The performance of firms such as KKR acts, in some ways, as a gauge of the prosperity of the private market investments space.

KKR, aka Kohlberg Kravis Roberts, has reported net income attributable to common shareholders of $4.56 billion in 2021, surging from $1.94 billion a year before, highlighting the strength of one of the titans of the private markets space.

The firm said that in the fourth quarter of last year, it logged $507.6 million, down from $1.5 billion a year earlier, showing how performance dramatically improved over the course of the entire year, even though results eased off in the last three months of 2021.

Total revenues rose sharply to $16.2 billion in 2021 from $4.23 billion a year earlier; expenses rose sharply also, if not by as much – $11.4 billion in 2021 from $2.93 billion. 

Assets under management stood at $471 billion at the end of 2021, surging 87 per cent from a year before. Fee-paying assets under management stood at $357 billion, rising 92 per cent year-on-year. A total of $121 billion in new capital was raised last year. Uncalled commitments rose 67 per cent, coming in at $112 billion. 

The performance of KKR and firms such as Carlyle Capital and Blackstone highlight broader trends in the private equity, debt, infrastructure, real estate and hedge fund space in which they operate. Private market investment has boomed over the past decade, as investors have sought superior returns that less liquid investments typically generate.