KKR & Co. · 10-Q · Item 2 MD&A

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND

RESULTS OF OPERATIONS

The following discussion and analysis should be read in conjunction with the unaudited condensed consolidated financial

statements of KKR & Co. Inc., together with its consolidated subsidiaries, and the related notes included elsewhere in this

report and our Annual Report, including the audited consolidated financial statements and the related notes and

"Management's Discussion and Analysis of Financial Condition and Results of Operations" and “Business” section contained

therein. In addition, this discussion and analysis contains forward-looking statements and involves numerous risks and

uncertainties, including those described under “Cautionary Note Regarding Forward-looking Statements” and “Business

Environment” in this report and our Annual Report and “Risk Factors” in our Annual Report, and our other filings with the SEC.

Actual results may differ materially from those contained in any forward-looking statements.

The unaudited condensed consolidated financial statements and the related notes included elsewhere in this report are

hereafter referred to as the “financial statements.” Additionally, the condensed consolidated statements of financial condition

are referred to herein as the “consolidated statements of financial condition”; the condensed consolidated statements of

operations are referred to herein as the “consolidated statements of operations”; the condensed consolidated statements of

comprehensive income (loss) are referred to herein as the “consolidated statements of comprehensive income (loss)”; the

condensed consolidated statements of changes in equity are referred to herein as the “consolidated statements of changes in

equity”; and the condensed consolidated statements of cash flows are referred to herein as the “consolidated statements of

cash flows.”

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.

Founded in 1976, KKR pioneered the leveraged buyout strategy and has been a leader of the private equity industry for

five decades. 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. Over the same period, we scaled from being a U.S.-focused firm to a

global operation with 36 offices around the world as of June 30, 2026. Our business further expanded with the acquisition of

Global Atlantic in 2021, which today conducts our insurance business providing retirement and life insurance solutions. As of

June 30, 2026, we managed $796 billion of assets under management, of which $220 billion comes from Global Atlantic.

Our three reporting segments align with the KKR business model:

Our business model of (i) Asset Management, (ii) Insurance, and (iii) Strategic Holdings corresponds to our three reporting

segments. We have purposely created a business model that we believe enables us to grow long-term, durable, recurring

earnings with a focus on large addressable markets where we can be an industry leader. Importantly, these pieces were built

to leverage our core strengths as a firm: investing acumen, capital allocation expertise and our collaborative culture.

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Business Segments

Asset Management

In Asset Management, we have five business lines: (i) Private Equity, (ii) Real Assets, (iii) Credit and Liquid Strategies, (iv)

Capital Markets, and (v) Principal Activities.

Our Assets Under Management have grown and diversified in the last 15 years across Private Equity, Real Assets, and

Credit and Liquid Strategies as illustrated on the following chart. T1KKR has evolved from a relatively US-centric and traditional

private equity firm to a global alternative asset manager. As of December 31, 2010, our traditional Private Equity strategy

represented over 70% of our total AUM. As of June 30, 2026, traditional Private Equity was less than 25% of our total AUM.

Assets Under Management ($ in billions):

Liquid Strategies

Alternative Credit

Credit and Liquid

Strategies(1)(3)

CAGR

Leveraged Credit

Real Estate

Real Assets(2)(3)

Infrastructure &

Energy

Growth Equity

Core Private Equity

Private Equity(3)

Traditional Private

Equity

(1)As of June 30, 2026, Alternative Credit AUM includes $91 billion of asset-based finance, $48 billion of corporate private credit (including $39 billion of

direct lending) and $11 billion of strategic investments.

(2)Real estate credit lends across the risk return spectrum of investments secured by or relating to real property, including senior mortgage loans, mezzanine

loans and mortgage-backed securities in North America and Europe. As of June 30, 2026, real estate credit AUM totals $43 billion. Real estate equity seeks

core, core+ and opportunistic real estate investment opportunities by geography: North America, Europe and Asia Pacific. As of June 30, 2026, real estate

equity AUM totals $41 billion. This includes $12 billion from the management of two publicly listed Japanese REITs through our subsidiary, KJRM.

(3)The K-Series suite of vehicles are offered through various distribution channels to investors in the U.S. and other jurisdictions around the world. We have

K-Series vehicles that operate or invest in private equity companies, infrastructure assets, credit investments, and real estate. As of June 30, 2026, total K-

Series AUM was $42 billion, which has grown significantly over the past three years.

As an asset management firm, we earn recurring management fees and fee-related performance revenues for providing

investment management services and expertise to our institutional and individual investors who entrust us with their capital.

The amount of fees we charge for managing these assets depends on the underlying investment strategy, liquidity profile, and

ultimately our ability to generate attractive investment returns for our clients.

We earn transaction fees for providing capital markets services as a broker-dealer, and we also earn transaction and

monitoring fees as part of the management of our portfolio companies.

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.

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Operating expenses, which include occupancy expenses and other typical operating expenses, are shared across a single

expense pool given the collaborative nature of our five business lines within Asset Management.

Insurance

Our insurance business operates under the Global Atlantic brand. 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.

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. As of June 30, 2026, Global Atlantic serves over 3.5 million policyholders.

The following table represents Global Atlantic’s new business volumes by business and product for the three and six

Three Months Ended June 30,

Six Months Ended June 30,

($ in millions)

Individual Channel (1):

Retirement Products

Preneed Life

Institutional Channel(2)(3)

(1)New business volumes in individual markets are referred to as sales. 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. Similarly, funding agreements issued in the FABN program are subject to

capital markets conditions and volumes may fluctuate. Flow and pension risk transfer new business volumes typically occur throughout the year. See “—

Risks Related to Our Business—Parts of our earnings and cash flow are highly variable due to the nature of our business” in our Annual Report.

(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.

Strategic Holdings

T2Our Strategic Holdings segment, which we started reporting in the first quarter of 2024, acquires and manages interests

in operating companies that are owned by the firm. Today, those companies primarily consist of our participation in our core

private equity strategy. We have acquired, and in the future we expect to continue to acquire, other long-term assets outside

of, and in addition to, our participation in our core private equity strategy. Strategic Holdings is not limited to acquiring

companies in specific industries. We intend to hold the companies in our Strategic Holdings segment over a longer period of

time, and we believe most of these companies generally have a lower risk profile than would be typical for an investment

through our traditional private equity strategy. 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 June 30, 2026, our Strategic Holdings segment consisted of our

ownership stakes in 19 companies.

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. Additionally, our Asset Management segment charges

a performance fee from the sale of our interests in the companies included in our Strategic Holdings segment. 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.

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Based on information made available to management as of June 30, 2026, the following represents KKR’s pro-rata portion

of LTM Adjusted EBITDA(1) of operating companies in Strategic Holdings as of March 31, 2026:

By Geography

By Industry

Based on information made available to management as of June 30, 2026, the following represents KKR’s pro-rata portion

of LTM Adjusted Revenue(1) and LTM Adjusted EBITDA(1) of operating companies in Strategic Holdings as of March 31, 2026:

Adjusted Revenue(1)

Adjusted EBITDA(1)

(1)Represents the measure(s) management currently uses to monitor the operating performance of the businesses that are carried on a fair value basis with

dividends recognized in Strategic Holdings Operating Earnings.

Business Environment

Our asset management, insurance, and strategic holdings segments are affected by the various market and economic

conditions of the various countries and regions in which we operate. T3Market and economic conditions are expected to

continue to have a substantial impact on our financial condition, results of operations, and our business in various ways that

we are unable to control, including our ability to make new investments, the valuations of the investments we manage, the

amount of investment proceeds we realize when we exit our investments, the timing for such realization activity, our ability to

fundraise or to sell our various investment and insurance products and services, and the level of our capital markets activities,

as discussed in the “Risk Factors” section of our Annual Report.

The United States, during the three months ended June 30, 2026, continued to experience economic growth, despite

facing certain headwinds, including with inflation remaining above the U.S. Federal Reserve Board’s 2.0% target rate and with

costs-of-living continuing to pressure many U.S. households. During the three months ended June 30, 2026, the U.S. Federal

Reserve Board left the federal funds rate unchanged.

Real gross domestic product (“GDP”) growth in the Eurozone during the three months ended June 30, 2026 remained

subdued. In Europe during the three months ended June 30, 2026, the European Central Bank raised the deposit rate to 2.25%

as Eurozone core inflation remained above the European Central Bank’s 2.0% inflation target.

In Asia, Japan’s economy continued to recover moderately in the second quarter of 2026, with industrial production and

private investment increasing, although exports contracted. During the three months ended June 30, 2026, the Bank of Japan

raised its policy rate to 1.0%. In China, the economy grew during the three months ended June 30, 2026, but continued to face

headwinds, including weak domestic demand and ongoing contraction in the property sector.

Several key economic indicators in the United States and in other countries and regions in which we operate include:

•GDP. In the United States, real GDP expanded at an annualized rate of 1.5% for the three months ended June 30,

2026, compared to an annualized expansion of 2.1% for the three months ended March 31, 2026. Eurozone real GDP

expanded at an annualized rate of 1.6% for the three months ended June 30, 2026, compared to an annualized

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growth of 0.0% for the three months ended March 31, 2026. In Japan, real GDP is expected to have expanded by

0.2% for the three months ended June 30, 2026, down from a 1.8% annualized expansion for the three months

ended March 31, 2026. Real GDP in China expanded at a 3.6% annualized rate for the three months ended June 30,

2026, down from annualized growth of 5.2% reported for the three months ended March 31, 2026.

•Interest Rates. The target federal funds rate set by the U.S. Federal Reserve Board was 3.625% as of June 30, 2026,

unchanged from 3.625% as of March 31, 2026. The benchmark short-term interest rate set by the European Central

Bank was 2.25% as of June 30, 2026, up from 2.0% as of March 31, 2026. The benchmark short-term interest rate set

by the Bank of Japan was 1.00% as of June 30, 2026, up from 0.75% as of March 31, 2026. The benchmark interest

rate set by The People’s Bank of China was 3.0% as of June 30, 2026, unchanged from 3.0% as of March 31, 2026.

•Inflation. The U.S. core consumer price index rose 2.6% on a year-over-year basis as of June 30, 2026, the same

change as the 2.6% increase on a year-over-year basis as of March 31, 2026. Eurozone core inflation was estimated

to have increased 2.4% on a year-over-year basis as of June 30, 2026, up slightly from 2.3% on a year-over-year basis

as of March 31, 2026. In Japan, core inflation rose 1.1% on a year-over-year basis as of June 30, 2026, down from

1.4% on a year-over-year basis as of March 31, 2026. Core inflation in China was 1.0% on a year-over-year basis as of

•Unemployment. The U.S. unemployment rate was 4.2% as of June 30, 2026, down slightly from 4.3% as of March 31,

2026. Eurozone unemployment was 6.2% as of June 30, 2026, down from 6.3% as of March 31, 2026. The

unemployment rate in Japan was 2.5% as of June 30, 2026, down from 2.7% as of March 31, 2026. The

unemployment rate in China was 5.0% as of June 30, 2026, down from 5.3% as of March 31, 2026.

Several key financial market indicators in the United States and in other countries and regions in which we operate

include:

•Equity Markets. For the three months ended June 30, 2026, the S&P 500 was up 15.2%, the MSCI Europe Index was

up 11.3%, the MSCI Asia Pacific Index was up 21.5% and the MSCI World Index was up 13.9% in U.S. dollar terms, on

a total return basis including dividends. Equity market volatility as evidenced by the Chicago Board Options Exchange

Market Volatility Index (VIX), a measure of volatility, ended at 16.5 as of June 30, 2026, decreasing from 25.3 as of

•Credit Markets. During the three months ended June 30, 2026, U.S. investment grade corporate bond spreads (BofA

Merrill Lynch US Corporate Index) tightened by 14 basis points. The non-investment grade credit indices were up

during the three months ended June 30, 2026, with the S&P/LSTA Leveraged Loan Index up 1.9% and the BofAML HY

Master II Index up 2.5%. During the three months ended June 30, 2026, the 10-year government bond yields rose 15

basis points in the United States, fell 14 basis points in Germany, rose 33 basis points in Japan, fell 16 basis points in

the UK, and fell 9 basis points in China.

•Commodity Markets. During the three months ended June 30, 2026, the 3-year forward price of WTI crude oil

decreased approximately 2.1%, and the 3-year forward price of natural gas increased from approximately $3.06 per

MMBtu as of March 31, 2026 to $3.38 per MMBtu as of June 30, 2026. The Japan spot LNG import price increased to

approximately $17.63 per MMBtu as of June 30, 2026, from approximately $11.19 per MMBtu as of March 31, 2026.

•Foreign Exchange Rates. For the three months ended June 30, 2026, the euro fell 1.1%, the British pound rose 0.3%,

the Japanese yen fell 2.4%, and the Chinese renminbi rose 1.6%, respectively, relative to the U.S. dollar.

T4The United States and countries around the world have experienced elevated levels of market volatility and uncertainty

driven by, among other things, geopolitical and global trade concerns, including the imposition of tariffs and threats of tariffs

by the United States on certain of its trading partners since April 2025 and impacts from the recent conflicts in the Middle

East. This volatility and uncertainty add to the various risks and uncertainties in the business environment in which we

operate and may have various impacts, including on the valuations of certain of our investment vehicles' investments, the

pace and volume of our capital market transactions, deployments, and realizations, and our fundraising activities.

Other Trends, Uncertainties and Risks Related to Our Business

Please refer to the “Risk Factors” section of our Annual Report for important additional detail regarding risks,

uncertainties, and other conditions that could have a material favorable or unfavorable impact on our businesses, including

the impact of market and economic conditions on valuations of investments and the impact of competition we face. These

risks, uncertainties, and other conditions should be read in conjunction with this Business Environment section and the entire

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Risk Factor section of our Annual Report. In particular, see “Risk Factors—Risks Related to Our Business—Global, regional and

local events outside of our control, including geopolitical events and natural disasters, could materially and adversely impact

KKR”, “Risk Factors—Risks Related to Our Business—We operate in a highly competitive industry,” “Risk Factors—Risks

Related to Our Investment Activities—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”, and “Risk Factors—Risks Related to Our Insurance

Activities—We operate in a highly competitive industry.”

Basis of Accounting and Key Financial Measures under GAAP

We manage our business using certain financial measures and key operating metrics since we believe these metrics

measure the productivity of our operating activities. We prepare our consolidated financial statements in accordance with

accounting principles generally accepted in the United States of America (“GAAP”). See Note 2 “Summary of Significant

Accounting Policies” in our financial statements and “—Critical Accounting Policies and Estimates” contained in this section

below. Our key Segment and non-GAAP financial measures and operating metrics are discussed below.

Key Segment and Non-GAAP Performance Measures

The following key segment and non-GAAP performance measures are used by management in making operational and

resource deployment decisions as well as assessing the performance of KKR's business. They include certain financial

measures that are calculated and presented using methodologies other than in accordance with GAAP. These performance

measures as described below are presented prior to giving effect to the allocation of income (loss) between KKR & Co. Inc.

and holders of exchangeable securities and as such represent the entire KKR business in total. In addition, these performance

measures are presented without giving effect to the consolidation of certain investment funds and collateralized financing

entities (“CFEs”) that KKR manages.

We believe that providing these segment and non-GAAP performance measures on a supplemental basis to our GAAP

results is helpful to stockholders in assessing the overall performance of KKR's business. These non-GAAP measures should

not be considered as a substitute for financial measures calculated in accordance with GAAP. Reconciliations of these non-

GAAP measures to the most directly comparable financial measures calculated and presented in accordance with GAAP,

where applicable, are included under “—Segment Balance Sheet Measures—Reconciliations to GAAP Measures.”

Adjusted Net Income

Adjusted Net Income (“ANI”) is a performance measure of KKR’s earnings, which is derived from KKR’s reported segment

results. ANI is used to assess the performance of KKR’s business operations and measures the earnings potentially available

for distribution to its equity holders or reinvestment into its business. ANI is equal to Total Segment Earnings less Interest

Expense, Net and Other and Income Taxes on Adjusted Earnings. Interest Expense, Net and Other includes (i) interest expense

on debt obligations not attributable to any particular segment and (ii) cumulative dividend expense on the Series D

Mandatory Convertible Preferred Stock, net of interest income earned on cash and short-term investments. Income Taxes on

Adjusted Earnings represents the amount of income taxes that would be paid assuming that all adjusted earnings were

allocated to KKR & Co. Inc. and taxed at the same effective rate, which assumes that all securities exchangeable into shares of

common stock of KKR & Co. Inc. were exchanged. The economic assumptions and methodologies that impact Income taxes on

Adjusted Earnings are similar to those used in calculating the current income tax provision under U.S. GAAP. Equity based

compensation expense is excluded from ANI, because (i) KKR believes that the cost of equity grants to employees does not

contribute to the earnings potentially available for distributions to its equity holders or reinvestment into its business and (ii)

excluding this expense makes KKR’s reporting metric more comparable to the corresponding metric presented by other

publicly traded companies in KKR’s industry, which KKR believes enhances an investor’s ability to compare KKR’s performance

to these other companies. Income Taxes on Adjusted Earnings includes the benefit of tax deductions arising from equity-

based compensation, which reduces Income Taxes on Adjusted Earnings during the period. If tax deductions from equity-

based compensation were to be excluded from Income Taxes on Adjusted Earnings, KKR’s ANI would be lower and KKR’s

effective tax rate would appear to be higher, even though a lower amount of income taxes would have actually been paid or

payable during the period. KKR separately discloses the amount of tax deduction from equity-based compensation for the

period reported and the effect of its inclusion in ANI for the period. KKR makes these adjustments when calculating ANI in

order to more accurately reflect the net realized earnings that are expected to be or become available for distribution to

KKR’s equity holders or reinvestment into KKR’s business. However, ANI does not represent and is not used to calculate actual

dividends under KKR’s dividend policy, which is a fixed amount per period, and ANI should not be viewed as a measure of

KKR’s liquidity.

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Total Segment Earnings

Total Segment Earnings is a performance measure that KKR believes is useful to stockholders as it provides a

supplemental measure of our operating performance without taking into account items that KKR does not believe arise from

or relate directly to KKR's operations. Total Segment Earnings excludes: (i) equity-based compensation charges, (ii)

amortization of acquired intangibles, and (iii) transaction-related and non-operating items, if any. Transaction-related and

non-operating items primarily arise from corporate actions, which consist of: (i) impairments, (ii) transaction costs from

acquisitions, including any acquisition-related stock consideration, (iii) depreciation on real estate that KKR owns and

occupies, (iv) contingent liabilities, net of any recoveries, (v) certain integration, restructuring, and other non-operating

expenses, and (vi) other gains or charges that affect period-to-period comparability and are not reflective of KKR's ongoing

operational performance. Inter-segment transactions are not eliminated from segment results when management considers

those transactions in assessing the results of the respective segments. These transactions include (i) management fees earned

by our Asset Management segment as the investment adviser for Global Atlantic insurance companies, (ii) management and

performance fees earned by our Asset Management segment for acquiring and managing the companies included in our

Strategic Holdings segment, and (iii) interest income and expense based on lending arrangements where our Asset

Management segment borrows from our Insurance segment. All these inter-segment transactions are recorded by each

segment based on the applicable governing agreements. Additionally, due to the integrated nature of our segment operations

and as part of our strategic capital allocation decisions, inter-segment asset transfers have and may continue to occur. In

these cases in segment reporting, the assets are transferred at their fair value, and no realization is recognized at the time of

transfer. Earnings are recognized upon realization events and transactions with third parties. Total Segment Earnings

represents the total segment earnings of KKR’s Asset Management, Insurance and Strategic Holdings segments.

Asset Management Segment Earnings

Asset management segment earnings is the segment profitability measure used to make operating decisions and to

assess the performance of the Asset Management segment. This measure is presented before income taxes and is comprised

of: (i) Fee Related Earnings, (ii) Realized Performance Income, (iii) Realized Performance Income Compensation, (iv) Realized

Investment Income, and (v) Realized Investment Income Compensation. Asset Management Segment Earnings excludes the

impact of: (i) unrealized gains (losses) on investments, (ii) unrealized carried interest, and (iii) unrealized carried interest

compensation. 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. This measure is presented before income taxes and is comprised of: (i) Net

Investment Income, (ii) Net Cost of Insurance, and (iii) General, Administrative, and Other Expenses. Insurance Operating

Earnings excludes the impact of: (i) investment gains (losses) which include realized gains (losses) related to asset/liability

matching investment strategies and unrealized investment gains (losses) and (ii) non-operating changes in policy liabilities and

derivatives which includes (a) changes in the fair value of market risk benefits and other policy liabilities measured at fair

value and related benefit payments, (b) fees attributed to guaranteed benefits, (c) derivatives used to manage the risks

associated with policy liabilities, and (d) losses at contract issuance on payout annuities. Insurance Operating Earnings

includes (i) realized gains and losses not related to asset/liability matching investment strategies and (ii) the investment

management costs that are earned by our Asset Management segment as the investment adviser of the Global Atlantic

insurance companies.

Strategic Holdings Segment Earnings

Strategic Holdings Segment Earnings is the segment profitability measure used to make operating decisions and to assess

the performance of the Strategic Holdings segment. This measure is presented before income taxes and is comprised of:

Dividends, Net and Net Realized Investment Income. Strategic Holdings Segment Earnings excludes the impact of unrealized

gains (losses) on investments. Strategic Holdings Segment Earnings includes management fees and performance fee expenses

that are earned by the Asset Management segment.

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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. KKR

believes this measure is useful to stockholders as it provides additional insight into the profitability of our fee generating asset

management and capital markets businesses. FRE equals (i) Management Fees, including fees paid by the Insurance and

Strategic Holdings segments to the Asset Management segment and fees paid by Ivy vehicles and other reinsurance vehicles,

(ii) Transaction and Monitoring Fees, Net and (iii) Fee Related Performance Revenues, less (x) Fee Related Compensation, and

(y) Other Operating Expenses.

Fee Related Performance Revenues refers to the realized portion of performance fees from certain AUM that has an

indefinite term and for which there is no immediate requirement to return invested capital to investors upon the realization

of investments. Fee related performance revenues consists of performance fees (i) expected to be received from our

investment funds, vehicles and accounts on a recurring basis, and (ii) that are not dependent on a realization event involving

investments held by the investment fund, vehicle or account.

Fee Related Compensation refers to the compensation expense, excluding equity-based compensation, paid from (i)

Management Fees, (ii) Transaction and Monitoring Fees, Net, and (iii) Fee Related Performance Revenues.

Other Operating Expenses represents the sum of (i) occupancy and related charges and (ii) other operating expenses.

Strategic Holdings Operating Earnings

Strategic Holdings Operating Earnings is a performance measure used to assess the firm’s earnings from companies and

businesses reported through its Strategic Holdings segment. Strategic Holdings Operating Earnings currently consists of

earnings derived from dividends that the firm receives from businesses acquired through the firm’s participation in our core

private equity strategy. Strategic Holdings Operating Earnings currently equals dividends less management fees that are

earned by our Asset Management segment. This measure is used by management to assess the Strategic Holdings segment’s

generation of earnings from revenues that are measured and received on a more recurring basis than, and are not dependent

on, realizations from investment activities.

Total Operating Earnings

Total Operating Earnings is a performance measure that represents the sum of (i) FRE, (ii) Insurance Operating Earnings,

and (iii) Strategic Holdings Operating Earnings. KKR believes this measure is useful to stockholders as it provides additional

insight into the profitability of the most recurring forms of earnings from each of KKR’s segments as compared to investing

earnings.

Total Investing Earnings

Total Investing Earnings is a performance measure that represents the sum of (i) Net Realized Performance Income and

(ii) Net Realized Investment Income. KKR believes this measure is useful to stockholders as it provides additional insight into

the earnings of KKR’s segments from the realization of investments.

Total Asset Management Segment Revenues

Total Asset Management Segment Revenues is a performance measure that represents the realized revenues of the Asset

Management segment (which excludes unrealized carried interest and unrealized gains (losses) on investments) and is the

sum of (i) Management Fees, (ii) Transaction and Monitoring Fees, Net, (iii) Fee Related Performance Revenues, (iv) Realized

Performance Income, and (v) Realized Investment Income. Asset Management Segment Revenues excludes Realized

Investment Income earned based on the performance of businesses presented in the Strategic Holdings segment. KKR

believes that this performance measure is useful to stockholders as it provides additional insight into all forms of realized

revenues generated by our Asset Management segment.

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Key Operating and Capital Metrics

Assets Under Management

Assets under management represent the assets managed (including core private equity), advised or sponsored by KKR

from which KKR is entitled to receive management fees or performance income (currently or upon a future event), general

partner capital, and assets managed, advised or sponsored by our strategic BDC partnership and the hedge fund and other

managers in which KKR holds an ownership interest. We believe this measure is useful to stockholders as it provides

additional insight into the capital raising activities of KKR and its hedge fund and other managers and the overall activity in

their investment funds and other managed or sponsored capital. KKR calculates the amount of AUM as of any date as the sum

of: (i) the fair value of the investments of KKR's investment funds and certain co-investment vehicles; (ii) uncalled capital

commitments from these funds, including uncalled capital commitments from which KKR is currently not earning

management fees or performance income; (iii) the asset value of the Global Atlantic insurance companies; (iv) the par value of

outstanding CLOs; (v) KKR's pro rata portion of the AUM of hedge fund and other managers in which KKR holds an ownership

interest; (vi) all of the AUM of KKR's strategic BDC partnership; (vii) the acquisition cost of invested assets of certain non-US

real estate investment trusts and (viii) the value of other assets managed or sponsored by KKR. The pro rata portion of the

AUM of hedge fund and other managers is calculated based on KKR’s percentage ownership interest in such entities

multiplied by such entity’s respective AUM. KKR's definition of AUM (i) is not based on any definition of AUM that may be set

forth in the governing documents of the investment funds, vehicles, accounts or other entities whose capital is included in this

definition, (ii) includes assets for which KKR does not act as an investment adviser, and (iii) is not calculated pursuant to any

regulatory definitions.

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. Capital invested is used as a measure of investment activity at KKR during a given

period. We believe this measure is useful to stockholders as it provides a measure of capital deployment across KKR’s business

lines. Capital invested includes investments made using investment financing arrangements like credit facilities, as applicable.

Capital invested excludes (i) investments in certain leveraged credit strategies, (ii) capital invested by KKR’s Principal Activities

business line that is not a co-investment alongside KKR’s investment funds, and (iii) capital invested by KKR’s Principal

Activities business line that is not invested in connection with a syndication transaction by KKR’s Capital Markets business line.

Capital syndicated by KKR's Capital Markets business line to third parties other than KKR’s investment funds or Principal

Activities business line is not included in capital invested.

Fee Paying AUM

Fee paying AUM represents only the AUM from which KKR is entitled to receive management fees. We believe this

measure is useful to stockholders as it provides additional insight into the capital base upon which KKR earns management

fees. FPAUM is the sum of all of the individual fee bases that are used to calculate management fees and differs from AUM in

the following respects: (i) assets and commitments from which KKR is not entitled to receive a management fee are excluded

(e.g., assets and commitments with respect to which it is entitled to receive only performance income or is otherwise not

currently entitled to receive a management fee) and (ii) certain assets, primarily in its private equity funds, are reflected based

on capital commitments and invested capital as opposed to fair value because fees are not impacted by changes in the fair

value of underlying investments.

Uncalled Commitments

Uncalled commitments is the aggregate amount of unfunded capital commitments that KKR’s investment funds and

carry-paying co-investment vehicles (including core private equity) have received from fund investors to contribute capital to

fund future investments, and the amount of uncalled commitments is not reduced by capital invested using borrowings under

an investment fund’s subscription facility until capital is called from our fund investors. We believe this measure is useful to

stockholders as it provides additional insight into the amount of capital that is available to KKR’s investment funds and carry

paying co-investment vehicles to make future investments. 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.

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Consolidated Results of Operations (GAAP Basis - Unaudited)

The following is a discussion of our consolidated results of operations on a GAAP basis for the three months ended June

30, 2026 and 2025. You should read this discussion in conjunction with the financial statements and related notes included

elsewhere in this report. For a more detailed discussion of the factors that affected our segment results in these periods, see

“—Analysis of Segment Operating Results.” See “Risk Factors” in our Annual Report and “—Business Environment” for more

information about risks, uncertainties, and other market and economic conditions that may impact our business, financial

performance, operating results and valuations.

Effective beginning in the first quarter of 2026, KKR has modified the presentation of certain operating expenses in its

consolidated statements of operations. Amounts previously presented separately as “Insurance Expenses” and “General,

Administrative and Other” are now presented in a single line item, “Policy and Other Operating Expense”. Prior-period

amounts have been reclassified to conform to the current-period presentation. This change in presentation had no impact on

previously reported consolidated total expenses, income before taxes, and net income attributable to KKR.

Three Months Ended

($ in thousands)

Change

Revenues

Asset Management and Strategic Holdings

Fees and Other

Capital Allocation-Based Income (Loss)

Insurance

Net Premiums

Policy Fees

Net Investment Income

Net Investment-Related Gains (Losses)

Other Income

Total Revenues

Expenses

Asset Management and Strategic Holdings

Compensation and Benefits

Occupancy and Related Charges

General, Administrative and Other

Insurance

Net Policy Benefits and Claims (including market risk benefit (gain) loss of

$21,522 and $(10,867), respectively; remeasurement (gain) loss on policy

liabilities: $— and $—, respectively.)

Amortization of Policy Acquisition Costs

Interest Expense

Policy and Other Operating Expense

Total Expenses

Investment Income (Loss) - Asset Management and Strategic Holdings

Net Gains (Losses) from Investment Activities

Dividend Income

Interest Income

Interest Expense

Total Investment Income (Loss)

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Three Months Ended

($ in thousands)

Change

Income (Loss) Before Taxes

Income Tax Expense (Benefit)

Net Income (Loss)

Net Income (Loss) Attributable to Redeemable Noncontrolling Interests

Net Income (Loss) Attributable to Noncontrolling Interests

Net Income (Loss) Attributable to KKR & Co. Inc.

Series D Mandatory Convertible Preferred Stock Dividends

Net Income (Loss) Attributable to KKR & Co. Inc.

Common Stockholders

Consolidated Results of Operations (GAAP Basis - Unaudited) - Asset Management and

Strategic Holdings

Revenues

For the three months ended June 30, 2026 and 2025, revenues consisted of the following:

Three Months Ended

($ in thousands)

Change

Management Fees

Fee Credits

Transaction Fees

Monitoring Fees

Incentive Fees

Expense Reimbursements

Consulting Fees

Total Fees and Other

Carried Interest

General Partner Capital Interest

Total Capital Allocation-Based Income (Loss)

Total Revenues

Fees and Other

Total Fees and Other for the three months ended June 30, 2026, increased compared to the three months ended June 30,

2025, primarily as a result of an increase in management fees and to a lesser extent, an increase in transaction fees.

For a more detailed discussion of the factors that affected our transaction fees during the period, see “—Analysis of Asset

Management Segment Operating Results.”

T5The increase in management fees was primarily attributable to (i) management fees earned on new capital raised over

the past twelve months from our private equity and infrastructure K-Series vehicles, (ii) a higher level of management fees

earned from Global Infrastructure Investors V, primarily due to management fees earned on new capital raised in the current

quarter that was retroactive to the start of the fund’s investment period as well as new capital raised over the past twelve

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months, and (iii) management fees contributed by Arctos following the acquisition during the quarter. The increase was

partially offset by (i) a decrease in management fees earned from Americas Fund XII as a result of a step-down in the

management fee rate in the third quarter of 2025, and (ii) a decrease in management fees earned from Next Generation

Technology Growth Fund III as a result of entering its post-investment period in the first quarter of 2026 and now paying fees

based on invested capital rather than committed capital and at a lower fee rate.

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. Accordingly, net income (loss) attributable to KKR

would be unchanged if such investment funds and other investment vehicles were not consolidated. 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

and Real Assets business lines and (ii) a higher level of monitoring fees in our Private Equity business line. 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. Accordingly, net income (loss) attributable to KKR would be unchanged if such investment funds and

other investment vehicles were not consolidated. Transaction and monitoring fees earned from KKR portfolio companies are

not eliminated upon consolidation because those fees are earned from companies which are not consolidated. Furthermore,

transaction fees earned in our capital markets business are not shared with fund investors. Accordingly, certain transaction

fees are reflected in our revenues without a corresponding fee credit.

Capital Allocation-Based Income (Loss)

Capital Allocation-Based Income (Loss) for the three months ended June 30, 2026, 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, Americas Fund XII, and our private equity and infrastructure K-Series vehicles. Capital Allocation-

Based Income (Loss) for the three months ended June 30, 2025, was positive primarily due to the net appreciation of the

underlying investments in many of our unconsolidated carry-earning investment funds, most notably Asian Fund IV, Americas

Fund XII, and Asian Fund III.

KKR calculates the carried interest that would be due to KKR for each investment fund, pursuant to the fund agreements,

as if the fair value of the underlying investments were realized as of the reporting date, irrespective of whether such amounts

have been realized. 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. In each case, it is necessary to calculate the carried interest on cumulative results compared to the

carried interest recorded to date and to make the required positive or negative adjustments.

Investment Income (Loss)

Net Gains (Losses) from Investment Activities for the three months ended June 30, 2026

The net gains from investment activities for the three months ended June 30, 2026 were $797.3 million. See Note 4 “Net

Gains (Losses) from Investment Activities – Asset Management and Strategic Holdings” in our financial statements for detail of

realized and unrealized gains and losses from Investment Activities by asset class.

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.

For the three months ended June 30, 2026, net gains from investment activities were driven primarily by mark-to-market

gains relating to (i) USI, Inc. (financial services sector) and 1-800 Contacts (healthcare sector) held through our consolidated

core private equity vehicles and our investment in OHB SE (healthcare sector) held in our consolidated European Fund VI

(USD) fund and (ii) mark-to-market gains on certain investments held in consolidated CLOs. These mark-to-market gains were

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partially offset by (i) mark-to-market losses primarily relating to our investment in PetVet Care Centers, LLC (healthcare

sector) and Exact Holdings B.V. (technology sector) held through our consolidated core private equity vehicles, and (ii) mark-

to-market losses from certain foreign currency forward contracts.

Net investment gains (losses) for each asset class are influenced by the valuation methodology applied to each asset, as

well as factors specific to each investment. For the three months ended June 30, 2026, net investment gains (losses) were

primarily generated in the following asset classes:

•Private Equity (including core private equity), which primarily benefited from the overall operating performance of

certain portfolio companies and market multiples changes across various sectors. Changes in market multiples varied

across regions and sectors used in the market comparables methodology for the valuation of Level III investments;

and

•Real Assets, which primarily benefited from the overall positive operating performance of certain infrastructure and

energy assets. Changes in market multiples varied across regions and sectors used in the market comparables

methodology for the valuation of Level III investments.

See “Risk Factors” and “—Business Environment” in our Annual Report for more information about the factors that may

impact our business, financial performance, operating results, and valuation.

Net Gains (Losses) from Investment Activities for the three months ended June 30, 2025

The net gains from investment activities for the three months ended June 30, 2025 were $747.7 million. See Note 4 ”Net

Gains (Losses) from Investment Activities – Asset Management and Strategic Holdings” in our financial statements for detail of

realized and unrealized gains and losses from Investment Activities by asset class.

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.

For the three months ended June 30, 2025, net gains from investment activities were driven primarily by (i) mark-to-

market gains primarily relating to our investment in Exact Holdings B.V. (technology sector), 1-800 Contacts Inc. (healthcare

sector), and Arnott's Biscuit Limited (consumer products sector) held through our consolidated core private equity vehicles.

These mark-to-market gains were partially offset by (i) mark-to-market losses primarily relating to unrealized losses on certain

foreign exchange forward contracts, (ii) mark-to-market losses relating to PetVet Care Centers, LLC (health care sector) and

Crescent Energy Company (NYSE: CRGY) (“Crescent”).

The factors that affect each investment strategy vary depending on the nature of the asset class and the valuation

methodology employed. For the three months ended June 30, 2025, net investment gains (losses) were primarily generated in

the following asset classes:

•Private Equity (including core private equity), which were primarily impacted by overall positive operating

performance of certain portfolio companies. Changes in market multiples varied across regions / sectors used in the

market comparables methodology for the valuation of Level III investments; and

•Infrastructure, which primarily benefited from the overall positive operating performance of certain infrastructure

assets, partially offset by slightly higher cost of capital assumptions. Changes in market multiples varied across

regions and sectors used in the market comparables methodology for the valuation of Level III investments.

See “Risk Factors” and “—Business Environment” in our Annual Report for more information about the factors that may

impact our business, financial performance, operating results, and valuation.

Dividend Income

During the three months ended June 30, 2026, dividend income was primarily from (i) our investment in USI, Inc. held

through our consolidated core private equity vehicles and (ii) various investments in certain of our consolidated opportunistic

real estate equity funds. During the three months ended June 30, 2025, dividend income was primarily from (i) our

investment in April SA (financial services sector) held through our consolidated core private equity vehicles and (ii) certain of

our consolidated opportunistic real estate equity funds.

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Significant dividends from portfolio companies and consolidated funds are generally not recurring quarterly dividends,

and while they may occur in the future, their size and frequency are variable. For a discussion of other factors that affected

KKR's dividend income, see “—Analysis of Asset Management Segment Operating Results.”

Interest Income

The decrease in interest income during the three months ended June 30, 2026, compared to the three months ended

June 30, 2025, was primarily due to the impact of lower market interest rates, such as the Secured Overnight Financing Rate

(“SOFR”), during the current period on floating rate credit investments held in consolidated CLOs and at certain of our

consolidated private credit funds. The decrease was partially offset by the impact of closing CLOs that are consolidated

subsequent to June 30, 2025. For a discussion of other factors that affected KKR's interest income, see “—Analysis of Asset

Management Segment Operating Results.”

Interest Expense

The decrease in interest expense during the three months ended June 30, 2026, compared to the three months ended

June 30, 2025, was primarily due to the impact of lower market interest rates, such as SOFR, during the current period on

floating rate debt obligations held in consolidated CLOs and at certain consolidated funds and other investment vehicles. The

decrease was partially offset by (i) the impact of closing CLOs that were consolidated subsequent to June 30, 2025, and (ii) an

increase in the amount of borrowings outstanding. For a discussion of other factors that affected KKR's interest expense, see

“—Key Segment and Non-GAAP Performance Measures.”

Expenses

Compensation and Benefits Expense

The increase in compensation and benefits during the three months ended June 30, 2026, compared to the three months

ended June 30, 2025, was primarily due to (i) a higher level of equity-based compensation related to new equity grants in the

current period, (ii) a higher level of discretionary cash compensation, and (iii) a higher level of accrued carried interest

compensation driven by a higher level of carried interest income earned in the current period.

Occupancy and Related Charges

The increase in occupancy and related charges during the three months ended June 30, 2026, compared to the three

months ended June 30, 2025, was primarily due to new office leases commencing subsequent to June 30, 2025.

General, Administrative and Other

The increase in general, administrative and other expenses during the three months ended June 30, 2026, compared to

the three months ended June 30, 2025, was primarily due to (i) acquisition-related costs, (ii) a higher level of expenses

reimbursable from our investment funds, and (iii) a higher level of information technology, and corporate general and

administrative costs.

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Consolidated Results of Operations (GAAP Basis - Unaudited) - Insurance

Revenues

For the three months ended June 30, 2026 and 2025, revenues consisted of the following:

Three Months Ended

($ in thousands)

Change

Net Premiums

Policy Fees

Net Investment Income

Net Investment-Related Gains (Losses)

Other Income

Total Insurance Revenues

Net Premiums

Net premiums decreased for the three months ended June 30, 2026, as compared to the three months ended June 30,

2025, primarily due to a decrease in new premiums earned on direct pension risk transfer with life contingencies or morbidity

risk during the three months ended June 30, 2026, as compared to the three months ended June 30, 2025. Offsetting these

decreases in part were increases from preneed insurance products with life contingencies or morbidity risk. Initial premiums

from new business are generally offset by a comparable change in policy reserves reported within net policy benefits and

claims (as discussed below under “Expenses—Net policy benefits and claims”).

Net Investment Income

T6Net investment income increased for the three months ended June 30, 2026, as compared to the three months ended

June 30, 2025, primarily due to (i) increased average assets under management due to growth in assets in the institutional

and individual market channels as a result of the cumulative impact of new business volumes in the current and preceding

quarters, and (ii) higher average portfolio yields.

Net Investment-Related Gains (Losses)

The components of net investment-related gains (losses) were as follows:

Three Months Ended

($ in thousands)

Change

Equity Index Options

Interest Rate Contracts

Equity Futures Contracts

Foreign Exchange and Other Derivative Contracts

Funds Withheld Payable Embedded Derivatives

Funds Withheld Receivable Embedded Derivatives

Net Gains (Losses) on Derivative Instruments

Net Other Investment Gains (Losses)

Net Investment-Related Gains (Losses)

Net Gains (Losses) on Derivative Instruments

The decrease in the fair value of embedded derivatives on funds withheld at interest payable for the three months ended

June 30, 2026 was primarily driven by the changes in the fair value of the underlying investments in the funds withheld at

interest payable portfolio, which is primarily comprised of fixed maturity securities (designated as trading for accounting

purposes), mortgage and other loan receivables, and real asset investments. The underlying investments in the funds

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withheld at interest payable portfolio increased in value during the three months ended June 30, 2026, and decreased during

the three months ended June 30, 2025, resulting in a loss and a gain on the related embedded derivative, respectively. The

changes in fair value of the underlying portfolios in the respective periods are primarily due to market interest and credit

spread changes, and portfolio rotation activity.

The increase in the fair value of equity index options was primarily driven by the performance of the underlying indices.

Global Atlantic purchases equity index options to hedge the market risk of embedded derivatives in indexed universal life and

fixed-indexed annuity products (the change in which is accounted for in net policy benefits and claims). The majority of Global

Atlantic's equity index options are based on the S&P 500 Index, which increased during both the three months ended June 30,

2026, and 2025, and an increase in the notional amount of equity market contracts outstanding.

The increase in the fair value of interest rate contracts was primarily driven by changes in market interest rates during the

The increase in the fair value of foreign exchange and other derivative contracts was primarily driven by an increase due

to appreciation of the U.S. dollar against the euro and British pound during the three months ended June 30, 2026 and as

compared to depreciation during the three months ended June 30, 2025.

Net Other Investment Gains (Losses)

The components of net other investment gains (losses) were as follows:

Three Months Ended

($ in thousands)

Change

Realized Gains (Losses) on Investments Not Supporting Asset-Liability Matching

Strategies

$—

Realized Gains (Losses) on Available-for-Sale Fixed Maturity Securities

(Addition To) Release of Credit Loss Allowances

Impairment of Available-for-Sale Fixed Maturity Securities Due to Intent to Sell

—

Unrealized Gains (Losses) on Fixed Maturity Securities Classified as Trading

Unrealized Gains (Losses) on Other Investments Accounted Under a Fair-Value

Option and Equity Investments

Unrealized Gains (Losses) on Real Assets

Realized Gains (Losses) on Real Assets

Realized Gains (Losses) on Funds Withheld at Interest Payable Portfolio

Realized Gains (Losses) on Funds Withheld at Interest Receivable Portfolio

Foreign Exchange Gains (Losses) on Non-USD Denominated Investments

Other

Net Other Investment-Related Gains (Losses)

The increase in net other investment-related losses for the three months ended June 30, 2026, as compared to the three

months ended June 30, 2025, was primarily due to (i) an increase in foreign exchange losses on non-U.S. dollar denominated

investments primarily due to greater foreign exchange volatility from the appreciation of the U.S. dollar against the euro and

British pound during the three months ended June 30, 2026, (largely offset by the change in foreign exchange derivative

contracts noted above under “Net Gains (Losses) on Derivative Instruments”), (ii) an impairment to a fixed-maturity security

sold shortly after quarter end, (iii) an increase in credit loss allowances on mortgage and other loan receivables and available-

for-sale fixed maturity securities during the three months ended June 30, 2026, and (iv) an increase in unrealized losses on

investments accounted under a fair value option and certain investments in real assets, primarily due to unfavorable changes

in the related market segment multiples.

Offsetting these increases in net other investment-related losses was (i) a decrease in unrealized losses on fixed maturity

securities classified as trading (primarily due to a narrowing of corporate bond spreads during the period), and (ii) a decrease

in net realized losses on available-for-sale fixed maturity securities due to a decrease in portfolio repositioning trades during

the three months ended June 30, 2026, as compared to the three months ended June 30, 2025.

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Expenses

Net Policy Benefits and Claims

Net policy benefits and claims increased for the three months ended June 30, 2026, as compared to the three months

ended June 30, 2025, primarily due to the change in the value of embedded derivatives in Global Atlantic’s fixed indexed

annuity products as a result of an increase in equity market gains for the three months ended June 30, 2026, as compared to

the three months ended June 30, 2025 (as discussed above under “—Consolidated Results of Operations (GAAP Basis)—

Revenues—Net investment-related gains (losses)”). Global Atlantic purchases equity index options in order to hedge this risk,

the fair value changes of which are accounted for in gains (losses) on derivative instruments, and generally offset the change

in embedded derivative fair value reported in net policy benefits and claims), higher average funding costs due to higher

crediting rates and the ordinary-course run-off of older business originated in a low interest rate environment, and new

reserves established related to new preneed insurance with life or morbidity risks originated in the period.

Amortization of Policy Acquisition Costs

Amortization of policy acquisition costs increased for the three months ended June 30, 2026, as compared to the three

months ended June 30, 2025, primarily due to an increase in deferred acquisition costs amortization for the three months

ended June 30, 2026 associated with the cumulative impact of new business volumes generated from preneed insurance.

Interest Expense

Interest expense increased for the three months ended June 30, 2026, as compared to the three months ended June 30,

2025, primarily due to (i) a higher weighted average interest rate on subordinated debt outstanding and (ii) higher levels of

outstanding debt of consolidated special purpose vehicles.

Policy and Other Operating Expense

General, administrative and other decreased for the three months ended June 30, 2026, as compared to the three

months ended June 30, 2025, primarily due to a decrease in commission expense due to a decrease in assumed reinsurance

commission expenses, as compared to the three months ended June 30, 2025.

Other Consolidated Results of Operations (GAAP Basis - Unaudited)

Income Tax Expense (Benefit)

Income tax expense increased for the three months ended June 30, 2026, as compared to the three months ended June

30, 2025, primarily driven by a higher level of income before tax attributable to KKR common stockholders. For a discussion of

factors that impacted KKR's tax provision, see Note 18 “Income Taxes” in our financial statements included elsewhere in this

report.

Net Income (Loss) Attributable to Redeemable Noncontrolling Interests

Net income (loss) attributable to redeemable noncontrolling interests relates primarily to net income (loss) attributable

to third-party limited partner interests in consolidated investment funds and other investment vehicles when the

noncontrolling interests have redemption features that are not solely within the control of KKR. Net income (loss) attributable

to redeemable noncontrolling interests decreased for the three months ended June 30, 2026, as compared to the three

months ended June 30, 2025, primarily due to a lower level of net gains from investment activities at these consolidated

investment funds and other investment vehicles in the current period.

Net Income (Loss) Attributable to Noncontrolling Interests

Net income (loss) attributable to noncontrolling interests relates primarily to net income (loss) attributable to (i) non-

redeemable third-party limited partner interests in consolidated investment funds and other investment vehicles and (ii)

exchangeable securities representing ownership interests in KKR Group Partnership until they are exchanged for common

stock of KKR & Co. Inc. Net income (loss) attributable to noncontrolling interests decreased for the three months ended June

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30, 2026, as compared to the three months ended June 30, 2025, primarily due to a lower level of net gains from investment

activities at these consolidated investment funds and other investment vehicles in the current period.

Net Income (Loss) Attributable to KKR & Co. Inc.

Net income (loss) attributable to KKR & Co. Inc. increased for the three months ended June 30, 2026, as compared to the

three months ended June 30, 2025, primarily due to (i) a higher level of capital allocation-based income from our asset

management business and (ii) a higher level of asset management fee related income in the current period, which were

partially offset by (i) a lower level of investment-related net gains attributable to KKR common stockholders from our asset

management and strategic holdings operations and (ii) higher investments-related losses in our insurance business on held-

for-sale investments and increased credit loss allowances.

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Analysis of Condensed Consolidated Results of Operations (GAAP Basis - Unaudited)

The following is a discussion of our condensed consolidated results of operations on a GAAP basis for the six months

ended June 30, 2026 and 2025. You should read this discussion in conjunction with the financial statements and related notes

included elsewhere in this report. For a more detailed discussion of the factors that affected our segment results in these

periods, see “—Analysis of Segment Operating Results.” See “Risk Factors” in our Annual Report and “—Business

Environment” in this report for more information about risks, uncertainties, and other market and economic conditions that

may impact our business, financial performance, operating results, and valuations.

Effective beginning in the first quarter of 2026, KKR has modified the presentation of certain operating expenses in its

consolidated statements of operations. Amounts previously presented separately as “Insurance Expenses” and “General,

Administrative and Other” are now presented in a single line item, “Policy and Other Operating Expense”. Prior-period

amounts have been reclassified to conform to the current-period presentation. This change in presentation had no impact on

previously reported consolidated total expenses, income before taxes, and net income attributable to KKR.

Six Months Ended

($ in thousands)

Change

Revenues

Asset Management and Strategic Holdings

Fees and Other

Capital Allocation-Based Income (Loss)

Insurance

Net Premiums

Policy Fees

Net Investment Income

Net Investment-Related Gains (Losses)

Other Income

Total Revenues

Expenses

Asset Management and Strategic Holdings

Compensation and Benefits

Occupancy and Related Charges

General, Administrative and Other

Insurance

Net Policy Benefits and Claims (including market risk benefit (gain) loss of

liabilities: $— and $42,252, respectively.)

Amortization of Policy Acquisition Costs

Interest Expense

Policy and Other Operating Expense

Total Expenses

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Six Months Ended

($ in thousands)

Change

Investment Income (Loss) - Asset Management and Strategic Holdings

Net Gains (Losses) from Investment Activities

Dividend Income

Interest Income

Interest Expense

Total Investment Income (Loss)

Income (Loss) Before Taxes

Income Tax Expense (Benefit)

Net Income (Loss)

Net Income (Loss) Attributable to Redeemable Noncontrolling Interests

Net Income (Loss) Attributable to Noncontrolling Interests

Net Income (Loss) Attributable to KKR & Co. Inc.

Series D Mandatory Convertible Preferred Stock Dividends

Net Income (Loss) Attributable to KKR & Co. Inc.

Common Stockholders

Condensed Consolidated Results of Operations (GAAP Basis - Unaudited) - Asset

Management and Strategic Holdings

Revenues

For the six months ended June 30, 2026 and 2025, revenues consisted of the following:

Six Months Ended

($ in thousands)

Change

Management Fees

Fee Credits

Transaction Fees

Monitoring Fees

Incentive Fees

Expense Reimbursements

Consulting Fees

Total Fees and Other

Carried Interest

General Partner Capital Interest

Total Capital Allocation-Based Income (Loss)

Total Revenues

Fees and Other

Total Fees and Other for the six months ended June 30, 2026, increased compared to the six months ended June 30,

2025, primarily as a result of an increase in management fees and to a lesser extent incentive fees, which were partially offset

by an increase in fee credits.

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For a more detailed discussion of the factors that affected our transaction fees during the period, see “—Analysis of Asset

Management Segment Operating Results.”

The increase in management fees was primarily attributable to (i) management fees commencing at North America Fund

XIV in the second quarter of 2025, (ii) management fees contributed by Arctos following the acquisition in the second quarter

of 2026, (iii) management fees earned on new capital raised over the past twelve months by our private equity and

infrastructure K-Series vehicles, and (iv) a higher level of management fees earned from Global Infrastructure Investors V,

primarily due to management fees earned on new capital raised in the current year that was retroactive to the start of the

fund’s investment period as well as new capital raised over the past twelve months. The increase was partially offset by (i) a

decrease in management fees earned from Americas Fund XII due to a step-down in the management fee rate in the third

quarter of 2025 and (ii) a decrease in management fees earned from North America Fund XIII as a result of entering its post-

investment period in the second quarter of 2025 and now paying fees based on invested capital rather than committed capital

and at a lower fee rate.

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. Accordingly, net income (loss) attributable to KKR

would be unchanged if such investment funds and other investment vehicles were not consolidated. 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. 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. Accordingly, net income (loss) attributable to KKR would be unchanged if such investment funds and

other investment vehicles were not consolidated. Transaction and monitoring fees earned from KKR portfolio companies are

not eliminated upon consolidation because those fees are earned from companies which are not consolidated. Furthermore,

transaction fees earned in our capital markets business are not shared with fund investors. Accordingly, certain transaction

fees are reflected in our revenues without a corresponding fee credit.

Capital Allocation-Based Income (Loss)

Capital Allocation-Based Income (Loss) for the six months ended June 30, 2026, was positive primarily due to the net

appreciation of the underlying investments in many of our unconsolidated carry-earning investment vehicles, most notably

Global Impact Fund II, our private equity and infrastructure K-Series vehicles, and Americas Fund XII. Capital Allocation-Based

Income (Loss) for the six months ended June 30, 2025, was positive primarily due to the net appreciation of the underlying

investments in many of our unconsolidated carry-earning investment vehicles, most notably Asian Fund IV, North America

Fund XIII, and Global Infrastructure Fund IV.

KKR calculates the carried interest that would be due to KKR for each investment fund, pursuant to the fund agreements,

as if the fair value of the underlying investments were realized as of the reporting date, irrespective of whether such amounts

have been realized. 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. In each case, it is necessary to calculate the carried interest on cumulative results compared to the

carried interest recorded to date and to make the required positive or negative adjustments.

Net Gains (Losses) from Investment Activities

Net Gains (Losses) from Investment Activities for the six months ended June 30, 2026

The net gains from investment activities for the six months ended June 30, 2026 were $480.9 million. See Note 4 “Net

Gains (Losses) from Investment Activities – Asset Management and Strategic Holdings” in our financial statements for detail of

net gains and losses from Investment Activities by asset class.

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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.

For the six months ended June 30, 2026, net gains from investment activities were driven primarily by (i) mark-to-market

gains on our investments in OHB SE held in our consolidated European Fund VI (USD) fund and USI, Inc. and 1-800 Contacts,

held through our consolidated core private equity vehicles and (ii) mark-to-market gains on certain foreign exchange forward

contracts. These mark-to-market gains were partially offset by (i) mark-to-market losses on our investment in PetVet Care

Centers, LLC and Barracuda Networks, Inc. (technology sector), (ii) mark-to-market losses on certain investments held in

consolidated CLOs, and (iii) mark-to-market losses at certain consolidated alternative credit funds.

Net investment gains (losses) for each asset class are influenced by the valuation methodology applied to each asset, as

well as factors specific to each investment. For the six months ended June 30, 2026, net investment gains (losses) were

primarily generated in the following asset classes:

•Private Equity (including core private equity), which primarily benefited from the overall positive operating

performance of certain portfolio companies and market multiples changes across various sectors. Changes in market

multiples varied across regions and sectors used in the market comparables methodology for the valuation of Level III

investments; and

•Real Assets, which primarily benefited from the overall positive operating performance of certain infrastructure and

energy assets. Changes in market multiples varied across regions and sectors used in the market comparables

methodology for the valuation of Level III investments.

See “Risk Factors” in our Annual Report and “—Business Environment” for more information about the factors that may

impact our business, financial performance, operating results, and valuation.

Net Gains (Losses) from Investment Activities for the six months ended June 30, 2025

The net gains from investment activities for the six months ended June 30, 2025 were $1.8 billion. See Note 4 “Net Gains

(Losses) from Investment Activities – Asset Management and Strategic Holdings” in our financial statements for detail of

realized and unrealized gains and losses from Investment Activities by asset class.

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.

For the six months ended June 30, 2025, net gains from investment activities were driven primarily by mark-to-market

gains primarily relating to our investments in USI, Inc., Exact Holdings B.V. and 1-800 Contacts held through our consolidated

core private equity vehicles. These mark-to-market gains were partially offset by (i) mark-to-market losses primarily relating

to our investment in PetVet Care Centers, LLC and Crescent, (ii) unrealized losses on certain foreign exchange forward

contracts, and (iii) mark-to-market losses on certain investments held in consolidated CLOs.

The factors that affect each investment strategy vary depending on the nature of the asset class and the valuation

methodology employed. For the six months ended June 30, 2025, net investment gains (losses) were primarily generated in

the following asset classes:

•Private Equity (including core private equity), which were primarily impacted by overall positive operating

performance of certain portfolio companies. Changes in market multiples varied across regions / sectors used in the

market comparables methodology for the valuation of Level III investments; and

•Infrastructure, which primarily benefited from the overall positive operating performance of certain infrastructure

assets, partially offset by slightly higher cost of capital assumptions. Changes in market multiples varied across

regions / sectors used in the market comparables methodology for the valuation of Level III investments.

Dividend Income

During the six months ended June 30, 2026, dividend income was primarily from (i) our investments in USI, Inc. (financial

services sector) and Viridor Limited (infrastructure: energy and energy transition sector) both held through our consolidated

core private equity vehicles and (ii) various investments in certain of our consolidated opportunistic real estate equity funds.

During the six months ended June 30, 2025, dividend income was primarily from (i) our investments in April SA and in Atlantic

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Aviation FBO Inc. (infrastructure: transportation sector) both held through our consolidated core private equity vehicles and

(ii) various investments in certain of our consolidated opportunistic real estate equity funds.

Significant dividends from portfolio companies and consolidated funds are generally not recurring quarterly dividends,

and while they may occur in the future, their size and frequency are variable. For a discussion of other factors that affected

KKR's dividend income, see “—Analysis of Asset Management Segment Operating Results.”

Interest Income

The decrease in interest income during the six months ended June 30, 2026, compared to the six months ended June 30,

2025, was primarily due to (i) the impact of lower market interest rates, such as SOFR, during the current period on floating

rate credit investments held in consolidated CLOs and certain of our consolidated alternative credit funds and (ii) investment

monetizations at certain consolidated alternative credit funds subsequent to June 30, 2025. The decrease was partially offset

by the impact of closing CLOs that are consolidated subsequent to June 30, 2025. For a discussion of other factors that

affected KKR's interest income, see “—Analysis of Asset Management Segment Operating Results.”

Interest Expense

The increase in interest expense during the six months ended June 30, 2026, compared to the six months ended June 30,

2025, was primarily due to (i) the impact of closing CLOs that were consolidated subsequent to June 30, 2025, and (ii) an

increase in the amount of borrowings outstanding. The increase was largely offset by a decrease due to the impact of lower

market interest rates, such as SOFR, during the current period on floating rate debt obligations held in consolidated CLOs and

at certain consolidated funds and other investment vehicles. For a discussion of other factors that affected KKR's interest

expense, see “—Key Segment and Non-GAAP Performance Measures.”

Expenses

Compensation and Benefits

The decrease in compensation and benefits during the six months ended June 30, 2026, compared to the six months

ended June 30, 2025, was primarily due to a lower level of accrued carried interest compensation driven by a lower level of

carried interest income earned in the current period, partially offset by a higher level of equity-based compensation related to

new equity grants in the current period.

Occupancy and Related Charges

The increase in occupancy and related charges during the six months ended June 30, 2026, compared to the six months

ended June 30, 2025, was primarily due to new office leases commencing subsequent to June 30, 2025.

General, Administrative and Other

The increase in general, administrative and other expenses during the six months ended June 30, 2026, compared to the

six months ended June 30, 2025, was primarily due to (i) a higher level of expenses reimbursable from our investment funds,

(ii) acquisition-related costs, and (iii) a higher level of information technology and corporate general and administrative costs.

Condensed Consolidated Results of Operations (GAAP Basis - Unaudited) - Insurance

Revenues

For the six months ended June 30, 2026 and 2025, revenues consisted of the following:

Six Months Ended

($ in thousands)

Change

Net Premiums

Policy Fees

Net Investment Income

Net Investment-Related Gains (Losses)

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Other Income

Total Insurance Revenues

Net Premiums

Net premiums increased for the six months ended June 30, 2026, as compared to the six months ended June 30, 2025,

primarily due to an increase in new premiums earned on assumed flow payout annuities and direct pension risk transfer in

the institutional market channel, and preneed insurance products in the individual market channel (all with either life

contingencies or morbidity risk.) Initial premiums from new business are generally offset by a comparable change in policy

reserves reported within net policy benefits and claims (as discussed below under “Expenses—Net policy benefits and

claims”).

Net Investment Income

Net investment income increased for the six months ended June 30, 2026, as compared to the six months ended June 30,

2025, primarily due to (i) increased average assets under management due to growth in assets in the institutional and

individual market channels as a result of the cumulative impact of new business volumes in the preceding twelve months, and

(ii) an increase in average portfolio yields due to portfolio rotation into higher yielding fixed maturity debt securities, and

investment in alternative asset classes, such as real assets.

Net Investment-Related Gains (Losses)

The components of net investment-related gains (losses) were as follows:

Six Months Ended

($ in thousands)

Change

Equity Index Options

Interest Rate Contracts

Equity Futures Contracts

Foreign Exchange and Other Derivative Contracts

Funds Withheld Payable Embedded Derivatives

Funds Withheld Receivable Embedded Derivatives

Net Gains (Losses) on Derivative Instruments

Net Other Investment Gains (Losses)

Net Investment-Related Gains (Losses)

Net Gains (Losses) on Derivative Instruments

The increase in the fair value of embedded derivatives on funds withheld at interest payable for the six months ended

June 30, 2026 was primarily driven by the changes in the fair value of the underlying investments in the funds withheld at

interest payable portfolio, which is primarily comprised of fixed maturity securities (designated as trading for accounting

purposes), mortgage and other loan receivables, and real asset investments. The underlying investments in the funds

withheld at interest payable portfolio decreased in value during the six months ended June 30, 2026 and increased during the

six months ended June 30, 2025, resulting in a gain and a loss on the related embedded derivative, respectively. The changes

in fair value of the underlying portfolios are primarily due to market interest and credit spread changes – during the six

months ended June 30, 2026, market interest rates generally increased (for example, yields on 10 and 30-year U.S. Treasury

securities generally increased during the period, ending higher in absolute terms). In contrast, during the six months ended

June 30, 2025, market interest rates generally decreased (for example, yields on 10 and 30-year U.S. Treasury securities

generally declined during the period, ending lower in absolute terms). Credit spreads generally widened during both periods.

The decrease in the fair value of interest rate contracts was primarily driven by an increase in market interest rates during

the six months ended June 30, 2026, as compared to a decrease in market interest rates during the six months ended June 30,

2025, resulting in a loss on interest rate contracts for the six months ended June 30, 2026, as compared to a gain on interest

rate contracts for the six months ended June 30, 2025.

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The increase in the fair value of foreign exchange and other derivative contracts was primarily driven by (i) an

appreciation of the U.S. dollar against the euro and British pound during the six months ended June 30, 2026, as compared to

a depreciation of the U.S. dollar against the euro and British pound during the six months ended June 30, 2025, and (ii) an

increase in the notional amount of foreign exchange derivative contracts outstanding.

The increase in the fair value of equity index options was primarily driven by the performance of the underlying indices.

Global Atlantic purchases equity index options to hedge the market risk of embedded derivatives in indexed universal life and

fixed-indexed annuity products (the change in which is accounted for in net policy benefits and claims). The majority of Global

Atlantic's equity index options are based on the S&P 500 Index, which increased during both the six months ended June 30,

2026 and 2025. In addition, the average notional amount of equity market contracts outstanding as of June 30, 2026,

Net Other Investment Gains (Losses)

The components of net other investment gains (losses) were as follows:

Six Months Ended

($ in thousands)

Change

Realized Gains (Losses) on Investments Not Supporting Asset-Liability Matching

Strategies

$—

Realized Gains (Losses) on Available-for-Sale Fixed Maturity Securities

(Addition To) Release of Credit Loss Allowances

Impairment of Available-for-Sale Fixed Maturity Securities Due to Intent to Sell

—

Unrealized Gains (Losses) on Fixed Maturity Securities Classified as Trading

Unrealized Gains (Losses) on Other Investments Accounted Under a Fair-Value

Option and Equity Investments

Unrealized Gains (Losses) on Real Assets

Realized Gains (Losses) on Real Assets

Realized Gains (Losses) on Funds Withheld at Interest Payable Portfolio

Realized Gains (Losses) on Funds Withheld at Interest Receivable Portfolio

Foreign Exchange Gains (Losses) on Non-USD Denominated Investments

Other

Net Other Investment-Related Gains (Losses)

The decrease in net other investment-related losses for the six months ended June 30, 2026, as compared to the six

months ended June 30, 2025, was primarily due to a decrease in realized losses on available-for-sale fixed maturity securities

due to a decrease in portfolio repositioning trades during the current period. Offsetting this decrease was (i) an increase in

unrealized losses on fixed maturity securities classified as trading due to an increase in market interest rates during the

period, (ii) an increase in foreign exchange losses on non-USD denominated investments due to the appreciation of the U.S.

dollar against the euro and British pound during six months ended June 30, 2026, and an increase in the notional amount of

non-USD denominated investments (largely offset by the change in foreign exchange derivative contracts noted above under

“Net Gains (Losses) on Derivative Instruments”), (iii) an increase in credit loss allowances on mortgage and other loan

receivables and available-for-sale fixed maturity securities during the six months ended June 30, 2026, (iv) an impairment to a

fixed-maturity security sold shortly after quarter end, and (v) an increase in unrealized losses on investments accounted under

a fair value option and real assets, primarily due to unfavorable changes in the related market segment multiples.

Expenses

Net Policy Benefits and Claims

Net policy benefits and claims increased for the six months ended June 30, 2026, as compared to the six months ended

June 30, 2025, primarily due to (i) the change in the value of embedded derivatives in Global Atlantic’s fixed indexed annuity

products (as discussed above under “—Consolidated Results of Operations (GAAP Basis)—Revenues—Net investment-related

gains (losses)”), Global Atlantic purchases equity index options in order to hedge this risk, the fair value changes of which are

accounted for in gains (losses) on derivative instruments, and generally offset the change in embedded derivative fair value

reported in net policy benefits and claims), (ii) an increase in new business flows from assumed flow payout annuities, direct

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pension risk transfer, and preneed insurance products (all with either life contingencies or morbidity risk) in the six months

ended June 30, 2026, as compared to the six months ended June 30, 2025, (iii) a decrease in market risk benefits gains for the

six months ended June 30, 2026, as compared to the six months ended June 30, 2025, which was largely driven by an increase

in long-term market interest rates (such as yields on 10- and 30-year U.S. Treasury securities) and narrower credit spreads for

the six months ended June 30, 2026, as compared to a decrease in long-term market interest rates and wider credit spreads

during the six months ended June 30, 2025, and (iv) higher average funding costs due to higher crediting rates and the

ordinary-course run-off of older business originated in a low interest rate environment.

The above increases in net policy benefits and claims were offset in part by the non-recurrence of unfavorable impacts

related to the assumption review for the six months ended June 30, 2025. 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. 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.” For the six months ended June 30, 2025, there was a net

unfavorable assumption review impact of $42.3 million on income before taxes, which was primarily due to a change in the

activation assumption related to certain benefit riders on fixed-indexed annuities.

Amortization of Policy Acquisition Costs

Amortization of policy acquisition costs increased for the six months ended June 30, 2026, as compared to the six months

ended June 30, 2025, primarily due to (i) an increase in amortization of cost-of-reinsurance assets, and (ii) an increase in

amortization of deferred acquisition costs primarily driven by acquisition costs deferred and amortized due to growth in

annuity and preneed insurance new business volumes.

Interest Expense

Interest expense increased for the six months ended June 30, 2026, as compared to the six months ended June 30, 2025,

primarily due to (i) a higher weighted average interest rate on subordinated debt outstanding and (ii) higher levels of

outstanding debt of consolidated special purpose vehicles.

Policy and Other Operating Expense

Policy and other operating expense decreased for the six months ended June 30, 2026, as compared to the six months

ended June 30, 2025, primarily due to a decrease in commission expense due to a decrease in individual channel new business

volumes, primarily in fixed-rate annuities, as compared against the six months ended June 30, 2025. Offsetting these

decreases were (i) an increase in compensation expense, (ii) an increase in amortization of certain insurance distribution

intangibles, and (iii) an increase in administrative and professional fees.

Other Condensed Consolidated Results of Operations (GAAP Basis - Unaudited)

Income Tax Expense (Benefit)

Income tax expense increased for the six months ended June 30, 2026, as compared to the six months ended June 30,

2025, primarily driven by the higher level of income before taxes attributable to KKR common stockholders. For a discussion

of factors that impacted KKR's tax provision, see Note 18 “Income Taxes” in our financial statements included elsewhere in

this report.

Net Income (Loss) Attributable to Redeemable Noncontrolling Interests

Net income (loss) attributable to redeemable noncontrolling interests relates primarily to net income (loss) attributable

to third-party limited partner interests in consolidated investment funds and other investment vehicles when the

noncontrolling interests have redemption features that are not solely within the control of KKR. Net income (loss) attributable

to redeemable noncontrolling interests decreased for the six months ended June 30, 2026, as compared to the six months

ended June 30, 2025, primarily due to a lower level of net gains from investment activities at these consolidated investment

funds and other investment vehicles in the current period.

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Net Income (Loss) Attributable to Noncontrolling Interests

Net income (loss) attributable to noncontrolling interests relates primarily to net income (loss) attributable to (i) non-

redeemable third-party limited partner interests in consolidated investment funds and other investment vehicles and (ii)

exchangeable securities representing ownership interests in KKR Group Partnership until they are exchanged for common

stock of KKR & Co. Inc. Net income (loss) attributable to noncontrolling interests decreased for the six months ended June 30,

2026, as compared to the six months ended June 30, 2025, primarily due to a lower level of net gains from investment

activities at these consolidated investment funds and other investment vehicles in the current period.

Net Income (Loss) Attributable to KKR & Co. Inc.

Net income (loss) attributable to KKR & Co. Inc. for the six months ended June 30, 2026 increased compared to the six

months ended June 30, 2025, primarily due to (i) a higher level of asset management fee related income, and (ii) a lower level

of insurance realized investment losses on available-for-sale fixed maturity securities in the current period, which were

partially offset by (i) a lower level of capital allocation-based income from our asset management business and (ii) a lower

level of investment-related net gains attributable to KKR common stockholders from our asset management and strategic

holdings operations.

Condensed Consolidated Statements of Financial Condition (GAAP Basis - Unaudited)

Please see our consolidated statements of financial condition on a GAAP basis as of June 30, 2026 and December 31,

2025 in our financial statements included in this report.

KKR & Co. Inc. Stockholders’ Equity - Common Stock increased from December 31, 2025 primarily due to net income

attributable to KKR & Co. Inc. common stockholders and the acquisition of Arctos in the current period, which were partially

offset by (i) unrealized losses on available-for-sale securities from Global Atlantic that are recorded in other comprehensive

income, (ii) common stock repurchases and (iii) dividends to common and preferred stockholders.

Condensed Consolidated Statements of Cash Flows (GAAP Basis - Unaudited)

The following is a discussion of our consolidated cash flows for the six months ended June 30, 2026 and 2025. You should

read this discussion in conjunction with the financial statements and related notes included elsewhere in this report.

The consolidated statements of cash flows include the cash flows of our consolidated entities, which include certain

consolidated investment funds, CLOs and certain variable interest entities formed by Global Atlantic notwithstanding the fact

that we may hold only a minority economic interest in those investment funds and CFEs. The assets of our consolidated

investment funds and CFEs, on a gross basis, can be substantially larger than the assets of our business and, accordingly, could

have a substantial effect on the cash flows reflected in our consolidated statements of cash flows. The primary cash flow

activities of our consolidated funds and CFEs involve: (i) capital contributions from fund investors; (ii) using the capital of fund

investors to make investments; (iii) financing certain investments with indebtedness; (iv) generating cash flows through the

realization of investments; and (v) distributing cash flows from the realization of investments to fund investors. Because our

consolidated investment funds are treated as investment companies for accounting purposes, certain of these cash flow

amounts are included in our cash flows from operations.

Net Cash Provided (Used) by Operating Activities

Our net cash provided (used) by operating activities was $5.0 billion and $3.0 billion during the six months ended June 30,

2026 and 2025, 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 $1.1 billion and $(1.4)

billion during the six months ended June 30, 2026 and 2025, respectively, (ii) net realized gains (losses) on investments (asset

management and strategic holdings) of $752.1 million and $290.8 million during the six months ended June 30, 2026 and

2025, respectively, (iii) change in unrealized gains (losses) on investments (asset management and strategic holdings) of

$(271.2) million and $1.5 billion during the six months ended June 30, 2026 and 2025, respectively, (iv) capital allocation-

based income (loss) (asset management and strategic holdings) of $1.9 billion and $2.1 billion during the six months ended

June 30, 2026 and 2025, respectively, (v) net investment and policy liability-related gains (losses) (insurance) of $(1.0) billion

and $(2.3) billion during the six months ended June 30, 2026 and 2025, respectively, and (vi) interest credited to policyholder

account balances (net of policy fees) (insurance) of $2.9 billion and $2.4 billion during the six months ended June 30, 2026 and

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2025, 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 $3.0 billion and $(5.0) billion during the six months ended June

30, 2026 and 2025, respectively. Our investing activities primarily included: (i) investments purchased (insurance), net of

proceeds from investments (insurance), of $3.2 billion and $(5.0) billion during the six months ended June 30, 2026 and 2025,

respectively, (ii) acquisitions, net of cash acquired, of $(176.6) million during the six months ended June 30, 2026, and (iii) the

purchase of fixed assets of $(76.0) million and $(88.2) million during the six months ended June 30, 2026 and 2025,

respectively.

Net Cash Provided (Used) by Financing Activities

Our net cash provided (used) by financing activities was $(3.9) billion and $4.6 billion during the six months ended June

30, 2026 and 2025, respectively. Our financing activities primarily included: (i) contributions from, net of distributions to, our

noncontrolling and redeemable noncontrolling interests of $(0.8) billion and $313.7 million during the six months ended June

30, 2026 and 2025, respectively, (ii) proceeds received, net of repayment of debt obligations, of $1.3 billion and $53.4 million

during the six months ended June 30, 2026 and 2025, respectively, (iii) proceeds from the issuance of Series D Mandatory

Convertible Preferred Stock (net of issuance cost) of $2.5 billion during the six months ended June 30, 2025, (iv) additions to,

net of withdrawals from, contractholder deposit funds (insurance) of $(3.4) billion and $2.1 billion during the six months

ended June 30, 2026 and 2025, respectively, (v) common stock dividends of $(339.9) million and $(320.2) million during the

six months ended June 30, 2026 and 2025, respectively, and (vi) Series D Mandatory Convertible Preferred Stock Dividends of

$(80.9) million and $(37.7) million during the six months ended June 30, 2026 and 2025, respectively.

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Analysis of Segment Operating Results

The following is a discussion of the results of our business on a segment basis for the three months ended June 30, 2026

and 2025. You should read this discussion in conjunction with the information included under “—Analysis of Non-GAAP

Performance Measures” and the financial statements and related notes included elsewhere in this report. See “Risk Factors”

in our Annual Report and “—Business Environment” in this report for more information about factors that may impact our

business, financial performance, operating results, and valuations.

Analysis of Asset Management Segment Operating Results

The following tables set forth information regarding KKR's asset management segment operating results for the three

Effective beginning in the second quarter of 2026, performance revenues from K-Series Private Equity vehicles of

approximately $160 million were reported in fee related performance revenues in fee related earnings. For the three months

ended June 30, 2025, performance revenues from K-Series Private Equity vehicles of approximately $80 million were reported

in net realized performance income. This change in classification reflects how management currently manages the business

and aligns KKR's presentation with the prevailing classification disclosed by other publicly listed alternative asset managers,

which we believe should enhance comparability for investors. KKR has not recast prior-period amounts, as the impact of the

reclassification is not material to previously reported results. Additionally, the change in classification had no impact on total

segment revenues, total segment earnings, consolidated GAAP net income, or Adjusted Net Income.

Three Months Ended

($ in thousands)

Change

Management Fees

Transaction and Monitoring Fees, Net

Fee Related Performance Revenues

Fee Related Compensation

Other Operating Expenses

Fee Related Earnings

Realized Performance Income

Realized Performance Income Compensation

Realized Investment Income

Realized Investment Income Compensation

Asset Management Segment Earnings

Management Fees

The following table presents management fees by business line:

Three Months Ended

($ in thousands)

Change

Management Fees

Private Equity

Real Assets

Credit and Liquid Strategies

Total Management Fees

The increase in Private Equity management fees was primarily attributable to (i) management fees contributed by Arctos

following the acquisition during the quarter, (ii) a higher level of management fees from North America Fund XIV on new

capital raised subsequent to June 30, 2025, and (iii) management fees earned on new capital raised over the past twelve

months at our private equity K-Series vehicles, net of certain revenue sharing arrangements. The increase was partially offset

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by a decrease in management fees earned from Americas Fund XII due to a step-down in the management fee rate in the

third quarter of 2025. During the three months ended June 30, 2026, approximately $41 million of management fees were

earned on new capital raised that were retroactive to the start of the relevant fund's investment period.

The increase in Real Assets management fees was primarily attributable to (i) a higher level of management fees earned

from Global Infrastructure Investors V, primarily due to management fees earned on new capital raised in the current quarter

that was retroactive to the start of the fund’s investment period as well as new capital raised over the past twelve months, (ii)

management fees earned on new capital raised over the past twelve months from our infrastructure K-Series vehicles, net of

certain revenue sharing arrangements, and (iii) management fees commencing at Asia Infrastructure III in the fourth quarter

of 2025. During the three months ended June 30, 2026, approximately $52 million of management fees were earned on new

capital raised that is retroactive to the start of the relevant fund's investment period.

The increase in Credit and Liquid Strategies management fees was primarily attributable to (i) a higher level of

management fees earned from CLOs from new issuances in the U.S. and Europe over the past twelve months, (ii) an increase

in capital invested in certain alternative credit strategy accounts, which resulted in an increase in its fee base and (iii) a higher

level of management fees earned from Global Atlantic primarily due to the growth in assets from inflows.

Transaction and Monitoring Fees, Net

The following table presents transaction and monitoring fees, net by business line:

Three Months Ended

($ in thousands)

Change

Transaction and Monitoring Fees, Net

Private Equity

Real Assets

Credit and Liquid Strategies

Capital Markets

Total Transaction and Monitoring Fees, Net

Our Private Equity, Real Assets, and Credit and Liquid Strategies business lines earn transaction and monitoring fees from

portfolio companies, and under the terms of the management agreements with certain of our investment funds, we are

required to share all or a portion of such fees with our fund investors. For most of our investment funds, transaction and

monitoring fees are credited against fund management fees up to 100% of the amount of the transaction and monitoring fees

attributable to that investment fund, which results in a decrease of our transaction and monitoring fees. Our Capital Markets

business line earns transaction fees, which are generally not shared with fund investors.

The decrease in transaction and monitoring fees, net is primarily due to a lower level of transaction fees earned in our

Capital Markets business line. The decrease in Capital Markets business line transaction fees was primarily due to a decrease

in the size of capital markets transactions for the three months ended June 30, 2026, compared to the three months ended

June 30, 2025. Overall, we completed 112 capital markets transactions for the three months ended June 30, 2026, of which 15

represented equity offerings and 97 represented debt offerings, as compared to 93 capital markets transactions for the three

months ended June 30, 2025, of which 10 represented equity offerings and 83 represented debt offerings. We earn fees in

connection with underwriting, syndication, and other capital markets services. While each of the capital markets transactions

that we undertake in this business line is separately negotiated, our fee rates are generally higher with respect to

underwriting or syndicating equity offerings than with respect to debt offerings, and the amount of fees that we earn for

similar transactions generally correlates with overall transaction sizes.

Our capital markets fees are generated in connection with activity involving our private equity, real assets, and credit

business lines as well as from third-party companies. For the three months ended June 30, 2026, approximately 12% of our

transaction fees in our Capital Markets business line were earned from unaffiliated third parties as compared to 20% for the

three months ended June 30, 2025. Our transaction fees are comprised of fees earned in North America, Europe, and the

Asia-Pacific region. For the three months ended June 30, 2026, approximately 31% of our transaction fees were generated

outside of North America as compared to approximately 69% for the three months ended June 30, 2025. Our Capital Markets

business line is dependent on the overall capital markets environment, which is influenced by equity prices, credit spreads,

and volatility. Our Capital Markets business line does not generate monitoring fees.

Table of Contents

See “—Analysis of Asset Management Segment Operating Results—Capital Invested” for more information about capital

invested by business line. See “Risk Factors” in this Annual Report and “—Business Environment” for more information about

the factors that may impact our business, financial performance, operating results, and valuations.

Fee Related Performance Revenues

The following table presents fee related performance revenues by business line:

Three Months Ended

($ in thousands)

Change

Fee Related Performance Revenues

Private Equity

$—

Real Assets

Credit and Liquid Strategies

Total Fee Related Performance Revenues

Fee related performance revenues represent performance fees that are (i) expected to be received from our investment

funds, investment vehicles, and accounts on a more recurring basis and (ii) not dependent on a realization event involving

investments held by the investment fund, vehicle, or account.

The increase in fee related performance revenues for the three months ended June 30, 2026 compared to the prior

period was primarily due to (i) performance revenues from K-Series Private Equity vehicles being reported in fee related

performance revenues, beginning in the quarter ended June 30, 2026, and (ii) a higher level of performance revenues earned

from one of our K-Series Infrastructure vehicles in our Real Assets business line. The increase was partially offset by no

performance revenues earned from FSK in our Credit and Liquid Strategies business line in the current period. Beginning with

the second quarter of 2026, KKR has agreed to waive 100% of its portion of the FSK incentive fee for the next four consecutive

quarters.

Fee Related Compensation

The increase in fee related compensation for the three months ended June 30, 2026 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.

Other Operating Expenses

The increase in other operating expenses for the three months ended June 30, 2026 compared to the prior period was

primarily due to a higher level of occupancy, information technology, and corporate general and administrative costs.

Fee Related Earnings

The increase in fee related earnings for the three months ended June 30, 2026 compared to the prior period was

primarily due to (i) a higher level of management fees across our Private Equity, Real Assets, and Credit and Liquid Strategies

business lines and (ii) a higher level of fee related performance revenues earned in our Private Equity and Real Assets business

lines, partially offset by (i) a lower level of transaction fees earned in our Capital Markets business line and (ii) a higher level of

fee related compensation and other operating expenses, as described above.

Table of Contents

Realized Performance Income

Realized performance income includes (i) realized carried interest from our carry earning funds and (ii) incentive fees not

included in Fee Related Performance Revenues.

The following table presents realized performance income by business line:

Three Months Ended

($ in thousands)

Change

Realized Performance Income

Private Equity

Real Assets

—

Credit and Liquid Strategies

Total Realized Performance Income

Three Months Ended

($ in thousands)

Change

Private Equity

Americas Fund XII

Asian Fund III

—

Next Generation Technology Growth Fund II

—

European Fund V

—

Private Equity K-Series

—

Asian Fund IV

—

Next Generation Technology Growth Fund

—

Other

Total Realized Performance Income

Realized performance income in our Private Equity business line for the three months ended June 30, 2026 consisted

primarily of realized proceeds from the sale of our investment in OneStream Software, LLC held by Americas Fund XII and