Shares of leading alternative asset managers Blackstone (NYSE: BX), Brookfield (NYSE: BN)(NYSE: BAM), and KKR (NYSE: KKR) have gotten hammered over the past year. A big factor weighing on their shares has been the potential impact of rising interest rates on institutional investors' appetite for the alternative investments they manage.
KKR & Co Inc said on Tuesday its fourth-quarter after-tax distributable earnings dropped 42% year-on-year, driven by asset sale declines in its private equity portfolio and lower transaction fees in the capital markets division. KKR and other private equity firms struggled to sell assets for top dollar for much of the last year due to market volatility, rising inflation, recession worries and geopolitical tensions. KKR said its income from carried interest, which consists of profit from asset divestments, fell 66% to $194 million in the fourth quarter.
Yahoo Finance Live’s Julie Hyman breaks down how stocks are moving in intraday trading following earnings.