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

All right. Good afternoon, everyone. Thanks for joining us for this next session. I'm Ben Budish. I cover the U.S. brokers, asset managers and exchanges here at Barclays for this next chat. From KKR, we've got CFO, Rob Lewin. Rob, thanks so much for being here.

Ben, thanks for having me and having the team. Great turnout today.

Before we dive into the details of some of the various parts of KKR, can you maybe level set for the group here, what are some of your key focuses for the firm? How is KKR -- how do you view the company as different from some of your peers?

Sure. So we've spent much of the past couple of decades really building out a business model very much on purpose that accentuates our core capabilities and our strengths. And so that's investing acumen at the top of the list. capital allocation, access to differentiated forms of culture. And then probably most importantly is the collaborative culture that we've created across the entire firm. We still pay everybody at KKR off of one compensation P&L. And so if you look at our asset management business, now approaching $700 billion of assets under management, 49-year track record. Much of those core capabilities have been built up inside of our asset management franchise. And we have no aspiration to be all things to all people in asset management. So it's about taking those core capabilities and extending them to other parts of our firm. It's why we have an insurance business is why we have strategic holdings. As you think about our insurance footprint, Global Atlantic, we think best-in-class in sourcing long-dated and predictable liabilities with a risk management overlay. From KKR's perspective, I think it's well understood that when you're sourcing liabilities, a great synergy is our investment platform. And I would take our global investment platform against anybody out there. But I think there's a number of other synergies where we're able to really leverage those core capabilities. I think the one that's maybe as impactful but less well understood is our access to distribution. Our IV funds and our recent strategic partnership upsized with Japan Post, really about third-party capital that pays asset management economics to Global Atlantic and really invest up and down the assets and liabilities of Global Atlantic. And we are accessing through our global distribution team in our asset management business, those same investors to invest in an insurance asset class. IV plus Japan Post, that latest iteration of funds is already north of 2x where we were in IV 2. There's additional synergy with our capital markets business, our geographic breadth. I'll come to that maybe a little bit later on in this discussion. And then finally, strategic holdings. As we think about strategic holdings, it's an unconstrained addressable market, and it's an area where we are leveraging our global private equity footprint. We think we are the best private equity investor globally, sourcing investments, building companies. I would say our clients, our limited partners back that up and that we've got the most significant amount of AUM in direct private equity relative to any of our peers. And so an unconstrained addressable market in an area where we've got a real right to win organizationally. That's why we have strategic holdings as a part of our business plan. It is on top of everything that we are doing in asset management and insurance. And the best part about this business model is we don't believe that in order to achieve long-term and perpetual growth that we need to add meaningfully to our number of people or the operating complexity inside of our business. So importantly, not only does it accentuate that core capability around our culture, it allows us to retain it. And that's why we're most excited about our business model. Of course, we think there's a lot of growth in what we're doing over the next 3 to 5 years. But just as importantly, more importantly, as we think about the next 10 or 15 years, we think we've got the business model that sets us up really well to go out and execute against.

Okay. Great. Maybe turning to a more zoomed-out macro question. Talk a bit about what you're seeing most recently in terms of realizations, transacting activity. Does it look like 2026 could be the year we've been waiting for? What are the key factors? What's the house view on rates and inflation? How are you thinking about all that?

Sure. I think the global macro backdrop is one that is clearly very constructive right now. Global equity markets are close to all-time highs. Fixed income spreads are really tight. Volatility indices remain at relatively low levels now for a multi-month period of time. Forward-looking metric I look at a lot is CLO formation, which is strong. And so you're starting to see naturally a buildup in the IPO calendar. You're seeing increased levels of secondaries, and you're seeing growing pipelines across sponsor-backed exits. I was actually having breakfast earlier this morning with a senior member of our sponsor coverage team. So this covers both sponsor clients from our private credit as well as capital markets businesses. And they're starting to see growing pipelines that are consistent with that. And so we'll see what happens over the next few months, but we're pretty constructive looking into 2026 right now, Ben. And then you asked his views on inflation and interest rates. Consistent with some of our past commentary here. Organizationally, we expect inflation to continue to persist north of that 2% Fed target level. But at the same time, we do expect 2 interest rate cuts this year, 3 next year. Given some of the recent employment data, probably bias there is for increased cuts over time. And so not a market shift in how we're thinking about some of those core macro drivers.

Got it. Well, why don't we come back to private equity. So in your opening remarks, you sounded quite confident on KKR's franchise there. How would you describe current LP attitudes towards traditional PE? It seems like the whole industry for a few years have been struggling to raise and realize can KKR be an exception? And I'm also curious, and we've heard a lot of trends about things like GP consolidation. Anything you can share, any anecdotes that might -- things you might be observing on that kind of theme?

Sure. I think it is fair to say that our industry has struggled at returning capital to our collective clients over the past couple of years. I think one of the largest drivers around that is a level of overdeployment that our industry had in 2021 and 2022, early '22 when multiples were quite high. It hasn't allowed for some of those near-term exits that our industry has gotten used to. And I think one of the differentiators of KKR and you look at our private equity franchise, what's different about us is we've had a real focus on linear deployment of capital really since the financial crisis 15 years ago. And so relative to our industry, we well outdeployed our industry in 2020. We underdeployed against the industry in 2021. Actually, our private equity deployment -- global private equity deployment in 2020 and 2021 were roughly equivalent to each other. I bet if you look at most industry participants, you would see a big multiple in 2021 and early '22 deployment relative to 2020. That's not the case with us. And I think that's one of the big reasons why we've outperformed from a returns perspective. And importantly, we've returned from a capital -- outperformed rather, from a capital return and DPI perspective. If you look at our Americas private equity franchise, over the past 8 years, we have distributed twice as much capital as we've called. And in each of those 8 years, we have returned at least as much capital as we've called in any given year. Given that, that's been a growing business for us, I think that further highlights the point. And you see our Americas XII fund, our most mature recent fund, has a gross IRR north of 20% today, attractive DPI metrics. I think that's all translated to the fundraising success that you're seeing across our private equity franchise, our most recent Americas Private Equity Fund, 14, currently at $16 billion of capital as of June 30. Our last fund was roughly $18 billion, so a lot of good momentum there. And I think that capital raising has really underpinned some of the successes we've had in capital raising across all of KKR over the past couple of years. Lastly, Ben, you had asked on GP consolidation. I'm personally not a big proponent of GP consolidation or I think you're going to see a ton of GP consolidation, at least on the inorganic side. From KKR's perspective, we have a really high bar in how we think about inorganic growth in the asset management space. From our perspective, we really look for businesses that have differentiated forms of capital, capital that might elongate our capital base, certainly diversify it, capabilities that can source across our platform, including Global Atlantic, including C-Series. So I don't expect a lot of GP consolidation in the inorganic sense. That said, I do think in this next wave of capital return to clients and capital raising, you're going to see a number of GPs that are going to shrink in size and some materially so. And given that they've got relatively high fixed cost basis, you could see some of those firms go away altogether. And so I think organically, you're going to see a fair bit of GP consolidation over the next 5 years. And that should inure to the bigger players and certainly the players who have been able to deliver on behalf of their clients, and we feel well positioned there.

Sticking on the PE side, can you maybe talk about deployment opportunities? Where are you seeing the most interesting opportunities to deploy in traditional private equity these days?

We've had a healthy amount of deployment over the past 12 months in global private equity across everything we do, roughly $16 billion of capital. We've been particularly active internationally outside of the U.S. And as a reminder, roughly 50% of our investment professionals sit outside of the U.S. We've been quite constructive in Europe over the past 12 months, pockets of areas in Asia, we've really leaned into. The two I'd highlight are Japan and India for very different reasons. Of course, Japan is coming out of a multi-decade deflationary environment. I think we're really well positioned on the ground there. And India, we're a big believer in the multi-decade growth that the economy will benefit from a rising middle class. No doubt you'll have a lot of volatility over that period of time, but we think that volatility can create some interesting investment opportunities for us.

Great. And you kind of answered my next question on the opportunities in Asia. Is there anything else to add that was going to be the next one?

I think if it's okay, Ben, I think spending a bit of time on our Asia platform is worthwhile. Today, in Asia, we have roughly $80 billion of assets under management, and we are the leading alts player by some margin in that part of the world. 5, 6 years ago, that number was closer to $20 billion. And of that $20 billion, 90% was private equity. Of our $80 billion of capital today, less than 50% comes from private equity. So while our private equity business has doubled over that time period, our business in Asia Pac has diversified quite a bit as we scaled infrastructure, real estate and credit. We've been on the ground there since 2005. We've got very large, deep and local teams across 8 geographies in Asia Pac. And as we think about that opportunity over the next decade, we believe more than half of global GDP growth is going to come from that part of the world. secularly, adoption to alternatives is still well behind in Asia versus Western markets. And so we can see some shift change there as well. And our market position in that part of the world, I think, really does differentiate us. There's some real barriers to entry from what we've built up over the past approximately 20 years.

Great. Maybe now switching gears to infrastructure real quick. So that is your other significant flagship fund in the market. Maybe talk about how LPs are currently thinking about allocations to this asset class? What might that mean for the ultimate level of fundraising for the fund in the market? How do kind of deployment opportunities play into this? Does that sort of expand the TAM or the appetite from LPs even further?

Yes, I think it for sure does. If you look at our infrastructure business zooming out for a second, roughly $90 billion of AUM. I'm going to do another comparison relative to where that was. So 5 years ago, that business was $15 billion of AUM, so $15 billion to $90 billion, all organic. So 5, 6 years ago, we had, I think, a great team built out in infrastructure, still more of maybe an upstart competitor in a lot of ways. Today, you look at our global infrastructure franchise, I think we're regarded fairly so as amongst the real leaders in infrastructure investing globally. Steve mentioned our flagship capital raise, where there's really good momentum. But it's more than just that, our diversified core infrastructure strategy, now roughly $13 billion of AUM. We've got quite a bit of momentum in our K-Series vehicles that are infrastructure related. And our Asia infrastructure business, I referenced just a minute ago, on its third capital raise for that strategy. And that's an area, and we've talked about this in the past, given the amount of infrastructure investment that's required in that part of the world and our leading franchise in Asia infrastructure investing, we've got quite a bit of optimism about what that business can be both from a client interaction perspective at KKR and then what it can mean for our shareholders. And a lot get made, you mentioned these flagship capital raises and the word flagship gets thrown around quite a bit. We've said our job is to really proliferate the number of funds we have at KKR that are "flagships". And I think Asia infrastructure soon can be in that category.

Great. Maybe moving over to credit now. So you recently closed on a $6.5 billion ABF fund, which is your largest in credit. Where do you see the next leg of near-term growth in the broader credit business coming from? Is it scaling this franchise? You've got a nontraded BDC in the market? Like how do you think about that growth vector?

So our credit business is roughly $260 billion of AUM today. It's our largest business by AUM. And ABF, the asset-based finance part of that business is roughly $75 billion. And our asset-based finance business operates today in an addressable market that we think is plus or minus $5 trillion in size, growing to $8 trillion to $9 trillion over time. And much of the addressable market still today sits on regional bank balance sheets. And so a big opportunity, I think, for our industry from a share perspective is shifting allocation of dollars from regional bank balance sheets over time to the alternative asset management space. And I think the biggest reason for that shift that you'll see, and this is not all going to happen at once, of course, is that our industry has a core competency in creating long-dated liabilities, whether that's long-dated fund structures, permanent capital vehicles like BDCs, long-dated insurance liabilities. And much like you would have seen in direct lending over the past 10 years, it's that duration of capital that's a real competitive advantage, especially when much of the capital you're competing against is really coming from on-demand liabilities in bank deposits. And so over time, I think there's a real opportunity for our industry to take increased share. And I think given our leading platform today, our 18 origination platforms that we benefit from across the globe, we're really well situated from an industry perspective to participate in that share growth. So that would be one that I would highlight. We are raising capital today around opportunistic credit, direct lending, junior capital opportunities related credit investing down the capital structure. This year is shaping up either close to a record capital raising year for us in credit or will be a record capital raising year for us in credit. So a lot of momentum in this part of our business, both from a returns perspective and then capital formation on top of that.

We touched on a bunch of the different segments of your asset management business. Maybe thinking more broadly about deployment, the tactical timing of the back half of the year. I mean, how are things shaking as we're going into the next couple of quarters? Curious about your capital markets fees. I think on your last update on your earnings call, you said the back half should look flattish with upside from constructive markets. How are things trending so far? Is there any update you can share there?

If you look at the first half in capital markets, we generated $430 million of fee revenue. I think there are some interesting stats that are worth sharing on that $430 million. Just under 30% of that revenue, respectively, came from each of our private equity and infrastructure businesses. On top of that, an additional 20% came from our third-party capital markets business. So pretty well diversified from an origination perspective. And I think that's part of the reason why you zoom out our Capital Markets business, why we have, I would say, increased the floor in what that business is able to generate. If you look at 2022 and 2023, for much of those 2 years, the equity and debt capital markets were largely closed. And our Capital Markets business generated plus or minus $600 million of revenue in each of those 2 years. Now it wasn't that long ago, and you've known us for a while, where in a really good year, we were generating $600 million of fees in that business. Then fast forward to 2024, the markets were more open and our business really did capitalize on that, generating approximately $1 billion of revenue. And I think we've shown we were able to protect the P&L in down markets and be able to capitalize in up markets. Now when I look at 2025, I don't think we're going to quite get to 2024 levels from a revenue perspective, but we continue to be quite constructive on this business. And importantly, we really think we can grow this business over the next 3 to 5 years. As KKR does more around the world, our capital markets business is poised to capitalize on that. I believe there's an opportunity for us to take increased share in our third-party capital markets business where we've got, I believe, a really differentiated model and offering to the market. And we've talked about in some of these settings before, the opportunity and the synergy between Global Atlantic and our Capital Markets business. where we're just getting going on that. And I've talked about the opportunity here being in the hundreds of millions of dollars from a fee perspective. So a lot of opportunity for us to continue to grow this franchise over time. by nature, it will have some lumpiness to it. But really, as we evaluate performance, it's over that multiyear period of time. And as we look back over the past 3, 3.5 years, we're quite proud of what we've been able to generate given in the different market cycles that, that business has faced.

Great. Maybe moving on to your wealth business. So maybe just to start, can you give us a little bit of an overview of the current product suite where are you focused on building out distribution, where is there room for additional product innovation?

So there's really two parts of our wealth franchise today or Wealth Franchise that I think you're referring to. And so there's our C-suite, vehicles and products where today, I would say there's a predominant focus on the credit investor on up. And we've got large vehicles and products and companies up and running across our 4 major investing verticals. So it's private equity, infrastructure, real estate and credit. In fact, in credit, we've got 2 separate vehicles. We have a nontraded BDC, and we're in the process of converting an opportunities fund into an asset-based finance product that we're quite excited about, given some of the secular dynamics that I referenced a few minutes ago. Quite a bit of momentum in K Suite. So far, we're tracking ahead of what our expectations have been for this part of our business. As of September 1 closing, so 8 months into the year, we've generated just about $10 billion of capital raised. So that's right around $1.25 billion per month across our C-suite. If you look back at the first 8 months of 2024, that number was closer to $800 million a month. And so a 50-plus percent increase in capital raising year-on-year. We continue to believe that this channel will have real adoption over the next several years. And while our focus isn't month-to-month or year-to-year, capital raising in this business, it really is not -- we are pleased by the receptivity. And so far, we've been able to deliver from a returns perspective to this new client base and think that the opportunity over the next 5, 7, 10 years is one where we can really differentiate ourselves further differentiate ourselves on the performance side and build a business here that we're really proud of. Sorry. That was the first part of our Wealth Business. I'd be remiss if I didn't talk about the second part of our wealth business that we're building out, which is really our partnership with the Capital Group, where we are exclusive partners to each other on building private and public hybrid solutions for clients and benefit from capital groups really leading position around distribution through to the financial adviser community. We, today, have 2 products on offer in the credit space. We have a public private equity hybrid product, that is currently under registration and have talked about potentially creating a real asset product over time as well. And so we're in the earliest days of that partnership but we think that, that can be additional addressable market that today, C-Suite really doesn't attract and doing so with a really first-class partner in the capital group.

Maybe one final question on the retail side. One of the questions we get asked quite often is, how do you manage the conflict between retail fundraising, which needs to be invested immediately and is earning fees immediately versus institutional capital, which can be patient, but doesn't always generate fees right away. How do you think about managing those 2 sides and that sort of kind of inherent conflict at times?

Yes, I'm really glad you asked this question. And we spent a lot of time on product construction here. And so I'd say, if you look at our private equity and infrastructure, vehicles, we spent over 2 years with those products in the lab. And one of the really important things for us from the earliest of days was to make sure that our institutional vehicles and our wealth vehicles, we're really investing in the same deals. What we didn't want to have happen and we structured accordingly was for one investor group to be well overweighted in a transaction versus the other. And so unlike what some of our peers are structured that relies more on greenfield investing relies on large co-investing, we're investing largely pari passu between institutional and retail and wealth. And I think that, that's a really important differentiator. I think that really, as we think about some of the reputational risks in the space as we think about managing complex I think how we've structured these vehicles, these funds is really important to keep in mind as you think about the question that you asked. And that's one that we spent organizationally a really long time talking about and focused on making sure we can come up with as best the structure we can to mitigate that risk that you highlighted.

Got it. Okay. Maybe moving to Global Atlantic. So you've owned 100% of that business for a few years now. And maybe just to start, can you talk about the changes you've made since you've owned the entirety of the business, how things have evolved in the last few years or so?

So when you have roughly 40% of the business owned by co-investors, a really important quarter-to-quarter measure of performance is book value. And I believe book value and book value per share in the insurance business over a multiyear period of time is a really important metric. But quarter-to-quarter, given what could move around on an insurance company balance sheet it is a less relevant metric. And so we've refocused really how we think about the business and driving profitability. So what have we done? Number one, we really turned on the full KKR organization for the opportunity at Global Atlantic. And as I said, Global Atlantic is great at sourcing, long-dated, predictable liabilities, great risk management overlay to that. And one area where we've changed approach is that we are now focused on longer duration liabilities. And in turn, increasing our exposure to alternatives on the asset side of the balance sheet. Interestingly, and I think this surprised a lot of people when they hear for the first time about a year ago, Global Atlantic had 0 private equity allocation on its balance sheet. If you look at the vast majority of insurance companies, the world mutuals, many of which are KKR private equity clients, but Global Atlantic was not. And so today, we have roughly 1% allocation to alternatives, industry average is closer to 5% to 8%. And you should expect us, as we elongate our liabilities to shift our asset exposure up closer to industry average. Some of the changes we've made today, the co-CIOs the Global Atlantic balance sheet are long-time KKR partners, really enabling us to be able to get the most out of our investing platform. We've fully turned on, as I talked about distribution for third-party capital. When you own 63% of the profitability of a business, it's really hard to fully turn on a $100 organizational cost, which is our distribution. Now that we own 100% of Global Atlantic there really isn't anything to think about. And so we fully turned on distribution. That's another, I would say, change, and you've seen that play through as it relates to the momentum we have on our capital raising efforts. And so those would be some of the changes that you would have seen since 100% ownership. We feel really good about the trajectory of the business and importantly, how we're setting ourselves up over the course of the next several years to be a real leading player in what we believe to be a growing marketplace over that period of time.

And maybe can you talk about what you're seeing currently? How would you describe the current environment for retail annuities. We've heard from some of your competitors about increasing competition, narrowing market-wide spreads, weighing on yields. How -- what are you seeing from your [indiscernible]?

Yes. I don't think it's a surprise in this kind of a market environment that you're seeing increased levels of competition. It's part of the reason, not the most significant reason. But it's part of the reason why we're focused on more long-duration liabilities on the margin, we see less competition there than we do in some of the short-dated liabilities. But from our perspective, it's not -- we don't just look at one period of time. And today, we still operate at a level where we're able to achieve our cost of capital hurdles for that business, even with that intensified competition, even with where fixed income spreads are. But sure as we're sitting here, there will be moments in time in the insurance business when volatility levels are up, and in turn, insurance companies are going to want to deploy less capital in those kind of environments. So there will be less competition on the liability side, which is at the very same period of time where definitionally spreads on the asset side are increasing. And so how have we set ourselves up. Well, third-party capital is going to be a big part of our model in that kind of environment. Just like in a private equity context where we could draw down a private equity fund to be able to invest into dislocation. We have the ability to draw down our third-party capital, our IV funds as an example, to be able to invest into dislocation. The other competitive advantage that KKR would have, I think, relative to the industry in that kind of environment, is we have free cash flow KKR that sits outside of our insurance business. And if the market opportunity is so meaningful, we've got the ability to redirect capital to be able to capitalize on that market opportunity. I think unlike what most insurance companies will be able to do at that point in time. So I think as we evaluate how we've situated ourselves in our insurance business, it's very much how do we think we're going to perform through a cycle. Yes, you've highlighted that we're at a point in the cycle today where there's more competition on the liability side. And on the asset side, there's a lot more competition, too, broadly speaking, given where spreads are.

Maybe putting that all together, just from a P&L perspective, so I think your current guidance calls for a continued kind of flattish near-term outlook for insurance operating earnings despite ongoing growth in the asset base. How should investors think about the cadence of the timing of the inflection here, given your plans to elongate the liability profile, what should we expect in terms of when you might get back to like a mid-teens reported pretax ROE?

And so what we've said, to be clear, is we think that I believe for the next handful of quarters that we would expect operating earnings to be flattish, plus or minus in the business. And I think there's a couple of reasons for that. Number one, and I think the largest driver here is as we think about increasing our alternatives portfolio, we cash account for that alternative portfolio. A lot of the market participants, I think is worth noting mark-to-market. I'm not saying there's a right or wrong answer, but for us, we believe cash accounting is the right answer and consistent with how we think about ANI across all of KKR. And so as we're ramping our alternatives portfolio, much of what we're doing in alternatives, actually from a P&L perspective today loses money. Because the ongoing yield is less than the cost of liabilities that we're writing. And what we're making and one that we're really confident in executing in is that we are creating a lot of embedded profitability through accrued gains in our alternatives book that will materialize over time. And so a fair bit of what's going on here is more accounting in nature. I think it would look different if we mark-to-market versus cash accounting as an example. But our belief, and I think if you followed us for a long period of time, I think you would know that we are always going to choose long-term outcomes relative to short-term outcomes. And I'd say there's nothing different here then as we think about insurance. And maybe the last point here is as we're talking about profitability and what we generate in insurance is obviously material and meaningful to KKR as a firm. But I was sitting down with Craig and his team on our IR site last week. And it's worth noting that even with that flattish expectation in insurance, our 2026 consensus growth numbers are industry-leading across our peer set. And so it's a piece of the earnings equation but one piece of our earnings equation as opposed to the predominant one.

I have two final questions. I want to make sure we get to them both, so I'll ask them both here. So first, in addition to Global Atlantic, strategic holdings is the other sort of newest line item at KKR, you talked about this at your last Investor Day, being the sort of solution to solving the longer-term problem of compounding in financial services. So maybe can you give us an update here talk about your current level of conviction? And then the final question, I just want to make sure I get it as well, but just putting it all together, there's a number of sort of medium-term targets you've laid out, fundraising from '24 to '26, 2026 FRE and NTE per share. How are you feeling at the moment about those targets?

Okay. So I'll start on your first question. What we're building out in strategic holdings is really on top of everything we're doing in asset management insurance that we talked about. And it really leverages that core capability around capital allocation, around investing acumen and building businesses, our collaborative culture. And so today, in strategic holdings, we own roughly a 20% stake, direct stake in just under 20 businesses. In aggregate, those businesses on our 20% ownership stake drive approximately $4.1 billion of revenue and $1 billion of EBITDA, so quite sizable in its own right. And what we've articulated to our investors is we believe that strategic holdings will generate cash operating earnings north of $350 million next year, growing to $1.1-plus billion by 2030. And so we're well on our way to being able to accomplish that. We've got a lot of confidence in what we're building. Importantly, there are no people that sit in our strategic holdings segment. So it's very culturally friendly to what we're building across the organization should add to our broader operating leverage as well. And so we're really excited about what this means as an additional growth factor to the firm. One of the questions I get often actually, a little less often these days is the strategic holding add increased risk to your firm. And my response to that is I think it's just the opposite. If we're able to achieve $1.1-plus billion of operating earnings by 2030, and we've got a lot of conviction as a management team that we're going to be able to do that. And at the extreme, everybody left KKR on January 1, 2031. We still have that $1.1 billion of operating earnings. I don't think you can say that across any of our peers. And so from our standpoint, it's both a real growth factor and something that reduces risk in our franchise as opposed to add to risk. And I think sometimes people conflate financial services and capital allocation to one that can add risk, we think it's quite the opposite. And then, Ben, your last question as it relates to some of our guidance, we've got a lot of momentum on the capital raising side, $110 billion of capital raised in the last 12 months, $220 billion the last 2 years. We feel really well situated across our target of $300-plus billion of capital raising from 2024 through to 2026. And then we had put out some targets as it relates to FRE and ANI per share $4.50-plus per share, $7 to $8 of ANI. And on our last earnings call, we had reaffirmed the guidance for both of those measures and have consistent feedback as it relates to our confidence in continuing to be able to achieve those numbers today.

Great. Well, we're just about out of time. But Rob, thank you so much for the pleasure to have you.

Great. Thank you all. Thank you, Ben.