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During its latest earnings report, KKR leadership told investors the firm is being careful with how it puts money into artificial intelligence. While AI is a major theme for many large investment firms, KKR noted its current exposure to the sector is limited.
This cautious stance is a contrast to some rivals who are spending heavily on AI data centers and infrastructure. It suggests the firm is waiting for clearer entry points or more proven business models before committing large amounts of capital to the space. For now, KKR is relying on its shift toward steady fees and insurance income rather than chasing the AI trend.
Source: WSJ
KKR and German energy giant RWE have finished a 16 billion dollar deal to invest in renewable energy across the UK. This partnership focuses on building out green power infrastructure, a sector that requires the kind of massive, long-term funding that large investment firms are built to provide.
This move fits into the firm's strategy of owning more "real assets" like power plants and pipelines. These businesses are valuable because they generate steady, predictable cash over decades. For people who own the stock, this deal shows KKR can still put huge amounts of money to work even when the market for buying and selling entire companies is slow.
Source: Reuters
After KKR reported its November results, we updated our fair value and cut our quality score to 4.0. We changed our rating to Watch and reset our expectations for how much profit the firm makes on its investments. We have added the earnings from its strategic company holdings and the impact of one-time retroactive management fees to what we track. We also adjusted our forecast for how fast the money that earns the company fees must grow each year.
KKR and Diamondback Energy have agreed to buy the majority interest in Deep Blue Midland Basin, a company that manages produced water for oil and gas operations. This moves Deep Blue from being a joint venture with Five Point Infrastructure into a direct partnership between KKR and Diamondback.
This deal fits into KKR's strategy of owning essential infrastructure that generates steady cash. By partnering with a major driller like Diamondback, KKR secures a reliable customer for the water services, making the investment more stable than traditional oil and gas bets.
Source: Business Wire
KKR is working with a group of investors to acquire the remaining shares of Canopius, a specialty insurance and reinsurance firm. The group includes Samsung Fire & Marine Insurance and Korea Investment Corp, a large sovereign wealth fund. KKR already has a massive insurance presence through its Global Atlantic business. This move to consolidate ownership in Canopius shows the firm is continuing to lean into the insurance sector, which provides a steady stream of capital that KKR can then invest across its other funds.
Source: Business Wire
Management has a clear habit of setting conservative targets and then beating them, which makes their forecasts feel reliable. The business is currently outrunning expectations as it shifts toward more stable, fee-based profits.
| Expectation | |
|---|---|
| EPS | $3.58 |
| Revenue | $4.89B |