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KKR's Third Quarter Results Sees AUM Grow, Helped By Asia Fundraising

KKR announced its third quarter results today, showing overall AUM of $233.8bn, up from $221.8bn at the end of the second quarter of the year. Fee-paying AUM stood at $177.3 billion as of September 30, 2020 compared to $160.3 billion as of June 30. KKR says that the increase in fee-paying AUM is primarily attributable to new capital raised in the firm's Asia and core private equity strategies, real asset strategies, and leveraged and private credit strategies. KKR’s Asian Fund IV, which launched in July this year, has raised just over $13bn, all of which was yet to be called at the end of the quarter. The firm’s Asian Fund III, which still had $3.7bn to call at the end of September, is producing a net IRR of 24%, according to the firm’s investor update presentation.

Private equity still dominates the firm's book. 71% of the firms holdings are categorised as private equity investments, with real estate the next highest at 8%. Fiserv remains the firm's highest exposure, with a fair value of $1.47bn, 10.5% of the firm's total investments. Other 'significant investments' identified by KRR include USI, Inc; BridgeBio Pharma, Inc; PetVet Care Centers, LLC; and Heartland Dental, LLC.

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