5. KKR & Co Inc. (NYSE:KKR)
Number of Hedge Fund Investors: 75
Jim Cramer praised KKR & Co Inc. (NYSE:KKR) in response to a viewer’s question, calling it one of the best-run companies globally. He mentioned that he had the opportunity to meet the CEO at a dinner and was impressed by him, describing him as exceptional. Cramer emphasized his belief that KKR & Co Inc. (NYSE:KKR) is an outstanding company.
“It’s one of the best-run companies in the world. I had the pleasure of meeting the CEO once at dinner—I mean, the guy’s dynamite, and I think it’s a really great company.”
KKR & Co Inc. (NYSE:KKR) is a major global investment firm with a diverse portfolio that spans private equity, credit, real estate, and infrastructure. KKR & Co Inc. (NYSE:KKR)’s revenue comes from management fees, performance fees, and investment income, which provide both stability and growth opportunities. KKR & Co Inc. (NYSE:KKR) has a strong history of successful acquisitions, especially in technology and healthcare, which align with current growth trends and expand its market presence.
As the alternative investment industry expands due to rising interest from institutional and high-net-worth investors, KKR & Co Inc. (NYSE:KKR) is well-positioned to benefit from these trends. With a solid balance sheet and significant cash flow, KKR & Co Inc. (NYSE:KKR) has the financial strength to make new investments, pursue acquisitions, and deliver value to shareholders, setting it up for continued success and growth.
Baron FinTech Fund stated the following regarding KKR & Co. Inc. (NYSE:KKR) in its Q2 2024 investor letter:
“We initiated a position in KKR & Co. Inc. (NYSE:KKR), one of the largest alternative asset managers in the world with $578 billion of assets under management (AUM). We believe alternative asset management is one of the best secular growth areas of financial services, and KKR should be a prime beneficiary. Global alternatives AUM totaled $16.3 trillion at the end of 2023 and grew at an 11% CAGR since 2010, according to Preqin. Annual industry growth is expected to exceed 8% over the next five years with private equity (PE), venture capital, and private credit expected to grow at double-digit annual rates.
Founded in 1976 as one of the earliest leveraged buyout firms, KKR was led for decades by co-founders Henry Kravis and George Roberts. Since going public in 2010 as a pure-play PE firm, KKR has successfully diversified into other private asset classes, including private credit, real estate, and infrastructure investing. AUM has risen nearly 10-fold since 2010 (an 18% CAGR), and PE’s share of firm AUM has shrunk to less than one-third. These non-PE asset classes are less penetrated than PE and provide a substantial runway for KKR to continue growing its funds, fees, and earnings. KKR also has significant growth opportunities in Asia. The firm entered the Asian market in 2005 and has a scaled presence with 570 employees in a region where alternative asset management is far less penetrated compared to Western countries. In 2021, KKR successfully transitioned leadership from Kravis and Roberts to co-CEOs Scott Nuttall and Joe Bae, longtime KKR employees responsible for many of the growth initiatives that are driving KKR’s success today…” (Click here to read the full text)
