KKR & Co. Inc. (KKR) Earnings Call Transcript & Summary

Good morning. This is Brian Morton from the U.S. Large Cap Group here at Barclays. And joining me today is KKR's Head of Client and Partner Group, Eric Mogelof. Eric, thanks for being here today.

Hello, Brian. Thanks for having me here.

Sure. Eric is going to start with a presentation to give you a bit of background on KKR's fundraising and distribution, and then we'll jump into questions. So Eric, go ahead.

Terrific. And again, Brian, thanks so much for the opportunity to be here, and it's a pleasure to meet everybody virtually this morning. Just as a real quick background, I lead KKR's Global Client and Partner Group. That's the group responsible for engaging with clients and prospects, developing new products, marketing our investment solutions. And ultimately, our goal is to work with both institutional and private wealth management clients around the globe to understand their investment needs, deliver world-class alternative solutions and provide customized client service. Just a little bit about me. I am a relatively new joiner at KKR. I joined about a year ago from PIMCO, where I previously was Head of U.S. Global Wealth Management. Prior to that, I led the Asia Pacific business. And then before that, I led PIMCO's America's institutional effort. I am extremely excited to be part of KKR. We operate in the fastest-growing part of the asset management industry. KKR is a leading investment platform with 45 years of strong performance, product innovation and client focus. And I'm excited to be talking today a little bit more about the meaningful investment that the firm is making in distribution and explicitly to expand our footprint. I'm going to hit the presentation. There are 3 areas that I'm planning on covering this morning. The first is more background on the alternatives market, in particular trends we're seeing in the industry; second, how we at KKR are capitalizing on those trends; and then third, highlight some of the key strategic initiatives we are pursuing within distribution. And so with that, I am going to go ahead and jump into the presentation. Let me just confirm, hopefully, everyone could see it up on the screen. [ Nate ], are we in good shape? Excellent. Thanks, [ Nate ]. Well, again, starting out with the alternatives industry overall. And the alts industry has grown meaningfully. One of the reasons that I was attracted to KKR was the opportunity to join an alternatives asset management firm, having come from what was a traditionally focused -- pardon me, a traditional asset management firm. And KKR has the great fortune to be operating in a market that is experiencing strong secular growth. You can see on the chart from 2011 to 2019, the aggregate amount of private capital raised has grown at 15% per annum. Even in 2020, which, as we all know, is a challenging year for the markets, capital formation was still very strong. And then year-to-date through May, you can see that the industry has raised more private capital than all of 2019. And I'd point out as well that it's diversified across private equity, private debt, infrastructure and real estate. And just as we turn to the next slide, it's important to note that not only is the alts market growing meaningfully, the overall size of the market is extremely large. So we operate in a $14-plus trillion market. And again, if you look at that column on the right side of the page, you'll see that PE is a large market. Growth is a large market. Infra is a large market, real estate. So these are big rivers that were all -- I was going to say swimming and that's probably not the right analogy. In any case, if we could then ask the question, what's driving this growth over time? And here is one example. This is a slide that highlights allocations of public pension plans to alternatives by asset class. And you'll see over -- from 2010 to 2020, you'll see public pension plans have gone from allocating 13% of their capital to 23% of their capital to alternatives. And by the way, this is rearview mirror. If you look at the next slide, you'll see that public pension plans -- plan to continue to increase those allocations, whether it's in PE, private debt, infrastructure and credit, you can see meaningful numbers of plans are planning to either increase or significantly increase the amount of capital that's being dedicated to the alt space. So there is then a question as to, okay, well, what's fueling this trend? If you look slide -- this is Slide 8, and then I'll show you Slide 9 in a second. Slide 8 is funded ratio status by state back in 2001. And you can see on this chart that a very meaningful, if not pretty much almost all of the states had a very strong funded ratio position, anywhere from 90% to 100% funded. If you fast forward 20 years to 2020, you see a very different picture. And here, you'll see that many -- most plans are pretty meaningfully underfunded. Now we know a big driver to the underfunded nature of these plans has been the secularly declining interest rates. And what this means for plan sponsors is they really only have 2 choices. Either, one, contribute more money to the plans to help get into better funded status; or two, grow their way out of this challenge. And just moving to the next slide, you can see, just to clear the chart, the purple line represents the state pension plan median assumed rate of return. And then you could see the orange line represents the 30-year treasury yields. And what you can see is it's getting harder and harder in general for plans to meet that assumed actual rate of return. And that's an important driver to why these plans are allocating more and more money to alternatives, whether it's, again, private equity, private credit, but to ultimately enhance returns. Now pension plans are not the only ones that are increasing allocations to alternative strategies. Here you see -- and this is a Goldman research survey that was done earlier this year but asked insurance companies their planned changes to asset allocation across their book. And you can see here, private equity, infrastructure equity, commercial mortgage loans, real estate equity, mezz, these are all areas where insurance companies are planning on increasing allocations to the alternative space. And then finally and this is perhaps, I think, one of the biggest longer-term trends that we're going to see within the alternative space, which is going to be important in terms of driving overall alts allocations. But here is a slide that shows on the left side total client assets in the market. So this is pension, sovereign wealth funds, insurance companies and private wealth. And what you'll see here is, obviously, it operates -- the asset market is huge, in 2020 estimated to be close to $280 trillion of assets. But look at the substantial size of private wealth, almost 65% of the market and growing meaningfully. But then take a look at the right side of the page. So what this bar chart is showing is the typical or average asset allocation that you might find to alternatives for various different investors. So pension plans have roughly on average 30% allocated to alternatives; endowments, roughly 50%. Take a look at those individual investors, at less than 5%. And by our research, we think that number today is currently 2% to 3%. This represents a very, very meaningful growth driver to alternatives AUM, simply because we know, and I'll show you a slide in a moment, that the allocations to alternatives from private wealth is increasing. And so what we did here was we grabbed a couple of headlines, and these are from some of the large distribution partners with whom we work, but -- and I'll read a couple of these quotes for you. Wells Fargo Investment Institute recommends a 20% allocation of client portfolios to alternatives. UBS Wealth Management recommends a 25% to 30% allocation to nontraditional asset classes. And then Morgan Stanley Wealth Management wrote a whole report earlier this year highlighting that the traditional allocation of 40% to fixed income is something that advisers and investors should reconsider given the current market environment. And so when you couple the fact that we are in a low yield environment with generally lower expected returns with the fact that more and more wealth investors are looking to enhance returns, increase diversification and position portfolios with higher income, all signs point to us that private wealth clients are going to be materially increasing their allocations to alts over time. So with that, maybe we can go ahead and switch gears and talk a little bit about how we at KKR are positioned to capitalize on these trends in the market. And I'm going to shift over to a snapshot of our current assets under management. So on this slide, you'll see the growth of our firm assets over time. And you'll see we've had incredibly strong growth over the past 15-plus years. We've grown at a 22% CAGR. And if you exclude the recent acquisition of Global Atlantic, that rate is still 20-plus percent. And so very meaningful growth. And if you look to the right side of this chart, you can see that we have a very diversified business. Private equity represents somewhere between 25% to 30% of our AUM. Real assets represent somewhere between 15% and 20% of our AUM; current growth, 10%; and then across credit, whether it be leverage or alternative credit, that represents about 40%. And I think what's also interesting to point out is -- and on this slide, we show alts AUM growth since 2004 and then KKR AUM growth. And you can see that we obviously are operating in a fast-growing market, and we are growing at twice the industry growth rate. So put simply, we are meaningfully increasing our market share in a growing market. And what that translates into ultimately is a very powerful management fee profile as our business scales. Okay. So maybe we can shift gears a little and talk a little bit about the platform and what we in our distribution team go to market with. And so on Slide 18, what you can see is our broad investment platform and how we hold that out to our clients. And as a quick reminder, our client group is engaging with our clients in private equity, infrastructure, real estate and credit. And within each of those verticals, just to cover them briefly, in private equity, we are offering our clients solutions and traditional buyouts on a regional basis. We engage with our clients in growth equity on an industry basis and then we do have a meaningfully growing core PE strategy as well as our customized portfolio solutions. Within infrastructure, we manage both our opportunistic or value-add core plus strategy on a global basis as well as on an Asia-specific basis, and then we also offer our core infra solution. Within real estate, we offer both equity as well as credit solutions. And then within the credit space, we offer both leveraged credit or public market credit as well as private credit across a variety of different solutions. And the way we do this and the way we organize our client and partner group is into 4 specific areas. And again, as a quick reminder, our client group is responsible for, again, engaging with clients and prospects, developing new products and marketing -- ultimately marketing our investment solutions. And the 4 areas we have are our global sales effort, which we divide between institutional and then break that down further across geographies; and then our private wealth effort, which we also break down across geographies, and I'll get into both of those in a few minutes. Our second area is our global product team. And again, this team is responsible for partnering with the investment teams as well as the sales teams to build new products and ultimately lead the fundraising effort. This group is divided across our private markets team, which covers PE and infra, real estate and credit. We also have a client and product services team, which is responsible for RFPs and client reporting. This year, we have started to build out our marketing team, and this group is responsible for helping us to deliver a top-notch client experience. This is the group that helps craft marketing messages and help scale our thought leadership. And then within that group, we have an effort that's focused on product marketing. We have a team that's focused on client -- or sorry, pardon me, channel marketing. So that's the group partnering with the sales team to help segment the client base and manage sales campaigns. And we're building our capabilities in digital and design. And then fourth is our business management and strategy function. That's the team responsible for management reporting and analytics. We take a very data-driven approach towards distribution, and we are working hard on creating the right metrics and aligning incentives to really maximize our distribution resources. I realize on this spot, I buried the headline. We've been making a meaningful investment in distribution. Today, the firm has 120 dedicated professionals in distribution. This is up by 50% relative to where we are 3 years ago, with the majority of growth actually coming this year. And I would note that given all of the hiring that we've done this year and with the number of new joiners that will be joining before we get to the end of the year, I would envision our total head count to exceed 140 individuals by year-end. Now what this continued investment in distribution has enabled us to do is to significantly grow our capital raising. So you can see on Slide 20 here, our capital raising from 2015 as a reference point, where we were in 2020 and where we were or where we are in the first 6 months of this year. And 2 observations. Number one, we've meaningfully increased the amount of capital we've raised. In fact, 2020 was a record capital-raising year for KKR, followed by the first 6 months of this year, where we've already meaningfully exceeded the amount of capital we raised last year. So that's point number one. Point number two is that it's a very diversified capital raise. You can see we're raising money across all of the key areas in which we operate. And I'd point out that we've been very busy and have a very, very productive capital-raising year thus far, but we've got a lot more stuff in the pipeline. And if you look on this slide, and you can see on the right side, these are all of the expected fundraising that we will be doing over the next 12 months. So you can see we'll be in the market with a European private equity strategy. Our NGT strategy is coming. Our Global Impact strategy is on its way; and then within credit in many areas, including direct lending, both in the U.S. and Europe. And I think one important point I would share is that we've dramatically accelerated the amount of capital we raised earlier this year, which has created a lot of sales capacity for us to focus on these other strategies for the remainder of this year and into next. So with that, let me pivot and talk about some of the key initiatives we've got within distribution and specifically some of the areas that we are really focused on. The first relates to continuing to build our client base. And on Slide 24, here you can see the growth of our LP base since 2010. So we're really proud of the growth we've been able to generate from 2010 to 2020. We've grown the LP base by almost 3.5x. And year-to-date, this has been a really important focus of ours, and we've grown the LP base by 17%. Having said this, 1,300, 1,400 clients is still a relatively small number when you look at the thousands of institutional clients across the globe, many of whom may not know us as well as we would want them to, and frankly, many of whom we haven't proactively engaged with. And so prospecting is a key objective of ours. And many of those new hires that I referenced earlier are going to help us do just that. The second -- and I'll point out here, one of the benefits of focusing on new client acquisition is you can see it through our numbers. So in this chart here, you'll see our capital raises to date for Asia, 4; North America, 13; and Global Infra, 4. And these are bar charts that are showing the percentage of clients that have invested in 3 different categories. One is -- and the gray-shaded regions are those that are -- investors that are essentially re-upping in our -- going from Asia 3 to Asia 4 or North America 12 to 13 or Infra 3 to 4. The light purple wedges are new fund investors to the products. So these are investors that may have invested with us in 1 product, and now they're investing in a new one. And then the third category are that dark purple or aubergine is brand-new fund investors to KKR. And so you'll -- you can see here that we continue to make some good progress on growing our LP base. So the second key area of focus we have here in distribution is really continuing our product extensions to meet the needs of our client base. And in particular, and I'm on Slide 27, is focusing on some of our longer-dated and evergreen strategies. And you'll see here those include several of our core offerings. So we offer today a core private equity strategy, which has a longer targeted hold time. We've raised $28-plus billion in that strategy. We launched a diversified core infra strategy, which is close to $7 billion. And our core plus real estate strategy, Property Partners Americas, which is about 18 months old, we've raised a little north of $2 billion. And again, these are strategies where clients are interested in a different risk and return profile and also interested in a longer or a more perpetual investment solution. We have scaled our core business meaningfully. Back in 2017, we had $9 billion in core. Today, we have approximately $37 billion, so representing about a 50% CAGR. And we continue to explore new areas, including core plus real estate, European real estate and core plus Asia real estate equity. I'm going to skip the next slide only other than to say that we operate -- these markets are massive markets that we operate in. So the third area of focus that we have in distribution is expanding our investor base specifically in real estate and in credit. And so what you'll see here is we have been scaling both our real estate AUM and our credit AUM meaningfully over time. One of the ways we are embarking upon doing this is by implementing a generalist-specialist sales model within our institutional business. So I mentioned earlier that our clients are increasing their allocations to alternatives. As they are doing that, they are evolving their organizational structures. They are building their alternatives teams. They are specializing their teams into different segments of the alternatives market. And we here at KKR, we want to organize ourselves so that when we face those investors, we -- our organizational structure looks similar to theirs. So put simply, a state pension plan might have a CIO. It also has a Deputy CIO of Real Estate or a Deputy CIO of Alternative Credit. And so our goal here is to match sales resources with the right individuals. And so as such, we've been, again, building out sales professional teams that are specialized -- with specialized content and knowledge in real estate and credit. Continuing on the fourth area that I'd highlight is winning in Asia. We have invested over $22 billion across pan-Asia private equity deals. And our net IRR -- gross IRR in those deals fully realized is 22%; net IRR, 19%. And so perhaps it's no surprise that this is an area that we are continuing to see very meaningful interest in. In fact, last year, approximately 40% of the capital we raised has come from Asia investment solutions. And in short, we've been meaningfully scaling this -- our Asia platform. You can see in 2016, we had $10 billion in Asia investment solutions. And today, we have $37 billion. So meaningful growth rate. And it's not just in Asia private equity. We've, not too long ago, launched our first Asia real estate strategy, raised close to $2 billion. We raised our first Asia infra strategy, raising close to $4 billion. And we are in the market with an Asia credit solution, and we have plans to be launching an Asia growth strategy. So this continues to be a meaningful part of our growth strategy. The fifth area of focus, and this is a really, really exciting one, which is our investment in private wealth. And as I mentioned earlier on, you can see that the private wealth market is poised for continued growth in the alternatives part of the market. And so we are incredibly excited to be actively engaging. We are building out our efforts in 2 ways. The first is we continue to build our teams in the Americas, in Europe and in Asia and making pretty important and significant hiring. The second thing that we're focused on is democratizing access to high-quality investment solutions to private wealth investors. So put simply, we are customizing investment solutions to explicitly fit within the private wealth channel. And I'll spend some time talking about both. Just in terms of how we're organizing our efforts, we see and segment the private wealth market into 2 big categories. The first is our partnership with private wealth partners. So think of those as financial advisers and financial intermediaries. Here in the U.S., it's the wires. It's the independent BDs. It's the RIAs. And then we are focused -- outside the U.S., it's global private banks. It's regional private banks. And so there, we've organized the business again by geography, in the U.S., EMEA, APAC and Lat Am. The second part of the private wealth market that we're intently focused on is the family capital part and think about that as single-family offices, multifamily offices, ultra-high net worth investors and some of those real large and sophisticated RIAs. And again, we have more of a regional focus. And to date, this year, we've raised approximately -- 50% of our capital we've raised has come from the private wealth market, and we would expect that percentage to grow meaningfully over time as we continue to build out our access and our teams and as allocations to also continue to grow. Now I mentioned democratizing access is a really important component of our strategy. So we have historically offered our private fund investment solutions through the private wealth space. But obviously, there's only a limited number of private wealth investors that are qualified buyers and really where private funds are appropriate and they would be eligible. And so one of the things that we focused on is creating new investment solutions that are in registered fund format that have a much wider applicability within the private wealth channel. And so you can see on this slide, our current democratized lineup of solutions. And I can just briefly cover the 3 different strategies. We have, right in the middle, our [ KCAP ] strategy. That's our registered 40 Act Credit Interval Fund. The fund provides investors with access to both the public and private market credit. On the right side, we've got KREST. That's our registered fund which is taxed as a REIT. This provides investors with diversified exposure to global real estate. And then on the left side, our iCapital KKR Private Markets Fund or we call it iKPMF. And that's a registered fund, which is sponsored by iCapital, although we here at KKR hold an equity interest in the fund. And that fund has a minimum of 80% invested in KKR investment solutions. And the important thing to understand about all 3 of these funds is they're registered funds, they take advantage of the 40 Act. And in some ways, they are similar to traditional mutual funds. However, one big difference is they're liquidity protected, meaning that they do provide liquidity, but it's on a limited basis. And that's the way we believe it's intelligently and thoughtfully and appropriately structured so that you can incorporate illiquid and private investment solutions into these investment strategies. And by the way, as a result of our efforts, having both private funds as well as registered funds, we've -- that's made KKR much more relevant within the broader financial adviser community. So you can see here on this slide, we have meaningfully grown the number of financial advisers that partner with us here at KKR. Now I would note that this is still -- 4,000 advisers is still a small fraction to the total number of advisers in the market. And so we've got a lot of opportunity to continue to grow, and that's one of the reasons why we're investing meaningful resources and head count in this part of the market. Now the last area that we're focused on is delivering an exceptional client experience. We believe -- and just flip into the next slide, we believe that it's critical for us to deliver and leverage all of the exceptional thought leadership and content we have here at KKR to all of our investors and all of our clients. We want all of our clients to not only have access to the great investment solutions, but also access to our thought leadership and our intellectual capital. So that's a really -- and again, I mentioned an investment in marketing, that's a huge component of it. The second thing that we're focused on to enhance the client experience is really focusing on an omni-channel marketing and servicing effort. So put simply -- I know everybody's got one of these things at their desk. You may even be checking your e-mail right now. But we believe it's critical for us to be engaging with our investors, both face-to-face, by video and digitally. So that's part of the reason why we're investing in building out our digital client portal and our whole suite of engagement online. And then finally, we are increasing the use of data and analytics to ensure that we are customizing the client experience for each and every one of our clients. So that really means delivering the right messages to the right clients at the right time. So those are the key initiatives that we're pursuing here. I know I covered a lot. So I'm going to summarize it real quickly and then, Brian, we can jump right into those questions. But look, number one -- 4 things. Number one, we at KKR are very fortunate to be operating in a market, which is experiencing strong secular growth, and we see allocations to alternatives continuing to grow especially as we see more and more private wealth investors allocating to alts. Two, KKR continues to grow our market share in this growing market. Over the past 16-plus years, we have grown at basically twice the speed of the alternatives market. And by the way, it shows in our capital raising effort. Third, we are making a strategic investment in distribution, and this includes all areas, institutional as well as importantly, private wealth. And then fourth, we're pursuing a number of key growth initiatives, which we believe will significantly help grow our client base, scale our efforts in real estate and credit and really become a leading player within the private wealth space, again, as the private wealth market grows. So with that, I'll stop here, and Brian, we can hit some Q&A.

Well, thanks for that, Eric. I've got a couple of questions for you in about the 10 minutes we have remaining. So why don't we start talking a little bit about your team structure. Eric, you're fairly new to the firm, taking the helm of this group after Suzanne led it for over 11 years. How did your time at PIMCO prepare you for this role? And are there any ideas or strategies you've implemented that were quite different from before?

Sure. It's really interesting. At my former firm, obviously, operating in a different part of the market, but a very different scale in terms of the number of clients and the number of investors. And as I came over here, and I saw all of the amazing investment solutions that the firm has. And I saw some really great track records across all the things that we do, it struck me that we should have a lot more clients here. And so part of the drive towards hiring more people and investing in more sales capacity was to really meaningfully expand the number of clients that we work with here at KKR. So that was one really important, I think, thing that I took with me. The other is there's so much great content that gets developed here at KKR. If you look at our global macro team Henry McVey leads and you look at the alternative asset allocation perspectives that he and his team generate, you look at the Global Institute and our views on policy, and these are all really valuable insights that have a material impact on how we allocate capital here at the firm. And it struck me that our clients broadly would deeply value from exposure to those insights as well. And by the way, the firm has always been generous in sharing this content with our clients. But we realize that there are so many clients that have different needs for different levels of that content, and we want to make sure to ensure that all of our clients have access to the relevant material. So that's another important thing that I've brought with me here. Having said that, the firm has been on a very long path towards continuing to build out distribution. And so I don't know if these are really new, but I think there's just a heightened focus here now on those.

Interesting. And then maybe what are your goals for the team? How are you planning to grow the group? And kind of what challenges do you see that you are most urgent to tackle?

Yes. I mean I think, look, there are so many things that -- so many opportunities that we have and so many things that we need to do. I think if I were to try and prioritize them, I think our private wealth build-out is probably one of the top. So I believe that, again, as you see advisers and private wealth investors allocate more to alternatives, I think that there's a -- this is probably not exactly the right way to say it, but raise the market share, where in general, I think most asset managers would agree, it's a lot easier to stake new claim to real estate as opposed to trying to displace somebody that already has a position in a portfolio. And so we here at KKR are moving very quickly on the wealth front because as an investor goes from allocating 2% to 4% to 6% to 8% to 10% of his or her portfolio into alts, we want to be one of the incumbent managers. And so there is a real urgency to build our team in Asia, build our team in Europe, staff up our team in the U.S. and then also really leverage the registered products that we already have available and make them -- get them on more and more platforms and get them into the hands of more and more investors. So I'd say that's a real important metric that we're looking at, which is the build-out of our teams and ultimately the penetration of our wealth solutions.

Excellent. Clearly, your investments have paid off thus far. KKR raised nearly $60 billion of new capital in 2Q, well above the $44 billion you raised across all of 2020. Maybe you can give us a bit of insight into which strategies are the most in favor at this point? Are you starting to see investors getting more comfortable with real estate as companies begin to return to office? Or is there another area investors still prefer?

Yes. It's interesting. If you look at the capital we raised this year, it's very well diversified. Now a lot -- some of the capital came certainly into our flagship Americas PE strategy, which is a hugely important growth driver of the firm, and it's something that we've been doing for a really long time. But if you look, a very meaningful portion came in the form of infrastructure. Now investors are -- historically, infrastructure hasn't necessarily been part, an active allocation to many institutional investors and wealth investors. But in this past year, we've seen a meaningful increase of interest from investors in infrastructure solutions. And then as you had mentioned, investors are absolutely allocating to real estate. And we've seen interest in multiple areas. So certainly, within our opportunistic real estate strategies, whether it's in Asia, Europe or the U.S. And we've grown our footprints in all 3 of those markets pretty meaningfully. We're seeing in the core plus equity part of the market. And then we're also seeing even in the real estate debt market as well. So while I do think certainly some investors have perhaps gotten a bit concerned about real estate given COVID, I think the reality is there's some really attractive investment opportunities, and our investors are excited about participating.

Sure. I mean you mentioned those areas -- clearly, investors are still interested in the areas you mentioned, North America, European PE fund, Asian PE fund. But are you starting to see demand from more specific regional strategies, maybe something like a European technology fund or Asia health care fund?

Good question. Look, there are so many -- the fun part about this business is that investors are -- no 2 investors are the same. In general, we've seen more demand for either strategies at a regional basis, which gives the firm an opportunity to be tactical across different industries or we've seen demand for a specific industry where the firm could be tactical across regions. One of the ways we believe we can add meaningful value in portfolios is having that flexibility to find great companies at great valuations. So to date, we haven't necessarily gone down both industry and region. Having said that, we likely will see over time -- we will launch new investment solutions that are a little bit more narrowly focused. So for example, in Asia, perhaps an Asia growth solution. The one thing I would caveat is this, when you get very specific and you lose those degrees of freedom, potentially, you do lose the opportunity to add alpha. And so we think one of our hallmarks here of KKR is having a global footprint and being able to look across the capital stack, look across industries, look across regions and really try and find value for our clients. And so as you slice the -- whatever too thinly, you lose those degrees of freedom and you lose that alpha opportunity.

I've got a lot more questions, but we're kind of running up against the time here. We're right at the 11:10 mark. So maybe we'll just thank you for your presentation, and thanks for sharing.

Well, Brian, thank you so much for your time, and thank you all for listening in today. It was a pleasure to have a chance to talk a little bit more about our distribution efforts here at KKR. And I hope everyone has a great rest of the conference.