KKR Stock Falls on Hit from Refunding Fees on Weak Asia Fund (1)

KKR & Co. disclosed that it will take a charge to pay back fees on an Asia private equity fund after it underperformed, sending the company’s shares slumping Friday despite quarterly earnings that beat expectations.

The New York-based alternative asset manager said it would refund $350 million in previously paid-out carried interest to investors in its second Asia buyout fund, and will take a charge in the fourth quarter. Shares fell as much as 6% before moderating. The stock was down about 1% to $118.20 at 12:41 p.m. in New York.

“As we have disclosed to our Asia II ...