KKR Holds 7% of Portfolio in Software Assets Amid AI Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy KKR?
Source: Newsfilter
- Portfolio Review: KKR's co-CEO stated that the firm has assessed its portfolio over the past two years, revealing that approximately 7% is allocated to software assets, reflecting a strategic response to market volatility.
- Dry Powder Availability: KKR currently holds $118 billion in dry powder, which is multiples of any potential losses related to AI exposure, showcasing the firm's robust financial position amid market uncertainties.
- Opportunity Identification: Nuttall indicated that KKR views AI as an 'opportunity, threat, or question mark,' and believes that the current market dislocation presents strong return opportunities, highlighting the firm's agility in risk management and investment strategy.
- Investor Communication: During a recent conference call, KKR discussed market conditions and investment strategies with investors, emphasizing the importance of seeking return opportunities in uncertain environments, further solidifying its leadership position in the investment community.
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Analyst Views on KKR
Wall Street analysts forecast KKR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KKR is 159.67 USD with a low forecast of 145.00 USD and a high forecast of 176.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
9 Buy
0 Hold
0 Sell
Strong Buy
Current: 104.770
Low
145.00
Averages
159.67
High
176.00
Current: 104.770
Low
145.00
Averages
159.67
High
176.00
About KKR
KKR & Co. Inc. is a global investment firm that offers alternative asset management as well as capital markets and insurance solutions. The Company’s segments include Asset Management, Insurance and Strategic Holdings. Asset Management segment offers a range of investment management services to investment funds, vehicles and accounts and provides capital markets services to portfolio companies and third parties. Asset Management segment includes five business lines: Private Equity, Real Assets, Credit and Liquid Strategies, Capital Markets and Principal Activities. Insurance segment is operated by Global Atlantic, which is a United States retirement and life insurance company that provides a suite of protection, legacy and savings products and reinsurance solutions to clients across individual and institutional markets. Global Atlantic offers individuals fixed-rate annuities and others. Strategic Holdings segment represents its participation in its core private equity strategy.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
KKR Holds 7% of Portfolio in Software Assets Amid AI Concerns
- Portfolio Review: KKR's co-CEO stated that the firm has assessed its portfolio over the past two years, revealing that approximately 7% is allocated to software assets, reflecting a strategic response to market volatility.
- Dry Powder Availability: KKR currently holds $118 billion in dry powder, which is multiples of any potential losses related to AI exposure, showcasing the firm's robust financial position amid market uncertainties.
- Opportunity Identification: Nuttall indicated that KKR views AI as an 'opportunity, threat, or question mark,' and believes that the current market dislocation presents strong return opportunities, highlighting the firm's agility in risk management and investment strategy.
- Investor Communication: During a recent conference call, KKR discussed market conditions and investment strategies with investors, emphasizing the importance of seeking return opportunities in uncertain environments, further solidifying its leadership position in the investment community.
See More
KKR Q4 2025 Earnings Report Analysis
- Earnings Growth: KKR's total operating earnings for Q4 2025 grew 17% year-over-year, with fee-related earnings up 15%, yet the results fell short of Wall Street expectations, causing a 2.3% dip in premarket trading.
- Earnings Per Share Performance: The adjusted EPS for Q4 was $1.12, trailing the analyst estimate of $1.14, and down from $1.41 in Q3 and $1.32 in Q4 2024, indicating pressure on profitability.
- Assets Under Management: As of Q4 2025, KKR's assets under management reached $744 billion, an increase from $723 billion at the end of Q3, but still below the Visible Alpha consensus of $748 billion, reflecting heightened market competition.
- Capital Raising and Investment: The company raised $28 billion in new capital during the quarter, a significant drop from $43 billion in the prior quarter, while investing $32 billion, indicating a cautious approach to capital deployment that may impact future growth potential.
See More
KKR Acquires Arctos Partners for $1.4B Plus Future Equity
- Acquisition Deal: KKR announced the acquisition of Arctos Partners for $1.4 billion, with potential future equity payments of up to $550 million, a move expected to strengthen KKR's market position in private equity.
- Financial Performance: KKR shows strong performance in the high-yield bond market, maintaining robust valuation and financial results despite macroeconomic risks, demonstrating the company's resilience in uncertain environments.
- Investor Confidence: At the Goldman Sachs 2025 U.S. Financial Services Conference, KKR presented a strong value case, capturing investor attention and indicating market confidence in its future growth potential.
- Rating Upgrade: Following the acquisition and positive financial outlook, KKR's rating has been upgraded, reflecting analysts' optimism regarding its long-term growth prospects.
See More
KKR Reports Decline in Q4 Earnings
- Earnings Overview: KKR & Co. Inc. reported fourth-quarter earnings of $1.105 billion, or $1.16 per share, reflecting a decline from last year's $1.125 billion and $1.18 per share, indicating a slight dip in profitability.
- Adjusted Earnings: Excluding items, KKR's adjusted earnings were $1.006 billion, or $1.12 per share, showing resilience in a complex market environment despite a slight decrease in adjusted figures.
- Revenue Surge: The company's revenue surged 76.2% year-over-year to $5.739 billion from $3.258 billion last year, highlighting strong performance in revenue generation likely driven by successful portfolio management.
- Market Reaction: Despite significant revenue growth, the decline in earnings may raise investor concerns about the company's future profitability, potentially impacting its stock performance amid heightened market volatility.
See More
KKR Reports Q4 Income Rise Amid Lower Transaction Fees
- Record Capital Raise: KKR raised $129 billion in new capital in 2025, marking a historic high driven by strong inflows into its credit and insurance businesses, which increased total assets under management to $744 billion, showcasing the firm's competitive edge in a challenging fundraising environment.
- Management Fee Growth: The firm reported a 24% year-over-year increase in management fee income for Q4, reaching $1.12 billion, indicating robust performance in managing client funds, although overall transaction fees declined, highlighting a diversification in revenue structure.
- Decline in Transaction Fees: KKR's capital markets unit experienced a 16.6% drop in transaction fees compared to the previous year, falling to $225.5 million, primarily due to changing market conditions affecting its ability to provide IPO and debt financing services, which may pose challenges for future revenue growth.
- Acquisition Announcement: KKR plans to acquire Arctos for $1.4 billion, a move that will enhance its capabilities in institutional investment and asset management solutions, further solidifying its market position and driving future growth potential.
See More
KKR to Acquire Arctos Partners for $1.4 Billion
- Transaction Overview: KKR has agreed to acquire private investment firm Arctos Partners for $1.4 billion, with initial consideration comprising $300 million in cash and $900 million in equity, expected to enhance key financial metrics per share immediately post-closing.
- Potential Upside: The deal includes up to $550 million in additional equity to be allocated by 2028 and subject to vesting through 2033, reflecting KKR's confidence in Arctos' long-term value.
- Market Entry: This acquisition provides KKR with a differentiated entry point into the sports franchise stakes sector, as Arctos is the only institutional investor approved for multiteam ownership across all five major U.S. leagues (NBA, NFL, MLB, NHL, MLS).
- Team Integration: Upon closing, Arctos' managing partners will join KKR, forming a new investing business called KKR Solutions, which will enhance KKR's capabilities in the multi-asset class secondaries market, showcasing strong cultural alignment and an entrepreneurial spirit.
See More
KKR Holds 7% of Portfolio in Software Assets Amid AI Concerns
- Portfolio Review: KKR's co-CEO stated that the firm has assessed its portfolio over the past two years, revealing that approximately 7% is allocated to software assets, reflecting a strategic response to market volatility.
- Dry Powder Availability: KKR currently holds $118 billion in dry powder, which is multiples of any potential losses related to AI exposure, showcasing the firm's robust financial position amid market uncertainties.
- Opportunity Identification: Nuttall indicated that KKR views AI as an 'opportunity, threat, or question mark,' and believes that the current market dislocation presents strong return opportunities, highlighting the firm's agility in risk management and investment strategy.
- Investor Communication: During a recent conference call, KKR discussed market conditions and investment strategies with investors, emphasizing the importance of seeking return opportunities in uncertain environments, further solidifying its leadership position in the investment community.
See More
KKR Q4 2025 Earnings Report Analysis
- Earnings Growth: KKR's total operating earnings for Q4 2025 grew 17% year-over-year, with fee-related earnings up 15%, yet the results fell short of Wall Street expectations, causing a 2.3% dip in premarket trading.
- Earnings Per Share Performance: The adjusted EPS for Q4 was $1.12, trailing the analyst estimate of $1.14, and down from $1.41 in Q3 and $1.32 in Q4 2024, indicating pressure on profitability.
- Assets Under Management: As of Q4 2025, KKR's assets under management reached $744 billion, an increase from $723 billion at the end of Q3, but still below the Visible Alpha consensus of $748 billion, reflecting heightened market competition.
- Capital Raising and Investment: The company raised $28 billion in new capital during the quarter, a significant drop from $43 billion in the prior quarter, while investing $32 billion, indicating a cautious approach to capital deployment that may impact future growth potential.
See More
KKR Acquires Arctos Partners for $1.4B Plus Future Equity
- Acquisition Deal: KKR announced the acquisition of Arctos Partners for $1.4 billion, with potential future equity payments of up to $550 million, a move expected to strengthen KKR's market position in private equity.
- Financial Performance: KKR shows strong performance in the high-yield bond market, maintaining robust valuation and financial results despite macroeconomic risks, demonstrating the company's resilience in uncertain environments.
- Investor Confidence: At the Goldman Sachs 2025 U.S. Financial Services Conference, KKR presented a strong value case, capturing investor attention and indicating market confidence in its future growth potential.
- Rating Upgrade: Following the acquisition and positive financial outlook, KKR's rating has been upgraded, reflecting analysts' optimism regarding its long-term growth prospects.
See More
KKR Reports Decline in Q4 Earnings
- Earnings Overview: KKR & Co. Inc. reported fourth-quarter earnings of $1.105 billion, or $1.16 per share, reflecting a decline from last year's $1.125 billion and $1.18 per share, indicating a slight dip in profitability.
- Adjusted Earnings: Excluding items, KKR's adjusted earnings were $1.006 billion, or $1.12 per share, showing resilience in a complex market environment despite a slight decrease in adjusted figures.
- Revenue Surge: The company's revenue surged 76.2% year-over-year to $5.739 billion from $3.258 billion last year, highlighting strong performance in revenue generation likely driven by successful portfolio management.
- Market Reaction: Despite significant revenue growth, the decline in earnings may raise investor concerns about the company's future profitability, potentially impacting its stock performance amid heightened market volatility.
See More
KKR Reports Q4 Income Rise Amid Lower Transaction Fees
- Record Capital Raise: KKR raised $129 billion in new capital in 2025, marking a historic high driven by strong inflows into its credit and insurance businesses, which increased total assets under management to $744 billion, showcasing the firm's competitive edge in a challenging fundraising environment.
- Management Fee Growth: The firm reported a 24% year-over-year increase in management fee income for Q4, reaching $1.12 billion, indicating robust performance in managing client funds, although overall transaction fees declined, highlighting a diversification in revenue structure.
- Decline in Transaction Fees: KKR's capital markets unit experienced a 16.6% drop in transaction fees compared to the previous year, falling to $225.5 million, primarily due to changing market conditions affecting its ability to provide IPO and debt financing services, which may pose challenges for future revenue growth.
- Acquisition Announcement: KKR plans to acquire Arctos for $1.4 billion, a move that will enhance its capabilities in institutional investment and asset management solutions, further solidifying its market position and driving future growth potential.
See More
KKR to Acquire Arctos Partners for $1.4 Billion
- Transaction Overview: KKR has agreed to acquire private investment firm Arctos Partners for $1.4 billion, with initial consideration comprising $300 million in cash and $900 million in equity, expected to enhance key financial metrics per share immediately post-closing.
- Potential Upside: The deal includes up to $550 million in additional equity to be allocated by 2028 and subject to vesting through 2033, reflecting KKR's confidence in Arctos' long-term value.
- Market Entry: This acquisition provides KKR with a differentiated entry point into the sports franchise stakes sector, as Arctos is the only institutional investor approved for multiteam ownership across all five major U.S. leagues (NBA, NFL, MLB, NHL, MLS).
- Team Integration: Upon closing, Arctos' managing partners will join KKR, forming a new investing business called KKR Solutions, which will enhance KKR's capabilities in the multi-asset class secondaries market, showcasing strong cultural alignment and an entrepreneurial spirit.
See More
