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CEO David Brown stated the goal is to achieve consistent positive organic growth, driven by expanded distribution, new products, and the Amundi partnership. CFO Michael Policarpo declined to quantify the one-time fee impact, attributing the higher fee rate to a combination of positive asset mix, client mix, and the realization event, while reiterating the 46-47 basis point forward guidance.

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CEO Harvey Schwartz highlighted the convergence of insurance and private credit as a key opportunity. He explained Carlyle's strategy involves establishing collaborative partnerships to generate unique asset flow, referencing the Discover transaction. He sees continued global growth as asset-based finance becomes more mainstream for institutional investors seeking improved risk-adjusted returns.

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CEO Harvey Schwartz highlighted the convergence of insurance and private credit as a key driver, noting Carlyle's strategy of forming collaborative origination partnerships. He emphasized the firm's early start and strong capabilities built from its partnership with Fortitude Re. Schwartz sees the market for asset-based finance growing globally beyond insurance to sovereign wealth funds and other institutions, positioning Carlyle's franchise for continued growth.

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CEO Marc Rowan explained that while spreads on commoditized products like CLOs have tightened, Apollo's origination platform has successfully pivoted to maintain attractive new business spreads of around 130 basis points. He noted that current SRE is impacted by the runoff of highly profitable COVID-era business and pointed to future product innovation. CFO Martin Kelly added that spreads widened in Q2 and again in July, supporting the firm's long-term growth outlook for the business.

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Erik Hirsch, Co-CEO, stated that institutional investors comprise about 15% of Evergreen flows, consistent with the prior quarter. He explained this includes smaller institutions that previously used fund-of-funds and larger institutions using the product as a tactical portfolio management tool, viewing it as market expansion rather than cannibalization. CFO Jeffrey Armbrister addressed G&A, stating their internal target is around $33 million per quarter, though they have been outperforming that. He noted the one-time benefit was a couple of million dollars and expects G&A to increase as revenue-tied wirehouse commissions grow.

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CFO Jeff Armbrister clarified the FRE margin calculation, guiding to a high 40% range annually going forward. Co-CEO Erik Hirsch added that while the separate accounts business has been impacted by macro conditions, a strong pipeline of contracted capital is expected to drive growth as markets normalize and noted a strategic focus on evergreen products.

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CEO Michael Arougheti explained that while the broader market has seen fundraising declines, Ares continues to grow due to market consolidation and its strong track record. He stated that Ares has not experienced significant fee pressure and that the attractive spread premium over liquid markets, for both direct lending and asset-based finance, continues to drive institutional demand.

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Michael Arougheti, Co-Founder, CEO & Director, explained that while the broader private credit market has seen fundraising slow, Ares continues to grow due to market consolidation and its strong track record. He stated that Ares has not experienced significant fee pressure and resists requests for fee reductions. Arougheti highlighted that both direct lending and alternative credit still offer attractive return premiums over liquid markets, which continues to attract capital.

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President and CEO Jennifer Johnson noted the Lexington fund's first close is delayed but expects strong full-year alts fundraising of around $18.5B, with 25% from the growing wealth channel. CFO & COO Matthew Nicholls provided detailed expense guidance for fiscal 2025 and reiterated the plan for at least $200 million in run-rate cost savings entering fiscal 2026, with potential offsets from growth initiatives and the Apira acquisition.

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President, CEO & Chair Robert Sharps reiterated the firm has a very high bar for M&A, focusing on deals that are culturally aligned and add new capabilities or client reach. He mentioned retirement and advice capabilities as areas of interest. CFO Jennifer Dardis added that the range of options has expanded beyond full acquisitions to include partnerships and minority investments. Sharps concluded by stating the firm will consider partnering, acquiring, or building capabilities organically.

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CEO Rich Steinmeier expressed strong confidence in the 90% retention target, citing deep engagement with Commonwealth advisors, a commitment to preserving their culture, and the upcoming integration of Commonwealth's CEO into LPL's management. President & CFO Matt Audette clarified that while assets under management (AUM) are higher, a slight decrease in cash balances has resulted in a roughly offsetting effect, keeping the initial run-rate EBITDA forecast stable.

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CEO Jay Horgen described AQR's competitive moat, citing its long history of innovation, robust trading and risk systems, and a significant first-mover advantage in after-tax solutions for wealth clients. President & COO Thomas Wojcik added that there is a 'tremendous amount of runway' for growth, as AQR is actively building out investment, operational, and distribution capacity to meet strong client demand.

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CFO Alan Kirshenbaum explained that the nearly $100 million increase in potential future management fees was driven by the record fundraising quarter, with the first close of the OREF VII net lease fund being a primary contributor. He noted this capital, once deployed at a blended 130 bps fee rate, would boost LTM management fees by over 15%. He expressed confidence in the 18-24 month deployment trajectory, which could accelerate with improving market conditions.

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Co-CEO Scott Nuttall stated that fundraising has remained very active, with $109 billion raised in the last twelve months. He noted that KKR is ahead of pace to meet its 2024-2026 target of over $300 billion. Nuttall observed that institutional investors are getting back to 'business as usual,' with strong interest in infrastructure and private credit. He also highlighted a trend of institutions consolidating relationships with fewer, larger partners, which benefits KKR's diversified platform.

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Christopher Edmonds, President of Fixed Income & Data Services, explained that ICE is methodically expanding its proprietary network capacity in line with client demand, with a development runway through the early 2030s. He emphasized that controlling the network experience is key, as it securely connects participants to over 750 data sources and 150 trading venues.

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President of Fixed Income & Data Services, Christopher Edmonds, responded that the investment in its proprietary network is crucial for controlling the client experience. He noted that about half of the planned capacity is built, with a clear development roadmap through the early 2030s based on client demand. This network provides secure connectivity to over 750 data sources and 150 trading venues.

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CEO Ronald Kruszewski explained that AI will be an "amplifier" for productivity across the firm, driving efficiency rather than replacing staff. He also noted a clear path to improving institutional margins, especially in equities, through the European restructuring. CFO James Marischen added that institutional pretax margins, currently below 15%, should be above 20% in a normalized environment, highlighting significant operating leverage.

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CFO James Marischen detailed that the deposits consist of sweep accounts at tiered rates (with Smart Rate at 4.5%) and treasury deposits priced slightly below Smart Rate. CEO Ron Kruszewski addressed the compensation ratio, stating that they have been accruing conservatively and expect the 58% level to be at the high end of the 2025 range. He anticipates operating leverage as net interest income grows and the Institutional business normalizes.

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CFO Sara Furber stated that, absent mix changes, Tradeweb feels confident it can maintain or modestly grow the fee per million in swaps from current levels. She identified faster growth in higher-priced products, such as emerging markets and RFM protocols, as a key structural tailwind. While acknowledging that dealers moving to fixed plans can be a natural offset, she said the net outlook is constructive. Furber also highlighted the opportunity to grow absolute revenue by electronifying the bilateral swaps market.

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Co-President & Co-COO Joseph Molluso responded that while the company continuously evaluates all opportunities, its most accretive capital allocation in the past five years has been its $1.4 billion share repurchase program. He stated that any potential acquisition must offer a better return than buying back their own stock. While not ruling out M&A, Molluso emphasized that the bar remains high but acknowledged that future opportunities may arise.

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Walter Berman, EVP & CFO, explained that as the bank's securities portfolio turns over, they are seeing a spread increase, which contributes to net interest income growth. He also stated that the bank is launching new liability products, such as high-yield savings and CDs, to comfortably fund its asset and loan growth strategy.

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EVP & CFO Walter Berman explained that as the securities portfolio matures, they are reinvesting at higher spreads, which is contributing to net interest income growth. He stated that the bank is launching new liability products, such as CDs, to fund the planned loan growth and is comfortable with its ability to diversify its funding sources.

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Executive Jim Cracchiolo stated that while the M&A market is pricey, Ameriprise focuses on recruiting advisers and investing in new channels rather than large inorganic deals. For Asset Management, he outlined a path to improved flows through business transformation, efficiency gains, and expanding into formats like model delivery, SMAs, and active ETFs.

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President & COO Jonathan Gray responded that demand for private credit remains extraordinarily robust across investment grades and geographies. He emphasized that while absolute returns may moderate, clients are focused on the enduring premium private credit offers over liquid markets, which was approximately 190 basis points for A-rated credits recently. Gray expressed confidence that this relative value, combined with private credit's unique ability to provide bespoke solutions for large corporate and infrastructure deals, will continue to fuel growth.

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Chairman and CEO Michael O'Grady projected the 30%+ margin target is likely achievable around 2026-2027, assuming a normalized yield curve. EVP & CFO David Fox addressed NII, stating that the firm can reinvest the ~$1.5 billion of securities that mature each quarter at higher yields and is opportunistically extending duration to protect future earnings from rate cuts.

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Terrence Duffy, Chairman & CEO, stated that any relief from what he termed "onerous" requirements would be a "net positive" for CME. He believes freeing up bank balance sheets would enable more risk management activity. Mike Dennis, Senior MD, added that while the final impact depends on the final rule, SLR relief could provide valuable balance sheet flexibility for bank clients.

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Chairman & CEO Terrence Duffy stated that he was pleased with potential changes, viewing current rules as onerous and believing any relief would be a "net positive" for CME by freeing up bank balance sheets for more risk management. Senior MD Mike Dennis added that while no rule is final, SLR relief could provide balance sheet flexibility for banks, though the ultimate impact will depend on the final calibration.

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CEO Ronald O'Hanley confirmed strong sales momentum and high client retention rates, driven by investments in service quality and the Alpha platform, with no elevated losses anticipated. Interim CFO Mark Keating added that the sales success is the result of a multi-year strategic effort. Regarding future NII, Keating acknowledged they are working on mitigation strategies but refrained from providing a 2026 outlook.

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Global President David Howson highlighted a strong start to the year for the SPX complex, driven by market uncertainty that increased demand for hedging. He pointed to record volumes in January for SPX and VIX options. He also reiterated that the Robinhood launch has been successful and is expected to be additive, contributing to a positive outlook based on cyclical and secular trends like retail and international growth.

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Global President David Howson clarified that there is no single blanket percentage increase due to the vast array of products. However, he provided a key data point: pricing contributed about one-third of the DnA segment's growth in Q3. He expects a similar contribution in 2025, stressing that the primary growth strategy is expanding distribution and sales, not just relying on price increases.

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