KKR & Co. (KKR) 24 Oct 242024 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to KKR's Third Quarter 2024 Earnings Conference Call. [Operator Instructions] And as a reminder, this conference is being recorded. I will now hand the call over to Craig Larson, Partner and Head of Investor Relations for KKR. Craig, please go ahead.

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

begin we things. quarter, to So this we would highlight thought X

of figure of first you would per share and highest our a the over as we earnings And ANI earnings results QX. on $X.XX until up compared history, through our basis, Fee-related share the today, per of share of release, is just the we was, for ahead year. reported for the First, QX $X is time, reported to already in a eclipsed XX% KKR. strong which XX% figure we've have quarter, $X.XX a the had record last quarter FRE up last per seen quarterly for second billion

So exit impressive the delivered industry quarter is accelerating. pace a activity where growth and in of still our across

clients. has a ago. X seeing balance last quarter this signs reflecting interest be we compared from Investment increased spot just bright of unrealized of And XX% to to tangible gross you're continues as our Second, on momentum XX% metrics. across operating and performance, year performance our increased carried perform our behalf

super XXXX. And is raised the than new we And first activity also performance, across totaled months the over than fundraising double with And seeing remain our business double of all seeing model, capital investment progress we're continued operating the of strong KKR for year-to-date. wealth months financial at $XX time as our raised of we stage an investment the our X well more as heels is net first billion Holdings shareholders. fee-related dividends Strategic third, at the we this the us X XXXX. segment year-to-date QX. our the amount $XX of businesses. results more signs earnings in This cycle current per were billion, scaling same share of that together our how of Remember, deliver Total initiatives. more of early deployment On tangible our from over you're insurance earnings. as These view, differentiated are in can our reported durable and in $X.XX

in we mentioned driven at earnings quarter Strategic that year-to-date our the earnings, total are by activity business, million the that and recurring believe for finally, unique how highlighting increase our financial So we a total to the revenues differently, investment on earnings, Capital in quarter business years. a years of Strategic a in from of through We looking moment Capital will this operating reported driver model and and future with Holdings together, to more as our come. basis. And trajectory And we of XX% our third KKR of business over remember I as performance QX the pretax well Markets be results the the noteworthy also as ago. for the a and increased $XXX Markets work truly for a dividends pieces over firm operating materially Holdings net durable trailing comprised profile XX-month thinking expect coming the of

the by of million, and management quarter let through in increase representing for introduction, was year-over-year. as final transaction that since fees Markets in our Fee-related in as statement as segment with fees an QX XX% our well of year-over-year, totaled wealth driven This were $XX So record figure growth monitoring me flagship the continued of an infrastructure X% turning increase a for within success moment again, quarter the on in more fees a $XXX Climate performance detail. public XX% fund, fees the us income our fees vehicles. Total $XXX walk Ascendant quarter million. mentioned a private million as the revenues were Global and Capital Management $XXX ago, and from million. close fees in This includes company.

recall, This our onshore annual fee first its K-Series last time earned infra earned its as And quarter fee. the vehicle first incentive incentive for offshore in quarter our the was annual vehicle quarter QX. you'll

onshore up So over in billion. quarter Other a our and to at for of to continue XX% guided offshore at right with midpoint expect reminder, range, fee-related annually the as performance, compensation, came cadence were as of $XXX aggregate, the Fee-related usual, compared XXXX. this XX.X%. vehicles. In both which, operating revenues $X.X was expenses good we is our This is million. third

modestly over time. we we item line this As this noted earlier increase would year, to expect

as we fees continues to increase As placement fundraising expect an do to example, ramp.

year-over-year, XX%, for still benefited dividends million level million and came these by from these of was $XXX-plus last all context won't that expected early quarter's growth were approximately track And we 'XX. $X by million for $X.X So earnings million taking the putting XXXX, XX% or years quarter were this XX-month the are importantly, ahead across and scaled which the first to respectively. GA's is and nicely million from portfolio towards $XX FRE underlying in $XXX businesses approximately this share to assumption expect results million, QX dividends just to XXXX. to half these plus earnings revenue for the and deliver operating Insurance with primarily meaningful discussed, of in as QX. $XX were portfolio figures continue These QX minus, XX% we as on Holdings $X.XX growth as or days. net of we Strategic review. FRE discussed rate margin 'XX and EBITDA. The and of of see in we and importantly, similar $X earnings our our billion per a whole, in of the share And operating expectations. And as annual quarter. call growth FRE compare the reported remains up as an again, generated run the net at is the actuarial grow trajectory for dividends we and on revenue of the of And share linear a And be like-for-like of tracking over The continues $XXX that per by compared quarter businesses EBITDA saw in here level, our million more billion $XXX the is to ahead. nicely. together, XX XX% was earnings million in consistent $XXX-plus net

$X.XX operating earnings XX% of per quarter last share, a total ahead So record and represented quarter and earnings. in aggregate, segment XX% were of

performance and realized investing asset Moving $XXX management segment, was realized investment earnings. segment. Holdings investment had our income million, was Strategic income we Within our $XXX income of realized And million within net million. on to $XX

on So basis quarter $X.XX taxes, up were was After per $XXX of earnings after year-over-year the compensation in or and total, investing last XX% third share, million. adjusted billion income interest year. a $X.X from net expense

quarter real performance up quarter. the equity appreciated in in X% And was up continues in to composite And and on in the performance private with and in last X% the to months QX credit in Page third over the and was up Now to in up the the respectively. leverage LTM. XX% XX%, up the quarter the Infrastructure traditional was the and the in turning that, months. estate X% was release. investment XX XX up X% last and XX% here LTM. pleased the portfolio turn perform to X% finally XX% And credit, X% Opportunistic The earnings I'm composite alternative up of XX well, Rob. call credit over

I lot with I where focus thought fundraising, that unique of morning. business Thanks the our monetization, all a themselves on market momentum results in deployment, quarter, a through. our In trends forward: were this highlighted a so thank joining first were Craig speak across we as firm. greater ways, Craig, that the drivers a this seeing numbers of looking that as the you seen quarter just for key significantly was and we deployment. Those Last ran activity few lot, would clearly and the model. Starting for call well

significant we have back, scaled seen Day discussed investment behind many but a this that We meaningful are areas businesses this I highlight a We this the invest know infrastructure. one to for take infrastructure have acceleration particularly in step built And driving that growth. X Number We if activity. mega morning. the is you is Investor themes at global massive. need global will of earlier year,

incredibly us Our well. footprint positions here

just were Global AUM. scaled to has Our years that of business $XX and X organic. of we now all ago, $XX growth Remember, billion billion been has Infra

particularly out globally. well digital really across play infrastructure, all There and positioned here. theme we of are things X activity seeing pillars are We this are

is and storage, space. infrastructure, first industry; data so think center are cloud, fixed AI, and of infrastructure, The line second fiber-to-the-home; tower is in the themes mobile the third

basis To total you on highly pipeline a XXX% sense, platforms Our and footprint And billion. over visible U.S., contracted all because of those in give platforms value currently $XXX XXX% X them, own looking is Asia. owned their centers of the the don't operating data particularly a and large. Europe, of we enterprise we own across and is

credit The trillion that to platform benefits that I a participate AUM. markets $XX-plus theme global a scaled and in morning $XXX-plus credit. of we is are billion market, of highlight second The we is seeing the wanted this with

be leading Our the close real of continues on are, up ABF asset-based a year. area nearly exceeds AUM. position presence by the X Asia with $XX a finally, region across we has in finance example, $XX to XX% an market ground our active. total, one to as billion We've significant And parts team, had across an tailwinds. And platform that In meaningful far, last versus the alternatives for remains dynamic particularly have billion. the platform leadership today of of decades the AUM most world. That's and

source our with in we are our down -- in about country and multiple we last to the in have we office where XXXX all Japan decade-plus. the and XX value so today, people X KGRM, scale has real across well in up X strategies decades within AUM reinsurance investment capital months. over opportunities Together XXX generate particularly significant Japan. in We a classes. our us helping $XX excited and And first positioned market enterprise next of in Japan asset with of the the We the over for ago. incredibly originate on is opened we And across now leadership. Tokyo, last almost are have closed structure. Global aggregate, opportunities the Atlantic have transactions billion

further and together, from Taken scaling us markets our with competing of lot confidence the a in footprint provides here. around local

year. have seen this the last Turning next businesses feel debt improved XX% We've presuming across look sense readily been we approximately from M&A the of volumes. remains global tone give a the up in And private activity you'll real equity monetization is well market the markets, accessible time gross here, That to further as against same and backdrop of increased monetizations. constructive, given an total this, we proceeds billion. activity acceleration And very assets expect you see from To positioned. and backdrop, uptick over year-to-date we $XX a our equity across the industry. markets ahead,

position, we that as and good discipline, our which portfolios. we are deployment. management team areas the of One maturity of a is investment closely reflects pacing linear our around in the think, Today, a watch very we

positions First, we meaningful embedded with of public number gains. a have

quarter over sizable were positions of XXx cost. trading and Xx X our As of end, between

X.Xx approximately equity with of at or Over at overall. Xx XX% looking marked greater. private XX% greater, fair cost cost value or portfolio Just marked our at is

positions core at under-earning does portfolios at In this That's looking our as addition, balance businesses stands total up as currently year-on-year. When XX% gains investing mature. end. are assets of well broadly, are a earnings. industry, the stat to of more In have you as the XX% include at billion the pace $XX.X global of health really in relative been that performance investment billion, we gross unrealized equity, our private quarter you include the a strength continue our reminder, I healthy which this our sheet to carried future if all think does real not speak interest factor portfolio. year-on-year. up also our well to total, embedded generate And is our so monetizing $X.X investments, as And us to really this

credit of the nearly as Turning Two our driven next half capital capabilities of billion This totaled new this additional to here. billion the quarter, note to over grown us topics raised. year-to-date. $XX alongside In quarter, was for Global business activity by the $XX bringing Atlantic. of has

our talked First, and by in with added $XX are and recycling about already. ago. We're strategies. $X $X QX, progress And that capital at now investing private platforms And we tremendous billion from that opportunity of continuing verticals, partnerships our a encouraged on to to vehicle second, our products new strategic driven we've over really ramping multi-asset our across class new looking time, saw over of remain infrastructure launch X been by up long-dated still billion billion all AUM. of to and date are fundraising still in provisions. front those we have us. We amount K-Series our strong of with have equity raised That's year K-Series a at

types firm, we uniquely partnerships. positioned these well breadth our create the are Given as to across connectivity of the as

rather, with a and impact strategic both X-plus real sovereign platforms fund, real quarter will closed estate we $X we a wealth expect partnership on asset our for large which This billion positively infrastructure decades.

Before a a elements are conclude, and couple at level. really operating high did of spend very I a on minutes our that unique want of model think I few I also to

Global Atlantic. on First

the elevated at closed couple last operating earnings year. this of as about end we transactions with the year last calls, early of large of the talked after liquidity On as GA well block levels

we by several the We activity able investment deal seen on. And remain infrastructure, have to the increased of the our now and against the real have we liabilities and taken flow match some quality that including classes, were up credit. asset We wanted million. as private I long-dated credit activity model very company traditional that portfolio you of infrastructure, coordination encouraged existing estate, across opportunistic Markets on our third-party touch of well really transactions. and power reflected and this with business our $XXX to This producing of area that was saw Capital the record quarter, business financings of equity across as revenues second

While the quarter, to this which timing, of few as quarter our business. diversification the events contributed around and transactions fee well did sizable as outcome benefit XXX different from demonstrates a the breadth

the million Markets model But run Capital capture for our the built significant Now this we economics. rate to to illustrates quarter $XXX-plus think don't very business. is really new our quarterly degree is which

is achieve have We types not this being these our very able of business of surprise. part built a to deliberately and outcomes

incredibly as our our we our taking continue Craig, year, Just presents. that, model to close in about and your deal we a inflect on scaling stay recovering and businesses I excited up of the out, management that exit our to capabilities of just of are ability remains With team our happy will advantage And to the full take unique and questions. focused firm potential and rest to environment. as Scott, look to the the

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

My well. is question is doing everyone infrastructure the Hope business. on

the market in record months were the which about also your of and contributed capital XX% and So transaction over very at also XX fees, performing business returns, quarter, levels. also best to strong last infra

for targets and So these really return big infra both size numbers smaller are than are where P.

what's here. outside line, questions picture, and it I least market was performance in capital X X XXXX? the is large there So sustainable fee lumpy transaction into And the item Big too. at know driving

end. the the thought on piece for I Rob, you start? again, up Why you and let don't a at whole, Look, the capital market the as franchise kind of terms thank pick I introduction. I'll in Raj,

I at I X just Rob intra-vehicles opportunities situated, series, market are think of months at opportunity. a diversified as that's segments. investors, a got couple X we mentioned super years AUM core. really And our guess climate billion. the of the another We've customized -- I Infra and business got We ago. or this Asia wealth even impressive. Five months little job a lots that's And how for Investor look Infra, ago where distinct Raj maybe a reviewing adjacent we've the the is Global business of with ago, there's think point. And great now statistics we private infra series $XX have that was and as Day our strategy did see over very

all we're billion, at at As organic. X/XX, $XX

here relates And advantages it so are and been formation think to there continues that We scale very a the business is I grow think the do here. what in has to you're business in outlook from performance seeing scale. as one that's the The strong.

to quarter. to over where you're trailing But look I course, and be you at are think those when performance seen you have, going of You're really and our us. key for here. And performance seeing any series, this outcomes at is look of individual fund takes the puts and historically, in our I I going look II when basis XX-month over Infra very and consistent the dynamic funds performance again, time, back you you've think driver mature Infra

seeing of then that very series performance a begin. seeing time And just seen Funds IV progress consistent mature, and you're those think You've from I that first and pattern of as results. III performance periods same you're investment the

private transactions is Craig, do I'll note chunkier did aspects activity. pick just Atlantic, us that's and Capital contribute our had the traditional levels But whether business couple Obviously, the of we're Capital also of I building think relates But expected and of strong really equity, obviously, to big business really model. And breadth. great lots diversification deployment have real you that equity, a quarter mention quarters we of contribute other be a the quarter, geographic I parts in mentioned it infrastructure. credit and transactions, Markets where quarter a private time, it quick. of our on over that we which Capital business it, had I Global of the in high of to a we XXX to deal our to across Markets. shows Markets different really over question breadth core few that up for as

lots of ways P&L. impact different the So for to us positively

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

bit a active a very asset-backed could quarter. Curious I was if finance. we about talk know it little

strategies? You would from? Just forming little you platforms Which the mentioned from behind the a do assets versus direct where your billion, but Where are the XX-or-so where more percent looking to partnerships? great. sourcing those then was of assets for product coming some more scenes sit? be color growth What's are $XX you I channels? a little origination growing And

I Why you're couple Craig. end. have But at don't business Scott to start? super it's a Glenn, of things that been add may our has of the part active. correct,

So as months. XX be you having of different reward. levels risk AUM, of of scale of heard about can over thing Rob, from is And at XX% last whole up we a the billion the business a bunch great $XX that relevant

is So at insurance A-rated other really Global activity, investment when really we our together Atlantic insurance grade, clients, this with so single credit. look

If both Origination here, you origination funded is billion on and this look was at our a basis. $XX committed year-to-date.

origination. basis, on glad deals. I'm advantage partnership, us. you've double us. you've got corporate platforms, XXXX. And source at our looking of Look, on on annual billion more equity waking generate a X,XXX mentioned got platforms, flow, of origination pace, pace in for to differentiated real up got every big you top proprietary that helping estate, the day, then for people And including It's you've activity, a a a help XX we whole. run rate have $XX we're So KKR real than as across

lot And with to come think seen involving would be in a brands number mind. examples of that Discover a PayPal, you've finance, our so transactions really I big of team

momentum lot lot a the it the like to a us business, there's at just more feels same for time. honestly, So of and do behind

Thanks Scott. the it's Glenn, question. for

that it of where of a of places. terms variety question, sits, your In part

its Global third-party large separate great basis and underlying billion a so out, $X I on an a So significant accounts, market, did growth thing assets that call on GA to Craig we've $X job it been a basis, a These for insurers. very just balance the structures other other And to so The way would depending and is us have think, funds, investment-grade for also start. Atlantic. to the I what are summarizing. trillion, wants. And opportunity this a non-investment-grade deliver only ahead, create we great client on obviously, this allow sheet trillion $XX so point is able

Sachs. the the of from question And comes Blostein next line Goldman Alex with

Global a I maybe real a and question to quarter, but there's this bit strong be a broadly, momentum more ask fundraising seemed it broad-based. on pretty I there, been on But of Infra. lot segment asset to really wanted know little focus

You in it like are other these in you talked How about estate, release. the in along also you're so and the infra. estate estate? And and thinking America remarks, flagships, far Asia prepared real climate Climate looks pretty about North press real sizing real APAC European

what holistically, little a outside kind how far for demand hearing mega then that of fund the infra more are real on from bit product you you So ground there? of flagship thinking within as fundraising the are as specifically goes? maybe about estate, And clients

us out Alex, that scale. to and asset the situated. we estate love why terms the estate to how billion, start? ago split we're continue build credit great businesses. don't and since at this split been billion, about $XX a of couple Infra $XX real real of of that we development how to both for is between is I about estate see years those approaching things within of the real point Honestly, at opportunities and think pretty talking one in line of really business grow, equally It's real equity we it's

our If the you've you over in things are of about strategies, at time, scale. over yet XX% some to talk view, go back again us of our heard

as are that of trends investment of ago side so though, amount wood, from just a And building, particular, feel on think the or it one you dialogue tremendous the to think anything, think operating so. year. It real creates dozen year like again, over over heard most valuations, and market, if I does you in knock in have independent a the does encouraging bottomed opportunity. And if a of and relates I growing, the course LPs, but scaling, got signs, we've feel vehicles estate, this of would on this

over You've snap, seen like you billion. within real deployment give To the us real significantly for increased will, year-to-date, approaches XX total in activity estate last months vote with you investment estate a our has $XX is wallets, -- if us.

we at X operationally, that about I we've first think were the we about of activity progress in. And $X 'XX, billion. of feel when we that to think investment really decision lean seen months The and good

for of lots us of momentum, So lots looking forward. opportunities

Alex, it's Scott.

your Just on question.

would private made. estate and say I to So are just I'd being strategy. from category. credit, in put that continued standpoint. like created, It's we've younger I a higher of that Well, it have climate level, a along the would same real ABF, see category. put a infrastructure been and lot areas commitments interest and with credit activity in Allocations fundraising

the over as target So time. don't the estate for we really investment Real scale been last us talked have to has evolving large but business equity, could think markets. a you be a the obviously, need give quarter, we today, I perspective significant. And that in is about

view starting that you was Craig, real is of think stats bottom by estate the much in heard I view perspective this that of bottomed last And that that we've the shared half Part in last year, the our be behind is and others. year. us. markets to Our is from leaned so the reason

are shift sentiments hearing we estate on So real equity.

to you're going down, that. more with of to think come I hear rates starting the

sentiment be you'll good this good spot been like show beginning a that And start time show is a the I a perspective to and So think strategies of see leaning But our those Asia is today take definitely there's capital to to but that for little we've time Europe, in funds, we over in in feel up a we up, turning Americas, the and and time, and to it have bit believe. we're in, invest. we market. may

comes the with TD Bill next The Katz question Cowen. from of line

snippets a vertical. you're bit management scaling about and was to talk little a maybe just you of which unpack bit, you prepared look a commentary. could bit the nicely, gave Maybe appreciate I further. I the seeing little traction, very in where just which at the wondering And that wealth opportunity if little is best

getting closer, that talk will. now Wonder you're about ones of coming. on early-stage sort You And sort was in opportunities of you could design a the where a could arc I you any then little mentioned a bit few of little if platforms, X if yet to you like you on or those, if bit are new sort Capital update months us wondering with of with Group. fund more

Bill, First, just for stepping for it's I Why everybody. Craig. don't moment a start? back

AUM September billion we and of have as not $XX XX, So policyholders around at of GA. from individuals does that include

We've from our net investing if So net that percentage when their understated is presence new the double-digit chop year-to-date, been like feel at to activity here. wood has you think a capital over our worth K-Series continues raised us, got market the a X in estate, we and great capital of got marketed momentum. We look being across ago. of investing share lot with just lots great raised credit. They're equity, probably high most for breadth individuals capital time, all that introduced our And the statistics billion our $XX that year then a in who've to $X private of ultra-high from albeit products evolution, It we've anything, position, that different individuals billion noted, in of the been over about the suite we've you products. recently, funds. And of And verticals for we as low today, time of from us. that worth, have. are real currently about and feel think majority of has $XX terms capital stages infrastructure, billion been of

international with classes I strength recognizing, And as I'd asset well those as we in equity and in as think think, infrastructure. well is felt private that both say that I is as domestic. particular, real

So look healthy a vehicles, like balance really and those within us. U.S. U.S. X when to probably the the feels you outside AUM That a between is XX-XX split

it's and when that we So asset I at classes global. opportunity, look think multiple it's

launched our launched think other to the we've the private vehicles I ahead highlight, had -- fundraising other we that of point BDC. for the just those

and look So a raised going credit have in that Group? opportunity in see I then, that platforms, when think handful see to, more very which particular, don't of ones, us growth know pieces lots momentum you if a seen the anything we of the continue has term. of as been think private across you I are in and in industry, opportunity, to near larger I to the number And lot Capital you've Scott, the capital we're in on of That BDCs. growth is for one private add a

think wealth I topic. first management on the No, off

I to think ahead, firm, number lot in now We've and got our Craig product well the on a I we a covered numbers not And lot but think what's are is run launched we've of is there's full rate greater potential it quarter. in all up different different in areas. But X the getting every numbers. the a than that of the platforms yet. far growth Bill, parts of showing of

continue we we're think gaining to see you're everything So wealth. in doing to going across momentum

carry terms showing infrastructure. asset capital of bunch different the But going We space. of the they're but to investment what's in the talked these about also up. in You're that of raising showing seeing not earnings, this parts show businesses up firm, P&L real and across yet, a including they're up the

together. see here. On the that that up Group, that X growth. show show we continue that vehicles we're going much as very will embedded on we've we with to Capital this to parts shared earlier got continue different to AUM to That's in we so year firm start will scale up and track. credit of There's think I lot latent continue a And earnings of

We across other verticals product and on are the time spending product alternatives. also design

about hear quarters. more And you'll future so that in

And the with Brian from next line Citizens question the comes of Mckenna JMP.

So it driven balance quarter. asset sheet, timing strategies then how see was gains But performance. starting this embedded more Or any carry flipped the respect should over And assuming step-up I'm accrual? into accrued billion great any to just quarter? in the nice contribute the the income monetizing think funds [ we this of were there to performance are to newer time? that during about ] with by of the that the $X investment on of a management, strong lot during meaningfully was to the

of for to that What broad-based Thanks in $X.X it's much assets you're the inflect say Rob. billion course. is from our up, comes accrued you I'd portfolio, in Brian, infrastructure, of that, question. Where more in real quarter it really performance. us starting saw the carry, particular, the see

$X our you from billion flagship we to $XX-plus at billion $X billion. to infrastructure billion If went look to $X funds,

flow carry you're as importantly, now build. And you're well. so realized start that the and carry then see see going And accrued to through scaled that we starting to to performed, as P&L

seeing where P&L more right that now, through we are of gain it the a is see environment. which most balance for able to exits opportunities companies, be sits. our largely create sheet to that's portfolio relates flow that on to embedded embedded be balance of As monetization going think function gains, when the going to to the sheet listen, the I And you're

over material through say course And so to constructive balance XXXX, able more if be the environment would realizations I the to remains we if the XX generate some -- sheet-related months. next would expect of the

comment Brian, business. Yes. AUM From thanks about and add, Day, The our including it scale altitude a past, we've in takes talked in I to the as to years XX thing higher only XX question. the at about the would just is Investor for standpoint, --

got You Fund Fund IV. get to to III,

week. we As last at strategies used have at I sheet know, was our X KKR. X you looking to or fundraising

give year, line to items a just XX have you We this sense.

to it's X we from since to you scale to XX get show up start line went remember, at to get XX to it's crisis. So X carry scale. to And after earnings the the you to see years that items and of XX years that investing oftentimes then XX scale. And financial end

So earnings just Rob's from $X as coming, a and an yet in you carry the that's to we infrastructure, billion have to think billion our $X us, standpoint. to billion $X the what's billion behind about $XX not momentum point, in example really as to

of We in have the that firm, is voices. lot of part a places such which confidence hear different reason you across in our happening the

Got it. another Congrats on great quarter.

comes of question with Research. from next the Chubak line Steven Wolfe The

you've just bit a was from we fundraising I a in given can just $XXX fundraised improving any year-to-date institutional versus seeing. get But flagships. And be target. fundraising the ask it's retail, contribution to $XX Day, already tailwinds billion to a would on offer, tracking If hoping and goal limited some momentum supposed on you benchmark despite momentum, ahead tone helpful. some the target the Investor outlined the multiyear recognize that follow-up wanted that call the just given perspective fundraising trends at you to feels on a of billion, a whether outlook. I the strength of be just mark-to-market both target conservative, of constructive that this you're recent of given question

have don't I'm thoughts. I And another Rob, of start? why couple may or sure, Steven, Scott

I just in We we execution number the terms if you're think seen if momentum today. would about have great $XXX-plus done, But our $XXX-plus we a don't in on that have of everything the billion, I think billion, new think increased. you've given correct. today. first, feel anything, that confidence level just have I we've the Look, for the you anything,

in think I some been implications the standpoint a the flagship statistics because moment is worth has of we've, in activity just of pretty Now from spending you're right, years, modest. last a the terms because it couple that on of

little So a our our of KKR. complexes bit background, when refer are just fund to these really we for largest flagships, across

been Global new was flagships. private Europe of Americas think our I Infra. And quite raised those XXXX, XX% PE, numbers came XXXX more billion modest. recently core PE, have $XX And It equity, capital over fundraising. from Asia and over and almost of So

only $XX billion, again, XXXX, $XXX the that versus XXXX we billion billion flagships, billion. raised So in but came $X $X and from

flagships, the see billion starting the 'XX And total, billion start. of LTM, some PE just you've progress, and seen so the activity think now so be over balance meaningful we opportunity just coming and infra, our from to you're given $XXX as across the has as to incremental and about $XX well what continued we in Asia a But strategies, that think to Americas as activity 'XX, from us. nice

as the opportunities we've we of as alongside again, strategy think and is XX% and heard, And so opportunities. have And got Global on K-Series you that, our Global that's yet when we've at that would institutional matter. continued scaling. Capital And then of not us fundraising, top through have you both a the back the whole, in Group. sidecars And in got wealth, got opportunity scaling to We've flagship Atlantic continued Atlantic and about we scale. at for have

us just again, feels we a question. the And It for to there's of have a -- lot do. there's So like lot thanks for momentum.

surprisingly, Yes. The is only do thing like at positive. really our setup. good Steven, quite Not I'd feel we add, you're We math. really

the I just I would into more -- lean plus. even So would

with the line the Patrick And Autonomous Davitt next comes from of question Research.

to view We matter that going Downer that this X election come be that markets some elections to much way, be either change appear looming a ask an don't I'm clearly and on take Debbie is but question. usually the extent. to time tariffs big in could pricing

be war? by initial how could negatively existing inflation tariffs on positively the from or aside portfolio any and a thoughts So trade rate do you even impacted have and/or impacts,

can time, we here at do focused portfolio of time not Patrick, surprise on new that multiple portfolio. here also same that's our focusing across the a we them. planning to one going existing areas, or you. scenario Yes, of things But not That's that's most different team We the control. I'm on have spend whether

think in, the made depending geography there's all of and going out. the companies, There's their to sectors different As you they're inputs. are pluses of cost I base kinds what our on minuses be said, some portfolio

so watching we're closely. it And

little teams be it's more We've dry a also think powder got an to we're react. of able to in ready to react I are that to invest to to fair ready volatility. up that that. we end extent a our bit say And lot into the environment with

thing isn't last Yes. We've here. a new effort the for on The been I'd this focused only years. this add is several

been So portfolios, this constructing mindset could it been happen we've as a time. over that we've doing with

from with the next the question Mike And Brown Wells comes of Fargo. line

I on I and specifically wanted the real asset on segments. rates, to fee equity private guess, the ask

on bit. of up if a looks holiday? sounds then quantify products, fee forward? you real help in the go does turn-on a it Global looks in And those rate then remind impact the that assets, rate fee and the for driven to little to like like can by like ticked private And Anything it So end? fee maybe point the from that they so, came right Could us, probably Infra down that And equity, maybe there? fees was understand the are just you run K-Series when rate or us fund. are it

Yes.

take that the last and try I'll start maybe So with piece, piece.

Some in, product. bit holiday on depending a a of the have fee our K-Series products of do baked that's

a past basis And private you're so down rates of quarters. what come X fee equity. think seeing the that's in of I little bit the a private equity points But over couple

The And would seeing, V Infra to because contributed. lot intra-quarter. in of what bit which trends rate other little in rates a would right Mike, equity But the thing way lower have private even a to scales, your over a that's in a happen of strategy, to that more that factor a overall, of in fee of and going third at say, on of come the core with really introduction assets, fee our about the naturally particular, importantly, a to you're as point, evaluate in these quarter, the and number of fee as is can good well. Real is feel our turning that aggregate of longer little there's types is they've stood I time products period how come lower a rate. new we bit up

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

and you any improvement. for or be around give run color And in Capital half a think, [ Markets. But as whether ] but look over was also could the think and could to And than the was that the Telecom potential ] of rate, what the Obviously, potentially Just so half quarter, XQ $XXX 'XX. not which fees in with next back to rival I America, into not that. going 'XX just that fourth North [ extent sure strong quarter, next, give the million. this could Italia I time, if can not another helped more very strong Obviously, it close Discover something on I'm quarter, $XXX you million fees. we

million. $XXX about from up was it think I

especially So America that was was anything lumpy in to North third the there quarter? contributing

to of great question. sure. this say a us. And for business you to feel for a as is us to great business. about basis. And type the And we have the a in team, bit more as as the on of a back bit would an history lot really thanks business. past, Certainly, for Obviously, maybe is Capital quarter heard our Markets evaluate a us we Yes, the that reasons talk go positive it's not obstructive future, little a about it's annual leadership evaluate performance, in Brian, much quarterly there's this on basis. senior on this really

at look Capital million our generated we XXXX, Markets $XXX you of roughly in If business revenue.

a obviously, record fee Now XX-month number period through that for was but it the Markets buoyant Capital our were time, business. of

X capital largely in still minus, years. when across of period XXXX, plus and XXXX of time, XX-month at that shut revenue, look of each you Capital were or million if Now business generated $XXX Markets our markets those

performance I really as do the more look that franchise. XXXX, think slower. the started And actually of shows bit durability of proud year at you it a we're off the because Now little

going But at reason or the in and It's that XX-ish You percent, had the part the we to that through third saw some expectation year minus, as why aggregate, our we're is spike in catch-up happened on quarter. relative a XXXX up to you plus activity. look be XXXX.

it down around inform ability deals that continue KKR opportunities in over be up getting the geographically. as really end in Markets structured views the year side, I very to us business don't both constructive does franchise we no working teams the to expect to for talked inflect is market our Markets assuming it GA between continue on So grow partnership really big the and Capital record time. QX think the to new very should pushed. But around our but model the we're Markets Capital really close helps to And durability of finance a unique do a differentiated Capital journey. about to share And existing and third-party will grow together. and approach markets that we more of our in continue trajectory our We've X-year market see future, add up that really

you as type we're, of quarter quarter can not to constructive really tell, So on in, the that it's I think business out. really the great evaluate but business, is

comes question Michael line next from Morgan the of The Cyprys with Stanley.

envision there what could sort at. expanding across globe. of could of types you're several the I sort the was climate you making out the be across classes talk building your build about years? progress that do in how hoping return And portfolio, targets Seems the clearly update us of strategy. Maybe you're you're strategy next like you you investments could this some looking over taking out, and the on of steps opportunities to asset

curious, your there. thoughts Just

Thanks for I massive Look, Craig. start? Mike, don't Why for asking. there's it's here. capital need a

transportation, energy, it's It's you it's when our in physical of And $XXX $X annually think by pathway for net trillion, that. are XX-plus with it been date, barbelled. but about is the capital look it align investment that. far economy needs so it's the feels next building, formed agriculture. And And renewable, it's to years. zero trillion the view, beyond certainly, like extends so at capital massive, almost required XXXX, the going That's the that's to if

and have framework, mature lots in climate on So that early the stage. of of climate part technology very the power you or strategies are core so X renewables, a dedicated very that to hand,

sweet And very the the as time, and years at these been a it spot things itself extremes. And lends we've in so same between experience a particular, point our firm with in well infrastructure, in XX doing X real now. for there's view, in our that

our round we're team. numbers. It's it us, for if front-burner becomes billion topic a a So to topic at front-burner $X.X for very fundraise. continuing We're

needle us come an to, So that long for the but here over move time. over framework we opportunity become term yes, this to an can does in the the have in opportunity more think time

line of from Our the next KBW. comes question Kyle Voigt with

on just question GA. Maybe a

dynamics capital the over you to timing for in some in that? taken target you've significant could if pretax an recent XX% path given is shift getting macro XXXX still timing XX% glide the past with quarters, and if of wondering was Just update the the few the and the environment to given provide the on deploying ROE right back I to

at and of and simple which a liabilities then we're we thanks high lot work, feel enterprise, for taking Kyle, out really like most going the we're level. putting how the sourcing the scale, important across how we're question. a At is how to those liabilities operating we're low-cost, level, them performing

we is path. The to operating our grow. and going ROE on about a of ability as we really earnings meaningful question on our continue And that for so and including to as great think shareholders, ultimately, be generate operate know how to we're factors what which grow whole how quickly to in and we at what of depend watching, level we number that that kind of a way we

example. institutional been talked have our take block Let's an really about exciting business. really opportunities. We've business as We've some active and found the

of know, of amount you QX past this work material and capital. year, a As QX put to

Now to period. underwrite in XX-month those redeployment transactions, to XX- IRRs we

of the some The earnings not come time. cost liabilities think not really on through those the but attractive period you're we but generating going So asset IRRs, operating taking yet the for return of to which full to initially. [indiscernible] are full

you your us there's followed think multiple some now impact time. I question. But will that So for things different

investment to gain. a in you a we're as for management always that around longer-term think I lean know team, upfront going

through. we business, level the XX% pretax, same XX% time, But specific right And at so like forward. as about to feel have going this we ROE a to to the for don't undoubtedly, long-term continue think time we line. model we are we do since doubt, But we these feel been XXX% year. this together. how It's elevated went it's bought earlier great And that working going no our teams really variables to on depend

comes Budish next the line with Barclays. Ben of The from question

time wondering the for their earnings portfolio. were private a about businesses sale was could you own compound. In core if the out you those talk equity that I indicated to past, of long let very the and really you've wanted

the I To the predicated other sale? existing that on but comments near on was -- term, then I that what that term, kind think in the portfolio, predicated you assume to on expectation that of about of circumstances talk recurs? And hand, you could income be extent longer the something think for led might longer-term your the more additions. it's So kind dividend

guess both assets recent and think I circumstances then of kind how capital So assets adding to you monetizing other how deploying the sides, and of about think of you and kind sale portfolio. about the that

question. Yes, great. Thanks a lot for the

So be we're always portfolio going on to focused optimization.

the it's portfolio over segment our So overall holds names plan Strategic long within Holding out could you the some come of unchanged. and possible time. that term of But is in see

As was owned partnership it company a that in Telecom actually specifically, relates fiber with we this portfolio to Italia.

ended we cleaning Italia on when closed our the we legacy and in with transaction out. much cashed so broader holding up structure the Telecom July, up up And capital ended getting

the see through of QX in you why this that's flow So monetization year.

April. million that updated by as by up at earnings those and ability operating provided gone billion-plus since million and it $X guidance to of management team achieve then we in only last our 'XX, our $XXX-plus and if anything, As Investor relates our initially first has the by 'XX, $XXX-plus level November a guidance, conviction XXXX, Day to numbers

And the next question Jefferies. line with comes from Fannon the Dan of

I the up markets both on opportunity. and follow capital wanted to the GA

in GA strength the and as Just how obviously contributed come the or and quarter, business of you how more? percentage still that build third integrate activity a on you the is posted just much that curious, much given

short in talked the business not the of believing millions quarter perspective that that line dollars the context revenue. in I time answer, million but of it over of is is unchanged. was hundreds think That of is that material us a Dan, for that of very the $XXX-plus solid all we about contributor opportunity in said, in the and

of Brown And Fargo. from Mike come the with next again question line will the Wells

channel integral and more to is wanted DC follow the potential call. the of opportunity retirement give KKR? what's largely here. perhaps I to But Group guess have understanding just for actually that a kind discussion portfolios. with today, but important I'm in private if to you assets interested a of it mover about or actually I success on unknown opportunity a here? first up Capital near-term to kind XXX(k)s? guess maybe wealth focused all bit for channel the up partnership that's opportunity the model in getting into for leg partnership could How And of the I the more long-term is is earlier hear curious be I'm you

target well lot dollars Thanks date for through actually percentage same so asking introducing Craig. talked be north logic Mike, in new about that behind north strategies going probably as And it's time, participants the continued XX%. into of industrial the date I to strategies is their the alternative is that percentage majority are won't believe of we've who've XX%. to we hear that Look, XXX(k) of indicated surprised it. retirement. funds. invest at And think plans there's a some you target individuals of going to

massive we strategies to opportunity a that's about as got expect and over a correct. a being pools time It's of date don't fund we market. It's Annuities, We've the forget well. big where going relevant target Group. industry. we've Capital business. really And these also with alternative as Remember, be got And the are one very think, we partnership framework our here. view introduced. first within that you're So KKR interesting you'll do for long-term see GA

a no but So going our mind There's topic firm. about take some look, that, to that time. it's it's question has share at

think framework So tangible is our QX well we yes, the firm a as in to this for that I feel do driver as don't adjust industry. numbers us. very our think time, But your 'XX you of over need fundraising will

question next from with Research. will the the And of Patrick come line Davitt Autonomous again

updated pipeline visible realization quick numbers, you the item. A Could housekeeping please? give

course, Patrick. of Yes,

closing. we've consists of it minus or of So right up now, up so end really $XXX got signed revenue revenue is happened million we'll call already good feel of we plus Again, visibility has revenue. pretty monetization-related into confident or and that a that that amount QX

and different at XX% that to Importantly, our look bit so the through a that XX% ratio. P&L little it's of XX% 'XX, compensation million. of lower at you $XXX in will QX come Approximately

also only will able generate and So significant a to quarter, the a through we're maintain result to so more hopefully, Obviously, QX 'XX. the constructive of be some into that P&L in and additional revenue posture, of the flow the we're month through the markets as our dynamic. remainder monetization-related

Katz from the TD question line come next the with again line of come -- Bill will again from the Cowen. And

Markets remind that, how on the the of Capital activity? Just to effectively we thinking line? through segments continue the exit scale Can from to related between you drops should FRE me the revenue as your XX%-plus revenues margin, that the given across you And commentary the geographically opportunity. just deployment much split presume bottom come versus

the In create of deployment well. Historically, put than of quiet as the the of sponsor particularly a expansion deployment XX% come about some business our community really back Bill, side, upside charts roughly Asia, We've market about but to as the our mid-market Capital think little less some and and third-party been revenue. on the part around bit result being out Markets, be can bit good the the driver do little again, what regional has a in it's I of feel in expect XXXX, past of we time that. our more we to Really, that for question. our Markets share. presentations there Capital for between the revenue. largest thanks over would That's correlation going our business.

is be also On historically the But feel operate X confidence out and said all which we're not our clearly. of to sustainably is What an do, about margin if to which is that to And on us. things go a of lot could able in got that's industry-leading. I've margins it's us, for range, what scaling we've important FRE we've I've really we is cap business that we that we're a plan, able mid-XX% said going topic for already execute started.

complexity higher going so that or pace operate materially a than grow KKR. And we operating to our that's believe at to the revenue we're headcount able our be to required

flow the what we're here, successful should if you as of is through. additional QX, operating And leverage of seen an revenue FRE that the that expansion would have in already be, you and And output spike industry-leading so margins. in saw

Bank. come from will the the last And question again Bedell with line of Deutsche Brian

XXXX. that on pipeline a into Just the coming an strong, but exchange they quick had X sort this XQ also to We monetization seasonally. morning saying was of the be pipeline slow is very did expect

companies So the for 'XX the talking versus I sales that you monetizations. same think obviously for momentum just market then because up. to deployment the IPO guess picking IPOs I into seeing coming other wondering were if And you're just potential maybe mix of situation about

Sure. environment, the talk pretty monetization really through is Maybe And which XXXX. has positive. here about broadly the backdrop let's just recovered feel we

that a is indicator the finance a have we period area leading of way But quarters. IPO there us had sluggish has do really change which as coming as been income more is leveraged as over in big capital in strength have X is. come to are market. expect spreads Obviously, as You've and a to the the market, little strong fixed sustained equity of markets bit that been. The the they markets

think I portfolio. own at just looking our

issuers average, on data as And very XX business, all a and close think, about And XXXX. price. XX% trading they one market we price. growth. are a probably of trading I IPOs issue of helpful past above to slower their sectors point, could data And businesses growth-oriented the some a while the geographies, in small just obviously, largest it's through think but months, different that equity businesses the those If they're X mature back a IPOs different you point, small IPO look issue and look that's, are include like size what in X as had we've over above the marketplace, of well

did the I'd in only back. the Brian, start see is It add, the come to probably X gain to momentum thing first The took we rebound deal half. to first market months

IPOs which that market, continue. seeing to But and coming. discussion cause -- look well. us But today. there's not a the lot So per seeing IPO we're momentum it's that don't about pocket highly looking at that think We we're just think we're at of quarter this relevant. but is air I there's nothing as an would by M&A se strategic there's It's

of well. supply coming. a a the industry guys there's year, mature, referenced, the performing our As If exits been did sell is bunch last things portfolio it's not because anything, pent-up of

anticipated. I that's what Yes,

concludes remarks. I'll the the back to question-and-answer call Larson This session. for Craig closing turn

you continued for directly, or I follow again if to forward just with so. in interest thank much. with we of questions. so KKR. up days us to have everybody look like in Otherwise, would chatting Thanks everybody XX course, your Please any

This concludes today's conference.

rest disconnect your day. lines. now may your Enjoy the You of