KKR Posts Record Earnings as Fundraising Hits $133B
Operating earnings jumped 29 percent annually, while net income also surged 40 percent
By Julia Echikson July 30, 2026 3:10 pm
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Even as the private equity industry grapples with elevated interest rates and a growing backlog of unsold portfolio companies amid mounting concerns over artificial intelligence’s impact on the software sector, KKR reported record earnings during the second quarter of 2026.
Fee-related earnings rose 37 percent annually to $1.21 billion, thanks in part to management fees being up more than 25 percent, while total operating earnings jumped by 29 percent compared to last year to $1.53 billion — the highest quarterly total in the firm’s 50-year history.
Revenue jumped to $5.73 billion, up from $5.09 billion a year prior. Quarterly net income increased nearly 40 percent annually to $660.1 million.
“Our industry is increasingly K-shaped,” Co-CEO Scott Nuttall said during the company’s earnings call Thursday. “Most of the external focus is going to be on the unhappy part of the K. We find ourselves on the happy part of the K.”
KKR sold stakes in eight companies, including Japanese semiconductor manufacturing company Kokusai Electric and Korean shipbuilder HD Hyundai Marine Solution. Although KKR’s opportunistic real estate portfolio posted a 1 percent gross loss in the second quarter, it generated a 1 percent gross return over the past 12 months.
KKR raised $34 billion in new capital during the quarter, bringing its 12-month fundraising total through June to a record $133 billion.
The investor is making inroads in AI infrastructure, having committed and invested over $75 billion across digital infrastructure and power to date. In the coming decade, company executives said they envision the infrastructure build-out costing trillions of dollars.
In June, it launched a $10 billion company to provide the infrastructure needs for the build-out of data centers. Other partners in the venture, called Helix Digital Infrastructure, include electricity generation company Vistra, Kuwait Investment Authority, and chipmaker giant Nvidia.
“We would provide that one-stop shop,” Nuttall said. “This is incremental, and a continued evolution as it relates to the opportunities that we see in the massive capex needs.”
Beyond AI, KKR in May closed the purchase of Arctos Partners, a leading sports investment firm, in a deal valued at $1.4 billion. A month later, it raised $6.2 billion to create its first fund.
At the close of the second quarter, unspent capital stood at $143 billion. Assets under management increased by 16 percent year-over-year to $796 billion.
Despite the gains, Wall Street remains concerned. KKR’s stock is down nearly 24 percent year-to-date.
Julia Echikson can be reached at jechikson@commercialobserver.com.
