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Will KKR’s (KKR) Bigger Bet on European AI Data Centers Reshape Its Diversification Narrative?

Simply Wall St · 3d ago
  • In late 2025, KKR committed an additional US$1.50 billion of equity to Global Technical Realty, its European built-to-suit data center platform, with Oak Hill Capital joining as a new investor with about US$400 million to support GTR’s AI-ready capacity expansion across Europe.
  • This move underlines KKR’s push into digital infrastructure as a core area of growth, tying its fortunes more closely to long-term demand for cloud and AI data center assets.
  • We’ll now examine how KKR’s enlarged commitment to European data centers reshapes its investment narrative around fee growth and diversification.

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KKR Investment Narrative Recap

To own KKR, you need to be comfortable with a business that leans on fundraising, fee growth and performance income from a broad alternatives platform, including private credit and infrastructure. The enlarged US$1.50 billion equity commitment to Global Technical Realty supports KKR’s digital infrastructure ambitions, but does not appear to alter the nearer term focus on fundraising momentum as a key catalyst or the risk that competition could pressure fees and long term margins.

Among the recent announcements, KKR’s planned Q4 2025 earnings release on 5 February 2026 stands out as particularly relevant. It will give investors a clearer view on how newer commitments like GTR, ongoing M&A activity and fundraising progress are feeding into fee related earnings, and whether the firm is withstanding rising competition in alternatives and wealth channels that could challenge its long run fee growth story.

But investors should also be aware that rising competition and potential fee compression could...

Read the full narrative on KKR (it's free!)

KKR's narrative projects $13.7 billion revenue and $5.4 billion earnings by 2028. This requires a 13.9% yearly revenue decline and an earnings increase of about $3.4 billion from $2.0 billion today.

Uncover how KKR's forecasts yield a $157.81 fair value, a 21% upside to its current price.

Exploring Other Perspectives

KKR 1-Year Stock Price Chart
KKR 1-Year Stock Price Chart

Five members of the Simply Wall St Community currently see KKR’s fair value between US$66 and US$176, highlighting very different expectations. Against this backdrop, KKR’s reliance on performance income and fundraising strength could materially influence how those views evolve over time.

Explore 5 other fair value estimates on KKR - why the stock might be worth as much as 35% more than the current price!

Build Your Own KKR Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

  • A great starting point for your KKR research is our analysis highlighting 2 key rewards that could impact your investment decision.
  • Our free KKR research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate KKR's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.