KKR Posts Record $1.6B Q3 ANI, AUM Tops $804 Billion

KKR & Co. Inc. (NYSE: KKR) reported third quarter 2026 results on November 9, 2026, posting record adjusted net income of $1.6 billion, or $1.78 per adjusted share, up 29% year-over-year. Fee Related Earnings reached $1.3 billion, or $1.42 per adjusted share, up 27%, while Total Operating Earnings hit $1.7 billion, or $1.88 per adjusted share, up 25%. Assets Under Management climbed to $804 billion, an 11% year-over-year increase. The company said the per-share figures across FRE, TOE and ANI were all records on both a quarterly and trailing twelve-month basis.

Context — Why KKR's Record Quarter Matters Now

KKR's third quarter results land as the firm extends a multi-quarter run of record operating performance. The company said this is the second consecutive quarter in which it reported record Fee Related Earnings, Total Operating Earnings and Adjusted Net Income per share, both quarterly and on a trailing twelve-month basis.

The trailing twelve-month figures reinforce the scale of the run-rate. FRE over the last twelve months reached $4.5 billion, or $4.96 per adjusted share, up 26% year-over-year. TOE over the same period was $5.9 billion, or $6.46 per adjusted share, up 23%, and ANI reached $5.4 billion, or $5.92 per adjusted share, up 18%.

The quarter's headline GAAP result also improved. Net income attributable to KKR common stockholders was $1.1 billion for the quarter and $2.1 billion year-to-date, compared with $860 million and $1.1 billion in the prior-year periods, respectively.

Capital formation remains the engine behind the growth. KKR raised $25 billion of new capital in the quarter and $116 billion over the trailing twelve months, while deploying $20 billion in the quarter and $98 billion over the LTM. The company said it expects to return more than $40 billion to clients in 2026, exceeding its previous annual record by more than 50%.

Data — The Numbers Behind the Quarter

Management fees, the largest revenue line in the asset management segment, rose 13% year-over-year to $1.2 billion in the quarter from $1.06 billion. Fee Related Performance Revenues jumped to $326 million from $73 million a year earlier, a roughly 4.5x increase, reflecting a reporting change the company disclosed: beginning in the second quarter of 2026, KKR began reporting realized performance fees from its K-Series private equity vehicles within Fee Related Performance Revenues rather than Realized Performance Income.

Metric	3Q'25	3Q'26	Change
Fee Related Earnings	$1.03B	$1.32B	+27%
Total Operating Earnings	$1.40B	$1.74B	+25%
Adjusted Net Income	$1.27B	$1.65B	+29%
ANI per Adjusted Share	$1.41	$1.78	+26%
Assets Under Management	$723B	$804B	+11%

Insurance Operating Earnings fell to $230 million from $305 million, which the company attributed to a $26 million charge tied to Global Atlantic's annual actuarial assumption review and related items. Excluding that charge, Insurance Operating Earnings would have been $257 million. Strategic Holdings Operating Earnings rose to $192 million from $58 million.

Private equity AUM reached $256 billion, up 15% year-over-year, with the traditional private equity portfolio appreciating 7% over the trailing twelve months. Gross unrealized carried interest stood at $9.7 billion as of September 30, 2026.

Analysis — What It Means for Asset Manager Equities

KKR's operating use is the standout. Fee Related Earnings grew 27% year-over-year against 24% growth in management fees, and the FRE margin expanded to 70% on the LTM basis from 69% a year earlier, indicating that revenue growth is outpacing the compensation and expense base.

The composition of earnings also matters for how investors may value the franchise. The company said 84% of segment earnings came from the more durable and recurring portions — Fee Related Earnings, Insurance Operating Earnings and Strategic Holdings Operating Earnings — rather than from realized performance and investment income, which are inherently lumpier.

A counter-argument worth weighing: the quarter benefited from a large one-time swing in fee related performance revenues tied to a reporting reclassification, which flatters the year-over-year comparison for that line. Net Realized Performance Income, meanwhile, fell to $151 million from $233 million a year earlier, so the underlying carry realization picture is mixed.

Capital return is running in parallel. From June 30 through November 4, KKR used $567 million to repurchase and retire 6.2 million shares at an average price of $92. On November 6, the board approved a $500 million increase to the repurchase program, and a regular dividend of $0.195 per share was declared for the quarter. The buyback authorization and the pending USI sale — which the company said should generate roughly $2.0 billion of ANI in the fourth quarter — are the two levers most likely to shape near-term share count and earnings optics.

Outlook — What to Watch Next

KKR's fourth-quarter results will be the first to include the expected closing of the USI Insurance Services sale, which the company announced on August 31 and expects to complete in the fourth quarter of 2026. The company said the transaction, subject to closing conditions, should contribute approximately $2.0 billion of ANI, or over $2.00 per share. There can be no assurance as to whether or when the deal closes.

The company's 2026 capital return guidance is the other marker. KKR said it expects to return more than $40 billion to clients this year, which would exceed its prior annual record by more than 50%.

On the balance sheet side, $75 billion of committed capital is not yet paying fees, with a weighted average management fee rate of roughly 90 basis points that begins accruing once the capital is invested or enters its investment period. Of $415 billion in carry-eligible AUM, $332 billion sits above cost and is accruing carry. The company did not disclose specific timing for when the un-fee-paying capital converts.

Frequently Asked Questions

What does KKR's record adjusted net income mean for retail investors?

Adjusted net income is a non-GAAP measure KKR uses to show earnings excluding certain items. The company reported $1.65 billion, or $1.78 per adjusted share, in the third quarter, up 29% year-over-year. For retail investors holding KKR stock, the figure matters mainly as a gauge of the firm's recurring fee-based earnings power, since ANI includes Fee Related Earnings, Insurance Operating Earnings and Strategic Holdings Operating Earnings alongside realized investment gains.

Why did KKR's Insurance Operating Earnings fall in the third quarter?

Insurance Operating Earnings fell to $230 million from $305 million a year earlier. KKR said the decline included a $26 million charge related to Global Atlantic's annual actuarial assumption review and other related items. Excluding that charge, Insurance Operating Earnings would have been $257 million. The company did not break out the specific assumptions changed in the review.

How does KKR's buyback activity affect its per-share metrics?

KKR repurchased and retired 6.2 million shares for $567 million between June 30 and November 4, at an average price of $92, and raised its repurchase authorization by $500 million on November 6. A smaller share count lifts per-share measures such as FRE, TOE and ANI per adjusted share, which the company said all set records in the quarter. The company did not disclose a target pace for future repurchases.

Bottom Line

KKR's record fee-based earnings and 11% AUM growth reinforce its positioning as a scaled alternative asset manager, with the pending USI sale set to test that momentum next quarter.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.