With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Fortune 500

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

Industries included in the sector are banks, insurance, and real estate companies.

Fortune Sector Leaders: Financials

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

This year’s Fortune 500 marks the 68th running of the list.

This year’s Fortune 500 marks the 67th running of the list.

With a savvy and diversified portfolio, the company manages a wide array of financial assets, such as investment banking, real estate, and hedge funds.

This year's Fortune 500 marks the 66th running of the list.

Kohlberg Kravis Roberts, or KKR, is a New York-based investment firm that focuses on alternative asset classes including private equity, real estate, and infrastructure.

This year's Fortune 500 marks the 65th running of the list.

This year's Fortune 500 marks the 64th running of the list.

This year's Fortune 500 marks the 63rd running of the list.

This year's Fortune 500 marks the 62nd running of the list.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Key Financials (last Fiscal Year)

Revenues ($M)

Profits ($M)

Assets ($M)

Total Stockholder Equity ($M)

Profit Ratios

Profit as % of Revenues

Profits as % of Assets

Profits as % of Stockholder Equity

Earnings Per Share (last Fiscal Year)

Earnings Per Share ($)

EPS % Change (from prior fiscal year)

EPS % Change (5 year annual rate)

EPS % Change (10 year annual rate)

Total Return

Total Return to Investors (last year)

Total Return to Investors (5 year, annualized)

Total Return to Investors (10 year, annualized)

Founded in 1976, Kohlberg Kravis Roberts &amp; Co. (KKR) is a pioneer in private equity. Today it is one of the world’s largest private equity firms, specializing in direct investments, funds of funds, and real estate. Its business runs the gamut of the financial sector including alternative asset management, credit, middle-market private equity, and distressed assets. KKR is known for having broad expertise across sectors and a hands-on management style. The company’s revenues come from management fees, transaction fees, and carried interest from its own investments. KKR is one of a growing number of publicly traded private equity firms, debuting on the New York Stock Exchange in July 2010.

Q2 2026

Q1 2026

Q4 2025

Q3 2025

Q2 2025

Q1 2025

Q4 2024

KKR (KKR): Company Profile, Stock Price, News, Rankings

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Ladies and gentlemen, thank you for standing by. Welcome to KKR's 4th Quarter 2024 Earnings Conference Call. During today's presentation, all parties will be in a listen only mode. Following management's prepared remarks, the conference will be opened for questions. As a reminder, this conference is being recorded.

I would now like to hand the call over to Craig Larson, Partner and Head of Investor Relations for KKR. Craig, please go ahead.

Thank you, operator. Good morning, everyone. Welcome to our Q4 2024 earnings call. This morning, as usual, I'm joined by Rob Lewin, our Chief Financial Officer and Scott Nuttall, our Co Chief Executive Officer. We would like to remind everyone that we'll refer to non GAAP measures on the call, which are reconciled to GAAP figures in our press release, which is available on the Investor Center section at kkr.com.

And as a reminder, we report our segment numbers on an adjusted share basis. This call will contain forward looking statements, which do not guarantee future rental performance. Please refer to our earnings release and our SEC filings for cautionary factors about these statements. So beginning with our financial results, we had a really solid end to the year. Fee related earnings per share came in at $0.94 That is up 24% from a year ago and is the 2nd highest quarterly figure in our history.

And adjusted net income came in at $1.32 per share. That is up 32% year over year and is also the 2nd highest quarterly figure in our history. For the year, FRE per share and ANI per share were $3.66 and $4.70 up 37% 38% respectively compared to 2023 and both are record annual figures for us. So very healthy growth during a period of time where it is sell to us as the market conditions have just begun to improve. Walking through our quarterly results in a little more detail.

Management fees in Q4 came in at 906,000,000 dollars That's up 15% year over year driven by the breadth of our fundraising activities alongside of a pickup in deployment. Total transaction and monitoring fees were $324,000,000 in the quarter. Capital Markets transaction fees in particular ended the year on a strong note with $270,000,000 in revenue, driven primarily by deployment activity within private equity as well as infrastructure. Fee related performance revenues were $25,000,000 in the quarter and so in aggregate fee related revenues were $1,300,000,000 and that's up 17% year over year. Turning to expenses.

As usual, fee related compensation was right at the midpoint of our guided range at 17.5 percent of fee related revenues for the quarter as well as for the year. Other operating expenses were $192,000,000 in Q4. So in total, fee related earnings were $8.43 or $0.94 per share as I mentioned a minute ago, with an FRE margin of 67%. Insurance operating earnings were $250,000,000 and Strategic Holdings operating earnings were $8,000,000 Both of these figures came in right in line with the levels we discussed on our call last quarter. Total operating earnings, as a reminder, comprised of our fee related earnings, insurance and strategic holdings operating earnings were $1.23 per share.

So total operating earnings for KKR, again, these are the more durable and recurring components of our earnings, comprise almost 80% of total segment earnings for the year. Moving to investing earnings within our Asset Management segment, realized performance income was $676,000,000 and realized investment income was 110,000,000 dollars for total monetization activity of $786,000,000 That's up almost 50% year over year. This activity was driven by a combination of secondary sales and strategic transactions, dividends and interest income, as well as the annual performance fee for Marshall Wace. So in total, investing earnings were $399,000,000 Turning to investment performance. You can see the details here on Page 10 of our earnings release.

The Private Equity portfolio was flat in the quarter and appreciated 14% for the year. In Real Assets, the opportunistic real estate portfolio was up 1% in the quarter and 4% for the year. Infrastructure, up 2% for the quarter and up 14% for the year. And in credit, the leverage credit composite and the alternative credit composite were both up 2% in Q4. And for the year, performance here was up 10% and up 12% respectively.

And then finally, consistent with our historical practice, we intend to increase our annual dividend from $0.70 to $0.74 per share, which will go into effect alongside Q1 2025 earnings. And with that, I'm pleased to turn the call over to Rob.

Thanks a lot, Craig, and thank you all for joining our call this morning. KKR had a strong 2024 and our Q4 results that Craig just walked through give us continued confidence as we head into 2025. I'm going to begin today by reviewing some key operating metrics from the quarter and the very tangible signs of momentum that we are seeing across our businesses. Let me start first with our asset management business. As it relates to our capital raising efforts, we raised $27,000,000,000 this quarter, which was driven by diversified activity across each of our business lines.

Our private equity and real asset businesses together raised $15,000,000,000 of capital across a number of strategies. And momentum in credit continued across our asset based finance and direct lending vehicles and we also saw an uptick in CLO formation. Total new capital raised for 2024 is $114,000,000,000 That is the 2nd most active year in our history and up meaningfully from the approximately $70,000,000,000 that we raised in 2023. While we are only 6 months into our fundraising super cycle, we are seeing meaningful progress. In our North America private equity strategy, where we are in early stage fundraising, we are ahead of where we thought we would be at this point in time.

Our efforts here are benefiting from really strong investment performance. Also of note, 2024 was the 8th consecutive year that we've returned more capital to our North American private equity clients than we have called. And alongside the encouraging first steps in our flagship fundraising within private equity and infrastructure, we continue to raise capital across the breadth of our asset classes and vehicles. Taking a step back, over the past 12 months, only 15% of our $114,000,000,000 of new capital raised was from our flagship funds. Client interest feels strong in areas like private credit, including asset based finance in particular, our Ivy Sidecar franchise and insurance as well as the newer strategies for us such as Climate.

Turning to wealth. We are seeing continued scaling with AUM across our K Series vehicles at $16,000,000,000 as of year end. And including activity that closed January 1, 2025, we are now at $18,000,000,000 which compares to $7,000,000,000 just a year ago. Looking more broadly, we now have approximately $100,000,000,000 of assets under management from individuals, largely via family offices and ultra high net worth clients as well as the accredited investor universe. And looking ahead, we expect our reach will expand to a new client base as we continue to track towards the launch of our 2 hybrid credit products in the first half of twenty twenty five.

These are developed exclusively in partnership with Capital Group targeting the mass affluent. At the same time, we continue to work on product design across other asset classes, which will follow over the coming several quarters. So we feel good about where we are from a private wealth perspective and we really do believe that this is just the beginning for us. Turning now to monetizations. Over the past couple of quarters, we've been noting signs of an improved backdrop with increased M and A volumes and firmer global equity and debt markets.

This strength is evidenced in our 2024 gross realized performance income and realized investment income figures of $1,800,000,000 and over $600,000,000 respectively. Overall, our monetization activity is up over 40% year on year. And now looking at deployment, in 2024, we invested $84,000,000,000 of capital. That's up meaningfully from $44,000,000,000 in 2023 and compared to $71,000,000,000 in 2022. This was driven by a significant ramp in credit along with a rebound across many of our private market strategies.

As we head into a more constructive environment, we do feel very well positioned. As a result of the current activity levels, especially in relation to deployment, our Capital Markets business saw another strong revenue quarter at $270,000,000 bringing the 2024 total to $1,000,000,000 for the first time in our history. This is a major milestone in the evolution of the business and it was only just 4 years ago when this business was roughly half the size and largely private equity driven. Now turning to insurance. 2024 marked the 1st year that we've owned 100% of Global Atlantic and the connectivity between KKR and GA only increased over the course of the year.

You've seen investment opportunities for GA increase in strategies like infrastructure and real estate equities. And as our businesses continue to integrate, we see even more opportunities to invest strategically against the long dated liabilities that Global Atlantic is able to source at scale. And finally, focusing on strategic holdings for a minute. Our strategic holdings business represents a big differentiator for us and the announcement this morning is a further accelerant of this segment. We will be increasing the existing stakes of 3 businesses that we know well and really like by at least 2,100,000,000 dollars KKR will invest $1,100,000,000 which will show up in strategic holdings, while the remainder will be from one of our strategic partners.

This piece will become fee paying asset under management and will be additive to management fees and future carried interest. As a reminder, these businesses have high quality management teams. They are cash generative, tend to be less cyclical and typically have lower leverage over the whole period to name just a few of the key attributes. In other words, these are businesses that we want to own for the long term. Today, we have 18 companies that we've invested behind over the course of the last 8 years and we're continuing to see consistent growth across the underlying franchises.

For context, KKR share of these businesses as of the Q3, so this is on a 1 quarter lag basis, generated approximately $3,700,000,000 of

and approximately $900,000,000 of EBITDA over the trailing 12 months. We believe strategic holdings will be a truly unique driver of future financial performance for KKR for years to come. Remember, no employees sit within Strategic Holdings. We didn't have to hire anybody new to lean into this growth opportunity, which aligns really well with our focus on preserving our collaborative, one firm culture. And with these additional purchases, alongside continued strong performance across our portfolio, we are increasing our guidance for strategic holdings operating earnings that we introduced roughly a year ago by $50,000,000 in 2026 to $350,000,000 plus and by $100,000,000 in each of 2028 and 2,030 to $700,000,000 plus $1,100,000,000 plus $1,100,000,000 respectively.

I don't believe that there are many corporates that give guidance as to 2,030. Hopefully, this gives you a very clear sense of our confidence in the outlook, durability and the growth trajectory for our business. With that, let me hand it off to Scott.

Thanks, Rob. Given this is our year end call, I want to spend a few minutes sharing how it feels inside the firm. And forgive the analogy, but I'm a runner and this is how I think about it. The punch line is that despite all the progress you've seen and the progression of the numbers Craig and Rob just took you through, we have not been running at full pace the last couple of years. Said another way, we are not yet operating at our true potential.

But it does feel like we're picking up speed on multiple fronts. What do I mean by that? Well, let's go back for a minute to the last 2 years. So you have some context for 2025 and we'll start with 2023. In asset management in 2023, buyers and sellers were far apart.

Owners of assets, including ourselves, did not want to sell or finance assets in a dislocated market. So deployment, monetizations and fundraising were more muted. Capital markets were closed for large portions of the year. There was more fear than greed in the market and private wealth was just launching for us. At Global Atlantic, we were at approximately 63% ownership.

We were not utilizing all of KKR we were still figuring out what was possible. And in strategic holdings, the portfolio was still maturing and generating little cash earnings for the firm and we were still working on the vision of what it could be. So in short, we were running uphill in bad weather, on rough terrain, in new gear. Now let's go to 2024. In Asset Management, the market began to open in the first half of last year and buyers and sellers started finding each other again.

It usually takes some time for the M and A market to turn back on and that's what we saw in the first half. The market was gearing back up. But then the election distraction slowed things down again in the back half. So we didn't see a full year of normalcy and it felt a bit on off. Private wealth was still ramping for us with more hiring and the team getting embedded, while we were being added to many more platforms, but nowhere near what's possible.

And you saw only the first steps in our fundraising super cycle. So overall, as you heard, deployment and monetizations and fundraising were all up materially last year, but not what it could be in a full year hospitable market. In Global Atlantic, we got to 100 percent ownership at the beginning of last year. And then we spent the year sorting out how to use all of KKR and all of GA truly together on an integrated basis. It was a learning year.

And in strategic holdings, we explained to the market what we are doing at our Investor Day in April and continue to focus on how to scale dividend flow faster and portfolio optimize. And throughout the year, it became clear the earnings and dividend compounding opportunity was even greater than we expected, but it was early. So 2024 was a good year, not a great year. We executed reasonably well, but we are still running uphill with intermittent rain after some sun and we were learning how to use our new gear. But to be clear, overall conditions were much better than 2023 and we got smarter about how to use the model we've built.

So let's talk about how it feels now heading into 20252026. In asset management, pipelines are up, more exits are possible and we see more deployment opportunities globally and across asset classes. Exits should see fundraising momentum even more at the exact time we're in the market with a number of our flagship funds. Private wealth is showing real progress and we are seeing flows increase and broaden globally and across platforms. And our Capital Group partnership is expected to launch soon in credit with other asset classes to follow.

We expect this partnership to be significant for us. At Global Atlantic, we're much smarter now after a year of owning 100%. We are shifting our strategy to emphasize longer duration, more private markets assets, more global and more integration across operational areas. We're starting to capture the opportunities we see in capital markets in Asia, just two examples. And we see a path to fully use the power of the combined model and what that could mean.

There's more opportunity than we thought. And in strategic holdings, we can really see the potential of what this could be. Today's announcement is just a start. The dividend scaling and compounding opportunity is real. So where are we now?

The sun is out and we're running on flat road. The conditions and forecasts are good. We're comfortable in our new gear. We're stronger for the last 2 years of hard work and we're picking up speed. Conditions could of course change, which would impact some of this, political, geopolitical, inflation, rates to name just a few.

But remember, KKR's business model is different. That's on purpose. The combination of asset management plus insurance plus strategic holdings creates a model with a massive addressable market, significant recurring earnings and the opportunity to grow with few additional people at KKR. Preserving culture and enhancing our ability to perform for clients and further increase our margins. So we're optimistic, still out there running and happy to take your questions.

Our first question comes from Craig Siegenthaler with Bank of America. Please proceed with your question.

Good morning, everyone. Hope you're doing well. Our question is on the investing outlook across the firm. So the consensus outlook for 2025 was always stronger, but the macro has become a little bit more challenging versus 90 days ago. You can see this in the 10 year and in the VIX.

So sitting here today in January, what is the investment outlook for 2025 relative to last year? And what has been the sensitivity to some of the macro trends that have developed?

Hey, Craig, it's Scott. Let me start off with that one. Our view has not changed. And I think when we were talking at the end of last year, I think the perspective was heading into 2025, you'd see an improved M and A environment. A lot of the transactions that maybe didn't get done in 2023 and then maybe got put on hold in late 2024 would come back to the market.

That is still very much our expectation that you're going to see the M and A market pick up this year. We expect there's going to be a lot of noise, no doubt.

try to figure out the signal, there's nothing that we're seeing that changes that perspective as we sit here today. And remember for us, volatility creates opportunities. We are expecting there will be some volatility, but we think that will make the investment environment even more interesting for us. And so we remain optimistic as you heard in the prepared remarks, no change. And I think remember how global our business is.

So a lot of the opportunities we see are not just in the U. S. But around the world. But if you think about what we're telling you, we expect more investing, more monetizations and more fundraising. And so the punch line to kind of keep everybody keeping their eye on the ball really hasn't changed for us.

Our next question comes from Benjamin Butish with Barclays. Please proceed with your question.

Hi, good morning and thanks for taking the question. Maybe a follow-up on Craig's question, thinking about the 2025 outlook. Maybe just to start, could you give us a little bit of an update on the Americas fundraise, but in terms of 2025, just maybe tying that into how should we think about sort of the trajectory of management fee growth into the year? There's obviously some dynamics with catch up fees, timing of fund activations, but curious on those two items, the Americas fund and how we should think about broader 2025 management fee growth? Thank you.

Hey, Ben. It's Craig. Why don't I start? I'm sure Rob will pick up on the management fee trend. Thanks for asking about Americas Private Equity.

That, as you know, is a front burner topic for us. As Rob had noted, we did take some capital prior to year end. And without getting into the details, as the first close period is still ongoing, as Rob noted, we're definitely ahead of where we thought we'd be, which has been really encouraging. And we do expect to be wrapped up with a first close in Q1 here. So you should expect more news here shortly.

So good news, good progress to date with more to come.

Ben, I'll pick up on the management fee side. As you know, management fee growth has been a real area of relative strength for us. If you look back over the past 3 years, we've grown our management fees at a CAGR of 19%. We were up 14% in 2024. And as we look forward, we can see some acceleration in management fee growth off of that level.

We got a lot of good things, as Scott noted, happening across our business right now. Current expectation is that Americas Buyout Fund plus or minus will turn on midpoint of the year, but there's lots of other real signs of tangible management fee growth. And as you take maybe a further step back and you look at our $4.50 plus per share FRE target in 2026, it's obviously a target we've got a lot of confidence in being able to hit. In order to achieve that, we're going to need to drive real execution around management fee growth from here. And we feel like we're well positioned to be able to do that, but still a lot to get done.

Our next question comes from Alex Blostein with Goldman Sachs. Please proceed with your question.

Thank you. Good morning, everybody. I was hoping that we can go back to the strategic holdings announcements, obviously, an important step for you guys. Could you just maybe walk us through sort of why now? Why is now the right time to add?

When you're looking across the 18 portfolio companies that you have, what is the percentage that KKR owns today on balance sheet? And I guess what percentage of any portfolio company would you feel comfortable owning over time?

Thanks, Alex. Why don't I start? So to answer maybe the last part of your question first, Strategic Holdings owns roughly directly 20% of the core private equity businesses. Now that will vary from business to business, but as a whole, roughly 20%. Listen, we've articulated that we view Strategic Holdings as a real differentiator for our business model.

It is an and on top of asset management and insurance. And we've talked often about how we believe capital allocation can drive incremental long term accretion to our recurring earnings per share. And so we saw an opportunity to buy a larger stake in 3 businesses that we know really well, that we believed would be really accretive to our long term earnings per share growth, and we're excited to be able to do that.

least what's in strategic holdings today is the balance sheet exposure to our core private equity business. And so that to answer your first question, we're roughly a third of that capital on the whole across that platform. When you look at the last partnership that we created there, we had Edison 2 partners. This incremental investment we're making, one of our partners, Chubb, the large insurance company is going to be investing alongside of us. And so we'll be half of the capital in this add on as Rob mentioned in the prepared remarks.

And in terms of the timing, there's nothing magic about it. We feel great about these companies. They continue to mature. They're getting that much closer to paying meaningful dividends and already are in a couple of the instances. And so as the portfolio matures and we look at the opportunity to continue to scale what strategic holdings can be, it felt like a good time.

We had some partners that were looking to get liquidity and so it lined up nicely for us.

Our next question is from Bill Katz with TD Cowen. Please proceed with your

Cowen. Just wondering if you could maybe double click into the wealth management opportunity. You spoke very constructively about the outlook from here. Just sort of wondering where you sort of see the greatest opportunity. I know it's a fairly in-depth question just from a multi vector perspective of product or geography or distribution channel.

And I was wondering if you could tie that to your outlook for the other expense line as we should think about further scaling of the platform? Thank you.

Hi, Bill. It's Craig. Why don't I start? I'm sure Scott will add then on Capital Group. So just taking a step back and level setting for everyone, as of twelvethirty one, we had about $100,000,000,000 of AUM from individuals.

And that number, just to be clear, does not include policyholders at Global Atlantic. So if anything, that figure is understated as you think about the breadth of our presence and activities with individuals. The largest part of that and probably the most mature would be capital that we have from high net worth and ultra high net worth individuals, family offices that have invested in our funds over time. One of the pieces that is growing One of the pieces that is growing significantly and where we still see lots of room for growth relates to the K Series products. And again, just for everybody, these are funds and strategies that are designed and tailored specifically for wealth investors and the accredited investor as well as qualified purchasers.

And so of our $100,000,000,000 as Rob noted, dollars 16 are from the K Series products as of twelvethirty one and that $16,000,000 goes up to $18,000,000 if you include the January subscriptions. So just in terms of K Series, a couple of thoughts. First, again, that 2018 a year ago compares to 7. So early days, but we feel really good about our progress. I think that is true in particular in infrastructure as well as in private equity, which are newer asset classes for many of these investors.

In total, we raised over $8,000,000,000 last year for infra in PE and have led have leading market share in both of those asset classes. And again, it's tough to draw broad conclusions from really short periods of time. But in January, we raised again over $1,000,000,000 the strongest fundraising month for us in both private equity as well as infrastructure. And in terms of the numbers in total, we did launch our private BDC more recently, much younger in its seasoning and more growth in presence. And so I think the K Series growth opportunity is one that's significant.

And even taking a step back, mass affluent investors, it's not been easy for them to access alternatives historically. And we do believe over the coming years, there continues to be lots of opportunities for us to grow, build and scale. We think given our brand, our track record, the investments we've made in distribution and marketing, there's lots of near term opportunities for us in terms of these strategies, longer term opportunities as we think again out in the long term about retirement and 401. And then another piece of that is a strategic partnership with Capital Group and I'll let Scott touch on that.

Yes. Bill, more broadly, I think part of the reason you're hearing such optimism in our voices is it does feel like we're just getting started here and we're pleased that we're already ahead of our early expectations.

in context, Greg mentioned the K series. So across all 4 major product areas, we really only got the products out there in the last 12 months across private equity and for real estate and credit. So it's relatively recent for us. We also have our ID vehicle in the market that is being also sold to high net worth individuals. So there is a big opportunity and there's more product ideas that are coming out of those conversations with platforms.

So we have great early momentum, but and we're picking up pace, as I said. Craig mentioned Capital Group. We think that is a big opportunity for the firm. The K series really goes, let me put it in a U. S.

Context to accredited investors, which is something that's less than 10% of U. S. Households. Capital Group and our partnership there gets us to the mass affluent called the other 90% of U. S.

Households. They have been fantastic partners and you should expect that we and Capital Group will be doing more together over time. So it's early, but we're really pleased with the results. And as we look at the opportunity and size it for ourselves and think about what this can mean 5, 10 years from now, it just continues to get larger and the more time we spend. Rob, do you want to hit the expenses question?

Yes, sure. Bill, just real quickly, any K Series distribution related costs we show in other operating expenses, which is part of the reason why you saw a little bit of an uptick this year. We were, as I'm sure you know, able to grow our fee revenue at a pace that well exceeded our operating expense growth even with some of those upward pressures. We were, I want to say, roughly 15.5 percent OpEx margin last year, and that number was closer to 14% this year. And as we look forward, as it relates to our operating expense and placement fees and related distribution costs, that's about as clear in ROI as we have from a spend here at KKR.

So those going up is generally a good thing overall to the model. But other than that, we try and do a really good job to be vigilant on expenses. And we do see the opportunity from here for further margin expansion, because we really do believe we're going to be able to continue to scale our revenue base at a level that meaningfully exceeds our headcount growth across the firm and the operating complexity that we'll be taking on.

Our next question comes from Glenn Schorr with Evercore ISI. Please proceed with your question.

Hi, thanks very much. I guess a question in Real Assets and Infer, you obviously grew a big diversified platform very well. There's these huge TAMs that we've been seeing in data, data warehouse, power. You have your recent partnership with Energy Capital. You have some recent power company acquisitions.

So my question is, has anything changed on the heels of Deepsea? Has it changed the way you think about prices paid on recent assets and or demand in the future for what everybody seems to be building in this tremendous data oriented addressable market? Thanks.

Hey, Glenn. It's Craig. Why don't I start? I guess why don't we begin with 2 high level observations. I think first and you would have heard this a number of times last week and I'm thinking on some of the earnings calls across the tech industry.

In general, innovation that drives efficiency is a good thing. And that can result obviously in greater adoption and increased demands that can result from that. And second and more specific to the data center business, with the growth in overall data generation, cloud and AI, there's just a need for much more compute. So there's little question in our minds that long term data center, power, infrastructure demand is growing. Now with that said, as you noted, DeepSeq introduced questions on the demand side that really focused on how much and where, right?

So and while it's probably too early for really anyone to have a great view around CapEx spend and the like, when we look at our portfolio and our approach, we think we have a number of things really working in our favor. So first across our 5 platforms, we did not ascribe any meaningful value to AI demand in our original underwrite. So as an example, our largest investment in the space, CyrusOne, that was a take private announced in 2021. The thesis is that at that point was entirely driven by cloud demands and the AI dynamics have all been upside. And in our more recent examples investments rather, growth driven by cloud not AI again has been really the critical driver.

Other things that we look at, location matters in our view. And so our team has been focused on locations that are proximate to key population centers that we think will be difficult to replicate or replace. We do not build speculatively at the platforms. And so instead you'll see CapEx once you have a contractual customer commitment in hand. And remember again, these counterparties are often some of the largest, most creditworthy counterparties in the world.

And also in a number of our investments, we enjoy downside protection given the terms and the type of security we own in the capital structures. And then in terms of exposures, as you've heard from us on these calls, look, this theme is one that's really critical for us. It's an opportunity where in our view scale does matter. So today we have data center platforms in the U. S, Europe, Asia, Middle East and on a 100% owned basis total enterprise value here would be about $50,000,000,000 So it's meaningful.

Now at the same time, we have a diversified approach to portfolio construction across our pools of capital as you know. So at twelvethirty one, these investments are about 6% of our AUM across the infrastructure platform in total. So again, we expect this theme to continue to be really important for us. We'll continue to watch developments very closely. Hope that's helpful.

Gary, thanks. That's what you were prepared for that question. Thanks.

Our next question comes from Dan Fannon with Jefferies. Please proceed with your question.

Thanks. Good morning. Can you talk to the monetization environment and how you're thinking about that as we start 2025? And really how you see it progressing this year? And what gives you confidence, which I assume is a bit more of a positive outlook on that activity level versus what we've seen in previous periods?

Thanks for the question, Dan. We do see our monetizations up in 2025 relative to 2024. And looking at the environment today pretty comfortably, equity markets really conducive for that. Equity values are high. Credit availability is very high and spreads are really as tight as they've been in quite some time.

I also think it's probably helpful to look at some context around the overall monetization environment. We've been monetizing at a pretty healthy pace even through what's been a more challenged time for our industry. And so to give you a data point, if you look at our LTM realized private equity carry, and this is a number as of ninethirty, we were up 67%. Our public peers were roughly flat. And we think the industry is probably much more in line with our public peers.

And so I think you can see across the industry maybe some client pressure to push unnaturally monetizations in 2025. I don't think that same dynamic exists here. And so while we expect monetizations to increase in 2025, we also expect monetizations to continue to increase on the back of that in 2026 and 2027. So we'll see things can move around, but we've got a very healthy portfolio. As you know, our investment returns have been really strong.

KKR (KKR) Q4 2024 Earnings Call Transcript

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