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US private equity giant KKR slumps to £677m loss

US private equity giant KKR plunges to £677m loss amid deal delay

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KKR has suffered its biggest blow to its balance sheet since March 2020 after losing £677 million for the second quarter.

The slump for the private equity giant comes after a turbulent few months for global markets and a slowdown in deals that have hit the New York firm’s massive portfolio.

KKR’s latest quarterly results revealed a 7 percent drop in the value of its private equity holdings, while its fee-related revenues fell 2 percent year-over-year to £377 million.

KKR's latest quarterly results showed a 7% drop in the value of its private equity holdings

KKR’s latest quarterly results showed a 7% drop in the value of its private equity holdings

Profits also fell 9 percent year-on-year to £687.7 million.

Management pointed to a decline in transaction fee revenues caused by the “volatility” of the Russian war in Ukraine and rising interest rates.

Yet KKR’s partners still benefited £592 million in the second quarter from the so-called carry rate – a controversial way private equity partners pay themselves.

Total assets under management rose to £401 billion.

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