KKR net profit rose 37.3% in Q2 2026, but equity covers only 7.5% of assets

KKR & Co. Inc., a US alternative asset manager, reported net profit of USD 700m for Q2 2026 (consolidated, US GAAP, USD), up 37.3% from USD 510m a year earlier. Revenue rose 12.5% to USD 5.7bn, so profit grew faster than sales. The net margin widened by 2.2 pp to 12.2%. Equity reached USD 31.0bn, against total assets of USD 414bn. That leaves the equity ratio at 7.5%, almost unchanged from 7.4% in Q2 2025.

A thin equity layer is common in a group that consolidates large investment and balance sheet positions funded largely with other people's money. It lifts the return on equity while earnings are good. It also leaves little room to absorb a bad quarter. Equity grew 10.0% over the year, which kept pace with assets but did not thicken the cushion. The European Commission's preliminary view on information given in a 2024 merger investigation is a separate matter. I would watch the equity line, not just the profit line.