(Bloomberg) — Co-CEO of KKR & Co. Joe Bae and Scott Nuttall are taking an idea from Berkshire Hathaway Inc.'s business model. betting big on long-term private equity ownership and the dividends that follow.

The firm's strategic holdings unit — which it created to hold 19 long-term private equity investments — is expected to launch more than $300 million in dividends by 2026 and double that number by 2028, Bae said in an interview. for Bloomberg Television on Thursday at the firm's office. headquarters in New York.

“Berkshire Hathaway is an apt analogy,” Bae said, referring to Warren Buffett's conglomerate. “There are many powerful messages in what Berkshire has built. It is the power of long-term ownership of assets, large businesses. The power of compounding and the real power of intelligent capital allocation within your business.”

KKR is betting on gains in private equity as some of its peers shy away from acquisitions on the belief that the business is at scale and the biggest returns are in the past. KKR has doubled the size of its private equity business in the past five years.

“We are students of creating long-term value,” Nuttall said.

KKR, founded in 1976 by Henry Kravis, Jerome Kohlberg and George Roberts, has grown beyond its private equity roots into an alternative asset management giant with strategies spanning buyouts, credit, infrastructure, real estate and insurance.

At its investor day this week, KKR executives said they aimed to grow the firm to $1 trillion in assets under management in five years and achieve at least $15 a share in annual adjusted net income within a decade. It expects operating income from the strategic holdings unit to reach $1 billion by 2030. The firm pointed to Asia, infrastructure, retirement and wealth as key growth areas.

Read more: KKR aims to reach $1 trillion in assets in the next five years