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Art Penn, Founder and Managing Partner, stated that the new JV is expected to ramp over 12 to 18 months and that similar JVs have historically generated mid-to-upper teens NII returns on invested capital. He expressed excitement about leveraging Hamilton Lane's relationships to source deals. Regarding a potential merger with PNNT, Mr. Penn reiterated that while all options are considered, the immediate focus is on resolving equity rotation issues at PNNT before assessing broader strategic moves.

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Arthur Penn, Chairman and CEO, noted that while the current quarter is seasonally slower, he expects 2025 to be busy overall, with a continued focus on conservative underwriting. He anticipates a more balanced mix of new and add-on investments, highlighting that their strategy creates a built-in pipeline. Penn expressed confidence in the platform's long-term runway, citing its unique position serving the core middle market, a space he believes is underserved by larger direct lenders.

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Ken Nicholson, CEO & President, stated that the final permit for Repauno's Phase III is expected by September 30th. He outlined the project's compelling economics: a ~$200 million investment to generate ~$100 million in annual EBITDA, with a two-year construction timeline. He confirmed Phase II construction is on time and on budget. Nicholson also noted significant inbound interest for Long Ridge from data centers and others, expecting a development announcement before year-end. He explained the new preferred stock is non-cash-pay, allowing all cash flow from the combined rail business to be distributed to the parent company, significantly boosting FIP's free cash flow.

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CEO Ken Nicholson stated the impact of tariffs 'depends,' noting Repauno is best positioned to benefit from increased energy exports to Europe, with potential positives for Jefferson and Transtar as well. He clarified that Repauno's Phase 2 has little remaining capacity, but upside exists in optimizing Phase 1 (for a potential $10 million in additional EBITDA) and in the future Phase 3. Nicholson confirmed the Long Ridge 20-megawatt uprate is likely for Q4 2025, requires no capital, and is expected to add approximately $8 million in incremental annual EBITDA.

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CEO Kenneth Nicholson stated that Repauno's cavern permits are expected by the end of Q1 2025 and that a monetization could be evaluated once permitted. For Transtar, he expressed comfort with the 15-20% organic growth forecast for 2025, citing tariff impacts and new business. On M&A, Nicholson noted growing momentum and would be surprised if a deal isn't announced in the next three months, with financing expected to come from the debt markets.

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CEO Kenneth Nicholson stated that the U.S. Steel transaction would not have a material impact on Transtar, though an approval of the Nippon Steel acquisition would be a slight positive due to planned investments. Regarding M&A, he confirmed Transtar is actively evaluating three opportunities and that acquisitions could be a 'game changer' for value creation, supplementing the company's 15% annual organic growth target.

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CFO Jonathan Lamm explained that while expense synergies are fully realized, financing synergies are a 'slower burn' and could add 50 basis points to ROE over the next year. CEO Craig Packer added that portfolio rotation into JVs could contribute another 25+ basis points, for a total potential ROE improvement of 50-75 bps over time. Regarding new strategies, Packer noted it's early but could become 10-15% of the portfolio in the coming years. President Logan Nicholson specified that 10% of Q1 originations were from these new equity and JV investments.

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CEO Craig Packer explained that while public market volatility would typically widen credit spreads, they have only stabilized due to a muted M&A environment caused by tariff uncertainty. He noted that the firm continues to find high-quality deals, often through add-on acquisitions for existing portfolio companies. Regarding the tech fund, Mr. Packer stated there was nothing specific to disclose but that the firm regularly evaluates all strategic options to deliver shareholder value.

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CEO Craig Packer acknowledged that while lower rates and spreads could push ROE from the low 12% range into the 10% range, he expects the OBDE merger to generate 50-75 basis points of additional ROE through cost savings and portfolio optimization, offsetting some of the decline. He added that Blue Owl's expanded credit capabilities in areas like data centers and alternative credit will broaden the origination funnel for OBDC, enhancing its competitive advantage while maintaining its core investment strategy.

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CEO Craig Packer stated that he believes new deal spreads have troughed around 4.75% over SOFR and that private credit continues to offer a significant premium over public markets. He also explained that while the BDC's core strategy remains unchanged, the platform's expansion will significantly enhance deal flow and provide select, high-quality investment opportunities without causing strategy drift.

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CFO John Redett stated that collaboration is already a core strength and his focus will be on building on recent progress. He highlighted the strong performance in U.S. corporate private equity (up 17-20% LTM) and the successful fundraising for the latest real estate fund. CEO Harvey Schwartz added that John's leadership will be critical for driving strategic initiatives like CPAP and ensuring best practices across the firm.

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CFO John Redett emphasized that collaboration is already a strong hallmark of Carlyle's culture and that he is stepping into a business that is 'performing exceptionally well.' He highlighted the strong performance in U.S. and Asia private equity and the successful fundraising for the latest real estate fund. CEO Harvey Schwartz added that having Redett in the role is beneficial for driving strategic initiatives like CPAP and ensuring uniform best practices across the firm.

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CEO Harvey Schwartz attributed AlpInvest's success to its strategic integration into the firm's global distribution and strong LP demand for secondaries. CFO John Redett added that the current secondaries fund is already 57% committed, creating a clear path to launching the next vintage soon. He noted that accelerating activity in the secondary market provides a strong tailwind for continued growth.

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CFO John Redett stated the BDC merger's fee impact will be positive but not material to the overall credit business, with a closing expected in late Q1 or early Q2. He acknowledged that Carlyle's direct lending platform is less scaled than peers, viewing it as a significant upside opportunity where the firm is actively investing.

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CFO John Redett outlined the firm's capital allocation priorities, stating that the primary focus is investing in organic growth to achieve the best returns. The second priority is continuing the active share buyback program. While the firm evaluates inorganic opportunities, he clarified that nothing is imminent and the current strategy is centered on organic growth and repurchasing shares.

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CEO Michael Arougheti countered the narrative that private credit is untested, pointing to Ares's long track record of low loss rates. He attributed the sector's resilience to high-quality borrowers, record-high sponsor equity contributions creating low LTVs, and the bilateral nature of private loans, which facilitates constructive resolutions and has helped dampen overall market volatility.

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Michael Arougheti, Co-Founder, CEO & Director, pushed back on the narrative that private credit is untested, citing consistently low loss rates around 10 basis points. He attributed current resilience to high-quality portfolio companies, record-high equity contributions from sponsors creating low LTVs, and the bilateral nature of private loans that facilitates constructive workouts. He believes that if a traditional credit cycle were to occur, it would highlight the durability of the asset class and allow top managers like Ares to gain market share.

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CEO Michael Arougheti acknowledged that retail investors have historically been more pro-cyclical. However, he is encouraged by their steady behavior in the recent volatility, suggesting that educational efforts by Ares and its peers on the benefits of private markets (e.g., lower NAV volatility) may be having a positive effect. While he hopes this signals a paradigm shift, he stated it is too early to be certain, and the firm will continue to maintain a balanced mix of institutional and retail capital.

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Co-CEO Marc Lipschultz asserted that the benefits are already materializing, with businesses fully integrated and driving synergies, evidenced by the 30% growth in fee revenues. CFO Alan Kirshenbaum added that despite reinvestment, the firm maintains a high 57% FRE margin and sees long-term expansion opportunities. They pointed to the success of their ORENT vehicle as the proven template now being applied to the newly acquired digital infrastructure and asset-backed businesses.

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Co-Chief Executive Officer Marc Lipschultz highlighted the significant secular growth opportunity in the private wealth channel, citing new platform rollouts like Edward Jones. He stated that during volatile periods, investors and their advisors increasingly recognize the benefits of Blue Owl's stable, income-oriented, and downside-protected products, which he believes will lead to market share gains.

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Chief Financial Officer Alan Kirshenbaum confirmed the ORTF merger is on track to close in early Q2, with a listing expected shortly after, which would turn on an incremental $135 million in annualized management fees. For growth, he mentioned the potential for at-the-money (ATM) programs and continued debt capital raises.

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Co-Chief Executive Officer Marc Lipschultz stated that while the wealth channel remains a powerful engine, the firm is structure-agnostic and aims to provide the best 'on-ramp' for all investors, including institutional ones, through private BDCs, public BDCs, or GP/LP funds. Chief Financial Officer Alan Kirshenbaum added that the firm also utilizes evergreen institutional structures that continuously raise capital.

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CFO Robert Lewin outlined several key drivers. He pointed to momentum in management fees, growth in the capital markets franchise, scaling fee-related performance revenue, and a more meaningful contribution from third-party capital in the insurance business. Critically, he highlighted the record $17.1 billion of embedded gains on the balance sheet (unrealized carry and investment gains) as a major indicator of future earnings power. He also expressed confidence in beating the 2026 operating earnings guidance for the Strategic Holdings segment.

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Chief Financial Officer Rob Lewin explained the growth in accrued carry was broad-based, with a particular inflection from the maturing real assets portfolio, especially infrastructure. He noted that monetizing balance sheet gains depends on the market but could be material in 2025 if conditions remain constructive. Co-CEO Scott Nuttall added that many of KKR's newer strategies are now reaching the 5-10 year maturity point where carry generation accelerates.

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CEO Joshua Easterly explained that their outperformance stems from disciplined, idiosyncratic underwriting and minimizing losses, rather than broad diversification. He identified off-the-run, non-sponsor deals in sectors like specialty pharma, asset-based lending, and energy as currently more attractive than the crowded sponsored-finance market. Vice President Robert Stanley added that they leverage deep sector expertise to find unique opportunities, avoiding competition with commodity capital providers.

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CEO Joshua Easterly explained that their strong risk management and idiosyncratic underwriting, proven by NAV growth and low loss history, justify their position sizing. He stated that minimizing losses is the primary path to outperformance. Regarding themes, Easterly and President Robert Stanley identified off-the-run, non-sponsor deals like specialty pharma, asset-based lending, and energy as more attractive than the crowded sponsored finance space, leveraging deep sector expertise to find value.

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President Bo Stanley responded that while private markets may be slow to price risk, TSLX leverages its deep fundamental analysis, understanding of its cost of capital, and broad platform insights to price risk effectively. He noted that volatility creates opportunities for their strategy. CEO Joshua Easterly added that TSLX's structure exhibits 'anti-fragility,' performing better in stress because its disciplined capital allocation ensures it has capital and liquidity to invest when others are risk-off, a function of its permanent capital structure and prudent balance sheet management.

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CEO Joshua Easterly attributed their consistent outperformance to disciplined credit underwriting, resulting in significantly lower historical loss rates, and a broad origination funnel that sources differentiated, higher-return opportunities. President Robert Stanley added that borrowers value their speed, certainty, scale, and deep thematic industry expertise.

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CEO Joshua Easterly attributed their success to disciplined credit underwriting, resulting in significantly lower historical loss rates, and a broad origination funnel that includes less competitive non-sponsored deals. Both Easterly and President Robert Stanley emphasized that borrowers value their ability to provide speed, certainty, and significant capital, supported by deep thematic industry expertise.

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CEO Joshua Easterly explained that the nonsponsored business, which comprised about half of new investments in Q3, leverages the firm's 250 investment professionals and thematic industry expertise. He noted that while lower rates could unlock M&A, the bigger issue is the high valuations of assets purchased in the zero-rate era, which will take time to work through. President Robert Stanley added that M&A activity will be driven more by interest rates and valuation dynamics than by the election results alone.

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Joseph Adams, Chairman, CEO & Director, described investor feedback on the SCI vehicle as 'very positive,' noting a strong group of investors who are expected to be repeat participants in future funds. On debt refinancing, he acknowledged they will evaluate opportunities as borrowing costs decrease, but stated that since no debt is currently callable, the costs of a transaction may not be justified at this moment.

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CEO Joseph Adams noted that module usage per customer has increased from around 4 to 8, with a goal to grow both the number of customers and their individual usage. On governance, Adams stated there are no current plans to change his role as Chairman of FIP, citing his strong working relationship with its leadership and noting the decision ultimately rests with the manager, Fortress.

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Vice Chairman & CFO Michael Chae clarified that of the over $200 billion in performance-eligible real estate AUM, about 60% is above its respective hurdle. He specified that for carried interest funds, over 80% of the AUM is above the hurdle, representing the bulk of accrued carry in real estate. Additionally, 100% of BREIT's AUM is above its hurdle. This positions the segment favorably for an acceleration in the realization cycle.

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President and COO Jonathan Gray stated that the alternative asset model is designed for stress, highlighting Blackstone's minimal debt and significant dry powder, which allows it to be counter-cyclical. He noted that long-duration capital prevents forced selling and enables a value-add approach to portfolio companies. Gray expressed strong confidence that Blackstone will again emerge stronger from the current volatility, reinforcing the strength of the private asset model.

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CFO Shai Vichness affirmed confidence in covering the dividend, stating it was set with future fee structures in mind. He identified several levers for incremental NII: capturing wider spreads, rotating out of lower-spread assets, redeploying repayments, and optimizing liability costs. Regarding the buyback, Vichness explained the program is designed to automatically increase purchase volume as the discount to NAV widens. He noted the authorization's timing was extended but the amount was not, a decision under regular review.

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Executive Kenneth Kencel explained that Churchill is actively expanding its relationships, noting a 30% increase in deals with new firms and the annual addition of 7-10 new private equity LP relationships. He stated that deal activity has already increased significantly, with senior lending up 60% year-over-year, driven by interest rate clarity. Regarding the buyback, Kencel confirmed the program's activity increases as the discount to NAV widens and that $14 million of the $100 million authorization had been used through October.

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Kenneth Kencel, Chairman, President and CEO, responded that the origination pipeline remains exceptionally robust, with strong activity expected to continue through Q3 and Q4 without the typical summer slowdown. He noted that while add-on activity is significant, new deal activity is expected to grow as a percentage of overall investments. Kencel also confirmed that portfolio companies are demonstrating positive performance, with a majority showing revenue and EBITDA growth, and the overall portfolio risk rating remains healthy at 4.1.

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CEO Jon Winkelried noted plans to develop an evergreen fund structure with Peppertree to lengthen capital duration. CFO Jack Weingart provided specifics, stating Peppertree's fee-earning AUM is approximately $4.5-$5 billion with average fee rates of 1.5%-2.0%. He confirmed the next fund would likely begin fundraising at some point next year, consistent with its historical two-year cycle.

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CEO & CIO Scott Bluestein explained that Hercules tends to outperform in volatile markets as equity capital becomes scarcer, driving quality companies to seek their financing. He added that a 'risk-off' posture from some banks is also creating opportunities. Bluestein noted that while the core yield dipped due to prior Fed cuts, they are seeing a potential 25-50 basis point increase in yields on new business that has not yet impacted reported numbers.

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CEO Scott Bluestein stated that if credit quality remains strong, 2025 could indeed be another record year, noting a very strong start to Q1. He confirmed the private credit fund business is a growing part of the platform but did not provide specific timing for the next fund, emphasizing a controlled growth strategy. CFO Seth Meyer added that the RIA's dividend guidance reflects current growth and a new fund would likely not impact 2025 earnings.

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CEO Scott Bluestein described the competitive environment as sporadic, with no single consistent competitor across all deals. He emphasized that Hercules' 20-year track record and specialized teams are significant differentiators that are difficult for larger, less-focused asset managers to replicate. On the dividend, Bluestein noted it is a Board decision but conveyed confidence in covering the $0.40 base distribution and stated the company's intention to continue paying supplemental distributions as long as excess spillover income remains robust.

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Incoming CEO Kort Schnabel clarified that portfolio review and new origination are concurrent activities, not sequential, enabled by the team's size and experience. He noted that overall yields on new deals have recently increased by 25-50 basis points, a mix of spread and fees, and that historically, fees have widened materially in volatile markets.

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CEO Bowen Diehl confirmed that significant net portfolio growth is expected in the December quarter due to deals pushed from Q3. Michael Sarner, CFO, quantified this by projecting $150 million to $200 million in net portfolio growth. Diehl explained that increased competition from larger private equity firms moving down-market and from regional banks has led to tighter pricing. Sarner added that spreads have compressed by 50 to 100 basis points over the last few quarters, from around 750 bps to 650 bps over SOFR.

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