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What changed in KKR & Co.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of KKR & Co.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+1479 added−2356 removedSource: 10-K (2026-02-27) vs 10-K (2025-02-28)

Top changes in KKR & Co.'s 2025 10-K

1479 paragraphs added · 2356 removed · 938 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

123 edited+85 added−267 removed37 unchanged
Biggest changeGross management fees for our private equity funds generally range from 1% to 2% of committed capital during the fund's investment period and are generally 0.75% to 1.50% of invested capital after the expiration of the fund's investment period with subsequent reductions over time, which causes the fees to be reduced as investments are liquidated.
Biggest changeManagement fees are generally based on an annual rate but typically payable on a monthly or quarterly basis. • Management fees for our drawdown private equity funds generally range from 1.0% to 2.0% of committed capital during the fund's investment period and are generally 0.75% to 1.50% of invested capital after the expiration of the fund's investment period, which causes these fees to be subsequently reduced as investments are liquidated. • Management fees for drawdown infrastructure and real estate funds generally range from 0.75% to 1.50% and are typically charged on committed capital during the investment period and on invested capital thereafter. • Management fees for drawdown credit funds generally range from 0.85% to 1.50% of invested capital and vary depending on the strategy and targeted return. • Management fees for CLOs typically range from 0.4% to 0.5% based on asset value.
Bermuda Our insurance subsidiaries organized in Bermuda, Global Atlantic Re and Global Atlantic Assurance, and reinsurance co-investment vehicles sponsored by Global Atlantic are subject to regulation and supervision by the Bermuda Monetary Authority ("BMA") and compliance with all applicable Bermuda laws and Bermuda insurance statutes and regulations, including but not limited to the Bermuda Insurance Act.
Bermuda Our insurance subsidiaries organized in Bermuda, Global Atlantic Re Limited and Global Atlantic Assurance Limited, and reinsurance co-investment vehicles sponsored by Global Atlantic are subject to regulation and supervision by the Bermuda Monetary Authority ("BMA") and compliance with all applicable Bermuda laws and Bermuda insurance statutes and regulations, including but not limited to the Bermuda Insurance Act.
Global Atlantic's distribution of insurance products that are regulated as securities is conducted by Global Atlantic Distributors, LLC, which is also registered as a broker-dealer with the SEC under the Exchange Act and in 52 U.S. states and territories, and is also a member of the FINRA.
Global Atlantic's distribution of insurance products that are regulated as securities is conducted by Global Atlantic Distributors, LLC, which is also registered as a broker-dealer with the SEC under the Securities Exchange Act of 1934 and in 52 U.S. states and territories, and is also a member of the FINRA.
Finally, while the United States federal government in most contexts currently does not directly regulate the insurance business, the Federal Insurance Office (the "FIO") established by the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act") now has an oversight role with respect to insurance regulation.
Finally, while the United States federal government in most contexts currently does not directly regulate the insurance business, the Federal Insurance Office established by the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act") now has an oversight role with respect to insurance regulation.
KKR Capital Markets (Ireland) Limited Company is authorized to engage in a number of regulated activities regulated under MiFID, including dealing as principal or agent, and making arrangements in relation to certain types of specified investments.
KKR Capital Markets (Ireland) Limited is authorized to engage in a number of regulated activities regulated under MiFID, including dealing as principal or agent, and making arrangements in relation to certain types of specified investments.
In Europe, we operate in accordance with the EU Alternative Investment Fund Managers Directive (the “AIFMD”), which establishes a comprehensive regulatory and supervisory framework for alternative investment fund managers (“AIFMs”) that manage or market alternative investment funds (“AIFs”) in the EU.
In Europe, we operate in accordance with the EU Alternative Investment Fund Managers Directive (the “AIFMD”), which establishes a comprehensive regulatory and supervisory framework for alternative investment fund managers (“AIFMs”) that manage or market alternative investment funds in the EU.
Additional sanctions that may be imposed for failure to comply with applicable requirements include the prohibition of individuals from associating with an investment adviser, the revocation of registrations and other censures and fines. KKR Credit Advisors (US) LLC, KKR Registered Advisor LLC and Kohlberg Kravis Roberts & Co.
Additional sanctions that may be imposed for failure to comply with applicable requirements include the prohibition of individuals from associating with an investment adviser, the revocation or suspension of registrations, and other censures and fines. KKR Credit Advisors (US) LLC, KKR Registered Advisor LLC and Kohlberg Kravis Roberts & Co.
As registered broker-dealers, KKR Capital Markets, LLC and Global Atlantic Distributors, LLC are subject to periodic SEC and FINRA examinations and reviews.
As registered broker-dealers, KKR Capital Markets, LLC and Global Atlantic Distributors, LLC are subject to periodic SEC, state and FINRA examinations and reviews.
We earn additional investment income by investing our own capital alongside investors in our investment vehicles and from other assets on our balance sheet. Carried interest we receive from our funds and certain other investment vehicles entitles us to a specified percentage of investment gains that are generated on third-party capital that is invested.
Carried interest that we receive from our investment vehicles entitles us to a specified percentage of investment gains that are generated on third-party capital that is invested. We earn investment income by investing our own capital alongside investors in our funds and other investment vehicles and from other assets we own on our balance sheet.
In addition, you may automatically receive e-mail alerts and other information about our company by enrolling your e-mail address by visiting the "Contacts & Email Alerts" section of our Investor Relations website, available at ir.kkr.com . 45 Table of Contents
In addition, you may automatically receive e-mail alerts and other information about our company by enrolling your e-mail address by visiting the "Contacts & Email Alerts" section of our Investor Relations website, available at ir.kkr.com . 31 Table of Contents
See “—Risks Related to Our Business—Many parts of our earnings and cash flow are highly variable due to the nature of our business.” (5) New business volumes from Global Atlantic’s institutional market channel are based on the assets assumed, net of any ceding commission, and are gross of any retrocessions to investment vehicles that participate in qualifying reinsurance transactions sourced by Global Atlantic and to other third party reinsurers.
See “— Risks Related to Our Business—Parts of our earnings and cash flow are highly variable due to the nature of our business.” (3) New business volumes from Global Atlantic’s institutional market channel are based on the assets assumed, net of any ceding commission, and are gross of any retrocessions to investment vehicles that participate in qualifying reinsurance transactions sourced by Global Atlantic and to other third party reinsurers.
ITEM 1. BUSINESS Overview We are a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. We aim to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in our portfolio companies and communities.
ITEM 1. BUSINESS Overview KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. We aim to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in our portfolio companies and communities.
We seek to invest responsibly by incorporating sustainability, regulatory, and geopolitical considerations into our investment decision-making and investment management practices using an approach that prioritizes business-relevant topics that KKR considers most significant for maximizing and protecting the value of our portfolio companies and assets.
Where appropriate we seek to invest responsibly by incorporating sustainability, regulatory, and geopolitical considerations into our investment decision-making and investment management practices using an approach that prioritizes business-relevant topics that KKR considers most significant for creating, maximizing and protecting the value of our portfolio companies and assets.
We believe that these aspects of our business help us continue to grow our asset management business and deliver strong investment performance in a variety of economic and financial conditions.
We believe that these aspects of our business help us continue to grow our asset management business and deliver strong investment performance in a variety of economic and market conditions.
We make available free of charge on our website or provide a link on our website to our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, and any amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act, as soon as reasonably practicable after those reports are electronically filed with, or furnished to, the SEC.
We make available free of charge on our website or provide a link on our website to this report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, and any amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as soon as reasonably practicable after those reports are electronically filed with, or furnished to, the SEC.
Inc.'s common stock will become vested with all common voting powers on a one vote per share basis, on the "Sunset Date" (which will be no later than December 31, 2026 as provided in the Reorganization Agreement); see "Certain Relationships and Related Transactions, and Director Independence" in this report.
Inc.'s common stock will become vested with all common voting powers on a one vote per share basis, on the "Sunset Date" (which will be no later than December 31, 2026 as provided in the Reorganization Agreement); see "Part III — Item 13. Certain Relationships and Related Transactions, and Director Independence" in this report.
In a people driven business, we believe a breadth of perspectives, skills, and experiences working together collaboratively is the most effective means of producing exceptional results. We pursue this aspiration in a variety of ways including through our different internal committees, strategic external partnerships, and our broader engagement in different communities.
As a people driven business, we believe a breadth of perspectives, skills, and experiences working together collaboratively is the most effective means of producing exceptional results. We pursue this aspiration through our various internal committees, strategic external partnerships, and broader engagement in different communities.
We believe this multi-faceted approach gives us the best opportunity to attract, develop, and retain the best possible talent, which we believe is integral to our success.
We believe this multi-faceted approach enhances our opportunity to attract, develop, and retain the best possible talent, which we believe is integral to our success.
L.P. and its wholly-owned subsidiaries, KKR Credit Advisors (US) LLC, KKR Registered Advisor LLC and KKR Credit Advisors (Singapore) Pte. Ltd., each of which is registered as an investment adviser with the SEC under the Investment Advisers Act of 1940 (the "Investment Advisers Act").
L.P., KKR Credit Advisors (US) LLC, KKR Registered Advisor LLC and KKR Credit Advisors (Singapore) Pte. Ltd., each of which is registered as an investment adviser with the SEC under the Investment Advisers Act of 1940 (the "Investment Advisers Act").
Kohlberg Kravis Roberts & Co. Partners LLP has permission to engage in a number of regulated activities including advising on and arranging deals relating to corporate finance business in relation to certain types of specified investments.
Partners LLP has permission to engage in a number of regulated activities including advising on and arranging deals relating to corporate finance business in relation to certain types of specified investments.
Global Atlantic seeks to focus on investments that have the potential to generate stable, predictable, long-dated asset cash flows, are of high credit quality, and that focus on capital protection.
We seek to focus on investments for Global Atlantic that have the potential to generate stable, predictable, long-dated asset cash flows, are of high credit quality, and that focus on capital protection.
With an annuity product, the policyholder provides Global Atlantic cash, referred to as a premium, in exchange for earning interest on a tax deferred basis and the ability based on the contract terms to take lump sum or periodic withdrawals of their account value.
With an annuity product, the policyholder provides Global Atlantic a cash payment, in exchange for earning interest on a tax deferred basis and the ability based on contractual terms to take a lump sum or periodic withdrawals of their account value.
Building on these efforts and leveraging our industry expertise and intellectual capital have allowed us to capitalize on a broader range of the opportunities we source.
Building on these efforts and leveraging both our industry expertise and intellectual capital has also allowed us to capitalize on a broader range of the opportunities we source.
KKR Capital Markets (Ireland) Limited also benefits from a passport under the single market directives to offer services cross border into all countries in the European Economic Area.
KKR Credit Advisors (Ireland) Unlimited Company and KKR Capital Markets (Ireland) Limited also benefits from a passport under the single market directives to offer services cross border into all countries in the European Economic Area.
Our investment teams have deep industry knowledge and are able to utilize a substantial and diversified capital base; an integrated global investment platform; the expertise of operating professionals, senior advisors, and other advisors; and a worldwide network of business relationships that provide a significant source of investment opportunities, specialized knowledge during due diligence and substantial resources for creating and realizing value for stakeholders.
Our investment teams have deep industry knowledge and can utilize a substantial and diversified capital base; an integrated global investment platform; the expertise of operating professionals and advisors; and a worldwide network of business relationships that provide a significant source of investment opportunities, specialized knowledge for due diligence, and substantial resources for creating value for stakeholders.
Flow reinsurance is an agreement in which an insurance company writes new retail policies and shares an economic portion of such newly issued policies with an insurance company subsidiary of Global Atlantic, as its reinsurer, on an ongoing basis.
Global Atlantic focuses on reinsuring retirement and life liabilities. • Flow reinsurance is an agreement in which an insurance company writes new retail policies and shares an economic portion of such newly issued policies with Global Atlantic, as its reinsurer, on an ongoing basis.
The fees and carried interest paid by the third party investors in our core private equity funds continues to be reported in our Asset Management segment and are not reported in our Strategic Holdings segment. Our Asset Management segment charges a quarterly management fee based on invested capital in our Strategic Holdings segment.
The fees and carried interest paid by the third party investors in our core private equity funds continue to be reported in our Asset Management segment and are not reported in our Strategic Holdings segment. Our Asset Management segment charges a quarterly management fee in our Strategic Holdings segment.
Our capital markets business also provides syndication services in respect of co-investments in transactions participated in by KKR, our funds, Global Atlantic, and third-party clients, which may entitle the firm to receive syndication fees, management fees, and/or a carried interest.
Our capital markets business also provides syndication services for co-investments in transactions participated in by KKR, our investment vehicles, Global Atlantic, and third-party clients, which may entitle the firm to receive transaction fees, management fees, and a carried interest.
KKR Credit Advisors (EMEA) LLP has permission to engage in a number of regulated activities including managing, advising on and arranging deals in relation to certain types of specified investments.
KKR Credit Advisors (EMEA) LLP has permission to engage in a number of regulated activities including dealing as agent, managing, advising on and arranging deals in relation to certain types of specified investments and arranging the safeguarding and administration of assets.
For further information regarding potential risks relating to these and other regulatory and legal requirements that could significantly affect our business, see the "Risk Factors" section of this report, including "—Risks Related to Our Business—Extensive regulation of our businesses affects our activities and creates the potential for significant liabilities and penalties, which could materially and adversely affect KKR." United States Regulation as an Investment Adviser We conduct our advisory business through our investment adviser subsidiaries, including Kohlberg Kravis Roberts & Co.
For further information regarding potential risks relating to these and other regulatory and legal requirements that could significantly affect our business, see the "Risk Factors" section of this report, including "—Risks Related to Regulatory Matters." United States Regulation as an Investment Adviser We conduct our advisory business through our investment adviser subsidiaries, including Kohlberg Kravis Roberts & Co.
The firm's competitors consist primarily of traditional and alternative asset manager sponsors of public and private investment vehicles, real estate development companies, BDCs, investment banks (including activities conducted by their broker-dealers and investment advisers), commercial finance companies, and operating companies acting as strategic buyers.
The firm's competitors consist primarily of traditional and alternative asset managers that sponsor public and private investment vehicles, investment banks (including activities conducted by their broker-dealers and investment advisers), commercial finance companies, and operating companies acting as strategic buyers.
Our core private equity strategy targets investments with a longer holding period and a lower anticipated risk profile than our traditional private equity investments.
Core Private Equity typically targets investments in companies with a longer holding period and a lower anticipated risk profile than traditional private equity investments.
Third-party clients of our capital markets business include multi-national corporations, public and private companies, financial sponsors, mutual funds, pension funds, sovereign wealth funds, and hedge funds globally. Our capital markets business provides these clients with differentiated access to capital through our distribution platform. Our capital markets business underwrites credit facilities and arranges loan syndications and participations.
Third-party clients of our capital markets business include multi-national corporations, public and private companies, financial sponsors, mutual funds, pension funds, sovereign wealth funds, and hedge funds globally. Our capital markets business provides these clients with tailored financing solutions and differentiated access to capital through our distribution platform.
Other Jurisdictions Certain other subsidiaries or funds that we advise are registered with, have been licensed by or have obtained authorizations to operate in their respective jurisdictions other than the jurisdictions described above, including Australia, Canada, Cayman Islands, China, Hong Kong, India, Japan, Korea, Luxembourg, Mauritius, the Netherlands, Saudi Arabia, Singapore, and United Arab Emirates.
Other Jurisdictions Certain other subsidiaries or funds that we advise are registered with, have been licensed by or have obtained authorizations to operate in their respective jurisdictions other than the jurisdictions described above, including Australia, Canada, Cayman Islands, China, India, Korea, Luxembourg, Mauritius, Saudi Arabia, and United Arab Emirates (Dubai International Financial Centre and Abu Dhabi Global Market).
Since the inception of our firm in 1976, we have expanded our investment strategies and product offerings from traditional private equity to areas such as leveraged credit, alternative credit, infrastructure, energy, real estate, growth equity (including technology, health care, and impact strategies), and core private equity.
Since the inception of our firm, we have expanded our investment strategies and product offerings from traditional private equity to other alternative asset classes such as leveraged credit, alternative credit, infrastructure, real estate, energy, growth equity, and core private equity.
As of December 31, 2024, we employed approximately 4,834 people worldwide (1) : Asset Management 2,523 Insurance 1,613 Subsidiary Organizations (2) 698 Total Employees 4,834 (1) The employment headcount categories above align with our internal human capital headcount reporting and may diverge in certain respects with respect to our employees who are responsible for generating the financial results within each of our three reporting segments.
As of December 31, 2025 , we employed 5,043 people worldwide (1) : Asset Management 2,705 Insurance 1,491 Subsidiary Organizations (2) 847 Total Employees 5,043 (1) The employment headcount categories above align with our internal human capital headcount reporting and may differ in certain aspects with respect to our employees who are responsible for generating the financial results within each of our three reporting segments.
Global Atlantic primarily generates income by earning a spread on assets under management, as the difference between its net investment income and the cost of policyholder benefits. Global Atlantic also earns fees paid by policyholders on certain types of contracts and fees paid by third-party investors, which are reported in the asset management segment.
Global Atlantic primarily generates income by earning a spread between the investment income generated from originated assets and the required cost of benefits payable to policyholders. Global Atlantic also earns fees paid by policyholders on certain types of insurance contracts and fees paid by third-party investors, which are reported in our asset management segment.
Ireland We have a number of subsidiaries which are authorized and regulated by the CBI. The CBI is responsible for, among other things, regulating and supervising firms that provide financial services in Ireland, including broker-dealers and investment firms. The CBI also develops and maintains regulatory policies for Ireland's financial services sector.
Ireland and Other European Union Countries We have a number of subsidiaries which are authorized and regulated by the Central Bank of Ireland (the “CBI”). The CBI is responsible for, among other things, regulating and supervising firms that provide financial services in Ireland, including broker-dealers and investment firms.
FS/KKR Advisor serves as investment adviser to FS KKR Capital Corp., KKR FS Income Trust and KKR FS Income Trust Select, which are subject to regulations applicable to BDCs under the Investment Company Act, including portfolio construction requirements and limitations on transactions with affiliates. Certain subsidiaries of Kohlberg Kravis Roberts & Co.
(NYSE: FSK), a publicly listed BDC, KKR FS Income Trust, a privately-offered BDC, and KKR FS Income Trust Select, a privately-offered BDC, which are subject to regulations applicable to BDCs under the Investment Company Act, including portfolio construction requirements and limitations on transactions with affiliates. Certain subsidiaries of Kohlberg Kravis Roberts & Co.
The management and performance fees are charged in order to represent the cost of providing advisory services by our Asset Management segment rather than determining the allocable costs borne by our Asset Management segment to support our Strategic Holdings segment. Competition Our asset management business competes with other investment managers for both investors in our investment vehicles and investment opportunities.
The management and performance fees are charged in order to represent the cost of providing advisory services by our Asset Management segment rather than determining the allocable costs borne by our Asset Management segment to support our Strategic Holdings segment.
Certain employees reported in the separate categories above, including our business operations professionals, may also perform certain functions in support of another headcount category. Our strategic holdings segment is supported by employees within the asset management headcount category.
Certain employees reported in the separate categories above, including our business operations professionals, may also perform certain functions in support of another headcount category. Our strategic holdings segment is supported by employees within the asset management headcount category. (2) Includes employees from certain of our majority owned and controlled subsidiaries such as KJRM and K-Star.
Through this platform we have made investments in sectors such as power and utilities, midstream, energy and energy transition, transportation, asset leasing, water and wastewater, telecommunications infrastructure, and social infrastructure. In 2020, we established the Diversified Core Infrastructure Fund as our first dedicated open-ended core infrastructure fund.
Through this platform we have made investments around the world in sectors such as power and utilities, energy, midstream, energy transition, transportation, asset leasing, water and wastewater, telecommunications infrastructure, and social infrastructure.
Block reinsurance is a transaction in which an insurance company divests a block of insurance policies to Global Atlantic in exchange for Global Atlantic’s obligation to pay a specified portion of future insurance claims arising from that block.
The institutional markets solutions we offer are listed below in more detail. • Block reinsurance is a transaction in which an insurance company divests a block of policies to Global Atlantic in exchange for Global Atlantic’s obligation to pay a specified portion of future insurance claims arising from that block in exchange for a transfer of assets.
These registrations, licenses or authorizations relate to providing investment advice, broker-dealer activities, marketing of securities, and other regulated activities. Failure to comply with the laws and regulations governing these subsidiaries and funds that have been registered, licensed or authorized could expose us to liability and/or damage our reputation. Website and Availability of SEC Filings Our website address is www.kkr.com .
Failure to comply with the laws and regulations governing these subsidiaries and funds that have been registered, licensed or authorized could expose us to liability and/or damage our reputation. 30 Table of Contents Website and Availability of SEC Filings Our website address is www.kkr.com .
KKR Credit Advisors (Ireland) Unlimited Company is also subject to limited regulatory supervision in Germany through KKR Credit Advisors Ireland Frankfurt Branch, France through KKR Credit Advisors Ireland Paris Branch, and Denmark through KKR Credit Advisors Ireland Copenhagen Branch, where these entities operate under the MiFID Freedom of Establishment rules.
KKR Credit Advisors (Ireland) Unlimited Company is also subject to regulatory supervision in France through KKR Credit Advisors Ireland Paris Branch, where this entity operates under the MiFID Freedom of Establishment rules.
Our ability to continue to compete effectively in our businesses will depend upon our ability to attract new investment professionals, other employees, and consultants and retain and motivate our existing investment professionals, other employees, and consultants.
Our ability to continue to compete effectively within our industries will depend upon our ability to attract new employees and retain and motivate our existing employees.
We have developed a global network of experienced managers and operating professionals who assist the private equity portfolio companies in making operational improvements and achieving growth. We augment these resources with operational guidance from operating professionals at KKR Capstone, senior advisors, other advisors and investment teams, and with "100-Day Plans" that focus the firm's efforts and drive our strategies.
We have developed a global network of experienced managers and operating professionals who can assist our portfolio companies in making operational improvements and achieving growth. We augment these resources with operational guidance from our operating professionals at KKR Capstone, executive advisors, senior advisors, industry experts, and other advisors.
We report all of the assets under management of our BDCs in our AUM, but we report only a pro rata portion of the assets under management of our hedge fund partnerships based on our percentage ownership in them.
We only report a pro-rata portion of the assets under management of our hedge fund partnerships based on our percentage ownership in them. Liquid Strategies AUM totals $34 billion as of December 31, 2025.
These kinds of investments have historically consisted of corporate debt, asset-backed finance, specialty finance, transportation finance, securitizations, private loan facilities, and commercial and residential real estate investment opportunities, amongst other asset classes. However, Global Atlantic’s investments are not limited to solely those asset classes.
These kinds of investments have historically consisted of corporate debt, structured products, transportation assets, infrastructure assets, and commercial and residential real estate loans and securities, amongst other asset classes. However, Global Atlantic’s investments are not limited to solely those asset classes.
KKR Alternative Investment Management Unlimited Company, KKR Credit Advisors (Ireland) Unlimited Company and KKR Capital Markets (Ireland) Limited Company are regulated by the CBI. KKR Alternative Investment Management Unlimited Company is an authorized European Union ("EU") alternative investment manager permitted to conduct portfolio management, risk management and certain administrative activities.
KKR Alternative Investment Management Unlimited Company is an authorized European Union ("EU") alternative investment fund manager permitted to conduct portfolio management, risk management and certain administrative activities.
We currently expect our Strategic Holdings segment to generate income from the receipt of dividends from our ownership stakes in these businesses, and if any ownership stake were to be sold, we would recognize realized investment income from such sale.
We currently expect our Strategic Holdings segment primarily to generate income from the receipt of dividends from our ownership stakes in these businesses and, upon the sale of any ownership stake, realized investment income from such sale. As of December 31, 2025, our Strategic Holdings segment consisted of our ownership stakes in 19 companies.
(2) Carried interest earned from our investment funds is allocated to KKR Associates Holdings L.P., which we refer to as the carry pool, from which carried interest that is earned from our investment funds is allocable to our employees and other persons. This entity and the carry pool are not reflected in the organizational structure chart.
(2) Carried interest earned from our investment funds is allocated to KKR Associates Holdings L.P., which we refer to as the carry pool, from which up to 80% of the carried interest that is earned from our investment funds is allocable to our employees and other persons. A wholly-owned subsidiary of KKR & Co.
L.P. also serve as investment advisers to publicly listed companies, including KKR Real Estate Finance Trust and Crescent Energy. 42 Table of Contents Regulation as a Broker-Dealer KKR Capital Markets, LLC, one of our subsidiaries, is registered as a broker-dealer with the SEC under the Exchange Act and in 53 U.S. states and territories, and is a member of FINRA.
Our investment advisers registered under the Investment Advisers Act may also act as sub-advisors to investment companies, including KKR Credit Advisors (US) LLC, which serves as the investment sub-adviser to an Australian listed investment trust, KKR Credit Income Fund (ASX: KKC). 27 Table of Contents Regulation as a Broker-Dealer KKR Capital Markets, LLC, one of our subsidiaries, is registered as a broker-dealer with the SEC under the Exchange Act and in 53 U.S. states and territories, and is a member of FINRA.
The financial strength of Global Atlantic’s life insurance operating subsidiaries is recognized by several ratings agencies. The financial strength ratings of these subsidiaries are “A” with a stable outlook from A.M. Best Company, Inc. (“A.M. Best”), “A2” with a stable outlook from Moody’s Investors Service, Inc.
The financial strength ratings of these subsidiaries are “A” with a stable outlook from A.M. Best Company, Inc. (“A.M. Best”), “A2” with a stable outlook from Moody’s Investors Service, Inc. (“Moody’s”), “A” with a stable outlook from S&P Global Ratings (“S&P”), and “A” with a stable outlook from Fitch Ratings, Inc. ("Fitch").
The timing of receipt of carried interest in respect of investments of our private equity funds is dictated by the terms of the partnership agreements that govern such funds, and is distributed to the general partner of a private equity fund only after all of the following are met: (i) a realization event has occurred (e.g., sale of a portfolio company, dividend, etc.); (ii) the vehicle has achieved positive overall investment returns since its inception, in excess of performance hurdles where applicable, and is accruing carried interest; and (iii) with respect to investments with a fair value below cost, cost has been returned to fund investors in an amount sufficient to reduce remaining cost to the investments' fair value.
The timing of receipt of carried interest is dictated by multiple factors including, but not limited to: (i) a realization event has occurred, (ii) the fund has achieved positive overall investment returns since its inception, in excess of performance hurdles where applicable, and (iii) with respect to investments with a fair value below cost, cost has been returned to fund investors in an amount sufficient to reduce remaining cost to the investments' fair value.
See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates—Critical Accounting Policies and Estimates - Asset Management—Revenues—Capital Allocation-Based Income (Loss)" and "Risk Factors—Risks Related to Our Business—The "clawback" provisions in the agreements governing our carry-paying funds may give rise to a contingent obligation that may require us to return or contribute amounts to our funds and fund investors." We enter into management agreements with our private equity funds pursuant to which we receive management fees in exchange for providing the funds with management and other services.
For a further discussion of netting holes and clawback obligations, see "Management's Discussion and Analysis of Financial Condition and Results of Operations “—Liquidity—Sources of Liquidity", “—Critical Accounting Policies and Estimates —Critical Accounting Policies and Estimates – Asset Management—Revenues—Capital Allocation-Based Income (Loss)", and "Risk Factors—Risks Related to Our Business—The "clawback" provisions in the agreements governing our carry-paying funds have in the past and may in the future give rise to a contingent obligation that requires us to return or contribute significant cash amounts to our funds and fund investors." All of our investment management services and terms are governed by management agreements with KKR or specific KKR subsidiaries registered as investment advisers.
We also use our own capital to bridge capital selectively for our funds’ investments or finance strategic transactions, although the financial results of an acquired business may be reported in our other business lines.
We also use our own capital to bridge capital needs of our funds, to finance strategic asset management transactions, and for underwriting purposes in our capital markets business line, although some or all of the financial results of these actions may be reported in our other business lines.
None of our special purpose financial captive insurance company subsidiaries may declare or pay dividends or distributions in any form to us other than in accordance with its transaction agreements and governing licensing order. 43 Table of Contents State insurance holding company laws and regulations generally provide that no person, corporation or other entity may acquire control of an insurance company, or a controlling interest in any parent company of an insurance company, without the prior approval of such insurance company's domiciliary state insurance regulator.
State insurance holding company laws and regulations generally provide that no person, corporation or other entity may acquire control of an insurance company, or a controlling interest in any parent company of an insurance company, without the prior approval of such insurance company's domiciliary state insurance regulator.
Our core private equity investments are made in companies that, among other things, we believe are more stable and less cyclical, and typically have lower average leverage over our holding period, than those in our traditional private equity funds. Growth Equity.
Core private equity investments are made in companies that we believe are more stable and less cyclical and typically have lower average leverage over the investment holding period compared to those in our traditional private equity funds. Our core private equity vehicles invest globally. As of December 31, 2025 , core private equity AUM totals $41 billion .
In Global Atlantic's individual market channel, sales of annuities include all money paid into new and existing contracts. Individual market channel sales of life insurance products are based on commissionable premium and individual market channel sales for preneed life are based on the face amount of insurance.
In Global Atlantic's individual market channel, sales of annuities include all money paid into new and existing contracts. Individual market channel sales for preneed life are based on the face amount of insurance and do not include the recurring premiums that policyholders may pay over time. (2) Block reinsurance transactions may be episodic and volumes may fluctuate.
In addition, fostering a culture of physical, mental, and emotional health and wellness is a priority for KKR, and we offer tools and resources to our employees so they can make informed health care decisions for themselves and their families.
We also prioritize physical, mental, and emotional health and wellness, and offer a variety of tools and resources to our employees so they can make informed health care decisions for themselves and their families. 24 Table of Contents KKR seeks to actively invest in our communities and engage our employees and other stakeholders in impactful citizenship efforts.
Our insurance business is operated by our wholly-owned subsidiary Global Atlantic, which is a leading retirement and life insurance company that provides a broad suite of protection, legacy and savings products, and reinsurance solutions to clients across individual and institutional markets.
Global Atlantic is a leading retirement and life insurance company, with an over 20-year track record of providing a broad suite of protection, legacy, and savings products to customers and reinsurance solutions to clients across individual and institutional markets.
The term of our private equity funds generally last for 10 to 12 years and may last up to 15 years from the date of the fund's first or last investment, subject to a limited number of extensions with the consent of the limited partners or the applicable advisory committee.
The following is a general description of our investment fund and vehicle lives. • The terms of our drawdown private equity funds are typically 10 to 12 years from the date of the fund's first or last investment, subject to a limited number of extensions with the consent of the limited partners.
Our investment teams operate with a single culture that rewards investment discipline, creativity, determination, and patience, and emphasizes the sharing of information, resources, expertise and best practices across offices and asset classes.
Our key focuses include driving exceptional performance and enhancing our firm's culture of collaboration. Our teams operate with a distinct culture that rewards investment discipline, creativity, determination, and patience, and emphasizes the sharing of information, resources, expertise and best practices across offices and asset classes. We believe our one-firm approach helps ensure we share responsibility and success.
In addition to leveraging the resources of the firm, our infrastructure, real estate, and energy investment teams typically partner with technical experts and operators to manage our Real Asset investments.
In addition to leveraging the resources of the firm, our infrastructure, real estate, and energy investment teams typically partner with technical experts and operators to manage our Real Assets investments. Investment Vehicle Structures, Fee Arrangements and Carried Interest Many investment funds that we sponsor and manage as the general partner have finite lives and investment periods.
However, the ability of a primary insurer to take credit for the reinsurance purchased from reinsurance companies is a significant component of reinsurance regulation. Typically, a primary insurer will only enter into a reinsurance agreement if it can obtain credit against its reserves on its statutory basis financial statements for the reinsurance ceded to the reinsurer.
Typically, a primary insurer will only enter into a reinsurance agreement if it can obtain credit against its reserves on its statutory basis financial statements for the reinsurance ceded to the reinsurer. 28 Table of Contents Our U.S. insurance subsidiaries are subject to restrictions on the payment of dividends.
Since 2014, our private equity fund agreements typically require us to share 100% of any monitoring, transaction, and other fees that are allocable to a fund (after reduction for expenses incurred allocable to a fund from unconsummated transactions) with fund investors.
Since 2014, our fund agreements typically require us to share 100% of any monitoring, transaction, and break-up fees that are allocable to a fund (after reduction for “broken deal” expenses) with fund investors, therefore these types of fees, when generated, are uniquely driven by co-investment opportunities.
As of December 31, 2024, Global Atlantic had $5.3 billion of funding agreements outstanding under the FABN program. 33 Table of Contents The following table represents Global Atlantic’s new business volumes by business and product for the years ended December 31, 2024 and 2023: Years Ended December 31, 2024 2023 ($ in millions) Individual Channel: Fixed-Rate Annuities $ 7,777 $ 7,509 Fixed-Indexed Annuities 7,025 3,606 Variable Annuities 19 23 Total Retirement Products (1) $ 14,821 $ 11,138 Life Insurance Products (2) $ — $ 9 Preneed Life $ 605 $ 299 Institutional Channel: Block $ 11,881 $ 10,854 Flow 11,865 9,787 Pension Risk Transfer 996 1,471 Funding Agreements (3) 2,373 510 Total Institutional Channel (4)(5) $ 27,115 $ 22,622 (1) New business volumes in individual markets are referred to as sales.
As of December 31, 2025 , Global Atlantic had $8 billion of funding agreements outstanding under the FABN program. 21 Table of Contents The following table represents Global Atlantic’s new business volumes by business and product for the last five years: Years Ended December 31, ($ in millions) 2021 2022 2023 2024 2025 Individual Channel (1) : Retirement Products $ 7,840 $ 9,464 $ 11,138 $ 14,821 $ 12,339 Preneed Life 245 277 299 605 1,139 Institutional Channel (2)(3) $ 26,165 $ 18,377 $ 22,622 $ 27,115 $ 20,953 (1) New business volumes in individual markets are referred to as sales.
The level of regulation and supervision to which we are subject varies from jurisdiction to jurisdiction and is based on the type of business activity involved. We, in conjunction with our outside advisors and counsel, seek to manage our business and operations in compliance with such regulation and supervision.
We, in conjunction with our outside advisors and counsel, seek to manage our business and operations in compliance with such regulation and supervision.
We believe incorporating such business-relevant issues in our investment process can help us both create and protect value.
Sustainability In our experience, the thoughtful review and management of sustainability, regulatory, and geopolitical issues can be an essential part of long-term business success. We believe incorporating such business-relevant issues in our investment process can help us both protect and create value.
We believe that our global capabilities and one-firm philosophy have been critical to our success, including enabling us to raise substantial capital, capture a greater number of investment opportunities, and assist our portfolio companies in their increasing reliance on global markets and sourcing, and have also facilitated the diversification of our operations. 8 Table of Contents Though our operations span multiple continents and asset classes, our investment professionals are supported by an integrated infrastructure and operate under a common set of principles and business practices that are monitored by a variety of committees.
We believe that our global capabilities and one- firm philosophy have been critical to our success, enabling us to raise substantial capital, realize a greater number of investment opportunities, assist our portfolio companies in their increasing reliance on global markets and sourcing, and diversify our business and operations.
The Investment Company Act and the rules thereunder, among other things, regulate the relationship between a registered investment company and its investment adviser and prohibit or restrict principal transactions and joint transactions.
RICs sub-advised by our investment advisers include Capital Group KKR Core Plus+ and Capital Group KKR Multi-Sector+. The Investment Company Act and the rules thereunder, among other things, regulate the relationship between a registered investment company and its investment adviser and prohibit or restrict principal transactions and joint transactions. FS/KKR Advisor serves as investment adviser to FS KKR Capital Corp.
L.P. are also subject to regulation as investment advisers to RICs under the Investment Company Act. RICs advised by our investment advisers include KKR Income Opportunities Fund, KKR Credit Opportunities Portfolio and KREST.
L.P. are also subject to regulation as investment advisers to investment companies registered under the Investment Company Act and such registered investment companies, "RICs"). RICs advised by our investment advisers include KKR Income Opportunities Fund (NYSE: KIO), KKR Asset-Based Finance Fund (an interval fund) and KKR Real Estate Select Trust Inc. (a tender offer fund).
The management fees we are paid for managing RICs are generally subject to contractual rights that require their board of directors to provide prior notice in order to terminate our investment management services . 28 Table of Contents Capital Markets Our Capital Markets business line is comprised of our global capital markets business, which is integrated with KKR’s asset management business line, and serves our firm, including our insurance business, our portfolio companies, and third-party customers by developing and implementing both traditional and non-traditional capital solutions for investments or companies seeking financing.
Capital Markets Our Capital Markets business line is comprised of our global, but locally operated, capital markets business, which is integrated with KKR’s asset management business, and serves our firm, including our portfolio companies, our insurance business, and third-party customers by developing and implementing both traditional and non-traditional capital solutions for investments and companies seeking financing.
Violations of these requirements may result in censures, fines, imposition of additional requirements, injunctions, restitution orders, revocation or modification of permissions or registrations, the suspension or expulsion from certain "controlled functions" within the financial services industry of officers or employees performing such functions or other similar consequences. 44 Table of Contents KKR Capital Markets Partners LLP has permission to engage in a number of regulated activities regulated under FSMA, including dealing as principal or agent and arranging deals in relation to certain types of specified investments and arranging the safeguarding and administration of assets.
Violations of these requirements may result in censures, fines, imposition of additional requirements, injunctions, restitution orders, revocation or modification of permissions or registrations, the suspension or expulsion from certain "controlled functions" within the financial services industry of officers or employees performing such functions or other similar consequences.
Our asset-based finance strategy focuses on multi-sector investments secured by portfolios of financial assets, including loans backed by hard assets across the risk-return spectrum. We also own 19 captive origination platforms that are dedicated to sourcing and structuring asset-based financial assets, hard assets, and contractual cash flows. • Strategic Investments Group.
The alternative credit sub-strategies are detailed below. • Asset-based finance focuses on multi-sector investments secured by portfolios of financial assets including consumer and mortgage finance, commercial finance, contractual cash flows, and loans backed by hard assets across the risk- return spectrum.
We believe that competition for investors in our investment vehicles is based primarily on investment performance, investor liquidity and willingness to invest, investor perception of investment managers' drive, focus and alignment of interest, business reputation, duration of relationships, quality of services, pricing, fund terms including fees, and the relative attractiveness of the types of investments that have been or are to be made.
We believe that competition for fundraising for institutional and individual investor capital is based on a variety of factors, including investment performance, investor liquidity and willingness to invest, investor reputation, including focus and alignment of interest, duration of relationships, quality of services, and pricing and fund terms, including fees.
As of December 31, 2024, we and our employees and other personnel have approximately $28.6 billion invested in or committed to our own funds and portfolio companies, including $12.2 billion of capital funded from our balance sheet, $11.0 billion of additional capital committed by our balance sheet to our investment funds and other investment vehicles, $4.2 billion funded from personal investments, and $1.2 billion of additional capital commitments from personal investments. 9 Table of Contents Private Equity Overview Through our Private Equity business line, we manage and sponsor a group of private equity investment vehicles that invest capital for long-term appreciation, either through controlling ownership of a company or strategic non-controlling minority positions.
As of December 31, 2025, we and our employees and other personnel have approximately $30 billion invested in or committed to our own funds and portfolio companies, including approximately $15 billion of capital funded from our balance sheet, $10 billion of additional capital committed by our balance sheet to our investment funds and other investment vehicles, $4 billion funded from personal investments, and $1 billion of additional capital commitments from personal investments. 11 Table of Contents Private Equity Our Private Equity business line represents $229 billion of AUM and $151 billion of FPAUM as of December 31, 2025 , across traditional private equity, core private equity, and growth equity.
Global Atlantic operates in flow reinsurance by partnering with insurance companies that sell retirement products, such as multi-year guaranteed annuities or single premium immediate annuities. Global Atlantic seeks to ensure that its partnerships generate profitable growth, repricing flow reinsurance products as market conditions evolve. • PRT Transactions.
Global Atlantic operates in flow reinsurance by partnering with insurance companies that sell retirement products, such as multi- year guaranteed annuities or single premium immediate annuities. • PRT is a transaction in which a pension plan sponsor, such as a corporation, transfers the risk associated with the pension plan’s liabilities to Global Atlantic.
Funding agreements, including those issued in connection with a FABN program, are a deposit-type contract issued by Global Atlantic’s insurance company subsidiaries. In general, a funding agreement provides its holder with a guaranteed return of principal and periodic interest payments.
In general, a funding agreement provides its holder with a guaranteed return of principal and periodic interest payments.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeFor example, KKR or a specific investment vehicle may sell an investment at a different time or for different consideration than other investment vehicles; • We may invest on behalf of our investment vehicles, or for our own account, in a portfolio company of one investment vehicle that is a competitor, service provider, supplier, customer, or other counterparty with respect to a portfolio company of another investment vehicle; • We may structure an investment in a manner that may be attractive to investment vehicle investors from a tax perspective even though KKR is required to pay corporate taxes; • A decision to acquire material non-public information about a company while pursuing an investment opportunity for a particular investment vehicle or our own account may result in our having to restrict the ability of other investment vehicles to take any action with regards to that company or its securities; • Our fiduciary obligations to our investment vehicle investors may preclude us from pursuing attractive proprietary investment opportunities, in particular as we enter into strategic relationships with broad investment mandates similar to the investments we make with our balance sheet; • Conflicts may arise in allocating investments, time, services, expenses or resources among the investment activities of our investment vehicles, KKR, other KKR-affiliated entities and the employees of KKR; • Our employees have made personal investments in a variety of our investment vehicles, which may result in conflicts of interest among investors of our investment vehicles or stockholders regarding investment decisions for these investment vehicles; • Our entitlement to receive carried interest from many of our investment vehicles may create an incentive for us to make riskier and more speculative investments on behalf of an investment vehicle than would be the case in the absence of such an arrangement.
Biggest changeMoreover, the challenge of allocating investment opportunities to certain vehicles and managing any conflicts of interest may be exacerbated as we expand our business to include more lines of business, including as we increasingly undertake business initiatives to increase the number and types of investment products and vehicles we offer to individual investors; • Conflicts of interest may arise between one or more investment vehicles, on one hand, and our firm or our balance sheet assets (including through our Strategic Holdings business), on the other, with respect to the purchase or sale of investments or the allocation of such opportunities, the structuring or exercise of rights with respect to investments, and the advice we provide to our investment vehicles (including our insurance subsidiaries); • We or our investment vehicles may invest in a portfolio company that is a competitor, service provider, supplier, customer, or other kind of counterparty with respect to a portfolio company in which we or another investment vehicle hold an investment; • We are required to act in the best interests of our funds, and so we may take actions that favor the interests of our funds over our own, which could result in less investment or other income for us; e.g., we may structure an investment in a manner that may be attractive to investment vehicle investors from a tax perspective even though we would be required to pay corporate taxes; • We are required to allocate investment opportunities among investment vehicles that may have overlapping investment objectives, which may result in investments being allocated to investment vehicles that are less profitable for us; • A dispute may arise between us and the portfolio companies of the funds we manage, and the investors in the funds we manage may be dissatisfied with our handling of such dispute; • A decision to pursue an investment opportunity for a particular investment vehicle (or our own account) may result in our having to restrict the ability of other investment vehicles (or our own account), e.g., the acquisition of maternal non-public information about a company may preclude other investment opportunities that could be available with respect to the securities of such company, or the acquisition of a company could give rise to antitrust or other regulatory restrictions that prevent, prohibit or restrict similar investment opportunities for other investment vehicles or portfolio companies; • Our employees have made personal investments in a variety of our investment vehicles typically on a no-fee, no- carry basis, which may result in conflicts of interest with the investors of our investment vehicles with respect investment decisions for these investment vehicles; • Our entitlement to receive carried interest from many of our investment vehicles may create an incentive for us to make riskier and more speculative investments on behalf of an investment vehicle than would be the case in the absence of such an arrangement; in addition, investments must be held for more than three years under U.S. tax laws for carried interest to be treated for U.S. federal income tax purposes as long-term capital gain, which may create a conflict of interest between the limited partner investors (whose investments would receive such long-term capital gain treatment after a holding period of only one year) and us as the general partner on the execution, closing or timing of sales of investments; 65 Table of Contents • From time to time, one of our funds or other investment vehicles (including CLOs) may seek to effect a purchase or sale of an investment with one or more of our other funds or other investment vehicles in a so-called cross transaction under U.S. securities laws, or we as a principal may seek to effect a purchase or sale of our investment with one or more of our funds or other investment vehicles in a so-called principal transaction under U.S. securities laws; • We own or control service providers that provide services to our investment vehicles or their investments, which could give rise to a number of claims of conflicts of interest, including that such service provider is being unnecessarily engaged or is being engaged at rates or terms that are no on an arms-length arrangement or that payments by such investment vehicles or investment unfairly benefit us; • Our investment vehicles invest in a broad range of asset classes throughout the corporate capital structure.
Depending on which entity is a party to these agreements and/or the laws applicable to them, we may not be able to, or may choose not to, enforce them or become subject to lawsuits or other claims, and certain of these agreements might be waived, modified or amended at any time without our consent.
Depending on which entity is a party to these agreements and the laws applicable to them, we may not be able to, or may choose not to, enforce them or become subject to lawsuits or other claims, and certain of these agreements might be waived, modified or amended at any time without our consent.
To maintain or increase investment returns, it may be necessary to expand the scope of Global Atlantic's investing activities to asset classes in which Global Atlantic historically has not invested, which may increase the risk of Global Atlantic's investment portfolio.
To maintain or increase Global Atlantic’s investment returns, it may be necessary to expand the scope of Global Atlantic’s investing activities to asset classes in which Global Atlantic historically has not invested, which may increase the risk of Global Atlantic’s investment portfolio.
Global Atlantic may need to seek additional capital to manage its growth, and Global Atlantic may not be able to maintain its current strong capital position as it grows. As Global Atlantic grows, it must invest additional assets, which poses increased investment risk.
Global Atlantic may need to seek additional capital to manage its growth, and it may not be able to maintain its current strong capital position as it grows. As Global Atlantic grows, it must invest additional assets, which poses increased investment risk.
These accounting estimates require the use of assumptions, some of which are highly uncertain at the time of estimation. These estimates are based on judgment, current facts and circumstances and, when applicable, internally developed models. Therefore, actual results could differ from these estimates, possibly in the near term, and could have a material adverse effect on our financial statements.
These accounting estimates require the use of assumptions, some of which are highly uncertain at the time of estimation. These estimates and are based on judgment, current facts and circumstances and, when applicable, internally developed models. Therefore, actual results could differ from these estimates, possibly in the near term, and could have a material adverse effect on our financial statements.
Financial strength ratings are published by various nationally recognized statistical rating organizations ("NRSROs") and similar entities not formally recognized as NRSROs. Rating organizations periodically review the financial performance, capital adequacy and condition of insurers, including Global Atlantic's insurance and reinsurance subsidiaries. Rating agencies also consider general economic conditions and other circumstances outside the rated company's control in assigning a rating.
Financial strength ratings are published by various nationally recognized statistical rating organizations (“NRSROs”) and similar entities not formally recognized as NRSROs. Rating organizations periodically review the financial performance, capital adequacy and condition of insurers, including Global Atlantic’s insurance and reinsurance subsidiaries. Rating agencies also consider general economic conditions and other circumstances outside the rated company’s control in assigning a rating.
In addition, to the extent that conditions in the credit markets impair the ability of our portfolio companies to refinance or extend maturities on their outstanding debt, either on favorable terms or at all, the operating performance of those portfolio companies may be negatively impacted, which could impair the value of our investment in those portfolio companies and lead to a decrease in the investment income earned by us.
In addition, to the extent that conditions in the credit markets impair the ability of our portfolio companies to refinance or extend maturities on their outstanding debt, either on favorable terms or at all, the performance of those portfolio companies may be negatively impacted, which could impair the value of our investment in those portfolio companies and lead to a decrease in the investment income earned by us.
As a “controlled company” we have elected not to comply with certain corporate governance requirements of the NYSE, including the requirements: (i) that the listed company have a nominating and corporate governance committee that is composed entirely of independent directors, (ii) that the listed company have a compensation committee that is composed entirely of independent directors and (iii) that the compensation committee be required to consider certain independence factors when engaging compensation consultants, legal counsel and other committee advisers.
As a “controlled company” we have currently elected not to comply with certain corporate governance requirements of the NYSE, including the requirements: (i) that the listed company have a nominating and corporate governance committee that is composed entirely of independent directors, (ii) that the listed company have a compensation committee that is composed entirely of independent directors and (iii) that the compensation committee be required to consider certain independence factors when engaging compensation consultants, legal counsel and other committee advisers.
The OECD’s proposals may also lead to an increase in the complexity, burden and cost of tax compliance for us and our funds’ portfolio companies. Given ongoing design, implementation, administration, and interpretation of such proposals, the timing, scope, and impact of any relevant domestic legislation or multilateral conventions remain subject to significant uncertainty.
The OECD’s proposals may also lead to an increase in the complexity, burden and cost of tax compliance for us and our portfolio companies. Given ongoing design, implementation, administration, and interpretation of such proposals, the timing, scope, and impact of any relevant domestic legislation or multilateral conventions remain subject to significant uncertainty.
If applicable interest rates rise, then the assumed cost of capital for the equity investments in our portfolio companies would be expected to increase under the discounted cash flow analysis, and this effect would negatively impact their valuations if not offset by other factors.
If interest rates rise, then the assumed cost of capital for the equity investments in our portfolio companies would be expected to increase under the discounted cash flow analysis, and this effect would negatively impact their valuations if not offset by other factors.
Key distribution partners, such as banks and broker-dealers, may merge, change their business models in ways that affect how Global Atlantic's products are sold, or terminate their distribution contracts with Global Atlantic, or new distribution channels could emerge and adversely impact the effectiveness of Global Atlantic's distribution efforts.
Key distribution partners, such as banks and broker-dealers, may change their business models in ways that affect how Global Atlantic’s products are sold, or terminate their distribution contracts with Global Atlantic, or new distribution channels could emerge and adversely impact the effectiveness of Global Atlantic’s distribution efforts.
For reinsurance transactions in which the ceding company cedes all or a portion of the risk to Global Atlantic, Global Atlantic's reinsurance agreements typically include a recapture right that is triggered if, for example, Global Atlantic fails to maintain certain minimum levels of capitalization or certain minimum levels of reserves to support the business reinsured.
Conversely, for reinsurance transactions in which the ceding company cedes all or a portion of the risk to Global Atlantic, Global Atlantic’s reinsurance agreements typically include a recapture right that is triggered if, for example, Global Atlantic fails to maintain certain minimum levels of capitalization or certain minimum levels of reserves to support the business reinsured.
A decline in realized or unrealized gains, a failure to achieve a performance hurdle or an increase in realized or unrealized losses, would adversely affect KKR’s financial results. The timing and receipt of carried interest from our investment vehicles are unpredictable and will contribute to the volatility of our cash flows.
A decline in realized or unrealized gains, a failure to achieve a performance hurdle, or an increase in realized or unrealized losses, would adversely affect our financial results. The timing and receipt of carried interest from our investment vehicles are unpredictable and will contribute to the volatility of our cash flows.
There can be no assurance that we will be able to accomplish any sustainability-related goals or commitments that we have announced or may announce in the future, as such statements are, or reflect, estimates, aspirations and/or expectations only at the time of announcement.
There can be no assurance that we will be able to accomplish any sustainability-related goals or commitments that we have announced or may announce in the future, as such statements are, or reflect, estimates, aspirations or expectations only at the time of announcement.
Growing interest on the part of investors and regulators in sustainability factors and increased demand for, and scrutiny of, asset managers' sustainability-related disclosure, have also increased the risk that asset managers could be perceived as, or accused of, making inaccurate or misleading statements regarding these matters.
Growing interest on the part of investors and regulators in sustainability matters and increased demand for, and scrutiny of, asset managers’ sustainability-related disclosure, have also increased the risk that asset managers could be perceived as, or accused of, making inaccurate or misleading statements regarding these matters.
If the IRS were successfully to challenge Global Atlantic's intercompany reinsurance arrangements between its subsidiaries or Global Atlantic's tax treatment of funds withheld coinsurance with non-U.S. reinsurers (including the Bermuda insurance subsidiaries), we could be materially and adversely affected.
If the IRS were successfully to challenge Global Atlantic's intercompany reinsurance arrangements between its subsidiaries or Global Atlantic's tax treatment of funds withheld coinsurance with non-U.S. reinsurers (including our Bermuda insurance subsidiaries), we could be materially and adversely affected.
Additionally, in certain of our investment vehicles that derive management fees only on the basis of invested capital, the pace at which we make investments, the length of time we hold such investments, and the timing of disposition will directly impact our revenues.
Additionally, in certain of our investment vehicles that derive management fees only on the basis of invested capital, the pace at which we make investments, the length of time we hold such investments, and the timing of disposition will impact our revenues.
If such current or former employees or other persons do not satisfy their share of any clawback obligation, we will be responsible for funding the entire clawback obligation and may need to seek other sources of liquidity to fund such an obligation.
If such current or former employees do not satisfy their share of any clawback obligation, we will be responsible for funding the entire obligation and may need to seek other sources of liquidity to fund such an obligation.
Further, declining real estate values significantly increase the likelihood that we or our investment vehicles will incur losses on loans in the event of default because the value of our collateral may be insufficient to cover the costs on the loan.
Declining real estate values significantly increase the likelihood that we or our investment vehicles will incur losses on loans in the event of default because the value of our collateral may be insufficient to cover the costs on the loan.
Although reinsurers are liable to Global Atlantic to the extent of the reinsurance coverage it acquires, Global Atlantic remains primarily liable as the direct insurer on all risks that it writes; therefore, Global Atlantic's reinsurance agreements do not eliminate its obligation to pay claims.
Although reinsurers are liable to Global Atlantic to the extent of the reinsurance coverage it acquires, Global Atlantic remains primarily liable as the direct insurer on all risks that it writes. Global Atlantic’s reinsurance agreements do not eliminate its obligation to pay claims.
As a result, the loss of these personnel could jeopardize our relationships with these individuals and entities, result in the reduction of AUM or investment opportunities, or render us unable to maintain operations and support growth of our businesses.
As a result, the loss of key personnel could jeopardize our relationships with these individuals and entities, result in the reduction of AUM or investment opportunities, or render us unable to maintain operations and support growth of our businesses.
Growth opportunities may also be in new or adjacent product offerings and in new jurisdictions where Global Atlantic historically has had less experience. Pursuing opportunities in these new areas may subject Global Atlantic to new and complex insurance regulations and business considerations.
Growth opportunities may also be in new or adjacent product offerings and in new jurisdictions where Global Atlantic historically has had less or no experience. Pursuing opportunities in these new areas may subject Global Atlantic to new and complex insurance regulations and business considerations.
Our tolerance for complexity presents risks, as such transactions can be more difficult, expensive and time consuming to finance and execute, and it can be more difficult to manage or realize value from these types of investments.
Our tolerance for complexity presents significant risks, as such transactions can be more difficult, expensive and time consuming to finance and execute, and it can be more difficult to manage or realize value from these types of investments.
As a result of such overseas scrutiny, the BMA has implemented and imposed additional requirements on the licensed insurance companies it regulates to achieve equivalence under Solvency II, the solvency regime applicable to the EU insurance sector.
As a result of such scrutiny, the BMA has implemented and imposed additional requirements on the licensed insurance companies it regulates to achieve equivalence under Solvency II, the solvency regime applicable to the EU insurance sector.
Moreover, the failure to comply with covenants contained in any of our debt agreements could trigger prepayment obligations that could materially and adversely affect us by causing additional liquidity constraints.
Moreover, the failure to comply with covenants contained in any of our debt agreements could trigger prepayment obligations that could materially and adversely affect us by causing liquidity constraints.
These restrictions may limit Global Atlantic's ability to invest and KKR's ability to earn fees on those investments. In addition, our insurance and reinsurance subsidiaries are subject to laws and regulations governing affiliate transactions.
These restrictions may limit Global Atlantic’s ability to invest in and our ability to earn fees on those investments. In addition, our insurance and reinsurance subsidiaries are subject to laws and regulations governing affiliate transactions.
Historical returns of our investment vehicles should not be relied upon as indicative of the future results that you should expect from our investment vehicles and are not indicative of the future results of our insurance subsidiaries or our balance assets.
Historical returns of our investment vehicles should not be relied upon as indicative of the future results that you should expect from our investment vehicles and are not indicative of the future results of our insurance subsidiaries or our balance sheet assets.
If anything were to happen which would cause us to be deemed to be an investment company under the Investment Company Act, requirements imposed by the Investment Company Act, including limitations on our capital structure, ability to transact business with affiliates and ability to compensate key employees, would make it impractical for us to continue our business as currently conducted, impair the agreements and arrangements between and among us, and materially and adversely affect us.
If anything were to happen that would cause us to be deemed to be an investment company under the Investment Company Act, requirements imposed by the Investment Company Act, including limitations on our capital structure, ability to transact business with affiliates and ability to compensate key employees, would make it impractical for us to continue our business as currently conducted, impair the agreements and arrangements between and among us, and materially and adversely affect us.
In some cases, the inability of our portfolio companies to refinance or extend maturities may result in the inability of those companies to repay debt at maturity or pay interests when due, and may cause the companies to sell assets, undergo a recapitalization or seek bankruptcy protection, any of which would also likely impair the value of our investment and lead to a decrease in the investment income earned by us.
In some cases, the inability of our portfolio companies to refinance or extend maturities may result in the inability of those companies to repay debt at maturity or pay interests when due, and may cause the companies to sell assets, undergo a recapitalization or seek bankruptcy protection, any of which would likely materially impair the value of our investment and lead to a decrease in the investment income earned by us.
Instances of bribery, fraud, accounting irregularities and other improper, illegal or corrupt practices can be difficult to detect, and fraud and other deceptive practices can be widespread in certain jurisdictions.
In addition, instances of bribery, fraud, accounting irregularities and other improper, illegal or corrupt practices can be difficult to detect, and fraud and other deceptive practices can be widespread in certain jurisdictions.
The laws and regulations of the jurisdictions in which our insurance and reinsurance subsidiaries are domiciled or may be deemed commercially domiciled may require these companies to, among other things, maintain minimum levels of 116 Table of Contents statutory capital, surplus and liquidity, meet solvency standards, submit to periodic examinations of their financial condition, restrict payments of dividends and distributions of capital, restrict our ability, in certain cases, to write insurance and reinsurance policies, make certain types of investments and distribute funds, and restrict the type and concentration of investments that can be made.
The laws and regulations of the jurisdictions in which our insurance and reinsurance subsidiaries are domiciled or may be deemed commercially domiciled may require these companies to, among other things, maintain minimum levels of statutory capital, surplus and liquidity, meet solvency standards, submit to periodic examinations of their financial condition, restrict payments of dividends and distributions of capital, restrict our ability, in certain cases, to write insurance and reinsurance policies, make certain types of investments and distribute funds, and restrict the type and concentration of investments that can be made.
Many U.S. states and countries in which we operate have proposed, considered, or have already adopted, laws and rules which significantly limit or ban noncompete clauses between employers and their employees, which could both limit our ability to enter into such restrictive covenants and our ability to enforce them.
Many countries and states within the U.S. in which we operate have proposed, considered, or have already adopted, laws and rules which significantly limit or ban noncompete clauses between employers and their employees, which could both limit our ability to enter into such restrictive covenants and our ability to enforce them.
A person will generally be deemed to be an "investment company" for purposes of the Investment Company Act if: • it is or holds itself out as being engaged primarily, or proposes to engage primarily, in the business of investing, reinvesting or trading in securities; or • absent an applicable exemption, it owns or proposes to acquire investment securities having a value exceeding 40% of the value of its total assets (exclusive of U.S. government securities and cash items) on an unconsolidated basis.
However, a person will generally be deemed to be an investment company for purposes of the Investment Company Act if (1) it is or holds itself out as being engaged primarily, or proposes to engage primarily, in the business of investing, reinvesting or trading in securities, or (2) absent an applicable exemption, it owns or proposes to acquire investment securities having a value exceeding 40% of the value of its total assets (exclusive of U.S. government securities and cash items) on an unconsolidated basis.
In addition, allocating investment opportunities appropriately frequently involves significant and subjective judgments. The risk that investors in our investment vehicles or regulators could challenge allocation decisions as inconsistent with our obligations under applicable law, governing fund agreements, or our own policies cannot be eliminated.
Allocating investment opportunities frequently involves significant and subjective judgments. The risk that investors in our investment vehicles or regulators could challenge allocation decisions as inconsistent with our obligations under applicable law, governing fund agreements, or our own policies cannot be eliminated.
We conduct capital markets activities in connection with transactions in which our investment funds or insurance companies may participate as a sponsor or as a purchaser or a seller of securities, which could constitute a conflict of interest or subject us to regulatory scrutiny, liabilities or reputational harm.
We conduct capital markets activities in connection with transactions in which our investment vehicles or insurance companies may participate as a sponsor or as a purchaser or a seller of securities, which could constitute a conflict of interest or subject us to regulatory scrutiny, liabilities or reputational harm.
In addition, Global Atlantic expects that substantially all of its unrealized losses will not be realized as it intends to hold these investments until recovery of the losses, which may be at maturity, as part of its asset liability cash-flow matching strategy.
In addition, Global Atlantic expects that substantially all of its unrealized losses will not be realized as it typically intends to hold investments until recovery of the losses, which may be at maturity, as part of its asset liability cash-flow matching strategy.
Our certificate of incorporation requires that (i) any derivative action, suit or proceeding brought on behalf of KKR, (ii) any action, suit or proceeding asserting a claim of breach of a fiduciary duty owed by any current or former director, officer, employee or stockholder of KKR to KKR or KKR's stockholders, (iii) any action, suit or proceeding asserting a claim arising pursuant to any provision of the Delaware General Corporation Law ("DGCL"), our certificate of incorporation or our bylaws or as to which the DGCL confers jurisdiction on the Court of Chancery of the State of Delaware or (iv) any action, suit or proceeding asserting a claim governed by the internal affairs doctrine may only be brought in the Court of Chancery of the State of Delaware or, if such court does not have subject matter jurisdiction thereof, the federal district court located in the State of Delaware.
Our certificate of incorporation requires that (i) any derivative action, suit or proceeding brought on behalf of KKR, (ii) any action, suit or proceeding asserting a claim of breach of a fiduciary duty owed by any current or former director, officer, employee or stockholder of KKR to KKR or KKR’s stockholders, (iii) any action, suit or proceeding asserting a claim arising pursuant to any provision of the Delaware General Corporation Law, our certificate of incorporation or our bylaws or as to which the Delaware General Corporation Law confers jurisdiction on the Court of Chancery of the State of Delaware or (iv) 78 Table of Contents any action, suit or proceeding asserting a claim governed by the internal affairs doctrine may only be brought in the Court of Chancery of the State of Delaware or, if such court does not have subject matter jurisdiction thereof, the federal district court located in the State of Delaware.
While we have endeavored to mitigate the risk of other disruptions in the future, there can be no guarantee these mitigation efforts will be successful. We may continue to experience reputational impacts and heightened regulatory scrutiny as a result of these matters.
While we have endeavored to mitigate the risk of other disruptions in the future, there can be no guarantee these mitigation efforts will be successful. We may experience material reputational impacts and heightened regulatory scrutiny as a result of these matters.
If we were deemed to be an "investment company" subject to regulation under the Investment Company Act, applicable restrictions could make it impractical for us to continue our business as contemplated and could have a material adverse effect on our business.
If we were deemed to be an “investment company” subject to regulation under the Investment Company Act, applicable restrictions could make it impractical for us to continue our business as contemplated and could have a material adverse effect on our business.
Any inability, or perceived inability, by us or our portfolio companies to adequately address privacy concerns, or comply with applicable privacy laws, regulations, policies, industry standards and guidance, related contractual obligations, or other privacy legal obligations, even if unfounded, could result in significant regulatory and third party liability, increased costs, disruption of our and our portfolio companies’ business and operations, and a loss of investor confidence and other reputational damage.
Any inability, or perceived inability, by us to adequately address privacy concerns, or comply with applicable privacy laws, regulations, policies, industry standards and guidance, related contractual obligations, or other privacy legal obligations, even if unfounded, could result in significant regulatory and third-party liability, increased costs, disruption of our business and operations, and a loss of investor confidence and other reputational damage.
In addition, claims arising from the occurrence of such events could have an adverse effect on our insurance activities, in particular with respect to lapses and surrenders of existing policies, as well as sales of new policies.
In addition, claims arising from the occurrence of such events could have an adverse effect on our insurance activities, in particular with respect to increases in the number of claims, lapses and surrenders of existing policies, as well as sales of new policies.
We are also exposed to risks of litigation, investigation or negative publicity in the event of any transactions that are alleged not to have been properly considered and approved under applicable law.
We are also exposed to risks of litigation, investigation or negative publicity in the event any transactions we undertake are alleged not to have been properly considered and approved under applicable law.
We intend to seek to grow our businesses by increasing AUM in existing businesses, pursuing new investment strategies (including investment opportunities in new asset classes), developing new types of investment structures and products (such as publicly listed vehicles, separately managed accounts and structured products), expanding into new geographic markets and businesses and seeking investments from investor bases we have traditionally not pursued, such as individual investors, which subject us to additional risk.
We seek to grow our businesses by, among other things, increasing AUM in existing businesses, pursuing new investment strategies (including investment opportunities in new asset classes), developing new types of investment structures and products (such as publicly listed vehicles, separately managed accounts and structured products), expanding into new geographic markets and businesses and seeking investments from investor bases we have traditionally not pursued, such as individual investors, which subject us to additional risk.
In such circumstances, CLOs may fail certain over-collateralization tests, which would cause diversions of cash flows away from us as holders of the more junior CLO, which may impact our cash flows.
In such circumstances, CLOs may fail certain over-collateralization tests, which would cause diversions of cash flows away from us as holders of the more junior notes of our CLOs, which may impact our cash flows.
To the extent policy or contract terminations exceed projected levels or if key assumptions are revised, then the amortization of deferred revenues and expenses will be accelerated in the period of the change and will result in a charge to income, which could have a material adverse effect on our profitability.
To the extent policy or contract terminations exceed projected levels or if key assumptions are revised, then the amortization of deferred revenues and expenses will be accelerated in the period of the change and will result in a charge to income, which could have a material adverse effect on Global Atlantic’s profitability.
Additionally, the potential for unforeseen developments, including changes in laws, regulations or accounting standards, may result in losses and loss expenses materially different from the reserves initially established, which could also materially and adversely impact Global Atlantic’s business, financial condition, results of operations and prospects.
Additionally, the potential for unforeseen developments, including changes in laws, regulations or accounting 70 Table of Contents standards, may result in losses and loss expenses materially different from the reserves initially established, which could also materially and adversely impact Global Atlantic’s business, financial condition, results of operations and prospects.
If Global Atlantic is unable to renew the requisite licenses and obtain the necessary approvals or otherwise does not comply with applicable regulatory requirements, the insurance regulatory authorities could stop, or temporarily suspend Global Atlantic from conducting some or all of its operations as well as impose fines.
If Global Atlantic is unable to renew the requisite licenses and obtain the necessary approvals or otherwise does not comply with 74 Table of Contents applicable regulatory requirements, the insurance regulatory authorities could stop, or temporarily suspend, Global Atlantic from conducting some or all of its operations as well as impose fines.
The use of artificial intelligence by us and others, and the overall adoption of artificial intelligence throughout society, may exacerbate or create new and unpredictable competitive, operational, legal and regulatory risks to our businesses.
The use of artificial intelligence by us and others, and the overall adoption of artificial intelligence throughout the world, may exacerbate or create new and unpredictable competitive, operational, legal and regulatory risks to our businesses.
We cannot predict the likelihood of changes to the capital requirements to which Global Atlantic is subject, whether such changes will have an impact on RBC ratios or whether Global Atlantic will need to raise and hold additional capital in response to such changes and any such changes may have a material adverse effect on us.
We cannot predict the likelihood of changes to the capital requirements to which Global Atlantic is subject, whether such changes will have an impact on RBC ratios, or whether Global Atlantic will need to raise and hold additional capital in response to such changes and any such changes may have a material adverse effect on 75 Table of Contents us.
In addition, we cannot predict whether or when the insurance departments of the states of domicile of its competitors may permit Global Atlantic's competitors to utilize advantageous accounting practices that depart from the Statutory Accounting Principles, the use of which is not permitted by the insurance departments of the states of domicile of Global Atlantic's U.S. insurance subsidiaries.
In addition, we cannot predict whether or when the insurance departments of the states of domicile of its competitors may permit Global Atlantic’s competitors to utilize advantageous accounting practices that depart from the SAP, the use of which is not permitted by the insurance departments of the states of domicile of Global Atlantic’s U.S. insurance subsidiaries.
It typically takes a substantial period of time to identify attractive investment opportunities, to raise all the funds needed to make an investment, and then to realize the cash value of an investment through a sale, public offering or other exit to generate carried interest proceeds.
It typically takes a substantial period of time to: (i) identify attractive investment opportunities, (ii) raise all the funds needed to make an investment, and (iii) then to realize the cash value of an investment through a sale, public offering or other exit to generate carried interest proceeds.
Such technology, analysis and models are highly complex and subject to limitations and risks that have the potential to adversely impact us to the extent that we rely on artificial intelligence.
Such technology, analysis and modeling are highly complex and subject to limitations and risks that have the potential to adversely impact us to the extent that we rely on artificial intelligence.
The price of commodities has historically been subject to substantial volatility, which among other things, could be driven by economic, monetary, geopolitical or weather-related factors.
The price of commodities has historically been subject to substantial volatility, which among other things, could be driven by economic, monetary, geopolitical or other factors.
The Series I preferred stockholder has significant voting power, which limits the ability of holders of our common stock to influence our business. Our Co-Executive Chairmen, when acting together, jointly control the Series I preferred stockholder and thereby the vote of the Series I preferred stock held by it.
The Series I preferred stockholder has significant voting power until the Sunset Date, which limits the ability of holders of our common stock to influence our business. Our Co-Executive Chairmen, when acting together, jointly control the Series I preferred stockholder and thereby the vote of the Series I preferred stock held by it.
If the data we, or third parties whose services we rely on, use in connection with the development or deployment of artificial intelligence is incomplete, inadequate or biased in some way, the performance of our products, services, and businesses could suffer.
If the data we, or third parties whose 47 Table of Contents services we rely on, use in connection with the development or deployment of artificial intelligence is incomplete, inadequate or biased in some way, the performance of our products, services, and businesses could suffer.
Global Atlantic can give no assurances that the impacts of current, proposed or future changes to GAAP, SAP, Bermuda EBS Framework, capital models or any components or interpretation thereof, the grant of permitted accounting practices to Global Atlantic's competitors or future changes to legal, accounting, capital or financial regimes will not have a negative impact or material adverse effect on us.
We can give no assurances that the impacts of current, proposed or future changes to SAP, EBS Framework, capital models or any components or interpretation thereof, the grant of permitted accounting practices to Global Atlantic’s competitors or future changes to legal, accounting, capital or financial regimes will not have a negative impact or material adverse effect on us.
We do not seek to hedge our exposure in all currencies or all investments, which means that our exposure to certain market risks are not limited.
We do not seek to hedge our exposure in all currencies or all investments or insurance liabilities, which means that our exposure to certain market risks are not limited.
If Global Atlantic concludes that its reserves, together with future premiums, are insufficient to cover future policy benefits and claims, Global Atlantic would be required to increase its reserves and incur income statement charges for the period in which it makes the determination, which could have a material adverse effect on us.
If we conclude that Global Atlantic’s reserves, together with future premiums, are insufficient to cover future policy benefits and claims, Global Atlantic would be required to increase its reserves and incur income statement charges for the period in which it makes the determination, which could have a material adverse effect on us.
For our equity investments that are publicly listed and thus have readily observable market prices, global equity markets have a direct impact on valuation, because their values are determined by their listed prices in the public markets.
For our equity investments that are publicly listed and thus have readily observable market prices, equity markets around the world have a direct impact on valuation, because their values are determined by their listed prices in the public markets.
Risks Related to Our Organizational Structure The Series I preferred stockholder’s significant voting power limits the ability of holders of our common stock to influence our business, and conflicts of interest may arise among the Series I preferred stockholder and the holders of our common stock.
Risks Related to Our Organizational Structure Until the Sunset Date, the Series I preferred stockholder’s significant voting power limits the ability of holders of our common stock to influence our business, and conflicts of interest may arise among the Series I preferred stockholder and the holders of our common stock.
See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity Needs” for further information regarding our liquidity needs along with our capital commitments as of December 31, 2024 and Note 16 “Debt Obligations” in our financial statements for further information regarding our senior notes, credit facilities and other outstanding debt obligations.
See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Liquidity Needs” for further information regarding our liquidity needs and our capital commitments as of December 31, 2025, and Note 16 “Debt Obligations” in our financial statements for further information regarding our senior notes, credit facilities and other outstanding debt obligations.
This risk arises from Global Atlantic's holdings in interest rate-sensitive assets and liabilities, which include annuity products and long-duration life insurance policies, derivative contracts with payments linked to the level of interest rates or with market values which fluctuate based on the level of interest 106 Table of Contents rates, and the fixed income assets Global Atlantic owns in its investment portfolio.
This risk arises from Global Atlantic’s holdings in interest rate-sensitive assets and liabilities, which include annuity products and long-duration life insurance policies, derivative contracts with payments linked to the level of interest rates or with market values which fluctuate based on the level of interest rates, as well as the fixed income assets Global Atlantic owns in its investment portfolio.
These same cybersecurity breaches, cyberattack and cyber intrusions could also be employed against our various stakeholders or other third parties, including attempts to impersonate KKR or its employees, which could cause similar security impacts to our stakeholders and other third parties and materially and adversely impact us or our investment vehicles.
These same cybersecurity breaches, cyberattack and cyber intrusions could also be employed against our various stakeholders or other third parties, including attempts to impersonate KKR or its employees, which could cause similar security impacts to our stakeholders, including our portfolio companies, and other third parties and materially and adversely impact us.
Government policies regarding certain regulations, such as antitrust law, national security or restrictions on foreign investment in certain of our portfolio companies or assets can also limit our and our investment vehicles’ exit opportunities. In addition, as many of our funds have a finite term, we could also be forced to dispose of investments sooner than otherwise desirable.
Government policies regarding certain regulations, such as antitrust law, national security or restrictions on foreign direct investment in certain of our portfolio companies or assets can also limit our and our investment vehicles’ exit opportunities. In addition, many of our investment vehicles have a finite term, and we may also be forced to dispose of investments sooner than otherwise desirable.
In a period of declining interest rates, Global Atlantic's investment earnings may decline because new investments will likely bear lower interest rates, and Global Atlantic may not be able to fully offset the decline in investment earnings with lower liability costs on the products these investments support.
In a period of declining or lower interest rates, Global Atlantic’s investment earnings may decline because existing investments may prepay or refinance and new investments will likely bear lower interest rates, and Global Atlantic may not be able to fully offset the decline in investment earnings with lower liability costs on the products these investments support.
For example, due to regulatory restrictions on the payment of dividends, our U.S. insurance subsidiaries may not declare a dividend in 2025 to their holding companies without prior domiciliary state regulatory approval. Offering new products or offering products in additional jurisdictions will also subject Global Atlantic to additional regulation and compliance requirements.
For example, due to regulatory restrictions on the payment of dividends, our U.S. insurance subsidiaries may not declare a dividend in 2025 to the corporate parent companies of our insurance business without prior domiciliary state regulatory approval. Offering new products or offering products in additional jurisdictions will also subject Global Atlantic to additional regulation and compliance requirements.
We have presented in this report certain information relating to our investment returns, such as net and gross internal rates of return (IRR), multiples of invested capital (MOIC) and realized and unrealized investment values for investment vehicles that we have sponsored, managed or operated.
We have presented in this report certain information relating to our investment returns, such as net and gross internal rates of return (“IRR”), multiples of invested capital (“MOIC”) and realized and unrealized investment values for investment vehicles that we have sponsored, managed or operated.
The Series I preferred stockholder has the ability to appoint and remove members of our board of directors and has the right to approve certain corporate actions as specified in our certificate of incorporation.
Until the Sunset Date, the Series I preferred stockholder has the ability to appoint and remove members of our board of directors and has the right to approve certain corporate actions as specified in our certificate of incorporation.
In addition, if this same rationale were expanded to apply also for U.S. federal income tax purposes, then certain of our investors could be subject to increased U.S. income tax liability or filing obligations in certain contexts. Similar laws that could be applied with similar results also exist outside of the United States.
In addition, if a similar rationale were expanded to apply also for U.S. federal income tax purposes, then certain of our investors could be subject to increased U.S. income tax liability or filing obligations in certain contexts. Similar laws and theories that could be applied with similar results also exist outside of the United States.
Under a clawback obligation, upon the liquidation of a fund or other event as set forth in the terms governing the fund, the general partner is required to return, typically on an after-tax basis, previously distributed carry to the extent that, due to the diminished performance of later investments, the aggregate amount of carry distributions received by the general partner during the term of the fund exceed the amount to which the general partner was ultimately entitled, after taking into account the effects of any performance thresholds.
Under such an obligation, upon the liquidation of a fund or other event as set forth in the terms governing the fund, the general partner is required to return, typically on an after-tax basis, previously distributed carry to the extent that, due to the diminished performance of later investments, the aggregate amount of carry distributions received by 42 Table of Contents the general partner during the term of the fund exceed the amount to which the general partner was ultimately entitled, after taking into account the effects of any performance thresholds and hurdles.
The Bermuda Insurance Act and the policies of and/or other codes issued by the BMA relevant to insurers require each of our Bermuda reinsurance subsidiaries to, among other requirements, maintain a minimum level of capital and surplus; satisfy solvency standards; comply with restrictions on dividends; obtain prior approval or provide notification to the BMA of changes in controlling interests by a shareholder across prescribed thresholds; make financial statement filings; prepare a financial condition report; maintain a head office in Bermuda from which each of our Bermuda insurance subsidiaries' insurance business will be directed and managed; and allow for the performance of certain periodic examinations of its financial condition.
The Bermuda Insurance Act and the policies of and other codes issued by the BMA require each of Bermuda insurer to, among other requirements, maintain a minimum level of capital and surplus, satisfy solvency standards, comply with conduct guidelines, comply with restrictions on dividends, obtain prior approval or provide notification to the BMA of changes in controlling interests by a shareholder across prescribed thresholds, make financial statement filings, prepare a financial condition and risk management report, maintain a head office in Bermuda from which each of our Bermuda insurance subsidiaries’ insurance business will be directed and managed, and allow for the performance of certain periodic examinations of its financial condition.
Where applicable, we use hedging transactions and other derivative instruments to reduce the effects of a decline in the value of a position, but they do not eliminate the possibility of fluctuations in the value of the position or prevent losses if the value of the position declines.
We also may use hedging transactions and other derivative instruments to reduce the effects of a decline in the value of a position, but they do not eliminate the possibility of fluctuations in the value of the position or prevent losses if the value of the position declines.
Any sustained period of increased payment delinquencies, foreclosures or losses could adversely affect our or our investment vehicles’ ability to invest in, sell and securitize loans, which would materially and adversely affect our or our investment vehicles’ results of operations, financial condition, liquidity and business.
Increased or unexpected payment delinquencies, foreclosures or losses could adversely affect our or our investment vehicles’ ability to invest in, sell and securitize loans, which would materially and adversely affect our or our investment vehicles’ results of operations, financial condition, liquidity and business.
Various market and economic conditions and events outside of our control that are difficult to quantify or predict may have a significant impact on the valuation of our investments and, therefore, on our financial results. Global equity markets, which have been and are expected to continue to be volatile, significantly impact the valuation of our equity investments in portfolio companies.
Various conditions and events outside of our control that are difficult to quantify or predict may have a significant impact on the valuation of our investments. Global equity markets, which have been and are expected to continue to be volatile, significantly impact the valuation of our equity investments in portfolio companies.
Many parts of our earnings are highly variable from quarter to quarter due to volatility of investment valuations, the investment returns by our funds and other investment vehicles, and the accrual and payment of carried interest and fees earned from our investment activities.
Parts of our earnings are highly variable from quarter to quarter due to volatility of investment valuations, the investment returns by our funds and other investment vehicles, and the accrual and payment of carried interest and fees earned from our 41 Table of Contents investment activities.
The OECD, which represents a coalition of member countries, has sought to make changes to numerous long-standing tax principles through its base erosion and profit shifting ("BEPS") project, which is focused on a number of issues, including profit shifting among affiliated entities in different jurisdictions, interest deductibility and eligibility for the benefits of double tax treaties.
The OECD has sought to make changes to numerous long-standing tax principles through its base erosion and profit shifting (“BEPS”) project, which is focused on a number of issues, including profit shifting among affiliated entities in different jurisdictions, interest deductibility and eligibility for the benefits of double tax treaties.
For example, in raising new funds or certain other vehicles, we typically rely on private placement exemptions from registration under the Securities Act, including Rule 506 of Regulation D.
For example, in raising new funds or other investment vehicles in the United States, we typically rely on private placement exemptions from registration under the Securities Act, including Rule 506 of Regulation D.
If Global Atlantic's capital levels are deemed insufficient, Global Atlantic could be required to reduce its risk profile in order to maintain its current ratings, by, for example, reinsuring and/or retroceding some of Global Atlantic's business, materially altering its business and sales plans or by raising additional capital. Any such action could have a material adverse effect on us.
In order to maintain its current ratings, Global Atlantic could be required to reduce its risk profile by, for example, reinsuring and/or retroceding some of its business, materially altering its business and sales plans or by raising additional capital. Any such action could have a material adverse effect on us.
If that occurs, Global Atlantic will either need to pay such increased premiums, which will affect margins and financial results, or alternatively, Global Atlantic will need to limit or potentially terminate reinsurance, which will increase the risks that Global Atlantic retains. Conversely, certain of our insurance subsidiaries assume liabilities from other insurance companies.
If that occurs, Global Atlantic will either need to pay such increased premiums, or alternatively, Global Atlantic will need to limit or potentially terminate reinsurance, which will increase the risks that Global Atlantic retains. Conversely, certain of our insurance subsidiaries assume liabilities from other insurance companies.
ITEM 1A. RISK FACTORS Investing in our securities involves risk. Persons investing in our securities should carefully consider the risks described below and the other information contained in this report and other filings that we make from time to time with the SEC, including our consolidated financial statements and accompanying notes.
ITEM 1A. RISK FACTORS You should carefully consider the risks described below and the other information contained in this report and other filings that we make from time to time with the SEC, including our consolidated financial statements and accompanying notes.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeOur technology platforms and applications are designed to enable us to monitor user and network behavior at KKR’s asset management business, identify threats using certain analytics, and mitigate attacks across various layers of the enterprise. The KKR information security team conducts regular internal and external audits with third-party cybersecurity experts to identify and evaluate potential weaknesses in our cybersecurity systems.
Biggest changeThe KKR information security team undertakes a variety of measures to monitor and manage the cybersecurity risks of KKR. Our technology platforms and applications are designed to enable us to monitor user and network behavior at KKR, identify threats using certain analytics, and mitigate attacks across various layers of the enterprise.
The Operational Risk Committee reports to KKR’s Risk and Operations Committee, which is comprised of senior employees from across our asset management and insurance businesses and operating functions. KKR's Risk and Operations Committee includes our Chief Financial Officer, Chief Operating Officer, Chief Legal Officer and General Counsel, Chief Compliance Officer.
The Operational Risk Committee reports to KKR’s Risk and Operations Committee, which is comprised of senior employees from across our asset management and insurance businesses and operating functions. KKR's Risk and Operations Committee includes our Chief Financial Officer, Chief Legal Officer and General Counsel, and Chief Compliance Officer.
The KKR CISO and KKR’s Chief Compliance Officer co-chair a cybersecurity incident response team (“KKR CIRT”), which aims to manage and mitigate the risk and impact of cybersecurity breach events at KKR’s asset management business, including those arising from third-party service providers, including those providers that have access to KKR’s customer and employee data.
The KKR CISO and KKR’s Chief Compliance Officer co-chair a cybersecurity incident response team (“KKR CIRT”), which aims to manage and mitigate the risk and impact of cybersecurity breach events at KKR, including those arising from third-party service providers, including those providers that have access to KKR’s customer and employee data.
Cybersecurity Risk Management and Strategy KKR’s asset management business has a cybersecurity incident response plan, which was developed taking into account industry standard guidance provided by institutes such as the National Institute of Standards and Technology. This plan is a key component of the cybersecurity program, which is generally incorporated within our enterprise risk management framework.
Cybersecurity Risk Management and Strategy KKR has a cybersecurity incident response plan, which was developed taking into account industry standard guidance provided by institutes such as the National Institute of Standards and Technology. This plan is a key component of the cybersecurity program, which is generally incorporated within our enterprise risk management framework.
KKR has established a notification decision framework to determine when the KKR CIRT will provide notifications regarding certain cybersecurity incidents, with different severity thresholds triggering notifications to different recipient groups, including the Risk and Operations Committee, senior members of management, and our Board of Directors or its committees. 128 Table of Contents The KKR information security team undertakes a variety of measures to monitor and manage the cybersecurity risks of KKR’s asset management business.
KKR has established a notification decision framework to determine when the KKR CIRT will provide notifications regarding certain cybersecurity incidents, with different severity thresholds triggering notifications to different recipient groups, including the Risk and Operations Committee, senior members of management, and our Board of Directors or its committees.
KKR’s CISO also has prior experience in various information security roles, including security architecture, application security, engineering and operations. He holds a Bachelor of Science in computer science from the New York University Polytechnic School of Engineering, is a Certified Information Systems Security Professional (CISSP) and holds a Series 99 – Operations Professional Exam certification.
He holds a Bachelor of Science in computer science from the New York University Polytechnic School of Engineering, is a Certified Information Systems Security Professional (CISSP) and holds a Series 99 – Operations Professional Exam certification. The KKR CISO is a member of the firm’s Operational Risk Committee.
ITEM 1C. CYBERSECURITY Cybersecurity Governance KKR’s Chief Information Security Officer (the “KKR CISO”) leads an information security team (the “KKR information security team”) whose responsibilities include securing data from unauthorized use or access.
ITEM 1C. CYBERSECURITY Cybersecurity Governance KKR’s Chief Information Security Officer (the “KKR CISO”) leads an information security team (the “KKR information security team”) whose responsibilities include securing data from unauthorized use or access. The cybersecurity strategy and program at KKR includes, among other things, annual employee training about cybersecurity risks and new employee onboarding about KKR’s security policies.
The cybersecurity risk environment for KKR’s asset management business, which includes identifying and monitoring KKR’s technology risks, including those related to information security, business disruption, fraud and privacy related risks, and also promoting cybersecurity awareness at the firm.
The committee focuses on significant operating and business risks, which includes among others, regulatory, cybersecurity, operational, geopolitical, and reputational risks, and is responsible for ensuring risks are identified, assessed, managed and mitigated effectively in the cybersecurity risk management environment for KKR, which includes identifying and monitoring KKR’s technology risks, including those related to information security, business disruption, fraud and privacy related risks, and also promoting cybersecurity awareness at the firm.
As of the date of this filing, we do not believe that our business strategy, results of operations or financial conditions have been materially affected by any cybersecurity incidents for the period covered by this report.
In addition, the KKR information security team conducts periodic phishing simulations, as well as periodic employee training on KKR’s security policies and controls and provides other security training as part of new employee onboarding. 81 Table of Contents As of the date of this filing, we do not believe that our business strategy, results of operations or financial conditions have been materially affected by any cybersecurity incidents for the period covered by this report.
The KKR CISO is a member of the firm’s Operational Risk Committee. The Operational Risk Committee is comprised of senior employees from across our asset management business and operating functions.
The Operational Risk Committee is comprised of senior employees from across our firm.
The cybersecurity strategy and program at KKR’s asset management business includes, among other things, annual employee training about cybersecurity risks and new employee onboarding about KKR’s security policies. Prior to joining KKR, KKR’s CISO was the CISO at another large financial institution where he was responsible for their global information security program.
Prior to joining KKR, KKR’s CISO was the CISO at another large financial institution where he was responsible for their global information security program. KKR’s CISO also has prior experience in various information security roles, including security architecture, application security, engineering and operations.
Risk Factors—"Risks Related to Our Business—Cybersecurity failures and data security breaches may disrupt or have a material adverse impact on our businesses, operations and investments.”
Risk Factors—"Risks Related to Our Business— Cybersecurity failures and data security breaches could have a material adverse impact on our businesses.” ITEM 2. PROPERTIES Our principal executive office is located at 30 Hudson Yards, New York, New York. We also lease space for our other offices in North America, Europe, the Middle East, and Asia-Pacific.
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The committee focuses on significant operating and business risks, which includes among others, regulatory, cybersecurity, operational, geopolitical, and reputational risks, and is responsible for ensuring risks are identified, assessed, managed and mitigated effectively.
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The KKR information security team conducts regular internal and external audits with third-party cybersecurity experts to identify and evaluate potential weaknesses in our cybersecurity systems.
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KKR also has a Chief Information Security Officer dedicated to our insurance business (the “Global Atlantic CISO”), who has more than 20 years of experience in various information security and technology roles.
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We consider these facilities to be suitable and adequate for the management and operations of our business. ITEM 3. LEGAL PROCEEDINGS. For a discussion of KKR's legal proceedings, see the section entitled "Legal Proceedings" appearing in Note 24 "Commitments and Contingencies" in our financial statements included elsewhere in this report, which is incorporated herein by reference. ITEM 4.
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The Global Atlantic CISO leads an information security team that is focused on overseeing the cybersecurity strategy and program for Global Atlantic, which includes, among other things, annual employee training about cybersecurity risks and new employee onboarding about Global Atlantic’s security policies.
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MINE SAFETY DISCLOSURES. Not applicable. 82 Table of Contents PART II
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The Global Atlantic CISO reports at least annually to the operations & technology committee of Global Atlantic’s board of directors (whose members include non-executive directors unaffiliated with KKR) and members of KKR’s Risk and Operations Committee. The Global Atlantic CISO also provides ad hoc reporting to Global Atlantic’s management-level committees and Global Atlantic’s board of directors and its risk committee.
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Material information regarding information security affecting our insurance business is also reported to KKR’s Risk and Operations Committee and to the Audit Committee or Risk Committee of KKR’s Board of Directors.
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In addition, the KKR information security team conducts periodic phishing simulations, as well as periodic employee training on KKR’s security policies and controls and provides other security trainings as part of new employee onboarding. KKR also has a cybersecurity incident response plan that is specific to our insurance business.
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The plan sets forth the roles and responsibilities of the Global Atlantic incident response team, which is comprised of Global Atlantic employees representing key business functions at our insurance business and is overseen by the Global Atlantic CISO.
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Global Atlantic utilizes several mechanisms to monitor and manage the cybersecurity risks of our insurance business, including to prevent, and prepare to respond to, an incident.
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This includes maintaining relationships with external incident response organizations, performing periodic cybersecurity risk assessments, overseeing and monitoring risks from cybersecurity threats associated with third-party service providers, and ensuring that Global Atlantic employees complete security awareness training relating to cybersecurity best practices.
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Global Atlantic also has a cybersecurity notification framework in place to determine when appropriate notifications and escalations are required to be provided to senior members of Global Atlantic’s management, members of Global Atlantic’s board of directors and members of KKR’s Risk and Operations Committee, certain members of which would, as appropriate, report such information to our Board of Directors or its Audit Committee or Risk Committee.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeSee "Management's Discussion and Analysis of Financial Condition and Results of Operations—Liquidity—Sources of Liquidity." In addition, under Section 170 of the DGCL, our Board of Directors may only declare and pay dividends either out of our surplus (as defined in DGCL) or in case there is no such surplus, out of our net profits for the fiscal year in which the dividend is declared and/or the preceding fiscal year. 130 Table of Contents Share Repurchases in the Fourth Quarter of 2024 Under our current share repurchase program, KKR is authorized to repurchase its common stock from time to time in open market transactions, in privately negotiated transactions or otherwise.
Biggest changeSee "Management's Discussion and Analysis of Financial Condition and Results of Operations—Liquidity—Sources of Liquidity." In addition, under Section 170 of the Delaware General Corporation Law (“DGCL”), our Board of Directors may only declare and pay dividends either out of our surplus (as defined in DGCL) or in case there is no such surplus, out of our net profits. 83 Table of Contents Share Repurchases in the Fourth Quarter of 2025 Under our current share repurchase program, KKR is authorized to repurchase its common stock from time to time in open market transactions, in privately negotiated transactions or otherwise.
Because we make our investment in our business through a holding company structure and the applicable holding companies do not own any material cash-generating assets other than their direct and indirect holdings in KKR Group Partnership Units, dividends are expected to be funded in the following manner: • KKR Group Partnership will make distributions to holders of KKR Group Partnership Units, which consists of our wholly-owned corporate subsidiaries (one of which acts as the general partner of KKR Group Partnership), KKR Holdings II and KKR Holdings III, in proportion to their percentage interests in KKR Group Partnership; • Second, our wholly-owned corporate subsidiaries will distribute to us the amount of any distributions that they receive from KKR Group Partnership, after deducting any applicable taxes; and • Third, we will distribute to holders of our common stock the amount of dividends declared by our Board of Directors from the distributions that we receive from our wholly-owned corporate subsidiaries.
Because we make our investment in our business through a holding company structure and the applicable holding companies do not own any material cash-generating assets other than their direct and indirect holdings in KKR Group Partnership Units, dividends are expected to be funded in the following manner: • KKR Group Partnership will make distributions to holders of KKR Group Partnership Units, which consists of our wholly-owned corporate subsidiaries (one of which, KKR Group Holdings Corp., acts as the general partner of KKR Group Partnership), KKR Holdings II and KKR Holdings III, in proportion to their percentage interests in KKR Group Partnership; • Second, our wholly-owned corporate subsidiaries will distribute to us the amount of any distributions that they receive from KKR Group Partnership, after deducting any applicable taxes; and • Third, we will distribute to holders of our common stock and Series D Mandatory Convertible Preferred Stock the amount of dividends declared by our Board of Directors from the distributions that we receive from our wholly- owned corporate subsidiaries.
The declaration and payment of any dividends to holders of our common stock or holders of any preferred stock which may be issued in the future are subject to the discretion of our Board of Directors, which may change our dividend policy at any time or from time to time, and the terms of our certificate of incorporation.
The declaration and payment of any dividends to holders of our common stock, holders of our Series D Convertible Preferred Stockholders, or holders of any preferred stock which may be issued in the future are subject to the discretion of our Board of Directors, which may change our dividend policy at any time or from time to time, and the terms of our certificate of incorporation.
As of January 31, 2025, there is approximately $69 million remaining under KKR's share repurchase program. The table below sets forth the information with respect to repurchases made by or on behalf of KKR & Co. Inc. or any "affiliated purchaser" (as defined in Rule 10b-18(a)(3) under the Exchange Act) of our common stock for the periods presented.
As of January 30, 2026, there is approximately $439 million remaining under KKR's share repurchase program. The table below sets forth the information with respect to repurchases made by or on behalf of KKR & Co. Inc. or any "affiliated purchaser" (as defined in Rule 10b-18(a)(3) under the Exchange Act) of our common stock for the periods presented.
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES. Shares of our common stock are listed on the NYSE under the symbol "KKR." The number of holders of record of our common stock as of February 26, 2025 was 43.
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES. Shares of our common stock are listed on the NYSE under the symbol "KKR." The number of holders of record of our common stock as of February 24, 2026 was 39 .
Issuer Purchases of Common Stock (amounts in thousands, except share and per share amounts) Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (1) Month #1 (October 1, 2024 to October 31, 2024) — $ — — $ 68,939 Month #2 (November 1, 2024 to November 30, 2024) — $ — — $ 68,856 Month #3 (December 1, 2024 to December 31, 2024) — $ — — $ 68,820 Total through December 31, 2024 — — $ 68,820 (1) In April 2024, the share repurchase program was amended such that when the remaining available amount under the share repurchase program becomes $50 million or less, the total available amount under the share repurchase program will automatically add an additional $500 million to the then remaining available amount of $50 million or less.
Issuer Purchases of Common Stock (amounts in thousands, except share and per share amounts) Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (1) Month #1 (October 1, 2025 to October 31, 2025) — $ — — $ 439,640 Month #2 (November 1, 2025 to November 30, 2025) — $ — — $ 439,236 Month #3 (December 1, 2025 to December 31, 2025) — $ — — $ 439,186 Total through December 31, 2025 — — $ 439,186 (1) As previously announced in April 2024, the share repurchase program was amended such that when the remaining available amount under the share repurchase program becomes $50 million or less (the “Share Repurchase Program Increase Threshold”), the total available amount under the share repurchase program would automatically add an additional $500 million to the then remaining available amount of $50 million or less.
Dividend Policy Under our current dividend policy for common stock that we announced on February 4, 2025, we expect to pay our common stockholders an annualized dividend of $0.74 per share of common stock, equal to a quarterly dividend of $0.185 per share of common stock, beginning with the dividend to be declared with respect to the first quarter of 2025.
Dividend Policy Under our current dividend policy for common stock that we announced on February 5, 2026 , we expect to pay our common stockholders an annualized dividend of $0.78 per share of common stock, equal to a quarterly dividend of $0.195 per share of common stock, beginning with the dividend expected to be declared with respect to the first quarter of 2026 .
During the fourth quarter of 2024, no shares of common stock were repurchased, and 246,298 equity awards were retired.
During the fourth quarter of 2025 , no shares of common stock were repurchased, and 141,119 equity awards were retired.
On February 4, 2025, we declared a regular dividend of $0.175 per share of common stock under our prior dividend policy for the quarter ended December 31, 2024, payable on February 28, 2025 to common stockholders of record as of the close of business on February 14, 2025.
On February 5, 2026 , we declared a regular dividend of $0.185 per share of common stock under our prior dividend policy for the three months ended December 31, 2025, payable on March 3, 2026 to common stockholders of record as of the close of business on February 17, 2026 .
Added
The Share Repurchase Program Increase Threshold was reached during the second quarter of 2025, and the share repurchase program total available amount increased by $500 million. Any additional increases to this remaining available amount would require a separate approval by the Board of Directors of KKR & Co. Inc. ITEM 6. [Reserved] 84 Table of Contents

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

311 edited+102 added−263 removed180 unchanged
Biggest changeCommon Stockholders Years Ended December 31, 2024 December 31, 2023 December 31, 2022 ($ in thousands) Net Income (Loss) - KKR Common Stockholders (GAAP) $ 3,076,245 $ 3,680,514 $ (590,664) Preferred Stock Dividends — 51,747 69,000 Net Income (Loss) Attributable to Noncontrolling Interests 1,829,792 1,624,825 104,050 Income Tax Expense (Benefit) 954,396 1,197,523 125,393 Income (Loss) Before Tax (GAAP) $ 5,860,433 $ 6,554,609 $ (292,221) Impact of Consolidation and Other (1,268,787) (1,569,591) (394,427) Equity-based Compensation - KKR Holdings (1) — — 119,834 Income Taxes on Adjusted Earnings (988,797) (763,382) (859,964) Asset Management Adjustments: Unrealized (Gains) Losses (673,790) (843,627) 2,445,529 Unrealized Carried Interest (1,943,200) (1,656,974) 4,231,359 Unrealized Carried Interest Compensation 1,505,558 792,758 (1,753,396) Transaction-related and Non-operating Items 122,009 31,805 94,629 Equity-based Compensation 279,418 230,858 210,756 Equity-based Compensation - Performance based 332,226 271,958 238,929 Strategic Holdings Adjustments: Unrealized (Gains) Losses (958,418) (691,307) (443,447) Insurance Adjustments: (2) (Gains) Losses from Investments (2) 1,465,348 363,956 379,647 Non-operating Changes in Policy Liabilities and Derivatives (2) 296,917 228,929 (584,495) Transaction-related and Non-operating Items (2) 20,615 7,347 15,215 Equity-based and Other Compensation (2) 134,799 71,579 93,508 Amortization of Acquired Intangibles (2) 17,935 11,175 10,852 Adjusted Net Income $ 4,202,266 $ 3,040,093 $ 3,512,308 Interest Expense, Net 302,381 325,919 302,151 Net Income Attributable to Noncontrolling Interests 16,060 25,950 23,200 Income Taxes on Adjusted Earnings 988,797 763,382 859,964 Total Segment Earnings $ 5,509,504 $ 4,155,344 $ 4,697,623 Net Realized Performance Income (608,788) (398,949) (843,132) Net Realized Investment Income (542,163) (541,441) (909,515) Total Operating Earnings $ 4,358,553 $ 3,214,954 $ 2,944,976 Total Investing Earnings 1,150,951 940,390 1,752,647 Depreciation and Amortization 50,011 46,727 33,809 Adjusted EBITDA $ 5,559,515 $ 4,202,071 $ 4,731,432 (1) Represents equity-based compensation expense in connection with the allocation of KKR Holdings Units, which were not dilutive to common stockholders of KKR & Co.
Biggest changeCommon Stockholders For the Year Ended ($ in thousands) December 31, 2025 December 31, 2024 Net Income (Loss) - KKR Common Stockholders (GAAP) $ 2,251,867 $ 3,076,245 Preferred Stock Dividends 118,596 — Net Income (Loss) Attributable to Noncontrolling Interests 3,774,949 1,829,792 Income Tax Expense (Benefit) 953,748 954,396 Income (Loss) Before Tax (GAAP) $ 7,099,160 $ 5,860,433 Impact of Consolidation and Other (4,020,179) (1,268,787) Preferred Stock Dividends (118,596) — Income Taxes on Adjusted Earnings (1,108,064) (988,797) Asset Management Adjustments: Unrealized (Gains) Losses 560,892 (673,790) Unrealized Carried Interest (2,140,747) (1,943,200) Unrealized Carried Interest Compensation 1,566,828 1,505,558 Transaction-related and Non-operating Items (1) 96,289 122,009 Equity-based Compensation 268,067 279,418 Equity-based Compensation - Performance based 348,848 332,226 Amortization of Acquired Intangibles 1,787 — Strategic Holdings Adjustments: Unrealized (Gains) Losses (746,252) (958,418) Insurance Adjustments: (Gains) Losses from Investments 2,088,687 1,465,348 Non-Operating Changes from Policy Liabilities and Derivatives 319,471 296,917 Transaction-Related and Non-Operating Items (1) 42,350 20,615 Equity-Based Compensation 100,135 134,799 Amortization of Acquired Intangibles 18,796 17,935 Adjusted Net Income $ 4,377,472 $ 4,202,266 Interest Expense, Net 257,725 302,381 Preferred Stock Dividends 132,073 — Net Income Attributable to Noncontrolling Interests 15,002 16,060 Income Taxes on Adjusted Earnings 1,108,064 988,797 Total Segment Earnings $ 5,890,336 $ 5,509,504 Net Realized Performance Income (491,736) (608,788) Net Realized Investment Income (412,796) (542,163) Total Operating Earnings $ 4,985,804 $ 4,358,553 Total Investing Earnings 904,532 1,150,951 Depreciation and Amortization 67,854 50,011 Adjusted EBITDA $ 5,958,190 $ 5,559,515 (1) For the year ended December 31, 2025, Transaction-related and Other Non-operating items includes (i) $99 million related to transaction-related costs and other corporate actions, and (ii) $39 million of costs associated with certain integration, restructuring, and other non-operating expenses across our Asset Management and Insurance businesses. 126 Table of Contents KKR & Co.
Fee credits owed to consolidated investment funds and other investment vehicles are eliminated upon consolidation under GAAP. However, because these amounts are owed to noncontrolling interests, upon consolidation under GAAP, KKR's allocated share of the net income from the consolidated investment funds is decreased by the amount of fee credits that are eliminated.
Fee credits owed to consolidated investment funds and other investment vehicles are eliminated upon consolidation under GAAP. However, because these amounts are owed to noncontrolling interests, upon consolidation under GAAP, KKR's allocated share of the net income from the consolidated investment funds and other investment vehicles is decreased by the amount of fee credits that are eliminated.
Investment gains and losses relating to our general partner capital interest in our unconsolidated funds are not reflected in our discussion and analysis of Net Gains (Losses) from Investment Activities. Our economics associated with these gains and losses are reflected in Capital Allocation-Based Income (Loss) as described above.
Investment gains and losses relating to our general partner capital interest in our unconsolidated funds are not reflected in our discussion and analysis of Net Gains (Losses) from Investment Activities. Our economics associated with these investment gains and losses are reflected in Capital Allocation-Based Income (Loss) as described above.
Realized performance income in our Credit & Liquid Strategies business line for the year ended December 31, 2024 consisted primarily of performance fees earned from Marshall Wace and our sub-advisory agreement with a UK investment fund manager.
Realized performance income in our Credit and Liquid Strategies business line for the year ended December 31, 2024 consisted primarily of performance fees earned from Marshall Wace and our sub-advisory agreement with a UK investment fund manager.
The increase was primarily attributable to (i) new capital raised from Global Atlantic inflows and various private credit investment funds, (ii) the issuance of CLOs, and, to a lesser extent, (iii) investment value appreciation on assets managed by Marshall Wace and across our leveraged credit and private credit investment funds.
The increase was primarily attributable to (i) new capital raised from Global Atlantic inflows and various private credit and leveraged credit investment funds, (ii) the issuance of CLOs, and, to a lesser extent, (iii) investment value appreciation across our leveraged credit and private credit investment funds, and on assets managed by Marshall Wace.
The increase was primarily attributable to new capital commitments from fund investors, which was partially offset by capital called from fund investors to make investments during the period.
The increase was primarily attributable to new capital commitments from fund investors, which was partially offset by capital called from fund investors to make investments during the period.
This sensitivity considers the direct effect of such changes only and not changes in any other assumptions used in or items considered in the measurement of such balances.
This sensitivity considers the direct effect of such changes only and not changes in any other assumptions used in or items considered in the measurement of such balances.
This sensitivity considers the direct effect of such changes only and not changes in any other assumptions used in or items considered in the measurement of such balances.
This sensitivity considers the direct effect of such changes only and not changes in any other assumptions used in or items considered in the measurement of such balances.
Realized performance income in our Private Equity business line for the year ended December 31, 2024 consisted primarily of (i) realized proceeds from the sale of our investments in AppLovin Corporation (NASDAQ: APP) and GeoStabilization International (industrials sector), both held by Americas Fund XII, and Kokusai Electric Corporation (TYO: 6525) held by Asian Fund III and (ii) performance income from our core investment vehicles and our private equity K-Series vehicles.
Realized performance income in our Private Equity business line for the year ended December 31, 2024 consisted primarily of (i) realized proceeds from the sale of our investments in AppLovin Corporation (NASDAQ: APP) and GeoStabilization International (industrials sector), both held by Americas Fund XII, and Kokusai Electric Corporation (TYO: 6525) held by Asian Fund III and (ii) performance income from our core private equity vehicles and private equity K-Series vehicles.
Capital Allocation-Based Income (Loss) Capital Allocation-Based Income (Loss) for the year ended December 31, 2024 was positive primarily due to the net appreciation of the underlying investments in many of our unconsolidated carry-earning investment vehicles, most notably North America Fund XIII, Global Infrastructure Investors IV, and our private equity and infrastructure K-Series vehicles.
Capital Allocation-Based Income (Loss) for the year ended December 31, 2024 , was positive primarily due to the net appreciation of the underlying investments in many of our unconsolidated carry-earning investment funds, most notably North America Fund XIII, Global Infrastructure Investors IV, and our private equity and infrastructure K-Series vehicles.
As described above, Level II and Level III investments were valued using internal models with significant unobservable inputs, and our determinations of the fair values of these investments may differ materially from the values that would have resulted if readily observable inputs had existed.
As described above, Level III investments were valued using internal models with significant unobservable inputs, and our determinations of the fair values of these investments may differ materially from the values that would have resulted if readily observable inputs had existed.
Off Balance Sheet Arrangements We do not have any off-balance sheet financings or liabilities other than contractual commitments and other legal contingencies incurred in the normal course of our business. 197 Table of Contents Critical Accounting Policies and Estimates The preparation of our financial statements in accordance with GAAP requires our management to make estimates and judgments that affect the reported amounts of assets and liabilities, the recognition and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues, expenses, investment income (loss) and income taxes during the reporting periods.
Off Balance Sheet Arrangements We do not have any off-balance sheet financings or liabilities other than contractual commitments and other legal contingencies incurred in the normal course of our business. 133 Table of Contents Critical Accounting Policies and Estimates The preparation of our financial statements in accordance with GAAP requires our management to make estimates and judgments that affect the reported amounts of assets and liabilities, the recognition and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues, expenses, investment income (loss) and income taxes during the reporting periods.
There can be no assurance that future dividends will be made as intended or at all or that any particular dividend policy for our common stock will be maintained.
There can be no assurance that future dividends will be made as intended or at all or that any particular dividend policy for our common stock or our preferred stock will be maintained.
Equity-based Compensation In addition to the cash-based compensation and carry pool allocations as described above, employees receive equity awards under our Equity Incentive Plans, most of which are subject to service-based vesting typically over a three to five-year period from the date of grant, and some of which are also subject to the achievement of market-based conditions.
Equity-based Compensation In addition to the cash-based compensation and carry pool allocations as described above, employees receive equity awards under our Equity Incentive Plan, most of which are subject to service-based vesting typically over a three to five-year period from the date of grant, and some of which are also subject to the achievement of market-based conditions.
Additionally, KKR's capital markets business has arrangements with third parties, which are expected to reduce KKR's risk under certain circumstances when underwriting certain debt transactions. As a result, our unfunded capital markets commitments as of December 31, 2024 have been reduced to reflect the amount expected to be funded by such third parties.
Additionally, KKR's capital markets business has arrangements with third parties, which are expected to reduce KKR's risk under certain circumstances when underwriting certain debt transactions. As a result, our unfunded capital markets commitments as of December 31, 2025 have been reduced to reflect the amount expected to be funded by such third parties.
For the year ended December 31, 2024, net gains were primarily generated in the following asset classes: • Private Equity (including core private equity), which were primarily impacted by (i) overall positive operating performance of its portfolio companies and (ii) the positive returns of global equity markets and the related increase of market multiples used in the market comparables methodology for the valuation of Level III investments; and • Infrastructure, which primarily benefited from the positive operating performance of certain infrastructure assets and, to a lesser extent, by the positive returns of global equity markets and the related increase of market multiples used in the market comparables methodology for the valuation of Level III investments.
For the year ended December 31, 2024 , net investment gains (losses) were primarily generated in the following asset classes: • Private Equity (including core private equity), which were primarily impacted by (i) overall positive operating performance of its portfolio companies and (ii) the positive returns of global equity markets and the related increase of market multiples used in the market comparables methodology for the valuation of Level III investments; and • Real Assets, which primarily benefited from the positive operating performance of certain infrastructure assets and, to a lesser extent, by the positive returns of global equity markets and the related increase of market multiples used in the market comparables methodology for the valuation of Level III investments.
As of December 31, 2024, upon completion by, where applicable, independent valuation firms of certain limited procedures requested to be performed by them on certain Level III investments, the independent valuation firms concluded that the fair values, as determined by KKR (including Global Atlantic), of those investments reviewed by them were reasonable.
As of December 31, 2025, upon completion by, where applicable, independent valuation firms of certain limited procedures requested to be performed by them on certain Level III investments, the independent valuation firms concluded that the fair values, as determined by KKR (including Global Atlantic), of those investments reviewed by them were reasonable.
Future interest rates are assumed to be those in effect as of December 31, 2024, including both variable and fixed rates, as applicable, provided for by the relevant debt agreements. The amounts presented above include accrued interest on outstanding indebtedness.
Future interest rates are assumed to be those in effect as of December 31, 2025 , including both variable and fixed rates, as applicable, provided for by the relevant debt agreements. The amounts presented above include accrued interest on outstanding indebtedness.
Future interest rates are assumed to be those in effect as of December 31, 2024, including both variable and fixed rates, as applicable, provided for by the relevant debt agreements. The amounts presented above include accrued interest on outstanding indebtedness.
Future interest rates are assumed to be those in effect as of December 31, 2025 , including both variable and fixed rates, as applicable, provided for by the relevant debt agreements. The amounts presented above include accrued interest on outstanding indebtedness.
However, because these amounts are funded by, and earned from, noncontrolling interests, upon consolidation under GAAP, KKR's allocated share of the net income from the consolidated investment funds and other investment vehicles is increased by the amount of fees that are eliminated.
Management fees due from consolidated investment funds and other investment vehicles are eliminated upon consolidation under GAAP. However, because these amounts are funded by, and earned from, noncontrolling interests, upon consolidation under GAAP, KKR's allocated share of the net income from the consolidated investment funds and other investment vehicles is increased by the amount of fees that are eliminated.
Global Atlantic operates an insurance business, and KKR operates an asset management business, which manages the operations of the newly-formed Strategic Holdings segment (see Note 21 "Segment Reporting") in our financial statements included in this report, each of which possess distinct characteristics.
Global Atlantic operates an insurance business, and KKR operates an asset management business, which manages the operations of the Strategic Holdings segment (see Note 21 "Segment Reporting") in our financial statements included in this report, each of which possess distinct characteristics.
Since the fair value of the underlying investments varies between reporting periods, it is necessary to make adjustments to the amounts recorded as carried interest to reflect either (a) positive performance, resulting in an increase in the carried interest allocated to the general partner or (b) negative performance that would cause the amount due to KKR to be less than the amount previously recognized, resulting in a negative adjustment to carried interest allocated to the general partner.
Since the fair value of the underlying investments varies between reporting periods, it is necessary to make adjustments to the amounts recorded as carried interest to reflect either (i) positive performance, resulting in an increase in the carried interest allocated to the general partner or (ii) negative performance that would cause the amount due to KKR to be less than the amount previously recognized, resulting in a negative adjustment to carried interest allocated to the general partner.
The assumptions on which reserves, deferred revenue and expenses are based are intended to represent an estimation of the benefits that are expected to be payable to, and fees or premiums that are expected to be collectible from, policyholders in future periods.
The assumptions on which reserves, deferred revenue and expenses are based are intended to represent an estimate of the benefits that are expected to be payable to, and fees or premiums that are expected to be collectible from, policyholders in future periods.
Management fees earned by KKR as the adviser, manager or sponsor for its investment funds, vehicles and accounts, including its Global Atlantic insurance companies and Strategic Holdings segment, are included in Asset Management Segment Earnings. 135 Table of Contents Insurance Operating Earnings Insurance Operating Earnings is the segment profitability measure used to make operating decisions and to assess the performance of the Insurance segment.
Management fees earned by KKR as the adviser, manager or sponsor for its investment funds, vehicles and accounts, including its Global Atlantic insurance companies and Strategic Holdings segment, are included in Asset Management Segment Earnings. Insurance Operating Earnings Insurance Operating Earnings is the segment profitability measure used to make operating decisions and to assess the performance of the Insurance segment.
In evaluating these judgments, we consider, among other items, projections of taxable income (including the character of such income), beginning with historic results and incorporating assumptions of the amount of future pretax operating income. These assumptions about future taxable income require significant judgment and are consistent with the plans and estimates that KKR uses to manage its business.
In evaluating these judgments, we consider, among other items, projections of taxable income (including the character of such income), beginning with historic results and incorporating assumptions of the amount of future pre-tax operating income. These assumptions about future taxable income require significant judgment and are consistent with the plans and estimates that KKR uses to manage its business.
Global Atlantic reviews the adequacy of its reserves, deferred revenue and expenses, and the assumptions underlying those items at least annually, usually in the third quarter, referred to as an "assumption review." As Global Atlantic analyzes its assumptions, to the extent Global Atlantic chooses to update one or more of those assumptions, there may be an “unlocking” impact.
Global Atlantic reviews the adequacy of its reserves, deferred revenue and expenses, and the assumptions underlying those items at least annually, usually in the third quarter, referred to as an “assumption review.” As Global Atlantic analyzes its assumptions, to the extent Global Atlantic chooses to update one or more of those assumptions, there may be an “unlocking” impact.
Once netting holes have been filled with either (a) return of capital equal to the netting hole for those investments where fair value is below cost or (b) increases in the fair value of those investments where fair value is below cost, then realized carried interest will be distributed to the general partner upon a realization event.
Once netting holes have been filled with either (i) return of capital equal to the netting hole for those investments where fair value is below cost or (ii) increases in the fair value of those investments where fair value is below cost, then realized carried interest will be distributed to the general partner upon a realization event.
See Note 19 "Equity Based Compensation,” in our financial statements included in this report for further discussion and activity of these awards. 204 Table of Contents Investment Income (Loss) -Net Gains (Losses) from Investment Activities Net gains (losses) from investment activities consist of realized and unrealized gains and losses arising from our investment activities as well as income earned from certain equity method investments.
See Note 19 "Equity-Based Compensation,” in our financial statements included in this report for further discussion and activity of these awards. Investment Income (Loss) – Net Gains (Losses) from Investment Activities Net gains (losses) from investment activities consist of realized and unrealized gains and losses arising from our investment activities as well as income earned from certain equity method investments.
Strategic Holdings Segment Earnings includes management fees and performance fee expenses that are earned by the Asset Management segment. Fee Related Earnings Fee related earnings is a performance measure used to assess the Asset Management segment’s generation of earnings from revenues that are measured and received on a more recurring basis as compared to KKR’s investing earnings.
Strategic Holdings Segment Earnings includes management fees and performance fee expenses that are earned by the Asset Management segment. 88 Table of Contents Fee Related Earnings Fee related earnings is a performance measure used to assess the Asset Management segment’s generation of earnings from revenues that are measured and received on a more recurring basis as compared to KKR’s investing earnings.
Realized Investment Income Compensation The decrease in realized investment income compensation for the year ended December 31, 2024 compared to the prior period is primarily due to a lower level of compensation recorded in connection with the lower level of realized investment income.
Realized Investment Income Compensation The decrease in realized investment income compensation for the year ended December 31, 2025 compared to the prior period is primarily due to a lower level of compensation recorded in connection with the lower level of realized investment income.
The liability that is recorded in each period reflects the legal entitlement of Associates Holdings at each point in time should the total unrealized carried interest be realized at the value recorded at each reporting date. Upon a reversal of carried interest income, the related carry pool allocation, if any, is also reversed.
The liability that is recorded in each period reflects the legal entitlement of Associates Holdings at each point in time should the total unrealized carried interest be realized at the value recorded at 139 Table of Contents each reporting date. Upon a reversal of carried interest income, the related carry pool allocation, if any, is also reversed.
Our operating activities primarily included: (i) investments purchased (asset management and strategic holdings), net of proceeds from investments (asset management and strategic holdings) of $(0.7) billion, $(8.6) billion, and $(10.4) billion during the years ended December 31, 2024, 2023, and 2022, respectively, (ii) net realized gains (losses) on investments (asset management and strategic holdings) of $0.2 billion, $(0.8) billion, and $1.3 billion during the years ended December 31, 2024, 2023, and 2022, respectively, (iii) change in unrealized gains (losses) on investments (asset management and strategic holdings) of $3.2 billion, $3.8 billion, and $(3.0) billion during the years ended December 31, 2024, 2023, and 2022, respectively, (iv) capital allocation-based income (loss) (asset management and strategic holdings) of $3.6 billion, $2.8 billion, and $(2.5) billion during the years ended December 31, 2024, 2023, and 2022, respectively, (v) net investment and policy liability-related gains (losses) (insurance) of $(3.3) billion, $(2.6) billion, and $(0.4) billion during the years ended December 31, 2024, 2023, and 2022, respectively, and (vi) interest credited to policyholder account balances (net of policy fees) (insurance) of $4.2 billion, $2.8 billion, and $1.2 billion during the years ended December 31, 2024, 2023, and 2022, respectively.
Our operating activities primarily included: (i) investments purchased (asset management and strategic holdings), net of proceeds from investments (asset management and strategic holdings) of $(9.2) billion , $(0.7) billion , and $(8.6) billion during the years ended December 31, 2025 , 2024 , and 2023 , respectively, (ii) net realized gains (losses) on investments (asset management and strategic holdings) of $0.2 billion , $0.2 billion , and $(0.8) billion during the years ended December 31, 2025 , 2024 , and 2023 , respectively, (iii) change in unrealized gains (losses) on investments (asset management and strategic holdings) of $4.6 billion , $3.2 billion , and $3.8 billion during the years ended December 31, 2025 , 2024 , and 2023 , respectively, (iv) capital allocation-based income (loss) (asset management and strategic holdings) of $3.8 billion , $3.6 billion , and $2.8 billion during the years ended December 31, 2025 , 2024 , and 2023 , respectively, (v) net investment and policy liability-related gains (losses) (insurance) of $(3.3) billion , $(3.3) billion , and $(2.6) billion during the years ended December 31, 2025 , 2024 , and 2023 , respectively, and (vi) interest credited to policyholder account balances (net of policy fees) (insurance) of $5.0 billion , $4.2 billion , and $2.8 billion during the years ended December 31, 2025 , 2024 , and 2023 , respectively.
Investment Income (Loss) Net Gains (Losses) from Investment Activities for the year ended December 31, 2024 The net gains from investment activities for the year ended December 31, 2024 were comprised of net realized gains of $246.8 million and net unrealized gains of $3,196.0 million.
Net Gains (Losses) from Investment Activities for the year ended December 31, 2024 The net gains from investment activities for the year ended December 31, 2024 , were comprised of net realized gains of $246.8 million and net unrealized gains of $3,196.0 million .
Occupancy and Related Charges The increase in occupancy and related charges during the year ended December 31, 2024, compared to the year ended December 31, 2023, was primarily due to the commencement of new office leases in the current period.
Occupancy and Related Charges The increase in occupancy and related charges during the year ended December 31, 2025 , compared to the year ended December 31, 2024 , was primarily due to the commencement of new office leases in the current period.
To supplement base cash compensation, benefits, carry pool allocations, and equity-based compensation, we typically pay discretionary cash bonuses, which are included in Compensation and Benefits expense in the consolidated statements of operations, based principally on the level of (i) management fees and other fee revenues (including incentive fees), (ii) realized carried interest, and (iii) realized investment income earned during the year.
Discretionary Cash Bonus To supplement base cash compensation, benefits, carry pool allocations, and equity-based compensation, we typically pay discretionary cash bonuses, which are included in Compensation and Benefits expense in the consolidated statements of operations, based principally on the level of (i) management fees and other fee related revenues (including incentive fees), (ii) realized performance income, which includes realized carried interest, and (iii) realized investment income earned during the year.
Recently Issued Accounting Pronouncements For a full discussion of recently issued accounting pronouncements, see Note 2 "Summary of Significant Accounting Policies" in our financial statements included in this report. 210 Table of Contents
Recently Issued Accounting Pronouncements For a full discussion of recently issued accounting pronouncements, see Note 2 "Summary of Significant Accounting Policies" in our financial statements included in this report. 145 Table of Contents
For a more detailed discussion on the factors that affect our management fees during the period, see "—Analysis of Asset Management Segment Operating Results." Fee credits increased compared to the prior period as a result of (i) a higher level of transaction fees in our Private Equity, Real Assets, and Credit and Liquid Strategies business lines and (ii) a higher level of monitoring fees in our Private Equity and Real Assets business lines.
For a more detailed discussion on the factors that affect our management fees during the period, see "—Analysis of Asset Management Segment Operating Results." Fee credits increased compared to the prior period as a result of (i) a higher level of transaction fees in our Private Equity business line and (ii) a higher level of monitoring fees in our Private Equity and Real Assets business lines.
If the GMDB is higher than the current account value at the time of death, Global Atlantic incurs a cost equal to the difference. 205 Table of Contents Global Atlantic issues fixed-indexed annuity and variable annuity contracts with a guaranteed minimum withdrawal feature.
If the GMDB is higher than the current account value at the time of death, Global Atlantic incurs a cost equal to the difference. Global Atlantic issues fixed-indexed annuity and variable annuity contracts with a guaranteed minimum withdrawal feature.
In addition to these uncalled commitments and funding obligations to KKR's investment funds and investment vehicles, KKR has entered into contractual commitments primarily with respect to underwriting transactions, debt financing, revolving credit facilities, and equity syndications in our Capital Markets business line. As of December 31, 2024, these capital markets commitments amounted to $0.7 billion.
In addition to these uncalled commitments and funding obligations to KKR's investment funds and investment vehicles, KKR has entered into contractual commitments primarily with respect to underwriting transactions, debt financing, revolving credit facilities, and equity syndications in our Capital Markets business line. As of December 31, 2025 , these capital markets commitments amounted to $1.0 billion .
These risks, uncertainties, and other conditions should be read in conjunction with this Business Environment section and the entire Risk Factor section.
These risks, uncertainties, and other conditions should be read in conjunction with this Business Environment section and the entire Risk Factor section of this report.
As of December 31, 2024, the payment status of 97% of the residential mortgage loan portfolio is current, and approximately $275.1 million is 90 days or more past due or in process of foreclosure (representing 1% of the total residential mortgage portfolio).
As of December 31, 2024 , the payment status of 97% of the residential mortgage loan portfolio was current and approximately $275.1 million were 90 days or more past due or in process of foreclosure (representing 1% of the total residential mortgage portfolio).
When KKR & Co. Inc. receives distributions from KKR Group Partnership, holders of exchangeable securities receive their pro rata share of such distributions from KKR Group Partnership. The declaration and payment of dividends to our common stockholders will be at the sole discretion of our Board of Directors, and our dividend policy may be changed at any time.
Inc. receives distributions from KKR Group Partnership, holders of exchangeable securities receive their pro rata share of such distributions from KKR Group Partnership. The declaration and payment of dividends to our common or preferred stockholders will be at the sole discretion of our Board of Directors, and our dividend policy may be changed at any time.
In determining the aggregate fair value of any award grants, we make judgments as to the grant-date fair value, particularly for certain restricted units with a vesting condition based upon market conditions, whose grant date fair values are based on a probability distributed Monte-Carlo simulation.
In determining the aggregate fair value of any award grants, we make judgments as to the grant-date fair value, particularly for certain equity awards with a vesting condition based upon market conditions, whose grant date fair values are based on a probability distributed Monte-Carlo simulation.
Capital Invested Capital invested is the aggregate amount of capital invested by (i) KKR’s investment funds and Global Atlantic insurance companies, (ii) KKR's Principal Activities business line as a co-investment, if any, alongside KKR’s investment funds, and (iii) KKR's Principal Activities business line in connection with a syndication transaction conducted by KKR's Capital Markets business line, if any.
Capital Invested Capital invested is the aggregate amount of capital invested by (i) KKR’s investment funds (including core private equity) and Global Atlantic insurance companies, (ii) KKR's Principal Activities business line as a co-investment, if any, alongside KKR’s investment funds, and (iii) KKR's Principal Activities business line in connection with a syndication transaction conducted by KKR's Capital Markets business line, if any.
Future interest on variable rate debt (which includes borrowings under Global Atlantic's revolving credit facility and the subordinated debentures) was computed using prevailing rates as of December 31, 2024 and, as such, does not consider the impact of future rate movements. Future interest on fixed rate debt was computed using the stated rate on the obligations.
Future interest on variable rate debt (which includes borrowing under Global Atlantic's revolving credit facility and the subordinated debentures) was computed using prevailing rates as of December 31, 2025 and, as such, does not consider the impact of future rate movements. Future interest on fixed rate debt was computed using the stated rate on the obligations.
(15) The interest obligations on debt of our CFEs and other borrowings represent estimated interest to be paid over the term of the related debt obligation, which has been calculated assuming the debt outstanding at December 31, 2024 is not repaid until its maturity.
(15) The interest obligations on debt of our CFEs and other borrowings represent estimated interest to be paid over the term of the related debt obligation, which has been calculated assuming the debt outstanding as of December 31, 2025 is not repaid until its maturity.
These judgments include: (a) determining whether the equity investment at risk is sufficient to permit the entity to finance its activities without additional subordinated financial support, (b) evaluating whether the equity holders, as a group, can make decisions that have a significant effect on the economic performance of the entity, (c) determining whether two or more parties’ equity interests should be aggregated, and (d) determining whether the equity investors have proportionate voting rights to their obligations to absorb losses or rights to receive returns from an entity.
These judgments include: (i) determining whether the equity investment at risk is sufficient to permit the entity to finance its activities without additional subordinated financial support, (ii) evaluating whether the equity holders, as a group, can make decisions that have a significant effect on the economic performance of the entity, (iii) determining whether two or more parties’ equity interests should be aggregated, and (iv) determining whether the equity investors have proportionate voting rights to their obligations to absorb losses or rights to receive returns from an entity.
The increase was primarily attributable to (i) new capital raised from Global Atlantic inflows invested across real estate and infrastructure, Global Infrastructure Investors V, and our infrastructure K-Series vehicles and, to a lesser extent, (ii) appreciation in investment value from Global Infrastructure Investors IV.
The increase was primarily attributable to (i) new capital raised from Global Atlantic inflows invested in real estate, our infrastructure K-Series vehicles, and Global Infrastructure Investors V, and, to a lesser extent, (ii) appreciation in investment value from Global Infrastructure Investors IV and the Diversified Core Infrastructure Fund.
The number of large private equity investments made in any quarterly or year-to-date period is volatile and, consequently, a significant amount of capital invested in one period or a few periods may not be indicative of a similar level of capital deployment in future periods.
The number of large real assets investments made in any quarterly or year-to-date period is volatile and, consequently, a significant amount of capital invested in one period or a few periods may not be indicative of a similar level of capital deployment in future periods.
Level III Valuation Process The valuation process involved for Level III measurements is completed on a quarterly basis and is designed to subject the valuation of Level III investments to an appropriate level of consistency, oversight, and review.
Level III Valuation Process The valuation process involved for Level III measurements for our financial statements is completed on a quarterly basis and is designed to subject the valuation of Level III investments to an appropriate level of consistency, oversight, and review.
See "—Liquidity," "—Liquidity Needs," and "—Dividends and Stock Repurchases." See "Risk Factors" and "—Business Environment" for more information on factors that may impact our business, financial performance, operating results, and valuations.
See "—Liquidity," "—Liquidity Needs," and "—Dividends and Stock Repurchases." See "Risk Factors" and "—Business Environment" in this report for more information on factors that may impact our business, financial performance, operating results, and valuations.
Uncalled commitments are not reduced for investments completed using fund-level investment financing arrangements or investments we have committed to make but remain unfunded at the reporting date. 138 Table of Contents Consolidated Results of Operations (GAAP Basis) The following is a discussion of our consolidated results of operations on a GAAP basis for the years ended December 31, 2024, 2023, and 2022.
Uncalled commitments are not reduced for investments completed using fund-level investment financing arrangements or investments we have committed to make but remain unfunded at the reporting date. 90 Table of Contents Analysis of Consolidated Results of Operations (GAAP Basis) The following is a discussion of our consolidated results of operations on a GAAP basis for the years ended December 31, 2025 and 2024 .
Investment funds are investment companies under GAAP and reflect their investments and other financial instruments at fair value. Net Cash Provided (Used) by Investing Activities Our net cash provided (used) by investing activities was $(19.0) billion, $(3.9) billion, and $(13.6) billion during the years ended December 31, 2024, 2023, and 2022, respectively.
Investment funds are investment companies under GAAP and reflect their investments and other financial instruments at fair value. Net Cash Provided (Used) by Investing Activities Our net cash provided (used) by investing activities was $(16.3) billion , $(19.0) billion , and $(3.9) billion during the years ended December 31, 2025 , 2024 , and 2023 , respectively.
(3) These interest obligations on debt represent estimated interest to be paid over the term of the related debt obligation, which has been calculated assuming the debt outstanding at December 31, 2024 is not repaid until its maturity.
(3) These interest obligations on debt represent estimated interest to be paid over the term of the related debt obligation, which has been calculated assuming the debt outstanding as of December 31, 2025 is not repaid until its maturity.
We are responsible for determining the fair value of investments in good faith, and the limited procedures performed by an independent valuation firm are supplementary to the inquiries and procedures that we are required to undertake to determine the fair value of the commensurate investments.
We are responsible for determining the fair value of investments in good faith, and the limited procedures performed by an independent valuation firm are supplementary to the inquiries and procedures that we are required to undertake to determine the fair value of the commensurate investments on a GAAP basis.
For a discussion of net realized performance income and net realized investment income, see "—Analysis of Asset Management Segment Operating Results" and "—Analysis of Strategic Holdings Segment Operating Results." Total Segment Earnings The decrease in total segment earnings for the year ended December 31, 2023 compared to the prior period was primarily due to an decrease in total investing earnings.
For a discussion of net realized performance income and net realized investment income, see "—Analysis of Asset Management Segment Operating Results" and "—Analysis of Strategic Holdings Segment Operating Results." Total Segment Earnings The increase in total segment earnings for the year ended December 31, 2025 compared to the prior period was primarily due to an increase in total operating earnings, offset by a decrease in total investing earnings.
Capital Commitments The agreements governing our active investment funds generally require the general partners of the funds to make minimum capital commitments to such funds, which generally range from 2% to 8% of a fund's total capital commitments at final closing, but may be greater for certain funds (i) where we are pursuing newer strategies, (ii) where third party investor demand is limited, and (iii) where a larger commitment is consistent with the asset allocation strategy in our Principal Activities business line, and in our Strategic Holdings segment.
Capital Commitments The agreements governing our active investment funds generally require the general partners of the funds to make minimum capital commitments to such funds, which generally range from 2% to 8% of a fund's total capital commitments at final closing, but may be greater for certain funds (i) where we are pursuing newer strategies, (ii) where third party investor demand is limited, and (iii) where a larger commitment is consistent with the asset allocation strategy.
For further information, see "Part II—Item 5—Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities." 195 Table of Contents Contractual Obligations, Commitments and Contingencies In the ordinary course of business, we and our consolidated funds and CFEs enter into contractual arrangements that may require future cash payments.
For further information, see "Part II—Item 5—Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities." Contractual Obligations, Commitments and Contingencies In the ordinary course of business, we (including Global Atlantic) and our consolidated funds and CFEs enter into contractual arrangements that may require future cash payments.
As of December 31, 2024, unrealized losses were not recognized in net income on these fixed maturity securities since Global Atlantic neither intends to sell the securities nor does it believe that it is more likely than not that it will be required to sell these securities before recovery of their cost or amortized cost basis.
As of December 31, 2025 , unrealized losses were not recognized in net income on these fixed maturity securities since the Insurance segments neither intends to sell the securities nor does it believe that it is more likely than not that it will be required to sell these securities before recovery of their cost or amortized cost basis.
As part of its consolidation procedures, KKR evaluates: (1) whether it holds a variable interest in an entity, (2) whether the entity is a VIE, and (3) whether the KKR’s involvement would make it the primary beneficiary. The determination that KKR holds a controlling financial interest in an investment vehicle significantly changes the presentation of our consolidated financial statements.
As part of its consolidation procedures, KKR evaluates: (i) whether it holds a variable interest in an entity, (ii) whether the entity is a VIE, and (iii) whether the KKR’s involvement would make it the primary beneficiary. The determination that KKR holds a controlling financial interest in an investment vehicle significantly changes the presentation of our consolidated financial statements.
All Level III valuations for investments in Asset Management and Strategic Holdings are also subject to approval by the Global Valuation Committee, which is comprised of senior employees including investment professionals and professionals from business operations functions, and includes KKR's Chief Financial Officer, Chief Operating Officer, Chief Legal Officer and General Counsel, and Chief Compliance Officer.
All Level III valuations for investments are also subject to approval by the Global Valuation Committee, which is comprised of senior employees including investment professionals and professionals from business operations functions, and includes KKR's Chief Financial Officer, Chief Legal Officer and General Counsel, and Chief Compliance Officer.
(7) Global Atlantic has other obligations related to collateral payable held for derivative instruments ($157.8 million) and outstanding commitments to make investments in commercial mortgage loans, other lending facilities, and real asset investments ($3.1 billion) which have not been included in the above table as the exact timing of these payments cannot be estimated.
(7) Global Atlantic has other obligations related to collateral payable held for derivative instruments ( $511.5 million ) and outstanding commitments to make investments in commercial mortgage loans, other lending facilities and other investments ( $7.3 billion ) which have not been included in the above table as the exact timing of these payments cannot be estimated.
Global Atlantic elected the fair value option to measure the liability for certain of these variable annuity contracts valued at $277.6 million as of December 31, 2024. Fair value is calculated as the present value of the estimated death benefits less the present value of the GMDB fees, using 1,000 risk neutral scenarios.
Global Atlantic elected the fair value option to measure the liability for certain of these variable annuity contracts valued at $258.8 million as of December 31, 2025 . Fair value is calculated as the present value of the estimated death benefits less the present value of the GMDB fees, using 1,000 risk neutral scenarios.
As of December 31, 2024, the additional liability balance of primarily interest-sensitive life totaled $5.9 billion, net of reinsurance. The increase (decrease) to the additional liability balance, as a result of hypothetical changes in interest rates, equity market prices, annual equity growth, expected mortality, and expected surrenders are summarized in the table below.
As of December 31, 2025 , the additional liability balance of primarily interest-sensitive life totaled $6.2 billion , net of reinsurance. The increase (decrease) to the additional liability balance, as a result of hypothetical changes in interest rates, equity market prices, annual equity growth, expected mortality, and expected surrenders are summarized in the table below.
Credit and Liquid Strategies As of December 31, 2024, our Credit and Liquid Strategies business line had $21.4 billion of remaining uncalled commitments that could be called for investments in new transactions as compared to $16.5 billion as of December 31, 2023.
Credit and Liquid Strategies As of December 31, 2025 , our Credit and Liquid Strategies business line had $31.1 billion of remaining uncalled commitments that could be called for investments in new transactions as compared to $21.4 billion as of December 31, 2024.
Such estimates include but are not limited to (i) the valuation of investments and financial instruments, (ii) the determination of the income tax provision, (iii) the impairment of goodwill and intangible assets, (iv) the impairment of available-for-sale investments, (v) the valuation of insurance policy liabilities, including market risk benefits, (vi) the valuation of embedded derivatives in policy liabilities and funds withheld, (vii) the determination of the allowance for loan losses, and (viii) amortization of deferred revenues and expenses associated with the insurance business.
Such estimates include but are not limited to (i) the valuation of investments and financial instruments, (ii) the determination of the income tax provision, (iii) the impairment of goodwill and intangible assets, (iv) the impairment of available-for-sale investments, (v) the valuation of insurance policy liabilities, including market risk benefits, (vi) the valuation of embedded derivatives in policy liabilities and funds withheld, and (vii) the determination of the allowance for loan losses.
For the year ended December 31, 2024, the net favorable assumption review impact of $74.6 million on income before taxes was primarily due to (i) higher assumed mortality rates for guaranteed income riders on fixed-indexed annuities, and (ii) higher assumed interest rate margins on certain interest-sensitive life products due to an increase in assumed reinvestment rates and flat crediting rates.
For the year ended December 31, 2024 , there was a net favorable assumption review impact of $74.6 million on net policy benefits and claim, which was primarily due to (i) higher assumed mortality rates for guaranteed income riders on fixed-indexed annuities, and (ii) higher assumed interest rate margins on certain interest-sensitive life products due to an increase in assumed reinvestment rates and flat crediting rates.
For the year ended December 31, 2023, approximately 13% of our transaction fees in our Capital Markets business line were earned from unaffiliated third parties as compared to approximately 14% for the year ended December 31, 2022. Our transaction fees are comprised of fees earned from North America, Europe, and the Asia-Pacific region.
For the year ended December 31, 2025 , approximately 15% of our transaction fees in our Capital Markets business line were earned from unaffiliated third parties as compared to approximately 13% for the year ended December 31, 2024 . Our transaction fees are comprised of fees earned from North America, Europe, and the Asia-Pacific region.
Realized investment income earned in our Strategic Holdings segment is reduced by a performance fee charged by our Asset Management segment. For the year ended December 31, 2024, the performance fee was $15.5 million.
Realized investment income earned in our Strategic Holdings segment is reduced by a contractual performance fee charged by our Asset Management segment. For the year ended December 31, 2025 , the performance fee was $12.3 million and for the year ended December 31, 2024 , the performance fee was $15.5 million.
Net Cash Provided (Used) by Operating Activities Our net cash provided (used) by operating activities was $6.6 billion, $(1.5) billion, and $(5.3) billion during the years ended December 31, 2024, 2023, and 2022, respectively.
Net Cash Provided (Used) by Operating Activities Our net cash provided (used) by operating activities was $0.5 billion , $6.6 billion , and $(1.5) billion during the years ended December 31, 2025 , 2024 , and 2023 , respectively.
During the year ended December 31, 2024, U.S. investment grade corporate bond spreads (BofA Merrill Lynch US Corporate Index) tightened by 22 basis points. The non-investment grade credit indices were up during the year ended December 31, 2024 with the S&P/LSTA Leveraged Loan Index up 9.0% and the BofAML HY Master II Index up 8.2%.
During the year ended December 31, 2025, U.S. investment grade corporate bond spreads (BofA Merrill Lynch US Corporate Index) tightened by 3 basis points. The non-investment grade credit indices were up during the year ended December 31, 2025, with the S&P/LSTA Leveraged Loan Index up 5.9% and the BofAML HY Master II Index up 8.5%.
Global Atlantic holds an additional reserve in connection with these guarantees. 207 Table of Contents The additional reserves related to interest-sensitive life products with secondary guarantees are calculated using methods similar to those described above under “—Critical Accounting Policies and Estimates - Insurance—Policy liabilities—Market risk benefits.” The costs related to these secondary guarantees are recognized over the life of the contracts through the accrual and subsequent release of a reserve which is revalued each period.
The additional reserves related to interest-sensitive life products with secondary guarantees are calculated using methods similar to those described above under “—Critical Accounting Policies and Estimates – Insurance—Policy Liabilities— Market Risk Benefits.” The costs related to these secondary guarantees are recognized over the life of the contracts through the accrual and subsequent release of a reserve which is revalued each period.
The members of these valuation committees are comprised of investment professionals, including the heads of each respective strategy, and professionals from business operations functions such as legal, compliance, and finance, who are not primarily responsible for the management of the investments.
The members of these valuation committees are comprised of investment professionals and professionals from business operations functions such as legal, compliance, and finance, who are not primarily responsible for the management of the investments.
Fee Related Compensation The increase in fee related compensation for the year ended December 31, 2023 compared to the prior period was primarily due to a higher level of compensation recorded in connection with the higher level of revenues included within fee related earnings.
Fee Related Compensation The increase in fee related compensation for the year ended December 31, 2025 compared to the prior period was primarily due to a higher level of compensation recorded in connection with the higher level of fee related revenues.
Liquidity Needs We expect that our primary liquidity needs will consist of cash required to meet various obligations, including, without limitation, to: • continue to support and grow our asset management business, including seeding new investment strategies, supporting capital commitments made by our investment vehicles to existing and future funds, co-investments and any net capital requirements of our capital markets companies and otherwise supporting the investment vehicles that we sponsor; • continue to support and grow our insurance business; • continue to support and grow our strategic holdings business; • grow and expand our businesses generally, including by acquiring or launching new, complementary, or adjacent businesses; • warehouse investments in portfolio companies or other investments for the benefit of one or more of our funds, accounts or CLOs or other investment vehicles pending the contribution of committed capital by the fund investors in such investment vehicles, and advancing capital to them for operational or other needs; • service debt obligations including the payment of obligations at maturity, on interest payment dates or upon redemption, as well as any contingent liabilities, including from litigation, that may give rise to future cash payments, including funding requirements to levered investment vehicles or structured transactions; • fund cash operating expenses and contingencies, including for litigation matters and guarantees; • pay corporate income taxes and other taxes; • pay policyholders and amounts in our insurance business related to investment, reinvestment, reinsurance, or funding agreement activity; • pay amounts that may become due under our tax receivable agreement; • pay cash dividends in accordance with our dividend policy for our common stock or the terms of our preferred stock, if any; • underwrite commitments, advance loan proceeds, and fund syndication commitments within our capital markets business; 193 Table of Contents • post or return collateral in respect of derivative contracts; • acquire other assets (including businesses, investments, and other assets) for our businesses, some of which may be required to satisfy regulatory requirements for our capital markets business or risk retention requirements for CLOs (to the extent they may apply); • address capital needs of regulated subsidiaries as well as non-regulated subsidiaries; and • repurchase shares of our common stock or retire equity awards pursuant to the share repurchase program or repurchase or redeem other securities issued by us.
Liquidity Needs We expect that our primary liquidity needs will consist of cash required to meet various obligations, including, without limitation, to: • continue to support and grow our asset management business, including seeding new investment strategies, supporting capital commitments made by our investment vehicles to existing and future funds, co-investments and otherwise supporting the investment vehicles that we sponsor, and acquiring other assets, businesses, and investments for our businesses; • continue to support and grow our insurance business; • continue to support and grow our strategic holdings business, including through the acquisition of new operating companies; • grow and expand our businesses generally, including by acquiring or launching new, complementary, or adjacent businesses; • warehouse investments in portfolio companies or other investments for the benefit of one or more of our funds, accounts or CLOs or other investment vehicles pending the contribution of committed capital by the fund investors in such investment vehicles, and advancing capital to them for operational or other needs; • funding requirements to levered investment vehicles or structured transactions; 129 Table of Contents • service debt obligations including the payment of obligations at maturity, on interest payment dates or upon redemption; • fund cash operating expenses and contingencies, including for litigation matters and guarantees; • pay corporate income taxes and other taxes; • pay policyholders and amounts in our insurance business related to investment, reinvestment, reinsurance, or funding agreement activity; • pay amounts that may become due under our tax receivable agreement; • pay cash dividends in accordance with our dividend policy for our common stock or the terms of our preferred stock; • underwrite commitments, advance loan proceeds, and fund syndication commitments within our capital markets business; • post or return collateral in respect of derivative contracts; • satisfy regulatory requirements for our capital markets business, risk retention requirements for CLOs (to the extent they may apply), or to address capital needs of unregulated and regulated subsidiaries, including capital and collateral requirements, as applicable, for our insurance and broker-dealer subsidiaries; and • repurchase shares of our common stock or retire equity awards pursuant to the share repurchase program or repurchase or redeem other securities issued by us (for a discussion of KKR's share repurchase program, see Note 22 "Equity" in our financial statements).
The decrease in the fair value of interest rate contracts was primarily driven by an increase in market interest rates during the year ended December 31, 2024, as compared to relatively flat market interest rates during the year ended December 31, 2023, resulting in a larger loss on interest rate contracts for the year ended December 31, 2024, as compared to the year ended December 31, 2023.
The increase in the fair value of interest rate contracts was primarily driven by a decrease in market interest rates during the year ended December 31, 2025 , as compared to an increase in market interest rates during the year ended December 31, 2024 , resulting in a gain on interest rate contracts for the year ended December 31, 2025 , as compared to a loss on interest rate contracts for the year ended December 31, 2024 .
Adjusted Net Income The increase in adjusted net income for the year ended December 31, 2024 compared to the prior period was primarily due to a higher level of total segment earnings, partially offset by an increase in income taxes on adjusted earnings.
Adjusted Net Income The increase in adjusted net income for the year ended December 31, 2025 compared to the prior period was primarily due to a higher level of total segment earnings, partially offset by an increase in income taxes on adjusted earnings and interest expense, net and other.
As of December 31, 2024, variable annuities accounted for using the fair value option totaled $277.6 million. The increase (decrease) in the reserves for variable annuities accounted for using the fair value option as a result of hypothetical changes in interest rates, instrument-specific credit risk, equity market prices, expected mortality, and expected surrenders are summarized in the table below.
The increase (decrease) in the reserves for variable annuities accounted for using the fair value option as a result of hypothetical changes in interest rates, instrument-specific credit risk, equity market prices, expected mortality, and expected surrenders are summarized in the table below.
The increase was primarily attributable to (i) new capital raised from Global Atlantic, various private credit funds, and the issuance of CLOs, and to a lesser extent, (ii) appreciation in investment value on assets managed by Marshall Wace, and across our leveraged credit and private credit investment funds.
The increase was primarily attributable to (i) new capital raised from Global Atlantic inflows and deployment at various private credit and leveraged credit investment funds, (ii) the issuance of CLOs, and, to a lesser extent, (iii) investment value appreciation on assets managed by Marshall Wace.
See "Risk Factors" and "—Business Environment" for more information about the factors that may impact our business, financial performance, operating results, and valuations.
See also "Risk Factors" and "—Business Environment" in this report for more information about the factors that may impact our business, financial performance, operating results and valuations.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeThe actual impact to individual line items within the statements of operations would differ from the amounts shown below as a result of (i) the elimination of carried interest as a result of the consolidation of certain investment funds and (ii) the gross-up of net gains (losses) from investment activities, in each case as a result of the consolidation of certain investment funds and CLO vehicles. 214 Table of Contents We estimate that an immediate, hypothetical 10% decline in the exchange rates between the U.S. dollar and all of the major foreign currencies in which our investments were denominated as of December 31, 2024 and December 31, 2023 (i.e., an increase in the value of the U.S. dollar against these foreign currencies) would result in declines in net income attributable to KKR & Co.
Biggest changeWe estimate that an immediate, hypothetical 10% decline in the exchange rates between the U.S. dollar and all of the major foreign currencies in which our investments were denominated as of December 31, 2025 and December 31, 2024 (i.e., an increase in the value of the U.S. dollar against these foreign currencies) would result in declines in net income attributable 149 Table of Contents to KKR & Co.
(2) Excludes point in time impact. Estimated sensitivity to a hypothetical change over 12 months does not take into account any management actions that may be taken to mitigate actual impacts.
(2) Excludes point in time impact. Estimated sensitivity to a hypothetical change over 12 months does not take into account any management actions that may be taken to mitigate actual impacts.
Inc. resulting from a decrease of a hypothetical 100 basis points in variable interest rates used in the recognition of interest income would not be expected to be material since a substantial portion of this decrease would be attributable to noncontrolling interests and CLO third party noteholders. 215 Table of Contents Interest Expense We and certain consolidated investment vehicles, including CLOs, have debt obligations that include revolving credit agreements, certain investment financing arrangements, and debt securities issued by CLO vehicles that accrue interest at variable rates.
Inc. resulting from a decrease of a hypothetical 100 basis points in variable interest rates used in the recognition of interest income would not be expected to be material since a substantial portion of this decrease would be attributable to noncontrolling interests and CLO third party noteholders. 150 Table of Contents Interest Expense We and certain consolidated investment vehicles, including CLOs, have debt obligations that include revolving credit agreements, certain investment financing arrangements, and debt securities issued by CLO vehicles that accrue interest at variable rates.
Based on investments held as of December 31, 2024, we estimate that an immediate 10% decrease in the fair value of investments generally would result in a commensurate change in the amount of net gains (losses) from investment activities (except that carried interest would likely be more significantly impacted), regardless of whether the investment was valued using observable market prices or management estimates with significant unobservable pricing inputs.
Based on investments held as of December 31, 2025 , we estimate that an immediate 10% decrease in the fair value of investments generally would result in a commensurate change in the amount of net gains (losses) from investment activities (except that carried interest would likely be more significantly impacted), regardless of whether the investment was valued using observable market prices or management estimates with significant unobservable pricing inputs.
The point-in-time estimates provided in this section assume no hedge rebalancing and, as such, the impact on Global Atlantic's consolidated net income may be different from what is shown below. 217 Table of Contents Interest Rate Risk Global Atlantic is exposed to interest rate risk as a result of changes in the level and volatility of interest rates.
The point-in-time estimates provided in this section assume no hedge rebalancing and, as such, the impact on Global Atlantic's consolidated net income may be different from what is shown below. 152 Table of Contents Interest Rate Risk Global Atlantic is exposed to interest rate risk as a result of changes in the level and volatility of interest rates.
Effect of Interest Rate Sensitivity In the table below, Global Atlantic estimates the impact of a 50 basis point increase/(decrease) in interest rates, from a parallel shift in the yield curve, from levels as of December 31, 2024 and 2023 to its net income and shareholders’ equity, excluding AOCI.
Effect of Interest Rate Sensitivity In the table below, Global Atlantic estimates the impact of a 50 basis point increase/(decrease) in interest rates, from a parallel shift in the yield curve, from levels as of December 31, 2025 and 2024 to its net income and shareholders’ equity, excluding AOCI.
These changes impact our net income over the periods following equity price moves. Effect of Equity Price Sensitivity In the table below, Global Atlantic estimates the impact of a 10% increase/(decrease) in equity prices from levels as of December 31, 2024 and 2023, to its net income and shareholders’ equity, excluding AOCI.
These changes impact our net income over the periods following equity price moves. Effect of Equity Price Sensitivity In the table below, Global Atlantic estimates the impact of a 10% increase/(decrease) in equity prices from levels as of December 31, 2025 and 2024 , to its net income and shareholders’ equity, excluding AOCI.
In addition, KKR has other committees comprised of senior employees from across our business and operations that consider potential risks to our business. Management of Insurance Business The oversight and governance of our insurance business is aided by a board of directors at TGAFG, which is the holding company for Global Atlantic.
In addition, KKR has other committees comprised of senior employees from across our business and operations that consider potential risks to our business. Management of Insurance Business The oversight and governance of our insurance business is aided by a board of directors at TGAFG, which is the holding company for our insurance business.
Effect of Credit Spread Sensitivity In the table below, Global Atlantic estimates the impact of a 50 basis points increase/(decrease) in credit spreads from levels as of December 31, 2024 and 2023, to its net income and shareholders’ equity, excluding AOCI.
Effect of Credit Spread Sensitivity In the table below, Global Atlantic estimates the impact of a 50 basis points increase/(decrease) in credit spreads from levels as of December 31, 2025 and 2024 , to its net income and shareholders’ equity, excluding AOCI.
Based on the fair value of investments as of December 31, 2024 and December 31, 2023, we estimate that an immediate, hypothetical 10% decline in the fair value of investments would result in declines in net income attributable to KKR & Co.
Based on the fair value of investments as of December 31, 2025 and December 31, 2024, we estimate that an immediate, hypothetical 10% decline in the fair value of investments would result in declines in net income attributable to KKR & Co.
Hedge Program To manage market risk, Global Atlantic established a hedge program that seeks to mitigate economic impacts primarily from interest rate and equity price movements, while taking into consideration accounting and capital impacts.
Hedge Program To manage market risk, Global Atlantic established a hedge program that seeks to mitigate economic impacts primarily from interest rate, equity price, and foreign exchange rate movements, while taking into consideration accounting and capital impacts.
The estimated changes include the related income tax impacts. 219 Table of Contents Equity Price Risk Global Atlantic is exposed to equity price risk as a result of changes in the level and volatility of equity prices.
The estimated changes include the related income tax impacts. 154 Table of Contents Equity Price Risk Global Atlantic is exposed to equity price risk as a result of changes in the level and volatility of equity prices.
Inc. before income taxes in 2024 and 2023 from reductions in the following items, net of the impact of foreign exchange hedging strategies, if not offset by other factors: December 31, 2024 December 31, 2023 Hypothetical 10% Decline in Foreign Currencies Against the U.S. Dollar (1) Hypothetical 10% Decline in Foreign Currencies Against the U.S.
Inc. before income taxes in 2025 and 2024 from reductions in the following items, net of the impact of foreign exchange hedging strategies, if not offset by other factors: December 31, 2025 December 31, 2024 ($ in thousands) Hypothetical 10% Decline in Foreign Currencies Against the U.S. Dollar (1) Hypothetical 10% Decline in Foreign Currencies Against the U.S.
KKR, and Global Atlantic in particular, has material exposure to market volatility in interest rates, credit spreads, and equity prices through its insurance liabilities, many of which are structured to have exposure to market level changes, its investment portfolio, and its hedge program.
KKR has material exposure to market volatility in interest rates, credit spreads, and equity prices through its insurance liabilities, many of which are structured to have exposure to market level changes, its investment portfolio, and its hedge program.
In addition, availability of financing from financial institutions may be uncertain due to market events, and we may not be able to access these financing markets. 216 Table of Contents Insurance Segment Market Risks The following is a discussion of the significant market risk exposures for our insurance business conducted through Global Atlantic.
In addition, availability of financing from financial institutions may be uncertain due to market events, and we may not be able to access these financing markets. 151 Table of Contents Insurance Segment Market Risks The following is a discussion of the significant market risk exposures , on a GAAP basis, for our insurance business conducted through Global Atlantic.
December 31, 2024 December 31, 2023 Hypothetical Change Hypothetical Change +50 Basis Points -50 Basis Points +50 Basis Points -50 Basis Points ($ in thousands) Total Estimated AOCI Sensitivity (Point in Time) $ (1,142,278) $ 1,225,303 $ (1,338,318) $ 1,379,943 The estimated point in time impact is primarily driven by a (i) net (decrease)/increase in the value of Global Atlantic's available-for-sale fixed maturity securities which are carried at fair value with unrealized gains and losses, (ii) the effect of changes in the discount rates used to measure traditional and limited-payment long duration insurance contracts, and (iii) the effect on additional insurance liabilities when unrealized gains and losses are included in the investment margin while calculating the present value of expected assessments for the benefit ratio; all of which are reported in AOCI.
December 31, 2025 December 31, 2024 Hypothetical Change Hypothetical Change ($ in thousands) +50 Basis Points -50 Basis Points +50 Basis Points -50 Basis Points Total Estimated AOCI Sensitivity (Point in Time) $ (1,337,622) $ 1,406,895 $ (1,142,278) $ 1,225,303 The estimated point in time impact is primarily driven by a (i) net (decrease)/increase in the value of Global Atlantic's available-for-sale fixed maturity securities which are carried at fair value with unrealized gains and losses, (ii) the effect of changes in the discount rates used to measure traditional and limited-payment long duration insurance contracts, and (iii) the effect on additional insurance liabilities when unrealized gains and losses are included in the investment margin while calculating the present value of expected assessments for the benefit ratio; all of which are reported in AOCI.
The proportion of our management fees that are based on NAV depends on the number and type of funds in existence. For the years ended December 31, 2024 and 2023, the fund management fees that were recognized based on the NAV of the applicable funds was approximately 18% and 17%, respectively.
The proportion of our management fees that are based on NAV depends on the number and type of funds in existence. For the years ended December 31, 2025 and 2024, the fund management fees that were recognized based on the NAV of the applicable funds was approximately 20% and 18%, respectively.
For Global Atlantic's fixed-indexed annuity and interest-sensitive life policies, Global Atlantic generally seeks to use static hedges to offset the exposure primarily created by changes in embedded derivative balances. For Global Atlantic's variable annuity policies, Global Atlantic generally seeks to dynamically hedge its exposure to changes in the value of the guarantee Global Atlantic provides to policyholders.
For Global Atlantic's fixed-indexed annuity and interest-sensitive life policies, Global Atlantic generally seeks to use static hedges to offset the exposure primarily created by changes in indexed account values. For Global Atlantic's variable annuity policies, Global Atlantic generally seeks to dynamically hedge its exposure to changes in the value of the guarantee Global Atlantic provides to policyholders.
Dollar (1) ($ in thousands) Carried Interest, Net of Carry Pool Allocation $ 96,897 (2)(3) $ 188,785 (2) Net Gains/(Losses) From Investment Activities Including General Partner Capital Interest $ 241,074 (2) $ 379,599 (2) (1) An immediate, hypothetical 10% decline in exchange rates between the U.S. dollar and all of the major foreign currencies in which our investments were denominated would not be expected to materially impact our management fees or incentive fees.
Dollar (1) Carried Interest, Net of Carry Pool Allocation $ 91,218 (2)(3) $ 96,897 (2)(3) Net Gains/(Losses) From Investment Activities Including General Partner Capital Interest $ 186,175 (2) $ 241,074 (2) (1) An immediate, hypothetical 10% decline in exchange rates between the U.S. dollar and all of the major foreign currencies in which our investments were denominated would not be expected to materially impact our management fees or incentive fees.
Management of General Business Risk KKR has a Risk and Operations Committee comprised of senior employees from across our asset management and insurance businesses and operating functions, and it includes our Chief Financial Officer, Chief Operating Officer, Chief Legal Officer and General Counsel, Chief Compliance Officer, and other senior employees.
For more information, see "Management of Insurance Business" below. Management of General Business Risk KKR has a Risk and Operations Committee comprised of senior employees from across our asset management and insurance businesses and operating functions, and it includes our Chief Financial Officer, Chief Legal Officer and General Counsel, Chief Compliance Officer, and other senior employees.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Our exposure to market risks in our asset management and strategic holdings segments primarily relates to movements in one or more of the fair value of investments, including the effect that those movements have on our management fees, carried interest, and net gains from investment activities.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Our exposure to market risks for KKR's asset management and strategic holdings businesses, on a GAAP basis, primarily relates to movements in one or more of the fair value of investments, including the effect that those movements have on our management fees, carried interest, and net gains from investment activities.
These estimated changes include the impact of related amortization of deferred revenue and expenses and related income tax impacts. For a discussion of current market conditions, see "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations—Business Environment." 220 Table of Contents
These estimated changes include the impact of related amortization of deferred revenue and expenses and related income tax impacts. For a discussion of current market conditions, see "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations—Business Environment" in this report.
December 31, 2024 December 31, 2023 Hypothetical Change Hypothetical Change +50 Basis Points -50 Basis Points +50 Basis Points -50 Basis Points ($ in thousands) Total Estimated Net income and Shareholders’ Equity Excluding AOCI Sensitivity (Point in Time) $ 330,302 $ (331,283) $ 181,690 $ (187,903) In the table below Global Atlantic estimates the impact of a 50 basis point increase/(decrease) in instrument-specific credit risk on market risk benefits, for a parallel shift in the yield curve, from levels as of December 31, 2024 and 2023, to its AOCI.
December 31, 2025 December 31, 2024 Hypothetical Change Hypothetical Change ($ in thousands) +50 Basis Points -50 Basis Points +50 Basis Points -50 Basis Points Total Estimated Net income and Shareholders’ Equity Excluding AOCI Sensitivity (Point in Time) $ 356,243 $ (362,891) $ 330,302 $ (331,283) In the table below Global Atlantic estimates the impact of a 50 basis point increase/(decrease) in instrument-specific credit risk on market risk benefits, for a parallel shift in the yield curve, from levels as of December 31, 2025 and 2024 , to its AOCI.
December 31, 2024 December 31, 2023 Hypothetical Change Hypothetical Change +50 Basis Points -50 Basis Points +50 Basis Points -50 Basis Points ($ in thousands) Total Estimated AOCI Sensitivity (Point in Time) $ 113,363 $ (125,813) $ 123,692 $ (137,731) The estimated point in time impact is driven primarily by the effect of changes in the fair value of a market risk benefit attributable to a change in the instrument-specific credit risk.
December 31, 2025 December 31, 2024 Hypothetical Change Hypothetical Change ($ in thousands) +50 Basis Points -50 Basis Points +50 Basis Points -50 Basis Points Total Estimated AOCI Sensitivity (Point in Time) $ 137,466 $ (151,942) $ 113,363 $ (125,813) The estimated point in time impact is driven primarily by the effect of changes in the fair value of a market risk benefit attributable to a change in the instrument-specific credit risk.
These sensitivities include the impact of related hedges and adjustments to DAC attributable to interest rate changes.
These sensitivities include the impact of related hedges and adjustments to policy liabilities attributable to interest rate changes.
These are largely offset by a loss/(gain) in financial instruments used in Global Atlantic's hedging program, investments classified as trading, and loans designated under the fair value option, based on balances in place as of year end.
These are largely offset by a loss/(gain) in financial instruments used in Global Atlantic's hedging program, investments classified as trading, and loans designated under the fair value option, based on balances in place as of year end. These estimated changes include the related income tax impacts.
Inc. before income taxes in 2024 and 2023 from reductions in the following items, if not offset by other factors: December 31, 2024 December 31, 2023 Hypothetical 10% Decline in Fair Value of Investments (1) Hypothetical 10% Decline in Fair Value of Investments (1) ($ in thousands) Management Fees $ 60,782 (2) $ 50,011 (2) Carried Interest, Net of Carry Pool Allocation $ 442,171 (3)(4) $ 902,575 (3) Net Gains/(Losses) From Investment Activities Including General Partner Capital Interest $ 1,890,459 (3) $ 1,831,293 (3) (1) An immediate, hypothetical 10% decline in the fair value of investments would also impact our ability to earn incentive fees.
Inc. before income taxes in 2025 and 2024 from reductions in the following items, if not offset by other factors: December 31, 2025 December 31, 2024 ($ in thousands) Hypothetical 10% Decline in Fair Value of Investments (1) Hypothetical 10% Decline in Fair Value of Investments (1) Management Fees $ 82,516 (2) $ 60,782 (2) Carried Interest, Net of Carry Pool Allocation $ 549,627 (3)(4) $ 442,171 (3)(4) Net Gains/(Losses) From Investment Activities Including General Partner Capital Interest $ 2,003,440 (3) $ 1,890,459 (3) (1) An immediate, hypothetical 10% decline in the fair value of investments would also impact our ability to earn incentive fees.
Our exposure to market risks in our insurance segment primarily relates to the impact of movements in such market risks on our insurance segment’s assets, liabilities, and hedge program, as discussed below under “Insurance Segment Market Risks." The fair value of investments may fluctuate in response to changes in the values of investments, foreign currency exchange rates, and interest rates.
Our exposure to market risks in our insurance segment, on a GAAP basis, primarily relates to the impact of movements in such market risks on our insurance segment’s assets, liabilities, and hedge program. The fair value of investments may fluctuate in response to changes in the values of investments, foreign currency exchange rates, and interest rates.
Due to the dynamic lapse sensitivities within Global Atlantic's models, market volatility in interest rates also impacts the reserves and deferred acquisition costs of certain fixed annuity products, changes in which are recorded in the consolidated statement of operations.
Due to the dynamic lapse sensitivities within Global Atlantic's models, market volatility in interest rates also impacts the policy liabilities of certain fixed annuity products, changes in which are recorded in the consolidated statement of operations.
December 31, 2024 December 31, 2023 Hypothetical Change (1) Hypothetical Change (1) +50 Basis Points -50 Basis Points +50 Basis Points -50 Basis Points ($ in thousands) Total Estimated Net income and Shareholders’ Equity Excluding AOCI Sensitivity (Point in Time) $ 217,630 $ (227,213) $ 163,003 $ (165,739) Total Estimated Net Income and Shareholders’ Equity Excluding AOCI Sensitivity (Over 12 Months) (2) 28,843 (28,843) 47,454 (47,454) (1) The point in time and over 12 months total estimated impacts reflect the impact of hedges within Global Atlantic's liability hedging program, as well as hedges designed to limit surplus volatility resulting from interest rate movements.
December 31, 2025 December 31, 2024 Hypothetical Change (1) Hypothetical Change (1) ($ in thousands) +50 Basis Points -50 Basis Points +50 Basis Points -50 Basis Points Total Estimated Net income and Shareholders’ Equity Excluding AOCI Sensitivity (Point in Time) $ 306,814 $ (320,746) $ 217,630 $ (227,213) Total Estimated Net Income and Shareholders’ Equity Excluding AOCI Sensitivity (Over 12 Months) (2) 70,283 (70,283) 28,843 (28,843) (1) The point in time and over 12 months total estimated impacts reflect the impact of hedges within Global Atlantic's liability hedging program, as well as hedges designed to limit surplus volatility resulting from interest rate movements.
December 31, 2024 December 31, 2023 Hypothetical Change (1) Hypothetical Change (1) +10% Equity Prices -10% Equity Prices +10% Equity Prices -10% Equity Prices ($ in thousands) Total Estimated Net income and Shareholders’ Equity Excluding AOCI Sensitivity (Point in Time) $ (3,646) $ (672) $ (14,861) $ 10,129 Total Estimated Net Income and Shareholders’ Equity Excluding AOCI Sensitivity (Over 12 Months) (2) $ 4,232 $ (4,716) $ 4,660 $ (5.161) (1) From time to time, Global Atlantic may choose to enter into additional hedges to mitigate economic exposure to equity markets.
December 31, 2025 December 31, 2024 Hypothetical Change (1) Hypothetical Change (1) ($ in thousands) +10% Equity Prices -10% Equity Prices +10% Equity Prices -10% Equity Prices Total Estimated Net income and Shareholders’ Equity Excluding AOCI Sensitivity (Point in Time) $ (1,055) $ (19,674) $ (3,646) $ (672) Total Estimated Net Income and Shareholders’ Equity Excluding AOCI Sensitivity (Over 12 Months) (2) $ 4,045 $ (4,515) $ 4,232 $ (4,716) (1) From time to time, Global Atlantic may choose to enter into additional hedges to mitigate economic exposure to equity markets.
The collateral is based on the par value of the investments and cash on hand. 213 Table of Contents To the extent that management fees are calculated based on the NAV of the fund's investments, the amount of fees that we may charge will increase or decrease in direct proportion to the effect of changes in the fair value of the fund's investments.
To the extent that management fees are calculated based on the NAV of the fund's investments, the amount of fees that we may charge will increase or decrease in direct proportion to the effect of changes in the fair value of the fund's investments.
Global Atlantic's management-level committees also evaluate and oversee certain risks affecting our insurance business, including Global Atlantic’s Financial Risk Committee, Firmwide Executive Review Committee and Management Committee, each of which consists of senior employees from across our insurance and asset management businesses.
Global Atlantic's management-level committees also evaluate and oversee certain risks affecting our insurance business, including Global Atlantic’s Financial Risk Committee, Firmwide Executive Review Committee and Insurance Operating Committees, each of which consists of senior employees from across our insurance and asset management businesses. For a discussion of Global Atlantic's hedge program, see "—Insurance Segment Market Risks—Hedge Program" below.
Publicly Traded Securities Our investment vehicles and KKR's balance sheet, including through its principal activities business line, hold certain investments in companies whose securities are publicly traded. The market prices of securities may be volatile and are likely to fluctuate due to a number of factors beyond our control.
Publicly Traded Securities We and our investment vehicles hold certain investments in companies whose securities are publicly traded. The market prices of securities may be volatile and are likely to fluctuate due to a number of factors beyond our control.
As of December 31, 2024 and 2023, Global Atlantic had a $194 thousand and $600 thousand credit derivative position, respectively.
As of December 31, 2025 and 2024 , Global Atlantic had a $5.0 million and $194 thousand credit derivative position, respectively.
Inc. resulting from an increase of a hypothetical 100 basis points in variable interest rates used in the recognition of interest expense, net of the impact of interest rate hedging strategies, would not be expected to be material.
Inc. resulting from an increase of a hypothetical 100 basis points in variable interest rates used in the recognition of interest expense, net of the impact of interest rate hedging strategies, would not be expected to be material. Additionally, debt issued or guaranteed by KKR & Co. Inc. generally accrues interest at fixed rates.
Aggregate balance sheet risk and capital deployed for transactions are monitored on an ongoing basis by the Balance Sheet Committee referenced above. 211 Table of Contents With respect to the funds and other investment vehicles through which we make investments for our fund investors, KKR manages risk by subjecting transactions to the review and approval of an applicable investment committee or portfolio manager; a portfolio management committee (or other designated senior employees) then regularly monitors these investments.
With respect to the funds and other investment vehicles through which we make investments for our fund investors, KKR manages investment risks by subjecting transactions to the review and approval of an applicable investment committee or portfolio manager; a portfolio management committee (or other designated senior employees) then regularly monitors these investments.
Changes in Fair Value The majority of our investments as of December 31, 2024, are reported at fair value. Net changes in the fair value of investments impact the net gains (losses) from investment activities in our consolidated statements of operations.
Net changes in the fair value of investments impact the net gains (losses) from investment activities in our consolidated statements of operations.
While not the primary focus of its hedging strategy, Global Atlantic also enters into currency swaps and forwards to manage foreign exchange rate risks with respect to certain investments denominated in foreign currencies. Global Atlantic also enters into inflation swaps to manage inflation risk associated with inflation-indexed preneed policies.
Global Atlantic also enters into currency swaps and forwards to manage foreign exchange rate risks with respect to certain assets and liabilities denominated in foreign currencies. Global Atlantic also enters into inflation swaps to manage inflation risk associated with inflation-indexed preneed policies.
In the case of our CLO vehicles, management fees are calculated based on the collateral of the vehicle.
In the case of our CLO vehicles, management fees are calculated based on the collateral of the vehicle. The collateral is based on the par value of the investments and cash on hand.
See "Risk Factors—Risks Related to Our Insurance Activities—Volatile market and economic conditions, including sustained periods of low interest rates, a sustained increase in interest rates and other interest rate fluctuations, may adversely affect our insurance business" and "Risk Factors—Risks Related to Our Business—Risk management activities may not be effective and, consequently, may adversely affect us." Sensitivities Global Atlantic evaluates the sensitivity of net income to specific changes in interest rates, credit spreads, and equity prices projected using internal models.
See "Risk Factors—Risks Related to Our Insurance Activities—Volatile market and economic conditions, including sustained increases or decreases in interest rates and other interest rate fluctuations, may adversely affect our insurance business" and "Risk Factors—Risks Related to Our Business—The failure to manage our financial and enterprise risks could materially and adversely affect our financial condition and results of operation." Sensitivities Global Atlantic evaluates the sensitivity of net income to specific changes in interest rates, credit spreads, and equity prices projected using internal models.
The quantitative information provided in this section was prepared using estimates and assumptions that management believes are appropriate. The actual impact of a hypothetical adverse movement in these risks could be materially different from the amounts shown below. The Board of Directors is responsible for oversight and the overall governance of KKR.
The actual impact of a hypothetical adverse movement in these risks could be materially different from the amounts shown below. The Board of Directors is responsible for oversight and the overall governance of KKR.
Regulatory capital requirements also place limits on the size of securities underwritings the capital markets business can conduct based on quantitative measure of assets, liabilities, and certain off-balance-sheet items.
Regulatory capital requirements also place limits on the size of securities underwritings the capital markets business can conduct based on quantitative measure of assets, liabilities, and certain off-balance-sheet items. Aggregate balance sheet risk and capital deployed for transactions are monitored on an ongoing basis by or on behalf of members of the Balance Sheet Committee.
Management Fees Our management fees in our Private Equity and Real Assets business lines are generally calculated based on the amount of capital committed or invested by a fund, as described under "—Business—Our Business—Private Equity" and "—Business—Our Business—Real Assets." Accordingly, movements in the fair value of investments do not significantly affect the amount of fees we may charge in Private Equity and Real Assets funds.
Management's Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Policies and Estimates — Asset Management and Strategic Holdings" for further discussion related to the changes in our carry pool. 148 Table of Contents Management Fees Our management fees in our Private Equity and Real Assets business lines are generally calculated based on the amount of capital committed or invested by a fund, as described under "—Business—Our Business—Private Equity" and "—Business —Our Business—Real Assets." Accordingly, movements in the fair value of investments do not significantly affect the amount of fees we may charge in Private Equity and Real Assets funds.
In the table below Global Atlantic estimates the impact of a 50 basis point increase/(decrease) in interest rates, for a parallel shift in the yield curve, from levels as of December 31, 2024 and 2023, to Global Atlantic's AOCI.
The impact over 12 months is driven by an increase/(decrease) in the income earned on Global Atlantic's floating rate assets, and partially offset by an increase/(decrease) in the cost of its floating-rate liabilities. 153 Table of Contents In the table below Global Atlantic estimates the impact of a 50 basis point increase/(decrease) in interest rates, for a parallel shift in the yield curve, from levels as of December 31, 2025 and 2024 , to Global Atlantic's AOCI.
An investment team presents the investment and its identified risks to an investment committee or a portfolio manager, which must approve each investment before it may be made. If an investment is made, a portfolio management committee (or other designated senior employees) is responsible for working with our investment professionals to monitor the investment on an ongoing basis.
An investment team presents the investment and its identified risks to an investment committee or a portfolio manager, which must approve each investment before it may be made.
For a discussion of Global Atlantic's hedge program, see "—Insurance Segment Market Risks—Hedge Program" below. 212 Table of Contents Asset Management and Strategic Holdings Segment Market Risks The following is a discussion of the significant market risk exposures for KKR's asset management businesses.
Asset Management and Strategic Holdings Segment Market Risks The following is a discussion of the significant market risk exposures for KKR's asset management and strategic holdings businesses and the impact they could have on our consolidated GAAP financial results.
We also manage market risks that relate to our insurance business through a board of directors and management team specifically focused on Global Atlantic. For more information, see "Management of Insurance Business" below.
If an investment is made, a portfolio management committee (or other designated senior employees) is responsible for working with our investment professionals to monitor the investment on an ongoing basis. 146 Table of Contents We also manage market risks that relate to our insurance business through a board of directors and management team specifically focused on Global Atlantic.
Management of Market Risk KKR has a firmwide Market Risk Management Committee that seeks to oversee market risk management across KKR. Its membership includes both Co-Chief Executive Officers, the Chief Financial Officer, and other members of senior management. The committee reviews and assesses market risk exposures, including those related to liquidity and capital and across our segments and business lines.
Management of Market Risk KKR has a Balance Sheet Committee consisting of senior employees, including our Co-Executive Chairmen, our Co-Chief Executive Officers, and the Chief Financial Officer, which meets periodically to review the financial activities of KKR. Members of the Balance Sheet Committee oversee and manage KKR's balance sheet assets and liabilities, including capital structure, capital allocation, and liquidity.
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KKR also has a Derivatives & Liability Management Committee that is responsible for monitoring and managing KKR’s liabilities and market exposures. Its membership includes one of our Co-Chief Executive Officers, the Chief Financial Officer, and other members of senior management.
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The quantitative information provided in this section was prepared using estimates and assumptions that management believes are appropriate for purposes of evaluating the significant market risk exposures for KKR's businesses and the impact they could have on our consolidated GAAP financial results.
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When we allocate capital to our businesses or investments, a Balance Sheet Committee of senior employees, including our Co-Executive Chairmen, one of our Co-Chief Executive Officers, and the Chief Financial Officer, must approve the investment or transaction before it may be made.
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In addition, certain members of the Balance Sheet Committee through a firmwide risk committee oversee and manage KKR’s market risks and liabilities, including investment-related liabilities, hedging activities, and insurance risks.
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The committee has delegated authority to other senior employees to approve certain investments or transactions, subject to maximum commitment sizes or other limitations determined by the committee. In addition, this committee supervises activities governing KKR's capital structure, liquidity, and the composition of our balance sheet.
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Hedge Program To manage market risk, KKR maintains hedging programs that seek to mitigate economic impacts primarily from movements in foreign exchange rates, interest rates, and other market variables. These hedging activities are conducted at both the fund level and the KKR balance sheet level and vary based on the nature of the underlying exposure and investment strategy.
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Please see "— Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Policies and Estimates — Asset Management and Strategic Holdings" for further discussion related to the changes in our carry pool.
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With respect to foreign exchange risk, KKR is exposed to currency fluctuations primarily through non-U.S. dollar investments held by our funds and balance sheet, as well as through foreign currency share classes offered by certain funds. KKR generally seeks to hedge a portion of these foreign exchange exposures through currency forwards and options.
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With respect to debt obligations held by KKR and not in the consolidated investment vehicles or CLOs, as of both December 31, 2024 and 2023, KKR had debt obligations outstanding with an aggregate principal amount of approximately $258.5 million that accrues interest at a variable rate.
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Such hedges are typically designed to reduce the volatility associated with changes in foreign exchange rates rather than to eliminate all currency risk and may be implemented on a static or rolling basis depending on the underlying exposure. With respect to interest rate risk, KKR is exposed primarily through portfolio company financing arrangements.
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These estimated changes include the related income tax impacts. 218 Table of Contents The impact over 12 months is driven by an increase/(decrease) in the income earned on Global Atlantic's floating rate assets, and partially offset by an increase/(decrease) in the cost of its floating-rate liabilities.
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At the portfolio company level, interest rate hedging is generally intended to reduce variability in cash flows associated with floating- rate indebtedness. 147 Table of Contents KKR is also exposed to credit and equity market risk, primarily in connection with capital markets warehousing and syndication activities.
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In these contexts, KKR may enter into hedges designed to limit short-term market risks to the economic value of such exposures, including the use of credit and equity derivatives.
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From time to time, KKR also enters into hedges designed to limit the volatility associated with changes in the value of its balance sheet investments or earnings as a result of broader market movements, including changes in interest rates, credit spreads, or equity markets, while taking into consideration holistic economic impacts.
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KKR’s hedge programs are not designed to, and may not be effective in, offsetting all impacts to net income, assets under management, or economic values. Movements in market variables that are not explicitly hedged, as well as basis risk, counterparty risk, liquidity constraints, and imperfect correlation between hedges and underlying exposures, may result in volatility in KKR’s results.
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See “Risk Factors—Risks Related to Our Business—The failure to manage our financial and enterprise risks could materially and adversely affect our financial condition and results of operation.” Sensitivities Changes in Fair Value The majority of our investments as of December 31, 2025 , are reported at fair value.
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The actual impact to individual line items within the statements of operations would differ from the amounts shown below as a result of (i) the elimination of carried interest as a result of the consolidation of certain investment funds and (ii) the gross-up of net gains (losses) from investment activities, in each case as a result of the consolidation of certain investment funds and CLO vehicles.
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Exchange Rate Risk Global Atlantic manages its exchange rate risk to maintain minimal exposure to exchange rate fluctuations.
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Global Atlantic seeks to completely hedge exchange rate risk arising from the assets and liabilities on its balance sheet through either matching exchange rate exposures on either side of the balance sheet, or by engaging in hedging activities to eliminate or mitigate exchange rate mismatch risk.
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Global Atlantic estimates that an immediate, hypothetical 10% decrease in exchange rates between the U.S. dollar and all of the major foreign currencies in which its assets and liabilities were denominated as of December 31, 2025 (i.e., a decrease in the value of the U.S. dollar against these foreign currencies) would result in a decrease in net income attributable to KKR & Co.
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Inc. before income taxes, net of the impact of foreign exchange hedging strategies, if not offset by other factors, of approximately $56 million. 155 Table of Contents

Other KKR 10-K year-over-year comparisons