A global alternative asset manager that invests other people's money across private equity, credit, and infrastructure, and sells retirement and life insurance under the Global Atlantic brand it acquired in 2021. Three Bear Stearns colleagues—Jerome Kohlberg, Henry Kravis, and George Roberts—founded the firm in 1976, famously hatching the idea at a New York City restaurant called Rose and Joe's; the name comes from their surnames.
Fee-related earnings rose 37% to $1.2B as management fees and K-Series performance revenues climbed.
reached a new quarterly high. rose 12.5% to $5.7B and climbed 37.3% to $700.5M, driven by a 37% increase in fee-related earnings to $1.2B from higher management fees and a reclassification of K-Series performance revenues. The earnings base is shifting toward more predictable fee streams even as realized gains from asset sales nearly doubled.
Key takeaways
Fee Related Earnings rose 37% to $1.2B, driven by a $254M increase in management fees from new capital raised and the Arctos acquisition, and a $201M increase in Fee Related Performance Revenues from reclassifying K-Series Private Equity performance revenues.
Realized Performance Income nearly doubled to $848M, primarily from on sales of OneStream Software and Flow Control Group by Americas Fund XII.
Total reached $796B, up $39B from March 2026, fueled by $16B from the Arctos acquisition, $34B in new capital raised, and $10B in investment value appreciation.
Section summaries
Management's Discussion and Analysis
KKR's Q2 2026 fee-related earnings surged 37% YoY to $1.2B, driven by higher management fees and a reclassification of K-Series performance revenues.
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rose 37% to $1.2B, driven by a $254M increase in management fees from new capital raised and the Arctos acquisition, and a $201M increase in Fee Related Performance Revenues due to reclassifying K-Series Private Equity performance revenues.
Insurance Operating Earnings were nearly flat at $288M, as a $165M increase in Net Investment Income was largely offset by a $142M rise in Net Cost of Insurance from new business growth and higher crediting rates.
Earnings rose to $67M from $29M, boosted by a $30M realized gain from the partial sale of Viridor Limited and higher dividends from USI Insurance Services.
was $3,252.5M, up 641.3% and positive for a tenth straight quarter since the Q3 2023 turn.
What changed
Capital allocation-based income remained absent for a sixth straight quarter, confirming the shift away from the large carry swings that defined 2024 results.
earnings were disclosed at $67M, up from $48M in Q1 2026, after being omitted from MD&A throughout 2025.
of $3,252.5M extended the positive run to ten quarters, up from $1,746.7M in Q1 2026 and well above the $438.8M in Q2 2025.
disclosure remained absent for a twelfth consecutive report since the $36.9B year-end 2021 figure.
What to watch
Q3 2026 to see if the $1.2B run rate holds after the K-Series reclassification boost.
Q3 2026 capital allocation-based income to see if the carry swing returns after six quarters without one.
Q3 2026 direction after $3,252.5M to confirm the ten-quarter positive run extends.
2026 disclosure after twelve reports omitted it against the $36.9B year-end 2021 figure.
Asset Management Earnings increased 41% to $1.6B, as Realized Performance Income nearly doubled to $848M, primarily from on sales of OneStream Software and Flow Control Group by Americas Fund XII.
Insurance Operating Earnings were nearly flat at $288M, as a $165M increase in Net Investment Income from higher and portfolio yields was largely offset by a $142M rise in Net Cost of Insurance due to new business growth and higher crediting rates.
Earnings rose to $67M from $29M, boosted by a $30M realized gain from the partial sale of Viridor Limited and higher dividends from USI Insurance Services.
Total reached $796B, up $39B from March 2026, fueled by $16B from the Arctos acquisition, $34B in new capital raised, and $10B in investment value appreciation.
grew 40% to $1.5B, reflecting higher Total Earnings, partially offset by increased from recent note issuances.
Quantitative and Qualitative Disclosures About Market Risk
We believe there were no material changes to our market risks during the three months ended June 30, 2026. For a discussion of our market risks in general, please refer to our Annual Report on Form 10-K for the year ended December 31, 2025. In addition, for a discussion of curre…
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We believe there were no material changes to our market risks during the three months ended June 30, 2026. For a
discussion of our market risks in general, please refer to our Annual Report on Form 10-K for the year ended December 31,
2025. In addition, for a discussion of current risks, uncertainties, and other market and economic conditions, see
“Management's Discussion and Analysis of Financial Condition and Results of Operations—Business Environment.”
For a discussion of KKR's legal proceedings, see the section entitled “Legal Proceedings” appearing in Note 24 “Commitments and Contingencies” in our financial statements included elsewhere in this report, which is incorporated herein by reference.
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For a discussion of KKR's legal proceedings, see the section entitled “Legal Proceedings” appearing in Note 24
“Commitments and Contingencies” in our financial statements included elsewhere in this report, which is incorporated herein
by reference.
Other than as set forth in “Management's Discussion and Analysis of Financial Condition and Results of Operations— Business Environment” in this report, there were no material changes to the risk factors disclosed in our Annual Report.
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Other than as set forth in “Management's Discussion and Analysis of Financial Condition and Results of Operations—
Business Environment” in this report, there were no material changes to the risk factors disclosed in our Annual Report.