KKR & Co. (KKR) 1 May 242024 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to KKR's First Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to hand the call over to Craig Larson, Partner and Head of Investor Relations for KKR. Thank you.

begin. may You

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

those of joined us. Investor know or encourage section There And transcripts We replay a to the with newer the materials. wealth of were Investor our of a and across of Thank X for day is would weeks unable XXXX you Day just those Day we or you you of for the Investor of to course, are presentation that webcast all participate ago. the who watch on website. are review Relations many our you spending of to us information, KKR, for

financial Of note, getting interest on January reflects we previously with quarter, in closed X, reporting this Atlantic a changes. the own the reminder, of starting particular on before and segment Global our XXX% And GA. the to now we remaining themselves, numbers as and first, announced financial metric

Second, Strategic we're reporting segment, a Holdings. new now

metric, Strategic financial earnings, earnings insurance fee-related plus operating a consists operating Holdings segment we've introduced and which of new earnings. total Third,

at we has financial is performance to our earnings model earnings our represents stable portion our reflects of how measure and operating a profile as Total it evolved. recurring look and business evaluate how the more and our

earnings pretax our XX% compensation model more financials we of expectation in that our and deliver over our to clients. alignment for FRE drive reflect of operating And reminder, total Our between our detail, is even and the financials time. additional should QX more our shareholders revised March. ratios, late finally, approximate as which posted earnings And outcomes a compensation

earnings were 'XX. at quarter. up So came now turning tax, share, headline $X.XX per is earnings QX after up net quarter that's to that's financial income year-over-year. and Fee-related was $X.XX, Total share for operating $X.XX, in XX% per and which QX per to compared in the adjusted our the metrics. share XX% And

in up from our were quarter. monitoring were of little transaction sequentially generated which from a and were fees in financials Net Looking million. X% further Capital Management at fees QX That's Markets million, business. $XXX detail. $XXX last million our $XXX

at Our ratio our is fee-related which of was range. target right the compensation midpoint XX.X%,

$XXX were operating Other expenses million.

But we balance our alongside You're across over an This expense item fundraising year, this QX operations X% modestly XXXX. driven investments expect continued down to management. a KKR, is seeing increase the compared placement on of pipeline. line the fees, focus by increase to given in in number continued of active

in strong driven and FRE XX%. at mentioned as million for earnings QX our per or margin expense total in came basis 'XX, well XXX change in That the the up $XXX were by to as I quarter. quarter, that's the And a moment our points fee-related compared figure is margin ago. compensation both in So $X.XX management the the framework share

things are There million. to $XXX were earnings point here. operating really Insurance X out

with largely reflect respectively. this yields due QX MetLife the GA, Manulife that's assets and in liquid 'XX in and recent and 'XX, and transactions QX more quarter at closing blocks sizable cash elevated portfolio to First, X

come the portfolios. of cost but it delay at balance or that And GA course, is these to that built the does our close, target those take ramp assets sheet liabilities on redeploy and to each of expected, into our of pricing those So deals. is into full for some time

attractive And attractive secondly, as we're risk-adjusted are core in opportunities. plus like origination seeing GA and investment asset opportunities estate return with capabilities our infrastructure, classes real presenting

However, with ROEs, near-term to modest. more yields attractive while long-term come opportunities these tend be

long-duration of an to a Strategic portfolio, earnings of equity segment, is consists period Remember, XX years. release. strategy which And XX-plus segment direct core Holdings. In moving hold our interest with to expected today private the the our XX investment our new Page in of

that XX growing durable, earnings. well profiles defensive diversified businesses alongside generally have financial So are and

dividend looking the stability of at operating given time. businesses, million. maturing $X.X payers EBITDA these revenues billion, $XXX-some-odd approximately investments these more share as portfolio XXXX be were of the over the And of with KKR's we as regular of And well to anticipate performance,

million, quarter $XX by in driven earnings operating were activity. So the dividend

expect stated we we modest be As in Strategic operating earnings Holdings' to XXXX. more previously,

way However, by with pretty in $XXX-plus change looking and $X-plus XXXX billion significant expect operating by that earnings million 'XX, we XXXX, of beyond a by will XXXX. $XXX-plus million

the visibility and here Our looking differentiated are across see we our highly opportunities space.

share. operating that per of together, were So putting total earnings all $X.XX

realized driven income income was strategic portfolio. primarily equity was Realized was by Moving sales, the performance from and $XXX investment to $XXX realized million. core million carry exits,and secondary private This investing earnings.

$X.XX So share. million altogether, or net $XXX adjusted totaled per income

performance. Turning to investment

XX composite and and and plus months. the up was up XX% quarter was performance estate the LTM. equity portfolio in delevered X% Opportunistic XX as trailing X% In up the composite X% over was the over up X% this quarter was is last You XX credit alternative in up respectively. The well the X%. XX up can in in Page and the the plus in was portfolio of as X% see private The earnings at quarter in infrastructure months. XX% And release. up last up on credit QX, months, XX%, was real XX% the

of on gross with balance $X.X to at as interest finally, in from 'XX. or and fifth our And beginning now That's annualized $X.XXX practice share this year the period QX. structure, increasing we've performance share we billion increased and to historical annualized end quarter, corporate consecutive time. changed increased carry from XX% quarter, This increased dividend XXXX basis $X.XX per over is given dividend $X.XX X/XX. we last we of to our an with consistent QX of per up dividend announced share the per unrealized from QX, XX% And our our over our $X.XX per since

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

morning morning, and you that I of Investor our time the this few going key some lot, Thanks would many start back. our metrics. weeks a with Craig, and joining for thank all I you operating of at through spent our us for a by this thought call Day

quarter over During $XX months. of this the quarter, we last In That's capital. $XX just billion the we attractive raised XX each outcomes almost billion across had alone, of businesses. our

a and And raise with businesses from has billion upcoming any capital strategies. credit that's of closes Our finance capital together strategies. and leveraged credit lending, our across new totaling $X really coming raised of number private before And momentum flagship the most capital our direct $XX equity asset-based assets with our billion, of raises. in continued, real meaningful from

April our and in infrastructure. year-to-date And specifically X, we private primarily looking raised at Series almost vehicles, more K equity through $X billion

BDC to a some are private launched We as well. inflows real see the here in quarter starting and also

capital in direct Turning over We finance within invested Deployment billion deployed and in half equity. to as as the from driven the largely capital lending. was primarily the $XX infrastructure of private invested. And asset-based well quarter. by estate markets came credit, quarter real across

are significant We ramp in seeing of overall platform. credit deployment, growth credit reflecting our a the

new to we are meaningfully. firm. given the pipeline deployment pick And seeing there expect we of expect the year, be Now looking a we broadly across forward activities to healthy up over QX, course to do the deployment of the

lot it to Before led of growth, a this we a couple did getting our a experienced takeaways started. of from like Day a off While Investor wrapping we message: Day morning, up and few want Scott back. the key just have Joe feels very I our summarizing weeks Investor with minutes are simple spend

In terms the of the takeaways from day. key

medium-term provided First, guidance. we

capital Over our strategies, flagships. XX be to the expect over next we raising XX a of XX number to including months, for

raise capital to XXXX course through XXXX. the billion expect of over We $XXX-plus of

our approximately XX%, financial of XXXX, a we of per operating In share $X-plus income, of metrics, terms XX%. by $X.XX-plus of expect per CAGR roughly Implying FRE. share per net of earnings implying of to CAGR total $X share a adjusted $X and

feel we confident longer-term ahead, quite trajectory. Second, our in looking

expect $XX-plus in less, more or with the income nature. of be XX% earnings We per next in these recurring XX share to approximately years of adjusted net

areas: key M&A We Over across cash core $XX-plus the buyback, billion expect share will get equity, anticipate of next generation. and X this deployed X we years, cash private insurance. that strategic also

across track record recurring growth-oriented each all deployment. capital gives strong of confidence also avenues of able earnings that to opportunities case, really model deploy high Our ROE share. being generate per of these us and a we against the have In

And themes, highlight we diversified to made our and our number sure model. business three, at looking key purpose-built

market And holdings. years. Atlantic over In X all Strategic in lot is -- of have conviction win. of Asset And to paths strategic have next that of an strong surpass we growth unconstrained a and and right trillion could which Management Global generate have opportunity Management, Holdings, working confidence we for insurance, where us a have synergistically double our plus we In X really multiple AUM Insurance we the to sustainable significant each here. to we plus outcomes. together from finally, engines. real Asset $X P&L

expect XXXX. We annual by earnings $X of to have billion-plus operating

leaders to achieve that very do compounding in while outline targets XX, front to you both us time. business is opportunity accelerates we we drive and anything Our and XX of believe heard built ambitions. strategic period massive April earnings a our build to we culture, facilitates as have And new. from one, our achieve our a without have ability is the of model can of And our on over long would team business a over having that

together this team KKR. and combine our you So what model, our with when is our differentiates distinctly culture, business

any happy and take And with I that, to Scott, Craig questions. are

[Operator comes with Siegenthaler first question America. Craig Bank of Instructions] from Our

Our strength. are private Rob's ABF, in there's commentary. we your I direct healthy wanted lending visibility seeing watching a But more and is we specifically equity in question build as equity, investing lot deployment think pipelines. you're on deployment after in But some where focus on private to

and loan biggest probably I recent wasn't the that markets are online, now is back XX-year probably the in CLO but And rise transaction. think the CVT upcoming the markets syndicated helpful.

So provide in activity your the expected comments some coming us business levels over quarters? can private just investment on you the equity

I'm also. Craig. thoughts couple don't question. for Craig, of Why sure it's I Thanks Scott start? the have a will

beginning for the thanks way you that and -- First in did.

is that quarter a look I think in got modest representative March remarks, the activity. noted prepared as healthy if dynamic, anything, our our announced billion this we of Rob really just activity pretty We've a amount XX it And deployment of days a the backlog saw ended not in $X.X where XX. closed of as transactions. you was at

with deploying probably think talked themes where I we terms Day. some of we've at start of capital, Investor the in could been about we

So opportunity region as for we talked about years KKR for expect about meaningful Asia a drive to we We talked that Japan, come. specifically. to

In it's again, out interesting REIT the of the it they was Private that, when was as business in acquisition of business, Japan. our Japanese on. at touched our think of on logistics we Real that had you had deployment this largest I Equity warehouses quarter we XX-some-odd closed Assets look out instance,

think and focus as private the our corporate some needle. have equity, opportunities, look the in I of where really love we carve-outs operational and those we can move also activity you resources at

transactions, equity. well as X that's larger one of Those the in in again, our corporate U.S. as Europe pending traditional private are, carve-out investments, So both one our

it the again, of Day then in expertise area the broad where just we is infrastructure. to about we global an at And And talked I point in deep that's think highlight just footprint. bring other deployment, Investor terms

behind success Our second some that U.K.-listed will historically. and theme was invested have of to that a sure metering remember largest investment in smart you business. a had I'm take being of pride the quarter we've

here but activity, closed continues activity yet and themes And pipeline well digital, the again, be to is at as with of we again, not beyond announced global, et look renewables, our cetera. particularly U.S. and active And

Italy, based think et some Germany, include I have of those investments pending Portugal, we in -- companies cetera. the

healthy So continuing find deploy very a to opportunities again, pipeline, takeaway main capital. and I is to we're think

we is market do only The add, Craig, Yes. thing M&A I'd is back. the think coming

your point, the think I up markets in credit leverage to opened January.

lot a to pipeline, that QX backward closed this significantly. private takes starting equity is some given our are all businesses, which today. We for actually activity. I'd There's time Cotiviti in close. particular, comments. say, The see to announced these to impact deals in of of it up looking is mentioned you obviously we Craig's But What deal

to announced get So more that announced the more and I see turns as of deals to into closed, turns see pipeline you're and deployment. pipeline going real deal this going think deals you're into get real

you're and to assets also going on market the you're IPO open, refinancing see see If us as well, the are picking up selling is monetization think public. taking assets and I going side. this companies more the to M&A more more markets

private So see to I activity think going equity. you're overall across more

question with Goldman Sachs. Blostein next is from Our Alex

mentioned next at you billion on that guess how I you new within Day consistent years. really if of different. I growth They're laid wanted companies Holdings of when of existing capital buckets allocated you capital there, your in as to to to to incremental much of wondering deploy are of that over and that those part I specifically flow some expect you'll the be to go comment that, how Rob, the Investor to out cash sort is you several to know you of not mix could of buckets the back the $XX the portfolio kind versus Strategic driven think And earlier. But fairly which with allocation about targets sort historically. X I you and priorities was mentioned likely you and investments? speaking generate that X

Alex. question, Great. And the for lot a thanks

earnings I outlined have objective, And to So high our and recurring generate this, to only us. our overriding most consistent to of opportunity Investor use you and leveraging had ROEs. to course think we've a cash framework the really and some $XX-plus free billion the our mention capital important so really just excess years, next to the X time think by a and it to I allocation Day, a relates consistent growth-oriented the thing framework, do drive that's share platform the thing at is durable and we with that's at cash huge as is, changed and for one did over generation flow per for opportunity of it's really

and period In it's really able across a strategic the deployment, design. terms that capital core we the we equity, areas that don't drive return amount focus have nimbly of and time. highest X allocate base M&A, percentage per private of the fixed That's main being share bucketing that really to buybacks the highest by opportunities think earnings And share insurance and to good of of over a about we're at. our long

to for make in. something to see path that's do of relates be confident as in it because it. holdings a allocate again, that of fixed think thinking returning about I and ROE-friendly number allows go how But that think highest we're strategic after time opportunities capital. Strategic to the plus I if outlined able real come Strategic operating we on drive Holdings question friendly I opportunity we're that us most we that the it from. that's north by over think a billion investments share where As percentage $X and we us Holdings, per exist. on thing, earnings XXXX. It's your earnings there's good We've to visibility got frankly, in to to And going to

Bill question Our Cowen. with comes next TD from Katz

your you're gross generally this north sales, run your of you Obviously, rate billion a number. noticeable ] step-up in $XXX if number, And already speaking. just [

really the momentum the change, the where in a you with few in the particularly of weeks if that. I'll maybe But And credit opportunity sequential it sort just insurance portfolio, argument. good that was you're leave and tie speak could in not I So seeing to wondering change there.

Craig, start. it's Bill, why don't I

think couple of So here. a there I things are

private credit to First probably that feel very worth highlighting good. investor in interest continues as

through where a lending base opportunistic. And So there's weeks ABF macro piece have of positive deal, if a handful in I far, in Sheldon, active paper. new still you number direct investment-grade XX%-plus given in again, And ABF addition at both -- of in spreads tailwinds, ABF, that's as Chris walked certainly. direct in of part, a in in lending, X think months just that to come are we're within ago. really a But rates so look

billion And so These we XX for $XX AUM. big XX%. us. private March credit was for businesses ago, year of KKR at are were at A

So in a XX% increase year-over-year.

It's to part, perpetual private think traditional SMAs, the of our of different in great Because which It's is ties your in It's is evergreen the question, It's that's outside I So in U.S. ways multiple the it's across see. a fundraising second And And first part. funds, and which And wealth. forms then forms seeing right, you're we for activities. number us. other institutional. the capital. capital, growth broad, vehicles, U.S. are it's it's insurance. fundraising and of into

really And U.S. both raised activity I Opportunistic of seeing this we evergreen you're Europe. lending, raised. think our in Direct the capital that and quarter. finance, activity asset-based in breadth capital what is

Asia the strategy. this our And franchise. we're where we Again, BDC Series opportunity how and constructive private of just suite launched given private we credit, is our K capital. area of another Asia products, we're the in strength on our positioned raised

from of think almost think upside as you are I that here. where could So we

healthy it So amount the does like a across feel of it's momentum, broad-based we have and firm.

at well the in definitely particular. allowing credit show AUM that third-party to addition the thing between Day also mentioned only parties, The add it's that seeing business to same numbers And is organic well. relationship Scott. symbiotic in us the as third the ran as We're from the Craig up it's and we our insurance Investor in Atlantic fundraising I'd in our Bill, time. through Global

does it feed has historically. credit, and it So

last that this, And side. are of when the Global GA we're see core we that and Craig over like mentioned to opportunities you're and across though, that estate we going mentioned more What going to do the going classes that after we to announced especially time Atlantic, we real is just on November starting also I now. XXX% think infrastructure, saw, getting see we're ownership one that's as to of asset

think credit, only some well. up the it but asset as lines show in you'll real I in see So of not

Brian Our is McKenna from with question Citizens next JMP.

private X-parter a just equity. on here core So

picture, at remainder is LPs specifically in growth quarterly if interest good quarter then to here So in first, are dividends is should I'm as in the And years. curious we that? of off the coming the $XX some picking Or mature strategy, million bigger the dividends expect net from the continues set this a up increase all for baseline the year? first notably around to while portfolio also of

start Rob. it's earnings, to Holdings off. Strategic operating I'll pretty the a year. level model million minus for of Brian, $XX Plus the remainder good or

XXXX, move little think we right. and bit a forward $XXX-plus I bit plus or closer Might see by As in more but $XX million to minus line million item that XXXX, little you'll stability get quarter-to-quarter. around is a in bump

and really reach, think it's culture. gap, certainly geographic it listen, clients excited our on over strategy, industry think built best-in-class partner private time. our investment our we core that private because teams, we've our equity built something with equity are We've globally the our largest good be And to relates by a as We we our I core continuing to today collaborative about franchise, margin. manager of a

Yes.

haven't next about be out America's equity. PE core in equity. investors private dry be The the marketing we the manage I that been to the pools going actively side today. on with question, We've we'll second private plenty our think talking is thing of got we to powder Brian,

as So those give we'll update an come in. conversations you

Evercore is with ISI. from Our next Glenn Schorr question

have of So a of you in lot places. growth lot a

anything but You I'll anyway. mentioned the to build no question need new, ask

is about it well a you? to if for area only just nice is area? scaled LPs the just Secondaries not being have is important plan, Or to either I'm just scaled. there time the way over and on a where you're that is or how to curious

Glenn, start. I'll Rob. it's

is a I last your us. remarks it not think It need-to-have you for hit there. on in

where businesses X And so can we a large markets, addressable be we've and conviction, got to there want are be in we player. top

Of looked we've course, time, over the at secondary space.

assume the that price transaction come Either pay our just to we partner prevailing we X could desk wasn't space,has market. top across M&A the determined right happened in be that weren't we secondary was it price to that's every that the a willing player that determined a in You here. the or

that we so perfectly enough the that that focus, the And today. we've growth in we're provides things be running already at uniquely started and than comfortable on we're With focusing aspects more we business our forward. can of think that great room for going already

from Research. is Patrick question next Autonomous Davitt with Our

within on you more a traditional more growth XQ, insurance or transfer have bit Could of then looks flows and it the channels? all And or more mix specificity risk GA give side, broadly, players. color the the little of at like pension bigger the to net gross and year PRT gone in this deals

are get focus insurers. to extent to that want [indiscernible] on for the cycling and thoughts I the issue more So your the on what opportunity regulatory

Yes, the question, for sure. Patrick. Thanks

that did long-term side, pension assembled as being year, talked have really have a risk this We much but exposure, starting that in transfer the it's at flows Institutional a very of to inclusive base. Manulife. believe with opportunity then with very about say at Reinsurance quarter the side and our the 'XX able this to to did on business, about big opportunity good against as capability we well, on low and side very strong really coming sales I'd of individual some our off business or GA. XXXX. And we the of not of momentum in QX the institutional block side, look both at had the quarter, the big this share the in be team that we've us XX% We've give that's again So our really, a of a into take. QX medium for transaction given from of Again, platform. GA again take of opportunity, you if probably we continue PRT to

Fannon Jefferies. Dan Our next from is question with

I the seeing guess based block kind Could a It today? the upon follow-up little in the GA just cash on bit operating the the transactions environment business for a like in current returns reduced business. you seems returns the those talk about of quarter. you're

Sure, Rob. start. Dan, it's I'll

what north of performance, strong $XX So period to an design. That strong on higher-yielding really really and billion assets cost what cash even we've we by in day operating performance, really very point What But a is When going to one. at the the P&L muddled really stronger balance. we're of operating assets, in very And for the large business GA higher perspective we're or seeing complete the one. of you outlook from have future. QX transpired was levels X a you're XX- liabilities where QX, take much into those in happened investments. of block XX-month deals redeployment

Scott in in we're tend one opportunity that really asset into longer-term think is core that pay could And Point investments more certainly the that asset little of There those those a plus X%, really the a on a real of investments two no by bit X.X% be is a almost plus we generate. off terms to near-term capital of now. interesting core range. the We're estate in really But downside interesting to in than ROEs And earlier. core that the downsides estate is yields running leaning into out -- real create started leaning just unlevered they able and on it one, there. class. class but will attractive core seeing to returns right and touch

to term we that good where could are much hear like ROEs given how see really going the that of dilution term investing we're long you some benefits to Atlantic, attractive we the risk-adjusted ultimately long our be benefit about So in but everything returns the think would a across its shareholders, policyholders, talking seeing there. near you'd in term, us do, Global for the example near more term than in

we of ramp deals, a be we $XX is to this And Dan, is period. assume on only add, there's block worth we none surprise. of Yes. thing these mean going a when I'd I The that billion transactions. closed price

performing we as business well. that's of So the is institutional side amount of and Both proceeding of seeing a overall significant GA, significant parts amount expected. opportunity. think incredibly a the on growth individual I the we're And and

And target getting in the to our question, I the return so that far, deployed think were investment your levels. hitting of dollars the portfolio crux are

rotation will bit So take about the time it's to very a of just get good trajectory. a work. we to little feel and it of money the but this progress

Our next Ben Barclays. question comes Budish with from

following of modeling on tidbits. topic GA maybe up and some Just the

forecast longer it we and up over cost insurance. redeploy that as in as think it just those term? the commentary goes of of about takes terms book should bit It looks bit. could helpful So the we like kind Wondering quarter-over-quarter, how turns the to talk a time little But of about guess, I of pace growth some assets. little a you if of the

high-level about target of I us past, book from value to And you've kind ROE. then your similarly, a talked think about perspective, in guiding and the think growth mid-teens

the hasn't talking that growth? be you're the know other I XXX% longer-term to now Just how think the about GA, that piece insurance that about we other it since cost of accelerate or then opportunity considerations. to we but just on wondering been right side. any And owned if you've framework of about should trying given that's thinking long all

Yes. Great.

the think I So insurance, starting it. cost on really you and on hit of

have yields that have, As course, to gone side you rotation rate able the so spreads the interest of we're up, on higher generate in crediting a the of our environment, investment see the portfolio.

really business. in being exist continues spread able the generate that So to to

ultimately, little shake to continue function spreads see, for think, crediting interest an a on where our you'll I of So a out. draft would And it be upward bit. then rates

being at forecast being management ROE to is liabilities to feeling We've liabilities I in In easy able take talked able about continued I'll able term XX% investment anybodies the scale. simple, ROE put changed to Atlantic really pretax to XX% right up long Global to feel source our that about that work. our numbers, really Nothing against range. liabilities terms marketplace. globally the of our range we're to to in like and good team to think We longer-term has transparent understand, platforms be those best-in-class really are the they at source able there.

Chubak question is Wolfe Research. with Steven next Our from

So And just of greater could deployment banks European less or an you across It's see The the transfers ABF within to just just on zooming specifically partners, and banks. started to hoping U.S. U.S. speak their landscape. wanted credit the the pressures. maybe opportunity. was some historically, with deployment in risk how on have they've the active to effort much market the your capital maybe willingness of just broadly indicate see alleviate to synthetic ABF ABF where, to in an appetite the more levels some the I unfolding bank SRT than opportunity engagement been you and area

start Why I first. don't

in it we as host we like it our the knowledgeable assets, do relates in. view, very of banks. a market to a SRTs, to is across and think strategy. partner fits are our We're with It with I active well ABS

touched point then in asset is opportunity And been we're a expanding. Again, the like in affords U.S. as big together the beginning we growth to our assets fund billion macro on, That's with seeing activity of over look tailwind team. facilities, loans, has opportunity $XX point I the in which important, have It it we're you think classes. And us this at are in be ABF explore our are other platform across of think mainly see starting at AUM time. QX, strategies. both that you common EU-focused. seems this a activity SRTs little whole, opportunistic that in feel also just does and for finance more ABS round ABF we've elevated focused is a investment-grade have this in does as deployment opportunities for to total you the in quarter corporate which billion the As potential like $X.X over, It that numbers, banks note, us. pretty underlying is loans, most pace think been I more in overall a like terms I do set one, deployed that of firm a very other could activity term feel like consumer

healthy to level. So like activity continue it's feel a at does

Part so as of Direct lending the Investor of credit, think a you it well. do sizable at interesting asset-based encompasses really a Day we much private that of its scale to probably market, to is classes, well reason, it is part trillion. and be spent larger significant $X Steven, this finance in to have the is but on a and really the a asset much on is need time able interesting And this market opportunity. do business we $X number to $X trillion to trillion really way

X platforms part so talked at the platforms. by people we And our about of X,XXX working those

And we're I in to pace. they did credit seeing also going part institutional a scale few think than more much an of years attractive continue pleasingly, understand you're to investors this ago.

are we the from this Europe the spread side. center So seeing risk on trend to U.S.

capital, are to to whether that that trying just areas fact robust. the free think other interesting. find redeploy for it's And to up banks as or to I opportunity continue they into deployment be M&A that will

So we've of plenty here. opportunity got

Bedell Deutsche next Bank. question from is Our with Brian

capital to gears the switching maybe business. markets So

could on time broadly, are an business, conducive little even a the getting the confidence markets area, given back talk term, billion if I activity for M&A course, in $X bit $XXX think of rate seeing improvement to, annual performed March level growth conference, plus so better for and longer to, your asset-based in that. you markets than maybe the level you far. think the about, Maybe just more call get XQ I plus including near-term guess, had I credit leverage structural at line in And what it, the indicated XQ. and in and trajectory you're say, back in run to provided a finance and credit your million just Rob,

side, Yes. largely time, X much of Brian, and at look Markets back side, finance shut. in And for business. equity few And for ballpark Markets that XXXX, those our a tough were conditions leverage operating you $XXX Capital When Capital our thoughts. each years. really of revenue generated the million on XXXX on business the of

really we And durability proud of created. franchise we're the so the of that

XXXX, they today this pipelines than at lot I pipelines our get for today a at our are we the As time weekly, better were look year. of last updated remainder pipelines

for now on here and they business than year. Now between capital there's the in May go XXXX. indicators markets are were early the lot of of sitting execute to our the a forward definitely end May But better in

around to more the question your then And longer term.

believe And in greater we with If as I in if Atlantic. you revenue. third-party share at clients But our did than have firm, our look you XXXX. Global Markets what look KKR capital do XXXX. about in Capital scale the back we're opportunity And clearly, in had we buoyant than that in coordination did talked markets we a to XXXX, $XXX today we've we today business generated, XXXX. real doing ballpark, of with market you more helped million

So to our continue business competitors next when to be Capital Markets now. to out any that, years we're be going over truly a about what the is you unique there create all franchise optimistic we able that several combine our with relative to really right of

Yes.

since So been Brian, see quite with this business deployment time, and be that monetization, over in period revenue you is infrastructure. the equity to private in what XXXX. we've And especially tends that correlated and of

have So monetization significantly, the picked that and activity side come prior discussion our and buyers the up as if as areas, on more seeing you in back back. the fact the those around well go especially strategic to open up we're markets pipelines

bodes that think well. I

had we we a KCM at we We less less revenues activity. overall had had period of time had powder, firm million at dry plus of less $XXX where AUM,

across to that, So markets and as But sit it as monetization better open do expectation here but pretty we'll we the on dependent somewhat be than deployment our good today. it's the going back looks is up, firm.

Cyprys Stanley. Our with next from question is Michael Morgan

Just wanted on ask to ABF.

lot billion have originations, ABF billion success. $XX guys You I $XX a year. the XX Heard had of last think AUM figure, platforms,

the you originations are this the over be you existing adding talk higher. from you a How actions from more platforms resources taking around see hoping X about that how years? bigger of evolving to time? more vision next platforms you do versus more And much needle mover meaningfully you could that the -- coming over you would your are talk could maybe steps the drive guys and or think do see around Just adding to

Mike. why start, don't I So

key I points. think you hit on of a the lot

that think the where scale whole begets as has really the Global a post us dramatically business Atlantic a asset-based acquisition. I for just finance changed And is business scale. this

I all additional XX, mentioned I important the of of had our through Sheldon Scott platforms, had platforms those that And they're XX the so run look have Chris Investor real And partnering that an think and advantages we've with specifically, GA, then when clients. third-party been that part partnering global. think over at of Day. And course with you

continue scale. there's to from that Is for to those and a As today of X,XXX anything forward for as Xx is -- helping benefit flow universe people, we to grow look unique I'm Will and along our of us think continued to people I yes. Scott from that's opportunity mentioned, sure to originate source want is platform? the be think wouldn't us now? that some-odd clients that we number lines. here. you what it the to going X deal years I But drive answer look build

it important period in knowledge points, took dramatically. been client few classes, it one like other baby education asset of of a the their about in thought like have us part real And that been class is and Scott And not infrastructure a It been on again, can ABF unique there this as distinct of class asset of is time, asset around long, was that's as it's mentioned a education because ago, other many long these for the our clients, minutes really to come felt increasing our a feel steps. a some one it's but does and clients where of time portfolios. opportunity lending direct

So time like at And same that's position our up dramatically increased is at strategic that's with time. feels our curve just dramatically, that and think seeing point it the level the results. coming in improved you're knowledge one in same our what clients the that I is

Scott. it's Michael,

as think going have. -- to probably more I as we'll add we not many platforms, we're

opportunity. We sourcing the market platforms. investment these But businesses will already add resources in existing to out the remember, are

way constrained. And I so extent, it to the is we're about some constrained, not think opportunity capital

seeing. extent to just to a flow capital opposed more the And about with of we we've lot of to the more already origination here, advantage resources needing our to base set continue So taking already less can it's we existing platforms add up. scale as the do we're

on credit private do, we said, get private the now part of has a of credit work understood this become is created, done allocations space. as that getting more what as better And Craig part

allocations seen other pattern direct ABF we've classes, asset pick up. of seeing to there's this recognition. and as we're part And to so And lending across continue that

of bit picked, As people we those that allocations capital look and get of to that to a tend see to is created get quite they number the back on what the formation.

So we for like ready we're feel that.

Our Research. question with Patrick Davitt Autonomous from next is

about us that sense overall but out number? the And still closed environment not how some realization is, you're we've revenue more Could broadly, conflicting pretty messages I updated announced you really there give constructive. then got guess good visible the realization

-- players other maybe on some is from update think diverging there. -- what you why driving out we've your heard what is what's what just maybe your and your from us So confidence tone

follow-up, Patrick. for the Great. Thanks

north got to call roughly we've relates million pipeline visible as today, of So it carry, of that XX% XX% income. $XXX monetization, investment

are pipelines our noted, pretty you healthy. As

I at clear, look that in that's be not going we $XXX close all to it's if million, As QX. should certain

But got point look XX months. as that's to XX past of pipelines, over of that. better the they our Some approvals any side been are at some regulatory the as they've that monetization part we on at

what And what across of really feeling surprise. to firm. seeing we're be the market are leverage comment the can't sure could back. much just others We're on on that all saying. I'm a I come not I comment finance

in leveraged for And powder sit market. starting to activity, the system the additional which deal monetization. see creates greater dry behind finance CLO the formation fuel all to You're that is

done we'll KKR, time. And monetize months relatively we get But at feeling maybe the a had been we're least for to so XX There's lot ago to in constructive pipeline. at where this see. versus order

themselves The that it. markets Maybe there's -- of the part hearing of I have little about a know tone. fragility. angst the be bit amount could different geopolitical a marrow, of bit Yes. Patrick, we a of risk, why I'd good don't you're a say

if now. our more the sure, in is it comments see in global we're a having. This of we we something invested we seeing some. terms the it of and be we're it happened, like portfolio maybe on are then mature exogenous right feel the the environment what But that could based Our can shocks, change speculation, aspects kind maybe isn't it it. continuing than some, of more But it see But could environment. discussions

of together the that I And aspect would carry, That's of that said, portfolio the investment [ more And fact look the XX% that Patrick, we've at we've in a comments amount with that's look at creation gross add got modest to our this, really I'd to environment. those Scott unrealized number is of we've on up performance pretty both seen, been a you some only relate you of big part, seasoned. both ]. healthy pretty statistics, increase, think realization recognizing value when as the a underlying year-over-year

maturity greater be equity we of of or private portfolio. roughly as at would the look that years the X So XX%

in got to of layer performance you've alongside that. then But investment

almost of or Xx marked greater. XX% that is at So

portfolio gives through together us between somewhere seeing maturing and with I marked X.Xx that to that, flow and cost at our you And greater. performance of have we financials. strong look is again, confidence XX% and, XX% ultimately forward, But as combination investment think this

end the the turn back the for now to reached We've of would over I Larson question-and-answer comments. call session. like Craig to closing

been When we've to a a November and ago, few lot then in announcements from and you've everybody together of and QX with invested active made in KKR. Day for taking our weeks think thank in everyone. the just Investor earnings, QX would I we time mind like at very just the the of really share that we

follow Thanks KKR in And with directly as follow-on up any investment please understanding better. thanks for So your so much. questions.

This today's concludes conference.

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