(Bloomberg) -- KKR & Co. executives said they expect deal-making for private equity to continue to improve in the second half of the year as markets reopen.
“The macro, inflation and rates backdrop has improved, markets are open — and the deal market is back,” Co-Chief Executive Officer Scott Nuttall said on a call with analysts Wednesday after reporting its second-quarter results.
KKR expects around $500 million in revenue from selling assets in the third quarter from deals that have already been announced or KKR expects to close, Nuttall said. KKR anticipates that 60% of the figure will be carried interest and 40% will be investment income, he said.
The firm ended the second quarter with around $600 million from selling assets, after telegraphing at least $500 million in a June press release, Nuttall said.
KKR reported second-quarter earnings that beat Wall Street estimates, with a key profit measure soaring 49%, as deal-making improved.
The firm’s first middle-market private equity strategy, Ascendant, raised $4.1 billion as of June 30. It’s oversubscribed at the $4.6 billion hard cap, Craig Larson, KKR’s head of investor relations, said on the call.
KKR forecasts that fundraising at its flagship funds will be a smaller piece of its overall cash gathering, Nuttall said. The firm has raised $214 billion since early 2022, he added, with only $14 billion of that total coming from flagship funds.
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