KKR & Co. Inc. (Form: 10-Q, Received: 08/09/2024 17:06:44)
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549 
 Form 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
For the quarterly period ended June 30, 2024 
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
For the Transition period from           to           . 
Commission File Number 001-34820
kkrlogoa16.jpg
KKR & CO. INC.
(Exact name of Registrant as specified in its charter) 
Delaware 88-1203639
(State or other Jurisdiction of
Incorporation or Organization)
 (I.R.S. Employer
Identification Number)
  30 Hudson Yards
New York, New York 10001
Telephone: (212) 750-8300
(Address, zip code, and telephone number, including
area code, of registrant's principal executive office.)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbol(s)Name of each exchange on which registered
Common Stock
KKRNew York Stock Exchange
4.625% Subordinated Notes due 2061 of KKR Group Finance Co. IX LLCKKRSNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  No 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  No 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer 
Non-accelerated filer Smaller reporting company 
Emerging growth company 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  No 

As of August 8, 2024, there were 887,439,879 shares of common stock of the registrant outstanding.


Table of Contents

KKR & CO. INC.
FORM 10-Q
For the Quarterly Period Ended June 30, 2024
TABLE OF CONTENTS
  Page
  
   
Item 1.
  
Item 2.
Item 3.
  
Item 4.
  
Item 1.
  
Item 1A.
 
Item 2.
 
Item 3.
  
Item 4.
  
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Item 6.

2

Table of Contents

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
  This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), which reflect our current views with respect to, among other things, our operations and financial performance. You can identify these forward-looking statements by the use of words such as "outlook," "believe," "think," "expect," "potential," "continue," "may," "should," "seek," "approximately," "predict," "intend," "will," "plan," "estimate," "anticipate," “visibility”, “positioned”, “path to”, “conviction”, the negative version of these words, other comparable words or other statements that do not relate strictly to historical or factual matters. Without limiting the foregoing, statements regarding KKR’s business, financial condition, liquidity and results of operations, including capital invested, uncalled commitments, cash and short-term investments, and levels of indebtedness; the potential for future business growth; outstanding shares of common stock of KKR & Co. Inc. and its capital structure; non-GAAP and segment measures and performance metrics, including assets under management (“AUM”), fee paying assets under management (“FPAUM”), Adjusted Net Income, Total Operating Earnings, Total Segment Earnings, Fee Related Earnings ("FRE"), Insurance Operating Earnings, Strategic Holdings Operating Earnings, Total Investing Earnings, and Total Segment Earnings; the declaration and payment of dividends on capital stock of KKR & Co. Inc.; the timing, manner and volume of repurchase of shares of common stock of KKR & Co. Inc.; our statements regarding the potential of, and future financial results from, KKR’s Strategic Holdings segment (including expectations about dividend payments from companies and businesses in the Strategic Holdings segment in the future, the future growth of such companies and businesses, the potential for compounding earnings over a long period of time from such segment, and the belief that such segment is an unconstrained business line); KKR’s ability to grow its AUM, to deploy capital, to realize unrealized investment appreciation, and the time period over which such events may occur; KKR’s ability to manage the investments in and operations of acquired companies and businesses; the effects of any transactional activity on KKR’s operating results, including pending sales of investments; expansion and growth opportunities and other synergies resulting from acquisitions of companies (including the acquisition of Global Atlantic and businesses in our Strategic Holdings segment), internal reorganizations or strategic partnerships with third parties; the timing and expected impact to our business of any new investment fund, vehicle or product launches; the timing and completion of certain transactions contemplated by the Reorganization Agreement entered into on October 8, 2021 by KKR & Co. Inc. pursuant to which the parties agreed to undertake a series of integrated transactions to effect a number of transformative structural and governance changes in the future; the implementation or execution of, or results from, any strategic initiatives, including efforts to access private wealth investors and the modification of our compensation framework announced on November 29, 2023, which decreased the targeted percentage of compensation from fee related revenues and increased the targeted percentage from realized carried interest and incentive fees. Forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements or cause the anticipated benefits and synergies from transactions to not be realized. We believe these factors include those described in the section entitled "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2023 (our "Annual Report"). These factors should be read in conjunction with the other cautionary statements that are included in this report and in our other filings with the U.S. Securities and Exchange Commission ("SEC"). We do not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

CERTAIN TERMS USED IN THIS REPORT
In this report, references to "KKR," "we," "us" and "our" refer to KKR & Co. Inc. and its subsidiaries, including The Global Atlantic Financial Group LLC ("TGAFG" and, together with its insurance companies and other subsidiaries, "Global Atlantic"), unless the context requires otherwise.
References to the “Series I preferred stockholder” or “KKR Management” are to KKR Management LLP, the holder of the sole outstanding share of our Series I preferred stock. References to our “senior principals” are to our senior employees who hold interests in the Series I preferred stockholder, including Mr. Henry Kravis and Mr. George Roberts (our "Co-Founders"). References to "principals" are to our current and former employees who formerly held interests ("KKR Holdings Units") in KKR Holdings L.P. ("KKR Holdings"), which we acquired on May 31, 2022, pursuant to the Reorganization Agreement, as discussed below. References to “carry pool participants” are to our current and former employees who hold interests in our “carry pool,” which refers to the carried interest generated by KKR’s business that is allocated to KKR Associates Holdings L.P. (“Associates Holdings”), in which carry pool participants are limited partners. Associates Holdings is currently not a subsidiary of KKR & Co. Inc.
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KKR Group Partnership L.P. ("KKR Group Partnership") is the intermediate holding company that owns the entirety of KKR’s business. Unless otherwise indicated, references to equity interests in KKR’s business, or to percentage interests in KKR’s business, reflect the aggregate equity interests in KKR Group Partnership, and are net of amounts that have been allocated to carry pool participants and any other holders of minority interests in KKR Group Partnership. References to “KKR Group Partnership” for periods prior to January 1, 2020 refer to KKR Fund Holdings L.P., KKR Management Holdings L.P. and KKR International Holdings L.P., collectively, which were combined on that date to form KKR Group Partnership. References to a “KKR Group Partnership Unit” refer to (i) one Class A partner interest in each of KKR Fund Holdings L.P., KKR Management Holdings L.P. and KKR International Holdings L.P., collectively, for periods prior to prior to January 1, 2020, and (ii) one Class A partner interest in KKR Group Partnership for periods on and after January 1, 2020. “Exchangeable securities” refers to securities that have the right to acquire KKR Group Partnership Units and to exchange them for our shares of common stock. As of the date of this report, our only outstanding exchangeable securities are (i) restricted holdings units issued through KKR Holdings II L.P. ("KKR Holdings II"), which are issued under the Amended and Restated KKR & Co. Inc. 2019 Equity Incentive Plan (the "2019 Equity Incentive Plan"), and (ii) restricted holdings units issued through KKR Holdings III L.P. ("KKR Holdings III"), which are not issued under the 2019 Equity Incentive Plan and are currently held by certain Global Atlantic employees who received 2.6 million units (a majority of which are unvested) in connection with the January 2, 2024 transaction described below. In the future, we may issue securities other than restricted holdings units that may constitute exchangeable securities.
On October 8, 2021, KKR entered into a Reorganization Agreement (the "Reorganization Agreement") with KKR Holdings, KKR Management, Associates Holdings, and the other parties thereto. Pursuant to the Reorganization Agreement, the parties agreed to undertake a series of integrated transactions to effect a number of transformative structural and governance changes, including (a) the acquisition by KKR of KKR Holdings and all of the KKR Group Partnership Units held by it (which as noted below was completed), (b) the future elimination of voting control by KKR Management and the Series I preferred stock held by it, (c) the future establishment of voting rights for all common stock on a one vote per share basis, including with respect to the election of directors, and (d) the future control of the carry pool by KKR. On May 31, 2022, KKR completed the acquisition of KKR Holdings and the 258.3 million KKR Group Partnership Units held by it, and in exchange KKR issued and delivered 266.8 million shares of common stock to our principals. On the "Sunset Date" (which will occur no later than December 31, 2026), KKR will cancel the Series I preferred stock, establish voting rights for all common stock on a one vote per share basis, and acquire control of the carry pool. For more information about the Reorganization Agreement, see Note 1 "Organization" in our financial statements included in this report.
KKR’s asset management business is conducted by Kohlberg Kravis Roberts & Co. L.P. and various other subsidiaries of KKR & Co. Inc. other than Global Atlantic. KKR’s insurance business is operated by Global Atlantic, which KKR acquired a majority controlling interest in on February 1, 2021 ("2021 GA Acquisition"). On January 2, 2024, KKR acquired the remaining minority interests of Global Atlantic held by third party co-investors and Global Atlantic employees in exchange for cash and securities exchangeable for shares of KKR & Co. Inc. common stock (the “2024 GA Acquisition”). As of January 2, 2024, KKR owns 100.0% of Global Atlantic. KJR Management ("KJRM") is a Japanese real estate asset manager, which KKR acquired on April 28, 2022.
References to our "funds," "vehicles" or "investment vehicles" refer to a wide array of investment funds, vehicles and accounts that are advised, managed or sponsored by one or more subsidiaries of KKR, including collateralized loan obligations ("CLOs") and business development companies (each, a "BDC"), unless the context requires otherwise. These references do not include the investment funds, vehicles or accounts of any hedge fund partnership or any other third-party asset manager with which we have formed a strategic partnership or have acquired a minority ownership interest. Unless the context requires otherwise, references to “fund investors” or "investors in our investment vehicles" refers to the third-party investors in these funds and investment vehicles. References to “strategic investor partnerships” refers to separately managed accounts with certain investors, which typically have investment periods longer than our traditional funds and typically provide for investments across different investment strategies. References to “hedge fund partnerships” refers to strategic partnerships with third-party hedge fund managers in which KKR owns a minority stake.
Unless otherwise indicated, references in this report to our outstanding common stock on a fully exchanged and diluted basis reflect (i) actual shares of common stock outstanding, (ii) shares of common stock into which all outstanding shares of Series C Mandatory Convertible Preferred Stock were convertible (for periods prior to the date of its mandatory redemption, which occurred in September 2023), (iii) shares of common stock issuable pursuant to equity awards actually granted pursuant to the Amended and Restated KKR & Co. Inc. 2010 Equity Incentive Plan (the "2010 Equity Incentive Plan" and, together with the 2019 Equity Incentive Plan, our "Equity Incentive Plans") and (iv) shares of common stock issuances from exchangeable securities, including vested partnership interests in KKR Holdings III L.P. Our outstanding common stock on a fully exchanged and diluted basis does not include shares of common stock available for issuance pursuant to the Equity Incentive Plans for which equity awards have not yet been granted.
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In this report, the term "GAAP" refers to accounting principles generally accepted in the United States of America. We disclose certain financial measures in this report that are calculated and presented using methodologies other than in accordance with GAAP, including Adjusted Net Income, Total Asset Management Segment Revenues, Total Segment Earnings, Total Investing Earnings, Total Operating Earnings, FRE, Insurance Operating Earnings and Strategic Holdings Operating Earnings. We believe that providing these performance measures on a supplemental basis to our GAAP results is helpful to stockholders in assessing the overall performance of KKR's businesses. These non-GAAP financial measures should not be considered as a substitute for similar financial measures calculated in accordance with GAAP. We caution readers that these non-GAAP financial measures may differ from the calculations of other investment managers, and as a result, may not be comparable to similar measures presented by other investment managers. Reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP, where applicable, are included under "Management's Discussion and Analysis of Financial Condition and Results of Operations—Segment Balance Sheet Measures—Reconciliations to GAAP Measures." This report also uses the terms AUM, FPAUM and capital invested. You should note that our calculations of these and other operating metrics may differ from the calculations of other investment managers and, as a result, may not be comparable to similar metrics presented by other investment managers. These non-GAAP and operating metrics are defined in the section "Management's Discussion and Analysis of Financial Condition and Results of Operations—Key Segment and Non-GAAP Performance Measures—Other Terms and Capital Metrics."
The use of any defined term in this report to mean more than one entity, person, security or other item collectively is solely for convenience of reference and in no way implies that such entities, persons, securities or other items are one indistinguishable group. For example, notwithstanding the use of the defined terms "KKR," "we" and "our" in this report to refer to KKR & Co. Inc. and its subsidiaries, each subsidiary of KKR & Co. Inc. is a standalone legal entity that is separate and distinct from KKR & Co. Inc. and any of its other subsidiaries. Any KKR entity (including any Global Atlantic entity) referenced herein is responsible for its own financial, contractual and legal obligations. Additionally, references to "including" are for the purpose of illustration and shall be read to mean "including without limitation" unless the context explicitly requires otherwise.
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PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS

KKR & CO. INC.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)
(Amounts in Thousands, Except Share and Per Share Data)
June 30, 2024December 31, 2023
Assets  
Asset Management and Strategic Holdings
Cash and Cash Equivalents$7,829,321 $8,393,892 
Restricted Cash and Cash Equivalents168,888 116,599 
Investments102,046,987 98,634,801 
Due from Affiliates1,616,747 1,446,852 
Other Assets5,080,261 4,975,223 
116,742,204 113,567,367 
Insurance
Cash and Cash Equivalents$7,710,857 $11,954,675 
Restricted Cash and Cash Equivalents360,705 342,954 
Investments163,502,261 141,370,323 
Reinsurance Recoverable45,473,921 36,617,344 
Insurance Intangible Assets4,904,683 4,450,824 
Other Assets5,651,906 4,883,707 
Separate Account Assets4,122,642 4,107,000 
231,726,975 203,726,827 
Total Assets$348,469,179 $317,294,194 
Liabilities and Equity  
Asset Management and Strategic Holdings
Debt Obligations$45,396,247 $44,886,870 
Due to Affiliates444,947 538,099 
Accrued Expenses and Other Liabilities9,869,018 7,718,415 
55,710,212 53,143,384 
Insurance
Policy Liabilities (market risk benefit liabilities: $1,019,763 and $1,120,968, respectively.)
$177,832,610 $160,058,271 
Debt Obligations3,698,209 2,587,857 
Funds Withheld Payable at Interest43,943,834 34,339,522 
Accrued Expenses and Other Liabilities2,800,252 3,256,006 
Reinsurance Liabilities1,831,453 1,423,242 
Separate Account Liabilities4,122,642 4,107,000 
234,229,000 205,771,898 
Total Liabilities289,939,212 258,915,282 
6

June 30, 2024December 31, 2023
Commitments and Contingencies (See Note 24)
Redeemable Noncontrolling Interests (See Note 23)$1,291,487 $615,427 
Stockholders' Equity  
Series I Preferred Stock, $0.01 par value. 1 share authorized, 1 share issued and outstanding as of June 30, 2024 and December 31, 2023.
— — 
Common Stock, $0.01 par value. 3,500,000,000 shares authorized, 887,439,098 and 885,005,588 shares, issued and outstanding as of June 30, 2024 and December 31, 2023, respectively.
8,874 8,850 
Additional Paid-In Capital18,133,336 17,549,157 
Retained Earnings10,867,154 9,818,336 
Accumulated Other Comprehensive Income (Loss) ("AOCI")(7,336,261)(4,517,649)
Total KKR & Co. Inc. Stockholders' Equity21,673,103 22,858,694 
Noncontrolling Interests (See Note 22)35,565,377 34,904,791 
Total Equity57,238,480 57,763,485 
Total Liabilities and Equity$348,469,179 $317,294,194 

See notes to financial statements.
7

KKR & CO. INC.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED) (CONTINUED)
(Amounts in Thousands)
 
The following presents the portion of the consolidated balances provided in the consolidated statements of financial condition attributable to consolidated variable interest entities ("VIEs"). As of June 30, 2024 and December 31, 2023, KKR's consolidated VIEs consist primarily of (i) certain collateralized financing entities ("CFEs") holding collateralized loan obligations ("CLOs"), (ii) certain investment funds, and (iii) certain VIEs formed by Global Atlantic. The noteholders, creditors and equity holders of these VIEs have no recourse to the assets of any other KKR entity.
With respect to consolidated CFEs and certain investment funds, the following assets may only be used to settle obligations of these consolidated VIEs and the following liabilities are only the obligations of these consolidated VIEs and not generally to KKR. Additionally, KKR has no right to the benefits from, nor does KKR bear the risks associated with, the assets held by these VIEs beyond KKR's beneficial interest therein and any income generated from the VIEs. There are neither explicit arrangements nor does KKR hold implicit variable interests that would require KKR to provide any material ongoing financial support to the consolidated VIEs, beyond amounts previously committed to them, if any.
With respect to certain other VIEs consolidated by Global Atlantic, Global Atlantic has formed certain VIEs to either (i) hold investments, including fixed maturity securities, consumer and other loans, renewable energy, transportation and real estate, or (ii) to conduct certain reinsurance activities with third party commitments. These VIEs issue beneficial interests primarily to Global Atlantic’s insurance companies.
June 30, 2024
 Consolidated CFEsConsolidated Funds and Other Investment VehiclesOther
VIEs
Total
Assets 
Asset Management and Strategic Holdings
Cash and Cash Equivalents$2,163,401 $1,291,312 $— $3,454,713 
Restricted Cash and Cash Equivalents— 163,447 — 163,447 
Investments24,890,663 59,353,463 — 84,244,126 
Other Assets560,251 452,800 — 1,013,051 
27,614,315 61,261,022 — 88,875,337 
Insurance
Cash and Cash Equivalents— — 985,123 985,123 
Investments— — 25,613,118 25,613,118 
Other Assets— — 484,626 484,626 
— — 27,082,867 27,082,867 
Total Assets$27,614,315 $61,261,022 $27,082,867 $115,958,204 
  
Liabilities 
Asset Management and Strategic Holdings
Debt Obligations$25,253,120 $8,923,718 $— $34,176,838 
Accrued Expenses and Other Liabilities1,356,648 317,846 — 1,674,494 
26,609,768 9,241,564 — 35,851,332 
Insurance
Debt— — 34,700 34,700 
Accrued Expenses and Other Liabilities— — 380,569 380,569 
— — 415,269 415,269 
Total Liabilities$26,609,768 $9,241,564 $415,269 $36,266,601 

8

 
December 31, 2023
 Consolidated CFEsConsolidated Funds and Other Investment VehiclesOther
VIEs
Total
Assets 
Asset Management and Strategic Holdings
Cash and Cash Equivalents$1,709,523 $1,162,174 $— $2,871,697 
Restricted Cash and Cash Equivalents— 110,308 — 110,308 
Investments24,996,298 57,343,237 — 82,339,535 
Other Assets429,827 345,509 — 775,336 
27,135,648 58,961,228 — 86,096,876 
Insurance
Cash and Cash Equivalents— — 783,015 783,015 
Investments— — 22,556,040 22,556,040 
Other Assets— — 491,607 491,607 
— — 23,830,662 23,830,662 
Total Assets$27,135,648 $58,961,228 $23,830,662 $109,927,538 
Liabilities 
Asset Management and Strategic Holdings
Debt Obligations$25,276,404 $8,554,449 $— $33,830,853 
Accrued Expenses and Other Liabilities869,765 488,717 — 1,358,482 
26,146,169 9,043,166 — 35,189,335 
Insurance
Accrued Expenses and Other Liabilities— — 337,162 337,162 
Total Liabilities$26,146,169 $9,043,166 $337,162 $35,526,497 

See notes to financial statements.
9

KKR & CO. INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(Amounts in Thousands, Except Share and Per Share Data)
Three Months Ended June 30,Six Months Ended June 30,
 2024202320242023
Revenues
Asset Management and Strategic Holdings
Fees and Other $822,324 $754,447 $1,515,850 $1,431,463 
Capital Allocation-Based Income (Loss)738,125 696,897 2,001,067 1,145,915 
1,560,449 1,451,344 3,516,917 2,577,378 
Insurance
Net Premiums935,794 626,429 6,972,316 1,100,053 
Policy Fees333,900 315,382 662,847 629,184 
Net Investment Income1,580,498 1,311,055 3,100,400 2,611,752 
Net Investment-Related Gains (Losses)(302,620)(117,550)(544,106)(241,383)
Other Income63,889 39,858 120,274 77,016 
2,611,461 2,175,174 10,311,731 4,176,622 
Total Revenues4,171,910 3,626,518 13,828,648 6,754,000 
Expenses
Asset Management and Strategic Holdings
Compensation and Benefits895,165 657,114 2,211,613 1,232,784 
Occupancy and Related Charges23,306 23,593 46,846 45,742 
General, Administrative and Other304,489 289,586 582,470 503,275 
1,222,960 970,293 2,840,929 1,781,801 
Insurance
Net Policy Benefits and Claims (including market risk benefit loss (gain) of $11,790, $(75,286), $(89,970) and $71,024, respectively.)
2,199,160 1,736,014 9,460,229 3,263,068 
Amortization of Policy Acquisition Costs32,808 170 29,056 44,381 
Interest Expense65,750 39,832 120,317 80,093 
Insurance Expenses244,954 172,121 444,190 397,439 
General, Administrative and Other180,697 204,052 364,552 415,783 
2,723,369 2,152,189 10,418,344 4,200,764 
Total Expenses3,946,329 3,122,482 13,259,273 5,982,565 
Investment Income (Loss) - Asset Management and Strategic Holdings
Net Gains (Losses) from Investment Activities392,667 570,085 1,030,829 410,676 
Dividend Income471,349 246,939 716,406 395,106 
Interest Income903,861 850,061 1,793,963 1,578,677 
Interest Expense(783,253)(720,108)(1,537,317)(1,296,446)
Total Investment Income (Loss)984,624 946,977 2,003,881 1,088,013 
Income (Loss) Before Taxes1,210,205 1,451,013 2,573,256 1,859,448 
Income Tax Expense (Benefit)216,969 324,955 486,170 473,702 
10

Three Months Ended June 30,Six Months Ended June 30,
 2024202320242023
Net Income (Loss)993,236 1,126,058 2,087,086 1,385,746 
Net Income (Loss) Attributable to Redeemable Noncontrolling Interests 29,666 (1,740)62,344 (9,043)
Net Income (Loss) Attributable to Noncontrolling Interests295,644 266,086 674,602 193,083 
Net Income (Loss) Attributable to KKR & Co. Inc.667,926 861,712 1,350,140 1,201,706 
Series C Mandatory Convertible Preferred Stock Dividends— 17,249 — 34,499 
Net Income (Loss) Attributable to KKR & Co. Inc.
Common Stockholders
$667,926 $844,463 $1,350,140 $1,167,207 
Net Income (Loss) Attributable to KKR & Co. Inc.
Per Share of Common Stock
Basic$0.75 $0.98 $1.52 $1.36 
Diluted$0.72 $0.94 $1.45 $1.32 
Weighted Average Shares of Common Stock Outstanding
Basic887,394,513 861,553,274 886,200,169 861,332,121 
Diluted932,046,386 912,147,881 928,593,777 913,068,567 


See notes to financial statements.
11

KKR & CO. INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
(Amounts in Thousands)
 Three Months Ended June 30,Six Months Ended June 30,
 2024202320242023
Net Income (Loss) $993,236 $1,126,058 $2,087,086 $1,385,746 
Other Comprehensive Income (Loss), Net of Tax:
Unrealized Gains (Losses) on Available-For-Sale Securities and Other(427,602)(220,665)(627,823)912,087 
Net effect of changes in discount rates and instrument-specific credit risk on policy liabilities147,304 13,551 272,484 (123,550)
Foreign Currency Translation Adjustments(93,820)(106,615)(200,981)(124,853)
Comprehensive Income (Loss)619,118 812,329 1,530,766 2,049,430 
Comprehensive Income (Loss)
Attributable to Redeemable Noncontrolling Interests
29,666 (1,740)62,344 (9,043)
Comprehensive Income (Loss)
Attributable to Noncontrolling Interests
292,286 188,936 669,764 483,121 
Comprehensive Income (Loss) Attributable to KKR & Co. Inc.$297,166 $625,133 $798,658 $1,575,352 

 
See notes to financial statements.
12


KKR & CO. INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)
(Amounts in Thousands, Except Share and Per Share Data)
Three Months Ended
June 30, 2024
Six Months Ended
June 30, 2024
AmountsSharesAmountsShares
Series I Preferred Stock
Beginning of Period— — 
End of Period— — 
Common Stock
Beginning of Period8,850 885,010,967 8,850 885,005,588 
Clawback of Transfer Restricted Shares— (9,725)— (9,725)
Exchange of KKR Restricted Holdings Units— 61,381 — 61,381 
Private Placement Share Issuance— — — 5,379 
Net Delivery of Common Stock (Equity Incentive Plans)24 2,376,475 24 2,376,475 
End of Period8,874 887,439,098 8,874 887,439,098 
Additional Paid-In Capital
Beginning of Period18,032,599 17,549,157 
Compensation Modification (See Note 19)— 226,011 
Compensation Modification - Issuance of Holdings III Units (See Note 19)— (53,623)
Net Delivery of Common Stock (Equity Incentive Plans)(92,970)(92,970)
Equity-Based Compensation76,755 156,259 
2024 GA Acquisition - Issuance of Holdings III Units (See Note 1)— (40,789)
Change in KKR & Co. Inc.'s Ownership Interest - 2024 GA Acquisition— 128,194 
Change in KKR & Co. Inc.'s Ownership Interest (See Note 22)116,952 261,097 
End of Period18,133,336 18,133,336 
Retained Earnings
Beginning of Period 10,354,524 9,818,336 
Net Income (Loss) Attributable to KKR & Co. Inc.667,926 1,350,140 
Common Stock Dividends ($0.175 and $0.34 per share)
(155,296)(301,322)
End of Period10,867,154 10,867,154 
Accumulated Other Comprehensive Income (Loss) (net of tax)
Beginning of Period(6,974,780)(4,517,649)
Other Comprehensive Income (Loss)(370,760)(551,482)
Change in KKR & Co. Inc.'s Ownership Interest - 2024 GA Acquisition — (2,297,494)
Change in KKR & Co. Inc.'s Ownership Interest (See Note 22)9,279 30,364 
End of Period(7,336,261)(7,336,261)
Total KKR & Co. Inc. Stockholders' Equity21,673,103 21,673,103 
Noncontrolling Interests (See Note 22)35,565,377 35,565,377 
Total Equity$57,238,480 $57,238,480 
Redeemable Noncontrolling Interests (See Note 23)$1,291,487 $1,291,487 

13

KKR & CO. INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Continued)
(Amounts in Thousands, Except Share and Per Share Data)
Three Months Ended
June 30, 2023
Six Months Ended
 June 30, 2023
AmountsSharesAmountsShares
Series C Mandatory Convertible Preferred Stock
Beginning of Period1,115,792 22,999,974 1,115,792 22,999,974 
Conversion of Series C Mandatory Convertible Preferred Stock— (1,172)— (1,172)
End of Period1,115,792 22,998,802 1,115,792 22,998,802 
Series I Preferred Stock
Beginning of Period— — 
End of Period— — 
Common Stock
Beginning of Period8,611 861,104,000 8,611 861,110,478 
Net Delivery of Common Stock (Equity Incentive Plans)20 1,974,782 20 1,981,928 
Clawback of Transfer Restricted Shares— (6,153)— (19,777)
Conversion of Series C Mandatory Convertible Preferred Stock— 1,366 — 1,366 
Repurchases of Common Stock(51)(5,086,354)(51)(5,086,354)
End of Period8,580 857,987,641 8,580 857,987,641 
Additional Paid-In Capital
Beginning of Period (as previously reported for the prior period)16,339,472 16,190,407 
Adoption of New Accounting Standard — 93,650 
Beginning of Period (as revised for the prior period)16,339,472 16,284,057 
Net Delivery of Common Stock (Equity Incentive Plans)(31,775)(31,775)
Repurchases of Common Stock(272,224)(272,224)
Equity-Based Compensation41,537 96,952 
Change in KKR & Co. Inc.'s Ownership Interest (See Note 22)107,241 107,241 
Tax Effects of Changes in Ownership and Other2,647 2,647 
End of Period16,186,898 16,186,898 
Retained Earnings
Beginning of Period (as previously reported for the prior period)6,890,381 6,315,711 
Adoption of New Accounting Standard — 385,396 
Beginning of Period (as revised for the prior period)6,890,381 6,701,107 
Net Income (Loss) Attributable to KKR & Co. Inc.861,712 1,201,706 
Series C Mandatory Convertible Preferred Stock Dividends ($0.75 and $1.50 per share for the three and six months ended June 30, 2023, respectively)
(17,249)(34,499)
Common Stock Dividends ($0.165 and $0.32 per share)
(142,273)(275,743)
End of Period7,592,571 7,592,571 
Accumulated Other Comprehensive Income (Loss) (net of tax)
Beginning of Period (as previously reported for the prior period)(4,691,575)(5,901,701)
Adoption of New Accounting Standard— 599,901 
Beginning of Period (as revised for the prior period)(4,691,575)(5,301,800)
Other Comprehensive Income (Loss)(236,579)373,646 
Change in KKR & Co. Inc.'s Ownership Interest (See Note 22)5,880 5,880 
End of Period(4,922,274)(4,922,274)
Total KKR & Co. Inc. Stockholders' Equity19,981,567 19,981,567 
Noncontrolling Interests (See Note 22)40,429,454 40,429,454 
Total Equity$60,411,021 $60,411,021 
Redeemable Noncontrolling Interests (See Note 23)$183,413 $183,413 
See notes to financial statements.
14

KKR & CO. INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(Amounts in Thousands)
 Six Months Ended June 30,
20242023
Operating Activities
Net Income (Loss)$2,087,086 $1,385,746 
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided (Used) by Operating Activities:
Equity-Based and Other Non-Cash Compensation368,318 331,667 
Net Realized (Gains) Losses - Asset Management and Strategic Holdings(33,150)289,920 
Change in Unrealized (Gains) Losses - Asset Management and Strategic Holdings(997,679)(700,596)
Capital Allocation-Based (Income) Loss - Asset Management and Strategic Holdings(2,001,067)(1,145,915)
Net Investment and Policy Liability-Related (Gains) Losses - Insurance1,373,769 1,464,930 
Net Accretion and Amortization(40,942)37,449 
Interest Credited to Policyholder Account Balances (net of Policy Fees) - Insurance1,929,802 1,332,504 
Other Non-Cash Amounts97,174 69,461 
Cash Flows Due to Changes in Operating Assets and Liabilities:
Reinsurance Transactions and Acquisitions, Net of Cash Provided - Insurance652,163 263,170 
Change in Premiums, Notes Receivable and Reinsurance Recoverable, Net of Reinsurance Premiums Payable - Insurance 1,056,920 (16,926)
Change in Deferred Policy Acquisition Costs - Insurance (351,746)(244,503)
Change in Policy Liabilities and Accruals, Net - Insurance (260,361)(113,745)
Change in Consolidation 77,519 — 
Change in Due from / to Affiliates(270,892)109,539 
Change in Other Assets(441,937)354,029 
Change in Accrued Expenses and Other Liabilities1,658,023 (308,920)
Investments Purchased - Asset Management and Strategic Holdings(21,360,831)(19,797,968)
Proceeds from Investments - Asset Management and Strategic Holdings21,343,106 12,118,149 
Net Cash Provided (Used) by Operating Activities4,885,275 (4,572,009)
Investing Activities
Purchases of Fixed Assets(43,768)(61,762)
Investments Purchased - Insurance(39,519,739)(13,862,413)
Proceeds from Investments - Insurance 27,874,362 10,308,946 
Other Investing Activities, Net - Insurance13,749 (3,915)
Net Cash Provided (Used) by Investing Activities(11,675,396)(3,619,144)
Financing Activities
Series C Mandatory Convertible Preferred Stock Dividends— (34,499)
Common Stock Dividends(301,322)(275,743)
Distributions to Redeemable Noncontrolling Interests(10,405)(1,785)
Contributions from Redeemable Noncontrolling Interests624,121 69,997 
Distributions to Noncontrolling Interests(4,038,461)(3,737,866)
Contributions from Noncontrolling Interests3,392,401 7,404,393 
2024 GA Acquisition - Cash consideration (See Note 1)(2,622,230)— 
Net Delivery of Common Stock (Equity Incentive Plans) (92,946)(31,755)
Repurchases of Common Stock— (272,275)
Proceeds from Debt Obligations13,870,893 8,711,285 
Repayment of Debt Obligations(11,969,531)(5,815,835)
Financing Costs Paid(13,871)(11,220)
Additions to Contractholder Deposit Funds - Insurance15,290,576 7,527,948 
Withdrawals from Contractholder Deposit Funds - Insurance(11,264,240)(8,096,042)
Reinsurance Transactions, Net of Cash Provided - Insurance48,109 79,903 
Other Financing Activity, Net - Insurance(807,024)10,798 
Net Cash Provided (Used) by Financing Activities2,106,070 5,527,304 
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 Six Months Ended June 30,
20242023
Effect of exchange rate changes on cash, cash equivalents and restricted cash(54,298)27,197 
Net Increase/(Decrease) in Cash, Cash Equivalents and Restricted Cash$(4,738,349)$(2,636,652)
Cash, Cash Equivalents and Restricted Cash, Beginning of Period20,808,120 13,385,370 
Cash, Cash Equivalents and Restricted Cash, End of Period$16,069,771 $10,748,718 
Cash, Cash Equivalents and Restricted Cash are comprised of the following:
Beginning of the Period
Asset Management and Strategic Holdings
Cash and Cash Equivalents$8,393,892 $6,705,325 
Restricted Cash and Cash Equivalents116,599 253,431 
Total Asset Management and Strategic Holdings8,510,491 6,958,756 
Insurance
Cash and Cash Equivalents$11,954,675 $6,118,231 
Restricted Cash and Cash Equivalents342,954 308,383 
Total Insurance12,297,629 6,426,614 
Cash, Cash Equivalents and Restricted Cash, Beginning of Period$20,808,120 $13,385,370 
End of the Period
Asset Management and Strategic Holdings
Cash and Cash Equivalents$7,829,321 $5,885,308 
Restricted Cash and Cash Equivalents168,888 102,620 
  Total Asset Management and Strategic Holdings7,998,209 5,987,928 
Insurance
Cash and Cash Equivalents$7,710,857 $4,421,172 
Restricted Cash and Cash Equivalents360,705 339,618 
  Total Insurance8,071,562 4,760,790 
Cash, Cash Equivalents and Restricted Cash, End of Period$16,069,771 $10,748,718 
 

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KKR & CO. INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (CONTINUED)
(Amounts in Thousands)
 Six Months Ended June 30,
 20242023
Supplemental Disclosures of Cash Flow Information  
Payments for Interest$1,482,365 $1,229,610 
Payments for Income Taxes$374,725 $598,252 
Payments for Operating Lease Liabilities$32,181 $28,896 
Supplemental Disclosures of Non-Cash Investing and Financing Activities
Non-Cash Contribution from Noncontrolling Interests$3,879 $— 
Debt Obligations - Net Gains (Losses), Translation and Other$380,456 $(437,029)
Right-of-Use Assets obtained in Exchange for new Operating Lease Liabilities$— $17,167 
Investments Acquired through Reinsurance Agreements$11,393,248 $788,095 
Contractholder Deposit Funds Acquired through Reinsurance Agreements$2,039,960 $43,968 
Change in Consolidation
Investments - Asset Management and Strategic Holdings$982,263 $(126,889)
Investments - Insurance$— $(93,545)
Other Assets$15,285 $— 
Accrued Expenses and Other Liabilities$6,923 $(103)
Noncontrolling Interests$1,067,974 $(165,607)
Redeemable Noncontrolling Interests$— $(27,821)
 
See notes to financial statements.

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KKR & CO. INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
(All Amounts in Thousands, Except Share and Per Share Data, and Except Where Noted)

1. ORGANIZATION
KKR & Co. Inc. (NYSE: KKR), through its subsidiaries (collectively, "KKR"), is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of The Global Atlantic Financial Group LLC ("TGAFG" and, together with its insurance companies and other subsidiaries, "Global Atlantic").
KKR & Co. Inc. is the parent company of KKR Group Co. Inc., which in turn owns KKR Group Holdings Corp., which is the general partner of KKR Group Partnership L.P. ("KKR Group Partnership"). KKR & Co. Inc. both indirectly controls KKR Group Partnership and indirectly holds Class A partner interests in KKR Group Partnership ("KKR Group Partnership Units") representing economic interests in KKR's business. As of June 30, 2024, KKR & Co. Inc. held indirectly approximately 99.2% of the KKR Group Partnership Units. The remaining balance is held indirectly by KKR current and former employees through restricted holdings units representing an ownership interest in KKR Group Partnership Units, which may be exchanged for shares of common stock of KKR & Co. Inc. ("exchangeable securities"). As limited partner interests, these KKR Group Partnership Units are non-voting and do not entitle anyone other than KKR to manage its business and affairs. KKR Group Partnership also has outstanding limited partner interests that provide for a carry pool provided by KKR Associates Holdings L.P. ("Associates Holdings").
On January 2, 2024, KKR acquired the remaining minority interests of Global Atlantic held by third party co-investors and Global Atlantic employees in exchange for cash and securities exchangeable for shares of KKR & Co. Inc. common stock (the “2024 GA Acquisition”). The purchase price paid by KKR was approximately $2.6 billion in cash and approximately $41 million in securities exchangeable for shares of KKR & Co. Inc. common stock. Global Atlantic was consolidated prior to January 2, 2024 and consequently, this transaction was accounted for as an equity transaction. At the time of the 2024 GA Acquisition, the carrying value of the noncontrolling interests held by third party co-investors and Global Atlantic employees in Global Atlantic was lower than the purchase price paid by KKR, which was determined by excluding unrealized losses on its available-for-sale portfolio and consistent with the calculation of the purchase price paid by KKR to acquire Global Atlantic in 2021. As such, this transaction resulted in a decrease in KKR & Co. Inc. Stockholders’ Equity.
References to "KKR" in these financial statements refer to KKR & Co. Inc. and its subsidiaries, including Global Atlantic, unless the context requires otherwise, especially in sections where "KKR" is intended to refer to the asset management and strategic holdings businesses only. References in these financial statements to "principals" are to KKR's current and former employees who held interests in KKR's business through KKR Holdings prior to the Reorganization Mergers (as defined below). References to "Global Atlantic" in these financial statements includes the insurance companies and other subsidiaries of Global Atlantic, which are consolidated by KKR.
Reorganization Agreement
On October 8, 2021, KKR entered into a Reorganization Agreement (the "Reorganization Agreement") with KKR Holdings L.P. ("KKR Holdings"), KKR Management LLP (which holds the sole outstanding share of Series I preferred stock), Associates Holdings, and the other parties thereto. Pursuant to the Reorganization Agreement, the parties agreed to undertake a series of integrated transactions to effect a number of transformative structural and governance changes, some of which were completed on May 31, 2022, and other changes to be completed in the future. On May 31, 2022, KKR completed the merger transactions ("Reorganization Mergers") contemplated by the Reorganization Agreement pursuant to which KKR acquired KKR Holdings (which changed its name to KKR Group Holdings L.P.) and all of the KKR Group Partnership Units held by it.
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Pursuant to the Reorganization Agreement, the following transactions will occur in the future on the Sunset Date (as defined below):
i.the control of KKR & Co. Inc. by KKR Management LLP and the Series I Preferred Stock held by it will be eliminated,
ii.the voting rights for all common stock of KKR & Co. Inc., including with respect to the election of directors, will be established on a one vote per share basis, and
iii.KKR will acquire control of Associates Holdings, the entity providing for the allocation of carry proceeds to KKR employees, also known as the carry pool.
The “Sunset Date” will be the earlier of (i) December 31, 2026 and (ii) the six-month anniversary of the first date on which the death or permanent disability of both Mr. Henry Kravis and Mr. George Roberts (collectively, "Co-Founders") has occurred (or any earlier date consented to by KKR Management LLP in its sole discretion). In addition, KKR Management LLP agreed not to transfer its ownership of the sole share of Series I Preferred Stock, and, the changes to occur effective on the Sunset Date are unconditional commitments of the parties to the Reorganization Agreement.
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