KKR & Co.

Methodology

KKR's alternative asset management business generates earnings from management fees on growing AUM plus performance fees from investment realizations. The company's diversification across private equity, credit, and infrastructure creates multiple revenue streams. Normalizing earnings around fee-related earnings rather than lumpy performance carry provides more reliable fair value estimates for this alternatives manager.

Methodology

KKR's PEG ratio can fluctuate based on fundraising momentum and realization activity in a given period. The company's scale advantages and permanent capital vehicles provide growth diversification. Compare to peers like Blackstone, Apollo, and Ares to assess whether KKR's private equity heritage and infrastructure capabilities justify current multiples in the competitive alternatives landscape.

Methodology

KKR pays a meaningful dividend including both management fee-based distributions and variable performance fee payouts. The company's C-corp structure has improved dividend consistency focused on fee-related earnings. PEGY is relevant for income investors, though understanding the split between stable management fees and volatile performance carry is essential for assessing distribution sustainability.