KKR And Apollo Comparison

KKR & Co, Inc or KKR and Apollo Global Management or Apollo are arguably the second and third largest alternative investment management firms active in private markets globally, according to Wolfteam Ltd.'s estimates.

KKR's asset management metrics are the following:

Assets Under Management (“AUM”) of $638 billion, up 15% year-over-year
• Fee Paying Assets Under Management (“FPAUM”) of $512 billion, up 15% year-over-year
• New Capital Raised of $27 billion in the quarter and $114 billion for the year
• Capital Invested of $23 billion in the quarter and $84 billion for the year

Private Equity AUM: Increased 3% quarter-over-quarter and increased 11% year-over-year to $195 billion with organic new capital raised of $10 billion in the quarter and $18 billion for the year

Real Estate AUM: Increased 2% quarter-over-quarter and 27% year-over-year to $166 billion with organic new capital raised of $5 billion in the quarter and $40 billion for the year

Private Credit's AUM comprised of: $130 billion of leveraged credit, $68 billion of asset-based finance, $41 billion of direct lending, $8 billion
of strategic investments and $30 billion of liquid strategies 

Additional Capital Detail
• Dry Powder: Uncalled commitments of $110 billion remain diversified across the firm’s investment strategies
• AUM Not Yet Paying Fees: At year end, there was $57 billion of committed capital with a weighted average management fee rate
of approximately 95 bps that becomes payable when the capital is either invested or enters its investment period
• Carry Eligible AUM: Of the $312 billion of carried interest eligible AUM, $217 billion is above cost and accruing carry
• Performance Fee Eligible AUM: $378 billion, up 14% year-over-year

Apollo manages 751 billion USDs in assets where 616 billion USDs are in private credit and 135 billion USDs are in private equity. Fee generating assets under management of Apollo are 569 billion USDs. So called perpetual capital of Apollo is 447 billion USDs. Perpetual capital are inflows from insurance and retirements premiums which are available for long-term investing and thus one can achieve superior returns on the perpetual capital available to Apollo.

KKR's market capitalization is 102.39 billion USD, while Apollo's market capitalization is 79.44 billion USD. KKR's Price/Earnings ratio is 35.18 and it pays out a 0.61 % dividend yield. Apollo's Price/Earnings ratio is 18 and it does not pay out a dividend yield.

Both KKR and Apollo are undervalued, according to Wolfteam Ltd.'s projections and estimates.

KKR's intrinsic value is 142 billion USDs, while Apollo's intrinsic value is 135 billion USD, according to Wolfteam Ltd.'s projections and estimates. Apollo is relatively undervalued compared to KKR, in Wolfteam Ltd.'s view.

Here are KKR's fourth quarter, year end 2024 results:

Fourth Quarter 2024 GAAP Results (Unaudited)
GAAP Net Income Attributable to KKR & Co. Inc. Common Stockholders was $3.1 billion for the full year 2024
($ in thousands, except per share data) 4Q'23 4Q'24 FY'23 FY'24
Revenues
Asset Management and Strategic Holdings $ 1,564,916 $ 1,426,239 $ 5,807,306 $ 7,212,246
Insurance 2,864,915 1,832,115 8,692,006 14,666,452
Total Revenues $ 4,429,831 $ 3,258,354 $ 14,499,312 $ 21,878,698
Expenses
Asset Management and Strategic Holdings $ 1,212,828 $ 1,140,482 $ 4,162,977 $ 5,759,754
Insurance 2,847,689 1,840,100 8,195,628 15,226,106
Total Expenses $ 4,060,517 $ 2,980,582 $ 12,358,605 $ 20,985,860
Total Investment Income (Loss) - Asset Management and Strategic Holdings $ 1,506,657 $ 1,364,841 $ 4,413,902 $ 4,967,595
Income Tax Expense (Benefit) 286,611 258,330 1,197,523 954,396
Redeemable Noncontrolling Interests 7,323 15,603 (5,405) 73,149
Noncontrolling Interests 541,608 243,125 1,630,230 1,756,643
Preferred Stock Dividends — — 51,747 —
Net Income (Loss) - KKR Common Stockholders $ 1,040,429 $ 1,125,555 $ 3,680,514 $ 3,076,245
Net Income (Loss) Attributable to KKR & Co. Inc. Per Share of Common Stock
Basic $ 1.18 $ 1.27 $ 4.24 $ 3.47
Diluted $ 1.14 $ 1.18 $ 4.09 $ 3.28
Weighted Average Shares of Common Stock Outstanding
Basic 884,998,900 888,222,552 867,496,813 887,021,433
Diluted 912,002,464 956,267,561 911,787,433 938,904,600

Here are Apollos fourth quarter year end 2024 results:

(In millions, except per share amounts) 4Q'23 3Q'24 4Q'24 FY'23 FY'24
Revenues
Asset Management
Management fees $444 $476 $523 $1,772 $1,899
Advisory and transaction fees, net 141 181 205 623 822
Investment income (loss) 150 230 395 1,032 1,305
Incentive fees 21 35 42 80 150
Retirement Services
Premiums 3,586 389 155 12,749 1,318
Product charges 226 267 260 848 1,016
Net investment income 3,354 4,101 4,237 12,080 15,718
Investment related gains (losses) 2,621 1,539 (1,037) 1,428 2,045
Revenues of consolidated variable interest entities 495 552 493 1,441 1,822
Other revenues 8 3 10 591 19
Total Revenues 11,046 7,773 5,283 32,644 26,114
Expenses
Asset Management
Compensation and benefits (979) (605) (732) (2,722) (2,608)
Interest expense (47) (55) (67) (145) (226)
General, administrative and other (229) (326) (285) (872) (1,170)
Retirement Services
Interest sensitive contract benefits (2,595) (2,599) (1,642) (6,229) (8,949)
Future policy and other policy benefits (4,088) (793) (623) (14,434) (3,054)
Market risk benefits remeasurement gains (losses) (570) (524) 456 (404) 102
Amortization of deferred acquisition costs, deferred sales inducements and value of business acquired (186) (244) (263) (688) (941)
Policy and other operating expenses (481) (670) (535) (1,837) (2,136)
Total Expenses (9,175) (5,816) (3,691) (27,331) (18,982)
Other Income (Loss) – Asset Management
Net gains (losses) from investment activities 21 15 25 7 58
Net gains (losses) from investment activities of consolidated variable interest entities 35 44 20 130 90
Other income (loss), net 34 70 87 136 155
Total Other Income (Loss) 90 129 132 273 303
Income (loss) before income tax (provision) benefit 1,961 2,086 1,724 5,586 7,435
Income tax (provision) benefit1 1,620 (317) (62) 923 (1,062)
Net income (loss) 3,581 1,769 1,662 6,509 6,373
Net (income) loss attributable to non-controlling interests (825) (958) (176) (1,462) (1,796)
Net income (loss) attributable to Apollo Global Management, Inc. 2,756 811 1,486 5,047 4,577
Preferred stock dividends (24) (24) (24) (46) (97)
Net income (loss) attributable to Apollo Global Management, Inc. Common Stockholders $2,732 $787 $1,462 $5,001 $4,480
Earnings (Loss) per share
Net income (loss) attributable to Common Stockholders - Basic $4.53 $1.30 $2.42 $8.32 $7.39
Net income (loss) attributable to Common Stockholders - Diluted $4.44 $1.29 $2.39 $8.28 $7.33
Weighted average shares outstanding - Basic 584 585 584 581 586
Weighted average shares outstanding - Diluted 601 589 603 589 604