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Group CFO Rob Irvin projected that interest expense has likely peaked and that balance growth would broadly offset rate cut impacts on interest income. Group CEO Ian Lowitt confirmed the Winterflood deal would be funded with existing liquidity. Chief Strategist Paolo Tonucci described the M&A pipeline as 6-7 live deals, all smaller than Winterflood, primarily in the UK/European financials space with some smaller opportunities in Asia.

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CEO Ian Lowitt characterized the current environment as 'attractive,' with elevated volatility and client activity creating opportunities for Marex. Management added that market share growth is also driven by structural factors like adding new clients and capabilities. Regarding M&A, management expects a cadence of around 4-5 transactions a year, weighted towards bolt-on deals, but confirmed they are also assessing larger, more transformative opportunities, which are less predictable.

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CEO Ian Lowitt described Cowen as a critical long-term strategic asset whose full impact is mostly in the future, with a modest contribution to 2024 growth. An executive, Paolo, noted the business's run rate is improving due to completed integration and cross-selling. Ian Lowitt confirmed the NII sensitivity is firm-wide and that most fixed-rate reinvestment benefits are already in the current run rate.

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CFO Jack Weingart noted that existing LPs increased commitments by over 20% on average in the first close. He expects fund size growth to be at least in line with prior vintages. He clarified that TPG Capital X was activated in July, but Healthcare Partners III would likely activate in Q1 2026, which will dictate the timing of management fee step-downs.

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CEO Jon Winkelried and President Todd Sisitsky emphasized that TPG is differentiated by its strong performance and consistent return of capital (DPI), which resonates with LPs. Sisitsky highlighted the unique portfolio construction, strong portfolio company revenue growth, and team continuity. Winkelried added that TPG is creating strategic partnerships with key clients across multiple products, which provides benefits and creates capital duration, rather than offering simple fee discounts.

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CEO Jon Winkelried reiterated TPG's preference for a 'hybrid structure' rather than a 'balance-sheet-heavy model' for any potential insurance partnership, stressing the importance of finding the right partner. He also noted that TPG is actively engaged in dialogues with traditional firms about partnerships, acknowledging that these relationships are evolving and will not be 'one size fits all'.

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Chief Financial Officer Jack Weingart explained that while TPG is not providing specific guidance, the company anticipates significant management fee growth in 2025. He noted this growth will be driven by the 'building blocks' established in 2024 and is expected to begin in Q1 2025, following the fee step-downs in Q4 2024.

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President Connor Teskey noted the Just Group deal highlights the underappreciated upside of managing assets for Brookfield Wealth Solutions (BWS) globally. CFO Hadley Peer Marshall added that their credit strategy avoids commoditized areas, focusing on asset-backed finance and real assets where they see strong, risk-adjusted returns, which is attractive for insurance portfolios.

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An Unknown Executive confirmed that the firm's full-year fundraising forecast remains unchanged, as market uncertainty tends to drive capital to large, established managers. CFO Hadley Peer Marshall added that the firm has ample debt capacity under its new investment-grade ratings and will be a repeat issuer to support growth. She also confirmed that the strong balance sheet allows for opportunistic share repurchases when they see value.

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CEO James Flatt confirmed that 2025 fundraising is expected to surpass 2024, citing the final closes for two flagship funds, a record year anticipated for complementary strategies, and growth in insurance and high-net-worth channels. CFO Hadley Peer Marshall added that the firm is actively expanding its investment-grade credit capabilities, leveraging its infrastructure and real estate foundation, Oaktree's expertise, and growing corporate direct lending to meet insurance client demand.

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CEO James Flatt described the fundraising situation as a 'high-class problem,' noting that BGTF II fees were paused temporarily and that capital was simultaneously raised for other transition strategies. He expressed high confidence in hitting the fund's target. CFO Hadley Peer Marshall stated the primary goal of the restructuring is to enhance liquidity and that S&P 500 inclusion would be a 'nice upside' but was not the sole driver of the decision.

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CFO Butch Oorlog expressed confidence that an improvement in capital markets would enable the firm to reach its 20% margin target. CEO Paul Shoukry added that while there is significant headroom to grow in alternative products, expansion will be driven by organic client and advisor demand, not by pushing products with quotas, in keeping with the firm's culture.

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CFO Butch Oorlog expressed confidence that an improving capital markets environment would help the firm reach its 20% adjusted pre-tax margin target. CEO Paul Shoukry added that while there is significant headroom for growth in alternative products, the firm's culture is to meet organic client demand rather than pushing products with quotas or incentives.

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CEO Paul Shoukry countered that last quarter's NNA was 4% (mid-5% adjusted) and expressed optimism about future growth. Regarding the private investment platform, Shoukry described it as an open-architecture model with significant upside, focused on providing best-in-class third-party products while also building internal capabilities to create synergies.

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CEO Paul Shoukry expressed strong optimism about returning to best-in-class NNA growth, citing a strong recruiting pipeline and noting the prior quarter's rate was higher. Regarding the private investment platform, he described it as a significant growth opportunity with an open-architecture model designed to serve high-net-worth clients with a wide range of products.

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Chair and CEO Paul Reilly and President Paul Shoukry reiterated their commitment to the 10% target but declined to give a specific timeline, emphasizing prudence. Shoukry noted it was only two years ago that the firm did six acquisitions in two years, asking for patience as they remain disciplined. On advisory revenues, Reilly cautioned against extrapolating the strong results of the last two quarters, noting Q1 benefited from two large fees, including one over $40 million. He described the performance as an 'early recovery' and stated that while the pipeline is strong, the recent run rate would be challenging to maintain.

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Chair & CEO Adena Friedman confirmed a healthy and maturing global pipeline across FinTech. She highlighted that for Financial Crime Management, enterprise deal signings have already doubled the total for all of 2024, with revenue contribution from these larger clients expected to ramp up in Q4 2025 and into 2026 as implementations are completed.

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CEO Adena Friedman stated unequivocally that Nasdaq is not currently evaluating M&A deals. She emphasized that the company is 'laser-focused' on organic growth and delivering on the commitments made with the Adenza acquisition, which include deleveraging, share repurchases, and increasing the dividend.

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Adena Friedman, Chair and CEO, explained that the Corporate Solutions business is affected by the slow issuance and delisting environment. She noted the company is focused on product innovation to capitalize on a market rebound. Friedman also highlighted strong high-single-digit growth in the Analytics part of the business, particularly the 'Invest' product, which is expected to help drive overall growth in the coming years.

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CEO Adena Friedman reiterated that the business is performing in line with expectations. She stated that the current momentum and performance are consistent with the medium-term outlook of mid-teens ARR growth and low-to-mid-teens revenue growth for the combined Adenza businesses.

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CFO Martin S. Small clarified that the Q2 margin of 43.3% was primarily impacted by lower performance fees. He reaffirmed a clear path to a 45% or greater margin over the cycle by aligning controllable expenses with organic growth. Small noted that while acquisitions will increase G&A expense in the near term, these deals are self-funding with strong growth profiles. He pointed to a strong base fee entry rate into Q3, which provides a sound foundation for profitability in the back half of the year.

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Chairman and CEO Laurence Fink responded 'no' to large international acquisitions, stating the focus is on organic growth and strategic partnerships, citing examples in India and Latin America. He emphasized leveraging their existing 'hyper-local' footprint, which is expanding to new countries, and the strength of their European iShares business. Executive Martin Small added that BlackRock has positive financial leverage to growing non-U.S. stock markets, which is accretive to the firm's fee rate.

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Martin Small, an executive, highlighted the strong momentum entering 2025, with Q4 organic base fee growth at 7%, driven by ETFs, private markets, and fixed income. He noted that while GIP's contribution was modest, it signals future potential from a growing infrastructure business. Laurence Fink, an executive, added that a steepening yield curve will encourage investors to move capital from cash into fixed income and income-oriented private market products like private credit and infrastructure to capture higher returns.

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Executive Martin Small stated the GIP deal is a revenue growth story, doubling private markets run-rate management fees. He projected GIP would add approximately $250 million in management fees in Q4 2024 and guided to roughly $1 billion in fees for 2025 with a fund-related earnings (FRE) margin north of 50%.

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Executive Richard Steinmeier explained that LPL has been strengthening same-store sales by providing advisers with enhanced tools for growth coaching, financial planning, and high-net-worth client support. He noted that market volatility often drives a 'flight to quality,' with investors moving from self-directed solutions to professional advisers. Executive Matthew Audette then provided a detailed cash update, noting that April balances decreased to $51.8 billion, a better-than-expected result given seasonal tax payments and advisory fees.

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Executive Matthew Audette clarified that excluding Prudential, core growth in centrally managed assets hit a record, driven by investments in tools and capabilities. Executive Richard Steinmeier added that future opportunities for improving asset monetization include the continued shift from brokerage to advisory, expansion into banking and lending, enhanced asset management partnerships, and strategic pricing adjustments.

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CEO Rich Steinmeier detailed three top priorities: maintaining client-centricity, empowering employees, and driving operating leverage, while affirming the company's core long-term strategy remains unchanged. President and CFO Matthew Audette explained that client cash balances have stabilized at operational levels, and with continued strong organic growth, these balances could begin to grow again from current levels.

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Jay Horgen, President and CEO, explained that AMG's core strategy is to support the long-term independence of its affiliates. However, he noted that partnerships evolve, and sometimes a sale becomes a mutually agreed-upon optimal path. Horgen emphasized that these transactions, like the Peppertree sale, highlight the value created during the partnership, generate significant returns on invested capital for AMG shareholders, and align with the affiliate's own strategic goals.

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CFO Dava Ritchea identified trend-following strategies as the primary source of underperformance, noting this could cause 2025 performance fees to be soft relative to the ~$150 million historical average. She clarified that AMG does not typically acquire 'in-the-ground' carry on new investments, so carried interest is a longer-term opportunity that is expected to grow over time as new funds season.

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CEO Harvey Schwartz stated there are no major adjustments to the timing for launching CP IX, which will be driven by deployment pace. He highlighted significant recent realizations like Hexaware and StandardAero as evidence of the team's ability to navigate the market. CFO John Redett added that the two latest U.S. Buyout vintages appreciated around 18% over the past year, with performance tracking to expectations.

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John Redett, CFO, described the 6% FRE growth guidance as a 'base case' that incorporates aggressive investments in growth areas like Wealth, Credit, and Solutions. He noted potential upside from capital markets fees and insurance flows. Key drivers for credit include the asset-backed business, a larger opportunistic credit fund, and the CTech retail product.

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CEO Harvey Schwartz explained that the certainty of the election outcome is a significant positive for markets, as it boosts CEO and board confidence for capital deployment. He anticipates that policies like tax cuts and lighter regulation will further catalyze M&A and IPO activity. Schwartz described the combination of election certainty and normalizing Fed policy as a "powerful 1-2 punch" for Carlyle's business. CFO John Redett added that portfolio company CEOs have echoed this sentiment, feeling that reduced uncertainty will elevate confidence levels, benefiting capital markets.

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CFO Ilene Sazel Bieler and CEO Christopher Concannon explained that while they don't disclose the fee per million for specific protocols, single-dealer PT has no fee and can cause share volatility. Bieler provided April PT market share figures, noting a total share of ~21.8%, with single-dealer accounting for ~1.3%. Concannon reiterated that while PT and dealer-to-dealer growth pressures overall fee capture, their core client-to-dealer RFQ pricing remains very stable.

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CEO Christopher Concannon outlined how different protocols contribute to growth: portfolio trading impacts share, block trading offers attractive revenue, all-to-all thrives on volatility, and automation sees high demand. CFO Ilene Bieler addressed fee capture, noting puts and takes from product mix (e.g., lower-fee PT vs. higher-fee Open Trading). She emphasized that the primary driver of high-grade fee per million is duration, which can fluctuate significantly with market conditions, but average fees have been broadly stable over time.

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Global Head of Trading Solutions Richard McVey reported the ICE partnership is off to a 'great start,' providing valuable, complementary liquidity in munis and small-size high-yield trades. CEO Christopher Concannon praised the rapid technical integration and noted they will remain close to ICE on future opportunities, including potential treasury clearing initiatives.

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CEO Michael Arougheti highlighted the firm's proven ability to grow AUM even in slow M&A environments, noting that net deployment is often stronger due to fewer refinancings. He identified opportunistic credit, secondaries (both GP and LP-led), and asset-based strategies as key areas for deployment in a subdued market. He also mentioned that primary strategies can pivot to be more opportunistic. He concluded that the firm's record $142 billion of available capital is well-positioned for this type of investing.

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CEO Michael Arougheti noted the LP base for high-grade credit is predominantly insurance-focused. CFO Jarrod Phillips stated GCP is expected to generate ~$200M of FRE in the first 12 months, growing to ~$245M in 2026. Michael Arougheti added that significant fundraising for GCP's data center and real estate funds is already in flight.

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CEO Michael Arougheti stated that no new partnerships are necessary for asset-backed finance, as the existing team of over 70 professionals has ample scale to continue its growth trajectory. CFO Jarrod Phillips affirmed that while the firm is investing in growth, they expect year-over-year FRE margin expansion to continue into 2025, within the previously guided 0-150 basis point range. Michael Arougheti added that excluding supplemental distribution fees, the margin would have already expanded by over 100 basis points.

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CEO Jennifer Johnson stated that the firm is on track with its private markets fundraising goals, having raised $10.4 billion year-to-date. She emphasized the significant opportunity in the wealth channel, where Franklin Templeton has three perpetual products over $1 billion each. While Lexington's next flagship fund close is likely pushed to late 2025 or early 2026, the current market is highly attractive for secondaries. Head of Global Distribution Adam Spector added that the success of perpetual funds is creating momentum for their drawdown fund offerings as well.

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CEO Jennifer Johnson affirmed the strategy to integrate Western's non-investment functions to gain scale while preserving investment team autonomy. CFO Matthew Nicholls provided financial details, noting the outflows' revenue impact and outlining a plan that will temporarily reduce margins but lead to $200 million to $250 million in run-rate expense reductions by fiscal 2026, reaffirming the company's 30% medium-term margin target.

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President James Zelter stated that Apollo is gaining market share from institutional clients, as its 'purchase price matters' philosophy resonates in the current environment. CEO Marc Rowan added that after years of Athene consuming most of its origination, Apollo now has significantly more capacity to serve third-party institutions, particularly in insurance, and is now 'origination constrained' rather than 'client constrained'.

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President Jim Zelter detailed that growth would come from geographic expansion for ATLAS (Europe, Japan, Australia), scaling high-grade capital solutions, and a major focus on hybrid origination. He emphasized that bank partnerships remain a key expansion area, countering the narrative of competition. CEO Marc Rowan added that any M&A would be small, origination-focused deals similar to the Argo acquisition.

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CEO Marc Rowan explained that Apollo's strategy is an open architecture model focused on partnership, not direct competition, with other insurers in the vast private investment-grade market. He noted partners gain access to both assets and Athene's efficient cost structure. Co-President James Zelter added that this 'flywheel' is centered on investment-grade activity and the dispersion of credit risk, emphasizing that the opportunity is still in its early stages.

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CFO Jen Dardis stated that the updated 2025 adjusted operating expense growth guidance of 1% to 3% (down from 4% to 6%) incorporates the market volatility observed in April. She explained the reduction reflects both a natural decrease in market-driven expenses and intentional management of controllable costs, such as slowing the pace of hiring and reducing travel. Dardis also reiterated that the firm continues to evaluate more structural cost-saving opportunities for 2026 and beyond.

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CEO Robert Sharps agreed with the premise, stating that if fee pressure persists, the firm must think differently about controllable expense growth and is evaluating structural changes for 2026 and beyond. CFO Jen Dardis added that the firm has been targeting 2% to 3% in structural savings annually to self-fund new strategic investments, shifting away from episodic cost reductions to more sustainable, multi-year projects.

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CEO Rob Sharps explained that Q4 outflows, excluding the VA loss, are consistent with typical seasonal patterns. He stated that while 2024 outflows will be less than half of 2023's, he expects further sizable improvement in 2025, driven by better performance in large-cap growth, continued strength in target-date funds, and growing contributions from alternatives, ETFs, and SMAs. While not guaranteeing a return to positive flows in 2025, he affirmed the company is on the right path. CFO Jen Dardis had no further comment.

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Chief Financial Officer Alan Kirshenbaum stated that April flows for the May 1 close were tracking down about 20% from the prior month, which he considered a strong result given market conditions. Co-CEO Marc Lipschultz addressed the partnership question, viewing peers' current JVs as 'seedlings' that are not yet transformative. He confirmed Blue Owl is actively engaged in discussions to form more meaningful partnerships focused on delivering 'true private solutions' to the channel.

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Co-Chief Executive Officer Marc S. Lipschultz stated that while they are optimistic about 2025 M&A activity, they have not yet observed a material uptick in their pipeline. He noted that their financial planning is not predicated on a market rally. Regarding spreads, he described them as relatively stable after coming down in 2024, maintaining a steady premium to the broader market.

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Chief Financial Officer Alan Kirshenbaum gave a direct confirmation, stating, 'It's the first thing you said, that's right. It's a dollar amount,' and affirmed that the guidance is all-in, including the impact of the IPI deal.

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President Benjamin Jackson explained that numerous persistent risks—including trade tensions, supply security, and the energy transition—drive hedging demand regardless of price levels. He highlighted that record volumes are being accompanied by rising open interest (up 8% YoY), which he described as the key barometer for market health and a leading indicator of future activity, demonstrating that clients are increasing their risk management, not leaving the market.

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President Benjamin Jackson attributed the success to innovations like the Midland WTI HOU contract, which has seen over 200% year-over-year growth and significant physical deliveries. He explained that the ability for clients to efficiently trade a package of related contracts—including Brent, WTI HOU, and WTI—is a key factor driving growth in their WTI contract.

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Chair and CEO Jeffrey Sprecher emphasized that ICE has shifted from selling software to operating a mortgage network. He explained that value is created by adding participants and driving efficiency, which is not volume-dependent, and ICE expects to share in the cost savings this creates for clients. He noted that a separate, future benefit will come from a 'mean reversion' in transaction volumes, but the network strategy is designed to drive value regardless.

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CFO Rob Lewin explained KKR's consistent capital allocation policy, which balances share buybacks with core private equity, strategic M&A, and insurance investments. He stated that while buybacks will remain a core part of the strategy, the goal is to deploy every dollar to generate the highest long-term, durable earnings per share, without pre-allocating to specific buckets. He also highlighted management's 30% ownership as a key alignment with shareholders.

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CFO Robert Lewin explained that Strategic Holdings owns roughly 20% of the core private equity businesses and the investment was a highly accretive opportunity. Co-CEO Scott Nuttall added that the timing was opportune as partners sought liquidity and the portfolio companies are maturing and getting closer to paying meaningful dividends.

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Executive Craig Larson noted that both infrastructure and real estate are now $80 billion businesses for KKR, with significant room to scale as over 80% of strategies are not yet at mature scale. Co-CEO Scott Nuttall added that while real estate equity fundraising has been slower, market sentiment is shifting positively as valuations have bottomed, and KKR has leaned into this by increasing deployment.

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CEO William Hult stated that Citadel's expansion is good for Tradeweb's business, as it increases market velocity and liquidity, and Tradeweb maintains a strong partnership with them. CFO Sara Furber addressed the growth question, asserting that with over 85% of credit fees remaining variable, there is no constraint on revenue growth. She outlined the growth algorithm for credit, focusing on driving market share, introducing new protocols for voice-oriented flows, and adding new clients through technology and sales investments.

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CFO Sara Furber affirmed that Tradeweb has significant operating leverage, with about 50% of its expense base being variable or discretionary. She explained that costs like performance-linked compensation and marketing can be calibrated dynamically based on market opportunities and the revenue environment. Furber pointed to H1 2023 as an example where the company maintained margins despite weaker revenue, demonstrating a track record of being nimble while investing for the long term.

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CEO Billy Hult expressed high confidence in the long-term growth of the swaps business, noting the market is only 30% electronified. He highlighted growth in higher-fee emerging markets and the RFM protocol. CFO Sara Furber quantified the potential upside, stating a one-year increase in duration could boost fee per million by 9%, and a 100-basis-point drop in rates could add 5-6%. Hult also noted that swaps revenue growth was trending over 40% year-over-year in October.

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Chairman and CEO Jim Cracchiolo clarified that the 'opportunistic' comment was a general statement about having flexibility to act on market opportunities and utilize the newly approved, larger share buyback program. CFO Walter Berman added that the new CD offering is viewed as incremental and is not expected to materially cannibalize the certificates business. He noted the bank's earnings are positioned for stability to navigate potential rate changes.

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CFO Walter Berman stated that bank net interest income is expected to be stable to increasing, though certificate and sweep earnings may soften with rate cuts. He projected Asset Management margins could remain in the 35% to 39% range in 2025, supported by ongoing transformation initiatives. CEO Jim Cracchiolo added that new bank products like CDs, HELOCs, and checking accounts will help attract more client cash.

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CEO Ronald Kruszewski clarified the primary focus is on the employee channel, targeting higher-productivity teams with a holistic approach to compete with the RIA space. CFO James Marischen provided Q2 NII guidance of $260M-$270M, dependent on loan growth, and noted cash outflows in April were typical for tax season. Kruszewski added that share repurchases are becoming more attractive relative to loan growth in the current environment.

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CEO Ron Kruszewski highlighted that the firm has greater M&A capabilities now than in 2021, which was heavily skewed by SPACs. CFO Jim Marischen added that the announced M&A pipeline in financials is three times larger than a year ago. Regarding expenses, Kruszewski explained that variable non-comp costs are tied to revenue generation and are not an area to cut. Marischen noted that excluding episodic legal costs, the core operating expense ratio was at the low end of the guidance range in Q4.

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Terrence Duffy, Chairman and CEO, stated that CME does not break down revenue by participant type. He attributed the durability and growth of the retail segment to improved access and tools, citing new distribution partnerships with retail brokers that did not exist a few years ago. He believes this trend will continue due to technology enabling broader participation.

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CFO David Fox stated that deposit levels were 'hanging in there' in April as clients maintain a risk-off posture, which supports the NII guidance. He also explained that a very small portion of the expense base, less than 0.5%, is directly variable with revenue, noting that a 10% market change impacts trust fees by about 3% but has a much smaller corresponding benefit on expenses on the way down.

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Then-CFO Jason Tyler clarified the NII elevation was from a basket of items like FX swaps and FHLB dividends, which will normalize but not fully disappear. CEO Mike O'Grady addressed expenses, stating the goal is to lower the absolute expense growth rate in 2025 to achieve positive operating leverage and bring the expense-to-trust-fee ratio into its target range of 105-110%.

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President and COO Jonathan Gray highlighted that the pitch to borrowers is the flexibility and certainty of bespoke capital solutions, as seen in recent large deals. For investors, the key is generating superior returns, offering nearly 200 basis points of excess spread over liquid credits. He framed this as a structural shift where Blackstone partners with banks, which are seeking to optimize their ROE, rather than simply competing against them.

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Jonathan Gray, President & COO, anticipates that credit deployment will grow in line with capital inflows, driven by expansion into asset-based finance and corporate solutions like the recent EQT transaction. Michael Chae, CFO, provided a specific figure, stating that approximately $40 billion in the credit segment (BXE) is eligible for management fees but not yet earning them, with another $9 billion in the real estate credit business.

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Chairman & CEO Stephen Schwarzman confirmed that Blackstone has recently been a net buyer but expects activity to balance out as the market recovers, leading to more realizations later in the year. He identified logistics, rental housing, and data centers as key areas for deployment, while also seeing selective opportunities in high-quality office and grocery-anchored retail.

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The transcript does not contain an answer as the question was incomplete due to an audio gap.

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CFO Charles Daley explained that the firm's high variable expense model supports margin expansion with revenue growth and that a period of heavy investment has likely paused. He noted improving compensation ratios and potential for Q4 performance fees. CEO Eric Colson added that enhancing existing teams creates significant operational leverage. Regarding the International Value strategy, Mr. Colson stated that the firm prioritizes performance compounding over absolute flow growth, leading to cautious capacity management and lumpier inflows.

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Co-CEO Erik Hirsch stated that management focuses on strong net inflows and considers minor redemptions normal for rebalancing. He acknowledged rising competition but highlighted Hamilton Lane's competitive advantages in scale, brand, and technology, particularly its strategic partnerships in tokenization. Hirsch emphasized focusing on long-term growth trends over month-to-month variability.

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Co-Chief Executive Officer Erik Hirsch highlighted a diverse product pipeline, noting the direct equity fund is poised to be the largest currently in market, the impact fund is scaling successfully, and the new venture fund has strong initial market appeal with over $500 million raised. Chief Financial Officer Jeff Armbrister clarified that equity-based compensation is expected to be approximately $30 million per year, structured over a five-year award period.

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CEO Ali Dibadj responded that the European ETF market is nascent but growing, and he does not see significant economic differences on a per-unit cost basis for active strategies compared to the U.S. He emphasized the Tabula acquisition was key for accessing distribution. Regarding M&A, he reiterated that the pipeline is active and varied across geographies and products but declined to specify likely targets, stressing the firm's disciplined, client-led, and culture-focused approach.

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Executive Ali Dibadj explained that VPC addresses client demand for differentiated, asset-backed private credit. The primary growth driver is leveraging Janus Henderson's capital and distribution to fund VPC's strong deal origination, which was previously capital-constrained. He highlighted VPC's four key business lines—opportunistic credit, legal finance, insurance services, and structured finance—as distinct growth avenues that can be scaled globally.

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CEO Douglas Cifu identified the IPO market as an area suppressed by prior regulations, suggesting that a less burdensome environment could lead to more public listings, creating new products for Virtu. Co-President Joseph Molluso addressed capital management, confirming that share buybacks remain the primary method for capital return, as the program is "tailor-made" for the company's volatile cash flows. He added that while they continuously look for opportunities to cheapen the debt stack, the buyback is the "front priority."

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Incoming Interim CFO Mark Keating detailed the multi-year strategy that increased servicing fee sales, highlighting a $350M-$400M target, 97% client retention, and a growing backlog. CEO Ronald O’Hanley reinforced the sustainability of this growth, attributing it to service quality, capability enhancements like Alpha, and improved sales execution. Regarding capital, O'Hanley confirmed the 80% payout target for 2025, explaining it would follow a seasonal pattern similar to the prior year, starting modestly.

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David Brown, Chairman and CEO, described the pipeline as spanning multiple franchises with larger mandates and fee rates that adhere to the company's margin requirements. He expressed optimism for 2025 organic growth, citing the expanded sales force post-Amundi. Michael Policarpo, President and CFO, added that the combined AUM will approach $300 billion, with Amundi's fee rates in the high-40s, and reiterated the 49% long-term margin target post-synergies. Brown also noted Amundi's business has outperformed their expectations.

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CEO David Brown and President & CFO Michael Policarpo provided an update. Brown reaffirmed the $100 million expense synergy target and noted Amundi U.S. is having a strong year with positive flows. Policarpo provided current metrics for Amundi U.S.: AUM of $104B-$106B, revenue realization in the high-40s basis points, and mid-20s EBITDA margins, reaffirming the 49% post-synergy margin target. On organic growth, Brown highlighted expected pickups in institutional fundings and continued momentum in ETFs and fixed income, which are well-positioned for a potential market rotation.

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Global President Dave Howson positioned the new product as a tool to open up a broader market rather than a source of cannibalization. He explained that its primary appeal is to a new customer base, particularly international institutions, that cannot currently access U.S. security-based options. He also noted the product would allow for shorter-dated tenors, meeting a key secular demand trend in the options market.

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