RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its “RiverPark Large Growth Fund” Q1 2026 investor letter. A copy of the letter can be downloaded here. Markets started the year positively but became volatile mainly due to increased tensions with Iran. The Federal Reserve kept rates unchanged in January and February. Still, rising energy prices and weaker economic data sparked concerns about stagflation, leading investors to rethink the timing and scale of future rate cuts. Investor sentiment shifted from growth and tech stocks amid inflation, interest rate, and supply chain concerns. Opposing AI-driven rotations heavily influenced investor sentiment, affecting growth stocks—enthusiasm grew for semiconductor firms linked to AI infrastructure spending, while enterprise software companies, viewed as vulnerable to AI disruption, faced pessimism. The Fund’s software holdings were sold off heavily, while the underweight in semiconductor companies, which benefited most from AI infrastructure spending, affected the performance. Despite challenges, the firm remains confident in the long-term prospects and valuations of its portfolio companies. Please review the Fund’s top five holdings to gain insights into their key selections for 2026.
In its first-quarter 2026 investor letter, RiverPark Large Growth Fund highlighted KKR & Co. Inc. (NYSE:KKR). KKR & Co. Inc. (NYSE:KKR) is a leading private equity and real estate investment firm focusing on direct and fund-of-fund investments. On July 2, 2026, KKR & Co. Inc. (NYSE:KKR) closed at $93.84 per share, reflecting a market capitalization of $89.70 billion. KKR & Co. Inc. (NYSE:KKR) posted a one-month return of 3.09%, while its shares lost 30.53% over the past 52 weeks.
RiverPark Large Growth Fund stated the following regarding KKR & Co. Inc. (NYSE:KKR) in its Q1 2026 investor letter:
“KKR & Co. Inc. (NYSE:KKR): KKR was the fifth-largest detractor for the quarter, declining 27% despite a strong recovery in March. The stock’s weakness early in the quarter was driven by its Q4 2025 earnings report on February 5, in which adjusted EPS of $1.12 declined from $1.32 in the prior-year quarter and missed consensus expectations, as fee-related earnings and total operating earnings both fell short of Wall Street estimates. Broader concerns about private credit exposure and AI driven disruption risks to software-heavy loan portfolios weighed on the entire alternative asset management sector throughout February. Despite the tough start to the quarter, KKR did stage a significant recovery in March following a landmark strategic transparency initiative in the private credit market: a data-standardization partnership announced by Apollo and Intercontinental Exchange (ICE) introducing institutional-grade, deal-level transparency to what had previously been viewed as an opaque private lending ecosystem. The announcement materially eased investor concerns about private credit liquidity risks that had weighed on the sector to start the year.
We continue to view KKR as a differentiated, long-term compounder with a diversified platform spanning private equity, credit, infrastructure and insurance. With record 2025 fundraising of $129 billion, management guidance for over $7 per share of adjusted net income in 2026, and the strategic acquisition of Arctos Partners adding a new sports and GP solutions vertical, KKR’s long-term earnings trajectory remains compelling.”
