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CEO Jon Winkelried explained that TPG's success stems from strong, consistent performance and intentional fund management, particularly in driving exits and returning capital. He stated that TPG is gaining market share with its largest LPs, who are increasing their commitments, and that the private equity asset class remains durable for alpha generation.

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CEO Jon Winkelried outlined several growth drivers for credit, including scaling the Twin Brook platform, moving into larger lending opportunities, growing the CLO platform, and expanding in Europe. Regarding insurance, he reiterated a focus on strategic partnerships to drive long-dated capital flows, noting TPG is in dialogue with potential partners but aims to remain mindful of its balance sheet and not become an insurance company.

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CEO Jon Winkelried described FRE growth as a 'stair-step function' that follows the scaling of new strategies. CFO Jack Weingart added that as AUM approaches the $400-$500 billion range, operating leverage should increase, pushing the FRE margin into the 50s. He projected that FRE should ultimately expand faster than AUM.

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CFO Jack Weingart clarified that the expenses are considered noncore because they are one-time strategic costs related to office consolidation and IT platform integration, which are expected to be accretive to FRE in the long run. CEO Jon Winkelried added that significant fee-related revenue growth is expected in 2025 and 2026, driven by flagship funds, which supports the FRE margin guidance of approaching the mid-40s by the end of 2025.

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CFO John Redett expressed confidence, citing strong secular tailwinds and comparing the industry to private equity 10-15 years ago. CEO Harvey Schwartz added that as a "hyperscaler," Carlyle's Alpinvest is not just a secondaries player but a broad solutions business encompassing co-invests, primaries, and portfolio finance, which provides a competitive advantage.

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CFO John Redett noted the secondary industry is still developing, comparing it to where private equity was 10-15 years ago, with strong secular tailwinds and only a handful of large-scale players. CEO Harvey Schwartz added that Carlyle is a 'hyperscaler' in the space and that the business is more than just secondaries; it's a 'corporate finance solutions business' encompassing co-investments, primaries, and portfolio finance, which provides a key strategic advantage and value to clients.

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CEO Harvey Schwartz confirmed that a dedicated fund for asset-backed finance is being raised, building on the firm's experience with its Fortitude affiliate. Regarding Solutions, he described it as a top growth area and stated that Carlyle expects to continue expanding partnerships throughout the year, implying further development of various products.

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CFO John Redett pointed to the 7% growth in total fee revenue, which was significantly driven by a more than 80% increase in capital markets fees—a balance-sheet-light business. He acknowledged headwinds in private equity management fees but highlighted strong growth in solutions (up 45%) and credit (up 11%). CEO Harvey Schwartz added that the firm-wide momentum is just beginning to translate into top-line results.

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President Jim Zelter affirmed that they believe ABC can follow the successful trajectory of ADS. He highlighted a first-mover advantage in asset-based finance, a strong origination pipeline fueled by the Atlas acquisition, and robust early approvals from clients. Zelter noted that the product's underlying investment-grade counterparty risk is particularly appealing to investors late in a credit cycle.

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CEO Marc Rowan explained that in Q1's unhealthy competitive environment, Apollo prioritized building liquidity over chasing risk, preparing for wider spreads. CFO Martin Kelly added that headwinds from additional rate cuts, retail competition, and higher asset prepayments led to the revised mid-single-digit SRE growth guidance for 2025, which assumes a return to normal spreads and has potential upside if volatile conditions persist.

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CEO Marc Rowan acknowledged that some large banks might retain more assets but argued that the fundamental banking model of borrowing short and lending long is ill-suited for the long-dated, complex assets needed for the global industrial renaissance. He emphasized that Apollo provides flexibility and solutions unavailable in public markets, creating a symbiotic relationship where banks retain client relationships while Apollo takes on the long-duration assets, enhancing bank ROE without requiring capital.

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President, CEO & Director Jennifer Johnson explained that the goal is not to have standalone entities but to create a single, integrated private credit group. She referenced the successful integration of Alcentra and stated the combined platform, including Apera, will be viewed as one $90 billion private credit manager, leveraging the broader firm for sourcing and distribution to capitalize on specialized areas like middle-market direct lending.

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CEO Jennifer Johnson cited the firm's deep roots in the wealth channel, distribution scale, and strong product lineup as key advantages. Head of Global Distribution Adam Spector noted they are broadening distribution for their perpetual funds and educating new advisors. CFO Matthew Nicholls clarified that while the firm has liquid infrastructure and infrastructure debt, they are looking to acquire a private equity infrastructure capability to round out their offerings.

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President, CEO & Chair Robert Sharps acknowledged elevated equity outflows but highlighted progress in other areas like fixed income, alternatives, and ETFs. He explained that the DC channel is performance-sensitive, which has impacted equity flows. He noted that since the Pension Protection Act, most DC flows go to target-date funds rather than standalone equity. CFO Jennifer Dardis added that the firm has diversified its target-date client base and product suite to access different market segments.

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CEO Robert Sharps explained that while the convergence of public and private markets is a key topic, the Aspida relationship is based on identifying specific areas where T. Rowe Price and OHA can add value, rather than a set hybrid allocation. He noted that OHA has a long history of managing multi-strategy credit funds that invest across liquid public and private assets, and the firm is exploring similar structures for the wealth channel.

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CEO Rob Sharps stated that significant adoption is unlikely until there is regulatory clarity, which is currently lacking. He cited key hurdles including the fee-sensitive nature of the DC market, operational challenges like daily pricing and liquidity on recordkeeping platforms, and plan sponsor concerns about litigation. However, he emphasized that when the time comes, T. Rowe Price will be an 'extraordinarily attractive partner' due to its internal capabilities and partnerships, ensuring any offering is compelling for sponsors and participants.

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Co-CEO Marc Lipschultz explained that Blue Owl is in a distinctive position to lead in asset-backed finance, leveraging an expert team, advanced technology, and broad origination capabilities. He compared the strategy to their successful triple-net lease playbook: acquiring a market leader, creating accessible products like the new interval fund, and integrating it with Blue Owl's extensive origination and insurance platforms to deliver superior, less correlated returns for investors.

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Chief Financial Officer Alan Kirshenbaum explained that a temporary gap between FRE and FRE per share growth exists due to the integration of recent acquisitions, particularly IPI. He reiterated the company's five-year target of approximately 20% growth in FRE per share, expecting the gap to narrow significantly as they move into 2026 and 2027.

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Co-Chief Executive Officer Marc S. Lipschultz explained that the high gross deployment in a tepid M&A market is a sign of strength. He noted that the gross-to-net dynamic is driven by refinancings, which is a credit-enhancing exercise that demonstrates the power of incumbency, rather than a negative market signal about deal attractiveness.

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Co-Chief Executive Officer Marc Lipschultz confirmed that institutional cross-selling is a key part of the strategy, noting the limited LP overlap with acquired firms like IPI presents a significant opportunity. He clarified that Blue Owl aims to be a 'best-of-breed' provider in specific, durable, income-focused areas rather than an 'all things to all people' platform, leveraging the deep expertise of acquired teams like Atalaya and IPI to attract institutional capital.

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Craig Larson, Partner & Head of IR, confirmed that KKR is not a speculative builder and that the project has already been leased to an attractive counterparty. Co-CEO Scott Nuttall added that construction is underway with an expected completion in Q4 of the following year, giving a sense of the timeline for it to become operational.

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Co-CEO Scott Nuttall responded that he expects more dispersion of results and a concentration of capital with fewer players rather than a broad industry shakeout. He noted that institutional investors have been consolidating relationships with global, multi-asset class managers who can perform through cycles, a trend he believes will accelerate.

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Executive Craig Larson affirmed that long-term demand for data center power and infrastructure remains strong. He explained that KKR's original underwriting was not based on AI demand, which now represents potential upside. He emphasized KKR's disciplined approach, including not building speculatively and maintaining a diversified portfolio where data centers are about 6% of infrastructure AUM.

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Executive Craig Larson highlighted the ABF business's rapid growth to $66 billion in AUM, up 40% year-over-year, with origination on a $30 billion annual run-rate. He noted sourcing comes from 35 internal platforms and partnerships with major firms like PayPal and Discover. Co-CEO Scott Nuttall added that assets are held in various structures including funds, separate accounts, and on Global Atlantic's balance sheet, emphasizing that in a $5 trillion market, KKR's current scale is just the beginning.

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President & COO Jonathan Gray stated that the recovery is a matter of 'when, not if,' citing key building blocks falling into place. He highlighted a sharp decline in new construction supply, which will create a favorable supply-demand dynamic. He also noted that the cost of capital is improving through both lower base rates and tighter credit spreads. Gray observed 'early green shoots' in transaction activity for smaller assets and renewed client interest, concluding that while lower rates would accelerate the recovery, the path is clear regardless.

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President and COO Jonathan Gray defined 'first order impact' as direct supply chain cost effects on manufacturers and retailers, which is a limited part of the portfolio. Regarding credit, he stated the system is far less leveraged than in past cycles (e.g., 40-45% LTV vs. 70%+ pre-GFC), resulting in fewer stresses. While he expects the current 50 bps default rate to rise, he does not foresee systemic issues like those seen in the GFC.

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President & COO Jonathan Gray framed the opportunity as massive, estimating the asset-based market at $25 trillion, where private players have only 1-2% penetration, compared to the $5 trillion leveraged finance market. He explained that while Blackstone prefers direct origination, it strategically uses partnerships in areas like home improvement and fund finance, and leverages its equity platforms for significant deal flow.

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Chairman and CEO Michael O'Grady characterized the initiatives as primarily 'pull' driven by client demand. He noted that in alternatives, wealth clients are under-allocated to private markets, and the firm raised approximately $2.5 billion in the first half. For the new ETFs, he explained they are designed to fill specific fixed-income needs for their client base, such as municipal securities and bond ladders, developed in collaboration with the wealth management business.

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CEO Mike O'Grady explained the strategy involves both proprietary funds from 50 South Capital and an expanded platform of third-party funds for wealth clients, with a goal to nearly double fundraising. For servicing, he confirmed that while the capability is transferable, the technology and expertise must be customized for different regulatory structures like those in the U.S., Luxembourg, and Ireland.

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Jason Tyler, new President of Wealth Management, detailed a strategy to invest more aggressively in the ultra-high-net-worth segment, leveraging the firm's deep expertise. CEO Mike O'Grady clarified that the Hamilton Lane partnership is with the Asset Servicing business to provide enhanced data and analytics for institutional clients' private market investments.

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Chairman & CEO David Solomon stated that the first priority for excess capital is deploying it for accretive returns by supporting the client franchise. He noted that returning capital to shareholders via dividends and buybacks is the next focus. CFO Denis Coleman explained that while public markets are improving, the environment for monetizing private equity assets remains less robust, though they are making steady progress on the remaining portfolio. David Solomon added that the tail-end of the portfolio contains 'stickier' assets.

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Denis Coleman, an executive at Goldman Sachs, acknowledged that while record prime balances were achieved, it's reasonable to expect some decline as asset prices reset. However, he did not characterize the impact as 'material or major,' citing offsetting client activities like portfolio repositioning.

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CEO David Solomon stated that while the firm advocates for a better regulatory process, its primary job is to adapt. He emphasized the durability of the markets franchise, bolstered by growth in financing revenues. Regarding HPI, CFO Denis Coleman advised that as the portfolio shrinks, associated revenue will decrease, but the firm will retain co-invest positions to drive its third-party fund management business. He declined to provide specific future return guidance.

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Interim CFO Mark Keating detailed the puts and takes for NII, reaffirming the 'roughly flat' full-year guidance. He cited headwinds from lower short-term rates being offset by strong loan growth and higher deposit levels, albeit with a less favorable mix. CEO Ronald O'Hanley declined to comment on specific market rumors but reiterated that while their M&A bar is high, they consistently evaluate opportunities that complement their organic growth strategy.

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CFO Eric Aboaf explained that prime brokerage is an integral part of supporting hedge fund and multi-manager clients, where providing capital drives significant cross-sell opportunities in servicing, FX, and deposits. CEO Ron O'Hanley attributed SSGA's rejuvenated growth to launching around 60 new products (mostly ETFs), expanding into the retail intermediary market with low-cost funds, and forming strategic sub-advisory partnerships.

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CEO Jane Fraser confirmed there is a good opportunity to deploy more balance sheet for high-return RWA in areas like prime brokerage and private capital financing, guided by a disciplined allocation process. CFO Mark Mason added that while there is some spread compression, the firm is seeing good loan growth at good yields in areas like trade finance and cards, and expects to see continued growth in private credit, contributing to NIM improvement.

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CEO Jane Fraser confirmed that there are good, high-return opportunities to deploy more balance sheet in areas like prime services and private capital financing while maintaining discipline. CFO Mark Mason noted that while there is some spread compression, the firm is seeing good loan growth and yields in trade finance, cards, and private credit, and feels good about the returns being generated.

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CEO Jane Fraser explained that Citigroup's diversified business mix and broad suite of products position it well to help clients reposition for a new trade order. She highlighted that client engagement is 'off the charts' and that while the revenue mix might shift, the bank's deep, long-standing local presence makes it less vulnerable to geopolitical dynamics. She reaffirmed the firm's 2026 ROTCE targets of 10% to 11%, noting the drivers remain the same even if the revenue composition changes.

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CFO Mark Mason explained that Retail Services loss rates are impacted by lower spend volumes and payment rates but remain within guidance, supported by healthy reserves. CEO Jane Fraser described the Apollo partnership as a way to offer clients more innovative financing solutions at scale, noting the potential for more such partnerships in the future.

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An unnamed executive explained the trading business strategy is a "relentless climb" focused on consistent share gains rather than volatile grabs for revenue, supported by ongoing investment in capital and systems. CEO Brian Moynihan stated the enhanced credit disclosure was to remind investors of the bank's strength and preparedness for any potential economic downturn, similar to disclosures made in past periods of uncertainty.

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CEO Brian Moynihan explained that the trading business is designed for consistent, steady growth, resulting in less volatility than peers, as evidenced by 11 straight quarters of year-over-year growth. He clarified that the ~5% unemployment figure is a conservative input for reserve methodology, incorporating adverse scenarios, and not the bank's actual economic forecast, which anticipates unemployment remaining in the low 4% range.

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CFO Alastair Borthwick explained the securities strategy is to let the HTM portfolio run off to reinvest at higher yields and fund loan growth, rather than taking a specific rate view. Both Borthwick and CEO Brian Moynihan attributed the sustained Global Markets success to a long-term, multi-year investment strategy across the platform to fill gaps with existing clients, not a recent push in one specific area.

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Executive Martin Small clarified that the primary driver for the modest EPS growth was the effective tax rate. The current quarter's 26% rate included a $22 million discrete expense, which compared unfavorably to a significant $223 million discrete tax benefit in the prior-year quarter. He affirmed the firm's goal is to deliver double-digit EPS growth over time.

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