KKR is undervalued, according to Wolfteam Ltd.'s projections and estimates.
A large reason for the undervaluation of KKR is the huge sum of insurance fees it gets from its annuities business. These insurance fees are plowed into the private equity, real estate, credit and liquid strategies business lines of KKR. Since the insurance fees KKR gets from its insurance division are long-term in nature KKR has the ability to invest the insurance fees in its mainly private equity, real estate, credit and liquid strategies business lines of KKR for the long-term.
Assets Under Management
• AUM of $624 billion, up 18% year-over-year, with $24 billion of organic new capital raised in the quarter and $118 billion in the
LTM
• Fee Paying AUM of $506 billion, up 19% year-over-year, with $25 billion of organic new capital raised in the quarter and $122
billion in the LTM
• Perpetual Capital of $259 billion, up 27% year-over-year driven primarily by the organic growth of Global Atlantic. Perpetual
capital represents 42% of AUM and 50% of FPAUM
The long-term insurance fees of KKR are 259 billion USD or 50 % of the Fee Paying Assets Under Management.
Wall Street equity research analysts, when they model and forecast KKR and other private equity giants' businesses, they put 0, zero as the return on investment of these private equity giants. That is, Wall Street analysts think KKR, Blackstone, Carlyle, Apollo can not earn a return on their mainly private equity investments. History shows, that such an assumption is difficult to substantiate.
In view of the aforementioned, KKR holds tremendous unlocked value. KKR's intrinsic value is 180 billion USD, according to Wolfteam Ltd.'s calculations and estimates.
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