KKR (KKR.N), opens new tab said on Thursday it had generated more than $900 million in income from monetization activity in the second quarter through June 24, signaling acceleration in private equity exit activity after a prolonged slowdown. A recovery in equity markets and dealmaking has reopened exit opportunities for buyout firms after several years in which higher interest rates and market volatility weighed on acquisitions and public listings.
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Monetizations for private equity firms typically refer to exits from investments, including the sale of portfolio companies or stakes or IPOs, that generate realized profits and return cash to investors. KKR said monetization activity had accelerated in the second quarter. It reported monetization activity of $878 million in the first quarter ended March 31.
The private equity firm said the current quarter's monetization activity in excess of $900 million was 66% above its three-year quarterly average. Sponsor-backed IPO activity has accelerated this year, giving private equity firms more opportunities to exit investments. KKR-backed ambulance services provider GMR went public in May, valuing the company at about $3 billion in its New York Stock Exchange debut.
KKR, which has a market capitalization of about $82.2 billion, had $758 billion in assets under management at the end of the first quarter. Its stock was last up nearly 1% in premarket trading.
