KKR Tops $900 Million in Second-Quarter Exit Income

KKR said it generated over $900 million in monetisation income in its second quarter of the year so far, to June 24th, driven by a recovery in private equity exit activity following several years in which deal-making had slowed dramatically.

The firm said monetization activity has picked up during the current quarter since strong equity markets and increased deal activity opens more exit opportunities for private equity firms.

Exit Activity Picks Up

Monetization is the process of selling private equity firms’s portfolio companies or stakes in those investments, or taking businesses public through initial public offerings (IPOs), so as to exit and return capital to investors.

The firm recorded $878 million of monetization income in its second quarter. The current quarter’s monetisation activity in excess of $900m was 66% above the average quarterly level of the past three years, the company said.

IPO Market Reopens

This year has also seen some improvement in exit opportunities for private equity firms due to some recovery in sponsor-backed IPOs. In May, GMR listed on the New York Stock Exchange valuing the KKR-backed ambulance services provider at around $3 billion.

KKR had $758-billion in assets under management as of the end of Q1, and a market cap of roughly $82.2 billion. Following the announcement, its shares were up nearly 1% in premarket trading.

Source: Reuters 

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