Shareholders at global investment firm KKR are in line for bumper payouts after the firm posted record transaction fees in the fourth quarter and strong sales in its private equity division.
KKR generated $568.3m in the final three months of the year, with transaction fees in its capital markets division rising to $320m, up 66 per cent from $193m in the same period in 2020.
The sale of assets including a controlling interest in Indian hospital chain operator Max Healthcare, and a stake in Japan’s Kokusai Electric, also provided a boost to the US investment giant, as its private private equity portfolio rose 7% in the quarter.
Shareholders are now in line for major payouts as after-tax distributable earnings, the cash available for dividend payments, rose to a record $1.4 billion compared with $544.1 million a year earlier.
The payouts to shareholders will reach $1.59 per share, well above the average Wall Street analyst estimate of $1.21 per share, according to financial data provider Refinitiv.
Bosses also said the firm invested $23bn as it snapped up assets in the fourth quarter including the acquisition of Norwegian ship-owning company Ocean Yield.
The results from KKR reflect an uptick in earnings across the industry on the back of a blockbuster year for dealmaking which saw transactions hit record levels.
Rivals Blackstone and Carlyle similarly posted record profits in the fourth quarter of the year as they took advantage of market conditions to sell on assets for high returns.