By KKR Jul 23, 2018
On the heels of our conversion to a corporation on July 1, we hosted over 200 public shareholders and members of the equity research community for our Investor Day on July 9.
Since we announced our intention to change our structure from a limited partnership to a corporation in early May, we met with approximately 100 institutions across the U.S. and Europe and have been pleased with the feedback we heard and the initial reaction seen through our stock price. We feel this change allows us to be ‘easier to buy and easier to own’ and, as Craig Larson noted in his opening remarks as he commented on recent trading activity, “despite the July 4th holiday being in the middle of the week, we saw our three most active trading days in our history” further solidifying our conviction in this decision.
Senior leaders spent the morning explaining KKR’s model, why it’s differentiated and how they view the growth opportunity and trajectory for the firm. Additional highlights included Pete Stavros explaining how his team utilizes a unique model to incentivize employees and create value in Industrials’ portfolio companies, and Adam Smith explaining how KKR Capital Markets has evolved into a full-service capital markets business serving KKR and independent clients, with Tara Davies providing a case study example for Q-Park and Calvin Capital.
The team emphasized the growth across asset classes, particularly since we first listed on the NYSE in 2010. Since then we have grown assets under management from $62 million to $176 million as of March 31, 2018. In addition to new asset classes, we have diversified by geographies and industries in that time frame.
- Our industry is growing: the alternative asset management industry itself is a very large and growing industry, growing at double-digit rates over the last 10 years and projected to double in size by 2025. Within that very attractive industry dynamic, we are taking share given the increasing diversification of KKR both in terms of our products / strategies as well as by geography.
- Our model is differentiated: We marry large-scale third-party capital with our own permanent capital on the balance sheet and what sits in between that is a large and effective capital markets business. This approach ultimately allows us to maximize the economic participation in all the activity we do at the firm and gives us the opportunity to compound value and shareholder value sustainably.
- Many of our businesses are young, inflecting and operating in large end markets: While we are a 42-year old firm, it’s the U.S. private equity business that’s 42 years old. Most of our businesses have launched in the last 10 years and many are at an inflection point where they’re just starting to kick in significant contribution to earnings and carry.
- We are committed to equity value creation: Our alignment of interest is absolute. KKR and its executives own or control approximately 40% of our public shares. We wake up every day thinking about shareholder value creation. We believe this recent change to a corporation is an important milestone to further unlocking that value.
The full event was available via webcast. Please find a replay and copy of the presentation here. The replay allows you to navigate through individual presentations at your leisure.
Our Investor Day presentation was prepared for KKR & Co. Inc. for the benefit of its public stockholders and is not, and should not be construed as, a solicitation or sale of any of the securities, funds or services that it may discuss.