{"id":40433,"date":"2026-02-08T23:56:00","date_gmt":"2026-02-08T15:56:00","guid":{"rendered":"https:\/\/www.granitefirm.com\/blog\/us\/?p=40433"},"modified":"2026-02-09T10:34:17","modified_gmt":"2026-02-09T02:34:17","slug":"how-kkr-makes-money","status":"publish","type":"post","link":"https:\/\/www.granitefirm.com\/blog\/us\/2026\/02\/08\/how-kkr-makes-money\/","title":{"rendered":"How KKR makes money?"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_83 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2026\/02\/08\/how-kkr-makes-money\/#Company_Profile\" >Company Profile<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2026\/02\/08\/how-kkr-makes-money\/#Founding\" >Founding<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2026\/02\/08\/how-kkr-makes-money\/#Global_Private_Equity_Leader\" >Global Private Equity Leader<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2026\/02\/08\/how-kkr-makes-money\/#Initial_Public_Offering\" >Initial Public Offering<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2026\/02\/08\/how-kkr-makes-money\/#King_of_Leveraged_Buyouts\" >King of Leveraged Buyouts<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2026\/02\/08\/how-kkr-makes-money\/#Most_Notable_Leveraged_Buyouts\" >Most Notable Leveraged Buyouts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2026\/02\/08\/how-kkr-makes-money\/#Experts_in_Hostile_Takeovers\" >Experts in Hostile Takeovers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2026\/02\/08\/how-kkr-makes-money\/#Acquisitions_in_China\" >Acquisitions in China<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2026\/02\/08\/how-kkr-makes-money\/#Operating\" >Operating<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2026\/02\/08\/how-kkr-makes-money\/#Current_Operating_Scale\" >Current Operating Scale<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2026\/02\/08\/how-kkr-makes-money\/#Q3_2025_Financial_Results\" >Q3 2025 Financial Results<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2026\/02\/08\/how-kkr-makes-money\/#Capital_Market_Performance\" >Capital Market Performance<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2026\/02\/08\/how-kkr-makes-money\/#Market_Valuation\" >Market Valuation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2026\/02\/08\/how-kkr-makes-money\/#Dividends\" >Dividends<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2026\/02\/08\/how-kkr-makes-money\/#Stock_Performance\" >Stock Performance<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2026\/02\/08\/how-kkr-makes-money\/#Notable_Books_Related_to_KKR\" >Notable Books Related to KKR<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2026\/02\/08\/how-kkr-makes-money\/#Relative_articles\" >Relative articles<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Company_Profile\"><\/span>Company Profile<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Founding\"><\/span>Founding<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><a href=\"https:\/\/www.kkr.com\/\" target=\"_blank\" rel=\"noopener\">Kohlberg Kravis Roberts &amp; Co. (ticker: KKR) <\/a>was founded in 1976 by Jerome Kohlberg Jr., Henry Kravis, and George Roberts. Headquartered in New York, it has offices in San Francisco, London, Paris, Hong Kong, and Tokyo.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Global_Private_Equity_Leader\"><\/span>Global Private Equity Leader<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>KKR has completed numerous landmark investments over the past few decades, with large investments spanning 25 industries and more than 335 private equity transactions, resulting in a total enterprise value exceeding $500 billion. KKR is known for its large and complex direct investment deals and its commitment to building leading companies across various industries globally. KKR possesses a vast network of resources connecting elites in the financial, business, and political sectors worldwide.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Initial_Public_Offering\"><\/span>Initial Public Offering<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>KKR officially went public on July 28, 2008, listing on the New York Stock Exchange through a complex merger plan. The company initially planned a traditional IPO in 2007, but this was postponed due to market conditions. Instead, it established a fund listed in Amsterdam called KKR Private Equity (KPE). The 2008 listing marked the finalization of these plans.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"King_of_Leveraged_Buyouts\"><\/span>King of Leveraged Buyouts<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Most_Notable_Leveraged_Buyouts\"><\/span>Most Notable Leveraged Buyouts<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Since its inception, KKR has completed numerous landmark acquisitions, including the famous 1989 leveraged buyout of RJR Nabisco, which was the largest acquisition in history at the time. Furthermore, its 2007 acquisition of TXU Energy remains the largest acquisition to date. Since 1977, KKR has invested in over 160 companies, guaranteeing at least one investment every year except 1982 and 1990.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Experts_in_Hostile_Takeovers\"><\/span>Experts in Hostile Takeovers<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>KKR&#8217;s acquisition of Duracell is one of its most successful examples of leveraged buyouts. Its reputation was further enhanced during the acquisition of RJR Nabisco, considered one of the most notorious hostile takeovers of the 20th century.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Acquisitions_in_China\"><\/span>Acquisitions in China<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In China, KKR has long assisted a group of entrepreneurs and senior executives in building numerous industry-leading companies, including Ping An Insurance, Belle International, Nanfu Battery, Shanshui Cement, Hengan International, Mengniu Dairy, and Yongle Home Appliances.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Operating\"><\/span>Operating <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Current_Operating_Scale\"><\/span>Current Operating Scale<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As of December 31, 2024, the company had completed 770 private equity investments with a total enterprise value of approximately $790 billion. Its assets under management (AUM) and fee-based assets under management (FPAUM) were $553 billion and $446 billion, respectively.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Q3_2025_Financial_Results\"><\/span>Q3 2025 Financial Results<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Non-GAAP earnings per share were $1.41, exceeding expectations by $0.11. Revenue reached $5.53 billion (up 15.4% year-over-year).<\/li>\n\n\n\n<li>Fee-related earnings (\u201cFRE\u201d) for the quarter were $1 billion (adjusted earnings per share of $1.15), a record high for KKR. FRE increased by 3% year-over-year. FRE for the past 12 months was $3.6 billion (adjusted earnings per share of $3.99), a 16% increase year-over-year.<\/li>\n\n\n\n<li>Total operating income (\u201cTOE\u201d) for the quarter was $1.4 billion (adjusted earnings per share of $1.55), a 12% increase year-over-year.<\/li>\n\n\n\n<li>Assets under management (\u201cAUM\u201d) were $723 billion, a 16% increase year-over-year.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Capital_Market_Performance\"><\/span>Capital Market Performance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Market_Valuation\"><\/span>Market Valuation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As of November 28, 2025, KKR\u2019s price-to-earnings ratio was 52.11.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Dividends\"><\/span>Dividends<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As of November 28, 2025, KKR\u2019s dividend yield was 0.61%.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Stock_Performance\"><\/span>Stock Performance<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As of November 28, 2025, KKR&#8217;s stock has fallen 18% year-to-date. Since its IPO, KKR&#8217;s stock has risen 1162%.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Notable_Books_Related_to_KKR\"><\/span>Notable Books Related to KKR<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Books associated with Kohlberg-Clavis-Roberts (KKR) include the most famous M&amp;A book in history, &#8220;<em><a href=\"https:\/\/www.amazon.com\/Barbarians-Gate-Fall-RJR-Nabisco\/dp\/0061655554\" target=\"_blank\" rel=\"noopener\">Barbarians at the Gate<\/a><\/em>&#8220;, and &#8220;<em><a href=\"https:\/\/www.amazon.com\/New-Tycoons-Trillion-Industry-Everything\/dp\/1118205464\" target=\"_blank\" rel=\"noopener\">The New Tycoons<\/a><\/em>&#8220;, a book written by a Bloomberg journalist.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"180\" height=\"45\" src=\"https:\/\/www.granitefirm.com\/blog\/us\/wp-content\/uploads\/sites\/2\/2025\/12\/kkr-Custom.png\" alt=\"KKR\" class=\"wp-image-40434\"\/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Relative_articles\"><\/span>Relative articles<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2026\/02\/08\/how-kkr-makes-money\/\">How KKR makes money?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/09\/12\/how-blackrock-make-money\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does BlackRock, the world&#8217;s largest index and asset management company, make money<\/a>?&#8221;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2023\/07\/24\/how-blackstone-make-money\/\" target=\"_blank\" rel=\"noreferrer noopener\">How Does Private Equity Giant Blackstone Make Money?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/12\/04\/how-carlyle-makes-money\/\">How Carlyle makes money?<\/a>&#8220;<\/li>\n\n\n\n<li><a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/07\/26\/how-to-invest\/\">&#8220;How to Invest&#8221;<\/a><\/li>\n<\/ul>\n\n\n\n<p><em><strong>Disclaimer<\/strong><\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>The content of this site is the author\u2019s personal opinions and is for reference only. I am not responsible for the correctness, opinions, and immediacy of the content and information of the article. Readers must make their own judgments.<\/em><\/li>\n\n\n\n<li><em>I shall not be liable for any damages or other legal liabilities for the direct or indirect losses caused by the readers&#8217; direct or indirect reliance on and reference to the information on this site, or all the responsibilities arising therefrom, as a result of any investment behavior.<\/em><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>KKR has completed numerous landmark acquisitions, including the famous 1989 leveraged buyout of RJR Nabisco, which was the largest acquisition in history at the time. Furthermore, its 2007 acquisition of TXU Energy remains the largest acquisition to date. Since 1977, KKR has invested in over 160 companies, guaranteeing at least one investment every year except 1982 and 1990.<\/p>\n","protected":false},"author":1,"featured_media":40434,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[84],"tags":[1018],"class_list":["post-40433","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-private-equity","tag-kkr"],"_links":{"self":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/40433","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/comments?post=40433"}],"version-history":[{"count":7,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/40433\/revisions"}],"predecessor-version":[{"id":40808,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/40433\/revisions\/40808"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media\/40434"}],"wp:attachment":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media?parent=40433"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/categories?post=40433"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/tags?post=40433"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}