Earnings call transcript Q2 2023

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Operator

Thank you for standing by and welcome to the AllianceBernstein Second Quarter 2023 Earnings Review. At this time, all participants are in a listen-only mode. After the remarks, there will be question-and-answer session and I will give you instructions on how to ask questions at that time.

As a reminder, this conference is being recorded, and will be available for replay on our website shortly after the conclusion of this call.

I would now like to turn the conference over to the host for this call Head of Investor Relations for AB, Mr. Griffin. Mark ahead. go Please

Mark Griffin

in Good earnings and is review. by that's and Operator. our section second www.alliancebernstein.com. website, being to quarter accompanied posted presentation slide XXXX This a Investor morning, you, Relations welcome of everyone, our webcast the Thank conference call

Head us discuss Karl Controller CFO, Erzan, results will and and and Accounting Officer. the With Chief Group for Seth Operating are Onur Interim quarter today questions Bill Global President our Siemers, to Sprules, Private Officer; us Bernstein, join remarks. and after company's Client the of CEO; and Chief prepared our Wealth for

information the regarding of to certain is rules we'll Some forward-looking disclosure. and subject present today regulations and SEC

our presentation. like to out I'd Harbor point of language Safe So X the on Slide

Harbor may only investment questions from also the we community public our in in which XX-Q, nature can MD&A address management yesterday. our find Under FD a the filed Safe language of material Regulation of You forum.

such call. please questions So during all this ask

to Now, I'll turn it Seth. over

Seth Bernstein

Good morning today. for you and us joining thank

amidst a equity second market technology June in higher the with of bulk small the to yields rebound and in markets gains In by bond rose Government of rates large the a companies. significant number U.S. drop led continued generally volatility. quarter,

net U.S. X% generated annualized the retail two organically. income in inflows both by We at growing of and led fixed quarter months three platform, our global

the XXth SMA market XX platform the growing of last municipal Our continued gain to quarters. for share

XX% as and sequentially. sequentially in our several market quarter owned private up been at billion, institutional the to Our XX up year-over-year still June equity active AUM pipeline grew apples-to-apples, and wins X% had billion, up reflecting CarVal last $XX.X ended XX% $XX

platform commitment second quarter, Holdings in Equitable grow this During its $XX coming years. the the billion made to

overview X. of in $X were Net active X% fee billion both May pre-announced Let's ago Slide redemptions get June. early sales with billion, the were billion, $XX.X quarter. reflecting $X.X billion in from $X and specifics, Firm-wide positive net on Gross outflows or were down the a firm-wide year the starting into period. low flows

under assets and And management average by billion X% increased was X% year-over-year year-over-year sequentially. up end under Quarter $XXX of and management $XXX X% down were up of billion, sequentially. assets X%

flow outflows growth Slide shows low-fee of income taxable Firm-wide billion billion sales X% were and demand for channel. XX% $XX.X quarterly a respectively. year-over-year our billion, pre-announced of net were trend positive second despite organically, million of by $X.X X fixed and $X strong $XXX quarter $X.X Retail billion. redemptions declined annualized sequentially. municipal or excluding Net slightly X% and outflows

had channel Our declining billion institutional gross sales of from $X.X quarters. prior

slower were sales seasonally Net were In the market a reflecting $X.X flows funds billion and were redemptions. by Net flat gross pre-announced Wealth, in outflows Private driven low-fee money alternatives. at resilient $X.X private billion, quarter.

outperforming with X. is as performance Starting inflation. banks markets, shown major Investment yields assets all Slide income and of respectively. one-year The global improving XX%, outperformed. yield both Income high meaningful five-year as funds fixed the market hiked developed were essentially fixed most and AB's in remain central core treasury to showed rates given performance improvement income, period, government interest in flat. XX% at periods returns developed American market strong XX% Global persistent and bond on rose major three

the a investment validation discussed fixed of secured our client strategy $XXX which our fixed our quarter income or billion American the in research. technology durations. a first million systematic of the end were Investors near $X.X positive with U.S. $X Income marries are billion We last year-to-date. win, Fed to inflows with rate showing greater quarter, net grade we income with comfort appears cycle. quantitative its The hiking

We a where preference bonds. higher for there's conversations active quality other a are initiating number of

group narrow advanced in equities by artificial a as big stocks intelligence of revolution. equities. turning Now from Global second led seen to the winners the quarter

XX XX% PE capitalization All medium During S&P half stocks for XX% XXXX Over of gain compared XX surge the by at of XXX's this ratio accounted MSCI the largest XXX the to of the time, stocks rest just X% Country of median forward the XX% in U.S. a World the of end of to nearly XX.Xx for just and S&P first the Index's market. gain. increase of June

of risk week weightings of to high carried out highlighted a constituents. many were we major mega when largest rebalance its benchmark seven risk technology benchmark the tech. special the these earlier index own concentration companies a of reduce we cap weightings the this wary its in of provider While A of

just was Near-term outperforming with period. one-year the equity over performance assets challenged XX% equity of

performance three-year improved XX% of outperforming. assets to XX% Our while declined five-year

outperform to XX% peer group of five-year continue assets Morningstar outperforming our the and three XX% equity peer our and respectively. we Importantly, over groups with periods the

stars. management end, under assets XX% At quarter four XX% U.S. ranked in funds our and in five funds equity respectively of and Lux were and

X. review retail year down sequentially. quarter, sales net in outflows of billion Slide last our channel million. slightly redemption a were I'll retail from The channels was Gross rate at resulting our X% higher beginning XX% with and versus declined client on of Now, and X% $XXX ago $XX.X XX%

driven growth We equities and continue to which posted by U.S. X% taxable see fixed strong annualized retail, munis. growth in organic income

highlighted initial we fixed income reallocation. innings our we're belief the quarter, of in that Last a

continued income by annualized X% Xx to at which growth. organic Income, of grow billion American inflows sales business net Our or grew taxable Asia driving $X.X year-over-year, bolstered fixed

were Active four be $X also continued growth the in for the equity net U.S. in strategies. global Increased reflecting billion, strong of quarters, net annualized XX% to with Muni organic positive sales momentum inflows sales level XX retail of equity inflows key resulted or redemptions for in XX $X billion robust more outflows. highest last quarters.

for in which bottom year-to-date shown X% income first and the right, AB the substantiated inflows. by income flows sales for As in Broadridge, fixed on we top for ranked Asia cross-border fixed ranked net

assets between and year-to-date Wealth Private which ETF for sales under with a over channels experiencing XXX distributors. management $XXX approximately from million strong raised We're having launches, reached retail balance our well million, start $XXX for

on to institutional Slide Turning X.

were Net split date outflows by billion, driven comparable businesses fixed Second billion quarter between announced $X.X and from income target redemption previously periods. $X.X gross were custom down our rebalancing. fee sales reflecting prior low both

to Additions a pipeline quarter Our $XX.X sequentially. the mandate, $X.X U.S. billion earlier grew included and cap which annualized billion exceed growth large of XX% those for July, up at end, pre-announced redemptions. funded in which fees

announced its Day, multi-year in pleased CarVal Fund, Investor The Clean to which of size close $X.X billion a over is at saw Notably Clean now a the XX% $XXX active announced program billion, AB of $XX AB's million billion May raised imminent second number and first We the We're of at Energy approximately wins. its is of Energy triple equity latest its have additional that CarVal markets commitment platform. private Equitable $XX deployed. mid-XXXX Fund. initial additions

Moving to X. on Private Wealth Slide

from resilient XX% first down year-over-year, gross seasonally XX% at a quarter $X.X were sales quarter. while billion, up Second strong

to money We strong market alts. and continue experience private sales funds in

essentially While year-to-date second X.X% of quarter a the flat were at they've annualized period. rate double on grown a the organically basis, year nets prior

Our volumes, pipeline the outpaced AUM and sales industry solid. M&A measured as by the growth remains pre-transaction planning well from business

raises billion, sustained see posting to of of million including direct growth credit, $XX the our proprietary growth real to alternative annualized over continue equity, worth Year-to-date secondaries, XX%. strategies category. and clean We indexing across well strategy $X ultra-high strong energy, estate private grew diversified and $X.X organic net billion were and in

I'll Slide finish with our XX. the overview business sell-side on

over Research quarter in reluctant constrained Bernstein and X% the investors decreased and Industry-wide equity million with XX% uncertainty. trading portfolios of Second remain revenues turn to global $XX by year-over-year of a institutional market face continuing sequentially. volumes economic

for quarter. from past one Autonomous were We global four in coverage the Japan. checks EU and up at quarter, sectors three launched this Research the in

clients nearly Decisions with XXX companies over Conference resounding X,XXX Annual XXth and attending. a Our Strategic success was

Our we further last November for joint proceeding. announced economics closing into obtain of has highly necessary remain financial to approvals. we XXXX, that will venture first and with details extended disclosing closer anticipate The that confident Societe is regulatory and are essentially time. timeframe The the half unchanged we been Generale

improved, the lagged equities and conclude status I'll versus while our Slide weighted performance Performance near-term capitalization XX. by on reviewing fixed benchmarks. initiatives strategic income of

we muni municipal second led X% was wins, pipeline. growth several equity active institutional income, retail, annualized The market taxable, quarter including had the and gained fixed We in across grew and categories, SMA. which by organic share

the predecessor billion our fund. In its close billion of we in We platform. to CarVal's imminent private markets commitment private AB Equitable growth progressed toward $XX Equitable's of which latest to Xx were Day, participate at its $X.X at markets, pleased permanent capital second Investor Fund Clean Energy May announced

basis private benefit in the Additionally, we and the XXX expansion basis points, the reflects to to basis a and the points already to levels that additions XXXX Research basis at margin basis of to points outlined realized, at about to Bernstein we market XXX basis through This savings XXX basis had margin current XXX to XXX points of of investments points growth about basis about other markets visibility relocation points points. Nashville deconsolidation of points the XXX XXX period. completion XX that horizon meeting the

$X.XX versus prior and margin distributions year financial Second adjusted the assets period. operating year. down under operating X%. declined earnings the and prior were income XX%, per quarter comparisons was lower unitholder reflected management Adjusted versus XX% unit by Adjusted

I'll the Bill to Now, turn discuss over to Bill? financials. call the Siemers

Bill Siemers

Thanks, Seth.

GAAP statement a income on Slide with start XX. Let's

margin X% of period. $X $XXX decreased from points. GAAP year Second and year-over-year. increased operating quarter XX% by EPU by quarter million income the of XX.X% $X.XX decreased in decreased net billion, of X% revenues basis XXX GAAP of the Operating prior

that business. on remove I'll focus of my certain items core considered not remarks our from adjusted which of the part results, operating our here effect are

operating of now operating our the line, expense This results previously above adjusted reflect operating whereas adjusted below comparability the done the group. line. with improve was our to interest was Our interest peer expense income margins income

to addition our not results. for base our substitute distribution unitholders GAAP provide adjusted we our results, as which to We in a on and

presentation reconciliation GAAP XX-Q. are results standard Appendix, and in GAAP press Our to reporting release our adjusted and of

Slide XX. Our XX, talk financial on through are as Slide which on shown adjusted we P&L shown I'll touch the highlights on

were Slide X% Base prior revenues. flat offset AUM versus period fees $XXX million was of a the beginning the were Net X% revenues On lower period sequentially. with average versus year as year prior fee increased XX, X% rate. and higher down by

down fees. XX.X by higher less was primarily The X% addition fee fee the increased quarter year-over-year, than fee points driven of basis the X%. base rate second rate rate carve-out Sequentially of

in experienced unfavorable fee rate a in AUM fixed environment including money lower net with income risk-off shift we mix inflows As markets.

rate markets. the improved expect fee to we on improve mix asset based forward, sequentially reflecting Looking

on Second real quarter equity the to $X due offset fees, performance estate by lower of period credit by million services. higher fees fees and prior declined partially year $XX private million equity strategic from

fees see performance Given prior in marketing line level. full-year current with roughly conditions, continue the XXXX we to year

a by activity driven Research quarter revenues Bernstein given from Europe, as U.S., remain Asia the Services the prior period, in and for customer investors backdrop. XX% decline trading Second macroeconomic decreased year cautious the in

by million at broker/dealer we quarter, $XX brokerage due breaking million this related was interest interest balances. clients. Interest increased reflecting revenue, rates interest Private dividend are higher out $XX which $XX against increased rate environment $X our higher of the with by expense year-over-year, interest and $XX associated and million higher down million This Netting and Wealth is expense average sequentially. to year-over-year million

benefit expenses. compared from adjusted period, by comp of by higher sequentially. quarter X% as and All-in, X% revenues. a reflecting expenses XX.X% prior of in a increased and of year the second in prior to the increase ratio net and $XXX expense period, we're our XX.X% year-over-year up X% Moving operating year revenues X% with adjusted compensation million total Total increased

reduction XXX year-over-year, headcount, XXXX. declined headcount excluding February we staff India in reflecting and the first in previously onboarded CarVal the Regarding previously the quarter X% whom announced acquisition outsourced the

particularly on back, equity AUM a step there rally catch the a a basis. up, encouraging. That revenues second which quarter, effect comparing continue Taking and as year-over-year global markets said, throughout lag is to is average when

As remains business to manage balance continue recognizing current well, environment. a in we uncertainty the with the perspective,

are and XX.X% quarter, ratio to compensation people continue believe historical true-up We fourth the in towards XX% accrue that XX% We quarter important to full-year the revenue higher range. we our third full-year the to the ratio be do, to the at crystallize. in end We competitively to our as asset. the of as most ratio plan on pay based revenues will full-year compensation performance typically plan a we'll XXXX giving

and servicing prior Promotion to trade advertising transfer XX% including in the from lower T&E, sequentially seasonal execution, and year by Conference decreased and early period the firm servicing Promotion increased meetings, XX% Bernstein higher by marketing, Strategic due June. fees. Decisions costs costs driven

to spend we lower-single-digits. For servicing and continue target promotion the be full-year, to up

versus due quarter by and impact, partially an second expenses, exchange related increased professional offset which a prior fees. increased X% higher in X% fees, foreign G&A favorable expenses office-related G&A expenses expenses to services, the higher foreign and unfavorable office-related expenses, year technology-related the exchange impact. Sequentially period were due portfolio to professional expenses,

continue below For full-year, inflation G&A up to levels the low-single-digits. we target growth

by Second was and quarter million, $XXX adjusted X% X% down operating versus sequentially. the decreased year income period of prior

margin basis quarter was Second operating down XX.X% XXX of points year-on-year. a

this adjusted $XX margin footnote average million now reflecting $X rates. operating and slide, prior interest sequentially increased As higher interest period, reflecting higher increased which below on rates two is by the shown million from at and higher line the year interest debt balance expense,

to $XX amortization core due above certain expenses operations. are intangible As presentation, In due outlined earnings our acquisition-related interest business adjusted part earnings million items quarter, were in quarter to second the and Appendix operating second CarVal excludes GAAP of of the earnings which our including not operating expense.

$X.XX reflecting acquisition-related primarily was expenses. EPU EPU GAAP above Non-GAAP

effective second for ABLP X.X%. rate quarter was tax The

effective guidance remains rate tax X.X% to for approximately Our XXXX in X%.

to will full-year We accretive for relocation Nashville the XXXX continue be costs. compensation-related increased more offsetting expect than occupancy savings with

update, that we answer pleased your are to questions. With Operator?

Operator

Instructions]. [Operator

of the ahead. line Fannon Jefferies. go first comes with Daniel question Our from Please

Daniel Fannon

to that. given as outlook the contribute bifurcate Good transition natural through And even if highlighted think of next are at you to to closer margin be most I really statement? XXXX flowing as year. Thanks. maybe those national just and the longer-term segments the Wanted Bernstein about of this as we of believe And the that think things Investor done the follow-up income push-out timeframe going morning. the about the see as on you quarter kind the that, Day. evolution I as savings well to we Shouldn't of by XXXX should could your

Bill Siemers

-- are year. pickup of and when fully definitely not Hey, that's these just a basis XXX next end the Dan, timing basis targets Investor to Bernstein points by what that there's Yes, that's be said difference now points but it's that in Bill. to yes, to Day we XXX XXXX, there going realized the

only be of to and would in that there'll going year take when XXXX forward But piece effect. beyond So close. then we a according that, that next

all of points XXX York go the done. on predicated the relocation primarily when is to the Yard. points, that to big basis out is of As Hudson basis Nashville of there We're XXX New we out, move fitting but to most still the and the pickup get XXXX

in the fourth And of quarter so happen that's going XXXX. to

So same forward. going to thing, again, it's XXXX be

should we into And Wealth as then slowly the Private and soon we growth exactly investments to as all taking this year be when realized. really say going next and that's mean start but fully can't can I year effect that,

Daniel Fannon

Understood.

kind of at investor in your do you trends income as then private up. potentially that rates, markets those investor picks versus going source is outlook, Okay. fee near-term, bigger income flows rate fee as being you but even kind trends shift, that demand longer-term higher of of as of of through being the rate I following-up That's of -- dynamics And more backlog, on pickup? still backdrop look of a fixed helpful. average, your kind Do flow with you improvement is with see business constructive you we still some if period change that there you on to comments said think fixed beta look and see a the help clearly at end the with

Bill Siemers

custom not all be active in Anybody active in and perfect to about between normal that which at the alternatives. worry the fees. that's I alternatives. Right funding about institutional so have Xx -- the equities we bps, I date a which could is split lower I it's than there all there now mean, higher not in the to on based the want of fee I same higher currently the of risk there time mean, timing the in further anything and seeing, channel. but pipeline's there we'll mean mean, fundings there? fee XX is at improve you modestly mandate, it's we're definitely low think on throughout is rate add equities of has fee -- pipeline year. it target

Onur Erzan

one, two high pretty taxable Thanks, a income, to Number XX that strong yield. Yes. Bill. add points. Income income retail Yes. points obviously American for high minor fixed fees It's be definitely in level have higher franchise global in Onur. Asia I'll for tends we in about the fixed basis even and

categories, particularly Asia. participate So in we peak high within income, in fixed

that factor be number So should a one. then,

continues very rate. Number a our two, at as organic have grow you followed, high retail U.S. might to

assets at be overall like overall So an the muni even lifts fee we revenue. adding it on times lower might basis, though SMAs

we which very comes revenue the additions are through organic net high growth very So in pleased with U.S. rate. retail,

So that's would overlay I the that. other

Operator

line Your the mute. of from Sachs. Please Alex ahead. Goldman line next go comes may Blostein question with on your Alex, be

Siegenthaler question will of from next ahead. Your line come with the of go America. Please Bank Craig

Craig Siegenthaler

team Good Hope you and morning, are doing well. the Seth.

Seth Bernstein

Craig. you, Thank

Craig Siegenthaler

for you. yours looks I bond The the So this and bond it's a recovery still flows, been rates question delaying have Fed is and got raising partially although improving. like

So the raising any if the commentary needs helpful think munis tax the across half force, about Fed to too? reallocation do how channel then and be bond vehicle trend and you including product or in second rates, keep

Seth Bernstein

we're of from cycle. course, Fed's Chair in Craig, much you, the think for stating closer comments Thank the I indicated. to Okay. Powell, In end as the obvious question. the than to And view, my the Wednesday's beginning,

and we're them interestingly, see we in duration well confident do seeing opportunities the back, investors, even insurance credit. for Asian been institutional to also seeing so we're and to reallocate demand it's a where pretty from investors retail it we're us consistent just for people on increasingly for while public begin Asian to and But pace think extend I are now. not And seeing interest as

by likely surprise one But raising that more said, to But reporting we've that the put or it a subsequent that the have back economic will late, to readings we're seems seen that we Craig, actually less your trends that given the the bonds point, are quarters. continue risk facing. in if just being of and Fed that's needs with should nasty inflation off

point I he add over turn may final it Onur one guess if I to I'd had comments. some to raise,

the by positive seen was performance continues to first muni U.S. strong an long as and strong I but strong strong, quite for not interest see industry continue good And in demand we income there. for haven't quarter, that unquenchable. retail really We think us, as as is much remember, thirst because really muni it do and for And is a time. the continues

Onur Erzan

Yes. just share Onur Seth. again. Thanks, obviously I'll market It's add matter. gains

pointed market And U.S. of the off as both share our tax range customized particularly has in we Seth growing income, tax well the in particularly vehicles SMAs ETFs, exempt which the as out, that SMAs, distribution expansion his flavors to fixed and to continue of Seth mentioned remarks. only as very exempt a gain good of start, segments of help strong retail. should As that different on followership, are in

So for income year than ETFs, number income, the fixed of today. end greater instance, larger have a to fixed we in expect three income ETFs fixed the we even with

expansion vehicle So with well. that will the help as

Craig Siegenthaler

Thanks, Onur.

go industry a you're putting just flows follow-up, and lots the negative, there organic a up little on deeper share little muni side are because still want really of growth. you to impressive but are my For gaining I

do how and XXXX? delta that driving really are you are think share factors gains what these sustainable So into

Onur Erzan

Absolutely.

factors, the we in number structural of advantages. strengths backend believe one, a we portfolio significantly from our by trading income supported and So the all fixed have way technology This construction. is invested onto number we

a makes competitive. result, differentiated as SMA of very believe set platform So we that our technologies have a we

from we been and On but a recognized relationships, definitely markets, dealers, expanding in those strength the have national for back is wires distribution regional as that's there's high technical by of our RIAs, distribution partners which traditional definitely in well us. broker not as growth channel growing only capabilities uptake the our

more mentioned, adding like channels accelerate vehicles ETFs I new in like as RIA. opening only doors that will And

weaker market exact about very in be very to share. precise quarter our Again, any to good it's I and strengths to be have quarter on of don't continue two a So structural prospects. very expanding long-term hard precise hard capabilities will believe quarters feeling dynamics. to I'm the the but on of reasons be to next terms quite two. the drive bullish

Seth Bernstein

or that where mutual there performance the wealthier think as strength into growth in in five advantage fashion. structurally I with of a turning ETFs. people we investment The at and you're rated. underpenetrated muni in the is seeing advent of were manage provided munis the And be quite all is I think space, fund much for add, really Craig, maybe while growth, nearly which and we also managed it a to of less I frankly, would a interest superb four think I buyers, us. weakness fact it's the star our importantly advent And tend it's separately more predominantly competitive accounts, automated widespread is

Operator

[Operator Instructions].

go Our line ISI. will of next from Dunn Please question Evercore with come the ahead. John

John Dunn

Thanks. Good morning.

talked well. or U.S. You of you going is there's difference redemptions going of the what if kind retail continue in frame one-time? to any doing equity overseas was that kind forward, between about is that maybe Can channel,

Onur Erzan

John. Onur I can Hi, that take again. on

persistence some deploy strength in typically are SMAs with across retail But which category we a making the on strength, trust of back business has where a we for rates, retail. redemption investment retail been contribution goes commingled it CITs, touched given is structural another kind defined duration the partners, of to of already very different of equity assets us investments terms our and increasingly the In ETFs. low high I structures with vehicles.

contributing So in that is the of definitely retail. momentum some to

generalize. to hard very again, Overseas, It's broad.

a first second geography particularly one in up We of bit momentum quarter think momentum in quarter. the picked Japan. was I sales the that little the lost more

broader it in vehicles. with are what like lot the the side structural currency. the institutional has of And So healthy equity we some having definitely well. if about, market a depend a outlook. well as you a then with of as factors, as pipeline But of the U.S. on Obviously strengths with on lot we different dialogue the at it'll and equity composition retail happens a pre-pipeline, pipeline matters institutional range strategies of talked equity institutional good definitely look wide as

think the outlook. So I that's how I summarize would

John Dunn

Private Got you you munis. drive just think flows of for about products about back of you. half in talked And Can kind what are Wealth, then thinking year? the potentially frame the positive to second other half you the going

Onur Erzan

Sure.

We channel. have a first of our alternatives Wealth in terms in Private very good half

As estate private we know, time. you have equity long portfolios a been using secondaries, alternatives credit, for particularly private client our real in

So our launch we Wealth have will that channel. new we strategies in Private

our For in launch that instance, be new the CarVal we interval will the of fund platform second will quarter. available out

PAT we'll one in $X BDC be we platform continued that So call flows evergreen product vehicles as REIT examples. see our those Wealth. are a We interest We into real in to our exceeded direct Private it will in few the billion platform. our or estate well, that it's in whether [ph] indexing credit example private assets and continue saw

So capability to given handy useful that in is the management a equity that the increase and will be continue a strategy. good markets tax

that continuously platform. So our adding the will that our kind platform definitely And second of then and I'm half bullish about year. the ETFs of another expansion be into we of the in

market fund and yielding good see is how to starting we higher big assets obviously the all, with money interest can unknown The clients. fast our we all convert some from July, So strategies. of in

news. the obviously money as is whatever good a you taken do that's market funds action But outside market higher well, so pricing even have We yielding perspective. from money revenue on

here. that's other So the backdrop

Operator

question ahead. line comes go Alex Please next from Your the Blostein of Goldman with Sachs.

Alex Blostein

good Oh, guys, morning. hey

maybe timing rate pretty issues color and months? about bit a to institutional on broadening institutions as XX with very kind phone a likely of footing are for funding bit. stronger some couple are that next to the over getting little and continues market would expect been seen helpful. the How strongly, we The the quarters we've in to little pipeline you little Thanks. fee out for strategies last terms Sorry of of the of rally be Should robust this pipeline? build earlier. first obviously hit a And bit thinking which the the accelerate has

Seth Bernstein

Why color quarter was don't was probably specific to we I start? the I It think up, about it. the important is billion -- see And is very which really predominate the involved all continue with with have realizations to the there, which But of actual we comprised, because fee much Alex, quarter it's pipeline it. AUM been -- to in on in funded is helpful. well, certainly it better Onur, give up $X.X to not the rate but across about firm, think positioned $X.X respect I and billion

their Clean a to we're is is to second either of continue year. credit -- about on This consistent earlier people had complete see see Fund. flagship while think their original a now, fix fund, pretty and fundings moving slowed forward we're it fund. basis. year, its funding there, triple We it's launching in the size beginning CarVal is just or that's about It's their to Energy I it's the fund, imminent, and

perhaps invest color. find money. you additional will But So on be to Onur, they some could give slowly coming as those that opportunities

Onur Erzan

Number of in kind mandate be absolutely. that we again, that factual, about. we July, one, No, to one funded large had that, talked

So was definitely equities. $X that mandate very deployed quickly over billion in

a is that Alex. good your to So point, sign

with have, Equitable moving is again, alternatives in with that's well Equitable move terms pipeline to I the accelerated I slowing think of pipeline, mean normal ahead we chunk made say. don't good the we commitments A it's or which public are would aware. in their also going that I also general particularly ahead with is down. of anything see Investor as In like broader Day I the speed,

progress I all, in So all think are we with good the making pipeline.

are speed funding and with I of them. points can commitments ahead that moving there think has July that that bumps no suggest equity institutional a good So investors And I data see. couple are their

Alex Blostein

Thank Onur. Great. you,

For the was actually going Equitable mentioned follow-up, there I go you to next.

they're So realistically of a super encouraging Thanks. about billion that thinking AllianceBernstein maybe -- deployed next you you're them the billion what timeframe or could commitment $XX sort obviously of how partnership. the you that $XX for minutes couple Can also from spend think the and to tranche the allocating franchise? be about get on through

Seth Bernstein

wrong, team was And think be on well. growing I account general their To me that predicated I'm as specific them if and will I its Yes. their but XXXX, cited correct and my Investor through timeframe. is the Day Equitable believe

been market our middle where others strategies, We pick more supportive about our our in active new obviously and real we area lending credit as play interesting market continue up estate to and have debt commercial well buyer's in much example, CarVal structured quite group areas that of both be in. conversations a see new investment for to as they

so very next progressively several methodical roll And out they will -- will years. it the they and be over

because So it to getting timing for and their to the setting only the it's the it's it's through deploy it. opportunities me process of approval not structure, up but team's also hard gauge finding

investment is to And course principally what a orientation there's element will been GA. grade of placement quality strong finally, interesting private that, which of our is of in Equitable which given debt and mix, part very the part doing, of continue always be has their a for

Operator

I over further this the turn no And back call there to questions Griffin, Mr. are you. time. at

Mark Griffin

today. us joining for everyone you, time. your We Thank Perfect. appreciate

day. any have great questions, If Relations a to reach additional and Investor have out please you

AllianceBernstein Holding (AB) 28 Jul 232023 Q2 Earnings call transcript