KKR - Earnings call transcript Q4 2024

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Operator

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

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

Craig Larson

operator. you, Thank everyone. Good morning, our fourth 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 share we . And segment adjusted our reminder, an report basis. as a on numbers This guarantee performance. call will future which forward-looking not do contain statements, eventual our and these release filings earnings for about our to refer factors SEC statements. cautionary Please

in So solid beginning is and at from and per XX% at is up Fee-related share with second a our our also XX% figure is That financial $X.XX results. ago in end and earnings quarterly highest the We had came in came $X.XX. our really up share. year year. year-over-year figure That second is history. history, to in highest the the quarterly income adjusted net a per

per per figures for compared the both annual to record share respectively, For are and XXXX XX%, $X.XX FRE share and us. up and ANI year, and XX% $X.XX, were

So equity a deployment. as monitoring million to a primarily driven as our fees Total of on well particular, market our the very time were revenue, and with the have period a in year-over-year, in by Markets in That's million alongside within deployment note Walking activity conditions improve. $XXX begun in little transaction in quarter. breadth ended at pickup us activities more just strong Capital came to in detail. fees, quarterly private XX% by driven the transaction as fundraising a of infrastructure. $XXX QX is fees it in the year results healthy through growth million. up where during felt of Management $XXX

Fee-related the were million $XX quarter. performance in revenues

$X.X And XX% that's so revenues aggregate, up and fee-related in billion, were year-over-year.

expenses. to Turning

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

earnings as last earnings I mentioned XXX we So operating XX%. ] in right levels operating Strategic and of margin these Holdings $X call total, with Both [ quarter. our million of $X.XX million. fee-related Insurance or line $XXX in were were earnings a ago, in FRE with were discussed figures an minute came on per share, the

earnings. operating Total

recurring earnings, As again, for share, our a per earnings segment fee-related Strategic comprised insurance operating operating the so of the comprised earnings, these XX% and KKR, Holdings earnings of for almost our were components total of durable and total are reminder, more $X.XX year. earnings

$XXX monetization Marshall total earnings income dividends the up Moving and XX% interest segment, and as realized activity was Asset income for investment performance was to by fee was sales activity as strategic a combination This year-over-year. investing annual income driven million. $XXX Management of secondary within almost of million performance million well $XXX our realized Waste. and That's for transactions,

So were investing in $XXX million. total, earnings

performance. investment Turning to

over to And estate Infrastructure, that, the credit $X.XX assets, from year. earnings. the turn practice, XX% the increase the in The our Page the You to annual for $X.XX X% can we the dividend equity in the call up and for year. to intend XX alternative was quarter quarter XXXX portfolio performance share, will up leveraged composite our X% with And historical the consistent and I'm for then and the and were was first here XX%, and composite in quarter up for year. up credit, X% in the details our was In of earnings XX% go flat up both real see QX portfolio which up the finally, per with and into alongside quarter to Rob. year, credit effect pleased X% And XX% release. the on appreciated here opportunistic private real for respectively.

Robert Lewin

joining to morning. into as all Craig, just from Thanks and operating quarter we you call today by of walked confidence our lot, us signs head very metrics XXXX. fourth this thank that continued KKR through, begin we I'm reviewing key momentum our had XXXX going across the and quarter some that give results a seeing Craig for are and tangible a the our businesses. strong

first Let business. asset our management me with start

quarter, by relates business lines. activity it raising raised diversified each efforts, which to As this driven across we of $XX our our capital billion was

billion. uptick in a active $XXX That our CLO most in up and in is our and meaningfully history Our real an strategies. momentum finance number the also new together continued private we billion raised equity direct businesses is approximately And assets across year and vehicles, saw XXXX across of raised the asset-based that $XX credit of capital XXXX. billion $XX second raised capital in from for we formation. and Total lending

our fundraising In we progress. American equity super we are where we fundraising, our of thought ahead are into early-stage months we seeing X where be point at only this strategy, are cycle, time. we North in we are would private While meaningful in

like American a And in billion including strong across months, flagship the Taking first called. we $XXX Our we vehicles. only Client the continue and within Also and franchise XXXX private feels year newer of strategies really of side as consecutive benefiting the encouraging our was raise raised over as in equity are private our our asset-based XX% investment equity climate. fundraising we back, more infrastructure, our to steps such particular, alongside IV clients and car efforts us for was past that capital our note, the have performance. private our returned breadth of step insurance credit, funds. new as XX to eighth than here capital from well from in flagship finance, North of strong classes capital areas asset interest

to Turning wealth.

at year-end. compares to And billion including activity $XX AUM of now We vehicles as just scaling with a XXXX, are X, which at billion January seeing continued our that billion, Series K year $X ago. closed we are across $XX

will Looking offices net approximately towards launch a as client and as new track mass Group family universe. under largely in assets of credit X our now expect expand half high to by we worth the looking These credit developed exclusively our partnership $XXX have well products reach hybrid a Capital to with broadly, more affluent. clients billion the are XXXX. continue as ultra base investor we And management we targeting the first individuals, of of ahead, the in from

to which several coming same the continue classes, work At on follow we quarters. over design will the other asset time, across product

from And the perspective. that believe So this really we we wealth feel just a good is about where do for are us. beginning private we

to monetizations. now Turning

Over equity backdrop of the noting strength signs past XX% debt volumes of and M&A billion income firmer in respectively. couple up realized global over an our of evidenced is investment Overall, improved monetization our increased This and gross figures markets. year-on-year. $XXX and and million, XXXX realized over $X.X quarters, income we've been is performance with activity

now private significant This $XX by I'm invested XXXX $XX from was of up of In credit at billion our market and XXXX. compared a we meaningfully a rebound That's driven billion across along ramp with capital. in to in $XX deployment. XXXX, looking strategies. many billion in

well do constructive feel As we very we into head environment, positioned. a more

private $X of the saw bringing at our another the especially the for just to $XXX result driven. deployment, strong activity in business current and evolution a This million, the markets levels, to revenue milestone total XXXX billion equity size roughly in history. capital only this major largely time is business the quarter relation of years ago first and As it in half when a the was was X business our

Now course turning XXXX marked of the KKR the year. increased to between of owned connectivity and the first year XXX% Atlantic that the only over Global GA and insurance. we've

to opportunities long-dated increase estate in Global is that invest to see as and infrastructure even to for we at our investment more seen businesses GA strategically You've the against source Atlantic scale. like integrate, strategies liabilities And able continue equities. real opportunities

on finally, minute. holdings a And strategic focusing for

a this accelerant a Our us, announcement morning the this for big and business represents strategic segment. is differentiator further of holdings

piece really up we the least by will our $X.X to know increasing well, This will be and in fees KKR will X of assets billion. interest. businesses while invest existing will additive which management one holdings, billion, and be at fee-paying be strategic under partners. will carried management future stakes of the from and show remainder that like become We will $X.X strategic

of to long we course businesses of that see to growth years, As these and cash over are and cyclical high-quality They own reminder, underlying are typically Today, have franchises. the attributes. teams. these few invested the we're last X other the key have whole term. want a have In across for continuing the behind over the be businesses to companies that name the we've consistent XX we management a generative, just less leverage period to words, lower tend

context, third share as of quarter. these of KKR For businesses the

basis So generated $X.X revenue XX over billion this months. approximately and EBITDA trailing is $XXX million approximately the lag of on a X-quarter of

by have in strategic lean employees opportunity, a believe strategic $XXX additional portfolio, no $XX with preserving driver sit come. are We And strategic a with year earnings within XXXX years that purchases, for million and for collaborative respectively. our our across aligns unique holdings anybody which be XXXX continued our well Alongside operating We hire our holdings focus million in these $XXX-plus future by roughly financial to really each to Remember, million XXXX growth strong billion, of to on introduced to truly new to will $X.X-plus increasing and guidance million $XXX-plus KKR for and culture. holdings. into performance performance we one-firm we didn't of ago this

growth durability that a our the out hopefully, sense believe XXXX. gives don't there give to the corporates outlook, that our you clear for in of and confidence And this I are business. many very trajectory guidance

off me With let to hand it Scott. that,

Scott Nuttall

Thanks, Rob.

just this that despite at is the forgive through, analogy, is how progression and think couple a all not about want years. this call, have the of punchline to you running runner, And and progress it. our Craig sharing numbers I spend feels the been I'm a inside few you've I firm. took we but last Given of how year-end pace Rob The is the and the it full minutes seen the

let's to we way, fronts. multiple are we're another up do minute our mean Well, the back Said feel at that. by for it X like operating a on does true picking speed potential. years. What last not I go yet But

want context XXXX. far sellers finance some have ourselves, did apart. not you assets, dislocated with buyers 'XX, market. assets for of In including and or Owners we'll a in XXXX, Asset So Management sell and in to were start

muted. of just for launching and deployment, us. the the were markets year. were for market greed So was wealth than more more There closed was Capital in fundraising fear large private monetization portions and

figuring it out were utilizing At was in all still not the little on We KKR, still at was and we firm, possible. Atlantic, and still And were what portfolio ownership. vision could the we Global maturing of for we what approximately were holdings, the were of earnings be. and strategic generating working cash XX%

So we bad running in short, in terrain weather, on and rough were gear. new uphill

the M&A the things market Now in in XXXX. and last in gearing the back each election market half. saw let's The slowed up. to the started down we turn distraction to first Management, for again. the In and what open back half. back takes half market began was that's sellers But time then on, finding first again of go the some other It and to Asset buyers usually year

us fundraising Wealth the normalcy, team possible. you embedded being we see nowhere was Private super year full but many more of were it didn't hiring with we felt only added and a And saw for the more platforms, steps getting on/off. first a cycle. our and still while what's to ramping in So near bit

we KKR XXX% the early. the you even to heard, and hospitable basis. continue year spent It it all In of but on last year. and Global as and became deployment doing than in ownership the truly And the we Atlantic, was up out opportunity dividend explained April clear faster how holdings, integrated how what of In could and it GA be the a it But to expected. together were to earnings overall, market. full beginning at So optimize. portfolio a on all are an compounding throughout all what fundraising not and sorting last flow materially year. Day strategic in of use at monetization we and we greater year, then year got market focus our to Investor scale And learning dividend was to year, was we

were we intermittent gear. year, sun uphill was with year. XXXX a We rain So how we and still running well, are good a our executed not new learning great some after use reasonably but to

XXXX, how be to conditions we much use built. But were smarter model than got we've clear, the to about and better overall

it heading market and increase momentum Asset Management, platforms. funds. have asset more into talk fundraising across about opportunities feels should more up, exits in and we're In broaden time across more XXXX. are number possible, and let's pipelines progress, how showing XXXX Private So now, and globally and see Wealth classes. see with Exits even are deployment is flagship at a seen flows the of the we our real and globally exact we

to our to Group Capital expected launch credit, asset And with follow. partnership classes is in soon other

this XXX%. for we're us. At year of after significant a much smarter expect partnership owning to Atlantic, We be now Global

markets examples. capture to capital to X assets, Asia than the opportunities We combined global to fully the of and we what model are areas. shifting more thought. a power in our private as and see market use strategy opportunity we see more integration And longer operational in could across we starting duration, more just mean. that We're the more There's emphasize path

And be. in is and is Today's the compounding can announcement dividend see strategic could this a The holdings, opportunity potential start. scaling just of we what real. really

We're rates geopolitical, sun could, hard are We're flat some on and good. work, of just for picking years would running few. is a where we're comfortable name last we're impact now? political, The course, and the forecasts and road. this, gear. we X of which So Conditions new up conditions stronger in The change, speed. to inflation, of our out, are

with on KKR, culture significant earnings combination at people asset The the of That's enhancing different. model margins. opportunity recurring ability increase grow massive holdings and our plus with clients, insurance and is purpose. model business for strategic plus a further management KKR's a our remember, addressable create preserving to few to But additional perform market, and

there out take still happy questions. optimistic your we're and So to running,

Operator

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

Craig Siegenthaler

the on is across firm. the question Our outlook investing

a So but little macro ago. challenging the stronger, the XX become has consensus more outlook always days for 'XX versus was bit

this see can You in XX-year VIX. the and the

investment relative the here today what that is the sitting have to outlook the So for to some in been sensitivity has of And macro developed. what January, last trends year? XXXX

Scott Nuttall

Scott. it's Craig,

one. Let with me off start that

not has Our changed. view

of maybe think of an last I think you'd talking were when come very on see up then get we 'XX, much M&A a in done perspective lot and end the 'XX in hold I at transactions this put year. see probably year, the into heading you're improved the that going to maybe didn't was the market. got that our still That we the late expectation is 'XX, environment back pick to M&A market

We lot out we we're creates that expect to that today. as through doubt. the try be signal, perspective we and . And as a of remember, there's the figure here that But no going noise nothing there's seeing volatility noise, us, sit changes to for look opportunities.

we expecting think the volatility, interesting are but us. some more for be will that even environment investment make We there will

I the prepared heard you as optimistic, our global remarks, remain think in business no how is. we so remember And change. And

see opportunities in investing, just we're lot about But expect but world. monetization are of and more what U.S. around think So fundraising. not if the the more more the you you telling we a we

punch so everybody kind keeping hasn't eye on line us. And and keep the the changed their for ball of really

Operator

comes question Benjamin Barclays. next Our with from Budish

Benjamin Budish

little about about start, terms think bit update in follow-up just XXXX some into fees, we question, a But about thinking we the the activations. X growth on you us year. broader sort of growth. should that could fundraise. tying fee of timing think XXXX dynamics items, But how fund There's on give trajectory of catch-up outlook. just the maybe those management on and curious the Americas the XXXX, with how Americas should into Maybe a Maybe obviously management Craig's an of fee of lend

Craig Larson

front-burner close us is Craig. take pick to capital still we management start? it's prior Rob on Thanks the is fee asking some as Why details, Americas know, don't will noted, topic had period And Ben, that, year-end. private a about did for first I as ongoing. into getting for the I'm sure Rob the you without up as trend. equity

As up Rob first been expect with QX in close encouraging. ahead noted, we'd to we we're do which where the here. be, thought really wrapped And we of definitely has be

expect news So should shortly. here more you

to progress . good good So more with news, to date come.

Unknown Executive

management Then, I'll pick up on side. fee the

growth been management strength know, you As fee has of real a relative area us. for

we you in We've of as were If business noted, order but we're And at but as tangible you step expectation to we're here. maybe to you to we lot look we look of or hit obviously is look the in $X.XX-plus real got Scott forward, that execution there's going plus happening of up management the do like as XXXX. a years, XXXX. fee management drive buyout growth And our over well target past to minus lot around other now. back good grown of a And growth of our And think still lot need XX%. of able in and fund management real we've that, Americas our across a in We X acceleration share fee fees CAGR we to be in can signs fee midpoint It's got done. feel growth. things get further lots confidence off to right a see of some management Current that to FRE target. per that, able [indiscernible] level. a at positioned a achieve being XX% from year, back

Operator

Sachs. comes with Blostein Goldman Alex Our from next question

Alexander Blostein

have, on I of maybe just I today across owns the to of the looking that was announcements, you percentage you sheet? owning is portfolio is comfortable right KKR time any the that important you're now balance strategic an percentage would sort back to guys. can now, why you obviously, walk for companies hoping time? XX add us feel holdings guess, what when you what go portfolio why the we over through Could And company stuff

Robert Lewin

Thanks, start. Alex. Why don't I

So first, core of the of owns strategic private the to XX% question maybe your last businesses. Holdings part directly roughly answer equity

Now a believe and articulated often how differentiator as an roughly management asset our we we've model. add holdings that allocation long-term a per to is business on It real incremental can that business will whole, we our XX%. accretion as strategic talked earnings from we've recurring share. vary of view and to capital for top insurance business about Listen, drive

we opportunity larger well that and we buy an that our accretive saw believed X share so per a And be able in know to do that. to be excited we're long-term really really stake would businesses to we to earnings growth,

Scott Nuttall

it's on. I'll Scott. Alex, Yes, just add

reminder, holdings Just in balance as to our private strategic a the is at core today least equity business. what's exposure sheet

that look And that your across first so question, there. answer to that the we're on you whole We had these incremental at last platform. roughly -- investment X/X that of making. When partners. we're X we created partnership the capital This

One be us. to large insurance partners going of company of investing the is [indiscernible] our alongside

be as add-on, And this Rob remarks. prepared mentioned in the in so half we'll capital the of

and a in nothing to And about mature. companies, dividends they that much to terms instances. getting of these paying the the feel meaningful timing, of continue already We are there's closer in about couple it. magic They're great

to a can as so We look had for it continue like get and portfolio felt lined so be opportunity up it what partners looking And and to that strategic good time. were at holdings liquidity scale matures some the the us. nicely we -- to

Operator

from Our TD Bill with is next Cowen. question Katz

William Katz

click could into opportunity. management wondering you wealth maybe if Just the double

about the constructively from here. spoke outlook You very

perspective, Just could scaling I greatest wondering platform? you question a as you further And a channel. dept-in-depth your just that distribution a see outlook we sort was the line about if geography expense it's wondering the a a fairly from should or of product to of tie I or for where other the opportunity? multi-vector sort of know think

Craig Larson

will I add Why then Capital on Craig. Group. start? sure I'm it's Scott Bill, don't

back taking step level a everyone. and setting just So for

AUM Global billion of not of number, individuals. that policyholders include about be at Atlantic. does $XXX XX/XX, As to had just clear, we from And

offices the So individuals. understated that worth largest with as figure most high part if our about we and breadth from would of have and net activities of the that capital is presence and worth probably you in be ultra anything, that have our funds individuals, high family net that over invested think The mature time.

growing that for products. significantly specifically to is where relates that lots for Series And designed investors qualified pieces strategies these and are tailored for room as the growth and well as and of the still investor the of accredited funds we are see One wealth everybody, again, purchasers. K just and

XX% million, goes subscriptions. noted, Rob and XX $XXX over as include Series January up and you K are XX so as the from And if products of to that the XX/XX

So a just in of terms couple of K-Series, thoughts.

XX compares that a again, X. First, year ago to

feel but days, really good we about early our So progress.

is as these classes. I of true asset billion we in total, infrastructure market Infra equity, in PE private and classes particular, have are both last in think those In which asset investors. share newer of in as in for for $X well that year many over raised leading

launch And growth more conclusions the strongest in we again, periods did tough again we recently, billion, our us both But in and equity $X well And for the month presence. more in as terms draw raised seasoning private in numbers its from of BDC as private over in it's to total, short really much fundraising January, infrastructure. of in broad time. younger

of Capital the there's And and and out again, distribution term we Scott on another terms in longer-term as XXX(k). long record, them build let think taking Group, and historically. opportunities even access opportunities brand, of there the we've touch near-term for retirement I lots growth partnership significant piece coming be track for for of marketing, grow, opportunity continues that's do with been investments one in strategic K alternatives a us in that. it's strategies, so our to is affluent these about And think, over back, us and to I'll we of then the step easy made lots is given And that the we to not series scale believe think, and opportunities a our investors, mass years,

Scott Nuttall

and part optimism belief does pleased I like started broadly, more reason our already here, our you're the Bill, it feel hearing ahead Yes, think early of we're we're getting just of is in that such expectations. we're

put K XX all products out product just the real to areas, only credit. mentioned estate really X in series across there context, it So last private months equity major the the and Craig across we in got for and

So it's us. for relatively recent

We IV also in market sold being to our the net as worth have vehicle also individuals. high

big So product is there's that are coming ideas and more of there out a opportunity, those conversations platforms. with

have I So great and picking we're we momentum said. early pace, up as

Group XX% called affluent They of expect doing partnership that over the which Craig that gets Capital think more other been to [indiscernible] fantastic Series be we mass the partners than investors households. and less We and for there together us U.S. Group. The is U.S. you is goes really Capital the XX% should a something be Group mentioned time. put U.S. have households, Capital that's opportunity context big in to our of firm. will K to a and

we're with at expenses what this question. early, the get do the Rob, we larger really hit just mean and from it ourselves the it's It X, you size XX about want think look more we and So can continues the results. for to but now. time pleased than opportunity years And spend. to as

Robert Lewin

grow roughly as as bit of it placement we to an able of was margin pace forward, number We year, those last costs, operating were, that -- distribution-related know, this operating as part this K-Series the year. any uptick I'm KKR. pressures, with that's upward OpEx quickly, a real just little expense an to sure you year. reason distribution our Bill, our look ROI expenses, fee is XX% costs, well of show And have and in growth, to which as expense as even other clear relates operating a you from related some we that and exceeded why at want Sure. spend closer about we a at and say, here revenue XX.X% I our were we to saw Yes. fees

expansion and try than from up good overall . But we So be for our we're complexity firm to taking generally and the going base at do on opportunity a that, on. to those and our is growth a really job expenses, we'll that able be going other see skill head to do across continue good to a the vigilant the count operating we because model. margin here further to level really do meaningfully be revenue thing that believe we exceeds the

Operator

Our next question comes ISI. with from Glenn Evercore Schorr

Glenn Schorr

A question Infra. Assets Real and in

You diversified platform that very in a been obviously grew these huge There's power. warehouse data we've TAMs big seeing data well.

Capital, have have company recent you some partnership power with You Energy acquisitions. your recent

addressable future question changed heels building way my the recent So about demand is, tremendous and/or market? anything what for on think prices the has Has it you everybody on data-oriented seems changed the of in assets [indiscernible]? paid to be in this

Craig Larson

don't with I we X observations. Why Glenn, don't And start? why high-level guess begin I it's Craig.

first, that and increased in result and the can adoption thinking industry, a innovation would of I'm general, that week, And earnings from calls that think across drives and result is a times heard can on in greater number last of this you the that. I have obviously efficiency thing. demands good tech some

to data specific overall generation, center more and and cloud the just second the growth data And in much with a AI, business, more need there's for compute.

little that is data long and in center demand there's growing. question term our infrastructure, power So minds

in really and our noted, our we really DeepSeek for when So CapEx the as questions think the it's you probably on demand great at with how anyone a things have look too of favor. our approach, right? around spend where, view portfolio really and we we like, to have working number early much while and that -- a introduced and focused said, on Now side,

we So to underwriting. not AI first, our value did meaningful demand across our ascribe X in platforms, original any

in in thesis So space, The -- as entirely driven example, and have the that a demands that cloud all our our look was that XXXX. been largest critical the growth by take-private an at Other AI, AI view. the really investments, again, announced by CyrusOne point upside. in rather, And that investment in dynamics was our been cloud, more we matters at. driver. has recent things driven Location not examples,

to has replicate so centers locations team on are that we been key that difficult approximate And our focused replace. be or to population will think

build We the at platforms. do speculatively not

CapEx largest, on terms world. And one some downside so you've own are as in terms type our does hand, of And of we a again, heard have for number where, you'll enjoy see an investments, given once exposures, scale you we in capital instead, security and counterparties in and really view, And theme also us in most the is the counterparties these a then contractual matter. structures. the that's commitment remember, these customer in critical protection the the from opportunity creditworthy of us. our this It's calls, of in often look,

we today, Asia, Europe, basis, the East. Middle enterprise owned be total would center data billion. And a value XXX% here platforms So in about on $XX U.S., have

So it's meaningful.

the portfolio to Now at our pools you same we construction diversified approach time, of have across capital, know. a as

investments So X% in are our at about of the these across total. XX/XX, AUM infrastructure platform

us. continue I developments continue really this to for very we again, So theme hope to that's We'll to watch be closely. expect important helpful.

Operator

from comes Fannon Jefferies. next Our with Dan question

Daniel Fannon

of you activity this XXXX and and about you a year? seen start talk thinking Can we've what in positive which is that you're And see as periods. gives really more confidence, to I how that outlook you how previous what assume environment bit it progressing the versus we monetization on level a

Robert Lewin

monetizing We've helpful and XXXX really to are been I is equity environment. at markets for context pretty values looking the pretty Dan. very up We they've more monetizations Equity our tight healthy that, for XXXX for relative comfortably. really at look conducive our high. the in question, probably the spreads availability also a are what's see high and environment some do time. Thanks Credit today as as quite through even overall it's monetization at pace a challenged been to been time some around think industry. in

this private up so data were our as carry, X/XX. LTM point, a and of number look if And give a at you XX%. is you We equity realized

we think peers. industry line Our more public peers is were roughly flat. in our with much public the And probably

same that I monetizations here. across XXXX. can you think I exists the think client push dynamic so unnaturally maybe pressure And some see to in industry, don't

And continue back 'XX monetization we expect the that so increase 'XX. to while also to monetization expect to of and in we on in increase XXXX,

So very we'll healthy portfolio. a got things But move around. can see we've

like been as billion, As firm positioned really linear helped you theme point We a balance ever the for have the high feel really approaching a sit on $XX embedded that returns deployment investment sheet today, as that. us. to and as we we're strong. our has gains know, have as by been well across close our key evidenced

But able you're to need there's you're an so somewhat going benign here lot in to us that the gives And over a access confidence to monetization. environment going to a of see time. uptick be relative that that

Operator

Our Next Stanley. with question comes from Morgan Michael Cyprys

Michael Cyprys

to you funnel platform Just us could was evolving. maybe And year. made of how a and asset-based you look give us some I do that as update hoping years, past of over the this sense coming sourcing you see going of finance. a the you -- to And be to maybe The of next you further as the just more bank kind give you the together? you of you maybe out expand on look guys question sense 'XX, see a for the like partnerships are that on can today. you little progress how bit ahead over steps can us of couple flavor taking a the

Craig Larson

I Why asked glad Look, Craig. don't start? it's about. you Mike,

us, of on that. page out Page for to doing billion We and or a so of first, strategies. quarter do AUM. So portion our our credit second we'll release, started for this 'XX. XX that We details continue is Obviously, break liquid $XXX of this that of

So billion billion. of got billion, compares to we've another direct pretty $XXX And billion. in impressive $XX rate. to about asset-based $XXX at In asset-based numbers is 'XX. XX private And about total in about The that roughly $XX $XXX finance. AUM QX continue piece credit those credit a lending. finance is of That grow at billion

on business year-over-year So we're rather. up over a basis XX%

So big healthy with growth. businesses

have void. leaving look, a to in outlook, massive ABS high the way in creating a $X view, of scale $X a entry, trillion question your barriers you lack is to market, this its of view, that's on terms trillion market in In of lots folks our capital our think I and

finding attractive we're risk So reward.

lending we're feels for direct It the have well away the of And that opportunity. this this think we clients way do corporate just in doing integrated like clients us the as ago. land global education positions I some was like the innings. credit our firm, ways, it's really it from though fully In the regular years X relates that as X, that by in having like into everything framework we're our and feels to continues. think I diversification early think it asset-based finance

-- And their trends to we I think activity relates expect partnerships, banks as to bank we continue. and it the broad see

industry, very and capitalized risk-weighted I think overall that that ratios a up. you Capital are amount to look well. healthy know in we a assets right? of the brings finite real focus this are banks and I What is generate ROE liquidity, when to ROE. today they banks have know on have well

are going to shed. [indiscernible], there be almost going they're it they scaled allocate of additional may a are like these to be And to bank Because how recurring originator. business excellent feels opportunities aren't economics, where But an can RWA, And be to creates other and lines holder. and be So they're revenues, going going if excellent be us. they're for to make much optimized, between. it and decisions banks ways, an in aren't if going or be others their they isn't not as that there some some in fees

so change. view, dynamic isn't our to going in And this

for at Now the trends, activity but the margin, again, changing, maybe see lots us. continued a of little we SRT aren't opportunity less broad

Operator

Steven from Wolfe Our question Research. Chubak comes with next

Steven Chubak

to So outlook. the a ask fundraising on question I wanted

you billion flagships Asked fundraising noted was and just from one from a quarter. running of $XXX with guys similar that and Scott, tougher analogy, contribution you last borrowing little conditions. the achieved that market But some

upcoming $XXX should some target some strength continue 'XX, better cited, of hoping the 'XX. I of the of So versus could in the sustainability you drivers frame potential given was the conditions cycle fundraising billion and fundraising that you that into super upside in 'XX, whether

Scott Nuttall

the specific Yes. comfortable 'XX. our to numbers and as know, Day don't those at course very shared -- of numbers plus had we try, We over 'XX put after with you them. We still the I'll We're billion on don't this. $XXX-plus Investor Steven. out

think part hearing of into in think of the terms optimism last we reason our is this that the In are number sustainable year. you're voices of sustainability the of drivers, the I things you year saw

grow. So continuing Global to Atlantic

seeing across We've Institutions aggressive and optimism favor now. which I'd private has view out equity like that infrastructure. back. there's that And bottomed. estate more private a being and of real capital more universal capital areas credit continue around more more they're now getting across equity, been seen We're say that deploying had

in interest more that well that's there's so class emerging. just as asset And

we So a year. and a Group and starting last we of frankly, optimism Capital more momentum. than had just Private what saw bit Capital continuation last Group wealth momentum out. year gaining

And together all so last you say the continue over kind this everything year, put will we we expect that of of next. and and improve or saw course year

greater to market a And percentage top the got to going that, are of flagship for in your of then the year. you've that the be point, on funds

put what that they're the that to get that's fed seeing. all us And hearing about we [indiscernible] And reason monetization be money think improving. and deploy. upbeat that more to we're you're by so all the when back, going we environment of gets of look part more together,

see I number going ever, we was everything if that when mentioned, expect, backdrop we we that the we're you'll just a And execute and to goes. But it to feels was a to where the up. environment raise you imperfect. think think momentum. it with we frankly, our continue So can't stays managed [indiscernible] as second look I best as at increased give like we year we

Craig Larson

this. facts, just I'd thing Only add a couple on fun of

breadth the to platform. The first the relates of

our we the It's in Americas strategies, firm. we interesting of across series, you add raised mid-market raised if statistic. new private in equity more that the X% 'XX represented so So capital an PE, traditional up capital the [indiscernible]

initiatives. Now think a capital of growth it where done raised And XX% our there's across we speaks about KKR. running to real lot feel across to well. the But development of came we credit more great clear, in think the contrast, businesses and all and those room work as assets the we I be from

know innovation. of in X/X XXXX And our continue strategies exist opportunity and years the in the Again, opportunities knock about maturation ago like that second for KKR the our within on did grow. remember wood, claims. speak the in of then capital us that things piece X didn't with there in maturation the group, strategies to I for raised relates to capital And will be Day, you'll at to an we continuing Investor and were

of statistics interesting. those thought be again, just some So would

Operator

question Our Mike comes from next Wells Fargo. Brown with

Michael Brown

And call into leaning you're trend popular has what been are about the to PE good. opportunities why land, out that the themes private I the or on now? questions ask to theme. some buyout just that return Slide then flat to that? of a thinking XX. something full XX% the is here? certainly on flat Got year result key about does quarter-over-quarter, public return the X% there the very guess performance you quarter-over-quarter certainly the kind of drove And are How But wanted some I for traditional was of

Craig Larson

broad don't big many QX difficulty at evidence looking I start? of in why Mike, indices. ways, Look, the think I

the And So billion. look, $XXX QX. name S&P S&P is X.X% in up was about cap market average

I think up in a quarter, we're the the Russell at XX.X%. you was dynamic is was calendar the was look in when one of contrast, that more that the greater Russell and it lot S&P of in that's opportunities course XX% flat portfolios even up representative you XXXX, if pursuing, which and companies and over 'XX, many look ways the is and

to business. broad our -- the in we any conclusions, tough and look numbers I feel over So good to of of performance actually traditional period at heart question, execution but we to XX-day PE any about it's think really broad draw these your feel part the continue

'XX, think across in true I broadly looking vintages. think and that's I that's true more

Unknown Executive

a and are cap you're if broaden your a to But to part enjoying not I'd billion management billion some there's the market of we're don't left little Mike, a the a teams $X a there's are Yes. private is doing public reality. in of attention. lot $X quarter-to-quarter getting in community, say second the same I'd And the we're it. what analyst opportunity just of question, of you smaller market. you And can from get dispersion the space lot finding attention lot There just investor number from it. a of industries behind Yes, are that community, that get company,

continue And big a that which see us to. as I'll so back we globally, to come opportunity for

say point not would carve-outs, to also I stories. that want corporate I'd type of have transaction, to strategics simple just

and is looking subsidiary of complexity to if our nearly their so something And they've investment carve-out. history maybe current performing equity over actually some in that best sell corporate our that's those. XX-year type that's been they're creating private fit operating And narrative, got doesn't

So we're opportunities seeing there.

to a going see more LPs is sponsors sponsor also look this this global as And back I activity in you're think environment. to give opportunities. of I to to mentioned, as really their sponsor set capital

maybe are there Japan, European is in had been active relatively So continues open a up. particularly based Europe discount today. that a number at we've global market that of companies operations to cheap that trading

deployment So there's the do different there, views is of [indiscernible] we very see around to lots us ways the world. attractive. opportunity but express for these

Michael Brown

moves definitely Craig. point I just the the bigger that one data quarterly you, about trend. are thank And understand Scott. Great.

thank that. you for So

Unknown Executive

Mike. you, Thank

Operator

Our next Vikram comes from HSBC. with Gandhi question

Vikram Gandhi

question really My GA. related is to

the quarter last at versus about that was was adjusted considering even Looking capitalized growth. group the quite had impression of GA growth the capital it that appears in each the been million year. $XXX The book reasonable value injecting I earnings, well has a operating

growth So run forward rate about I earnings in think the wondered how should we XXXX? going for the

Robert Lewin

Yes, I'll Great. handle those both questions. Thanks, Vikram.

XXXX. contributed So first of thing, in the the course capital

on kind, see look sheet in that funded at investments we going could the the that balance we also some management said is really when across January. as conducive to of be in transaction of see the fit to balance an sheet. that on so Some assets then some balance also was insurance company sheet, contribution KKR to what company were And we better time contributed asset insurance frankly, side you the what original capital part early an

we the great that in our front about to inside the evolving reiterate P&L. really remarks, was our through are go build Scott continue bit, back today, also our performance, today and clients, ingredients to behalf feeling and us. about profile. then approach taking teams said that on relates and on to our unique And the a highly how is a of franchise. insurance And we're out that means we our elongating in we've it opportunity talked of what As to the what reside of seeing liability me coordinating you're think what liabilities, let play profitable is broader I longer-dated prepared firm all so are

that, the of more advantage suite. full doing first As the time of investment for the a we're part bit breadth taking on KKR's really private side,

believe, this time are And we've and we're what transition. very for in origination many yields But down reason cases, as P&L and you're so ROEs got accounting they've we And is to definitely that capabilities, we outcomes evolved the perform, going the definitely, see, where differentiated if ROE and got no better really doing shift. yields. we we've modest P&L the we intentionally, that bringing and from privates over we'll confidence and some of got is

economics time accounting underlying subdued you're naturally, the about the good we when to see feel even going so at And P&L.

And we at it. are the shift. good what we it's time, the the is to in expectation make to and show we underlying quarters the be that time. QX is over so And clear, in we or of operating over the earnings of were about the economics insurance expect we as plus minus up next perform, would P&L to have going But couple where feel doing, that we same as

Operator

question with Company. Kotowski comes from Oppenheimer next & Chris Our

Christoph Kotowski

just like Climate and the made earlier you look private investments just was if yet. looking raising had still I wondering are And I the Fund, guess Global [indiscernible] some roughly V when they're Yes. question how funds? at funds. to expect could point? catch-up And of look but on about those on is you at commence expect money, they've I'm like long And equity and investment Infrastructure open? flagship there expand the And meaningful we fundraising those then I'm should for Asia, kind funds period there Europe that we fees should wondering don't half called

Craig Larson

as ] one XX/XX, feel on I of topic we great Why the for in front-burner strategy year. of a Look, raised that fund Chris, we've fundraising us [ middle very last a we So terms I to it's think pipeline was don't Infra last healthy are got Craig. we and did turn We XX. of be start? progress. for continues funds that strategies about individual in

to management something expect here fees. also you're our for So do strategy fundraising seeing where that launch Asia infrastructure shortly. is We

at a relates come in particular, big us So opportunity same for businesses time. think and real that to to we more scale build as there's to it the grow,

individual just through. parse funds it's tough So to on

we I will draw and paid think capital you when or the look back -- an less. capital under fund one make investment line table, draw that's typically in we other often call at when days reminder XXX the

to So there as at dynamic is then if when you we look that invested are the build, capital up often to relative And remaining. those second actually that multiyear we period line. deployment that's capital only available have figures, invest the and has expect piece where look they of again, first capital if that understated first been in something a the shows time, that at and platform called over of piece we a

or or we anything that where tend in figures are on understated. when just whether close funds that and of how you're would table, looking terms you fundraising to would turning the if and a the are, be at the to So overall, status looking the that percentage I think you be it's we at fund, -- numbers

Scott Nuttall

Chris, in today, these with including right infra only we're add number still of climate. The you're that I'd strategies the market thing is Yes. to observe a and

American and would terms Asia in North guess just private to follow. be got sequencing. You before And probably [indiscernible] Europe private of equity equity, my

keep So launch we we'll those you incremental as future quarters strategies. posted in

higher though, take, point give X flagship years, we last think only billion. these about level from the I was or that bigger, XX% raised $XXX farms. of

the should point the prior of into the So couple additive quite from as be discussion, we years. it next head

Operator

Autonomous . Research. from is question Patrick with Davitt last Our

Unknown Analyst

theme. this on is more monetization Is a monetization event second it Could today, Just usual then case? firm situation think that you it And sounds event? you that be cash the that visible for week a half more give? flow agree you of clear, stat thought theme give the like Or made pretty think, quickly they more the broadly, realized different the I back was last do second half it KKR. you another could might

Robert Lewin

I in just timing, be of terms will Patrick, think things pretty Yes. fluid here.

be So the hard half 'XX market to conditions. 'XX monetizations I'll on it's for pinpoint is based that in it any up current versus in the expect our of we to expectation year. do us reiterate

to signed or approaching As have, relates of that on high we've visibility million it specific got already have that question we $XXX visibility that a things been up revenue, announced.

all approvals, unclear based on QX. that in regulatory Just hits

So pretty year. good into head the visibility as we

rebuilding get You period closed -- to get this see after pipelines typically where tried year-end. of deals time by are closed

right now. are pipelines our quarter Of and pretty course, strong X the weeks into

So transpires the abreast. quarter we'll for guys we'll see you and what keep

Operator

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

Craig Larson

so. forward KKR, next update Thank to everybody so everybody for interest thank your and you. just Thank continued and giving we'd in like the attention you days in we much. to And look XX or

Operator

concludes today's conference. This

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

KKR & Co. (KKR) 4 Feb 252024 Q4 Earnings call transcript