KKR

KYCO: Know Your Company

Reveal Profile

12 December 2025

1) Overview of the Company

KKR & Co. Inc. is a leading global investment firm founded in 1976 by Jerome Kohlberg Jr., Henry Kravis, and George Roberts, headquartered at 30 Hudson Yards in New York City. The company operates as a publicly traded entity on the New York Stock Exchange under the ticker KKR and is included in the S&P 500. As of December 31, 2024, KKR manages $723 billion in total assets under management across its diversified investment platform, with $585 billion in fee-paying assets under management.

The firm operates through two primary business segments: Asset Management and Insurance Business. The Asset Management segment encompasses private equity ($222 billion AUM), credit and liquid strategies ($315 billion AUM), infrastructure ($95 billion AUM), real estate ($85 billion AUM), and capital markets services. The Insurance Business segment operates through its wholly-owned subsidiary Global Atlantic Financial Group, providing retirement, life insurance, and reinsurance solutions with $212 billion in AUM.

KKR maintains a global presence with offices across 36 cities in 17 countries, including major financial centers in the Americas, Europe, Middle East, and Asia Pacific. The firm employs approximately 4,834 professionals as of 2024, including over 300 dedicated investment professionals across its private equity business and 140+ real estate investment professionals. The company’s investment approach focuses on thematic investing across sectors including technology, healthcare, infrastructure, and renewable energy, with particular emphasis on operational value creation through its KKR Capstone operating platform.

In 2021, KKR completed a significant leadership transition when Joseph Y. Bae and Scott C. Nuttall assumed the roles of Co-Chief Executive Officers, while founders Henry Kravis and George Roberts transitioned to Co-Executive Chairman positions. Recent strategic initiatives include a partnership with Capital Group announced in 2024 to expand access to private market investment opportunities through public-private investment solutions, and the full acquisition of Global Atlantic Financial Group in January 2024 for approximately $2.7 billion. The firm has maintained consistent growth momentum, raising $43 billion in new capital during the third quarter of 2024 and deploying $26 billion in investments during the same period.

2) History

KKR & Co. Inc. traces its origins to May 1, 1976, when Jerome Kohlberg Jr., Henry Kravis, and George Roberts founded the firm with an initial capital of $120,000. The three founding partners had previously collaborated at Bear Stearns, where they developed expertise in early leveraged buyout transactions. Their departure from Bear Stearns was prompted by the firm’s reluctance to establish a dedicated fund for LBO activities, leading the trio to create their own specialized investment banking firm focused exclusively on leveraged buyouts.

The firm’s early trajectory was marked by rapid growth and groundbreaking transactions that would define the modern private equity industry. KKR completed its first buyout with A.J. Industries in 1976, followed by three smaller acquisitions in early 1977 including U.S. Natural Resources and L.B. Foster. A pivotal moment came in 1978 with the $335 million leveraged buyout of Houdaille Industries, which established the precedent for taking publicly traded companies private and validated KKR’s innovative approach to corporate finance.

The 1980s represented KKR’s emergence as a dominant force in private equity, marked by a series of increasingly ambitious transactions. The firm completed the first billion-dollar buyout with Wometco Enterprises in 1984 for $842 million plus assumed debt of $170 million. This was followed by the acquisition of Beatrice Foods in 1985 for $6.2 billion, which at the time represented the largest LBO in history. The firm’s growing influence attracted institutional investors, with state public pension funds from Oregon, Washington, and Michigan investing in KKR’s private equity funds starting in 1982.

The landmark transaction that brought KKR to international prominence was the 1988 leveraged buyout of RJR Nabisco for $31.4 billion. This deal, which remained the largest LBO for 17 years, was chronicled in the book “Barbarians at the Gate” and later adapted into a television movie. However, this acquisition also presented significant challenges, as RJR struggled to meet return expectations and required multiple debt restructurings and an additional $1.7 billion equity injection by July 1990.

A significant internal development occurred in 1987 when co-founder Jerome Kohlberg departed the firm due to philosophical differences regarding the increasing scale and aggressive nature of leveraged buyouts. Kohlberg subsequently founded his own private equity firm, Kohlberg & Company, while Henry Kravis succeeded him as senior partner. The late 1980s and early 1990s brought additional challenges as the collapse of the junk bond market affected many LBOs and tested KKR’s investment strategy.

The firm demonstrated remarkable resilience and adaptability throughout the 1990s and 2000s, systematically diversifying its business model beyond traditional private equity. Key strategic expansions included the establishment of KKR Capstone in 2000, a dedicated operational value creation team, and entry into the credit market in 2004. Geographic expansion accelerated with KKR opening offices in Asia in 2005, specifically in Tokyo and Hong Kong, followed by the launch of its Capital Markets business in 2006.

KKR’s evolution into a modern, diversified investment firm culminated with several transformational milestones. The firm went public on the New York Stock Exchange in 2010, converted from a limited partnership to a corporation in 2018, and completed its acquisition of Global Atlantic Financial Group in 2021, creating a majority-owned insurance subsidiary. A planned leadership transition occurred in 2021 when Joseph Bae and Scott Nuttall assumed roles as Co-Chief Executive Officers, while founders Henry Kravis and George Roberts became Co-Executive Chairmen.

Recent strategic initiatives include the launch of the Green Portfolio Program in 2008 to optimize business performance through environmental improvements, the creation of employee resource groups in 2022, and the official inclusion in the S&P 500 in 2024. The firm has successfully navigated multiple economic cycles, from the dot-com crash of 2000 through the 2008 financial crisis to the COVID-19 pandemic, consistently adapting its investment approach while maintaining its position as a leading global alternative asset manager.

3) Key Executives

Joseph Y. Bae joined KKR in 1996 and serves as Co-Chief Executive Officer, having been promoted to this position in 2021 alongside Scott Nuttall. Prior to his current role, Bae served as Co-President and Co-Chief Operating Officer from 2017 to 2021 and has been a member of the board of directors since July 2017. He was the architect of KKR’s expansion in Asia, building one of the largest and most successful platforms in the market, and has presided over business building in the firm’s private markets businesses. Bae serves on the firm’s Global Inclusion and Diversity Council and is active in numerous non-profit educational and cultural institutions, including co-founding The Asian American Foundation, serving as a member of Harvard University’s Global Advisory Council, and as a board member of Lincoln Center.

Scott C. Nuttall joined KKR in 1996 and serves as Co-Chief Executive Officer alongside Joseph Bae, having been appointed to this position in 2021. He previously served as Co-President and Co-Chief Operating Officer from 2017 to 2021 and has been a member of the board of directors since July 2017. Nuttall was the architect of the firm’s major strategic development initiatives, including leading KKR’s public listing, developing the firm’s balance sheet strategy, overseeing the development of KKR’s public markets businesses in the credit and hedge fund space, and the creation of the firm’s capital markets, capital raising and insurance businesses. He serves on KKR’s Balance Sheet Committee and the firm’s Global Inclusion and Diversity Council, and has served on the boards of various non-profit institutions with a particular focus on education, most recently as Co-Chairman of Teach for America – New York.

Robert Lewin joined KKR in 2004 and serves as Chief Financial Officer. Since joining KKR, Lewin has held numerous positions, including as an investor in private equity, co-leading the firm’s credit and capital markets businesses, serving as Treasurer and Head of Corporate Development and Head of Human Capital & Strategic Talent. From 2006 through 2010, he resided in Hong Kong, helping to launch KKR’s Asia business. He holds a Bachelor of Science from the University of Pennsylvania and currently serves on the board of Global Atlantic and two non-profit organizations: Answer the Call and Ethical Culture Fieldston School.

Kathryn Sudol serves as Chief Legal Officer and General Counsel at KKR, having joined the firm in 2021. She is recognized as a Partner within the organization and plays a critical role in the firm’s legal and compliance operations. Sudol’s appointment represents part of KKR’s continued investment in strengthening its legal and governance infrastructure as the firm has expanded globally.

Ryan Stork joined KKR in 2022 as Chief Operating Officer, responsible for ensuring the firm’s global operations, technology, enterprise risk and corporate services resources are coordinated to meet investment and client needs. Prior to joining KKR, Stork held multiple leadership roles at BlackRock for more than twenty years, including Deputy Chief Operating Officer, Chairman of Asia Pacific, global head of Aladdin – BlackRock’s investment & risk management technology platform, and distribution roles in Europe and the US. Over his career he has worked and lived in New York, London, and Hong Kong. He holds a Chartered Financial Analyst designation and received an undergraduate degree in Finance from the University of Massachusetts at Amherst.

Dane Holmes serves as Chief Administrative Officer at KKR. Holmes assumed this role in 2023 and is responsible for overseeing various administrative functions across the firm’s global operations. His appointment represents KKR’s continued focus on strengthening its operational infrastructure to support the firm’s growth and expansion initiatives.

Bruce Karpati joined KKR in 2014 and serves as Global Chief Compliance Officer and Counsel. Prior to joining KKR, he was the Chief Compliance Officer of Prudential Investments, the mutual fund and distribution business of Prudential Financial. Karpati was previously the national chief of the SEC’s asset management unit which he co-founded, supervising a staff of 75 attorneys, industry experts, and other professionals. He joined the SEC as a staff attorney in 2000, was promoted to branch chief in 2002, assistant regional director in 2005, and Co-Chief of the SEC’s Asset Management Unit in 2010. He also serves as an adjunct professor at Fordham University Law School and began his career in private practice at Dechert LLP. Karpati earned his JD cum laude from the University at Buffalo Law School and his Bachelor’s degree cum laude in International Relations from Tufts University.

Henry Kravis co-founded KKR in 1976 and serves as Co-Executive Chairman. Prior to his current position, he was Co-Chief Executive Officer until 2021. He is actively involved in managing the firm and serves on each of the regional Private Equity Investment Committees. Kravis currently serves on the boards of Axel Springer, ICONIQ Capital, LLC and Catalio Capital Management, LP, and serves as a director, chairman emeritus, trustee or executive committee member of several cultural, professional, and educational institutions. He earned a B.A. from Claremont McKenna College in 1967 and an M.B.A. from the Columbia Business School in 1969.

George Roberts co-founded KKR in 1976 and serves as Co-Executive Chairman. Prior to his current position, he was Co-Chief Executive Officer until 2021. He is actively involved in managing the firm and serves on each of the regional Private Equity Investment Committees. Roberts has served as a director or trustee of several cultural and educational institutions, including Claremont McKenna College, and is founder and Chairman of the board of directors of REDF, a San Francisco nonprofit organization. He earned a B.A. from Claremont McKenna College in 1966 and a J.D. from the University of California Hastings Law School in 1969.

4) Ownership

KKR & Co. Inc. operates as a publicly traded corporation listed on the New York Stock Exchange under the ticker KKR, with a market capitalization of approximately $121 billion as of November 2024. The company completed its conversion from a Delaware limited partnership to a Delaware corporation in July 2018, establishing a one-share-one-vote governance structure that ensures voting power directly correlates with share ownership. As of December 31, 2024, KKR had 891.35 million shares outstanding with institutional investors holding approximately 76.26% of the company’s stock.

The founding partners Henry Kravis and George Roberts maintain significant ownership stakes as the largest individual shareholders. As of December 31, 2024, George Roberts held 83.9 million shares representing 9.41% ownership valued at approximately $10.3 billion, while Henry Kravis owned 81.0 million shares representing 9.09% ownership valued at approximately $9.9 billion. Both founders serve as Co-Executive Chairmen following the 2021 leadership transition that appointed Joseph Bae and Scott Nuttall as Co-Chief Executive Officers. The current Co-CEOs also hold substantial equity positions, with Scott Nuttall owning 21.1 million shares (2.36% ownership) and Joseph Bae holding 18.3 million shares (2.06% ownership).

Institutional ownership is dominated by major asset managers, with The Vanguard Group Inc. holding the largest institutional position at 59.2 million shares (6.65% ownership) valued at approximately $8.0 billion as of December 2024. BlackRock Inc. represents the second-largest institutional holder with 48.1 million shares (5.40% ownership), while Capital Research and Management Company holds 31.3 million shares (3.52% ownership). State Street Corporation rounds out the top institutional investors with 28.1 million shares (3.15% ownership). These holdings demonstrate the confidence of major institutional investors in KKR’s long-term strategy and growth prospects.

A transformational ownership milestone occurred on May 31, 2022, when KKR completed the acquisition of KKR Holdings L.P. and the 258.3 million KKR Group Partnership Units held by it, issuing 266.8 million shares of common stock to principals in exchange. This transaction was part of the broader Reorganization Agreement entered into on October 8, 2021, which simplified KKR’s corporate structure and eliminated the complex partnership structure that had previously characterized the firm’s ownership. The reorganization also established that on the “Sunset Date” (no later than December 31, 2026), KKR will cancel the Series I preferred stock held by KKR Management LLP and establish voting rights for all common stock on a one-vote-per-share basis.

Recent ownership activity includes strategic initiatives to expand KKR’s permanent capital base. In January 2024, KKR completed the acquisition of the remaining 37% minority interests in Global Atlantic Financial Group, making it a wholly-owned subsidiary through an exchange of cash and securities exchangeable for KKR common stock. The firm also maintains ownership stakes in various subsidiaries and related entities, including KKR Real Estate Finance Trust Inc., where KKR-affiliated entities hold approximately 15% ownership, and KKR Financial Holdings LLC, which serves as an intermediate holding company structure. These ownership arrangements support KKR’s strategy of building a diversified platform with permanent capital that reduces dependence on traditional fundraising cycles while maintaining alignment between the firm’s interests and those of its public shareholders.

5) Financial Position

KKR & Co. Inc. trades on the New York Stock Exchange under the ticker symbol KKR and is included as a component of the S&P 500 index since June 2024. The company’s stock closed at $141.54 on December 10, 2024, representing a market capitalization of approximately $121 billion. Over the past year, KKR’s stock price has experienced significant volatility, reaching a 52-week high of $170.40 on January 31, 2024, and a 52-week low of $86.15 on April 7, 2024. The stock has declined approximately 16.9% year-over-year, underperforming the broader market during this period despite strong operational fundamentals.

The company’s financial performance demonstrates the inherent volatility characteristic of alternative asset managers, where revenue streams fluctuate significantly based on investment performance and market conditions. For the trailing twelve months ending December 31, 2024, KKR reported total revenue of $22.25 billion, down 20.03% year-over-year from elevated 2023 levels. However, the more critical metric of Fee-Related Earnings (FRE), which represents the stable, recurring revenue from management fees, reached a record $3.6 billion for the last twelve months ending December 31, 2024, reflecting 16% year-over-year growth. This demonstrates the company’s success in building predictable revenue streams through its expanding assets under management base.

KKR’s profitability metrics reveal strong underlying operational performance despite GAAP earnings volatility. The company achieved record Fee-Related Earnings of $1.15 per share in the fourth quarter of 2024, with an impressive FRE margin improvement of 360 basis points. Net profit margins fluctuate significantly based on investment gains and losses, ranging from 14.06% in 2024 to negative territory during market downturns. The company’s operating margin for the trailing twelve months stood at 34.94% as of November 2024, demonstrating effective cost control relative to revenue growth. Return on equity has averaged 8.12% over recent periods, while return on assets remains modest at 1.36%, reflecting the asset-intensive nature of the business model.

The firm’s financial health is characterized by substantial leverage, with a debt-to-equity ratio of 73.1% as of the most recent quarter. This elevated leverage reflects the company’s strategic use of debt to finance investments, particularly through its insurance subsidiary Global Atlantic Financial Group, which carries significant policy-related liabilities. KKR maintains strong liquidity with $46.11 billion in total cash and cash equivalents as of the most recent quarter, providing substantial flexibility for investment opportunities and operational needs. The company’s current ratio of 0.07 appears concerning on the surface but is typical for asset managers due to the consolidation of fund-level liabilities on the balance sheet.

KKR has disclosed several key business risks that could impact financial performance, including concentration risk from large institutional investors, sensitivity to market volatility affecting investment valuations, and regulatory changes in the alternative asset management industry. The company faces particular exposure to interest rate fluctuations, which can significantly impact both the valuation of portfolio investments and the cost of financing. Geopolitical tensions and economic downturns represent additional risks given the firm’s global investment footprint spanning 36 cities across 17 countries. The alternative asset management industry continues to experience increasing competition for both investor capital and attractive investment opportunities, with potential pressure on management fees and performance expectations.

The broader industry dynamics present both opportunities and challenges for KKR’s future financial performance. The firm operates in a sector experiencing structural growth, with global alternative assets under management expected to reach $24 trillion by 2028 from $15 trillion in 2022. However, this growth occurs alongside increasing regulatory scrutiny, particularly regarding transparency and fee disclosure requirements. KKR’s strategic positioning through its diversified business model, including private equity, credit, real assets, capital markets, and insurance operations, provides multiple revenue streams that can partially offset cyclical downturns in any single segment. The company’s substantial dry powder of $126 billion provides significant deployment capacity to capitalize on market dislocations and attractive investment opportunities.

6) Market Position

KKR & Co. Inc. occupies a leading position in the global alternative asset management industry, consistently ranking among the world’s largest private equity firms. According to the 2025 PEI 300 ranking by Private Equity International, KKR topped the list as the world’s largest private equity firm by fundraising volume, raising $117.9 billion over the past five years. With $723 billion in total assets under management as of December 31, 2024, including $585 billion in fee-paying assets under management, KKR commands substantial market presence across its diversified investment platform spanning private equity, credit, real assets, and insurance solutions.

The firm’s competitive landscape is dominated by other global alternative asset managers including Blackstone ($1.2 trillion AUM), Apollo Global Management ($840 billion AUM), and The Carlyle Group ($465 billion AUM). Despite facing formidable competition, KKR has demonstrated consistent market share expansion, particularly in private credit and infrastructure, where bank retrenchment has created opportunities for private capital deployment. The firm’s credit AUM reached $315 billion in 2024, reflecting growth of approximately 20% year-over-year in private credit specifically. KKR’s asset-based finance segment alone represents approximately $75 billion in AUM, growing at over 20% annually as corporations increasingly seek to transition from capital-heavy to capital-light business models.

KKR’s market positioning benefits from significant operational scale and global reach, with offices across 36 cities in 17 countries serving institutional investors, private wealth channels, and corporate clients worldwide. The firm’s diversified revenue model provides competitive advantages, with approximately 80% of earnings derived from recurring fee and spread income rather than volatile performance fees, creating more predictable cash flows compared to peers. This stability is enhanced by KKR’s ownership of Global Atlantic Financial Group, providing access to $212 billion in insurance AUM and generating consistent spread income that differentiates the firm from competitors who rely primarily on third-party partnerships for insurance solutions.

The firm’s distribution capabilities represent a key competitive differentiator, particularly in the rapidly expanding private wealth channel. KKR’s K-Series products have grown to $32 billion in assets under management, with monthly inflows accelerating from $500 million at the end of 2023 to $900 million monthly in the most recent quarter. The strategic partnership with Capital Group announced in 2024 provides additional distribution advantages, combining Capital Group’s $2.6 trillion asset base and extensive financial advisor networks with KKR’s private market expertise to launch public-private investment solutions targeting mass affluent investors.

KKR’s operational capabilities extend beyond traditional asset management through its integrated platform approach. The firm’s Capital Markets division has arranged over $2.4 trillion in financing since 2007, providing comprehensive financing solutions that create competitive advantages in deal execution and portfolio company support. The KKR Capstone operating platform, comprised of over 300 dedicated operating professionals, enables hands-on value creation that differentiates the firm from purely financial investors. This operational expertise has contributed to KKR’s portfolio companies collectively generating approximately $345 billion in annual revenues across 280 companies employing over 900,000 people globally.

The firm’s market position faces several competitive pressures, including intense competition for quality assets, rising valuations across alternative investments, and increased regulatory scrutiny on private markets transparency and fee structures. However, KKR’s strategic positioning across multiple mega-themes including AI infrastructure development, energy transition, and intra-Asia connectivity provides access to substantial secular growth opportunities. The firm’s $50 billion strategic partnership with Energy Capital Partners for AI and power infrastructure development exemplifies its ability to capitalize on transformational investment themes requiring significant private capital deployment. KKR’s brand recognition and 48-year track record of value creation continue to attract institutional capital, with the firm raising $43 billion in new capital during the third quarter of 2024, demonstrating sustained investor confidence despite challenging market conditions.

7) Legal Claims and Actions

On January 13, 2025, Kohlberg Kravis Roberts & Co. L.P. was sanctioned by the SEC for $11 million as part of a broader $63.1 million settlement involving multiple investment advisory firms for recordkeeping violations. The SEC’s order found that KKR failed to maintain and preserve electronic communications in violation of recordkeeping provisions of federal securities laws, and failed to reasonably supervise personnel to prevent and detect these violations. The investigation uncovered widespread use of unapproved communication methods, known as off-channel communications, involving personnel at multiple levels including supervisors and senior managers. KKR admitted to the facts in the SEC order, acknowledged the violations, and agreed to cease and desist from future recordkeeping violations while implementing compliance policy improvements.

On January 14, 2025, the U.S. Department of Justice Antitrust Division filed a civil antitrust complaint against KKR & Co. Inc. and various KKR Group-sponsored investment entities, specifically including KKR Infrastructure Conglomerate LLC, alleging violations of the Hart-Scott-Rodino Antitrust Improvements Act (HSR Act). The DOJ complaint seeks various relief including civil penalties in an undetermined amount and equitable remedies such as disgorgement and injunctive relief to prevent future HSR Act violations. This action represents a significant regulatory challenge to KKR’s deal-making processes and merger notification compliance procedures.

Global Atlantic Financial Group, a wholly-owned subsidiary of KKR, faces a critical class action lawsuit filed on August 11, 2023, alleging failure to protect customers’ personally identifiable information during a cyberattack on its IT vendor, Pension Benefit Information, LLC. The compromised data included full names, dates of birth, policy numbers, states, and Social Security numbers, with plaintiffs alleging that Global Atlantic failed to adequately encrypt or protect this sensitive information. The lawsuit seeks damages exceeding $5 million under the Class Action Fairness Act and alleges negligence and violations of federal and state data protection statutes.

Global Atlantic Distributors, LLC, a subsidiary involved in insurance product distribution, settled two separate FINRA enforcement actions between 2013 and 2014. In December 2014, the firm was censured and fined $40,000 for failing to retain business-related electronic communications of approximately 28 individuals during an 11-month period due to inadvertent gaps in email retention system processes when transitioning to a new outside vendor. Earlier, in February 2013, the firm was censured and fined $100,000 for preparing and distributing misleading brochures regarding a mutual fund investment, specifically making unwarranted claims about price stability and capital preservation despite changing market conditions in the bank loan market.

PharMerica Corporation, a long-term care pharmacy owned by KKR, entered into substantial settlements totaling $31.5 million with the federal government in May 2015 for violations of the False Claims Act and Controlled Substances Act. The government alleged that between January 2007 and December 2009, PharMerica routinely dispensed Schedule II controlled substances without valid prescriptions and caused false claims to be submitted to Medicare Part D for these improperly dispensed drugs. The settlement included $23.5 million for False Claims Act violations and $8 million for Controlled Substances Act violations, along with a five-year Corporate Integrity Agreement with the Department of Health and Human Services Office of Inspector General requiring substantial internal compliance reforms.

Marelli Holdings, a Japanese auto parts supplier owned by KKR, was reported in June 2024 to be considering filing for Chapter 11 bankruptcy protection in the United States. The potential bankruptcy filing reflects challenges in the company’s restructuring negotiations with creditors, though Marelli intends to continue operating while pursuing additional financing options.

Multiple KKR portfolio companies face ongoing litigation across various jurisdictions. SMCP, a French fashion group, was fined €20,000 by the French financial markets regulator AMF in June 2024 for failing to maintain confidentiality of inside information when its 2021 annual results were inadvertently made available on its website before official publication. Additionally, SMCP faces ownership disputes with shareholders claiming a 16% stake was illegally transferred to an offshore account, resulting in a British court issuing a worldwide freezing order to prevent further share transfers.

Optiv Security Inc., a cybersecurity firm owned by KKR, has been involved in multiple contract disputes and trade secret litigation across several federal courts. Recent cases include breach of contract claims filed in Kansas federal court in October and July 2024, and Defend Trade Secrets Act violations filed in Kansas and Colorado courts in 2024. These cases primarily involve disputes with former employees and competitors regarding alleged misappropriation of trade secrets and breaches of employment agreements.

Selecta Group, a European vending machine company in KKR’s portfolio, faces antitrust litigation filed in October 2024 in the Southern District of New York. A group of lenders including Deltroit, Algebris, and CQS filed suit against Selecta and certain bondholders, claiming violations of U.S. antitrust laws by favoring certain debt-holders over others in distressed debt negotiations. The litigation represents one of the first legal challenges to creditor pacts that have gained traction in distressed debt restructuring processes.

National Vision, an eyecare services company owned by KKR, agreed to a $895,000 pre-litigation settlement in November 2019 with six former employees who alleged violations of the Fair Labor Standards Act and California wage and hour laws on behalf of a proposed class. The company entered this settlement to avoid litigation burden and expense without admitting liability, subject to tribunal approval following a fairness hearing.

8) Recent Media Coverage

KKR & Co. Inc. has been the subject of significant media coverage regarding major regulatory actions and litigation. In January 2025, the U.S. Department of Justice (DOJ) filed what was described in media reports as an “extraordinary lawsuit” alleging that KKR had “systematically flouted” its merger notification requirements under the Hart-Scott-Rodino (HSR) Act. The DOJ’s complaint alleged a “pervasive culture of noncompliance,” citing instances where the firm withheld or altered documents in at least 16 transactions and failed entirely to make filings for two others, including one valued at $6.9 billion. In response, KKR filed its own complaint against the DOJ, seeking a court ruling that its actions did not violate the HSR Act and arguing the government was attempting to impose “draconian and grossly disproportionate penalties” based on “immaterial” paperwork errors.

The firm’s governance and compensation practices have also drawn legal and media scrutiny. In August 2024, a lawsuit was filed by the Steamfitters Local 449 Pension Fund in the Delaware Court of Chancery against KKR, its founders Henry Kravis and George Roberts, and current Co-CEOs Joseph Bae and Scott Nuttall. The complaint alleges that Kravis and Roberts received a payout of more than $500 million from a tax receivable agreement (TRA) in 2021 for which the company received “no value,” claiming the founders breached their fiduciary duties to “enrich themselves.” The lawsuit claims the payout was conceived as a “TRA Termination Payment” to compensate them for giving up a potential future tax benefit, and alleges that advisory firm Evercore aided and abetted the breach of fiduciary duty.

KKR’s portfolio companies have been involved in several high-profile financial distress situations and performance issues. In May 2023, Envision Healthcare, a physician-staffing company taken private by KKR in a $10 billion leveraged buyout in 2018, filed for Chapter 11 bankruptcy. The bankruptcy was expected to wipe out KKR’s $3.5 billion equity stake in the company. In August 2023, another KKR-backed company, cancer-treatment specialist GenesisCare, filed for bankruptcy, a situation described by media as a “bad omen for lenders” due to the significant destruction of value and low expected recovery rates for debt investors. In November 2024, KKR announced it would take a fourth-quarter charge to refund approximately $350 million in previously collected carried interest to investors in its second Asia buyout fund due to underperformance.

The firm has faced substantial criticism from activist groups and in media reports concerning ESG and labor practices across its portfolio. A September 2023 report from the Private Equity Climate Risks consortium accused KKR of funding “environmental racism” and “greenwashing.” The report cited KKR’s financial involvement in fossil fuel projects, including the Coastal GasLink pipeline in Canada and the Port Arthur and Cameron LNG terminals in the U.S. Gulf Coast, alleging these projects disproportionately harm Indigenous, Black, and low-income communities. Another report from the Private Equity Stakeholder Project in November 2024 detailed alleged labor abuses at KKR-owned companies, including Refresco, BrightView, and Global Medical Response, citing a pattern of anti-union activity, wage and hour violations, and workplace safety failures that resulted in over $525,000 in OSHA penalties. In a separate ESG-related reputational issue, KKR’s 2024 acquisition of Superstruct Entertainment, owner of over 80 European music festivals, prompted boycotts from more than 70 artists in protest of KKR’s alleged investments in companies active in Israeli settlements and the arms industry.

Amid these challenges, KKR has advanced a number of major strategic and financial initiatives. In November 2023, the firm announced an agreement to acquire the remaining 37% of Global Atlantic Financial Group for $2.7 billion in an all-cash transaction, with the deal closing in January 2024 to make the insurer a wholly-owned subsidiary. In December 2024, KKR expanded its strategic partnership with Capital Group to develop new retirement and wealth solutions, including a target-date fund and model portfolios that integrate public and private market strategies. On the personnel front, Johannes Huth, the firm’s longtime chairman for Europe, the Middle East, and Africa, announced his retirement in June 2024 after 25 years with the firm. KKR also reported successful capital raising, announcing in July 2024 the completion of a $6.5 billion fundraise for its asset-based finance strategy, its largest credit fundraise to date.

9) Strengths

Industry Leadership and Recognition

KKR consistently ranks as one of the world’s leading private equity firms, topping the 2025 PEI 300 ranking with $117.9 billion raised over the past five years. The firm has earned 13 wins in the 2024 PEI, PERE, PDI, NPM and Infrastructure Investor Awards, demonstrating excellence across multiple asset classes including private equity, real estate, infrastructure, and credit. This industry recognition reflects KKR’s position as a dominant force in alternative asset management, with capabilities spanning diverse investment strategies and global markets.

Diversified Business Platform and Permanent Capital

KKR operates a highly diversified business model encompassing private equity ($222 billion AUM), credit ($315 billion AUM including liquid strategies), infrastructure ($95 billion AUM), real estate ($85 billion AUM), capital markets, and insurance solutions through Global Atlantic Financial Group. This diversification provides multiple revenue streams and reduces dependence on any single investment area. The firm’s ownership of Global Atlantic, completed through full acquisition in January 2024, provides access to $212 billion in insurance AUM and generates consistent spread income, creating a stable permanent capital base that differentiates KKR from competitors relying primarily on third-party partnerships.

Global Scale and Integrated Platform

KKR maintains an extensive global presence with offices across 36 cities in 17 countries, enabling the firm to source transactions, raise capital, and execute investments worldwide. With approximately 4,834 professionals globally, including over 750 investment professionals and 300+ dedicated private equity investment professionals, KKR leverages local expertise while accessing its integrated platform of specialized resources including KKR Capstone, Capital Markets, Global Institute, and Global Macro teams. This scale provides significant advantages in deal sourcing, due diligence capabilities, and post-investment value creation.

Operational Value Creation Through KKR Capstone

KKR’s proprietary operational platform, KKR Capstone, comprises over 300 dedicated operating professionals who partner with investment teams and portfolio companies to identify and drive operational improvements. This hands-on approach to value creation goes beyond financial engineering, focusing on strategic growth initiatives, operational efficiency improvements, and best practice implementation across portfolio companies. The Capstone platform includes centers of excellence in human capital, insurance, procurement, technology, cybersecurity, and supply chain efficiency, providing specialized expertise that enhances portfolio company performance.

Strong Capital Markets Capabilities

KKR’s Capital Markets division has arranged over $2.4 trillion in financing since 2007, providing comprehensive financing solutions that create competitive advantages in deal execution and portfolio company support. The platform offers expertise across equity, debt, and structured products, with the ability to serve as both advisor and capital provider. In 2024, KKR generated $1 billion in capital markets revenues for the first time, demonstrating the platform’s significant growth and client demand for integrated financing solutions.

Technology Innovation and Risk Management Framework

KKR has invested over $1 billion in technology enhancement projects to bolster data analytics capabilities and improve investment decision-making precision. The firm operates comprehensive risk management frameworks across its global operations, including three lines of defense models with independent risk oversight functions. KKR maintains sophisticated cybersecurity programs with dedicated Chief Information Security Officers for both asset management and insurance businesses, annual employee training, incident response plans, and regular third-party security audits.

Sustainable Investing Leadership

KKR has invested over $58 billion in sustainability-focused investments since 2010, including $44 billion in climate and environmental sustainability investments. The firm’s Global Impact strategy, launched in 2018, focuses on investing in companies that deliver solutions to critical global challenges across four themes: climate action, sustainable living, lifelong learning, and inclusive growth. KKR is a founding signatory to the Operating Principles for Impact Management and maintains comprehensive responsible investment policies that integrate material sustainability considerations throughout the investment process.

Strong Fundraising Track Record and Private Wealth Expansion

KKR raised $43 billion in new capital during the third quarter of 2024, marking the second-highest fundraising quarter in its history. The firm’s K-Series products targeting private wealth clients have grown to $32 billion in AUM, up from $15 billion a year ago, with monthly inflows accelerating from $500 million at end-2023 to $900 million monthly in the most recent quarter. This expansion into private wealth channels provides access to vast pools of capital and reduces dependence on traditional institutional fundraising cycles.

Proven Investment Performance and Value Creation

KKR’s traditional private equity portfolio has delivered approximately 26% gross IRR since inception, significantly outperforming public market benchmarks over the same period. The firm’s portfolio companies collectively generate approximately $345 billion in annual revenues across 280 companies employing over 900,000 people globally, demonstrating the scale and impact of KKR’s value creation activities. The firm maintains $126 billion in dry powder, providing substantial deployment capacity to capitalize on attractive investment opportunities across market cycles.

Employee Ownership Culture and Shared Success Model

KKR has pioneered broad-based employee ownership programs across its portfolio, with 75 companies implementing ownership programs covering over 180,000 non-senior management employees who have been awarded billions of dollars in equity since 2011. This shared success model aligns employee interests with company performance and has demonstrated positive impact on business outcomes. Within KKR itself, employees have approximately $28.6 billion invested in or committed to the firm’s own funds and portfolio companies, ensuring strong alignment between management and investment performance.

10) Potential Risk Areas for Further Diligence

Regulatory Compliance and Enforcement Risk

KKR faces significant and escalating regulatory scrutiny that poses material risks to its operations and reputation. The January 2025 DOJ antitrust lawsuit alleging systematic violations of Hart-Scott-Rodino Act merger notification requirements represents an unprecedented regulatory challenge, with the DOJ complaint characterizing KKR’s conduct as demonstrating a “pervasive culture of noncompliance.” The government alleges KKR withheld or altered documents in at least 16 transactions and failed entirely to make filings for two others, including one valued at $6.9 billion, with potential civil penalties exceeding $650 million. Compounding these concerns, the SEC sanctioned KKR for $11 million in January 2025 for recordkeeping violations involving widespread use of off-channel communications by personnel at multiple levels, including supervisors and senior managers. These enforcement actions suggest systemic compliance deficiencies that could impair KKR’s ability to execute transactions efficiently and may signal deeper cultural and procedural problems requiring comprehensive remediation.

Investment Performance and Portfolio Concentration Risk

KKR confronts material exposure to underperforming investments and portfolio concentration risks that could significantly impact returns and investor confidence. The firm announced a fourth-quarter 2024 charge of approximately $350 million to refund previously collected carried interest to investors in its second Asia buyout fund due to underperformance, demonstrating the potential for material clawbacks when investments fail to meet expectations. Several high-profile portfolio company bankruptcies highlight execution risks, including Envision Healthcare’s Chapter 11 filing in May 2023 that wiped out KKR’s $3.5 billion equity stake, and GenesisCare’s August 2023 bankruptcy that was characterized by media as creating low expected recovery rates for debt investors. The concentration risk in both specific holdings and carbon-intensive sectors creates vulnerabilities to sector-specific downturns, regulatory changes affecting fossil fuel industries, and potential stranded asset risks as energy transition policies evolve.

Litigation and Legal Exposure Across Multiple Jurisdictions

KKR faces substantial litigation risks spanning fiduciary duty breaches, cybersecurity failures, and portfolio company legal challenges that could result in significant financial exposure and reputational damage. The Delaware Court of Chancery lawsuit filed by Steamfitters Local 449 Pension Fund alleges that founders Henry Kravis and George Roberts received over $500 million in tax receivable agreement payouts for which the company received “no value,” claiming breach of fiduciary duties to enrich themselves, with the complaint also naming advisory firm Evercore as allegedly aiding and abetting the breach. Global Atlantic faces a critical class action lawsuit regarding cybersecurity failures during a vendor cyberattack that compromised customer personally identifiable information including Social Security numbers, with plaintiffs alleging negligence and violations of federal and state data protection statutes seeking damages exceeding $5 million. Multiple portfolio companies face ongoing litigation across various jurisdictions, creating a pattern of legal exposure across the portfolio that could impact valuations and exit strategies.

ESG and Reputational Risk from Activist Scrutiny

KKR confronts mounting ESG-related reputational risks from activist groups and stakeholder criticism that could affect fundraising capabilities and investor relations, particularly with ESG-focused institutional investors. A September 2023 report from the Private Equity Climate Risks consortium accused KKR of funding “environmental racism” and “greenwashing,” citing the firm’s financial involvement in fossil fuel projects including the Coastal GasLink pipeline and Gulf Coast LNG terminals that allegedly harm Indigenous, Black, and low-income communities disproportionately. A November 2024 report from the Private Equity Stakeholder Project detailed alleged labor abuses at KKR-owned companies including Refresco, BrightView, and Global Medical Response, citing anti-union activity, wage violations, and workplace safety failures resulting in over $525,000 in OSHA penalties. The 2024 acquisition of Superstruct Entertainment prompted boycotts from over 70 artists protesting KKR’s alleged investments in companies active in Israeli settlements, demonstrating how portfolio decisions can create cascading reputational risks that affect business operations and stakeholder relationships.

Cybersecurity Infrastructure and Third-Party Vendor Risk

Despite comprehensive cybersecurity programs, KKR faces significant cyber risks across its global operations and portfolio companies that could result in material financial losses, regulatory sanctions, and operational disruptions. The firm acknowledges that “institutions like us have experienced information security and cybersecurity attacks in the past and will likely continue to be the target of increasingly sophisticated cyber actors.” Global Atlantic’s data breach through vendor Pension Benefit Information exposed sensitive customer data including Social Security numbers, demonstrating the substantial third-party vendor risk exposure that extends beyond KKR’s direct control. KKR’s global operations across 36 cities in 17 countries create multiple attack surfaces and complexity in maintaining consistent security standards across different regulatory jurisdictions and cultural contexts.

Key Person Dependency and Succession Planning Risk

While KKR successfully executed a leadership transition in 2021, the firm remains heavily dependent on key founders and senior leaders whose departure could create significant operational and strategic disruptions. Founders Henry Kravis and George Roberts, despite transitioning to Co-Executive Chairman roles, maintain substantial ownership stakes (9.41% and 9.09% respectively) and continue active involvement in regional Private Equity Investment Committees, creating potential succession and continuity risks. The departure of longtime EMEA Chairman Johannes Huth in 2024 after 25 years highlights ongoing succession planning challenges across the global organization. The firm’s decentralized structure across multiple regions and complex organizational hierarchy may present challenges in maintaining consistent culture, decision-making processes, and risk management standards.

Market Volatility and Fee Structure Pressure

KKR operates in an increasingly competitive and fee-sensitive environment where traditional revenue models face pressure from regulatory changes and investor demands for cost reduction. The alternative asset management industry faces structural headwinds including intense competition for quality assets, rising valuations that compress returns, and potential regulatory changes affecting fee transparency and disclosure requirements. KKR’s earnings demonstrate significant volatility tied to market conditions, with revenue declining 20% year-over-year for the trailing twelve months ending December 31, 2024, while the firm’s stock price declined approximately 16.9% year-over-year despite strong operational metrics. The firm’s complex global structure across multiple jurisdictions creates compliance challenges as regulatory frameworks continue evolving, with changes to tax policies affecting carried interest or international tax arrangements potentially having material impacts on KKR’s economics and competitive positioning.

Standard Alternative Asset Management Industry Considerations

KKR operates within an industry subject to inherent cyclical volatility where performance can be significantly affected by broader economic conditions, interest rate changes, and market sentiment that are largely outside management control. Alternative asset managers typically face extended investment holding periods that can be affected by market timing and economic cycles, potentially impacting both portfolio company performance and exit timing. The industry faces evolving regulatory landscapes globally, with increasing scrutiny on fee structures, transparency requirements, and potential conflicts of interest that could affect business models and profitability across all major alternative asset managers.

Sources

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