KKR 2Q performance misses analysts' estimates

KKR 2Q profit slides on lower appreciation in the value of its private equity funds

Associated Press

NEW YORK (AP) -- KKR's second-quarter net income tumbled 90 percent as the investment firm saw lower appreciation in the value of its private equity funds and shares slid in premarket trading Friday.

For the period ended June 30, KKR earned $15.1 million, or 5 cents per unit. That's down from $146.3 million, or 58 cents per share, in the prior-year period.

Excluding one-time charges, earnings were 18 cents per unit, which still fell short of Wall Street expectations. Revenue increased 48 percent to $166.4 million, helped in part by higher transaction fees. But that missed the $238.6 million that Wall Street predicted.

KKR's private equity portfolio appreciated 0.9 percent, down from 5.1 percent appreciation a year earlier.

Shares of KKR declined $1.15, or 5.5 percent, to $19.79 before the market open.

The company declared a second-quarter distribution of 42 cents per unit. It will be paid on Aug. 20 to unit holders of record on Aug. 5.

KKR & Co. had $83.5 billion in assets under management at quarter's end.

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