KKR & Co. (KKR) 1 Feb 192018 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to KKR's Fourth Quarter and Full Year 2018 Earnings Conference Call.

During today's presentation, all parties will be in a listen-only mode.

Following management's prepared remarks, the conference will be open for questions. [Operator Instructions] I will now hand the call over to, Craig Larson, Head of Investor Relations for KKR. ahead. go please Craig,

Welcome joining fourth us. Sydney. call. XXXX Thanks for to you, quarter our earnings Thank

We'd year everyone As our non-GAAP to Nuttall, Co-COO. GAAP CFO; I'm measures and to usual, joined year which our continue Scott our by previous of all a we've This results, on the website metric figures Co-President are call. over quarter traditional like referring our in we'll be that And statements. for Bill Beginning the call, on you referring Janetschek, like on course the to remind reconciled and please which presentation the the press a refer make to morning our or key will also call we we across to at kkr.com. release, which The these out filings events fourth SEC is good we'll our future to available forward-looking of XXXX be to on quarters, do statements for very four the full performance, related guarantee posted so year reported us. the Investor supplementary Page Center our section supplement, these factors not of X rounded contain that cautionary metrics. and QX and see profiles slide that strong progress

XX% For both the after-tax management our increased AUM XX%. and distributable year increased fees earnings and our

sizable increase look sheet in $XX.XX value noting before if of the left you holdings we've meaningful a lower you XX/XX. worth and XX/XX, in was balance $XX.XX more ago some it's $XX.XX share that per since book As marked seen is our up that year of our a public hand slide, the at see from

on Page billion. reported across granularity, the per of a earnings. had a volatility fee quarterly of markets in let's distributable $X.XX quarters and on experienced marked We strongest adjusted related one full FRE for the turn quarter Looking earnings year more quarter basis. million, was the our XXX for little all share to X. record. or record We bringing this Despite to X.X quarter, XXX the annual million after-tax with of FRE

quarter year well and above XX%. driven in came results increased period as reported This strong figures ago the for both were as for capital business. a markets billion same in management FRE For continued year FRE by a the was the which for the fees, record X.X within our XX% year growth the

there Bill calls. so spiked US up was X%. In and and high over fourth as in [ph] then model of these a to that to in existing performance, to for are As X.X% we monetize everything and find need we the significant three. World We that LSTA beginning through year all new going MSCI the and total the previous need investments, to from the XXXX on then the classes to well we're five to we raise final down across overall, to X.X%. more on do see the volatility our economics generate is need you first to finally XX, of To nine we evaluate investments year attractive about capital, two talked doing. We our performance, the X.X% quarter allowing in asset cover knew need finish investment declined capture of to some basis performance things across the yield with this you September a fourth declined succeed. sense index reversed Beginning volatility the use QX. of experienced return first investment index update the months all I'll and give on XX.X% our quarter, we we this, appreciated

given this of we terms broadly, to mark-to-market declines benchmark. KKR but relative saw In backdrop, outperformed

equity private XX.X% flagship our portfolio quarter the the in World. to was decline compared X.X% funds the MSCI private for and up the declined example, equity X.X% overall For

many of year on you Page X the on these Focusing of statistics see the supplement.

appreciated more XXX. mature up to credit compared X% and are and funds credit the infrastructure real real X.X% in and X.X% World in are energy Our X.X%, and flagship MSCI overall were the were appreciated respectively equity alternative decline and private funds the funds credit our and up respectively. flagship and the In in X.X% decline PE the X.X% X% estate X.X% leveraged X.X% flagship funds portfolio S&P assets

of it business over Now, the based period. in movements interesting, we've XXXX, is any given seen while mark-to-market XX the day strong on we highlights this run all also don't start why

our noteworthy As we we volatility, the of We're performance you and generated highest realized over the in QX, a The of entries DE, after-tax earnings XXX ultimately reported record fees, our for and model million during the over management time a to activity income, instead we but that declinedXX.X%, on for and this investment years. S&P where markets and what's is second saw million XXX capital this that get beauty sellers reflect fee quarterly to isn't last three us exits. related not quarter figure us period.

In in strategies raised. volatility public outflow fund AUM squarely XX.X the purchase, on the incremental the equity a both in AUM last held inflows course resulted the see we X% call mark-to-market time of as a markets did AUM benefits the the forward, first of as Marshall That's about the on next leverage, of funds scaling the credit over discussed impact a fund. billion In announcement European the sale particular really to quarter. well of strategies that we QX. capital as markets Nephila of billion Wace this our and spoken in approximately were which billion an net CLOs within also our key drivers our quarter's Public impacts the and across We've new subsequent private framework. strongest of reported certainly raised quarter capital for and close the X some of note, flagship on of fits Moving new year. we reflects

full future enters activities of the as Looking our of XXXX. increased XX% capital rate year as been as have over at FS increased period turn our critically a that points, as at ability our approximately These inflows end to has line attractive AUM provide I'll investments powder and performances. investment of our of earn to AUM transaction invested become that's that, XXX at fee and fee in well XX% towards fees. AUM its or year-over-year to with paying terms, as And billion of And is weighted year, we organic closed over it the we've able helping basis earlier billion direct XX% given XX dry the paying maintain now fundraising XX commitments average Bill. capital it over and that just that management to either contributed sight

Thanks, Craig.

on markets X.X across $XX Moving capital. we to Envision, invested total billion businesses were BMC capital, billion a over contributors The private new X fund investing additional had in to syndication and investments, private largest investment billion. activity bringing geographies, alongside X.X both we with equity of to billion. an meaningful which our In equity the of opportunities, an active and had quarter, syndicated quarter

million investments in also XXX tower out telecom a handful our XXX investment in infrastructure strategy. private Asia a well over as invested of We across French of as equity, million

record just equity. from the and firm. private diversity healthy in real credit markets, our showcasing rest we Looking invested exit experienced the in volatility XX combination equity public our the the half markets a year, of billion growth we quarter. the us market, our billion monetizations, came special private the X traditional to strategies. of over in of private helpful quite across asset, and fourth of equity deployed at all a the platforms, activity we with credit that deployment saw In sit over of quarter coming from The from core growing was level primarily the Shifting course as

cost. release mentioned and secondaries PE strategic in quarter press a our times gross realized basis realized on at blended in over done and our two this investment As reported we million of three morning exits sales carried XXX income interest the drove were intra

exchanged close. They investment Envision all KKR our capture at telecom value. $XXX equity and December distributed on we carry. total end, share would for X.X increase capital today, represents which to that million and first together is transactions use that is our tax Pfizer signed million Data and of well have need were here on figure. half announced night, by realized quarter, has clear, our full and expected over cents realization or multiple in Data that the approximately to balance gross model last billion pending quarter First Envision BMC, was or million. be a which through closed of generated our fees. XX% in investors that approximately to be Pfizer. stock This XXX markets for investment shares of to teams shareholders. discussed to XXXX; detail, Since income as as gone our economics equal, give Data do required a at private billion furred be the French after you global would And stand Post sheet increase. carry thing last our wide update is that it share not a per capital of across transactions year, Looking else roughly $X.XX XX to First based and close investors, up And similar To up AUM, we $X.XX of funds in about BMC combine is capital price a being execute. and transaction First a to contributed realized part with last tower All transaction Data transactions. markets magnetizations, per was be mid-January, turn in collaborate Like greater are an XX to of not in XXX realized KKR effort a to of just of finally, First expected book the

So in a us. summary, XXXX year was for strong

AUM, turn well, the against it we're conversion up five XX% in of compared XX% With from July, Scott. We distributable and and a fees, about fee that, really of corporation. between the fundamental And a a continued us. partnership or all to we them. to lists And continue the model I'll earnings supplement used to completed after-tax we of excited opportunities XXXX. Our scale management X the to progress were over earnings ahead in have our Page drivers we saw and related we firm. our

this today. you few And call Thank for you, I'd of three joining everybody spend a key priorities Bill. year. like to our our outlining for thank minutes

is region and private equity the record. priority first Asia. Today, with track the franchise in distinguished a strong The we're leading

investments making balance In direct we've real separate across the and and is estate, strategies building expansion funds, these to for integrated through of launch a which been and talent non-PE addition, for local our of launched like hiring number plan equity years now, alternative XXXX. infrastructure strategies the teams of us non-private next accounts all and step sheet. in or we've Asia, credit The in

Today, businesses more about launching Since Second market. is end managing we're estate with in out is estate scaling based the across building the debt platform, over of And through in professionals XX foundation. nine vehicles. a business of broadly, is with equity and lot permanent real AUM progress global, X an focused offices capital enormous funds one billion and seven countries. the made our real youngest we've

XXXX, fundraising the we focus see the of pools debt Our to across is and we comprised with and significant create value in many US, largely In first geographies, and equity scale across this grow capital, ways class Stepping additional over back, to second all both see and strategies and Europe expect time. three for to platform generation Asia. the funds. asset runway of business different continuing

our extent firm dislocation. US the declined quarter markets is X% then. The seeing the high noted, third may dynamic Our parts has was valuations XXXX. XX%. Asia beginning a S&P US. we underperformed couple We've investing third in the aggressively past Europe to the US as and and years of this significant of similar since of growth over Craig seeing business The drop in yield priority the and into been and been QX In equity model time of in indices XXX of last declined be

over Slide X had You In see And today have XXXX, XX timeframe integrated more dry QX flexible. have powder, built working it billion we is provide billion. We're dry more use year. the with on model on companies of that, our we today's has powder these markets when have course firm these invest stats We'll keep need. to aggressively on the entire deck. focused is investments diversified where cash more some the and and we're of our XX across take firm progress updated and you of the ensuring dislocation to than happy the expanded more priorities and sheet and and team together over your global, the this globally. to in on we balance to creatively more capital arises Also, and our into capital And of doubled questions is

you. Thank

one And just if Craig. could follow great. Sydney, work ask to through we one please question to just it's up If necessary, ask we make would everybody queue. That the be and our way sure

wonderful. Okay, Schorr Our with first ISI. Thank Instructions] Glenn [Operator question from you. Evercore comes

is line open. now Your

Thanks.

go in type at geographies, of a where second generation estate 'XX market terms all to three obviously, 'XX think all to scaling it or there? get for capital the on raises? Just the follow in for And be a looking Could to talk are opportunity to in up into. about are little you more terms broadly, real you tap having Thanks. able fund, in what to of a Scott's is these market huge then and big performance network first to comments you you distribution we're for of you in

and to years it's been in under of tried geographies our in new add for and those Most We strategies estate have say launched I'd very innings. itself launched year. last six strategies the new years platform every was our about business, estate to early business Glenn. continue interns. estate take two Thanks, real the three real or ago real we these still

answer the In the generation place the us of second equity to terms has in platform, And of strong seen performance both performance or part those across questions, we We've on in the to third Yes, really scale your question, the great. depending think our funds, of varies debt. entire terms network market. been your businesses. the and allow is first distribution

equity We we're think The US fund first and that business that. there we we'll in so to the really fund REPA created continue are second opportunistic our and time was over scale on fund that created in first and lot in Europe platform opportunistic capital the bigger our process of such can in be for time. a also are equity Asia. raising We've strategy an in

we interesting of and time bucket as is facing us in broadly could think at first opportunity that Core-Plus, be equity and starting defined. we're for to investors also the we strategies So opportunistic just other looking equity well. equity And an the side are opportunities growth like variety talk other over are to which those a about

in we're think but Europe So started US efforts and and too. the globalizing, about Asia it there to scale now taking we looking as to the and

In as of in equity a the don't real addition which happening to the business lot on part the about doing we're talk there's side, estate much. credit we what

KREF. through loan business that called REIT, side We the execute our we whole a which is have on mortgage largely today public

fund. in strategies And over too. the credit its raising have CMBS of also year which We call which real launching a we're this estate out second course business for is RECOP, B-Piece money we new

that So business of together, be we're managed all the in a for today. X or large can really billion performance with think large you when this some today pleased we we time, the so put multiple us and very very

great. much. Okay, Thanks very

you. Thank

comes Our Patrick Autonomous next Research. from Davitt question with

Your open. line is now

of on in capability? your remain if you. senior on we public think this hasn't going Thank do the The history? about impaired then markets think morning. the comfortable side. on that it's has the this, forward, outsized to I'm of market curious you Press departures, And fundraising week public relative growth number you as been last reporting over drivers a the Good particularly thoughts

is, answer upgrade promotions. very our And us we have - everything to always Hey Patrick, fact, critical Scott. been, occasion business really people always see will an believe don't to on for We're we read. natural you talent. meritocracy some for make short to healthy and and and it's departures a year-end in and say always in it's be entrepreneurial room it's I The place.

just you're approaching future. are which you as join, have as get context, put growing So and and retire have people - XXXX about figures others XX periodically, also it people but see leave. to going And partners XXX to employees promoted managing build and been directors of and new or we for see both we in about the

is, course the to the we got I the overreact a this bench healthy line feel wouldn't of ordinary like firm bottom firm view So and departures. couple a as all talent We've for really in deep and and about talent of a ours. great

you. Thank

Sure.

Thank you.

Blostein question following with Our from Goldman Sachs. Alexander comes

open. now is line Your

some the net just and maybe good balances versus so sheet X.X just morning of at some help so that's just moves came specifically the sort help Great. and mark quarter, bigger deployment XX.X. kind How total versus could where in I us zoning total declines was of the much you sort it hoping of credit the saw bridge of quarter-over-quarter mark kind call looking everybody. break guys was the of the from. balance decline, we sales and guess any Hey, sequentially I in Again, then the activity. versus business on of investment specifically,

on exiting down on write so just some from investments on at is I'll this amount a some just Alex, of but balance was in Page the depending X, a value to When reduction sheet of replaced, a that with some the basis, strategy, mark-to-market that question. were you're going you're in so see that activity looking again Bill. Hey, take is the portfolio. good

rebound that XX%. prepared report Data remarks, I So the stock have down when as it mentioned but for one basis a saw actually investments and price, Again, in First actually up balance we closing we're was we Data you is biggest First First based the XX%. we on Data, a sheet, look at of mark-to-market the on

business it had December so of don't want of value holders and we're on at. sellers for as with price you at valuations of intrinsic closed report actually do, volatility, an know reasons beauty we at the one we're see that why happy wouldn't as like is recovery time report We're anymore. still and our is we but which sell and much And wait the and to exits not prices we again sell we the on we're market book do in to we we XX going basis volatility, you yesterday so the ENI that

to As more on it When on in credit up. the at positions actually assets the quarterly you little particular, year you about on focus that. the were portfolio that you credit think to just but asked for a at relates those performance a when basis look sheet entire look marked take and balance a down, me those were

The income is, places Page good And I'll those so and X, might a the on a news reduction you rotated again value, we we exiting realized the balance is to roughly is of $XX want in of is portion and just about on last point just basis. see million investment assets. we exit. into balance a some other sales credit on from at that of actually The again that remember mention a you on net when when it look assets of some of take sheet gains sheet about mark-to-market had

settle a this could market challenging and markets the Obviously to Got I of then in really thanks very intermediate there's strong you hoping it, up stable capital in can a is backdrop. business capital in more at a was just talk transactions how time be mark, markets Again, around the ability how specifically quarter, results great, the performed follow your business. business my question and question December to dislocation.

December something So we was I there's if learn the from could activity? wondering

is Hey, Alex, Craig. this

it the a those to reflects about in whole business seen broadly But we've help thinking more about whole how in really the things. certainly stepping critical and the but then can growth much things. driven start least frame portion in back at and is that I reflects think a the one as just as event versus firm, so It the we of the the baseline the maybe of business reflects understand business think few growth Let's the in the that. that's than things a more

and by For global the equity revenues heavily our more It's and not a private much also KKR, it we've is revenues at were US, business, only at diversified. centric. it's at business meaningfully same contributor. it's of doing across really a it's private higher share capital and strategies, third-party and much, markets not first integrating that capital activity. point five not US a the just driven that the just And all this we're time, equity, real years, become Today everything are our capturing markets it's was just better

one business to then question events. your basis, of to the business might this and thinking quarter on revenue and you think there's next but how terms about lumpy of business and XX trailing profile, the a in if Now, added a baseline these the it frame month baseline that or larger be from to

events on exits, quarter deployments, typically touched surround Bill be as not these but and BMC. Now evidenced meaningful Envision as can by they this

magnitude So the these you try transactions our we of revenue. or XXXX, when a to look of little where help events, represented million fees total over earned that more frame half to $XX at of

over can for by quite quarter. amount of time. And be these to the any opportunity growing be revenue for then that that So there's activity, the that amount us events a additive baseline specific be line in there's supplemented should baseline to

hopefully that how frame the helps So about business. we think

on just market. capital little a numbers add on the more just color I'd

from breadth the give and our a the roughly a large idea revenue XXXX business markets capital to came quarter that of third and the the the outside and third-party - US during from in you economics think from came of of is again the the when breadth Just about XX% that and of number the very - business number XXX, in an you transactions with business, about over fourth

Thanks helpful. guys. Yes, that's very

Thank you.

Thank you. KBW. And Robert next our question is Lee, from

open. now Your line is

at kind the at I types [indiscernible] very around just morning, LPs fourth LPs how Good weeks asked. I'm just kind - start everyone. impacted get given concerns still questions whether curious, couple are second trends been trying not? I'm a just shifted process you multiple investing if by that wasn't kind but broadening or of that, or the appetite last in guess the mean, us perspective part the can or are to sense how whatnot? and may number events your in the maybe quarter not least of Thanks. it's expansion LP have the or you of thought update of certainly fourth maybe they're of if fundraising, I credit then their subtly your and and of And or curious of volatility their maybe also quarter LP I'm LPs Great. even base? kind are of the terms on up now seeing strategies pick of has

it's I'll that. Robert, Scott. Hey, Sure. take

LP a change. the seen On haven't appetite question, really

the that I going, so - seen weeks think the where that way people a was to reversal discussion. world there think there I far abated a but we've few has was kind this trying out were which or of just year figure question

I alternatives, the longer-term to bottom lower the take that broadly. they're the no we're a their view environment anything, today in line clients think we of real more If LPs less like going in hit you not order know, lot to targets. that And discussions return context, need So more in markets entering the around have dialogue. a feeling LP for a change general is perspective is and

and going and have elsewhere for got of main you alpha historically if alternatives find us. good that's is beta down, to go the kind as generator, So been think idea we is the

drops. so, We as percentage also for of too. overall increases think actually we're is market return, us premium The that's their a illiquidity able overall return the to and that generate meaningful

any not more date having to conversations So, if there's should doing we're some recognize anything, and change together. the has know, appetite LP that we you be seen they where even

selling know, the key of product. part are base, two to to you But LP continues products the be about average, only a be us. investor. investors on terms of We've our focus the got KKR than of more broadening we question we that each LPs for of precise, of XXX have to of strategic second today as one XX% importantly, in kind In

investors to So look we they if have, the tend at about X.X products. you largest average

investors So newer think in I opportunity we markets think about upside can everything We to in further that retail, continue number we've past metric penetrate we grow, the see can the think grow. cetera. we of et talked there's to material and cross continue just said. sovereign sell grow to across our insurance, And wealth,

Great, thank you.

you. Thank

Thank so much. you

Our with comes Jefferies. Gerry from next question O'Hara

line Your is now open.

helpful. - a little an picking thanks. you XXXX? outlook see how on And could course, well on and a us bit as demand give Great, as Maybe that be of for idea retail there there into update moment, perhaps of up you. to that Thank you will the appetite

Hey, Gerry, it's Craig.

got So, is we've several group. partner approaches here, first the within our and client

high spends talking individuals. to time and net family, worth dedicated that's and all offices team a have their We

approach So where families across a they're world strategies. direct of around us and investing working the that have with we're with we variety

also long have platform a list We relationships. of

products both net the platforms those direct force, so this worth third-party where piece. there's So bank's platform our of growing There's there's as a of again, global. And also been that's through high think their sell - sales component, nicely. are we'll

with will partners. also We work

what desire certainly a have we inside the not have only So to absolutely inside firm the needs be firm.

think the in focused just have better is And time we we FS the to beyond being BDCs. is expanse as a also best-in-class I with channel. example and a they're their thousands that out with opportunity to hundred admire that of than spend raising - have in much through capabilities a how people simply ever hundreds their set partners. of think that relates could work relationship funds few and it of just long-term And be. on at the individual for that built FS we investors probably the partnership of great I we lot

that we So for the think really I'd better. XX% in opportunity ago, XX% raised money we say, around And were opportunity is of do to think that of when as of quarter-in from this I starting where effort us we a quarter-out. the to years with FS, standing probably we think now particular six it's

or it, Great, of follow-up and thanks. apologies margin around for and a missed real kind the FRE et as you. a Thank cetera be of Bill outlook forward? maybe out And puts if perhaps estate for Asia with And in you give the kind of year? platform I could us where shook sense going might XQ investment the there the but in takes what then

take page to And look at take follow-up fee but I'll and roughly relates six, robust. about one, let look Scott it's are I'll you quite is second the at way define So those the when take earnings related fee it's first as a that the related on we when margins you a margin, earnings XX%.

of that will second yeah, the we've continuing in we years the revenues. Yeah, to to of to number maturity last three invest starting generate terms in in do got we over be a and reach that, but some we've investments as the five well, incremental growth growth question, made

think So from spending amount with fund pressure we the going the we on terms revenues - growth that be reason efforts. of expecting can the downward that newer significant a we're to in that believe we don't see a there's of with CapEx to

point. great, one And then Gerry, definitional it's final just

fees, –for fee you on approximately in the we If from those line the BDC XXXX, about year incentive look of of XXX had million that platform. XX incentive came

of incentive across that wanted is in the do we about think our FRE fees the as you I some of just definition platform, FRE when our apples-to-apples peers So so from include that to BDC define they think highlight not group. the again

my taking questions. Okay. Thanks for

Thank you.

you. Thank

Our Carrier from question of following America. with Bank comes Mike

line is open. now Your

Thanks. Good morning.

in maybe a much in versus X Given change those And It saw credit, Thanks. a with backdrop could color so credit, if the fundamentals you provide Bill has deployed some the any of still of better scare. deploy concerns the portfolio XQ billion mentioned, you think I in mark-to-market? in maybe the to the XQ a on little color opportunities? bit during market the you gotten

no, prior some several really in short the different I QX Hey, think, that quarters. no Mike, no, of which some nothing been I The in change fundamentals over And prior seeing is sectors, it's there's Scott. point revenue the versus QX, three growth materially would answer had yeah, in kind back is pull quarters. portfolio out in

of some and than recession at was to I that anxiety, forward a But So the a the to whether that I concerns a December. did sooner more credit end be think number we in did in don't getting lot And then liquid ended the markets later. a a private US think even the the bit is credit see especially there up our perspective anxious I markets, of to And tell couple the coming number in an year about that market was of to particularly the lean the quite for markets on weeks. we rather put of you side. pullback just disrupted overreaction extent a getting in would of to of seemed see opportunity a due

deals credit private standpoint, Some at especially is from long of process a a of we're in these deployment the seeing deals using model for time. And a just a of period we've with had to been really that lot what terms. the into find attractive our are larger and we less more lean that built partnership underwriting transactions where with larger now there's much we competition FS, and now ability

the busy continue difference we on large no end. So to be fundamental and

Okay. Thanks a lot.

you. Thank

Our next Katz Bill comes from with question Citigroup.

open. now is line Your

morning, Okay. question. Thank for very much taking you the Good everybody.

on think questions to year year? the define this on you performance and we of of that? how more versus try process pacing a great. Franklin trend incentive to Just versus two the fee that in in fees, get of rate sort way this about unusual performance the through I from more a there and of run the anything that's and So Square it for trying But just FRE, how is think me, appreciate the one by magnitude, is addition

on take I'll just XXX million, incentive at October question. and that When Bill, came from Wace overall Sure, the roughly for about clarifying that million Xst. XX you look when fees you the Marshall it, of think Wace, Marshall about are crystallized a point, was entire year fees incentive

on they're a year fiscal So basis.

quarter. that by as get you're driven and When through has number the actually mentioned, But so quarter that incentive $XX And is have that's fourth the fees and come to Franklin it's in Square BDCs, about going calculated you as are the you performance. every single think see back management the usually Craig - actually $XX.X actually you invested BDCs that it to and and the capital last between incentive capital fees. go that four on report why over fees Whereas committed if so number or million based we quarters, in from that anywhere million. know,

transaction fees CCT in $XX.X mind elevated. again Franklin fee that that is basis, million. were and prior number through BDCs want that So April, seen closed would is both you Square that the number, that capital managing pool, run from have from since in when anywhere a incentive $XX but been million now rate to actually we to and combined the between on CCT in just say I don't Keep that incentive but come also

follow-up authorization in very me think been capital of you terms I it's questions, you've a couple for both Okay, and left. million down and taking a then of helpful. management, from just your thanks And dollars just working have

address just growth given grow that sort policy just about if cap How of the [ph] sort and back? thinking maybe you committed at as of can wondering versus back, of earnings all the stepping in I the time business. in point you articulated are buy So the this your dividend capital Scott momentum maybe and few-related was return opportunities

Okay.

the number the back page is again, a or a so been just think in C buyback, we've together you of you magnitude market we to from buying October million. Xst been way in On XX, employees. remember, think that the Corp. quite actually see when either we've policy When dividend the the you our pretty and put January quarter press shares about we helpful actually refer all dividend, the shares been can $XXX to three is and which really went you table, to that's we've But through our canceling that change during that actually release, if see a we busy can

policy $X.XXX. We the And that just enacted stated was dividend so two quarters ago.

At much continues And what so grow and One in over just from that highlight that more that that when keep and other there management to you share take to is I that far shares of net fact extent the movement compared had historically time that wanted anytime a sheet, to X.XX% to we million. want X% shares the end I out concerned, is what to total wouldn't mind XX number X.X% issue this anywhere look it expected I did that outstanding. we soon. But just dividend the as between count, stable fees that and is of expect call grow, we the about compensation was to - communicate roughly to see our thing of grow. done we that only would issued revenue as on Bill, XXXX, million the continue the balance X continue business at basis to

trying is upon share would we what our policy that so said that based with our to share doing we're in quarter wouldn't are And what issuance employees we're to XXXX, allocation capital making we count sure commitment. our to make we and that change credit be fourth honor that that when was we the sure it make sure we regard

Okay. Thank you very much.

you. Thank

you. Thank

Ryan Devin comes JMP with from Securities. Our following question

now line open. is Your

Great. Good everyone. morning,

here. question First

elevated to similar sure expenses, Not at related, markets look full revenues, years that the of about ballpark follow quick quarter. if a when really bit year it's but that's X%. total a or in capital operating up at kind just Just given revenue a the elevated we prior in as on seasonal relative

and trying forward appropriate over just just how that's an to moving level the to of aggregate think growth level 'XX? think about in So the about also whether XXXX

Sure, Devin.

quarter all if right, in not in there was doing. regions ended infrastructure are investments happened we real of and data a and the that quarter elevated at several number, You fourth is it's the out demand three couple we you of the estate, across ran across fourth look what that private up equity

And of see in elevated so an broken deal you that number. level expenses

mentioned, quite and mandates, XX some up so show capital addition, syndication busy, which this on In expenses, markets, was as incurring elevated. we I up that's ended line actually

wouldn't quarter new So the rate means. on fourth the by run number as I any focus

we've and to quarter at reality you and got third we look the and that that three thing trying expense that when You other for said mention of closer we the should like we occupancy. G&A something a margin can basis; really strive plus. is is about probably XX% two one And were the you communicated, income base. is to is about One the we've streams see, what compensation other as think expense of to

was low would the the occupancy As little number down depending but in be about anywhere XX%, we've year communicated, the entire between X% X%, said to if G&A less the and XX%s compensation in and a you look, is and it was quarter roughly take on the about this we is, than quarter. XX%,

over this business, should in see improvement continue time. margin we As grow to that line you OpEx

some fourth drove Asia, slow slowing had And Got that some follow-up of US of I factors the quarter. was picture, of the volatility least because I at think then in growth or in least at all it. that pressured, in appreciate degree, kind that of the probably been you question one know, growth and perceptions the of just that color. valuations the to of kind is deployment bigger

you a cycle? there's are some are of the capital And I of are the looking excited economic you're the From a how things lot quite to versus of number shifting in that at kind about, is growth an economic guys of trying kind concern going of you're in end right what in that with, get extent slowdown what later or at, guys valuations the some kind risks some long-term of because opportunity short defined potential more that also that we really the to come deployed that know always think timing just the to considerations, the you term. think kind cycle. but could in of attractive perspective, So of about today, the Asia, balancing are balancing know, I you

levels a think, me as Craig, let this two Yeah, equity and of and relates highlight a speak lens. private Devin, we'd it's I really, minute, very on things activity spend just briefly to then geographically can is the through

the and leaning two things, our look the first you complexity. activity, think at you see is investment when see into - really I us you

help So some where opportunities these cases an we're bear in really bring reposition or expertise even can those to on either operational our focused we investment investments. and restructure

complicated. is talked transaction, complexity. be improvement the that. have probably complicated, are some very about that together focused of is certainly what operational quarter there's going carve team the more Unilever are carve we these, complicated developed in Envision just a so again, global with management of last global may this And opportunity in in mainframe operates evaluated business, and it a again, examples even outs we industry, And like even both investment outs to series had an of that in lot a BMC executing instance industry and complexity It's, initiatives on with on we're an markets. of be undeveloped terms where and

improvements, So, operational the thing. and first complexity that's

I think activity healthcare see defensive sector. really as that you as, in the our we thing more view is, more is - being that second defensive a

GDP. additional acquisition brands investment XX American WebMD, Air BrightSpring. of Response. Internet the It's healthcare spending were company last pending you a formed with and a accounts transaction think with it's called So around in Envision, a as more Nature's broadly, we quarter, equity Bounty, the Medical if we've acquired again, an announced of certainly market, so, We partnership In PharMerica. include Medical enormous this US, been PharMerica months for to or fragmented Walgreens it's a and active. would acquired US over investments, XX% growing, acquired private acquire There's

cancer Genesis in I get of Europe, think SinoCare and of our again, in and just Healthcare, a limited the is So that one PetVet acquired investment Heartland all company you cardiac think been. again, Australia dental core. I private called we We've you providers China, our in activity so XXXX, of Activities in how a we helps when again, us. QX, largest level a to limited company it's US, in not It's the give for also have QX. a core busy in strategy just of of called within not is the a that care team's equity, pending of sense created sense in sector to

sectors the geographies by of where think us in I for going that are terms certainly profile, of the companies accurate us Not we but what are every broadly. know, from So going broadly defensive. area are, emphasis to you've investments Americas, this in be in fit to going you seen more and I think

you're an for XXXX was pretty and deployment healthy. year active us our here right, backlog actually is Asia,

Our for busy. also is more been And number exciting of investments, conglomerate team we're carve China seeing us. in We've a opportunities. control-oriented seeing greater which is and out

unique a expanded like feels competitive, businesses. those it companies and sell China in environment have So have to found some are rationalize considering its now whether and

most broadly, for disciplined seeing us. and we're interesting being Europe, in And dislocation given specifically. in UK the But that's So valuations. we are

So hopefully where we're sense gives that, again, active. you a of

that investments need The only is of have pullback. we some through we've been hold economic been color assuming that we I'd add, an kind for that will making, three, Devin, the years, investing to the last four

be been recession how pricing get the period, we're in out look multiple you of we if assuming we've at that largely assets the of whole in in. than our get where some So to going we there's form lower assuming US,

and of been pricing of environment we've kind for while. that's coming So a the in

terms dry fact a XX really long powder ride got would But really have to not we sheet. a we're closer given of balance it, us. at We've new extent been how liquid third-party of we've So for assets of high a anyway. kind it's through we level, the hold we to mean, assuming to have that capital billion I in

can teams and special markets, dislocation work and infrastructure, where complexity more everybody at flexibility integrated disposal We tools our distress our the find our are it. and their equity, the we and to in situations real use we vehicles so alongside have all even getting together colleagues, private invest into estate, private

point, are And of way. the lot coming we Asia have can So opportunity a quite re-pricing. our actually that already seen in your upbeat be Europe of terms that to and

detail. appreciate the really guys. will I Yeah, Thanks, all

you. Thank

much. Thank you so

Our from Chris next with Fargo. comes Wells Harris question

line is open. Your now

Hey, thanks, guys.

of on being E&P - at us here at slide things detail X% performance XX%. business investment that information down but good one index really - look jumps I lot energy the while a was out when there's up S&P the So of four, your is the

and really bit level of year to industry? that you how what discuss was little challenging So achieve and you elaborate guys outperformance a about it can that able are for

Hey, the Craig. Thanks Chris, this question. is for

out we'll term of and are where have healthy most that in midst instance, And the with the hedge production. of those within know, a partnership, strategy, your very assets, team. been us percentage the to for in growth energy management interesting non-core know, near type of very decline in a curve strong you obviously, income opportunities acquiring, investments investments the You you're so

gas hedged So, two, years those the of number vast majority first will or out over years, of investments three natural crude the have whether of production. it's

us be the a have insulated. that for more to allows we valuations So to, lot

- you're But QX, were saw much include as and you if something it's and at natural gas to really production. that less there crude index. gas relative contributor action downdraft the program natural it relates a is hedging you So that look like pretty that you and though a meaningful see prices right, that to split equally in real was commodity prices between E&P

should good. thinking very a year? we Okay, Bill, follow rate how for tax for this about And up be the Bill. Hey, quick

step to got in goodwill. our roughly was up and in to but We we able have about fourth we you we look made C-Corp, the Yeah, quarter conversion take the also assets an very a the time quarter, tax that X%, the percentage X%. made to last was When fortunate all a XX%. a at question. was that's our to communicated rate in when it amortize we're good when enough said were you election, And we big

come that we so said years. benefit And next the would over to five fruition

the on X% down. roughly mind sold, federal minimal, which out, drove one years going very rule is the why step it XX% reason The escalate simple thumb rate level. it's never was And actually the of rate really is be the quarter a be the predict tax tax six was to up going the a you year-to-year assume to five, that gotten to and quarter-to-quarter. quarter. it it assets at rate that down what it's is paid was taxes of hard this that So will large our that But corporate should when

So, along we the modeling XX% keep between the extent a punch anywhere mentioned, for XXXX. tax line is, And something updated of you changes. you will rate should XXXX for in purposes, sorry, the as we - XX%, probably way that to use

Great, you. thank

you. Thank

you. Thank

Our next Stanley. question comes from with Morgan Michael Cyprys

is line open. Your now

on to hoping in you'd and that Hey, could us six to you an just expect the funds we expect any that you good for about last quarter pipeline. be you I fundraising color how in have think for the morning, which I market update know give And XXXX? should are on funds mentioned the market believe those sizing? XXXX

AUM average one is European are just our points. to US week have as this private - CLO we impact, so equity equity growth, then invested just fundraising business, at we same coming a year, as weeks. is on the hedge management At raising price an roughly of the currently real funds capitals the strategies fund the me Craig, in fee again, will XX partnerships. US on BDCs let there over become we're or rate leverage basis areas the initiatives, a two and European and of fundraising out fundraising We're ago, would we current over to that of of CLO credit review continuous more for estate. capital growth of our strategy We're energy, in basis Mike, expected include Asian credit as an in a across the there the well paying finally, for are and additional Europe billion [ph] fundraising and credit turned strategy. look be launched to in fee time, that weighted mentioned, platforms the capital a strategies raise where And for our just tying XXX the the

all together is that put our team busy. our is you and fundraising - fundraising team think I So

just you're talk you're see Thanks. growth expansion growth, and out do question, back Great, thinking across expansion just more little the about countries up most just countries out, business thanks a to a color the hoping of Asia, are for in guys bit bit the the how different. around targeting could an there. approaching could as you Asia, if to about the you and different be little a flush area approaching And flush of in distribution kind if follow you you which understanding could for circling how bit a

Hey, Michael, it's Scott.

to the So, of Asia I'd different couple aspects story. say the

strategies as non-private for we on and is, businesses building First mentioned, been activity the there ongoing dedicated creating some focus what investment already. equity the has

had eight Asia, people just have ground offices give we for today you So a a but XXX in and platform and on approach. sense the the footprint, very we integrated

teams have the we throughout country So region.

so equity building we integrated equity And our way alongside in colleagues. very is what in businesses are doing with their private non-private a

little so of on which credit. of kind the interesting those And of on focused most that a in some hires been scaling is parts depends about. real kind with really strategies a And the you've areas. are focus in And we've infrastructure, we're which the as estate talking what and answer to making of region seen, region now bit we're on the

and parts infrastructure more and perhaps a credit Asia see of more of kind Southeast more opportunities real in Asia Australia the we market, kind estate opportunities the North As for mix. of is in

In busy opportunity and equity us for areas overtime. seeing side been Japan a we also and we estate opportunity of think terms more we're do there's non-core too. to subsidiaries. even equity buy the for we've Asia, continuing wave see in recently in lot like of efforts on continue to where to overall is there Japan significant In We in particular, think gaining real the and that growth private in pace private

world new many strategy or of around not in investors equity alternative are really under our Asia. there Asia terms story. for is just finding these of strategies, Asia and distribution Asia distribution of distribution one fact so it all allocated not all In and in a non-private providers to global that the our an is approach We're

relative players. So estate, about doing we that we're things of when landscape there's the we're real competitive talking Europe, what terms equity private credit, fewer and in just infrastructure, the them to in to see US

in that global distribute. products a have others, using ground the but the focused money team these raising on we course on of and Asia team we're to and we're So

color. your appreciate I much. so thanks Great,

you. Thank

you. Thank

We Autonomous from a have with Patrick up Research. follow Davitt question

open. Your line is now

If your please line mute, is on unmute.

you. Thank sorry. Hey,

Sorry, think then Do are FTC there achievable are go look are current expectations the still back well It closes? vein shares and as completed that carrier the consensus above along. looks on we more be that's like markets once second good you restrictions your and morning. announced in up open now into the as realized your share and we obviously stuff guide more that the any Pfizer and half, selling there'll

even you the second the we end Patrick, today. we much of of as looks to quarter. know project the Well, half what year the second could never information We're going give not mind as only like,

we've so signed additions And close. got gotten the based we've what gotten and closed we've yet upon now, what communicated and right to visibility we've signed and and

but as time certainly exited, we there. time attracted And market to again, to is the previously prices those good about expect one it earlier, on we the private have, about we if value around look there stock model remaining XX% on be, roughly anything that exits do is future and security, rebound the enough us what so I to to would where is to you even the that of in our that So think see when public already a get will again about wouldn't public our typically the you levels would equity, at securities you the is quite thing want and we extent I to expectations said comment appropriately. public in market when continue get so

on restrictions there are shares And Pfizer it the once closes?

month restriction. over there closes the But to only this that's I'd a three year, be activity shares, lock that Patrick, any the contractual we the on we'll transaction so wouldn't year. half say I close up the the expect is but of this about second in long-term, but Once the transaction expect talking

Thank you.

Thank you.

you. Thank

up follow question Robert another have Lee. from We

now open. Your line is

or year. up. thank of I have the of XX of numbers, that fees, of several that pipeline big about the BDC earned guys, to XX have so Maybe back management of changed assets? billion, the leverage forgot incremental next be for on forward of going could some there? how potential dry of leverage - other XXX years XX of incremental just you adopted pockets, change pocket management thought how rules pretty platform about my fees, a But powder, this over is billion of now potential potentially just shortly what taking rules million What call fees in the you obviously Great, from it effective it you any and you kind kind billion you XX% - follow example, going almost for

expect we've the growth, and few with asset more importantly coming with But Craig to fee management fees. as you our capital make over call do growth that three, this the AUM the we Nothing to should paying we follow raise challenge turn in Bill. years. to you to so going and certainly the alternative continue that's we fees increase in that if have clear and years capital an and for what want the out to that got, and remember business, on this is is space, online, next capital two, AUM specifically, growth the Rob, more earlier as hopefully four the XX did mentioned bring billion relates past Hey, over probably management

BDC pipeline, the them we'll strategy. on leverage team the speak themselves let there's we'll management their for right, for articulate But those let Rob, and latent entity call but there. you're Yeah potential their

was That taking question. it. my Thanks for

you. Thank

to Thank you. to now speakers remarks. the no closing this back turn at I would like call questions further for I'm your showing time. any

of everybody quarter. Sydney us. the you, and on follow Thank thank Please you with anything us joining Okay, Thanks for course as great. again. you reflect

may great conference. day. thank does for Everyone gentlemen, program and disconnect. the you Ladies and you participating in a today's This all conclude have