Wednesday, May 4, 2011
Private equity firm KKR (KKR.N) posted higher-than-expected quarterly earnings as the value of its private equity investments rose 6.5 percent and fee income increased, the company said on Wednesday. Kohlberg Kravis Roberts & Co said it generated profits from taking a number of its portfolio companies public. During the quarter, KKR-backed Nielsen Holdings NLSN.O , HCA Holdings Inc (HCA.N) and Far East Horizon (3360.HK) went public. Private equity firms have been benefiting from an improving economy and rising stock market valuations and seen the value of their portfolios increase. They have also taken advantage of increasing M&A and improving IPO markets to exit some of their investments. KKR's economic net income, a measure used by private equity firms to report earnings, was $742.5 million for the first quarter, compared with $674.8 million a year earlier. Fee-related earnings were $126.2 million, up from $90.4 million a year earlier.
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Posted by Eric Savoie at 10:20 AM