Buying Complexity and Selling SimplicityRalph Rosenberg explains the evolution and strategy of Real Estate investing at KKR. February 2017.
KKR Real Estate at a Glance...
As of March 31, 2020:
~$10+ billion in AUM
Offices in 11 cities in 8 countries
85+ investment & asset management professionals
KKR Real Estate is a global provider of equity and debt capital across real estate investment strategies. Real estate has been a part of the firm’s strategy since 1981 when we first began pursuing real estate opportunities through our private equity strategy. In 2011, we made a decision to form a dedicated real estate platform. As of March 31, 2020, our team consists of 85+ dedicated investment and asset management professionals across eight countries, with more than $10+ billion of assets under management (including proprietary investments).
Our ability to leverage resources throughout KKR has become what we view as our competitive advantage. Access to the broader KKR platform provides far greater resources to source, analyze and execute real estate transactions:
(1) KKR Credit currently conducts its business through the following advisory entities: KKR Credit Advisors (US) LLC, KKR Credit Advisors (Ireland), and KKR Alternative Investment Management.
Assets Under Management (AUM)
References to “assets under management” or “AUM” represent the assets managed by KKR or its strategic partners as to which KKR is entitled to receive a fee or carried interest (either currently or upon deployment of capital) and general partner capital. KKR calculates the amount of AUM as of any date as the sum of: (i) the fair value of the investments of KKR's investment funds; (ii) uncalled capital commitments from these funds, including uncalled capital commitments from which KKR is currently not earning management fees or carried interest; (iii) the fair value of investments in KKR's co-investment vehicles; (iv) the par value of outstanding CLOs (excluding CLOs wholly-owned by KKR); (v) KKR's pro-rata portion of the AUM managed by strategic partnerships in which KKR holds a minority ownership interest and (vi) the fair value of other assets managed by KKR. The pro-rata portion of the AUM managed by strategic partnerships is calculated based on KKR’s percentage ownership interest in such entities multiplied by such entity’s respective AUM. KKR’s calculation of AUM may differ from the calculations of other asset managers and, as a result, KKR’s measurements of its AUM may not be comparable to similar measures presented by other asset managers. KKR's definition of AUM is not based on the definitions of AUM that may be set forth in agreements governing the investment funds, vehicles or accounts that it manages and is not calculated pursuant to any regulatory definitions.
Participation of KKR Private Equity, KKR Capital Markets, and KKR Capstone personnel in the public markets investment process is subject to applicable law and inside information barrier policies and procedures, which may limit the involvement of such personnel in certain circumstances and KKR Credit’s ability to leverage such integration with KKR. Discussions with Senior Advisors and employees of the Firm’s managed portfolio companies are also subject to the inside information barrier policies and procedures, which may restrict or limit discussions and/or collaborations with KKR Credit.