KKR Cuts Q2 Capital Markets Fee View
KKR expects approximately $175 million in capital markets transaction fees for Q2 2026, lower than previously expected due to certain transactions now closing in Q3 2026
In addition, beginning with its Q2 2026 reporting, KKR will report realized performance fees from its K-Series Private Equity vehicles in Fee Related Performance Revenues within its segment earnings, which will be subject to a 15-20% Fee Related Compensation margin.
Historically, these fees were included within Realized Performance Income and were subject to a 70-80% compensation margin.
We believe including these fees in Fee Related Performance Revenues conforms to current industry practice and enhances comparability for investors.
Performance fees from its K-Series Infrastructure vehicles will continue to be reported in Fee Related Performance Revenues.
KKR also announced that it expects Capital Markets transaction fees for Q2 2026 to be approximately $175 million as certain transaction activity expected to close in late Q2 2026 is now expected to close in Q3 2026.