Declines in investment performance, a key-man event, and/or legislative risk which negatively impact the company's ability to raise FAUM
and generate fees, and/or impairment of the liquidity profile could result in negative rating action.
5x; a substantial weakening of its liquidity profile; and/or sustained declines in investment performance, a key man event, or legislative risk that negatively affects the company's ability to raise FAUM
and generate management fees.
The rating affirmations for KKR reflect its strong competitive position as a global alternative IM, experienced management team, solid investment track record, relatively predictable fee-earnings stream, given sizeable FAUM
, incentive income-generating capability, strong asset coverage of debt, ample liquidity, relatively low balance sheet leverage, and subordination of general partner interests to outstanding indebtedness.
5% in the first nine months of 2017, as compared to the same period in 2016, given lower FAUM
, and the FEBITDA margin was 14.
However, the firm's ability to execute its de-leveraging plan will be highly dependent upon the stability of its FAUM
and fee rates and its ability to exit PE co-investments, which Fitch believes are relatively illiquid.
This income stream, which is tied largely to management fees on open-end, NAV-based funds, has increased significantly over time as DoubleLine's FAUM
Further driving the Positive Outlook is the success of Apollo's strategy of growing its credit FAUM
through the insurance affiliate relationship it has with Athene Holding Ltd.
Fitch believes FAUM
growth may moderate over the near-term given Blackstone's absolute size, continued realization activity and the recent raising of flagship funds in private equity (PE) and real estate (RE).