Sunday, 6 November 2011

KKR Posts Lower Than Expected Loss for Q3 2011

As global equity markets tumbled, a lower-than-expected Q3 loss was reported by KKR & Co., a private equity firm, after the value of its private-equity holdings was written down by 8.5 percent. The company’s pre-tax economic net income was posted as a loss of $592.1 million, or 91 cents a share, from a profit $317.3 million, or 39 cents, a year earlier. However the company’s performance was better than the average analysts’ estimate of a loss of $1.02 a share.

Scott Nuttall, KKR’s head of global capital told reporters that “If you take out the noise, we feel really good about Q3 and the first nine months,” and added that there was a rise of fee-related earnings from $69.5 million a year earlier to $98.2 million in the quarter. He also expressed optimism that many good investment opportunities are coming KKR’s way.

The bulk of the negative investment income of $688.5 million stemmed from KKR’s $4.9 billion of holdings in its own private equity deals most of which were from combinations last year with its publicly traded European fund. KKR’s assets under management fell 5.2 percent from June 30 to $58.7 billion as world stocks plunged 18 percent in the quarter.

Read More : KKR Posts Lower Than Expected Loss for Q3 2011

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