KKR Earnings: Firm Continues to Generate Solid Inflows

Key Morningstar Metrics for KKR

• Fair Value Estimate
  : $115.00
• Morningstar Rating
  : ★★★
• Morningstar Economic Moat Rating
  : Narrow
• Morningstar Uncertainty Rating
  : High

KKR KKR ended March 2026 with $614.8 billion in fee-earning assets, up 1.8% sequentially and 16.9% year over year. Fee-related earnings increased 23.6% year over year to $1.0 billion, with total operating earnings increasing 19.1% to $1.3 billion.

Why it matters: KKR continues to generate solid inflows, with its mix of alternative products benefiting from ongoing demand for non-traditional investment products.

• KKR picked up $27.8 billion from fundraising efforts during the first quarter. While this was below its quarterly run rate of $30.4 billion over the previous eight calendar quarters, it was better than the average March quarter fundraising of $21.3 billion over the past five years.
• KKR also deployed $21.8 billion during the quarter, which was on par with its quarterly run rate of $22.3 billion over the past two years and its better-than-average first-quarter deployments of $14.2 billion during the past five years.

The bottom line: Increased uncertainty about the equity and credit markets tied to fiscal, tariff, and monetary policies, as well as economic growth and increased concerns about the private credit market (and more recently the segment’s ties with the AI boom), have pressured the share prices of most alternative asset managers.

• As there was little in narrow-moat-rated KKR’s results that would alter our long-term view of the firm, we expect to leave our $115 per share fair value estimate in place.
• KKR’s shares are slightly to modestly undervalued relative to our fair value estimate. That said, the shares have seen a significant improvement since the selloff in early March, driven by heightened concerns about the private credit market.