KKR & Co. Inc. (KKR) on Thursday reported record annual financial results for 2025, characterized by peak figures in capital raised and fee-related earnings, while simultaneously announcing a definitive agreement to acquire Arctos Partners.
The New York-based investment giant posted fourth-quarter fee related earnings of $1.0 billion, or $1.08 per adjusted share, representing a 15% increase year-over-year. For the full year, FRE reached $3.7 billion. Total operating earnings, which the firm describes as its most durable and recurring earnings stream rose 17% in the quarter to $1.3 billion, or $1.42 per adjusted share.
Strategic Move into Sports Investing
The acquisition of Arctos Partners, a premier institutional investor in professional sports franchises with $15 billion in assets under management. KKR plans to integrate Arctos into a newly established business unit, KKR Solutions, which will serve as a platform for a scaled multi-asset class secondaries business.
Arctos has created a distinctive and scaled platform across sports investing and capital solutions for asset managers, noting that the team brings extensive experience in secondaries, an area of “significant long-term opportunity.
Record Asset Growth and Deployment
Total AUM reached $744 billion as of December 31, 2025, up 17%.The firm saw a record $129 billion in new capital raised during 2025, with $28 billion coming in the final quarter.
Investment activity also hit a historic peak, with $32 billion of capital invested in the fourth quarter alone the most active quarter in KKR’s history bringing the annual total to $95 billion. Deployment was particularly active in asset-based finance, traditional private equity in Europe and the Americas, and Asia infrastructure.
Segment Performance and Dividend Increase
Private Equity: AUM grew to $229 billion, with the traditional private equity portfolio appreciating 14% over the year.
- Real Assets: AUM rose 16% to $192 billion, driven by inflows into infrastructure and real estate.
- Credit and Liquid Strategies: Remained the largest segment by AUM at $322 billion, bolstered by Global Atlantic inflows and CLO issuances.
- Insurance: Global Atlantic AUM reached $219 billion, contributing $268 million in insurance operating earnings for the quarter.
Reflecting its strong financial position, KKR declared a regular dividend of $0.185 per share for the quarter. Furthermore, the firm signaled confidence in its long-term trajectory by announcing plans to increase its annualized dividend from $0.74 to $0.78 per share, effective with the Q1 2026 results.
The firm is approaching its 50th anniversary on May 1st, with management stating they have “never been more confident” in the firm’s long-term positioning. KKR currently maintains an ‘A’ rating from both S&P and Fitch.
