Thames Water could be on the verge of being renationalised after its preferred funding partner, US private equity giant KKR, has decided to walk away. KKR was selected as "preferred partner" in March after it offered to put £4 billion into the company, but despite the US firm completing due diligence stage and preparing a funding plan, it has now "indicated that it will not be in a position to proceed", the UK's largest water company said in a statement.
KKRT offers a 6.875% nominal yield, a BBB+ rating, and is fairly priced relative to KKR's senior debt and sector peers. KKR has outperformed both the S&P 500 and asset manager peers over the past decade, but its debt interest coverage requires monitoring. ETF inclusion, particularly in PFF, could drive short-term price appreciation for KKRT, creating a technical buying opportunity.
Frankfurt-listed IT services provider Datagroup SE said on Sunday that KKR has made a conditional proposal to increase the potential acquisition offer to up to 58 euros ($65.84) per share.
KKR & Co. Inc. (NYSE:KKR ) Bernstein 41st Annual Strategic Decisions Conference May 28, 2025 1:30 PM ET Company Participants Conference Call Participants Patrick Davitt Good afternoon. I'm Patrick Davitt, U.S. Asset Manager analyst here at Autonomous.
KKR's earnings are more stable than perceived, with fee-based revenue providing resilience against market volatility and downturns. Assets under management continue to grow, driven by strong fundraising, new product launches, and increased perpetual capital, supporting double-digit earnings growth. Performance fees and investment income are a small part of overall earnings, reducing KKR's cyclicality and downside risk in turbulent markets.
KKR Partner General David H. Petraeus (US Army, Retc.
Lifecore, Burford, KKR, PAR, and Cellebrite are well-positioned despite trade policy and tariff headwinds, each with unique catalysts for growth. KKR stands out for its asset growth, brand strength, and resilience, benefiting from the migration to private assets and high-net-worth channels. PAR's high-margin software, resilient QSR customer base, and strong growth prospects outweigh tariff risks and support a bullish outlook.
FSK delivered a strong Q1 2025, surpassing NII guidance and reaffirming a $0.70 quarterly distribution, highlighting management's proactive risk management and portfolio strength. Shares trade at a -9.41% discount to NAV and just 7.52x NII, offering investors double-digit yields and capital appreciation potential versus peers. FSK's disciplined focus on senior secured debt, robust origination activity, and improved credit metrics position it defensively for future growth.
FSK offers a high 13.4% dividend yield, but dividend coverage is barely adequate and NAV continues to decline, raising sustainability concerns. Despite a strong quarter for new investments, persistent non-accruals and weak earnings suggest fundamental issues remain unresolved. FSK trades at a 10.5% discount to NAV, but this is less attractive than its historical average, reflecting market skepticism about quality.
FS KKR Capital's met EPS expectations due to new investments. The BDC grew its portfolio and slightly improved its balance sheet quality, with the non-accrual percentage falling to 2.1%, based on fair value. The Company generated net investment income of $0.67 per share, fully supporting the $0.64 per share regular quarterly dividend.
KKR & Co. Inc. (NYSE:KKR ) Q1 2025 Earnings Conference Call May 1, 2025 9:00 AM ET Company Participants Craig Larson - Partner and Head of Investor Relations Scott Nuttall - Co-Chief Executive Officer Robert Lewin - Chief Financial Officer Conference Call Participants Craig Siegenthaler - Bank of America Alexander Blostein - Goldman Sachs Benjamin Budish - Barclays Capital Glenn Schorr - Evercore ISI Steve Chubak - Wolfe Research Mike Brown - Wells Fargo Dan Fannon - Jefferies Patrick Davitt - Autonomous Research Arnaud Giblat - BNP Paribas Brian Bedell - Deutsche Bank Michael Cyprys - Morgan Stanley Kyle Voigt - KBW Operator Ladies and gentlemen, thank you for standing by. Welcome to KKR's First Quarter 2025 Earnings Conference Call.
Although the revenue and EPS for KKR & Co. (KKR) give a sense of how its business performed in the quarter ended March 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.