KKR Swings to a Profit, Bolstered by Credit and Energy Gains

KKR & Co. swung to a third-quarter profit on gains in the value of its private-equity, credit and energy holdings.

For the period ended Sept. 30, the New York private-equity firm reported net income of $352.2 million, or 73 cents a share, versus a loss of $190.6 million, or 42 cents a share, the same period a year earlier.

Economic profit—a closely watched performance metric that includes changes in the value of unrealized investments—was $598.2 million, or 71 cents a share, compared with a loss of $314.8 million, or 37 cents a share, in the year-earlier period. The latest result topped the 69-cent per-share average estimate of analysts polled by FactSet.

The value of KKR's private-equity portfolio rose, following a decline in the year-earlier period. Shares of payment processor First Data Corp., the firm's largest holding, gained 19% during the period. Specialty insurance provider WMIH Corp.'s stock increased 5.4%.

Distributable earnings, a measure of cash gains, rose to $461.5 million, or 57 cents a share, from $331.1 million, or 40 cents a share, a year earlier.

During the period, KKR sold its remaining stake in Zimmer Biomet Holdings Inc. and a slug of stock in drugstore operator Walgreens Boots Alliance Inc.

KKR's assets under management rose to $131.1 billion from $112.4 billion a year earlier and $131 billion on June 30.

The company's shares closed Monday at $14.48, up 3.3% but down 7.1% year-to-date.

Write to Matt Jarzemsky at [e-mail]

(END) Dow Jones Newswires

October 25, 2016 08:25 ET (12:25 GMT)

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