KKR reports 12% Q1 loss in PE portfolio

The firm recorded a net loss of $4.2bn across its entire business in Q1.

However, it said the worst hit sectors – energy, retail and hospitality – made up just 2%, 4% and 1% of its global portfolio respectively.

The company said it had $58bn in dry powder available and that it found itself "in the fortunate position of being ready as a firm" and to "not only play defense, but also play more offense."  

KKR also cited cheaper asset prices and "very steady" management fees for being optimistic, and that it saw its balance sheet as a critical strategic tool, allowing it to be aggressive for new investments for strategic acquisitions and providing its own stock.

The company invested around $8bn since the start of market dislocation on 21 February, of which $3bn had been in equity and $5bn was in credit.

The firm said that, over the last few years, it had been building a shopping list for debt and equity that it would want to buy "if and when dislocation occurred".

The company said it was now using the target list and investing in attractive companies, finding M&A opportunities for its portfolio companies, and investing in former portfolio companies.

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