costs also include certain non-guaranteed terms that impact the ultimate cost, such as caps on crediting rates that Global Atlantic can, in its discretion, reset annually.

See Note 17 “Policy Liabilities” in our financial statements for additional information.

As of June 30, 2025, the net market risk liability balance totaled $1.2 billion. As of June 30, 2025, the liability balances for market risk benefits were $990.3 million for fixed-indexed annuities and $221.5 million for variable and other annuities. The increase (decrease) to the net market risk benefit liability balance as a result of hypothetical changes in interest rates, instrument-specific credit risk, equity market prices, expected mortality, and expected surrenders are summarized in the table below. This sensitivity considers the direct effect of such changes only and not changes in any other assumptions used in or items considered in the measurement of such balances.


	As of June 30, 2025
	Fixed-Indexed Annuity		Other
($ in thousands)
Balance	$	990,343	$	221,526
Hypothetical Change:
+50 bps Interest Rates	(136,332)		(39,352)
-50 bps Interest Rates	151,516		43,601
+50 bps Instrument-specific Credit Risk	(139,522)		(20,558)
-50 bps Instrument-specific Credit Risk	154,672		22,436
+10% Equity Market Prices	(55,573)		(43,663)
-10% Equity Market Prices	40,346		48,941
95% of Expected Mortality	56,647		4,500
105% of Expected Mortality	(53,276)		(3,927)
90% of Expected Surrenders	24,176		1,724
110% of Expected Surrenders	(22,985)		(1,688)

Note: Hypothetical changes to the market risk benefits liability balance do not reflect the impact of related hedges.

Policy Liabilities Accounted for Under a Fair Value Option

Variable annuity contracts offered and assumed by Global Atlantic provide the contractholder with a GMDB. The liabilities for these benefits are included in policy liabilities. Global Atlantic elected the fair value option to measure the liability for certain of these variable annuity contracts valued at $273.2 million as of June 30, 2025. Fair value is calculated as the present value of the estimated death benefits less the present value of the GMDB fees, using 1,000 risk neutral scenarios. Global Atlantic discounts the cash flows using the U.S. Treasury rates plus an adjustment for instrument-specific credit risk in the consolidated statement of financial condition. The change in the liabilities for these benefits is included in policy benefits and claims in the consolidated statement of operations.

As of June 30, 2025, variable annuities accounted for using the fair value option totaled $273.2 million. The increase (decrease) in the reserves for variable annuities accounted for using the fair value option as a result of hypothetical changes in interest rates, instrument-specific credit risk, equity market prices, expected mortality, and expected surrenders are summarized in the table below. This sensitivity considers the direct effect of such changes only and not changes in any other assumptions used in or items considered in the measurement of such balances.


	As of June 30, 2025
	Variable Annuities
($ in thousands)
Balance	$	273,230
Hypothetical Change:
+50 bps Interest Rates	(17,914)
-50 bps Interest Rates	19,382
+50 bps Instrument-specific Credit Risk	(11,088)
-50 bps Instrument-specific Credit Risk	11,479
+10% Equity Market Prices	(14,411)
-10% Equity Market Prices	17,053
95% of Expected Mortality	(4,877)
105% of Expected Mortality	4,663
90% of Expected Surrenders	213
110% of Expected Surrenders	(235)

Note: Hypothetical changes to the liability balances do not reflect the impact of related hedges.

Liability for Future Policyholder Benefits

A liability for future policy benefits, which is the present value of estimated future policy benefits to be paid to or on behalf of policyholders and certain related expenses less the present value of estimated future net premiums to be collected from policyholders, is accrued as premium revenue is recognized. The liability is estimated using current assumptions that include mortality, morbidity, lapses, and expenses. These current assumptions are based on judgments that consider Global Atlantic’s historical experience, industry data, and other factors, and are updated quarterly and the current period change in the liability is recognized as a separate component of benefit expense in the consolidated income statement.

As of June 30, 2025, the liability for future policy benefits totaled $11.9 billion, net of reinsurance, split between $10.3 billion associated with payout annuity products, and $1.6 billion of life and other insurance products (including assumed long-term care insurance where Global Atlantic retroceded mortality and morbidity risks to a third-party reinsurer). The increase (decrease) as a result of hypothetical changes in interest rates, credit spreads, expected mortality, and expected surrenders and lapses are summarized in the table below. This sensitivity considers the direct effect of such changes only and not changes in any other assumptions used in or items considered in the measurement of such balances.


	As of June 30, 2025
	Payout Annuities		Other
($ in thousands)
Balance	$	10,336,361	$	1,559,560
Hypothetical Change:
+50 bps Interest Rates	(182,537)		(356,438)
-50 bps Interest Rates	195,793		383,648
+50 bps Credit Spreads	(160,734)		(243,239)
-50 bps Credit Spreads	166,491		253,133
95% of Expected Mortality(1)	74,326		32,462
105% of Expected Mortality(1)	(70,652)		(30,905)
90% of Expected Surrenders/Lapses	—		(9,480)
110% of Expected Surrenders/Lapses	—		8,643

Note: Hypothetical changes to the liability for future policy benefits balance do not reflect the impact of related hedges.

(1)Includes decrements for terminations of disability insurance

Additional Liability for Annuitization, Death, or Other Insurance Benefits: No-Lapse Guarantees

Global Atlantic has in-force interest-sensitive life contracts where it provides a secondary guarantee to the policyholder. The policy can remain in-force, even if the base policy account value is zero, as long as contractual secondary guarantee requirements have been met. The primary risk to Global Atlantic is that the premium collected under these policies, together with the investment return Global Atlantic earns on that premium, is ultimately insufficient to pay the policyholder’s benefits and the expenses associated with issuing and administering these policies. Global Atlantic holds an additional reserve in connection with these guarantees.

The additional reserves related to interest-sensitive life products with secondary guarantees are calculated using methods similar to those described above under “—Critical Accounting Policies and Estimates – Insurance—Policy Liabilities—Market Risk Benefits.” The costs related to these secondary guarantees are recognized over the life of the contracts through the accrual and subsequent release of a reserve which is revalued each period. The reserve is calculated based on assessments, over a range of economic scenarios to incorporate the variability in the obligation that may occur under different environments. The change in the reserve is included in policy benefits and claims in the consolidated statements of operations.

As of June 30, 2025, the additional liability balance of primarily interest-sensitive life totaled $6.0 billion, net of reinsurance. The increase (decrease) to the additional liability balance, as a result of hypothetical changes in interest rates, equity market prices, annual equity growth, expected mortality, and expected surrenders are summarized in the table below. This sensitivity considers the direct effect of such changes only and not changes in any other assumptions used in or items considered in the measurement of the interest-sensitive life no-lapse guarantee liability balance.


	As of June 30, 2025
	Interest-Sensitive Life
($ in thousands)
Balance	$	6,022,092
Hypothetical Change:
+50 bps Interest Rates	1,600
-50 bps Interest Rates	(1,614)
+10% Equity Market Prices	(97)
-10% Equity Market Prices	1,281
1% Lower Annual Equity Growth	4,285
95% of Expected Mortality	(44,880)
105% of Expected Mortality	44,244
90% of Expected Surrenders	21,855
110% of Expected Surrenders	(21,466)

Note: Hypothetical changes to the interest-sensitive life additional liability for annuitization, death, or other insurance benefits balance do not reflect the impact of related hedges.

Embedded Derivatives in Policy Liabilities and Funds Withheld

Global Atlantic's fixed-indexed annuity, variable annuity, and indexed universal life products contain equity-indexed features, which are considered embedded derivatives and are required to be measured at fair value.

Global Atlantic calculates the embedded derivative as the present value of future projected benefits in excess of the projected guaranteed benefits, using an option budget as the indexed account value growth rate. In addition, the fair value of the embedded derivative is reduced to reflect instrument specific credit risk on Global Atlantic's obligation (that is, Global Atlantic's own credit risk).

Changes in interest rates, future index credits, instrument-specific credit risk, projected withdrawal and surrender activity, and mortality on fixed-indexed annuity and interest-sensitive life products can have a significant impact on the value of the embedded derivative.

Valuation of Embedded Derivatives – Fixed-Indexed Annuities

Fixed-indexed annuity contracts allow the policyholder to elect a fixed interest rate of return or a market indexed strategy where interest credited is based on the performance of an index, such as the S&P 500 Index, or other indexes. The market indexed strategy is an embedded derivative, similar to a call option. The fair value of the embedded derivative is computed as the present value of benefits attributable to the excess of the projected policy contract values over the projected minimum guaranteed contract values. The projections of policy contract values are based on assumptions for future policy growth, which include assumptions for expected index credits, future equity option costs, volatility, interest rates, and policyholder behavior. The projections of minimum guaranteed contract values include the same assumptions for policyholder behavior as are used to project policy contract values. The embedded derivative cash flows are discounted using a risk-free interest rate increased by instrument-specific credit risk tied to Global Atlantic's own credit rating.

Valuation of Embedded Derivatives – Interest-Sensitive Life Products

Interest-sensitive life products allow a policyholder’s account value to grow based on the performance of certain equity indexes, which results in an embedded derivative similar to a call option. The embedded derivative related to the index is bifurcated from the host contract and measured at fair value. The valuation of the embedded derivative is the present value of future projected benefits in excess of the projected guaranteed benefits, using the option budget as the indexed account value growth rate and the guaranteed interest rate as the guaranteed account value growth rate. Present values are based on discount rate curves determined at the valuation date or issue date as well as assumed lapse and mortality rates. The discount rate equals the forecast treasury rate increased by instrument-specific credit risk tied to Global Atlantic’s own credit rating. Changes in discount rates and other assumptions such as spreads and/or option budgets can have a substantial impact on the embedded derivative.

Valuation of Embedded Derivatives in Modified Coinsurance or Funds Withheld

Global Atlantic's reinsurance agreements include modified coinsurance and coinsurance with funds withheld arrangements that include terms that require payment by the ceding company of a principal amount plus a return that is based on a proportion of the ceding company’s return on a designated portfolio of assets. Because the return on the funds withheld receivable or payable is not clearly and closely related to the host insurance contract, these contracts are deemed to contain embedded derivatives, which are measured at fair value. Global Atlantic is exposed to both the interest rate and credit risk of the assets. Changes in discount rates and other assumptions can have a significant impact on this embedded derivative. The fair value of the embedded derivatives is included in the funds withheld receivable at interest and funds withheld payable at interest line items on our consolidated statement of financial condition. The change in the fair value of the embedded derivatives is recorded in net investment-related gains (losses) in the consolidated statement of operations.

As of June 30, 2025, the embedded derivative liability balance totaled $6.4 billion for fixed-indexed annuities, and $476.7 million for interest-sensitive life. The increase (decrease) to the embedded derivatives on fixed-indexed annuity and indexed universal life as a result of hypothetical changes in interest rates, credit spreads, and equity market prices are summarized in the table below. This sensitivity considers the direct effect of such changes only and not changes in any other assumptions used in or items considered in the measurement of such balances.


	As of June 30, 2025
	Fixed-Indexed Annuities		Interest Sensitive Life
($ in thousands)
Balance	$	6,420,201	$	476,654
Hypothetical Change:
+50 bps Interest Rates	(110,401)		(4,514)
-50 bps Interest Rates	115,506		4,704
+50 bps Credit Spreads	(134,730)		(4,514)
-50 bps Credit Spreads	139,794		4,704
+10% Equity Market Prices	695,109		51,305
-10% Equity Market Prices	(706,671)		(78,240)

Note: Hypothetical changes to the market risk benefits liability balance do not reflect the impact of related hedges.

As of June 30, 2025, the embedded derivative balance for modified coinsurance or funds withheld arrangements was a $2.7 billion net asset ($118.1 million in funds withheld receivables at interest, and $(2.6) billion in funds withheld payable at interest). The increase (decrease) to the embedded derivatives on fixed-indexed annuity and interest-sensitive life products as a result of hypothetical changes in interest rates and investment credit spreads are summarized in the table below. This sensitivity considers the direct effect of such changes only and not changes in any other assumptions used in or items considered in the measurement of such balances.


	As of June 30, 2025
	Embedded Derivative on Funds Withheld Receivable		Embedded Derivative on Funds Withheld Payable
($ in thousands)
Balance	$	118,072	$	(2,598,382)
Hypothetical Change:
+50 bps Interest Rates	(10,218)		(1,265,880)
-50 bps Interest Rates	14,489		1,340,085
+50 bps Investment Credit Spreads	(32,625)		(1,310,466)
-50 bps Investment Credit Spreads	32,625		1,384,671

Note: Hypothetical changes to the funds withheld receivable and payable embedded derivative balances do not reflect the impact of related hedges or trading assets which back the funds withheld at interest.

Recently Issued Accounting Pronouncements

For a full discussion of recently issued accounting pronouncements, see Note 2 "Summary of Significant Accounting Policies" in our financial statements included in this report.

Previous: Item 1. FINANCIAL STATEMENTS · Next: Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.