KKR & Co. (KKR) 8 May 232023 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to KKR's First Quarter 2023 Earnings Conference Call.

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

Following management's prepared remarks, the conference will be opened for questions. [Operator Instructions] Please note, this conference is being recorded.

call KKR. Craig the Investor Head hand for Relations now over Larson, to of I’ll go please Craig, ahead.

operator. to XXXX our you, first Thank Good quarter earnings afternoon, call. everyone. Welcome

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

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

after-tax I'm in $X.XX over the turning This quarter, fee-related to to earnings going details per before share by earnings and for per at distributable walking share. came things Rob. the $X.XX, begin call in quarter through the came at

management Management million. be beginning That's So, $XXX fees over continues year-over-year, us. bright up were spot the to real XX% a XX%. months, and fees. QX, fees are management XX for looking with In management last fee up growth

deeper, XX fees private XX%, monitoring million which fees months, business. and for quarter, the a million in the are increased over came assets, $XXX Markets while of credit Net management both management real transaction Capital and Looking equity in from fees little XX%. last up were our $XXX

was operating margin midpoint compensation at other expenses fee-related Our million. and the at $XXX the for quarter were XX.X%

FRE you've at our which were quarter and moment I the This or that the per that level. fee-related that's margin share, or seen quarter where is XX%. ago, earnings XX% consecutive putting now for a margin million of XXth together, FRE above So, with an $XXX mentioned $X.XX

private by their for in for income was Both statement. growth quarter, totaled driven realized performance realized businesses, traditional by driven the our income the $XXX activity compensation and the down income midpoints $XXX at quarter. income performance million were million, and equity investment Realized core and further Walking investment equity. margins

management operating operating spend earnings, our million, and shortly. segment million asset I'll Our $XXX another generated earnings minute of $XXX were on pretax which insurance

million share. distributable So in earnings $XXX this in $X.XX per resulted after-tax of or aggregate,

turning The business quarter, for XX and traditional Now performance. investment up months, to X% equity the down was private over X%. the was last

flagship X% here, for blended corresponding funds, Europe real the ahead portfolio the assets, was so meaningfully X% remained real down estate XII, the and at Importantly Asia V IRRs for XX%, figure which MSCI In inception-to-date Americas in strong IV QX. is our of World.

are we those market heavily for flow While all you're our seeing portfolio and continues be themes towards seeing areas a and a estate, real assets growth. where to difficult strong fundamentals of handful cash within weighted

housing housing, and centers, student industrial think assets, data So, rental storage.

that the However, portfolio cap quarter, the rates in as to decline in NOI offset more for quarter. than growth, modest leading increased the the

our rates, in up was Infrastructure leaned higher into assets. inflation-protected we've quarter. of basis. X% more global strategically with performance And reflects portfolio strength infrastructure on the interest This a the

was portfolio portfolio QX. in was quarter, index, alternative up X%. the X% while was the outperforming On side, credit performance flat in the the for leveraged credit investment sheet, And the balance up its

through the in be have updates we can Now, new addition, that two seen release. earnings

results I First, quarter. our briefly insurance mentioned this

week you through things. expect changes reflected an Turning financials on filed the These website we this saw X-K. last topic, also back to and recast our we posted two

segment our impact within accounting annuities. reflect Overall, new operating positive as increase was There guidance segment SEC a million segment FASB book impact earnings XXXX life in of per pretax accounting and million. an of And pretax to impact insurance of standards modest. segment earnings. a implemented operating insurance we financials the terms to and $XXX $XX is such $X quite LDTI insurance and on here are value, positive KKR's as for long-duration to principles First, filers, XX/XX for million the all there required contracts XXXX the insurance

other we're earnings asset on to reporting management and alternative segment conform not basis. enhance operating insurance comparability, companies our And a after-tax an to second, pretax,

So, as Page as The item on recast XXXX help at single reflecting results on all you taxes our basis income captured of changes for XXXX as our at X-K ago financials of a to asset KKR's everyone the earnings a operating look basis. a Income moment release, referenced now look these for quarterly insurance within on management segment comparable Taxes that attributable and our earnings. X line to are titled well

And quarter our second core business additional on change $XX believe disclosure we core private come. equity And included to the PE have thought the for allocation we as would AUM, management We’ve in of as With sheet, so disclosure XX. in page within the context world. strategy. our core have balance our the this remains see be the press asset helpful billion largest quarters PE you'll we well largest we on and investors release on additional

strategy to believe this where carry a investments these to years long-duration hold we modest more XX-plus PE. expect for compared As return traditional investments and investment reminder, a a to risk is us profile for XX-

over our multiple today. $X.X fair remain page, with as and very capital over of $X.X fair PE from value core active in core billion And months of currently, sheet PE, value strong we $X.X costs comprises billion to see increased return a companies in geographies. The the over can into and years. XX PE of space. you to X.X have cost billion on or compares little total, investments balance the approximately in the a of balance last core total XX steadily total invested investments multiple consists of of XXXX In approximately $X.X five And XX% XX% of billion the across sheet industries

This is Consistent corporate our we've dividend final structure. now basis. we with annualized our per the increased year $X.XX our to since one practice, fourth on per we share consecutive And note. changed historical an dividend or quarter increased $X.XXX

And to pleased the I'm Rob. to turn call over with that,

Thanks few to the continued The macro months past front. lot, a have be Craig. on certainly dynamic

ours create powder for especially team multiple I that substantial a do significant like across would we classes. that capital, firms a opportunities, through go of morning backdrops firm. different with locked-up investment asset coordinated experiencing and expertise it thought different day-to-day However, highly be what global spans dry to and amount this have helpful are the

quarter now the believe the and billion what of billion base America most billion, fundraising predecessor. on committed capital traditional is great of largest really than gives fundraising. active at in us private It's across start wide by Europe. market We at final raised margin. private active which its $XX quarter. XX% looking funds the $XX close in capital Let's with for capital traditional this European and the larger activity the Fund equity, this North a part $X We VI approximately In is included is outcome in PE a Asia, total, challenged our equity of

credit fundraising going almost a for on little little the raised more QX, about on environment few is per and the raised in is Scott just on us. side In a billion follow is we with a minutes. to what of In capital the average bit raised up $X lighter color strategies, liquid $XX quarter we which total, XXXX. billion in though, in new

for few Now a reasons. against this backdrop, incredibly feel we fortunate still do

for and private $XX since approximately we've billion our franchises. capital equity XXXX, traditional private equity core of First, raised

raised going period, an us. flagships year the be all to outsized XXXX Given this for over was fundraising never

ever as equity So, our we've almost we And in capital dry into the powder environment. have private focus as investing we firm that invest a is had have on to raised. dislocated previously the as

fundraising remain the our in strategies, still XX XX-plus are our clients. engaged largely with and we the credit market and clear, XX be to over fundraising real to highly assets in Now, for next months, teams

continue we against priorities. progress to make Second, strategic our

we've we our times these example, an to private just As at wealth last earnings democratized over U.S. for with its one democratized houses on million domestic the great our private our since and products equity show of on and in comes the half raised are vehicle the call, the we And wire pleased talked second will It's platform hope on year. as QX up calls. in first outside a on results. build $XXX the which several momentum this line close, to start that vehicle us,

first heels with its And our strategy, U.S. is a close our expecting on summer, vehicle first infrastructure the over while right soon in close democratized terms a thereafter. of is counterpart expected international its

scale. products in is in accessible We bringing we're a are wealth really and these on not step And excited The we're end about largely have both reception of the and enthusiasm. earlier critical these huge with a to that of market clients launch products traditionally been initial private non-institutional the addressing pleased global strategies. while days,

billion has closed GA early our billion. really on third, continue book billion has July momentum the to And increased today. in we $X.X Atlantic. from since at XXXX in doubled And acquisition announced of $XXX does Global $X.X transaction share value the to front, from at $XX billion AUM since insurance XXXX, the almost

raising terms QX, our to robust. In capital run financial remains of and ahead performance expectations of continued

any of and activity compelling quite time. While GA here in strong, opportunities over announce not pipeline greater QX, did block transactions remains we our expect would

deployment. to now Turning

worked example we more to of record that we remain over about FGS what the decade. for to long-term dry advisory we the resources known firm. of network and are looking future. can an latest for the pretty portfolio environment recently, leading powder, continue European incredibly focus world-class to opportunities be close investing in, positioned strategic And so a of is We with capital work. of capital really $XXX This proprietary teams well figure and the where team we us announced Equity, Private putting have done on creative entrepreneurial, a is have the we and a which team's to that global management currently communications billion excited acquisition feel we've our a In that build help for to of Global, the provide

acquisition is on partnership closed Towers in we infrastructure, Vantage our of Vodafone. Vantage take-private the latest transaction. with In

An largest we diversified reward is beginning And core are in from We closed Europe. we're or seeing investment risk XX very the our constructive on telecom in company second tower Vantage market. have XXXX. credit Infra Fund, since take-privates in largely on the the business, our announced of today the

more where base new spreads over lender are year-to-date. for lending are we are XX% private capital protections credit Companies loan seen As are choppy, environment that the have best the down rates are wider to markets volumes look for looking remained we years. increasingly past continue We to believe the the issue markets in debt XX-plus have up, direct that significant. and syndicated

Now higher remain for soft come comes much our volatility a environment deployment, challenged monetization expectation quiet largely here it XXXX. be environment. of continues from does will The and with to which that interesting more is

XX-plus that However, of has multiple long percent is our for model And as we've is up nature. business is of discussed in or one the prior term perpetual calls, our capital in advantages. them locked

So, window we won't it's and investors. unless our a sellers, for outcomes aggressively are look maximizes that not to our we core monetize portfolio into

the balance sheet. XX volatility markdowns with $X taken have Even months, on billion the gains of our and to last embedded over we maintain XX we over appropriately

another So, is if to key value to our optimize message we in is generate are outcome billion advantageous The revenue. never we highly and the portfolio, returns, us today or most remain investors. created monetization monetization-related it you're positioned we'll our when made no investment that and we of confident additional $X-plus from hearing

several months summarize, our a environment, not challenging the outlook. more presented past changed operating to while long-term has it So have

our assets, significant opportunities private core to These value have and confidence continue areas, that our per position for meet $X-plus materials our year, we $X-plus guidance this continue by is first afforded equity, wealth, for the KKR. six balance DE that insurance posted We have well to drivers when as XXXX XXXX. us substantial of through our FRE goals: to conviction the we we fundamentals. we long-term to did do introduced ability growth, creation private share and us than of In at in of we beginning of as more why real very that Asia sheet issued Pacific, our late per share the teaching in in after-tax

off to Scott. that, me hand let With it

want the call today, thought talk term, I and term Thank for is how you, institutional what about market things: making and be creating decisions; you, Rob, it's causing near delay joining thank of Near us it's opportunities portfolio; less to three attractive investment sell for very some it's some today. doing our volatility feeling and we're everybody, longer allocators and we're cautious I'd our more us. to asset seeing term.

other has areas. fundraising front, not and in the we in been bearings. get this On changes, don't a It pause This it some for are case Until as firm seeing the reasons. in this We to formation our is, particular, the their term big investors institutions. impact couple some a will of European they U.S. of for likely expect slow in the on have near capital efforts. true down some

not First, as market this flagship Rob noted, in PE with we are funds year. our the

We back to timing. that in with expect fortunate and those to market we're Frankly, come XXXX XXXX.

We XX non-private number put our $XX or have XX% months been equity in actively billion. last capital, businesses. raised was for capital billion to of raising this, funds. some outside traditional of however, numbers the raised equity $XX that over new totaled strategies private To

platforms, Given our with diversified are across expect. across someone meaningfully KKR the strategies would and growth more likely than scaling less we in real asset credit familiar

to we channels are benefit are less our we any reliant and Second, used across than diversification type seeing the distribution on X of investor be. of increased

sold sell some Taking in funds institutions. almost institutions, turn, assets. are a back pulling to and are globally, in are and institutions number insurance background, bit, private not, we wealth and a real exclusively others like a around to private years handful credit particular dialogues of wealth. ago, we we or delaying productive while As sovereign Today, of those having

are efforts also insurance Our meaningfully. scaling

from the Global heard billion $XXX You number Atlantic.

for have is include we ago. nearly number XX% manage third-party the billion we That now you billion years from nearly companies two from insurers, $XX globally. $XXX up If insurance

referenced, PE Rob democratized are Also, live we as strategies. with and now our infrastructure

later credit capital the product the this been Our adding for And for has democratized channel another have we year. mid-XXXX real and in platforms. is more estate pipeline wealth raising since private vehicle

being for the have all will know But we've do over our democratized four this to opportunity globally we to new major for know classes platforms we several yet quarters. it the and in will we firm. doing we don't wealth private is format what that asset date. upside of And added of to available multiple been the all yield. the significant So, course next what us know will be relative Candidly,

lining with flagship last So, in which on we back multiple in hospitable how mature just from we we a with scale to in and will market higher XXX funds we geographies, all as efforts, invest this which capital. our we our be our access really insurance the to which of people for us not rate well sales the products countercyclical with is up couple years, to multiple in recently environment, while but years at And also are hitting more at in are time, proving how diversifying KKR benefiting our more their point, expect in force, platforms private will couple XXX over next the all coincide we wealth us expanded continuing of be see up from stride. a

feel with making good have progress the we're despite multiple to So, fundraising near-term we win about ways environment, momentum and coming. the now more

bodes that well. all So,

the the the our we times on front, this, monetization value tend some the generate best likely seeing is investing like And On great of grow are so timing this these we the really in a less is continue will question. portfolio to front, news just an but investments. sell like environment of to

expect vintage the next across years for strong be We asset years of to couple classes. returns

harder Putting So the our investments plan. environment. near earnings term stay executing markets, building to we and we to as may the the feel may next about we're this the quarters feel we in while and expect how in higher are together, making all of our firm the down actually monetize couple we great this be bumpy road interpret

the on volatility we term. what bottom to more control. Now, we with it's market Last suggested market can to separate and after-tax I case. be and the shared focused noise that feel We DE referenced from signal longer changed remain and the noise important switching quarter, to The in the FRE has our not That line. the continues you. even convicted hitting we targets the

explain why. me Let

firm evolved. In has January, of the power the we shared earnings how

less, when even years been how over-earning fundamentally different trending times our In power Because a DE are basis, under-earning. But we report a significant. We there look earnings were be are this, than earnings are will are like are a and cash we is times under-earning. times power has at we on in and that we we that selling we largely place we ago. progress few

where to capital near when the And billion. where forward-looking record just is of well a of $XX ability of lot were billion few amount The invested. fees Our committed a is is powder visibility create turn have ahead we ago. with years capital on raising already dry we're we we financial have, outcomes a increasing fee growth the management $XXX capital of

Our carry-bearing we $X think years. And together billion years, gains stepping as to investing years our and or three when embedded back, our is is rate the earnings from environment invested matters, capital, last That's especially to we continue Putting great metric with us three to so KKR. continuing of a billion five dry over scale at a front times up powder. our over doubled increase, X last run $X over in noise the the has the power last deploy all loud. this

So, optimistic why to taking and And time are your to growth our questions. hopefully, take the it's With understand happy that, about ahead. clear the you we're thank so we path business. for

Alex Blostein [Operator question Instructions] with from line is And our first Goldman the of Sachs

specifically, you're we we lending. start hoping could with of can was credit. private direct seeing zone Maybe And in some on the I dynamics in

in So, assets third-party interesting you Thanks. could help the to of environment where capital that to really outside like that's you franchise? unpack see that in and for sizing much BDC? third-party of you the into outside And you opportunities how of quite Can have an opportunity scale remains, guys Scott, sort bring of business maybe continue of and suggested where there. the the the you area you there ultimately, obviously, GA

then Sounds why Alex. good. you Thanks I'll the jump question, don't off and on? Craig, for kick

sure. Yes,

of industry, mid-market the do a think of some just of the driver equity really look, start deployment dry we're seeing, lot dynamics see are terms which firms So the lot have of in of to private think I I you here Alex, powder. and there, a the

mid-market these private who use you're want markets. seeing debt of borrowers more so firms, the to more And generally

to the expect we lending share. broadly So in direct specifically grow debt and to private take markets continue

should expect of ways. here And you number I KKR, grow us think in to see in of terms a

First, institutional traditional in format. a

for direct So U.S. European lending our and strategy. we're fundraising

our as we additional vehicles here. time mentioned. BDC, over finally, opportunity. have on be also we is And Second, private there'll to you Global introduce wealth think the opportunities And focused Atlantic active

both part be So core credit institutional in perpetual in capital, of of wealth, can I summary, separately direct across private multiple the businesses it's to lots forms business, think for and U.S. We us insurance that's a that of U.S. outside the think traditional in managed lending, our grow. and ways capital, accounts, funds, the

feels the for going constructive out. again, lots just us backdrop So with opportunities really of

Yes.

Just of Alex. a thoughts couple I'd add,

think our assets. First so $XX and overall credit credit our it's off, of you corporate private business, about roughly or billion if

credit, is $XX you a $XX real large include roughly which very If adds estate billion. us, to business another billion for that

funds, and really Global billion, accounts of between or Atlantic, our we're raising got So, a number vehicles, separate the and we that BDC got to capital your question, we two. give And total fed across those. $XXX we're all is, we've of permanent have have other vehicles, different we've of across take

is few real the point, to The back. to would see, I Craig's we continue a pulling things. gets are rate. Direct where opportunity world and yield this lot highlight there. And period, scale environment senior banks to the investors are we're a this in are businesses, of But to to secured lending especially great protections off interest a definitely Spreads We base opportunity going traditional be those that a attention. plus greater. a wider, continue in vintage real finding seniority from is think around higher

will think that So, we interest continue.

$X $X for doesn't much asset-based that finance attention as $X business. pulling from. of that a business, and opportunity, trillion. which to to of get market very a us, our is hard That terms This in The different is that they're is the it trillion of a end opportunity large very finance as to trillion back -- think large other its on way assets banks is series thing roughly a consumer also assets use

space, that mentioned. have created platforms all number We of accessed go vehicles again a types across we've of that to different after I

can to real -- already then estate one opportunity well, largest players. estate real big several over what you to be imagine looks like credit, of that a next for the as we're us the scale going And there market it's and years,

for as we So credit growth think we billion-plus do big from in about our opportunity here. again double how globally $XXX

the next line Davitt Autonomous The Research. is from of with question Patrick

a big some the week, to on holding realizations, expect until pretty saying for pausing down XXXX. big basically realization didn't expectations on mentioned and competitor last year, You things PE they longer a guide and a gave uptick

you a you. So, pipeline with specifically posting there's Thank this half? still think agree do your view? conversations, pickup guess, And looking in second more the I meaningful path and at to

Patrick, thanks question. for the

I and for expectation provided remarks, quiet a year. And prepared the there now. we're our remain we're is out to think pipeline. this duration monetization that current right the I seeing what probably in pretty of our That's the seeing going way outlook in --

points to KKR separate specifically. few for a there's think hit here on I Now

the that is at think perpetual either our years percent mentioned or up most important XX-plus I earlier, is for point, of capital and locked inception. from this eight-plus KKR I

XXX%. that terms to In of is probably closer I'd our bet AUM, number carry-eligible

it's competitively got good overstate the exit into forced enough. in that portfolio. to there are and while that We could coming our result. right really contribute we existing it not that we stronger revenue the strong. think of don't our number we'll are one, so, a It's macro can health when I really into generally position as Number period monetization-related time, meaningful a be feel in two, the really point a Number confidence this the slow, the being factors improves. of to in we environment term marketplace. of near future And step-ups generate sellers in able very here the pretty that

carry. in and the years to future. the the sheet really is our his but on gains X capital $XXX record versus vintage, of billion, two and going is a carry-eligible times generate deployment this for AUM Number that scaling generating last is our is prepared And in the three, which the number hit almost number our balance up it's XX-plus-percent and diversification that's us, last powder, X $XXX Scott dry over remarks, billion carry-eligible. today's carry of

ability the And so the monetizing framework from the that our the trade-offs It's by that generate TDE why so for in metric, between around speaks in XXXX. monetization we investments the today opportunity per I here versus think, we and teaching on January. longer-term really really reasons of key power why question $X-plus future to outcomes that was ultimately and remain real share earnings one that of included constructive materials the go-forward us did we to

market-dependent. obviously only Yes. be to heavily One, I'd The is a thing of things. this add, going couple Patrick,

in gone last $X I gains it. think years. We've from to $X hit of on billion Rob three billion the unrealized

that's So the number That's with why we track. that we shared this. that

probably we is to do choose we to and most. one in portfolio this wait. the just So, the a some of in on of U.S. from going keep benefit global But Europe. that to matter margin, gains more things when than is want choose a especially we those monetize of mind, We're

particular, dynamics in some on Asia, has different now. going right market

margin. the on that will think help I

great shared per years should of picture few TDE that $X-plus about $X-plus the bigger the a share and of that. is the out, message we FRE you take still But we feel

would what will go wouldn't personal numbers quarters. I on we worried expect say So based we too through of that in I and focus up. next couple what perspective on to get going I'd relative where up down end the do earnings those My more power is to expect now. about we're

Securities. next from of question the with is JMP McKenna line Brian The

So of infrastructure commitments. business. $XX about on Fund has uncalled IV a I question had your billion

expectations the So think do we quarterly any then you V? around Fund of for of should And have pace size here the and about initial timing the deployment year? remainder how the of

seen Brian, Why is interesting it's this and things picked scaling is deployment, deployment. I on one Craig. the you've First, of up start? real don't the in time you've on that over

deployment the infrastructure high. XXXX, In And we've months, billion. $X.X billion. trailing Activity among XX was page think, again, you would our platform. $XX from the teams $X.X This busiest it's X, infra and over And billion as remains firm in to framework across it the So strong have have we the invested snapshot continued XXXX, is differentiated. was of global. and and seen be, the very returns,

to the I level be So think high. activity continues

remarks avenue on of honestly a the to about not We haven't point future in if think a to is, from is both talked that to anything I prepared will it as from an cetera. again, us. timing framework that And the fundraising democratized opportunities et help deployment relates But of fundraising, the have, then to as terms what well. continue firm. us infrastructure in continued And execute of announced for be as way I think other you're the time seeing and that continue in we innovation is we we also -- standpoint there'll here going X continue real

is the of with Brown question from next Mike KBW. Our line

and that the the fixed been growth if and organic thus second as has specifically the liquidity you side? guys quarter? quarter, seeing to towards are annuity then second then concerns up on really you in stress the the How market. of quarter surrenders you tail side, surrenders annuity So far performance end in quarter, And just quarter? in what first what related take the in other the the the into the terms the did really In March led seen see picked in you have in GA, guys the fixed what

Rob. question. it it's in Mike, relates underwriting. as with They expectation Yes, line Thanks surprises the initial to Punchline is lot management's a surrenders. for on remain no

into feel second That So as good we quarter into April. the continued has about that. well

team opportunity the a annuity robust today to very is -- of relates and rates are As is the our think, interest retail X price the where on clearly, annuities from where the really are we given that opportunity, on. here, priced it remains focused side business,

We have there. market strong very a share

this And the a institutional the right has earlier but business now. I our healthy of prepared real remarks, mentioned pipeline side through

And what some the we're we lumpier market but well. so the part there be of in a little as seeing and risk feel bit of good that nature exists with in that reward

the The Bank. Deutsche of next Brian question from Bedell with is line

the in And monetization billion important deployment. in environment. you deploy and guess are to in just $XX means your market just in, Maybe prevent course, loud timing I of any slowdown monetizing And don't markets is capital? market in But extent just your capital with of AUM, that from then thinking say, And own expectations of clearly, weave be you you capital could this narrowing can want gap of valuations I to eager, about How down, other capital what of sort the be if being heard this versus, And deploying slower the in you internal how kind pace? that will committed just the to good. you're into comes on fee-paying that. will context and doing environment of on slowing business clear, of using that? the

the the either I a lot market an of IPO just pick of markets billion can down And debt healed. Why meaningfully. Look, fully a as on Craig. Brian, XX have then deployment. in lot of the primary syndicated thinking example, couple $XX the aren't dislocation come observations, up shut, pretty over guess, number? and which terms months, or seen Rob markets, don't valuations start of first, been again, the a of have it's So I and we've last

for deployment of things I are So the we capital a precious, at, moment all at those very from good look but standpoint, us. is think, things

our prepared in heading X those into out positioned remarks, really when pointed things success this with put well Rob period, you fundraising we're as together. our And

active pursuing as of industry. think needle. to backdrop, value to as that's love I and Now we're focus move focused. in example corporate where the opportunities you're our so us operational I to an in anybody look, resources this carve-outs. think public those going much within activity probably where for been We be really private, seeing We've can We're look going the from

opportunistic that across those be -- going we're parts so the across And to of continue opportunity to set.

firm. you're you're finally, thing think across interesting it's is the balance because the real seeing balance. I And seeing other diversification, Real the

trailing was was $XX billion Real again, infrastructure, $XX moment mentioned $XX as equity was deployment months, the XX billion. a billion. Over traditional and private ago, estate I

in the deployment in you're you've highlighting seen a real credit deployment, also And step-up also big seeing and that it's infrastructure of terms I you've seen a kind the in is also but and worth our of to in business. platforms, the think estate balance within true that growth of real activity. the just growth asset first, overall with real investment level So it's and related

fair in to And put credit we're critical capital wanted global I the XXXX very a XXXX, months, XX And terms think the deployment we the then we've of pursue. opportunities. and deployment finance having to XX that as can I has those to So the strength not trying franchise what that team we structures finance opportunity to for an we that. in was to able been capital think strength $XX.X disruption, of situation look it have $XX up bringing markets billion. And a and billion, trailing a you're people date, relates it was all and the despite part in as to as haven't point it was of just the capital $XX billion, in together to had the us where markets, team relates of breadth do

it's Scott. Brian, Yes,

prepared add. of here. I into vintage as going of remarks, to Just walking we're it's be the I'd think a great in couple One, mentioned couple a things I years

adjust. if find different usually ground. start some a seem the your other sellers to need go of the takes common probably a fronts. number about a markets be question, bank as months that. little failure that to bit that. in but for of has of things We of Buyers We're to on. active starting to is focus you pretty and to of Obviously, couple created are discussions, on with XX side we there's It the equity, work So a that which countering happen pause first the

think longer. will us for holds we something not be that that So up much

of to to allowed deals weapon us some where and place. think deals financing shows been private market question, point, capital the the us up and financing we've your put secret credit for for I markets to spoken couple done. and and has a get then a markets, equity done We've has good the Craig's XXX% in

the not we're back infrastructure. or in letting TE So in financing hold us markets

credit then it's and fact, across capability I same In more side, credit kind both markets tougher same of for estate the as more the real opportunities creating where for the flow and on capital it's maybe have just some mentioned us. before, it's opportunity that and team. our competition sets And corporate don't

follow-up our up until rule to a years a fee-paying of X capital, billion AUM. Brian, there, but And quick the guidance no of be shows thumb in that just $XX X would firm on -- decent

reminder, at basis. on to comes that close weighted in a a average XXX basis As points fee capital

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

where insurance guys have you relationships, credit? scale estate space you there. this how talk then capabilities have where maybe to grow you in further set at talk out white investment broaden initiatives those some to And some could real there? capability And you investment you As maybe remain the the capabilities expanded about about your continued what opportunities out there, your of of can point see room could you

say, mentioned firm credit, scale finance all real say Atlantic particular, had insurance to the I that maybe I asset-based part of across private our Michael, would In the us it's estate direct the Scott. doubt impact before, biggest of broadening firm. has there's lending, that Global credit. was things would good no third Really with both with parties, question. relationships, some parts meaningfully allowed I that and

something of before, originated year $X somewhere after, like did transaction, the think credit billion a I $XX real Global like the billion it in we and first the loans, team $XX Atlantic was year estate billion. or

as So the it's just standpoint I because in an allow those that grow agent. job end to to do better meaningfully regulatory with and think, both the through even now very scale an markets. I we These like from they're operating also allowed to insurers third-party all origination us for spaces. And us, environment are are living an there's large think presence, them our of an just operator as opportunities opposed to

our is that get in be only are or and across do those space, all and everything know, great in feel can we you strategy fronts. businesses X where As to we of we top

do us the but U.S. to Global particular, heavier as U.S., did the to client gives outside Europe the an relationships also are looking we areas, well. both U.S. do in U.S., can across at, look classes. base And And across asset those adding too. just starting clients opportunity I'd to or for Asia opportunity is our It blocks more across building and U.S., and Atlantic Europe that gives the like we the globally today, us as outside say across our insurance in that those an we're we footprint it outside expand, origination in now all Asia we're

it's number for positive kind of of it and different those So number a businesses fronts, bolted X big top us been faster. across on a us a different of much to

on more that we impact see to be a of of an point part in. going businesses is space, the number We firm, of opportunity however, several kind we question, the your broadly, that could triple second think biggest double of there are everything and terms just scaling The different to. to we're that started. In things white the of I to

of last the last yet the we've scaled is years not a Over firm last the you raised money in years. old. year As started definition. -- of in started our in know, strategies we the Over lot in less XX% of handful than XX% X is of the businesses

what I'd there other is coming life time we attractions. of terms sciences areas. for are area another meaningful I'd that could as we us point impact biggest and the So to to some be over something point be in But climate is big to. that transition started. going scaling energy could of point

Great. in I off on balance for just And could a investment housekeeping if deployment Rob, sheet. just the sneak question the

We Michael. you ask would didn't have been that one, if disappointed

very You're consistent.

deployment at Mike, and million. quarter $XXX we realization of million were in is about $XXX the

is next of from with BNP Paribas. Giblat the Arnaud Our question line

share credit quite if at in what dynamics I'd to to most for It's wondering and opportunity I to been peers on of from by take is really us here? banks. here, deploy work look the to -- soft. QX and sort up deployment your the detected out market of when the see Yet pick like up credit. follow data we just promise in as a significant was you yourself

the it's since a X was disruptive beginning think in as failures particular, Why quarter, March, Yes, remember, bank don't of had think -- I we'll it's Craig. first I Look, start? I We've period. the March. all really

of a standpoint, standpoint, And that from a from to be dynamics mentioned volatility. tremendous deal financing as of -- a those X helpful going amount had Just ago. all a moment market not Scott or are

trailing wouldn't I into industry, the terms XX much honestly, days. So these too read in of

we from pick deployment over private in M&A A have market the you mid-market up of as end credit you lot have And refinancing activity of up. that opportunities sponsor-driven see time, in you'll new transactions. does turn, as sponsors as activity strengthens the up, that in being and think financial that framework pick

in is private X in see continuing the where think you're share to share broadly. credit I overall As growth a

wouldn't I XX trailing to look days. again, the into much So read too

Budish of Barclays. from next the Benjamin with Our question line is

of comments kind some your revisit, I to Scott, fundraising. of wanted about

excess sort across the the of sort just Just you Just it maybe gets in Is think got the the bit? some LT issues? of of characterize start then effect of all more a the decision-making? to thinking of the sort how denominator about skittishness pushed the that Could of sort risk base. further caution in Or broad XX raising much that XXXX. of it of of half that's back to expected year? maybe us context coming is sort delaying through funds into a that And little kind help of you've market, that is

it you're LP talking of what investor on kind area Thanks, dynamics, really Ben. of terms about. depends you're about, what the Look, in product talking

has around I'd say perhaps European the margin and been has U.S. caution been there bit where on more pensions. a So

this And a some of get as trying bearings that denominator their effect to year. they're heading definitely is into

they do the are budget trying quickly. out them spend want how allocation of much sort and to And alternatives to of their some how and over

not we're is and credit-focused broader you tends dynamics. it than and But good we're of sovereign just interest be that, that amount geographies. and credit to we And of the equity-focused the comments companies, base across that they a significant what more at see terms particular for insurance have the it seem been estate quite wealth life in couple managing go terms amount Insurance of especially classes capital of hundred It's Middle -- put dynamic segment, opposed Asia businesses whether for those feeling continue higher when different of are heard of near it's a we're to doing. to in work on looking and But annuity their billion you side. good all, got the in to now or the asset companies. that as and that to that despite kind rate, real funds, a to we're enough East, you

getting of we're benefit the so growth. And that

agree in with, contrarian and period a which environment family are reviewing to a The this to bit we put great offices money actually this, is work.

in. what we're actually all we So said you that's wealth, family about private finding And you leading know can -- offices new.

things these have infrastructure. access to private of spaces equity and had some like time first the is this So

And is a see dynamic yields all new this that what us. but we'll for so

over-index wouldn't I U.S. and the to European So just pensions.

them even coming have would out might hoped. they less some period, I than financial have And post-GFC from where of that say learned think of some maybe invested the on the I crisis footnote the score,

more credit, we're so individuals. across but finding there private that opposed they're off, and both you they're significant turning turning and real environment dialogue, of across infrastructure, is point would as amount investor equity, everything a broadly this The if make amount And off. institutions doing maybe to that in not think we're estate the is reducing it I committing bigger

too take wouldn't I the much from comments. caution So

a course probably on including but investment we that of back the there's because the understanding hearing XX March investment of or be a the talking year. don't really the of think undercommit this to some that will your they acknowledgment And those question also margin, period. strategies, be this think the there's Just an the good bit, of are of XX over as underinvest half want most people the in couple a people. we're going years are in months, I think next next And but number market crisis the the to fed on from I to, bank from I

headlines And the you're congestion seen Again, add, Ben, think the I only probably I'd and we've again, just where to Alex, last equity. of private traditional the on the almost seeing our Europe point, as thing most the part mentioned, the that market in that where in predecessor, investors. VI is had now we final we've XX% than XX% clients new worth that of LPs noting close They're KKR. fund Probably of a new great fund, larger its outcome. most are

in now fund for talked success allows these we've we And again, expect back be But that fortunate it or deploying And instead, the mentioned, this feel market until capital. a focus that PE on we're we're we 'XX we following to be the there. we've with timing. importantly, 'XX. us a -- flagship in our LP So are and year, having on market long going don't with as to that that, base time not on growing the more the to calls and of on focus

we of fortunate think might be in And PE X half greatest elongated. place really perhaps have space So the activity this back I delaying the year. fundraises no the where the or impact you traditional on having hear might people for be we're seeing those that

Ben, macro if you Maybe make, other just I'd about comment think is one this.

look back bit of they quite perform an well. alternatives question difficult. the environment X about economic market markets got around step cycles $XX capital; is back $XXX time $XXX say We're out to of coming of periods is years of usually, at happens And found increase what than time, billion. ago allocation than billion so to when over less And managed to now firm, we the what performed what we've like XX $XXX alts. billion. to what has years excess we were think ago investors XX in you we out their If coming tended dislocation of and And this a is, ago, less of and find billion; and years tend our about this, tend like a

several expectation happen launch on head the of we that benefit the will here. will our the is the private And Craig and of that, next funds That was of years nice same Our then thing wealth. kind a back wind referencing. flagship that got as top at compounding into be you've

over firm. our has for back we time, the hear the of helpful of is actually growth next voices look for this feel been years, you and going period fuel the the this to leg helps the I next like reason think quite So several the we're industry optimism on in and

with Our next of is Katz Bill Suisse. the Credit from question line

This Michael for is Kelly on Bill.

rate moving then in fee last nice quarters a seen we in nice call forward XQ. a You've X fee the the in out Was non-GA-related And over how from the uptrend with in there anything credit step-up should quarter? the here? rate to this think about trend that

It's Thanks, specifically we're from. Michael. little benefiting call bit mix issue to out. Nothing that a a of

of nothing product. uptick, see of that You'd little other mix but bit specifically than a

next line Finian The Wells is question Fargo. of with O'Shea from the

say, back the so, to for, sort back book the the on the And fee that a direct how higher you or optimizing of of that longer-term runway down? last Is if would have book? sort ability origination Just there rotate come rate. size opportunity to GA follow-up more now yields an into question

Atlantic. weren't question very assets in sure make assets. rotated purchased time We we related team a to the just those -- When for KKR-sourced GA-sourced working thoughtful book X, to just first Global that how from around to we lot to yes, spent with we a And we was of clarify separate Global Atlantic, to rush. were that the

not We blended couple over last years. over step result, rate as to fee happened way And time. our a a in a methodically continue and that's the rush you've balanced up be of seen in pretty

the XX blended fee basis roughly when our math cut at is GA you points. rate Today, through all

team. I time from any that can wouldn't the had But investment couple last changes conjunction the expect most rotate We'll over to to of with I think in trajectory to the we've market years. We that there's some in the continue opportunity book. continue GA over thoughtful do way. the

The next Goldman is from question Blostein Alex with Sachs.

Maybe latest on in the just zooming cycle. like capital get kind where of second. out to are for hoping management we was your perspective I in light a of

of earnings multiple through really lull, now going many the you well your a but an obviously, times be continues positioned. firm are and, to Yourself bit outlined peers of that

amount You power of guys you've have a earnings outlined. as embedded significant

more take lean road? little not why bit share of advantage So count higher a to earnings into shrinkage down here the significantly power the

framework Yes. capital around Thanks, It's with allocation. a right Alex. start a I'll just question, good the question. broader

You probably we as consistent heard important to can have say a thing management approach. before. a The a that of most team me couple is do times this

approach is There's question more we ultimately, that. that to ROE-based. when is than what much question on to risk-adjusted always going very drive Our the a we're answer share And allocating outcome are is best important capital, looking no the basis. per

around ROE liquidity of marginal real the to And a dollar we highest management is team, think, as moving core opportunity a our competency.

we've our well of float. $XX those Now of public the XX% work, now of XX% specifically our a if take almost years. outstanding. several That's our shares. our of of million XX-plus authorization in share look question a We've average for had or shares at body on we've It's or retired by north back share. buyback, shares The of which you place repurchased price retired buyback bought

our we like work. So body really of

or funded. of at years, that's of be -- completed many but over and purchase of M&A, the transactions price-related And to couple had do whether that, to that's that same cash do on past haven't issue we've the billion excuse look to able if you Global back $X whether mostly those Atlantic, shares me, top we KKRM that -- time, almost

a a buyback you bucket. step don't as sort share we look when take at so And look back, in at discrete capital X We of allocation whole.

it do as sense share an and the it expect going to lean evaluate and part a say, them liquidity over when to big a us same our other price our think and buybacks share to way our of from there we obviously quarters evaluate yes, number into go-forward But on share at. standpoint, opportunity makes see continue next we to years, From capital toolkit relative sense. we basis, allocation. when the opportunity we're makes count then where all be to is all you're of a sets out going to Now

we, liquidity. Hopefully, value marginal that's So how for the of dollars helpful color management as a thanks question. team, in our using

Our of Wells final line is the question from with O'Shea Fargo. Finian

think context of on we touch of Or market in little there for the transaction softer perhaps outlook Was this show strong lot year? looked expect I you maybe has a capital the the development platform through of stable started levels to the those fees? and Can improving one-off? can a your a to environment. throughout the

largely a markets Markets Yes. has quarterly quarter. our largely of have really been look We're you at million shut really been over per of north been And some our proud how finance Capital for shut. business a of Leveraged little revenue Obviously, in it's been time. quarters, if $XXX has markets environment. durable tough what past period average markets capital four the equity bit

in ago Markets think tough years ago X-plus business is of good is in business. years that markets. LTM number our $XXX markets probably a a is probably a environment. it's $XXX million really I year franchise. important And so X-plus revenue context year little $XXX of million bit a think our million in north about good type a that to And Capital today, in

as Capital do period of team, performance back the about guidance feel able as it what a up, from competitively, years see just now We traditional size really positioned for expectation management come but in be and number talent. about the of, Markets in we're to markets going And excess business. real that of X market quarters, that positioned how And reasons, capital we great of we, do to a forward-looking our a the really potentially relates to this of take talent and we is our do out markets has opportunity a expands of how X, a so when every we're today tough for well could coming look that's as we out that. time, business Capital a know we that generate that do, at talking open no we're advantage source then been team to when have of lot Markets that's of institutions where KKR access it

That's very monetizations? sight second may. final, on helpful. line or color And one I of if quarter Any

forward minus that our million or the embedded $X-plus $XXX of look have, we in context again, on question. Thanks It's Great. that plus balance billion around for of sheet. of gains

you. for this Thank At session. back time, I'll the reached And of end to we've closing our Larson floor question-and-answer hand the remarks. Craig

thank We questions speaking us you in please, directly. your the any interest And of everyone you Thank for Rob, help, thank for look with you again to have KKR. forward you results. and interim, if once post course, QX again. your our follow in up

Thank today's you. conference. This will conclude

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