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CEO Jeremy Allaire affirmed a strong appetite for partnerships but clarified that deals are not uniform and don't always involve sharing reserve income; they focus on win-win, growth-oriented models. CFO Jeremy Fox-Geen added that the 'Revenue Less Distribution Cost' (RLDC) margin is supported by three long-term tailwinds: strengthening network effects, growth of USDC held within Circle's own high-margin platform infrastructure, and the growth of high-margin 'other revenues' from value-added services.

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Executive Chairman Jim Coulter stated that a first close for Rise 4 is expected in Q4. He noted that policy clarity is helping the climate strategy and that TPG is now in the back half of the fundraising campaigns for TRC2 and initiating its climate infrastructure fund (TCI), with a robust pipeline.

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Executive Chairman and Co-Founder Jim Coulter explained that while U.S. policy discussions create noise, the underlying fundamentals for climate investing are strong globally. He noted that over 90% of new energy addition worldwide is clean energy and that international markets are largely unbothered by U.S. policy debates. In the U.S., an energy shortage is driving demand, creating unique opportunities. He concluded that fundraising timelines may elongate slightly, but the opportunity set remains robust.

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Executive Chairman Jim Coulter explained that the Intersect deal is indicative of a broader trend of explosive spending on the U.S. grid, driven by data centers and electrification. He noted that market disruption is creating significant opportunities and that the climate investor base remains strong, particularly internationally. He expressed confidence in the platform's long-term growth trend and its ability to expand into related infrastructure and credit products.

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CFO Hadley Peer Marshall stated that the ~10% expense growth reflects strategic investments and should remain steady. She noted margins are impacted by business mix, such as partner manager acquisitions. She confirmed they are in the early stages of realizing the $250 million FRE opportunity and that the Angel Oak acquisition is incremental to that figure.

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President Connor Teskey stated that while flagships typically deploy over 3 to 3.5 years, that timeline would shorten in a distressed market to capitalize on opportunities. In the current environment, he expects deployment to be at or inside the traditional run rate. CFO Hadley Peer Marshall confirmed that the $250 million FRE growth estimate over five years from increasing ownership does include all partner managers, including Oaktree.

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CEO Harvey Schwartz outlined a strategy focused on high-quality fees without balance sheet risk. He identified three organic drivers: new fund vintages adopting the fee structure, increased operating leverage as the practice becomes standard, and the overall growth of the platform. CFO John Redett added that significant growth has already been achieved in a benign market, suggesting future upside.

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CEO Harvey Schwartz explained that the capital markets strategy is now ingrained in the business and has significant operating leverage to market activity. He identified three organic growth drivers: new fund vintages adopting the fee structure, the natural muscle memory and flywheel effect of the business, and the overall scale and growth of the platform. He suggested that in the right environment, the business should meaningfully exceed its prior peak of $300 million. CFO John Redett added that the revenue is high quality as it does not involve balance sheet risk.

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CFO John Redett expressed satisfaction with the 48% FRE margin, stating it already reflects heavy investment in growth initiatives. He emphasized that the firm is focused on driving margin through revenue growth rather than expense cuts. He suggested that a G&A level of around $100 million is a good run-rate number, noting Q1 of the prior year was not a good comparison.

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CFO John Redett explained that the elevated Q4 G&A was due to seasonality and one-off fundraising expenses. He noted G&A grew only 4% in 2024 and expects Q1 2025 to be similar to Q4. He confirmed ongoing investments in Wealth (headcount up >50%), Credit, and Solutions, indicating the investment phase is not complete.

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CEO Harvey Schwartz reiterated that it would be a mistake to alter strategy based on anticipating government policy. He stressed that Carlyle's structure as a global firm with strong local capabilities, such as its leading franchise in Japan, is a key advantage in any environment. He suggested the firm is better served by focusing on more certain factors like regulatory policy while preparing for various peripheral scenarios.

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President Jim Zelter addressed the Capital Solutions question, explaining that increased transparency from trading private credit will expand the entire market. He sees this creating new revenue opportunities from bid/offer spreads, liquidity provision, and indexing, with a broader impact expected in 12-24 months. CEO Marc Rowan deferred the question on SRE rate assumptions to an offline follow-up.

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Co-President James Zelter stated it was too early to adjust the 5-year target but highlighted the strength and consistency of their strategy. He noted that origination spreads have remained robust despite public market compression and that the 'flywheel' effect from syndication, global wealth, and third-party insurance provides a scalable system to absorb higher volumes.

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CEO Michael Arougheti stated that historically, the relationship between dry powder and deployment has been nearly one-to-one. Given the current deployment pace and historical trends, he suggested the timeline to deploy this capital is likely closer to one year rather than the more conservative 18-24 month guidance often cited.

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Michael Arougheti, Co-Founder, CEO & Director, noted that historically, the relationship between dry powder and deployment has been nearly one-to-one. He stated that while the official guidance has been 18-24 months, the actual deployment pace has been closer to one year, and he expects that strong correlation to continue given the current environment.

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CEO Michael Arougheti confirmed it is possible to exceed the 8-10 product target, particularly with the new capabilities from the GCP acquisition. He stated that growth in the retail channel is proceeding as planned, requiring a dual focus on the large wirehouse platforms for scale and the fast-growing RIA channel for rapid growth.

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President and CEO Jennifer Johnson stated they are pursuing both partnerships, like one with Apollo, and developing their own products. She acknowledged that the litigious nature of the DC space might slow adoption but confirmed they are building private market allocations into their target-date funds for a potential 2026 launch. EVP & Head of Global Distribution Adam Spector added that the Putnam acquisition provided significant scale in the target-date space, which is key to their strategy.

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Head of Global Distribution Adam Spector clarified that the $470 billion figure represents AUM sourced from clients outside the United States. He stated that the firm is well-positioned for such a shift, as international and global equity are hallmark strategies for the company outside the U.S. He also noted that the firm has relative strength in value strategies, which are benefiting from a separate allocation shift away from growth.

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President, CEO & Chair Robert Sharps responded that the firm is encouraged by the long-term potential to improve participant outcomes with private assets. He noted that while the investment case is sound, concerns about fees and fiduciary risks remain. Sharps mentioned that potential regulatory guidance could provide clarity, but legislation would be preferable for long-term stability. He confirmed T. Rowe Price would consider OHA's capabilities and is also in discussions with other best-in-class partners.

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President & COO Thomas Wojcik detailed the strategic shift that has increased alternatives AUM from 30% to 45% of the total, improving the baseline for growth. He noted the $8 billion in Q2 private markets fundraising was diverse, led by Pantheon with contributions from Comvest, Ara, and EIG. CFO Dava Ritchea added that this growth in higher-fee, longer-duration alternatives is increasingly flowing through to EBITDA, as reflected in the Q3 guidance.

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Dava Ritchea, CFO, confirmed the 8% accretion is an annualized run-rate impact on economic earnings per share, expected to be fully realized starting in 2026. Thomas Wojcik, COO, added that the fee impact from flows was 'pretty positive' on a long-term basis, as high-fee, long-duration alternative inflows outweighed lower-fee equity outflows.

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COO Tom Wojcik detailed the platform's rapid growth from ~$1 billion to over $5 billion in AUM in just a few years, driven by products like the AMG Pantheon fund. He highlighted new launches with Comvest and Pantheon as examples of future growth and confirmed that certain perpetual products are eligible to generate performance fees, which will further diversify that earnings stream over time.

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Co-CEO Marc Lipschultz agreed with the premise, noting that Blue Owl's existing retail vehicles like BDCs are already eligible for 401(k) plans. He acknowledged that while the bulk of the market is in target-date funds (a medium-term effort), Blue Owl is already positioned on the 'front edge' to serve the portion of the market where advisors or individuals make direct allocation decisions, stating the opportunity 'matches hand in glove' with their platform.

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Co-Chief Executive Officer Marc Lipschultz countered the idea of softness, highlighting that deployment has been at 'exceptionally healthy' levels despite a tepid M&A market. He expressed bullishness on future deployment opportunities, stating that when PE activity inevitably picks up, it will drive 'pretty meaningful upticks' in volume, though he could not predict the exact timing.

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CFO Robert Lewin explained that management fees were driven by solid organic growth and the turn-on of large funds like Americas XIV, which contributed about $30 million, with no other unusual items. For Capital Markets, which had a solid $200 million quarter, he expects Q3 to be 'plus or minus in line' with Q2, with potential upside if markets remain healthy. He expressed confidence in the franchise's growth heading into 2026.

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CFO Rob Lewin stated there is no cap on the FRE margin. While the firm can operate sustainably in the mid-60% range, he expects revenue to grow faster than headcount and complexity as they scale existing platforms, making margin expansion a natural output of the strategy. He views placement and distribution fees as a positive investment with a clear ROI, not a headwind.

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Chief Financial Officer Rob Lewin expressed optimism, noting that while the IPO market has been sluggish, he expects it to change, citing the strong performance of KKR's four recent IPOs. Co-CEO Scott Nuttall added that deal momentum is continuing across both strategic M&A and IPOs, and that a pent-up supply of exits exists across the industry after a slower period.

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CFO Jason Warnick identified several businesses with strong momentum, including TradePMR, Bitstamp, and prediction markets. He also mentioned others coming up behind them, such as index options, the Robinhood Gold Card, and the Legend trading platform, as vectors gaining significant steam.

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CFO Jason Warnick confirmed strong week-over-week growth rates for both Legend (now at a $50M annual revenue run rate) and Index Options ($15M run rate). CEO Vladimir Tenev added that the products have compounding effects, with Index Options on Legend accelerating growth, and that the company sees continued opportunities to enhance the platform, particularly for options traders.

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CEO Vlad Tenev confirmed that Legend users are among the most active, showing high velocity, but noted the user base is still small and curated. Regarding timelines, he stated that outright futures and index options are planned for rollout in the 'coming months,' as the immediate focus for the derivatives team was ensuring a smooth launch of the presidential election market.

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J. Christopher Donahue, Chairman, President, & CEO, and Deborah Cunningham, EVP & CIO of Global Liquidity Markets, stated it is 'too early to tell' how much tokenization might grow the industry but believe the impact will be incremental. Regarding market share, Mr. Donahue explained that regulation has created a competitive oligopoly, making significant share shifts challenging for any single player. While Federated Hermes aims to grow its share, he did not commit to the idea that tokenization would be a definitive catalyst for share gains.

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CIO for Money Markets, Deborah Cunningham, estimated that an additional 10% to 20% of asset flows could potentially move from direct overnight cash into money funds if yield advantages are maintained. CEO John Donahue emphatically added that the potential market was in the 'trillions.' Regarding the Strategic Value Dividend fund, Donahue noted the positive performance trend is improving client sentiment and expects the flow trend to continue improving, though he did not provide a specific timeline for a return to inflows.

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Chair & CEO Adena Friedman maintained a consistent full-year outlook for Capital Markets Tech, citing some elongated sales cycles. Regarding crypto, she stated that while its institutional adoption was not a core assumption in the Adenza acquisition, if crypto becomes 'bankable,' it would create a significant opportunity across the entire FinTech division for infrastructure, risk, and compliance solutions.

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CEO Adena Friedman confirmed that AxiomSL is a highly diversified global business that processes thousands of regulatory changes annually, providing a buffer against timing shifts in any single jurisdiction like the U.S. Basel III endgame. On crypto, she stated that a more regulated environment presents a significant opportunity across multiple platforms, including Market Tech, Surveillance, Verafin, and AxiomSL, as banks would require solutions for trading, compliance, and reporting of the new asset class.

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Adena Friedman, Chair and CEO, confirmed that Q4 is consistently a seasonally high sales quarter for the company. However, she also emphasized that Nasdaq is seeing strong underlying client engagement trends that are providing positive momentum heading into 2025.

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CEO Adena Friedman characterized the index options business as a 'nice grower' with good momentum, but noted it is still a small contributor to overall options revenue. She confirmed they are actively marketing to retail platforms and also pursuing opportunities with international investors and for inclusion as overlays in ETFs.

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Chairman and CEO Michael O'Grady explained that technology enhances the client experience by improving processes and empowering employees with better tools, and that the strategy is to refine the value proposition for all client tiers. Regarding alternatives, he and EVP & CFO David Fox noted that the platform provides access to both large and bespoke managers, with a focus on highly curated, differentiated opportunities and advisory services.

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Then-CFO Jason Tyler stated the goal is for Wealth Management to achieve a 2.5% to 3% organic growth rate, balanced between new client acquisition and increasing wallet share with existing clients. He and CEO Mike O'Grady reiterated a commitment to decouple expense growth from revenue fluctuations, aiming for absolute expense control below 5% next year.

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Chairman & CEO Terrence Duffy highlighted the unprecedented 56% YoY growth in new retail traders, noting they are active across asset classes with high media attention. He positioned CME as a regulated "fast follower" in crypto and stated perpetuals are currently illegal in the U.S. Chief Commercial Officer Julie Winkler added that this was the fifth consecutive quarter of double-digit retail client acquisition growth. Senior Managing Director Tim McCourt provided details on the strong momentum in crypto futures volume, which continued into July.

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Terrence Duffy (Chairman & CEO), Julie Winkler (Chief Commercial Officer), and Tim McCourt (Senior Managing Director) provided a comprehensive answer. Duffy highlighted the unprecedented 90,000 new retail traders in Q2 and positioned CME as a regulated "fast follower" in crypto, noting U.S. legal restrictions on perpetuals. Winkler detailed the fifth consecutive quarter of double-digit retail client growth, driven by broker partnerships and education. McCourt added that crypto complex ADV was up over 130% year-over-year with strong momentum continuing.

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Lynne Fitzpatrick, CFO, explained that volume tiers are product-specific, not based on total volume, and are designed to encourage trading during high-volume periods. Julie Winkler, Chief Commercial Officer, stated that while micros are a good proxy, retail traders also trade full-size contracts in products like gold and crypto. Terrence Duffy, Chairman and CEO, added that institutions also use micro contracts.

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CEO Terrence Duffy declined to comment on future competitive pricing actions, stating they have many levers and will not predetermine their strategy. CFO Lynne Fitzpatrick provided collateral details: Q3 average cash balances were $72 billion earning 36 bps, and non-cash was $165 billion earning 10 bps. She noted the rate paid to clients on cash is 25 bps, with the extra earnings coming from optimization strategies that could be pressured if market rates continue to fall.

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Interim CFO Mark Keating noted that their market assumptions are now more constructive than at the start of the year. CEO Ronald O'Hanley shared his view that asset tokenization will accelerate as regulatory frameworks solidify, creating broad opportunities. He affirmed that State Street intends to be a key participant, primarily as a major servicer for these emerging digital asset markets.

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Incoming Interim CFO Mark Keating stated that ongoing client engagement on deposits is already factored into the company's outlook. CEO Ron O'Hanley confirmed Q4 was a solid jumping-off point for SSGA's growth. Regarding 401(k)s, O'Hanley noted that while State Street has innovated with annuities in target-date funds, widespread adoption of illiquid alternatives is unlikely without a regulatory safe harbor due to significant litigation risks for fund trustees.

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President Robert S. Capito highlighted industry-leading global ETF flows driven by diversified offerings, with particular strength in fixed income, active, and digital asset ETFs. He noted Europe saw $29 billion of net inflows. CEO Laurence D. Fink added that Europe's ETF market is 5-6 years behind the U.S. and is just beginning a significant growth phase, driven by regulatory changes and new investor access. He also mentioned that digital asset ETFs like iBit are bringing new clients to the iShares platform.

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Martin Small, an executive, detailed a multi-pronged strategy to grow retail alternatives, where allocations remain in the low single digits. Key initiatives include simplifying access through managed model solutions (like with Partners Group), launching evergreen funds in Europe under the ELTIF 2.0 structure, and leveraging the HPS acquisition for its BDC. He identified the biggest opportunity as integrating semi-liquid products into BlackRock's extensive managed models and SMA franchise.

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Executive Martin Small explained that while the fee rate can be impacted by 'divergent beta' (outperformance of lower-fee assets), the strategic shift towards private markets is expected to have a positive long-term impact. He noted the GIP acquisition alone is expected to lift the overall fee rate by 0.5 to 1 basis point.

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CEO Christopher Concannon described X-Pro as a critical part of their technology migration that enables faster innovation and delivery of data and analytics. He is excited for the European launch to build on existing momentum in Eurobonds and EM. While not giving a specific number, he predicted PT will continue to grow as a key liquidity tool, supported by more dealers entering the space and the growth of related hedging instruments like credit futures and ETFs.

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CEO Chris Concannon expressed optimism for an accelerated pace, citing a market-wide 'electronic capitulation.' He pointed to the rapid adoption of portfolio trading by high-touch traders as proof that they are ready to convert from chat to more efficient electronic solutions for block trades. He believes the new offering's data and efficiency benefits will be key to capturing this next wave of electronification.

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Global President David Howson acknowledged the strong Q1 results, including over 8% growth and 47% ACV growth. However, he noted that given the uncertain macro environment, the company has taken a prudent view for the remainder of the year and will update guidance quarterly as appropriate.

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Global President Dave Howson clarified that the change in revenue per contract (RPC) was driven entirely by a product mix shift, not by any pricing changes. He explained that as clients rotate between products with different fee structures, such as SPX and RUT options, the overall blended capture rate fluctuates. He indicated that this ebb and flow is based on customer activity and did not signal a specific forward trend.

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President and COO Jonathan Gray observed that while global investors have questions about U.S. policy, there has been no material pullback in capital allocation from international clients, including private wealth in Japan. He noted that a stronger dollar has been a benefit and that there is some increased investor interest in diversifying into European and Asian assets. He concluded that it is still early and a resolution to tariff uncertainty would be helpful.

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Michael Chae, CFO, suggested a starting point of "margin stability" for 2025. He highlighted positive drivers, including a higher baseline for management fee growth (Q4's 10% YoY is a "reasonable starting point") and a stable OpEx growth rate. He also noted the higher incremental margin on certain FRPRs and the firm's ongoing investment in new initiatives, while emphasizing a high degree of control over the overall cost structure.

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President & COO Jonathan Gray explained that Blackstone's ability to deploy large-scale, cross-platform capital is a significant competitive advantage in the data center space. He noted that while it's too early to predict an acceleration of specific fund cycles, the theme is a major driver of performance and deployment, which should lead to faster deployment and higher returns overall.

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