Apollo Global Management (APO) 1 Nov 232023 Q3 Earnings call transcript

Good morning, and welcome to Apollo Global Management's Third Quarter 2023 Earnings Conference Call. [Operator Instructions] This conference call is being recorded.

This call may include forward-looking statements and projections, which do not guarantee future events or performance. Please refer to Apollo's most recent SEC filings for risk factors related to these statements.

certain relevant on performance in business. discussing management call, of be are believes assessing will non-GAAP this measures which the Apollo the financial non-GAAP in GAAP is These on reconciled presentation, available website. earnings which figures company's the are measures Apollo's to this on to sell offer constitutes an an interest in nothing or that offer of solicitation note call Also fund. an purchase to any Apollo

Investor now Relations. to Head Noah will Gunn, over turn call go Please of the ahead. I Global

Earlier services welcome or the share. more which of execution again, strong per quarter, we both management everyone, record third totaled these $X reflecting of Great. this Thanks, streams XX% costs $XXX net SRE call. investing and solid on $X.XX morning, financial included share, year-over-year. and and billion retirement $XXX our our we earnings supplement our Donna. up of and Combined FRE Investor quarterly Together, in asset reported of from million release earnings results $X.XX income per taxes, And quarterly $X.X the third quarter reported published $X.XX to or billion adjusted share income, HoldCo two portion million businesses. record website. than financial our We Relations with financing year-over-year or principal XX% increasing and per

on and available provide investor Relations believe spread. be A various our insights how, and platform excess And we Marc in presentation page. cast the deep to morning of video aggregate, sourcing of November plug competitive through discuss origination quick in couple platforms are Kleinman, of hosting they the this focus, will CEO; will of which provide strategy, afternoon sustainable Apollo Rowan, into relative In Kelly, one be a detail our proceed. to our top further Scott CFO. me and live will a positioning on detail Joining session results and XX, before dive in we a strong weeks a co-President; advantage we area Martin Investor

Marc? And with that, now back to programming. our scheduled earnings regularly

to Thanks, good Noah, morning and all.

amidst for industry. great markets financial certainly and our in challenging year Another quarter interesting a many

up the Just SRE, $XX row for quarter, fundamentally Margin XX% billion billion, year-over-year. to billion, a expansion, Quarterly sides Deployment, now. $XXX performance. quarters on X year-over-year. third Inflows in momentum the of $XX highlight XX% FRE, both business. Quarterly year-to-date.

business for you. Our I track robust, very model is will as

We inflows of heading The Obviously, continued track expect good for me billion. bringing yet, on quarter tells QX. billion the will momentum but an another not plus/minus in business we inflows we see continue. into the year performance us to we total is QX, have for the tells $XXX $XX momentum see will everything done

In perpetual just will in hard do Scott just close Global how products level. on out, to there origination Wealth, through annualized team go are I'll working, wealth given quick been today. shout-out tracking, has the now billion the $XXX an a seven north in of market the this which to, And volume detail.

everything the difference has of credit positives the one one remind But capital business we in business business benefit we're period built to is that Almost people in time. you better the and notwithstanding a of on This what private credit you, normally lasts, our And a Credit, than as business bigger the happening and our think focused group, we difficult up set top Fundamentally, mix want believe is between peer something most that appropriately is set everything our economy, current of rates. duration, of to of the long in for we've much works market. from higher big part working, that structure. are is up with market. otherwise. a a as I know, over a senior secured all

you give Athene, level. sense, or a at last at below impairments year's To

expect good forth and in quarter-to-quarter. the the Fundamentally, some book year very is back notwithstanding shape. We for year-to-date, and

detail equity the markets. side lots But the with hybrid number used will to purchase deployment, off. price in dry fixing. equity And a situations equity which business. disciplined to powder matter, portfolio, idea that need business being private of of our people on have have paid business, done. in our existing will offense, of and Scott left is we -- has very on On in tremendous strategy, their sidelines. matters, many the capital are decade of and Many business their there's therefore, is refinancings to no which sitting has over how really problems past existing price small in much Purchase going solve require They our get be our to us private been the in

conditions, like given over recession, very something high business, you it. you like equity the implications, in concerns If the the environment, all geopolitical financing given now given given what really generally the is difficult rate

business, the deployment all 'XX, we'll be On industry for attractive. the equity think into I margin prove very for to our of very,

you from from back look my in period of low. rates which had high least We've happening? And I'll now and markets. going what's markets I I to four and generally XX me private think tailwinds So is over at we years, Let on time. benefited my career, happening what and have at really this in I view give step think start is --

of We have money. printed a massive amount

like me borrowing. we've It forward borrowed benefit really through the globalization. growth, stimulus tailwinds fiscal equities, of And future surprise did have that not risk estate, had We assets, those demand four does well. and with fiscal things that real

But forward. I -- everything to that things just of absence of as what that good be are be performed to view there today? I aberration, the new an And have. indication XX think not to going of investment whether environment I be which forward that past done true that backward tailwinds. going we not four over headwinds period needs likely a absolute going argument are for strategies success. the an the these tailwinds tells see with is as years, But will particular, or looking those looking me the guide ask perform backward over to not of in there's good I time any myself, In we past are the a

financial We, fundamental in now but just trillion, to markets and the have there rules there I been markets happened most have and changes the into and printed we of debacle to that all rates to doing significant after went over XXXX, $X Apollo, as no I'll talk also an how right The Well, up in that notice years happened are rules, that I'll our longer well. three, think we of market about not that, very work and fundamentally rewritten. changed starting us, we the everything past came stick are of because notice structure which the were didn't are absolute financial our system, close XXXX. just these some And we right. now headwinds, that to are we their changes. now of up, we implications.

dealer have market their today roughly markets. One public public XX% is is size. XXXX. it estimates, just are liquidity, in what By me That trading Xx Capital that facilitates we of tells capital. liquidity Markets was less liquidity. in some

challenged, not liquidity not seen on of only We and way complete more to way LDI already understand surprise exist liquid less to the investors beginning see should markets. world exists a on up in that down. the and expect does volatile, in going public liquidity markets U.K. the which public forward market, breakdown It functioning me last was first challenged, have will We year.

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investors, of you, XX% of now debt All capital businesses. to supply

do. you've the more. They as not have U.S. In bad up businesses. big the will on lead at margin, play That of continue business. their occur that capital, been means banks you to to shrink. as put de banking to that is on and and are before something asking sheets the proposed banks, and asking more less more that banks shrink is Credit in the investors never you the First financial When SVB regulators next me Republic that of that business. they're decade they not to shrink to that it's the Europe investors will But amazing of It and addition, balance will that way from will changes When total play mean Suisse, the the XX% following have as resident a series product. banking. banks it moves or does further IV, ask products mean to III to now is a percentage they over less they're Basel four of investment very and because and see tells is a Debanking only is world. don't It are on around to they not to periodic. happening the banks This does lines large early you Basel historically It debacle seen infancy.

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the We in much career. predates back had going NIFTY have my never so instruments XX since literally so few and concentration

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plan. hit the solutions laid big we Noah plan. up. their X-year X-year bets exceeded is are meet on X know, hit tapping time So its to has almost Athene, in me on and plan, X already track my X-year Fundamentally, are out, watch well track to Of our is has already his as its origination that telling that already global plan. capital X-year and you years we wealth

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later detail, in to we where Noah hosting And are Day we really talk go to which Investor 'XX, will so from here. our about committed next

With our little, I'll we're targets maintaining you, the we've that a that remind culture. told the that, plus deliver goal after, while you,

the seeking is not not be We're fastest long over be growing. to biggest. time. We're period a very the something are We sustainable that seeking seeking to to build of

to over With to that, turn it going I'm Scott.

profitability. Thanks, Marc. we business good economic volume It's our rates our the capital services longer be with Unlike access better current is also value volatility thrive. a we And asset in business solutions can momentum marked companies growth heightened investing solutions only This good good for and It's many where are sources should Athene's management interest on retirement which model, higher true the by when and our traditional business executing core financing less where it the and selectors continue capital for for businesses volume drive backdrop for our uncertainty plentiful. is can asset or where as aligned industry, rates, power of creative not where objectives. more higher increase are orientation, traders. of market we

before, quarter strong Apollo robust, certain hybrid XX investment appreciated As in our origination this heard per you've of yield franchise a corporate with the us direct performance. between the In value also XX% structured over performance the return the between providing strong remains months. X% is of unit say our which and months. quarter third the Debt and Performance XX% X% is portfolio and of year-to-date. We've Class strategies the in credit posted excess XX.X% business underlying all business, evident net X shares appreciating in for XX% our X% and foundation the strategies, seen in over total last credit, return Solutions, and last our XX risk, including and particularly in

Fund should greater appreciated XX the actively earnings growth And last XX% inflation worsen. operational generate quarter to portfolio the an efficiencies. over offering achieving diversified LTM and IX downside economic multiple continue well in The in is underlying XX% protection are of and Xx flagship purchase companies conditions slightly strategy has by managing private average significant months, and portfolio including specifically healthy as the X% third over our for equity,

putting deployment accounted we billion two the terms of majority in capitalize lack $XX In activity platform. global active investing the continue capital liquidity. vast across remained platform for market the as across of the to the yield work public activity, quarter, primary on we themes: of quarter capital of Investing interrelated during debanking to and

in with potential remaining to interest we're criteria, solutions us during provide of Our a offense is of higher in choice This the disciplined remaining scaled highly and leading of of flexibility rates certainty given said, longer. pressures ability picking capital effective made times used dislocation. to today's backdrop. a time economic strong underwriting again: playbook lender time and during has periods our that our for With and we've defense uncertainty, spots

more business, pipeline are which especially alike expanding. the our Sponsors For SX pace our seeking billion liquidity of as hybrid been and is is alternatives our corporates capital vintage This this refinance trend year. heightened evident where and financing value the deployment of second so strategy, as is $X access equity to hybrid far strong opportunities also has business, where well structured driving our than invested solutions deployment and into in hybrid within demand. structures, we've capital

private in very last reductions activity billion our we transactions. capital valuations, particularly busy with wider equity, $XX fits reaching opportunity months. and take the in privates a market strategy, set deployment seeing XX carve-out we're remain that broad in over With And

a track in and of ability challenging and recently with to our appropriately confident long-standing Univar As environments, which market franchise capital was closings capitalize sizable by in record, the we remain financing, leading August. a showcased during deploy source Arconic

spanning suite $XX total and our and capital Solutions, comprised shifted total of Investor billion quarter, $XX credit fundraising asset-backed and inflows preferences in credit through of full the credit opportunistic newly-launched through Apollo return the inflows and over our have franchise. through Plus anywhere raising Athene third-party to the very go generated Accord strong $XX this of Debt year, We favor capturing and in Accord been finance our billion. billion primarily results. demand of from corporate Moving product past of we've

months an the us yield powder will to expect next position dry these what of with beyond, investing XX our even All in be objectives the and to we business attractive over for important backdrop. credit more which growth are

asset these of of Additionally, business, where we for including concentrated direct the Fundraising we we've six for competitive positioning quarter, in growth as XX% ourselves and we the time a resources sidecars and complementary in for management third believe our spent edge. lot a discussed next which wave for in than capital accounted AAA. have initiatives origination total capital for of multi-credit third-party and more areas raised

We closes areas for within is business. as Global march offering over to continues inaugural a Wealth. also distribution, This these hold the be the expand have to everything marketplace. area believe to And equity for transition differentiated of invest continue We quarters, led year our components all and to reasons. a roll out expansion expect for educate of in steady clean couple product, several course, raising secondaries of forward and next in equity important funds equity we're we exciting technology building us platform efforts component which are our of an two and capital our going this

return. excess First,

our As I individual investors of balance and our to our to mentioned risk underwriting goal is earlier, unit as the suite, sourcing for product return sheet. clients our our institutional same get per clients primary resources tailored own through and drive excess

products pipeline. for more the structures U.S. for non-U.S. a investors adjusted handful and, today To we've in Second, have in customization. design cases, into perpetual with product investors way. retail specifically global both families We the taken seven them this offerings and of in meet products institutional-like in and different market and individual investor consume the Individual wealth mind. offer some a need,

a We leaned through high-fee products. financial Apollo Third, professionals as often X-year combat education education. the the high-risk, are more which XX,XXX this investors Academy, crossed widely believe alternatives mark and members. To equated has bring on are we've diversified registered portfolio misunderstood that mischaracterization, to benefits recently by still in with than retail and

And lastly, commitment.

team, has to an have. commitment including made both important with -- as as market M&A, translated internal external that a quickly speed allocation to resources, and initiative, and and has via organically to leadership us into a As benefits, which that we've we couple of allowed us allowed grow of this

Despite us runway days, see thus in addressable of market. all what the early long view progress far, it's a massive we growth made still we a and as ahead we've of

Given our confident backdrop. more more challenging prospects our with to we if mature this ability faced to platforms, relative growth, in retail even market wealth continued emerging growth feel drive a

October. with inflows $XX half inflows billion Organic that bringing strong returns. of totaled that quarterly to drove in annuities fourth with annuity third quarter, $XX were sales the to Volume to year-to-date with Retail underwritten billion. to under Turning sold the activity Athene. billion was $X.X quarter channel that approximately increasing of -- been in business the begin very has in businesses

and volumes reinsurance, from as continuing Athene is distribution new as see in to U.S. a flow In Japan steady by in build partnerships the driven well strong volumes existing counterparts.

$XX healthy inflows implying billion again We expect this quarter. next exceed reinsurance inflows to year, flow

low we see of billion including the now one that we generated the third a $XX worth solid It's inactivity despite already closed that in pipeline the on has deal on see this the $XX noting entered remain frame. annuities, across group year. we industry billion total pace quarter, business, plus momentum channel opportunities, pension cumulative volume in this business For since XXXX, Athene during the October. Based generate that of of Athene's time inflows to in leading

I'll through our that, with Martin to turn over call So to results. the financial go

good Scott. everyone. morning, Thanks, And

have year another very Markets and interest laid quite results we quarter meeting higher beginning previewed, of evidenced for by marked execute confident significantly in throughout as increased targets reported XXXX financial against further remained today. as we've yet since or changed this we targets continue year. even the the at as out uncertainty, economic then, initial rates strong financial the exceeding to So of Marc we our

FRE beginning streams: With our anchored these recognition gain and the SRE. differentiated predictability, earning by two to that our results, primary earnings growth we and we're consistency profile believe of for

Athene's earnings today: three, I'll one, address announced and portfolio; financial awards outlook earnings and in business; Retirement my compensation in business; growth and growth four, today; in outlook asset Services our five management credit topics our priorities. we the capital allocation in the remarks performance of five, two, impact

Management with our Asset Starting business.

Our expense are XX% in expenses. driven be to discipline. quarterly growth continued revenue solid in and FRE XX% against increase revenues X% Year-to-date, by FRE a FRE by increase higher

on new business, Solutions X-year We'll meet expansion third with fixed the high of some spend quarter just Capital robust very a year platform achieved business, strategy. Our business track presentation discussing plan which our time years. breadth of and to its it's XX, during revenue importance on in We're to in of pleased amid growth. replacement a X this this our income is the origination the November

in growth X the Fund X considering and close its X of a the being million management than quarter prior the with X% quarter, both million $XX catch-up final fees quarter, higher in Fund quarters. included in catch-ups to Fund Specific fee for $XX

on on on business our headcount. costs, or scaling our were of in total is XX% quarter India, asset which our our compensation headcount management close in an employees and recently to flat moderation a building XXX the this crossed up in the a basis. focus XX% is in evident Our emphasis growth and year-to-date Underpinning which team

this has in technology the year-to-date of operating more Our achieving their expansion XX% as fourth than a noncompensation XXXX, leverage, resulting year are remain Combined, in XXX communicated. real versus prior margin last in reflecting investments Based the into visibility in positive strong previously we growth of on global our period. our basis quarter, points FRE confident product driven step-up in year and growth, costs distribution. estate, sizable in

our capital The to of a by with XX%, more This flagship growth than in XX% growth PE $XX current with XXXX, a on a strong expectations without middle expect fee management uninvested guided and year of FRE outlook FRE outcome expectations billion or we potential. around ahead range. the environment that raise. the outlook, fundraising with consistent Looking dependent is somewhat is holding fund between

plan next the Solutions in current XXX-basis-point Our successful improvement FRE in to We a further low a very approximate repeat growth. year anticipate expense year Capital our result. in as XXXX double-digit and margin

FRE, savings ratio issued for believe would create in before otherwise expected to currently is of award carry for other X% existing the reduction will increase reallocation stock. in we count further of carry $XXX The leaders, a value and been include modest stock compensation of a also components: to issued issuance to XX%, approximately FRE of of today PII the and a of of and cycle of create expect employees described. for are amount our and expected Marc that believe one, exchange SRE, It we and by form at average and range awards which the and reduction approximately XXXX compensation to vested equating stock with the XX% And announced majority in million This two, well additional exchange expected those for ratio, accretive will will amount reallocation in two that share around the newly exchange further XX% we reallocations. further outcomes stock. compensation senior value, and an we in our expect future have our compensation an FRE shareholders, of be we to opportunity will aligned as grand

for business. SRE the Services third net adjusted basis million or normalized million. Retirement in quarter items in when of $XXX generated We points being offsetting our resulted included spread. This in SRE of XXX line at some roughly Turning that to $XXX

In billion first year down the of from billion at flows terms of and $X billion, the $X the balance half the transaction organic Venerable, quarter, invested offsetting $XXX positive down net quarter. within more assets reflecting quarter the buy of by -- billion net than $X the versus ended of with sheet second the growth, inflows $X

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XXXX a quarter. our spread expectations close rate a normalized quarter, reflecting of We in SRE strong the fourth XX%, normalized exceeding points in the inflows lower XXX organic growth to with out rate, basis a participation for growth and net outflow approximately expect core fourth ADIP

higher services As is business budget rate. aware as X-year and its have August continuation meaningfully when of earnings growth mandatory volume from from and we we exceeding both It years, made asset returns. preferred you that comments target convertible X our the retirement issued the are evidenced in stock we by benefited imprudent growth in to

scaling business our growth asset adjusting in growth at and billion of four XXXX to across XXXX. of an normalized ADIP continued continue said expect opportunities down to low least expect one, driven buy growth for Having that, channels. be in by: organic Cumulatively, recapture that after the we Venerable $XX due SRE we to double-digit abundance

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So margin new closer much the current basis targets in to continues basis SRE XXX historical business or to spread the points is of product beyond higher better while the around Athene XXX to at environment, points underwrite year-to-date. level,

line losses months Athene's very to portfolio continues over relates with to the of last in basis be Athene's last Athene's to concentrated conjunction position. in confidence credit. a next investment transparent quarter, close also investment Athene have in its to credit that quality updated secured As fixed of noteworthy investor XX% corporate our Total we long-term XX with most points, the has just philosophy, our Athene's began strong is X. it bonds which an credit disclosure allocation quality, XX% next income in credit assets our financial credit private credit have be will concentrated in on the grade. average. historical November purchased XX originate, which that believe amounted investment-grade impairments originated opposed in Athene market week to that that in fixed We to in portfolio been It's with rated amongst high-quality income, call, presentation approximate And disproportionately the investment-grade publishing as is senior peers. losses their underscoring

out more delays be largely with remains our but capital intact at we Investor Day to timing carry not Meanwhile, relates Athene to the of investments quantum laid expected been the has years proceeds impacting dividend convertible rising we've attractive significantly of amid from and downstreamed participation the increased To issued growth consistent generated. holding its construct ago to X stock ADIP it rates. allocation, As the in backdrop a exiting to Athene. company equity private which preferred in this, the maintaining support in the mandatory August, were up

organic through Athene the of in to need resulted at in the same At growing and a by number sheer manager invest asset the growth capital XX% return little time, targeted M&A. business has on group opportunities the

of addition dynamics, capital is share opportunistic preferred Q&A. these both few the and a to current way continue stock all within we regular in additional awards next vested the the immunizing and operator years mandatory outstanding. back it's count call we anticipate available, capacity shares turn ended expect consider impacts when to Balancing all We expect targeting as I'll share today equity-based that, compensation for immunize million issued, the we with announced but over And our X-year to dilutive XXX to of the the to. repurchase back for plan convertible

of question Autonomous first Our from is Instructions] Research. today Patrick [Operator coming Davitt

within your us, the new that fees" yesterday? at the potential to I the could published view distributors that dependent your be risks is from about? on know rule business talking DOL all, remind And how address early "junk charging Athene days, but if you they're might of

Thanks, It's Marc. Okay. Patrick.

years the to and changes, years rest -- were came prepared we of ago. made different products fees industry disclosed. this features extensive and ago, actually out changes, So much industry and saw how what X what than yesterday and the X the is not

And new. not so truthfully, much

In is about terms of business, on of the business exposure of wholesalers. our through your question XX%

but that also to it's anyway. easy this adjusting they banks that have is because charge through XX% would way Another accounts, very to time a essentially already

XX% focused a and we were This it. not about X here is away up we're worked anyway. years really ways is of I rule roughly from the where think be specifically, business and ago, a still to prepared So final

question next coming Evercore of The is Schorr from ISI. Glenn

wonder we that revisit things I said. just could you if two

thought us gave You next year. process on good or guidance

the shift and we in So next four ADIP. of if are could What any quality how this gaps. "higher should if line expect into that could think we the this the were low if retail of quarter. forward. about But DOL that $XX the think should that in of year? on question, saw other and quality" focused that stop with -- talk curious agreements notion and that some to that debunk the I should we flows I'm the Because billion Inflows channels even to I we $XX the you for we are there's you year. about be Should shift think funding going because I next wonder you and of it? over billion talk shift Athene

So Glenn, it's Marc.

this channels. cost difference watching been any quality there last of the for we've no of business So XX four the years. Fundamentally, around a of in We is run funds. these

retirement attractive, is everywhere just solutions. the world, income. demand, is People Sometimes are not attractive. in seeing various channels sometimes U.S., a guaranteed channels there need in we're fundamental but for What other are the

If where be most What a billion we're trillion, XXX(k), doing country you who liquid to need people in for force in returns little there's to look we years. at U.S., for the vast daily sense. makes $X pools of the $XX instance, capital the as XX

that. And consumers know

through to it as increasingly, serve seeing as demand reinsurance, than soon they've we're to segments annuities, they or than in rate access different are no seeking guaranteed direct yet. funds, markets they to And environments don't directly done business The lifetime out Reinsurance, is fundamental. so again, serve market we us what their on other higher either have in or income. or in be tends don't

way difference other go. view any things the don't these there is one way I or So the in

choice. broader the As question, a we to it relates have

If a a and XXX% retain want SRE have If retaining be we Really more business. And our $X.XX we're business. that, every of dollar, earn choice the capital of intensity XX% we tend capital-intensive, option. to we and capital put because We the of we the in to $X.XX of to more year up. it faster grows we that do put business. because we out faster year up good on grows

XX%, and will means XX% alter X% XX% tend XX% you source depending of decision put on to we between up the to new fund as SRE We know, every that deal, the growth. we business business and that to the on which mix around business X/X and of regulatory the a have, the that of margin, XX%, that of made

And not I over to term Services mid of that only the we're is return know, XX%. Martin older. by year, expect we like and seeing this what Belardi, rate Jim seeing secular spread. But you getting driven we is a are what embarrassing grower. I think year the this At Grant we've also What team and which low, up you to detailed, is guaranteed quarter, as it's us. double-digit trends seeing be Retirement Kvalheim business are widening said for you are we're long every demand income, fundamental

to that's which to We I not XX have but in are we see think budget we what are. going. we historically. basis and done reluctant that's the investment-grade and to continue spreads is Athene we the to of continue points we for market, points, budget. But Increased XXX, XXX historically itself. speak we're XX of the basis debanking has if to above of the of the let think spread we spread, think the We we way up prudent performance how put how segment thing But will is the kind that's where not telegraph budget, scale

The Brown of KBW. Michael next is question coming from

So I the on been trying to through I have Athene. for side. higher short-term the think is the I guess on a was commentary thing tailwind rate within the spreads earnings net rates the floating appreciate asset one meaningful

any get short-term rates if end that hiking taking to rate risk the come downside perhaps we are actions you the to thinking As there Fed's about reduce start down? do closer of to campaigns,

of rate assets. floating $XX billion plus/minus are we So net

liability said excess are prudent you billion over assets. the and to billion would look $XX $XX consider rate a probably of we what growth liabilities, years years at rate Having consider to long-term X from that, of floating relative or business billion be now, or X, position. next mix $XX over we to the the net will want we floating our you our position, to the If of assets want X X

we've action that, the short-term we that take reflecting expect reduce discussed factored You with to should today. over into and that's will the everything mismatch that you near term

from next Alex The Goldman is of coming Sachs. question Blostein

good we of is pretty the was into retail particular, we the here a dig complicated. more quarter. product a some In bit the to products in seem you know I momentum have which little AAA, hoping could I bit in mentioned,

gross channels So how between and Athene maybe third across of as that the breakdown you of various the give and us sort sales paying composition side channel. well AUM of are a sort of of as kind kind unfolding party of conversations on

sure. Sure,

very we've how AAA pleased the at actually on So sales progressing side, been are there.

the So a we last in million over yet, quarter had little $XXX our for quarter best AAA.

onto week month, month we by by more sales So are AAA week, selling getting more platforms, agreements.

progress So retail is good on the side. there

continue grow up. We expect to this to

getting is the are is all my only bankers, retail platforms, And on in why all not just products, we is this for AAA, but agreements. our know, talked more selling prepared progressing. you to more how This product comments, we're just I more about more ADS, business As place, area see by about, of by these we -- region, up X opportunities. global by and as much momentum well in product, so area, we finishing selling we're just agreements signed region year our get in up positive huge focus, ARIS,

now. right momentum now. product X really have across in Like the market have families, said right So I there we positive products all earlier, we out

XXXX. classes. a asset that in a We're across complete we'll point have fairly We few feel where like the we have more lineup coming at

yes, And good progress. so

going do doing is with what similar in to we're I'm the So this to we're the of to here trying business. Alex. leave rest What following just you sense,

certainly, said offices, X plus think I be I've that traction. worth the net know, kind next in high you and for alternatives of family families, over As XX% years, uptake they publicly, seeing we're will

financial an a more think banks, more activity platform, converts XX% of may I we the where we big the and between is education. with be private day. every or say be education, is an When of difference The on only This are X% we're where one and it going advisers. to evangelical we're

And question a so product, make complex if easier you take an AAA, and product. I'll I as know you it premised your

S&P while investors, just familiar owning the the very XX treasury. PE this on higher and the something the you buy the the they've at at XX with, of majority liquidity. the or many private a same ratio we're historical up vast and roughly XX-year XXX make. seeing is You could S&P years, over are that give return back choice buy much That investors markets sharp are And actually can a thinking doing we call fine been and

the started of think get I'm what is all where now that is think performance. with where people tailwinds, just of And saying don't don't We're to of people same controversial. I education starting in period my absence I are going the point a I that the the And market down? have How look indexation liquid tailwinds? concentration? do does have debanking? on are it public to and markets invest does what mean like? what without What it consider, does less mean does it I to What way mean

generally believe asset next going the to grow think management is that you years, asset in strategies. I when at see look over you're continuing to I industry forward passive more X its management an

will returns, ourselves boutiques nonmarket see uncorrelated offer at and correlated to you least grow. others such think or I as access returns who

indexation income. fixed active in I it's the given there's any publicly-traded concentration, Harder part our left managers management. alpha industry, for is active in harder and markets. seeing, very, question very good think And think which already produce markets. in fixed equity I and you're certainly I to whether tougher income difficult of returns,

I ultimately sit. be Taking we're like too seen and thought biggest of It of what as have in to our growing. our a quarter, at In like be every or not seeking much makes strategy want much the retail Slow money steady, we're time. just point fastest concentration not so spiking to creative we but cards. It our money build which at to taking in it. the going And growing risk, again, of some I is no too where the sense. point and produces hot a peers hand to do. a we chase time mean, by does prudent market, footprint constant

from Morgan Cyprys Michael from coming is question next Stanley. The

to circle elaborate commentary, to back then specific the just business? be bit think of might be what to was most products rule. then find DOL you able I and hoping to the Marc, of you to your on aspects most can rule rule? mentioned address proposed troublesome And taken wanted And a I on what the about XX% Just you features be for impacted. may business the the actions little

demand was pull in channel. a other side for what as that be demand still doesn't maybe the to levers might you even able have change point going earlier overall But thinking I such the think wholesale retail altering to because it direct are investors strategy distribution that income? maybe it about your the and

advice like look, or is because products investors they up, offer it more for has therefore out will and distribution guaranteed have complex a off than a have do So sell. going places of complicated therefore, variety seek have of the Therefore, had I income that investor ultimately and to And buy with a options can income and Historically, lifetime you shelf. that. starts guaranteed other things. very more expensive demand something needed annuities advice been think they you

of actually these like through distribution. just sold the and direct but if was that our in are best industry many sold skeptical see on remain on practice. distribution, the changes not because product banking are We features. of of being are proliferation issues Increasingly, issues specific have RIAs. already back income I you focus I the being financial guaranteed also through in system, made years are And X the disclosure. not issue, They going products

pressure the clearly is good more world in it's be And can been will of there fee. fee. I've but to we the on say around where going both focus not think places That on other has it's have at. or I watched I'm bad, that. sides what

Take Australia.

population. world, You have in there. have fees. retirement system the actually biggest they million the out or Well, a XX all big for problem They the the best $X.X of anywhere legislated trillion

So advice. now provides there's no one advice. No

what to XX between And XX% lump-sum product, like XX% superannuation don't their know retirement dying and people distribution no people And of increasing you doesn't How up set The the do decumulation. on there's it. their lifespans? the with with when going from intact. income call government live advice they big been through so to are get what do at I'll you're that live to given yourself long however because

to slightest think a bother be That don't distribution. of going going may we're result distribution, to bit. in in believe come lower fundamental fee the I I me sensible in Small business, truthfully, this Eventually, changes piece is in place. the to

how that's change product I think it is okay. may priced, and

The Bedell of is Bank. Deutsche from next Brian question coming

the just zoom Maybe on next to guidance, XX% XX% FRE Martin, in, year. to the

For solutions fees certainly that, could getting then end that I into capital higher the XX%. of that swing trajectory just year. you the of capital guidance And as again definitely think solutions confirm, of fees maybe to or closer if end or you're the factor? XX% baked was -- to this could would be your for much I markets last year that, better you higher flat think than it comment And the on biggest just

a drivers fees the would the little trajectory that of and maybe So faster. solutions what increase bit

Great, Brian.

said obviously. best of So is what current I estimate, our sort

think continuing money all raised. to build in so work focused putting to orientation capital solutions environment then investing to fundraising And initiatives an -- Scott our the and out on we The which we're the business. that is conducive

we've and and focus. of minus could back the plus guidance strategy connect each our capital that and day, distribution I a the XXth. about of origination origination on them we'll more around the the them. assumptions Any one any be objectives or And so to the gave, so of -- That's to fixed of the three solutions made to talk of income

and building it we've with coinvest plan emphasis heroic, and repeating Is made, in But upside? I happy the the so business. X comments with assuming the out we're really over to primary the success in yes, -- on out Potentially. there pretty had, it's and growth we years that the other it's A credit -- focused But on business so time. we're is are flat. then really, to X-year of building further

is question next UBS. The coming from Hawken of Brennan

a don't services where Sorry came cost I in bit of came of know of company funds but if another this quarter-over-quarter. is funds cost financial remedial, down. down

sustainable maybe cost any you onetime what to that could drove there So funds, whether not of was the and how lower speak items is? or

reinsurance to quarter to net Venerable quarter of That's focus we we that There Yes, the had so transaction. you normalized to a cost on why of net the -- try the two. related was for the last telegraphed we look need the at benefit funds spread. in

we the And which that cost normalized then so funds, out net impacted in spread. of

I as the basis So XXX would account the view. of during like it And look ] that, which recurring. the guide but is quarter, of are takes at not [ sort the points current buy our things ACRA best episodic down

value going to this that you product, make you I'm in. or adjustment; protected use fully is But previously. charge, originate When originate a is case new in by of the product point, I've which to PRT, market locked made surrender

for a longevity. therefore, It invest you be you It you You should, willing to certainty. fully-protected gives it. product higher can funds have a against gives of because cost

four look we we and we good try of low if can of we low of can earn the cost at spread. investors, have a four cost if channels earn if we have keep we investors, because channels, if know we're spread. We we're of a regular different funds funds, each lot and basis, a to on not And our good

our built environment, to the the and to the is number a business now the environment into seen business books happened get value because what we back of behave buy way or the of rate this entities trying in late What's therefore, get to rate are a intend sensible and market they into The rate adjustments back you have market, predictably. to in have low the is to low surrender who in game. in of a rate have charge may expect market degraded with Buying book above degraded business. is be contract book you business a

kind of in of to the to funds now, all cost quality And excess on low cost simplifies people market the and about in hard as in complex is for funds the that of a retail of ultimately cost a very to you board. But we're spread really buy are encourage secondary tells business. that across of of It I book you push Having know for you of business funds is We're of in need someone the business a a pay buying. the what business. important. right

from The next question Ben is coming Budish Barclays. of

I the ask of I several It's the many do there's and out wanted like, get normalized going to call we Anything past normalized there? on what of the drivers so? time some been might trying forward? always sort to particular back And business. the And quarters. key to about expectation year alt over sort Athene XX% that to any below return the triangulate what look in kind of to of for sort might of spend it the that. or components color think you know

Sure. -- About bespoke is to be quarter funds I last The And products. would other, origination X/X up hybrid-type other the about quarter of as different made remaining which direct alt our investments. say, and -- and would the of the portfolio is you relates then half know, XXX platforms. positions. About

said, that. in been quarters, a given broader that bit But as call last year the we Overall, XX in concerns fundamental in deliver XX seen -- slower there it, the just bad really appreciation XX% always portfolio we of that at see good and still of in market. year, as will you little about look expected what's you've really we've that. environment, portfolio couple plus. The a XX of really as and The there's being, deviating from X to sort nothing a no

Mr. you. This turn I for back us of to it end question-and-answer session. will over the to closing Thank Gunn brings the comments.

call. Donna, and joining everyone, morning, again, the for Thanks help thanks for your Great. this

couple Origination Investor on XX. and a you would X; mentioned Call next Income of Thursday, in reminders. to encourage November Just November that we We participate Deep Athene's Fixed then Dive our

your discussed as time. Thank free out If today's to you on have us. reach call, any please questions regarding usual, you for feel to anything

Ladies and gentlemen, this concludes today's event.

of may time, disconnect You or the webcast and at rest lines this the off your day. your enjoy log