KKR & Co. (KKR) 3 Aug 212021 Q2 Earnings call transcript

Good morning, everyone and welcome to our Second Quarter 2021 Earnings Call. I’m joined this morning by Scott Nuttall, our Co-President and Co-COO; and by Rob Lewin, our CFO. We would like to remind everyone that we’ll refer to non-GAAP measures on the call, which are reconciled to GAAP fingers in our press release, which is available on the Investor Center section at kkr.com. The call will contain forward-looking statements, which do not guarantee future events or performance. Please refer to our earnings release as well as our SEC filings for cautionary factors related to these statements.

results. our to Turning

earnings was and activity quarter performance. alongside as coming tax per which really quarterly And both deployment for drive increase figures you figure, Fee-related see record and share, us $X.XX distributable after as respectively. monetization continued XX% at well X.Xx share over an after-tax XX% increased quarter is activities were with record year-over-year $X.XX exceptional to in fundraising, earnings the per This fee-related strong we the the earnings. our number Management fees $XXX monetization drove million, last reported helping quarter second the in year. DE in investment of

XX% management on now billion, portfolio all mark-to-market sheet of at This now $XXX quarter. after share cash per is under in activity from since reflects quarter up both assets QX’s even one increased and every is record one accrued realization our quarter And $XX.XX. are share, $XX strong since and $XX ago. and year as the just which as well fundraising XX, growth compared last XX% per totaled Our value up book the appreciation. over XX% net year balance March strong investments carry to ago Net

of will Scott before things to And Rob, over few terms kick things through our turning before quarter’s head off a I results. we in today’s So will Q&A. closing of to call, activity, with an into fundraising overview provide this remarks walk

fundraising perspective, of which on help scaling KKR. for Differentiated the itself was behalf all you’re with capital fundraising. continued new our of highlights. $XX expectations. exceptionally quarter and performance investment billion $XX of our seeing, put our this few an A XXXX, had record all contributed billion to exceeded basis. raised businesses creativity to partners, innovation raised results which an limited of organic to turning compares capital To We this into year and So new strong across on a for

across Equity, Core next billion of raising closes we quarter. Private over the vintages Infrastructure North and initial the in America our First, collectively held Private Equity $XX strategies Global

Let details me give few here. more a

North Core across held of the now With global had and fund and platform first year of predecessor its America infrastructure capital. almost Private last flagship total close with basis with in billion, Equity, XX $XX is terms of billion $XX just committed stands Equity its is first and larger than close and is already already year our $XX Core first Infra a our billion the AUM $XX.X XIII together AUM at $XX funds capital to ago. PE size most and billion three our on twice a at billion with the months, Infra, And $XX third-party Europe a Core on $XX.X recent over $XX including now compares billion. that Asia In funds, in active ago. the $X Equity billion and Asia close predecessor $XX totaling billion Infrastructure in billion, Private compares the we’ve Infra to the billion billion success together $XX.X exceeds the total now we that’s across IV Private

well The second across quarter fundraising highlight in real we’ve with infrastructure, is perpetual this as the activity credit. continued seen as in progress capital estate

in on BDC platforms July, that’s of block strategy, billion with to publicly-traded two one core transactions. two vehicle AUM. our a announced two quarter, KREST, BDCs, our AUM FSK FSKR in Atlantic form billion completed And and the Global of incremental individuals launched infrastructure billion. reinsurance re-taxation bringing $X focused open-ended their XX credit, merger with $X to In $XX largest investors. an This raised we Act here We

XX%. billion $XX.X now approximately inclusive add quarter to transactions of strong. XX% two capital the strategic billion quarter cash our be a we of AUM partnerships AUM is here this of in dated have remember, perpetual and long Perpetual that to and includes on And of is continues partnership third we and new investments class $XX the balance these an figure that multi-asset pipeline sheet. closed expect We

is estate highlight fundraising third The platforms our continued scaling. real

is hold America’s Focusing REPA third was REPE quarter. a the REPE held second our X than at XX% at fundraising have more yet a of our continued first and close. at billion with times III final on to billion, fund our opportunistic the $X close now funds. fund II $X.X and larger in I REPA final II than We At II size European REPE we

With we three our estate real a aggregate manager when top clear now regional you are these closes, five funds. opportunistic

now amount compares your Looking billion capital both its over broadly. average growth. a room future period. that is finally, billion. a Last at $XX little have credit we basis billion different the Real XX when total estate invested now across more XX strategies and fee rate XXX management ago platform $XX of basis months investment is AUM real with and a clients. $XX with $XX structures, now targeting and as you institutional management to think weighted or billion fees, estate equity was quarter, of global We continued have points payable variety capital focused models And a billion, tremendous becomes just that about that in enters for over of committed the fund in $XX retail on of

pipeline as quarter robust So geographies. look excellent across across all have and had we next as we an over in importantly, as forward the all, well a months, XX strategies to we fundraising continue

it that, to turn let me Rob. over with So

I’ll over our $XXX quarter. last in in the million QX periods off fees in Craig. America’s up VIII with The and results and both a Management commenced for Infra segment came year. at from quarter. start XX% lot, time financial this Thanks X% from that’s for IV investment the up

in also Growth real and Care the were funds. from quarter. these Health European fees saw partial II estate you So management to quarters impact additive

excellent event than larger had markets million came $XXX a of $XX activity $XX an had business markets activity XX% We million was fees. business U.S. quarter with and was was revenues with here capital diversified. Transaction third-party also really million quarter strong that from in one of outside the of for capital our actually only our Our It fee revenues.

elevated our activities. We expenses this continue million million, operating business. get ratio. in almost this part of $XXX And at compensation XX.X% in our placement million to Fee-related really fees $XXX good compensation fundraising quarter, all of $XX of traction came other our given modestly recognized with were a

to for the XX% $X.XX share quarter. and earnings this of margin. fee-related brings is also up record That or All us $XXX a year-over-year, XX% of represents million per

Turning bringing while diversification at to just just over realization was model income realizations, our geographies. $XXX this billion million, product performance. carried really $XXX $X million, and broad under for interest to funds, quarter. The activity contributes base approximately total investment to Realization of the multiple came in spent realized

million terms In comp our basis, including was of our XX%. expenses, currently our a segment, investment million. asset management and is performance total on realized And equity-based year-to-date $XXX realized $XX compensation comp was comp margin within

well XXX% investment full strategic by income XX% the the driven quarter ROE the onto Global investment up together, distributable These Moving in segment, $X.XX which Atlantic, share. as we variable investment as share. a million this million $XX that this excluding by for or basis, earnings after-tax sale the million. operating and operating largely performance, from came time per insurance was quarter $XXX On seeing last earnings quarter XX% the of bolster that it at first of really the momentum net $X.XX Putting today. are was equity income. core totaled or strong our helped highlighting are results year-to-date firm across from same all after-tax is our per year, $XXX a our DE XX%

$XX per are of gains our in quarter. share approximately at $X $XX.XX activity and value And XX, billion June the share. book per levels from over corresponding net same and up March is over The XX to year, as this high $X XX% our up per currently billion despite the periods. increased realization Our last which QX of share sheet cash $X.X from came balance from investments point our in embedded billion,

which again saw performance, We investment continues be to us. real results for our quarter. differentiator to strong this Turning a

appreciated mature show our appreciated strength flagships by quarter. Real XX%. continued for Our to XX% estate PE while the increasing X% portfolio

quarter deployment, markets, equally invested had overall business we was infrastructure Our and XX% with over real to active approximately our across well. extremely but of well Leveraged total last was credit continues an In respectively. up flat private the credit $XX capital quite the infrastructure billion estate. $X billion. diversified invested with in equity, deployment private XX relatively months. And perform quarter, credit alternative to Shifting and were for similarly X% the quarter, performing up X% and are funds

over With markets, $XX powder minute Despite strategies, a $XXX hand the last on deployment, fundraising which level and growth private billion this now before Scott, dry from just in strategies. off XX% stands I of in deployed lending our billion our core across dislocation credit, public is remaining QX. quarter. record spend it at and and And direct wanted in up I to billion, to we

just important quarter While the think we paying or you a I fee of just of basis XX% in XXX carry either on a To we has that of blended eligible. for quality incentive over a of is an us, points. finally, is the few capital under that is capital fee Craig raised. rate life this a contractual capital turned stats, eight fee as the raised XX% of Once years. the is And record QX capital mentioned give the

Scott. months come. a meaningful for over have our few the to impact let with that, And to So it on several is hand what have financial off accomplished me we going last results to very years

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

performance ever and Rob raising across levels record based we an best had across activity significant broad business. Investment KKR and quarter. third-party Capital Craig had second are strategies with exceptional and markets capital and and explained, quarter just at As geographies.

new On And the on top the organic of providing the and to is growth including well. proceeding the of even offerings, alongside launch we opportunities new to insurance efforts our in retail product continue greater front, we road. win blocks continue Atlantic integration And down market, expand this, all growth. Global

at shows what of Investor discussed Day. April we quarter This our outcomes in

AUM, revenues point an the inflection of a continue and and our profits. to to at in grow number ways see multiple for businesses firm are We

Let quarter. two examples from this me highlight

First, we bringing of billion. that for $X core raised AUM strategy third-party to in $XX billion PE, capital

created $X a this a ago. raised As was less business launched was ago. than second, And years infrastructure, than a five billion less year core that for we’ve reminder, strategy

a in off a how of examples strategies this we efficient are great being growing start a adjacent on to highly market and innovating just our are to way our to large leader creating two are in space. further scale here We businesses fashion. and These and

lot a there’s about are to So talk all our proud quarter. the performance. Within we investment good, particularly this of good of

assets Our new strong a private of across capital over equity more maturing XX this Real markets and businesses, up funds is flagship broad-based last credit XX% growing are are base and strategies multiple alternative significantly channels Global XX%, launching powerful. and plus up XX%. the Atlantic capital and The up raising combination client of scaling is the performance, and investment and incredibly permanent months.

You saw a take in us. our of we questions. happy of firm we’re at results. this and is level lot The to high power With road that, have your ahead executing a QX

question. Thank Alex Blostein Goldman Sachs. comes of line question you. first Our your proceed from Please Instructions] with the with [Operator

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

to of bit investor a I really, with mentioned day the management here, of impressive question you and second fee start quarter, starting to with and cycle, maybe very obvious your billion more the as in guess fundraising a an clearly fundraising halfway XXXX-XXXX So targets. than $XX

business. closed update first plus So to give and the Thanks. little momentum expect plus in breakdown relative figures we you it’s an on to to target helping how so with more. much about maybe $XXX flagship us mentioned larger that trying the much and the really the how fundraisers should you bit here Can be billion a you think ultimately the from

the can a doing a spend We take Alex. minute to private Good me Thanks just fundraising how thinking placement we’re as it for relates Rob. question. Maybe your to step path next rules, that set guidance. let morning, question into in reminder, of back, clear past a share share at year, saw as had $X introduced per of exceeding per February this and FRE We comfortably a time FRE year. get but sides on about the It’s fundraising. we we

that in Investor be April, Now FRE at the billion our our you to growth. figure. it blocks understand referenced behind We helpful $XXX Day building would some for of investors thought

of north decided years. a billion. we why statistic we we the and fundraising itself to billion that was next expected of that raise XXXX give So the of noted $XXX at year couple of was $XX to that reason record capital over Part

people we And for is took we that so result what peak that that to away a ensure wanted didn’t was us. think

to relates that quarter this we exceeded the saw quarter, we it than As this fundraising just what announced pulling forward. our the was and expectations more

I strategies, year. at fundraising exceeded I future for expect set the think a beginning the we quarters, of several expectations a ourselves in have we the really across that

targets there I So say is that $XXX billion And couple number out feel for even beginning raised outlook put FRE couple that across we a a but months this of our And better, of given years. think think feel it momentum at the capital north all to that or I of lot certainly that plus the of fair year, be better we the have today. it’s will that fair we we also of that next that out business put over new exceeding better, achieving say ago. the to we a

Our next Evercore the Glenn ISI. with Schorr from of question your Please with line proceed question. comes

much curious I’m noted. about just core funds, growth all buying buy core clients wonder I into same an opportunistic what that much. across very you base? could is there how meaning PE the with you us client the overlap with base expanding are thanks and that the both your funds into tell infra LP or the Hi, opportunistic PE core this and is

When that? you’re It think right. we’re And Craig, importantly, attached. have core it’s longer dated, that’s real PE, yield broadly. risk look of the on infra, don’t we $XX I and estate, of that seeing now on why billion and around those topic across is opportunistic more strategies, have interesting I at start lower interests, profile compared real you Glenn, core AUM core reward core these a Hey to

are opportunity So core pleased we that the think with end for huge these massive, steps first markets the really really us, strategies, seen. are you’ve for

terms strategies. these bigger to not as explore the your with part think think opportunistic I as I question, lieu dated the best I or strategies say think a seen in insurance for not nature retail importantly, investors in have say, the the strategies expect first companies. to those and of view pension particularly on the been products investments of They’ve regular we you bring to line these market. long-term complement And the even funds, long the is active their should wealth long-term I they the of way in strategies and of wide in these plans, long dated us steps, these should of types package And liabilities. sovereign last also look, to us ways in

are massive. again, As here markets end the

but I investor these look strategies our there’s are is think, to base. some, question, dollars the you allowing vehicles, core finding I’d we’re add, and only there Scott, our us is into your expand thing it’s not much if overlap between at that opportunistic by that

comes Katz Citi. line with your Our proceed William with the next from of Please question. question

very in, Okay. bit. to Yes, I’m try to Thank much. rules squeeze a so a question so little sorry I’ll cheat the you two-part

if $X between just to XXXX. you Obviously, the the discussion? to of you somewhere quarter, also XXXX that felt sort there. could DE this $X laid First, like back already out get You’ve sort and tying you’re of FRE you of analyze

on to you, grab how retail channel. about broader in seems think secondly, land is there And question, a very of fast sort like just So a the here. question from it that then for going

dialogues a distributor KKR or be we’re have that any are here may so seem of such opportunity you. only work to branded wondering to You if on quicker, including there with win scale players, retail willing that will the Thank Is players score. they out I’m XX risk five terrific where momentum. or the and going how

a ago. we Rob, guidance first months the Bill, that I’ll the question of it’s put Hey of the out those take around part couple

that any but it’s be. today, very think obviously where to call, of I guidance for would providing we thought that we in this and we we not future, for acknowledge So we’ll are ahead updated consider don’t would have as I say fair guidance the updated

most The We ahead expectations. are Atlantic is business of assets both The activity. good on are our really now, across our of well that interest ahead markets behalf of sit we maybe we’ve momentum embedded as performance expectation fundraising capital good momentum right a across across a lot manage of in gains sheet. balance generated carried our of which our in as it’s got been. has ever lot that And of our

that growth as drive good other from to and so suppose modernization well QX. often here, have We The meaningful into I revenue would get where from feel really good which potential monetization already thing, say one And your to tangential, visibility we Bill, we additional in are is here I perspective we question out the really revenue growth. is about activity. profitability as meaningful

performance of sight As $XXX have of plus approximately million we in of income. line of investment now, right

that already up. close a As from to third quarter. And reminder, is are the or opened expect this deals signed we in closed

thing In right underscore terms quarter. really close XX% weighted in at all is all income. FRE is around stage. of best are carry I’d compensation I’d probably last the this now, important this But from of view these towards expect activity investment our The XX% the we approximations that identified the is say perspective, right a that deal from here now upcoming and to

continuing out we’re your we’re engagement investing size reason and months. of Asia, team that as also But the on in the U.S., question doing retail Europe the in build channel. XX the we’re and and in been aggressively we’re part is We’ve seeing in to last space And significant second of investing doubled encouraged. we’re build across that, out the we’ve Bill, And of the even we’re invest wealth the retail. and that private encouraged to Part build-out. really

percentage our – mid-teens fundraising it’s of channel. coming We’re of kind already from that

the an our retail as quarter, from and in we’re So about actually think anywhere we near we second XX% potential was the example, money raised of don’t yet.

there’s a So opportunity of lot us. ahead of

of about distribution space. engaged to In finding out grab, the this partners we a we as we of land that build a terms in set continue were question haven’t

We’re adding platforms, around to products new and already those, world. number on all a then developing relationships of the

any into the a is things So resistance. registered in we in of interest lot alternatives we’re interest finding in If anything and all run funds haven’t growing and significant particular.

comes Our of KBW. next Robert with your Please question from line Lee the question. proceed with

Thanks taking my of this just Great. you originally to the increasing with how you this target than capital to of and substantially, shaping maintain are changing Good morning. funds? I’m think curious, going for how for anticipated, is commitments is fund question. I order mean, you’re meaningfully I well so much your more size how of maybe even committing fundraising ahead how in reducing your third-party has capacity mean, investors? commitments? own kind you

We’re liked capital sheet at look our we fairly our funds. meaningful our you sheet, to balance that obviously We on that relative in when It’s small a liked balance percentage. investors but fund very positioning capital. our

committing it but hasn’t from, really And our need strategies way, impacted those we that that’s, two thought – about in good to material out a separate it so is question, do capital it’s things. doesn’t we how it and to capacity

Please Autonomous of line proceed question. Davitt the Research. with your from comes question next Our with Patrick

Good guys. morning. Hey

of the So really kind over numbers where could million see the you a a chunky have little capital of that [indiscernible] you mentioned any XXX markets quarter. didn’t

a activity a half those high. this So this, in you of the levels I we million is remains good rate, pretty think second $XXX through of chunky kind run assuming assume, coming this deal do ones stay activity pluses of that kind have couple if

it’s Rob. Hey, Patrick,

capital business So the really about way our think we isn’t quarter-to-quarter. markets

next half you’ve heard see take a for a global of and XXXX, a to think look of I about fees, in that the million period around think of both from a that roughly multi-year lot $XXX LTM I I in recently the be deal are types as ability be able we us of first amount share but are world, business, million over we business. be more perspective really quite for is at base, that should debt hopefully going think to achievable basis, market then forward. activity of should a of With capital think us years bit, the also especially numbers our scale we to an annual think really that $XXX growth of about is number and on those from time, that secularly you the And healthy is us. expectation we able our the business over markets

come the question. your Oppenheimer. Please Our next with from of line Kotowski question Chris with proceed

my question. Good Thanks taking Yes. morning. for

turned XII I XIII, surprised flagged could guess north I’m three in having like North fees? that the three You also an is you how and of part so IV, of about quarter. wonder both that of if the on And them. have funds in a would funds management you X% the around the talk – America impact $X on – I Americas have early healthcare much little base infra that it Global I’m and, turned still billion Infra been had as commitments uncalled like second in on and the And

if those bit. you wonder can things all out a I So flesh

Rob. it’s Yes. Chris,

have our of and XX look in called there at of looking two funds. we at strategies not well our different commitments fund those couple things Page vehicles, release. yet is you a amount on been you’re capital represent as earnings when – I what’s the from investment of committed there what Pages The that has they called So uncalled reserves guess exclude that the XX out as summary,

$X.X to our as adjusted they so, And on example, fund XII basis an billion. closer an Americas

be as your think it on that to how first your line part fees. you when I about on question turn in relates more And would that with to so think of management much And would the fund.

on. turned funds Those right. You’re

I think the about ones two-thirds of way the quarter. the through big

$XX post-investment get turn I an predecessor as run to funds on would of rate is I of think million up range going. the in one on fee stage. be that think run be they bit plus QX as And additional approximation I for the a number there, third-quarter little a more off, at reasonable management period those an would expect we’d that a funds so ramp basis, the And be could of think we something this in that

next line from Giblat BNP. the Please with with question. Exane comes of question Our Arnaud proceed your Instructions] [Operator

Yes. what Thanks to view are the taking have being give current my Good wondering deploy you returns morning. same levels? been if scaled target could an specifically us you for on or opportunities they you Have used was returns I capital these these update have how targeted and market back used that question. to discussed or with given investors. been are

on why Sure. Scott Arnaud, to And it’s we about all in I’m we given much give because update let start, honestly, terms about asked of probably target detail had deployment as don’t returns. I we’ve you go an overall through should. as glad today, Craig, I’ll talked haven’t deployment

we’re continuing actively. is deploy the I takeaway to main think

was little markets first deployment of in private first $XX a a invest continued So $XX little we’ve billion to million. over deployments, over terms meaningfully half LTM

what So pace very again, you’re is really diversification. and there has that seeing healthy been

the Rob remarks, QX equity across between $X.X and billion So and in mentioned prepared private this real individually in deployment estate. $X.X was infrastructure billion our all

up core incremental a that the nice So growth piece. balance really we’ve and making had strategies with

in probably dislocation region. seeing of leading in more themes, of better that for good Asia, us seeing terms this at prospects. in moment, in overall footprint think And there’s I strong overall public growth markets, And is companies investments I the opportunities in the with growth is, the in really the what really you’re to think firm. you’re

billion AUM our a of $XXX as year to So XX. has and billion little from $XX credit over ago increased business June a

in markets, of increase public just again, recognizing the meaningful increase the a just footprint in in seeing dramatic – firms. you’re So deployment the

credit, this So of cetera. opportunistic the number across was – pretty strategies, actively deployed in again, was a terms based asset actively of et quarter, direct that $XX finance, that billion lending,

firm in Yes. think really And over it. prior of And several change we’ve accelerated about things some by is, COVID. with we’ve that very years. short all talked around those about bit on returns. hasn’t of of some been a targeted are the benefit next years question But any get what having your themes calls. last the focused been themes we several answer we this there think The one just behind is will the virtue how on And we going been have Arnaud through the frankly,

is behind to private as of equity, if and an their housing. at like back nesting areas retirement series a renewables telecom Atlantic own and the where a then, multifamily health finance population we’ve like those. very wealth. lot properties, been, manage of tax our you has And people be and investment obviously real looking pulled couple digital deferral, the and would again, banks and of wellness, investing the credit So Infrastructure, look based in themes savings deployment Global asset as a example, in estate, and fiber and security, industrial big have and technology, deployment aging cyber themes and behind thematic of been

these some we that outsized of these we’re dispersion think a finding themes is generate going to the opportunity There’s And big big be so winners. And lot market. to of and be there’s behind what big get if a returns. there’s you in will areas themes,

of We’re behind are others. a be getting sectors working And those overweight strong those. I so effect benefiting our returns are of part in that the themes that is underweight those lot we’ve you’ve and seen think been reason

our haven’t really continue we generate outsize think continuing we’ve and to targets effort to changed. returns that to opportunity pursue by an got So

comes Stanley. Michael from next line Our Cyprys of Morgan Please question with question. the proceed your with

can sense And capital there, how us timeframe deals out more the to targets. for strategies to core PE dated and taking core are you longer back for KKR. on make Good bit and built work? strategy of What with you’ve sense platform circle morning. hope all maybe to economics work the that a appreciate remind Wanted the that can infrastructure. the those just elaborate would for sort putting investment I that can your Thanks the question. broadly. lower what’s I return on

interesting So Craig, start In to infrastructure begin. it’s an there? Mike, don’t why is I place

case So investment as terms walked we at Investor infrastructure how through study of build Day, really a our to platform. an in look we

then And performance of strong and that so geographically. flagship there’s innovating flagships that with happen – you and And can focus can on innovation strategies. begins scaling a those

you’ve with PE. and strategies core also can adjacent that through and Infra, So through you’ve come that seen seen Asia

that’s really where we So are today.

out core and in generative And Fund and cash built for infra is predictable core core. a Series three have assets cash on infra terms investments, the fund Infra We a with Asia, long-term distinct segments, targeting focus of more flows. really series mature our market franchise with and those focus Global on diversified

for simplicity perpetual and open-ended risk execution vehicle. looking we’re all low in So that

our focus want here focus. is to really the so hold simplicity. buy and And we That’s simplicity

of In we a that’s equity, for investment home find private where of great opportunities. can’t really core terms innovation

so this for value expect But where is again duration than reward strategy a risk again, XX funds. noted the And compound to opportunistic XX hold is PE as years. we and you long to different investments our

less consolidation at fragmented point. cash flows, for a looking business longer opportunities been often with good businesses sectors. very Again, this IRR risk, this mid-teen and We’re disruption we’ve at

the to a participation XX%. The of since companies. think to And core IRR is have compounding portfolio sheet, PE contributed book balance model relates point here I today gross really there’s a and final inception as the because of value. the really has our think it core you We is our what incredible given on business

line core under that investments. the of Page associated value at That cost press the see part $X of look was of of $X.X release, you fair billion it. $XX.X on has just of $X.X billion when our billion billion XX you with So

over have we billion sheet. $X our on embedded gains balance So of

from capital management and additional an time. that in the performance compounding the over aspect were addition, powerful can here. participate So But with in economics that third-party carry also participating with we is shareholders the way in success fees

Michael, it’s Hey, Scott.

couple of I this seeing. flow a understand, Just I’d were add. point deal is One, things the already we

think already seeing it reward, that being flow, fit like we risk were this investments. deal And to that for lower homes have but by the So it But risk, duration point, We investments, of we not our now nonetheless, those longer did Craig’s was liked, was not we opportunistic into teams. the were because really did opportunities vehicles. before. existing sourced we fact

We to strategies. these new have actually teams to not build had prosecute

teams just can considered they for in fit fund the they existing investments, forcing actually if core. the these So be don’t then are opportunistic

profitable, so actively of we’re been fees deployment it’s And flow for the deal it’s been And that very was already us. highly incremental terms deploying we have of that. and in something here. a AUM source And monetizing period, really that

economics? as first pool Rob, capital be that’ll And is our we’re time. think than with for up probably add run pick period deployed to over a you for three core I operating a to on PE current would strategy get at we’ll that this of capital well five-year rate that over faster to expectation core and infrastructure why continue that. don’t

Yes. the these fees when products Mike, both invested. so management is on get the capital paid

fee if strategies And carrying are eligible. costs and so AUM now fee AUM the in this these capital capital right gravitate towards except both time over is largely paying and

performance And so long-term. revenue be we contributor think to we’ll over the a

one point you look interesting over at earlier, LPs Craig, it’s to commitments have billion is it’s that’s but interesting ties been that from come this capital, $X of question statistic kind Mike, raised into the when core new XX% are infra and of actually the of KKR. Glenn’s an And final of

base these So interesting helping in the us an terms broaden statistic. of again, LP are it’s how strategies really

from comes question. Lee question of with next Robert KBW. your Please line with Our proceed the

number then what Thanks reinsurance a is? one, they’ve kind possible of regular of on a flow, think billion on they the for transactions, their taking the got update capital available amount what they outside through about transaction. of it of Atlantic, get follow-up. just is sense to do regular flow maybe seeing of is just And the Global my that quarter-to-quarter once the we get if deals of I us it guess, just if quarter. Like, closing don’t kind this you’re $XX

are activity, I’ll think take the individual in about I’d point. remember Great a Scott. Look, Rob, a a away and couple block it, of of that, things in presence raising have One, from terms it’s way they significant money distribution the organic sector. to

the on give that’s you things release of number work think if side, But I starting also of annual $XX the $X more block with. institutional to kind other flow know of a the more so press and gets and that a the And that want attention. billion to that good or is billion and to about we there. number There’s take stuff activity gets do focus

We have and active flow reinsurance this There’s active, counterparties. pension incredibly different arrangements with more getting especially a number is of activity, year. risk transfer it’s which

funding agreement We’re also markets. active the in

as opportunities grow dollar ways significant. is lot the are plus a a those that well also there’s side on So And billion institutional of individually. to

that see way we so, as grow. to And another

terms the of on could So of the billion with $XX as as you And there answer raised this billion business more transaction we kind runoff reminder, of primary available when this a from several capital in capital to from institutional related terms in flow earlier and an plus $XXX to blocks. question, $X billion actually think is year, the million closed away in the well. we the that business of of question, top incremental

new of generating our we’re by virtue So earnings. capital

with capital we’re if runoff, all needs the more We’re with able And all we’re it. of that the up freeing to the be plus we’ll confident the affirmation some and company highly activity. block access capital replacing

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

I million, KREST. around retail Hey another guys, for question sort there follow-up to thanks about the question like related is $XXX approaching here. looks specifically AUM as taking and important had the of part the but market. you not a affluent about and whole, as a the an KKR of huge obviously of driver affluent mass context potentially, in think It it’s retail

just to distributions kind XX you specifically broker there And for we product platforms here, retail your resonates understand the KREST opportunities that guess us in wrapper type really kind market, to through distribution thoughts of you platforms contributing cetera. this be additional that how Thanks. sort of can to trying flows think having with walk many sort other that. distinct to on partners. I And Act dealers, get early through bring of independent lastly of warehouse mentioned some thinking of securities, that might of et really I Greg, and like So, here sort are advantages of a maybe any maybe in core something

I of daily a for Real familiar, less you acronym for So with those and was continuously re-taxation investors. offered just don’t ticker. fund It’s closed-end KKR via for why begin? created a it KREST Trusts. is – pricing Alex, individual features Estate does registered that subscriptions an Select And it

So beginning in time only raising began many an platforms exciting over two we’re platforms which at and do us. we very see expansion to for June expect globally. We capital of KREST is evolution, on the across

we have Alex, details. So don’t of a ton whole

we’ll we end us; move forward of I a pleased main for here addition to our and really are we’re think as steps. retail a keep two relates and the you this, markets are through are the tailored the to the from in takeaways as products it’s again, opportunity for here with One, really those first And abreast big threefold. the you size launched strategies as other towards towards both three, massive; it – market. products

Citi. line of comes from your William proceed question. Katz with the Please question next Our with

for extra also the taking Okay. Thanks questions.

Rob. again, a So two-parter for one maybe

a go from back, Where And what on the way the As you turning policy? placement step Thank down here? we given by little a any maybe on bigger be FRE of quarter, thoughts of dividend some to obviously was this funds. bit margin power, think function you. stepping XX% do fees, and seems then about earnings

the for question. Thanks sure. Yes,

to see that in But dividends pathway opportunity our to us dividend that your relates to think pay over time. the And work the flagged we low take we technology. mid been We to investments, we’ve we we But XXs. nothing’s to do policy, additional across a so with we’re then we we’ve distribution up that’s efficiencies XXs. expenses. as drive over scale returning operating We’ve going question going margin through to capital some expansion of to going in to think in the operating about generally the is it investment how that think to And yield to And do for make a that investments time near-term shareholders. relates in over signaled continue even here changed and long-term. expect medium some it see those as near-term the that past

we’re modestly has And Our at consistent now. basis. an expect annual past years just say, our look policy a of do annually. to been to consistent for to the beginning that continue year, we’ll would think we like and going our years. in past done expectation it We’ll to to evaluate how be about of we dividend on that as it number we the have that have done is increase in years We

the be forward. should that So going expectation

comes the with Morgan with your from question question. next Michael of Our Cyprys proceed line Stanley. Please

deployment the here. if just the More taking for follow-up follow-up the Rob, I question, and sheet balance maybe guess, realizations Thanks off with help for a Thanks. you in us could quarter of please? out the

$XXX On $XXX was of those the basis, realizations million are quarter, of and realization. about numbers the balance deployment Mike off a were The just LTM X.X deployment Sure. X.X sheet and million. in the

hand to session. This question-and-answer to concludes remarks. it like I’d our back for Mr. Larson closing

to results. of course, morning. you you next your free interim, to again this please, in feel We directly. you, everybody after time chatting Anything quarter’s for forward again. Thank look Thank once out with the reach