KKR & Co. (KKR) 6 Feb 242023 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to KKR's Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note, this conference is being recorded.

I will now hand the call over to Craig Larson, Partner, Head Investor Relations for KKR. Craig, please go ahead.

operator. you, Thank and call. everyone, our quarter fourth Good welcome earnings XXXX morning, to This Rob Officer. joined Financial I'm morning, usual, as by Scott our Officer; Nuttall, Lewin, Co-Chief Executive and Chief our will We'd remind section the which available press reconciled like are at on our non-GAAP GAAP in which everyone we kkr.com. call, figures to to release, measures refer that the on to is Center Investor an reminder, we report adjusted on share a numbers basis. as And segment our

or segment about events Please earnings which SEC reminder, November QX QX do And and This is our not changes release refer release as we Beginning call will forward-looking XX. for earnings in earnings financial of quarters. future and to contain filings reporting consistent XXXX, statements, guarantee for these with a performance. and the our cautionary release our financial factors announced our metric on past our reflect will statements.

the strong of with pleased our per XX% Turning We're of $X to and quarter. from to is QX This earnings $X.XX. earnings reporting be for fee-related as distributable in record XXXX, came a numbers KKR, now XXXX. QX well share. figure at up results quarter per for as fourth After-tax share

$XX billion, capital in quarter is the New also particularly raised strong. which was

for a really overall, So solid us. quarter

begin I'll little this more in our financials walking through detail. morning a by

comparing management quarter, years So We growth in 'XX management year XX%. last all several percentage X.X% fees growth annual with fees fees lines. full for consecutive just in management the to across And quarter our were double-digit up $XXX million. our to now. compared That's reported grew of XXXX, business

transactions particular, $XXX quite Markets several $XXX an of PE companies. revenue. million was million Core strong in driven and transaction fees and our in monitoring fees, the in and financing portfolio with activity were quarter. investment transaction increase PE That at by of QX Capital were in Net

of XXXX. fee-related year-over-year so up billion, QX total, compared XX% quarter the revenues basis, in on a to So for were $X.X

expenses. our the to operating the XX.X% Fee-related midpoint of for revenues Turning was as million. were expenses for the Other usual, quarter as at at range fee-related guided well compensation, $XXX as of year.

earnings $XXX share. per So million were or total, in fee-related $X.XX

mentioned I this highlights seeing view in as strength you're for as really FRE ago, quarter of just this As a the And diversification was growth the record firm. our us. across a continued moment well the that

quarter FRE came And in XX%. was a margin FRE on basis, the year. in per at Our $X.XX for share the

activity. realization to now Turning

by businesses, traditional was of multiple quarter performance the and equity quarter, driven core $XXX investment income million private was This For we with income. quarter. in across sales incentive realized realized fees the generated our by in the successful driven fourth million. Realized Wace $XXX Marshall

operating So were Management together, $XXX $XXX were million. Asset earnings In monetizations million. total,

operating million quarter that $XXX Moving across of the Insurance of in to earnings, continued million pretax quarter-over-quarter. segment. up of earnings. insurance income to institutional our was the channels, This a be generated individual with XX% the sale well investment strong from as net the both inflows as $XX variable and result solar pretax of developer that's segment Performance stronger

with total, $XXX quarter, in In share. was figure So that or DE up comparison the after-tax per $X XX%. million was prior

performance. And to turning investment

year. for was and the the the of earnings down down the year. release. the quarter private see up the portfolio quarter X for the on X% real appreciated XX% up X% was in opportunistic You estate Assets, Real quarter The this XX% year. In in Infrastructure equity can Page X% the and in X% in and portfolio

the up credit respectively. and here And XX%, So across and X%. very And XX% our platforms. infrastructure over year, X%, strong performance alternative composite was the in credit, leverage composite was up broad performance credit was up the

per $X.XX we turn increase the our our effect to with finally, with anticipate to pleased go historical alongside I'm Rob. first call we will practice, to XXXX And And $X.XX are that, quarter to dividend earnings. which intending over share, consistent from into annual

Thanks a and lot, Craig, good morning, everyone.

First, our looking key at operating metrics.

raise quarter, are Global strong raised XXXX. from we business and us had about has grown head our made for Credit encouraging inflows $XX as quarter capital results quarter. this liquid partner. up in and specifically quite capital for of we as particular, record channel. individual GA the with as These a the and totaled New strategies significant Atlantic into in overall the both billion the X/X

continues So very be strong. activity to here

Block activity active. GA at is also

know, And first in block the to quarter, closed to coming you close very approximately of transactions, of XX% transaction block blocks, of and MetLife continues from the expected to equity sometime the vehicles contributing prior with capital in As capital be XXXX. Ivy co-investors. the similar half Manulife in efficient is both the XX% and GA the additional here,

management third the from well. XX% where performance So opportunity as of and fees parties, can we earn income for

the $XX announced note, And billion. Asia investors close XX% Over we new II than half over our more infrastructure post successful the the Of With than look approximately new billion, out around next fund. capital funds be just in the broadly. the this XX into to previous And XXXX, largest right infrastructure platform. of fund fundraise, from as XX/XX, Asia raising looking raise came and the region, of our past we $X.X number will the final larger at enhancing more in well. year, the totaled flagship Asia over capital as a clearly are infrastructure months positioning capital we

expect to here. our So continue from we fundraising acceleration in an

capital Of particular year. and year the assets for was to ahead. quarter we across deployment to real opportunities liquid deployed core diversified billion in almost be capital, note, We've well transactions uncalled the we Turning in investments And equity deployment of positioned quarter. rebounded equity, take-private billion private private $XXX in and X equity strategies and that made the $XX the with private U.S. QX. continue in invested are credit billion the as in really invested. and $XX Capital for

progress XXXX. of course through on shift briefly to wanted a I now the to reflection our

management past now AUM up under billion, $XXX that's stands with $XXX raised the at to now almost end Fee-paying assets XXXX, total of year. XX% compared billion. in sizable capital Our the

Given XXXX, future AUM, approximately that's it's that fee-paying from of basis billion just as or a of growth line it points. management committed enters at XX% fees becomes our $XX fee-paying consistent when in with investment weighted and invested capital increased in of of over XX rate growth average period, its sight

almost our was $XX.X on opportunity has for embedded future gross investment QX revenue our And of while gains in The realized more visibility XX% we gains balance billion XXXX, interest. the sheet That remains carried XXXX. forward to on income meaningfully lot realized given year-over-year. was plus compared reflects increased environment, Total performance were embedded in And a strategically, investing year-end. progress robust. muted XXXX. of at This and up made

As you likely we November. know, initiatives announced X the end towards of

stake X, closed and for cash. the on value acquisition unlock will for create excited Global this remaining in an As $X.X our January approximately together. shareholders, future billion and in are policyholders more on to we of update, Atlantic We believe acquisition potential

have earnings will our with segment, Concurrent created closing we XXXX release. the which of you a new QX see in holding strategic GA,

portfolio. be driven core by cash the our segment will dividends operating Here, PE earnings from

model revised financials, our and more our in more the also our our clients. delivering shareholders to similarly FRE our and be QX even outcomes compensation alignment We will of ratios, compensation driving reflected which between

recast highlight business financial earnings to a new This a include help more total financials introducing be reporting metric, our framework recurring will provide will which we that aspects, model. these Prior we operating represents will the will forms various call, of next metrics. Combining further earnings, understand income. better you key our new to

announcements expect to share and increase allowed accretive to all confidence target it per share our do metrics. together we our of As is a current to to XXXX with FRE us reminder, share. $X.XX-plus these have, be we And the what visibility per per

we In XXXX, per $X.XX of FRE. share generated

from here. expectation is So of for lot a our growth

growth have, we these management, announcements, to we The multifold. we paired engines that existing Given with across and set have scale. believe drive insurance holdings asset up strategic opportunities we are the well meaningful are X

to drivers a of growth. our with There Turning Management first multiple upside Asset of lot remains business. here,

that to younger We XX-or-so and beginning of alone lot to just a have businesses investing are inflect. past We decade many starting strategies now through the started scale. are

asset climate player. and where markets examples. And and be a massive only great are conviction reminder, want top in large we with have and are all geographies X as to can infrastructure, we addressable credit We with a including we Asia, end markets: competing areas that classes in be

K We are the success still end that in products in tapping with of private of of into suite market. the Series had opportunity early wealth a us. amount We've our tremendous in is front days early of

here, from feel talent that's these management with growth and our could our double asset business our avenues, trust track strong new. along the starting built without we've that we record, With we that clients, with anything and

$XX our partnership in created a we with GA is transaction under very Global at of $XXX Atlantic. deal. under contributor value, our assets have opportunity management Insurance our pending XXXX announcement July Manulife of Second, billion including initial of of to has a today, billion a business. in going lot from the block management assets to over meaningful already of with insurance the powerful

product even of development, unlock still distribution in strong we our investing, private And very early together and more capital opportunity partnership. markets. a stages in global have We the expansion, value to are wealth

people, all differentiated. strategic finally, opportunity our is three, And highly number capabilities our holdings, leverages our culture. and where This collaborative segment of

million uniquely are on positioned have huge what this is visibility million addressable the that's already net by dividends we we we to a of in XXXX. $XXX-plus current in a capitalize and As market. drive to addition result, $XXX-plus believe And segment XXXX by to

have visibility are in growth. type there we or firm. incredibly a companies are summary, we we well of don't that In industry long-term the others that have many really as positioned think our for And

We confidence Insurance segments: all Holdings. that can our grow have meaningfully of of and we a level Asset business X Strategic high Management,

are excited host we in are we that, April to announce on XX. an New Day With Investor York to going

hear our leaders. the and be all to across of our thought timely strategic would from announcements the opportunities for you senior firm, Given November we directly it

detail we team discuss and that coming We these our will in our provide join months, the will hope opportunities. additional and broader outlook you as

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

[Operator our from today Bank be America. the first with Craig question will of And of Instructions] line Siegenthaler

looking largest X for your for an Rob, funding were on Scott, update flagships. we

at North the for have X. we In invested. So already global XX, committed. now. Asia, you XX% over both And XX% when look with which America It's X, are X higher in that's

of fundraises the think commitment should and large targets these we of about think timing we importantly, funds how given size all And from last should from exit? the So about AUM more given FRE ramp the these less step-downs how new they're the the prior funds, levels funds?

on Craig, Craig, that. it's why I don't start

the in to relates prepared remarks runs raised, things and of it that it new would to as of heard as First, mind capital the exactly look, one topic relates relates this Rob, you the from our strategies. the to have trajectory flagship

Americas, if billion when the of infrastructure, we And firm, 'XX, PE came Core $XXX billion total, look PE, from new 'XX in raised than strategies. raised you those came less the last around of capital you and those largest than billion at look complexes that of billion fund over our $X that numbers, we year, $X from round billion Europe, So Asia and raised $XX less capital so $X within we flagships.

'XX different. so and that's as we to 'XX. about that look think And going think we

XXXX we do are strategy a strategy launch year, the our initiative later and in for fundraising our to infrastructure for Asia equity Americas so with private us. fundraising likely And for actively expect

going those be mentioned, paid you drawn capital numbers, be capital back that I we always investments, if to little happens days. remember, XXX et to deployment cetera, spoken Again, be is the platform are to Or the there going if under capital understated. numbers have a that's be will On of inside line, additive. for. that

those So positioning. relative think to little always we more that a of look numbers understated how deployment

vintages. of And lot as the do it infrastructure X had next other We points our Again, relate channels. relates couple in and strategies as finally, of in those mentioned scaling well compared scaling expect Atlantic, The their Rob then we institutional in momentum the that the of to I that. the we strategies. nice like Next-Gen final good we talked to feel one wealth then Global had would We think to about here. Impact Tech We there's press alongside prior And a scaling. for release us. both individual in have our news Asia as strategies in a on closes our

important I being new opportunities an positioning turn, part that raised the we capital is really So certainly flagship fee and, management in that. think see with the part of an growth of for attractive our

it big as be some they that in at and period. When will big in up don't have to Rob. question these market funds, the it's look Craig, they pick post-investment relates transition rates fee you I'll your as their predecessor on flagships FRE. to step-downs of

where runoff, funds prior, out. you to But the are in think probably investment and an addition prepared hit when $X.XX-plus today we we're And if of a share. at we're years about going that, it X funds guided In X where is from at from think and X this come runoff FRE now, to a about we those kicking the remarks, of and per going, the $X.XX being maybe funds have you close per up share. we've from expectation prior of lot I level,

will growth basis, and our be there, part is flagships, we're get have of lot going a story. fee that of a on a to expectation to net management the order in so And

speaks a Yes. of on it, know, amount part are this is Funds of quite of mean, number you of Craig is been add, X% think significant number I strategies inflection firm. The would Craig, in IV, I we overall come III, scaling the raised And $XXX fundraising have the we curve diversification thing nice the for mentioned Larson pretty where we've to II, is low I only see of growth. from as optimistic. view of a how flagships can a that the billion our kind our but

time. we to II, But back right I, XX Fund to we in have think open-ended point to flagships strategies that newer in So good market our a of that the at be XX XX also months, III, you're really to are absolutely we the are these coming going next younger strategies. is out what category. coming put XX

can you it. And see

Asia-Infra, up up XX%. XX%. Tech growth was

wealth, fund couple top in regardless Asia over the backdrop. happening that speaks the the the of GA, we on last kind doubled Our of private optimism years. that of even environment what's Yet, saw of see to impact that, with we

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

your expansion could I prior on comments in you hoping was start building channel. just with the wealth around

you're days, bit platforms. of quarters some mentioned of a only couple quite early You these of in success a seeing

I market what you expect FRE year, So a the you're believe the be the guess, more bit did maybe of products et whole conception also, I lot targets for little in really a many of about to include But how importantly, past, this out over these MD platforms with course on, and initiatives. in not cetera. your XXXX from

could So maybe just kind contribute of confirm that, and what do you over think ultimately those initiatives time?

start, stepping thanks Craig. for it's I level just and Alex, don't for that. back Why setting And everyone.

So XX/XX, from Atlantic. management does that are under number policyholders Global $XX of of billion our include not And around assets of as individuals.

we presence $XX So anything, relates broadly. if you could activities as billion, argue is the individuals to that understated it and the have that, with

as our strategies. from worth Now invested and and offices individuals high most net as $XX of that in are family have that billion net funds ultra-high well worth

of total, from fundraising our of historically raised in gone terms individuals. our a capital in And has new typically double-digit percentage

healthy fundraising activity. that part of So within a

question, what most Now of most introduced we specifically, our K your products. suite back Series we've recently, call to

and strategies And really investors. so are that and these tailored for specifically are funds designed wealth

only and both K non-U.S. and midway infrastructure U.S. the vehicles K vehicles on launched infrastructure. [indiscernible] private the So equity. are XXXX. private and Infra on K Pec focused We focused are equity Prime and U.S. non-U.S. and through

top suite of from products wealth, our of soon $X.X private products. with that, and these that billion be as launched of in around And of real K $XX -- that of to credit BDC as those is estate around billion Series on well of

billion. $X.X ago, year a that Now was

here. true to So good more about of but and the asset And really are in newer we which some equity, progress as relates the that's from at it investors. for we feel statistics, underlying early as look particularly affluent mass days, the we're private classes infrastructure

we've $XXX month As we a raising we're suite. K mentioned the million about Series historically, at as look

continues to interest good. and our feels in really And reception like so momentum it feel

we point, do half in 'XX. number acceleration platforms of the in your first see to to an And the expect of

secular really great had long-term these to individual to access because us, that types have way progress. interesting investors historically But mass an and is part even So it's more products easy strategies. dynamic, the not I think of affluent

record, coming term. digits, the go we marketing, see in from the the ability our in literally think we've the be allocations made and is the trillions over of low to investments start years, and we're so space given to a have move distribution brand, that long how we're our single digits And when positioned products. if track correct really product-innovate, to we over that our dollars winner the to you mid-single potential of to positioned alternative well the And feel to that

question just relates to targets. private it as Alex, on much as Historically, our relates wealth. anything we to haven't XXXX of it your included

end, some As through, see that some number the -- the to years But is to you're that modeling in few our at we we inflection where contribution to different went that post-XXXX real success that's the material look across and contribution investing given early long-term and see much XXXX, the between P&L. see as 'XX, hit more start of to Craig forward, just area, a continue we we Craig real financial just it businesses coming we have. going we ramp, opportunity of do on next really over as the do

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

private in more way. providing Yet same opportunities more world space, credit services right I now, see relates the -- know your I coming activity. movement into coming we time, the at up you the question bit a into going private and requirements see some banks, are banks back credit. loan little see getting and X-way So to I them see leveraged asset-backed are in and capital some and

bit just talk little lot specifically to what dynamic if you for that a ahead. about wonder we you're a the could So asset-backed side think doing of growth on all and is what position I

And don't both asking, So start. for important are secular I thanks drivers really relates why Glenn, businesses. to because really as these it

credit Almost finance lending. year-end, as had a $XX was as $XX direct private around AUM. So $XX of in we reminder, asset-based billion of billion and of million that in

businesses us. So big are these for

expect larger probably framework someone than KKR. might of think I the in

touched you X things. And on

high-yield direct of And a as market for leveraged think lot framework new up. look the first, there feels to in market. well. issuance as are and think it relates deals, good now continue share going has the lower dollars really private our of helpful that of end a -- to we CLO actually related, as it And think the loan, work use to been markets refinancing advantages as a we We relates terms up And but that think seeing overall less having to pie, really activity to M&A. But and our dynamic it's businesses. activity, one lots that that's that in mid-market I it's like at to are firm. that lot more lead new to of for people credit be picking in. a is lending it relates still private of all been can market going if in I the bigger of credit, are so in we that

ABF a and dynamics is point to talking The important that about. it really you're relates really, on one, the

to back our divest us. expand. in set, portfolios, banks noncore lending actually And from just is many and this types continue as announcements pull think, loan of opportunity recent to going you've So seen think I from we

I Investor nice -- actually I So receivable on our you this. Day. financing X hoping could an little trinkets our we e-mail And were for you sent at lead next ago, an accounts me barbecue announced that to as know remember business. weeks

August portfolio RV with In of the auto on Goldman announced billion regional part loans. sale prime announced BMO a of a handful portfolio December, we of GreenSky the loans we from which focused Southeast. that acquisition a a we In bank and October, platform September, the consortium. to of of were announced buyers of a And the partnership in in $X of

finance of didn't X to tailwind see to see it's lots So that like opportunities you're growth I ours in opportunities we a and you and firms a the in about that asset-based ahead. seeing way important think ago, we years think really participate as

large Glenn, about Yes. thing would a a and we see market, written market. the is important so, The only direct rightly I it's lot add, lending become very

have a a credits Craig had down. of smaller amount of think M&A volumes been larger right. I is volume. Private share

volume for roughly pick so the allocation kind as And on whereas my business, XX it expectation is direct that this plenty credit. come Like still I view, and market investors is well sub-allocation were is class market way ABF market the dialogue on lending $X.X little don't up, private in. But most probably to is asset yet, think years the bit. M&A having And investors and there'll private more or to understood becoming $X back, ABS more the our banks for to probably institutional understand credit an for ago, start its $X trillion, you'll create the be trillion. participate trillion, a direct lending is asset-based of XX, see We're on a concepts to an to investors. finance, infrastructure seeing closer new

as a we're seeing ahead well. It's And think and there's synergistic what that I insurers with Atlantic, for interest from Global significant third-party at obviously of we're growth do incredibly building business. amount

platforms April the or to continue so finance XX Investor so origination on guess far, together to go I that asset-based for Day, topic. and when expect go number I'd we're have up. that in deeper we'll We around would

with line from Katz Our next Cowen. question the TD is of Bill

Okay.

for ROE just platform over adjusting sort gain mean insurance flipping thinking sort, in just the should platform I be we of Xof solar the about maybe for to how So the quarter. given in and the there one, of interest XXX% if degradation lower, the offset go business growth and of have any you rates the kind parts, now enough two, platform; to and to in X is spreads? net were the

questions. great all you. Thank Bill,

big Management it's Atlantic job, the performance why team a of QX XXX% great from we're at look XXXX, and a look Global we very reason has to business. a business. own as and thing, the strong we excited First done at

basis well that You variable about at are have through in right a QX. we're in the and the P&L our that basis, some million about making that on of job did exposed benefit about gross At got much adjustment, of QX, the the rising to floating We did as so income on XXXX, year of rates rate. the investment as book XX% beginning good some XX%. a Team net of $XX 'XX. year, ended at a tailwinds, through

about rates so we of that. going And as think interest down in XXXX, we're conscious

In our QX, specifically, a made too, we comp. adjustment modest to

QX, had little [indiscernible] a effectively of So and bit through over course the QX QX.

things all as relates how positively all to the for impacted XXXX. we that front and So plan mind quarter things of it

QX, look that levers environment replicable perform. as not to term. as But to a able So our have even expectation is reducing at to you many to is the in be GA grow so necessarily near said, that in continue going franchise we GA the we rate

years. the a could are beat over rates we a pressure XX% XX% right into by healthy targets, lower that that the on P&L. ROE to continue interest an ROE. and the model little that the be job going environment at has beat a The to level done and couple of think to being bit margin nice able to that to relates past here it of pretax [indiscernible] we As put team But

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

I'm into were trying a as November business. XXXX. this did just markets December bit then carried into off to throughout trend curious, Markets sense Capital how point for I'm I'm year? the better months to and capital has quarter? activity And momentum question of get markets levels and activity year-end fourth just broader new just rallied a on start assuming quite the So the a jumping the

that for all quarter Capital Great. QX. some in you really great a question. business been fees benefit in did Thanks of really bit performance at deferrals, from up Markets could have of the XXXX, we're of QX Obviously, the look maybe that Yes. with QX if for and ended pleased specifically, our

as look right, that and debt $XXX those capital if And markets and to really, more both I in on at capital shut. years. able XXXX in well. You're up largely much of business, December, both of was still on million point business equity as of picked years, definitely our the through average, the you markets, those markets November close helped of think markets to important our generate, capital annual revenue XXXX, were But

proud durability we're model, of the the So of the business resilience model. of quite business the

So markets million it very environments, revenue. that a outsized really Markets generate out, in XXXX, can that very It Capital wasn't generating markets long also got we've back. long outcomes healthy a a was ago business business healthy you business million in as $XXX our And roughly year. point that the capital when $XXX markets come our wasn't ago, where generated market of

back across feels XXXX. way, market the healthy. get to in upward levels we the IPO of deployments. is where It's trend markets, anywhere continuing muted the market finance better, to space. CLO secondary still despite Now an to Leverage Capital healthy strong continue QX, were they to we're relatively those not close Markets not markets, in back but but

going pipelines we're XXXX, into we as about constructive. think quite Now

give the going we're XXXX. read. constructive to our into expecting it a the year the early clients, still the pipeline as you to firm having third-party in relates our very engagement with a QX, we're quarter we're As from just But across deployment,

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

can on years, color that recent capital and to the provided you into potential the seeing ABF Going improvement markets origination XXXX. outlined you the can growth lot rate And if then presentation, opportunity. fee of touch what ABF, Recently there. potentially credit the for you back in a in for a mean

start Finian, there. it's don't Craig, why I

if so average look annual if that billion. you in asset averaged was that billion presentation $XX $X acquisition, that you we've a noted we before So the acquisition, XXXX XXXX, year. And GA origination in look post to

direct expand Now to as the positioned that that that that ABF, how is -- we activity in opportunity more to in be ABF is in we the we relates both lending, as have, the we growth insurance one it for that standpoint, not we're from that nature. includes that's capital cetera. have think et includes And mortgage here, look have we loans, think just I addition an also from in that's to able relationships opportunistic going so

So to I we've that grow we're on and within expand, credit business as one, could and for us the be engine is positive outlook think again, very a broadly. real that growth continued

add, would I thing the KCM only is The that ask to right you're Yes. about opportunity. Fin,

with strategy, the opportunities from including across we a which all we fund wealth As did part positive our rest meaningful firm in about the we spoke new of do that of reminder, value particular, the talked end markets product, about the private an that, global us. Ivy, And as list, standpoint, can of we be for we different at distribution, think and the GA, when had opportunity. November, more Asia. that then capital investing quite is creating unlock And third-party to talk

So think to time, asset-based XX% really of across keep get gotten we've hundreds significant in can a had finance we of the that structured We'll that opportunity, do after the effect, is it, more get big we with credit, on KCM. that. little going to that leg take of third be if was ownership structured we dollars call to time. already things more for over haven't platform. And posted We We ABF growth all next but right. millions that model think from a in think bit when finance, It's using built the of you it yet. parties, as, could but KCM, this across challenged it it,

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

FRE than margin Questions much came better on consensus. The margin. in

so, a is secondly, much operating positive you that expect better continues capital of firstly, we XXXX, mostly leverage this results? And So if into similar if function impact markets incremental as item line suggest, a should recovers? that the as

management, also growth, then a combination a quarter of strong us quarter markets quite well. XXs Patrick, for some could perspective, margin we like the that we've time, FRE feel that model for beat margin clearly and operating is got [indiscernible] the in operate in a from business FRE capital the some and an we've guided low leverage expense healthy things: few fee as very

margin at move model pool the think our if we're announced that mid-XX% employing. into and And XXXX, with right reducing us are the scale here. that years. for load be before, able last to well that's we're a at to is we've call revenue, expense that going ATR sustainably our we're forward, we're business think said code growth, level the be I over I we our going is, a in FRE to zip growth, able shift execute drive things in able firm. And the on trying already cap started revenue expectation to As don't growth level we're next compensation or revenue fee fee-related the in form going mid-XX% as several We're compensation going our a and call to I of against already given that, this how excess to operate to

to out, really be So type can. environment, I do we that market think time, up a in, execute to management we to, able as able should with assuming potential margin a absent at mid-XX% think team able the FRE over we be quarter we're drive of like to quarter draconian operate that

line Steven from question with Chubak of the Wolfe is Next Research.

Fund, the you of capacity given simply So me significant the are the to across? amount versus X-parter these still on niche inform outlook. market to that sector your through? specific closings and Impact too work Does third go the step-ups confidence read Meaningful upcoming any deployment encouraging. to increase flagship Or fund PE to the Global fundraising have of tech PE offer fund, momentum that expect for for funds with And [indiscernible]. when just you sort for the or next-gen certainly raise? The do the

understated relates the start. it to are investments going think, the deployment numbers platforms et made, as don't Look, I platform It's to capacity, again, I be why given Craig, cetera. we've or

as one, relates actually are So I the is, at it see 'XX to 'XX. as our to as pipelines which across and deployment, we to think it particular in in don't look think expect dynamic I industry deployment relates the increase building

as yield to seen that, And in And markets up. the markets. improve High We've as capital think nice a first tone, your fees I in we've broad in up. the I I think think terms seen look, a in say to We've relates least. starting addition of increase public LSD's mid-October, are increase all point. and it seen the question since to overall markets.

we've to it given more long, see I over that private backdrop business of on we as we like we'll records, And feel like and balance, us, the about clients that given think month equity track to we that anything, of opportunities are very it and see But strategy. continue performance think so in in I here. front-footed. And relates draw out Americas fundraising X for the to period a like tone, if play long tough think how our fundraising that had, feels for activity, particular, I it's again, upon conclusions good things broad embark a from from time, as

think nearly mentioned your a good our we've the about it's Steven, re-upping I are don't seen years the capital to funds don't at to does Also, Much were that say a that dialogue raised programs even inform perspective. To think, be understand from robust. Scott. it's where time of are were markets it very strong as question across, I investors out. out of color read you that these broader mature going stretch we're And seen to and what period the vintage more the the is, performance. want they've where having miss there is funds

financial regret. are crisis, had past, pulled the there and back the then to that if back go I think institutions you some in

wealth the the sovereign think in we private investment -- based about obviously, team it's in those optimistic. very in our doing wealth been offices, channel, on performance on family companies, industry And people if of the you the work based that And some that's market. to, more the funds, programs, so think has which keeping minority has would are of terms there's about I an talked that we we're insurance talk in great the I the of expanded strong. mature how say the part But across discussions understanding on large and

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

capital and Maybe view. just maybe on the longer-term back focus markets of more to

think your flagship the if pipeline but over cycle, structural ABF also deployment it fundraising years of mentioned the powder, of then a well basis terms over term. few from you the the from opportunity long So and current more you as dry your about next in

target, about in you a and over Capital share to thinking without should maybe $X.XX be particularly think equation $X plus to even well as your put terms number of And by a So opposed the then the more robust building we I in Markets Markets that per robust in as a Capital you're of to XXXX, cost assume is we easily it of could as environment? if $X.XX? out environment driving fees on billion fair it, baseline but be that

off. Yes. I'll Rob. start Brian, it's

the So providers we world. with market big really we approach where private lot that's like a our one Markets of pools reason the largest there's of And why of in we're model our that I market and represents our think with the is really the Capital business, a to face capital, business one way and upside. credit our team

world. liquid liquid client, that which businesses it's same in across biggest expertise, markets facing can capital Our the business, that well credit credit one our they're of the is a when team

real that of perspective. a And so large firms there X match a very think can lot a benefit we we our to of coordination we not and our out that's from what business, And combined there's aspects clients. do

capital able and of some they our really compete for product can do. of number of part geography, recruit at see space. talented what and retain, I as and expanded we've talent the ability our And go like market to especially the I people big years, to over We've been past that. in story, a that's in more

have. types You we referenced upside of what

had more firm KKR to going third-party capital think of perspective deployment buoyant We course, at share today, if able as But clients. and from think I you with the does lot continue a a markets then. look product we to a back a geographically than perspective, time. both we take XXXX, to did to we're be

opportunity that, the just Scott side. And with Global to coordinate ABF that create Atlantic on can the touched opportunity the on and

specific up really growth-oriented good this XXXX, we but me, excuse in of ABF And $XXX the and course, of side environment, XXXX. that grow a that business revenue off as markets a million specific think numbers we're numbers in we so number able to we no put is it relates to be capital on to -- Those of going KCM. think

to you it's April is KCM of what think this to X way back point. and years, Brian, it's on we're together. look not your Scott. when Look, I think very representative But we'll it's in the if where go deeper it, really we be, today going about

what globalizing strategies of own the KKR more of we've So penetrating and We've the more around world. been doing across our efforts. business is been

it's time. if you on that example, very of of ABF estate large And part candidly, opportunity several part business, infrastructure perspective go real the wasn't the years, for very Capital over So big back informs the a that our now Markets a business. opportunity,

top is of larger. And that, portfolio then on our

experience and alongside, more to as for we larger need do to our do just transactions, partners exits in refinancing. speak there's goes we up the public capital bring markets our do. us markets. There's up, deployment more Because our there's opportunities. So in dry more our so And powder can to goes for

seeing to that to pretty even why baseline, opportunity, you're So is growth a I we continue into those. And on market capital to this all which see as the all anemic I the of overall, increase. that continue think speaks think future in execute of you'll

with of Next is Benjamin question the line from Budish Barclays.

But are I pretty I realization like into on to sounds the QX? It revenues just can can and you mention date. remarks, capital strong. the realization just looking you related on think anything to wanted side, the towards any of in didn't color on prepared you line your market side, check, but share wondering things share sight

little for I'd of QX, of of less release currently these end in revenue. have you months as taken And given what press go expect have some bit factor. XXXX related QX. pretty provide high around $XXX We the that the But hit still well. some couple to the from together, a timing usual, we're monetization say that But at we But regulatory around Obviously, we'll to detail in the quarter. monetizations. our gives as monetization of quarter standard required a all more don't around healthy revenue are somewhere a as approvals a coming pipeline certain million visibility, monetization-related into is very we that is

Maybe this KKR. just of a carry, in why strategic is us across operating the smaller of introduce it out calling be metric moving our announcements also our this given total thing earnings. think part is on including fees It's growth at down and up number part comp the to topic than of that and of see business while much in the new used we're made November, on businesses reason a on one our monetization, worth QX, other we that the I you'll

is north of XX% to of Our come going earnings. is expectation going total forward from our earnings operating

just So be monetization-related as lot big of part a it's of relative on it than firm, is basis to where a revenue a a going smaller going course, be. used to we're

is of the line with KBW. question from Brown Next Mike

ask infrastructure. on to Great. I wanted just

this where the touch drivers forward, dollars class evolve? Asia side, And shifting the maybe kind from? expect on are just just then investor opportunities. demand you expand there to of deployment some If asset specifically X% there of performance in the grow, allocations we on as look the And do strategy strong making kind in could key the Can how so what's of attractive behind And maybe LPs? So of that to some the quarter. you you quarter? then if on the for performance

Mike for just as relates don't begin wonderful I the -- infrastructure right, because, Why Why don't of seen to you're I framework thanks the we've it growth. question. begin overall platform first, the

ago, years And at we X XX/XX, was billion. back at about were look we $XX if So AUM billion. $XX

So wealth it last also the And expect is And all as our organic. strategy that launched we've continue also us we're as for to fundraising. a again, to through scale. front-burner $XX from we've climate fundraising products -- that to relates for build We're topic billion, we billion in also we a midway year infrastructure have that, $XX strategy. to gone

a lot the which really attractive exciting. more us and do, think to But been lot of has I a So is growth momentum. for

seeing on relates it a see that statistics for why touch moment, there there. across you're don't what the the I seeing is growth think to well Asia, reflects interesting the I I as as diversification to think platform. the as Because again -- you're and it's

we over were weekend, 'XX, at of had AUM 'XX, the the at in at $XX $XX at billion. end we up we stats looking of billion end $XX about XXXX, of the billion. we're of the So At Asia. these to end are And

of And so XX% that billion $XX at $XX again, billion of if you XX% equity. kind of and private of XXXX, step had back the was at 'XX, of we AUM, end end that we're almost the equity. in is of At private in

particular, you've proud meaningful well as the we across as just all us the is And for region in growth of meaningful footprint. So something flagships the as to obviously, love those seen team it it's you've and seeking and think I to I because strong, that diversification investment think relates returns really seen target X% broad performance, low-teens targets. II, in with funds Across annualized the I a that yield. performance Infra exceeds mature results. our consistent net X% with see, mid-teens we're gross to

In Infra nicely. but IV, both in are their III value very tracking creation and earlier

ahead in of actually fund is fund at I, II and recent that you first investment. made we when returns when most our III the think look I that to relative

approaches thematic data disciplined a the think renewables, We bear. talk examples markets as we fiber large where differentiated wonderfully about growing I bring the we infrastructure, of team can been relates has critical to networks, resources it to So think we've made. investments great all centers, lot digital

lot of the at opportunity but again, us a same a time. ahead for progress of So lot

it's Mike, Scott.

of in performance the expectations. as thoughtfully, expected, of Craig portfolio was nothing terms quarter, that very we assembled your think incredibly about specifically. The it is has There's nicely. question been broad-based. and I use And mentioned, as in performing to Just ahead

other a to part, several In hasn't from, seen terms to to creating accommodate infrastructure able people been of allocation of the it's It infrastructure alternatives years. most extent, an allocations allocation. alternative shifting it's we've really seen be of your to we've where where question some out demand last parts over I for about mean, shift the investor to increase,

contractual have see hedge. and I inflation the it's you've so lot viewed real critical, a is into more do focused on you've And people that as a on protected, think the I is got an yield is And think And attractive investors fact have have it. dollars space, work it we the inflation is yield. asset it of the mission and way to has an done that to as also to more have started flow that

an but So comments are been largely largely to opposed universal, of it's as speaking, these and and an or. speaking, none

Asia on of has think business mean to from I Craig start it. standing X gone billion Asia, $XX And I hit AUM Infra a our in years.

the team great ground. each have you We across They're firm as as a And our helps X everybody presence one firm, our other. know, Pan-Asia the run so leveraging we on offices.

develop walked built. Craig in really There's across I that us have margin, less a you fewer because that rapidly significant the amount Asia, scale built Asia market. there's think to that's we've of required through. allowed firms in themes infrastructure platform to very all And candidly, on competition capital those in that just the

I competitors, well So large think firm integrated. opportunity, fewer

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

could and Maybe to active opportunity guys you this of meaningful blocks, volumes. some ask Maybe sort have expand annually around about to the on could how I come be might the to And that able platforms, from to origination there. with. the also you point. might origination, more about about talk at was what opportunities have hoping the do impact new rates expect to were down, insurance pipelines organic you been for some which that wanted customer speak interest insurance. of how if much demand quite of Just talk getting be you to

done, Thanks tells for right, rates, that you're I production. industry, the the the our few step-up higher question, but think, years, don't average, full is across don't $XX Mike. So seen I around of billion think individual a business given, on last Why And story. the over start? you've I

how a as I in there's And think the that of lot continue I suggested. we individual Atlantic about a somewhat Global share we're you is to getting to where products. markets, think think seeing and take we're platforms, specifically towards there, are. what on we trend retirement situated agnostic probably new interest ramped as real rates some up It's

the product. opportunity, business Global Atlantic institutional we've market, where of Then our time that been that the there's block business not to $XX production active longer first It's and had the X- could have We really the Clearly, the year XX-year can think And on over of Manulife more the to couple half have in of side gains quarters. domestically there. of of hasn't expectation production. historically, the in some last fixed and billion individual as we MetLife billion the market with strong just QX, the of we closing success internationally. pipeline both in there's lot components a it. over business, X closing a block especially do of Also an $XX to billion take annuity from share $XX we duration of

aspects marketplace. other flow resonate we date, the that really both institutional to and couple that's think And business a our reinsurance there's our about. in pension of where But We've in become team the leader international. in that in really little of well. we're we Again, share domestic a excited will market transfer the capabilities risk of very market, market have as real

large what an opportunity market. for growing end and to us So a in take is it's share

confidence when working years. over to able as we really call, Global be the what in it's growth you of next gives would the take the firm several our it that one so November us heard platform And have together, to accelerate the Atlantic

access in also Now I an capital. important referenced and remarks, to ability our able part to our of prepared that to be growth, relates third-party

and as We've big organization. an part a is lot of got there. momentum Ivy And so where our we're a going funds of strategies

the deals in the I now, think And closed looks earlier, funded in right really third capital forward. of got Manulife mentioned for especially As the side our investors. be of going balance XX% MetLife outside optimal X capital to structure that institutional sheet going block the by what GA just and required of one that combination that third-party the we've like, business and we is is flight investors by parties,

follow-up the of of a TD from Katz is question next line The Bill Cowen.

to just dividend your look are to Rob, sort of of payout more nature, that's you recurring to you ratio start your power, to by How for dramatically doing strategically? and circle past, just I November going stock return? be presume. think to maybe return been single-digit appreciate capital and out point But $X.XX relatively versus capital about about is do more raised negligible. going know then if big pretty the the the type of the discussion cap there I going back is more more think and yield But of and sort how It's update. thinking about a of the business earnings man's a drop I sort I recent from priorities here issue, just was deployment on a at management hikes rich Certainly want be X%. moment. we of to your dividend to in then dividend point, that is and math low

Bill. Sure. Thanks,

about to think, importance. dividend then So policy capital which approach why equal is just, our I don't allocation, of the I and importantly, overall start more on talk

dividend. and So going growth the on dividend X believe that we increased years Corp our And a got We to our fixed policy dividend converted we annually have And of to we ago. started a policy, C year, we've consistent stable forward $X.XX with dividend. to we a visibility really lot. every have like when

dividend our policy. like we so And

to think X growth. growth-oriented policy to you've share. Now optimize And in strategic anything private a the core we policy is share there's strategic approach capital allocation to very going are a our business. flow for free important capital able M&A And talked and recurring so dividend invest equity, about and come being because big those from why of the more our cash from us don't time for areas is excess consistent. heard we into some opportunity areas, And that see earnings we And per in into I to back business be reason consistent And policy allocation much we've buybacks. core than have our deployment back our about for talk have way. KKR's insurance,

of the over per long for got into growth-oriented time period the think business have be able feel and a because to invest back so model recurring we And to access have, going at the distribution, we opportunity we capital brand ROE earnings and drive of our levels have, that I the really business to fortunate that we are very share we've high investors. our of that to

So that's our focus. capital our feel allocation. We good to approach about really

own think for core highly drive period management of percent XX-plus the aligned decision a amount a team, very of the management our that's of I to that long of the it's what's much think a highest of competency team going ultimate course, since stock. accretion real time. it's And of and shareholder KKR

over We've reached the question-and-answer the our end for And session. turn remarks. of I'll call to Craig closing Larson

with we earnings we're the Investor you, November, all that amount horizon our on XX, of today thank April KKR. spend in know And a asking to for things help. and late Day everyone joining healthy call. your made We everyone, for that with time announcements this on on thanks Rob,

thank everybody the out reach want XX. forward in on call, for Thank following much. Just And the any this deep to investing time. so Look to us you dive please, again April to of if have course, questions particular directly. you

This concludes today's conference.

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