KKR & Co. (KKR) 2 Aug 222022 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to KKR’s Second Quarter 2020 [ph] Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I will now hand the call over to Craig Larson, Head of Investor Relations for KKR. Craig, please go ahead.

operator. you, Thank everyone. Good morning, our second call. to XXXX quarter Welcome earnings joined Lewin, Co-Chief our This Officer. morning, and Rob I’m usual, our as CFO; by Scott Executive Nuttall, We’d Center in our non-GAAP release, refer which which like on that kkr.com. press reconciled on the available Investor are figures the call, at to to GAAP to is everyone section remind measures we’ll segment share basis. adjusted as And on numbers a reminder, we an report our not This call guarantee do will performance. which contain future forward-looking rental statements, cautionary for about release and our refer these Please our filings statements. to earnings SEC factors

quarter, we’re earnings fee-related reporting and after-tax per $X.XX This share distributable $X.XX. of earnings of

the compared management our increased XX%. very a feel half earnings are at Looking performance. market after-tax DE challenging first fee-related of and fees to XXXX, Against XX% our about XXXX up we our backdrop, XX%, good increased

go week on we reflected lines are business our we’d Now, our to the scale the last more that in real highlight dramatic earnings before We’ve details assets of website results, and changes business. our we seen to like a release. increase our in today’s also posted to into

two split lines, markets into assets. business we So, real private equity private and

two was public you is of we half here. experienced the Our million. growth ago. manage end The and by and meaningfully the credit ago, number assets business. that only real today and it a core include and strategy $XX billion. diversified real strategies these more firm assets the our here growth of than business years real growth PE $XXX estate, line capital traditional while we’ve by we’re To XXXX, private a that a few our was is sense the significance PE, and KKR AUM a line is name increasing and our of business the comprised give name Today, years geography infrastructure liquid of descriptive same to at at energy. driver is equity And so real markets time, the assets strategies, of a for more changes of changing

today expansion a four just several. times million real AUM real pretty equity between infra, this today that’s fund at our the into ago, to and Asia like adjacencies from split AUM increased over of and growth to credit. almost today, billion driven and compared $X over and the together of is two end end billion. estate billion, with AUM So core of $XX the by years real infrastructure the it’s $XX has XXXX, At estate, Within size flagship our $XX XXXX scaling was the drivers are of half and evenly estate

increase of platform to credit increasing through by in Page positioning strategies helps of billion. across And more meaningful equity the core interest X scaling. driven $X the Japanese a opportunistic and increased our and REIT has Asia. almost business release that’s Atlantic. Crescent improved has have acquired year, significant our our while Global AUM in all Energy, strategies We [ph] alongside Our plus the is real strategic visually. estate We now profile the this energy, Europe Americas, been earnings earlier ownership breadth have in

you the equity and total we private as assets their So of in what previously you into page see see broken referred markets. to this bars that reflect private bars to the And real on components. each

those today, approximately for alongside a increased at management driven continued $XX rate annual scaling. just same strategies asset AUM time, in the we funds to billion ran June meaningful growth to fees you XXXX, real end private of our at you’re by core been AUM the look and management at of see equity compounded strategies. When growth private flagship private scaling have figures increase the from and growing deployment. compare $XXX growth the And been capital and at private our to invested all XX%. through, of the have equity of billion AUM, of beginning equity a equity growth alongside XXXX So the XX, fees and XXXX, [ph]

to metrics. itself quarter in Now our the turning operating key

Assets in momentum billion, in continued first by year. at the QX That’s XX% $XX growth $XX year-over-year, capital billion up raised of last under with half for the management to compared of came increased while AUM is to $XXX driven fee-paying XX% This $XXX billion. new billion our up and year. fundraising

fundraising terms things. of quarter, four for highlight In we’d the

assets real increasing over what building for capital the capital fundraising quarter. ran contributed on really in we strategy. and of raised across $X billion XX% Infrastructure moments real as infrastructure note, our on Asia is new the over ago, Of significance estate First, we closed of just few particular through a of

capital Second, in multi-asset we provisions. nature similar partnership committed, billion recycling this raised This is on billion $XXX new broad with long-dated of around before. strategic QX And new closed AUM. $X XX% we’ve billion. strategic recently bring in $X and quarter. fee-paying net $X class or total in about approximately talked our the a perpetual you to with billion the of was framework It’s on partnership The those to with capital impact helps our

the of for our in is in business. capital This breadth billion. new a GA totaled we’re activity across assets Third raised the And both the the is business $X activity It’s at real organic Atlantic. that environment credit and Global quarter really seeing fourth been point lines. seen approximately finally, credit is good as

QX, closing early And active asset-based finance to And here, addition markets and our the the close final the of our in of Fund. Europe the we in credit In note final markets. GA, Asia in U.S. private held and announced QX, we Credit firm. CLO were we in of the

credit, also compelling across $X infra billion We capital deployed year-to-date. of alongside Now the one drivers the Real capital including Again, key estate Americas, of over $XXX continue and $XX the Global equity and in Within In quarter credit, business $XX of opportunistic raising, we KREF driven $X both the Infrastructure, and Atlantic U.S. to equity deployment driven powder our to activity private new and private estate core assets U.S. for which invest. Europe, the billion opportunities real and billion deploying of was with find activity in most in quarter of into real totaled the importantly, the in our to billion active $X was was core invested. of of our deploy by was And quarter, concentrated the $X end investment by quarter, opportunities. had GA-related in really accounted billion plus on ready fronts dry the at billion. in we activity. credit the billion

it to of on a everything to KKR want we over and turning few before Rob, do, permeates Now minutes that’s ESG. that spend we a that piece

here. things two So

of published our the well on XXth leadership work social you now want The on spend to in ESG we’re you’ll and really report the us. shown Overhead building titled in global this to the portfolio C.H.I to history our to take we’ve future. And This our scope on ESG, S We the Many we the investment June, presentation hope Stavros’ this component. XXXX scaling the and our down as our at report is a time And drill walk in Day. manage year broad were margins of operations. Doors in annual And employee Pete of ESG manufacturing reporting, up at It’s go the recall for that, where outlines you business. spot marked of that time more XX%. important portfolio how Investor company to of across issues real more were First, We Report. expansion will stories to few equity of and we on efforts going Sustainability at back as transparency. through to like quartile products minutes is which builds we’ve private our detail. top in around owner This companies. business across plan through one our our ownership scaling we year been our of significant already EBITDA share with fourth a the

saw opportunity the engage an done was our way been one with hadn’t to this things Now that before. in workforce of team a that

introduced the XXX investment, of the the And in ownership a and workers, an received so continue broad-based outset interest our company equity all hourly we our seven-year journey. largely We began so employees, program base at every at along seen in the Injury quality declined were improved. level. by improvements operational invest workforce, way. employee to employee the engagement And meaningfully, partnering and rates product with meaningfully increased

margins So in our XX%, than more tripled more from and over EBITDA increased as to XX% all EBITDA revenues total, organic. than ownership doubled

the warehouse the investment was $XXX,XXX employees it broad-based investment workers for equity factory successful through also on each was a of workers for successful a clients. sale program, $XXX,XXX. very was made it and XXx of a So most the us. average, the And the transactions On very C.H.I. for money our It tenured made and multiple approximately

their four multiples MRP hourly improvements Minnesota and in program salary it including broad-based our margins from new XXXX. the six growth seen annual over through to grew sale delivery in countries company now employs sale. X,XXX all of equity have they Plastics So states. of product are the significant XX% pleased acquired this MRP the as employees, MRP. across introduced we’re In a ownership the or just safety, C.H.I, workers and morning, reduction, Over Rubber announced to performs, non-management we Like across and and earnings employees of it of And in ownership. we’ve when speed many waste EBITDA XX% we

investment be will for our this investors. strong again, a So fund

three of from equity grow time, expect a these employee over a the XX,XXX programs employees PE we broad-based across sale to is for employees, employees income. MRP’s and the traditional implemented XXX% We of at event of and multiple payouts half investments their here. and XXX% of think cost a receive going ownership impact to And Xx income a average, be to-date. We’ve to want On over receiving employees. now movement. And touched we experiences tenured in years. number from approximately with our XX it’s meaningfully more turn We’ve sale annual many their will that annual into same our the great the and

with movement turn we look and quarters a creating stories pursuing we found I’ll implemented private we ownership to firms addition, the forward mission. review at it new to XX like of many And nonprofit why MRP that, and to Rob. In support with and think ones a will C.H.I includes public are MRP. having walked over and additional storytelling, Works Ownership have this models the to over this which ahead. C.H.I At that be through Works and We part the to member in Ownership examples, years transitioning you we called time, is shared companies

lot, Craig, for a thank everyone, and Thanks morning. you, this call our joining

through our go to First, P&L. quarterly

compared XX% QX a up management at came That’s Our of the already management of XXXX fees in second Global put that Atlantic quarter of To quarter context, to into million. $XXX XXXX. fees. reflected full

really that will quarter. XX% of transaction business, reflects a fees million Net momentum which the the our for across time here decrease I growth was by today. on we shortly. markets have firm So were driven organic plus the $XXX and the capital monitoring bit The spend

As well prior by it consistent including corporate as of quarters, office both fee-related consistent the things, This million. investments with together, Operating was technology for for driven XX.X%. heightened that activity per investment is a our fee-related totaled our marketing or up build-out was setting This in all future very operations with us margin in organization. to and as level $X.XX relates travel expenses, this it $XXX quarter. million we critical all our our earnings comp feel $XXX Bringing a few continued and growth totaled share our year. increase plans is expenses is and

at related realization Realized of us aggregate, and came our revenue, in this one income our very highest the million. for to performance firm’s Moving positive represented quarter, in was which in history. $XXX

by driven opportunistic these Realized earnings of our management market brands, monetization and total, just investment million, $XXX number by transactions. over operating the a was internet same estate exits interest real of income sales of carried $XXX were million. asset In assets. driven Our public totaled

up that exceptionally quarterly momentum doing be quarter, Taking strong of is DE million after-tax which operating very XX% these Year-to-date, resulting high numbers, from a think to after-tax year-on-year, $XXX the in of things earnings. million do continues confidence over was board we had of earnings our DE continued streams also the I strength set $X.XX per generating highlights back across the segment the across a Insurance billion, Our Together, there that to model. $X.X to our business the share. or firm the $XXX strong. need And we’re ourselves for up the future. step really

We have had billion raised continued year-to-date. fundraising success of new capital $XX with

evidenced the period are of capital fee when is million, that management solid fee-paying and will monetize for XX% half credit for a to turn, first the XXXX market cycle. period, year. since compared top a well backdrop three We our year. what fees last diversified in XX% we of growth. markets, with these on as the everything the performance, first our Management through about the our meaningfully our We do. of to against are by with real up firm. are the portfolio Realized investment beginning relative we on challenged it Though our lighter good investment into $XXX being more investments that of very KKR of its half remain businesses becoming billion assets up gains to new in excited a for had markets been $XX And in and investment ability goal way our we’re same approximately reaching as The fees coming the XXXX become we potential our first have half for management of business. a capital XXXX quarter in really that the of are AUM clearly of future line has of capital quality enters sight asset

an business We unique have ability and best-in-class recruit and model retain a to talent.

well the our have we the and nature investment long-dated on investments time our we quarter of liabilities. Additionally, sheet. of strength fixed billion total a portfolio of unique call, as and cash as Last lot of $XX both our on detailing spent this balance

that from us this competitive advantage, volatile for even no more here in our have in especially stronger environment, to and period doubt a position We will represents real position. a an market allow emerge it

XX%. performance. quarter that X% over while our XX private the in down The were And to the indices business World the MSCI up traditional X%, over equity months, the XX%. to was Turning broad investment compared was last was down down portfolio

Importantly, for Americas, our key X% inception-to-date last the XX%, Similarly, real across XX strong returns up Europe months. the Asia estate XX% and X% up up flagship the quarter XX XX%. was the down at in XX% and and IRRs last geographies over across With companies. months, and X% portfolio over opportunistic remains infrastructure

the the XX quarter the X% and months. On credit side, leveraged the down X% down for portfolio was for last

the and portfolio LTM. QX Our was alternative in credit down X% up X% in

Next, equity X% last last in are balance Over months. the XX% today. sheet. strategy. balance allocation down core quarter and reviewing our up through sheet Core over largest quarter was to Investment our our go X% in the performance of private PE remains XX the portfolio. investments the time We spent on the

was QX, the up through portfolio the remain For half XX% respectively, portfolio of and this XX% months. fundamentals of underlying and over but XX%, the The organic XXXX. EBITDA down resilient, up last PE core revenue first with XX X.X%, approximately

on to a franchise. Turning focus Asia minute our

in fund, Japanese REIT continue of a position acquisition our and a we of strategy credit manager we our feel the Asia KJRM, our Infra have first differentiated that in geography. really closing critical private the Asia With to the growth

region. a a the of secular increased was the have capital larger Our since its Asia-focused $XX in space We have billion of franchise fund strategy, $X has our infrastructure capital capital and infra tremendous previously recently, which now XXXX, so over threefold billion. addressable already largest the far making $X.X tailwinds. than predecessor, Most the we the Asia at number for reaching market raised one billion in raised is end clearly now real that

around have continues our this activity, As moat to business Asia of that result a we created expand. the of all

long-term to review our to take goals. financial a want I minute just Finally,

and or $X-plus targets. after-tax have we we to goals changed. we per of few the great are These what ability our on have share and to share expect meet to to $X last our reading many momentum over we business earnings calls, the And all be business long-term FRE headlines, we stated all continue one of per be As with have be right the into where let It’s in KKR our the distributable me have investing back deal the it to that we able our continue Scott. And are to P&L for really not to in a off many corporate both growth. a confidence position XXXX. excited potential. now Relative our is in so exceed about reasons that, unique to hand by

weeks from People for event I A at around everybody, hosted conference a like us you, real the XXXX. this thank I’d and morning. a Rob, our in-person clients. few asset this key we call came for equity event. global you, with handful takeaways Thank share our our three private ago, spent and the first of from days world today, and thought joining since

performance whole, investment has the never firm. a is earnings across This as been call. First, stronger quarterly a

So on the differentiated IRRs focused key XX to for delivering be our clients. you a step to funds, at date when discussion absolute But on across we’ve investment performance performance inception and the tends look last relative back take days. our and been

a to the these on ahead the a and in talked critical in be about of macro with think we’re approach. we’ve evident us highly macro great the will of expected environment key investment more be Second, economic got all us, firm. it the across calls This on We to we for and volatility how right challenging continue connected continue trends highly side was to right. presentations. deal of And our thematic

been balanced we’ve investors. Third,

fundraising numbers XX the than we’ve fantastic to across Fourth, returned in businesses capital that helped and As seeing. in the contrast you’ve our to traditional been a just example, are our more is start. This off one perception deployed. newer over funds we months, PE us last has

of adjacencies cycle. early a last in are life five their the series years, that Over we’ve launched

firm. our takes businesses to way for in across move a and needle. inflect that scale experience, our And innovation seeing XX it can in You’re years the

great of of ahead us. And finally, our to continues So there growth be deal a people.

talent bench be have We our deep about to the conference. felt up better in fun firm. the able to show It the never at was

days a to listen on that apparent, outcomes. presentations we team unified it three generating is focused of discussions, As exceptional have becomes and we

and the our our of resiliency, Our of to quality asset, numbers only strength, important model, most speak not our people. but

months shifted As business the the or doubt overly markets environment and has conference no while volatility the with a we six cycle. the concerned from minute, step we operating back near-term to are for compared there’s not ago,

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Instructions] Thank ahead. go of you very Blostein Sachs. Please much is Alex then sir. Goldman first The question from [Operator

Hey, but a guess, of everybody, good on related. all multipart, a I question. and for bit Question the morning thanks deployment

a that? sort think for seen pace deploying we’ve So extent fees the I And $XX deploy these announcements financial a is billion within? you the of kind Can meaningful the balances or to do last a and of next is decline you you What transaction And space fees months two. the it KKR’s step conditions of break which deployed. of pretty could on you thinking the committed over about businesses when month management capital little in tighter guess bit fees capital, XX sponsor-backed ability back, how of and what over they’ll timing in turn are so? To next capital? means over part weigh the of take down, this once or on help sit

businesses. that’s blended Good X.XX%. on asset question. is last $X morning, And think, across management Alex, pretty the When Rob. management it’s rate Thanks capital, for from look billion that the nicely it’s quarter, fee at of you a at billion our quarter-over-quarter three lot I spread of X%, just north $XX up,

be in private business, reflected real so our that business core equity private assets. our would in across number And equity

our it credit over capital, be when on, are we’ve You capital far, see be not in so billion figure. turned our our as gets so to strategy Asia closed-end that of on credit going has most business, yet would Infrastructure And then turned billion that funds business, where Craig of raised that $XX $X the invested. noted,

spread our it’s so nicely And three across businesses. management asset

as then from deployment it’s the deployment, the And One, the point just to on and billion. it’s first of half Craig. private year XX% things. A just last interesting. in of think Alex, Maybe real it on equity half two. first stacks. relates up the in I of assets couple was $XX That’s Look, year.

look seen level So, healthy a overall in terms activity. of when actually amount activity, you broadly of of you’ve

on markets, Now the credit fair a of certainly your one. the is state though, point

a down. couple think is I dynamics Announced whole there. a we’re as seeing of M&A

think I you down. seeing when number is So, overall issuance look issuance, new at that, you’re new that

are to I feeling think more banks us cautious.

overall levels But So, markets think terms to reflected seeing think functioning markets. we still of open I ability importantly, in those both the private in credit the have transactions. and of activity finance you’re I of and things are when

a our get to at not ability to impacting finance our things point is We’re done. transactions where ability

of of ahead. The Bank is Craig Please Siegenthaler question sir. go you, America. from next Thank

everyone. morning Good Thank.

morning. Good

also, had just you mark any the Next know corporate for inside Thank the days. it’s Americas do Private do Gen funds question on private public have XX I in And like the X? a you private But much. color quarter? of the I equity, of main you on And breakout performance. have versus X% very equity XII,

publics of our strategic resulted portfolio. lot our where our of was north morning, on a that our have down good that Thanks on M&A trade quarter part, the is privates. private for what a Hey you In in impacted by it’s Rob. question. than Certainly, more an in were seen privates billion the one would $X that Craig, trade write-up

period. it right, think when I you’re XX-day only is a said you

feel quarter. really good book into we a it. about time of context. our We spent valued lot I think We to this on that’s important put how

mix to it’s and I in about XXXX, XX% about marks. and and got XX% course, Of private in was. XXXX XX% And XXXX think XXXX. through a DCF our in to That our generated we comparable companies for where that a are equity our though, return into flow impact important, we’ve was going coming investors. do performance think

came we period with of of gains. into So this embedded volatility lot a

If you returns marks invested a $X lot it taken of and with of course, to there’s worth with we’ve just ins In those us, would close be $X today but on still alone. outs XXXX, the QX. that some in of

Yes.

I think fundamentally, perform I’d only add Craig, thing the companies continuing well. to the are

I some seeing terms strong. So to But of performance portfolio underlying the contraction multiple largely think quarter. you’re be continues the this in fundamental of

much. very you Gerry question Please ahead. go of Jefferies. next is from O’Hara Thank The

Hey Gerry, you. hear We are can’t there? you

Would like line is open. Gerry, ask… you to your

all now? hear right? about How Can me you

we Hey Gerry. There go.

Okay. Thanks.

least any Just should bit incremental a the or hope from forward. onward, there how like hoping May looks buybacks we wasn’t of little get period just bit and on how about at about actually you’re that the little get to might it during an a capital we kind of And it potentially quarter, update update X an going from management. thinking think just of

approximately XX million And Like looking relevant probably question. our little in the quarter-to-quarter for shares. than less or canceled buyback we ago, most bought back thanks time. over looking years several things, our Gerry, initiated is program think I Hey a business, since we’ve bit

value take, book little done, a our think today. than is or I bit share, lower which around per give $XX that’s

over we good. the several years, when back look feel our so of And at body work we last

that, that. $X to issued we completed no you at in acquisition also had QX part billion isolation, and equity addition In KJRM, as the if almost of look of

and And there’s ultimately, drive on ways drive our that focused we’re a ours. a of basis, we allocation as level best buybacks, per a a long-term capital ensuring on competency being a on able around share in as we performance about are will so profitability And of a to think we multiple share think and ROE, Then highest per management there. is we we get real way ultimately, and if most maximizes team from basis. what capital that moving profitability core that’s the of

part Our expectation to that is a as forward. share buybacks be to of continue we are move going

Please much. Brian next you Thank from of very Mckenna the go JMP. ahead. question is And

Good everyone. Thanks. morning

at look was performance backdrops, net scale $X annually I it billion $X few still plus the for of XXXX, first if business $X then So run rating the about you’re realized operating varying that at as at results running year, on essentially prior billion. and a years XXXX, income in half and the about doubled billion in to despite this based

realizations moving to level $X prior perspective rate trend is volatility you’ll So run billion persists, trying of moving think the do despite of challenging billion this expectation level? reasonable back Just the or more you get some forward, forward. backdrop $X if on level the towards additional here, the baseline

a the Yes. question. for lot Thanks

to guidance, like stay forward providing levels certainly on away going things we’re so of realization. probably from And

highly we what of able the really that is though we’ve volatile will ability proud think this to first I half to year a monetize be been say environment. through our of in

also exits. is carried speaks are of to the portfolio, and going carry scaling our time you’re underlying speaks our touched over of performance real And portfolio. to as is that, of And scaling time talked I what well over of funds and to a of as model. without It doubt, we are see think interest no diversification eligible for significant of that real our we a expectation realized think income pretty to achieve time as and our and strength wouldn’t And can newer as performance result our a in capital our number be our been deployment. to those about get years scale that scaling things. much we of larger our a move the strong some out we is start able to that maturing. Scott on couple business have have over

So hopefully, of gives you bit a that color.

Thank from you. is Please ahead. Research. The next question of Patrick Autonomous Davitt go

expected. like of AUM side morning forward everyone. fee was worse people It rolled the mark-to-market good on paying significantly the most Hi, the looks than

out it line. And and/or of in flush or key strategy negative side, in less the management some fee-paying kind on marks maybe actually that more you vein, could like in AUM by in of So came vehicle? drivers fees the the looks

is assume inflows. So AUM the that dramatically rate marked was the to fair lower it more the on fee than negatively

perfectly. Patrick, you it hit

So the income value interest fixed trading a is portfolio really that in rates Atlantic in of the at going result in majority up down. Global change

And rest materially so that’s it. rate pool the the our about lower of Atlantic capital what’s you And that’s think than Global as on our driving of fee business.

our in fees you you of our where And value to a change what terms pretty assets. up so that’s see why are disproportional management on in the scenario fee-paying end in

Thank you. BNP. go from next question Arnaud ahead. Please The Giblat is of

good morning. for secondary gaining inorganically? your how the in this cycle? view secondaries. on question My [ph] is on funds exposure you’re you. Thank and Hi, thinking at And there point positioning you about or outlook the discuss either Could organically

Yes.

And have – no for a so thanks question. we the lot

is report equity to We that’s interest. the it to a inorganic. relates have strategies with imminent our that organic core to we space nothing It to as across private certainly continue It’s at adjacent that’s secondaries, look whether or firm.

on. we’re one time that And so it’s spending

four to doing on about next talked $X-plus years goals, any that based we on is inorganic rely That’s I that to of achieve is generating our we’ve the to think things our expect five activity. what’s important measures FRE. financial Doesn’t note KKR principally today. over

of it. at that opportunity us time we of and started a focused areas spend front have we’ll where while scale lot There’s of look records, and space, the we’ve to got a are that to we’re KKR that we’ve in on continue track lot this. And so on

from Bank. is go question of Brian next Deutsche The Please ahead. you. Thank Bedell

the you focusing to are morning would an – just – infrastructure just a would this, strategy given know in that segmentation a how I this you strategically views fund. a you’ve the obviously, focus you you’ve and going forward? on change about focus area reason Can already folks. broadly long-term out, side. is of there justification of area in about business, is taking you’re I general. into whether also built two assets partner thinking my Thanks. part your it And it. if real infrastructure raising hence but segmenting on the view management and guess And Maybe disproportionately in this over more Great. then for the for or question. real for on Good Thanks maybe or first, your on on long-term that transition? that the lot energy consider focus that talk got an assets transition don’t energy second fit in

Why start? really you think scaling right, in of Scott I in don’t I I’m the Look, have Craig. both those you’re businesses, seen it’s overarching question terms will the mentioned businesses. dramatic asking, Brian, sure we in of on add. two you’re infrastructure, Hey

infra. look investment with in you then and seen to also honestly; innovate And go also April the with back terms performance build come that scale to time. strategies flagship in new core infrastructure our Begin a expansion it through Day and If come risk/reward big last and at to study a look we case platforms. of same of infra, how Investor innovation geographically we’ve could walked with as of as can Asia year, into of we as strong

have, exceed we got year series, or We We Infra. would gave that a the point set funds we the ago. that Infra three global diversified goals out. AUM billion. We’ve was this market Asia targets again segments end Investor infra a $XX at interesting at point, little So some of distinct billion. $XX estimated over in core. at that at It’s AUM year this Day

now. in We’re the XXs high

management from doubling about $XXX. six $XXX success first to we’ve We at a we’re lot for obviously all fees So Through had there, to $XXX XXXX. the organic. of talked months,

on exceeding terms a equity. XXXX, bank like comfortably fully $XX today has the late platform a billion integrated we’re our that pretty equally with blank And a real estate, powerful, AUM platform in – grown debt really target. into way in of between and from beginning So split to of

over vehicles We independent economics. have with a dozen

right, growth, and think of lot I and how when in the then opportunities as look we at of for So to that we opportunities a areas it invest you’re we we’re the situated grow top to relates how to the continue of great about have we’re positioned. continued that, on ESG. And feel

I that think our both impact through to strategy. date, you’ve seen

strategy. seen through infrastructure that also our You’ve

think of absolutely that of how global continue we’re lines, a strategy one think those It’s to I you’ll to relates a that as real ours. nothing focus pursuing as seven basis. six dedicated But report So about or that we the new it today. to core along see report nothing on renewals or to themes a on

in terms Yes. Brian, focus, no. is is there just strategic of your on The question the any change? answer

estate And recognition building been post we efforts it that scaled financial business had in these and were crisis. businesses mode. started I just both we’ve think was that real really infrastructure

was found was is can case, We a Private you the that, a as misunderstanding time in prior we periodically the the that’s see And bit markets chart. There segmentation. there that private be. continue of a that under presumption to not equity. just But a mostly

you billion give private billion; year. million; the a was numbers. deployed $XX of was sense to half about the for $XX first $XX real was $XX credit of the $XX billion We in equity this and million. Just assets

up So on last the our deployment the a been real sub-XX% larger of and and as to the larger part just XX take, over pick months, question our equity the – prior partially deal assets has private give environment, firm. of or

we with change it going share it in more and forward, out to time explicitly no So break focus. it but thought was you

ahead. from of next The question O’Shea sir. Please you Wells Fargo go Thank is Securities. Finian

for Hi, product you peers what your pretty good of initial Thank for more might a the you. this on just on that any BDCs, is one-off group? question this or have And mean if meaningfully morning. if of its first mover one lowered maybe a fee morning, seeing line? A that take

is own its entity. Thanks question. obviously got Craig. team, Hey publicly-traded management It its the its FSK for own own a shareholders, Fin, board. it’s

for better their and really, So probably upcoming not question earnings call ours. a it’s

the broadly, FSK. in terms structure, pleased of you of years. your and the seen of we last business fee on in Just progress But terms question point really couple the specific FSK, performance to with we’re that over the we’ve of

Thank Please Michael Stanley. go ahead. Cyprys you, is of next Morgan question sir. from The

much was update the on some broadly KREST just the on that, product quarter. some balance taking Rob about at around just the where the initiatives you you. And could sits I question monetized for an retail, and the question. expansion. there in and AUM have quarter? wealth the retail standpoint sheet in Thanks on private wealth a us of from private talk the raised morning. the was platform Thank initiatives good more end, Hoping that side. Hey on in How and hoping the channel, quickie side. amount Maybe retail around of you could you raised talk today off for capital the including the of distribution the just cleanup for a about

Mike. Thanks

and about June market piece on And focused high strategies mentioning, That team why $X net hair don’t sales direct then includes was with is So wealth we as AUM, of to we I the and individuals. the worth includes three in as wealth activities XX. of that and efforts high overall below a relates have channels. total. also includes that worth private $XX buckets. That’s and also That net ultra that and which in you’re begin? that first, democratized billion our billion Just it through own funds

KREST. first of terms on update democratized so on the In front, the

June reminder of began taking KREST, in capital third-party XXXX. we So on

the this threshold. billion. net any which believe As XX%. north obviously. to growing, has that is it has billion year, It Performance private annualized earlier see. was of XXXX, the great REIT returns very of distribution that June crossed crossed We Net been threshold $X that fastest is $X.X And footprint that’s strong.

the onboarded in you in be to recently scheduled I it’s coming houses third of the in as launch. the U.S. second there main wire within aware, was week, are KREST know the has well since weeks. a last three those It actually, will been on quite particular, at be So e and launched on

the important these domestically internationally. for focused the channels the well as and expanding QX in milestones time, RIA also channels as relates And with at wire private distribution. wealth it true us That’s same So are as the we’re houses. and to broker-dealer on

at path So AUM questions us. about on, year continue ahead to on opportunity to a X.X% been was in holistically. the of and ago. then to here. is more just products. was of X.X%. then And we think and the are great again the Again, democratize do It long-term the And feel we – where we broadening you’re distribution innovation distribution finally, we to that total going relates about as expect as performance hiring that’s it these your delivered KREST We’ve see so talent

as three democratized, quarters, and and launched see expect So those as we to internationally. have the both well equity expect we over broadly, quite we’ll or the private U.S. infrastructure strategies, launched in coming two

space products where real interest like asset feels us classes it lot have really estate there’s in in think there’s additional democratized us. focused those I So date, these and to been a opportunities more to real expanding And credit. and like honestly, into white PE, for Infra

our how our So track record, just brand, we’re we’re ability really like positioned, I think feels with positioned. to well it the innovate

million, acquisition. in about billion $X.X roughly about and my into million $XXX KJRM realizations had we $XXX include follow-up $XXX quarter, quick went then the deployment of sheet, balance the the off And of that the does that million not

you, sir. Thank

Rufus of Please from ahead. go Markets. is BMO question next Hone Our Capital

little back of was book. a the growth performance Private my morning. fund come And us some us you helpful question. fundamental PE how I companies, good you that core Thanks performance more to related you. in metrics to us Could the equity. Hi, I the the taking around wondering, the also for this tracking to And quarter? relative you traditional was wanted give equity update to book. gave could in the portfolio core Thank marks on detail

the there. Sure. cut second on Rufus, out you part And

that you let repeat actually, second. you I’ll repeat a if that So in could or

the equity then portfolio. private part? second So was it what was And

growth It was marks equity this around the quarter. in

detail, could If any be Thank great. that you would provide us you.

Got it.

given at we situated think invested and noted as Scott the focus we’ve it and outset, trends First, as to revenue really been behind. the that EBITDA well relates we’ve themes I have the the

to performance portfolio continues strong. underlying of companies the of So be the quite

is this So trailing a and we’re fair equity on seen XX-month we historically – we’ve growth double revenue weighted the EBITDA at basis. in on back the basis, looking private a portfolio that and in digits look value in

of down S&P we’ve Healthcare recognizing XX% resiliency honestly the underlying that quarter. our in quarter, been the And performance this were next-gen the digits. the portfolio. up that growth low seeing to pleased equity in portfolio it was quarter, in you’ve seen MSCI really in and relates private double been tech that with as the So again, the was we’ve down in actually then the terms strategies

had very think I that So LPs an experience that and in good about inception-to-date the have a about really feel overall performance we good period, particular, volatile the on feel performance in our and quarter, the basis.

Thank Chris and Please Kotowski Oppenheimer you sir. go from of much The ahead. Company. very question is next

industrial of of the were But interesting. examples Yes. Midwestern the of both was Craig’s kind you traditional discussion equity companies. participation listed I thought

think kind transactions, And equity do strategically. and wondering participation that participation this that it’s strategy about others you Health is in themselves Care or just that so across lend kind broad that deep kind all of of curious, pursue – equity, your I’m a whether certain And strategy Private to kind employing don’t? the of industries board of how you Energy, deep

was private years great that XX industrials this started ago We bit It’s effort. a astute, over our investments. question, program piloting And actually started It’s a with Chris. we this U.S. Scott. this equity you’re And right. so

now this in of looking strategy examples and And and as so the for as in rolling this that past. Europe is private two out developed some all we of now at we’re have you of is America, done what seeing and are which now happened across those early starting the that C.H.I actually investments it our exited, you’re recent we What very we’ve Asia well. North of as In being potentially is kind investments. control equity some though why got have MRP

we’re across do that control. everything expanding we there, and piloted was it that’s So now

with really to more come pleased And effort be been is on industries and think this there’ll but results. we’ve So across we applicable the this, geographies.

go Robert from of ahead. sir. you, Please question Lee KBW. next Thank The is

guess, of Thanks Good a morning. multi-parter. taking for my question. little bit Thanks. actually Great. I a have I’ll

quarter, So stand this a really sense you the this on looking update on question that then sales – current with us activity? update on thinking as that you of good business things the kind the first where flows, realization so you’re global far of for of on ahead if spread one Could us give quarter could And is and maybe, expectations? as maybe a kind Rob, you’re how us be land business. of second for to environment organic annuity and obviously, business of kind contribution should that very growth momentum insurance

take I’ll of both Yes. those. Rob,

the quarter, And the another point, momentum. for so area positive on continues monetization us show think to this I and

this transactions expect that have So we have we that $XXX happened here of as based sit where have to related monetization up we revenue. quarter, and on million visibility signed close today, around have or we deals been to

So the realized again, that realized in if performance investment XX% we’re about pretty environment the ballpark balance in. be revenue will spite income. some monetization good from front on achieve numbers, of momentum the And and we those

environment. rising relates you right, to are in rate Atlantic, a it Global As

a I little were in activity business. momentum think no that the which or sales of inflows Again, perspective. about strong. quarter a points a quarter, block were in the And we in the really the great is take, flows total bit individual this for basis see GA. from And They channel $X more billion around XXX there’s spread, give in number. certainly quarter

well of quite served this in and them And good so is how time broker-dealer sales. really and their going is take an what feeling I across annuity terms apply have to GA of period environment relationships we’re of about channel into think positioned advantage and bank the really

Thank you.

sir. is The a next [JMP Securities]. ahead. you, go Brian McKenna Please follow-up Thank question from

up. follow the for Thanks Great.

fourth the realizations, it like Marshall Just Wace this, little C.H.I but in $XXX is million fee for quarter? of that to on the been trying performing think how that tied be Just might might And early much a year-to-date? look transaction. how what to through incentive the has quarter-to-date Thanks.

sure. Brian. Thanks, Yes,

it not to And QX the so monetization. give specific to relates going as numbers on deals we’re individual

least and to the QX, QX. start so the generate we ability at seen of good think in QX across that pretty year. And to far good in this a feel our and board punchline outcomes is terms you’ve monetization in I we’re off

take step That $XX of when a $XX it about right relates below. Wace, Marshall maybe a north AUM great started maybe AUM They’re that of feel As touch business we that around of was partnership. billion partnership. today, just we to back, billion

wrap clients We’ll performance a overall, on So things just Again, side. see and of got of have as and different end the considerably job they’ve phenomenal the strong. behalf they’ve on of year-to-date, It’s has bunch positive grown how result. September. between now a been been up a But done their strategies. the

annual incentive for of you As do. what they most will dictate fee know, their that

certainly here about like sit quite we overall, year, today, as feel in we so last great positive just they’re so And that not but territory, partnership far.

question next follow-up you. Thank Markets]. from The Please go Capital Hone [BMO a Rufus is ahead.

to Thanks Private comments there? you’ve your for the whether than deployed, view seen Great. capital returning you. conversations taking equity, in follow-up. thank around that’s wondering do you and come core the back wanted any equity. to you’ve earlier for LPs appetite And outlook Private I and change helping more I for to how deployment LP was in

Rufus, So think we – feel I and thanks.

our the forward. think think business is about for I thrilled as we us, on with core, how positioned. just trajectory going The opportunities we’re really

balance June Now just through years you of a as XX%. sense, XX, our sheet. give billion that AUM to that to $XX was going number And is ago, you’re two see

you’re time that management it to continued again, going line. income. And with that Over investment capital performance, markets. see You’ll fee over that see relates time, to as you’ll the through in see

win, a for us. That which is we exciting number of So have to is global. business ways

think wonderfully it’s positioned. the is just well it business feel like continues to – I So

again, outlook, we’re a choppy deployment in the On environment.

to see and well just the feel dynamic, and the about seller us, for willing So exceptionally but certainly, willing we’ll uniquely trajectory long-term think buyer, have positioned. as we opportunity

Yes.

quick Just follow-up a there, Rufus.

in of dry billion approximately core that of powder, of So $XX Private $XXX equity. our billion is

into bit the things than more investment that we about in And and business time in acquisition as feel businesses of So period of a a advantaged. being with five- evaluate our gives in time, lens hold to period of a that that a to to And matter three- might said, opportunities your matter this little Craig of duration lot just of to as business. pretty you firepower might seven-year time. period owning part XX-year of some a our XX- less we came think that able when we part for different for of

to business quarters. a over be So next we real the that would to expect continue deployment several there across

Yes.

as majority the Just into we as broadly, more capital a vast, position of really time fortunate strategy. came flagship PE our for the the reminder, around for broadly, a vast of in capital core bulk we that period this equity the raised of this funds started, vast year had including our Rufus, before private

investors now get of we’re what on raise. bit of where not to their a really interest. The impacting seeing credit little to in PE PE assets maybe is good time terms vast much in take while we of right particular, of So we’re that’s bearings majority capital real a see raising around and fund amount continue

now session. comments. And I would question-and-answer of the Ladies turn, sir. Craig to like have the you, we Thank and the gentlemen, Larson call to for end closing reached some back

to between, speak you Chris Thank time look us. with on We don’t quarterly thanks our help appreciate you in everybody we chatting everybody thank the and results. for joining forward attention next for your again. I if quarter. really with you And and

Thank you, today’s conference. sir. gentlemen, Ladies concludes this and

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