KKR: Raising Fair Value on Improved Market Conditions and Full Integration With Global Atlantic

We've increased our fair value estimate for narrow-moat KKR to $85 per share from $63 to account for revised near-term expectations for assets under management, revenue, and profitability since our last update. A good chunk of the increase was due to the recovery in the equity and credit markets, which should improve conditions for investments, realizations, and fundraising, but some of it was also due to KKR taking full ownership of Global Atlantic Group. All of this puts the firm in a much better position than we'd been expecting coming into 2024, allowing us to raise our fair value estimate by 35%.