KKR & Co. (KKR) 4 May 212021 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to KKR’s First Quarter 2021 Earnings Conference Call.

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

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

our statements, Good on call which the on not our cautionary call. press SEC Welcome by statements. will Center I’m and morning, to posted these at refer in or contain Rob KKR.com. is filings our Operator. Earlier to forward-looking remind figures to like quarter release we events release, that future GAAP our call, Investor everyone This refer Scott our which our XXXX Co-President we’ll do section guarantee Lewin, by available and for earnings joined Please non-GAAP Co-COO; release We and earnings morning, you, would related this which performance. to factors press our to measures everyone. to first Nuttall, CFO. the Thank this reconciled morning are presentation.

a You’ll likely have noticed few changes.

results Global XX% Asset of we’re new recognizing GA’s now post the to approximate addition which First, closing Insurance results. our financial two in first quarter a segment, is reflects Atlantic acquisition, this segment, in with our The interest segments, the reporting Management our

items quarter, made number addition, introduced QX our the as we Investor compensation of well statement at last changed. segment our In Day. framework through given the that our to this on income we changes line have on ran a We call, as

be to website with that we three with and our still helpful help presentation, on as comparability, Investor on is a our Center early That posted the the recast to to periods. you years quarterly be could of section framework, available results framework presentation disclosure as website as compared trust and we’ve additional the financial April course, release to well time. to for will of Now at improving to basis. our it We to refer the a that on make in of itself the you information helpful. earnings finally, same find digest, the And disclosure while you new easier consider transparency our prior changed results of

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of you review which we opportunity, we watch and of website. are presentation have of would both the event a to driving XXXX. a of those that encourage be from have per to continue gain per and the per grow And be $X.XX firm. heels accompanying event, the all of to share we’re We understanding opportunities right our in replay that fees found the on increased quarter. distributable are increase quarter we at the XX% better the XX% of For the After-tax of helps year-over-year, you feel to can really to reporting event the where pleased earnings Fee scale related in an compared on now this with first Management came our share. FRE excellent everyone importantly, $X.XX here. the didn’t share. And earnings

investment reported is finally, firm. our a assets reported we Atlantic, from addition $XXX book continued really just The in of the fundraising one year across every to quarter this XX% And we’re value the the was quarter. $XX.XX. ago figure announced testament we we investment last our quarter, is XX% dividends strong the and under growth beginning are performance is our value billion. reflects And we as ahead management strong share, performance, up book last continued over with seeing This mark-to-market in Global momentum. closing increased quarter. Our $XX.XX the is to per This which now now of

is now annualized $X.XX. our So share per dividend

the through with Q&A. will will performance over fundraising and few Rob and closing before kick I end, to an today’s walk at of terms turning into to head overview provide it remarks we’ll quarter’s and investment In things call, Scott a off of financials, this

we last Internet performance well IPO performance that Byte We’ve trading at and companies OneStream portfolio investment see equity So to months. is tech. importance over of fund and XXXX mobile significance seen very the our couple the made quarter portfolios trading months. private investment costs. And deployment QX. performance of last Brands, At strong was has And in with our April. in XXXX up our Remember asset six in also real private XX These Software, was stronger, we’ve in a went XX% exited over to we both our our themes you’re we equity, companies North XX% earlier in public technology the within last over that first the wealth fund this Dance, whole we’ve three in AppLovin, Media, software were the RB went investments and our these tech with two that tech Calabrio, businesses performance Beginning are of winning strategies. and activity, Electric And performance. the strong the and Darktrace weeks been KnowBeX, XX continued north our quarter impact have earlier currently oriented of in America’s continued Investor Day, XX% one investments XX seeing theme. went about flagship alongside up of and up business our public in and the Kokusai discussed across for quarter of to the public this figure. the almost a of costs. of even at XX% investments of is begin, tech like cybersecurity the private appreciated digital XX% and And times over

funds Over while the months in withstood appreciating all the appreciated volatility, the XX%, our XX%. market real XX past opportunistic estate infrastructure, portfolio

XX% within performance standalone composite appreciated both to over credit, quarter III leverage our yield seven-year rank and Lending the is strategies, five-year our dislocation to XX investment year-year, over trailing appreciated looking strong were in a And in investment Turning and last And X% a loan up performance performance months. credit and XX% the We’ve one and three-year, quartile continue the Special bank the our And timeframe, high reflecting composite X% our our at the over last portfolio top as II. in timeframes. and sheet balance differentiated XX at quarter basis. records the and investment quarter Partners the across our XX% LTV periods months. performance alternative broader quarter within seen and strategy credit over XX-month track strong here on XX% appreciated in Sits

strategy. And our held raised inaugural Fund in to core Asia-Pacific new the seeing IV we months. is opportunistic investment just at the on the our heels our and Now the funds. final the strong billion. continued $XX region. our in for across real dedicated capital estate included last fundraising billion also in growth raise healthcare in XX new quarter continues over track IV QX quarter fund in equity $XX momentum held the Asia in the of raised we’re largest America’s Fundraising Asia differentiated Building private platform, real first infrastructure $XX record, investment performance, Notably, with strategy, trailing momentum investing on and billion the on and capital strategic our of final Asia Asia-Pacific estate infrastructure close Asia our really the IV closings given quarter, activity

CLOs the well we’re in both U.S., the Europe. come forward only market. as raised to momentum active We CLO in with the strong raising going strategy. SPAC fundraising first lot that, conviction in of markets and quarter our it many we Rob. And itself, in strategies We’ve a on was fundraising focused as our for across also let diversified we XX the turn our also over expected me our over that core not remain new as but And

Thanks this morning financial begin reviewing Craig. results I’m for lot, a quarter. our going by segments the to

Putting and quarter. came management million. our fee here in operating fee $XX note totaled million, XX% in continued were And to those XX.X% Board. our last our came the robust Of QX. which nice XX% together, of XX% fee FRE the quarter, in quarter. encouraged of adding ahead and forward risk. Markets annual Right the Markets related our compensation last $XXX XX% expenses business that $XXX share Our growth related our in transaction $XXX remain opportunities across earnings we range revenues our at $XXX very pieces is of as by revenues. million at midpoint their million our $XXX for fee Capital was per year. continued or Capital strong the for totaled well And fees which pipeline Fee particular We to related generated fees, business, million as other or of $X.XX in here, saw margin introduced contributions management million

FRE will our We very per continue next exceed be that year. share confident to comfortably $X

have The it sight asset momentum has their good good Atlantic to is as of and fundraising base Global been. of pools we line investment to very continues during capital larger and Our periods. of as ever grow

we our for income, revenue But point for quarter. $XXX Moving firm. our a us these realized items to generated is line quarter approximately income investment million for a $XXX is million, was $XXX revenue realized the the million performance and some high of which as of

income ranges only this Our of and our in we realized with is earlier right cost which indicated compensation, realized investment annual the associated performance respective came at year.

income. large tax structured this our is total of way accident of of $XXX that expense, of earnings the was the quarter. realizing to earnings operating earnings been for Atlantic’s elevated. in of $XXX the after-tax recognition On distributable was after-tax would And the here, our our months added we Global incremental reported $X.XX One was which million March, million morning. investment our a tax total, year-on-year. at our came bit the versus The Management resulted share. top came up Absent driver rate additional quarter have of note the $XX in $XXX $X.XX our this, February Asset for a per approximately only that, million, of finally, $X.XX in or this and share operating distributable while XXX% a million DE bringing So the XX% that at quarter in for in earnings an XX% in

Looking benefit tax without reverse this, become expense. from as the the of of forward, is those we gains do burden realized expect the will investment monetized and that

for the record is up the coming over to billion and investment from deployment, total Turning last quarter months, $XX prior $X year over capital at which billion the XX in came XX% off in period. XXXX, a our

dated a That’s here you months. longer which With deployment, representation potential, dig XX-year levels XX% are versus much little many the period. how XX capital we profit when having private is distinguished been in we’ve year-over-year. be an in is deployed organization earlier LTM best deeper, over market market deployed tended bigger private across of our markets At really or the committed the We our relatively generally across the capital activity that history. and lean has deployment for as same strategies in prior downturn down higher think our last Importantly, during up where more time, do the to XXXX. was peers, to never flat our

confident We to for that will are turning serve And well mature. as balance investments finally, us level very come of this to years our those elevated deployment sheet.

models $XX.XX, if from bit share of share more of a a value you another XX% is Our currently our capital. per and Even March business compare last XXXX. is book example year up over levels, quarter and in compound tangible performance book this XX% our to is it’s little per to than pre-pandemic almost XX% value ability versus up up which

at I away really overall think, the four of there things Moving the look as our quarter, noting. are I from worth specifics performance,

share, from per know as and We FRE a of had an and figures. $X.XX after-tax really acceleration strong our both we per $X.XX DE of share guidance, these expect we you First, quarter. reported in

period platform partners. performance and through deliver really XX you to telling of The over on performance the quarter, for think months the a differentiating more stand out. second limited of Craig our as others well versus statistics our our is time. performance as strong relates continued do the we’ve investment multiyear I last even behalf the ran investment to But

our strength returns XX%, and from. that detailed Day, four of flagship led directly fund are and framework to As and this growth not and Investor performance credit the from fundraising gross high XX% momentum real current PE limited is our investment the asset had we benefiting private just Americas, levels one example, Asia our equity. platforms. Europe inception. our is currently And XX% we of across At of to This

we’re As a a track history we of firm, on excellence success. build this have XX-year record investment of continuing and long to

to Those expect statistics unrealized related $X.X balance earnings significant point billion the that through over flow the our the years. number firm XXXX. Third from the our a the billion in At will the can to carry. embedded Investor unrealized of March. number That as driven gains amount $XX.X the tone markets. one inside well our of of and increase we of end $X.X apart sheet discussed as That billion be the of Day, obviously of next our overall is we gains bit of in are was earnings at investments, operating around of total move as the by gross end

However, move a the activity. $X heavy realized in months of a plus with and billion three only level quarter in

the a think the and it great to our of means next for what through do strength realized how finally, off with ahead. see of There’s for and us And lot keep we’ll to and results. I here of start also to our the a quarters financial the number of progress in impact began can years. just our GA really really illustrates investments Global to abreast over profitability you underlying really flow the Atlantic ability generate more we’re we

really Remember, our this we the to DE of to by XXXX, power is in this acceleration timeframe. of $X does after-tax range earnings support expect the largely XXXX All significant $X already firm. why

off some We hand have execute we LPs, with for able our to strategy meaningful deliver thoughts. on for continue closing Scott really conviction that all me that shareholders, the in. we’ll let a lot and be communities our operate employees and of And that, it results to to

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

the reason very Day, Given brief. going I’m be to Investor

points, a As unrealized stronger stronger results, more in fund had better inflection a never and more we higher team, coming firm, investment and businesses scaling carry, have reaching connectivity, and gains and in. their

in As and Atlantic, more us we us visibility, we’re management faster. of Global to ways more grow stronger growth never all And that even a perpetual ways more before our visibility result, which fantastic make on confident and a future. have had that even even grow, more will is and to capital, gives that even more

questions. all We With take are are on you Investor to we’re that updated to keeping we your hopeful our happy that, Day came forward during through the and progress. looking

question Thank Please will [Operator from Evercore you. Thank you. Instructions] with with line first coming And ISI. question. be Schorr Glenn proceed our of the your

XX% Investor like little maybe on -- these you're like comment dated that call question. if I pursuing earn. on I fully I just lot. a that in during just just a you’re up building -- long at platforms. Day didn’t Hi. you still maybe a maybe and guess appreciate around things where partnerships as Thanks the you we or in thoughts was a refer follow today And few cover various

questions. for Hey, the Glenn. Thanks

respect with still partnerships, long First, to are dated pursuing we those.

and largely, recycling everybody’s benefit create for asset the strategic across oftentimes component these invested will partnerships multi-decade to classes institutional So with investors are that them. have recycling they’re largely of some

time continue to an structure. take to to continue those. But we a pipeline. have active long They so And pursue we

of Day update are a going. something be over just couple the continues focused on for that because We’ll So we’re take time, Investor any close. have message commentary you there’s lack getting don’t from that to

On the as continue the in look secondary mentioned past, the at to we’ve side, we space.

standpoint have at whether cultural work pursue to we or times, continue analyzing today more want we to and something share share except buy buy, time. from nothing whether that to are We’re to fit with more might you we make hard looking it. to have that build really a there’s sense but But over we’ll to to

you. Thank

your Blostein proceed is question Sachs. Alex the with Goldman with line question. next Please coming from Our of

Thanks Great. morning, everybody. the question. for taking Good

of is lots to you performance with? business demand? that you’re you could vehicles? that guys’ of looks monetize strong, thinking And currently very and capacity exceeds continues really you’re clearly, market sort the change in LP appetite demand have sort those funds you the are Any like of the this on if backdrop So, flagship ways demand the other of in Has some be good. the in Thanks. for flagship momentum the capacity

question, for Alex. Thanks the

in fundraising environment, we’ve long been best you time. it’s seen great the by really As know, a a

We’re happy situations Board seeing in a investors and capacity different about find ourselves classes the might asset we and circumstance be to the across from some things increased them where able we’re a different constraint across do to engagement fund in that doing. we’re talk

example, for private So, as of in equity way others. than a a you we our raise different flagship know, funds bit

closed the on There’s growth, credit. to fund lot can we investors we fundraise. funds, market in regional come you global We talk there’s one the ways different and to just the across of before get quickly relatively opposed we’re as right just Europe there’s Americas back and with have three now core, Americas, of real Asia, a assets will to privately

lately, that we some pivot And asset are that of demand focus to oftentimes and and so right unmet will incremental we’re into that’s that now. see potential that especially classes of able the some adjacent strategies these other demand

Thank you.

the Please Next be proceed Siegenthaler question Craig with of from line coming Credit questions. will your with Suisse.

an is strategies in morning, Thank slide these invest AUM the markets opportunity today Global of rotate $XX in I billion rest Atlantic, are in strategies press AUM does Global My noticed billion you. private to in everyone. were private KKR assets What this and on the or question public had sits into or the page strategies markets, XX release actually is while markets. future? of Atlantic there KKR $XX on is Good the

couple question Really Rob. things. good a It’s and so Craig. Hey,

oriented put estate markets credit our that credit real in to in really those there were across we’ve As we those most will real across where Global our space, are are investments underlying a business. we thought and estate about our real the the and estate strategy, at how fit IMA looked principally number that at and of approach in but our are so business, public Atlantic,

Global it innings businesses in very early a Atlantic rotating lot products, of balance well Atlantic as able to as done. sheet, Asset are our relates being that. their sheet the of to that take for Management get Global we As the think balance there’s opportunity the and to We rotation

the We’re But just get really up. time months benefit going to here provide that take over to sure and KKR. updates in We’ll that seeing the Global time. couple of Atlantic make had not we that’s nor a we’re some additional the ramped

Thank you.

coming from with Our be Devin with next will line proceed questions. your Securities. question Please the JMP Ryan of

definitely morning, the potentially just the on monetizing just that Great. everyone. balance guess Question of for color portfolio? around on accelerate to sheet gains outlook And Good recent proposals rates want don’t picture appreciate yet. helpful? tax might changing and the around if gains? some some bigger too of around I But I gains capital I detail just the embedded it sheet on performance. into would tie changes much maybe thought given any balance potential of any Thanks. And the it be views the have kind we

the Yeah. we clients how we’re of our it Thanks exiting first. question Potential have your is at sure time. that fiduciary appropriate second for a the legislation portfolio. making Devin. pending on impact monetize It I’ll tax our will part no a answer lot, about really and

significant of you outlook embedded noted, portfolio, for gains. In monetizing of terms as our amount a there’s the very

forum perspective monetizing fairly number questions quarters Our years here I what here side here. we of lot forward think over that perspective. this and in get mature of compound that expectation looks got can we in particularly questions get our revenue an a capital, I number a can part is overall but visibility also on core of coming have of a so will from for terms investment know portfolio performance is assets we’ve the as that that answer the in realized a a -- the like of is our and this one we

As a we QX visibility of relates to revenue and specifically, amount already we have. substantial have very

and is income. $XXX million line investment of plus performance now, of As that sight of

have reminder, in closed a this or up to from signed as been So we expect deals that are that QX. is and already close

probably for especially and XX that investment split, of the I’d to income. carried articulating now remainder I know compensation. our two-thirds as terms say, In interest it’s in

the is Bank with Next your Carrier question coming from proceed of with America. line Mike question. of Please

taking the morning. Good for question. Thanks

we’re being you one mentioned But point, active is capital robust. guys you position deployment last and hand, valuations, about thinking outlook will deploying get given growth in fairly You performance. year, just very which rising the seeing for this it you economic are the you at the maybe, in over got is how

So just update there? an

I you’re M&A first you answer there? seeing Craig. overall where Hey, this It’s tremendous Mike. really stats. the to the relate and Why start you’re market does activity I part the broad right, of think do see in don’t

the in volumes So in year excellent most were we’re year actually QX, of broad last Global two start they been it’s M&A M&A. announced terms the and active to

where in of sellers, like a and critical. that and us thematic that, really we really approach a think have to it and a your a of to pick And and to you lean market Now, valuations given to activity interested conviction. important lot also that terms where is real in of deep lot is this, have expertise, spots, in need alongside want of strong discipline activity, addition is you critical so in to

for on Investor some private and right, for through so very about fit at time you’ve the were you’re Joe three investments our the this deployment digital talk instance, markets, our we’re tech that us themes of opportunities of I And with Day, some that framework. last tech busy themes, years. focus almost and now, in and heard ran again, And over still digital XX% think,

looking simply There’s the that primary the question discipline it. an differently if of monetize I to are a important or asset, will. capital need asset be Now, attracted about that ones who’s growth view an again, to think, But versus for do no little part to you an companies equation. we’re someone and that we is going

with the Pleased your is Our line next Harris Fargo. from coming proceed of question. question Chris Wells with

should coming guys, P&L, fee second be a of partial blended average the thinking of a you in There’s Thanks. got for G&A as we quarter, the Great. how rate weighted KKR parts organization? quarter, moving bit an for with about beginning a little

Obviously, Yeah. got full as you’ve opposed That’s a you’re to of right, good months. GA, three question. two months

I that cleaner quarter. able certainly at it on in basis think way on you’d look to be a the

at a that’s pressure, fundraising have where number private that, given sat points, pressure and we more our have overall little to is be that’s downward we’ve margin. the could XX going strategies with call the by But that IMA basis a I good you QX month a last bit downward because associated course, that of offset a have extra on really indication, Of got maximum fee our fee good probably, talked fact the in rates and healthy with across higher outlook them. of think

challenging of the flavor fully a question fee hopefully, gives that blended So enterprise. bit a around you a can where rates of to but a answer, across little go Chris, bit

you. Thank

Our Jefferies. next from with your of line the be question will coming Please Gerry question. O’Hara with proceed

relates line particular, bit little sort of products of might might and Great. you. color that a as revenue anniversaries, of at But line get I to it might I item, new a looking be perhaps, any item item able sense how what Thank to to performance the or seasonality product be is in grow? get that tracking we that was there quarter. is hoping we more to line think this Thanks. fee

number on it a understand more with for also Thanks quarter Gerry. revamp a We easier comparable we’ve lot reflects question, this to Yeah. new of and of and ways. our our how to is think really make tried It peers. your P&L to

in And as underlying item. our where incentive on based the more the so that expect of perpetual mark-to-market. that our generate from what opposed incentive see Really are you’d the vehicles, fees yield fees capital portfolio to line to we

in of be BDC stable platform, types raising you’re to core that of going some got more there the see are of got fees SMEs products that to the are fee arrangement. and that that incentive a across in our across couple we’ve vehicles infrastructure of we’re comparable going X have type credit, things So nature, Type

line going peers incentive sense in for based from opportunity it We next thought performance, distinct of it of like, scale to to firm break fees done see. the as types and to number the the of you’re mark-to-market see are those a up big made we number that So years a the our fees really of off out have over past. item

Thank you.

[Operator will question. line be from with Stanley. question today proceed Instructions] Cyprus coming The Morgan next with your Please Michael the of

morning. Thanks is specialty up origination Investor Day, elaborate taking partnerships. around for I companies. with on could more little question. you the partnership origination in a number different a bit Good a you’ve was of from of platforms been the are maybe question of My just out building hoping that Hey. the mostly some these follow I finance platforms. believe

just sense So talk to trade-offs years? the sense could do and of some over that just you to you comes how capabilities maybe -- think partnering might platforms? I owning next it add you versus about the could these couple And when about make to do origination think of what situation own make the you think it

Thanks. Very Scott. good question, Michael. It’s

on sheet we X,XXX the or employees, so quite have mentioned created plus AUM been we of others Investor at they’re substantial, to billion or across group. balance origination And platforms. about Day, As XX with be or getting $XXX entire partnered

different we pretty was before Global really number transaction. risk of banks started classes, back the was effort That were background, finance thought saw largely way out where clearly asset we our in opportunities on created Atlantic in from the particular, these business, by a asset interesting. opportunity of of private Just an pulling reward the private of vehicles, credit credit where based back

light do And has and demand want now there doing that how the we’re thinking we in and underlying classes to about want doing of right process pivot evolve for in so this is what of we’re strategy how that asset to origination. the Atlantic we’re significant what do those Global we

of of a funds out this And to move started more the and think we started a it entirely just little of bit funding then we so, way, approach. really hybrid

sheet. So credit our as created our almost infrastructure called we venture like that an an aircraft balance between business joint was example as business private our a business, Altavair, leasing created and

been this are and think funds. with will might of these and investing But so may our space to or broaden forward, we hybrid. own answer the how this, on have fiduciaries have actually the both. we’ve type thinking sell balance a direction bit question us what be addition more think moving which of you our for think the as And either make make And is going with we balance And about and going to Global to that you’ll then partner. this some a a find about move on sheet over some of sense it that your trying into this KKR the own Global versus the share really while is move we Atlantic that transitory and some for in I approach the more we’ll to permanent time or Atlantic, stuff, we can of sheet, Altavair in more of it and

Thank you.

the next of question Robert Lee be Our from Pleased coming line KBW. with will questions. with your proceed

taking Hi. morning. Thanks Great. Thanks. for my questions. Good

I you capital but on maybe available come just would injective for on refresher has refresh parter, two a Global the amount you if I just really this know when of think, it. be Investor bought helpful it growth While right on now. us mean, a I Day, their Atlantic you

sidecar a what was be of to And separate kind of an maybe statement think as also There’s kind your growth it appears stands in quarter too, then -- this, on it sheet? believe, from maybe but vehicle, income organic capacity $XXX balance its helpful? million. today standalone, added growth how I would something I GA the being their updating update

that. will Rob. the at Hi, I first take shot

with of industry, that’s and at that management work opportunities plus you available. the the there opportunities $X good able which one the the different is obviously, Day, really to noted, billion as GA really believe is go be out So get in Investor job to good they big to the scale, us question, articulating did are our a for growth Alan, and

primary of ago able And go couple that of up. feel so a capital capital got we to raise $XXX to do time like we’re a first months million different One, we’ve ways after company of couple closing the and be raised set at the done. primary the well has that

this and Number help we opportunities. terms ability a is think, able from So this Rob, of big to these platform. to really meaningful going attractions perspective forward evaluated our there’s capital, strategic ability available. also for to growth last can up I’d sidecar noted and one are growth when of was And and them sidecar, our as to go in access the that’s opportunities opportunity both the that very you became be the finance say, think the the GA scale we team after transaction, the management two, real start meaningful deal I of

additional very sense we’re be obtain a if that on focused go and make opportunity ton of a so, that perspective it’s And growth for able from GA. to here I capital, a to us for think that there’s do real things for required

you. Thank

Our from next Please coming Fargo. question with Wells will proceed line question. your Harris, be the Chris of

quote-unquote, a, just now be Hey, there Thanks. P&L normalized know about Rob. related earnings know I thinking to rate some noise quarter? that, the I confirm going to tax then, want first coming how should to but the that we KKR in post-tax? to this estimate, Insurance like And was I are in forward. tough for really is

question. Good Chris. Thanks, Yeah.

our -- so basis a yes, the the was Insurance to you’re a thought segment, tax that that way segment. number on our So, illustrate Insurance seeing for right we that’s and post-tax fully

up at particular, a that’s this to the you tax in trended to out I KKR. we since obviously, that step tax below the low that As time some became had is type we rate, has over rate had pressure it blended step up and And at rate the really a rate, the we in hasn’t our landing conversion. time see upward comes rate the guidance of that’s mentioned. think, statutory I think up time But being way benefit I why that noise, time, and the as over relates would mid-to-high-teens quarter, in our C-Corp about taxes changed time over statutory our you say, for right tax the and XXs down our basis here C-Corp going from at

our not the the come over what to and the up So, migrate than time rate down slowly step years, from will us tax heard fact you’ve too over continue up. will from other that dissimilar

you. Thank

back floor turn any I’ll management comments. the At this to additional time, for

We interest with of us everybody, in Okay. spent and Great. continued KKR. this on Well, that for Day thank and thank focused amount you you’ve that earnings quarter. your very Investor know much our the considerable you, been time has

We’re, much. of QX to reviewing in course, available look for any additional results months. three follow-up so forward you questions. And our otherwise, Thank we’ll

conference. everyone. will This today’s conclude Thank you

time. this Thank disconnect You your for participation. lines you may your at