KKR & Co. Inc. (NYSE:KKR) Q4 2023 Earnings Conference Call February 6, 2024 10:00 AM ET

Corporate Participants

Craig Larson - Investor Relations

Scott Nuttall - Co-Chief Executive Officer

Rob Lewin - Chief Financial Officer

Conference Call Participants

Craig Siegenthaler - Bank of America

Alex Blostein - Goldman Sachs

Glenn Schorr - Evercore

Bill Katz - TD Cowen

Brian McKenna - JMP

Finian O'Shea - Wells Fargo Securities

Patrick Davitt - Autonomous Research

Steven Chubak - Wolfe Research

Brian Bedell - Deutsche Bank

Benjamin Budish - Barclays

Mike Brown - KBW

Michael Cyprys - Morgan Stanley

Operator

Ladies and gentlemen, thank you for standing by. Welcome to KKR's Fourth Quarter 2023 Earnings Conference Call. During today's presentation, all parties will be in a listen-only mode. Following the management's prepared remarks, the conference will be opened for questions [Operator Instructions]. Please note this conference is being recorded.

I'll now turn the call over to Craig Larson, Partner, Head of Investor Relations for KKR. Craig, please go ahead.

Craig Larson

Thank you, operator. Good morning, everyone. Welcome to our fourth quarter 2023 earnings call. This morning, as usual, I'm joined by Rob Lewin, our Chief Financial Officer; and Scott Nuttall, our co-Chief Executive Officer.

We'd like to remind everyone that we'll refer to non-GAAP measures on the call, which are reconciled to GAAP figures in our press release, which is available on the Investor Center section at kkr.com. And as a reminder, we report our segment numbers on an adjusted share basis.

This call will contain forward-looking statements, which do not guarantee future events or performance. Please refer to our earnings release as well as our SEC filings for cautionary factors about these statements.

And as a reminder, our earnings release in our financial reporting for Q4 is consistent with past quarters beginning in Q1 of 2024, our earnings release will reflect the segment and financial metric changes we announced on November the 29th.

Turning now to our numbers for the quarter, we're pleased to be reporting strong fourth quarter results with fee-related earnings per share of $0.76. This is a record figure for KKR up 21% from Q3 2023 as well as Q4 of 2022. After tax distributable earnings came in at $1 per share. New capital raised in the quarter was $31 billion, which is also particularly strong. So overall, a really solid quarter for us.

I'll begin this morning by walking through our financials in a little more detail. So management fees in the quarter are 785 million. That's up 3.4% compared to just last quarter, with growth across all of our business lines. And comparing full year '23 to 2022, management fees grew 14%. We reported double-digit percentage annual growth in our management fees for several consecutive years now. Net transaction and monitoring fees were 264 million in the quarter. Capital markets transaction fees in particular were quite strong in Q4 with 225 million in revenue that was driven by an increase in investment activity and financing transactions at several of our PE and core PE portfolio companies.