KKR & Co. (KKR) 7 Aug 232023 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to KKR's Second 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]

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

everyone. quarter XXXX afternoon, earnings Good Welcome call. to our second

Financial our I'm and usual, joined Rob our As by Scott Executive co-Chief Chief Nuttall, Officer. Lewin, Officer;

segment kkr.com. we'll we available We'd to on on Center on numbers reconciled GAAP the non-GAAP are report press our at refer figures like Investor which everyone in share call, And release, adjusted measures reminder, basis. remind to to our as that a the which an section is

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

and the to of earnings Turning earnings reporting going now $X.XX per pleased We're share. quarter. begin the to financials. tax through after by I'm walking distributable of be $X.XX to fee-related per share

markets the fees were revenues. in the pronounced monitoring fees infrastructure in QX, quarter which core transaction XX% quarter. XX% Management the transaction in in approximately capital capital and $XXX of the contributed in diversification at continued over net business. was $XXX most million markets million; activity generating $XXX million fees our came with equity, the Capital revenues generated markets these And private along reflecting two business, quarter, of strategies of with in of

was from last X% million. quarter, up total, up in This were it's XX% revenues So, year-over-year. $XXX fee-related and

quarter on our quarter XXXX, to for FRE up be an $X.XX range operating And improved in of midpoint came quarter, this year-over-year with the guided is expenses million so fee-related XX%. Putting the at is million. and $XXX of XX%, this and basis, XX% of second $XXX together, the at to industry. compared right from at share our FRE was continues looking compensation or were fee-related XX.X% of Fee-related FRE best-in-class revenues other margin across last a per earnings which

discussed last against quarter, environment. activity, as slower realized transaction income. performance we the muted was to Moving Realization more

while million. realized million. our $XXX So, quarter, $XXX generated the $XXX came for asset income we earnings total, investment realized income, management were operating in performance at million of In

segment high operate pretax in Global earnings million a to at Atlantic as generated Insurance continues level. Our the $XXX of quarter

pretax per this reminder, a end ago. in distributable performance resulted range, a minute be after-tax expect quarter $XXX we above top that to share ROE was that I that in to range. As million so mentioned figure XX% just aggregate, In of earnings the this the $X.XX or of XX%

portfolio up quarter Next, moving appreciated to equity was last private the and X% over in XX investment months the performance. traditional The X%.

Importantly ahead world. meaningfully funds, here, X% IRRs at Americas our IV that's for of the MSCI flagship XX%, the which for and inception XII, date, Europe to corresponding Asia V figure blended remains strong so is

down estate portfolio the and quarter assets, In flat real over real for the months. was XX% last XX the

Our portfolio you're themes and and those fundamentals continues to be cash where assets growth. seeing heavily flow weighted towards strong

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

to the more NOI offset leading you've over period. and cap last decline have as increased months, the However, than that's over LTM the XX seen the underlying growth that what's rates

X%, assets. respectively and composites respectively alternative the rates, leaned the on up really higher was over a with months, XX% global of XX% last And the quarter months. Infrastructure X% X%, in reflecting the strategically leveraged for into were the protected up in and last credit, and interest the more strength portfolio the over in basis. quarter inflation XX And XX up we've and X%

private equity $XX strategy. metrics. the capital to middle next was activity Fundraising We billion driven quarter. by our Moving in actually diverse, raised quite market

which to moment. a Rob on products of touch Our further case private suite in focused wealth, on going is series

well $XXX assets as to billion. raised that, addition management in across strategy With close our and real Global final quarter. infrastructure fund, to and the its and all geographies, is Atlantic paying Ivy this reinsurance for in under capital core inflows AUM as to held which increased our sidecar estate fee billion Our from $XXX

while diversified well our in was real we've deployment capital. investments equity, approximately across by finally, was direct quarter, Deployment continued most In credit as asset-based deployment the equity Asia. was in spread across U.S. largely finance private estate and pretty business, billion, evenly relatively assets And invested we real to focused And equity the on credit and as within in lending. deploy private PE, core credit. driven $XX

work through also or turning available XXth before create that minute Now, which over sustainability June on value on annual and detailed to our to a in is spend our website. report we our we two sustainability, to it and protect want published Rob, we in

world, with wonderful the by introduced of their with company. workforce life our great have happened, of of CAGR shown one things case in including our we where RBmedia in our business study EBITDA the billing RBmedia. audiobook is publishers and over CHI around the another in employee the rubber investment, partnering previously, work broad across through ownership in publishing companies ownership and we've equity overhead broad-based is our one real and the the And its investment. Now, work, in core off the program a discussed doors and plastics areas connection leadership examples we've and of XX% a largest all of portfolio Minnesota

be annual sale and significant it's employees and be This income average, a people, game value. financial RBmedia two non-management of of on most So, the for changer All very employees. real annual RBmedia with for income. can driving tenured the in their employees a outcome receiving we XXX% years cash outcome late of colleagues will its July, receiving and announced a successful payouts earn this will

approximately our these three a we've Xx behalf exits, averaged of costs recent Over of multiple on clients.

over broad-based more grow ahead. point quarters RBmedia stories these we've So, to XX we've hope numbers ownership at to and and over and companies share we'll in years have expect we from you at this And employees. like continue the and touched programs introduced XX,XXX employee expect to here with

with that, Rob. I'll it over turn to And

Great. deliver focus that, to consistent our Thanks The just to of Craig. shift With the the has the as a begun ran Craig future. to conversation model improve results. operating continues backdrop lot, and through, let's

Our building are the it industry. importantly be of key model, of within that growth of go to earnings driver blocks foundational future thought differentiated and through and I be three our quality would have will trajectory, and culture differentiation beneficial driven growth. our much a KKR's

well. and from deliberate taken that business built and significant several Page to that revenues, build have release nature our of that long-term a very both growth earnings trend one, We durability of a we meaningfully the earnings increased earnings different stability we've this steps point greater very business has providing engines, expect power. Number benefits to continue. and recurring the highlights four

side also in improved more from earnings the and XXXX Alongside in recurrent and billion turn $X.X significantly the by that past fee-related billion XXXX just $X.X revenue left of much two of from over by $X.X the the management the to page, fees, and earnings a over we've stream over half our our to meaningfully $X.X strategy On has see prior have these XX quality as approximately increased doubled become months. you this billion years, most have hand billion we in diversified growth, months, geography. last the XX

of perpetual the increasing capital with XXXX at addition, capital base billion end today. $XXX of from In has the $XX to our form also our billion evolved,

our XX% for relative the AUM accounts XXXX. at now capital approximately roughly end perpetual paying XX% Our of fee of to

this will and our of form increasing We capital as fundraising base. both as continue focus well and profitability, of our revenue recurring the diversifying

growth avenues identifiable multiple the are block at building second The our business. across

calls, earnings two have and in couple We a to today areas discussed on going been these drivers of number of focus but have more the notable private over I'm that quarter. Insurance wealth. last the just

a continued us. for fantastic acquisition has Atlantic to be Global

our With past fees by as as Looking reinsurance AUM increase transaction, Ivy the with be important very both at two announced $XX few management transaction well and months, upon the In balance GA May GA's platform and co-investors. beneficial, billion will insurance closing, initiatives. funded will highlight earnings. this agreement by MetLife we've operating a sheet,

close This player market. AUM with as the final of as of $XXX formed GA to as to II, Overall, Craig XXXX, QX. quarter. allows created of a opportunities the of we've our a committed real the which alignment held Japan mentioned, June, Post success. a in continue of insurance strategic Insurance. its this, is in has how growth since KKR billion demonstration And momentum together And with to meaningfully we point additional can further and through in doubled our significant acquisition part with Ivy This collaboration us Post demonstrate GA Japan key partnership in acquisition and Japanese drive proof partnership a the announced pursue

is private in with Today, of asset-based GA the where area that growth one manage of of businesses billion accelerate $XX really private A helped specific our finance. we has credit $XX in billion credit.

We both ABF as market are is seeking in high for the higher bank plus provider with announced example. to real look already KKR the grade more multi-year five a structural has tailwinds PayPal yielding The as strategies. trillion us, relationship with solutions those recent a scale. the capital regional leader And with just our even retrenchment, recent addressable encompassing space, in ABF and quarter one

and this investments And the given products. We've distribute made in to we number opportunity significant now turning number new topic alongside have touched a launch on the to private wealth. times market of a of order

really focused strategies these private strategies. here. we've started QX end addressing In and In far massive been accessible for in a of two on a wealth capital products launch private so was infrastructure. new have and $X.X wealth across the equity billion critical scale raised non-institutional raised introducing off that not has private on products start clients. global QX, QX, total, good and these to We're fundraising a The step in we two traditionally including to market in that

ahead are the these still expectations. of we days, early results our are While in initial very

would just also over far, so have expect increase and handful that We the of launched quarters. to we platforms coming in a

forward look we business, launch of to credit private our BBC In new this year. a later the

incorporates a direct be finance, we to think the which will real differentiator. as addition strategy allocation a to specific asset-based In lending, viewed

have with at of four our strategically key the So, this aligned full firm. suite a private solutions investment wealth across we verticals point,

very that five to space focus XX-plus a next winner the over remains here ensuring much Our the long-term in we real oriented, years. are

have importantly, track marketing of real record, high around products distribution invest conviction significantly of core innovation the Our credit capabilities a success and our to our our expanded brand, testament unique estate number be and infra, to and able the of our investment across is and team. our opportunity into teams, factors, PE, and scale driven And set. to one including aspects real that are is each by a

Now turning to building block number three.

billion This just of hopefully increase earnings over substantial portfolio our a our because number continued cost, $X.X the becomes create relative deployment, AUM a currently up both increase, outcomes continue of balance performance fair investment paying few investment lens few gains meaningful in ability We and to to power is of ago. billion we more $XX provides further sit embedded into We and fee the biased achieve in years growth even monetize deployment. value That's to real the years, our an and underlying with from to next the more expect sheet. to as that future. have capital our that's And environment on revenue in that constructive. as our capital the carry

about earnings for earnings cash largely we is Distributable think a reminder how metric. A power.

gains intrinsic we that like earnings monetization that So, when only sell the one are through in less piece embedded of equation. underearning these, we environment, power and times are

our here recurring expectation for revenue of businesses as continued more well. Our scaling is

earnings, looking not points, almost a billion into directly with of capital AUM a average currently management without $XX turned management weighted once after rate alone, would basis activated, on. raising is that flow additive our dollar, and be reflected or in to have we tax at fees is DE. today management FRE yet not of Just fees XXX another fee This but

capital, more We creates for XX% embedded revenue of $XXX and When also is the potential which powder, over gains time. billion we of it have that therefore dry invest carry eligible.

constructive so over share significant around time. growth are earnings main per potential and for why further in our reasons the These are the we sustainable

buyback We of confident have at Repurchases price an us been our we X model saw value have more share. $XX quarter. stock prospects, approximately the the some to million never the that in per driver is which one Since of an shareholders. canceled and been shares of around of QX, our less and end share brought reasons for average continue our than have will be historically or creation important back you

an or XX% $XX. in more As since KKR price This float. XX% shares of our average XX million free a bought our today canceled approximately outstanding we initiated shares back have buyback just and at over almost reminder, per of we than represents program of XXXX, share

recent purchase have Manager with share value And REIT owners with $X of We such with Global almost price on Japanese our and largest our acquisition we stock, aligned completed management M&A limited a as remain as our and creation. Atlantic, KJRM, in issuance. focus team, shareholders billion of equity are highly the

will of others. and including earnings Number amongst growing more including differentiated private income, perpetual continue business and avenues, several to $XXX to by our insurance diversified supported stable So, of our by high-quality forms growth growth management summarize, have many capital. our fee underpinned billion two, we be wealth

targets more feel continue XXXX than gains increase. $X-plus tax share. and our $X-plus These finally, to are and FRE compounding in embedded And our ever of broadly after we expected is our of power De to to pieces why of more confident continue per earnings

are Craig Scott, your I happy that, questions. to take and With

We'll Thank you. session. question-and-answer [Operator Thank be you. conducting a now Instructions]

first from America. Our Bank Craig Please of comes Siegenthaler line question with with the question. of your proceed

Good morning, do is do cycle. you focus global of the to believe for first the doing you're infrastructure When fundraise? expect V? have everyone. be Hope next this investors on you first will well. flagship And the My your all close fundraising

Craig. for Thanks Craig. Why the Hey, I question. start? It's don't

to in the months. continue XX-plus we be really see over with. to forward, talked think XX XX we the coming market and of we having I strategies expect active about look market that amount as We funds in to strategies historically the a

if that or six number what ago. probably six talked think would've relative increased about XX months -- we to three I anything, or would've

So, of and level. I think the strategies a activity the level of number high remains at

us, to you or at as infrastructure you committed guidance I specifically and back any invested and fair to fund, announce have capital look alone relates the look relates front tables of let the of the mind of at specifically size our timings, specificity to the think for I But relative think becoming don't this it that point. a We it that's at something as topic strategy. when individual assume to that is nothing but closings to

Craig. Thank you,

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

back to pickup a Hi. here. capital bit prepared Good morning, the of go to Rob, a everybody. end around and little you just some management. of I Definitely your buyback wanted the at remarks to nice see made repurchases points of the and

Just buybacks you of what feel the are aside, to share we M&A absolute start at count forward the where And you balance guys going to sheet whether where become enough of in the now curious a we actually decline that has total like point could the a bigger scale sort terms. could to expect part for Thanks. recycle capital story need.

a thanks Great. question. Yeah. for morning Good the and Alex, lot

before, step is really you've to the say think driving have a we on approach. lowest this just as allocation, that and a with team earnings risk. the us share about it maniacally think important most taking So, as accomplish back that broadly a one of deployment us, four consistent relates say And to the And and highest can is for areas focused important more that heard capital this I ROE and strategic thing me talked per we we management unit most thing per is that. can ours of

to insurance continuing investing, core equity space. that's invest so And private across the

M&A. process. real the we're point And in buybacks. around the strategic of drive to core And is here one And liquidity that over most highly mentioned to management final team time. the aligned we is the highest share dollar that And share of return maybe that's able our You thing competency marginal per decision-making going opportunity. move fourth to earnings a the being is think

KKR you XX% owns As stock. to know, management close KKR of

buyback the on And over years initiated as of so, back eight program $XX share. you just our that we on almost back prepared question over to mentioned, share bought million per since XX remarks, buybacks, free seven, our your specific shares float I ago we've noted and represent XX%

So, period body the long of of accomplished that's been we time. a like work really over

continue buybacks look core areas and private we're per share other earnings be equity time ways to a policy. to like share helpful our in at capital of driving growth well, allocation all important very part going to But going of an to as framework overview. including so, over M&A. to capital go-forward And insurance and say that's continue in Hope

last several fee know, The dollars I'd several years, we've AUM, add, only at thing look Alex, quite you doing our additive been to you the our deployed FRE, what M&A, billion to that's paying our been we've TDE. as if

at look point, the as It's at about less look on to return mentioned. or in relative what's about strategies invest that the Rob Rob's to businesses. business we marginal to start highest seed It's give holistically, new going us it needing more So, to trade-offs. capital, new

Got it.

Okay. All makes sense. Thanks.

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

you. Thank Hi.

So, platform to hundred early. I'm raised backdrop, get of I in on short in it KPAC. I color time was little curious a one a slow million. you know it's on know more but a PE couple period a

So, what Maybe sidebar learned period question, of so curious time. if in be XXX that is And Ks included other much. in there? short Thanks platform the I'm this of you that from we then to and able platform structure when timing the ads. one get

us. of back long-term -- of I this and Hey, a that real know but Glen. moment, we It's had -- very we start? at I we I Look, a let's well, it's opportunity, all ahead Craig. take know don't opportunity Why all I have when step secular you think a for think that ahead this look that

access historically. have individual investors Alt way space not easy So, had to the an

to most is that true relates specifically. it private equity think certainly I as

invested the over their has products. X% and $XX to alternative $X in investors the capital that today, to to that individual flow that's have goes next of trillion if so, X% Alts And several years, assets additional trillion of into potential

relates of in you that and the these that a positive. terms number that, brought of of the the investments then record have, we've products number creativity strength a our of bring, that distribution, that to the these terms of track we it as to all points And that of of we relationships the And top all we've are on think creation layer brand, mentioned in products. Rob we super made things

call, we'd our last on closed expected had and U.S. chest indicated with earnings capital. So, to that you'd distribution of $XXX increase the It outside on vehicle be our as noted PE launched soon we infrastructure over, accepting also million

And is so, which XX raised days PE here both are later, great. with across we billion infrastructure, and $X.X

So, expectations. of it's ahead our

I is One, I super again I three. of terms in think guess lessons brand learned, to point important.

have number and the with expand ability as two, equity KREST through continue as in infrastructure. earned creation emphasize and the into channels we expansion. starting see product distribution you we've leverage that relationships again, new think, the private I finally, then I'd to then point, KREST that that we think And to I

So, gives hopefully on a that. sense that you

purchasers. those distributed of just investor in I that the structured in points and to Glen, XXX the on worth of K a the though in point, immediate can is highlighted that. qualified think it our way accredited it's I up that KPAC noting plans no just relates through quick do be innovation And that follow It's remarks. a prepared to as one future not

Thank so you much.

question. the comes Barclays. Ben question receive Please Budish of next from Our your line with

to taking It ahead of kind is the when just But there. and your like expected. bit insurance thanks to in firing question. to QX would've business. lot looks ROE, steeper QX the well things morning we target, at over decline about reported the ask performance than of like the from a was for a which it wanted I look good sounds Hey, we still QX of the

color just and can G&A about of think if curious in Thanks. those income share going we of terms of So, and investment how versus growth you there's insurance sequential the should in forward. there any various pieces other the kind cost

a lot the Thanks Great. Yeah. for question.

ahead XX%-plus, As to in our pretax and a target ROE. GA returns of GA continues perform for high at at QX a you was noted, really level,

beginning earnings quarter-on-quarter really our liquid more and terms a to in GA that the the quarter at securities In more you that the in saw of level decision at strategic operating you cash, position referenced, of QX, a the decline, function why liquid more fixed of book income.

regional in right bit the made back little and crisis that timeframe early of to the gave ROE I decision we think point the to a for time, part the you in business. we noted, but in up I If as still QX, quarter, were at book you bank of the reposition right think think decision that

it. very Got Rob. That's helpful. Thanks

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

Thanks. everyone. Good morning,

equity on private with So, billion story, sheet, about AUMs core it's great a billion $X and now continues billion to $XX total core It value equity XX% today. the a be also over fair in generated balance private looks totals $X return. like gains of

level So, about product And absolute for of about third specifically from the to this fundraising there demand time? could a over the way you third-party then, parties? strategy talk is think for

Hey, Brian. class of our noticing on start? the the First, reasons thanks all press again, we'd don't PE asset page focused the and strategy. added I Craig. of release detail it's that in for one the Why core and It's

in years, of for core equity. but innovation our that's fundamentally what can't funds. a when we relative home firm private opportunistic duration a happens find to we happens to long the investments XX and XX PE lot hold So, great than It's is expect a strategy our where compound our risk investments, with reward value different for in to

And great world. so, think what a is point, this we portfolio put across together really diversified at of companies the we

billion of organic was That's billion $XX years inception been positive. As you AUM growth. noted, all since three very have ago. returns $XX That

another it right, billion fair model, because to value $X the we've $X.X to billion got of I our relates you're think, just cost. point And relative in of the as this

to $XX you the in of terms balance And see on sheet. the and So with expect that, quarter then of revenues and shareholders, million. both the in piece, economics, markets capital the $XX on compounding top were we'd we're on grow fees the revenues third-party performance in million continue fees participating Capital to markets alongside. the management between

we've number to of So, got a ways win.

from probably think aspect those are and most larger with interesting are this I the of plans find in standpoint, interested to LP types -- longer matching related the asset I liabilities the an class. who asset LPs class think dated

So, I think for piece time. have to to that as both sheet well is to we're the as be period third-party us the long one talking an the talk grow opportunity of on going balance opportunity about, to continue about a for

Hey, Brian. It's Scott.

Just asset for some a education so equity younger One a a the of is couple thoughts you. happening. incremental extent part an to is class, bit private still there of

do As amount have significant a noted, you of AUM. we

lot world a of like around and out good about much and the as today. talking are, some here investors have powder why so we conversations. how we've But been aligned sit we We to we having dry it we're really

back probably for we we're focused as market happy on compounding, share have, to color long. spend reinvestment And the the may offices compounding, be portfolio to those risk. large we of referenced, that appreciation to be XX, plans I'd we'll think terms too that family seeing and mature dry interest then. greater XX, powder, Craig long-term continues to before we XX-year in a do of like addition and the more In power the to be also scale tend that larger from

Great. Thank you guys.

Thank you.

Mike Please your with with of line KBW. Brown is proceed next question from The question. the

And clearly just been out wanted of get on color to a next some environment, quarter, months. monetization how green Hey, full any shoots markets to for and just translate wanted expectations everyone. just quick quarter the recovery early there's recently it's to I XX your your the the capital in ask broader the thoughts get morning, into to six good the take could on maybe know on or then, and on that I date quarter? but

Sure. Thanks for the lot a question, Mike.

to million markets our past if generated business $XXX look we've $XXX year-to-date, revenue. look you the averaged we've of quarters, four back revenue. $XXX million over capital you And of million If

really And we're for capital performance that time. that shut of and period environment so, we're where proud that of markets equity the of in put largely most

is So, conditions. a business I in operating feel model built like tough that we've quite durable

the the in market some some market, we've seen of of terms market, life the back of leverage In shoots finance signs the secondary green IPO you've bit certainly in a half year, maybe follows. and noticed little the

we're little generate capital that of out environment outcomes Hopefully our think it, do XXXX the positioned in environment we're think we in but types markets for it's I and really really persists really to that that back call where shareholders can outsized come we of a early those an outcomes. to and generate beyond.

XXXX, you business really remind our Like generated revenue. I that markets in $XXX capital in a of million market up

today are feel than for in XXXX. built more in did I a doing this opportunity we've as like downside, think outcomes So, really the but that protects firm outsized when offers we we are -- model the the markets much open. And I

I think that business. opportunity forward the here we go as with greater So, is

[Indiscernible]

And us. pretty a QX QX. bubble monetization odd on the We've you. and sit got quarter side, Thank it's monetizations of that the on your then, for between of bit Yeah. an couple question on a meaningful

a over just that providing what in of of visibility QX can let you have I we the least instead the know monetization year. is around million isolation, of $XXX So, second number related at half revenue

our we provide that which through as performance the quarter. usual, this quarter, release, get end the As of details press to specific we'll

so, what bit here And for sure. a uptick we're an of seeing

still that a think of feeling I'd of cycle in constructive a I part all power. the and with we're are environment. tone say more overall we're underearning where earnings is we the consistent what bit the intrinsic our

bit relative but we've upside of here, more hopefully little to a So, come to been. where

Mike. Hey, Scott. It's

capital And me. just bit from color market specificity firm your little activity. question, just more I a to maybe Just away from the overall speak of

feels over far normalcy, that return markets it weeks, Rob a deal a declare last thawing but are like too said, doubt activity the early As is The bit. it's the there's no up. to and to new several pipeline

there's over the reverse that to bad then continue And Some but that expect through headaches couple next But news. are seen this public could carry to is environment from no activity few up. we'd tone's continues a and all discussions Day. this to market, if markets overall with that see quarters. through We've be perform, carries post again fundraising the monetization interesting the it'll if improved. doubt If and up Labor the

Thank you. color. Great

you. Thank

is your line Our proceed question. the Arnaud from Giblat next Please of BNP. with question

the conversations Europe wanted -- of Yeah. come I'm wondering your of strategies. Thank development any I with Good you back get your could more color -- on a and bit in retail wanting wealth I wanting in strategy on distributors your new morning. development globally. in bit if to wondering just focus you more just there. was was meaningful had you. Asia? a Have to

Thanks for the question.

answer yes, continues think, expand. is I the to distribution

as global. of think continues I you grow the top funnel to a funnel, from end the at and very standpoint, that's think If our this

markets talk global are those is, outside we're So, infrastructure, we one and and specifically focused as vehicles we lines. is U.S. again pursuing about, instance, for had opportunity that's private that along the individual in where created those on equity vehicles the U.S., and of

at we point opportunity us, of But opportunity So, have those think along of think year a platforms today again a that. can the take well-positioned trillions in of I of nothing healthy that over dollars and when number we specific the really versus Alts lines. into move the broader ahead piece we're terms anything we is of to look just of ago or

bit with little from world, as the time spending Scott. other and my been partners. color standpoint traveling I just around It's a we're definitely Arnaud. Jim I'm have Hey, distribution

And XX agree that our U.S. opportunity at behind just of at it as this sentiment we XX not are your and partnerships with a reminder, outside very offices much United the maybe and teams a and KKR the is As a States. are the developing in wealth. in both global have to built in We look in Asia one Europe U.S. private places addition question,

Great. Thank you.

Thank you.

with Our line Bank. question. of next the Please with Brian question Deutsche from is Bedell your proceed

guys. monetization the versus Thanks. The Hope backdrop. Great. you doing morning, question are Good deployment beyond well.

relative better of couple little if market does the And last soft of wanted deployment So, than running bit forecast even infrastructure, more and monetizations opportunities attractive say to And that I are maybe couple still we like if the can create to a particularly you monetization the guess been has within deployment on that, the you comment are were environment, the ahead credit. you a a then landing, next get as over landing areas your backdrop actually quarters. or seeing our then no within just deployment, quarters or in few sense more here?

I Hey, specifically. the start up think then Rob and I pick Craig. as it monetization don't to Brian. Why relates piece, It's will

couple a observations. So, of

but the I markets over start we'll assets the let's last months, private and the and have of to think, then note and as effectively you If no been quite much lot shut. been been There's precious. think credit, of with The for equity have markets The primary IPO time. a XX has you that debt dislocated question. syndicated market's been majority switch over real period and of shut pretty this period, capital

Now those for all those that good standpoint, are deployment are a things from us.

on constructive us of And risk be so actually a reward. why that's you've heard I on quite calls, think these number

outs. those, focused. articles and or morning. seen really on point. We've equity also closed announced looking think real The the been can value where this some probably transactions those pursuing carve our bear We've and bring of it I to on corporate can public's as move operational since this assets, at beginning most opportunities private we're XXXX. needle. resources to recent relates those We love the XX private you very private where take we for active would've of We're

as an So, us anybody. for active that's where think as I been area been we've

release, relates as $XX again, composition two in on business billion for it we of billion, really this have to that our the think and see credit, credit, We've XX, of into amount I $XXX that pieces. overall private press big us. broken it those of page AUM in a you detailed is

Asset-based finance, we overall remain in real risk pretty secular mentioned transaction but reward, remarks. drivers very And as lending. on within Rob constructive had prepared you've the direct lending, volumes think in direct modest be seen I his

share, constructive greater asset direct lending the But one as taking a remain piece smaller on So, I'd of has of on but think a way of risk class that reward, regular we overall been very the same pie. at time. that

for little and the you could monetization. a And I Thanks bit question, think Yeah. separate deployment Brian.

linear we've on our going in there's best went side, a deployment a as and Craig deployment lot be the on really the focused dry As firm done our to in strategies. through, of powder

able it easier, a related real the monetization the going overall when up is open level are deployment when revenue. for capital open, down capital of makes be and little open no it's that bit generate course, there some comes markets but the to are drivers Of to of doubt markets to volatility time period

$XX carried sheet gains call, effective of our between sheet the on and balance got embedded investments. I mentioned billion on today balance our interest we've

able Labor of to well-positioned green So, us and XXXX opening. again, in we're opportunities of some presents for seen deliver outsized post we've that advantage take really that and the day, hope And good outcomes to market we to very some persist shoots beyond. here be the

deployment I'd monetizations up. -- Brian. Hey, expect both increase markets if open Scott. It’s and capital say would I the to

if -- As which from standpoint. more open, monetizations doubt especially $XXX been will deals done. be activity, classes, and a see harder to question When deployment news there'll We've that'll active, dry of a to that's billion benefit, more run capital the powder, reminder, there's to your got asset we've and shut, recently, so it's more great across are including and infrastructure. but our M&A no markets overall you'll also accrue markets get

That's great. you so color. much. That's great Thank

your question O’Shea Fargo. of next Our with Please is the with Wells from Finian question. line proceed

everyone. morning. Hi, Good

wealth. on question Another

you peers that? means you. to think you structure are Thank doing? the what or mentioned, you for are relatedly, your feeder what going BDC For non-traded accredited that flows for compared And does do only the monthly solve eventual the for potential

important relates I an the component as Craig. I Why part it Hey, don't creation It’s And start? Finian. this. to product is think again,

as equity, the to private across across opportunity those as markets. all as So, those four estate, well relates the and infrastructure, focused of both vehicles real private it having on fundraise to launch We're BDC.

through meaningful multiples look through is again and allowing the market purchasers. qualified And not So, case size just accredited us think the that's -- is investors I capital to accredited purchasers the entire both to raise qualified the suite market. in of our investor Like view.

in that and our long-term is broad we that that again, opportunity just view or funnel top see. helps that very the pie one that is of increase So,

you. Thank

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

Hey, morning. differentiator just a on is I for real spend a you KKR. moment was good could infrastructure, hoping which

infrastructure? So, deploy your growth capital just of how next are you expanding take you thinking for the you of about into and What the infrastructure? how capacity might next steps are to sort couple years, over driving leg

question for sheet And was balance just how then on off invested and deployed quarter? just much housekeeping Rob, a in the the

Hey, start infra? It's about. I on Mike. Craig. Why thank again, asking So, don't you for

is performance study ago day, at a Investor long-term. those strategy. years over April walked case it what XX earn So And infra the of And half into through that really us how the build to as scale both platforms allows then to adjacencies. look we XX, we our two begins was for to and a right innovate it and flagships the flagship of is with strong you new really

four infrastructure platform out with our today, built distinct is segments. so And

and customized private wealth Infra then global our Infra, the vehicles for series, infrastructure have most Fund diversified We investors. Asia core, recently,

so was itself at XX, hasn't growth It's infrastructure that's nicely At of the I think is organic. Again, renewables at $XX Investor And an The as that we're so, Day this billion. we innovation to think can AUM June in in it that's a billion All grown, to and where relates that class an we stopped. we private wealth. the $XX in were billion, area how And more. billion. also sense space $XX $XX earliest you give of marketplace. do to we asset very think days look, lends

more come to So time. here over

seen increase deployment step the as us. seen increase overall function deployment, it as And you've in relates for you've to stats logically, in the our footprint,

deployment little a It XXXX billion. was infra over is $X little XXXX was a in $X.X over two $X.X billion. billion. -- So, was

Over the billion invested $XX the in XX last months, class. we've asset

again, for -- same you capital through as touched the markets, -- opportunities in point seen time. there would've and at Robert flow are on So in as us

So but to more we're wonderfully well like positioned. it feel come, to continues

deployed And of then that A chunk good part question, the of And then, is million in were the most it quarter. off realizations equity. your of quickly, a approximately private your million sheet. a Mike, -- the balance under $XXX our very on second we $XXX little quarter core

Thanks. Great.

Thank you.

your Rufus proceed question line next Capital is from with The Hone question. with the Markets. BMO Please of

minute spend Asia good Thanks could an update very giving Hey, much. morning. on Maybe a your you if business.

what It'd a in you consolidate whether any is region outlook for over performing very to position also and KJRM great acquisition's the that your owned inorganically, to more year. the hear about now You've be business a for little much. Thanks opportunities near-term more the and how fundraising. see

lot a thanks Rufus, for Great. question. the

number a Asia will Asia part reasons. this really as business. We our about as growth feel for at day of U.S. in KKR, our story core we've the remains talked our business be and good one a past of that big

got real credit marketplace, both largest position sizes. which growing the well. fund of in and We've in terms as are we've a in as private as got equity infrastructure, businesses great of the well real region competitive the plus estate, So, across

start. translates into existing what their to just particular And doing cement KJRM for the what to which engines in terms and core it does KKR. is our In strategy strong our base, the do off within from competitive a really and that's at market, investor very which to fees for that. consistent to And for of standpoint, is generate acquisition, importantly, rest our position what Japanese wanted of terms to But our we of of big one is Japan. really a management really in terms changed the opportunistic And returns helps of Asia in growth great market. we're approach predictable KJRM very strategic us in much the strategy it a accomplish, there able really plus Japan markedly more in

your we say would I'd consolidate way. that M&A region open Rufus. do always looking. It's to to more in and question on Scott. the be We're it. We'd Hey, in

So, definitely open-minded.

Global thing other now Atlantic in also would partnerships I is only The add growing Asia. is with

We've quarter. Something past in been one Kong. some the lines. Japan AXA to we're discussions announced there's flow Hong together. that announced do Singapore those that is this Post with Partnership now announced example. we've We, able just other course, of We in more partnerships And along Block

are expand as opportunities between see we to efforts do in Asia inorganic, insurance Some and but organic well. our

Thank you.

Thank you.

[Operator Instructions]

Sachs. Alex with of the Blostein Goldman from question. with questions your Please proceed next The line

how of business, your Hi. touch to number It's where spend a and are on big Thank you you taking to place just guys Appreciate the the I credit a asset-backed the wanted origination it. years, gotten it's time over got you've more a sort for communicating street finance. specifically that of bit it. of follow-up. little supporting platforms

look maybe think capital third-party so maybe insurance or strategies companies of does get I'm rates Atlantic, you remind the And it's of as to type for just institution LPs, that years? a fee over like but more. us account other a of of rate, couple are? next separate it's lower what Global what like about fee the whether business, type those curious So, -- raising outside assuming Thanks. generally

XX. we detail you that again, page Why asked don't So, glad about, start, I on Alex? to first back the provided

$XX AUM billion of private of finance big billion here, in pieces Two So, direct in alongside are we've $XX and $XX credit. got that billion us. A big the of businesses $XXX asset-based These for lending. in strategies. credit of key component the billion is liquid the

And $X-plus so, question, to trillion. back ABF massive is your a end market,

we view it, lack a providers our this You have end -- to and our many market. have, high capital traditional market barriers continue leaving against the we in void. And of view creating to and entry scale in see a

true continue funds for finding terms everything has strategies to that's has the say broad traditional which high been be had would so, Those have that's the well we a doing. we're partnership managed grade as And where asset-based to to with date attractive And finance Global of mid-teens in for PayPal focused been opportunities more on us IRR pursued led risk really Atlantic within instance strategy, our that that reward, landscape, the strategy in separately insurance as increase would accounts be gross transaction. and the relevant opportunity. to ABF

deployment has healthy. been so, And

$XX XX about trailing us. the over think million been it's I months, for

announced So, be the in been partnership And to we've on active we it's the the where addition that June, place team front. to active. in a been regional PayPal continue does

ago. about two I think our here portfolio weeks most recent close acquisition

rate And with gone commensurate we return rates, in between into fee asset-based different in that a strategy. finance to as that fair grade blended the fee area high finance itself. that really and terms risk the you're would terms the high grade asset-based relative it detail to of say the separation The be haven't correct. to of fund But relates

Yeah. Alex, it’s Scott.

going fund. is on little see ABF fund Just large do a This to going a an we more be not types the to of maybe color formats, capital bit flagship have a would be so of raising. bunch my different you're But guess.

our have We BDCs.

have separate We leveraged accounts.

We have separate unleveraged accounts.

We on. be to format, grade ABF tends high that we're a which in have strategy, there's things working also separate account and other

billion that up the so So, mentioned. Craig to aggregates $XX all it or

institutions. interest XXX what early market, insurance understood of growing from me bit was. a seeing But This invest with on infrastructure lot also class years a education. a people reminds companies third-party we're not asset different days, little initial increasingly a basis. right, that or has us the In from And years insurance, manage a parties. of But billion from last say for XXX, the several we number interest you're the we roughly $XXX XXX, now it, insurance third give GA, companies, if the thematic been to if from there's of There's of it XX-plus ago. lot rest over have places. take a I

to as on continued global. We go in are and there's finding it credit increased private has the broaden interest focus that

we're So, optimistic.

Perfect. all for Thanks that.

you. Thank

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

you you XX to thank the help interest me with Please everybody Otherwise, you speaking Thank thank continued follow so. for course, we to days feel in IR KKR. post up free, look to in or much. your your for so Rob, forward and call. this team or of everybody

your for participation. This concludes you today's conference. Thank

your at You time. disconnect may this now lines