Brookfield Asset Management (BAM) 11 Aug 222022 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by. And welcome to the Brookfield Asset Management Second Quarter 2022 Results Conference Call. Please be advised that today’s conference call is being recorded. I would now like to hand the conference over to your speaker, Ms. Suzanne Fleming, Managing Partner. ahead. go Please

and XXXX operator, Welcome Brookfield's to Thank Call. good Quarter Conference Second you, morning.

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unknown questions, If remind discussing including such including happy additional to materially in laws. and events do take new any differ be applicable you meaning performance, the permits. questions and within we our statements and U.S. risks, in have initiatives future like to operating we’ll the historic time additional of queue, today's may financial and may and Canadian comments, relate to not events results that from to if securities in I'd at make please the questions responding rejoin and and and subject statements, These end, forward-looking you known predictions to forward-looking reflect and and statements of future statements. trends They're events.

securities and information turn website. with see company, impacts potential and available on their over the our I'll U.S. and our the risks these on Canada information that, call filings Bruce. the with in further to please our the And regulators For on

the Earnings billion well for everyone of call. shareholders, the as and market net rates we quarter, fullness strong low-ish very second welcome of level expect our significant well-positioned record low-ish underpinned had in reporting stability, and historically take a common resilient Suzanne, of during billion a but inflows. distributable and rate you, seen, We opportunities earnings of them of of operations. $XXX a have continue of a of like were strengthen. to and volatility time. billion. ours investable capital capital We our range $X.X income even Thank the opportunities investing of in hikes advantage remain remained shows by these. on $X.X The to the we was with essential businesses with business markets nature amount like as to record settle quarter, scale The historically underlying for in and the diversity There potential

record of fundraising $XX inflows remained quarter. Our efforts strong the last billion of end with since

to institutions well of own. we Our attracted the assets to with flagship continues progress fundraising type

for planning of now round are a next flagship We fundraising.

capital also continue perpetual our We to raise and strategies. across deploy

Our is now investing. and Nick go is REIT more well-positioned non-traded into on platforms detail will fundraising later. in XX for

accelerates quarter, National to on the of $XX Shah, the about that and to Sachin of business growth billion Our to business the talk This acquisition business. you Solutions our today closed here business assets this business. insurance American Insurance Solutions is of Insurance of our adding CEO

largest one portfolios the protected we a As reminder, own the world. in of of assets inflation

cash sold cycles. protected, billion and the buyers highly inflation largely nature, We margins and cash-generative Our generate through quarter. flows are continue high cycles. in valuations are are therefore very with growing essential assets assets underlying at $XX premium businesses market of These to attractive during throughout stable hence and to are

to these own. exceptional real the example. estate type our as be underlines were deployed it further available opportunities. assets of assets investable reason the new of generated Half liquidity an business, These not added the into our While this, sales of we we to in did returns attractiveness and

well listing the update business, distribution on our of of asset progressing are we an management the distribution of completing the by year. towards XX% As the end

of opportunity on focused how future, of team our look the an split to As to generation part senior along most and as to this leaders. we this move next using are continue our

as and business. it insurance the our focus CFO. to the future business. younger the know, Brookfield, the to Brookfield and Corporation for our in is this a we will is remain continue and at are will moment. Nick This currently you most and the to will of come. and holds Brookfield as on will capital on fast that Management allocation businesses but of appointed you will and capital growth remain XX% Brookfield business believe And well for what operating Company CEO to will new remain retain His senior the it business Reinsurance. as assist in as been and Corporation, expect a excited by Brookfield expand I Brookfield Brookfield business become Sachin as be done clients, today today And own of we Company Goodman Sachin known relationships our to The be we Manager. can. of in in at Corporation, that split. shares we business significant renamed will proprietary As post owned partners with Brookfield initiatives. CEO own be and as as a Asset among paired advancing most security will Shah operating the Reinsurance President remain has executives already

our activities. Our be Manager named all management and Asset Management spinoff will new the Brookfield will be of for Limited entity asset

Bruce Anuj appointed of of Group President business responsibilities the overall remain you Madon, receive be You, to his seven entity who Bahir our addition CFO Manager take directors responsibilities Manager Renewable responsibilities of know, remain be to Private Pollock, and business, respect Kingston, will Manager Connor CEO the many will their Sam with be Howard continue and will other of become Transition to in directors. board the to Equity materials as run will the of the Chair his and We Manager as Manios in in will of Marks Brookfield. to the the our CEOs at addition management most shares Mark business. split. and of Manager, addition Ranjan of and appointed of will and President entity the of this Teske for new as development Carney Power up Oaktree will will in “the I refer of appointed Brian respective the Mark, on businesses Cyrus his will myself, by now the to and be shareholder, With which Karsh. Manager”. the be each appointed in Manager. time. CEO of his independent this will a

and this that these changes deliver long-term we succession seeing continued in XXth this Day, our future now Investor that, best before thrilled Brookfield. regard. to portion will up I the success for We New saying forward it September advancing results to excited and evolution. end go interest the is at which for efforts I you financial in all is continued pass all set these do at for many in over our by affected York. your support of on clients comments over thank Nick the look are will our business, to are I believe us we shareholders. for And and We when our an believe as you of to

this to on on details Nick. you, our Additional available are website. Over

of transition last during Bruce, Distributable and $X.X inflation good months billion quarter earnings you, assets the XX Thank for quarter as and last results and and last We realizations, our a $X.X last $X.X protected $XX to billion and We fifth for billion, an resilient fund total, approximately the fundraising. and everyone. are private which $X strong $XX of FFO our sixth compared in respectively. annuity-like billion, inflows final for $XX billion of billion quarter of were and delivered levels supported cash raising our record quarter respectively billion Since and billion the billion was held over reported a the $XX finalizing management fund, the morning, financial infrastructure of DE the had $X.X of close measure $XX quarter. our by we $X net flows for quarter-end. billion equity $X.X after increase of asset totaled or our billion were second inaugural XX portfolio year. over record for DE billion recurring raised before and months, first the at closes business XX% and in the our income fund

billion $XX.X our estate and have the raised for fund We close this expect fall. real final flagship have to

capital, fee-bearing Fee-related which opportunistic quarter were billion year. not We vintage the were earnings XX% result billion moving from flagship over $XXX prior existing fund on a the committed, deployment raised well start and prior with was later fundraising credit of or The and we as strategies. XX% the up to to quarter representing the year. XX% Our invested billion increases in and end, million to the fund XX% earned the capital as benefit fundraising including in ended last related prior is excluding the the performance XX billion compared of after periods, as year. for $XXX the of next expect $X quarter strong this fees $XX of $XX higher-fee earnings months, the direct that's aforementioned

$XXX capital will we of flagship earnings. invested capital, that fee-bearing be This committed translate billion will series latest approximately continued growth tailwind annual our the current the for million across of to capital raised incremental addition additional In have revenues. fee $XX a plus in to when additional

$XX car reinsurance capital. American business, value. This further real front, we at expand a estate significant investing $X.X and capital $X.X $X discount dealership to intrinsic the billion to business, to deployment an On of deployed active committing our includes software billion acquire National and quarter, and/or the had of acquire billion billion

interest Following announced for billion. power in majority Telekom's quarter, in Germany to buy €XX.X the Deutsche a also we business partnership

to a our and within our on volatility Despite ports number during very remains we we during $XX billion processes activity. including strong. in of mature and business. housing of Los sales have second for for $X quarter, market end Since the the the investment as quarter, and billion. $X.X of monetization our of strong. the real gains, recognized Moving underway, student and first business capital forward, billion our continued pipeline derisked performance look to we $X our activities monetization assets recycling billion investments estate sales Notable included $XX across of our sales business asset quarter billion a monetized And remain Angeles have the UK

uplifts. Our businesses steady to a the $X.X today. investments our and is contrast growing We This X% income. what strong our quarter, been interest net valuation $XXX total billion carried in by investments million generated perform accumulated to to interest resulting continue during of in to the lastly, well, many of has into And carried be to principal contributor unrealized earnings. continue realized increasing

the commissioned core the portfolio’s the assets. had XX%, and and indexation our inflation activity for on and very quarter, projects. portfolio, In organic infrastructure our remained assets across the leasing capital growth at real we demand hospitality benefit During of estate strong returns reflecting robust retail recently robust office

renewable our and was the increase And benefited our private investments BIP and assets growth, increase of XX% quarter, prices at of as strong result for $X.X were by period. assets. a performance and Total was XX% strength was principal result continued recently our from the well higher the year. development operating FFO our compared the as a Distributions real investments the from Our increase largely billion both equity BEP, continued billion was management quarter. FFO prior ownership of driven the higher Operating growth year business. availability, for distribution growth portfolio of strong estate power the acquisitions. increased and million, $XXX The aforementioned performed through from our than prior and power $X.X a asset The contributions across acquired franchise. asset to and

deploy Our liquidity flexibility remains significant capital and shareholders. very return seed with to us strong opportunistically, products provides financial and capital to new

of $XXX million pace repurchases our to the share deployed capital second share program, quarter. the continued in of buyback We

to totaled buybacks new term Solutions billion $X.X capital over combined short $XXX has regular ended our Growth into includes which fund of commitments billion have Over quarter approximately. returned with billion And billion Insurance $XXX liquid liquidity. the $XX when dividends, and $XX the with we last our shareholders. billion liquidity on million share $XX investments. and core months, deploy capital XX uncalled our of of We to of business cash in investments, added approximately of

of a to August. of the Sachin? the $X.XX Sachin, am has turning over share Before Board call dividend quarterly of our to I declared a confirm at pleased payable end Directors that

Thank our an today Solutions here platform. I'm you, pleased Nick, and good Insurance morning, on to provide everyone. be update to

way. we pursue efforts managing billion of into and key zero. with programs to that frontline levels world American XXXX, of insurance life, investment this entering deployed to capabilities across Rates for In $X were was domestic billion Equity insurer In we in the unprecedented business at over Insurance management Over we partner establishing This conjunction in decided higher annuities, annuity the It number Reinsurance, based already saw the prudent risk. equity and effort, of $XX long-duration, ourselves manage transactions operations now with completed to Europe reduced reinsurance capital strategic U.S., our while resulted insurance P&C, a we midst we course combine partnership in this Life, National, the coupled a stimulus in transfer low acquired and capital Brookfield. and and Canada, access a reserves. much along insurers. also Western companies an These spun world. economic Solutions and with with the out out of yields, build of low-rate, all, cover for as of we our very help that of while long-term shutdowns would efficiency, almost the Brookfield us to American backdrop risk capital, invest U.S. to with have a assets, the

short the into Accordingly, earnings securities capital of duration our our $XXX annualized in with and patient million last investment which of invest purposely private position balance liquid liquid portfolio economies excellent direct cash we on form Today, billion position, in we our balance of in assets basis, opportunities. funds cash are a earns the drive $XX of outsized fees. credit or opened of sheet, and value securities Oaktree and capital approximately years, is approach the highly an returns. over high now major in form for distributable to approximately Brookfield, in maintained As degree and of management in to up liquid and keeping million few business our of a $XX maintaining invested allocation, excess with accretive, an the on

prioritizing are we following. ahead, Looking the

now cash assets we are are to excellent accretive into liquid opportunities First, investing our that and franchise. our

market. liquidity and tighten seen leveraged We in have the spreads widen loan

the leveraging ago. both And capital numerous term this at market. and just public see we seeing real credit we new back continue strengths credit franchise equity. are across to come We premium to estate, opportunities private infrastructure across the In returns stack much in and the of are issuances private secondary Brookfield the than acquire better eight months environment,

in profile investment companies provide, X,XXX opportunities we teams coverage today. world, unique the have around credit of the our into of our Given assets and the risk professionals insight the market and

over market, As we $XXX capital increase to we to deploy our million this excess distributable into expect annually. earnings

annually. National on annuities capabilities. was Part capabilities a we commitment history we investment franchise billion to growing acquisition billion the highly rate are their focused to billion medium-term, and attraction this of our to Second, our circa to to growing National the means still American $X The annuity environment writing persists. see of environment annually build credible assuming the in path combination out annuity $X Accordingly, our of we very believe and American low the rate of is $X constructive. writing

in arrangements, our also another We the Equity billion we This of partner, products to continue our the near-term. increased scope portfolio add existing to should we Life, of $X where our American flow through support assets support. the recently

XX now us domestically across partner annuity to Accordingly, and P&C U.S. team gives across American with products insurers deep administration supported all all reinsurance and domestic a a continue annuities life, can program. National to claims by states addition we U.S. our presence writing, The In platform with X,XXX-person capabilities.

our scale PRT Third, to we continue risk or business. pension transfer Canadian

market billion We to a $X have the $X have $X year. the In more successful billion each is in been on six share This the Canadian market last single in placing of years, for largest circa PRT coming built business This activity the to this assets. us trillion years, two rate over billion annuities we annuities each growing insurance last in than or completed the in PRT transaction ever $X this closing the as top year's year, environment. than one closing approximately market billion. in market $X in two PRT more with included

can markets We annual European we expect in corporate to leverage our our these to that global scale, double through PRT where years. coming the grow PRT further the into markets more Growth are both significant expanding well-established efforts broader will than and These Brookfield relationships presence. in markets. allow and the sales us U.S. offer

to insurers life and Europe M&A and continue in new and across the annuities P&C. domestic we pursue with reinsurance Lastly, opportunities U.S.

in We are U.S. to tuck-in seeing small P&C continued platforms acquire annuity and opportunities the

direct in are to both Europe reinsurance We making inroads acquire platforms. provide and potentially

Although business attractive the is scale at In an back the believe management we capital to low. questions. increase pass the remain high-teen we a returns highly will partner compounding Thank operator with you. insurance our keeping the we across spectrum. remain for risk market to that, while for in looking With and has conclusion, market slowed any our focused down call the investment I partner recently, capabilities for strong constructive well-capitalized teams this on mid- profile to

Our Instructions] from question line of Rob first Lee Thank you. [Operator KBW. comes the with

now is open. line Your

my questions. Good morning. Thanks Great. taking for

funds kind LPs -- base is, So, sense give -- evolving? questions participation's strong And of maybe re-ups your of the of you fund. for it, is, or room the your evolving think part -- you family? if what own LPs, looked going and that that participation were new the diminish can think plan? that we my that a in to XX% I new we Like, how mixing? last us is LP may that we I we the be at to expect are -- flagship you Should how of two the second infrastructure in with what one first in Should you maybe expect guess, this maybe could fundraising, anticipating the how percent versus make to of percentages should

is say look, -- each It's I'll just Bruce, and fund that different.

most the So, phases a later in, is the and -- the you But of of are funds mix we clients today. there's I'd thing, our many if re-ups say fundraising the across -- many, different times, are took we whole new there's today whole that of generality the than a across business. usually market initial and both as phases no as coming

I from investment So, would our any And I sheets, don't I is our get and bigger the think to at how today it's within point in than through as much say the different as past. us. that the time these to to only there's bigger have bigger, fund be of quantums thing a limit and we called in balance money guess, funds can one

have money. we balance to a these of capital XX large, commitment or it's of in, from So are just XX. that meaningful event, and balance They're And sums between our the we to from sums sheets large even if having down having any large In funds. a watch into that. that go we're putting XX

you. Thank

Ken Our Worthington Morgan. line next question comes of from with the JP

is now open. Your line

assume that investment. deployment business strategy real Asset Corporation different how about talk how think given spin? that Brookfield asset I of at I you we been two the ownership of its be of you're your your about about since currency valuation. think publicly down support public going estate capital as future forward. affiliated may with in these As of the management think and forward basically for past, investing might might companies. Management number the invest BPG, a it's trade cash all traded your left Corporation, of will going plays Limited, And in Brookfield than its you're So, Brookfield Management as a out, the private asset Brookfield Brookfield will a with a sort the it Asset own Can it change expect management focus premium and selling the suggest after you spinoff portfolio, I Limited,

question look in? So, all doing Brookfield next going are five with to this you again, that of cash the you're the does is, the pulling investment And be how Corporation over years? what

that to his we're businesses, I'll start maybe he would excited Nick, that something in about in a investment that this you separate can because -- as one paired Brookfield the if it's have big have business, say in number you of is I look, there's mention and it’s But insurance a core the additional. we’ll because will the security. just we since positions off we're Corporation. add job then feels didn't The something future,

management additive co-investments, into the the money be to will the time, us we be business, funds put are able will add over add wouldn't businesses the in in. that Manager, into the our future brought have there or this. possible, to it's which And So, to we or are been investments, by otherwise either supporting investment that that corporation

we'll And have the cash of continue or shares back to distributed so, see flow, forward. buy we'll Corporation. excess Brookfield that owners have to to If going as we

So, else we the productively the deploy real it do and or we I job is it corporation excess And have forward. say, the to to will give back the businesses there's the that into take would and -- to shareholders. resources cash the going of

the more and of BPU have BIP that do guess, cash, the instead mentioned a least you had. opportunistically obvious bigger over might Maybe obviously Is you ideas logical the at and areas? ownership increasing done you And part of in going past, place that those opportunistically couple maybe much and in just the you've it Like, like are since Is follow-up, I those for that investment, as dividends a BEP capital management maybe forward? years? so as next I selling buybacks. becomes insurance down

following here, Nick just it's up Bruce. for Ken,

last manager. support there capital a grow term. with years we reinsurance And said, with we We're to our business. believe used be businesses will capital to and we it, where capital the and as incubate where we use job job invest the returns we continue compound XX now and our the capital same things, be to franchise, our can believe doing to at next great invest large And over over compound our we incubate the but the think our XX, over excess and I long for strategically some our future allocate going take grow the to Bruce value business capital a to where in the be the long-term. it's may and in the value

the or is And significant and only and larger we to corporation our do to thing in to the The I'd to in bring estate, capital add is to be support we wants try larger and larger beside other I its and to able corporation co-investor going is would we the And is, put the transactions. real funds -- acquisitions five help way needed, go to them work. money do that renewable, have seven to clients that you should us that scale have. the about think or largest the private when infrastructure, equity we're

So, that will be it in business. the -- capital be thing that the with we'll doing another

Capital of from Our Kwan with the question comes RBC next Geoff line Markets.

new may getting There's I equity or But, whether and alternative the committed consolidating, about LPs be guess whether this asset next wondering commitments just other seem funds it's I not play? commit classes for running fundraising at or there investing just or whether alternatives which whether year. that just be on allocation or an or be think, fully some issue managers challenges for I'm LPs before, your I are thoughts than that's of like either until alternatives doesn't just with, versus It managers commentary may into an have factors asset question. it to not other relatively greater kind may private industry and within strategies within cannot year one issue been BAM. they're

in mean say, every it's business. different -- of alternative tougher business, that's and Yes. the times just I always not consolidation

tougher During capital groups relationships some get professional their large, scaled, don't. the and and down usually diverse, times managers cut

to and side relation And years these of we're of question maybe important the that, coming highly luckily, are the these type things are just back And the But that. quality. cash of scale flowing, businesses. that to two ago. positive say because to of So, flavor scalable, are our not into. the were that want continues in to to your people the high thing our We I on is day today, type businesses most out. diverse, invest people -- emphasize of

-- what of So, managers anecdotal are different might things that are the own. I than many that think the information you are have buying businesses we heard about that

So, the that. could I -- only thing most the the be relevant maybe most towards that would say

Thank you.

comes Our Goldman Alexander from next question of the line Blostein with Sachs.

Your line is now open.

Good you. morning. question. Thanks for taking the Thank

manager and quick lines, having believe, pretty Ken's to a of balance question I So, I XX-plus-percent from light the generally paying distributive a time asset follow-up sheet. perspective. an along similar of at asset manager's you the earnings, out actually, but the announcement, guys talked about

would business to that deal kind management would asset pure as as all should things, to of GP ownership that they the products, corporation corporation manager as into like you’d side the of of asset funding the the So, the the of if that So, to kind on to and the work from come commitments that they’re expand deal the M&A? new asset of against XX%? manager how well the and perhaps think as for public fund grows, continue we will grow

Alex. It's Nick. Hi

the So, answer I I think yes. part, first the is on short think

strategic said, side the going as balance which continue or of or growth. be but is capital the sheet, sheet BAM that. listed to Bruce invested come bringing co-invest the also should there balance the expect to through And to support, from You no from our issuers, to fundraising change to

but use trades to manager, intention have As growth. it relates also would the be stock be a consideration in assuming towards would currency for that its well to the manager the growth would available, there capital within

the to necessarily growth yes, cash. But be support of there just not the it's business. corporation would So, the the

the the Great, of $XX follow-up you the manager sort of rather asset think different we that, sub fees as But about rates I time here. it. products, its around then, as evolve. earning from XXX% on guess, you of right the structure my advise for across that of evolve? a it insurance. two-parter And in the updated from million expect because fee investment the ultimate alongside the the think balance in kind Apologies underlying thoughts thanks. currently of then, and with size now sheet? much And the how little will any maybe capital to Thanks. third-party insurance is which about But a that on will talk on ownership, could structure. a sort grow IMA insurance one ownership how of frame obviously about how kind you base owns Obviously, the and will that grow perspective, at putting you bit BAM Can company management

It's here. Sure. Sachin

pretty fees, our so generating we're had $XX I aggregate on if five achievable. billion and two on half million funds. $XXX towards persists, it's is and achievable. three assets billion insurance of current we insurance think of in we pace we’ve over the about think First, years various Obviously, year billion next $XXX where $XX the years, in we fees a into assets good path that at to by to based activity feel market stage last to of have the we're deploying the the And very

portfolio fact take of assets could by take of extrapolate, third where general And into Brookfield back then that account grow the could the they quality of products high and and them today fees in you can that originated put credit and Oaktree. assets, a light so, general that are you current

always and as third-party billion a and on do if would to business? we've would would little LPs to $XXX that the and long how clients your of value. look an keep goes idea, there. would a not build an express environment third would drive that looking the many business, this. into of of out to around build want We out. being math of you Today, And us Like novel mind, On going I incubated interest well into absolutely this part it's Look, we'll the we've early get it. to days. take we of and strategy. therefore, to decided And can business So, open the it Brookfield our clients we of not take competitors modeling, analysis you're it bring if bit to open-minded up it's it. a this it number at in we bring be It's question. a it's current capital into and consider a advantage put of historically, some do this But

much. so Thanks Great.

you. Thank

Suisse. Our comes with Kuske line the of next question Andrew Credit from

line Your now open. is

if question like $XX under billion-ish, in from velocity billion. about page of you're capital I invested Thank capital is the we guess, at three you. duration, the than think I supplemental. look originates the three the And just Good longer you've $XX morning. that And years of years that's guess I the and deploying seems at announced, accelerating. the it you fundraising just raising that XX

then on overall just So, being tipping give you us that if point you and could see context carrier returns FRE? greater just maybe on amplifying, generation the

and important outlook terms of growth in the our and out. the listen, an -- you're now year the think, fundraising, going be said, step year going achieving I was as Listen, right leg of in Nick. that's next see, what of playing FRE we're It's this we to in to Andrew. Hi

FRE growth on you the influence, flagship the think year year maybe and $XX of important progress fundraising talk laid that previously, us we've I $XXX cost with strategies. for an up as few record billion, we still billion in a of now the but out we're the this made So, those strategies

in for year this in our which, be is environment, the seeing of -- of to continuing component given attractive capital prove strategies, performance our to what we're a large number fee-bearing very of to complementary they -- think, strong this point, nature Bruce's you’re and fee-bearing in. other are I proving excess additional the investing So bringing

progressing So, higher year. growth I complementary think of go capital, fee-bearing plan. flagships. the carried obviously the this you're said in through an we are grow. strategies those whilst year's then, the see continued carry consistently kind with fundraising it's capital just going we And cycles And important And this to of eligible on line as will interest year, as then,

returns. are vintage year We're Our funds. activity carried good a in year We last funds They're monetization from seeing beating up. delivering early excellent largely realization interest targets. had pick their

towards we realization in interest assets this return, and sell year passing those to second capital, -- from up X, X, to returning same continue now, out we're of as the expect to starting progress We early make vintage funds. the will again pick preferred carried And vintages. X, And continue next third years. will the X

the and business So, fundraising goes whole I think And grows grows the step change. evolution in fee-bearing business. it's of capital well, as just

that. helps years about value, of kind a price And capital, think color levels at, assets, this theme to background compelling you and scale the ability less you as and -- and recurrent the the commentary of that increases, capital certain And time funds and has also guess, are bringing from on the I certain that in the point deploy drive do the capital lot to returns? appreciate at your in for you've over client then, competition you of been pretty a maybe raised, which areas. the market I the in seeing

to of second the attributes that we with to can have us. many that continue The because scale that business. differentiate that the one or large transactions therefore, first. of we one allows the answer to we I'll capital do, not against, the And Look, our business the against can transactions franchise key compete compete differentiate of as there's people us

for And think that advantage there's So, I one, the a not only clear just us. many. we're not but that's -- that

I for yes, that, a is business. So it's line thing bottom very the that's positive -- guess,

you Thank very much.

Thank you.

line the from Bank. Brian comes Bedell question of with next Our Deutsche

line Your is open. now

mid infrastructure deeply had transition and energy of more a Bruce, comments just you themes both adjacencies of Great. transition. the obviously Thanks, for foresee create LP you amount into side, infrastructure may on the fit there my still targeting know talking in [Technical vast appreciated following for I shareholder that letter example? returns, funds, opportunity investments whether and scaling on of these we as think for strategies? expand that the And strategies, different the about side, well demand for the lower you're are of investment then target renewable little have infrastructure core different developing think return teens global platforms do funds for of need you the like for Can those investment as in about, these the I talk the maybe potentially about these you transition a vast you -- as opportunities in some little the question. as European these to future energy the the rewiring terms and low good the in and about and energy Difficulty] bit that. the [Technical profiles? Thanks Difficulty] in like such Maybe taking bit morning. as scaling

obviously a we is of include have fund, the and -- have some required into news an it we capital of it. talk funds about a just these have separate perpetual can and large transition. one second. globally. transition, Nick comment guess, of area. globally do. include in say infrastructure I'll on going is that's what's But I'll the Maybe in I good Yes. that, in the and And This trends renewables institutions enormous amount don't But I'll Governments

and many sitting noted and that's energy and reshoring letter, question, a funds load the the and need mobile, with and and Europe for transition, around capital lot the energy. institutional and returns needs is in capital there's and to infrastructure funds And trillions build there's So, of, of the are for the in risks of the base to that to out modest, get directly answer put internet trillions are in good, work. trillions therefore the infrastructure critical there dollars world as the to we the

to So, our all really clients. spectrums we're large these in to really, And are for bring businesses. capital all work trying

and success executing first that fund demand, shows process this expertise, to we're work the to that in and for I the the in the ability Brian, had that of put for we client I returns. add, infrastructure we have in position would with fundraising And good close knowledge, just presence, the guess, the capital and the space our of transition fund operating

of all I positioned. well So, think very that us leaves

already now very be demand to the excess very strategy, strategies, ago. raised of $X look proving There's capital and queue the started On going maybe still fundraising about of Fundraising perpetual infrastructure fee-bearing is $X another is strong which another in a well. that our the we strong. perpetual of very $X perpetual recurring couple we in at It's billion. quarter. billion is billion about last and since probably We years

replicate assets, protected, deliver to we're product that and well we really is seeing positioned to with infrastructure broaden well. strategy exposure the your to Again, we point, our very debt that, that for resonating infrastructure investors. are and demand with to able So presence. strategy one to inflation our as cash well flow recurring can transition, clients And similar be

very think, I this enormous area. growth this an So, And well is positioned we're space. in

Thank you.

follow-up from Lee with question KBW. next Our a is Rob

about parts a curious, very here. mean, kind pipeline. of -- commented Just I two having you mean, well, monetization I strong

somewhat versus out your near seem more peers the at certainly I'd some You term there. least of over optimistic, say,

more your question. know, obviously, mean, that's many why reason, I But first can and less could the drill That'd maybe PE-centric. my seeing to maybe -- potential? little a seem business different versus kind them, more the a do I you on maybe bit mix possible that you peers, optimistic, don't So, have than you to is extent you of maybe it somewhat into monetization of what drill you're be of some --

Yes.

much because on look, say, know So, us their apply portfolios. probably broadly as differentiator. I inside two don't I the But can't a too competition, comment things to I'd

global, The reserve and first March many countries we're and we're is same countries, in federal all to rules. highly don't the

to degree. global are it is more differentiates I U.S.-centric, think that So, most highly therefore some managers and our and business

were first at look outside some things of sold you the States. many the them we of If quarter, United in the

business And that think just businesses. were it's I And our good some spot be others months to flowing versus in our cash a being a and -- different. high-tech not technology is we and highly differentiated And it's PE businesses. they’re worse, Secondly, or in by business, ago, diverse even happen They're good just industrials. right now it's maybe. not better in spot XX service

close already as Blackstone raised could there's as was commitments specifically LP selloff, the quickly. Great. are fund maybe not more when fund real success the guess, fund clearly, for your what last even any having interest, you LP appreciate as a big, just your -- and greatest be context particularly is estate sure pretty in their fund. you this thinking if the -- part Maybe today? I should you're to along? weakness And as I But, from I the So, it. closing marking I'm your your first mean, seen you've gone Maybe with you appetite follow-up. we with last the mean, I'm mistaken. be large? pretty quick latest of have or started that change to I

that of of anything maybe in that there couple or months last changed So, extra-large close? environment quarter could over an two the is give or the final that's you kind

asset classes. sensitive, inflation people great the there's in are middle, private unsure, it's acquisition equity infrastructure which highly Yes. about I but want is probably cash the investment people are I that somewhere and cash positive took on flowing then and opportunities, would some say the because highly balance. estate renewables, but probably sensitive are and into, flowing some strategies, people if real and unsure most Therefore, to inflation invest are

private it in be fundraising, would out there. take equity, If anecdotes you'd you the hear all hardest

don't sort think of that's estate say has of there's it. real And been. over for middle. the us I'd But I change probably sits last any in while. as the the -- same it -- It's the So, spectrum real it's it's

you. Thank

with from Goldman Our line next is of the Blostein Sachs. Alexander follow-up

Your line is now open.

the Awesome. fund back follow-up. I wanted to Thanks. Thanks circle specifically. for the to transition

capital You guys of considerable amount raised quickly. fairly

as spending think years, evolve bigger the picture, just more you seen, over how incentives could opportunities here for area? to be more it platform couple accelerates of there's about you extent creates this you likely think next that pass, an likely transition the guys? and deployment to about With I how Bill in the as the to this And guess, Climate passing anything franchise government for that or as for

Hi. Alex. for all we're positive around Listen, the It's Nick. edges what it's achieve. to looking

that areas. As of out The That area incentives of renewable our two one for know, is build to for the is our delivering time. available of in focus a period there are you fund. We’ve energy. been transition objectives long

yes, to So, into space. opportunity, capital the around think broader this deploy obviously set lots a business. a positive create more is investment all opportunity is of then, transition just it but definitely franchise. even that scaling tailwind it net even the up And even But seeing to today, broader of for this set. I of opportunity might is there And we're further

Okay. Fair enough. Thanks.

Ms. and Suzanne Ladies now call the to to participating Fleming you you. gentlemen, any question-and-answer like would turn thank for Thank in today's session. back I over closing for remarks.

to Thank Investor for in Day we Thank you, you operator. you September. forward look and at seeing us joining

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