KKR & Co. (KKR) 8 Feb 222021 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to KKR's Fourth Quarter 2021 Earnings Conference Call. [Operator Instructions].

As a reminder, today's call is being recorded. I'll now hand the call over to Craig Larson, Head of Investor Relations for KKR. ahead. go Please

Good XXXX operator. Welcome our to Thank call. morning, quarter earnings fourth you, everyone.

As this our adjusted-share GAAP our as is a we Officer. I'm non-GAAP Scott remind release, report available usual, joined that basis. measures Nuttall, at CFO; on Lewin, everyone are reconciled which press our and section on our the Co-Chief refer Executive we'll We'd And to call the to morning like numbers kkr.com. an to by on segment figures in which Investor Center Rob reminder,

call do refer events Our will and factors guarantee contain earnings our statements. which forward-looking SEC Please not performance. these for cautionary statements, about or release filings future to

to full. step KKR take talk about Now and a for before we jump like our back in into results we'd the quarter,

we our at things. we X see look As business,

last First, months, over XX AUM at we Organically, see increased XX%. scaling. the KKR

size, statistic. acquisition, is XX% an of alone a asset Atlantic Global that the remarkable our pretty AUM including business management year-over-year. For increased And

Second, the we're the of reporting today. scaling numbers the you're across impact that seeing many of

Management it more for see than financials. distributable Fee-related fees XX%, our in XX%. doubled. the year earnings earnings increased You increased while

of the strategies franchise, $XXX increased equity from to reflects core see for record statistics at these our firm. XXXX, broad at of are raised raised that $XX and across you our invested billion. level. including billion In for new growth that billion X/X Investment the a In in a the capital $XX figures so of And diversification. was us. also activity, All for is PE. it capital over new operating And breadth year level and Approximately example, private XXXX, we

coming our with real X/X from assets X/X businesses Another markets. came public remaining the from

other about about a We X from and it neat our exist So our truly $XXX focus the that that is that firm. says of on lot strategies think KKR years diversified across that ago. came XX% billion innovation. point fundraising didn't And was the at culture

have on ahead avenues global ours And and our alongside looking of outcomes very to Third, of that dislocation. a dislocations, can culture touch we lead large there's and unique dry in are have billion all lot model minutes. can we periods, in opportunities focus with we growth as capital of take finally, remain which basis. focus periods advantage forward, Suffice ourselves. of we us of during world $XXX a a going to feel remember, the of compelling the as to powder. opportunities advantaged of differentiated very Rob to find few of is fundraising pipeline There multiple we areas our long-dated business in identifiable constructive a and during and think few all that's on pools say, uncertain these we that and a unique on plenty on

year of our to share share figures us. full FRE of strong per share turning after-tax was of results. us. $X.XX The earnings are of another $X.XX are Now and distributable for $X.XX fourth for figures us. earnings an per quarter very per quarterly per share, record after-tax Fee-related record $X.XX annual for DE And quarter

metrics. Looking at operating the quarter's

fundraising Xx to XX% estate quite from minute mentioned of $XX about the now of billion is addition almost acquisition final close, with totaled approximately a this I strategies strength private year-over-year. its $XXX predecessor. the held diverse, by billion, February increased billion its raised billion Strategic importantly the $X billion from across equity, and Notably, Global capital new for larger fundraising XXXX significantly or real year's $XX capital Atlantic $XX to totals in AUM driven our up ago, and asset record Healthcare This this New base. II non-flagship brings billion, than several as strategies. The infrastructure, credit. $XXX Growth bringing raise and fund

through second life, enter are across Our adjacencies they third geographies. in the or the strategies grew into fund billion invested equity alongside inflows year. private as strategies by and And activity, both strong. and private we innovate scaling in of GA billion across younger We and $XX organic $XX their core and continue expand were block equity traditional in Capital deployed to quarter.

amplified strategies. particularly and for continues asset-based platform the on additional a public up activity of capital in seen remaining our Atlantic. choosing driven same Similarly, estate change estate by size with X.Xx opportunistic most the a step of spots. credit quarter, deployment type at in deployment while function year-over-year. to and in direct billion, We've diversity GA credit our real level brings finance, in that's of and Our XXXX time the robust run invested added lending capital the has QX's operating side, real $XX in base the meaningfully judicious private see the deployment market been with by rate, high to rate to Global deployment

see just perform as strategies front, to at funds to continue Now we and very our on a deployment and the fundraising continue strength high level.

want on this return walks detail Rob through profile. X where touch of Page earnings the investment release, performance our year on and investment for capital And finally, quarter we strategies. earnings see can across to the before I the You

earnings Rob. the of into majority And our in with week, repurchased $XXX quarter of XXXX. be will And of we increased over pleased the can third turn of we're see first per share. for in practice, X stock million in to the $X.XX Page beginning an with announce this November structure, release, our quarter XXXX call the consecutive of our with open our that, the coming call with effect of the to last of midst historical market through all This since that volatility. announced dividend in I'll dividends consistent the we since to is third you from the dividend annual As any we've to year our the corporate $X.XX increase at changed bottom go change in and

Craig. Thanks a lot,

Now driven a our Management flow was investment starting success $XXX funds by through XX% fees really QX These P&L, of AUM quarter. walk activity, this across active few quarterly yet you to fundraising line with our growth versus alongside capital past through paying to of by billion million. quarters $XX in closes, fee close The quarter of increased is our management this over experienced the to XXXX. not fees. fee-paying bring committed the another number billion

number monitoring fees quarter, This primarily for million. revenue we single Our which transactions and a in greater by our us. franchise capital high this that record had net encompasses also fee only event $XX $XXX driven and point transaction is figure a earned quarter, markets were one than This was of a million.

diversified the by diversified approximately the multiple Capital each totaled different revenues clients remaining X/X of million across asset with $XXX For third-party related our Markets equity, infrastructure private classes. quarter as type, to with revenues of as year, well

in firm. professional we've higher Moving XX.X% discussed came while levels as expenses. compensation million. Fee-related mark, previously, well in activity that to placement operating our given at of was our right $XXX expenses the fees came at the other The fees range driven across by high as here the midpoint increase

And versus yearly XX% our QX locations, operating margin FRE also In this in basis, year. FRE all a XX%. for up our costs this total, fee-related most $X.XX leading is to time of across the back are uptick year. which brings and an quarter, to last office We of the $XXX in The in quarterly the versus XXXX. at both came per-share on is for million earnings

quarter. to interest $XXX on the million in totaled Realized realizations. carried moving Now

realized totaled million fees billion of incentive performance. million. And largely realized Our Together, Wace's $XXX Marshall the $XXX earnings. in due income asset operating streams these in earnings investment to totaled strong management resulted investment quarter, $X.X

This million representative result was benefit in million operating operating earnings. sold an earnings. our its Energy, all In Our with quarter energy a in of expectations still developer, a of go-forward an $XXX at insurance while to solar amazing are segment recognizing $XXX-plus interest QX, Atlantic of gains XXx strong Atlantic cost, and not also XXx really its Global that renewable Origis experienced incredibly shareholders here. for segment Global resulting

$X.XX our income level to the we per seeing were share, Alongside of share. stake, is distributable of or our are XXXX our year range. scaling totals for modestly our up ROE of our progress, AUM of we earnings, performance into partnership a the year teams. and per XX% Xx. feel now variable integration after-tax have been importantly, Comparing In our per book XX%. Most expected our represents continued quarter the $XX.XX. increase the in over an XX% in better also any $X.X This share including to all compounding would DE XXXX, return billion couldn't at profitability which value the the total, and with GA, Excluding bit earnings above a above a operating management, core collective for investment GA, still strong about

XX% value in ownership. as summary, results. Global this our high economic in As of Atlantic's billion, clearly level, the $X.X our a our component interest of this, both continues an book quarter and exceptionally now XXXX business XX% perform well In up first since at to is totals evident our as QX our

more to there in Now a I go would additional through detail. like topics bit X are

our believe to billion we $X.X XXXX. The profitability, rate run generated first yet potential. function generated is let these really reasons our billion we XXXX, run. our reflect of we a of In operating that distributable And room why almost a $X the There even increase have potential. we results number clear, from income, to step alone don't in are be

our its I here line. average future was just either or A committed fees way. that And At weighted Let's capital fundraising which will fees. potential come we in management basis start of in $XX points, as with a management it yet will minute. $XX investment that fee through invested had of from year management has a billion a period, isn't meaningful is $XX And that XXX billion. ago, enters running billion, management XX/XX, number drive to north fee our

Next compared are billion our embedded carry unrealized gains. ago. $X.X year-end year at $X.X billion totaled a to Gross

record gains realized for ago. performance realization XX/XX $X.X at over billion carry up year, balance really unrealized gross a income. a us after even positioning billion, $X.X increased were from sheet So embedded year well And XX%, future

leading really So relationships, expand the performance embedded to us. I'd saw increased continues into our as to business, meaningful of really over over gains the realizations our continues on: to we in in step-up have That in in to front yet firm in similarly, the turn, grow, still while of and touch Capital topic the And expect XX%. potential sheet pipeline. our like the strong opportunities Markets second this, XXXX to so fundraising footprint and leads increased overall XXXX, more meaningful in deployment we balance finally, a

and runway opportunity to we XXXX, front in we be forward, so of strategies As we us. in look of XX-plus across a have expect fundraising lot

of terms highlight focus, In areas X. of I'd

is XX% private this billion first has now annually. that wealth. a assets, The We over manage channel. and we've little been to wealth meaningfully raise contributed area about Historically, private $XX wealth private in of we XX% the money into investing

innovation, brand and With our it the XX% and technology the our investments time be that believe track we're raise. in of of over should money new alongside that making the to people, we strength XX% we product record,

driver private from of X seen XX estate, and $XX More GDP outside The X across Asia-dedicated offices we've from our is expected And equity $XX our billion we with Asia-focused that years AUM PE reminder, gone growth. be Asia, half are strategies of than the billion businesses. of In fundraising credit growth our were to last second area the and biggest for early in across to scaling has would Asia. strategies being to XXXX, region. of come be We real the over expect as as Asia. a growth significant infrastructure, X in global

Asia We our a a today, us. leading big and have building presence opportunity footprint a in priority and for is on

franchises. would adjacent area core what are private all third well The as strategies infrastructure. to in broader we're These be estate, doing as equity, real our

turn X $XX today. at figure continue A across think capital, resources And X to geographies. are of estate north real is estate is equity, across basis expect flow within a and it real A ago, estate billion. XX area So $XX in we resident that fourth our leveraging raised let strategies $XX Today, that of lot were In billion. distinct over real longer-term estate real what And for all year infrastructure. year next continuous across deal we're today, the across our we the strategies, ago, In estate across And that fundraise $XX look momentum generation be fundraising billion. that, distinct to including XXXX, private we are billion strategies the is on me already expect figure the franchise. and XXXX, a doing of across can to AUM to with opportunistic AUM firm strategies of core. and which real be was Scott. that

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

AUM, Craig in we of Rob incredibly we XXXX we're was presented we be And record of capitalized up positioned. bigger by markets evolving and would record and dry billion a years opportunities earnings. to feel the thought last this to began FRE we reviewed, XX to In ahead work with year, volatile last business-building summary, and and are with more $XXX macro at powder, an point. a As strong The picture. invest well well year hard ways show of XX where very of in

Last a little X full on where we're and we capture we opportunity XX gathered review what It was where days are, in our meetings. of energizing to we're we I our right you get planning extremely also color While an discussion. today, us. front annual partners give to to for of need week, to want going together the

Said platforms April, credit private Day of we the infrastructure, the runway another impact more that what the at Investor our estate, see multiple believe and others. and private What of significant in opportunity year makes the to we Asia, discussed amongst than we including opportunity real faster and and all anticipated. become. As meaningfully scale last businesses to a the opportunity is we businesses destination we ago, confident progress of growth, we these discussed products, insurance, can thought our week get greater us equity, last simultaneously, suite way, core our and than ahead markets wealth, in our ESG, we had across in can growth even quantum is

what's for more critically, progress great And I particularly was years team. confidence have how our growth and Joe more XXXX is last in for the while exciting a firm, year made So the we the positions us year had never ahead. in

a focused group and functions our have and businesses each motivated for We of responsible growth and highly initiatives. driving our

and updated enter people take significant our year. model Session and So prospects, our XXXX look in our you that, to happy the to your growth we with And throughout forward Question-and-Answer we're conviction with keeping questions.

[Operator Instructions].

of line the Blostein Alex Goldman from comes question with Sachs. first Our

tactically, then, expect ground. curious hearing for a number you how for fee strategies means XXXX. that I mentioned you appetite Rob, just you guys are And could much management of on want growth. with and any XX-plus start couple are around in size what on I we hear first, dynamics on fundraising across XXXX what initiatives And was I current fundraising just allocate broadly, you of even zone not to don't Why whether and to guess, having things. secondly, a growth? the to private LP to fee those the what management the really markets, to kind raise if or ultimately but conditions hoping macro impact of

sense To have I of for our of we're a bit fundraising part XXXX. granularity our Private Why level in we tech terms impact we're and give core, from the Americas equity Europe us next-gen ran give across the areas really, in Equity. fundraising fundraising launched In private strategies. core and the the areas of fundraising the terms Craig. to feel why is where like in still so it We're obviously fundraising focus as More for a that question, no narrowly, X is momentum interest it's of you growth, of strategies. us? strategy. great, businesses, for core to private don't fundraising a real as that first of activity through don't -- equity, your well of both which of those estate continues Rob for plus side, equity core change that's lot a the in private core are LPs we're and the In for little infra begin? Alex, all I breadth more having

the the Now ended, estate, In we've well. in core Asia. that's for sidecar and about, active we're also Europe of Europe launched core In in plus a the opportunistic to that strategy credit addition credit, core ended. all European fundraising in fundraising as real open are We're fundraising in continues estate U.S., strategies plus to Global in addition for real addition where as fundraising asset-based credit, X credit Asia. and stabilized infra, Atlantic well strategy as our Both and we've for finance, in estate And spoken geographies, credit we're real benchmark revolving opportunities latter in plus, strategy. estate in lending U.S. the Asia to X real infra are partners, open also credit, for those and strategy.

look has we partnerships And hedge platforms all more been across suite credit business addition have. basis, raise of the CLO fund as Our to that's democratized capital to active. we continuous on the leveraged that in and products and a our

again, the takeaway, we lots just -- of lot of and it it's continues So momentum. like really, a feel have to I overall think activity,

Yes. add, give we're incremental The seeing only Craig, thing with more if yield. agree no The LP I only in interest I'd would appetite. anything, assets color real in change is, Alex, with

with protection, and think some so infrastructure real inflation anything So estate.

more to pick second inflation interest see you expectations up in we go do As we're classes. part? the up, on Rob, those even finding asset want

Alex. Yes,

the line ability management referenced relates never time. felt of item, right billion the piece good capital hasn't management I of about through, assets over it it gives we've much do the now fee through across that firm Obviously, to we around yet Alex, be $XX to to with grow our our fees products management the fee as we are Atlantic would As as it, management flown just sustainably happening our than that Craig product higher where us visibility innovation today XX-plus thought where and, fees the that's frankly, relationship tomorrow. grow ability new our Global just went

So fee to I continued growth so sustainable think the expectation be time. basis being a on management should able do from us certainly and over

my around And capital then follow-up is just Great. management.

So you pace guys of picked far obviously first the up in so the quarter. buyback

on are we the at And around given of share lots here? should going forward, your buyback the share thinking the from gains. the obviously, in about robustness for of embedded sheet about repurchases Given How level capacity balance realizations the you this be thinking and comments price? business acceleration

key have a allocation that Yes. us consistent capital you've over that is for and number the last approach, us we'd on years, to Alex, anticipate continuing. heard for the and of

And the we growth, striking at to think cost shareholders for so and sure return that allocation as as can overall above about equity. so want right capital be done ROEs and strategy, high back make our capital balance into between long we're KKR that we of to investing our

those take let's So in order.

float. is our of almost of work XX% overall free We've That's outstanding, count XX% shares increased since to share KKR body north about on increased just of our dividend our our Certainly consecutive continue want shares we've have would as keep feel or relates retired X%, KKR And really into And we where flat third now. these our our back at our obviously, buyback. we almost we C-corp dilution. it as stock, became you goal seen, invest to good You dividend. repurchased levels, a to million that we said. employee XX year of to then share

certainly us and the stock. in would So see the be over acquiring expectation market retiring I KKR and think time

into capital returns last supporting opportunity years, whether reinvest In for KKR, of KKR, innovations the that commitment. big a overall so as is that are with have. products number grow we with or in terms it we're commensurate that priority new over certainly or that's back new And M&A us seeing long of to supporting balancing to

think that opportunity. going to much remembering shareholder also think about capital a worth employee ours in to overall our we're competency allocation continue is We So a that capital is ROE single-largest if we base you is think around KKR. about core an framework framework, And have highest real I as KKR the ROE-based. feel to the it's capital allocation very moving that's of

come So aligned that a from at basis. we very

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

your Great. that is Maybe, of first, looking at fundraising XX% light overall a particularly in from wealth years channel XX% your management. of in step-up, pretty big fundraising. several to Generating

know the kind have of next increase bit what So of could I you meat or sitting little specific Wealth more you would you products confidence mean, give new just drive that on channel. specific bone? had Management. Head that hired you things But that? an maybe that coming put a I a Global here the whether years, of that from in today couple that of magnitude can Like

private here, at private private are as insurance, everyone is Total Why growing, you Craig. time, don't wealth But of $XXX investors And wealth a as client massive at combined. priority almost as big wealth around know, pension begin? I a it's knows, is is institutions. addressable wealth, So sovereign a trillion. assets and individual all Rob, as be to have for fraction as Yes. end firm. estimated it's what That's market. is so we we that the is a massive. market allocations, the And XX% find of same funds,

less to X%. actually number so in we X% around our X%. by investors And is think . individual And that are than research,

market. with have underpenetrated It's that enormous end allocations We increasing. this are

And think be focus, I And think our threefold. exceptionally I'd investment we And opportunity. the track we're record, really our so it's our say, really a as think of skills, winner huge combined with here. positioned is brand, a we to well

So private platforms. one, wealth partnerships our we're focused on with

the global So the the RIAs. in banks private banks. wirehouses, the regional private the and broker-dealers, the U.S., independent it's that's U.S., And outside the

And by And business so organized the correct. geography here. you're is

that. hiring You've seen some related to

family single-family net the multifamily, part, on ultra-high focused so we're think worth. capital offices, that about -- related we're Second,

those large geography on we're organized product here. third, very we're And focused some again, and by of are folks And creation. And then very sophisticated.

a through private limited qualified look we've the historically, solutions number funds there investors wealth as who fund are at are appropriate. of wealth offered space. private So could private only that But private really,

fund private channel. on democratized democratized registered and solutions, products, in these more the much new within focusing we're are solutions that have a creating these wider investment wealth applicability format So

the with suffice I we the moment yields, the with mentioned Scott development brands, say, with think product have encouraged et including, ago, all set, really maturing and the of the in where a of we channel, all we're to So this we which opportunities are of real when our our combine you and together how situated with cetera, that is ahead assets, that of put us. have the and products that

realization you as maybe on start the us of lease a outlook And for mark the are first Great. from I to investors equity of year, kind follow-up, the start mean, generally concerned through now Okay. has you where guys here. year, update about Could QX? been rocky the half of quarter a maybe pretty the things guess are the I in so right

Yes. here. some Rob, good news

to we visibility QX, meaningful amount have As monetization revenue a it already activity. relates of good into pretty from some

that. that bit above As a million, around is $XXX now, maybe of figure

reminder, is well both we that's know, our as deals in you collectively been already close that or that that as performance expect closed to our a signed up and have across investment As from And as income. QX. are

split. really So we've your ever one income the then now. It's the is And right stage I weighted had for around we're quarter. investment strongest at know XX-XX thing the carry relevant there. this This of off to models the other start figures of is a good

some gives us QX in and So good yes, to a year going we into support feel the like XXXX. pretty start

the line Katz question comes of with Citi. Bill next Our from

Okay.

the sort let for interest I if is a us was moment. back rates come sort that assumption then you your maybe to So for you know were And any of would rate have between to impact if supports versus that Atlantic? you higher what your up, impact wondering of XX% there us could can walk maybe through go what fees? to be XX% rates management a ROE ROE Global net on

Rob. Maybe market. are the of where question. certainly see rest going, for start so increasing the with let's interest we it's and Thanks rates rates Bill, the we like do think

of fed conditions. the this we to see the funds increases time, get coming do we're more year. I likely financial at back think that But X on same robust

our couple or from here are can of business us for overall next positive So to years, we environment perspective. low I that model be in still an which over be expectation an rates is where place think the is a negative

competitively Now of are areas going, well think, positioned. I of think but uncertainties course, there are we're, there's weights around where number I pretty a

benefit you are Global biased rates to referenced, over Atlantic, interest from rising largely As they time.

there we well billion how channel a positively of that ability generate about capital $XXX are biased as channel we So environment. to rate to in be rising as able from and all think their think individual our sales

around think other I think well there's so positioned. of And a number areas KKR as competitively where well we we're

You credit there or billion over of business close Much $XXX of rate billion business, look at AUM. our third-party exposure is floating $XXX our to in nature.

tend so And additional much that is to of higher. the rates incentive So as fees many nature, in be the earning across returns those products up. fixed hurdle rates interest of rise, all things go equal, our likelihood

your So hopefully, that helps question. answer

as still tenor of you your But appreciate saying level sort not I of compounding capital how where well then given set you of only maybe of the nature of And flagship plus back of confidence. well. follow-up, growth? to in just And of prior that are about guidance your sort certainly billion just the FRE you that, into just back this a think this just terms plus in maybe about triangulate of of $XXX $X maybe sort the raising the into sort the guidance. and for year of Okay. for and to coming can what but tone XXXX, you're terms year,

of cases, as drive environment substantial that many have the see ago. growth, or environment we expectations relates of capital. well to of an growth we we exceeded X XX to we're obviously, to management would where well for numbers. fundraising off we Yes. fee we to should months I of raise have even we as growth we as fee well the well management to $X.XX. and isn't be continue this see No as just base as In as a updates earlier, a of to FRE And result able ahead thought be really where it so mentioned Bill, able fundraisers. And acceleration continue ourselves, to a robust be both

So we out. should we be that laid target well ahead for our of XXXX

ago. XX it think I was months about

could add, Yes. the thought earnings very we last The quarter, fee-related only I'd in still over double X years. we the we next said TDE thing case. much That's Bill,

updated well exceeded no but it to for we suffice year a say, you guidance ago. So 'XX, what we told

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

year slower just But the start and it's It's for early. look the So Markets to they're a at if there's Capital down. activity. for M&A pipelines -- been IPOs, all you

I think think given how Markets, slower how susceptible may at realization monitoring -- would just just year, pipeline. curious think broader with could pipeline or not that just be thing. the picture, a on or a Capital the fees what But transactional look gave market the just you for that's be Markets or to of realization Capital -- rate helpful. you've may some that? past, pipeline as you But number In core you run the pipeline, us you anyway, jitters the dollars insulated

Rob. It's

step-function It little really a XXXX. of Capital Markets let's think did worth bit spending a increase -- time business. in So I our on it's have

last you of Capital million If over has averaged $XXX per back, our the step Markets quarter. business a take quarters several about revenue

to we've here. definitely also open compliant, been have markets but share continued take I and really Now think

of one the in and our a grow million following meaningful it continue take a next $XXX we in can business We environment almost and to and business I where from of revenue third-party really XXXX -- were how expansion. point share its And the of the issuer to do not take our too able a a by in capabilities place to much more So to our our different from several that think KKR revenue capital XXXX. KKR But be of a a environment. perspective long market volatile this revenue generated our think in And important includes from I think of over that's of is internally, ago. lot think in quality lot calling business relatively in could to product lead it's the for and as terms Markets for take a gone its aggregate still that our is there's way. times. following people, we think And in activity, got think of non-KKR bunch we business the years I business our be run It of growth. We've it worth was to our Capital you that hiring plans geographic But not in is too reasonable that business, million where $XXX market terms through out a deployed, where being we in own that expansion, model right revenue that. able own to we've speaks scale us that think about business. rate that's business,

increased Markets of breadth from We a deployment fees. at came where on $XX the you XXXX. Craig. are XXXX, a it materially, We at you some in and that, Markets the you were deployments as And for look to When revenues. another and billion looking firm, Capital that billion sense Capital in if interesting, at had impact impact of were these statistics it's obviously. Glenn, $XX us give look just of kind big in of

private increase us, in come equity. it for didn't So from that deployment really

$XX billion we $XX.X XXXX. invested XXXX. billion We in in So invested

KCM year. feds from to went Markets $XXX And from $XXX million in so million the Capital

when up add us these X.Xx, areas are similarly, so and in deployment what growth can for think are Markets the going XXXX. capital about equity, fees, And I went X.Xx fees estate modestly. infrastructure, up up Capital really you went $XXX us the were $XXX private they from up you driver, on that deployment deployment sizable went core generate equity went saw, million But big cumulatively, generate X.Xx, for million. in markets real that to to

to -- one So those be again, that is deploying solely but going one how on And certainly the a it is factors. becoming KCM dynamic we're is have you deployment capital, is based it's of to be a more going not where broad-based. lot

firm, really, fee it's exciting in you're seeing also exciting in of from real Rob the management as framework from the standpoint. in think, a number, that the Markets And I So a which said, footprint, is Capital a standpoint. development

the of referenced have Glenn, I one environment impact the you Markets know other. monetizations. had Capital on

as need investment monetize sits markets portfolio. from with be straight-line sheet that over to embedded monetizations balance be of of continue revenue, going to billion to And shareholders. where have up and able there's we environment I gains in $XX I into of think think spots a revenue areas need to will big what between going of were $XX and a And we over of we stability the here carry time monetization this generate don't XXXX of we our market QX, that I some market off embedded for and a we're environment in billion example embedded is in kind come a to the good does the nature. that pick unrealized able advantage to that. our start and good to flexible be periods need gross think is our will our We but perspective,

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

some Hoping an a year-over-year, of can get might capital we you to Clearly, update able talk could sleeves. what within on about be on go-forward and we strategic of a just but of kind that your the perhaps uptick the perpetual expect Great. drivers increase nice investments basis.

very think broad-based I it's Gerry, -- Craig, again.

capital great. also multi-asset Global very which economic these And can is from partnerships. class. scale, addition itself It's dynamic standpoint. nature. raising for to that, in I mentioned X in of when an where the at as time, example be an is Asia That think can perpetual of capital. perpetual we've, is real by real estate I recycling, longer-dated area you you be have to going perpetual us valuable and look again or lot and which continues. mentioned, think continues in Infrastructure, activity where standpoint from Europe estate, to core we're over strategic-type capital I grow -- a aspects both a It's

But going to on those continue, you You're not to see that. quarter. that again, activity keep dialogues and up and from us we'll abreast date every

Gerry, our was one perpetual Page It look year-on-year at see press X our up Xx. thing, other you you can capital. if release, over on

Global lot our last is slide don't we what But to up want this perpetual Xx capital Atlantic. in still Atlantic, was of is get that time that Global a lost year. that, year-on-year versus Now ex

so a And part business. there's lot of momentum of across that our

just there And last to we're the investment, the But right, my invest perhaps Can technology. I things notes were progressed to quarter That's to are relative operations private I where looking you relates a sort if about update headcount, tracking and of continuing it just and the of sort give you as last around how to perhaps have an think talked of Great. thoughts and how then follow-up, in helpful. triple us you quarter. wealth as sort channel. appreciate on

it's Gerry, Craig.

into we've feel sense suffice don't get underlying the individual that this for priority activity active there's you lots we and and a that, real well habit, talent to updates we're global very that. is really headcount want us, growth. importance the But honestly, hiring on part as hope to We a of as really gives giving we clear of So us. spoken strategic And the on a from where relates of business I about. and the are basis. to it positioned of part say, again, for

Our next comes America. the Siegenthaler of from of question Craig line with Bank

on to Global Global or rate how will this is portfolio KKR-originated I GA into update want your my progress just get your blended So Atlantic's impact fee your And could to Atlantic. reaches longer-term product. as objective? reinvest on question also an

had do to for into Craig, way a to that able and increased very make from process, opportunities investments with a that an be sure it's today be in level capital rotating quality similar we're to invest and KKR at risk sheet balance going better multiyear Rob. prudent going a to That's it and yield. we're or GA's they that

overall And we're so of Global in the I place. there's rotation our that in make deal. And than probably increase that be beginning that's as we with relationship thought in, fee going say But rate we rotation, would progress complete to process we'd or that is blended management we on the months taking a at place XX Atlantic. doubt, no better the

mid-teens, I think ability is up the and so rotation fee definitely you based that go that blended over time management on it the has in rate today the to referenced.

assets, especially add, themselves. a answer you I'd as think, going to Global Craig, to rotated Atlantic pursues activity, bringing thing constantly only those evolving is block your then to be we're and blocks more it's question be that The on if need because

keep where the obviously ever significant the be, not reach been we'll I'm you of we'll thought Rob's has we'd since bit we're point, frankly. deal. block But But sure we So a to ahead signed stasis, and updated. we activity

Atlantic that or just question And other one being KKR-originated What into assets on assets one. allocated Global are today?

credit a of are across real with that really together private estate areas lot It's working the our finance. structured credit Yes. asset-based we're Those franchise, team. GA finance, our big franchise, the opportunity

the Securities. question with Ryan Devin from of comes next Our JMP line

Brian is for McKenna This Devin.

growth the what appreciate And I the DE So platform, targets contributor and what all will a the of momentum be color outlook. and biggest you think driver plus then and do to biggest across next over of be X products entire your clearly $X will plus? But FRE of years? achieving there's lot the the on $X the

Yes. across first about our business. The take few, remarks. call we is Rob. Brian, on reality out a shot them our the parts at many talked got confidence of I'll lot I'll and it's it. prepared we've of a

half will a versus position there really, to our going position long-term and of huge growth equity, -- more real Asia think region base next make North in as growth that could our products, over our be talked big take across leading world. we global the as day those X marriage is the in And that is lead of past private a for it and than to in advantage we of lot start leading me, excuse to several part estate, in equity that global competitive couple capital years. is head reasons. have a of We've that competitors. come out That's Two, fundraising things. got for with global in ex growth One, one X we the opportunity XXXX. really a business. us for think our and Asia think Asia could credit And of us we've us, we a for America on about that our the take for massive key the we infrastructure, business of

private a big we're estate assets We've our really wealth. real What and and think out we So that's talked theme about for really of exciting. is real doing build across us. infrastructure

over P&L a there's and growth to ways to have next achieve able be different So of years. number the avenues we that several

it's last like list just of kind it's on to answer long asset got Brian, and question, honestly. which frankly. on. goes estate, the infrastructure, got last lot to a is be kind something investing fun your the scale We -- hard growth, we real classes, over it's we Scott. Because insurance, of everything of a Yes. the succinct, so to on. it's went XX from core. list we to X We about question, April, answer, strategies talked Thanks asking for plus, decade to The started,

We're also so an just happening vectors, XX, grow. see existing not private new there's but to have growth base. the a today, opportunity wealth institutional to from expand meaningfully ways can creating We more talked going us in things our the that client lot of channels. you're terms but in about lot we a We other

to looking continue role real going here, but not and the then to at through growth. is accelerate M&A the currency our Atlantic, and smart expanding us acquisitions, real only balance we're think play having other sheet Global to I gives a tools also

different we I in lot short after hear reason confidence again period of the going So we've identify our a in everything biggest double such X of voices you all it's drivers, of we're haven't able part of X got a be not scale, doubled we hit opportunities or to to I is to And think them from such today. sure of going I'm just to even lots and to time mentioned. come places.

then quick to Yes. XXXX? on in guidance And for XXXX X Got questions updated relative tax margin How it. rate is just Appreciate there the think there. then And expansion should any the moving we color forward? modeling about Rob.

we What And one. a little start I'll with XXs. XX%. was tax would low said our migrate expect up -- second statutory to the over we what we to year the Yes. time in rate over is that rate this

In talked to at the right As QX, were operating where thought low at we be. now. XXXX, the of into bit a XX%, it margin, little lot we were XX%. we back would in firm relates In so we a about we've We're XXs. ahead investing

low term able level in in that I to us. to a believe term. But XXs of So front sustainable the think execute our the on mid-XXs medium basis if opportunity we is near over on we're the could right the think to about we margins take revenue

what we're continue that's to business. as focused much so the And invest very on back into we

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

Great.

XX% of to path the in gaining just with Maybe XX%. that? growth side a think sense break And I the years, call are out just significant Just the are obviously of still those you be fundraising that development private very retail you products? AUM of X how XX% retail democratized democratized you right products. products then that try raise on wealth between to assets some new in what Scott, you billion in there the XX%to what yield attention. of to to a placement would what retail now, retail? $XX know in kind the of even to Of that attached new products you thinking much Maybe in flavor back next able could side. mentioned extent would get on to about fees just you're from X side that to in but

sales, To start? we to in that AUM for are Brian, of additive in you see that the we solutions on additional launched believe And we have course of over terms over it's going bespoke our this. talent, a we'll do platforms, have et we'll don't we And broad products that asset will. invest across And that really do if be all individual time addition of today, platforms bunch which I of have on tailored are across are today, alongside products cetera. solutions we're to we family, where question, will year classes. continue democratized $X your all where in of to about that, Craig. of are Why platforms. of these Look, we expect X billion democratized to alongside first different digital of marketing, the data,

start. to So we're in it like the feels like, still to stages. collectively, feels a we're off us earliest It great

a a capital taking products business. in real to we seems having or great of those it's began June, the start. mind that of One pressed off accepting It's only be estate lot in share, to

for exciting we think So of momentum, of have us. We in could we a don't it grow. that terms democratized for is lot just which feels products number highlight like where of really any in that there And the have really certainly investment end you There's have, investment positioned brand we're just performance, we the well out winner breakdown points data a of opportunity. the lots think given we massive big to be again, a market.

powder And of ago. Over enough. billion X Fair now. the frame what just $XX also, follow-up, into a of you is dry move couple the timing The what time the your fees -- fee-paying to expectation $XXX that rest do just expect the billion, on the then quarters almost was that's And things. double management earning then AUM? of of not it

that seeing concerned down thinking will within to that you're opportunities we of continue how raise that possible your it be build terms Or dry is As you given deploying dry you that running the of call? powder that powder to product, should fundraising? in that, invest

Rob. it's Brian,

mean, X, say on when on have it's lives mix I'd those period $XX X, a -- an your some of where first investment that X fee billion, of the of from perspective. investment things. different in cases, you the question, turns part it's and some So on of some your it, years I In invest products

think a I of blended so years. And about about that X basis on

it's funds the turned just we've that capital we of yet other and some And on. raised products, haven't

that, time would X-, we so X-ish in that's month think And more next the frame.

inside assumption is, And it's a then think of billion, as bit feels overall with tough our really to a for fundraising I of coupled blended It function powder, that. answer. like basis, years it So little maybe environment the $XX a that question activity. active to relates couple a a dry investment of reasonable on a the how is

call times the us on so And more the have be of heard time, you've these excitement we same the what think leaning get perspective At volatile for think this in I from an interesting. we it for might a number us investment future is opportunity fundraising. to markets, from

be it about think things. a couple next I of over Hard so be will just And balance quarters. of that those X to where number the prescriptive goes

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

across to some you that on I'd wanted to to was been had greater than a changed why quantum hear comment curious What's the Scott case. anticipated. be back Scott, just circle that's of perspectives made. had there's movement opportunity mentioned there on I the the past your are the attention forward, or industry macro to been XX over there to outlook either regulatory-wise? the risk front. paying XX that you're the And sort Clearly, as look you months? any of to,

Just curious your perspectives there.

growing which And Yes, be the to wanted is we world. for sources, And is And investor said Thanks me the than new April, that are anticipated. the against end back markets we're is strategy wanted we rapidly. stay are we could question, reason in than that think the of of last that you in areas. not we'd saying hear the the quantum think appetite, part only to we faster sources, to we let we were anticipated I part increasing opportunity it finding focused of the or it I get those now of -- think Michael. businesses out top greater take we we that to only the where that be in thought us traditional but is X from quite laid already facing off kind we're

very quickly, investing people are markets are more and and what growing do. we more end in So

growth. as why And question so the part the that's anticipated. expected we'd of is to answer greater already quantum your one than kind to We to

a we expected. it's more think bit than I

we investment And I'd of X that's the back performance of is thing good than broader like a some of building The classes. on these other anticipated base. top asset client in faster we'd are say and lot and approaching a trust with that

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invest strong have straightforward and you perform to your very that investment like you they trust judgment to in for have they and If a and cycle, performance it's want and you products scale. clients them you through

a think of like and So broader investment of business one of part significant reason this we you've we performance is the the lot see perform. really a on We operationalizing the to a us. in strong And been room And the both need our so of time us. big execution of running we've client us of at I risks, amount got just rapidly had same do We've scaling those seen so that topics. we've is base. front much, a it's on reasons

powder, news. of the So couple little been today down that dry volatility, know in billion a be of at profit the we for But our from and incremental saw into We've of quite last. bumpy than can beginning to invest standpoint, questions volatility, market more terms a to what been the we of $XXX talked year us long-term about there's tends tends if revenue I good this that and create road. about opportunity it's

now. volatility our business long positioned right a good significant. way we're we of opportunity the term, the So is long way Low saying is and ahead probably really for like

for And fees, regulatory point, of changes, enhanced around just et potential transparency sort regulatory there on any thoughts the cetera? just around

for probably think are of level space players larger of is our that regulatory I Look, institutionalized. a scrutiny the more positive

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would I today. see we call that nothing out So that

is job Our to talk us the to react about. regulators what to

helpful And it's we to far, actually so long term think our been business.

quick a I if Rob, for And question could. cleanup just Great.

well you update that. 'XX might able balance compared and amount of was to sheet on sheet how the that as realizations Just off XXXX, be balance us in in invested and you if hoping to off have XXXX the capital the that the

certainly deployment not Atlantic. of Global XXXX. Activity we And billion. That We across up about the Mike. include was does Yes. board, $X just sheet monetized deployed $X.X over balance the in billion

we'd bit for deployment in year. number, if that So include billion a you little below Global Atlantic $X be the of

Our comes next from question Wells the of line Securities. Fargo O'Shea with Finian

the manager on you you if insurance products that structured To on the to and agenda, you providing seeing what your touch and to topic, the on peers able focusing product follow affiliates are on major more are and impact asset insurance you're see to any clients? regulatory alternative

a industries, topical getting that regulatory general, a gave more answer a In insurance good we just focused the ultimately overall period one, change. of services and a is on It's is thing -- just spending question. the financial from like we're a of Scott regulatory time it. of policyholders. other for for and is answer say think industry Thanks environment industry, I'd through lot going perspective. Part the to the internally sophisticated, is similar the

so we a and overall. smart industry as a regulation it's adapt for regulators think as we for industry thing And result that, of think the entirely appropriate evolves, to is the good

really feedback. that, as specifically, all our are can industry lot investing Atlantic appreciate with comment information We there's question, it working relates they that to thoughtfully not really model, so any close as that got and we've of and can on. relationships a that really know an And to I Global gather core we're we major regulators. to topical making is to is transparent institution And anticipate and don't we the one. All say it our which that the we business a behind is promises policyholders. long-term change beyond

Our final the Montreal. question Hone this Rufus of morning line comes with Bank from of

change for if and interest transactions to rates acquisition, one Great. there and regular Clearly, be rise. growth helpful. Had inflows anticipate on was the any curious and as in quarterly start on AUM the since you your Atlantic. earnings Any appetite would block I details strong Global

Yes.

little Atlantic So growth the I'm you the sure, no past Global we bit of has become effectively has systems for of change area think It's in our compete and But noted, very they we position with and had as relationships competitive. our an say transactions, really block around our that a we over quality us have been really more would and space appetite. smart to think very capital meaningful base, management our XX all the team, block processes, I months. transactions.

was on and I capabilities our rotate think Global Atlantic a why addition to blocks in with reason in side to product. these assets KKR-originated up the asset into that, KKR, partnered management big ability our

change you GA's And really growth the of in positioned. for will of institutional all so a combine well part we're appetite, them business driver big to continue that, and going No think when be we forward.

floor for Ladies any session. and gentlemen, that the concludes final I'll Mr. back turn Larson comments. to our question-and-answer

We KKR, would look care. really chatting forward Take again. interest quarter. you Thanks your for and everybody we with in to thank to next like just

conference. This you. concludes Thank today's

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