KKR & Co. (KKR) 30 Oct 202020 Q3 Earnings call transcript

Welcome to the KKR's Third Quarter 2020 Earnings Conference Call.

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

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

everybody to morning XXXX third good call. earnings you, and our welcome quarter Thank Scott Co-President Nuttall, also by joined I'm our Lewin CFO. by and our Rob and Co-COO; non-GAAP that We'd remind figures KKR.com. the in which are we'll Investor measures release, GAAP on press available be reconciled like to the everyone refer is to our Center which call, at to on section cautionary our or forward-looking related for This do events please which statements. contain these factors future statements, performance, call SEC refer to will guarantee not so filings to And on like of be over quarters, supplementary previous we've also course our referring a posted the the deck we'll call. website that to We've many ways all globe. in and the experienced disruption in XXXX volatility across

and strong everyone continued to we that our safe performance hope this KKR, So is to all quarter, really we've metrics. healthy. of our But across see and continue results in of terms

to of our Page X key Turning are our performing metrics that to you nicely. supplement can see begin,

assets hand top a Looking came hand see year at from fees can capital corner left as $XXX $X.X upper ago. increase chart XX in the XX% deployment the the the in And part past by our as fundraising months under representing XX% of management hand continued, at to by you and management billion, a momentum right page, the grew of right billion.

share. Looking at the bottom value see our left, per you can book

hand year quarter. see finally the value is per increase the is strong In our ago. a $XX.XX, by this distributable broadly and meaningful This grew you as right XX%, on earnings. more from share up per after-tax book So from And $XX.XX bottom of third up a quarter, share side, investment performance. XX% $XX.XX the X/XX,

are of in a And approximately essentially flat million terms quarter. up quarter, $X.XX figures despite XX% Both year basis. at of in last from figure tax compared the is on $XXX a XX of our months $X.X billion to from last volatility came these ago. all this results after First, we per DE, share endured, the reported or the which over of looking we've DE

million. quarter same were British Pfizer. income with Epicor, Total is e-commerce came income. over at Hut Moving the activity a which slide. of as the third QX at Notable $XXX quarter, our revenues investment $XXX the walk $XXX over a supplement, quarter the for exits firm, significantly monetization fees the in of up course the IV, capital realized on hand that XX% million, by quarter of this increased please costs. most the its XX% Realized in transaction done entered In X sold, quarter. let's of Group, a Page up through to last in year, firm XI, from were times North at to with included Transaction ago. we a We on our turn the blended part monetization summary the Management given software to strong million $XXX this left totaled as year financials well deployment subsequently the investment and quarter, quarter. the of Fund in driven million, dividend America of Asia saw and which secondary of which quarter billion million we fees markets had here period IPO $X.X performance basis, breadth fees activities and a and within three recapitalization coming the $XXX to

compensation equity XX%. which quarter. our to margin expenses our Turning for million. expenses to total comp expenses brings Non-compensation Compensation operating based $XXX including were were the million, $XX

that, share. to $XXX million it earnings distributable like with over $X.XX or Rob. then operating with And increased of turn XX% to I'd Our margin per after to the tax

focusing by last past nine Craig. the quarter, morning, some the start of believe on start good with on our over X, model clearly teams. market of results right high And volatility business We've lot, to we XXXX. global both three the Similar everyone. in our want hand of performance. And by a year-to-date Thanks to off I months experienced initially highlight Page and resilience our major focusing revenue. the level side going execution drivers our I'm of our to

our this XX% management First, fees are year. up

environments continued with billion Our through realize to bringing year-to-date. realized under balance to $X And carry our is realized strong, finally, ability market just to different perform also fees performance our remained sheet through months our up X% stream to X% this year. our the demonstrate are first performance. contribution continuing income revenue revenues the aggregate, nine of important of investment financial In the up towards overall

margin expenses, the remained XX% compensation Moving through at year. through our has

year, expense terms expenses investments together across with very have despite occupancy obviously with management we have other our of in the travel limited office been this our expenses, related benefited In meaningful of XXXX, year. some period down expenses operating this last and non-compensation from compared and platform. making prudent Year-to-date, to deliberately X%, amount related are

As operating a margins X%. our XXX are points, total up result, basis up while earnings are operating distributable our

per capital Switching compares Atlantic QX, in the generating in XXXX, burden us our which our same has period in the financing after to nine to more does with which per after future same of set raised in for we On really XX% basis, in advance raised $X.XX the months acquisition. the DE capital raising. It XXXX. associated favorably have already nicely we in than started year-to-date to completed our we up revenue tax period have share tax related a note DE to for important that ended $X.XX share the In here, is of addition, Global September to XXXX, growth.

real for performance Page a has largely four, which us been Moving strength this to on year. investment

down returned our leverage LTM In respectively of X% was over period. credit, the in a and funds real is very which past months, by over up credit, positive X% largest and estate credit up returned LTM. infrastructure credit Alternative period. X% our is the had XX% the X% equity and QX, quarter, private was and businesses strategies AUM, quarter, flagship the we over XX% in XX Our same X% up that and

and credit which has had of strategies, solid credit marks are portfolio, LTM. private some alternative our Our performance our taken numbers a distressed performing which combination

X, Page discussing a it benchmark performance. was our to minute PE we worth specifically Turning thought spending

As equity outperforming performance flagship part in geographies, a market construction, funds are you see, on our all is This like seen XXXX. can in benchmark by private portfolio since our meaningfully bifurcated we basis. the really indices have their especially in across a inception one generated

underweight also some and ecommerce, choosing are sectors, on investments hit of large with focus have a data, a harder importantly We technology, to exposure in to the while digitalization.

a additional performance. increase Consistent sheet. provides across to value has our some our Asia the balance from relative XX% book our per detail Our XX. on Page weighting X $XX.XX, to benefited with performance June increased firm, also share representing the

$X.X January, program. as million Also Our visibility majority months returned QX, volatility highlighting our activity in portfolio carry. The now, we for from activity in average weighted of total sheet it program future end the occurred price $XX share. to this and leaned and of to the price at the first XX% buyback In sheet, our stock providing we've stock we've the we buyback it levels price balance used billion per of announced our our in $XXX quarter, per a this our year, of buyback XX% into Since excess and With here. the investment we value of just increased retire about average book of under under at year. balance $XX over it's an since shares additional feel repurchased the balance our first is, at good relates activity today used where share. $XX four net just XXXX, our carry as accrued worth

fundraising. to Turning

driven totaled New as across estate markets equity. U.S. across strategy, as raised strategies private Asia, estate, in by private infrastructure, our real the in capital $X.X three in fundraising and billion real quarter well

private and Additionally, related we capital raised credit. to leverage

standpoint New on investment $XX $XX as of a point have in continues from powder, a fundraise importantly record the further paying in of $XX billion We up year-to-date to period will to for of billion raised July. which it capital progress. is capital Asia I billion attributed capital a high raised sets entered Asia us AUM $XX it The us. with IV, as quarter, updates billion with dry its provide over fee of this IV that now billion $XX was

market As discussed have we dislocated. did the lean was prior on when in calls, we really

this dry particularly capital the is of powder given So investment noteworthy level made year-to-date. we have

more in transactions announced the focusing specifically, quarter which deployment spring private were closed. two Now record this market more on In Europe, during entered with in and largely heightened a was had core early the billion investments into business summer. previously $X.X PE investment dislocation that our deployed, markets

P which Asia And update items to related We of across opportunities couple billion and continued financings investment completed two number Our acquisition. of Europe various investments to our of a a will sectors preferred infrastructure proceeds compelling finally, $X.XX Asia. in Atlantic. Global convertible closed, team And stock. be we GI. of the the to on issued an August, used fund In including mandatory find in the quarter

on work the in senior basis if also notes earning of coupon. reported the offering with distributable offering, $XXX at subsequent will mandatory And converted issued see been we the X.X% team Behind You release closing. GA convertible our a scenes, is this hard on to has earnings XX-year as that basis. a a million at

an incremental to in July, block we team's $X two for confidence of GA's assets. GA the announcement in adding KKR pipeline Following have acquisition billion quite execute. the transactions transactions, completed similar reinsurance of active, and is Notably, ability

hand to Scott. inorganic strong We growth. continue here really and both see to that, over me for it organic with And let opportunities

everyone Thank today. our you you, call Rob. And thank joining for

and All are KKR and families safe your hope you of healthy. at us happy,

numbers themselves speak quarter. for this Our

handful my thought going I are highlight. seat, brief. of there be I'm to a So things I would From

invested has year committed world lean We strategies. to billion so our we off. prepared around dislocation and into and and spring, into paid have were the the $XX far preparedness this across First, coming

upside has investment the performance more in from strong. been we here. portfolio see Second, And

$XX strategies Fourth, three combination over we over win. more our we the we has have Third, market of In multiple AUM billion. our the model with have is working in markets coming other or and ways balance momentum raised XX flagship funds three first to sheet to And fundraising quarters, and months. next continued. have capital XX

to Global but to has had for we're And the take grow track. And have larger your always be that, with we winning year, ahead than as shine with resilience and at One is We to ways will It heard is silver an lining acquisition busy in been has multiple through. us. year Rob, a we fifth, of happy marketplace, have here. closing opportunity that on And a Atlantic been from is anticipated our of you more questions. the GA model felt this lot from resilient.

from William is question first Katz with Our Citi. Instructions] [Operator

taking Thank you for very much the question.

us think update sort to commentary. of step on bit and I your transaction? under guys some management Global little guys it walk answer Vista your maybe of sort see in as wondering a around your of this of another just economics back the quarter fee quarter sort rather to outsized and given belt, sort of you just Scott of up want it prepared But you you Atlantic commentary the

Sure, thanks a lot, Bill.

to management we'll our additional top we growth on expectation plus is growth. be management believe little here. We management Atlantic. On while that our expect able So is of fee that million view XXX percent nothing of there Global fee generate has to bit would from changed net an a XX communicated plus we back in generate that from that, fee

able so, achieve to continue And say being convicted to be on I'd we that.

there perspective? of harder with allocations kind sort or part of in next a week. will change more follow-up taxation. just and little sort a relative How the appeal from extent to interest that maybe is bit the How economics might either administrative line bottom that might carried a a then be impact the any But today. extent just there of picture, And And the comp alternatives kind a institutional broadly? to is the shift of big influence or any franchise Okay. that unanswerable the of

but And all changes any at we all us of for know that a new the or as that firm bit the an that the distributable revenue Sure, and taxed you carried into than earnings won't interest of the at so achieved same. taxation impact same so tax up on as income, our comes of other C-Corp around to a it rate. relates have statutory had little tax any our benefit that, conversion, rate step at statutory is kind we our from the forms

it’s And Bill, the of just parts your on other question Scott.

regardless and it impact on the no think respect do with of to tax interest code lot not the will exempts in happens we So in Remember the We how our code any DE, of grow. standpoint. with invest have alternatives us compensation tax impact. an no on from the and or to tax expect to what impact that about a people believe we fundraising a change continue

with next from Schorr Glenn Evercore. is Our question

very biggest bit outlook we versus credit, much, on more little you landscape? see piece. time, could more importantly distressed every fund dislocation keep happens wonder more for it tie on stimulus in a curious outlook in the Thanks is the if Thanks permanent impairments every about could and to in comes what a much. so distress. maybe what's Because the there the as thinking time you but good you performance you the book and talk not mentioned stress I'm temporary is and But that alternative going

this Yes, views well. thanks here sure will have and start Rob, I'm the is Glenn, a as I'll question some lot Scott for

punch that raised X-week already have either several strategy. capital $X.X that $X our and And you we've I assets shifted committed our resources committed have that and on strategy. some or a bit months portfolio through continue our of know XX% view first of that dislocation little we opportunity an strategy on the period fund number of and already. think an of spring, also hit in favorably. we of north to marks you deployed billion a billion to quite taken the is number oriented distressed fund line to a north And of We fund LTM of as this, distressed basis in we

those And a some that's diverted us and for so, activities. opportunity, the team it's big on think be we why we've of focused to

a of - Glenn. couple just on Yes, thoughts, add

first, those the back. a of marks think come we So are good feel underlying going about to bunch portfolio, we

terms LTM it's at means is and is how together dragging of look to deck our that $X.X period, Sits in important business. what's that $XX credit is shows in of you which II the fund, value in kind of when that the mind that that page Secondly, keep its page the fair the billion of billion convention down number put Special all

is and perform. a continues credit perspective the our time that come - of part going So very is business a lot as and overall of to to it's back small over whole a

opportunity, going be We to to perhaps that think is They there going and we to nimble to do kind that's but to to classes. as your capital of question. deploy dislocation it's what flexible how market asset I be really require and think incentive invest a continue opportunity raised is to you why the an ability to vehicles. point across vehicle, interesting have your

of quickly We've credit but investments corporate So some we're distressed, in able traditional markets, not actually and you only traded to got monetized. investing estate credit, to move real there. made the be we early already

first about continue to scale platform quickly. expect it. how So to then you thinking that's Its we're - control dislocation being able distress, should it I move But just time. for control is us over think to that just

from with Our Alex Blostein is next Sachs. Goldman question

morning, thanks, and deployment Thanks could I everybody. hoping was fundraising the the both have on markets good that bit talk you might a question. the Great about the implications little and dynamics capital business. for

over I looks kind data So the the and a deployment, hard I of European we what XX fees we And have lumpy terms sort the it deployment of next and ultimately or the online. and but predict, how think both of guess up the fund the infra does kind revenues next up? So of for some of America been quite what in given coming those for I really just public the see, guess perspective, guys guess to of transaction secondly, that Thanks. guess when from next should just fund months? of outlook albeit trajectory XX, timing could I from fundraising then and you pipeline North come active pipeline, mean strong the could strong about

I to Rob part and deployment, Scott a Craig, why don't it and as and want there it's then may as well as fundraising beginning Alex, relates then on. add answer to give

think markets from deployment you're Rob, was it healthy a been us as really to third a period busy in quarter private relates as heard I particular for figure in really it's for us. right the you

things. I growing think overall that the reflects platforms reflects dislocation a number the the for One, had of to in certainly year. us also lean that we into decisions earlier

in that we that in in transactions Asia. the announced And As the mentioned, activity Rob QX, breadth our closed geographic think the spring. I were presence see, have thing that had the reflects you in third reflects largely

wise business localized in very as a deployment well Asia as remember, you'll as equity Asia. was in a within geography busiest run quarter us year-to-date. PE do the And private for in model we

helpful I So relates it is us, track. that the relates very it as - I things do as main and approach as sourcing to that are it on is think dynamic opportunities. for executing to fundraising think

to in Asia flagship layer And So the the us you addition our plus relates equity it strategies. for the continued additional to XX three for additional on funds strategy. then when as, fundraising private

look time of we And for is think market first is we us. strategies our pace important As us. that forward, see for I coming only on that XX% to those everything in

I we as do predecessors and are think, it relates that performing real as deployment dynamic. have that think relates to I to So benefits it maturation. overall

correct relates But try we're overall the pace. forward. that if of the things it anything on to things we can more message as One reward, overall timing that that finding move risk deployment the accelerated is one as that is attractive think and

it's on. a to points maybe Rob Alex, couple add of

a we're it's Europe and Americas, our private a up to third, at Asia a of third, equity in a wind the third, breadth terms actually deployment, likely geographic where we've In in from to of deployment. perspective, as terms of year close the looked

And global it opportunities that's Then, diversification to the us of a that have as helped able this second and different be really on part basis. to your geographic relates in of so into really can terms impact breadth fees. question, has on transaction lean the

investment, remains the couple for XXXX. course, healthy a remainder in Our pipeline year the of months left of we got

our the to might slip of some QX. deals And in pipeline

robust predict quarters, certainly coming little figures a out. quarter, year-to-date similar levels fees deployment play see hard have those transaction helped a our over continues bit to on deployment a the to for if it's of but should level fees And be our the basis. So transaction then you our

Our next is Jeremy from Barclays. question Campbell with

quick to I relative the the fee Just point Atlantic Global clarification you before question, of plus opportunity ask revenue summertime. $XXX the million back guys highlighted from in

were Just that? into to these curious if baked that block or deals recent incremental

The to they're answer short Jeremy incremental is that.

And then, the I envision and what the summer flow Atlantic. like? organic you typical growth maybe bigger and is looks organic algorithm forward between Global you slide going Can on picture deck like guess growth the inorganic I $X blocks? think something remind billion, how then us

take Yes Jeremy, that. sure it’s Scott, I'll

I Global to in way think Atlantic, is So, multiple is view, it ways our to grow. about just the think

So There that relationships have they of could with in broker somewhat thought of suppose. are and over dealers. organic predictable. that and although the it is it's where as a be banks recurring and XXX lot I there fairly institutional aspects retail really is organic of business the or business is There

blocks risk top last stream referenced, business. been on that counterparties. got flow very that, the that reinsurance And these actually over steady there although you for are that’s very There consistent in number pension with For like, several have a they the a then and transaction business of the is a transfer example, of they arrangements reinsurance flow years. you've

and is grow third, from then group which other there opportunities institutional together, call business. So what acquisitions to done - we the the there they've truly And potential is inorganic. of is that companies,

from As of steady see and from quite slide by that you company institutional time. very pace has grown deck approach can a really retail the July, the virtue over and significantly

terms hopefully, to capital access the with help of, addition our and returns. of I investment in think

over attractive to noted, to be Our se, what see to We're going we're And but than we retail because can to so along but as better you do the a the keep happy share per we'll expect on continue larger time. expectation at far. expected, is the top of than with out that you've closing are partially put thought the forecast we growth we had growth. seeing you we're blocks channel that, updated we has organic on way. been frankly And not

Davitt next with Our Research. Patrick from question Autonomous is

You mentioned looks which the Epicor fairly punchy. sale

of the carry So right us could of an and announced sits income now? investment kind you give just update pipeline it as on

Yes I in was QX, in just a sure, mentioned hi Craig - was could to announced it's to And which dividend in that the question. clarify, Rob. Patrick sale lead your for closing that QX, Epicor

performance balance to sight than as QX it we and of now revenue got line that relates of million more on. So revenue, we've as sheet have $XXX of

so we already is are close as deals already that or from And been to expect booked that been incentive crystallized. and signed closed fee have this up from as have well

direction, only things last but And were line hopefully, quarter. to in one quarter. number, break this to little and at November north of have is which into so, we'll bit similar XXX, sales of by right our where our we that we're now, a month XXX elevate point the And December some

Mike from with of America. is Bank question Carrier next Our

question. the taking for Thanks

across the of given strength obviously economic we on of the look broad different the performance on some color pretty wanted what at you're equity, seeing just activity, maybe obviously was side it the regions, But difference. because kind maybe private given Just when in it's industries get pretty to start some based.

color So is just of and looks? - terms as Thanks. this drivers it based the broad in any what

and it’s I Why don't start Craig. may Scott add Mike in.

from have think have seen Obviously, real that, specific tailwinds companies that given in troubled impacts the that on in areas flip you are the we I strength in real seen think I side, or see situation answers have COVID. focused so, from businesses been are really COVID. sectors

the a we positions and several the health result had So think related of themes, of better that's ecommerce, conviction given those were and around housing And that. as gaming, mobile wellness I we've themes, software, that like. gaming,

the worth, that, And as business should the for again performance COVID across you really as large recovered focus helped. in recent I seen And think see a Asia And what in so our helped spring, that year. is geographic again us we've states statistics European Asia the as mentioning it currently, in economies learn that's part it's economies U.S. help these most first. countries. trends spike as It in Asian across we've seen the in haven't the and it several of

only the put Mike, some around numbers that. add, just thing Yes I'd

So the that give themes you about point just durability. portfolio And themes. the to Craig's years been have development to those actually a And of accelerated we has a last sense - the it focused on the pandemic of really think construction. number we've long-term for that is fact investment probably that several

big your underweight. why The dramatically the is impacted. you're sector seeing the to So been performance meaningfully question, answer has part most of we've

even a if It's So total exposure, total side. real you sum retail small of within of and hotel aggregate, X% leisure, our in estate. about it's very a hotels the and energy, piece

little to all Where we the XX%. point that's very telecom been had from been markets, a can the media more story. – And bifurcated we really we've most to exposed have it's Craig's So tech exposure been tell has impacted sectors.

or So our been, had Asia a and then so. total about portfolio exposure, we've PE XX% third where our has of

around portfolio is answer think just the really these and leading into are themes construction, we being that So accelerated.

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

of sheet addition allocations clearly pandemic. changed so the the global kind runs balance and of certainly of is sort with there My allocation the question is that

a of think if coming now? past, across an I insurance post on mix But assets in talked the can really perhaps you're you about kind that's the asset diversifying that the update classes. us you into right how give or exposure about even focus thinking

the for Thanks Rob. question. it's Gerry,

And it's so really be [indiscernible] table, operating going to businesses. our investment our are per the to single asset operating our KKR’s balance of sheet, in it's like se a other investment show since in Global consolidated largest going not up

release. diversification it chart holdings about a equity show that, earnings does growth look our exposure, – about little terms In private of exposure of core the north we've a today in inside our private our balance XX% that XX% you on to bit while equity, meaningful exposure, got of at portfolio of of equity. growing it’s And sheet

so, of to-date. on want our around how a And from greater balance these dramatic sheet our and changes have to do assets wouldn't expect, we've allocated to exposure I we certainly balance types sheet, here

question is Chris from with next Kotowski Oppenheimer. Our

I'm I thank know numbers Yes, good level equal. a five sheet of morning realized And normally, four were And bounce around your quarter, times carry is to realized trying that more from of wondering, why I was expect in quarters? figure – where But quite that that is see came did a the just is? bit. balance like towards coming to out kind these and almost we should realizations this they that And shift you. the or gains.

question. that's fundamental a the think No, Chris, for don't thanks shift. Hey, I

sheet towards one the Group, in we through balance looking our while our that and had meaningful weighted just across our time, I certainly realization was – think balance it broader quarter Hut invested platform, stake that's sheet. was

the not continues would near compounding At one trend sheet expect term in balance this at that the to in the our is in And necessarily basis. forward so, go a least nature on into future. to going as some a point be evolution time I be in

As the of sort say compounding for that's cash mature is our in the profile a stage where foreseeable next from that I that one future. time, to generating here will cash. point of sheet balance meaningfully generating But balance that moving growth more to it's over of the we've would is that sheet evolution completed, compounded

sheet I think the expectation income. to would continue to gains be it carried – elevated balance be

great. Okay,

it's in addition – both a quarter items always is so we've were and would the ways think we I right – to think talked quarter sheet capital great And very multiple resilient. win this me That’s we and where contributed this performance felt always income to quarter add while it's DE significant investment we markets had a And you're saw value book examples. those compounding. model segment how about have to I was wonderfully strong still I business like think balance a really

Yes if and also it. was discuss curious, then can you I

odd exit front is of Just to recap sale a would kind dividend are dividend to with two Epicor do first process, one why are or a why like immediately if of then tax going sell part driven that you the that? recap from the in and something,

and it that to we happened unusual, able liquidity that and so capital later a without was that tax get that it much so to is able were driven commenting transaction. exit any new nothing structure with was situation, not to there portable was a months a just back that done the about too on firm specific we something were Chris for buyer. And it couple drove specifically

next with Wells Our is Chris question from Fargo. Harris

with news Aries us to deals at is you I primarily are open hoping your looking or M&A Global updated guys now thinking is at how Atlantic? thoughts Are there on the the you out point. focus could this you main that about So A&P. you right for bidding deals, give was are

look to Chris the as front, the we lot answer do new but it’s for work question Atlantic on Scott, a opportunities. the do for thanks continue your to question. of to We Global have

in around things Global and well this estate, us to areas we space co-invest. focus were You know for time, parts of the on whether with bar remains do continued kind thinking of the areas us, more very the about real the some high, expect insurance. but to the about should of you in some like or And other over past, adjacent talked Atlantic to secondary's continue growth to be through of as we then

posted, but to definitely continuing and we'll look, still we're we're keep out there. So you

Robert Our Lee is KBW. next question with from

growth. is pretty working is you're Marshall was how Investor from that of maybe questioned Can to just contribution still slide And opportunity just there September you maybe this them. for there phenomenal - your quarter, there's its I'm on and us shows curious then what still in stake Wace. I maybe increase in update kind know an your actually a Deck Wace? Marshall with you I

how and of think we're going take I'll Scott the working together. I Rob, part take first that, to

billion So AUM $XX today. business performing very north of our is the of punch line is, well

ways. their management of pro fees through in September. bit incentive on in We a seeing the XX% results rata way, end of most seeing the have our see our you're year, Through of What financial flow a you're end little fees. share you'll the And through flow along year performance share and couple of it is that. a that of

so QX on of XXX in elevated million our incentive incentive pipeline of And level plus around Wace gave was pro is earlier visibility. share you'll fees, in our Marshall the that this I is call an in which rata see our financials And that what number fees. of

would only is comment. The thing thanks Rob, for and I add the

a fantastic the navigating Marshall environment I management the think, the growing done job continuing to this has team business grow and firm. Wace

of together. But, to ways do we've it's partnership investment off strategically it's a nice more the that together work number terms discussions to a great in it's continue explore also a very on for fronts. continued we have balance it's been satisfying We been the of different to made the about been partnership had and a economic and But just markets through which, sheet. have return

are was initial terms change the transaction we stake, time. that us is the XX.X% to about up which where In always phase plan about of of XX%. went raising now, over as invest no that may question to scheduled near term There's the to that, for change the

positioning that - on how your follow-up public terms you on the equity announcement India, But I similar really the do side, side more a in seeing platform had And of to about like a investment guess. principles on coming of thinking you're just it’s had it's maybe [indiscernible] more - incorporating you are private then broadly, to call investment about what firm's and LPs And some guess have think how private those important the impact ESG today how feel just or you in strategies? or process? of, conference can side, But, within and up your you whether on. you focusing I the within kind you your the the incorporating into of you're question. capabilities

as we have a Larson, ESG on Bob, been focused understand its firm are think two there I first, to XXXX. since Craig things

investment value point, on decision are day we've we it committees within and basis. within areas. taking our a And And experience ourselves this have firm through this at ESG leader over at clear believe every integrated management. in like what and deal decade place So driving in protecting established a making considerations as ESG we means teams of these our the that's is within global our point a

the opportunities there the for as and didn't point one evaluate cases one was second that is of investments. result part off create teams really, work through our we these So doing when were of work. projects are but good opportunities, have everyone these We we is value. of execute and items, were this home think a all off as mindset a investment of look to the And I finding

That's as at held a was So you're created impact time. trends public All to cetera. private Though, generate driving a and others. like a you're think with LP what on hearing importance around to increasing standpoint, the And right, of on positive we're in business consistent close, increasing only expect constituents, this. in February it to it standpoint, third I impact That's off I this and terms earlier think are these from equity et our very considerations good strategy focus start. opportunities from think returns same opportunity. And shareholder our a I I we business. impact relates party dynamics the and funds. we've that's our focused while year, an from from final That's dynamics

Cyprys Our with Stanley. from next question is Mike Morgan

in capital and also new a there on and ground, investment that returns on investment are elaborate the follow-up just guys more the you posted to hoping today. work wanted could both your views on was the today you that existing touched to bit I that the I strong putting investments outlook return you're earlier. on the on

different returns generate of of you managing? sort attribution are is what of of And expecting terms the that types evolving? across to In you're how strategies the those returns

in investment this Mike, upside we we've And those transactions, legs. billion I into first of can is tell we've had as the lot lot amount think continue have a it’s year themes portfolio. deployment part the think to that the see Scott. question. the Thanks of short $XX a we from in deploying of for total terms that you announced of answer to question of more capital been Look, the and closed

attractive assets assets real of to we reason to markets, yield. will in relative and we seeing markets trends continue of involve point Europe, on it's, these to also that So the to And and look the the a here from generate outperform growing to all that's, the thing of more in is the hopefully deployments think the third, out. other Rob's the look themes, to the help. they exposures expectation can and economy be with of hurdles. in terms investors, to help public the our growth estate stay that's We time. at businesses, to real it our I returns. having But fact such forward when to number going by think basis. our performing are meet we we we them returns very is think third, themes. believe to there's businesses infrastructure, parts think those continue returns a their nicely, and at particular. beat seeing a we continue continue a going private opportunity see focused our is, is The about globality calls playing a opportunities attractive. third, meta real real talk our us to go part the we're the probably continue forward kind long-term we to U.S., most on in Asia invest you And we driven where think investment you're to And the And about know, globally, those and And should that And go I level, where the of opportunity, how and

Research. from a Davitt question Patrick next with Autonomous Our follow-up is

a Thanks follow-up. for quick tax question. the follow-up I the have on

internally - as obviously, the of think, but rethink would not? balance cause tax change us, change strategy a for capital gains public works you I how in kind the shareholders towards potential that growth about corporate in changes any of think sheet or rate, that of impacts rate the you kind the the

sheet short our opportunities in in balance how - and change we answer No evaluate change we would would strategy. no how

question And we Cyprys a Stanley. Morgan follow-up for have Mike with

monetized to Thanks the much about guys able you quarter was of that sheet? for balance sheet the ask capital amount the the in balance with was are I taking to balance share and us also deployed the the just if from follow-up. wanted off sheet, Thanks. gave how

deployed than a balance million more realized and No about sure. we bit capital Yes, sheet quarter, million. little we problem. of $XXX to $XXX In the

I the Craig would Ladies Larson gentlemen, to to the we've question-and-answer the of remarks. closing session. turn back and reached end for call like

like us. would Just to thank joining for everybody

forward any you directly. to with you look following we out have you once If directly, reach again. follow-ups, please Bye, And thank up bye.

you Thank concludes participation. Thank you. This your today's conference. for

You may at your lines time. disconnect this